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HomeMy WebLinkAboutAGENDApacket__11-19-24_0538_634       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Hannah Toth Councilmember Gerry Friedel Councilmember Brenda Kalivianakis Councilmember Peggy McMahon Councilmember Allen Skillicorn VACANT    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, NOVEMBER 19, 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.          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 - Vicky Derksen, Fountain Hills Resident     3.VICE MAYOR ROTATION     4.ROLL CALL – Mayor Dickey     5.STATEMENT OF PARTICIPATION     6.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.RECOGNITION: Stellar Students for the Month of November.    B.RECOGNITION: Outgoing Members for their service on the Town's Boards, Commissions, and Committees.     C.PROCLAMATION: Designation of November as Lung Cancer Awareness Month.    D.PROCLAMATION: Designation of November 2024 as NASCAR Championship Month.    7.PRESENTATIONS     A.PRESENTATION: Republic Services Non-Profit Grant Award Program.    B.PRESENTATION: Make a Difference Day 2024     Town Council Regular Meeting of November 19, 2024 2   C.PRESENTATION: Annual financial audit results by Heinfeld Meech & Co.    D.PRESENTATION: Economic Development First Quarter Update     8.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.     9.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: Approving the Minutes for the Town Council Regular Meetings of October 1, 2024 and October 15, 2024.     B.CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-44, abandoning the 10' Public Utility and Drainage Easements along the rear and northeast property lines of 15248 E. Sierra Madre Drive (Application A24-000015).     C.CONSIDERATION AND POSSIBLE ACTION: Professional Services Agreement 2025-040 with TischlerBise to prepare an updated Land Use Assumptions and Infrastructure Improvement Plan report, and related budget transfers.     D.CONSIDERATION OF AND POSSIBLE ACTION: Approving Cooperative Purchasing Agreement 2025-034 with B2B Direct Sales, Inc. for HVAC service on civics campus     10.REGULAR AGENDA     A.HOLD A PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: A request for a Special Use Permit to allow residential use (up to five dwelling units) on property located at 16622 E. Avenue of the Fountains.    Town Council Regular Meeting of November 19, 2024 3     B.HOLD A PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: A request to rezone approximately 0.69 acres located at 15225 N. Fountain Hills Boulevard, northeast corner of Fountain Hills Boulevard and Glenbrook Boulevard, from C-1, Neighborhood Commercial and Professional Zoning District, to C-2, Intermediate Commercial Zoning District.     C.HOLD A PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Amending Zoning Ordinance Section 2.07 Appeals and Variances.      D.CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2025-025 between the Town and Hazen and Sawyer, PC for Storm Water Support Services     E.CONSIDERATION OF AND POSSIBLE ACTION: Approving Cooperative Purchase Agreement 2025-036 with M. R. Tanner Development and Construction, Inc.     F.CONSIDERATION AND POSSIBLE ACTION: Approving Amendment One to Professional Services Agreement 2022-075 with M.R. Tanner Development and Construction, LLC for Pavement Preservation Treatments and necessary budget transfers.     11.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER The Council may (1) request the Town Manager to follow-up on matters presented at that meeting; and/or (2) a consensus of the Council may request the Town Manager to research a matter and report back to the Council.     12.FUTURE AGENDA ITEMS     13.ADJOURNMENT           Town Council Regular Meeting of November 19, 2024 4     Dated this ______ day of ____________________, 2024. _____________________________________________  Angela Padgett-Espiritu, Town Clerk   The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5199 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. On the day of the Council Meeting, the Council Chamber doors open at 5:15 p.m. for public seating. Town Council Regular Meeting of November 19, 2024 5   ITEM 6. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Staff Contact Information: Request to Town Council Regular Meeting (Agenda Language):  RECOGNITION: Stellar Students for the Month of November. Staff Summary (Background) Mayor Dickey will recognize the Stellar Students for the Month of November. Form Review Form Started By: Angela Padgett-Espiritu Started On: 06/12/2024 03:08 PM Final Approval Date: 06/12/2024  ITEM 6. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Staff Contact Information: Angela Padgett-Espiritu, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  RECOGNITION: Outgoing Members for their service on the Town's Boards, Commissions, and Committees. Staff Summary (Background) Mayor Dickey will recognize outgoing members for their service on the Town's Boards, Commissions, and Committees. History and Culture Advisory Commission: David Corlett John Gibson William (Bill) Meade Dave Peterson Board of Adjustment: Jeremy Smith Form Review Form Started By: Angela Padgett-Espiritu Started On: 10/22/2024 08:30 AM Final Approval Date: 10/22/2024  ITEM 6. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Staff Contact Information: Angela Padgett-Espiritu, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  PROCLAMATION: Designation of November as Lung Cancer Awareness Month. Staff Summary (Background) Mayor Dickey will proclaim November as Lung Cancer Awareness Month.   Attachments PROCLAMATION: Designation of November as Lung Cancer Awareness Month  Form Review Form Started By: Angela Padgett-Espiritu Started On: 09/10/2024 05:46 PM Final Approval Date: 09/10/2024  ITEM 6. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Staff Contact Information: Angela Padgett-Espiritu, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  PROCLAMATION: Designation of November 2024 as NASCAR Championship Month. Staff Summary (Background) Mayor Dickey will proclaim November 2024 as NASCAR Championship Month.   Attachments PROCLAMATION: Designation of November 2024 as NASCAR Championship Month  Form Review Form Started By: Angela Padgett-Espiritu Started On: 10/22/2024 07:46 AM Final Approval Date: 10/22/2024  ITEM 7. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Amanda Jacobs, Economic Development Director Request to Town Council Regular Meeting (Agenda Language):  PRESENTATION: Republic Services Non-Profit Grant Award Program. Staff Summary (Background) The Town of Fountain Hills and Republic Services have maintained a strong partnership for several years, offering grant funding to support nonprofit organizations based in Fountain Hills. This grant program supports projects and initiatives that promote environmental stewardship, enhance the town's natural beauty, foster public enjoyment, encourage healthy lifestyles and human services, and provide educational opportunities. A total of 11 grant applications were received and reviewed by a five-member grant panel. Based on the following criteria: • Community Impact: The overall impact of the project/program and how it enriches the community at-large. • Human/Environmental Impact: The overall impact of the project/program and how it addresses human and environmental challenges and/or opportunities. • Educational Impact: The overall impact to educate and inform the Fountain Hills community on the new or expanded program/project. Two non-profit organizations, Falcon Fiesta Graduation Celebration and the Fountain Hills Youth Substance Abuse Prevention Coalition, will each be awarded $5,000 during the November 19th Town Council meeting. The Town of Fountain Hills deeply values its partnership with Republic Services in offering grants to our community-based organizations. Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 10/04/2024 03:04 PM Interim Town Manager Angela Padgett-Espiritu 11/05/2024 04:16 PM Town Manager Angela Padgett-Espiritu 11/05/2024 06:27 PM Form Started By: Amanda Jacobs Started On: 09/26/2024 06:36 PM Final Approval Date: 11/05/2024  ITEM 7. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Community Services Prepared by: Patti Lopuszanski, Executive Assistant Staff Contact Information: Kevin Snipes, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  PRESENTATION: Make a Difference Day 2024 Staff Summary (Background) Make a Difference Day 2024, Saturday, October 19th 8:00 a.m. -12:00 p.m. Over 400 Volunteers Served on Make a Difference Day and provided 1860 Volunteer Service Hours with a contributed to a value of $59,650 in time and services to the Town of Fountain Hills. (Arizona 2023 Volunteer Hourly Rate provided by the Independent Sector, independentsector.org) 37 Residential Projects 4 Town Projects:  Desert Vista Park - Small Tree Planting/Inaugural Arbor Day Celebration (16 Trees were planted) Town Hall Planting Project FH High School Campus Clean-Up (Over 100 Volunteers) Community Center Holiday Care Cards for Homebound Seniors and Dr. Sally’s Kindness Workshop & Activities (Over 200 cards were created) MaDD Volunteer Groups Included: *Friends of Bill *Fountain Hill Leadership Academy *Republic Services *Fountain Hills Crisis Response Team *Bring Joy *MCSO D7 *Town Staff Team *Bear Claw *Tidy Guys *Noon Kiwanis *Father and Son Carpet Cleaning *4 Peaks Rotary *Fountain Hills Democratic Club *Mayors Youth Council *Snap Fitness *Daughters of the American Revolution *Four Peaks Chapter *Rotary Club of Fountain Hills Debris Pile Pickup 11 Parks and Public Works Staff Members 8 MaDD Committee Members Kim Wickland, Town of Fountain Hills Volunteer Services Supervisor Renee Stephenson, Community Center Assistant Nita Blose, Home Delivered Meals Coordinator Candy Preban, Community Center Assistant Paul Appeldorn, Volunteer Denise Clark, Volunteer Claudia Johnson, Volunteer Dee Pavia, Volunteer Form Review Inbox Reviewed By Date Town Attorney Angela Padgett-Espiritu 11/12/2024 04:56 PM Town Manager Rachael Goodwin 11/12/2024 05:50 PM Form Started By: Patti Lopuszanski Started On: 10/28/2024 01:57 PM Final Approval Date: 11/12/2024  ITEM 7. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  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):  PRESENTATION: Annual financial audit results by Heinfeld Meech & Co. Staff Summary (Background) In compliance with State statute, an annual financial audit of the Town is completed each year by an independent auditing firm. Heinfeld Meech & Co. completed the annual audit of the Town for the fiscal year ended 6/30/2024. Its audit was conducted in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Heinfeld Meech & Co. has issued the Town an unmodified opinion for fiscal year 2024.  As this is a presentation only, there is no required action from the Town Council.  However, the Mayor and Council will have an opportunity to ask questions of the representatives from the auditing firm. Attachments Presentation  Annual Comprehensive Financial Report  Annual Expenditure Limitation Report  HURF Letter  Communication to Governance Letter  Report on Internal Control and Compliance  Form Review Inbox Reviewed By Date Town Attorney Angela Padgett-Espiritu 11/04/2024 08:14 AM Town Attorney Aaron D. Arnson 11/04/2024 02:37 PM Town Manager Angela Padgett-Espiritu 11/05/2024 06:27 PM Form Started By: Paul Soldinger Started On: 11/04/2024 07:20 AM Final Approval Date: 11/05/2024  Audit Communication to Governance Year Ended June 30, 2024 Town of Fountain Hills, Arizona Presented by Joshua Jumper, CPA, CGFM Audit Partner Requirements The Town is required by State Statute to issue an annual audited financial report. Federal law requires the Town to undergo an annual single audit of federal financial assistance. – NOT REQUIRED FOR FY24 Effective September 29, 2021, ARS §9-481(H), as amended by Laws 2021, Ch 427, §1, auditors must present audit results and any findings to the Council in a regular meeting without the use of a consent agenda within 90 days of audit completion. •Verify management representations regarding finances •Demonstrate stewardship and accountability to: •Review compliance with certain laws and regulations •Governing body ultimately must ensure management fulfills its responsibility 3 •Federal agencies •IRS •Potential Creditors •Potential bond holders •Citizens •Governing body •Grantors •State agencies Importance of the Audit Audit Process •Spring 2024 - Engagement Letter Issued •Summer 2024 - Preliminary Audit Procedures •September 2024 – Final Audit Procedures •October 2024 – Draft of Audit Report Sent to Management •October 31, 2024 – Audit Reports Issued Communicati on to Governance Annual Comprehensi ve Financial Report Report on Internal Control over Financial Reporting Annual Expenditure Limitation Report State Transportation (HURF) Compliance Audit Reports Issued Key Items from FY 2023-24 Unmodified (clean) audit opinion dated October 31, 2024 6 No internal control deficiencies noted COVID-19 related Federal funding ended in prior year, so no Single Audit required Other Important Communications •Communication to those charged with governance provided by the audit firm at the completion of the audit also includes the following: •Engagement letter provided by the audit firm to management at the initiation of the audit •Management representation letter provided by management to the audit firm at the completion of the audit Other Important Communications •Fraud Communications •Inquiries regarding fraud and noncompliance were conducted with members of management and other employees •Responsibility for fraud ultimately rests with management and the Council •Auditor’s Responsibilities •Audit designed to provide reasonable, not absolute assurance •Management is ultimately responsible for the financial statements Questions? Town of Fountain Hills, Arizona Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Town of Fountain Hills, Arizona            Annual Comprehensive Financial Report  Fiscal Year Ended June 30, 2024  Issued by:  Administration Department  Finance Division      Town of Fountain Hills, Arizona Table of Contents Introductory Section Page Letter of Transmittal 1 List of Elected and Appointed Officials 11 GFOA Certificate of Achievement 12 Organizational Chart 13 Financial Section Independent Auditor’s Report 17 Management’s Discussion and Analysis (MD&A) 23 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 36 Statement of Activities 37 Fund Financial Statements: Balance Sheet – Governmental Funds 40 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 43 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the Statement of Activities 46 Statement of Net Position – Proprietary Funds 47 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 48 Statement of Cash Flows – Proprietary Funds 49 Notes to Financial Statements 50 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: General Fund 68 Highway User Revenue Fund 69 Grants Fund 70 Note to Required Supplementary Information 71 Combining and Individual Fund Financial Statements and Schedules Governmental Funds: Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 80 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Downtown Strategy 82 Economic Development 83 Tourism 84 Public Art 85 Town of Fountain Hills, Arizona      Table of Contents       Financial Section – continued Page  Combining and Individual Fund Financial Statements and Schedules  Governmental Funds:  Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:  Local Court Enhancement 86  Environmental 87  Cottonwoods Maintenance 88  General Obligation Debt Service 89  Eagle Mountain Debt Service 90  Municipal Property Corporation Debt Service 91  Capital Projects 92  Development Fees 93    Internal Service Funds:  Combining Statement of Net Position 96  Combining Statement of Revenues, Expenses and Changes in Fund Net Position 97  Combining Statement of Cash Flows 98    Statistical Section  Financial Trends:   Net Position by Component 100  Changes in Net Position 102  Fund Balances – Governmental Funds 104  Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds  106  Revenue Capacity:  Governmental Activities – Tax Revenues by Source 108  Sales Tax Payers by Category 109  Taxable Sales by Category 110  Direct and Overlapping Sales Tax Rates  112  Debt Capacity:  Ratios of Outstanding Debt by Type 113  Ratios of General Bonded Debt Outstanding 114  Direct and Overlapping Governmental Activities Debt 115  Legal Debt Margin Information 116  Calculation of Legal Debt Margin 118  Revenue Bond Coverage 119  Demographic and Economic Information:  Demographic and Economic Statistics 120  Principal Employers 121  Operating Information:  Authorized Full‐Time Equivalent Government Employees by Function 122  Operating Indicators by Function 123  Capital Assets Statistics by Function 124    (This page intentionally left blank) Introductory Section (This page intentionally left blank)  www.fountainhillsaz.gov   October 31, 2024    To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Fountain Hills:    State law requires that all general‐purpose local governments publish, within six months of the close  of each fiscal year, a complete set of financial statements presented in conformity with accounting  principles generally accepted in the United States of America and audited in accordance with auditing  standards generally accepted in the United States by a certified public accounting firm licensed in the  State of Arizona. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial  Report (ACFR) of the Town of Fountain Hills (Town) for the fiscal year ended June 30, 2024.    This report consists of management’s representations concerning the finances of the Town.  Consequently, management assumes full responsibility for the completeness and reliability of all of  the information presented in this report. To provide a reasonable basis for making these  representations, management of the Town has established a comprehensive internal control  framework that is designed both to protect the government’s assets from loss, theft, or misuse and  to compile sufficient reliable information for the preparation of the Town of Fountain Hills’ financial  statements in conformity with accounting principles generally accepted in the United States of  America. Because the cost of internal controls should not outweigh their benefits, the Town’s  comprehensive framework of internal controls has been designed to provide reasonable rather than  absolute assurance that the financial statements will be free of material misstatement. As  management, we assert that, to the best of our knowledge and belief, this financial report is complete  and reliable in all material respects.    The Town’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public  accounting firm. The goal of the independent audit was to provide reasonable assurance that the  financial statements of the Town for the fiscal year ended June 30, 2024, are free of material  misstatement. The independent audit involved examining, on a test basis, evidence supporting the  amounts and disclosures in the financial statements; assessing the accounting principles used and  significant estimates made by management; and evaluating the overall financial statement  presentation. The independent auditors concluded, based upon the audit, that there was a  reasonable basis for rendering an unmodified opinion that the Town’s financial statements for the  fiscal year ended June 30, 2024, are fairly presented in conformity with accounting principles  generally accepted in the United States of America. The independent auditor’s report is presented as  the first component of the financial section of this report.    TOWN OF FOUNTAIN HILLS  16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268  480.816.5100 | Fax: 480.837.3145  Page 1 Accounting principles generally accepted in the Unites States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Fountain Hills’ MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE GOVERNMENT The Town of Fountain Hills overlooks the Verde River Valley and the east valley of the metro Phoenix area. The Town is a master planned community established in 1970 by McCulloch Properties (now MCO Properties, Inc.). Prior to 1970, the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. The land was purchased by Robert McCulloch in the late 1960s and the community designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and Scottsdale on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima-Maricopa Indian Community on the south, and by the McDowell Mountain Regional Park on the north. The elevation is 1,520 feet at the fountain, 2,460 feet at the Adero Canyon Trailhead, and is approximately 500 feet above Phoenix. Over the past thirty years, Fountain Hills has grown from 10,030 residents to a town of about 24,000 in 2023. On June 5, 2006, the Town of Fountain Hills became twenty square miles and about ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State Trust Land occurred over a two- and a-half-year period, and development of the land may occur in the years to come. Annexing this property into the Town ensures that its possible future development will be of the highest quality under Town standards. The Town offers a wide range of living accommodations, from small condominium complexes to large custom homes. Fountain Hills also offers recreational and cultural programs and services that contribute to a high quality of life for its residents. The community consists of primarily residential property and open space; of the total 20.32 square miles of land, only 2.5% of the total is zoned commercial and/or industrial, 24.7% is preserved as open space and 48.5% is residential. Page 2 The Town’s Mission Statement The Town of Fountain Hills’ purpose is to serve the best interests of the community by: •providing for the safety and well-being of its residents and visitors; •respecting its special, small-town character and quality of life; •providing superior public services; •sustaining the public trust through open and responsive government; •and maintaining the stewardship and preservation of its financial and natural resources. To serve, respect, and provide trust and stewardship. The Town of Fountain Hills is an Arizona municipal corporation, acting as a general law town as prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989, with the governmental and administrative affairs of the Town operating under the Council-Manager form of government. Legislative authority is vested in a seven member Town Council. The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town Council meetings. The members of the Council are elected at large and serve four year overlapping terms. The Town Council is responsible for the adoption of local ordinances, budget adoption, appointment of residents to citizen advisory committees and hiring the Town Manager. The Town Manager is responsible for implementation of the policies of the Town Council and overall management of the Town through department directors and approximately 105 full-time equivalent (FTE) employees. The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town Council. The Town provides or administers a full range of services including public safety (law enforcement, fire and emergency medical services); development services (code enforcement, planning and zoning); public works (including construction and maintenance of streets and infrastructure); municipal court; recreational activities; community center; senior services and cultural events. The Town does not maintain utility or other operations that require the establishment of enterprise funds. Fountain Hills Town Hall Page 3 The financial reporting entity (the Town) includes all the funds of the primary government (i.e., the Town  of Fountain Hills as legally defined) as well as all of its component units. The component units consist of  legally separate entities for which the primary government is financially accountable. Blended component  units, although legally separate entities, are, in substance, part of the primary government’s operations  and are included as part of the primary government. Accordingly, the Cottonwoods Maintenance District,  the Eagle Mountain Community Facilities District and the Fountain Hills Municipal Property Corporation  are included in the financial report of the Town.    FACTORS AFFECTING FINANCIAL CONDITION    The information presented in the financial statements is perhaps best understood when it is considered  from the broader perspective of the specific environment within which the Town of Fountain Hills  operates.  Internal Controls    As earlier noted, the management of the Town of Fountain Hills is responsible for establishing and  maintaining a system of internal control. Internal accounting controls are designed to provide reasonable,  but not absolute, assurance regarding;    1) Safeguarding of assets against loss from unauthorized use or disposition, and  2) Reliability of financial records for preparing financial statements and maintaining  accountability for assets.    The concept of reasonable assurance recognizes:    1) The cost of a control should not exceed the benefits likely to be derived, and  2) The valuation of costs and benefits requires estimates and judgments by management.    The system of internal control is subject to periodic evaluation by management and is also considered by  the independent auditors in connection with the annual audit of the Town’s financial statements. All  internal control evaluations occur within the above framework. The Town's internal accounting controls  are considered to adequately safeguard assets and provide reasonable assurance of proper recording of  financial transactions.    Budgetary Controls    The budget process is a cyclical process and begins each year with the preparation of the base budget by  each department head. Each budget is based on expenditures to date and the previous years’ experience.  The departments’ base budgets, along with any requests for new positions, programs or services are  reviewed by the Town Manager. The Town Manager then meets with department heads to review their  base budgets and requests for new services and/or programs. Once management has reviewed the  departments’ requests, a tentative budget is presented to the Town Council by the Town Manager.    Page 4 The Town Council formally adopts the budget and appropriates funding for the General Fund, Special  Revenue Funds, Debt Service Funds, Capital Projects Funds, and Internal Service Funds. Therefore, these  funds have appropriated budgets, and budget to actual information is presented. In April/May, the Town  Manager submits to the Town Council a proposed budget for the fiscal year commencing on July 1st. The  budget includes proposed expenditures and the means of financing them. The Town Council is then  required to hold public hearings on the proposed budget and to adopt a final budget by June 30, the close  of the Town of Fountain Hills’ fiscal year. Public hearings on the budget are held each year in accordance  with legal requirements to obtain comments from local residents. The budget is legally enacted through  passage of a resolution and is prepared by fund and department. The resolution sets the limit for  expenditures during the fiscal year. The Town Manager may authorize transfers between departments;  however, all inter‐fund transfers are approved by Town Council. Additional expenditures may be  authorized for expenditures directly necessitated by a natural or man‐made disaster as prescribed in the  State Constitution, Article IX, Section 20.    The Town is subject to the State of Arizona’s Expenditure Limitation Law for Towns and Cities. This law  limits the amount of local revenues (as defined in the State Constitution, Article IX, Section 20) the Town  may spend each year. The state adjusts the limitation each year for changes in population and inflation.  The limitation is applied to the total expenditures of local revenues of all funds. The law does not limit the  Town’s expenditures of revenues excluded from the State Constitution’s definition of local revenue.    To ensure compliance with the state‐imposed expenditure limitation, a uniform expenditure report must  be filed with the state’s Auditor General each year. This report reconciles total Town expenditures from  the audited financial statements to total expenditures for reporting in accordance with the state’s uniform  expenditure reporting system (ARS Section 41‐1279.07) and reduces total expenditures by expenditures  that are not subject to the expenditure limitation.     The appropriated budget is prepared by fund and department. Department heads may make transfers of  non‐personnel appropriations within their department and all appropriations lapse at year‐end. Transfers  of appropriations between departments require Town Manager approval, and all inter‐fund transfers  require Town Council approval. Budget‐to‐actual comparisons are provided in this report for each  individual governmental fund for which an appropriated annual budget has been adopted. Budget‐to‐ actual comparisons for the General Fund, Streets Fund, and Grants Fund are presented in the Required  Supplementary Information and all other funds are presented in Combining and Individual Fund Financial  Statements and Schedules.    Local Economy    The Town of Fountain Hills relies mostly on its Transaction Privilege Tax (Sales Tax) and State Shared  Revenue collections to fund nearly 90% of its  General Fund (Operating) expenditures.  During the past fiscal year, the Town’s  revenue collections from these sources  exceeded the budgeted expectations.  Sales tax revenues continued to grow or  remained stable during the fiscal year, and  state shared revenues were mostly in line  with expectations, with some  slowdown in  certain categories of local sales taxes. With  Page 5 the possibility of a recession in the coming fiscal year, the Town will be closely monitoring these revenue  sources and make adjustments as needed.  The following chart is a look at the past five years’ local sales tax activity by category:  As shown in the chart, sales tax collections are beginning to show signs of slowing growth but have  maintained relative stability across most categories. Retail sales, the largest category of sales tax revenue,  experienced a 2% increase over the prior year. Restaurant/Bar and Services revenue showed slight  decreases of 4% and 3%, respectively, compared to FY23. These trends of decreasing revenues may be a  sign of a slowing local economy and will be monitored each year by Finance staff.  Construction sales tax,  a one‐time revenue source, is driven entirely by development activity in the community and decreased by  7% from the prior year but maintained substantially higher revenues than previous fiscal years 2020  through 2022. These increased sustained revenue levels show that development and construction activity  may coincide with the State’s increased level of development activities. The  Transportation/Communication/Utility category also increased slightly during the year. Although Real  Estate increased by 7% from the prior year, about half of this category will no longer be collected once  the State of Arizona’s ban on long‐term residential rental taxes becomes effective during the next fiscal  year.    Construction activity provides revenue to the Town through sales taxes based on the value of the project,  50% of these proceeds are utilized for general operations and the other 50% for capital expenditures.  Since this funding source is rarely enough to meet capital project needs, the Town must find additional  funds to pay for necessary infrastructure projects.   State‐shared revenues are derived as a proportionate share of state sales, income and vehicle license  taxes which are distributed based on the Town’s population compared to all other incorporated cities and  towns in Arizona (currently 0.40%).  State shared income tax revenue is based on personal and corporate  earnings from two years ago. Revenue from this category increased by 39.5% in fiscal year 2023‐24 due  to delayed tax collections from COVID. However, Town projections show that these revenues will stabilize  and decrease next fiscal year. State shared sales tax has increased over the past several years, and this  year continued the trend by increasing revenue by 1.8% compared to the prior year.   $‐  $2  $4  $6  $8  $10  $12 Construction Utilities Wholesale & Retail Restaurants & Bars Real Estate Services Misc MI L L I O N S Transaction Privilege Tax  Revenues by Category Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 Page 6 Other local activity has remained fairly consistent during the period. The opportunity to further expand  the retail tax base in Fountain Hills is limited by the lack of available commercial land – over 81% of the  currently available commercial lots are already developed.   Development Activity  Town‐Wide Building Permits Issued          Page 7 Economic Outlook Retail Sales – Not having a property tax, the Town of Fountain Hills relies heavily on transaction privilege taxes (TPT), sometimes called a sales tax. Overall, Town TPT revenues provided almost 55% of the General Fund revenues in FY2024. On November 1, 2019, the Town’s TPT rate went up 0.3% to the current rate of 2.9%. Hospitality-related collections are the most susceptible to changes in economic conditions. Construction TPT is also highly tied to the health of the economy and is equally divided between the General Fund and the Capital Projects Fund. State Shared Revenues – The Town of Fountain Hills receives significant revenue allocations from the State. These State shared revenues, include allocations of the state-collected income tax, sales tax, fuel tax and vehicle license taxes. All but the fuel tax and 70% of the vehicle license taxes are placed in the Town's General Fund, where it is used to sustain a large portion of the Town's day-to-day activities. Ultimately, each of these revenue sources will be negatively affected by inflation, as well as the Federal Reserve’s fight against it. Streets Fund (HURF) – The Town receives a proportionate share of the fuel tax collected in Maricopa County. These revenues are placed in the Streets Fund to be used specifically for street maintenance and related activity. Although the State shared revenue formula generally allocates revenues based on official census data, in recent years, the Town’s population has slightly decreased which has resulted in relatively- flat shared revenues. Therefore, recent increased budgeted expenditures must be replaced by existing fund balance and transfers from the General Fund, which increases pressure to maintain operations across the Town. Long-term Financial Planning Fountain Hills’ Financial Policies are balanced on sound financial reserves and conservative revenue growth forecasts for the foreseeable future. However, potential for State legislative impacts to revenue- sharing, reductions in local revenues, and additional demands for essential Town services remain. The Town’s Financial Policies set forth guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated. The Town’s Financial Policies have helped weather the uncertainty encountered during the pandemic and the years that have followed. This policy continues to require the Town to retain an amount equal to 20% of the average actual General Fund revenues for the preceding five fiscal years as part of its General Fund balance. This amount is estimated to cover approximately 60 days of General Fund expenditures and is considered a “Rainy Day” fund. Additionally, a reserve of 20% of the average actual General Fund revenues for the preceding five fiscal years will be maintained as Unassigned Fund Balance. This additional fund balance reserve will provide increased flexibility in the event of unanticipated decreases in revenue collection. The Council also adopted Financial Policies that include guidelines for the issuance of debt for capital expenditures, community facility districts, financing alternatives, expenditure controls and financial planning. The policy was amended during FY 09-10 to reduce the allocation of the local construction sales tax to the Capital Projects Fund from 85% to 50%, reflecting the transition from one-time building activity to ongoing redevelopment activity. The debt policy was prepared with a preference for “pay-as-you-go” financing for capital spending. However, the policy does allow for bond financing of larger projects so that the cost can be equitably distributed among the Town’s current and future residents. Page 8   In 2020, the Strategic Planning Advisory Commission (SPAC) began the process of gathering public input  to update the Strategic Plan’s vision, confirm residents’ values, and create a fresh structure for the  Strategic Plan revision. However, the pandemic delayed this effort. Subsequently, Strategic Plan 2022 was  built upon the foundation of four Strategic Priorities, eleven Signature Strategies, and twenty‐three  Supporting Tasks. Based on citizen input, the Strategic Plan is designed to guide our future decisions  grounded on these common priorities:  1. Targeted Collaborative Economic Development  2. Promote the Long‐Term Financial Sustainability of Town Infrastructure, Environmental, and Social  Resources  3. Continue to Improve the Public Health, Well‐Being, and Safety of Our Town  4. Maintain Current Infrastructure While Preparing the Town for Emerging Trends that Increase  Public Safety and Quality of Life    MAJOR INITIATIVES, SERVICE EFFORTS AND ACCOMPLISHMENTS     The Town of Fountain Hills’ adopted budget for fiscal year 2023‐24 reflected a cautious approach to the  continued recovery from the pandemic and increasing inflation. Due to the uncertain economic conditions  ahead, the Town approached revenue projections cautiously and kept expenditure levels low as well.  Throughout FY22 and FY23, the American Rescue Plan Act (ARPA) provided resources to local  governments through the State of Arizona. These resources allowed the Town to save $8.4 million in the  General Fund that would have otherwise been spent to pay for public safety contracts with Maricopa  County Sheriff’s Office and Rural Metro.   As Pavement Management has been a priority for many years, Council approved transfers of $8.4 million  from the General Fund to the Streets Fund related to General Fund savings.  Council also approved another  $2.0 million of transfers from the General Fund into the Streets Fund in FY24 through the FY25 budget  process that will be processed early next fiscal year. Although these infusions will not resolve all the  pavement issues in Town, it will provide available fund balances for future expenditures while other  options are researched and implemented.  For the Year    The following list depicts the continued commitment of the Town of Fountain Hills to make the community  a better place to live. Fiscal year 2023‐24 goals attained are summarized within this list of  accomplishments:     Transitioned a contracted vendor into a fully operational in‐house Fire Department   Completed over 8.98 miles of paved roadways within the Town    Applied 8,800 linear feet of crack seal, 6,640 square yards of asphalt repair, and 353,130  square yards of preservative treatment to improve streets   Installed 1,500 linear feet of new sidewalk   Secured grant funding from the Arizona Office of Tourism ‐ Proposition 302   Secured grant funding from Salt River Pima‐Maricopa Indian Community ‐ Proposition 202   Adopted the 2023‐2026 Community Economic Development Strategy   Community Services awarded Best Event (Spooky Blast) and Outstanding Facility (Fountain  Park Playground) by the Arizona Parks and Recreation Association  Page 9 •Added new parks improvements such as outdoor fitness equipment at Desert Vista Park and a 3,000 square foot picnic area at Fountain Park •Delivered almost 6,000 meals provided through the Home Delivered Meal program •Provided 376 rides to residents through Give a Lift program for medical appointments AWARDS AND ACKNOWLEDGEMENTS Awards The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Fountain Hills for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the twenty-eighth consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, the Town published an easily readable and efficiently organized ACFR. This report satisfied both accounting principles generally accepted in the United States of America (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement program’s requirements, and we will be submitting it to the GFOA to determine its eligibility for the fiscal year ended 2024 Certificate. In addition, the government received the GFOA’s Distinguished Budget Presentation Award for its annual budget for the fiscal year beginning July 1, 2023. In order to qualify for the Distinguished Budget Presentation Award, the government’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. This is the twenty-second consecutive year that the Town has received the award. Acknowledgments The preparation of this Annual Comprehensive Financial Report could not have been accomplished without the efficient and dedicated services of the entire Finance Division. I also wish to extend my appreciation to the Mayor and members of Town Council for their leadership and support in planning and conducting the financial affairs of the Town in a responsible and progressive manner. Each employee of the Town has my sincere appreciation for the contributions made in the preparation of this report. Respectfully submitted, Rachael Goodwin Town Manager Page 10 Town of Fountain Hills, Arizona  List of Principal Officials  June 30, 2024      Elected Officials    Ginny Dickey, Mayor    Brenda Kalivianakis, Vice‐Mayor    Gerry Friedel, Councilmember    Sharron Grzybowski, Councilmember    Peggy McMahon, Councilmember    Allen Skillicorn, Councilmember    Hannah Toth, Councilmember    Town Manager & Directors    Rachael Goodwin, Town Manager    David Trimble, Deputy Town Manager/Administrative Services Director     Linda Mendenhall, Town Clerk    Kevin Snipes, Community Services Director    John Wesley, Development Services Director    Amanda Jacobs, Economic Development Director    Dave Ott, Fire Chief    Paul Soldinger, Chief Financial Officer    Justin Weldy, Public Works Director    Aaron Arnson, Pierce Coleman PLLC, Town Attorney    Mark Iacovino, The Law Office of Mark Iacovino, Town Prosecutor    Captain Larry Kratzer, Maricopa County Sheriff’s Office, District Commander    Robert Melton, Presiding Judge  Page 11 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Fountain Hills Arizona For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO Page 12 Citizens of Fountain HillsCitizens of Fountain Hills Presiding Judge Town of Fountain Hills Organization Fire / EMS AdministrationAdministration Law  Enforcement Town Manager Town AttorneyTown Prosecutor Appointed by Council Contracted Mayor and Town CouncilMayor and Town Council Development  Services Recreation Community  Services Community Center Code  Enforcement Building Safety Senior  Services Parks Volunteer  Program GIS Planning Engineering Streets Facilities Public Works Inspection Finance Finance  Town ClerkTown Clerk Administrative  Services Administrative  Services Economic  Development /  Tourism Economic  Development /  Tourism Community  Relations Community  Relations FY 2024 Page 13 (This page intentionally left blank) Page 14 Financial Section  Page 15 (This page intentionally left blank) Page 16 Independent Auditor’s Report      Honorable Mayor and Members of the Town Council  Town of Fountain Hills, Arizona    Report on Audit of Financial Statements    Opinions  We have audited the accompanying financial statements of the governmental activities, each major fund,  and the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of and for the  year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise  the Town’s basic financial statements as listed in the table of contents.    In our opinion, the financial statements referred to above present fairly, in all material respects, the  respective financial position of the governmental activities, each major fund, and the aggregate remaining  fund information of the Town of Fountain Hills, Arizona, as of June 30, 2024, and the respective changes  in financial position and, where applicable, cash flows thereof for the year then ended in accordance with  accounting principles generally accepted in the United States of America.    Basis for Opinions  We conducted our audit in accordance with auditing standards generally accepted in the United States of  America and the standards applicable to financial audits contained in Government Auditing Standards,  issued by the Comptroller General of the United States. Our responsibilities under those standards are  further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our  report. We are required to be independent of Town of Fountain Hills, Arizona, and to meet our other ethical  responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that  the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.    Responsibilities of Management for the Financial Statements  Management is responsible for the preparation and fair presentation of the financial statements in  accordance with accounting principles generally accepted in the United States of America, and for the  design, implementation, and maintenance of internal control relevant to the preparation and fair  presentation of financial statements that are free from material misstatement, whether due to fraud or  error.    In preparing the financial statements, management is required to evaluate whether there are conditions  or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue  as a going concern for one year beyond the financial statement date, including any currently known  information that may raise substantial doubt shortly thereafter.    Page 17 Auditor’s Responsibilities for the Audit of the Financial Statements  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are  free from material misstatement, whether due to fraud or error, and to issue an auditor's report that  includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and  therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing  standards and Government Auditing Standards will always detect a material misstatement when it exists.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from  error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override  of internal control. Misstatements are considered material if there is a substantial likelihood that,  individually or in the aggregate, they would influence the judgment made by a reasonable user based on the  financial statements. In performing an audit in accordance with generally accepted auditing standards and  Government Auditing Standards, we:     Exercise professional judgment and maintain professional skepticism throughout the audit.   Identify and assess the risks of material misstatement of the financial statements, whether due to  fraud or error, and design and perform audit procedures responsive to those risks. Such procedures  include examining, on a test basis, evidence regarding the amounts and disclosures in the financial  statements.   Obtain an understanding of internal control relevant to the audit in order to design audit  procedures that are appropriate in the circumstances, but not for the purpose of expressing an  opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is  expressed.   Evaluate the appropriateness of accounting policies used and the reasonableness of significant  accounting estimates made by management, as well as evaluate the overall presentation of the  financial statements.   Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,  that raise substantial doubt about the Town’s ability to continue as a going concern for a  reasonable period of time.    We are required to communicate with those charged with governance regarding, among other matters,  the planned scope and timing of the audit, significant audit findings, and certain internal control related  matters that we identified during the audit.    Other Matters  Required Supplementary Information  Accounting principles generally accepted in the United States of America require that the Management’s  Discussion and Analysis, and budgetary comparison information, as listed in the table of contents, be  presented to supplement the basic financial statements. Such information is the responsibility of  management and, although not a part of the basic financial statements, is required by the Governmental  Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the  basic financial statements in an appropriate operational, economic, or historical context. We have applied  certain limited procedures to the required supplementary information in accordance with auditing  standards generally accepted in the United States of America, which consisted of inquiries of management  about the methods of preparing the information and comparing the information for consistency with  management’s responses to our inquiries, the basic financial statements, and other knowledge we  obtained during our audit of the basic financial statements. We do not express an opinion or provide any  assurance on the information because the limited procedures do not provide us with sufficient evidence  to express an opinion or provide any assurance.  Page 18 Supplementary Information  Our audit was conducted for the purpose of forming opinions on the financial statements that collectively  comprise the Town’s basic financial statements. The Combining and Individual Fund Financial Statements  and Schedules are presented for purposes of additional analysis and are not a required part of the basic  financial statements. Such information is the responsibility of management and was derived from and  relates directly to the underlying accounting and other records used to prepare the basic financial  statements. Such information has been subjected to the auditing procedures applied in the audit of the  basic financial statements and certain additional procedures, including comparing and reconciling such  information directly to the underlying accounting and other records used to prepare the basic financial  statements or to the basic financial statements themselves, and other additional procedures in  accordance with auditing standards generally accepted in the United States of America. In our opinion,  the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all  material respects in relation to the basic financial statements as a whole.    Other Information  Management is responsible for the other information included in the annual report. The other information  comprises the Introductory Section and Statistical Section but does not include the basic financial  statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover  the other information and we do not express an opinion or any form of assurance thereon.   In connection with our audit of the basic financial statements, our responsibility is to read the other  information and consider whether a material inconsistency exists between the other information and the  basic financial statements, or the other information otherwise appears to be materially misstated. If,  based on other work performed, we conclude that an uncorrected material misstatement of the other  information exists, we are required to describe it in our report.  Other Reporting Required by Government Auditing Standards  In accordance with Government Auditing Standards, we have also issued our report dated   October 31, 2024, on our consideration of Town of Fountain Hills, Arizona’s internal control over financial  reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and  grant agreements and other matters. The purpose of that report is solely to describe the scope of our  testing of internal control over financial reporting and compliance and the results of that testing, and not  to provide an opinion on the effectiveness of the Town of Fountain Hills, Arizona’s internal control over  financial reporting or on compliance. That report is an integral part of an audit performed in accordance  with Government Auditing Standards in considering Town of Fountain Hills, Arizona’s internal control over  financial reporting and compliance.  Heinfeld, Meech & Co., P.C.  Scottsdale, Arizona  October 31, 2024  Page 19 (This page intentionally left blank) Page 20 Management’s Discussion and Analysis (MD&A)  (Required Supplementary Information)    Page 21 (This page intentionally left blank) Page 22 Town of Fountain Hills, Arizona  Management’s Discussion and Analysis (MD&A)  Year Ended June 30, 2024      As management of the Town of Fountain Hills, Arizona (Town), we offer readers of the Town’s  financial statements this narrative overview and analysis of the financial activities of the Town for  the fiscal year ended June 30, 2024. This discussion and analysis is intended to be an easily readable  breakdown of the Town of Fountain Hills’ financial activities based on currently known facts,  decisions and conditions. This analysis will focus on current year activities and operations and should  be read in combination with the transmittal letter and the financial statements that follow. The  management’s discussion and analysis is presented as required supplementary information to  supplement the basic financial statements.    Financial Highlights     The Town’s total net position of governmental activities increased $6.9 million to $150.3 million,  representing a 4.8 percent increase of the total net position.     General revenues from governmental activities accounted for $34.6 million in revenue, or 86  percent of all revenues from governmental activities. Program specific revenues in the form of  charges for services and grants and contributions accounted for $5.6 million or 14 percent of  total governmental activities revenues.      The Town had $33.3 million in expenses related to governmental activities, an increase of 5.0  percent from the prior fiscal year, primarily due to increased payroll and contractual costs.     Among the major governmental funds, the General Fund had $30.8 million in current fiscal year  revenues, which consisted primarily of transaction privilege (sales) tax and intergovernmental  revenues. The total expenditures of the General Fund were $21.7 million. The General Fund’s  fund balance increased $1.9 million to $17.6 million at the end of the current fiscal year.    Overview of Financial Statements    This discussion and analysis is intended to serve as an introduction to the Town’s basic financial  statements. The Town’s basic financial statements comprise three components:  1) government‐wide  financial statements, 2) fund financial statements, and 3) notes to the financial statements. This  report also contains other supplementary information in addition to the basic financial statements  themselves.  Page 23 Town of Fountain Hills, Arizona  Management’s Discussion and Analysis (MD&A)  Year Ended June 30, 2024      Overview of Financial Statements – continued    Government‐wide financial statements. The government‐wide financial statements provide readers  with a broad overview of the Town’s finances, in a manner similar to a private‐sector business. These  statements are prepared using the accrual basis of accounting.    The Statement of Net Position presents information on all of the Town’s assets, liabilities, and  deferred inflows/outflows of resources with the difference reported as net position. Over time,  increases or decreases in net position may serve as a useful indicator of whether the financial position  of the Town is improving or deteriorating.    The Statement of Activities presents information showing how the Town’s net position changed  during the most recent fiscal year. All changes in net position are reported as soon as the underlying  event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues  and expenses are reported in this statement for some items that will only result in cash flows in future  fiscal periods (e.g., earned but unused compensated absences).    The government‐wide financial statements distinguish functions of the Town that are principally  supported by taxes and intergovernmental revenues (governmental activities). The governmental  activities of the Town include administration, development services, public safety, public works, and  culture and recreation.    Fund financial statements. A fund is a grouping of related accounts that is used to maintain control  over resources that have been segregated for specific activities or objectives. The Town uses fund  accounting to ensure and demonstrate compliance with finance‐related legal requirements. All Town  funds are included in the governmental fund classification, except for two internal service funds that  are classified as proprietary funds.    Governmental funds. Governmental funds are used to account for essentially the same functions  reported as governmental activities in the government‐wide financial statements. However,  unlike the government‐wide financial statements, governmental fund financial statements use  the modified accrual basis of accounting and focus on near‐term inflows of spendable resources,  as well as on balances of spendable resources available at the end of the fiscal year. Such  information may be useful in evaluating the Town’s near‐term financing requirements.    Internal service funds. These types of funds are classified as proprietary funds, and are used to  report activity in the Technology Replacement Fund and the Vehicle and Equipment Replacement  Fund. These funds provide goods and services to other funds and departments on a cost‐ reimbursement basis. The activity is intended to operate on an essentially “break‐even” basis  over time.    Page 24 Town of Fountain Hills, Arizona  Management’s Discussion and Analysis (MD&A)  Year Ended June 30, 2024      Overview of Financial Statements – continued    Because the focus of governmental funds is narrower than that of the government‐wide financial  statements, it is useful to compare the information presented for governmental funds with similar  information presented for governmental activities in the government‐wide financial statements. By  doing so, readers may better understand the long‐term impact of the Town’s near‐term financing  decision. Both the governmental fund balance sheet and the governmental fund statement of  revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this  comparison between governmental funds and governmental activities.    Information is presented separately in the governmental fund balance sheet and in the governmental  fund statement of revenues, expenditures and changes in fund balances for the General, Highway  User Revenue (HURF), Grants, and Capital Projects Funds, all of which are considered major funds.  Data from other governmental funds are combined into a single, aggregated presentation. Individual  fund data for each of these non‐major governmental funds is provided in the form of combining  statements and schedules.    Notes to the financial statements. The notes provide additional information that is essential to a full  understanding of the data provided in the government‐wide and fund financial statements. The notes  to the financial statements can be found immediately following the basic financial statements.    Other information. In addition to the basic financial statements and accompanying notes, this report  also presents certain required supplementary information concerning the Town’s budget process.  The Town adopts an annual budget for all funds. A schedule of revenues, expenditures and changes  in fund balances ‐ budget and actual has been provided for the General, Highway User Revenue and  Grant funds as required supplementary information.    Government‐Wide Financial Analysis    While this document contains information about the funds used by the Town to provide services to  its citizens, the Statement of Net Position and the Statement of Activities serve to provide an answer  to the question of how the Town, as a whole, did financially throughout the year. These statements  include all assets and liabilities using the accrual basis of accounting, similar to the accounting used  by the private sector. The basis for this accounting takes into account all of the current year’s  revenues and expenses regardless of when the cash is received or paid.    These two statements report the Town’s assets and the changes in those assets. The change in assets  is important because it tells the reader whether the financial position of the Town as a whole has  improved or diminished. However, in evaluating the overall position of the Town, non‐financial  information such as changes in the Town’s tax base and the condition of the Town’s capital assets  will also need to be evaluated.  Page 25 Town of Fountain Hills, Arizona  Management’s Discussion and Analysis (MD&A)  Year Ended June 30, 2024      Government‐Wide Financial Analysis – continued    Analysis of Net Position. Over time, net position may serve as a useful indicator of a government’s  financial position. In the case of the Town, assets related to governmental activities exceeded  liabilities by $150.3 million at the end of the fiscal year.     The largest portion of the Town’s governmental activities net position reflects its investment in  capital assets (e.g., land, infrastructure, buildings and improvements, vehicles, machinery and  equipment and construction in progress); less any related outstanding debt used to acquire those  assets. The Town uses these capital assets to provide services to its citizens; consequently, these  assets are not available for future spending. Although the Town’s investment in its capital assets is  reported net of related outstanding debt, it should be noted that the resources needed to repay this  debt must be provided from other sources, since the capital assets themselves cannot be used to  liquidate these liabilities. As the Town does not currently have any outstanding debt, the reported  amount represents the total invested in capital assets. In addition, a portion of the Town’s net  position represents resources that are subject to external restrictions on how they may be used. The  remaining balance is unrestricted and may be used to meet the Town’s ongoing obligations to its  citizens and creditors.    The following table presents a summary of the Town’s net position for the fiscal years ended  June 30, 2024 and June 30, 2023.     Governmental Activities    As of   As of  June 30, 2024 June 30, 2023  Current and other assets $        53,009,050   $        46,708,494   Capital assets, net 101,990,127  101,838,463  Total assets 154,999,177  148,546,957       Current and other liabilities 2,838,171  3,087,313  Long‐term liabilities 553,757  284,016  Total liabilities 3,391,928  3,371,329        Deferred inflows 1,274,470  1,734,697       Net position     Net investment in capital assets 101,990,127  101,838,463  Restricted 9,474,160  9,646,597  Unrestricted 38,868,492  31,955,871  Total net position $     150,332,779   $      143,440,931     At the end of the current fiscal year the Town reported positive balances in all three categories of net  position for governmental activities. The Town also reported positive balances in all net position  categories in the prior fiscal year.  Page 26 Town of Fountain Hills, Arizona Management’s Discussion and Analysis (MD&A) Year Ended June 30, 2024 Government-Wide Financial Analysis – continued The Town’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. Changes in net position. The Town’s total revenues for the current fiscal year were $40.2 million. The total cost of all programs and services was $33.3 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2024 and June 30, 2023. Governmental Activities Fiscal Year Ended June 30, 2024 Fiscal Year Ended June 30, 2023 Revenues Program revenues: Charges for services $ 2,717,731 $ 2,415,721 Operating grants and contributions 2,383,786 6,729,883 Capital grants and contributions 520,867 259,266 General revenues Property taxes 9,854 Sales taxes 20,559,928 20,586,294 Franchise taxes 351,118 382,948 State-sales and income tax revenue 9,888,965 8,039,448 Vehicle License taxes 1,242,636 1,182,243 Investment earnings 2,345,106 1,099,525 Miscellaneous 191,629 226,049 Total revenues $ 40,201,766 $ 40,931,231 Expenses General government $ 5,106,646 $ 4,890,912 Development services 1,324,892 1,206,991 Public safety 11,746,913 9,930,356 Public works 10,455,071 10,792,078 Culture and recreation 4,676,396 4,776,903 Total expenses 33,309,918 31,597,240 Changes in net position 6,891,848 9,333,991 Net position, beginning 143,440,931 134,106,940 Net position, ending $150,332,779 $143,440,931 Page 27 Town of Fountain Hills, Arizona  Management’s Discussion and Analysis (MD&A)  Year Ended June 30, 2024      Government‐Wide Financial Analysis – continued        The charts below compare the governmental expenses from fiscal years 2023‐24 and 2022‐23.                                 Sales taxes, 52%State shared  revenue, 25% Vehicle  license  taxes, 3% Charges for  services, 6% Operating grants  and contributions,  6%Other, 8% Governmental Activities Revenues Fiscal Year 2023‐24 Public  safety, 31% Public  works, 34% Culture  and  recreation,  15% General  government,  15% Development  services, 4% Fiscal Year  2022‐23 Expenses Public  safety, 35% Public  works, 31% Culture  and  recreation,  14% General  government,  15% Development  services, 4% Fiscal Year 2023‐24 Expenses Page 28 Town of Fountain Hills, Arizona Management’s Discussion and Analysis (MD&A) Year Ended June 30, 2024 Government-Wide Financial Analysis – continued The following items are significant current year transactions that have had an impact on the change of net position. • Revenues from state-shared revenues increased substantially for the fiscal year and accounted for approximately $1.8 million more than the prior fiscal year. The Town received its final American Rescue Plan Act (ARPA) payment during the prior fiscal year, which resulted in a significant decrease in operating grants and contributions from the prior year. • Expenses were up five percent across all prior year governmental functions, with the highest percentage increase seen within the Public Safety function. This was a result of the Town's transition from a contracted vendor to an in-house Fire Department. • Investment income increased $1.2 million as a result of increases to short-term investment rates within the State Treasurer's local government investment pool 7. The following table presents the cost of the Town’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the Town by each of these functions. Year Ended June 30, 2024 Year Ended June 30, 2023 Total Expenses Net (Expense)/ Revenue Total Expenses Net (Expense)/ Revenue Governmental Activities General government $ 5,106,646 $ (4,131,998) $ 4,890,912 $ (3,751,754) Development services 1,324,892 (630,242) 1,206,991 (444,062) Public safety 11,746,913 (11,546,893) 9,930,356 (5,523,668) Public works 10,455,071 (7,481,840) 10,792,078 (8,504,075) Culture and recreation 4,676,396 (3,896,561) 4,776,903 (3,968,811) Total expenses $ 33,309,918 $ (27,687,534) $ 31,597,240 $ (22,192,370) • The cost of all governmental activities this year was $33.3 million. • Federal, State, county, and tribal governments and charges for services subsidized certain governmental programs with revenues of $5.6 million. • The net cost of the Town’s governmental activities was $27.7 million, which was funded primarily by general revenues. General revenues consisted primarily of $20.6 million in sales taxes and $11.1 million in State-shared revenues. Page 29 Town of Fountain Hills, Arizona Management’s Discussion and Analysis (MD&A) Year Ended June 30, 2024 Financial Analysis of the Town’s Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the Town’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town’s net resources available for spending at the end of the fiscal year. The financial performance of the Town as a whole is reflected in its governmental funds. As the Town completed the year, its governmental funds reported an increase of $6.5 million in the combined fund balance from $39.8 million to $46.3 million. The General Fund comprises 38.0 percent of the total fund balance. Approximately $13.1 million, or 74.4 percent, of the General Fund’s fund balance is unassigned. The General Fund is the principal operating fund of the Town. The fund balance increased by $1.9 million to $17.6 million as of fiscal year end. General Fund revenues increased $2.5 million primarily due the increase in state-shared revenues and investment earnings discussed earlier. General Fund expenditures increased by $6.3 million primarily due to the Town's transition from a contracted vendor to an in-house Fire Department and the impact from moving grant-funded public safety expenditures back to the General Fund in the current fiscal year. The Highway User Revenue Fund comprises 20.7 percent of total fund balance. The fund balance increased $2.6 million from the prior year due to transfers from the General Fund discussed earlier and will continue to be used to fund the pavement management program in the next fiscal year. Fund balance of the Grants Fund increased $6,435 due to collection of opioid settlement revenues in excess of opioid abatement expenditures. The Capital Projects Fund comprises 30.6 percent of the total fund balance. All of the fund balance is assigned to capital projects. The fund balance increased $1.7 million due to transfers from the General Fund and decreased capital outlay expenditures. The Technology Replacement Fund and Vehicle and Equipment Replacement Fund are the Town’s proprietary funds. Unrestricted net position of these funds at the end of the fiscal year amounted to $2.7 million. This was an increase of $514,107 that was due to the Town charging funds in excess of actual vehicle and technology replacement expenditures and significantly higher investment earnings. Page 30 Town of Fountain Hills, Arizona Management’s Discussion and Analysis (MD&A) Year Ended June 30, 2024 Budgetary Highlights A majority of the budget transfers for the fiscal year moved budget authority between departments within the General Fund; however, the final budget for the General Fund did decrease $2.6 million as a result of a large transfer of General Fund contingency to the Capital Projects Fund for a streets widening project. However, the project was delayed to a subsequent year. A schedule showing the budget amounts compared to the Town’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows: • The favorable variance of $5.2 million in overall revenues is primarily due to strong actual revenues performance compared to conservative internal revenue projections. • The favorable total expenditures variance of $1.3 million is due primarily to lower than expected expenditures throughout all departments. Capital Assets and Debt Administration Capital Assets. As of the end of the current fiscal year, the Town had invested $102.0 million in capital assets, including buildings, facilities, vehicles, computers, equipment, infrastructure and artwork. This amount represents a net increase, prior to depreciation, of $3.4 million from the prior fiscal year. The increase was primarily due to various capital improvement projects, including community center improvements, upgrades to park amenities, and a sidewalk infill project. Total depreciation expense for the current fiscal year was $3.3 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2024 and June 30, 2023. Governmental Activities As of June 30, 2024 As of June 30, 2023 Capital assets – non-depreciable $ 34,761,936 $ 36,231,449 Capital assets – depreciable, net 67,228,191 65,607,014 Total $ 101,990,127 $ 101,838,463 The estimated construction commitments amount is $136,575. Additional information on the Town’s capital assets can be found in Note 5. Page 31 Town of Fountain Hills, Arizona Management’s Discussion and Analysis (MD&A) Year Ended June 30, 2024 Capital Assets and Debt Administration – continued Debt Administration. The Town does not currently have any outstanding debt. Therefore, there were not any town-wide taxes levied in fiscal year 2024. State statutes currently limit the amount of general obligation debt a Town may issue to a percentage of its total assessed valuation for water, sewer, artificial lighting, parks, open space, recreational facility improvements, public safety, law enforcement, fire and emergency facilities and street and transportation facilities. The current 20 percent debt limitation for the Town is $166.3 million. State statutes also currently limit the amount of general obligation debt a Town may issue to a percentage of its total assessed valuation for all other purposes. The current 6 percent debt limitation for the Town is $49.9 million. Additional information on the Town’s long-term liabilities can be found in Note 6 in the notes to the financial statements. Contacting the Town’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Division, Town of Fountain Hills, 16705 East Avenue of the Fountains, Fountain Hills, Arizona 85268 or visit our website at www.fountainhillsaz.gov. Page 32 Basic Financial Statements Page 33 (This page intentionally left blank) Page 34 Government-Wide Financial Statements Page 35 Governmental  Activities Assets Current assets: Cash and investments 49,708,197$          Accounts receivable 147,676 Intergovernmental receivable 1,679,102              Leases receivable 1,313,858              Interest receivable 107,078                  Inventory, at cost 5,099                      Prepaid items 48,040                    Total current assets 53,009,050            Noncurrent assets: Capital assets not being depreciated 34,761,936 Capital assets, net of accumulated depreciation 67,228,191            Total noncurrent assets 101,990,127          Total assets 154,999,177          Liabilities Current liabilities: Accounts payable 1,683,533              Accrued wages and benefits 420,311                  Other liabilities 2,777                      Customer deposits 54,892                    Compensated absences payable 445,406                  Unearned revenues 231,252                  Total current liabilities 2,838,171              Noncurrent liabilities: Non‐current portion of long‐term obligations 553,757                  Total noncurrent liabilities 553,757                  Total liabilities 3,391,928              Deferred inflows of resources Leases 1,274,470              Total deferred inflows of resources 1,274,470              Net position Net investment in capital assets 101,990,127 Restricted for: Public works 6,237,208              Local court enhancement 439,487                  Opioid abatement 390,988                  Capital outlay 2,348,186              Debt service 58,291                    Unrestricted 38,868,492            Total net position 150,332,779$        Town of Fountain Hills, Arizona Statement of Net Position June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 36 Functions/Programs Expenses Charges for  Services Operating Grants  and  Contributions Capital Grants  and  Contributions Governmental  Activities Governmental activities General government 5,106,646$          548,921$             409,931$             15,796$               (4,131,998)$         Development services 1,324,892 694,650                                                              (630,242)               Public safety 11,746,913 108,633 91,387                               (11,546,893)         Public works 10,455,071 736,967 1,850,986 385,278 (7,481,840)            Culture and recreation 4,676,396            628,560               31,482                  119,793               (3,896,561)            Total governmental activities 33,309,918$        2,717,731$          2,383,786$          520,867$             (27,687,534)         General revenues Taxes: Sales taxes 20,559,928 Franchise taxes 351,118 State sales & income tax revenue sharing ‐ unrestricted 9,888,965 Vehicle license tax revenue sharing ‐ unrestricted 1,242,636 Investment earnings 2,345,106 Miscellaneous 191,629                Total general revenues 34,579,382           Changes in net position 6,891,848             Net position, beginning of year 143,440,931         Net position, end of year 150,332,779$      Program Revenue Net (Expense)  Town of Fountain Hills, Arizona For the Year Ended June 30, 2024 Statement of Activities The notes to the basic financial statements are an integral part of this statement.Page 37 (This page intentionally left blank) Page 38 Fund Financial Statements Page 39 General Highway User  Revenue Grants Capital Projects Assets Cash and investments 17,425,328$        9,411,340$          290,388$             14,760,917$         Accounts receivable 122,260               25,416                                                                                 Intergovernmental receivable 954,380               285,500               390,988               15,796                   Leases receivable 1,313,858                                                                                                          Interest receivable 35,229                  16,062                                                 54,074                   Inventory, at cost 5,099                                                                                                                  Prepaid items 33,080                                                 13,500                                                  Total assets 19,889,234          9,738,318            694,876               14,830,787           Liabilities Accounts payable 548,647               131,147               318                       660,396                Accrued wages and benefits 391,451               22,754                                                                                 Other liabilities 752                       174                       15                         1,730                     Customer deposits 54,892                                                                                                                Unearned revenues 22,099                                                 209,153                                               Total liabilities 1,017,841            154,075               209,486               662,126                Deferred inflows of resources Unavailable revenues ‐ intergovernmental                                                              364,358                                               Unavailable revenues ‐ other 2,856                    24,614                                                 15,796                   Leases 1,292,985                                                                                                          Total deferred inflows of resources 1,295,841            24,614                  364,358               15,796                   Fund balances Nonspendable 38,179                                                 13,500                                                  Restricted                               6,223,708            26,630                                                  Committed 4,466,782                                                                                                          Assigned                               3,335,921            80,902                  14,152,865           Unassigned 13,070,591                                                                                                       Total fund balances 17,575,552          9,559,629            121,032               14,152,865           Total liabilities, deferred inflows of resources  and fund balances 19,889,234$        9,738,318$          694,876$             14,830,787$         Town of Fountain Hills, Arizona Balance Sheet Governmental Funds June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 40 Non‐Major  Governmental  Funds Total  Governmental  Funds 5,177,221$          47,065,194$                                       147,676                32,438                  1,679,102                                           1,313,858             1,713                    107,078                                              5,099                     1,460                    48,040                   5,212,832            50,366,047           338,556               1,679,064             6,106                    420,311                                              2,671                                                   54,892                                                 231,252                344,662               2,388,190                                           364,358                                              43,266                                                 1,292,985                                           1,700,609             1,460                    53,139                   2,845,964            9,096,302                                           4,466,782             2,020,746            19,590,434                                         13,070,591           4,868,170            46,277,248           5,212,832$          50,366,047$         Page 41 (This page intentionally left blank) Page 42 Total fund balances ‐ governmental funds 46,277,248$        Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Governmental capital assets 243,271,396$      Less accumulated depreciation (141,366,722)       101,904,674         Some receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable in the funds. Leases 18,515                   Intergovernmental 364,358                Other 43,266                   426,139                The Internal Service Fund is used by management to charge the cost of technology, vehicle and equipment replacement to the individual funds. The assets and liabilities of the Internal Service Fund are included in the Statement of Net Position. Capital assets 85,453                   Net positions of other remaining balance 2,638,428             2,723,881             Long‐term liabilities (compensated absences payable) are not due and payable in the current period and, therefore, are not reported in the funds.(999,163)               Net position of governmental activities 150,332,779$      Town of Fountain Hills, Arizona Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024 Amounts reported for governmental activities in the Statement of Net Position are different because: The notes to the basic financial statements are an integral part of this statement.Page 43 General Highway User  Revenue Grants Capital Projects Revenues Property taxes $                            $                            $                            $                             Sales taxes 16,834,517          1,417,926                                           1,598,522             Franchise taxes 351,118                                                                                                             Licenses and permits 1,411,600                                                                                                          Leases and rents 359,479                                                                                                             Intergovernmental 10,349,568          2,720,831            267,283               376,783                Charges for services 242,182               120                                                                                      Other 270,109               47,261                                                 12,000                   Fines and forfeitures 227,192                                                                                                             Investment earnings 728,524               558,549               15,288                  671,774                Total revenues 30,774,289          4,744,687            282,571               2,659,079             Expenditures Current: General government 3,942,569                                           265,136               506                        Development services 1,275,320                                                                                                          Public safety 11,330,144                                                                                                       Public works 1,554,076            6,192,221                                           594,473                Culture and recreation 3,426,968                                                                          25,158                   Capital outlay 189,436               115,695               11,000                  3,070,047             Debt service: Fiscal charges                                                                                                                             Total expenditures 21,718,513          6,307,916            276,136               3,690,184             Excess (deficiency) of revenues over expenditures 9,055,776            (1,563,229)           6,435                    (1,031,105)            Other financing sources (uses) Transfers in 245,884               4,200,000                                           6,907,884             Transfers out (7,407,884)                                                                        (4,200,000)            Total other financing sources (uses)(7,162,000)           4,200,000                                           2,707,884             Changes in fund balances 1,893,776            2,636,771            6,435                    1,676,779             Fund balances, beginning of year, previously reported 17,385,544          7,333,267            114,597               12,476,086           Adjustments to beginning fund balances (1,703,768)           (410,409)                                                                             Fund balances, beginning of year, as restated 15,681,776          6,922,858            114,597               12,476,086           Fund balances, end of year 17,575,552$        9,559,629$          121,032$             14,152,865$         Town of Fountain Hills, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 44 Non‐Major  Governmental  Funds Total  Governmental  Funds 9,841$                  9,841$                   708,963               20,559,928                                         351,118                325,441               1,737,041                                           359,479                119,793               13,834,258           5,000                    247,302                3,642                    333,012                28,651                  255,843                244,814               2,218,949             1,446,145            39,906,771           788,366               4,996,577                                           1,275,320                                           11,330,144           433,919               8,774,689             31,464                  3,483,590             137,399               3,523,577                                            208                       208                        1,391,356            33,384,105           54,789                  6,522,666             594,253               11,948,021           (340,137)              (11,948,021)         254,116                                               308,905               6,522,666             4,494,681            41,804,175           64,584                  (2,049,593)            4,559,265            39,754,582           4,868,170$          46,277,248$         Page 45 Changes in fund balances ‐ total governmental funds 6,522,666$          Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives and reported as depreciation expense. Expenditures for capitalized assets 3,523,573$           Less current year depreciation (3,317,963)            205,610                Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Leases 18,515                  Intergovernmental 140,648                Other 15,284                  174,447                Collections of property tax revenue in the governmental funds exceeded revenues  reported in the Statement of Activities.(26,334)                 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in  governmental funds. Loss on disposal of assets (139,399)               Compensated absences (359,249)               (498,648)               The Internal Service Fund is used by management to charge the cost of technology, vehicle and equipment replacement to the individual funds. The changes in net position of the Internal Service Fund is reported with governmental activities in the Statement of Activities.514,107                Changes in net position in governmental activities 6,891,848$          Reconciliation of the Statement of Revenues, Expenditures and For the Year Ended June 30, 2024 Town of Fountain Hills, Arizona Changes in Fund Balances of Governmental Funds to the Statement of Activities The notes to the basic financial statements are an integral part of this statement.Page 46 Governmental  Activities Internal Service  Funds Assets Current assets: Cash and investments 2,643,003$           Total current assets 2,643,003             Noncurrent assets: Capital assets, net of accumulated depreciation 85,453                   Total noncurrent assets 85,453                   Total assets 2,728,456             Liabilities Current liabilities: Accounts payable 4,469                     Other liabilities 106                        Total current liabilities 4,575                     Net position Net investment in capital assets 85,453                   Unrestricted 2,638,428             Total net position 2,723,881$           Town of Fountain Hills, Arizona Statement of Net Position Proprietary Funds June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 47 Governmental  Activities Internal Service  Funds Operating revenues Charges for services 419,994$              Total operating revenues 419,994                Operating expenses Costs of services 45,000                   Depreciation 7,769                     Total operating expenses 52,769                   Operating income (loss)367,225                Nonoperating revenues (expenses) Investment earnings 126,157                Gain on sale of capital assets 20,725                   Total nonoperating revenue (expenses)146,882                Changes in net position 514,107                Net position, beginning of year, previously reported 160,181                Adjustments to beginning net position 2,049,593             Net position, beginning of year, as restated 2,209,774             Net position, end of year 2,723,881$           Town of Fountain Hills, Arizona Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended June 30, 2024 Proprietary Funds The notes to the basic financial statements are an integral part of this statement.Page 48 Governmental  Activities Internal Service  Funds Increase/Decrease in Cash and Cash Equivalents Cash flows from operating activities Cash received from charges for services  $             419,994  Cash payments to suppliers for goods and services                  (40,425) Net cash provided by/used for operating activities                 379,569  Cash flows from capital activities Purchase of property and equipment                  (93,222) Proceeds from sale of capital assets                   31,173  Net cash provided by/used for capital activities                  (62,049) Cash flows from investing activities Investment income                 126,157  Net cash provided by/used for investing activities                 126,157  Net increase/decrease in cash and cash equivalents                 443,677  Cash and cash equivalents, beginning of year, as restated              2,199,326  Cash and cash equivalents, end of year  $         2,643,003  Reconciliation of Operating Income/Loss to Net Cash Provided by/Used for Operating Activities  Operating income/loss  $             367,225  Adjustments to reconcile operating income/loss   to net cash provided by/used for operating activities:  Depreciation 7,769                     Changes in assets and liabilities:  Increase/decrease in accounts payable                      4,469  Increase/decrease in other liabilities                         106  Total adjustments                   12,344    Net cash provided by/used for operating activities  $             379,569  Town of Fountain Hills, Arizona Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 49 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 1 – Summary of Significant Accounting Policies The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Town’s accounting policies are described below. A. Reporting Entity The Town’s major operations include development services, culture and recreation, public works, public safety and general administrative services. The Town is a municipal corporation governed by an elected Mayor and Council. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The Town is a primary government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component units combined with the Town for financial statement presentation purposes and the Town are not included in any other governmental reporting entity. Consequently, the Town’s financial statements include only the funds of those organizational entities for which its elected governing body is financially accountable. Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the Town. Property owners in the designated areas are assessed taxes for the costs of operating the Districts. The Town Council serves as the Board of Directors; however, the Town has no liability for the Districts’ debt, the Districts are responsible for the debt; the debt is therefore not subject to the Town’s debt limit. The Districts cannot be part of another reporting entity. The Districts’ governing bodies are substantially the same as the Town and the Town’s management oversees operations, resulting in the Town having the ability to exercise control. As a result, for financial reporting purposes, transactions of the Districts are combined together and included as if they were part of the Town’s operations. Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain Hills, Arizona Municipal Property Corporation’s (MPC) Board of Directors consists of three members which are appointed by the Fountain Hills Town Council. The MPC, which is a nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the sole purpose of assisting the Town in obtaining financing for various projects of the Town. The Town has a “moral obligation” for the repayment of the MPC’s bonds. The MPC cannot be part of another reporting entity. The MPC provides services exclusively to the Town. As a result, for financial reporting purposes, transactions of the MPC are combined together and included as if they were part of the Town’s operations. Page 50 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 1 – Summary of Significant Accounting Policies B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the Town as a whole. The reported information includes all of the Town's component units. For the most part, the effect of internal activity has been removed from these statements. Interfund services provided and used, such as interfund transfers, are not eliminated in the process of consolidation. Governmental activities normally are supported by taxes and intergovernmental revenues. The Town does not have any fiduciary or business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted state shared revenues, investment income and other items not included among program revenues are reported instead as general revenues. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Page 51 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 1 – Summary of Significant Accounting Policies Property taxes, sales taxes, franchise taxes, state shared revenues, licenses and permits, charges for services, and investment earnings associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible to accrual because generally they are not measurable until received in cash. Unearned revenues arise when resources are received by the Town before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. The Town reports the following major governmental funds. General Fund – The General Fund is the Town’s primary operating fund. This fund accounts for all financial resources of the Town, except those required to be accounted for in other funds. Highway User Revenue Fund (HURF) – This fund accounts for the Town’s share of motor vehicle fuel tax revenues and sales tax. Grants Fund – This fund accounts for the activities of various restricted grants and contributions received by the Town. Capital Projects Fund – This fund accounts for the capital improvements to various projects and equipment purchases of the Town. Additionally, the Town reports the following fund type: Proprietary Fund – The Proprietary Fund is comprised of two Internal Service Funds that account for the operation of technology, vehicle, and equipment replacement services to other Town departments on a cost reimbursement basis. The Proprietary Fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting and are presented in a single column. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Town’s internal service fund are charges to Town departments for technology, vehicle, and equipment replacement. Operating expenses for the internal service fund include the cost of goods and services. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Page 52 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 1 – Summary of Significant Accounting Policies D. Cash and Investments For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at year end was cash and investments in the State Treasurer’s Local Government Investment Pool. Cash and investments at year end were cash on hand, cash in bank, restricted cash, cash and investments held by the State Treasurer, and investments in the State Treasurer’s Local Government Investment Pool. Cash and investments are pooled, except for investments that are restricted under provisions of bond indentures or other restrictions that are required to be reported in the individual funds. Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, obligations of the U.S. Government and its agencies, obligations of the state and certain local government subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized repurchase agreements, certain obligations of U.S. corporations, and certain other securities. Investments are stated at fair value. Statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the Town’s investments. Arizona statute requires a pooled collateral program for public deposits and a Statewide Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of the pooled collateral program is to ensure that governmental entities’ public deposits placed in participating depositories are secured with collateral of 102 percent of the public deposits, less any applicable federal depository insurance. An eligible depository may not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on each depository’s compliance with the program. E. Investment Earnings Investment earnings is composed of interest, dividends, and net changes in the fair value of applicable investments. Investment earnings is a component of revenue in the governmental funds financial statements and is reported in nonoperating revenue in the proprietary fund financial statements. Page 53 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 1 – Summary of Significant Accounting Policies    F. Receivables and Payables    Activity between funds that is representative of lending/borrowing arrangements outstanding at  the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current  portion of interfund loans) or “advances to/from other funds” (i.e., the non‐current portion of  interfund loans). Interfund balances between governmental funds are eliminated on the  statement of net position.    G. Inventory    All inventories are valued at average cost using the first‐in/first‐out (FIFO) method. Inventories  consist of expendable supplies held for consumption. The cost of such inventories is recorded as  expenditures/expenses when consumed rather than when purchased.     H. Prepaid Items    Certain payments to vendors reflect costs applicable to future accounting periods and are  recorded as prepaid items in both the government‐wide and fund financial statements. The cost  of prepaid items is recorded as expenditures/expenses when consumed rather than when  purchased.     I. Capital Assets    Capital assets, which include land and improvements, artwork, buildings and improvements,  vehicles, machinery, and equipment, construction in progress, infrastructure assets, and  intangible right‐to‐use assets are reported in the government‐wide financial statements.     Capital assets are defined by the Town as assets with an initial, individual cost in excess of $10,000  and an estimated useful life in excess of one year. Capital assets are recorded at historical cost, if  purchased or constructed. Donated capital assets are recorded at the acquisition value.     The costs of normal maintenance and repairs that do not add to the value of the assets or  materially extend the life of the asset are not capitalized.   Page 54 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 1 – Summary of Significant Accounting Policies    Capital assets of the Town are depreciated using the straight‐line method over the following  estimated useful lives:    Buildings and building improvements  20 ‐ 50 years Improvements other than buildings  20 years Infrastructure  15 ‐ 50 years Vehicles, machinery and equipment  5 ‐ 20 years   J. Compensated Absences    The Town’s employee vacation and sick leave policies generally provide for granting vacation and  sick leave with pay. Sick leave and vacation benefits accrue as pay periods are completed at the  current rate of pay.    The current and long‐term liabilities, including related benefits, for accumulated vacation and sick  leave are reported on the government‐wide financial statements. A liability for these amounts is  reported in governmental funds only if they have matured, for example, as a result of employee  termination, resignations and retirements. Generally, resources from the General Fund are used  to pay for compensated absences.    K. Interfund Activity    Flows of cash from one fund to another without a requirement for repayment are reported as  interfund transfers. Interfund transfers between governmental funds are eliminated in the  statement of activities. Interfund transfers in the fund financial statements are reported as other  financing sources/uses in governmental funds.     L. Net Position Flow Assumption    In the government‐wide financial statements the Town generally applies restricted resources first  when outlays are incurred for purposes for which either restricted or unrestricted amounts are  available. However, the Town may apply unrestricted resources before restricted resources when  necessary to ensure compliance with the State of Arizona's Expenditure Limitation Law for Towns  and Cities.  Page 55 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 1 – Summary of Significant Accounting Policies    M. Leases    As lessor, the Town recognizes lease receivables with an initial, individual value of $50,000 or  more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the Town  charges the lessee) and the implicit rate cannot be determined, the Town uses its own estimated  incremental borrowing rate as the discount rate to measure lease receivables. The Town’s  estimated incremental borrowing rate was determined based on the prevailing federal funds rate  at the beginning of the lease term, since the Town does not have outstanding debt. This rate  reflects the low risk of renting these facilities over a long lease period with multiple renewals.    Note 2 – Fund Balance Classifications    Fund balances of the governmental funds are reported separately within classifications based on  a hierarchy of the constraints placed on the use of those resources. The classifications are based  on the relative strength of the constraints that control how the specific amounts can be spent.  The classifications are nonspendable, restricted, committed, assigned, and unassigned fund  balance classifications.    Nonspendable. The nonspendable fund balance classification includes amounts that cannot be  spent because they are not in spendable form, or legally or contractually required to be  maintained intact.    Restricted. Fund balance is reported as restricted when constraints placed on the use of resources  are either externally imposed by creditors (such as through debt covenants), grantors,  contributors, or laws or regulations of other governments or is imposed by law through  constitutional provisions or enabling legislation.    Committed. The committed fund balance classification includes amounts that can be used only  for the specific purposes imposed by formal action of the Town Council, the Town’s highest level  of decision making authority, by ordinance. Those committed amounts cannot be used for any  other purpose unless the Town Council removes or changes the specified use by taking the same  type of action it employed to previously commit those amounts.     Assigned. Amounts in the assigned fund balance classification are intended to be used by the  Town for specific purposes but do not meet the criteria to be classified as restricted or committed.  In governmental funds other than the General Fund, assigned fund balance represents the  remaining amount that is not restricted or committed. In the General Fund, assigned amounts  represent intended uses established by the Town Council or a management official delegated  that authority by formal Town Council action. The authority to make assignments has been  delegated by the Town Council to the Chief Financial Officer.  Page 56 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 2 – Fund Balance Classifications Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. The Town generally applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are generally reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. However, the Town may apply unrestricted resources first before restricted resources when necessary to ensure compliance with the State of Arizona’s Expenditure Limitation Law for Towns and Cities. The Town has established a fund balance policy which states that the combined General Fund operating fund balance should be at least 20 percent of the average actual General Fund revenues for the preceding five fiscal years. The Town has established a stabilization fund (Rainy Day fund) in the Town’s fund balance policy. The Rainy Day fund had a balance of $4,466,782, reported as a committed fund balance at June 30, 2024. The Rainy Day fund may only be used for the following: 1) to replace the loss of more than 20 percent of the Town’s local share of state shared revenues, 2) for any event that threatens the health, safety or welfare of the Town’s citizens, 3) for any event that threatens the fiscal stability of the Town, and lastly 4) to address any matter declared as an emergency by the governor of the State of Arizona or the Mayor of the Town. All withdrawals from the Rainy Day fund shall be subject to the following rules: 1) any appropriation shall require the approval by at least 2/3 vote by the Town Council, and 2) the maximum amount of Rainy Day withdrawal in any fiscal year shall not exceed one-half of the total balance in the fund. Replenishment of the Rainy Day fund when spent by the Town should not exceed a period of more than five years, and should be repaid in annual installments of not less than one percent of the previous fiscal year General Fund balance. Repayments shall be appropriated as part of the annual budget adoption. Page 57 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 2 – Fund Balance Classifications    The table below provides detail of the major components of the Town’s fund balance  classifications at year end.       General  Fund   Highway  User  Revenue  Fund   Grants  Fund   Capital  Projects  Fund   Non‐Major  Governmental  Funds  Total  Fund Balances:   Nonspendable:                 Inventory $           5,099 $ $  $ $ $            5,099  Prepaid items 33,080 13,500  1,460 48,040  Restricted:   Capital Projects  18,507 18,507  Debt Service  58,291 58,291  Public works 6,223,708  6,223,708 Local Court Enhancement  439,487 439,487  Opioid abatement 26,630  26,630 Development Fees  2,329,679 2,329,679  Committed:   Rainy Day 4,466,782  4,466,782  Assigned:   Capital Projects  14,152,865 14,152,865  Downtown Strategy  691,503 691,503  Economic Development  887,648 887,648  Tourism  37,527 37,527  Public Art  41,023 41,023  Environmental  363,045 363,045  Public works 3,335,921 80,902  3,416,823 Unassigned: 13,070,591  13,070,591  Total fund balances $ 17,575,552 $  9,559,629 $     121,032  $ 14,152,865 $        4,868,170 $  46,277,248    Note 3 – Cash and Investments    Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure  the Town’s deposits may not be returned to the Town. The Town does not have a deposit policy  for custodial credit risk. At year end, the carrying amount of the Town’s deposits was $1,785,969  and the bank balance was $3,109,891.   Page 58 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 3 – Cash and Investments    Fair Value Measurements. The Town categorizes its fair value measurements within the fair value  hierarchy established by generally accepted accounting principles. The hierarchy is based on the  valuation inputs used to measure the fair value of the asset.      Level 1 inputs are quoted prices in active markets for identical assets    Level 2 inputs are significant other observable inputs    Level 3 inputs are significant unobservable inputs      Valuation Techniques. Equity securities classified in Level 1 of the fair value hierarchy are valued  using prices quoted in active markets for those securities. Debt securities classified in Level 2 of  the fair value hierarchy are valued using matrix pricing techniques. Matrix pricing is used to value  securities based on the securities’ relationship to benchmark quoted prices.     The State Treasurer’s pools are external investment pools, the Local Government Investment Pool  (Pool 5) and Local Government Investment Pool‐Government (Pool 7), with no regulatory  oversight. The activity and performance of the pools are reviewed monthly by the State Board of  Investment. The fair value of each participant’s position in the State Treasurer investment pools  approximates the value of the participant’s shares in the pool and the participants’ shares are not  identified with specific investments. Participants in the pool are not required to categorize the  value of shares in accordance with the fair value hierarchy.    All investments in which the fair value hierarchy is applicable are measured at fair value on a  recurring basis. At year end, cash and investments as of June 30, 2024, are classified in the  accompanying financial statements as follows:    Carrying amount of investments  $ 47,921,528  Carrying amount of cash deposits  1,785,969  Cash on hand  700  Total cash and investments  $ 49,708,197  Page 59 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 3 – Cash and Investments    At year end, the Town’s investments consisted of the following:             Investment Maturities  (in Years)    Credit Rating  Investment Type  Category  Fair Value  Less than 1  1‐5  S&P  Moody’s  U.S. Government and Agency Notes  Level 1  $   9,227,193   $  3,890,514   $  5,336,679 n/a  N/A, Aaa  Supra‐National Notes  Level 1  321,506   143,378   178,128 AAA  Aaa  Federal Agency Notes  Level 1  249,506   249,506     AA+  Aaa  Corporate and Foreign Bonds  Level 2  2,652,460   936,483   1,715,977 BBB+ to AA  Baa1 to A1  Asset Backed Securities  Level 2  565,489       565,489 N/A, AAA  N/A, Aaa  Certificates of Deposit  Level 2  472,663      472,663 n/a  n/a  US Bank Money Market Funds  Level 1  182,192   182,192       n/a  n/a        $  5,402,073 $  8,268,936                      State Treasurer’s Investment Pool 7  Not applicable 34,250,519  33 days average maturities    Total  $ 47,921,528       Interest Rate Risk. Interest rate risk is the risk that changes in interest rates may reduce the  market value of Town investments. In accordance with its investment policy, the Town manages  its exposure to declines in fair values by the following:     Structuring the investment portfolio so that securities mature concurrent with the  anticipated cash requirements for ongoing operations, thereby avoiding, as much as  possible, the need to sell securities into an adverse market environment prior to maturity.   Investing funds primarily in shorter‐term securities or similar investment pools and  limiting the average maturity of the portfolio in accordance with the needs of the Town.   With respect to any firm or individual given responsibility for investments utilizing  external research and advice regarding the current interest rate outlook and global  economic condition to optimize portfolio duration strategy.     Credit Risk. Credit risk is the risk of default of debt by an issuer or counterparty to an investment.  The Town will limit credit risk by limiting investments in the Town’s portfolio to the asset classes  designated as acceptable in ARS §35‐323. When possible, analysis of the credit worthiness of all  individual debt issuers held in the portfolio should be conducted on an annual basis in an effort  to guard against investing in a weak or deteriorating credit situation. Additionally, the Town will  pre‐qualify financial institutions, brokers/dealers, and investment advisers with which the Town  will do business. The State Treasurer’s Local Government Investment Pool 7 was rated AAA by  Moody’s at year end.  Page 60 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 3 – Cash and Investments Custodial Credit Risk – Investments. For an investment, custodial credit risk is the risk that, in the event of the counterparty’s failure, the Town will not be able to recover the value of its investments or collateral securities that are in an outside party’s possession. The Town does not have an investment policy for custodial credit risk. The Town’s investment in the State Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the Town’s portion is not identified with specific investments and is not subject to custodial credit risk. Concentration of Credit Risk. Concentration of credit risk is the risk of loss from over concentration of investments. In accordance with its investment policy, the Town diversifies its investment portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. With the exception of U.S. Treasury notes and securities and authorized pools, the investment policy establishes a maximum percentage of 30 percent in insured or collateralized certificates of deposit; 20 percent in certificates of deposit registry services; 30 percent in commercial paper; and 30 percent in bonds, debentures, or notes. Investment Type Fair Value Percent of Town Investments U.S. Government and Agency Notes $ 9,227,193 19.3% Supra-National Notes 321,506 0.7% Federal Agency Notes 249,506 0.5% Corporate and Foreign Bonds 2,652,460 5.5% Asset Backed Securities 565,489 1.2% Certificates of Deposit 472,663 1.0% US Bank Money Market Funds 182,192 0.4% State Treasurer’s investment pool 7 34,250,519 71.4% $ 47,921,528 Note 4 – Receivables Intergovernmental receivables consist of sales taxes and shared revenues of $1,271,764 receivable from the State, opioid seƩlement agreement revenues of $390,988 receivable through Maricopa County, and grant receivables of $16,350. Leases receivable of $1,313,858 consist of revenues from four cell tower land use agreements. Payments under these agreements of $140,492 were recognized as leases and rents revenues in the current year. Opioid seƩlement agreement revenues of $364,358 and lease revenues of $1,188,619 are not scheduled to be collected in the subsequent year. Page 61 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 5 – Capital Assets    A summary of capital asset activity at year end is as follows:    Governmental Activities   Beginning  Balance    Increase    Decrease   Ending  Balance  Capital assets, not being depreciated:       Land $   29,690,368  $ $ $   29,690,368   Artwork 2,608,900  10,000 2,598,900   Construction in progress 3,932,181  3,077,709 4,537,222 2,472,668   Total capital assets, not being depreciated 36,231,449  3,077,709 4,547,222 34,761,936   Capital assets, being depreciated:      Infrastructure 155,656,694  1,922,122 157,578,806   Buildings and building improvements 23,434,482  391,120 23,825,602   Improvements other than buildings 19,604,847  2,132,578 21,737,425   Vehicles, machinery and equipment 5,023,940  501,099 64,190 5,460,849   Total capital assets being depreciated 203,719,963  4,946,909 64,190 208,602,682   Less accumulated depreciation for:    Infrastructure (114,553,212) (1,681,192)(116,234,404)  Buildings and building improvements (7,964,931) (500,313)(8,465,244)  Improvements other than buildings (13,151,247) (703,592)(13,854,839)  Vehicles, machinery and equipment (2,443,559) (440,635) (64,190) (2,820,004)  Total accumulated depreciation (138,112,949) (3,325,732) (64,190) (141,374,491)      Total capital assets, being depreciated, net 65,607,014  1,621,177 67,228,191   Governmental activities capital assets, net $ 101,838,463  $   4,698,886 $    4,547,222 $ 101,990,127     Depreciation expense was charged to functions/programs as follows:    Governmental activities:   General government  $      224,616  Development services  19,954  Public safety  337,301  Streets and highways  1,645,098  Culture and recreation  1,098,763  Total depreciation expense  $   3,325,732  Page 62 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 5 – Capital Assets    Construction Commitments – At June 30, 2024, the Town has the following active construction  commitments. The resources for these commitments have been accumulated in the Capital  Projects Fund.      Governmental Activities  Project    Spent‐to‐Date   Remaining  Commitment        Golden Eagle Impoundment Drainage  $           339,320  $             97,975  Shea Blvd Widening ‐ Palisades to Technology  330,307  15,266  Town‐wide Guardrail Replacement  26,105  23,334  Total commitments  $           695,732  $           136,575    Note 6 – Changes in Long‐Term Liabilities    Long‐term liability activity for the current fiscal year was as follows:       Beginning  Balance  Additions  Reductions   Ending  Balance   Due Within  One Year  Governmental activities:  Compensated absences payable $      639,914 $    794,382 $      435,133 $       999,163 $       445,406  Governmental activity long‐term  Liabilities $      639,914 $    794,382 $      435,133 $       999,163 $       445,406    Note 7 – Interfund Transfers    Interfund transfers for the year ended June 30, 2024 were as follows:    Interfund transfers:      Transfers out  Transfers in    General  Fund   Capital   Projects   Non‐Major  Governmental  Funds  Total  General Fund $ $ $            245,884 $            245,884  Highway User Revenue Fund 4,200,000 4,200,000  Capital Projects Fund 6,907,884 6,907,884  Non‐Major Governmental Funds 500,000  94,253 594,253     Total  $        7,407,884 $        4,200,000 $            340,137 $      11,948,021  Page 63 Town of Fountain Hills, Arizona Notes to Financial Statements June 30, 2024 Note 7 – Interfund Transfers The General Fund transferred $6,907,884 to the Capital Projects Fund for future projects and $500,000 to the Environmental Fund for continued storm drain and wash maintenance. The Economic Development Fund transferred $94,253 to the Tourism Fund to provide funding for operating costs of the tourism program. The Development Fee Fund transferred $245,884 to the General Fund for fire department dispatch telecommunications equipment. The Capital Projects Fund transferred $4,200,000 to Highway User Revenue Fund for additional pavement maintenance projects. Note 8 – Contingent Liabilities Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if any, to be immaterial. Lawsuits – The Town is a party to a number of various types of lawsuits, many of which normally occur in governmental operations. The ultimate outcome of the actions is not determinable; however, Town management believes that the outcome of these proceedings, either individually or in the aggregate, will not have a materially adverse effect on the accompanying financial statements. Note 9 – Risk Management The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town’s insurance protection is provided by the Arizona Municipal Risk Retention Pool (Pool). The Pool is made up of various towns and cities within Arizona that operate a common risk management and insurance program. The Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the Pool to meet its expected financial obligations. The Pool has the authority to assess its’ members additional premiums should reserves and annual premiums be insufficient to meet the Pool’s obligations. The Town joined the Arizona Municipal Workers’ Compensation Pool (Pool) together with other governments in the state for risks of loss related to workers’ compensation claims. The Pool is a public entity risk pool currently operating as a common risk management and insurance program for towns and cities in the State. The Town is responsible for paying a premium, based on an experience rating formula that allocates pool expenditures and liabilities among members. Page 64 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 9 – Risk Management    The Town continues to carry commercial insurance for all other risks of loss, including employee  health, dental, and vision insurance. There were no settlements that exceeded insurance  coverage in any of the past three years.    Note 10 – Retirement Plans    Defined Contribution Pension Plan    All full‐time Town employees participate in a defined contribution pension plan administered by  MissionSquare Retirement. The Town Council established and may amend the pension plan’s  benefit terms, including contribution requirements. The Town and the employee are each  required to contribute 11 percent of the employee’s gross pay. For the year ended June 30, 2024,  the Town recognized pension expense of $682,701.    Employees are immediately vested in their own contributions and earnings on those  contributions and become vested in Town contributions and earnings on Town contributions on  a pro rata basis over five years. Nonvested Town contributions are forfeited upon termination of  employment. Such forfeitures are used to reduce the Town’s future contributions to the pension  plan. For the year ended June 30, 2024, forfeitures reduced the Town’s pension expense by  $53,305.    Note 11 – Restatements of Beginning Balances    Change within the Financial Reporting Entity – In fiscal year 2023‐24, Town management re‐ evaluated the presentation and classifications of funds on the financial statements. They  considered current use of funds, future use of funds, and reader understandibility. In doing so,  management made the decision to present the Public Art Fund as its own special revenue fund.  Its fund activity was previously reported in the General Fund. Furthermore, management made  the decision to present the Vehicle and Equipment Replacement Fund as an internal service fund.  Its fund activity was previously reported in the General Fund and Highway User Revenue Fund.   Page 65 Town of Fountain Hills, Arizona  Notes to Financial Statements  June 30, 2024      Note 11 – Restatements of Beginning Balances    The effect of the matters noted above resulted in adjustments to and restatements of beginning  fund balance and fund net position, as follows:         June 30, 2023,  As Previously  Reported   Change within the Financial Reporting Entity   June 30, 2023,  As Restated  Governmental Funds Major Funds: General Fund 17,385,544$            (1,703,768)$                15,681,776$             Highway User Revenue Fund 7,333,267                 (410,409)                     6,922,858                 Nonmajor Fund Public Art Fund 64,584                         64,584                       Proprietary Funds Internal Service Funds Vehicle and Equipment     Replacement Fund                               2,049,593                   2,049,593                 Page 66 Required Supplementary Information Page 67 Original Final Actual Variance with  Final Budget Revenues Sales taxes 13,154,799$        13,154,799$        16,834,517$        3,679,718$           Franchise taxes 390,000               390,000               351,118               (38,882)                 Licenses and permits 770,208               770,208               1,411,600            641,392                Leases and rents 277,278               277,278               359,479               82,201                   Intergovernmental 10,387,730          10,387,730          10,349,568          (38,162)                 Charges for services 244,215               244,215               242,182               (2,033)                    Other revenue 141,575               141,575               270,109               128,534                Fines and forfeitures 200,000               200,000               227,192               27,192                   Investment earnings 20,000                  20,000                  728,524               708,524                Total revenues 25,585,805          25,585,805          30,774,289          5,188,484             Expenditures Current: General government                                                                                                                                 Mayor and council 65,494                  75,494                  68,215                  7,279                        Administration 2,948,360            2,948,360            2,741,118            207,242                   Non departmental 3,238,088            730,588               640,311               90,277                      Municipal court 495,409               495,409               492,925               2,484                     Total general government 6,747,351            4,249,851            3,942,569            307,282                Development services 1,318,663            1,318,663            1,275,320            43,343                   Public safety                                   Fire and emergency 5,589,825            5,402,252            5,104,358            297,894                   Law enforcement 6,388,595            6,388,595            6,225,786            162,809                Total public safety 11,978,420          11,790,847          11,330,144          460,703                Public works 1,642,802            1,692,802            1,554,076            138,726                Culture and recreation 3,882,569            3,882,569            3,426,968            455,601                Capital outlay 16,000                  66,000                  189,436               (123,436)               Total expenditures 25,585,805          23,000,732          21,718,513          1,282,219             Excess (deficiency) of revenues over expenditures                               2,585,073            9,055,776            3,906,265             Other financing sources (uses) Transfers in                                                              245,884               245,884                Transfers out (1,000,000)           (1,000,000)           (7,407,884)           (6,407,884)            Total other financing sources (uses)(1,000,000)           (1,000,000)           (7,162,000)           (6,162,000)            Changes in fund balances (1,000,000)           1,585,073            1,893,776            (2,255,735)            Fund balances, beginning of year, previously reported 17,385,544          17,385,544          17,385,544                                          Adjustments to beginning fund balances (1,703,768)           (1,703,768)           (1,703,768)                                          Fund balances, beginning of year, as restated 15,681,776          15,681,776          15,681,776                                         Fund balances, end of year 14,681,776$        17,266,849$        17,575,552$        (2,255,735)$         Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual General For the Year Ended June 30, 2024 Budget See accompanying notes to this schedule.Page 68 Original Final Actual Variance with  Final Budget Revenues Sales taxes 1,064,618$          1,064,618$          1,417,926$          353,308$              Intergovernmental 2,703,580            2,703,580            2,720,831            17,251                   Charges for services 100,000                100,000                120                        (99,880)                  Other revenue 31,000                  31,000                  47,261                  16,261                   Investment earnings 10,000                  10,000                  558,549                548,549                 Total revenues 3,909,198            3,909,198            4,744,687            835,489                 Expenditures Current ‐  Public works 7,048,280            6,998,280            6,192,221            806,059                 Capital outlay                               50,000                  115,695                (65,695)                  Total expenditures 7,048,280            7,048,280            6,307,916            740,364                 Excess (deficiency) of revenues over expenditures (3,139,082)           (3,139,082)           (1,563,229)           1,575,853             Other financing sources (uses) Transfers in 4,200,000            4,200,000            4,200,000                                            Total other financing sources (uses)4,200,000            4,200,000            4,200,000                                            Changes in fund balances 1,060,918            1,060,918            2,636,771            1,575,853             Fund balances, beginning of year, previously reported 7,333,267            7,333,267            7,333,267                                            Adjustments to beginning fund balances (410,409)              (410,409)              (410,409)                                              Fund balances, beginning of year, as restated 6,922,858            6,922,858            6,922,858                                            Fund balances, end of year 7,983,776$          7,983,776$          9,559,629$          1,575,853$           Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Highway User Revenue For the Year Ended June 30, 2024 Budget See accompanying notes to this schedule.Page 69 Original Final Actual Variance with  Final Budget Revenues Intergovernmental 1,190,000$          1,190,000$          267,283$             (922,717)$             Investment earnings                                                              15,288                  15,288                   Total revenues 1,190,000            1,190,000            282,571               (907,429)               Expenditures Current ‐  General government 1,190,000            650,208               265,136               385,072                Capital outlay                               511,000               11,000                  500,000                Total expenditures 1,190,000            1,161,208            276,136               885,072                Excess (deficiency) of revenues over expenditures                               28,792                  6,435                    (22,357)                 Changes in fund balances                               28,792                  6,435                    (22,357)                 Fund balances, beginning of year 114,597               114,597               114,597                                               Fund balances, end of year 114,597$             143,389$             121,032$             (22,357)$               Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Grants For the Year Ended June 30, 2024 Budget See accompanying notes to this schedule.Page 70 Town of Fountain Hills, Arizona  Note to Required Supplementary Information  June 30, 2024  Note 1 – Budgetary Basis of Accounting    The Town budget is prepared on a basis consistent with accounting principles generally accepted  in the United States of America. The Town Council follows these procedures in establishing the  budgetary data reflected in the financial statements:    1. In accordance with Arizona Revised Statutes, the Town Manager submits a proposed budget  for the fiscal year commencing the following July 1 to the Town Council. The operating budget  includes proposed expenditures and the means of financing them for the upcoming year.     2. Public hearings are conducted to obtain taxpayer comment.    3. Prior to the third Monday in August, the budget for the Town is legally enacted through  passage of a resolution. To ensure compliance with the expenditure limitation, a uniform  expenditure report must be filed with the State each year. This report, issued under a  separate cover, reconciles total Town expenditures from the audited basic financial  statements to total expenditures for reporting in accordance with the State’s uniform  expenditure reporting system (A.R.S 41‐1279.07).     4. Expenditures may not legally exceed the expenditure limitation described below for all fund  types as a whole. For management purposes, the Town adopts a budget by department for  the General Fund and in total by fund for other funds. The Town Manager, subject to Town  Council approval, may at any time transfer any unencumbered appropriation balance or  portion thereof between departments. The adopted budget cannot be amended in any way  without Town Council approval.    5. Formal budgetary integration is employed as a management control device during the year  for all governmental funds on essentially the same modified accrual basis of accounting used  to record actual revenues and expenditures.     The Town is subject to the State of Arizona’s Expenditure Limitation Law for Towns and Cities.  This law limits the amount of local revenues (as defined in the State Constitution, Article IX,  Section 20) the Town may spend each year. The state adjusts the limitation each year for changes  in population and inflation. The limitation is applied to the total expenditures of local revenues  of all funds. The law does not limit the Town’s expenditures of revenues excluded from the State  Constitution’s definition of local revenue. The Town complied with the law during the year.  Page 71 (This page intentionally left blank) Page 72 Combining and Individual Fund Financial Statements and Schedules Page 73 (This page intentionally left blank) Page 74 Governmental Funds Page 75 (This page intentionally left blank) Page 76 Non‐Major Governmental Funds    Special Revenue Funds    Downtown Strategy Fund – accounts for the portion of Town sales tax for the development of the  downtown area.    Economic Development Fund – accounts for the portion of Town sales tax for economic development  and tourism.    Tourism Fund – accounts for the portion of Town sales tax and grants received for tourism activities.    Public Art Fund – accounts for developer in‐lieu contributions for maintenance of art and for the  installation of art throughout the community.    Local Court Enhancement Fund – accounts for a local court surcharge for court enhancement.    Environmental Fund – accounts for all monies received from collection of the environmental fee.    Cottonwoods Maintenance Fund – accounts for all monies received to pay for maintenance of the  Cottonwoods Maintenance District.    Debt Service Funds    General Obligation Debt Service Fund – accounts for the Town’s property tax revenues received to  pay the debt service of the Town’s general obligation bonds.    Eagle Mountain Debt Service Fund – accounts for the property tax revenues restricted to pay the  debt service of the Eagle Mountain Community Facilities District.    Municipal Property Corporation Debt Service Fund – accounts for the revenues received to pay the  debt service on MPC revenue bonds.    Capital Projects Fund    Development Fees Fund – accounts for restricted development fees collected from building permits.       Page 77 Downtown  Strategy Economic  Development Tourism Public Art Local Court  Enhancement Assets Cash and investments 687,956$             872,256$             42,969$               41,023$               438,933$              Intergovernmental receivable 6,377                    25,507                                                                                554                        Interest receivable 1,713                                                                                                                                                 Prepaid items                               675                       785                                                                                      Total assets 696,046               898,438               43,754                  41,023                  439,487                Liabilities Accounts payable 4,543                    4,009                    5,442                                                                                   Accrued wages and benefits                               6,106                                                                                                                  Total liabilities 4,543                    10,115                  5,442                                                                                   Fund balances Nonspendable                               675                       785                                                                                      Restricted                                                                                                                            439,487                Assigned 691,503               887,648               37,527                  41,023                                                  Total fund balances 691,503               888,323               38,312                  41,023                  439,487                Total liabilities, deferred inflows of resources  and fund balances 696,046$             898,438$             43,754$               41,023$               439,487$              Special Revenue Funds Town of Fountain Hills, Arizona Combining Balance Sheet Non‐Major Governmental Funds June 30, 2024 Page 78 Capital Projects  Fund Environmental Cottonwoods  Maintenance General  Obligation Debt  Service Eagle Mountain  Debt Service Municipal  Property  Corporation Debt  Service Development  Fees Total Non‐Major  Governmental  Funds 548,588$             19,755$               163,809$             20,208$               12,045$               2,329,679$          5,177,221$                                                                                                                                                                                                    32,438                                                                                                                                                                                                            1,713                                                                                                                                                                                                              1,460                     548,588               19,755                  163,809               20,208                  12,045                  2,329,679            5,212,832             185,543               1,248                    137,573               198                                                                                     338,556                                                                                                                                                                                                         6,106                     185,543               1,248                    137,573               198                                                                                     344,662                                                                                                                                                                                                         1,460                                                   18,507                  26,236                  20,010                  12,045                  2,329,679            2,845,964             363,045                                                                                                                                                                          2,020,746             363,045               18,507                  26,236                  20,010                  12,045                  2,329,679            4,868,170             548,588$             19,755$               163,809$             20,208$               12,045$               2,329,679$          5,212,832$           Debt Service FundsSpecial Revenue Funds Page 79 Downtown  Strategy Economic  Development Tourism Public Art Local Court  Enhancement Revenues Property taxes $                            $                            $                            $                            $                             Sales taxes 141,793               567,170                                                                                                             Licenses and permits                                                                                                                                                            Intergovernmental                                                              119,793                                                                              Charges for services                                                                                             5,000                                                    Other revenue                               2,534                    1,108                                                                                   Fines and forfeitures                                                                                                                            28,651                  Investment earnings 33,698                 38,133                 6,626                    2,903                    158                        Total revenues 175,491               607,837               127,527               7,903                    28,809                  Expenditures Current: General government 109,910               218,203               317,680                                              5,000                     Public works                                                                                                                                                            Culture and recreation                                                                                             31,464                                                 Capital outlay                                                                                                                                                            Debt service: Fiscal charges                                                                                                                                                            Total expenditures 109,910               218,203               317,680               31,464                 5,000                     Excess (deficiency) of revenues over expenditures 65,581                 389,634               (190,153)              (23,561)                23,809                  Other financing sources (uses) Transfers in                                                              94,253                                                                                Transfers out                               (94,253)                                                                                                              Total other financing sources (uses)                              (94,253)                94,253                                                                                Changes in fund balances 65,581                 295,381               (95,900)                (23,561)                23,809                  Fund balances, beginning of year, previously reported 625,922               592,942               134,212                                              415,678                Adjustments to beginning fund balances                                                                                             64,584                                                 Fund balances, beginning of year, as restated 625,922               592,942               134,212               64,584                 415,678                Fund balances, end of year 691,503$             888,323$             38,312$               41,023$               439,487$              Special Revenue Funds Town of Fountain Hills, Arizona Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Governmental Funds For the Year Ended June 30, 2024 Page 80 Capital Projects  Fund Environmental Cottonwoods  Maintenance General  Obligation Debt  Service Eagle Mountain  Debt Service Municipal  Property  Corporation  Development  Fees Total Non‐Major  Governmental  Funds $                            9,815$                 26$                       $                            $                            $                            9,841$                                                                                                                                                                                                           708,963                1,692                                                                                                                                                323,749               325,441                                                                                                                                                                                                         119,793                                                                                                                                                                                                         5,000                                                                                                                                                                                                              3,642                                                                                                                                                                                                              28,651                  30,492                 915                       8,509                    1,062                    628                       121,690               244,814                32,184                 10,730                 8,535                    1,062                    628                       445,439               1,446,145                                                                          137,573                                                                                                            788,366                426,358               7,561                                                                                                                                                433,919                                                                                                                                                                                                         31,464                  137,399                                                                                                                                                                          137,399                                                                                                                                           198                       10                                                        208                        563,757               7,561                    137,573               198                       10                                                        1,391,356             (531,573)              3,169                    (129,038)              864                       618                       445,439               54,789                  500,000                                                                                                                                                                          594,253                                                                                                                                                                          (245,884)              (340,137)               500,000                                                                                                                                           (245,884)              254,116                (31,573)                3,169                    (129,038)              864                       618                       199,555               308,905                394,618               15,338                 155,274               19,146                 11,427                 2,130,124            4,494,681                                                                                                                                                                                                      64,584                  394,618               15,338                 155,274               19,146                 11,427                 2,130,124            4,559,265             363,045$             18,507$               26,236$               20,010$               12,045$               2,329,679$          4,868,170$           Debt Service FundsSpecial Revenue Funds Page 81 Original Final Actual Variance with  Final Budget Revenues Sales taxes 106,462$             106,462$             141,793$             35,331$                Investment earnings 600                       600                       33,698                  33,098                   Total revenues 107,062               107,062               175,491               68,429                   Expenditures Current ‐  General government 85,200                  135,200               109,910               25,290                   Total expenditures 85,200                  135,200               109,910               25,290                   Excess (deficiency) of revenues over expenditures 21,862                  (28,138)                65,581                  93,719                   Other financing sources (uses) Transfers out (35,000)                (35,000)                                               35,000                   Total other financing sources (uses)(35,000)                (35,000)                                               35,000                   Changes in fund balances (13,138)                (63,138)                65,581                  128,719                Fund balances, beginning of year 625,922               625,922               625,922                                               Fund balances, end of year 612,784$             562,784$             691,503$             128,719$              Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Downtown Strategy For the Year Ended June 30, 2024 Budget Page 82 Original and Final Actual Variance with  Final Budget Revenues Sales taxes 425,847$             567,170$             141,323$              Other                               2,534                    2,534                     Investment earnings 240                       38,133                  37,893                   Total revenues 426,087               607,837               181,750                Expenditures Current ‐  General government 229,630               218,203               11,427                   Total expenditures 229,630               218,203               11,427                   Excess (deficiency) of revenues over expenditures 196,457               389,634               193,177                Other financing sources (uses) Transfers out (94,253)                (94,253)                                                Total other financing sources (uses)(94,253)                (94,253)                                                Changes in fund balances 102,204               295,381               193,177                Fund balances, beginning of year 592,942               592,942                                               Fund balances, end of year 695,146$             888,323$             193,177$              Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Economic Development For the Year Ended June 30, 2024 Budget Page 83 Original Final Actual Variance with  Final Budget Revenues Intergovernmental 65,000$               65,000$               119,793$             54,793$                Other                                                              1,108                    1,108                     Investment earnings 180                       180                       6,626                    6,446                     Total revenues 65,180                  65,180                  127,527               62,347                   Expenditures Current ‐  General government 354,029               382,821               317,680               65,141                   Total expenditures 354,029               382,821               317,680               65,141                   Excess (deficiency) of revenues over expenditures (288,849)              (317,641)              (190,153)              127,488                Other financing sources (uses) Transfers in 94,253                  94,253                  94,253                                                  Total other financing sources (uses)94,253                  94,253                  94,253                                                  Changes in fund balances (194,596)              (223,388)              (95,900)                127,488                Fund balances, beginning of year 134,212               134,212               134,212                                               Fund balances, end of year (60,384)$              (89,176)$              38,312$               127,488$              Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Tourism For the Year Ended June 30, 2024 Budget Page 84 Original and Final Actual Variance with  Final Budget Revenues Charges for services 100,000$             5,000$                  (95,000)$               Investment earnings 240                       2,903                    2,663                     Total revenues 100,240               7,903                    (92,337)                 Expenditures Current ‐  Culture and recreation 41,761                  31,464                  10,297                   Total expenditures 41,761                  31,464                  10,297                   Excess (deficiency) of revenues over expenditures 58,479                  (23,561)                (82,040)                 Changes in fund balances 58,479                  (23,561)                (82,040)                 Fund balances, beginning of year, previously reported                                                                                              Adjustments to beginning fund balances 64,584                  64,584                                                  Fund balances, beginning of year, as restated 64,584                  64,584                                                  Fund balances, end of year 123,063$             41,023$               (82,040)$               Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Public Art For the Year Ended June 30, 2024 Budget Page 85 Original and Final Actual Variance with  Final Budget Revenues Fines and forfeitures 33,000$               28,651$               (4,349)$                 Investment earnings 300                       158                       (142)                       Total revenues 33,300                  28,809                  (4,491)                    Expenditures Current ‐  General government 54,600                  5,000                    49,600                   Total expenditures 54,600                  5,000                    49,600                   Excess (deficiency) of revenues over expenditures (21,300)                23,809                  45,109                   Changes in fund balances (21,300)                23,809                  45,109                   Fund balances, beginning of year 415,678               415,678                                               Fund balances, end of year 394,378$             439,487$             45,109$                Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Local Court Enhancement For the Year Ended June 30, 2024 Budget Page 86 Original and Final Actual Variance with  Final Budget Revenues Licenses and permits $                            1,692$                  1,692$                   Investment earnings 2,400                    30,492                  28,092                   Total revenues 2,400                    32,184                  29,784                   Expenditures Current ‐  Public works 627,024               426,358               200,666                Capital outlay                               137,399               (137,399)               Total expenditures 627,024               563,757               63,267                   Excess (deficiency) of revenues over expenditures (624,624)              (531,573)              93,051                   Other financing sources (uses) Transfers in 500,000               500,000                                               Total other financing sources (uses)500,000               500,000                                               Changes in fund balances (124,624)              (31,573)                93,051                   Fund balances, beginning of year 394,618               394,618                                               Fund balances, end of year 269,994$             363,045$             93,051$                Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Environmental For the Year Ended June 30, 2024 Budget Page 87 Original and Final Actual Variance with  Final Budget Revenues Property taxes 9,768$                  9,815$                  47$                        Investment earnings 72                         915                       843                        Total revenues 9,840                    10,730                  890                        Expenditures Current ‐  Public works 13,488                  7,561                    5,927                     Total expenditures 13,488                  7,561                    5,927                     Excess (deficiency) of revenues over expenditures (3,648)                   3,169                    6,817                     Changes in fund balances (3,648)                   3,169                    6,817                     Fund balances, beginning of year 15,338                  15,338                                                  Fund balances, end of year 11,690$               18,507$               6,817$                   Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Cottonwoods Maintenance For the Year Ended June 30, 2024 Budget Page 88 Original Final Actual Variance with  Final Budget Revenues Property taxes $                            $                            26$                       26$                        Investment earnings 600                       600                       8,509                    7,909                     Total revenues 600                       600                       8,535                    7,935                     Expenditures Current ‐  General government 350                       137,923               137,573               350                        Total expenditures 350                       137,923               137,573               350                        Excess (deficiency) of revenues over expenditures 250                       (137,323)              (129,038)              8,285                     Changes in fund balances 250                       (137,323)              (129,038)              8,285                     Fund balances, beginning of year 155,274               155,274               155,274                                               Fund balances, end of year 155,524$             17,951$               26,236$               8,285$                   Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual General Obligation Debt Service For the Year Ended June 30, 2024 Budget Page 89 Original and Final Actual Variance with  Final Budget Revenues Investment earnings 100$                     1,062$                  962$                      Total revenues 100                       1,062                    962                        Expenditures Debt service ‐                                Fiscal charges 18,900                  198                       18,702                   Total expenditures 18,900                  198                       18,702                   Excess (deficiency) of revenues over expenditures (18,800)                864                       19,664                   Changes in fund balances (18,800)                864                       19,664                   Fund balances, beginning of year 19,146                  19,146                                                  Fund balances, end of year 346$                     20,010$               19,664$                Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Eagle Mountain Debt Service For the Year Ended June 30, 2024 Budget Page 90 Original and Final Actual Variance with  Final Budget Revenues Investment earnings 300$                     628$                     328$                      Total revenues 300                       628                       328                        Expenditures Debt service ‐                                Fiscal charges 510                       10                         500                        Total expenditures 510                       10                         500                        Excess (deficiency) of revenues over expenditures (210)                      618                       828                        Changes in fund balances (210)                      618                       828                        Fund balances, beginning of year 11,427                  11,427                                                  Fund balances, end of year 11,217$               12,045$               828$                      Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Municipal Property Corporation Debt Service For the Year Ended June 30, 2024 Budget Page 91 Original Final Actual Variance with  Final Budget Revenues Sales taxes 685,240$             685,240$             1,598,522$          913,282$              Intergovernmental 3,768,079            3,768,079            376,783               (3,391,296)            Other                                                              12,000                  12,000                   Investment earnings 11,000                  11,000                  671,774               660,774                Total revenues 4,464,319            4,464,319            2,659,079            (1,805,240)            Expenditures Current ‐  General government 289,600               239,600               506                       239,094                Public works 550,000               550,000               594,473               (44,473)                 Culture and recreation                                                              25,158                  (25,158)                 Capital outlay 6,628,931            9,076,431            3,070,047            6,006,384             Total expenditures 7,468,531            9,866,031            3,690,184            6,175,847             Excess (deficiency) of revenues over expenditures (3,004,212)           (5,401,712)           (1,031,105)           4,370,607             Other financing sources (uses) Transfers in 535,000               535,000               6,907,884            6,372,884             Transfers out (4,200,000)           (4,200,000)           (4,200,000)                                          Total other financing sources (uses)(3,665,000)           (3,665,000)           2,707,884            6,372,884             Changes in fund balances (6,669,212)           (9,066,712)           1,676,779            10,743,491           Fund balances, beginning of year 12,476,086          12,476,086          12,476,086                                         Fund balances, end of year 5,806,874$          3,409,374$          14,152,865$        10,743,491$         Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Capital Projects For the Year Ended June 30, 2024 Budget Page 92 Original and Final Actual Variance with  Final Budget Revenues Licenses and permits 379,550$             323,749$             (55,801)$               Investment earnings 3,000                    121,690               118,690                Total revenues 382,550               445,439               62,889                   Excess (deficiency) of revenues over expenditures 382,550               445,439               62,889                   Other financing sources (uses) Transfers out                               (245,884)              (245,884)               Total other financing sources (uses)                              (245,884)              (245,884)               Changes in fund balances 382,550               199,555               (182,995)               Fund balances, beginning of year 2,130,124            2,130,124                                            Fund balances, end of year 2,512,674$          2,329,679$          (182,995)$             Town of Fountain Hills, Arizona Schedule of Revenues, Expenditures, and Changes in Fund Balances ‐ Budget and Actual Development Fees For the Year Ended June 30, 2024 Budget Page 93 (This page intentionally left blank) Page 94 Internal Service Funds Technology Replacement Fund – accounts for the operation of technology replacement services to other Town departments on a cost reimbursement basis. Vehicle and Equipment Replacement Fund – accounts for the operation of vehicle and equipment replacement costs to other Town departments on a cost reimbursement basis. Page 95 Technology  Replacement Vehicle and  Equipment  Replacement  Total Internal  Service Funds Assets Current assets: Cash and investments 190,409$             2,452,594$          2,643,003$           Total current assets 190,409               2,452,594            2,643,003             Noncurrent assets: Capital assets, net of accumulated depreciation                               85,453                  85,453                   Total noncurrent assets                               85,453                  85,453                   Total assets 190,409               2,538,047            2,728,456             Liabilities Current liabilities: Accounts payable 4,469                                                   4,469                     Other liabilities 106                                                      106                        Total current liabilities 4,575                                                   4,575                     Net position Net investment in capital assets                               85,453                  85,453                   Unrestricted 185,834               2,452,594            2,638,428             Total net position 185,834$             2,538,047$          2,723,881$           Town of Fountain Hills, Arizona Combining Statement of Net Position Internal Service Funds June 30, 2024 Page 96 Technology  Replacement Vehicle and  Equipment  Replacement Total Internal  Service Funds Operating revenues Charges for services 62,000$               357,994$             419,994$              Total operating revenues 62,000                  357,994               419,994                Operating expenses Cost of services 45,000                                                 45,000                   Depreciation                               7,769                    7,769                     Total operating expenses 45,000                  7,769                    52,769                   Operating income (loss)17,000                  350,225               367,225                Nonoperating revenues (expenses) Investment earnings 8,653                    117,504               126,157                Gain on sale of capital assets                               20,725                  20,725                   Total nonoperating revenue (expenses)8,653                    138,229               146,882                Changes in net position 25,653                  488,454               514,107                Net position, beginning of year, previously reported 160,181                                              160,181                Adjustments to beginning net position                               2,049,593            2,049,593             Net position, beginning of year, as restated 160,181               2,049,593            2,209,774             Net position, end of year 185,834$             2,538,047$          2,723,881$           Town of Fountain Hills, Arizona Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2024 Page 97 Technology  Replacement Vehicle and  Equipment  Replacement Total Internal  Service Funds Increase/Decrease in Cash and Cash Equivalents Cash flows from operating activities Cash received from charges for services  $               62,000  $             357,994  $             419,994  Cash payments to suppliers for goods and services                   (40,425)                                                 (40,425) Net cash provided by/used for operating activities                   21,575                 357,994                 379,569  Cash flows from capital activities Purchase of property and equipment                                                   (93,222)                 (93,222) Proceeds from sale of capital assets                                                   31,173                   31,173  Net cash provided by/used for capital activities                                                  (62,049)                 (62,049) Cash flows from investing activities Investment income                      8,653                 117,504                 126,157  Net cash provided by/used for investing activities                      8,653                 117,504                 126,157  Net increase/decrease in cash and cash equivalents                   30,228                  413,449                  443,677  Cash and cash equivalents, beginning of year, as restated                 160,181              2,039,145              2,199,326  Cash and cash equivalents, end of year  $             190,409  $         2,452,594  $         2,643,003  Reconciliation of Operating Income/Loss to Net Cash Provided by/Used for Operating Activities  Operating income/loss  $               17,000  $             350,225  $             367,225  Adjustments to reconcile operating income/loss   to net cash provided by/used for operating activities: Depreciation 7,769                                         7,769  Changes in assets and liabilities:  Increase/decrease in accounts payable                      4,469                                                        4,469  Increase/decrease in other liabilities                         106                                                         106  Total adjustments                      4,575                      7,769                   12,344    Net cash provided by/used for operating activities  $               21,575  $             357,994  $             379,569  Town of Fountain Hills, Arizona Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2024 The notes to the basic financial statements are an integral part of this statement.Page 98 Statistical Section The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below. Financial Trends These schedules contain information on financial trends to help the reader understand how the Town’s financial position and financial activities have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Town’s ability to generate revenue. Debt Capacity These schedules present information to help the reader evaluate the Town’s current levels of outstanding debt as well as assess the Town’s ability to make debt payments and/or issue additional debt in the future. Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the Town’s financial activities take place and to help make comparisons with other cities. Operating Information These schedules contain information about the Town’s operations and various resources to help the reader draw conclusions as to how the Town’s financial information relates to the services provided by the Town. Page 99 2015 2016 2017 2018 Governmental activities: Net investment in capital assets 95,325,824$     95,647,990$     94,909,703$     96,777,854$      Restricted 6,310,810         4,530,239         4,471,661         4,589,526          Unrestricted 15,180,582       17,232,506       17,578,068       16,244,169        Total governmental activities net position 116,817,216$  117,410,735$  116,959,432$  117,611,549$   Source:  The source of this information is the Town's financial records. Fiscal Year ended June 30 Town of Fountain Hills, Arizona Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Page 100 2019 2020 2021 2022 2023 2024 104,781,328$  104,004,331$  103,822,185$  102,346,737$  101,838,463$  101,990,127$       3,646,449         2,766,041         2,610,178         5,749,726         9,646,597         9,474,160             15,258,797       17,388,168       21,318,351      26,010,477      31,955,871      38,868,492           123,686,574$  124,158,540$  127,750,714$  134,106,940$  143,440,931$  150,332,779$       Fiscal Year ended June 30 Page 101 2015 2016 2017 2018 Expenses Governmental activities: General government 2,479,365$      2,516,966$      3,142,722$      3,431,752$       Development services 2,074,611        2,253,208        1,364,378        1,460,967         Public safety 6,816,152        7,178,890        7,563,898        7,567,012         Public works 4,963,979        6,476,688        7,904,577        7,380,663         Culture and recreation 2,822,954        3,124,523        3,375,414        3,311,648         Interest on long‐term debt 698,542           241,694           178,749           118,552            Total governmental activities expenses 19,855,603      21,791,969      23,529,738      23,270,594       Program Revenues Governmental activities:     Fines, fees and charges for services: General government 337,655           298,737           837,163           295,716            Development services 693,670           1,257,492        1,062,094        1,314,915         Public safety 86,641             90,345             155,454           155,973            Public works 236,706           48,688             216,724           52,465              Culture and recreation 339,158           321,189           393,028           497,914                Operating grants and contributions 1,431,017        1,615,973        1,699,931        1,737,958             Capital grants and contributions 2,874,796        381,011           494,328           304,951            Total governmental activities program revenues 5,999,643        4,013,435        4,858,722        4,359,892         Net (Expenses)/Revenues (13,855,960)    (17,778,534)    (18,671,016)    (18,910,702)     General Revenues and Other Changes in Net Assets Governmental activities:    Taxes: Property taxes 904,660           2,569,504        2,296,199        2,263,623         Sales taxes 8,983,049        9,395,667        9,415,151        10,311,577       Franchise taxes 352,673           360,320           367,119           421,682               State shared revenues 5,713,235        5,813,678        6,057,278        6,396,667            Investment earnings 150,358           219,058           55,127             158,860               Miscellaneous 188,251           13,826             28,839             10,410              Special item ‐ Donation of capital assets ‐                        ‐                        ‐                        ‐                         Total governmental activities 16,292,226      18,372,053      18,219,713      19,562,819       Changes in Net Position Governmental activities 2,436,266$      593,519$         (451,303)$        652,117$          Source:  The source of this information is the Town's financial records. Fiscal Year Ended June 30 Town of Fountain Hills, Arizona Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Page 102 2019 2020 2021 2022 2023 2024 3,318,477$      3,470,936$      6,687,041$      4,333,863$      4,890,912$      5,106,646$       867,725           825,884           968,808           1,068,260        1,206,991        1,324,892         8,142,069        9,003,452        6,321,489        9,487,150        9,930,356        11,746,913       10,263,244      9,961,306        10,175,540      9,780,920        10,792,078      10,455,071       3,767,996        3,490,447        3,601,870        3,999,178        4,776,903        4,676,396         57,054             881                   7,544                ‐                        ‐                        ‐                         26,416,565      26,752,906      27,762,292      28,669,371      31,597,240      33,309,918       280,312           533,189           310,411           498,242           516,373           548,921            1,143,871        608,892           693,161           947,431           762,929           694,650            90,774             100,444           104,726           89,140             136,082           108,633            10,214             131,750           355,619           654,434           359,972           736,967            1,151,500        409,651           435,432           641,269           640,365           628,560            1,850,676        2,007,841        4,733,757        6,381,580        6,729,883        2,383,786         181,939           91,245             135,525           161,751           259,266           520,867            4,709,286        3,883,012        6,768,631        9,373,847        9,404,870        5,622,384         (21,707,279)    (22,869,894)    (20,993,661)    (19,295,524)    (22,192,370)    (27,687,534)     2,476,546        2,077,368        402,481           9,728                9,854                 ‐                         11,491,123      13,172,390      15,657,292      17,660,758      20,586,294      20,559,928       423,947           434,896           426,260           399,007           382,948           351,118            6,514,470        6,874,771        7,787,184        7,721,123        9,221,691        11,131,601       554,549           545,983           49,665             (419,006)          1,099,525        2,345,106         202,969           236,452           262,953           280,140           226,049           191,629            6,118,700        ‐                        ‐                        ‐                        ‐                        ‐                         27,782,304      23,341,860      24,585,835      25,651,750      31,526,361      34,579,382       6,075,025$      471,966$         3,592,174$      6,356,226$      9,333,991$      6,891,848$       Fiscal Year Ended June 30 Page 103 2015 2016 2017 2018 General fund Nonspendable Inventory 6,975$              9,272$              5,872$              13,490$             Prepaid items 10,655              4,123                16,868              21,945               Committed 2,634,923         2,652,357         2,714,135         2,893,850          Assigned 1,872,492         1,701,086         1,743,768         2,101,574          Unassigned 4,369,457         5,853,806         2,696,999         2,140,434          Total general fund 8,894,502$      10,220,644$    7,177,642$      7,171,293$       All other governmental funds Nonspendable Cash with escrow agent 1,645,000$      ‐$                       ‐$                       ‐$                        Prepaid items 656                    5,055                474                    ‐                          Restricted 10,066,786      4,500,044         4,432,710         4,571,263          Committed 1,079,780         1,366,081         8,576,250         7,248,890          Assigned 5,444,124         5,943,364         1,784,761         2,340,683          Unassigned ‐                         ‐                         ‐                         ‐                          Total all other governmental funds 18,236,346$    11,814,544$    14,794,195$    14,160,836$     Source:  The source of this information is the Town's financial records. Fiscal Year ended June 30 Town of Fountain Hills, Arizona Fund Balances — Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Page 104 2019 2020 2021 2022 2023 2024 5,168$            8,982$            7,117$            14,845$         12,923$         5,099$             17,311            2,418              20,170            36,464            44,542            33,080             3,027,804      3,249,354      3,387,433      3,664,240      4,044,890      4,466,782       2,380,653      622,641         1,085,667      1,278,191      1,639,184      ‐                        1,863,722      5,535,499      10,958,643    9,466,833      11,644,005    13,070,591     7,294,658$    9,418,894$    15,459,030$  14,460,573$  17,385,544$  17,575,552$   ‐$                    ‐$                    ‐$                    ‐$                    ‐$                    ‐$                     ‐                       ‐                       ‐                       4,253              2,326              14,960             3,579,891      2,708,883      2,541,894      5,701,067      9,368,764      9,096,302       5,868,386      6,068,810      4,430,491      5,511,281      7,458,457      ‐                        2,592,343      2,402,244      1,845,901      6,541,572      7,589,084      19,590,434     ‐                       (66,361)          ‐                       ‐                       ‐                       ‐                        12,040,620$  11,113,576$  8,818,286$    17,758,173$  24,418,631$  28,701,696$   Fiscal Year ended June 30 Page 105 2015 2016 2017 2018 Revenues Taxes 10,240,382$     12,299,285$     12,069,714$     13,019,341$      Licenses and permits 1,043,382          1,372,045          1,310,973          2,004,386           Leases and rents 269,753             258,165             284,090             282,531              Intergovernmental 9,770,048          7,559,436          7,917,651          8,266,028           Charges for services 176,541             197,109             351,476             254,122              Other 188,251             147,662             153,438             207,697              Fines and forfeitures 186,456             209,380             257,727             182,997              Investment earnings 150,358             219,058             55,127               158,860              Total revenues 22,025,171        22,262,140        22,400,196        24,375,962         Expenditures Current: General government 2,275,124          2,324,026          2,713,548          3,195,936           Development services 2,073,990          2,217,814          1,275,147          1,397,249           Public safety 6,675,874          7,034,887          7,420,032          7,402,227           Public works 1,275,779          2,498,714          3,954,450          3,420,317           Culture and recreation 1,962,585          2,240,865          2,484,940          2,375,758           Capital outlay 8,799,068          6,471,382          1,693,265          4,317,214           Debt service: Principal 1,850,000          4,260,000          2,675,000          2,720,000           Interest 454,957             308,106             244,986             185,164              Other debt service 243,585             2,005                 2,180                 1,805                  Total expenditures 25,610,962        27,357,799        22,463,548        25,015,670         Excess (deficiency) of revenues over (under) expenditures (3,585,791)        (5,095,659)        (63,352)              (639,708)             Other Financing Sources (Uses) Transfers in 2,519,774          562,044             5,194,138          4,543,728           Transfers out (2,519,774)        (562,044)            (5,194,138)        (4,543,728)         Proceeds from sale of capital assets ‐                          ‐                          ‐                          ‐                           Issuance of refunding bonds 4,180,000          ‐                          ‐                          ‐                           Issuance of long‐term debt 7,565,000          ‐                          ‐                          ‐                           Bond Premium 342,086             ‐                          ‐                          ‐                           Payment to refunded bonds escrow agent (4,085,000)        ‐                          ‐                          ‐                           Total other financing sources (uses)8,002,086          ‐                          ‐                          ‐                           Net change in fund balances 4,416,295$        (5,095,659)$      (63,352)$            (639,708)$          Expenditures for capitalized assets 9,067,254$        6,394,346$        1,696,612$        4,293,214$         Debt service as a percentage of noncapital expenditures 15.4% 21.8% 14.1% 14.0% Source:  The source of this information is the Town's financial records. Fiscal Year Ended June 30 Town of Fountain Hills, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances  Last Ten Fiscal Years (modified accrual basis of accounting) Page 106 2019 2020 2021 2022 2023 2024 14,342,801$  15,694,054$    16,510,939$    18,071,247$    20,978,020$    20,920,887$   2,040,622      835,731            1,293,172         2,039,349         1,524,278         1,737,041       280,801         286,391            264,621            333,946            355,607            359,479          8,401,676      8,920,296         12,713,449       14,124,324       15,919,459       13,834,258     181,105         222,947            99,090              171,157            216,438            247,302          347,141         387,225            320,291            431,838            403,305            333,012          130,483         281,704            239,191            223,964            240,844            255,843          554,549         545,983            49,654              (419,224)           1,094,158         2,218,949       26,279,178    27,174,331       31,490,407       34,976,601       40,732,109       39,906,771     3,147,063      3,280,191         6,513,419         4,105,257         4,697,681         4,996,577       858,957         797,513            954,667            1,041,531         1,210,967         1,275,320       6,295,989      8,566,058         8,906,428         9,180,108         9,612,993         11,330,144     7,880,668      6,046,298         6,321,814         5,712,452         7,542,736         8,774,689       2,845,027      2,609,842         2,726,748         3,166,526         3,583,471         3,483,590       4,487,854      2,716,523         4,758,067         3,828,699         4,498,734         3,523,577       2,635,000      2,310,000         400,000             ‐                          ‐                          ‐                       123,871         67,301              7,044                  ‐                          ‐                          ‐                       1,600              1,998                 500                    598                    98                      208                  28,276,029    26,395,724       30,588,687       27,035,171       31,146,680       33,384,105     (1,996,851)     778,607            901,720            7,941,430         9,585,429         6,522,666       3,672,532      1,928,978         3,086,628         11,962,153       10,247,867       11,948,021     (3,672,532)     (1,928,978)       (3,136,628)       (11,962,153)     (10,247,867)     (11,948,021)   ‐                      418,585             ‐                          ‐                          ‐                          ‐                       ‐                       ‐                          ‐                          ‐                          ‐                          ‐                       ‐                       ‐                          ‐                          ‐                          ‐                          ‐                       ‐                       ‐                          ‐                          ‐                          ‐                          ‐                       ‐                      ‐                         ‐                         ‐                         ‐                         ‐                       ‐                      418,585            (50,000)             ‐                         ‐                         ‐                       (1,996,851)$  1,197,192$       851,720$          7,941,430$       9,585,429$       6,522,666$     4,465,837$    2,689,270$       4,758,055$       3,890,700$       4,497,424$       3,616,795$     11.6% 10.0% 1.8% 0.0% 0.0% 0.0% Fiscal Year Ended June 30 Page 107 Fiscal Year Ended June 30 Property Tax Sales Tax Franchise Tax Total 2015 904,660             8,983,050          352,673             10,240,383         2016 2,543,298          9,391,267          360,320             12,294,885         2017 2,287,444          9,419,551          367,119             12,074,114         2018 2,286,081          10,311,578        421,682             13,019,341         2019 2,427,730          11,491,124        423,947             14,342,801         2020 2,086,769          13,172,389        434,896             15,694,054         2021 427,387             15,657,292        426,260             16,510,939         2022 11,482               17,660,758        399,007             18,071,247         2023 8,778                  20,586,294        382,948             20,978,020         2024 9,841                  20,559,928        351,118             20,920,887         Source:  The source of this information is the Town's financial records. Town of Fountain Hills, Arizona Governmental Activities ‐ Tax Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Page 108  Number of  Filers   Percentage  of Total  Tax Liability   Percentage  of Total   Number of  Filers   Percentage  of Total  Tax Liability   Percentage  of Total  Sales category: Construction 474               3.22% 3,197,045$    15.55%N/A N/A 935,694$       10.42% Transportation/utilities 151               1.03% 1,661,398      8.08%N/A N/A 1,405,768      15.65% Wholesale/retail 10,769         73.12% 10,689,793    52.00% N/A N/A 4,214,119      46.91% Restaurants/bars 108               0.73% 1,452,328      7.06% N/A N/A 682,180         7.59% Real estate, rental & leasing 1,071           7.27% 1,351,156      6.57%N/A N/A 617,348         6.87% Services 681               4.62% 2,206,542      10.73% N/A N/A 604,618         6.73% Other 1,474           10.01%1,666              0.01%N/A N/A 523,323         5.83% Total 14,728         100.00%20,559,928$  100.00%N/A N/A 8,983,050$    100.00% Note: Other includes all state and local sales tax audit adjustments. Source:  The source of this information is the Arizona Department of Revenue. Fiscal Year Ended June 30, 2015 Note: Because of confidentiality statutes, the names of the 10 largest revenue payers cannot be disclosed. The categories presented are intended to  provide alternative information regarding the sources of the Town's revenue. The Number of Filers was unavailable for the year ended June 30, 2015. Fiscal Year Ended June 30, 2024 Town of Fountain Hills, Arizona Sales Tax Payers by Category June 30, 2024 and June 30, 2015 Page 109 2015 2016 2017 2018 Sales category: Construction 935,694$          918,717$          730,164$          1,408,332$       Transportation/utilities 1,405,768         1,327,441         1,288,153         1,309,928          Wholesale/retail 4,214,119         4,815,582         4,982,218         5,235,992          Restaurants/bars 682,180            742,540            811,985            829,857             Real estate, rental & leasing 617,348            552,856            636,834            745,171             Services 604,618            779,753            852,675            747,834             Other 523,323            254,378            117,523            34,464               Total 8,983,050$      9,391,267$      9,419,552$      10,311,578$     Note: Other includes all state and local sales tax audit adjustments. Source:  The source of this information is the Town's financial records. Fiscal Year Ended June 30 Town of Fountain Hills, Arizona Taxable Sales by Category Last Ten Fiscal Years (modified accrual basis of accounting) Page 110 2019 2020 2021 2022 2023 2024 1,932,716$      1,910,021$    1,990,383$    1,780,123$      3,449,250$    3,197,045$     1,290,585         1,405,005       1,529,268       1,501,600         1,576,570      1,661,398       5,464,247         7,031,474       8,956,208       9,834,924         10,500,903    10,689,793     893,595            892,210          1,062,172       1,446,971         1,517,063      1,452,328       842,233            965,124          993,228          1,103,241         1,258,009      1,351,156       1,025,548         916,769          1,125,753       1,992,955         2,278,723      2,206,542       42,200              51,786            280                  946                    5,776              1,666               11,491,124$    13,172,389$  15,657,292$  17,660,760$    20,586,294$  20,559,928$   Fiscal Year Ended June 30 Page 111 Fiscal  Year Ended Town Maricopa State Total June 30 Rate County Rate Tax Rate 2015 2.60% 0.70% 5.60% 8.90% 2016 2.60% 0.70% 5.60% 8.90% 2017 2.60% 0.70% 5.60% 8.90% 2018 2.60% 0.70% 5.60% 8.90% 2019 2.60% 0.70% 5.60% 8.90% 2020* 2.90% 0.70% 5.60% 9.20% 2021 2.90% 0.70% 5.60% 9.20% 2022 2.90% 0.70% 5.60% 9.20% 2023 2.90% 0.70% 5.60% 9.20% 2024 2.90% 0.70% 5.60% 9.20% *  0.3% Town rate increase effective 11/1/2019 Source:  The source of this information is the Arizona Department of Revenue. Town of Fountain Hills, Arizona Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Page 112 Community Municipal Highway Fiscal Year General Facilities Property User Special Total Debt Ended Obligation District Corporation Revenue Assessment Outstanding Per June 30 Bonds*Bonds**Bonds*Bonds Bonds Debt Capita 2015 9,517,086         2,300,000        3,525,000          ‐                   ‐                          15,342,086       651                  2016 7,678,669         1,935,000        1,400,000         ‐                   ‐                          11,013,669       467                  2017 5,680,252         1,560,000        1,030,000         ‐                   ‐                          8,270,252         351                  2018 3,631,835         1,180,000        670,000            ‐                   ‐                          5,481,835         233                  2019 1,683,417         795,000           300,000            ‐                   ‐                          2,778,417         118                  2020 ‐                         400,000           ‐                         ‐                   ‐                          400,000             17                    2021 ‐                         ‐                        ‐                         ‐                   ‐                          ‐                          ‐                       2022 ‐                         ‐                        ‐                         ‐                   ‐                          ‐                          ‐                       2023 ‐                         ‐                        ‐                         ‐                   ‐                          ‐                          ‐                       2024 ‐                         ‐                        ‐                         ‐                   ‐                          ‐                          ‐                       Source:  The source of this information is the Town's financial records and the U.S. Bureau of Economic Analysis. *  All bond amounts presented include amortization of original issuance discounts and premiums. **  All bond amounts presented include amoritization of original issuance discounts and premiums. The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general obligation bonds. Population data can be found in the Schedule of Demographic and Economic Statistics. Governmental Activities Town of Fountain Hills, Arizona Ratios of Outstanding Debt by Type Last Ten Fiscal Years Page 113 Fiscal  Year General  Obligation  Bonds* Less: Amounts  Restricted for  Principal Net General  Obligation  Bonds Estimated Actual  Taxable Value of  Property Percentage of  Estimated Actual  Taxable Value of  Property Net General  Obligation  Bonded Debt  per Capita Net General  Obligation Bonded  Debt per Net Limited  Assessed Valuation Municipal  Property  Corporation  Bonds* Net Municipal  Property  Corporation Debt  per Capita  Total Revenues‐ All Sources  2015 11,817,086      420,782            11,396,304      3,722,794,676         0.31% 483                 2.83% 1,764,338        75                           22,161,316        2016 9,613,669         576,281            9,037,388         3,744,585,506         0.24% 378                 2.25% 1,088,117        46                           22,262,139        2017 7,240,252         343,697            6,896,555         3,965,824,715         0.17% 282                 1.63% 860,437           35                           22,400,196        2018 4,811,835         83,185              4,728,650         4,166,589,970         0.11% 192                 1.06% 664,484           27                           24,375,962        2019 2,478,417         146,100            2,332,317         4,381,287,279         0.05% 93                   0.50% 287,694           12                           26,279,178        2020 400,000            171,807            228,193            4,657,015,387         0.01% 9                     0.05%‐                          ‐                               27,586,011        2021 ‐                          191,594             ‐                          4,909,183,626         ‐                      ‐                         ‐                               31,354,466        2022 ‐                          194,344            ‐                          5,435,983,541         ‐                               ‐                      ‐                         ‐                               35,025,597        2023 ‐                          200,754            ‐                          5,721,274,077         ‐                               ‐                      ‐                                      ‐                         ‐                               40,931,231        2024 ‐                          46,427              ‐                          6,057,936,533         ‐                               ‐                      ‐                                      ‐                         ‐                               40,071,615        Source:  The source of this information is the Department of Revenue and the Town's financial records. *  All bond amounts presented are net of original issuance discounts and premiums. The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general obligation bonds. Population data can be found in the Schedule of Demographic and Economic Statistics. Note:  On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the Town’s bonding capacity and as the ceiling for net limited assessed value. Town of Fountain Hills, Arizona Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Page 114 Estimated Estimated Share of Percentage Overlapping Outstanding Debt Applicable Debt Overlapping: Maricopa County Special Healthcare District 574,205,000$            1.11% 6,373,676$           Maricopa County Community College District 135,585,000              1.11% 1,504,994             East Valley Institute of Technology ‐                                   2.27%‐                              Fountain Hills Unified School District $4,535,000 96.49% 4,375,822             Total Overlapping Debt 12,254,492           Direct: Town of Fountain Hills, Arizona* General Obligation Bonds ‐                              Revenue Bonds ‐                              Eagle Mountain Community Facilities District**‐                              Total Direct Debt ‐                              Total direct and overlapping debt 12,254,492$         Source:   The source of this information is the Town's records, the State and County Abstract of the Assessment Roll, the Arizona Department of Revenue Report of Indebtedness and the applicable governmental unit. The Report of Indebtedness is from the most recent fiscal year which is available, which typically will be one year earlier than the current fiscal year. * All bond amounts include amortization of original issuance discounts and premiums. **   The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general    obligation bonds. Note:  The estimated percentage of debt outstanding applicable to the Town is calculated based on the Town's net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping jurisdiction. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Tow of Fountain Hills.  This schedule further estimates the portion of outstanding debt of those overlapping governments that is borne by residents and businesses of the Town. This process recognizes that, when considering a town's ability to issue and repay long‐term debt, the entire debt burden borne by residents should be taken into account.  However, this fact does not imply that every taxpayer is a resident, and, therefore, responsible for repaying the debt of each overlapping government. Town of Fountain Hills, Arizona Direct and Overlapping Governmental Activities Debt as of June 30, 2024 Governmental Unit Page 115 2015 2016 2017 2018 6% Debt Limit Debt limit 24,199,829$    28,325,296$   30,651,126$      31,459,192$       Total net debt applicable to limit ‐                         ‐                        ‐                           ‐                            Legal debt margin 24,199,829$    28,325,296$   30,651,126$      31,459,192$       Total debt applicable to the limit as a percentage of debt limit ‐‐‐ ‐ 20% Debt Limit Debt limit 80,666,095$    94,417,653$   102,170,422$   104,863,974$    Total net debt applicable to limit 9,175,000         7,405,000        5,475,000          3,495,000           Legal debt margin 71,491,095$    87,012,653$   96,695,422$      101,368,974$    Total debt applicable to the limit as a percentage of debt limit 11%8%5%3% Source:  The source of this information is the Town's financial records. Note:  All amounts presented are net of original issuance discounts and premiums. Note:  On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the Town’s bonding capacity and as the ceiling for net limited assessed value. Fiscal Year Ended June 30 Town of Fountain Hills, Arizona Legal Debt Margin Information Last Ten Fiscal Years Page 116 2019 2020 2021 2022 2023 2024 32,400,042$    33,907,227$    35,603,580$    37,800,780$    40,238,671$    49,892,806$     ‐                         ‐                         ‐                         ‐                         ‐                         ‐                          32,400,042$    33,907,227$    35,603,580$    37,800,780$    40,238,671$    49,892,806$     ‐‐‐‐‐‐ 108,000,140$  113,024,089$  118,678,601$  126,002,599$  134,128,903$  166,309,355$   1,615,000         ‐                         ‐                         ‐                         ‐                         ‐                          106,385,140$  113,024,089$  118,678,601$  126,002,599$  134,128,903$  166,309,355$   1%‐‐‐‐ Fiscal Year Ended June 30 Page 117 Net full cash assessed valuation 831,546,774               Water, Sewer, Artificial Lighting, Parks, Open Space, Recreational Facility  Improvements, Public Safety, Law Enforcement, Fire and Emergency Facilities,  Street and Transportation Facilities Debt limit ‐ 20% of net full cash assessed valuation 166,309,355$             Net debt applicable to limit ‐  20% legal debt margin 166,309,355               All Other General Obligation Bonds Debt limit ‐ 6% of net full cash assessed valuation 49,892,806                 Net debt applicable to limit ‐  6% legal debt margin 49,892,806                 Total legal debt margin 216,202,161$             Source:  The source of this information is the Maricopa County Assessor's Office and the Town's financial records. Town of Fountain Hills, Arizona Calculation of Legal Debt Margin as of June 30, 2024 Page 118 Fiscal Year Ended Pledged June 30 Principal Interest Total Revenues Coverage 2015 2,545,000  184,500     2,729,500   15,583,484   5.7               2016 480,000     32,740        512,740       16,250,673   31.7             2017 370,000     22,680        392,680       16,815,224   42.8             2018 360,000     16,686        376,686       18,194,833   48.3             2019 370,000     10,854        380,854       19,765,936   51.9             2020 300,000     4,860          304,860       20,862,372   68.4             2021 ‐                   ‐                   ‐                    24,001,082   100.0           2022 ‐                   ‐                   ‐                    26,453,550   100.0           2023 ‐                   ‐                   ‐                    30,620,545   100.0           2024 ‐                   ‐                   ‐                    33,200,920   100.0           Source:  The source of this information is the Town's financial records. Town of Fountain Hills Revenue Bond Coverage Last Ten Fiscal Years Municipal Facilities Corporation Revenue Bonds Page 119 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* Population 23,573             23,899             24,482             24,583             24,987             25,200             23,820             23,906             23,785             23,820              Per capita personal income 46,619$          48,240$          50,162$          60,531$          54,936$           57,468$           59,791$           57,550$           60,707$           66,756$            Median age 53.7 53.8 53.7 53.5 57.5 58.8                  59.4                  58.6                  62.0                  60.2                   Public school enrollment 1,692               1,619               1,506               1,444               1,380               1,338               1,314               1,267               1,192               1,133                Town of Fountain Hills unemployment rate 5.4% 2.4% 1.9% 1.6% 3.9% 8.7% 4.9% 4.4% 2.8% 2.7% Land use Total acres 13,005.7         13,005.7         13,005.7         13,005.7         13,005.7          13,005.7          13,005.7          13,005.7          13,005.7          13,005.7           Total square miles 20.32               20.32               20.32               20.32               20.32               20.32               20.32               20.32               20.32               20.32                Vacant lots 1,165               1,247               1,209               1,175               1,172               1,052               1,158               1,158               1,030               966                    Number of units Housing 12,981             13,002             13,130             13,176             13,558             13,749             13,875             13,876             14,101             14,330              Lodging 4                       4                       4                       4                       4                       4                       4                       4                       4                       4                        Restaurants 43                     46                     50                     52                     54                     55                     55                     57                     57                     55                      Shopping centers 20                     20                     20                     20                     20                     20                     20                     20                     20                     20                      Schools Public 3                       3                       3                       3                       3                       3                       3                       3                       3                       4                        Preschool 7                       7                       7                       7                       5                       5                       5                       5                       5                       4                        Charter 1                       1                       1                       1                       1                       1                       1                       ‐                    ‐                    ‐                     Vocational ‐                   ‐                   ‐                   1                       1                       2                       2                       1                       1                       ‐                     Note:  N/A indicates the information is not available. * Information obtained is based on calendar years; therefore, the latest information obtained was from 2023. Sources:  The sources of the "Per Capita Personal Income", "Median Age" and "Unemployment Rate" information are  Sites USA (2009‐2017), U.S. Census Bureau and Arizona Office of Economic Opportunity (beginning in 2018). The  source of the "Population" is the U.S. Census Bureau July 1, 2023 estimate. The source of School Enrollment is the  Fountain Hills Unified School District No. 98. Other information is from the Town's records. Town of Fountain Hills, Arizona Demographic and Economic Statistics Last Ten Calendar Years Calendar Year Page 120 Percentage Number of of Total Town Number of  Employer Employees Rank Employment Employees Rank Fountain Hills Unified School District No. 98 280              1       4.6% 327              1        Fountain View Village 140              2       2.3% 150              2        Safeway Stores 130              3       2.1%88                 4        Rural Metro Corporation 110              4       1.8% N/A N/A Firerock Country Club 100              5       1.6%68                 7        Fry's Food Stores 80                 6       1.3%90                 3        Target Stores 80                 6       1.3%84                 5        Eagle Mountain Golf Club 70                 7       1.1%70                 6        Fountain Hills Family Practice PC 70                 7       1.1% N/A N/A Fountain Hills Medical Center 70                 7       1.1% N/A N/A Town of Fountain Hills 70                 7       1.1%41                 12      Golf International Inc 60                 8       1.0% N/A N/A Quotemedia Inc 60                 8       1.0% N/A N/A Sunridge Canyon Golf Course 60                 8       1.0%59                 10      United States Postal Service 60                 8       1.0%64                 9        Bashas 60                 8       1.0%67                 8        Totals 1,500           24.4% 1,108            Total Town employment 6,120           4,655            Source:  The source of this information is the Maricopa Association of Governments and Town records. Note: MAG data includes employers with 5+ employees and is rounded to nearest 10. * Data for 2023 was not available. 2022* Town of Fountain Hills, Arizona Principal Employers Prior Fiscal Year and Nine Years Ago 2013 Page 121 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Municipal court 3.63         3.63         3.63         3.63         3.63         3.63         3.63         3.63         4.63         4.63          Administration 11.33      11.63      12.25      13.45      13.70      15.20      15.00      16.00      16.24      17.50       Public works n/a n/a 9.80         9.80         10.80      12.43      12.43      12.00      13.00      13.00       Development services 16.30      16.30      7.50         8.50         7.50         9.00         9.00         9.00         10.00      10.00       Community services 21.06      20.76      20.76      20.56      20.56      20.56      22.01      24.02      24.52      25.38       Fire Department ‐               ‐               ‐               ‐               ‐               ‐               ‐               ‐               ‐               34.00       Total 52.32      52.32      53.94      55.94      56.19      60.82      62.07      64.65      68.39      104.51     Source:  The source of this information is the Town's financial records. Town of Fountain Hills, Arizona Authorized Full‐time Equivalent Government Employees by Function Last Ten Fiscal Years Fiscal Year Ended June 30 Page 122 Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Municipal Court Cases filed 1,738       1,593       2,014       1,277       891          2,237       1,324       1,586       1,823       1,862           Hearings/Trials held 1,585       1,564       1,844       676          801          568          1,430       1,378       1,216       1,163           Administration FTEs per 1,000 residents 2.2            2.2            2.2            2.3            2.2            2.4            2.6            2.7            2.9            4.4               Registered voters ‐ general election 16,213     none 16,387     none 16,775     none 18,415     none 18,423     none Voter turnout ‐ general election 40% none 40% none 50% none 90% none 80% none Development Services Building permits issued 443          410          509          468          576          547          575          620          730          742              Building inspections conducted 2,448       2,129       2,704       3,707       4,795       4,069       3,652       1,911       5,460       4,947           Number of code violation cases 752          713          669          654          655          690          497          586          656          299              Number of zoning cases 65             72             50             41             11             7               21             73             95             114              Community Services Number of Community Center bookings/permits* 3,439       3,124       3,764       4,395       3,857       3,169       1,675       1033* 316** 258              Number of participants in recreational programs 2,249       2,910       3,773       3,794       3,489       1,830       2,892       4,110       5,244       7,093           Number of Senior Services members 1,273       1,326       1,335       1,220       1,313       1,265       1,360       1,175       1,290       1,518           Number of home delivered meals 4,035       3,497       3,920       3,093       3,562       5,215       4,402       4,581       5,449       5,899           Law Enforcement (contracted) Physical arrests 445          220          220          214          67             86             56             49             67             55                Traffic violations 1,539       1,215       1,803       1,053       1,248       2,618       2,745       2,568       3,349       2,536           Fire & Emergency Medical (contracted) Total incident responses 3,166 3,191 3,425 3,659 4,073 3,896 4,215 4,268 4,709 4,140*** Average response time (in minutes)3:37 3:57 3:25 3:33 3:32 3:51 4:50 4:38 4:44 5:00*** Source:  The source of this information is the Town's financial records. Note:  N/A indicates that the information is not available. **Beginning in 2023, individual bookings were replaced by single day and recurring permits only. ***The Town Fire Department transitioned from a contracted to an in‐house Department in      January 2024 and did not have full Fiscal Year 2024 records available. 2024 Fire Department      Figures are estimated based on half‐year activity. Fiscal Year Ended June 30 Town of Fountain Hills, Arizona Operating Indicators by Function Last Ten Fiscal years *The Community Center was closed from 7/1/22 until 10/3/22 for renovations. Page 123 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public safety Number of fire stations 2              2              2              2              2                 2              2              2              2              2               Public works Streets (centerline miles) 178.9      178.9      178.9      180.0      180.0         180.0      180.0      180.0      180.0      180.0       Streets (lane miles)390          391          390.5      391.5      391.5         391.5      391.5      391.5      391.5      391.5       Pedestrian lighting 85            91            91            91            91              91            91            95            95            95             Traffic signals 13            13            13            13            13              13            13            13            13            13             Parks and recreation Acreage‐developed parks 119          119          119          119          119            119          119          119          119          119           Playgrounds 7              7              7              7              9                 9              9              9              9              9               Baseball/softball diamonds 6              6              6              6              6                 6              6              6              6              6               Soccer/football fields 7              7              7              7              7                 7              7              7              7              7               Community centers 1              1              1              1              1                 1              1              1              1              1               Preserve acreage 807          807.2      807.2      807.2      889.2         913.2      913.2      913.2      913.2      913.2       Miles of trails 15.80      15.8         18.5         18.5         18.5           18.5         18.5         23.0         23.0         24.5          Source:  The source of this information is the Town's facilities records. Note:  N/A indicates the information is not available. Town of Fountain Hills, Arizona Capital Assets Statistics by Function Last Ten Fiscal Years Fiscal Year Ended June 30 Function/Program Page 124 Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 480-816-5100www.fountainhillsaz.gov- f acebook.com/TownotFountainHillsr.J -twitter.com/fbazgov Town of Fountain Hills, Arizona Annual Expenditure Limitation Report Year Ended June 30, 2024 Town of Fountain Hills, Arizona  Annual Expenditure Limitation Report  Year Ended June 30, 2024  Contents Page  Independent Accountant’s Report 1  Annual Expenditure Limitation Report ‐ Part I 2  Annual Expenditure Limitation Report ‐ Part II 3  Annual Expenditure Limitation Report ‐ Reconciliation 4  Notes to Annual Expenditure Limitation Report 5  Independent Accountant’s Report The Auditor General of the State of Arizona The Honorable Mayor and Town Council of the Town of Fountain Hills, Arizona We have examined the accompanying Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona for the year ended June 30, 2024, and the related notes to the report. The Town’s management is responsible for presenting this report in accordance with the Uniform Expenditure Reporting System as described in Note 1. Our responsibility is to express an opinion on this report based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether this report is presented in accordance with the Uniform Expenditure Reporting System, in all material respects. An examination involves performing procedures to obtain evidence about the amounts and disclosures in the report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of the report, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the Annual Expenditure Limitation Report referred to above is presented, in all material respects, in accordance with the Uniform Expenditure Reporting System as described in Note 1. Heinfeld, Meech & Co., P.C. Scottsdale, Arizona October 30, 2024 Town of Fountain Hills, Arizona Annual Expenditure Limitation Report – Part I Year Ended June 30, 2024 1. Economic Estimates Commission expenditure limitation $ 34,364,380 2. Amount subject to the expenditure limitation (total amount from Part II, Line C) 32,901,348 3. Amount under the expenditure limitation $ 1,463,032 I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the requirements of the Uniform Expenditure Reporting System. Signature of Chief Fiscal Officer Name and Title: Paul Soldinger, Chief Financial Officer Telephone Number: 480-816-5160 Date: October 30, 2024 See accompanying notes to report. Internal Governmental Service Funds Funds Total A. Amounts reported on the Reconciliation, Line D $ 33,178,280     $ 138,222       $ 33,316,502       B. Less exclusions claimed: 1 Grants, aid, contributions, or gifts from a private agency, organization, or individual,  except amounts received in lieu of taxes 137,027          137,027             2 Amounts received from the State of Arizona 226,389          226,389             3 Refunds, reimbursements, and other recoveries 51,738             51,738               4 Total exclusions claimed 415,154          ‐                415,154             C.Amounts subject to expenditure limitation $ 32,763,126     $ 138,222       $ 32,901,348       Town of Fountain Hills, Arizona Annual Expenditure Limitation Report ‐ Part II Year Ended June 30, 2024 Description See accompanying notes to report. Page 3 Internal Governmental Service Description Funds Funds Total A. $ 33,384,105      $ 52,769             $ 33,436,874          B. Subtractions: 1.Items not requiring the use of current financial resources: Depreciation 7,769               7,769                    2. 7,769                 7,769                    3.Required fees paid to the Industrial Commission of Arizona 60,483              60,483                  4.Involuntary court judgments 137,573            137,573                5.Total subtractions 205,825            7,769               213,594                C. Additions: 1.Capital asset acquisitions 93,222             93,222                  2.Total additions ‐                     93,222             93,222                  D. Amounts reported on Part II, Line A $ 33,178,280      $ 138,222          $ 33,316,502          See accompanying notes to report. Town of Fountain Hills, Arizona Annual Expenditure Limitation Report ‐ Reconciliation Year Ended June 30, 2024 Total expenditures/expenses/deductions and applicable other financing  uses, special items, and extraordinary items reported within the fund  financial statements Expenditures of separate legal entities established under Arizona Revised  Statutes Page 4 Town of Fountain Hills, Arizona  Notes to Annual Expenditure Limitation Report  Year Ended June 30, 2024      Note 1 – Summary of Significant Accounting Policies    The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform  Expenditure Reporting System (UERS), as required by Arizona Revised Statutes  §41‐1279.07. The  AELR excludes expenditures, expenses, or deductions of certain revenues specified in the Arizona  Constitution, Article IX, §20, from the total expenditures, expenses, or deductions reported in the  fund financial statements.      In accordance with the UERS, a note to the AELR is presented below for any exclusion claimed on  Part II and each subtraction or addition in the Reconciliation that cannot be traced directly to an  amount reported in the fund financial statements.  All references to financial statement amounts  in the following notes refer to the Statement of Revenues, Expenditures, and Changes in Fund  Balances for the Governmental Funds; Statement of Revenues, Expenses, and Changes in Fund  Net Position for the Internal Service Funds; Statement of Cash Flows for the Internal Service  Funds.    Note 2 – The subtraction for expenditures of separate legal entities established under Arizona Revised  Statutes in the Governmental Funds consists of expenditures from the Cottonwoods Maintenance  Special Revenue Fund, Municipal Property Corporation Debt Service Fund and the Eagle Mountain  Debt Service Fund.        Governmental  Cottonwoods Maintenance Special Revenue Fund  $              7,561  Municipal Property Corporation Debt Service Fund  10  Eagle Mountain Debt Service Fund 198   $              7,769    Note 3 – The subtraction of $60,483 for required fees paid to the Industrial Commission of Arizona was  for deposit into the State’s Municipal Firefighter Cancer Reimbursement Fund as required by Arizona  Revised Statutes §23‐1703.    Note 4 – The subtraction of $137,573 for involuntary court judgments is related to the Qasimyar class  action judgment for all taxing districts within Maricopa County.    Note 5 – Investment earnings excludable as dividends, interest, and gains on the sale or redemption  of investment securities in the Governmental and Internal Service Funds were unspent and carried  forward as follows:      Governmental   Internal  Service  Carryforward exclusions as of 6/30/23 $       1,213,835 $            5,596  Investment earnings 2,218,949 126,157  Carryforward exclusions as of 6/30/24 $       3,432,784  $       131,753    Page 5 Town of Fountain Hills, Arizona  Notes to Annual Expenditure Limitation Report  Year Ended June 30, 2024      Note 6 – Grant revenues, contributions and sponsorships from private organizations are claimed as  exclusions in the year the expenditure occurs and any unused amounts are carried forward for future  years. The current year grant exclusion consists of expenditures of the following revenues:    Proposition 202 $       85,778  Contributions 20,049  Sponsorships 31,200  Current year exclusion utilized $     137,027    Note 7 – State grant revenues are claimed as exclusions in the year the expenditure occurs and any  unused amounts are carried forward for future years. The current year state grant exclusion consists  of expenditures of the following revenues:    Proposition 302 $      74,229  LTAF II 120,309  Arizona Office of Tourism 31,851  Current year exclusion utilized $    226,389    Note 8 – Charges for services revenue in the Internal Service Funds relates to fees paid by the  Governmental Funds to the Internal Service Funds for future technology, vehicle, and equipment  replacement. Current year charges for services of $419,994 were unspent and carried forward for  future years.    Note 9 – The highway user revenue (HURF) earned in excess of the amounts received in fiscal year  1979‐80 is as follows:    HURF Fund Intergovernmental Revenue $    2,720,831  Less: Vehicle License Tax Revenues (869,845) Excludable revenue 1,850,986    Carryforward HURF funds as of 6/30/23, as restated 4,372,723  HURF Fund expenditures 6,307,916  Less: expenditures of vehicle license tax (869,845) Less: expenditures of non‐excludable revenue (1,465,307) Less: expenditures of non‐excludable fund balance (2,346,112) Less: amounts transferred from the General Fund (1,626,652) Carryforward HURF funds as of 6/30/24 $    6,223,709  Page 6 Town of Fountain Hills, Arizona  Notes to Annual Expenditure Limitation Report  Year Ended June 30, 2024      Note 10 – Refunds, reimbursements, and other recoveries are claimed as exclusions in the year the  refund, reimbursement, or other recovery is spent and any unused amounts are carried forward for  future years. Current year refunds, reimbursements, and other recoveries of $51,738 were spent and  claimed as an exclusion. Remaining refunds, reimbursements, and other recoveries of $424,411 were  unspent and carried forward for future years.    Note 11 – Revenues that are constitutionally excludable that were not spent in the year of receipt  may be accumulated and excluded in future years when spent. A summary of the revenue sources  and the changes in those balances is shown in the table below:    Description   Balance  June 30, 2023  Increase  Decrease   Balance   June 30, 2024  Dividends, interest, and gains on the sale or  redemption of investment securities  $      1,219,431 $  2,345,106 $ $       3,564,537  Highway user revenues in excess of those  received in fiscal year 1979‐80, as restated  4,372,723 1,850,986  6,223,709  Quasi‐external interfund transactions  419,994  419,994  Refunds, reimbursements, and other  recoveries  424,411  424,411  Total carryforward  $      5,592,154 $  5,040,497 $ $     10,632,651    Note 12 – During the 2021, 2022, and 2023 fiscal years, the Town excluded $252,186, $1,125,640,  and $2,549,388, respectively, of HURF monies that should have been carried forward. As a result, the  Town is restating its HURF exclusions for fiscal years 2021, 2022, and 2023 and carrying forward the  remaining amounts of $252,186, $1,125,640, and $2,549,388, respectively, to future years as follows.      Fiscal Year    2021  2022  2023  Economic Estimates Commission expenditure limitation  $ 30,646,564 $31,747,291 $31,896,371  Amount subject to the expenditure limitation,       as previously reported  21,454,429 21,206,563 23,486,547  Plus: adjustment to HURF exclusion previously reported  252,186 1,125,640 2,549,388  Amount subject to the expenditure limitation,       as restated  21,706,615 22,332,203 26,035,935  Amount under the expenditure limitation, as restated  $   8,939,949 $  9,415,088 $  5,860,436    The following presents the restatement to the exclusion claimed for HURF:      Fiscal Year    2021  2022  2023  HURF exclusion claimed, as previously reported  $  2,478,045 $ 1,125,640 $ 2,549,388   Less:  HURF revenues carried forward to future years,       as restated  (252,186) (1,125,640) (2,549,388)  HURF exclusion claimed, as restated  $  2,225,859 $  $      Page 7 Town of Fountain Hills, Arizona  Notes to Annual Expenditure Limitation Report  Year Ended June 30, 2024      The following presents the calculation of the restated exclusion claimed for HURF:      Fiscal Year    2021  2022  2023  HURF Fund Intergovernmental Revenue  $  2,584,538 $ 2,681,119 $ 2,606,929   Less: vehicle license tax revenues  (837,338) (826,070) (827,570)  Excludable revenue  1,747,200 1,855,049 $ 1,779,359       Carryforward HURF monies beginning of year  $ 1,216,974 $    738,315 $ 2,593,364   HURF Fund expenditures  4,356,971 3,207,526 5,014,025  Less: expenditures of vehicle license tax  (837,338) (826,070) (827,570)  Less: expenditures of non‐excludable revenue  (1,098,118) (1,249,597) (1,439,263)  Less: expenditures of investment earnings  (734)  Less: amounts transferred from the Capital Projects Fund  (200,000)  Plus: amounts transferred to the Capital Projects Fund  5,078   Less: expenditures of non‐excludable fund balance  (86,260) (893,304)  Less: amounts transferred from the General Fund  (1,045,599) (1,853,888)  HURF eligible expenditures in current year  2,225,859   Less: current year HURF monies utilized  (1,747,200)  Less: prior year HURF monies utilized  (478,659)  Carryforward HURF monies end of year  $     738,315 $ 2,593,364 $4,372,723     Page 8 Independent Accountant’s Report  Honorable Mayor and Members of the Town Council  Town of Fountain Hills, Arizona  We have examined the Town of Fountain Hills, Arizona’s (Town) compliance as to whether highway  user revenue fund monies received by the Town pursuant to Arizona Revised Statutes Title 28,  Chapter 18, Article 2, and any other dedicated state transportation revenues received by the Town,  were used solely for authorized transportation purposes during the fiscal year ended June 30, 2024.  Management is responsible for the Town’s compliance with those specified requirements. Our  responsibility is to express an opinion on the Town’s compliance with the specified requirements  based on our examination.  Our examination was conducted in accordance with attestation standards established by the AICPA.  Those standards require that we plan and perform the examination to obtain reasonable assurance  about whether the Town complied, in all material respects, with the specified requirements  referenced above. An examination involves performing procedures to obtain evidence about  whether the Town complied with the specified requirements. The nature, timing, and extent of the  procedures selected depend on our judgment, including an assessment of the risks of material  noncompliance, whether due to fraud or error. We believe the evidence we obtained is sufficient and  appropriate to provide a reasonable basis for our opinion.   We are required to be independent and to meet our other ethical responsibilities in accordance with  relevant ethical requirements relating to the engagement.  Our examination does not provide a legal determination on the Town’s compliance with specified  requirements.  In our opinion, the Town of Fountain Hills, Arizona complied, in all material respects, with the  aforementioned requirements for the fiscal year ended June 30, 2024.  Heinfeld, Meech & Co., P.C.  Scottsdale, Arizona  October 31, 2024  Page 1  October 31, 2024  To the Honorable Mayor and Town Council  Town of Fountain Hills, Arizona  We have audited the financial statements of the governmental activities, each major fund, and the  aggregate remaining fund information of Town of Fountain Hills, Arizona (Town) for the year ended  June 30, 2024. Professional standards require that we provide you with information about our  responsibilities under generally accepted auditing standards, Government Auditing Standards, and  the Uniform Guidance, as well as certain information related to the planned scope and timing of our  audit. We have communicated such information in our engagement letter provided to you during the  planning phase of the audit.  Professional standards also require that we communicate to you the  following matters related to our audit.  Qualitative Aspects of Accounting Practices  Management is responsible for the selection and use of appropriate accounting policies. The  significant accounting policies used by Town of Fountain Hills, Arizona, are described in Note 1 to the  financial statements. No new accounting policies were adopted and the application of existing  policies was not changed during the year. We noted no transactions entered into by the Town during  the year for which there is a lack of authoritative guidance or consensus. All significant transactions  have been recognized in the financial statements in the proper period.   Accounting estimates are an integral part of the financial statements prepared by management and  are based on management’s knowledge and experience about past and current events and  assumptions about future events. Certain accounting estimates are particularly sensitive because of  their significance to the financial statements and because of the possibility that future events  affecting them may differ significantly from those expected.  The most sensitive estimates affecting the financial statements were:  Management’s estimate of the useful lives of depreciable capital assets is based on the length of time management estimates those assets will provide some economic benefit in the future. The financial statement disclosures are neutral, consistent, and clear.  Page 2  Difficulties Encountered in Performing the Audit  We encountered no significant difficulties in dealing with management in performing and completing  our audit.   Uncorrected Misstatements   Professional standards require us to accumulate all known and likely misstatements identified during  the audit and communicate them to the appropriate level of management. A misstatement is defined  as a difference between the reported amount, classification, presentation, or disclosure of a financial  statement item and the amount, classification, presentation, or disclosure that is required for the  item to be presented fairly in accordance with the applicable financial reporting framework. During  the course of the audit we did not identify any uncorrected misstatements which require  communication.   In addition, as part of the professional services we provided to the Town, we assisted with the  preparation of the financial statements, and the notes to financial statements. In providing these  services we prepared adjusting journal entries necessary to convert the accounting records to the  basis of accounting required by generally accepted accounting principles. Those adjusting journal  entries have been provided to management who reviewed and approved those entries and accepted  responsibility for them.    Disagreements with Management  For purposes of this letter, a disagreement with management is a financial accounting, reporting, or  auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial  statements or the auditor’s report. We are pleased to report that no such disagreements arose during  the course of our audit.  Management Representations  We have requested certain written representations from management, which are included in the  management representation letter provided to us at the conclusion of the audit.  Management Consultations with Other Independent Accountants  In some cases, management may decide to consult with other accountants about auditing and  accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation  involves application of an accounting principle to the Town’s financial statements or a determination  of the type of auditor’s opinion that may be expressed on those statements, our professional  standards require the consulting accountant to check with us to determine that the consultant has  all the relevant facts.  To our knowledge, there were no such consultations with other accountants  regarding auditing and accounting matters.  Discussions with Management  We generally discuss a variety of matters, including the application of accounting principles and  auditing standards, with management throughout the course of the year. However, these discussions  occurred in the normal course of our professional relationship and our responses were not a  condition to our retention as the Town’s auditors.  Page 3  Compliance with Ethics Requirements Regarding Independence  The engagement team, others in our firm, and as appropriate, our firm, have complied with all  relevant ethical requirements regarding independence.  Heinfeld, Meech & Co., P.C. continually  assesses client relationships to comply with relevant ethical requirements, including independence,  integrity, and objectivity, and policies and procedures related to the acceptance and continuance of  client relationships and specific engagements. Our firm follows the “Independence Rule” of the AICPA  Code of Professional Conduct and the rules of state boards of accountancy and applicable regulatory  agencies.  It is the policy of the firm that all employees be familiar with and adhere to the  independence, integrity, and objectivity rules, regulations, interpretations, and rulings of the AICPA,  U.S. Government Accountability Office (GAO), and applicable state boards of accountancy.  Responsibility for Fraud  It is important for both management and the members of the governing body to recognize their role  in preventing, deterring, and detecting fraud. One common misconception is that the auditors are  responsible for detecting fraud. Auditors are required to plan and perform an audit to obtain  reasonable assurance that the financial statements do not include material misstatements caused by  fraud. Unfortunately most frauds which occur in an organization do not meet this threshold.  The attached document prepared by the Association of Certified Fraud Examiners (ACFE) is provided  as a courtesy to test the effectiveness of the fraud prevention measures of your organization.  Some  of these steps may already be in place, others may not. Not even the most well‐designed internal  controls or procedures can prevent and detect all forms of fraud.  However, an awareness of fraud  related factors, as well as the active involvement by management and the members of the governing  body in setting the proper “tone at the top”, increases the likelihood that fraud will be prevented,  deterred and detected.    Additional Reports Issued  In addition to the auditor’s report on the financial statements we will also issue the following  documents related to this audit. These reports are typically issued within 60 days of the date of this  letter.   Examination report on the Annual Expenditure Limitation Report Report on compliance for the Highway User Revenue Fund Report on Internal Control over Financial Reporting and on Compliance Other Important Communications Related to the Audit  Attached to this letter are a copy of the signed engagement letter provided to us at the initiation of  the audit, and a copy of the management representation letter provided to us at the conclusion of  the audit. If there are any questions on the purpose or content of these letters please contact the  engagement partner identified in the attached engagement letter.  Page 4  Restriction on Use  This information is intended solely for the use of the members of the Town Council and management  of Town of Fountain Hills, Arizona and is not intended to be, and should not be, used by anyone other  than these specified parties.  Very truly yours,  Heinfeld, Meech & Co., P.C.  Scottsdale, Arizona    Fraud Prevention Checklist      The most cost‐effective way to limit fraud losses is to prevent fraud from occurring.  This checklist is  designed to help organizations test the effectiveness of their fraud prevention measures.    1. Is ongoing anti‐fraud training provided to all employees of the organization?   Do employees understand what constitutes fraud?   Have the costs of fraud to the company and everyone in it — including lost profits, adverse  publicity, job loss and decreased morale and productivity — been made clear to employees?   Do employees know where to seek advice when faced with uncertain ethical decisions, and  do they believe that they can speak freely?   Has a policy of zero‐tolerance for fraud been communicated to employees through words  and actions?    2. Is an effective fraud reporting mechanism in place?   Have employees been taught how to communicate concerns about known or potential  wrongdoing?   Is there an anonymous reporting channel available to employees, such as a third‐party  hotline?   Do employees trust that they can report suspicious activity anonymously and/or  confidentially and without fear of reprisal?   Has it been made clear to employees that reports of suspicious activity will be promptly and  thoroughly evaluated?   Do reporting policies and mechanisms extend to vendors, customers and other outside  parties?    3. To increase employees’ perception of detection, are the following proactive measures taken  and publicized to employees?   Is possible fraudulent conduct aggressively sought out, rather than dealt with passively?   Does the organization send the message that it actively seeks out fraudulent conduct  through fraud assessment questioning by auditors?   Are surprise fraud audits performed in addition to regularly scheduled audits?   Is continuous auditing software used to detect fraud and, if so, has the use of such software  been made known throughout the organization?         4. Is the management climate/tone at the top one of honesty and integrity?   Are employees surveyed to determine the extent to which they believe management acts  with honesty and integrity?   Are performance goals realistic?   Have fraud prevention goals been incorporated into the performance measures against  which managers are evaluated and which are used to determine performance‐related  compensation?   Has the organization established, implemented and tested a process for oversight of fraud  risks by the board of directors or others charged with governance (e.g., the audit  committee)?    5. Are fraud risk assessments performed to proactively identify and mitigate the company’s  vulnerabilities to internal and external fraud?    6. Are strong anti‐fraud controls in place and operating effectively, including the following?   Proper separation of duties   Use of authorizations   Physical safeguards   Job rotations   Mandatory vacations    7. Does the internal audit department, if one exists, have adequate resources and authority to  operate effectively and without undue influence from senior management?    8. Does the hiring policy include the following (where permitted by law)?   Past employment verification   Criminal and civil background checks   Credit checks   Drug screening   Education verification   References check    9. Are employee support programs in place to assist employees struggling with addictions,  mental/ emotional health, family or financial problems?    10. Is an open‐door policy in place that allows employees to speak freely about pressures,  providing management the opportunity to alleviate such pressures before they become  acute?    11. Are anonymous surveys conducted to assess employee morale?  Page 1  May 22, 2024  Honorable Mayor, Members of the Town Council, and Management  Town of Fountain Hills  16705 E. Avenue of the Fountains  Fountain Hills, AZ  85268  We are pleased to confirm our understanding of the services we are to provide for Town of Fountain  Hills, Arizona (Town) for the year ended June 30, 2024. We encourage you to read this letter carefully as  it includes important information regarding the services we will be providing to the Town. If there are  any questions on the content of the letter, or the services we will be providing, we would welcome the  opportunity to meet with you to discuss this information further.  Audit Scope and Objectives  We will audit the financial statements of the governmental activities, each major fund, and the aggregate  remaining fund information, including the disclosures, which collectively comprise the basic financial  statements of Town of Fountain Hills, Arizona as of and for the year ended June 30, 2024.   We have also been engaged to report on supplementary information that accompanies the Town’s  financial statements. We will subject the following supplementary information to the auditing  procedures applied in our audit of the financial statements and certain additional procedures, including  comparing and reconciling such information directly to the underlying accounting and other records  used to prepare the financial statements or to the financial statements themselves, and other additional  procedures in accordance with auditing standards generally accepted in the United States of America,  and we will provide an opinion on it in relation to the financial statements as a whole:  1. Schedule of expenditures of federal awards 2. Combining and individual fund financial statements and schedules Accounting standards generally accepted in the United States provide for certain required  supplementary information (RSI) to supplement the Town’s basic financial statements. Such  information, although not part of the basic financial statements, is required by the Governmental  Accounting Standards Board who considers it to be an essential part of financial reporting for placing  the basic financial statements in an appropriate operational, economic, or historical context. As part of  our engagement, we will apply certain limited procedures to the Town’s RSI in accordance with auditing  standards generally accepted in the United States of America. These limited procedures will consist of  inquiries of management regarding the methods of preparing the information and comparing the  information for consistency with management’s responses to our inquiries, the basic financial  statements, and other knowledge we obtained during our audit of the basic financial statements. We  will not express an opinion or provide any assurance on the information because the limited procedures  do not provide us with sufficient evidence to express an opinion or provide any assurance.  Page 2    The following RSI is required by generally accepted accounting principles and will be subjected to certain  limited procedures, but will not be audited:    1. Management’s discussion and analysis  2. Budgetary comparison schedules    In connection with our audit of the basic financial statements, we will read the following other  information and consider whether a material inconsistency exists between the other information and  the basic financial statements, or the other information otherwise appears to be materially misstated.  If, based on the work performed, we conclude that an uncorrected material misstatement of the other  information exists, we are required to describe it in our report.    1. Other information included with the audited financial statements such as the transmittal letter  and statistical data    In addition, we will perform the necessary procedures to issue the applicable report for the following.    1. Examination report on the Annual Expenditure Limitation Report  2. Examination report on compliance for highway user revenue fund monies in accordance with  ARS §9‐481(B)(2)    The objectives of our audit are to obtain reasonable assurance about whether the financial statements  as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor’s  report that includes our opinions about whether your financial statements are fairly presented, in all  material respects, in conformity with accounting principles generally accepted in the United States of  America. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore  is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in  the United States of America and Government Auditing Standards will always detect a material  misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are  considered material if there is a substantial likelihood that, individually or in the aggregate, they would  influence the judgment of a reasonable user made based on the financial statements. The objectives  also include reporting on:     Internal control over financial reporting and compliance with provisions of laws, regulations,  contracts, and award agreements, noncompliance with which could have a material effect on  the financial statements in accordance with Government Auditing Standards.     Internal control over compliance related to major programs and an opinion (or disclaimer of  opinion) on compliance with federal statutes, regulations, and the terms and conditions of  federal awards that could have a direct and material effect on each major program in accordance  with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR)  Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for  Federal Awards (Uniform Guidance).    An important aspect to our expression of opinions on the financial statements is understanding the  concept of materiality. Our determination of materiality is a matter of professional judgment and is  affected by our perception of the financial information needs of users of the financial statements.  Page 3    For purposes of determining materiality we may assume that reasonable users –     1. have a reasonable knowledge of business and economic activities and accounting and a  willingness to study the information in the financial statements with reasonable diligence;   2. understand that financial statements are prepared, presented, and audited to levels of  materiality;   3. recognize the uncertainties inherent in the measurement of amounts based on the use of  estimates, judgment, and the consideration of future events; and   4. make reasonable judgements based on the information in the financial statements.     Auditor’s Responsibilities for the Audit of the Financial Statements and Single Audit    We will conduct our audit in accordance with auditing standards generally accepted in the United States  of America; the standards for financial audits contained in Government Auditing Standards, issued by  the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the  provisions of the Uniform Guidance, and will include tests of accounting records, a determination of  major programs in accordance with Uniform Guidance, and other procedures we consider necessary to  enable us to express such opinions. As part of an audit in accordance with auditing standards generally  accepted in the United States of America and Government Auditing Standards, we exercise professional  judgment and maintain professional skepticism throughout the audit.     We will evaluate the appropriateness of accounting policies used and the reasonableness of significant  accounting estimates made by management. We will also evaluate the overall presentation of the  financial statements, including the disclosures, and determine whether the financial statements  represent the underlying transactions and events in a manner that achieves fair presentation. We will  plan and perform the audit to obtain reasonable assurance about whether the financial statements are  free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3)  misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to  the Town or to acts by management or employees acting on behalf of the Town. Because the  determination of abuse is subjective, Government Auditing Standards do not expect auditors to perform  specific procedures to detect waste or abuse in the financial statements nor do they expect auditors to  provide reasonable assurance of detecting waste or abuse.    Because of the inherent limitations of an audit, combined with the inherent limitations of internal  control, and because we will not perform a detailed examination of all transactions, there is an  unavoidable risk that some material misstatements may not be detected by us, even though the audit is  properly planned and performed in accordance with auditing standards generally accepted in the United  States of America and Government Auditing Standards. In addition, an audit is not designed to detect  immaterial misstatements or violations of laws or governmental regulations that do not have a direct  and material effect on the financial statements or major programs. However, we will inform the  appropriate level of management of any material errors, fraudulent financial reporting, or  misappropriation of assets that comes to our attention. We will also inform the appropriate level of  management of any violations of laws or governmental regulations that come to our attention, unless  clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our  responsibility as auditors is limited to the period covered by our audit and does not extend to any later  periods for which we are not engaged as auditors.    Page 4    We will also conclude, based on the audit evidence obtained, whether there are conditions or events,  considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going  concern for a reasonable period of time.    Our procedures will include tests of documentary evidence supporting the transactions recorded in the  accounts. Our procedures will also include, as deemed necessary, tests of the physical existence of  inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence  with selected individuals, funding sources, creditors, and financial institutions. We will also request, if  deemed necessary, written representations from the Town’s attorneys as part of the engagement, and  they may bill you for responding to this inquiry.     Audit Procedures – Internal Control    We will obtain an understanding of the Town and its environment, including internal control relevant to  the audit, sufficient to identify and assess the risks of material misstatement of the financial statements,  whether due to error or fraud, and to design and perform audit procedures responsive to those risks  and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not  detecting a material misstatement resulting from fraud is higher than for one resulting from error, as  fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of  internal control. Tests of controls may be performed to test the effectiveness of certain controls that we  consider relevant to preventing and detecting errors and fraud that are material to the financial  statements and to preventing and detecting misstatements resulting from illegal acts and other  noncompliance matters that have a direct and material effect on the financial statements. Our tests, if  performed, will be less in scope than would be necessary to render an opinion on internal control and,  accordingly, no opinion will be expressed in our report on internal control issued pursuant to  Government Auditing Standards.    As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the  effectiveness of the design and operation of controls that we consider relevant to preventing or  detecting material noncompliance with compliance requirements applicable to each major federal  award program. However, our tests will be less in scope than would be necessary to render an opinion  on those controls and, accordingly, no opinion will be expressed in our report on internal control issued  pursuant to the Uniform Guidance.    An audit is not designed to provide assurance on internal control or to identify significant deficiencies or  material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will  communicate to management and those charged with governance internal control related matters that  are required to be communicated under AICPA professional standards, Government Auditing Standards,  and the Uniform Guidance.    Audit Procedures – Compliance    As part of obtaining reasonable assurance about whether the financial statements are free of material  misstatement, we will perform tests of the Town’s compliance with applicable laws, regulations,  contracts, and agreements, including grant agreements. However, the objective of those procedures will  not be to provide an opinion on overall compliance and we will not express such an opinion in our report  on compliance issued pursuant to Government Auditing Standards.  Page 5    The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance  about whether the Town has complied with federal statutes, regulations and the terms and conditions  of federal awards applicable to major programs. Our procedures will consist of tests of transactions and  other applicable procedures described in the OMB Compliance Supplement for the types of compliance  requirements that could have a direct and material effect on each of the Town’s major programs. For  federal programs that are included in the OMB Compliance Supplement, our compliance and internal  control procedures will relate to the compliance requirements that the OMB Compliance Supplement  identifies being subject to audit. The purpose of these procedures will be to express an opinion on the  Town’s compliance with requirements applicable to each of its major programs in our report on  compliance issued pursuant to the Uniform Guidance.    Reporting    We will issue written reports upon completion of our Single Audit. Our reports will be addressed to the  Governing Board of the Town. Circumstances may arise in which our reports may differ from expected  form and content based on the results of our audit. Depending on the nature of these circumstances, it  may be necessary for us to modify our opinions, add a separate section, or add an emphasis‐of‐matter  or other‐matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If  our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any  reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may  decline to express opinions or issue reports, or we may withdraw from this engagement.    The Government Auditing Standards report on internal control over financial reporting and on  compliance and other matters will state that (1) the purpose of the report is solely to describe the scope  of testing of internal control and compliance and the results of that testing, and not to provide an opinion  on the effectiveness of the Town’s internal control or on compliance, and (2) the report is an integral  part of an audit performed in accordance with Government Auditing Standards in considering the Town’s  internal control and compliance. The Uniform Guidance report on internal control over compliance will  state that the purpose of the report on internal control over compliance is solely to describe the scope  of testing of internal control over compliance and the results of that testing based on the requirements  of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.    Nonaudit Services    As part of the audit, we will assist with preparation of your financial statements, notes to the financial  statements, and supplementary information, including the schedule of expenditures of federal awards.   In addition, we will assist with the completion of the auditee section of the data collection form to be  submitted to the Federal Audit Clearinghouse. You have expressed your intention to use these nonaudit  services within the scope of your request for proposal for audit services. These nonaudit services do not  constitute an audit and such services will not be conducted in accordance with Government Auditing  Standards. Upon engagement of the audit we will utilize the general ledger, accounting records, Town  prepared schedules and other information provided by Town personnel in order to prepare the  necessary year‐end adjusting journal entries and to prepare drafts of the financial statements, notes to  the financial statements, and the supplementary information.  Page 6    You are responsible for the information provided by the Town and for assuming all management  responsibilities related to the financial statements, notes to the financial statements, supplementary  information, data collection form, and the nonaudit services we provide. You are also responsible for  designing, implementing, and maintaining internal controls over the financial statements process. Prior  to the issuance of the financial statements you will be required to acknowledge in the management  representation letter our assistance with the preparation of the financial statements, the schedule of  expenditures of federal awards, and related notes to the financial statements, and acknowledge you  have accepted responsibility for them. Further, you are required to designate an individual with suitable  skill, knowledge, or experience to oversee the nonaudit services we provide; evaluate the adequacy and  results of these nonaudit services; and accept responsibility for the nonaudit services.     As the Town’s independent auditor, professional standards place specific requirements on our provision  of certain nonaudit services. We are strictly prohibited from assuming management responsibilities or  making management decisions; therefore, the nonaudit services we provide are limited to those  indicated above. We, in our sole professional judgment, reserve the right to refuse to perform any  procedure or take any action that could be construed as assuming management responsibilities or  making management decisions. Accordingly, to maintain our independence it is imperative that  management understand its responsibilities and is capable of fulfilling these responsibilities. If there are  any questions or concerns regarding management’s responsibilities or ability to fulfill these  responsibilities we request that you immediately contact us so that we may assess the circumstance and  our continued independence with respect to providing audit services.    Responsibilities of Management for the Financial Statements and Single Audit    Our audit will be conducted on the basis that you acknowledge and understand your responsibility for  (1) designing, implementing, establishing and maintaining effective internal controls relevant to the  preparation and fair presentation of financial statements that are free from material misstatement,  whether due to fraud or error, including internal controls over federal awards, and for evaluating and  monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following  laws and regulations; (3) ensuring that there is reasonable assurance that government programs are  administered in compliance with compliance requirements; and (4) ensuring that management is  reliable and financial information is reliable and properly reported. Management is also responsible for  implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and  grant agreements. You are also responsible for the selection and application of accounting principles;  for the preparation and fair presentation of the financial statements, schedule of expenditures of federal  awards, and all accompanying information in conformity with accounting principles generally accepted  in the United States of America; and for compliance with applicable laws and regulations (including  federal statutes) and the provisions of contracts and grant agreements (including award agreements).  Your responsibilities also include identifying significant contractor relationships in which the contractor  has responsibility for program compliance and for the accuracy and completeness of that information.  Page 7    Management is also responsible for making schedule of expenditures of federal awards, all financial  records, and related information available to us; for the accuracy and completeness of that information  (including information from outside of the general and subsidiary ledgers); and for the evaluation of  whether there are any conditions or events, considered in the aggregate, that raise substantial doubt  about the Town’s ability to continue as a going concern for the 12 months after the financial statement  date or shortly thereafter (for example, within an additional three months if currently known). You are  also responsible for providing us with (1) access to all information of which you are aware that is relevant  to the preparation and fair presentation of the financial statements, such as records, documentation,  identification of all related parties and all related‐party relationships and transactions, and other  matters; (2) access to personnel, accounts, books, records, supporting documentation, and other  information as needed to perform an audit under Uniform Guidance;  (3) additional information we may  request for the purpose of the audit; and (4) and unrestricted access to persons within the Town from  whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require  certain written representations from you about the financial statements; the schedule of expenditures  of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant  agreements; and related matters.    Management’s responsibilities also include adjusting the financial statements to correct material  misstatements and confirming to us in the representation letter that the effects of any uncorrected  misstatements aggregated by us during the current engagement and pertaining to the latest period  presented are immaterial, both individually and in the aggregate, to the financial statements of each  opinion unit taken as a whole.    Management is responsible for the design and implementation of programs to prevent and detect fraud,  and for informing us about all known or suspected fraud affecting the Town involving (1) management,  (2) employees who have significant roles in internal control, and (3) others where the fraud could have  a material effect on the financial statements. Your responsibilities include informing us of your  knowledge of any allegations of fraud or suspected fraud affecting the Town received in communications  from employees, former employees, grantors, regulators, or others. In addition, you are responsible for  identifying and ensuring that the Town complies with applicable laws, regulations, contracts,  agreements, and grants. You are also responsible taking timely and appropriate steps to remedy fraud  and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report.  Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and  monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal  awards; take prompt action when instances of noncompliance are identified including noncompliance  identified in audit findings; promptly follow up and take corrective action on reported audit findings;  and prepare a summary schedule of prior audit findings and a separate corrective action plan. The  summary schedule of prior audit findings should be available for our review prior to issuance of our  reports. Management is responsible for identifying all federal awards received and understanding and  complying with the compliance requirements and for preparation of the schedule of expenditures of  federal awards (including notes and noncash assistance received, and COVID‐19 related concepts, such  as lost revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report  on the schedule of expenditures of federal awards in any document that contains and indicates that we  have reported on the schedule of expenditures of federal awards. You also agree to include the audited  financial statements with any presentation of the schedule of expenditures of federal awards that  includes our report thereon or make the audited financial statements readily available to intended users  of the schedule of expenditures of federal awards no later than the date the schedule of expenditures  of federal awards is issued with our report thereon.  Page 8    Your responsibilities include acknowledging to us in the written representation letter that (1) you are  responsible for presentation of the schedule of expenditures of federal awards in accordance with the  Uniform Guidance; (2) you believe the schedule of expenditures of federal awards, including its form  and content, is fairly presented in accordance with  the Uniform Guidance; (3) the methods of  measurement or presentation have not changed from those used in the prior period (or, if they have  changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or  interpretations underlying the measurement or presentation of the schedule of expenditures of federal  awards.    Management is responsible for the preparation of the other supplementary information, which we have  been engaged to report on, in conformity with accounting principles generally accepted in the United  States of America. You agree to include our report on the supplementary information in any document  that contains, and indicates that we have reported on, the supplementary information.  You also agree  to include the audited financial statements with any presentation of the supplementary information that  includes our report thereon or to make the audited financial statements readily available to users of the  supplementary information no later than the date the supplementary information is issued with our  report thereon. Your responsibilities include acknowledging to us in a written representation letter that  (1) you are responsible for presentation of supplementary information in accordance with accounting  principles generally accepted in the United States of America; (2) you believe the supplementary  information, including its form and content, is fairly presented in accordance with accounting principles  generally accepted in the United States of America; (3) the methods of measurement or presentation  have not changed from those used in the prior period (or, if they have changed, the reasons for such  changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the  measurement or presentation of supplementary information.     Management is responsible for establishing and maintaining a process for tracking the status of audit  findings and recommendations. Management is also responsible for identifying and providing report  copies of previous financial audits, attestation engagements, performance audits or studies related to  the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility  includes relaying to us corrective actions taken to address significant findings and recommendations  resulting from those audits, attestation engagements, performance audits, or studies. You are also  responsible for providing management’s views on our current findings, conclusions, and  recommendations, as well as your planned corrective actions for the report, and for the timing and  format for providing that information.     With regard to the electronic dissemination of audited financial statements, including financial  statements published electronically on your website, management understands that electronic sites are  a means to distribute information and, therefore, we are not required to read the information contained  in these sites or to consider the consistency of other information in the electronic site with the original  document.  Page 9    Planned Scope and Timing of the Audit    An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the  financial statements; therefore, our audit will involve judgment about the number of transactions to be  examined and the areas to be tested. Our tests will not include a detailed check of all transactions for  the period.    We have identified the following significant risks of material misstatement as part of our audit planning:    1. Management override of controls  2. Improper revenue recognition    Our audit will include obtaining an understanding of the Town and its environment, including internal  control, sufficient to assess the risks of material misstatement of the financial statements and to design  the nature, timing, and extent of further audit procedures. Material misstatements may result from (1)  errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or  governmental regulations that are attributable to the Town or to acts by management or employees  acting on behalf of the Town. We will generally communicate our significant findings at the conclusion  of the audit. However, some matters could be communicated sooner, particularly if significant  difficulties are encountered during the audit where assistance is needed to overcome the difficulties or  if the difficulties may lead to a modified opinion. We will also communicate any internal control related  matters that are required to be communicated under professional standards.     We expect to begin our audit in May 2024 and conclude audit procedures and date our report in  November 2024.    Our audit of the financial statements does not relieve you of your responsibilities outlined in the  Responsibilities of Management for the Financial Statements section of this letter.    Use of Third‐Party Service Providers    We maintain internal policies, procedures, and safeguards to protect the confidentiality of your  information. We may, depending on the circumstances, use third‐party service providers in providing  our professional services. The following service providers may be utilized in the completion of our  engagement:     Capital Confirmation, Inc. – electronic bank and account balance confirmation service   Citrix ShareFile – web‐based application service to transfer files   CCH Engagement Organizer –  web‐based application service to transfer files   Harvest Investments, Ltd. – investment portfolio valuation service    You hereby consent and authorize us to use the above service providers, if deemed necessary, to  complete the professional services outlined in this letter.  Page 10    Engagement Administration, Fees, and Other    Joshua Jumper is the engagement partner and is responsible for supervising the engagement and signing  the reports or authorizing another individual to sign them.    We will provide copies of our reports to the Town; however, management is responsible for distribution  of the reports and the financial statements.    At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection  Form that summarizes our audit findings. It is management’s responsibility to electronically submit the  reporting package (including financial statements, schedule of expenditures of federal awards, summary  schedule of prior audit findings, auditor’s reports, and corrective action plan) along with the Data  Collection Form to the Federal Audit Clearinghouse. We will coordinate with you the electronic  submission and certification. The Data Collection Form and the reporting package must be submitted  within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end  of the audit period.    The audit documentation for this engagement is the property of Heinfeld, Meech & Co., P.C., and  constitutes confidential information. However, we may be requested to make certain audit  documentation available to a cognizant or oversight agency or its designee, a federal agency providing  direct or indirect funding, the U.S. Government Accountability Office, or other authorized governmental  agency for the purposes of a quality review of the audit, to resolve audit findings, or to carry out  oversight responsibilities. We will notify you of any such request. If requested, access to such audit  documentation will be provided under the supervision of Heinfeld, Meech & Co., P.C., personnel.  Furthermore, upon request, we may provide copies of selected audit documentation to the  aforementioned parties. These parties may intend, or decide, to distribute the copies or information  contained therein to others, including other governmental agencies.    The audit documentation for this engagement will be retained for a minimum of seven (7) years after  the report release date, or for any additional period requested by a regulator, cognizant agency,  oversight agency for audit, or pass‐through entity. Upon expiration of the seven year period, or any  additional period, we will commence the process of destroying the contents of our engagement files. If  we are aware that a federal awarding agency, pass‐through entity, or auditee is contesting an audit  finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the  audit documentation.    In the event we are required to respond to a subpoena, court order or other legal process for the  production of documents and/or testimony relative to information we obtained and/or prepared during  the course of this engagement, you agree to compensate us at our hourly rates, for the time we expend  in connection with such response, and to reimburse us for all of our out‐of‐pocket costs incurred in that  regard.    Any disagreement, controversy, or claim (“dispute”) that may arise from any aspect of our services,  including this engagement or any prior engagement, will be submitted to mediation. The parties will  engage in the mediation process in good faith once a written request to mediate has been given by any  party. Any mediation initiated as a result of this engagement shall be administered by The American  Arbitration Association, according to its mediation rules before resorting to litigation. The results of any  such mediation shall be binding only upon agreement of each party to be bound. Each party will bear its  own costs in the mediation. The fees and expenses of the mediator will be shared equally.  Page 11    The nature of our services makes it difficult, with the passage of time, to gather and present evidence  that fully and fairly establishes the facts underlying any dispute that may arise between us. The parties  agree that, notwithstanding any statute or law of limitations that might otherwise apply to a dispute,  including one arising out of this agreement or the services performed under this agreement, for breach  of contract or fiduciary duty, tort, fraud, misrepresentation or any other cause of action or remedy, any  action or legal proceeding by you against us must be commenced within twenty‐four (24) months  (“limitation period”) after the date when we deliver our final audit report under this agreement to you,  regardless of whether we do other services for you relating to the audit report, or you shall be forever  barred from commencing a lawsuit or obtaining any legal or equitable relief or recovery. The limitation  period applies and begins to run even if you have not suffered any damage or loss, or have not become  aware of the existence or possible existence of a dispute.    Professional standards prohibit auditors from agreeing to indemnify attest clients for damages, losses  or costs arising from lawsuits, claims or settlements that relate, directly or indirectly, to the client’s acts.  As such, professional standards will prevail for indemnification clauses included in audit contracts. In  addition, we are unable to obtain waivers on our professional liability insurance policy for certain  provisions, including indemnification provisions, provisions requiring the firm to name the Town as an  additional insured party, and a waiver of subrogation rights.    Professional standards require us to be independent with respect to you in the performance of these  services. Any discussion that you have with our personnel regarding potential employment with you  could impair our independence with respect to this engagement. Therefore, we request that you inform  us prior to any such discussions so that we can implement appropriate safeguards to maintain our  independence and objectivity. Further, any employment offers to any staff members working on this  engagement without our prior knowledge may require substantial additional procedures to ensure our  independence. You will be responsible for any additional costs incurred to perform these procedures.    Our fee for these services will be at the amount outlined in our proposal. We exercised care in estimating  the fee and believe it accurately indicates the scope of the work. Our invoices for these fees will be  rendered each month as work progresses and are payable on presentation.    Our fees are based on anticipated cooperation from your personnel, timely receipt of information, and  the assumption that unexpected circumstances will not be encountered during the audit, including  factors beyond our control, such as new accounting pronouncements or legal requirements, additional  consultation, and assistance in correcting errors in your financial records. We will plan the engagement  based on the assumption that your personnel will prepare and provide us with the items listed in our  request for audit information, including preparing requested schedules, retrieving supporting  documents, and preparing confirmations. If, for whatever reason, your personnel are unavailable to  provide the necessary assistance in a timely manner, it may substantially increase the work we have to  do to complete the engagement within the established deadlines, resulting in an increase in fees over  our original fee estimate. If significant additional time is necessary, we will discuss it with you and arrive  at a new fee estimate before we incur the additional costs. Additional fees incurred will be billed at the  following hourly rates: Partner ‐ $286; Manager ‐ $212; Senior ‐ $164; Staff ‐ $116.    If any term or provision of this agreement is determined to be invalid or unenforceable, such term or  provision will be deemed stricken, and all other terms and provisions will remain in full force and effect.  Page 12    Government Auditing Standards require that we provide you with a copy of our most recent external  peer review report and any letter of comment, and any subsequent peer review reports and letters of  comment received during the period of the contract. Our 2021 peer review report accompanies this  letter.    We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the  significant terms of our engagement.  Please feel free to contact us at any time if you have any questions  or concerns. If you have any questions regarding this letter, please let us know. If you agree with the  terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.    Very truly yours,          Heinfeld, Meech & Co., P.C.  Scottsdale, Arizona    cc: Paul Soldinger, Chief Financial Officer    RESPONSE    Please indicate the name of the individual responsible for overseeing the nonaudit services of preparing  the year‐end adjusting journal entries and the preparation of the financial statements:      Name:  __________________________________________________      This letter correctly sets forth the understanding of Town of Fountain Hills, Arizona.      Printed Name:  ____________________________________________      Title:  ___________________________________________________      Signature:  _______________________________________________      Date:  ___________________________________________________  Paul Soldinger Paul Soldinger Chief Financial 05/22/2024 Grant Bennett Associates A PROFESSIONAL CORPORATION www.gbacpa.com 10850 Gold Center Drive, Suite 260 1970 Broadway, Suite 260 Rancho Cordova, CA 95670 Oakland, CA 94612 Princeville, HI 916/922-5109 FAX 916/641-5200 510/817-4886 888/763-7323 Together as One. Grant Bennett Associates is a Member of the Alliott Global Alliance of independent professional firms. Report on the Firm’s System of Quality Control August 31, 2021 To Heinfeld, Meech & Co., P.C. and the Peer Review Committee of the California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Heinfeld, Meech & Co., P.C. (the firm) in effect for the year ended May 31, 2021. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm’s Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer’s Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm’s compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act and an audit of an employee benefit plan. As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the accounting and auditing practice of Heinfeld, Meech & Co., P.C. in effect for the year ended May 31, 2021, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Heinfeld, Meech & Co., P.C. has received a peer review rating of pass. GRANT BENNETT ASSOCIATES A PROFESSIONAL CORPORATION Certified Public Accountants TRANSACTION DETAILS DOCUMENT DETAILS Reference Number C05668BF-8A7F-4D33-B849-97B720DB6CEC Transaction Type Signature Request Sent At 05/22/2024 17:13 EDT Executed At 05/22/2024 20:41 EDT Identity Method email Distribution Method email Signed Checksum a52c8e91197ed2113e7f20739c7679c0cc35859b9f6372db1bdb4541f4af930b Signer Sequencing Disabled Document Passcode Disabled Document Name Engagement Ltr FY24 Fountain Hills Town Filename Engagement_Ltr_FY24_Fountain_Hills_Town.pdf Pages 13 pages Content Type application/pdf File Size 428 KB Original Checksum 9e974d0da4ba08f72ad3e195707332ae26ea686aaf1fe9a3a5f9e2df8520a704 SIGNERS SIGNER E-SIGNATURE EVENTS Name Paul Soldinger Email psoldinger@fountainhillsaz.gov Components 5 Status signed Multi-factor Digital Fingerprint Checksum a8cb76eee916f23432a0dda1c9bf4d461ccb859577031bb922a5cb445fec7178 IP Address 184.178.192.162 Device Microsoft Edge via Windows Typed Signature Signature Reference ID 83FC609A Viewed At 05/22/2024 20:33 EDT Identity Authenticated At 05/22/2024 20:41 EDT Signed At 05/22/2024 20:41 EDT AUDITS TIMESTAMP AUDIT 05/22/2024 17:13 EDT Heidi Hibbard (heidi.hibbard@hm.cpa) created document 'Engagement_Ltr_FY24_Fountain_Hills_Town.pdf' onChrome via Windows from 162.199.237.60. 05/22/2024 17:13 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) was emailed a link to sign. 05/22/2024 20:33 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) viewed the document on Microsoft Edge via Windows from 184.178.192.162. 05/22/2024 20:41 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) authenticated via email on Microsoft Edge via Windows from184.178.192.162. 05/22/2024 20:41 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) signed the document on Microsoft Edge via Windows from184.178.192.162. SIGNATURE CERTIFICATE REFERENCE NUMBER C05668BF-8A7F-4D33-B849-97B720DB6CEC www.fh.az.gov     Heinfeld, Meech & Co., P.C.  1365 N. Scottsdale Road, Suite 300   Scottsdale, AZ  85257      This representation letter is provided in connection with your audit of the financial statements of  Town of Fountain Hills, Arizona (Town), which comprise the respective financial position of the  governmental activities, each major fund, and the aggregate remaining fund information as of  June 30, 2024, and the respective changes in financial position and, where applicable, cash flows for  the period then ended, and the disclosures (collectively “the financial statements”, for the purpose  of expressing opinions as to whether the financial statements are presented fairly, in all material  respects, in accordance with accounting principles generally accepted in the United States of America  (U.S. GAAP).    Certain representations in this letter are described as being limited to matters that are material. Items  are considered material, regardless of size, if they involve an omission or misstatement of accounting  information that, in light of surrounding circumstances, makes it probable that the judgment of a  reasonable person relying on the information would be changed or influenced by the omission or  misstatement. An omission or misstatement that is monetarily small in amount could be considered  material as a result of qualitative factors.    We confirm, to the best of our knowledge and belief, as of the date of our signature, the following  representations made to you during your audit.    Financial Statements    1. We have fulfilled our responsibilities, as set out in the terms of the audit contract, including our  responsibility for the preparation and fair presentation of the financial statements in  accordance with U.S. GAAP and for preparation of the supplementary information in  accordance with the applicable criteria.    2. The financial statements referred to above are fairly presented in conformity with U.S. GAAP  and include all properly classified funds and other financial information of the primary  government and all component units required by generally accepted accounting principles to  be included in the financial reporting entity.    3. We acknowledge our responsibility for the design, implementation, and maintenance of  internal control relevant to the preparation and fair presentation of financial statements that  are free from material misstatement, whether due to fraud or error.  TOWN OF FOUNTAIN HILLS 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 480.816.5100 | Fax: 480.837.3145   Page 2 4. We acknowledge our responsibility for the design, implementation, and maintenance of  internal control to prevent and detect fraud.    5. The methods, significant assumptions, and data used in making accounting estimates and their  related disclosures are appropriate to achieve recognition, measurement, or disclosure that is  reasonable in accordance with U.S. GAAP.    6. Related party relationships and transactions, including revenues, expenditures/expenses,  loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or  payable to related parties have been appropriately accounted for and disclosed in accordance  with U.S. GAAP.    7. Adjustments or disclosures have been made for all events, including instances of  noncompliance, subsequent to the date of the financial statements that would require  adjustment to or disclosure in the financial statements.    8. The effects of all known actual or possible litigation, claims, and assessments have been  evaluated, and if necessary, have been accounted for and disclosed in accordance with U.S.  GAAP.     9. Guarantees, whether written or oral, under which the Town is contingently liable, if any, have  been properly recorded or disclosed.    Information Provided    10. We have provided you with:    a. Access to all information, of which we are aware, that is relevant to the preparation and  fair presentation of the financial statements, such as records (including information  obtained from outside of the general and subsidiary ledgers), documentation, and other  matters and all audit or relevant monitoring reports, if any, received from funding sources.    b. Additional information that you have requested from us for the purpose of the audit.    c. Unrestricted access to persons within the Town from whom you determined it necessary to  obtain audit evidence.    d. Minutes of the meetings of the Town Council or summaries of actions of recent meetings  for which minutes have not yet been prepared.    11. All material transactions have been recorded in the accounting records and are reflected in the  financial statements.    12. We have disclosed to you the results of our assessment of the risk that the financial statements  may be materially misstated as a result of fraud.    Page 3 13. We have no knowledge of any fraud or suspected fraud that affects the Town and involves:   Management,   Employees who have significant roles in internal control, or   Others where the fraud could have a material effect on the financial statements.    14. We have no knowledge of any allegations of fraud or suspected fraud affecting the Town’s  financial statements communicated by employees, former employees, grantors, regulators, or  others.    15. We have no knowledge of any instances of noncompliance or suspected noncompliance with  provisions of laws, regulations, contracts, or grant agreements, or waste or abuse, whose  effects should be considered when preparing financial statements.     16. We have disclosed to you all known actual or possible litigation, claims, and assessments whose  effects should be considered when preparing the financial statements.     17. We have disclosed to you the identity of the Town’s related parties and all the related party  relationships and transactions, including any side agreements.    Government‐specific    18. There have been no communications from regulatory agencies concerning noncompliance with,  or deficiencies in, financial reporting practices.     19. If applicable, we have taken timely and appropriate steps to remedy fraud, noncompliance with  provisions of laws, regulations, contracts, and grant agreements that you have reported to us.    20. We have a process to track the status of audit findings and recommendations.    21. We have identified and communicated to you any previous audits, attestation engagements,  and other studies related to the audit objectives and whether related recommendations have  been implemented.    22. We have identified to you any investigations or legal proceedings that have been initiated with  respect to the period under audit.    23. If applicable, we have provided our views on reported findings, conclusions, and  recommendations, as well as our planned corrective actions, for the report.     24. The Town has no plans or intentions that may materially affect the carrying value or  classification of assets, liabilities, deferred outflows/inflows of resources, and fund balance or  net position.    25. We are responsible for compliance with the laws, regulations, and provisions of contracts and  grant agreements applicable to us, including tax or debt limits and debt contracts, and legal and  contractual provisions for reporting specific activities in separate funds.    Page 4 26. With respect to your compliance examination of highway user revenue fund monies and other  dedicated state transportation revenues, we represent the following:   we are responsible for compliance with A.R.S. Title 28, Chapter 18, Article 2; and for  establishing and maintaining effective internal controls to ensure compliance.   we have disclosed to you all known noncompliance with the aforementioned statutes  and related requirements.   we have disclosed to you all communications from regulatory agencies, internal auditors,  other independent accountants or consultants, and others regarding possible  noncompliance with the aforementioned statutes and related requirements.    27. We have identified and disclosed to you all instances of identified fraud and suspected fraud  that we believe have a material effect on the financial statements or other financial data  significant to the audit objectives, and any other instances that warrant the attention of those  charged with governance.    28. We have identified and disclosed to you all instances of identified noncompliance with  provisions of contracts and grant agreements that we believe have a material effect on the  determination of financial statement amounts or other financial data significant to the audit  objectives, and any other instances that warrant the attention of those charged with  governance.    29. We have identified and disclosed to you all instances of identified abuse that could be  quantitatively or qualitatively material to the financial statements or other financial data  significant to the audit objectives.    30. There are no violations or possible violations of budget ordinances, laws and regulations  (including those pertaining to adopting, approving, and amending budgets), provisions of  contracts and grant agreements, tax or debt limits, and any related debt covenants whose  effects should be considered for disclosure in the financial statements, or as a basis for  recording a loss contingency, or for reporting on noncompliance.    31. We understand that in addition to your audit, you prepared the adjusting journal entries  necessary to convert our accounting records to the basis of accounting required by generally  accepted accounting principles. We acknowledge that we have reviewed and approved those  entries and accepted responsibility for the adjusting journal entries    32. In addition to your audit, you assisted with preparation of the financial statements and notes  to the financial statements. We acknowledge our responsibility as it relates to those nonaudit  services, including that      we assume all management responsibilities;    oversee the nonaudit services by designating an individual, preferably within senior  management, who possesses suitable skill, knowledge, or experience;    evaluate the adequacy and results of the nonaudit services performed;    and accept responsibility for the results of the nonaudit services.     33. We have reviewed, approved, and accepted responsibility for the financial statements and  notes to the financial statements.    Page 5   34. The Town has satisfactory title to all owned assets, and there are no liens or encumbrances on  such assets nor has any asset been pledged as collateral.    35. The Town has complied with all aspects of contractual agreements that would have a material  effect on the financial statements in the event of noncompliance.    36. We have followed all applicable laws and regulations in adopting, approving, and amending  budgets.    37. If applicable, the financial statements include all component units, appropriately present  majority equity interest in legally separate organizations and joint ventures with an equity  interest, and properly disclose all other joint ventures and other related organizations.    38. The financial statements include all fiduciary activities required by U.S. GAAP.    39. The financial statements properly classify all funds and activities in accordance with U.S. GAAP.    40. All funds that meet the quantitative criteria for presentation as a major fund are identified and  presented as such and all other funds that are presented as a major fund are particularly  important to financial statement users.    41. Components of net position (net investment in capital assets; restricted; and unrestricted) and  components of fund balance (nonspendable, restricted, committed, assigned, and unassigned)  are properly classified and, if applicable, approved.    42. Investments are properly valued.     43. With regard to investments and other instruments reported at fair value:   The underlying assumptions are reasonable and they appropriately reflect  management's intent and ability to carry out its stated courses of action.   The measurement methods and related assumptions used in determining fair value are  appropriate in the circumstances and have been consistently applied.   The disclosures related to fair values are complete, adequate, and in conformity with  U.S. GAAP.   There are no subsequent events that require adjustments to the fair value  measurements and disclosures included in the financial statements.    44. If applicable, provisions for uncollectible receivables have been properly identified and  recorded.    45. Expenses have been appropriately classified in or allocated to functions and programs in the  statement of activities, and allocations have been made on a reasonable basis.    46. Revenues are appropriately classified in the statement of activities within program revenues  and general revenues.       Page 6 47. Interfund, internal, and intra‐entity activity and balances have been appropriately classified and  reported.    48. Special and extraordinary items, if any, are appropriately classified and reported.    49. Deposits and investment securities are properly classified as to risk and are properly disclosed.    50. Capital assets, including infrastructure, are properly capitalized, reported, and, if applicable,  depreciated or amortized.      51. We have appropriately disclosed the Town’s policy regarding whether to first apply restricted  or unrestricted resources when an expense is incurred for purposes for which both restricted  and unrestricted net position is available and have determined that net position is properly  recognized under the policy.    52. We are following our established accounting policy regarding which resources (that is,  restricted, committed, assigned, or unassigned) are considered to be spent first for  expenditures for which more than one resource classification is available. That policy  determines the fund balance classifications for financial reporting purposes.    53. We have disclosed to you all significant estimates and material concentrations known to  management that are required to be disclosed. Significant estimates are estimates at the  balance sheet date that could change materially within the next year. Concentrations refer to  volumes of business, revenues, available sources of supply, or markets or geographic areas for  which events could occur that would significantly disrupt normal finances within the next year.    54. We acknowledge our responsibility for the required supplementary information (RSI).  The RSI  is measured and presented within prescribed guidelines and the methods of measurement and  presentation have not changed from those used in the prior period.  We have disclosed to you  any significant assumptions and interpretations underlying the measurement and presentation  of the RSI.    55. With respect to the supplementary information presented such as the combining and individual  fund financial statements and schedules.    a. We acknowledge our responsibility for presenting the supplementary information in  accordance with accounting principles generally accepted in the United States of America,  and we believe the supplementary information, including its form and content, is fairly  presented in accordance with accounting principles generally accepted in the United States  of America.  The methods of measurement and presentation of the supplementary  information have not changed from those used in the prior period, and we have disclosed  to you any significant assumptions or interpretations underlying the measurement and  presentation of the supplementary information.    b. If the supplementary information is not presented with the audited financial statements,  we will make the audited financial statements readily available to the intended users of the  supplementary information no later than the date we issue the supplementary information  and the auditor’s report thereon.    Page 7   56. We acknowledge our responsibility for the other information included in the financial  statements, such as the transmittal letter and statistical data. We believe the other information,  including its form and content, is fairly presented and is materially consistent with the basic  financial statements.           We have reviewed the drafts of the financial statements and related notes and believe the amounts  are properly presented based on the books and records of our Town. We hereby take responsibility  for the financial statements and authorize Heinfeld, Meech & Co., P.C. to issue the reports in final  form and to distribute to those parties as outlined in the contract.     We understand that at the conclusion of the audit, Heinfeld, Meech & Co., P.C. will submit to the  Town Council a communication to those charged with governance that will include a copy of this  representation letter and a copy of the engagement letter.        __________________________________  __________________________  Rachael Goodwin, Town Manager    Date  Town of Fountain Hills, Arizona        ___________________________________  ___________________________  Paul Soldinger, Chief Financial Officer    Date  Town of Fountain Hills, Arizona    10/30/2024 10/31/2024 TRANSACTION DETAILS DOCUMENT DETAILS Reference Number BF190F3A-BD96-46AF-913B-F4B7A5D0EF46 Transaction Type Signature Request Sent At 10/30/2024 18:04 EDT Executed At 10/31/2024 13:34 EDT Identity Method email Distribution Method email Signed Checksum 08059562d00cecfb6c9e8e02c383f964b6c7f1841ee26a7f0ef0e95a91a28148 Signer Sequencing Disabled Document Passcode Disabled Document Name GRL Fountain Hills Town 24 Filename GRL_Fountain_Hills_Town_24.pdf Pages 7 pages Content Type application/pdf File Size 232 KB Original Checksum e801b617839a0d27950155f845d4a73596a2d08855f0a39749cad264f5e41db2 SIGNERS SIGNER E-SIGNATURE EVENTS Name Rachael Goodwin Email rgoodwin@fountainhillsaz.gov Components 2 Status signed Multi-factor Digital Fingerprint Checksum fe2ea580780680b764feefcb97a00ebfd07ca8342693d8110dacb7679683fbe5 IP Address 184.178.192.162 Device Microsoft Edge via Windows Typed Signature Signature Reference ID D21D8650 Viewed At 10/31/2024 13:33 EDT Identity Authenticated At 10/31/2024 13:34 EDT Signed At 10/31/2024 13:34 EDT Name Paul Soldinger Email psoldinger@fountainhillsaz.gov Components 2 Status signed Multi-factor Digital Fingerprint Checksum abc7f725beb78cd09ae23a3af54398f03c57a3578a492f4f5b3cb5fe3feeb064 IP Address 184.178.192.162 Device Microsoft Edge via Windows Typed Signature Signature Reference ID D073B9DB Viewed At 10/30/2024 18:06 EDT Identity Authenticated At 10/30/2024 18:07 EDT Signed At 10/30/2024 18:07 EDT AUDITS TIMESTAMP AUDIT 10/30/2024 18:04 EDT Emily Powell (emily.powell@hm.cpa) created document 'GRL_Fountain_Hills_Town_24.pdf' on Chrome viaWindows from 35.169.110.255. 10/30/2024 18:04 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) was emailed a link to sign. 10/30/2024 18:04 EDT Rachael Goodwin (rgoodwin@fountainhillsaz.gov) was emailed a link to sign. 10/30/2024 18:06 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) viewed the document on Microsoft Edge via Windows from184.178.192.162. 10/30/2024 18:07 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) authenticated via email on Microsoft Edge via Windows from184.178.192.162. SIGNATURE CERTIFICATE REFERENCE NUMBER BF190F3A-BD96-46AF-913B-F4B7A5D0EF46 10/30/2024 18:07 EDT Paul Soldinger (psoldinger@fountainhillsaz.gov) signed the document on Microsoft Edge via Windows from184.178.192.162. 10/31/2024 13:33 EDT Rachael Goodwin (rgoodwin@fountainhillsaz.gov) viewed the document on Microsoft Edge via Windows from184.178.192.162. 10/31/2024 13:34 EDT Rachael Goodwin (rgoodwin@fountainhillsaz.gov) authenticated via email on Microsoft Edge via Windows from184.178.192.162. 10/31/2024 13:34 EDT Rachael Goodwin (rgoodwin@fountainhillsaz.gov) signed the document on Microsoft Edge via Windows from 184.178.192.162. TIMESTAMP AUDIT Independent Auditor’s Report on Internal Control Over Financial Reporting and on   Compliance and Other Matters Based on an Audit of  Financial Statements Performed in Accordance with  Government Auditing Standards      Honorable Mayor and Members of the Town Council  Town of Fountain Hills, Arizona      We have audited, in accordance with the auditing standards generally accepted in the United States  of America and the standards applicable to financial audits contained in Government Auditing  Standards issued by the Comptroller General of the United States, the financial statements of the  governmental activities, each major fund, and the aggregate remaining fund information of Town of  Fountain Hills, Arizona, as of and for the year ended June 30, 2024, and the related notes to the  financial statements, which collectively comprise Town of Fountain Hills, Arizona’s basic financial  statements, and have issued our report thereon dated October 31, 2024.     Report on Internal Control Over Financial Reporting  In planning and performing our audit of the financial statements, we considered Town of Fountain  Hills, Arizona’s internal control over financial reporting (internal control) as a basis for designing audit  procedures that are appropriate in the circumstances for the purpose of expressing our opinions on  the financial statements, but not for the purpose of expressing an opinion on the effectiveness of  Town of Fountain Hills, Arizona’s internal control.  Accordingly, we do not express an opinion on the  effectiveness of Town of Fountain Hills, Arizona’s internal control.    A deficiency in internal control exists when the design or operation of a control does not allow  management or employees, in the normal course of performing their assigned functions, to prevent,  or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or  combination of deficiencies, in internal control such that there is a reasonable possibility that a  material misstatement of the entity’s financial statements will not be prevented, or detected and  corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,  in internal control that is less severe than a material weakness, yet important enough to merit  attention by those charged with governance.    Our consideration of internal control was for the limited purpose described in the first paragraph of  this section and was not designed to identify all deficiencies in internal control that might be material  weaknesses or significant deficiencies.  Given these limitations, during our audit we did not identify  any deficiencies in internal control that we consider to be material weaknesses. However, material  weaknesses or significant deficiencies may exist that have not been identified.    Report on Compliance and Other Matters  As part of obtaining reasonable assurance about whether Town of Fountain Hills, Arizona’s financial  statements are free from material misstatement, we performed tests of its compliance with certain  provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could  have a direct and material effect on the financial statements.  However, providing an opinion on  compliance with those provisions was not an objective of our audit, and accordingly, we do not  express such an opinion. The results of our tests disclosed no instances of noncompliance or other  matters that are required to be reported under Government Auditing Standards.    Purpose of this Report  The purpose of this report is solely to describe the scope of our testing of internal control and  compliance and the results of that testing, and not to provide an opinion on the effectiveness of the  entity’s internal control or on compliance.  This report is an integral part of an audit performed in  accordance with Government Auditing Standards in considering the entity’s internal control and  compliance.  Accordingly, this communication is not suitable for any other purpose.  Heinfeld, Meech & Co., P.C.  Scottsdale, Arizona  October 31, 2024  ITEM 7. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Amanda Jacobs, Economic Development Director Request to Town Council Regular Meeting (Agenda Language):  PRESENTATION: Economic Development First Quarter Update  Staff Summary (Background) Economic Development Director Amanda Jacobs will be presenting a first quarter (July 1, 2024 - September 30, 2024) Economic Development Update to the Town Council at its meeting on November 19, 2024. The presentation will include town efforts on business attraction, business retention and expansion, marketing, advertising, tourism and strategic partnerships.     Attachments Economic Dev. Q1 Report  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 11/05/2024 01:54 PM Town Manager Angela Padgett-Espiritu 11/05/2024 06:27 PM Form Started By: Amanda Jacobs Started On: 11/05/2024 12:01 PM Final Approval Date: 11/05/2024  Economic Development 1st Quarter Update •New Openings •Sheri Oyler Consulting LLC •Regus Management Group, LLC •Dr. Jodie's Integrative Consulting, PLLC •Arizona Physicians Group, LLC •Fountain Mobility LLC •Tom LaGravinese •NewRez LLC •True Heart Media •Coming Soon •Coffee Roasters •Good Living Greens (relocation) •Club Pilates Business Attraction Former Vu Restaurant Walgreens (Dark) Business Attraction •Expansions/Relocations •MCO Realty •Space 2,400 sq ft •Aesthetic Elegance and Wellness •Employees increased from 3 to 4 •Space increased from 1,000 to 1,649 sq ft •Business Retention and Expansion Program •Temporary Signage •Business Open During Construction •Chocofin Chocolatier •Collaboration on new Fountain Bars Business Retention & Expansion •Fall Event Guide •Arts and Humanities Month •Proclamation •Naturally Artistic Guide •Public Art Video •Partnership with FH Times Independent Business Retention & Expansion •Council unanimously approved new Downtown Strategy (September 2024) •Council authorized $100,000 Budget Authority •$25k –Light 60 Palm Trees (Completed) •$25k –3D Designs (In Progress) •$25k –Entryway Sign Package (In Progress) •$25k –Events and Marketing •Downtown Placemaking •Six new mural installations Downtown Strategy Murals –Laura Thurbon Murals –Ignacio Garcia Murals –Jesse Perry •Present Proposed Budget •December 2024 •Proposed Zoning Ordinance Changes •January 2025 –Planning and Zoning Commission •February 2025 –Town Council Downtown Strategy Apartment Occupancy Rate Apartment Occupancy Rate Gunsight 100% Casa Del Lago 100% Four Peaks Vista Condos 80% Pillar at Fountain Hills 94% Luna at Fountain Hills 86% Park Place at Fountain Hills 95% Average 93% Apartment Pipeline Apartment Name # of Units Status Redrock Center 17 Resubmitted; Waiting for corrections Malta & Saguaro 10 Permit Expired Park Place II & III 184 Waiting to Issue Arrow Dr.5 Permit Expired Fountain Hills Blvd & Glenbrook 10 Waiting on resubmittal Mountainside 70 No Application Submitted Sunflower 4 No Application Submitted Rand & Saguaro 5 Under Construction Ivory & El Pueblo 11 Under Construction Cambria Drive & La Montaña 8 Building Permit In Review Four Peaks Village 316 No application submitted Total 640 Vacancy Rate –Existing Buildings *Calculated by the amount of vacant rental building area (RBA) in the property divided by the total existing RBA. Category Vacancy Rate (4th Quarter) Staff Change Vacancy Rate (1st Quarter) CoStar Vacancy Rate (1st Quarter) Staff Office 23%(-6.1%)8.1%16.9% Industrial 11.2%(0%)0.8%11.2% Retail 23.1%(1.9%)15%25% •3CMA Silver Circle Award •AOT/Property Brothers •On Media (grant funded) •Arrived Magazine •On Stage •Media Coverage •Events •Downtown Strategy •FOX10 Live @ FH Theater Marketing Partnerships •Arizona Office of Tourism •Fort McDowell Yavapai Nation •Fountain Hills Chamber of Commerce •Fountain Hills Unified School District •International Dark Sky Discovery Center •Fountain Hills Times Independent •Greater Phoenix Economic Development Council •River of Time Museum •Southern Arizona Arts and Cultural Alliance •Hotel Occupancy: 63.5% •Social Media: 138.4% Increase •Fountain Live Feed: 71,861 views •Experience Fountain Hills Website •27k unique views (3.5% Decrease) Tourism Tourism Continued Experience FH Website Viewership Top 5 AZ Top 5 National Phoenix Los Angeles Scottsdale Las Vegas Tempe Chicago Fountain Hills Denver Mesa Washington D.C. •International Dark Sky Discovery Center •Night Sky Tourist •2025 Visitors Guide •Adero Resort •Autograph Collection/Dark Skies •Star Dudes •Event and Social Media Partnership Tourism Continued Questions? ITEM 9. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approving the Minutes for the Town Council Regular Meetings of October 1, 2024 and October 15, 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 Regular Meetings of October 1, 2024, and October 15, 2024. SUGGESTED MOTION MOVE to approve the minutes of the Town Council Regular Meeting of September 17, 2024, as presented. Attachments Verbatim Transcript 2024.1001 TCRM  Verbatim Transcript 2024.1015 TCRM  Form Review Form Started By: Angela Padgett-Espiritu Started On: 10/22/2024 08:53 AM Final Approval Date: 10/22/2024  TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL October 1, 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 Hannah Toth; Councilmember Allen Skillicorn Staff Present: Deputy Town Manager David Trimble; Town Attorney Aaron D. Arnson; Town Clerk Angela Padgett-Espiritu TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 1 of 43 Post-Production File Town of Fountain Hills Town Council Meeting Minutes October 1, 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 OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 2 of 43 MAYOR DICKEY: Good evening, everyone. Please stand for the pledge and if you'd like to remain standing for the invocation. ALL: I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. MAYOR DICKEY: Thank you. Is Pastor John Koczman here? Yes, for Trinity Lutheran. Hi. KOCZMAN: Yes. I'm Pastor John Koczman from Trinity Lutheran Church here in Fountain Hills on the corner of Palisades and Fountain Hills Boulevard. And in November, it will be three years that I've had the privilege of living here. And I want to say on behalf of myself and the family of Trinity Lutheran Church, thank you, to you for serving and for giving to our community. And we truly do appreciate that. I wanted to share a devotional thought on the subject of wisdom. And where better else to go than to the brother of our -- our Lord Jesus Christ, who in James 3:13 says, "Who is wise and understanding among you? By his good conduct, let him show his works in the meekness of wisdom." I had the privilege of being at my 50-year college reunion. The one thing I learned, of course, is that wisdom is not come from academia. Intellect comes from that place, and I'm thankful for that and celebrated that. But wisdom is a gift from God. So James also said in Chapter 1:5, "If any of you lacks wisdom, let him ask God, who gives generously to all without reproach. And it will be given to him." That's what I love about God. He gives us that wisdom. But He doesn't give us for our self-gain or purpose. And He gives it so that we can be of service to others. So that we can help a community like ours here at Fountain Hills to live in peace and unity together. Maybe not always unanimity, but unity. And I thank you again for that. And I would ask for the privilege to open now in a word of prayer. Heavenly Father, I thank you for these, our elected officials and leaders. I pray Father that you would bless them with great wisdom tonight, not for the sake of themselves, but for the sake of the community which you've called them to serve. Be a blessing and be present. Be to us that source of wisdom. We ask it in the name of Jesus. Amen. Again, thank you. MAYOR DICKEY: Roll call, please. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 3 of 43 TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Here. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Here. TOWN CLERK: Councilmember Friedel? FRIEDEL: Present. TOWN CLERK: Councilmember McMahon? MCMAHON: Here. TOWN CLERK: Councilmember Toth? TOTH: Here. TOWN CLERK: Councilmember Skillicorn? SKILLICORN: Here. TOWN CLERK: All right. Thank you. And I will read the statement of participation. Anyone wishing to address the Council regarding items listed on the agenda or under the call to the public should fill out a request to comment card, located in the back of the council chambers and hand it to the town clerk prior to consideration of that agenda item. When your name is called, please approach the podium, speak into the microphone and state your name for the public record. Please limit your comments to three minutes. It is a policy of the mayor and council to not comment on items brought forth under call to the public. However, staff can be directed to report back to the Council at a future date or to schedule items raised for a future council agenda. MAYOR DICKEY: Thank you, Angela. Tonight we have the pleasure of Dave Trimble. And I don't know if you have a report or not. But he's here for our meeting. TRIMBLE: Thank you, Mayor. No report tonight. Happy to be here pinch-hitting for Rachel. MAYOR DICKEY: Thank you. Apropos metaphor there. Hannah? TOTH: Hi. Well, we had quite a few different events in town. One being, of course, the homecoming game. I'm very sorry to our Falcons that it didn't turn out as we wanted, but it was still wonderful to see everyone there. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 4 of 43 One thing that I want to bring to the attention of the residents is that, you know, last meeting the Council chose to leave our council seat vacant that is currently vacant. And we, unfortunately, now have some attention on our town from Representatives Kolodin and Chaplik, who wrote a letter to say when a vacancy occurred on the Fountain Hills Town Council, it deadlocked with respect to filling the vacancy via vote on September 17th, 2024. The Council has not agendized the filling of the vacancy for October. As a consequence, it does not appear that the Town Council will ever fill this vacancy as it is compelled to do by law, but will simply wait until the winner of the election takes office. A.R.S. Section 9-235, however, states the Council shall fill a vacancy that may occur -- shall fill a vacancy. Accordingly, the Council has no discretion to wait until the voters fill the vacancy. But rather is required to fill the vacancy itself, pending the voters chosen candidate taking office. It's really unfortunate that our Council has devolved to this point, but I felt the need to include it in my report as the community should be aware. FRIEDEL: Thank you, Mayor. We did have a busy session between the last meeting. We had our Oktoberfest here at the -- first time, I think, we've had it at the Community Center and the Centennial Plaza. So I was there working with the Elks Lodge in town serving meals and it was a lot of fun and pretty well attended. We also had the Fountain of Lights ceremony right outside Town Hall here. I want to thank Bart Shea for his contribution. I see you out there in the audience. Thank you for your contribution to the base of that display. I also attended the Aid to Women Shelter. It was a big fundraiser down in Phoenix while I was in between meetings. I also attended the Fountain Hills Leadership Academy where the mayor spoke on know your government. We also had a State of the County by Tom Galvin and that was pretty interesting. He gave us a lot of facts and figures and what's happening in our county. We have a very successful county. They have a very healthy budget, as we found out. And then I went on a couple of business retention development calls with Amanda TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 5 of 43 Jacobs. We went to CrossFit Fountain Hills, which was really cool. If you haven't been there, you got to stop by there. They have quite a workout routine there. And then today we went to ADERO Scottsdale, where we met with David Barnett. There's no owners -- new ownership happening up there. And they're really interested in doing a lot with the town. So we're looking forward to a good partnership with them and working on things in the future to help them and the town. Thank you. MCMAHON: I thought that we -- when we're asked to come up here or asked to speak, it's on statement of participation. And I object your very inappropriate comments. It was nothing to do with your participation. And I -- I don't think it's appropriate for you to take advantage of the situation like that. I'm going to be brief. I also attended the Chamber State of the County. It was excellent to learn how healthy Maricopa County is. I have attended our dementia-friendly committee meeting and we are planning for another successful summit in February. The East -- the Valley Metro Board meeting updated finances. East Valley Partnership infrastructure committee meeting where we talked about the freeways and the additions and the need to vote in Proposition 420 -- 479. The Fountain Hills Women's Club, we had a great Oktoberfest this weekend. It was really, really fun. It was in the new -- new Centennial Circle that worked out really, really well. And it was good to have it inside because it was so hot. And also -- I also attended the Fountain of Lights ceremony and it is a beautiful fountain. It is -- if you haven't been and walked by it yet at night, it is very, very pretty. It's on Avenue on the Fountain just outside Town Hall. Thank you. MAYOR DICKEY: Thank you. KALIVIANAKIS: Thank you, Ms. Mayor. Thank you, everybody, for being here tonight. I noticed we have kind of a light crowd tonight. So I guess baseball playoffs take precedence over town council meetings. I'd like to greet everybody on Cox, Channel 11, You Tube, of course, in person, and livestreaming to our town council meeting tonight, where we discuss the town's business. Thursday, September 19th, I also attended the State of the County Breakfast given by TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 6 of 43 the Maricopa County Supervisor who's currently the chairman -- vice-chairman of the board. He gave a very optimistic report on the state of Maricopa County. It was a wonderful thing to hear, all the great things that they're doing. I won't recount them here because there's -- they're too numerous. But it was a good -- it was a good report. And thank to the Chamber of Commerce for sponsoring that. We also did the Fountain Hills Leadership Academy, Know Your Government, two weeks ago -- but since last council meeting -- where all of our town staff, the mayor, town manager, and all of our staff, gave presentations to the future leaders of our town. The Leadership Academy is a very important component to our town. It's a pipeline to our future leaders, a pipeline to our commissions, our boards, our town council, and possibly the Mayor's Office. And so I support that. This week is going to be the Fort McDowell Yavapai Nation tour, I helped put that one together. And I will be attending that session with the class this week. Again, Wednesday, September 25th, we did have the Fountain of Lights ceremony. Thanks once again, to Brian Schrader, the artist, for doing a great job and adding such a beautiful addition to our town. Like Gerry said, I want to thank Bart Shea for his generous -- one more generous contribution to our town. That's what it's all about. And we really appreciate that kind of community (indiscernible). The 26th, I had the pleasure -- since the mayor was busy -- to conduct the state -- go to the Aesthetic Elegance and Wellness and do the ribbon cutting ceremony. It's on Avenue of the Fountains. And it's kind of a beauty boutique, a lot of the procedures they do there, it's developing a more beautiful you on the inside and out. And so if you haven't stopped by, talked -- go there, talk to Ellie, she's a wonderful person. I did go on the 26th -- the same day -- after the ribbon cutting, to the school board forum that was at the Chamber of Commerce too. There, we got to hear from the candidates that are running. We are extremely fortunate in this town to have such a great talent pool for our school board. Dr. Rich Rutkowski, Dr. Anne Evans, and Kim Duckworth, who's a concerned mom that has children in the school district, all shared TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 7 of 43 their thoughts about the school district. And those are three winners, we can't go wrong. So I'm really glad people are stepping up and volunteering for school board. I went to the Oktoberfest ceremony, which was the 27th and the 28th. And we tapped the keg, played a lot of music, ate good food, and then recreated. It was a wonderful time. Normally it's held down at the lake and it kind of services, more Scottsdale, Mesa, Gilbert, we scaled it down this year. It was at the Community Center in the pavilion -- the Centennial Pavilion. And I kind of liked it better. It was more intimate. It was pretty much town -- Fountain Hills resident centric, which I really appreciated. And it was charming. And so that was good. I hope we keep doing it there. Lastly, as everyone knows I play for the Desert Valley Winds Band. And we have two gigs coming up. On December 7th, we're going to have a Pearl Harbor Remembrance, it's going to be at the Community Center. I hope everyone can come out and join us. We're going to play music to remember the day that we lost so many brave souls. And then our band was also selected to play at Munch and Music this Spring. So that date's to be determined but I talked to the organizer yesterday and that's a done deal. So anyway, that's my report. Thank you, Ms. Mayor. SKILLICORN: Thank you, Madam Mayor. Actually, I just want to point out, if anyone missed the Oktoberfest, this was last weekend, there's another one going on at Desert Canyon Golf Club the 19th and 20th of this month. And there's plenty of events coming up, obviously, this is the season that we treasure here when it's not nicer weather. So that's all I have for tonight. MAYOR DICKEY: Thank you. Yeah, everybody is talking about the weather. But I think the Oktoberfest was fun and kind of authentic under the -- under the tent like that. Leadership Town Hall Day was great. Everybody had such a varied and impressive background. The new leadership class VIII went to most of the events everybody was talking about. I was able to do the ballet welcome. And what I like about that is then I can do kind of what you were saying about all the -- all the events coming. So I could do this -- there was a lot of people there. So I could sort of do a commercial for Fountain Hills events. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 8 of 43 I went to the MAG Regional Council, which they have 25 years of the Domestic Violence Council -- Awareness Council -- and Gerry's going to make that proclamation. I didn't realize it was 25 whole years. They also did a first things first childcare focus on working parents and what they're trying to do in the state there. AZMAG so azmag.org, is a really comprehensive -- it's the MAG website -- and you can go to the meetings and then they have all the presentations. Specifically was about air quality, which was something we were talking about getting downgraded, unfortunately. So the efforts that they're putting forth to try to mitigate that, because outcomes of getting a downgrade -- it wasn't just ozone, but also particulates will affect, you know, the chip factories and all of the economic development that we're seeing in Chandler and some of these other big cities. So it's important for us to try to get our arms around that. I have several proclamations but I'm going to mention -- I don't have a proclamation for it -- but that October is breast cancer awareness month. I also want to mention that starting tomorrow at sundown is Rosh Hashanah, which is the Jewish New Year. You can find all the information. You're invited to an event there, it's jewishfountainhills.com. And then of course want to mention that our thoughts are with all those that are affected by the devastation happening today and also in the past year and more. And then, like I said, we'll do the proclamation. I'm going to go down there, I'll present. We have Arts and Humanities Month. We have Community Planning Month, Fire Prevention Week, and then Gerry will do the Domestic Violence Awareness Month -- October, so. Barb, you're up. Barb Hansen from the theater. I'm going to start with Arts and Humanities. So whereas the nation's 120,000 nonprofit arts organizations, the National Endowment for the Arts, the National Endowment for the Humanities, the nation's 4,500 local arts agencies and communities across the country and the Arts and Humanities Councils of the 50 State and the 6 U.S. -- this is a mouthful -- U.S. jurisdictionals and districts, have TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 9 of 43 regularly issued official proclamations on an annual basis designating October as National Arts and Humanities Month. And whereas cities and states have celebrated the value and importance of culture in the lives of Americans and the health of thriving communities during National Arts and Humanities Month for nearly 30 years. And whereas the humanities help diverse communities across the United States explore their history and culture and the arts and humanities embody much of the accumulated wisdom, intellect -- we just were talking about that, right -- and imagination of humankind, enhance the enrichment and the lives of Americans and play a unique role, our families, communities, and country. And whereas the nation's arts and culture sector, which includes nonprofit, commercial, and education is an 877-billion-dollar industry that supports 4.6 million jobs representing 4.2 percent of the nation's economy, a larger share of GDP than sectors such as agriculture, transportation, and utilities, and boasts a 33-billion-dollar international trade surplus. And whereas the nonprofits arts industry alone generates 27 billion dollars in government revenue, 166 billion in economic activity, annually, including spending by attendees to arts events of $31 per person per event, beyond the cost of admission on items such as meals, parking, and lodging, making the arts a vital income source for local businesses. So therefore, I, Ginny Dickey, Mayor of the town, do hereby proclaim the month of October 2024 as National Arts and Humanities Month and call upon our community members to celebrate and promote the arts and culture in our nation to specifically encourage greater participation in the arts and humanities in cities and towns. So there we go. And you have to say something. Okay? HANSEN: On behalf of Val Stasik, President of the Board, of which I am a member -- for many years -- we're very appreciative. And I think our town is so lucky to have what we have as far as the arts, particularly our wonderful theater. MAYOR DICKEY: I agree with that. HANSEN: Thank you very much. MAYOR DICKEY: Thank you. HANSEN: Thank you. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 10 of 43 MAYOR DICKEY: Hold on, you got to get a picture. Our next one is -- oh, shoot -- okay, this is the community planning month. And I think Farhad is coming up to get this one. Thank you. You're wearing your purple. That's good. You get the honors there and I'll read it. So whereas change is constant and affects all cities, town, suburbs, counties, boroughs, townships, rural areas and other places, and whereas community planning can help manage this change in a way that provides better choices for how people work and live. And whereas community planning provides an opportunity for all residents to be meaningfully involved in making choices that determine the future of their community. And whereas the full benefits of planning requires public officials and citizens who understand, support, and require excellence in planning and plan implementation, whereas the month of October is designated as National Community Planning month throughout the U.S. and its territories. And the American Planning Association endorses National Community Planning Month as an opportunity to publicly recognize a participation and dedication of the members of planning, citizen planners, and commissions who have contributed their time and expertise to the improvement of the town. And we recognize that many valuable contributions made by the professional community and regional planners of the town of Fountain Hills and extend our heartfelt thanks for the continued commitment to public service by these professionals. Therefore, I, Ginny Dickey, Mayor of the town of Fountain , in conjunction with the celebration of National Community Planning Month, hereby do proclaim the month of October as Community Planning Month. Thank you. Okay. You going to say a few words? TAVASSOLI: Yep. MAYOR DICKEY: All right. TAVASSOLI: Well, thank you, Madam Mayor. I just have a few words here to share. So as we gather to celebrate Community Planning Month, we recognize the vital role that planning plays in shaping the future of our communities. Planning is not just about TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 11 of 43 zoning laws or building regulations. It's about envisioning a better future. It's about ensuring that our neighborhoods are vibrant, safe, and resilient. From economic development and transportation to housing and protection of our most treasured natural resources, planning is at the forefront of our -- of addressing the challenges and opportunities that lie ahead. This year, as we continue to navigate the changes brought about by continuous growth, the importance of thoughtful and comprehensive planning has never been more evident. Let us commit to supporting and engaging in the planning process. Together, we can create communities that reflect our shared values and aspirations. Thank you and happy Community Planning Month. MAYOR DICKEY: Thank you. Thank you, Mr. Clayton (ph.). All right. Okay. Last one for this spot is Fire Prevention Week. And that'll be Chief Ott. Whereas Fountain Hills is committed to ensuring the safety and security of all those living in and visiting our town, fire is a serious public safety concern, both locally and nationally. And home is where people are at greatest risk from fire. Home fires killed more than 2,700 people in the United States in 2022 and fire departments responded to 360,000 home fires. Whereas roughly three out of five fire deaths happen in homes with either no smoke alarm or with no working smoke alarms, which cuts the risk of dying in half. Whereas smoke alarms alert you to danger in the event of fire, in which you may have as little as two minutes to escape. The residents should install smoke alarms in every sleeping room, outside each separate sleeping area, and on every level of the home. And residents should make sure their smoke alarms meet the needs of all their family members, including those with sensory or physical disabilities and should test smoke test alarms at least once a month. And whereas residents who have planned and practiced a home fire escape are more likely to survive and whereas first responders are dedicated to reducing the occurrence of fires and injuries through prevention and protection education. And residents are responsive and able to take steps to increase their safety. And whereas the 2024 Fire Prevention Week theme smoke alarms, make them work for TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 12 of 43 you, serves to remind us of the importance of having working alarms in the home. Therefore, I, Ginny Dickey, Mayor, do hereby proclaim October 6th through 12, 2024, as Fire Prevention Week, throughout the town and urge all to make sure their homes have smoke alarms and to support the many public safety activities and efforts of Fountain Hills Fire and Emergency Services. OTT: Thanks for this. It has been quite a few years that we've been doing this here. And I did start my career in fire prevention a long time ago. And sadly, the stats don't really change that much. We're progressing, we're doing things, we're requiring fire sprinklers. But in the areas that are really dependent on smoke alarms to -- to save people's lives, the stats haven't really changed. I can pull up an article probably once a week where somebody has died in a fire because the smoke alarms didn't work. So maybe at some point, we'll get past that and be able to not have such high numbers, but. Thank you. MAYOR DICKEY: Thank you. We appreciate what you do, of course. Thank you, Chief. FRIEDEL: So for those that don't know, I serve on the Regional Domestic Violence Council for -- for Fountain Hills as their representative. Just a couple of notes about domestic violence. We saw a big increase during the COVID years and those numbers really haven't gone down because there's been an influx of population here in Maricopa County. So the numbers are still rising. The town takes it seriously. We have a voucher program that we have set up for anybody that's in a situation like that and they need to have a place to go to. And also, on Wednesday nights in October, the town will be having the fountain turn purple and also cloak the Town Hall in purple lighting, as well. So with that, I'll read this proclamation. And then, Bob, if you want to get a picture of the Mayor and I, that would be great. Okay. Proclamation for Domestic Violence Awareness Month. Whereas home should be a place of warmth, unconditional love, tranquility, and security, and whereas for most of us, home and family can indeed be counted among our greatest blessings. And whereas tragedy for many Americans, these blessings are -- these are blessings that are tarnished by violence and fear, and whereas women, men, young children, and the TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 13 of 43 elderly are all counted among victims of domestic violence. And whereas domestic violence is a major contributor to homelessness, particularly among women and children, and whereas physical injury and deaths occur, and emotional scars are often permanent and whereas law enforcement officials, shelters, hotline services, healthcare providers, the clergy, and concerned citizens are helping in the effort to end domestic violence and whereas we must recognize the compassion and dedication of all these volunteers and professionals, applaud their efforts and increase public understanding of this important problem. Now therefore, I, Ginny Dickey, Mayor of the Town of Fountain Hills, Arizona, do hereby proclaim the month of October as Domestic Violence Awareness Month in Fountain Hills and urge all citizens to observe this month by becoming aware of the tragedy of domestic violence and supporting our community efforts in working towards its end. Thank you. MAYOR DICKEY: Good job. Thanks. We appreciate you. You know, these proclamations -- we get requests and we like to honor them when we can. And a lot of times we'll get folks who want to come and get them. But we're happy to do them even if someone can't come. So thank you. Next, we have a presentation from our Chief Financial Officer, Paul Soldinger. And the floor is yours. SOLDINGER: Great. Excuse me. Good evening, Mayor, Vice Mayor, and councilmembers. Tonight, I'll just be doing a brief presentation just to give you information on our fiscal year 2024, quarter four-, and full-year revenues. Most of the presentation will be positive. But there are some headwinds to consider for this current fiscal year that I'll discuss in depth. So our total net taxable activity, which is basically just all of the TPT filers filing their TPT sales tax returns to the State of Arizona through ADOR, that amount for fiscal year 2024 for the fourth quarter was 194 million. It was actually a decrease from the same period from the prior year, but that year that quarter had a bit of high activity that was uncommon. So it really was a strong quarter because if you go back two years, it was still a $20.4 million increase from that two-year ago period. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 14 of 43 And just real briefly, about our total TPT collections. Our TPT -- our local sales taxes -- just for everyone's information -- if you don't know, it's our largest source of revenue as a town. It's about 55 percent of our total revenues per year. The fourth quarter local sales tax collections came at -- came in at 5.39 million, which was $1.2 million more than projected. Also, fourth quarter overall collections were $278,000 more than the prior year fourth quarter, an increase of 5.4 percent. You'll see at the bottom of your screen that our collections actually slightly decreased from the prior fiscal year, but like I mentioned, there was some large construction activity on fiscal year 2023 that kind of accounted for that increase in the prior year. Overall, fiscal year 2024 was a strong year of local sales tax revenues that stayed consistent after a large increase two years ago. If you see on your screen, from fiscal year '22 to '23, it was about a 17 percent increase in those tax revenues two years prior. So it's good to see that they're stable -- staying consistent in fiscal year 2024. This bar graph on your screen breaks down that total revenue of 20.5 million by category. So as you can see, there's different categories, construction, utilities, retail, restaurants and bars, real estate services and miscellaneous. Just some things to note. Our construction revenues have shown resilient growth over the past two fiscal years. As you can see on your screen, it was right around $2 million a year, is what we were bringing in. But the last two years, we were bringing in closer to three -- three to three and a half million dollars. So there has been a substantial increase in construction activity in our town. Utilities and retail have kind of consistently grown. But restaurants and services have started to show a little bit of contraction in fiscal year 2024. Those revenues have gone down a bit. And I'll discuss those further in my presentation. Real estate showed continued growth as well, but that is the category where we're going to lose significant amount of that revenue starting in January, in just a few months. We're losing a little bit more than half of that revenue every fiscal year, so I'll talk about that, as well. And please stop me if you have any questions as we go along. Retail sales, the town's fourth quarter retail sales collections came in at 2.78 million, TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 15 of 43 which was $190,000 more than projected. Also fourth quarter overall collections were $24,000 more than the prior year, fourth quarter. You'll see at the bottom of your screen that our retail collections increased by 1.8 percent from the prior year. While it's positive to see growth, like I mentioned, there are some headwinds within that amount to consider in this category which I'll break down on the next few slides. So when we look at retail sales taxes, if we take out the food sales, we see a little bit of a different picture. There was still -- as you see on the bottom of your screen -- there was still a 1 percent increase for the full fiscal year. And the town collected $8.5 million for that full year compared to the previous year of $8.4 million. But if you get down a little bit more into the nitty gritty and you consider kind of the micro -- or the micro- economics where the differences within the certain categories within that amount. There's also a remote sellers category. And you can see at the bottom of your screen, our remote sellers sales tax has gone up quite a bit, also 14 percent. So that's really the crux of the increases of our retail sales increases. If you take out that and the food tax, our actual in-town retail sales taxes have slightly dipped. So this may -- MAYOR DICKEY: Paul. Paul. SOLDINGER: Oh, yes. MAYOR DICKEY: What's the purpose of removing those things -- those items -- as far as, you know, what is the meaning of that? SOLDINGER: I actually got a request from a local businessperson to break that out. And they thought it might be interesting information. And I thought it would be helpful to see that. Because when I looked at it myself, you know, it kind of did tell the story that there are more people spending money online, there's a little bit less people spending money in our town. So it's important, I think, for Council and Mayor to know, in this presentation. Thank you for the question. So as we talked about already, construction sales tax has been resilient these past two fiscal years. As you can see, the town collected $782,000 in the fourth quarter of fiscal TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 16 of 43 year 2024, which was $412,000 more than projected, and an increase of $224,000 with the same period in the prior year. But please keep in mind, as I mentioned, there were -- as you see on the screen -- there was an audit collection fiscal year '23. That was one of the large taxable activities that happened within construction. We also had another large taxable transaction, fiscal year '23. So just keep that in mind that that is a bit skewed. And fiscal year '24, while not quite as high, it went down by seven percent compared to fiscal year '23, it was still very strong, very resilient, as far as compared to the prior years before that. MAYOR DICKEY: How often do we do audits? SOLDINGER: Yeah. So that's a great question, Mayor and Council. We contract our sales tax auditor services. So we -- we pay a monthly fee to -- over 15 years to a company that had significant experience working for the Arizona Department of Revenue, conducting sales tax audits. So they do audits on an ongoing basis. The town's really, actually, pretty hands-off. It's them evaluating, doing risk assessments. They do request information from the town at times about business license information and things of that nature, so they can compare to the revenues coming in. But they're the ones conducting the sales tax audits and they work through the Arizona Department of Revenue to complete those audits. MAYOR DICKEY: And then so this spike, how often will we expect that to happen? SOLDINGER: Mayor, Council, we get a few sales tax decision -- sales tax audit decisions -- per year. This was a larger one than most. Some of them can -- I mean, they're random -- they could be a lot smaller. So it just depends on the year. And that's all confidential taxpayer information that I can't release. Utilities and communications, it's pretty consistent. You'll see that it's risen a bit above projections. We collected $355,000 in the fourth quarter of the last year, which is about 57,000 more than projected. Real estate, you'll also see the real estate tax collections have shown steady increases above projections, but this is the category where the town will be losing a significant revenue stream starting in January in just a few months, which I'll go into on the next TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 17 of 43 slide. Specifically because of the State's recent elimination of the long-term residential rental sales taxes, the town will no longer receive that revenue, which is more than half of this category, in a few months. For fiscal year 2024, the town collected about $1.35 million in this category, increase of 7.4 percent from the prior -- prior year. So I just, you know, we talked about it during the budget season. We talked about how much we may be losing. I want to kind of provide you the information on the actual revenues we received the last three fiscal years in this category. So within the rental category, we've collected between 540 to 769,000 dollars per year of this revenue, which we'll no longer receive. We've already considered that in our fiscal year 2025 budget that we're in now and we'll also consider that in our fiscal year 2026 budget. But I thought it'd be important to just highlight this information for you. Almost done. Restaurants and bars, I think it's important just to see this information, that our restaurants and bars in town, our sales tax revenues have gone down. Fiscal year 2024 was a decrease of 4.3 percent compared to the prior year. So I don't have all the statistics in front of me at this time, but essentially there -- this could be an indication of a slowing economy, people eating out less at our restaurants. It could be related to restaurant closures -- I'm just speculating at this point on that. But something to keep in mind. People are eating out less within our town. And lastly, for sales taxes, our services category, it's also showing headwinds. Although the town -- you'll see that big spike towards the right of your graph. We had a big month a couple months ago where we brough in a lot -- a substantial amount of sales tax revenue in this category. The town actually received less revenues in this category compared to the prior year. It went down by 3.2 percent. So this category is basically hotel, short-term rentals, golf, leisure type activities. So it could be another indication of a possibly slowing economy, people spending less money on -- on leisure type activities. And that's all I have for sales tax. Any questions before I finish on state shared revenues? SKILLICORN: CFO donor. I'm just kind of curious or, you know, this is a little bit TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 18 of 43 conflicting stuff. Obviously, we're doing very well with the Wayfarer Collection. But I'm actually kind of surprised -- I would have thought -- because with inflation, prices are higher and since we're paying -- or you know, sales tax is a percentage of what people pay at the stores, it does the people are, you know, spending or buying less at the stores. I mean, if you buy a pair of socks a year ago and you only paid a certain percentage on that. And then now the socks are more money and you're paying that same percentage, you know, we're going to collect more sales tax. But they're obviously buying fewer pairs of socks. But also it seems like STR, you know, short-term rentals, you know, there's a reduction even though now we -- we can collect that. But that's still -- that industry has taken a -- pretty much a dive right now. So it is interesting seeing that conflicting information. I don't know if there's -- if there's any other projections on some of these where they're going to go or if it's just, you know, we're going to kind of wait and see. SOLDINGER: Yeah, Mayor, Councilmember Skillicorn, that's a good question. So every -- around December to January, that's part of my responsibility is doing the projections of revenues for the next fiscal year. And so that will be done. I provide that to the town manager and then we discuss it during the budget sessions. So I'll be sure to highlight some of those projections during that time, probably in the February to March timeframe of next year. All right. Just real quick, state-shared revenues, these always -- not always, but at least since the time I've been here, they come in pretty consistently based on projections. Our state-shared revenue for sales tax is they've come in a little bit higher than projections at 921,000 for -- this is for the fourth quarter of last year. State-shared revenues for income taxes -- also known as urban revenue sharing -- that we collected 1.58 million compared to projections of 1.6 million. HURF revenues actually came in a little higher than projected at 505,000 compared to 462,00 projected. And vehicle license taxes came in at 348,000, a little bit higher than projected. And with that, are there any other questions? MAYOR DICKEY: Councilman? TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 19 of 43 SKILLICORN: Thank you, Madam Mayor. (Indiscernible). I don't know if we could bring up the last couple slides. Curious about the state-shared revenues. You know, currently there's a 1487 investigation which could actually direct the treasurer to withhold our state-shared revenues. Is that, you know, just income tax money or is that sales tax and does it also include HURF? You know, what does that specifically add up to? SOLDINGER: So Mayor, Councilmember Skillicorn, I -- you know, for that specific instance, I'm not 100 percent sure which -- which state-shared revenues they would consider withholding. But what I've seen in the past is they -- they usually look at the urban revenue sharing, which is that second -- that second one on the right right there. And so right now, we're receiving about $5.1 million this fiscal year of that revenues. But for the specific incidence that you're mentioning, I'd have to get back to you on that. SKILLICORN: Actually -- and yeah, could you include the rest of the Council? SOLDINGER: Yes. SKILLICORN: Appreciate that. Thank you. MAYOR DICKEY: Any other questions or comments. Aaron, do you know is it -- does it affect all state-shared revenue? ARNSON: I don't know. That's something -- MAYOR DICKEY: I think it does. ARNSON: -- we need to -- yeah, we were just talking about that over here. I don't know the answer to that question. MAYOR DICKEY: Okay. ARNSON: But I can certainly work with Paul to get back to you on it. MAYOR DICKEY: Yeah. ARNSON: Yeah. I know, right? I think it would, but. MAYOR DICKEY: And was the flat tax in effect all last year, as well, or just this year? SOLDINGER: Yeah. So Mayor, Council, it went into effect last year, but the -- that -- that state-shared revenue is kind of odd. It's kind of a two-year lag because they based it on income tax revenues that the state collected two years prior. So last year we kind of TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 20 of 43 had a temporary increase. And this year we're seeing a decrease going back to almost more steady levels. And we're going to see another projected decrease next year before it starts to -- the State projects it to start stabilizing and starting to go back up, as well. MAYOR DICKEY: And it's stabilizing because there's more, you know, the percentage is staying the same. So I was reading something about the flat tax that once -- it's only 2.5 percent, right, so 70 percent of the -- of that went -- of the benefit went to households above 200,000. But I wasn't sure what that meant for cities. It seems like it just is going to go lower. And if it does go higher, it's just because of an automatic of the base amount, but not helpful as far as the percentage. SOLDINGER: Yeah, Mayor, Council. Basically the State projects it to start increasing because after the effects fully go into place, you know, how the flat tax brough tax revenues down, they're projecting that people -- basically, people are going to -- and corporations are going to start making more money with inflation and everything else. And so then they're going to start seeing an increase after all the effects of the implementation go into effect. MAYOR DICKEY: And just to reiterate, the loss of the likely more than 700,000 -- because that was going up because rents are going up -- so the -- SOLDINGER: Um-hum. MAYOR DICKEY: -- amount was pretty high, we -- we took that into consideration of losing half of that. And then next fiscal year, we'll lose it all? SOLDINGER: Mayor and councilmembers, yes. We're going to consider that we're losing the rest of that. We considered half of it for this fiscal year. We're going to consider it all gone for next fiscal year. We'll also consider the final projections for the decrease in urban revenue sharing, which is right now, about $500,000 more that the town will probably be projected to -- to lose. MAYOR DICKEY: That's a blow. Thank you. Any other questions or comments? Thank you, sir. The next item is call to the public. Do we have speaker cards? TOWN CLERK: Yes, Mayor, we do. And we also -- you'll have -- as part of your packet, TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 21 of 43 you will find some online comments that the Town has received. So first up, will be Larry Meyers. And then second will be -- to speak -- will be Blake -- I'm not for sure how to pronounce your last name -- is it Janell (ph.) or Jakel? JAKEL: Jakel. TOWN CLERK: Thank you. Noted. JAKEL: It's spelled (indiscernible). TOWN CLERK: Noted. All right. Thank you. MEYERS: Mayor, Council. Larry Meyers, resident 43 years. I'd like to take this opportunity to publicly apologize to Ms. Earle -- Councilwoman-elect Ms. Earle, for my failure to appear at the last council meeting to express my opinion as one of the 4,226 voters who selected Ms. Earle, that should have been rightfully seated early, no pun intended, in juxtaposition to the 60-some odd comment cards rounded up by certain members of the Council and their clubs, opposed to Ms. Earle's early seating. But then as I watched, I and 4,226 voters were lectured about left and right, thumbs on the scale, nonpartisanship, serving the people, on and on, mostly pompous bologna, the same lecturer then takes to the airwaves to spew an endorsement in the upcoming election in the context of political parties, while at the same time preaching nonpartisanship and also dissing the political PAC that helped it get elected, which is essentially the same 4,226 voters and then some, all residents, all to be served. Curious. Well, I for one, am glad there is no longer any mystery. Throw open the window, let the fresh air in, a modicum of transparency is returned to this town government and I can only attribute this to a virus that is known as rot-derangement syndrome. Others in Fountain Hills have come down with this virus. As with COVID, masks will not help the afflicted stay safe. Rot-derangement syndrome may or may not be deadly, also, as with COVID. Only time will tell and will reveal the final mortality rate. Thank you for the time. JAKEL: Hello. My name is Blake Jakel. I'm a new town resident. I bought up in North Heights a year ago June. I'm here today, the topic sentence would just be, I think the TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 22 of 43 town, the community members, the people who police it, deserve a tool that would be a city ordinance violation for a dog off-leash. We -- currently, we don't have one. We have one that is a misdemeanor ticket for a dog at large. That's one that is usually reserved for when an owner isn't present. It's meant for, like, somebody who lets their dog roam the neighborhood unattended. I, in August, had an issue up in North Heights where a couple of cops were waiting for me at 5:30 in the morning. I have never had a run-in with cops here in this town. They said they were told to go there by their manager to look for a guy with a scooter with a dog that runs next to it, as a report of a dog at large. That was me. About 5:30 in the morning they stopped me. My dog sits by the scooter. I go talk to them. They issue me -- or they said hey, hey, sorry about this, but you know, we got to call our supervisor. He said give us a call if we run into you. I said, well, hey, we're on Sierra Madre, that's the only busy street over here. I was like, do you mind if we just do this at my house over at Elena? They said yeah, no problem. So they just let my dog run next to me on my scooter back to my house, about another mile, right? We get back. The cop comes out of his SUV. He gets off the phone, he look at me and he says, hey, man, I'm really sorry about this. He goes, your dog's a sweetheart, he's like, she's great, no problem. He goes, but my supervisor says I have to give you a ticket. I said, hey, no worries, dog off-leash, you know, I must be in town limits, it's probably a city ordinance ticket. He's like, yeah, no -- no worries or whatever. He's like, I'm really sorry about this. Unfortunately, you know, back in my day, 20 years ago, I've gotten a couple misdemeanor tickets for underage drinking. No cop has ever let me finish my beer, I will say that. But so anyway, I look at the ticket, I realize it's a misdemeanor ticket. I was like, it's the first time ever talking to a Fountain Hills cop -- super nice guy, called my dog a sweetheart, very reasonable, everything was great. There was two cops there. And I said -- I said, don't worry about it. So I get inside and I realize it's a misdemeanor ticket, it's not an ordinance violation. So I have to go to an arraignment and then I have to go in after I get arraigned again, to talk TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 23 of 43 to a town prosecutor for a misdemeanor, for a dog off-leash, right? And all along the way, I thought, well, maybe I'll just go to talk to the supervisor and see what the real deal here is, it's a small town, maybe it's just sending a message, or whatever. Go in and talk to the night shift supervisor. He wasn't the one on duty. All the cops thought it was an ordinance violation. They didn't realize it was a -- it was a misdemeanor level ticket. I said, I promise you -- they said, well -- the supervisor said, I'll call you the next day, let me talk to the prosecutor. The prosecutor told him, no, he's absolutely right, we only have a misdemeanor ticket for you guys to offer. That's what happened. So again, the topic sentence is, I do believe we deserve a city ordinance dog off-leash ticket. TOWN CLERK: Okay. Next we have Crystal Cavanaugh and to follow, Bart Shea. CAVANAUGH: Good evening. Crystal Cavanaugh, Fountain Hills resident. You acknowledged there were only three meetings left and yet three still refuse to seat Gayle. Let's talk about some of the 65 -- not 67 -- submitted speaker cards, referenced more than once, as though important in justifying your no-vote. Most of these orchestrated submittals didn't even give a reason, they were just against. Some made nonpartisan references while being extremely partisan. Sort of the like the Council's political no-vote, while claiming not wanting to put your finger on the scale. Some card submittals didn't seem aware Gayle Earle had even been elected outright. One thought all of the Council candidates would still be on the November general election ballot. Councilwoman McMahon, are you paying attention to my call to public? MCMAHON: Council (indiscernible). CAVANAUGH: Excuse me. Or how about the in-person speaker who referenced being offended by Gayle's married son's t-shirt, or that his family wore political buttons, and so that was a reason not to seat Gayle. Another one stated winning a primary is not the same as actually being elected to a position. Wrong. In Fountain Hills, she won outright. Forces are attempting to turn what should be a nonpartisan town council into a council of extremists. Gayle is no extremist. Seating a partisan, such as Gayle Earle, will change the dynamics prematurely. Earle ran as a polarizing figure and does not TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 24 of 43 deserve an early swipe at town policy. Yet, she did win. And there were those who were so worried about the voice of the people, but were unaware that 4,226 voices had already elected Gayle outright from a field of eight candidates. Some wanted to just fill the vacancy when we call all vote and not appoint someone who is not elected. She was elected. The intent is to circumvent the voters of Fountain Hills and install a non-elected political ally to create an invalid majority on the town council. Democracy works when the voters actually vote and elect an official candidate to the position. That was a comment. Again, Gayle won outright and the vote was canvassed by you. So since this Council did not appoint the duly elected Gayle Earle, or fill the vacancy, our State Representatives utilized SB 1487 and filed a complaint with the Attorney General's Office yesterday. The failure to fill the vacancy could result in Fountain Hills losing some state-shared revenues if not rectified. And for the record, I did not initiate or request that, in any way. But thank you State Reps Joseph Chaplik and Alex Kolodin for doing so. Thank you. SHEA: Good evening, Mayor, Vice Mayor, Councilmembers. City attorney, town attorney -- Rachel is not here. June -- I got called to a meeting for a "update" to the Town of Fountain Hills on my projects. It's been a miserable three-year process on those since we originally were financed to do this and we timed out the development agreement and killed that financing. Then we went ahead and set it up two more times -- killed that. So in June I get to called to a meeting for an update on where we're at. Blindsided, I asked what the agenda was in the meeting multiple times -- was never told of an agenda. Got here, was blindsided. And then blackmailed into signing off my rights under my estoppel, which I had -- which I'd sent to the new round of financing, which the town would not confirm with the new financing until I met with them. And then they removed the estoppel. Ironically, after they removed the estoppel, they told the new finance company that I didn't have an estoppel after I'd already sent it to them. Round three, financing gone. So I'm blackmailed into this -- signing this document. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 25 of 43 Came back here about two weeks ago -- about a week ago -- and I asked for my estoppel to be reinstated. I don't want to go through litigation. I don't like doing litigation against this town. If you didn't hear earlier, I put a lot of money into this town, doing it freely -- of my own free will, including Oktoberfest that just went off. 2000 bucks on that and they parked on my property to go do it. All of that being said, I came to Council, Mayor, Vice Mayor, Mr. Friedel was the councilmember -- Friedel was there, the town attorney was there. I said hey, I don't want to get into this whole Prop 207. I don't want to make you guys liable. I don't want to get into the lawsuit. Could you just reinstate my estoppel? Give me my rights back. Because under the law, I had them and you took them away. I know the town attorney doesn't believe them, but my attorneys all do. It's about $24 million that the town just became liable for because we decided we didn't want to give me my rights back. Because why -- because somebody on staff decided I didn't fulfill some of the obligations inside the development agreement. That's inaccurate. He said so in court that he has no concept of when it starts. And the only reason they weren't fulfilled is because he decided not to grant permits, ever. So please reinstate my estoppel. Please do that. Before I give a notice of claim and it's going to be in excess of $23 million to the Town of Fountain Hills. And I know the town attorney doesn't believe it's real. I guess we'll find out in court. Thank you. TOWN CLERK: Last, we have Ed Stizza. STIZZA: Good evening, Mayor, Town Council, staff, Aaron. I hope everybody had a great summer. And I just got back into town after being gone for about -- almost two months. And I was able to watch each and every one of you, each and every time, and also to listen to a bunch of people reporting on what has happened in this chamber -- in these four walls. Boy, it's just amazing. I -- I am absolutely in shock. I tried to explain to people what your actions were and who you were. And I found myself just absolutely -- it was unbelievable -- trying to describe how each and every one of you make your decisions. I just want to say thank you to Hannah, Gerry, and certainly Allen, for trying to bring TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 26 of 43 some sort of common sense to the decision-making that's been done over the past couple months. And just like one of -- somebody else had just said -- you know, I'm watching Peggy McMahon right now absolutely not pay attention while everyone else has your eyes focused and listening to what's going on. The arrogance level is appalling. The narcissism that three of you up there have created within our town, you are to blame for. And all your followers that are writing stuff -- not only online -- but out there talking about -- you guys have caused your own problems. I took time to go to your civility meeting last -- the last one you had. And let me tell you something, you are more than hypocritical. It's appalling what you tried to push in that meeting. And for you to sit up here and preach -- you guys are supposed to be representing the residents. And you haven't done that. You haven't done that. I'm sorry. These three are listening, Hannah, Gerry, and Allen. And right, wrong, or indifferent, how it's presented to the actual public, I'll tell you what -- it's time for a change, you guys. It would be nice for you gracefully to step down. Ginny, you've served the town well, but it's time. So it's time for a change. And Brenda, I -- I -- there's no words for what has happened with you. I -- I -- I don't know what to say without absolutely not understanding what collectively -- or the three of you -- have come up with. And -- but it's not representing the constituents that you -- that elected you. And it's wrong. It's wrong. So thank you. TOWN CLERK: That is it, Mayor, no more cards. MAYOR DICKEY: Thanks, Angela. Our next item is our -- SKILLICORN: Can I ask another question? MAYOR DICKEY: Oh, yeah. SKILLICORN: Aaron -- and maybe assistant -- stepping-in town manager. Is there something we can do on the dog off-leash ordinance to get that gentleman rectified? ARNSON: Mayor and Council, there is. I was taking a look at the ordinance section. So maybe some of the confusion is that the -- it is a city ordinance -- the prescribed penalty is a misdemeanor. So it may just be something as simple as changing the prescribed penalty to default to a civil instead of -- instead of a criminal. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 27 of 43 SKILLICORN: So how do we get ahold of him to -- UNKNOWN: Can I say something? MAYOR DICKEY: (Indiscernible). UNKNOWN: May I say something about the subject real quick, please? ARNSON: That's up to the mayor. UNKNOWN: I'm a dog behavioralist. I didn't know that this was going to be (indiscernible). MAYOR DICKEY: Okay. UNKNOWN: Just two seconds, please. Thank you so much. Thank you. I'm Amy and I am a dog behavioralist. And I have to say something about that ordinance. I don't -- it's not really very clear. But if you need a second, an eighth, a thousandth person to vote on this, you've got my vote on that. Because dog bites are really unfortunate -- and they're not to children, they're not to mailmen, but they're to people being attacked because, number one reason, are dogs not able to be called back by their owner. We're very lucky he's able to have a dog so well trained. You have three owners. One dog that's so well trained, they wouldn't do anything without their master saying go. The other one is a dog pulling you, we've seen all that going on. Well, the other one is kind of, oh, let me make a choice. But the fact that he was able to control his dog, I applaud him on that. But let's just get that ordinance taken care of because a dog bite is a $9,000 fee that's to be one, it's under law. Mr. Arnson can look it up. It's a very popular lawsuit -- maybe it's 12,000. But it's so-so important. In my neighborhood, we have eight people who lead their dogs without a leash. And it's really very sad. Because I have to watch for my dogs and it's not appropriate. So the sooner -- MAYOR DICKEY: Thank you. UNKNOWN: -- we can get that posted. MAYOR DICKEY: Appreciate it. UNKNOWN: Sure. MAYOR DICKEY: And one thing, part of the question is too is like what's off -- off-leash TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 28 of 43 versus, you know, on -- what was the other one -- SKILLICORN: Dog -- dog at large. MAYOR DICKEY: At large, yeah. SKILLICORN: Dog at large, yeah. So is there a way for us to get ahold of him and get that straightened out, do you think? Okay. ARNSON: Yeah. SKILLICORN: All right. Thank you. ARNSON: Yeah, Mayor. I don't think an ordinance needs to be retro-active, but I think the intent could be clearer from a prosecution side. MAYOR DICKEY: Thanks. And I also forgot to ask if anybody wanted to respond to any of the comments in call to the question -- I mean, call to the public. Wishful thinking. KALIVIANAKIS: Thank you, Ms. Mayor, that's very considerate. I appreciate that. Just say a couple very brief words regarding this 1487 action. Alex Kolodin did call me before they filed it and I did a review of it. It's going nowhere. It's -- we have a reasonable amount of time to fill that seat. But the thing I did want to call the attention to is the last town council meeting, the only person on this (indiscernible) that wanted fill the seat and reached out to former community leaders and trusted business leaders to put somebody in the seat -- that was hoping to get a 6-0 vote on -- I was vilified by Councilwoman Toth and Councilman Friedel -- claiming that I was going behind the back of this council. I was doing my job. Had -- had they followed my lead, they would have never filed the 1487 action because we would have been pursuing -- which I was doing because that is my job -- FRIEDEL: It's not your job. KALIVIANAKIS: It is my job, Gerry, because it's a job of the Council. MAYOR DICKEY: One at a time, please. KALIVIANAKIS: So anyway, that's what I wanted to state. TOTH: I was mentioned by name, so I'll be responding to that. The reality is, is that Gayle Earle won the election in the primary. You're getting a lot thrown in your face to distract you, but the reality is, is that Councilmember Kalivianakis voted no to fill the TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 29 of 43 seat. Were there interviews to potentially bring someone who had not been chosen by the people allegedly -- and Councilmember Kalivianakis claims that -- that person was never brought forward to this Council. I was never aware who that person even is. They were not brought up in a motion. The decision of this Council was to leave the seat vacant, period. FRIEDEL: It's the Council's role -- not yours, Brenda. And -- and there's a process for that and it's called for the interview and applicants. None of us knew anybody. How many people did you talk to? We don't even know. So it's the Council's role, not you as an individual. KALIVIANAKIS: But I am on the Council, Gerry, and it is my role. And I was doing my -- my job. FRIEDEL: I'm sorry. We're going to have to -- KALIVIANAKIS: And doing my job well, by the way. FRIEDEL: -- agree to disagree because it's the role of the Council, not you as an individual. TOTH: If you were simply doing your job we would know who that person was. So -- MAYOR DICKEY: We do have -- we have several processes for filling vacancies, including not filling one. And that's what happened. At the meeting, anybody could have said, well, let's do an interview process or put out a request for interest. There was an article from 2018 that I just looked up, which had all six times this ever happened -- I don't know about ever -- but six times that it happened fairly recently. And in some cases, we did put out -- had people come, had public -- even had a public, you know, forum kind of a thing. Obviously, there was a little bit more time. And just for the record, when I was -- when I was appointed, I had won in -- we did the March and May elections in those years. And I had won in March. The three people had won straight out, so that was decided. But the key to the 1487 part of it, is that that was a vacancy for almost a year. And now, Senator Kavanagh was on that same council that didn't fill that vacancy from May of 2005 until April of 2006. So it's always been something that we were able to do, is to not fill a vacancy, so. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 30 of 43 And we've done it different ways. We had -- when we appointed Councilman Kavanagh -- and I think Gerry -- we -- those were after elections that weren't successful. When we appointed -- oh, I'm forgetting. But anyway, we've done it where people have won, we've done it where people didn't win. We've done it -- opened up to the whole community and we've left them vacant for a year. So we've done it all. And I just want to set that straight because of this 1487 discussion going on. TOTH: May I ask a question? MAYOR DICKEY: Yes. TOTH: Was that ever after a primary when we have someone who's about to fill the seat? MAYOR DICKEY: Since when? TOTH: Have we ever left a vacancy after an election where someone is due to fill the seat? MAYOR DICKEY: I don't know, I would have to check. But -- KALIVIANAKIS: (Indiscernible). TOTH: Because there was no -- MAYOR DICKEY: -- it doesn't really matter. You don't know that. But -- and again, if you want to -- and -- and not to put a big focus on you, but, you know, 4,000 votes, we had an election, 10,000 people voted. Some of us take things differently. And that's what happened. And we only have a couple more meetings to go. And I think we'll be fine. Anyway, let's move on to the consent agenda, please. Can I get a motion? MCMAHON: So moved to approve. KALIVIANAKIS: Second. MAYOR DICKEY: Roll call, please. TOWN CLERK: Councilmember Toth? TOTH: Aye. TOWN CLERK: Councilmember Friedel? FRIEDEL: Aye. TOWN CLERK: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 31 of 43 SKILLICORN: Yes. TOWN CLERK: Councilmember McMahon? MCMAHON: Aye. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. TOWN CLERK: Yep. MAYOR DICKEY: Thanks. I'm sorry, I cut you off. TOWN CLERK: It's okay. MAYOR DICKEY: Our first regular agenda item is services agreement about the washes and -- Justin. Thank you. WELDY: Madam Mayor, Councilmembers. Wash maintenance in one form or another began shortly after incorporation. As the town has moved forward with technology and other innovations, so has the wash maintenance. There are a few things that have remained standard. In the beginning, the intent was that they would maintain the areas where we had under-road crossings or over the road low-flow crossings to keep material and sediment out of those areas to prevent any flooding issues. There have been a couple of minor changes to that included, but not limited to, the eradication or the attempt to eradicate non-native species, primarily all the different species of palm trees. And another one that is a challenge is saltcedar. Taking all of that information into consideration, we -- in the past, the town had three different types of contracts related to washes and/or drainage slivers and/or dams. Staff has not been before the Council in approximately eight years to discuss wash maintenance contracts because there was a long-term five-year contract. And then there were some issues related to that agreement. The pandemic affected that. And coming out on the other end, we simply had to terminate the agreement. During that timeframe, staff worked with the town management, legal counsel, stakeholders, and developed a plan that would allow us to bring all of the three different types of TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 32 of 43 drainage, wash, and dam maintenance together for one contract. That's what we are here to discuss tonight. I've put together just a short PowerPoint to point out a few things. It's important to note that wash maintenance is not come in and clear-cut everything and remove all of the vegetation, native, or non-native, or invasive species. The intent of wash maintenance, which can be viewed in the ordinance referenced in the -- in the staff report, is to ensure that we have adequate drainage primarily and also mitigation measures related to the potential or the possibility of wildfires. We're going to spend just a moment to discuss fires. The direction from the chief in the back of this room and the fire marshal, is that we help to eliminate or minimize ladder fuels. Ladder fuels are the shorter, more combustible, organics that are near the surface of the wash, that allow a fire to spread quickly. And then they -- they -- those ladder fuels use wind to climb the trees and stuff like that, obviously, and rage out of control. This is a map of all the town-owned washes that we are responsible for doing maintenance in. It should be noted, there are several washes within the town limits that are privately owned by homeowners associations, neighborhood associations, and/or golf courses. We are not responsible for any of the maintenance related to that. But we certainly share our expertise as does the fire department share theirs. MAYOR DICKEY: (Indiscernible). SKILLICORN: Thank you, Madam Mayor. Director, the color-coding; does that have any significance? WELDY: Initially, it did. What it's -- what it's primarily doing is identifying locations where we would have gone and worked in the past and considered that a single project. It also helps to identify the named wash in that area. As you can see, we have just over 200 acres of washes. That's a considerable amount of open space to maintain. I'm giving everybody just a moment to look at that map before we move on. This right here is a graph that we developed with support from the fire chief and the fire marshal. And the reason we're showing this tonight is over the past TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 33 of 43 several months -- but certainly over the past few years -- people call and are -- share their concerns related to the fire dangers and materials that are growing in the wash. This right here show the defensible space. A defensible space is 30 feet from the inhabited dwelling. There's some miscommunication related to 30 feet from the fence or 30 feet from the front set back or the back set back. No. In fact, it's 30 feet from the -- the dwelling -- the occupied dwelling. When we come in and do wash maintenance, if there are materials that are hanging over back walls and fences that are actually on the town's property, we will take some measures to eliminate those. But oftentimes, we don't. We also do not clean, cut, or remove the majority of the material that is on the slopes. The primary reason for that is we need that vegetation and those trees to help stabilize the slopes for not only runoff in the channels, but runoff from adjacent properties. This particular item is budgeted. And this is just a little clip from the town's adopted budget, which is online. This is funded from the environmental fund. This is the last year that the environmental fund will actually be identified as that. Next year, the majority of it, if not all of it, will move to public works. And each of the segments and/or projects or associated fees from the environmental fund will become a separate supplemental ask from the Public Works Department to additionally the town manager and eventually the Mayor and Council. We have a considerable amount of money in here just for this purpose. Not only for wash maintenance, it also handles all of our other environmental requirements that are mandated either by the state or the county. It also helps us to support our household hazardous waste event and our electronics recycling event. With that, if there are any questions, I will do my best to provide an answer. MAYOR DICKEY: Thank you. I'm going to ask if we have any speaker cards first. TOWN CLERK: Mayor, the town received one written comment with a position for. MAYOR DICKEY: Okay. Thank you. TOWN CLERK: That's it. Sure. MAYOR DICKEY: Questions for this item? Councilman? TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 34 of 43 FRIEDEL: Thank you, Madam Mayor. Director, I don't know if you saw that written comment that had been mentioned. You know, fire and, you know, invasive species. I know specifically we're not looking for invasive species, but that's something -- I don't want to add to the scope of this, but that's something that we also should communicate to the -- to the vendor -- is that part of this, you know, invasive species, a lot of times (indiscernible) that's something we want to, you know, be aware of and try to eliminate as much as we can without changing the scope of the contract. WELDY: Madam Mayor, Councilmember, that is clearly spelled out in the scope in work. It was included in the scope that was released in the bid and it's also in the contract document and the agreement related to that. I think it's important to noted -- note -- and that was a -- that was a good question -- that town staff will be monitoring the activities of this wash maintenance every day. And this is not a year-round activity. Because of the environment that we live in, washes oftentimes have creatures and snakes and other things in them that are very, very active during the summertime and can be easily startled. Oftentimes, if you're walking in one of the washes, you may not be able to see three or four feet -- maybe ten feet -- in front of you. Imagine if chainsaws and chippers and stuff were running, you also cannot hear. So it's typically around October, November until March or April -- occasionally we'll go into May -- but very rarely, it's all dependent on temperature. So it's a -- it's a part-year project. You're welcome. SKILLICORN: I'd like to move approval of professional services agreement 2025-030 with the Top Leaf Services -- MCMAHON: Second. SKILLICORN: -- in the amount of 210 -- MCMAHON: Sorry. Second. MAYOR DICKEY: Thank you. Roll call, please. TOWN CLERK: Councilmember Friedel? FRIEDEL: Aye. TOWN CLERK: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 35 of 43 SKILLICORN: Yes. TOWN CLERK: Councilmember McMahon? MCMAHON: Aye. TOWN CLERK: Councilmember Toth? TOTH: Aye. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Aye. TOWN CLERK: Motion passes. MAYOR DICKEY: Thank you. Thank you. Our next item is, I'm assuming, Chief Ott to come and talk about an agreement with the Town of Gilbert. OTT: Good evening again, Mayor and Council. I'm usually used to Rachel kind of giving a little background in there. But I'll take it from here. We've got a -- before we used an IGA with the Town of Gilbert for the use of their public safety training facility which is a fairly new facility. It's kind of state of the art. It's big, it was -- when Paul Mood was here, his buddy was running the project and I got updates from him quite frequently on it. It's a -- it's a beautiful facility. And this IGA allows us to go down and train -- part of our regional training options. It will also afford the option to be able to run people -- candidates that we have -- through a new regional fire training academy when that time comes -- when we start hiring new employees. It will also open up medic school training for us, as well as just other day-to- day training at their facility. It's kind of one of those pieces that needs to be in place so that we can be on their property and have our people there taking advantage of the good quality of training that's provided there. So the cost for additional training is -- is -- if we were sending a recruit to a fire academy -- is in line with the other regional training facilities. This is -- we'll have one more IGA for training coming to you and that will be with the City of Scottsdale. This month, I believe, they are opening their revamped training facility, which is down off the TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 36 of 43 101 and basically Scottsdale Road, kind of in that area. Again, it's -- they've done a marvelous job on that. It's going to afford a lot of opportunities to us. So we've got things that are relatively close to us with the Mesa facility, the Gilbert facility, GRPSTC from Glendale -- which we signed a IGA earlier this year on -- it's a little bit farther, but they also have a good quality training, that sometimes is only available at those facilities. So we are looking to get this one signed and in the book and we're winding down on -- on the agreements and IGAs with the -- our local municipalities to kind of keep us rolling and -- and keep all our opportunities open for us. So I would appreciate you. MAYOR DICKEY: Thank you. Do we have any speaker cards? TOWN CLERK: No, we do not. MAYOR DICKEY: Thank you. Let's see. Who's first here? Councilwoman. MCMAHON: I was just going to make a motion to approve. KALIVIANAKIS: Second. MAYOR DICKEY: Thank you. Roll call, please. TOWN CLERK: Councilmember Skillicorn? SKILLICORN: Yes. TOWN CLERK: Councilmember McMahon? MCMAHON: Aye. TOWN CLERK: Councilmember Toth? TOTH: Aye. TOWN CLERK: Councilmember Friedel? FRIEDEL: Yes. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Aye. TOWN CLERK: Motion passes, 6 to 0. MAYOR DICKEY: Thank you. Thanks, Chief. Next two items are related. And I think -- TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 37 of 43 Angela I might be calling on you for this. TOWN CLERK: Yeah. Yes. Yes, Mayor and Council. As you know, Rachel Goodwin is unable to be here tonight. So she asked me to pitch-hit on this particular item. So as many of you may not know, the Sister Cities Advisory Commission was formed in 2016. And it was formed in an advisory capacity just to support the Fountain Hills Sister Cities Corporation. Over time, our locally based Sister City Corporation has taken on most of the programs, operational responsibilities. Effectively, they are overseeing the day-to-day operations and strategic direction of the Sister Cities Program. So the role of the commission has become largely redundant. So on Wednesday -- on Wednesday, September the 18th, the Sister City Commission voted unanimously to approve the sunset of the body. And one reason why is because many of the members serve both as commissioners and on the corporation board. And they do supporting of the streamlining efforts. So the town will continue to support the efforts of Sister Cities, meet regularly with the governing board and -- and continue to maintain those close relations with the corporation and our sister cities around the globe. So any questions? MAYOR DICKEY: Sounds good to me. Do we have any speaker cards? TOWN CLERK: No, we do not. MAYOR DICKEY: Thank you. I just want to point out that we thank Zarrin Caldwell, Lisa Ristuccia, and Bev Tall who are the remaining members. There were four vacancies. And we want to thank them for their service and I think we'll be doing something at our next meeting for them. And could I get a motion? KALIVIANAKIS: Yeah. Motion to adopt resolution 2024-39. MCMAHON: Second. MAYOR DICKEY: Thank you. Roll call. TOWN CLERK: Councilmember McMahon? MCMAHON: Aye. TOWN CLERK: Councilmember Toth? TOTH: Aye. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 38 of 43 TOWN CLERK: Councilmember Friedel? FRIEDEL: Aye. TOWN CLERK: Councilmember Skillicorn? SKILLICORN: Yes. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Aye. TOWN CLERK: Motion passes 6 to 0. MAYOR DICKEY: Thank you. Did we need a further explanation of the next item? It's just basically taking it off of the books. TOWN CLERK: Correct. MAYOR DICKEY: Do we have any speaker cards on that? TOWN CLERK: We do not. MAYOR DICKEY: Okay. Does anybody have any questions? Councilman Skillicorn? SKILLICORN: I was just going to make a motion to approve, Mayor. MAYOR DICKEY: Okay. KALIVIANAKIS: Second. MAYOR DICKEY: Thank you. Roll call, please. TOWN CLERK: Councilmember McMahon? MCMAHON: Aye. TOWN CLERK: Councilmember Toth? TOTH: Aye. TOWN CLERK: Councilmember Friedel? FRIEDEL: Aye. TOWN CLERK: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. TOWN CLERK: Councilmember Skillicorn? SKILLICORN: Yes. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 39 of 43 TOWN CLERK: Mayor Dickey? MAYOR DICKEY: Aye. TOWN CLERK: Motion passes 6 to 0. MAYOR DICKEY: Thank you. TOWN CLERK: Thank you. MAYOR DICKEY: There's going to be an event on the 12th of October. So if you're interested in looking -- that's going to be for all three Sister Cities -- and it's at fountainhillssisters.org. You can get the information for that. I think -- so we talked about the off-leash thing. So I don't think there was anything else. Yes, Hannah? TOTH: Considering the new information of the complaint and potential investigation by the Attorney General, I would like the Council to reconsider filling the vacancy in order to not risk losing state-shared funds. MAYOR DICKEY: I'll have to ask Aaron about that because is that considered a reconsideration of a -- of a vote? ARNSON: Yeah. So the reconsideration -- the time for that at least -- for reconsideration of the item proper, can't happen. What we can do as an alternative -- and this up to the Council to decide whether you want to have it or not -- is to obtain advice and counsel in executive session for one, what your options are, because that would clear legal advice that you might want in light of this. And potentially, agendize that for action to direct staff. So that would be my suggestion. TOTH: Okay. To be clear, the reconsideration that doesn't matter with new information, such as a legal threat? ARNSON: Well, I mean, if the Council wants to take that step after getting advice and counsel, then sure. TOTH: Sure. ARNSON: I'm just telling you that absent the Council learning -- you know what I mean -- what your options are, that would be my suggestion. TOTH: Okay. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 40 of 43 ARNSON: Okay. TOTH: I'm for it. ARNSON: Okay. TOTH: Do I need a second? MAYOR DICKEY: No. We can do that. We'll do -- TOTH: Okay. MAYOR DICKEY: -- we have a -- I think we have an executive session already for that night. ARNSON: Yeah. MAYOR DICKEY: So we can just add this, I think. ARNSON: We can. Can you give me one second, Mayor? MAYOR DICKEY: Yeah. Sure. ARNSON: Yes. MAYOR DICKEY: Yes what? No. Okay. ARNSON: Yes. We have an executive session that night and we could add -- MAYOR DICKEY: And we can add this. Okay. ARNSON: Yes. MAYOR DICKEY: Councilman, did you have something? FRIEDEL: Madam Mayor, just a clarification. Are we -- you know, obviously we have the executive session part. Are we going to add that as an agenda item? ARNSON: So we're -- so at least we're adding the executive session. If you want to put on -- I'm trying to think of how to do this -- because we -- the rules say that you have ability to reconsider. It has to be done, one, within a certain period of time. And two, it has to be someone who, you know, voted to the contrary position wanting to change their minds to reconsider it. Right? That's in our rules. So that's what I'm -- I'm trying to make a way that we can one, talk about in e-session. And if there's direction to be given to staff as a result of that, to have a public agenda item for that purpose. Is that what your question is, Councilman? FRIEDEL: Well, Madam Mayor, Attorney, is that specifically laid out in our rules that it TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 41 of 43 has to be reconsidered or is it -- I mean, can it be considered it a new agenda item? ARNSON: No. It's specifically laid out how motions are reconsideration work. TOTH: So I suppose the question would be is anyone who voted in that way willing to reconsider? KALIVIANAKIS: And if I may just do a point of order. The time to do a motion to reconsider has lapsed. ARNSON: It has. Yes, it has lapsed. MAYOR DICKEY: I think we can have an executive session to discuss the 1487 and then we can put something on the agenda that would -- we'll figure out how to put the wording. But that would be possible action-related to what we hear at the -- ARNSON: That would be -- that's what I'm trying to get at -- MAYOR DICKEY: Yeah. ARNSON: -- right? Is if you're going to -- if we have a discussion in executive session and it's hey, here are your legal options in light of a 1487 complaint or whatever it is, right -- your options are A, B, and C. And then there's direction from the Council, which frankly, I would recommend that direction be given in a public meeting, right, so that we can all be on the same page about exactly what's happening, then we can have that be an agenda item and we can proceed accordingly. That's what I'm trying to get at. I'm not trying to mince words or talk around the issue. I don't know exactly how to word it otherwise until we know what direction is going to be given. And then we say direction and possible action regarding, subject matter discussed in executive session. TOTH: Then I suppose my original statement slightly changed -- ARNSON: Yeah. TOTH: -- still stands that I would like for an agenda item on the next regular agenda -- ARNSON: Yeah. TOTH: -- following our executive session. MAYOR DICKEY: As long as it's not the same, I think. We can't bring it back for reconsideration. ARNSON: Right. TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 42 of 43 MAYOR DICKEY: It has to be something that comes to light -- ARNSON: If it's different than -- MAYOR DICKEY: Right. ARNSON: -- then that's a different story. If it's the same, it can't just be -- it can't be repeated again because that's the whole point -- MAYOR DICKEY: Right. MCMAHON: But also -- ARNSON: -- with difference on reconsideration. MAYOR DICKEY: Okay. MCMAHON: Also given what you said, it has to be from someone who opposed it. MAYOR DICKEY: Not anymore. TOTH: Not anymore. MCMAHON: No? ARNSON: Not if it's a different agenda item. MCMAHON: Okay. So it's -- we'll have to go -- we're going to into an executive session first to discuss it, correct? ARNSON: Yes. MCMAHON: Thank you. ARNSON: Um-hum. FRIEDEL: And Madam Mayor, there is another avenue is that the -- this Council could change that rule. ARNSON: Yep. FRIEDEL: And that would just be a simple majority. And I don't want to risk $5.1 million at all so that's something that -- I mean, we have another nine days or whatever before we need to make that decision. But I think that that -- we should have that discussion. MAYOR DICKEY: I don't think the -- the vote for reconsideration is a local ordinance. Isn't that something that's true everywhere? You can't have something reconsidered unless you were on the prevailing side. ARNSON: Yeah, it has to -- well, if we follow Robert's rules and whatever the list of TOWN OF FOUNTAIN HILLS OCTOBER 1, 2024 TOWN COUNCIL MEETING MINUTES Page 43 of 43 parliamentarian things is in our code, then yes, it's -- that's what we do, right? Because otherwise, someone who voted against or in the negative, can be the one to just advance any agenda item, right, and keep bringing it back? MAYOR DICKEY: I think we all get what we want to try to do here. So we're good. Anything else? Thank you. We're adjourned. Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on October 1, 2024, at 7:00 p.m. TOWN OF FOUNTAIN HILLS _______________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________________ Angela Padgett-Espiritu, 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 1 day of October 2024. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th day of November 2024. _____________________________ Angela Padgett-Espiritu, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL October 15, 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 Hannah Toth; Councilmember Allen Skillicorn Staff Present: Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Angela Padgett-Espiritu TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 1 of 72 Post-Production File Town of Fountain Hills Town Council Meeting Minutes October 15, 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 OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 2 of 72 MAYOR DICKEY: Good evening, everyone. Welcome. Please stand for the pledge, and remain standing, if you like, 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. Tonight, we have Rev. Cathy Northrup from Community Church of the Verdes. Hi. NORTHRUP: Good evening. Would you bow your heads with me? Let's pray together. Almighty God, we know that you are present everywhere, but we pause to invoke a special measure of your presence at this Town Council meeting tonight. May your spirit descend upon us now, and may it quiet each person here. May it unite each person with each other. May it calm any anxiety within us, quell any frustration we feel, instill in each of us any voice but yours, the voice of reason, of grace, and of wisdom. May we be slow to speak and quick to listen. May we discern wisely and well. May we each be blessed by this time together, and may the Town be blessed as well. Hear this, our prayer, in Jesus' name. Amen. ALL: Amen. MAYOR DICKEY: Thank you. Roll call, please. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Here. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Here. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Present. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Here. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Here. PADGETT-ESPIRITU: And Councilmember Skillicorn? SKILLICORN: Here. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 3 of 72 PADGETT-ESPIRITU: Anyone wishing to address the Council regarding items listed on the agenda or under Call to the Public should fill out a request to comment card located in the back of the Council chambers and hand it to the Town Clerk prior to consideration of that agenda item. When your name is called, please approach the podium, speak into the microphone, and state your name for the public record. Please limit your comments to three minutes. It is the policy of the Mayor and Council to not comment on items brought forth under the 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 very much, Angela. Just before we get started, I wanted to say that item 9A regarding the appointment process, the 1487 challenge, was only allowed to be listed on the agenda if the challenge had required further discussion and decisions, and since the 1487 statute didn't apply in this case, the item will not be heard, but if anyone who had planned to speak to it would still like to, the -- we would have the Call to the Public. So just wanted to let you know before we got started. And as always, we start with our reports by our Town Manager and our Council. Rachael. GOODWIN: Mayor, Council, good evening. Good evening, everybody. It's been a busy week around Town Hall. There's a couple of things I wanted to highlight. First, I wanted to welcome one of our newest staff. Today is day number two for Mike Pelton back there in the back. Mike joins us. He is our new community relations director, so you are going to be seeing quite a bit of him and his handiwork. So we're excited to have him. So welcome, Mike. One of the biggest programs we have going on is this Saturday. It's our annual Make a Difference Day. For those of you who are joining us, thank you. We appreciate it. There are more than 400 volunteers that contribute over 1,800 service hours on Saturday alone. It's a really big day. We have 38 residential projects as well as a number of projects around town, including Desert Vista Park, Fountain Hills High School, as well as here on the Town Hall campus. We'll have opportunities at the Community TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 4 of 72 Center to make cards for our -- holiday cards for our seniors as well as write letters to our veterans. So there is plenty of opportunity to be involved. And a reminder that Make a Difference Day is a great opportunity to strengthen the ties in our community and address needs, and in short, we can all make a difference. So I look forward to seeing many of you there on Saturday. And then a reminder that next Saturday, the fun doesn't stop. It will be our Spooky Blast. We'll be celebrating Halloween over at Four Peaks Park next Saturday. It is a darn good time. It is usually packed with kids and candy and fun. But we could still use a few volunteers, so if you're around and want to join us, I know the staff would love to have you, and you can volunteer through Kim Wickland, our volunteer coordinator. With that, that's my update. MAYOR DICKEY: Well, thank you. Councilwoman Toth? TOTH: Well, hello, Fountain Hills. I dressed to theme, kind of. Ballots are out. If you haven't received it yet, I did speak with the County Recorder. He says there wasn't any delays in mailing them, so you should have them by tomorrow or Thursday. Make sure your voice is heard this election. And I just wanted to make sure everyone is aware of these deadlines. If, on tomorrow or Thursday, you did not receive a ballot and you did want one, there's still time if you log into beballotready.vote to request a mail ballot by the October 25th deadline. Please remember to drop your ballots either in the mail or here at Town Hall by October 29th. This is extremely important to ensure it is received by 7 p.m. on Election Day. October 25th also begins the early in-person voting. That's going to be at the Methodist Church in town. It will not be at the Community Center or Cornerstone. If you'd like to wait until Election Day, just do me a favor and, like, check your tires, like, the 1st or the 2nd, make sure that you're good to go. But we'll see you at the Community Center, Methodist Church, or Cornerstone Church on November 5th. On a personal note, please do not hesitate to contact me should you need any help, wanting any advice. You all know where I stand. There's no secret what bias might be there, but I'm more than happy to offer myself as a resource. I literally spend day and TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 5 of 72 night researching these things, so if you need help on judges, propositions, if you want my advice, please reach out. If you don't, then don't. Thank you. FRIEDEL: Thank you, Mayor. Recently, I attended the Domestic Violence Regional Council [sic] where we heard from some survivors, and it's -- it was very heartbreaking, and it's just very important to know that their voices are very important. So again, Wednesday night, our fountain will be purple in honor of remember domestic violence in our town. Please support the cause. I attended a ribbon cutting for Healthy Heartbeats here in town, Debbie and Al Romano. And Debbie's got a new cookbook out. It's very healthy and very -- some very good recipes in there, so check that out. I also had the privilege of attending the October 7th memorial service of the terrorist attacks against Israel over at the Chabad here in town, and that was very, very heartbreaking, some of the videos that we saw. And so we are in full support of Israel in the Town of Fountain Hills, so again, I was honored to be there. And as Rachael mentioned, Make a Difference Day. I look forward to volunteering again and helping on one of the projects here in town. So that's this Saturday, so if you're available, come on out and join us. Thank you. MAYOR DICKEY: (Indiscernible). MCMAHON: Good evening, everybody. I was able to attend the Chamber's successful Health Walk this past weekend and helped to host the Town's Dementia Friendly table. It was very interesting, and a lot of people came by. Also, I was fortunate today to be able to attend a business retention on-site visit with Dr. Jay from our Fountain Hills schools, also with Betsy from the Chamber, and of course, Amanda Jacobs, our Economic Development Director. And there are a lot of successes going on at our schools, very -- and very, very impactful for our kids in a positive way, and there'll be some great announcements coming up in the future. Also, I will be also attending the Make a Difference Day, and in fact, we're usually assigned cleanup at the high school, which is a lot of fun. So anyway, you know, there's so many things going on with Spooky Blast and TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 6 of 72 everything, so, you know, I hope you guys all attend that because that's always a very special event. Thank you. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. It's good to see you all tonight. Thank you for coming. For you people at home, we have a really nice turnout tonight, which is always wonderful. I'd like to greet the people on Cox Channel 11, YouTube, livestreaming, and of course, live here in the audience. Meaningful forms of citizen engagement and social accountability can result from better governments, which means open dialogue and mutual respect. So I appreciate you all being here so we can dialogue and make our town the best it can be. I share the thoughts with Gerry. I stand with Israel. On the 6th of October, I posted something publicly. Some of the people said that it would be nice if you -- if you could read that at the Town Council meeting. So in honor of those constituents, my sentiment was one year ago tomorrow, on October 7th, Hamas and other armed Palestinian groups launched an unprecedented attack on Israel from the Gaza Strip leading to at least 1,189 deaths and the abduction of 251 people, including 44 seized from the Nova Trance Music Festival and at least 74 from the Kibbutz Nir Oz community according to Israeli figures. Let's please keep Israel in our prayers. They've been under siege for over a year, and I just can't imagine what it would be like to be living there today. So I pray for them. I am also on the Public Safety, Military and Courts Commission [sic], which I really love being on. Being on that commission, it broadens the horizon from doing local politics and nonpartisan potholes and infrastructure, and it -- they involve themselves with international, national, and statewide affairs. And so it's a great fit for me. I love being on that commission. This week, we're going to be covering 2024 elections and the foreign influence on our American elections. It's a -- it's a real issue with foreign governments trying to tilt the scales one way or another, so it's something that we always have to be meaningful, we always have to be aware and pray that our government officials are watching out for TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 7 of 72 foreign invaders to coming here and trying to manipulate our elections. Lastly, I will be, also, at the Make a Difference Day this weekend. I've got the really great task of visiting all the different sites and providing food and snacks and thanking them for participating, and so I'm really looking forward to that, maybe taking some pictures. And there's going to be a website that you can go and look at all the pictures of people making a difference. So thank you, Ms. Mayor. That's all I have. SKILLICORN: Thank you, Madam Mayor. Hey, I want to acknowledge there's -- I see some guests here in the crowd. Actually, welcome to our meeting tonight. But I see students. Feel free to stay after your recognition. You can stay for the whole meeting, if you like. You're very welcome. But I also see some Italian flags there, and I see Steve. I want to just say, you know, thank you for coming. I know you have your proclamation tonight. You know, I do see there was -- over in Scottsdale, they're having, like, an Italian festival. BAGGIO: (Indiscernible). SKILLICORN: I know. Wouldn't it be nice if it was Fountain Hills, right? So on that, you know, there's a couple other things that are going on. Last Friday, I did happen to stop by the Falcons football game. There's another one this Friday. And the evenings are so nice temperature-wise. It's nice to get out and enjoy that. And a couple other things. I know Rachael mentioned Spooky Blast on the 26th. If anyone has a little too much candy, the next day, there is a hiking challenge -- or for the month of November, there's a hiking challenge, so go ahead and go to the experiencefountainhills.org website to check that out. That's all. Thanks. MAYOR DICKEY: Thank you. So you can see, obviously, the weather changes is what makes us start getting a lot of action here. I got my fall shirt on, so I figure we -- finally, we're going to get some good weather. The 23rd annual Arizona Cities and Towns Week is October 13th through the 19th, so it started on Sunday. Cities and Towns Week is set aside each year to recognize the services cities and towns provide as well as honor elected officials, staff, and volunteers TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 8 of 72 who serve in municipal government. More information at azmag.org [sic] and at our site. And speaking of volunteers, again, I want to thank for Kimberly Wickland and for Rachael and all of the staff and, obviously, all the people that come out and do it, and I do appreciate that. Vice Mayor will be -- I usually get it off easy because I do a little bit at the high school, but then I get to wander around and say hi to everybody, but I'll be at my 50th high school reunion, so I won't make it this year, but she's going to be doing that for me. But we really sincerely thank everybody for doing it. I'm just going to say what I'm doing because we have a lot of Stellar Students and proclamations and stuff, so I'll just set -- kind of set the table, and then we'll do it. So we'll do the Stellar Students. I read your -- read what your teachers say about you up here, and then Angela will give you your certificate when we're all done, and I'll come down there, and we'll take a picture of all the kids for the paper. And then while I'm down there, we will do recognition for our Sister Cities commissioners who -- to thank them for their work, then I will be doing proclamations. So one of the proclamations I was going to do -- I'm not going to actually do the whole thing, but I do want to announce that it is Energy Efficiency Month, as requested by Valerie Shaffer and Jen Springman from Horizon Strategies, which is -- they have colleagues there, including Jessica Pacheco, who was with the Arizona Chamber, and past Gilbert mayor, Jenn Daniels, and they do this on behalf of businesses and organizations. They could not be here, but they do call upon residents, businesses, and organizations to join in the effort to make our community more energy efficient. By working together, we can create a brighter, more sustainable future for generations to come. Apropos today. Italian Heritage Month. Steve Baggio will be coming up, as he mentioned at our last meeting. So my family name is Russo (ph.), which is kind of the Smith of Italy, and so I'm very happy that you're going to be doing this. We'll be lighting the fountain green, white, which is easy, and red on Thursday, October 24th. And then after we're done with that, Councilwoman Peggy McMahon, who is a member TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 9 of 72 of the Fountain Hills Coalition, will be presenting the Red Ribbon Week proclamation to Jackie Needham of the East Valley Young Marines. So we're going to start with the Stellar Students. So I'll say your names. You come on up, and then stay here, and then we'll take a picture. So we have a Little Falcon this time, Emma Marcetta. Is Emma here? Emma? Come on up. Heard that little "yes". "Emma is a pleasure to have in class and is so eager to learn new things, and she's always lending a helping hand to her classmates." Mom and Dad -- everybody can stay up here with you. "She's kind, responsible, safe, and respectful and really exemplifies the Falcon way. " Emma Marcette, yeah. We move on to McDowell Mountain School, and we will start with Brody Braswell. Is Brody here? Come on up, Brody. "Brody exemplifies what it means to follow the Falcon way. Each morning during playground duty, Brody takes the initiative by picking up around the school and showing great care for the appearance of our campus. In the classroom, Brody demonstrates an eagerness to learn and a strong work ethic. He's attentive and enthusiastic about mastering concepts and puts forth his best effort to create outstanding work. Brody's kindness shines through his interactions with peers and teachers making him a role model in and out of class." That's Brody. Our next student from McDowell Mountain is Isabella Garcia. Is Isabella here? Oh, well, I will read about her. "Isabella is always courteous and considerate in the classroom and with her peers setting a positive example for others. Her dedication to her studies is commendable, and she consistently puts forth her best effort and approaches each task with a strong work ethic. Beyond academics, she's a kind-hearted individual, fosters a supportive environment, and is ready to lend a helping hand. According to her art teacher, whenever Isabella is in art, she's eager to begin her projects, takes her time to ensure quality, and maintains a positive attitude. We are proud to celebrate her accomplishments and contributions to our school community." Isabella, we'll clap for you. From the middle school, Sky Madero. Is Sky here? Come on up. "I am pleased to recommend Sky Madero as a Stellar Student. I have the pleasure of teaching her this TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 10 of 72 year and have consistently been impressed with her academic abilities, her positive attitude, and dedication. Sky is a bright and motivated young individual who demonstrates a natural curiosity and a passion for learning. She's kind, respectful, and always willing to help her peers. Sky always shows the Falcon way." I see a theme here. That's Sky. Also from the middle school, Carson Adams. Is Carson here? Come on up. "I'm pleased to recommend Carson as a Stellar Student. It's a pleasure to have him in my class. He's a dedicated and conscientious student who does his best. Carson consistently shows initiative, works well independently, and collaborates effectively with others. Carson is always kind, respectful, responsible, and safe." That's Carson Adams. Last, we always do the high school. Nolan Saylor. Is Nolan here? Come on up, Nolan. All right. Now, "Nolan is someone who embodies a genuine passion for learning and a relentless pursuit of knowledge. Nolan approaches each concept with curiosity and dedication, consistently going beyond the requirements to deepen his understanding. Nolan has definitely shown himself to be responsible, respectful, safe, and kind." Nolan Saylor. And our last high school student is Jacquelyn Ahern. Is Jacquelyn here? Well, we're going to read about her. "Jacquelyn is a poised, polite student, respectful, and one of the most hard-working. I work very closely with her, and I can personally attest to her kind demeanor and her Falcon work ethic. She's always willing to help out when needed and will greet you with a smile when doing so." Let's give a hand for Jacquelyn Ahern. All right, guys. Torture's almost over. We'll look at the newspaper guy here, Bob, and smile. Now, you're famous. Thank you so much. All right. Very good. We're going to start with honoring our members of the Sister Cities Advisory Commission. And I'm going to see if Bev Tall is here. Is Bev here? Wasn't sure if she was going to make it. Well, her colleagues said this about Bev. "We would like to recognize Bev Tall, who was appointed to the Sister Cities Commission on June 2016. Bev served as Chair and contributed her time and considerable talents to the Sister TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 11 of 72 Cities Advisory Commission, and she's sincerely appreciated by Council, our fellow commissioners, and all of the town residents." So let's give a hand for Bev, who's not here. We'll get her her certificate here. So next, Lisa. I know you're here. Come on up. Come on. Come on. She's always taking the pictures, and now she's going to be in one. You can hold this, and I'll read all about you, and then just hang out and we'll get a picture. Okay? RISTUCCIA: Okay. Thank you. MAYOR DICKEY: Perfect. So Lisa Ristuccia. "We'd like to recognize Lisa, appointed to the Sister Cities Advisory Commission by the Town Council in September of 2018. During her tenure, Lisa served as Vice Chair and generously contributed her time and talents to the Commission. Her dedication to Sister Cities and the Town of Fountain Hills is evident through her many hours of volunteer service, which are deeply appreciated by the Council, her fellow commissioners, and the residents of our town." Thank you, Lisa. Would you like to say a few words and then we'll take a picture? No? Okay. I guess we'll just take the picture, then. RISTUCCIA: Thank you. MAYOR DICKEY: Thank you. You're off the hook. And is Zarrin here, Zarrin Caldwell? Come on up, Zarrin. You can say a few words, too. So here is yours. It is kind of heavy there, see. So Zarrin, "We would like to take this opportunity to recognize Zarrin Caldwell, who was appointed to Sister Cities by the Town Council in November of 2021. During her time on the Commission, Zarrin was actively involved in projects and all their initiatives. The Council and her fellow commissioners appreciate Zarrin's knowledge, dedication, and contributions to the Commission and to the Town of Fountain Hills." Thank you so much. CALDWELL: Thank you. MAYOR DICKEY: Want to say something? Oh, here. CALDWELL: No, that's okay. No, just we had a really nice Sister Cities heritage celebration on Saturday. We had music and food from Poland, Germany, and El Salvador, so that -- well, you were there, so yeah. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 12 of 72 MAYOR DICKEY: It was very wonderful, yes. And I wanted to say that out there. I forgot. But it was, like she said, music, food, dancing, or better known as a Saturday night in Fountain Hills, so it was awesome. Let's take a picture. Thank you so much for everything. CALDWELL: Thank you. Thank you, Ginny. MAYOR DICKEY: Thank you. All right. Now, we're going to do Italian Heritage Month. So you have to come on up here. I do have it, Steve, written in big writing so that you can carry this. So come on up. Nice hat. You look awesome. BAGGIO: Thank you. Thank you very much. MAYOR DICKEY: Hold that, and I'll read that. So, "Whereas the Town of Fountain Hills is proud to acknowledge and celebrate the many contributions made by the Italian- American community to the growth, development, and enrichment of our nation; and whereas, throughout its history, the United States has been home to millions of Italian- Americans who have shared the rich cultural traditions and unique heritage with our country; and whereas Italian-American Heritage Month provides an opportunity to honor the history, culture, and contributions of Italian-Americans and to honor the legacy of generations past and present who have worked tirelessly to promote and preserve Italian socioeconomic, political, and cultural heritage; whereas the Town of Fountain Hills is committed to fostering an inclusive and diverse community where all cultures are celebrated and respected. So therefore, I, Ginny Dickey, Mayor of Fountain Hills, do hereby proclaim the month of October as Italian-American Heritage Month in Fountain Hills and encourage all residents to join in celebrating the contributions of Italian-Americans to our community and nation." All right. BAGGIO: Thank you. Thank you. MAYOR DICKEY: (Indiscernible). BAGGIO: Oh, yeah. Oh, yeah. MAYOR DICKEY: All right. BAGGIO: I'm an Italian in a few words. That's a good one, Mayor. Anyways, I would like to thank the town. I would like to thank Mayor Dickey for making TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 13 of 72 this possible. Thank you very much. And also, I would like to thank the members of my Fountain Hills Italian Interest Group that came out here today to support me and our great Italian culture. The Italian, Cicero, said, gratitude not only is the greatest of all the virtues, but it is also the parent of them all, and I thank my parents for instilling that upon me, for the things I love are not things; they are the town, the businesses, and, most importantly, all of you, the members and residents of Fountain Hills. So I know a lot of people have differences. I suggest everybody gets together, meets up, and comes to a conclusion of some common ground. That's the Italian way. Let's help each other, help the businesses, and let's fill the streets of Fountain Hills with amore. Grazie a tutti. Gracia. Gracia. Thank you. MAYOR DICKEY: I wish I had (indiscernible). BAGGIO: Oh, I got one. Thank you. MAYOR DICKEY: Thank you so much. (Indiscernible). So now, we're going to present the Red Ribbon Week, and -- on behalf of the Coalition. Peggy? MCMAHON: Can you hear me? Hello? Jackie and team? Here you go. And then I'll read it for you guys. Okay? Thank you very much. "Whereas alcohol and drug abuse in this nation have reached epidemic stages, and continued visible, united prevention/education efforts by community members must be launched to eliminate the demand for drugs; and whereas the East Valley Young Marines, the local unit of the United States Young Marines, is a youth education and service program for boys and girls that focuses on promoting the mental, moral, and physical development of its members, including character-building, leadership, and encouraging a healthy, drug-free lifestyle; and whereas the Young Marines is the official youth program of the United States Marine Corps and is the focal point for the U.S. Marine youth drug demand reduction efforts and is open to youth ages eight through high school completion who are in good standing in their school; and whereas the national Red Ribbon campaign and East Valley Marine program offers citizens the opportunity to demonstrate their commitment to a drug-free lifestyle, no use of illegal drugs, no illegal drugs; and TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 14 of 72 whereas the national Red Ribbon campaign will continue to be celebrated in every community in America during Red Ribbon Week, October 23rd through the 31st of 2024, business, government, parents, law enforcement, and media, medical institutions, religious institutions, schools, senior citizens, service organizations, and youth will demonstrate their commitment to healthy, drug-free lifestyles by wearing and displaying red ribbons during this weeklong campaign. "Now, therefore, I, Councilwoman Peggy McMahon, on behalf of Ginny Dickey, our Mayor of the Town of Fountain Hills, do hereby proclaim October 23rd through the 31st as Red Ribbon Week and encourage you to participate in drug prevention education activities not only during Red Ribbon Week, but also throughout the year making a visible statement that we are strongly committed to a drug-free lifestyle." Thank you. Would you like to say anything? UNIDENTIFIED SPEAKER: (Indiscernible). Thank you. MAYOR DICKEY: (Indiscernible). Thank you. Thank you, Peggy. Thank you, everyone, for coming. Ciao. UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: Okay. All right. A lot of stuff there. Okay. So we do begin with our proclamation -- I mean our presentations, and we are having a presentation on our capital improvement projects program, are we? Yes? GOODWIN: Yes, Mayor, we're having -- this is our quarterly update. So it's our first quarter to kind of check in, share with Council and the public the status of all of our capital improvement projects. If you recall, this was kind of the discussion we had about wanting to make sure that our Council was up-to-speed with where we were, what projects -- what was happening so that you felt like you understood where we were making progress, what delays may be out there, and what the expectation was and what our community is seeing. So I think Kevin's going to start us off, and then Justin's going to follow up. MAYOR DICKEY: Sorry, Kevin. I didn't realize you were doing it. Thank you. SNIPES: No problem. I think there's a combo today, so we're all going to be coming up TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 15 of 72 to visit. MAYOR DICKEY: Thank you. SNIPES: So yeah. So we'll start off with our capital improvement projects for the Community Services Department. Lot of starter slides. So our first one is the Golden Eagle Park playground. Here, you'll see our latest rendition. I'm excited about this one. We're working with doing some light integrations as well. With this being over closer to the high school, we kind of decided we wanted to increase some areas for the kids to hang out, visit as well as have some really good place -- accommodations as well. So this -- you'll see something similar to this. This is not our final rendition, but it's getting closer to being that. We're hoping next week to get this finalized. This is our panorama park design. It is about ready to start. I think it's going to start next Monday. And I think this is really going to add a cool setting for people to just walk through. There's a few benches in it in the middle. To make sure that we maintain visibility from the street, you can see there's a trail that comes in and goes right back out there in the middle. That way, if you're driving by, you can also see in, but yet, it also allows it to be a little bit private when you're back in there and you're in a nice, shaded area. So I think it's going to be a nice added section to that corner. Little bit better than the dirt that's there now, so. This is our multi-year project for the Linear Park. This is a design that I started working on. Our shade company asked why we can't do any simple projects. I've never really done any projects that were simple. So I've shared this a little bit with our -- some members of our TAMA group, and it's gone over really well. I think it's going to be a great section there. This is just outside of Sofrita's where the two fountains that look the same are there in the middle. It'll provide a lot of shade for the picnic tables that we put out there here recently. If you've noticed, those haven't been mounted yet because I wanted to get this design finalized before we made those permanent, and so we'll be getting those put in place to where it can go along with this. The other thing to remember on this is that with this being a multi-year project, it makes it so we can kind of overlay -- so this project, the -- we're hoping to get started in June TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 16 of 72 and carry over into July, so this'll carry over into a two-fiscal setup. And then we have some other projects to go in along with this. It's our Four Peaks pickleball court. We've done some preliminary grading over there. We're getting ready to start probably in the next week or two. They'll come in and start putting in the actual structure. The grade work is complete, so we're ready to get this project under way as well. We're looking at, hopefully, getting this open 1st of January, and the Rec Department will be extremely upset if we don't because they're planning on having their first leagues there in January, so there's a race against the clock on this one. This is the Pleasantville Park, and we are still in the design phase of that. We're working with Jay, too, on this one, coming up with some final plans on this, hopefully, in the next couple of months. We're looking forward to starting this project later in the year as well. This will be towards the end of the year as well getting the design finished and under way, so. With that, that's the end of our community services project. If there's any questions, I'd be happy to answer them at this time. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, just one question on the Linear Park shade canopy. As everybody knows, there's people walking their dogs there 24 hours a day. How will the shade canopy affect the natural grass that's growing there? SNIPES: So this is actually over the paver section. KALIVIANAKIS: Okay. SNIPES: So what we did was you'll notice that it extends beyond even the paver section, and the idea was it would also provide shade to our pumps and filters that run those fountains to extend the life of those because right now, they're out in the sun about -- you know, all day long. There's about zero time that it's in the shade. So we thought we'd take advantage of doing the shade structure, extend it out a little bit, and that'll also make it so when the sun's off the edges a little bit further, we'll also gain more TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 17 of 72 shade inside. And as you can see from the height of the guy that's in the middle of it, it's not going to be a low-down-on-you shade. It will be a high structure having it be open in the middle. I wanted some sunlight to kind of shine through to give it a more artistic look. We did some overlaying kind of an idea over at the Centennial Circle, and if you walk in there, it definitely has some cool designs just from the shade on the ground as well as the overlaying shade provides extra protection, and the more layers of shade there are, believe it or not, it makes a big difference in how much cooler it is underneath. KALIVIANAKIS: Okay. Thank you. UNIDENTIFIED SPEAKER: Is that $600,000 total? SNIPES: The shade? UNIDENTIFIED SPEAKER: The whole thing. SNIPES: No. No, that's for -- it's 200,000 each year for the entire project. GOODWIN: So Mayor, if I can jump in and say -- I was just going to add, and Kevin can chime in if he'd like to as well, that the shade was a hot topic, I guess, from feedback from our merchants along the avenue. That was something we heard loud and clear, that they felt like there needed to be more shade opportunities and more seating along the avenue, so trying to preserve the green space while providing shade. This is sort of the -- where those two ideas intersect. And then this is also -- and correct me if I'm wrong, this is where we also do our Concerts on the Avenue, one of the -- SNIPES: Yes. Yeah, this is where the band plays. GOODWIN: Okay. So during the season. And perhaps it gains us a little more usability when it gets a little warmer at the end of April. SNIPES: Yeah, we're looking to extend our seasons on both ends and, hopefully, be able to program more things within that space as well. MAYOR DICKEY: And to the point of the gentleman, the 200,000 every year is for the avenue park improvements overall, right? SNIPES: Correct. MAYOR DICKEY: Okay. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 18 of 72 SNIPES: Yeah, there's a lot of other things that are planned. This is just step one of the process as we're at the first quarter of this year, so we're just showing you where we're at now and what we've -- what we've done so far. MAYOR DICKEY: Thank you. SNIPES: You're welcome. With that, I'll hand it over to Justin. WELDY: Madam Mayor, Councilmembers. For those of you that are not up-to-date with the progress on the gap elimination project, the northern portion north of La Montana on Saguaro is about 95 percent complete. There's a considerable amount of cleanup that still needs to be done, and you may or may not have noted most recently that there's been some restriping in that area temporarily narrowing the travel lanes and the two-way left turn lane. The project is primarily on schedule, still managed by ADOT. In the coming weeks, they will begin to work on Palisades between Saguaro and Fountain Hills Boulevard, and also on the southern end of Saguaro near the Kiwanis area. This is one of the projects that are, again, multi-year. It started many years ago. This year, we were able to complete the balance of the multi-use path, MUP, along Tioga adjacent to Desert Vista. The next portion was completed on Eagle Mountain, including a midblock crossing there. We have a little bit of funding remaining in this year, but not quite enough funding to make a big impact, so we're working with the Town Manager and the engineering team to see if there's a smaller project that falls within our active transportation plan that we may be able to tackle. If not, this is the fund balance that we will have at the end of the year for this project. This is our town-side guardrail replacement and repair. We are working with our vendor and Maricopa County on a location on McDowell Mountain Road, finalizing the details as we speak. This is a new project for this year. This is the pedestrian-marked crosswalks. For those of you that may not have had an opportunity to see these yet, there is one on Palisades at Verde River Drive, Saguaro at Parkview, Saguaro at Paul Nordin, and Saguaro at Gunsight. It's important to note that all the infrastructure in regards to curb-opening TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 19 of 72 ramps and the refuse area, which is in the center of the median, have mostly been completed. However, the pavement markings and the signage will not go up until we complete our preservation seal on Saguaro later -- early next year, but later this fiscal year. This is another multi-year that's been in process. This is the storm drain rehabilitation. We are working on a couple of locations and trying to determine the best place to spend this funding that will benefit the community for the longest duration. This is the Community Center. This is a multi-year project. Some of the items that we have done this year include the work adjacent to the O'Flynn room, which is now storage and public seating. And also, the photo you see here is the southern end between the Community Center and the event circle. You'll note that we removed all of that concrete, sloped it away from the building, and put in an area drain and made some other minor changes around there with the intent of continuing the dewatering process to move water further away from the building. This also included redoing the landscaping along the southern edge, and also taking necessary actions along the west side of the building to lower that grade there and place granite so we have additional storage for runoff. This is one of the Shea Boulevard projects. This one is on the south side. That's eastbound between Palisades and Fountain Hills Boulevard. We are working through some geotechnical issues right now, so this project is temporarily delayed until we can reach a resolution and the ability to move forward. MAYOR DICKEY: Is this an ADOT one, also? WELDY: Madam Mayor, this one is not administered by ADOT. The design selection process is, but this will be -- when the time comes, be managed by the Town. MAYOR DICKEY: And what's geotechnical issue? WELDY: The geotechnical issues on the south side relate to the multiple years that we received fill material from developers and single-family home builders and allowed them to place that material there and, basically, let it self-compact over the years with all of the traffic, the water, and the rain. There's a couple of minor issues with one TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 20 of 72 section near the area where the old evaporation lakes used to be that we need to deal with. This is the next phase of that -- TOTH: (Indiscernible). I'm sorry, Justin. If you could go back one slide again. Just to be certain, with that delay to fiscal year '26, does that affect the state share of the cost of that project at all? WELDY: Madam Mayor, Councilmember, it's not going to have an impact on the funding because the funding has already been allocated. TOTH: Perfect. Okay. Thank you. WELDY: You're welcome. This is a separate section of Shea. This one is on the north side. And this year, we will do -- rather, start the design process. We are currently working on a scope. Once the scope is put together, it'll be turned over to Rob in Procurement. He will publish that, and then we'll be receiving requests for proposals, and selection will be made after that. This one is a project that we stumbled onto. When completing a project adjacent to this last year, we discovered the infrastructure between the cul-de-sac and the greenbelt on the lower section was in very, very poor condition. We have made some progress on this one. The challenge we face here is the pipe that runs between the cul-de-sac and the lower greenbelt lies nearly underneath the masonry wall that separates these two homes. What we're working to try and achieve is to be able to place a liner in this pipe as opposed to having to rip through there and both of their yards and impact both of their homes. Not only them, but also the neighborhood as well. Whether or not we can achieve that, we are not at that goal yet, but we're still working to see if there is a product manufactured that will meet the minimum needs for the durability and the structural strength. You'll recall a considerable amount of discussion about federal funding. This was one of the locations, and we have several locations. We simply have not been selected for TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 21 of 72 these federal grants to date. Oftentimes, they are very, very challenging because we don't meet some of their minimum criteria, so they place the Town on a waitlist for the next round, and each time we are selected to participate in the next round, Town staff spends a considerable amount of time revising and resubmitting those applications. This project right here is a separate one. When we sent this out to a consultant to get some design estimates, we were a little bit surprised at the total cost of $2.3 million. We've opted, after discussing this with the Town Manager, to move this out to later years. This project right here has been on the books for seven years, and we're going to be having some more discussions about that tonight as a separate agenda item, which is the wayfinding. This project here has also been underway for multiple years. We are also going to have some detailed discussion about that as a separate agenda item tonight. As you can see, we've done this year what we do every year. We've taken the funding that is allotted and worked towards achieving the goals of the Council to finish the capital projects. You can see where we are at currently financially and the fund balance that is still remaining in those projects. Please note, under the direction of the Town Manager, we will be back at a later date for additional discussion on these projects, and also, to share with you, as we get closer to the end, what the fund balance and/or savings will be for that. With that, this was a lot of slides and a lot of information. I'll certainly do my best to answer any questions you may have. MAYOR DICKEY: Thank you, Justin. Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, Justin, the $500,000 on the Community Center phase 3, is that strictly just to regrade so the water runs away from the Community Center? WELDY: Madam Mayor, Madam Vice Mayor, no. The $500,000 is also for the interior, TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 22 of 72 to address some of the issues that remain in there, including additional work associated with the structure in regards to dewatering. There's also going to be some discussion in regards to the roofing. Right now, we are working with Allana Buick & Bers and Gensler, an architectural and engineering firm. They are reviewing everything that we've done since their initial assessment, and then they're going to come forward and provide direction on the next steps. But the $500,000 covers several things on the interior and exterior. Right now, we do not have anything singled out except for a little bit of funding that we have encumbered, again, for the architectural and engineering firm. KALIVIANAKIS: Okay. Because I know that there was a process that we were eliminating the leaks through the windows in the Community Center. Has that been completed? WELDY: Madam Mayor, Madam Vice Mayor, the wet ceiling was done year before last. And I think it's important to note at this time, while the wet ceiling and other remediation action that has been taken has proven to be very successful, some of these are short-term, and I'll be a little bit more specific about that. The windowfronts are -- or the storefronts, excuse me, are still in poor condition and, at some point in time, will need to be replaced, but again, the wet ceiling has been working as it's intended to, keeping the water out. We still have some minor issues related to the doors and the sweeps, and it's primarily affected during blowing rain, but we're certainly making headway on it. KALIVIANAKIS: Yeah. Do we still need to put sandbags by the doors for large storms? WELDY: Madam Vice Mayor, occasionally on the south side. The Community Center, including facility staff, if we do believe it's going to be a pretty hard rain, we'll put sandbags up there. We have not had sufficient rain to test the improvements that you see on this slide, so as a precautionary measure, we'll most likely put sandbags there. The intent is that we won't have to moving forward if we're successful. KALIVIANAKIS: And then hopefully, with this phase 3 improvement, you'll fix the drainage? WELDY: The intent is to correct all of it over time, yes. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 23 of 72 KALIVIANAKIS: Right. Thank you very much. It's unfortunate because when this building was built so many years ago, they didn't understand how drainage works, even though it doesn't rain very much in Arizona, and that we have to spend all this money to have the water run away from the building. It's really unfortunate. But thank you. WELDY: You're welcome. MAYOR DICKEY: Well, I'm not seeing any more questions. We probably will have questions as we go through these next items. But thank you. Thanks very much. WELDY: You're welcome. Thank you for the opportunity. UNIDENTIFIED SPEAKER: (Indiscernible) questions? MAYOR DICKEY: We don't take questions for presentations, but maybe it'll end up being something we talk about. UNIDENTIFIED SPEAKER: Okay. MAYOR DICKEY: Thank you. Thanks so much. So our next item is our Call to the Public. Do we have speaker cards? PADGETT-ESPIRITU: Yes, Mayor, we do. First up will be Shelby Blecker followed by Crystal Cavanaugh. BLECKER: Madam Mayor, Vice Mayor, Councilmembers, staff, my name is Shelby Blecker. I'm a new town resident, and I'm here tonight to speak about a few things that are on my mind and some observations that I've been seeing. MAYOR DICKEY: Sir, sorry. Could you put the mic -- thank you. BLECKER: Is that better? MAYOR DICKEY: Yeah. BLECKER: Okay. First, I'd like to say that moving here in February from the war zone called Melrose Avenue in Los Angeles, my wife and I really love this town and the community. We're getting involved in many opportunities we have found to help keep this town from ever becoming what we left behind in LA. Second, I'd like to thank many of you for being able to pay attention and look me in the eye while I'm speaking. After attending a few Town Meetings in person, it became apparent that one council member doesn't feel that this is important. It almost appears TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 24 of 72 to be a deliberate attempt at being obtuse, and it's shameful. Lowering your head, diverting your eyes, and shaking your head back and forth while members of the public are speaking to you isn't a look I appreciate seeing during Call to the Public by my elected officials. So Councilmember McMahon, thank you for paying attention to me tonight. I haven't seen this type of engagement with you in the past. Next, since we're on the subject of elections and candidates, this town is a nice town with nice people that live here. Recently, I had friends come from California. They were in town to see their son, who's attending ASU, and they were in Scottsdale at the Penske Museum, and then they came to see me. On their drive into Fountain Hills, they saw all the wonderful election signs. Wow, the questions I got when they arrived at my house. What's ROT? Who's Dickey? I thought you told us this town was filled with wonderful people. If that's what both sides of the eye wish to display to visitors, well, you all did a great job of doing that. Personally, if I'm going to throw mud, I'll put some facts in there somewhere and not just name-call like I'm in fourth grade. Maybe you can all talk to your campaigns and see if this is really the image you want visitors coming to Fountain Hills to see. Lastly, I'd like to share that I've had some offline chats with Clayton Corey, someone I've been worried about before, but now I'm gravely concerned about. I questioned him publicly on his platform numerous times on Facebook without ever receiving an answer. MAYOR DICKEY: Sir, I'm not sure that we -- that what -- Call to the Public is for things that are under our purview, so I don't think we want you to be talking about another citizen who's not on the Council. BLECKER: I understand. MAYOR DICKEY: He's not here to defend himself. BLECKER: So let me just say I look at this job as -- TOTH: Didn't we just have several talk about Gayle Earle? MAYOR DICKEY: Excuse me? TOTH: Didn't we just have several talk about Gayle Earle? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 25 of 72 MAYOR DICKEY: No. FRIEDEL: You had Kim Bartman up there dressing her down. TOTH: We had all these comments. This is Call to the Public. MAYOR DICKEY: Excuse me. The Call to the Public is for items that have to do with the purview of the town, and Clayton Corey's not on this council, and he's not here to defend himself, so I don't know what you mean. TOTH: Neither was Gayle Earle when people on this council were talking to her and she couldn't respond. What's the difference? MAYOR DICKEY: Excuse me. I thought -- I believe that that was an agenda item. TOTH: Where you addressed her directly? MAYOR DICKEY: I did not do anything. Let's -- okay. Sir, I'm sorry. Go ahead. TOTH: I have it on tape. BLECKER: Let me just -- let me just finish with saying that this is not councilmember on training wheels, so I'd like to see people on the Council have answers and facts to be able to talk to us with. Thank you. I'm sure I'll have more conversations with all of you at a later time. CAVANAUGH: As you know, many of us are in disagreement that half of you, three of you refuse to seat Gayle Earle after she won the election, and it's also confusing to many residents in this town, apparently, that she's not waiting to be elected in the November election. She won. And I was a little concerned, even, at the last meeting because Mayor, even you seemed to almost dismiss her win. You said something about 4,000 votes that she got out of 10,000 voters. Well, she got 4,226, and there were eight candidates, and she still won. So I do want to make that perfectly clear to all the people who continue to state online and in emails that it's unfair for her to be seated early. So last night in Avondale, do you know what happened? Their mayor stepped down early this month, so their council needed to replace their mayor, and they pull somebody from their council, and guess what? That leaves a vacancy. So do you know what they did? They placed Jeannette Garcia in there, and I think that she was one of TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 26 of 72 two choices, even, that could have been seated. She was a councilwoman-elect. They did not have a problem filling their vacancy. And so all I want to say -- I wasn't even planning to talk tonight, but other councils seem to get it. And this one was such a political decision because that's what I read in all those comments, that they didn't want to shift the balance of power. Well, guess what? You don't really have a balance of power. Oh, it's so balanced. It's three to three. And so you don't really know how Gayle's going to vote. She's not an extremist. And I still urge you, after multiple opportunities to do so, to seat her, even if it's for one meeting. That extra experience is valuable. She's new to sitting on a council. Why wouldn't you want her to join you for the last few meetings? Thank you. MAYOR DICKEY: Please don't applaud. Thank you. Is that it? PADGETT-ESPIRITU: We have two more. First up will be Amy Pajic, and then second will be Betsy LaVoie. PAJIC: So my apologies for the way I am dressed today. I was in the stockroom, so I was told change, but hey, that's what happens when you come straight from work sometimes. So my name is Amy Pajic. For people in the back, I am Mrs. Amy Pajic, not a Ms. Please make sure you get that straight when you're addressing me. That is to a very specific person that I'm dealing with in your Zoning Department. And Aaron, I come to you, before lawyers and before all this. I need to understand clarity on what it means to have special use in a zoning area, and is that related to special use, related to specific use in a building, and/or is that just in a zone? Let me continue. So last -- the last time I met everybody, as you know, I'm into the dogs. I'm into a lot of puppies. And I would like to open up a business here in town, and it's on the upper side of town, in the newer portion of town, and I have been special selected to follow rules that do not apply to the type of business I'm in. I have even, by the Town, been ignored in information that I've asked for, on public information, and every single time I ask, I am told, John will not allow it through. John in Zoning will not give you the information. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 27 of 72 My business license was withheld for ten days plus without as so much a reason why, and finally, I had to come back down in the email century to find out why. John gives you the face. Donna (ph.) is always telling me, well, you ask too many questions. Excuse me? I am a day care, not a kennel. And let me explain that in a very large, broad spectrum of things. In the day, when you would have a dog and you bring your dog to either a friend's house or to a kennel, a kennel is a kennel boarding. What you do is you bring your dog, and your dog goes behind a -- inside a kennel, actually, and stays there until you come back. They take him out for a walk or two. That's a kennel. It's overnight boarding. What is new is no longer overnight boarding. It is called on trend. It is a day care. What is day care? We, in the business, use day care as you would for child care. It's an operation -- daily operation. Monday in the morning, business day ends, you take your dog home. And if you don't, unfortunately, we, the owners, have to make arrangements within the hour to have someone pick up the dog. You're not allowed to keep it overnight. Insurance will not allow you, and you do not have a safe place for the dog. Okay. I understand. I get that. You can give me one more minute. So here's the thing. I would like -- MAYOR DICKEY: I'm sorry. I'm sorry, ma'am. PAJIC: I would like very much the information to be given to me. That's what I want, Ginny. MAYOR DICKEY: Okay. We'll follow up. We will. PAJIC: Okay. MAYOR DICKEY: But everybody has to have the three minutes. Sorry about that. PAJIC: Okay. Thank you. MAYOR DICKEY: Thank you. LAVOIE: Good evening, Mayor, Vice Mayor, staff. I'm Betsy LaVoie, almost a lifelong citizen of Fountain Hills, since 1978. I'm here to provide two letters. One is an official TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 28 of 72 endorsement, and one is a letter of support. The -- on behalf of the Fountain Hills Chamber of Commerce Board of Directors and the Fountain Hills Chamber Public Policy Committee, we are writing to express our strong support for Arizona Proposition 138 in the upcoming November election. This initiative represents a significant opportunity to modernize the wage system for tipped workers in Arizona, supporting both the hospitality industry and its workforce. We believe that the passage of Prop 138 will have a positive economic impact on our local restaurants and service-oriented businesses, helping them keep operational costs in check. This will enable them to continue offering high-quality service to their customers without passing the significant price increases on to their consumers and which could otherwise result in high labor costs. For these reasons and many others, the Fountain Hills Chamber of Commerce fully endorses Arizona Prop 138 and urges voters to vote yes this November, and thank you for your consideration of this endorsement. The other one is a letter of support. I'm talking fast to get through them. "Dear Mayor and members of the Town Council, on behalf of the Fountain Hills Chamber of Commerce Board of Directors, The Avenue Merchants Association, TAMA, and the Chamber of Public Policy Committee, I'm writing to express our support for the approval of the $100,000 budget transfer to implement key elements of the newly-approved Downtown Strategy. The Chamber believes these enhancements will serve as a crucial step towards bolstering Fountain Hills' reputation as a vibrant, thriving destination, particularly as we approach the holiday season. The proposed light-up-the-avenue initiative, the 3D design to understand proposed zoning changes in our downtown business district, signage, and event programming and marketing are all critical investments to drive foot traffic and economic activity for our downtown. These coordinated efforts will help bolster and stimulate local businesses, retail sales, and more after a very long, extended summer heat. The Chamber fully supports the requested budget transfer recognizing that's an essential component for the successful execution of your already-approved shared vision for a revitalized TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 29 of 72 downtown." I've also included for your reference a full current list of all the board directors and a full current list of all the public policy committee members, so I have that for you. I apologize. I know that is 9F on the agenda, but I have another engagement to go to, so I wanted to provide that in advance. Thank you. PADGETT-ESPIRITU: That is it. MAYOR DICKEY: Thank you, Angela, very much. Next is our Consent Agenda. Can I get a motion, please? FRIEDEL: So move. MCMAHON: Second. MAYOR DICKEY: Thank you. Roll call? PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. PADGETT-ESPIRITU: Sure. MAYOR DICKEY: Okay. I'm looking at the Regular Agenda, and I'm not seeing a B. What am I looking at here? GOODWIN: Guess there is no B. UNIDENTIFIED SPEAKER: C. MAYOR DICKEY: Thank you. All right. Well, line C, Consideration of a Professional TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 30 of 72 Services Agreement for the wayfinding signage. Who's going to do that? GOODWIN: Actually, Mayor, I'm going to ask Paul to join us for a few minutes. The next couple of items are all related to our expenditures. This is our quarter update. You just had our CIP update. You heard we have a couple of projects that have had some changes, some cost changes, and that was our agreement with the Council is to come back and talk to you if there are projects that change in cost or scope. So that's what we're here to do tonight. You're going to hear a number of conversations about specific projects, but the bigger conversation comes back to this is not a discussion about funds. We have the funding to do the projects. We actually are in a very healthy situation in terms of our funds. The conversation is about expending them, the ability to expend the money and not exceed our limitation. So I think everyone's a bit aware that we have a set number that we cannot go over, so if one project goes up in cost, another project we need -- we need to reduce cost somewhere else so that we always maintain that balance. And so that's what the conversation really is about tonight, how do we maintain that balance, and how would we like to approach that. So I'm going to ask Paul to give us just a quick, brief rundown about how that works, and then we'll jump into each of the projects. MAYOR DICKEY: Thank you. GOODWIN: Thank you. SOLDINGER: All right. Thank you, Rachael. Actually, Mayor, Vice Mayor, Councilmembers, Rachael pretty much explained what I'm about to explain, which is great. Makes it easy for me. So tonight's agenda items 9C through F all include requested budget transfers, so we thought that it would be, really, a good idea to just give you a real brief refresher on budget transfers and our budget in general and how they work, and so that's what I'll do over the next couple minutes just to refresh you. So Council adopted the current fiscal year 2025 budget on June 4th of 2024. And it's important to note, when you're considering these budget transfers, that budget TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 31 of 72 authority -- what we're transferring tonight or requesting to transfer is not the same as fund balance or monies within these funds. Subject to our financial policies, fund balance is basically cash in the bank within these buckets that we account for them. Whether it's the general fund, capital projects funds, downtown fund we'll be discussing tonight, there is money in those funds that is sufficient to move forward on these transfers. However, budget authority is what we're requesting to transfer tonight, and that's really the permission to use those monies. It's basically asking Council to redirect permission to use monies on different things than what you originally approved in the budget. So real quickly, the fiscal year 2025 adopted budget is 45.2 million, 9.1 million for capital projects. As Rachael mentioned, we cannot exceed that adopted budget amount. We also have to comply with the expenditure limitation, which is another consideration. So any time we increase budget in one place, we have to take from another place, and so again, it's just a balancing act. We're taking budget authority from one place and we're putting it somewhere else, and that's what we'll be discussing. So going back to the buckets we talked about during all the budget presentations, really, these transfers we're discussing tonight do not affect the cash in these buckets at all. Again, it's just unlocking the ability to use that cash. It's providing permission to use that cash on different projects. And this is just a really easy illustration. If we're taking $50,000 and increasing one project we discuss tonight, like we've talked about, we're taking that money -- we're taking that $50,000 away from another project. It could be from other places other than projects, but this is a simple illustration. And so that 50,000 will come from another project. And so we'll get into those ins and outs during each of the agenda items. So with that, we'll move on. GOODWIN: With that, Justin, you're kicking us off tonight. WELDY: Madam Mayor, Councilmembers, we've had numerous discussions over the years related to wayfinding as part of the budget process and the discussions and then TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 32 of 72 allocating funding, and once the design was done, staff presented an engineer's estimate to the Mayor and Council. That engineer's estimate for the wayfinding, manufacturing and installation, was considerably higher than we had imagined at around $700,000. Taking direction from the Town Manager, Mayor, and Council, we went back to the drawing board working with Rob, our Procurement Officer. We put together an invitation for bids. Tonight, we are going to discuss that invitation for bids and the results of it. As a reminder, the wayfinding sign project will provide signage to replace the outdated, antiquated, oftentimes missing and misleading signage that exist throughout the town that was part of the original infrastructure right after and prior to incorporation. Considerable amount of time. There will be larger signs out on Shea, slightly smaller signs on Palisades, Fountain Hills Boulevard, and Saguaro. Once we get to the core or the downtown, there will be considerably smaller signs, but each of these are intended to provide guidance and information to visitors and residents alike as they enter our community and they want to come north of Shea and enjoy the amenities. As you can see from the list of bids received, the Town received a total of four with the highest one being just over $700,000, the next one right at seven, and then we had two of them in the $200,000 range. Excuse me. One in the $300,000 range, and one in the $200,000 range. The clear reason that we selected Duncor for this is one: they were the responsive bidder. But they also have an incredible amount of history in this valley manufacturing and installing signage. They have been very, very professional in regards to discussions about this project. Under direction from the Town Manager, to make sure that we had our bases covered, we had an open discussion with the bidder to determine whether or not they would be willing to work with us and divide this up into two years should it become necessary. With no hesitation, they agreed to that. However, we're here tonight to ask the Council to approve not only the agreement, but the additional funding necessary in the form of a budget transfer, which the CFO just shared some of that information with you. The reason for that is they have also agreed TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 33 of 72 to stay on with their expertise and their background and support next year's endeavor, which will be including some of the Downtown Strategy signage, some of which we have discussed previously on this wayfinding project. Primarily, the kiosks that were not included as part of this year. With that -- and this is a lot of information -- I will certainly do my best to answer any questions that you may have regarding this agreement. GOODWIN: Mayor, if I can jump in, I just wanted to clarify a couple of the numbers. Justin, thank you for the recap. The -- if you recall, we budgeted 250,000 for this project with the hope that if we came in at a reasonable number, we may be able to get it all done in one year versus breaking it up across two. Given that the -- we were expecting a very high number, in the 700s, it was concerning. The fact that we got a number that's just under 300,000 was far more palatable. We have 250 budgeted. The request tonight is for the difference that would be coming from our contingency, which we have 675 available. So that's what the ask is for tonight, is for the difference so that we can complete the project based on Duncor's bid amount of 269 -- excuse me, 296,744. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. I have less of a question, more of a statement, comment. I know that there's a member of the public that's even here tonight that said that, hey, this is kind of outdated. People use, you know, map programs and they use their phone to find things nowadays, not wayfinding signs. And since the Council already approved a quarter million dollars, I mean, this is, you know, a pretty significant hike. I would feel more comfortable just telling the vendor to, you know, go -- you know, sharpen your pencil, see what you can do instead of moving forward with raising it. That's where I am. That's what I would like. And frankly, I don't think we need even a motion to do that because we've already approved it for a quarter million dollars. That's all. MAYOR DICKEY: Thank you. Vice Mayor? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 34 of 72 KALIVIANAKIS: Thank you, Ms. Mayor. Thank you for your presentation. Really appreciate it. You know, I think we all expected the cost of this to be much more than 296,744. I would be for this. I would be for the budget transfer as Paul explained, and my reasoning would be the Chamber of Commerce supports it. I believe TAMA supports it. Our business owners support it. Our out-of-town visitors would support it so they could find our businesses and even where our lake is. I literally had a guy last week said, I came to your town. I never found the lake. So Fountain Lake, over there. And then, of course, our Fountain Hills General Plan calls for it. So this seems like it's close enough to get the job done. It's not too much of an overrun, and it's a simple balance transfer to cover the expenditures. And so to me, this one's kind of a no-brainer. I'm definitely voting yes. MAYOR DICKEY: Thank you. Councilwoman? UNIDENTIFIED SPEAKER: (Indiscernible). MCMAHON: Thank you. MAYOR DICKEY: I'm sorry, sir. UNIDENTIFIED SPEAKER: (Indiscernible). MCMAHON: Thank you. MAYOR DICKEY: I'm sorry, sir. You can't ask questions from that way. If you wanted to fill out a card to speak to this item, you could have -- you could do that. UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: Councilwoman? MCMAHON: Thank you very much, Paul, for your explanation about the transfer and clarification how this is going to work, and thank you for your explanation, Justin. And I would like to make a motion to approve the Professional Services Agreement. MAYOR DICKEY: Can I -- can I ask you to hold off on the motion because -- MCMAHON: Okay. MAYOR DICKEY: -- we can't take public comments after that. MCMAHON: Okay. I'll hold off. Thank you. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 35 of 72 MAYOR DICKEY: But thank you. Yes. Why don't we just -- TOTH: Could I ask a question? MAYOR DICKEY: Yeah, sure, Hannah. TOTH: Just for the sake of the public, that 46,000 that would be added -- that's right, right? WELDY: Right. TOTH: Okay. 46,000. What do we consider that as coming from? So is there a specific project that that 46,000 was tied to? WELDY: Madam Mayor, Councilmember, that 46,000 will be coming from the capital projects contingency fund. GOODWIN: Yes. So just a reminder, we set aside some monies that are unassigned that are available for specifically if we need to -- if we do go over or if, heaven forbid, something comes up that we didn't anticipate. A good example of that was when we had a very large sinkhole happen on Panorama Drive a couple of years ago where we had to get that addressed. We -- so these are available monies that are unassigned that can go to supplement this, so that's where this would come from. So it would reduce our unassigned balance. It would not come from a specific project. But that's a good question because there are other ones. TOTH: Thank you. MAYOR DICKEY: Did we have other speaking cards besides the -- PADGETT-ESPIRITU: Yes, we do. MAYOR DICKEY: Okay. We'll go ahead with that, then. PADGETT-ESPIRITU: Sure. MAYOR DICKEY: Thank you. PADGETT-ESPIRITU: First up will be Barry Wolborsky, followed by Kim Wolborsky. B. WOLBORSKY: Barry Wolborsky, resident. And you know where I'm coming from. It really thrills me that Brenda is in favor of this because now I can be against it. The wayfinding signs are a total waste of the Town's money. Although the Council decreased the cost of the signs from $1,000,000 to a mere $550,000, this has now TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 36 of 72 grown to $600,000, and I predict before the project's done, it'll be close to $1,000,000 again. I wonder how many streets could have been paved for that money. Also, $300,000 has already been spent on design studies for this project. Do you believe that? 300,000. In business, we have a saying, never throw good money after bad. In other words, take the loss of the $300,000, and don't compound it by spending another $300,000 and going up. Wayfinding signs will not bring one dollar into this community. They're a generations- ago idea before Smartphones and automobile navigation systems. If you pull into a new town and you want lunch, you take out your phone and type in restaurant, Fountain Hills. And by the way, if you type in lake, Fountain Hills, it'll also tell you how to get there. You examine the menus, then, and then click on your choice to get directions to the front door. No one uses wayfinding signs anymore. The signs add to sign pollution, which detracts from the landscape and also detracts from drivers seeing important traffic signs and other cars and things, people and stuff like that. But it gets even better than this. Not only do the signs need to be maintained and replaced as they wear -- and I never hear this council ever talk about maintenance costs for the good ideas you have, and there are maintenance costs. Okay? But every time an entity closes, moves, changes its name, or gets added, the signs have to be updated and replaced, adding to the real cost of signs. I have another problem. I looked at the bids. The low bid is 30 percent lower than the next lowest, 50 percent lower than the other -- actually, over 50 percent lower than the other two. For me, this is a strong warning that there will either be cost overruns or inferior product. This needs to be looked into by the Council before you're making the decision. I think the Council really needs to go and look at these bids and see what the others were offering that we're not getting. I don't think it's just a matter of sharpening a pencil. 790,000 to 290,000, that's a big difference. Wayfinding signs are bright and shiny at their worst. Please scrap this costly mistake. K. WOLBORSKY: Hi, I'm Kim Wolborsky, and I don't always agree with my husband, but I TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 37 of 72 agree with him on this one. I think that wayfaring signs will be a blot on our landscape, a distraction to drivers, and yet another long-term maintenance expense. He stole this part from me, I think. So I think that there's a great way to get extra money for the other projects, which would be to drop this one, and that would give us an extra $250,000 to put towards other projects that we need more. I have talked about maintenance expense before this dais. Whenever the Town adds a new piece of infrastructure, we get some information on the cost of installation, but I don't ever remember seeing data on product life or the cost of maintenance. These signs have the possibility of an additional replacement/revision cost since they have to be changed and replaced if any of the places they point to move or close down or if we add new ones. All of this is added to the original cost, which is high and getting higher. And taking an extremely low bid often leads to poor quality or cost overruns. What's more important, people don't use wayfaring signs. They use navigation on their cell phones and cars to find their destinations, and these applications take the users to within a few feet of where they're going. They even tell you how to correct if you make a wrong turn. If we feel like we need something for walkers downtown, let's be creative and, instead, use something that will be useful in the 21st century. There are so many options now. Couple of ideas came to mind after five minutes of thought, and I'm sure there are tons more. We could laser print small signs or placards on metal with a QR code that leads to a map of these Fountain Hills highlights. Then we'd be maintaining a simple online map instead of large metal signs. We could give printed maps to vendors and offer them a sign to display that they have the maps available inside, which would encourage customer traffic. Wayfaring signs were cool in the last century, but please, let's move into the 21st century, and, in doing so, save some money for street repairs. Thank you. PADGETT-ESPIRITU: Next up is Nick Pajic. N. PAJIC: Thank you very much. I have been an entrepreneur for 40 years plus, and the budgets that I'm hearing about tonight, including the cost of signs, blow my mind. I TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 38 of 72 mean, I cannot fathom spending this kind of money on the signs. You guys already addressed what I was going to say, so I don't have to repeat it and waste anybody's time. But as an entrepreneur, and this is not to boost my ego, I built one company and sold it for $38 million. I've been living in Fountain Hills ten years now, and I -- this is my first meeting, so shame on me. Don't know who's making these decisions, but to spend $300,000, round numbers, on signs blows my mind. Thank you. PADGETT-ESPIRITU: That's it. MAYOR DICKEY: Thank you. Discussion from Council? Councilwoman? TOTH: Thank you. I wanted to ask you another question, if it's all right, Justin. If this were not approved, if we said, no, we said 250, let's keep it there, is there a realistic outcome that we can still get this project, even in part, done? WELDY: Madam Mayor, Councilmember, if, indeed, that was the direction the Council decided, we would work with the Town Manager and encourage her to select manufacturing and allow for all the manufacturing that could possibly be done for the budget allotted, and then have that material delivered and stored by the Town, and then revisit it as part of a budget for next year for the installation. TOTH: Okay. So just to reiterate that, that would mean that no signs get installed unless we approve the 46,000? WELDY: Councilmember, it's not likely that we would -- TOTH: Not likely. WELDY: -- get any installed. We would obviously have to visit the manufacturing with the vendor, and then, based on their cost and time frame, work backwards from there with the Town Manager on a solution. TOTH: Okay. WELDY: I can't -- I cannot guarantee you there would be any installation at -- if we elect to go forward at this time. TOTH: Okay. Thank you. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 39 of 72 WELDY: You're welcome. TOTH: To move that into a comment, I am going a little back and forth because a quarter of a million dollars is already a lot of money. I am very supportive of wayfinding signs. I know that it's not that we're technically spending extra money. It's money coming out of a contingency fund that already exists. But it is $46,000 that could be used elsewhere, and we have other agenda items we're going over tonight, as well. All of this to say if we were, as a Council, to decide to not approve this, I would like to see follow-up steps of ensuring that the 250,000 already approved is either brought onto our next agenda to consider, or we have something in there that's a stopping point of, okay, we'll go to manufacturing, we'll see how much that alone would cost, we come back to the Council and vote on that because what I don't want to be the result of this decision tonight is that we manufacture those signs and we store them, and then nobody approves installing the signs. That's a really concerning possibility for me. So just a thought. I'll let everybody else talk now. MAYOR DICKEY: I just wanted to go back to the whole decision-making on this. So we said the 700,000, and then, I think, we all thought that was a lot, so I think we went back to the 500,000. I thought we were going to do it all in one year because we saved that money -- we had that conversation -- from not doing the restrooms on the avenue, so -- which that was, like, 496 or something. So one of the discussions at that point was, okay, we're not going to do the restrooms, maybe we could do the signs in all one year. There was -- that was -- but the original 700, I think, we were a little ehh about, but the 500,000, we thought, hey, maybe we could do it in one year. So to just make -- just get it straight, this 296 was -- would be everything, correct? I mean, it's not that -- like anything would go to next year; is that right? WELDY: Madam Mayor, that would include manufacturing and installation prior to June 30th of 2025. MAYOR DICKEY: So at some -- so this is a project that we approved for 500,000 thinking it would go over two years, and part of that discussion had to do with saving the money TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 40 of 72 for the restrooms. And also, just in a general question, and I can ask Rachael this, too, when we approve anything, whether it's a vehicle or a building, don't we have -- isn't there, like, a ten percent or something over the years where you know there's maintenance built in? Because I know at MAG, they do that, and, you know, ADOT, anything else, they have, you know, life cycles, so you don't just, like, buy a truck and know you're not going to have to repair it. Is that something that's kind of baked into some of the things that we do? And I'll ask you, Rachael. GOODWIN: Sure. And I think that's a valid question, and I appreciate it being brought up because maintenance is a thing, and we find ourselves talking about the maintenance of buildings. I mean, we were talking about the Community Center earlier and, you know, the maintenance we're having to do on that. So in these cases, we've been working to design a product in this case that is consistent with what are our conditions here, our temperatures, our, you know, heat, all of those types of things can sustain. I think that's what Justin was mentioning, why. We had concerns about the number, too, that it came in low and -- substantially low and why so low. It does send up a red flag for sure. But Duncor has done projects in the -- in our valley and has a proven track history of providing that. In terms of maintenance, again, we're designing something, hopefully, that has that durability and long term. But absolutely, when we come back and we build our annual budget, I think you guys are pretty familiar with how we do our green sheet request where we say, this is the year we need to budget for replacement, or this is the year we need to anticipate, you know, a one-time up to say, this needs to be replaced or refreshed or redone. It certainly is baked into a administrative year to year. But yeah, there's definitely going to be a time when things have to be refreshed. A good example is the Centennial Circle and the five Cs. Those signs were out there for ten, 12 years. They were done. They had to go. We're talking about playground equipment. Playground equipment has a life span, too. All of these things have life spans, and we do have to budget and anticipate those costs. No doubt about that. In this case, our staff does a bang-up job of making sure that what we're getting is TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 41 of 72 quality for the price, serviceable, that they -- it meets the needs and/or exceeds the needs that we have out there. So again, we're not -- we're not going into it eyes closed. Justin, did you have any input on what you found when you worked with Duncor or any of the research you did? WELDY: Yes, ma'am, I do, and thank you for the opportunity. I discovered, with talking with the manufacturer, and then they do the installation as well, and they're a family- run business, that their approach to this is considerably different because when we started this, believe it or not, almost ten years ago now, technology was considerably different, and materials that were used to create the weathered steel effect, which it's rust, for lack of a better description, has since changed, and you can actually achieve that utilizing aluminum and different treatments. In regards to the maintenance, when -- and the Town Manager alluded that when we are preparing our green sheets, we show a five-year horizon. You'll note that on this one, that the maintenance doesn't appear in that five-year horizon. The reason behind that: excluding vandalism and conflicts with vehicles, I do not anticipate any maintenance for the foreseeable seven to ten years and possibly longer. Obviously, at the five-, six-, seven-year mark, we will begin to, more in-depth, review them, use the reflectometer, if necessary, and do physical inspections. But the durable material and the process that was designed, for me, I believe that we're looking at above the ten-year mark prior to any real maintenance issues, and they'll be minor after that. Again, that's excluding vandalism and conflicts with vehicles. MAYOR DICKEY: And Gerry, I'll call you, but I just want to say -- to follow up on the whole process, because Rachael mentioned it and you mentioned it, as far as who's making the decisions. You know, this procurement and all of the things that we do have processes, and what we are relying on are the expertise of those with all the years of experience that you have to evaluate the bids as they come in regardless of what the project is. Gerry? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 42 of 72 FRIEDEL: So when I first saw those signs, I think we cut down the number -- total number of signs that we were going to install around town, too, did we not? WELDY: Madam Mayor, Councilmember, that is correct. The overall number was reduced as part of the process over multiple years. FRIEDEL: So we're doing the bare minimum. And when I first saw those signs, I figured they were probably 15 years, maybe more. The signs we have now, I don't know how long they've been there, but they're a mess. And I get the fact that there's GPS and people have phones and they have it in their car. Not everybody uses it, though. I'm not against this. And when I look at the 15-year maintenance record or product life on these things, what are we talking? 20 grand a year overall. So I'm not against it. If we can get it done in one year, I think we should do it. I think the businesses probably want that in our town. So again, I'm looking at that cost over the life span of these things, and I don't think it's that bad if we get that kind of time frame out of it. And looking at the presentation you did before, my guess, initially, was 15 years on these signs because they're weathered metal, and they'll hold up a lot more than these wooden things that we had out there for the last 25 years, so -- and I was right. We did cut down the number of them, as well, so that brought our cost down, as well, because we gave instructions to you to go back and refine this and come back with a bare bones number of signs, which I think you've done, and so I'm not against it. MAYOR DICKEY: Councilwoman? TOTH: I just wanted to bring up a point that was mentioned not that long ago, that as you said, Mayor, we approved this for two years, 250 each year, so according to my math, I have 104,000 that we could put toward streets or toward downtown for next year. Just throwing that out there. We're sure that that 104,000 is, you know, free to play with? WELDY: Madam Mayor, Councilmember, I'm not sure where that number came from. TOTH: Oh, sorry. So I'm saying if we spend 296 this year instead of the 250, and we had approved 250 for next year, that means I've got 104, right? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 43 of 72 GOODWIN: What you'll see is that it'll come off the books for next year, so it won't even be a project identified as next -- in next year's budget. TOTH: So yes. GOODWIN: So yes. MAYOR DICKEY: I just wanted to piggyback on what Gerry said, too, about the signs themselves and whether you can look on your phone and such, and for sure, that's true, but since we do have a lot of visitors here, they may not know that we have a museum or that there's lodging someplace or -- so they won't, maybe, know what to look for, especially when we have our dark sky. I doubt people will know for sure, you know, let's -- there's an observatory here or another -- or our art walk, the things that we can say that maybe people who are visiting us don't necessarily know that we have, and maybe a sign would spur them to go deeper into town. So Councilwoman? TOTH: I'm just going to fact check myself real quick. In my defense, I'm running on four hours of sleep. That's actually 204. MAYOR DICKEY: Okay. Thank you. TOTH: Sorry, everybody. MAYOR DICKEY: Anything else? So I believe you had started to make a motion. Would you like to make one? MCMAHON: Sure. Make a motion to approve -- UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: No, sir. I'm sorry. We're -- UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: After we -- no, sir. Thank you. Go ahead. MCMAHON: Finally. Move to approve Professional Services Agreement 2025-024, excuse me, with Duncor, LLC, in the amount of 296,744 and any associated budget transfer. KALIVIANAKIS: Second. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 44 of 72 MAYOR DICKEY: Thank you. Roll call, please. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: No. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. PADGETT-ESPIRITU: Motion passes five to one. MAYOR DICKEY: Thank you. Thank you, Angela. Thank you, Justin. WELDY: You're welcome. MAYOR DICKEY: Are you the next one, too? WELDY: Yes, ma'am. MAYOR DICKEY: Thank you. WELDY: Madam Mayor, Councilmembers, this one right here is another project that has been many, many years in the making and design. As a little bit of a background, in 2018 and '19, excuse me, we had unusual storm events that inundated the impoundment area of Golden Eagle Park. The impoundment area is the majority of the park with little to no exception of the area around the tennis courts and the upper level of the concession stand area. We immediately began cleanup during that time while we were also working on a drainage study for the area above Golden Eagle Park. That study was completed, brought to the Council. There was a considerable amount of data. The gentleman that explained it did an incredibly good job. While all of this was going on, we were -- TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 45 of 72 working as a staff with the Town Manager, Mayor, and Council to clean up some relatively large messes in that area. Over time, there have been many obstacles related to this design, including but not limited to the lack of as-builts for when these original improvements were put in, and the ones that we did have were inaccurate. We also had to deal with county and state regulations and oversight because it's a drainage area, and we were simply conveying water from the McDowell into the Verde River. Aside from all of those delays, the Town Manager, myself, and Kevin have been in front of this elected body and others explaining the process and providing updates for many, many years. Tonight, we're actually here to discuss the bidding process. Once the project was completed, we put together a scope and released it for an invitation for bids. And this particular one -- and I will share this. I rarely share my personal opinion because it's mostly not relevant to this agenda. I believed, after comments that I heard from others in the industry and most recent bid activities related to or similar to this, I would be reporting to the Town Manager that the bids came in at four-plus million dollars. I was truly delighted when Rob opened them and began to read them aloud and share the information that the one that we got that is the responsive one -- and we received two. The numbers are in the staff report. I will certainly read them momentarily. The lone bidder that was responsive is right at the budget number. We are going to be asking for some additional funding tonight for a couple of reasons. The primary reason associated with this contract is so we have an owner's allowance that allows us to deal with additional unknown items and conditions as the project moves forward. We've had a considerable -- when I say "we", primarily myself has had a considerable amount of conversation with this bidder. As you can see, the one that we are asking you to consider for award tonight came from B4 Enterprises at $2.4 million. The only other bid, and we only received two, was 2.9. We've done our homework on this as a staff and under guidance from the Town Manager, and we firmly believe this contractor, the responsive bidder, has done the necessary homework to accomplish this. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 46 of 72 And let me explain a little bit about that. For those of you that may or may not spend any time around Golden Eagle Park when the weather is nice, it is a very well-respected tournament field for baseball. I don't know all of the terms to describe it. I can just say what I know is the parking and the traffic. We've actually made improvements in that area recently that the Mayor and Council are aware of to allow for on-street parking. Keeping in mind that this contract has a large number of blackout dates, those are dates that the contractor cannot work in the park for obvious reasons and must leave it in conditions that are clearly spelled out in the specifications and the bid documents and will be ensured by not only Town staff but others associated with the project. Taking all that into consideration, I once again reiterate that I am delighted that the bid came in where it did at $2.5 million. As you can see in the staff report -- and I'll stay close to this microphone so I don't get as many emails and texts -- we're asking for additional funding primarily to cover the owner's allowance, and then there's a little bit of additional funding in there -- let me read this back again. The total bid is 2,619,996.75, which includes an owner's allowance of $200,000. The contract amount exceeds the approved budget by 119,696.75. This is why it's necessary for us to ask for a budget transfer. In this particular case, the funding that we are asking you to consider transferring is a portion of the CIP portion, not the development fee portion, for Pleasantville Park. Kevin will certainly provide additional information on that as we go forward. He did provide some of it tonight. The project is not being canceled. It's simply just being slowed down slightly to allow a little bit more time for design, which also allows us an opportunity to ask the Mayor and Council to consider moving a little bit of the CIP -- again, CIP funding, not the development funding, into this account so we can move forward. There is another agenda item just after this that we'll discuss that also includes the transfer of funds but is directly tied to this project. With that, a lot of information. I will certainly do my best to clarify or provide any additional information you may need. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 47 of 72 MAYOR DICKEY: Thank you. Why don't we start with speaker cards so we don't get bogged down? PADGETT-ESPIRITU: We do not have any, Mayor. MAYOR DICKEY: Oh, okay. Thank you. Councilman? FRIEDEL: Justin, can you refresh everybody's memory as to what kind of damage was done down at that park before all this analysis and staff time? I mean, how many tons of sediment did you remove from that field? WELDY: Madam Mayor, Councilmember, I don't have the exact number. It's in one of my past either PowerPoints or staff reports. I will certainly tell you that it was -- it exceeded 600,000 tons of material, including landscape material and other household items from a long ways upstream. I will say that it cost three-quarters of a million dollars just for the initial part. That didn't include all the additional work performed by staff, including the Community Services staff, park staff, and Public Works staff, which we've continued maintenance on it to minimize the backflow of water over time. But it was -- it's a considerable amount of work and funding. MAYOR DICKEY: Councilwoman? TOTH: Justin, I know I give you a hard time, but you have a proven record of coming in under budget, where possible, so I'm confident that we'll find a way to make Pleasant [sic] Park still happen. I'm a bleeding heart. I really love that project. It's very adorable. But this is far more important, and we've all seen the pictures of what this flood mitigation is preventing from happening again, so I'm in full support of this. I trust you. Thank you for bringing this to the Council. WELDY: Madam Mayor, Councilmember, you're welcome. First, thank you for the kind words. As a reminder, I'm just a spokesperson for a team. There is -- a team that -- not only the Town Manager, but all the directors and a lot of different departments and divisions that are -- combined to bring these efforts forward. So we appreciate that, and we will share your kind words with them. SKILLICORN: Thank you, Madam Mayor. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 48 of 72 Now, this park originally was designed for, you know, floodwater -- you know, for drainage, and obviously, the design has not worked out. There's been some problems there. So I absolutely agree this is a significant project that needs to be done, but I am skeptical that the scope of this project actually reflects what the people of the town want. This is a lot of money. If we spent half this, we could spend over $1,000,000 catching up on a deferred maintenance in roads. If we -- you know, we would have money to do plenty of Economic Development projects. We'd have money to do something, you know, in a -- you know, we've got, you know, the avenue here. We go the next street over that we want to do stuff to help out the businesses, help out and make our town just thrive and make it vibrant, and this is a very expensive project, and this really takes away from that. And when I see that the project adds footbridges, it doubles the width of the paths, it adds a whole bunch of things that really aren't in the scope of drainage, that really doesn't have anything to do with drainage. So I am -- very skeptical that the people of the town want to spend this kind of money on this project. Now, granted, it might take a huge engineering solution to prevent the -- all the sediment from overcoming the baseball fields. I understand that. Maybe that'll cost $1,000,000, maybe it'll cost a million and a half dollars, but it won't cost almost three. So that's what I'm going to go -- and you know, frankly, I'm consistent on this. I voted against the budget because I saw too many projects like this that weren't really focused on the needs of our town. And you know, again, this is a nice thing to have, but we have -- you know, we have a, you know, downtown to develop. We've got deferred maintenance. I don't think this is part of it. So I'm going to be a no. And I also want to point out that there's a lot of people that want to use those baseball diamonds, and they don't have the opportunity to do so, and I think it's poor judgment on our part that people who live in our town, who paid for the town -- paid for this park, paid for the baseball fields and are probably going to be paying almost $3,000,000 for these improvements, they can't use the baseball fields because they're not -- because TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 49 of 72 they're locked off to people that, you know, are not part of tournaments, and I think that that's a mistake. At least one of those diamonds should be open to the public. Thanks. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. When I first looked at this as an agenda item and I looked at the numbers, it was very confusing to me, and I think that confusion still permeates the room tonight. If I'm right, which I believe I am, we've already approved $2.5 million on this project. So even though I think Allen makes a very good point that there might be things in this project that might go far beyond flood mitigation, it's already been approved. We've already voted on it. And all they're looking for right now is $119,696.75 to put it into the bid that we have from B4 Enterprises. So they ask us for 119, not for 2.5. So for that reason, just to fit in the bid parameters, I'd be for it, even though, like Allen said, I do have reservations about it overreaching, but I would be for it. WELDY: Madam Mayor, if I may, during this brief discussion, I realize that I failed to mention something. This is only phase 1 of this project. Phase 2, which will be much less expensive, will deal with the toe, the face, and the throughput of the dam. For that, we have approximately a $100,000 grant from the Flood Control District to help with that. So this is phase 1. Phase 2 is under design. That's basically stabilizing the front of the dam and the toe of the dam, which is the bottom next to the park, and then the large culverts that allow the water to flow through. And we'll have more information on that as part of our budget process as we move forward. FRIEDEL: Justin, if that dam fails for any reason, there's a lot of homes that would be at risk. Am I correct? WELDY: Madam Mayor, Councilmember, correct. Basically, everyone east of Golden Eagle Dam on either side of Ashbrook Wash could potentially be inundated in floodwaters to some extent, but the further downstream you go, once you get closer to Hamilton, Saguaro, and east of that, we would have outflow into the neighborhoods, TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 50 of 72 and we know this based on modeling from the worst-case scenario that was provided as part of the flood control/Town of Fountain Hills project that did the Ashbrook improvements at Saguaro Boulevard. FRIEDEL: So -- and I am sensitive, Allen, to your comments about eight-foot sidewalks from five-foot. If we're ripping this thing up, we may as well get this stuff done and get it done right to start with and solve this problem once and for all so that there's at least some mitigation and stopping anything from going further downstream. So I am sensitive to your comments, Allen. I agree. But if we're ripping this all up, we may as well put it all back together the right way. WELDY: And if I may again, Madam Mayor, this project not only includes all of the necessary drainage improvements, but in order to accomplish this, the majority of the infrastructure which is built in the washes and drainage channels has to be removed and replaced. As part of that, we are also bringing the facility up-to-date in regards to accessibility. The lion's share, if not all of the physical barriers related to accessibility, including the pedestrian bridge, will allow the entire facility to be used by all regardless of their condition. So there's -- while we're pulling it out and we're having to fix it, we're not putting some of it back in the same place, but the improvements are making substantial upgrades to not only the infrastructure as a whole, but the accessibility. MAYOR DICKEY: Rachael? GOODWIN: I'm going to piggyback because you're exactly right, Justin. I wanted to share some of the -- some of the things that you're noting in the scope are actually what we learned sort of is a best practice during the cleanup process. When we were -- when we were inundated with all of that mud and muck and debris, we couldn't get vehicles in there because the side -- it wasn't wide enough. Five-foot side -- they're not wide enough to get some of the larger equipment in that's needed to excavate. And as we do this, we want to build smarter so that if we do have issues and as we do our regular maintenance to prevent these from happening again, we want to be able to get the right equipment down there to maintain the spaces. Same thing with the pedestrian bridge. I was not a super fan when we brought that TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 51 of 72 concept up, but as we worked through how do we make sure that we create these drop basins and these storage spaces to slow the water down, that was another problem. It wasn't just the sediment that was coming through, but it was the speed of which that water was moving. How do we slow that down? The best way to do that is to create these catch basins. You need space to do that. If those are filled with water, we have no way to navigate over those spaces. And even if they're not filled with water, they're deep. We certainly don't want to encourage, you know, access through there. So these were a little bit lessons learned on the back end of the cleanup process, so there is some foresight and some thought put into that. But I can certainly see why that looks like that on the surface, so I wanted to make sure that you guys understood and knew that there was some intentionality there, too. MAYOR DICKEY: And we had this discussion when we approved this item, and really, you anticipated 2.5 million, and a project of that magnitude that's coming in at 2.6 is quite impressive to me. I think that earlier, when we looked at the whole presentation of the CIP, we saw where $94,000 was not going to be spent on sidewalks, I think. We saw where $50,000 wasn't going to be spent on some of the -- I think it was low rows or something. There was another big project that I can't remember how much we were saving on that. And I don't remember what the project was. It was, like, a $2,000,000 project that we were saving a large amount on, and then, obviously, the 1.5 million of the Shea Boulevard, which will all come into play as we move forward this year and we're seeing things maybe coming in higher than we thought. But this is incredibly close. The scope of the project and the decisions that were made on how to go forward with it were made by engineers and professionals in order to, hopefully, prevent what happened back then, which is -- was quite dramatic. And maybe you want to look in The Times and look at some photos from -- he's saying no, don't look. But it was -- amazing. And at the time, I think, the Town saved 600 grand, I think it was, by doing the work ourselves. So I am absolutely in favor of this. It's necessary. And I would take a motion if anybody has one. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 52 of 72 MCMAHON: I'll make a motion. Move to approve Professional Services Agreement 2025-026 in the amount of 2,619,696.75 and any associated budget transfers. KALIVIANAKIS: I'll second. MAYOR DICKEY: Thank you. Roll call, please. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: No. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. PADGETT-ESPIRITU: The motion passes five to one. MAYOR DICKEY: Thank you. Sorry about that. Okay. Next is another -- about the same project and about how the process works to go forward with it. WELDY: Madam Mayor, Councilmembers, and I thank you for your patience tonight. Each of the projects that we have discussed are important to this community, this council, and the staff as we work to bring them to fruition to ask for your approval to fund them tonight or the balance of funding. This one right here is directly tied to the Golden Eagle impoundment project. We have discussed, certainly, over the months and years, the complexities and challenges associated with a civil engineering project of this size. We simply do not have the staff available to dedicate the time necessary to ensure that all of the plans, specifications -- so policies, plans, and procedures that are part of this project and the TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 53 of 72 approved plans, we don't have the staff to cover that. Even if we divided it up between several of us, it then becomes more cumbersome and complicated because we can't not all be there when the key items need to be addressed and concerns need to be addressed. The decision to solicit a construction management team has taken a considerable amount of time, over a year. During that time, we have discussed different options with the Town Manager, with Procurement. We've talked to others, including some peers of myself, and we've gone back and looked at history for larger civil projects in the Town of Fountain Hills. With little to no exception, there has always been a construction management company that would oversee a project of this size for obvious reasons. They're going to be there every single day, and they're going to have their eyes on all of the project as it moves forward. Not only that, but they're going to be sending reports back to myself, the town engineer. We will share that with the Town Manager. Kevin will certainly be involved moving through all this because it's impacting part of the infrastructure he's responsible for overseeing with his staff and crews. With that, there are still going to be some complications, and we are aware of this, and I'm bringing this up now. We have had a relatively dry last couple of years, or, I should say, we have not had a substantial amount of backwatering into Golden Eagle Park, partly due to the weather, and part of that due to the ongoing maintenance by Public Works, the Streets Department, and Community Services and Parks. It should be noted that when we released the request for proposals, I don't have the exact number of people that pulled the documents to read them, but it was a relatively large number. Rob would certainly have that, and we could provide it if you request it. However, I was personally surprised that we only got one solicitation, and it was from a company that we had not only worked with in the past, but they've also done a considerable amount of design over the last 25-plus years for the Town of Fountain Hills. Tonight, we're simply asking you to consider approving funding for a construction project with Wood Patel. The staff report goes into a considerable amount of detail. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 54 of 72 I'm going to hit on a few of the key items here, including but not limited to the amount of funding that we are asking for. The construction cost for the contract is $261,000. Of that, we have a little bit of contingency in there should we need to make any adjustments along the way. And I believe for this one, it's ten or 15 percent. I thought I spelled that out here, but I'm not seeing that now. MAYOR DICKEY: 96,967? WELDY: Correct. So we have not the budget for this in the Golden Eagle project, but we have identified other places in the CIP where we don't necessarily need that funding now, and it will benefit this project and, at a later date, allow us to go forward with the other project. And it's been a while since I wrote this one, so I'll have to go back and look at it. Well, there it is. I finally found it. So the lion's share, in fact, all of the funding for this will come from the CI [sic] portion of Pleasantville. Again, not the development fees. That's a separate pot of money. But from the CIP portion. As I explained earlier, and Kevin as well in his update for the capital projects, it's not going to stop that project. It's going to slow it down and allow him a little bit of time, which he described, to complete the design. As you all know, the budget process is coming up. We are going to be starting that here in just a few days, believe it or not, and that will be part of the budget discussions is the Pleasantville Park and the funding for that. And also, when we come back and report closer to the end of these projects in the fiscal year, we'll also be able to more closely define the unspent fund balance for each of the CIP projects that were approved this year. Again, a lot of information about a project. A lot of challenges. A lot of complexities. But I'll certainly do my best to answer any questions you may have. MAYOR DICKEY: Thank you. Do we have any speaker cards? PADGETT-ESPIRITU: No, we do not. MAYOR DICKEY: Thank you. Councilman Skillicorn? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 55 of 72 SKILLICORN: Thank you, Madam Mayor. Director Weldy, so even though I'm critical of the project, I understand that there's a need to manage it. Even though this is, like, ten percent of the cost, it adds a considerable amount of money, but, you know, run us through. I mean, I know that Town staff is probably not the best equipped to manage this through the actual project management, so I'm trying to, you know, weigh the concerns of -- you know, imagine if you're at the site. If our building inspector -- actually, our building inspector is probably not qualified for this, but actually inspect that things are done correctly, managing it. You know, what kind of staff resources are we saving and actually be able to do on other things instead of -- with this project, how much -- what are we saving staff-time-wise? You know, does it equal the -- you know, the $260,000? WELDY: Madam Mayor, Councilmember, I mean, I can't speak for everyone. I certainly have a background in project and asset management, so I'm going to share my experience in that field, plus as a Public Works Director. It would be myself, the Town Engineer, the Assistant Town Engineer, and our Civil Engineering inspector. So that's the entire Engineering division and the Public Works Director. Each of us would be contributing a few hours either a day or a week. And then, it would also impact Kevin and a good percentage of his staff, including Brandon and several others, as we work through the complexities of their irrigation system because keep in mind, during this project, there are several areas of this park that simply cannot go without water. They have to have water because we don't want the current infrastructure to die, the landscaping. I would estimate a week, total, staff time. We would probably have upwards of 40-plus hours over the entire staff for every week. SKILLICORN: And that's if we do not approve this, or if -- WELDY: Correct. SKILLICORN: Now, if we approve it, how much staff time is our Engineering Department going to be spending there? WELDY: Initially, for the submittals -- I would estimate probably about ten to 15 hours a TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 56 of 72 week reviewing submittals. In regards to the balance of the contract, I will serve as the contract administrator, so I will review all the pay applications and approve them prior to them being processed, so probably ten or 15 hours every couple of weeks for me related to that. And then, obviously, one or the other of the Town engineers, either the Town Engineer or the assistant engineer, will likely attend along with our Civil Engineering inspector and Kevin and whoever he designates, either weekly or biweekly (indiscernible). SKILLICORN: And what is your confidence that we're not duplicating work that we're basically paying for in this contract? WELDY: I have an incredible amount of confidence in that simply because we don't have the staff to go out there and stay on the job for eight or ten hours a day, and I think they're going to work four tens to try and maximize their efforts while minimizing the disruption. Really, all we're going to be doing is reviewing the submittals and the payouts. We have someone else that's ensuring everything else is done correctly. SKILLICORN: Okay. And even though I'm critical of the scope of the project, I know it needs to be managed, so I'm in between a rock and a hard place. MAYOR DICKEY: Councilwoman Toth? TOTH: I echo that. I'm also finding myself in between a rock and a hard place, and for a slightly different reason. I think about the amount of projects that our Town staff manage in a year, and for this one project that is a large scale, we'd be paying a manager over a quarter million dollars. The scale isn't quite making sense to me. I understand that this is more hands-on than you would be able to do with the staff time we have. I want, obviously, the project to be managed. I want to be able to save you what extra labor that would be. Is there anyone who would do it for less than a quarter million dollars? WELDY: Madam Mayor, Councilmember, if there was, they would have submitted to the RFP. TOTH: Fair enough. WELDY: On average, this type of contract is equal to about ten percent of the bid for TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 57 of 72 the project that they're looking at. I will admit that our Procurement Officer did an incredible job of negotiating because they did ask for 12 to 15 percent. He talked them back down to ten. So thanks, Rob. We appreciate your help on that. TOTH: Thanks, Rob. Okay. MAYOR DICKEY: Councilman? FRIEDEL: Justin, is the cost of this going to be 261 or 241? Because your agreement -- your agreement on line 3 says 241,969. SKILLICORN: Make a motion. WELDY: Councilmember, I'm not seeing that on my staff report. Is it in the -- in the Professional Services Agreement? SKILLICORN: In the actual -- FRIEDEL: Yeah, the actual -- SKILLICORN: -- the actual agreement. FRIEDEL: Yeah, the actual agreement. WELDY: Rest assured, we will correct that. It should be 261,969.67. FRIEDEL: Okay. WELDY: So prior to Rob sending that out for signatures, that will be corrected. FRIEDEL: Okay. All right. I just thought maybe we were getting a discount. SOLDINGER: (Indiscernible), Justin. MAYOR DICKEY: (Indiscernible). SOLDINGER: Mayor, Council, that was something that I specifically talked to the Procurement administrator about when we were going through the staff report reviews. The extra 20,000 to make it the 261 includes the owner's allowance, so it's, really, just in case we need to dip into that, so we can go up to that extra amount. WELDY: Thank you, Paul. MAYOR DICKEY: All right. So that's the amount, then, what we're seeing, but again, the 20,000 is for just in case. FRIEDEL: Yeah. (Indiscernible). MAYOR DICKEY: Yeah. Okay. Any further discussion? Motion, please. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 58 of 72 TOTH: Move to approve -- I lost it. I'm sorry. Okay. Move to approve Professional Services Agreement 2025-027 with Wood, Patel & Associates, Inc., for construction management services in the amount of $261,969.67 and the associated budget transfer. KALIVIANAKIS: Second. MAYOR DICKEY: Thank you. Roll call, please. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: A painful yes. MAYOR DICKEY: Yay. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. PADGETT-ESPIRITU: Passes unanimous. MAYOR DICKEY: Thank you, Angela. Thank you. WELDY: You're welcome. Thank you for your patience. MAYOR DICKEY: Next, we are going to have Amanda come talk to us about downtown. Are you -- GOODWIN: This is the last one, hopefully, in terms of our budget conversation over the evening. MAYOR DICKEY: Money -- the last money one, then. JACOBS: (Indiscernible). MAYOR DICKEY: And then John will be explaining some changes to us, but hopefully, that should be pretty easy. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 59 of 72 GOODWIN: Yes. MAYOR DICKEY: Thanks, Amanda. JACOBS: You're welcome. You guys still hanging in? MAYOR DICKEY: Yes. JACOBS: All right. One, first, I want to say, usually I provide the PowerPoint presentation as part of the packet. I wasn't going to do a PowerPoint, but there is a few questions, so I did this last-minute, so it is not in your packet. I will make sure to provide that to the clerk, and we'll make sure it's part of the official packet, but everyone will get to see what I'm doing here. And then, because, again, we have spoken about a lot of things, so a couple things. One, last month, the Mayor and Council did approve unanimously a downtown strategy. Going into that meeting, everyone was excited seeing that unanimous approval. There is even more excitement. Hopefully, you're hearing about it, feeling it, and are like, when are we going to start getting stuff done? So admittedly, we have $700,000 in the downtown fund, but as staff, when we went before Council and requested to spend some monies in this current fiscal year of '24-'25, we only presented 90,000. So we've got 90,000 that Council has approved. There's 700,000 in the fund. As your Director and then your Town Manager, we do not have the authority, even though the money is there, to use $100,000, so before you to request, can you please allow me to use $100,000? And we'll break down quickly what that is for. So one, we've had multiple requests, not just from The Avenue Merchant Association but other property owners, of wanting to wrap our palm trees that are along the avenue and along the commercial part. And so as you guys heard probably about a month ago from Manager Goodwin, folks were starting to ask questions like, are you seriously putting up lights on the Linear Park already? Yes. It takes a while. So while we have that vendor, we think, why not pull the trigger, if you will, and wrap the palm trees? And we have been working the last couple of years, and Economic Development and Community Relations, to get more photography, videography to make sure we are just TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 60 of 72 lighting up the downtown and people are coming here to shop and dine. And again, that connects to our local sales tax base. So the 25,000 would allow us to wrap 52 palm trees, about one to three gazebos. And what we're also wanting to do is some folks aren't understanding, believe it or not, twinkly lights or wrapping, or some folks think, well, Amanda, if you wrap the palm trees -- me not specifically -- that we don't need to do pedestrian lighting or solar lighting. That is not the case professionally. But to start to do this, we're hoping, again, to inspire folks. You'll see meeting invitations from me to invite Council on a walk-along; again, there are some folks from the TAMA association, so to have conversations. Some folks think because we're a dark sky community, we can't write these -- wrap the palm trees. That is also false. But instead of just hearing from me, we'll have representatives from the Dark Sky Association. So we are hoping, if we get approval tonight, we will be texting the vendor this evening, and tomorrow or Thursday, we will start wrapping these babies up and hope to light up not the Linear Park, just, again, the palm trees beginning in November. And November is also Small Business Saturday, so again, to just be promoting shop local and, as Councilmember Skillicorn said, really make it a vibrant downtown. The second request for 25,000 is for 3D design specifically for the Avenue District and the Business District. If you look to the far right, so plan view, it's potential revised avenue, some folks -- I get it. It's hard for me, too, to picture. So when we talk about sidewalk cafes, expanding the sidewalks for more commerce, people get the idea. And then you'll see to the left, that sort of a 3D, that has nothing to do, obviously, along the avenue or Verde River or Parkview. And so we're wanting to make sure, when we come before Council in January and February with some of the zoning changes, that we have the support from community members, again, residents, businesses, and there's a clear understanding of what we're trying to do. And again, from the Business District, you guys have heard from day one that I have felt that the zoning is not correct, especially if we're wanting to attract healthcare and bioscience, so having something like this, again, helps me pitch to these types of TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 61 of 72 businesses. And again, we need that diverse economy. When you attract those type of industries, that's a primary job. They have the wages to, again, shop, dine locally. Next, entryway signage. So there was a question, is this related to wayfinding signage. No, that is not correct. So again, we're hoping to start to pull the trigger on Entryway Sign Package. So again, if you think of the boundaries of the entire downtown, what is that going to look like with permanent entryway signs to, again, just welcome and say, this is downtown Fountain Hills. The same with the various districts of what is that going to look like. Again, sometimes I don't like to use examples, but there was questions. I did this last-minute. It does not mean this example is what we're doing, but just to give an idea. And then last, this is actually -- I knew I was coming before Council and then added this, and I am responding and trying to be proactive instead of reactive. But again, as you guys know, myself and Betsy, with the Chamber of Commerce, do business retention site visits. Earlier this month, we met, again, with TAMA -- they meet once a month -- and have just shared the summertime was really tough, can we activate the avenue and the downtown? And then they also brought up -- and it's something that I wasn't thinking about, but they're like, Amanda, it's still flipping hot. I'm like, yeah, you know, I'm bothered by it, too. But what they're thinking about is our winter visitors are going to be delayed in coming to Arizona and Fountain Hills because it's so hot, so again, will the sales start suffering, the visitors, the shoppers going in, and so requesting 25,000 to then make up the $100,000 to do some new events. So live converts. They've talked about doing maybe some arts, murals at Avenue District and then Plaza Fountainside. And then, of course, if you're going to have these events, there is going to need to be some marketing. Some of you did call me over the last couple of days and, like, do you really need all of this? I'm hoping you know, myself and my colleagues, that we try not to go all the way up to, you know, the very penny and we'll do our best to negotiate, but want to ask for it now and not have to come back and ask for more. And so with that, Mayor and Council, happy to answer any questions, but not sure if you TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 62 of 72 want to open to the public first. MAYOR DICKEY: Yes, I was asking if we have any cards. PADGETT-ESPIRITU: Yes, Mayor, we have one. James Bourdamis. MAYOR DICKEY: And also, the Chamber had spoken earlier because she had to leave. PADGETT-ESPIRITU: Yes. BOURDAMIS: Good evening, Mayor, Council, staff. My name is Jim Bourdamis. Been a resident of Fountain Hills for 20 years. My wife and I own four businesses on the Avenue of the Fountains, and I'm the chairperson of The Avenue Merchants Association, known as TAMA. I'm here to support the investment of the $100,000 to the downtown fund proposed by our Director of Economic Development. Our town relies on sales tax and fee income. Nearly two-thirds of the town's funding source comes from local tax and fee income. Stimulating economic activity is imperative to the financial health of the town. Investment in the promotion of our local businesses is not a luxury. In my opinion, it's a necessity. It's time to help our small businesses rebound and grow. Recently, the Town CFO provided a '24-'23 comparative recap of revenue by industry. Our restaurants and bars are down over four percent from the prior year. Nonfood retail, if you exclude the Internet sales, is also down two percent, and construction is down as well. If you factor inflation on top of that, two to three percent, the downtown businesses -- the downturn is actually even more pronounced. Our population remains flat, making it even more difficult to increase revenue and tax income for the town. It's time to prioritize the economic revitalization of our downtown. I believe all of you have expressed a commitment to supporting business in our town. Certainly, we can afford 185,000 for a pickleball court, which really doesn't generate revenue. It's a nice thing. I'm not opposed to it. But I would think that, you know, this is -- a reasonable ask. If you think about it, we have 200 merchants -- I had asked Betsy how many merchants we have downtown. She thought maybe even in excess of 200 merchants. But if you're TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 63 of 72 talking about a $100,000 investment by 200 merchants, that equates to, what, $500 per year. I mean, you think of a sign or an ad, it's gone, right? So I don't -- again, I don't think that's a giant ask. Our merchants do their fair share to promote business in the town. We do wine walks, we do health walks, art shows, fashion shows, charity events, and most of us are members of the Chamber. But we really need visual appeal and promotion. You know, everybody's trying to do their own thing, but if we don't improve that appeal down there -- it's pretty much looked the same way for four or five years. That's a tough sell. And you guys are all consumers as well. You know, I don' t know how often you get downtown, but, you know, we don't -- always see their faces. So we really need appeal is what we're talking about. MAYOR DICKEY: Thank you, Jim. We're out of time. BOURDAMIS: Yeah, you got it. MAYOR DICKEY: Thanks a lot. BOURDAMIS: Yeah. MAYOR DICKEY: Appreciate it. That's it. Councilman? PADGETT-ESPIRITU: That's it. SKILLICORN: Thank you, Madam Mayor. Director Jacobs, a couple questions. JACOBS: Yes. SKILLICORN: The lit-up palm trees, is that -- what's the useful life of those lights? That's not -- that's not a annual occurrence where we need $25,000 to rewrap them. They should last a few years, right? JACOBS: Madam Mayor, Councilmember Skillicorn, that is correct. And then in doing this -- again, it'll be through November. Is it to the spring? Is it longer? Again, by doing this, we're then going to get that feedback again from the community, so residents, businesses, visitors. SKILLICORN: And Director and Council, Mayor, I've seen it, yeah, yearlong, so it's more TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 64 of 72 than just the Christmas season for those. A lot of this excites me. I -- you know, when you said doing events there, that's something that, you know, kind of -- my heart kind of skipped a little bit. I'd love to see -- you know, I have a vision for this -- these two blocks being a culinary district and bringing in people that not only will just visit, but they'll visit in multiple places when they come, and I think that that's a great idea to have them come here. And actually, I would love that the intent of this council is to give you -- you know, if you have money left over in one area, you can, you know, spend more money on advertising, right? That would be my intent of this. So I'll make a motion to approve for $100,000. TOTH: I'll second that, but I did just want to make a comment, if that's all right. I wanted to point out, for anyone who didn't catch that, the go-getter attitude that Amanda showed a minute ago. She said, if we approve this, she will text the vendor tonight to get those lights on the palm trees. That's incredible. I just wanted to make sure that was pointed out and you got your kudos. JACOBS: Well, thank you, but -- SKILLICORN: The exception -- now, the standard's been set. TOTH: Yeah, but I think you can live up to it. JACOBS: Admittedly, though, it's -- Kevin's going to do the texting, so we'll give -- Kevin some of the credit, too. But we're told -- TOTH: Thank you, Kevin. JACOBS: Yes. We're told sometimes in government, we're slow, and I try to say, oh, really. FRIEDEL: Is 100 grand enough? Do you need a little more? JACOBS: Is there a second? Was there amendment to the motion? Is there 150? MAYOR DICKEY: Oh, gosh. Vice Mayor? JACOBS: No, if you're being serious -- KALIVIANAKIS: Thank you, Ms. Mayor. JACOBS: -- Councilmember Friedel, 100 is enough. We appreciate it. But I appreciate the offer. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 65 of 72 KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I'd like to also make a motion -- or second to approve this budget transfer. When we were talking about wayfinding signs earlier, I mentioned a group of people that were for it, and again, I see the same group for this downtown improvement, and that's the Chamber of Commerce, TAMA, the business owners in that district. Out-of-town visitors would love to come to our downtown area and have it more vibrant, especially at night with the lighting. And also, it's called for in our Strategic Plan and our General Plan. And so I think this is a great idea, and I hope we pass it tonight. And good luck. JACOBS: Thank you. MAYOR DICKEY: We have a -- we have a motion and a second. Could we have a roll call, please? PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. PADGETT-ESPIRITU: Motion passes. MAYOR DICKEY: Thank you. JACOBS: On behalf of staff, thank you. We appreciate your support. MAYOR DICKEY: Thanks, Amanda. Our next item is a public hearing about some zoning ordinance. I think it's kind of some housekeeping and some language. So the hearing is open. We'll hear from John. We TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 66 of 72 can ask questions, I'll see if there's any speaker cards, then we can discuss, close the hearing, and have a motion. WESLEY: Good evening, Mayor and Council. Hopefully, we can move through this fairly quickly. We have been in the process of updating each of the sections in Chapter 2 of the Zoning Ordinance, which is the Procedures chapter. You've already done Sections 201, 202, and 204, and so this evening, we have Section 203, dealing with temporary use permits and updating it. We've had to set a -- now I lost my words -- organization for each of the sections so they can read the same and it's easy to find the information in each of the sections because they all flow the same, so that's been one of the purposes with each of these. So you see -- if you look back over what you've done in the other sections and look at this, and you'll see a lot of the language is very much the same. But one of the things that we're proposing to add in Section A of the ordinance, there's an existing purpose statement, but we're adding a statement about requirements because it's not clear in the current code, necessarily, when a temporary use permit is required and what distinguishes a temporary use permit from a special event permit that's handled through the Community Services Department, so we're trying to clarify some of that with this requirements statement at the beginning. And just some example of some of those things that are in the Zoning Ordinance that do require temporary use permits. Here's a list of some of them that are in there, including the temporary banner permits that we approved, the latest update to the sign ordinance. So Section B, then, covers application process. Again, this is very much like the other sections of the code that we've done. Applications are filled out online. Provide a project narrative. A site plan is needed for what's being proposed, any additional information that might help us to understand what is needed, and then, also, provides a distinction between when we collect the temporary use permit fee that's in the schedule of fees and the administrative use permit. So it's one of those items that's listed in the code as needed, temporary use permit. Those are the ones that take a little TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 67 of 72 bit more time that could potentially come to the Council if it's -- there's an appeal, that type of thing, so that has a higher fee than those that are just handled purely administratively, have a use permit request. So in the ordinance as it was presented to you, you find in your packet, as we continued to review that and got a little bit of feedback on it, did notice a couple of words that would probably be better if they were changed, and so staff would make these changes. As shown here, the word changed marked out for the word request, and then correcting some language in that later. For applications requesting a temporary use permit, they could read a little bit better with those changes. Wanted to make Council aware that that would be in the ordinance going forward. Section C, then, of the section has review and approval criteria. Again, similar to the other sections in Chapter 2, there's initial staff review, did we get what we need. If not, going back and forth with that. They make sure we have the correct information, and then once we have it, then able to move forward with action. In this case, these are approved administratively, as stated in the code, and adding some language to the copy that the approved temporary use permit should be maintained on-site, so if there's ever a question whether or not they've gotten approval, it's easy to find that out. And then a statement about transferability was relocated to this particular section. And then, again, as we were looking through it again, we noticed that in this section -- usually we talk about a filing fee, but for some reason, right here we're using the word application fee, and so just for consistency, there's not two different types of fees. Proposing to change that from application fee to filing fee. MAYOR DICKEY: (Indiscernible). WESLEY: Yeah. Okay. Or a filling fee. We could have one of those, too. Yeah, we'll fix that. Thank you. Yeah, all caps, doesn't catch that very well. And then another change later on in Section D on appeals, it says that the matter shall be appealed, but the applicant may not want to appeal, so we don't mandate the appeal, and so we'll change the "shall" to a "may". And that's done by the applicant. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 68 of 72 And then time limits, Section E of the code, a minor change there. So the -- when it's working well, an applicant knows what they're doing, they apply for their permit at least a few days, if not a few weeks, in advance so it's all in place, and so it's not necessarily effective the day it's issued. It's effective the day we put on the permit. So I think that will work better. Section F on revocations, there's no proposed changes in that section. So those are the proposed modifications to the section of Chapter 2. Any questions? MAYOR DICKEY: Thank you. Does Council have any questions? Do we have any speaker cards? PADGETT-ESPIRITU: No, we do not. MAYOR DICKEY: Thank you. Councilwoman? TOTH: I just -- I see this as pretty straightforward. And thank you, John. So I'd just like to make a motion to adopt Ordinance 24-15. MAYOR DICKEY: Consider the hearing closed. TOTH: Sorry. MAYOR DICKEY: That's okay. KALIVIANAKIS: And second. MAYOR DICKEY: Thank you. Roll call, please. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. MAYOR DICKEY: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 69 of 72 MAYOR DICKEY: Aye. PADGETT-ESPIRITU: Motion passes. MAYOR DICKEY: Thank you, Angela. Our last item -- I'm not sure. Is this Rachael, or -- GOODWIN: Actually, I think Kevin's going to take this one -- MAYOR DICKEY: Thank you. GOODWIN: -- and give a little background. I'd just like to clarify that Kevin's already sent the text. I saw the screenshot. SNIPES: I mean, I've heard of stealing your thunder, but man, I didn't even get up here. Yeah, so we are confirmed for tomorrow. They should be starting the tree wrapping tomorrow, so that's exciting. So thank you guys very much. Appreciate it. Madam Mayor and Council, I'm here tonight at the direction of Council. There was a request to look into bringing the formal processes that the Public Art Committee has been doing to an internal committee, and with working with Aaron and John, with Development Services, this was actually more complicated than we thought it would be just because they were weaved into a whole bunch of different aspects of how we do business. After doing the review, we found that we do recommend moving the public art processes to an internal commission, mostly because we're transitioning more from doing the purchasing side of public art to maintaining our public art that we have. What's this mean for the Public Art Committee as we know it? It really makes it to where that they become a lot like most of our 501(c)(3)s are today, and that means they're more advisory. If they -- if someone comes to them and they -- and has a piece of art and they still want to present it to us, they still will. And then once it becomes the formal side of things, it will come to our historic and culture commission, and then they'll vote on it to move it forward. That will go with the developers, as well, will move into the historic and culture. It'll help streamline things. It will make it more transparent. We'll have meeting minutes that are actually verbatim versus more of an agenda-sized as the Public Art Committee had been done, and I think it'll help make it to TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 70 of 72 where that if the public does want to come and talk during that meeting, it does open to the public to where they can have conversations around new art pieces that are being brought up as well. The other thing that was brought up was, well, what happens if we decide, as a town, that we would like to purchase a piece of art or if someone's offering to donate it, we need some expertise? Well, we still have those people available in town, and we would just form an ad hoc committee to have them take a look at it along with staff and then be able to come back and present that to the historic and cultural committee and then bring it to the Town Council as a whole. So we think this can function really well. And basically, what we'll do is repeal the resolution that went to -- that had it go through the Public Art Committee, and it will now go through our historic and cultural. And with that, I'll take any questions that you have. MAYOR DICKEY: Thank you. Do we have any speaker cards? PADGETT-ESPIRITU: No, we do not. MAYOR DICKEY: Thanks. Any questions or comments? Councilwoman? TOTH: I support this for so many reasons, but to save everybody time, I'd like to just make a motion to repeal Resolution 2023-11 and to approve Resolution 2024-41. Thank you, Kevin. FRIEDEL: Second. MAYOR DICKEY: Thank you. I just want to say that we definitely appreciate everything that the Committee's done already, you've accomplished for our community over all these years. We have a reputation for all of our beautiful scenery and our fine attractions, and I think that the public art collection is one of the really special things about our town, and they had so much, obviously, to do with that, so I want to thank them. And I don't know if we'll have anything or if they're just going to meld into that, but I just want to make sure that we appreciated -- our appreciation or that we expressed it. TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 71 of 72 Anyway, roll call, please. PADGETT-ESPIRITU: Councilmember McMahon? MCMAHON: Aye. PADGETT-ESPIRITU: Councilmember Toth? TOTH: Aye. PADGETT-ESPIRITU: Councilmember Friedel? FRIEDEL: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Mayor Dickey? MAYOR DICKEY: Aye. PADGETT-ESPIRITU: Motion passes. MAYOR DICKEY: Thank you. Our last item is about the discussion direction to the Town Manager. We had one speaker talking about temporary uses or special use permits, so we might want to get a little follow-up on that for us, please. Was there anything else that we heard that we need to get back? Any future agenda items? Or whatever you -- have there. TOTH: It applies to one of those things. Councilmember Skillicorn had mentioned the baseball -- I almost said courts. Geez. Baseball fields. Four hours of sleep, guys. It does a number on you -- the baseball fields being locked up. I -- being sappy and being someone who was a softball pitcher and was on one of those fields almost every single day, like, every summer of my life, I relate to that a lot, and I think it would be wonderful if we found a way to make that available for the public when -- obviously, when there are not tournaments going on. So if we could explore that. I don't believe that's something that would require an agenda item, but if it is, let's do that. GOODWIN: There's quite a bit of background on that conversation, so what we'll do is we'll get a -- we'll get a memo out to the Council, kind of exploring the background and TOWN OF FOUNTAIN HILLS OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES Page 72 of 72 how we got here and then, you know, moving forward. Does that work? TOTH: Okay. Um-hum. GOODWIN: Okay. Great. MAYOR DICKEY: Thank you very much. Is that it? We're adjourned. Thank you. Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on October 15, 2024, at 8:12 p.m. TOWN OF FOUNTAIN HILLS _______________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________________ Angela Padgett-Espiritu, 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 15 day of October 2024. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th day of November 2024. _____________________________ Angela Padgett-Espiritu, Town Clerk ITEM 9. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-44, abandoning the 10' Public Utility and Drainage Easements along the rear and northeast property lines of 15248 E. Sierra Madre Drive (Application A24-000015). Staff Summary (Background) This is a proposal to abandon the pre-incorporation 10' Public Utility and Drainage Easements along the rear and southeastern property lines of Plat 506-C, Block 2, Lot 20 (15248 E Sierra Madre Drive).  Kelly Grays, the owner of the property, is planning to construct a perimeter block wall which will encroach into the existing easement.  Staff have reviewed the site to determine the potential on-site drainage issues in addition to the Town's general interest in the easement.  There is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that the owner of the lot is required to pass the developed flows generated by the upstream lots across their property.  All public utilities have approved the abandonment of this easement. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2024-44. SUGGESTED MOTION MOVE to adopt Resolution 2024-44. Attachments Vicinity Map  Aerial Photo Map  Res 2024-44  Exhibit A: Survey  Form Review Inbox Reviewed By Date Town Manager Angela Padgett-Espiritu 11/05/2024 06:27 PM Form Started By: David Janover Started On: 10/07/2024 03:46 PM Final Approval Date: 11/05/2024  BEELIN E H W Y SHEA BLVD PAL I S A D E S B L V D SAGUARO BLVD SAG U A R O B L V D PALIS A D E S B L V D PALISA D E S B L V D SA G U A R O B L V D FO U N T A I N H I L L S B L V D McDOWELL M O U N T A I N R D FO U N T A I N H I L L S B L V D SUNR I D G E D R EL L A G O B L V D AVEN U E O F T H E FOUN T A I N S PA N O R A M A D R EAG L E M O U N T A I N PK W Y CR E S T V I E W D R PALO M I N O B L V D SIERRA M A D R E GRANDE BL V D G O L D E N E A G L E B L V D E A G L E R I D G E D R VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is Ar i z o n a F O U N TAIN HI L L S T OWN OF INC. 1989 TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FO R T M c D O W E L L Y A V A P A I N A T I O N SALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 15248 E Sierra Madre Dr A24-000015 DEVELOPMENT SERVICES AERIAL PHOTO MAP A ll that is A r i z o n a F O U N T AIN HIL L S T OWN OF INC. 1989 2023 AERIAL ZONING:R1-10 LOT 20 ABANDON 10' P.U.E. & D.E. E S I E R R A M A D R E D R LOT 21 LOT 19 N E L E N A D R LOT 18 PLAT 511 LOT 5 RESOLUTION 2024-44 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE- INCORPORATION 10' PUBLIC UTILITY AND DRAINAGE EASEMENTS ALONG THE REAR AND SOUTHEASTERN PROPERTY LINES OF PLAT 506-C, BLOCK 2, LOT 20 (15248 E SIERRA MADRE DRIVE), FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, BOOK 159 OF MAPS, PAGE 31. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the governing body of real property located in the Town of Fountain Hills (the “Town”), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the certain public utility and drainage easements, located at the rear and southeastern property lines of Plat 506-C, Block 2, Lot 20 (15248 E Sierra Madre Drive), Fountain Hills, Arizona, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 159 of Maps, Page 31, and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills November 19, 2024. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Angela Padgett-Espiritu, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney EXHIBIT "A" TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT LOT 20 A24-000015 ITEM 9. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 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: Professional Services Agreement 2025-040 with TischlerBise to prepare an updated Land Use Assumptions and Infrastructure Improvement Plan report, and related budget transfers. Staff Summary (Background) Arizona municipalities may assess development impact fees to offset costs associated with maintaining necessary public services to accommodate development growth. Further, Arizona Revised Statutes 9-463.05(D)(3) requires a municipality to update its Land Use Assumptions and Insfrastructure Improvements Plan report, which sets the development impact fee schedule, every five years. The Town's last Land Use Assumptions and Infrastructure Improvements Plan report was completed in 2020, and therefore, the Town must update the report in accordance with State law to continue charging development impact fees on development within the Town. The Town charges development impact fees for fire, streets, and parks purposes, and collected the following impact fee revenues in the last fiscal year 2024:  Fire: $9,738 Streets: $181,726 Parks: $132,285 TischlerBise completed the 2020 Land Use Assumptions and Infrastructure Improvements Plan Report and has the requisite experience and qualifications to prepare another current report. According to TischlerBise's proposal, the Firm has been in business for forty-five years and has prepared over 1,100 of these reports across the country, more than any other firm. Specifically, TischlerBise has prepared more of these reports in the State of Arizona than any other firm and worked with the Arizona league of Cities and Towns to suggest amendments to the recent relevant enabling legislation. Total costs will be $63,950 to complete the updated report and can be paid from development impact fee fund balances. A budget authority transfer from General Fund contingency and the Administration Department budget will be required to pay for these expenditures from the impact fee funds. Related Ordinance, Policy or Guiding Principle Arizona Revised Statutes 9-463.05(D)(3) Risk Analysis Not approving the professional services agreement would restrict Town staff from updating its Land Use Assumptions and Infrastructure Improvements Plan, as required by State law every five years. Not having an updated Plan report could negatively impact the Town's ability to charge development impact fees in the future. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approval of Professional Services Agreement 2025-040 with TischlerBise and related budget authority transfers. SUGGESTED MOTION MOVE to approve Professional Services Agreement 2025-040 with Tischler Bise totaling $63,950 and related budget authority transfers. Fiscal Impact Fiscal Impact:$63,950 Budget Reference:FY2025 Funding Source:Development Impact Fees If Multiple Funds utilized, list here:Fire, Streets, and Parks Impact Fee Funds Budgeted: if No, attach Budget Adjustment Form: Attachments TischlerBise Professional Services Agreement  TischlerBise Proposal for Services  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 11/05/2024 01:55 PM Town Manager Angela Padgett-Espiritu 11/05/2024 06:27 PM Form Started By: Paul Soldinger Started On: 11/04/2024 02:00 PM Final Approval Date: 11/05/2024  1 Contract No. 2025-040 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND TISCHLER BISE, INC. THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into as of November 19, 2024, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Tischler Bise, Inc., a District of Columbia corporation (the “Consultant”). RECITALS A. Pursuant to Section 7.1 of the Town’s Procurement Policy and Section 3-3-26 of the Town Code, the Town may directly select certain consultants for professional and technical services. B. The Consultant possesses the specific skill and experience required to provide the Town with fiscal and economic consulting for the “Development Impact Fee Study” (the “Services”). (the “Services”). C. The Town desires to enter into an Agreement with the Consultant to perform the Services, more particularly set forth in Section 2 below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Consultant hereby agree as follows: 1.Term of Agreement. This Agreement shall be effective as of the date first set forth above and attested to by the Town Clerk pursuant to Section 3-3-31 of the Town Code, and shall remain in full force and effect until November 18, 2025. 2.Scope of Work. Consultant shall provide the Services as set forth in the Proposal attached hereto as Exhibit A and incorporated herein by reference. 3.Compensation. The Town shall pay the Consultant an aggregate amount not to exceed $63,950 at the rates set forth in Exhibit A. 4.Payments. The Town shall pay the Vendor monthly (and the Vendor shall invoice the Town monthly), based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail 2 to justify payment. All invoices and statements shall be emailed to accountspayable@fountainhillsaz.gov. This Agreement must be referenced on all invoices. Town Finance will not disburse any payments to Vendors without a valid business license, as applicable. 5.Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6.Consultant Personnel. Consultant shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Consultant agrees to assign specific individuals to key positions. If deemed qualified, the Consultant is encouraged to hire Town residents to fill vacant positions at all levels. Consultant agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Consultant shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7.Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Consultant’s performance. The Consultant shall provide and maintain a self-inspection system that is acceptable to the Town. 8.Licenses; Materials. Consultant shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Consultant. The Town has no obligation to provide Consultant, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Consultant. 9.Performance Warranty. Consultant warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 10.Indemnification. To the fullest extent permitted by law, the Consultant shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Consultant, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 3 11.Insurance. 11.1 General. A.Insurer Qualifications. Without limiting any obligations or liabilities of Consultant, Consultant shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B.No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Consultant. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Consultant from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C.Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D.Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. E.Primary Insurance. Consultant’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured; the Town’s insurance shall be non-contributory. F.Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. 4 G.Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Consultant. Consultant shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H.Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Consultant shall be solely responsible for any such deductible or self-insured retention amount. I.Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Consultant shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Consultant. Consultant shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J.Evidence of Insurance. Prior to commencing any work or services under this Agreement, Consultant will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Consultant’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Consultant’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: 5 (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Consultant’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Consultant under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A.Commercial General Liability. Consultant shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. B.Vehicle Liability. Consultant shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Consultant’s owned, 6 hired and non-owned vehicles assigned to or used in the performance of the Consultant’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C.Professional Liability. If this Agreement is the subject of any professional services or work, or if the Consultant engages in any professional services or work in any way related to performing the work under this Agreement, the Consultant shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Consultant, or anyone employed by the Consultant, or anyone for whose negligent acts, mistakes, errors and omissions the Consultant is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D.Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Consultant’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12.Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Consultant of written notice by the Town. Upon termination for convenience, Consultant shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure 7 of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Consultant for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Consultant in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Consultant for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Consultant to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Consultant, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Consultant or any agent or representative of the Consultant to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Consultant an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Consultant fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this Agreement shall terminate at the end of then-current fiscal year and the Town and the Consultant shall be relieved of any subsequent obligation under this Agreement. 13.Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Consultant acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Consultant, its employees and subcontractors are not entitled 8 to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Consultant, its employees or subcontractors. The Consultant, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Consultant meets the requirements as agreed in Section 2 above and in Exhibit A. Consultant is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Consultant do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Consultant shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Consultant is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Consultant. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 9 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Consultant without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Consultant in violation of this provision shall be a breach of this Agreement by Consultant. 13.9 Subcontracts. No subcontract shall be entered into by the Consultant with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Consultant is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Consultant. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Consultant from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A.Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Consultant any amounts Consultant owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B.Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Consultant any amounts Consultant owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: 10 If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Rachael Goodwin, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Consultant: Tischler Bise, Inc. 4701 Sangamore Rd. S240 Bethesda, MD 20816 Attn: L. Carson Bise or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Consultant shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Consultant’s duties under this Agreement. Persons requesting such information should be referred to the Town. Consultant also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Consultant as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Consultant and its subcontractors are complying with the warranty under subsection 13.17 below, Consultant’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Consultant and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Consultant’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement 11 and (B) evaluation of the Consultant’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Consultant and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Consultant pursuant to this Agreement. Consultant and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Consultant or its subcontractors reasonable advance notice of intended audits. Consultant shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Consultant and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Consultant’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Consultant certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 13.20 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 13.21 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. [SIGNATURES APPEAR ON FOLLOWING PAGES] 12 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND TISCHLER BISE, INC. [Scope and Fee Schedule] See following pages. i Proposal for Development Impact Fee Study Town of Fountain Hills, Arizona October 16, 2024 i Section 1: Cover Letter 2 Section 2: Firm Expertise and Experience 4 Section 3: Staff Qualifications and Experience 21 Section 4: Method of Approach 26 Section 5: Project Schedule 36 Section 6: Fee Schedule 37 Table of Contents 2 Section 1: Cover Letter October 16, 2024 Mr. Paul Soldinger, Chief Financial Officer Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, AZ 85268 RE: Proposal for Development Impact Fee Study Mr. Soldinger, TischlerBise is pleased to submit the enclosed qualifications to prepare a Development Impact Fee Study for the Town of Fountain Hills. There are several points we would like to note that make our qualifications unique: § Depth of Experience. TischlerBise has been in business for forty-five years and our qualified team of nine professionals bring an unparalleled depth of experience to this assignment. We have prepared over 1,100 development fee studies across the country – more than any other firm. We are innovators in the field, pioneering approaches for credits, impact fees by size of housing unit, and distance-related/tiered impact fees. § Technical Knowledge of Land Use Planning and Local Government Finance. The Town requires consulting expertise in the areas of infrastructure planning/finance, land use planning and growth management in the State of Arizona, as well as in local government finance. Many communities overlook the fact that development fees are a land use regulation. The TischlerBise team will apply years of development fee experience within the context of overall Town financial needs, land use, and economic development policies. This will lead to a work product that is both defensible and that promotes equity. § Arizona Experience. TischlerBise has prepared more development fees in the State of Arizona than any other firm. We also worked with the Arizona League of Cities and Towns in analyzing and suggesting amendments to SB 1525, which dramatically changed Arizona’s development fee enabling legislation. § Consensus Builders. Our seasoned Project Team has actively participated in legislative body meetings and citizen committees to educate stakeholders regarding the technical process of impact fee calculations as well as the economic effect of implementation. 3 We look forward to the possibility of renewing our relationship with the Town and are committed to providing cost-effective, high-quality support for this assignment. This offer shall remain valid for a period of 180 days. Sincerely, L. Carson Bise II, AICP, President TischlerBise 4701 Sangamore Road S240 301.320.6900 x12 carson@tischlerbise.com 4 Section 2: Firm Expertise and Experience Firm Overview TischlerBise, Inc., was founded in 1977 as Tischler, Montasser & Associates. The firm became Tischler & Associates, Inc., in 1980 and TischlerBise, Inc., in 2005. The firm is a Subchapter (S) corporation, is incorporated in Washington, D.C., and is headquartered in Bethesda, Maryland, with a secondary office in Boise, Idaho. The firm employs nine fiscal/economic professionals and one administrative support professional. TischlerBise specializes in fiscal/economic impact analysis, impact fees, market feasibility, utility rates studies, infrastructure financing studies and related revenue strategies. Our firm has been providing consulting services to public agencies for forty years. In this time, we have prepared over 900 fiscal/economic impact evaluations and over 1,100 impact fee/infrastructure financing studies – more than any other firm. Through our detailed approach, proven methodology, and comprehensive product, we have established TischlerBise as the leading national expert on revenue enhancement and cost of growth strategies. Arizona Experience TischlerBise has unsurpassed experience preparing development fees and infrastructure improvements plans in the State of Arizona, particularly under Arizona’s new development fee legislation, SB 1525. We have completed or are currently engaged with the following Arizona communities to conduct SB 1525-related updates and analyses since 2013: § Apache Junction# § Avondale# § Buckeye# § Casa Grande# § Cave Creek § Coolidge# § Eloy# § Flagstaff# § Florence# § Fountain Hills § Gilbert § Glendale# § Goodyear# § Kingman § Maricopa# § Nogales § Oro Valley# § Payson# § Pinetop-Lakeside# § Queen Creek § Safford § Sedona# § Show Low § Sierra Vista# § San Luis# § Somerton# § Surprise# § Tempe# § Tucson § Wellton § Yuma# # Indicates multiple SB 1525 engagements Innovation TischlerBise has been the national leader in advancing the practice of development fee calculations. For example, TischlerBise has developed unique methodologies for calculating “progressive” demand 19 indicators for not only persons per housing unit (household), but also the development of jurisdiction- specific average daily vehicle trip generation rates, using US Census Bureau data and Institute of Transportation Engineer’s formulas. These methods not only improve proportionality, but also promote housing equity. In addition, TischlerBise has developed unique development fee methodologies to assist communities with the implementation of land use policies intended to address sprawl, congestion, and other growth management issues by helping to direct growth to planned development zones. Using GIS and data from local traffic models, TischlerBise developed an innovative tiered road development fee methodology to allocate the cost of road improvements by Traffic Analysis Zone (TAZ) based on vehicle miles of travel (VMT). As density and mix of development increase in urban areas, VMT decreases due to shorter trips and more walking, bicycling, and transit use. This results in lower development fees in areas where communities are attempting to encourage infill development. Project Examples The following project descriptions demonstrate our team’s recent and vast experience with assignments similar to the scope of services required by the Town of Fountain Hills. City of Buckeye, Arizona – Land Use Assumptions, IIP and Development Fee Study Project Contact: Scott Zipprich, City Engineer Address: 530 East Monroe Avenue Buckeye, AZ 85326 Phone: (623) 349-6217 E-mail: szipprich@buckeyeaz.gov TischlerBise Staff: Carson Bise, AICP, and Benjamin Griffin TischlerBise recently completed an update to the City’s SB1525-compliant development fees for the City of Buckeye. This study includes an update to parks and recreation, library, street, police, fire, water, and wastewater development fees. Due to Buckeye’s acquisition of Global Water, and the complexity of existing development agreements related to this acquisition, Buckeye accelerated its update process. To account for development agreements related to water and wastewater service throughout Buckeye, which often vary within individual Community Master Plan Areas and 208 Areas, TischlerBise and Buckeye staff designed a GIS-based development fee schedule to accurately assess fees at the parcel level. Buckeye’s current (four) water and wastewater service areas are projected to increase to approximately ten to twenty service areas for each type of infrastructure – Buckeye’s water and wastewater development agreements do not usually have similar geographic boundaries. City of Glendale, Arizona – Land Use Assumptions, IIP and Development Fee Study Project Contact: Don Bessler, Chief Capital Improvement Officer Address: 5850 West Glendale Avenue Glendale, AZ 85301 Phone: (623) 930-2909 E-mail: DBessler@glendaleaz.com TischlerBise Staff: Carson Bise, AICP, Julie Herlands, AICP, and Benjamin Griffin Following upon our 2012 assignment, TischlerBise was retained to update our previous SB1525 compliant IIP and Development Fee Study. This study includes an update to parks and recreation, library, police, fire, water, wastewater and transportation development fees (this is the fifth time the City has engaged TischlerBise). The scope of this work effort included developing land use assumptions for the service areas where development fees were to be assessed, determining eligible infrastructure projects under the 20 new definition of “necessary public services,” and formulating Infrastructure Improvement Plans. As part of this update, TischlerBise is examining the feasibility of implementing a tiered transportation development fee structure that is designed to encourage development in the downtown area, yet still make the City competitive for economic development opportunities in the West Service Area. Town of Florence, Arizona – Land Use Assumptions, IIP and Development Fee Study Project Contact: Becki Jimenez, Finance Director Address: 775 North Main Street Florence, AZ 85132 Phone: (520) 868-7505 E-mail: becki.jimenez@florenceaz.gov TischlerBise Staff: Carson Bise, AICP TischlerBise was retained by the Town of Florence to review and update their Land Use Assumptions, IIP and Development Fee Study for fire/rescue, parks, trails, water, sewer and transportation. As part of this update, TischlerBise recommended a reduction in the number of service areas to make administration of the fee program easier for the Town, while still complying with SB1525. City of Tempe, Arizona – Land Use Assumptions, IIP and Development Fee Study Project Contact: Tom Duensing, Financial Services Director Address: 20 East 6th Street Tempe, AZ 85281 Phone: (480) 350-8505 E-mail: Thomas_Duensing@tempe.gov TischlerBise Staff: Carson Bise, AICP, and Benjamin Griffin The City of Tempe hired TischlerBise in 2013, 2016, 2021, and 2024 to prepare SB1525 compliant Land Use Assumptions, Infrastructure Improvements Plan and Development Fee Study for Police, Libraries, Streets, Fire and Parks. As part of this effort, TischlerBise prepared several iterations of the fees (e.g., plan- based versus incremental expansion) for the City’s consideration. A primary consideration as part of this assignment was the City’s ability to fund the operating expenses associated with various planned facilities. TischlerBise also prepared the residential fees using a progressive fee structure (e.g., fees vary by size of house), which helps with housing equity and affordability issues. TischlerBise was recently retained to update the City’s non-utility development fees. 21 Section 3: Staff Qualifications and Experience Team Overview To successfully complete this assignment, the consultant must possess specific, detailed and customized knowledge of not only the technical analysis, but the context of the development fee structures and implementation in achieving the Town’s fiscal, economic, transportation and land use policy goals. Our proposed Project Team of Carson Bise, AICP, Julie Herlands, AICP, and Benjamin Griffin has unsurpassed experience performing projects requiring the same expertise as that needed to serve the Town of Fountain Hills. Our Project Team brings 60 years of development fee calculation, capital improvement planning, infrastructure/utility finance, demographic and market analysis, and development fee implementation experience to the Town’s assignment. In summary, all three members of Team are considered national thought leaders in the areas of impact fees, exactions, infrastructure finance, impact fee program administration, and implementation. The organizational chart below shows our project team for this assignment. Carson Bise, AICP, President of TischlerBise, will serve as Project Manager and coordinate our Project Team’s interaction with the Town to ensure that all work is completed properly, on time, and within budget. He will work closely with Julie Herlands and Benjamin Griffin, developing and reviewing all aspects of the project and providing policy direction for the project. Julie Herlands, AICP, Vice President of TischlerBise, will provide analytical support to the impact fee study as well as quality assurance, assisting Mr. Bise in reviewing all work products generated throughout the assignment. Most recently, Mr. Bise and Ms. Herlands have collaborated on the following Arizona development fee projects: Florence, Glendale, Maricopa, Oro Valley, Payson, Pinetop-Lakeside, and Tucson. Benjamin Griffin, Senior Fiscal/Economic Analyst, is an accomplished development fee Project Manager in the State of Arizona, and will provide analytical support to the study and will be responsible for much of the technical requirements of the project. Most importantly, Mr. Griffin, in conjunction with Mr. Bise, will ensure constant collaboration and communication between Town staff and our team through frequent progress memorandums, conference calls, and in-person meetings. Most recently, Mr. Bise and Mr. Griffin have collaborated on the following Arizona development fee projects: Apache Junction, Avondale, Buckeye, Casa Grande, Coolidge, Eloy, Flagstaff, Fountain Hills, Kingman, Pinal County, Sedona, Sierra Vista, Somerton, Surprise, Tempe, and Yuma. Project Team resumes are listed below. Carson Bise, AICP Project Manager Benjamin Griffin Project Analyst Julie Herlands, AICP Project Analyst/Quality Assurance 22 L. Carson Bise, II, AICP, President (Bethesda, MD) Mr. Bise has 30 years of fiscal, economic and planning experience, and has conducted fiscal and infrastructure finance evaluations in 40 states. Mr. Bise is a leading national figure in the calculation of impact fees, having completed over 350 impact fee studies. Mr. Bise has also written and lectured extensively on fiscal impact analysis and infrastructure financing. His most recent publications are Next Generation Transportation Impact Fees (co-author) and Fiscal Impact Analysis: Methodologies for Planners published by the American Planning Association, a chapter on fiscal impact analysis in the book Planning and Urban Design Standards also published by the American Planning Association, and the ICMA IQ Report, Fiscal Impact Analysis: How Today’s Decisions Affect Tomorrow’s Budgets. Mr. Bise was also the principal author of the fiscal impact analysis component for the Atlanta Regional Commission’s Smart Growth Toolkit and is featured in the recently released AICP CD-ROM Training Package entitled The Economics of Density. Mr. Bise is a past Board of Director for the Growth and Infrastructure Finance Consortium and recently Chaired the American Planning Association’s Paying for Growth Task Force. He is also an Affiliate of the National Center for Smart Growth Research & Education. ARIZONA IMPACT FEE AND INFRASTRUCTURE FUNDING STRATEGY EXPERIENCE § Apache Junction, Arizona – Land Use Assumptions, IIP and Development Fee Study § Avondale, Arizona – Land Use Assumptions, IIP and Development Fee Study § Buckeye, Arizona – Land Use Assumptions, IIP and Development Fee Study § Camp Verde, Arizona – Impact Fee Study § Coolidge, Arizona – Land Use Assumptions, IIP and Development Fee Study § Glendale, Arizona – Land Use Assumptions, IIP and Development Fee Study § Eloy, Arizona – Land Use Assumptions, IIP and Development Fee Study § Flagstaff, Arizona – Land Use Assumptions, IIP and Development Fee Study § Florence, Arizona – Land Use Assumptions, IIP and Development Fee Study § Gilbert, Arizona – Land Use Assumptions, IIP and Development Fee Study § Goodyear, Arizona – Land Use Assumptions, IIP and Development Fee Study § Maricopa, Arizona – Land Use Assumptions, IIP and Development Fee Study § Payson, Arizona – Land Use Assumptions, IIP and Development Fee Study § Pinal County, Arizona – Land Use Assumptions, IIP and Development Fee Study § Pinetop-Lakeside, Arizona – Land Use Assumptions, IIP and Development Fee Study § Safford, Arizona – Land Use Assumptions, IIP and Development Fee Study § San Luis, Arizona – Land Use Assumptions, IIP and Development Fee Study § Sedona, Arizona – Land Use Assumptions, IIP and Development Fee Study § Sierra Vista, Arizona – Land Use Assumptions, IIP and Development Fee Study § Somerton, Arizona – Land Use Assumptions, IIP and Development Fee Study § Surprise, Arizona – Land Use Assumptions, IIP and Development Fee Study § Tempe, Arizona – Land Use Assumptions, IIP and Development Fee Study § Wellton, Arizona – Land Use Assumptions, IIP and Development Fee Study § Yuma, Arizona – Land Use Assumptions, IIP and Development Fee Study EDUCATION M.B.A., Economics, Shenandoah University 23 B.S., Geography/Urban Planning, East Tennessee State University B.S., Political Science/Urban Studies, East Tennessee State University PUBLICATIONS § “Next Generation Transportation Impact Fees,” American Planning Association, Planners Advisory Service. § “Fiscal Impact Analysis: Methodologies for Planners,” American Planning Association. § “Planning and Urban Design Standards,” American Planning Association, Contributing Author on Fiscal Impact Analysis. § “Fiscal Impact Analysis: How Today’s Decisions Affect Tomorrow’s Budgets,” ICMA Press. § “The Cost/Contribution of Residential Development,” Mid-Atlantic Builder. § “Are Subsidies Worth It?” Economic Development News & Views. § “Smart Growth and Fiscal Realities,” ICMA Getting Smart! Newsletter. § “The Economics of Density,” AICP Training Series, 2005, Training CD-ROM (American Planning Association). Julie Herlands, AICP, Vice President (Bethesda, MD) Julie Herlands is Vice President of TischlerBise and has 20 years of planning, fiscal, and economic development experience. Prior to joining TischlerBise, Ms. Herlands worked in the public sector in Fairfax County, Virginia for the Office of Community Revitalization and for the private sector for the International Economic Development Council (IEDC) in their Advisory Services and Research Department. For IEDC, she conducted several consulting projects including economic and market feasibility analyses and economic development assessments and plans. Her economic, fiscal impact, and impact fee/infrastructure finance experience includes a wide range of assignments in over 15 states. She is a frequent presenter at national and regional conferences including serving as co-organizer and co-presenter at a half-day AICP Training Workshop entitled Fiscal Impact Assessment at the American Planning Association National Planning Conference. A session on impact fees and cash proffers presented at the APA National Conference is available through the APA training series, Best of Contemporary Community Planning. She is currently the Immediate Past Chair of the Economic Development Division of the APA and recently chaired the APA Task Force on Planning and Economic Development. ARIZONA IMPACT FEE AND INFRASTRUCTURE FUNDING STRATEGY EXPERIENCE § Apache Junction Water Company, Arizona – Water System Connection Fees § Apache Junction, Arizona – Land Use Assumptions, IIP and Development Fee Study § Cave Creek, Arizona Land Use Assumptions, IIP and Development Fee Study § Glendale, Arizona – Land Use Assumptions, IIP and Development Fee Study § Peoria, Arizona – Development Impact Fees § Prescott, Arizona – Land Use Assumptions, IIP and Development Fee Study § Queen Creek, Arizona – Development Impact Fees § Show Low, Arizona – Land Use Assumptions, IIP and Development Fee Study § Sedona, Arizona – Land Use Assumptions, IIP and Development Fee Study EDUCATION 24 Masters of Community Planning, University of Maryland Bachelor of Arts, Political Science, University of Buffalo PUBLICATIONS § “Should Impact Fees Be Reduced in a Recession?”, Economic Development Now, August 10, 2009 (International Economic Development Council) § “Agreements, Fees, and CIP”, The Best of Contemporary Community Planning, 2005, Training CD- ROM (APA and Lincoln Institute of Land Policy) Benjamin Griffin, Senior Fiscal/Economic Analyst (Bethesda, MD) Benjamin Griffin is a Senior Fiscal and Economic Analyst at TischlerBise and has 10 years of experience, specializing in development fees, fiscal impact analysis and economic development planning. Prior to joining TischlerBise, Mr. Griffin worked on real estate and economic development projects for the New Orleans Business Alliance. During this time, he conducted field surveys to determine the economic health of key retail corridors, researched real estate development projects, and analyzed economic development initiatives. Prior to his real estate and economic development experience, Mr. Griffin worked with the New Orleans Redevelopment Authority, where he gained experience in performance-based funding sources, title clearance, and GIS. This position provided practical experience with issues concerning the redevelopment process, title clearance of properties received and acquired through various means, and analysis of property data for redevelopment projects. Mr. Griffin also possesses professional experience with the Jefferson Parish Planning Department, where he worked in the Current Planning Division. ARIZONA IMPACT FEE AND INFRASTRUCTURE FUNDING STRATEGY EXPERIENCE § Apache Junction, Arizona – Land Use Assumptions, IIP and Development Fee Study § Avondale, Arizona – Land Use Assumptions, IIP and Development Fee Study § Buckeye, Arizona – Land Use Assumptions, IIP and Development Fee Study § Casa Grande, Arizona – Land Use Assumptions, IIP and Development Fee Study § Flagstaff, Arizona – Land Use Assumptions, IIP and Development Fee Study § Fountain Hills, Arizona – Land Use Assumptions, IIP and Development Fee Study § Kingman, Arizona – Land Use Assumptions, IIP and Development Fee Study § Maricopa, Arizona – Land Use Assumptions, IIP and Development Fee Study § Pinetop-Lakeside, Arizona – Land Use Assumptions, IIP and Development Fee Study § San Luis, Arizona – Land Use Assumptions, IIP and Development Fee Study § Sedona, Arizona – Land Use Assumptions, IIP and Development Fee Study § Sierra Vista, Arizona – Land Use Assumptions, IIP and Development Fee Study § Somerton, Arizona – Land Use Assumptions, IIP and Development Fee Study § Surprise, Arizona – Land Use Assumptions, IIP and Development Fee Study § Tempe, Arizona – Land Use Assumptions, IIP and Development Fee Study § Yuma, Arizona – Land Use Assumptions, IIP and Development Fee Study § Pinal County, Arizona – Development Fee Study EDUCATION 25 Master of Urban and Regional Planning, Economic Development, University of New Orleans Bachelor of Business Administration, Finance, University of Mississippi 26 Section 4: Method of Approach Project Understanding The Town of Fountain Hills seeks a consultant to prepare an update to its development fee program. This includes updated Land Use Assumptions, Infrastructure Improvement Plan and Development Impact Fee Report. As part of this effort, TischlerBise will provide a comprehensive evaluation of the Town’s development fee program to ensure compliance with A.R.S. 9-463.05. When preparing the Infrastructure Improvement Plan (IIP) and recommended development impact fee structure, we will work with Town staff to ensure assumptions and methodologies are consistent with recommended Town policy directives and strategic objectives. With decades of development fee experience across the nation, TischlerBise has pioneered best practices and moved the industry away from generic, cookie-cutter, fee studies towards fees that are customized to function as an integral component of the community’s strategic plan. Therefore, TischlerBise will be available to function as a key member of the Town’s management and leadership team, and we will remain engaged with the Town long after the study’s completion at no additional charge for administrative and implementation assistance. Overview Development fees are simple in concept, but complex in delivery. Generally, the jurisdiction imposing the fee must: (1) identify the purpose of the fee, (2) identify the use to which the fee is to be put, (3) show a reasonable relationship between the fee’s use and the type of development project, (4) show a reasonable relationship between the facility to be constructed and the type of development, and (5) account for and spend the fees collected only for the purpose(s) used in calculating the fee. Reduced to its simplest terms, the process of calculating development fees involves the following two steps: 1. Determine the cost of development-related improvements, and 2. Allocate those costs equitably to various types of development. There is, however, a fair degree of latitude granted in constructing the actual fees, as long as the outcome is “proportionate and equitable.” Fee construction is both an art and a science, and it is in this convergence that TischlerBise excels in delivering products to clients. Any one of several legitimate methods may be used to calculate development fees for the Town. Each method has advantages, and to some extent they are interchangeable because they all allocate facility costs in proportion to the needs created by development. In practice, the calculation of development fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for capital facilities. The following discussion outlines how TischlerBise will approach and add value to this portion of the Town’s assignment. Growth Projections and Demographic Trends. Projecting future residential and nonresidential development is more difficult now than in the past because of changing demographics and lifestyle choices. Changes in the retail sector combined with the long-term impact of the COVID-19 pandemic on the retail and office markets are also a concern. TischlerBise’s extensive national experience conducting 27 market analysis and real estate feasibility studies is invaluable in determining the appropriate development projections used in the IIP and development fee calculations. This includes both the amount of development and the geographic location. Depending on the methodology employed, overly optimistic development projections can increase the Town’s financial exposure, if projected development fee revenue is less than expected. Fiscal Sustainability and the Evaluation of Offsets. State law requires a forecast of non-development fee revenues from new service units. The IIP needs to forecast revenues generated by new service units other than development fees, such as state-shared revenue, highway user revenue, federal revenue, ad valorem property taxes, construction contracting, or similar excise taxes based on the approved land use assumptions. This needs to include a plan to include these contributions in determining the extent of the burden created by new development. Transportation. The Land Use Assumptions will be used for purposes of determining an estimated level of new trip activity. Average weekday trip ends will be adjusted using appropriate factors for trip rate and length, and combined with an estimate of the average number of miles traveled per trip to arrive at vehicle miles of travel (VMT) per unit (or 1,000 square feet for nonresidential). Outputs from the Maricopa Association of Governments (MAG) travel demand model will be reviewed to determine its appropriateness for informing characteristics of estimated number of new trips and average trip lengths. An assessment of the current transportation system, combined with programmed improvements, will be conducted to determine future transportation infrastructure needs to support the traffic generated by the approved Land Use Assumptions. Specifically focused on the need for arterial improvements and new signalized intersections. This will be done by comparing the forecasted trip activity to available roadway capacity and determining areas where improvements will be required. Then, we will convert to a corresponding increase in lane miles of new roadway. Planning level cost estimates for new infrastructure will be developed and used to estimate total cost of new street infrastructure. This cost will then be converted to a cost per vehicle mile traveled. A similar process will be followed pertaining to new signal locations, with the assumed number of signals over the 10-year development impact fee term based on historical installation trends. Improved Infrastructure Improvement Pan Flexibility. Many of our Arizona clients elected for plan-based approaches for their IIPs. An unintended consequence of these decisions is a relative lack of flexibility with the individual IIPs as they relate to changes in the market and other conditions. As part of our Round 2 SB1525 assignments we prepared IIPs that incorporate a hybrid approach. Using transportation as an example, we can project the number of lane miles needed to maintain current levels of service (in this example, let’s assume 10.4 lane miles). However, rather than use a purely plan-based approach, the solution is to identify improvements that exceed 10.4 lane miles (let’s assume 22 lane miles). Rather than being tied to a defined plan, the Town can respond to the market and funding arrangements at the time (federal or state money may be identified in the future for one or more projects making them development fee ineligible) and select projects over the 10-year time horizon that equal the required 10.4 lane miles. 28 Promoting Housing Equity Improved Residential Proportionality. TischlerBise adds value to our clients’ impact fee programs through the implementation of progressive fee structures that vary by size of housing unit or number of bedrooms. These types of fee structures can assist communities with their efforts to promote housing affordability and equity. This type of fee structure accounts for the fact that there is a direct correlation between the size of the residential unit and the number of persons (as well as vehicles available, which influences vehicle trip generation rates). This development fee update provides the opportunity to discuss the trade-offs of a revised residential approach. As part of our demographic analysis conducted for this assignment, we can prepare data on factors that vary by housing unit size (i.e., persons per household and vehicle trips) for the Town’s consideration prior to development of the fee methodology. Regardless of whether the Town decides to move to a progressive residential fee structure, TischlerBise can calculate Fountain Hills-specific average daily vehicle trip generation rates, as well as customized residential vehicle trip adjustment factors based on commuting and employment patterns. Public Outreach. The importance of public outreach when considering development fees should not be overlooked. Based upon our team’s experience with development fees in Arizona, we anticipate this study may attract controversy. Therefore, it is important to build a coalition of support early in the process, to educate and inform the public and other key stakeholders about the purpose of the various components of the study, and to explain how it will benefit both key constituents (developers) and the public. It is critical to develop a communications strategy that will offset and correct any misinformation that might proliferate, and to provide a clear and compelling logic for public adoption of an IIP and development fee program. Our seasoned project team has actively participated in legislative body meetings and citizen committees to educate stakeholders regarding the technical process of developing an IIP and the development fee calculations. Peer Community Fee Survey. We are frequently asked to provide comparative development fee information on similar jurisdictions. This type of survey can be relatively straightforward and obtained with primary research (i.e., online, phone calls, and emails), as well as from our ongoing development fee work in Arizona. However, it is important for the consultant compiling the report to understand what is—and is not—included in the fee amounts for a true “apples-to-apples” comparison. For instance, it is important to note what specific categories are included in the development fee program. Does the overall fee amount include utility fees? What are the components within the fees? Are there unique elements embedded in a development fee that makes it relatively high or low compared to other jurisdictions in the region? What are the methodological approaches used and how do those approaches affect the fee? What is the difference between the calculated fees and the adopted fees? We will conduct this evaluation to include methodologies employed, fee amounts, and any unique circumstances that should be identified and communicated to staff and stakeholders throughout the process. Implementation/Ongoing Support. The Land Use Assumptions, IIP and Development Fee Study are just the beginning of the relationship between TischlerBise and our clients. Our ongoing support and commitment to strong client relationships is the primary reason the majority of our development fee work is Bedrooms Square Feet Persons Square Feet Personstwo or less 2,150 1.8 2,000 1.7 three 2,340 2.4 2,100 1.9 four 3,080 3.1 2,200 2.0 five or more 3,700 3.7 2,300 2.2 2,400 2.3 2,500 2.4 2,600 2.6 2,700 2.7 2,800 2.8 2,900 2.9 3,000 3.0 3,100 3.1 3,200 3.2 3,300 3.3 3,400 3.4 3,500 3.5 3,600 3.6 3,700 3.7 Actual Averages per Hsg Unit Fitted-Curve Values y = 3.2628ln(x) -23.091R² = 0.9739 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1,500 2,000 2,500 3,000 3,500 4,000 Pe r s o n s Square Feet Average Persons per Single Family Housing Unit Average square feet of SingleFamily units in Castle RockfromDouglas County Assessor. Average number of persons per housing unit from Census Bureau data for Castle Rock. 29 from existing clients through sole source procurement. After the fee study is complete, TischlerBise can prepare implementation materials and provide training to Town staff to ensure it is prepared to implement the development impact fee program in a manner that is efficient and consistent with Arizona and national case law. Finally, TischlerBise understands that it is impossible to forecast every conceivable development proposal within the fee structure. Therefore, TischlerBise routinely prepares specific development fee amounts for specific projects at no charge to our clients. We can also provide our computer files/templates so that staff may conduct annual updates or enter into a “maintenance agreement” for a period of time to update the IIP and development fees as conditions change. Scope of Work TASK 1: PROJECT INITIATION During this task, we will meet with Town staff to establish lines of communication, review and discuss project goals and expectations related to the project, review (and revise if necessary) the project schedule, request data and documentation related to new proposed development, and discuss Town staff’s role in the project. The objectives of this initial discussion are outlined below: § Obtain and review current demographics and other land use information for the Town of Fountain Hills § Review and refine work plan and schedule § Discuss current and previous work efforts related to this topic § Assess additional information needs and required staff support § Identify and collect data and documents relevant to the analysis § Identify any relevant policy issues Meetings: One (1) on-site visit to meet with Town project management team/Town staff as appropriate. Deliverables: Data request memorandum. TASK 2: DEVELOP LAND USE ASSUMPTIONS TischlerBise will review and update annual projections of population, employment, housing, commercial, industrial and other nonresidential square footage data for at least ten (10) years. This will be based on discussions with Town staff and review of published information, including the Maricopa Association of Governments (www.azmag.gov). The Consultant will prepare a memorandum discussing the recommended land use projections (Land Use Assumptions Document) that will serve as the basis for the IIP and development impact fee schedule. TischlerBise will prepare a plan that includes projections of changes in land uses, densities, intensities, and population for a specific service area. A map of the area(s) to which the land use assumptions apply will also be included in this task. Meetings: Discussions with the Planning and Zoning Department will be held as part of Task 1, as well as conference calls as needed. 30 Deliverables: TischlerBise will prepare a draft technical memorandum discussing the recommended Land Use Assumptions. After review and sign-off by the Town, a final memorandum will be issued, which will become part of the final Development Impact Fee Report. TASK 3: ASCERTAIN DEMAND FACTORS AND LEVELS-OF-SERVICE FOR “NECESSARY PUBLIC SERVICES” Communities in Arizona may assess development fees for “necessary public services” which have a useful life of more than three years and that are owned and operated on behalf of the Town and within the incorporated boundary. There are several important subtasks that are outlined below: § Proportionate Share – Determine the proportionate share of the cost of “necessary public services,” based on service units needed to provide such services to new development. § Determine Existing Levels-of-Service – The costs for the “necessary public services” required to serve new development are based on the same level-of-service being provided to existing development in the service area. We will determine the existing level-of-service by conducting onsite interviews, evaluating the appropriate studies, and analyzing relevant local data. These onsite interviews will also include discussions about defining the infrastructure components to be included in the IIP and development fees. § Determine Service Areas – Specify the area(s) within the Town’s boundaries in which development will be served by the “necessary public services” or facility expansions and that a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the IIP. The above subtasks will enable us to ensure that three important development fee requirements are met, collectively referred to as rational nexus requirements: demonstration of impact, benefit, and proportionality. Meetings: Two (2) meetings with Town staff to discuss capital facility needs and levels-of-service. As a no- charge option, TischlerBise can meet with a Stakeholder Group if the Town desires. Deliverables: Technical Memorandum Discussing Recommended Service Areas by Fee Category. TASK 4: IDENTIFY CAPITAL NEEDS AND COSTS This task will determine the relevant capital needs and costs due to growth. 1) Long-Range Capital Need – TischlerBise will focus on relevant documents such as the Fountain Hills Downtown Vision Plan, Downtown Area Specific Plan, and Fountain Hills General Plan, the current Capital Improvements Plan, and other relevant studies/plans. Discussions will aim not only to understand the specific costs, but also to assess the size and scope of projects and whether capital facility needs are due to normal replacement, catch-up, or new demand. 2) Service Units – TischlerBise will define the standardized measures of consumption, use, or generation attributable to an individual unit of development for each category of “necessary public services” or facility expansions. 31 3) Review Cost Estimates – TischlerBise will review the costs of infrastructure improvements, real property, financing, engineering, and architectural services associated with the “necessary public services” to be included in the IIP and development fees. 4) Financing Costs – TischlerBise will identify projected interest charges and other financial costs which are to be used for repayment of principal and interest of debt used to finance construction of “necessary public services” identified in the IIP. 5) Identify Ineligible Costs – TischlerBise will identify costs that are not eligible for inclusion in the IIP and development fees. Ineligible costs include projects not included in the IIP; repair, maintenance, or operation of existing facilities; projects which serve existing development in order to meet stricter regulatory requirements; projects which provide a higher level-of-service to existing development; and administrative, maintenance, and operating costs. As part of calculating the fee, costs for infrastructure improvements, real property, financing, engineering, and architectural services will be considered. TischlerBise will consider all of these components in developing an equitable allocation of costs. Meetings: Two (2) meetings with Town staff. Deliverables: See Task 6. TASK 5: DETERMINE NEED FOR OFFSETS TO BE APPLIED AGAINST CAPITAL COSTS There are two types of “offsets” that are included in the calculation of impact fees, each with specific, distinct characteristics. The first is an offset due to possible double payment situations. This could occur when a property owner will make future contributions toward the capital costs of a public facility covered by a development fee. The second is an offset toward the payment of a development fee for the required dedication of public sites and improvements provided by the developer and for which the development fee is imposed. Both types of offsets will be considered and addressed in the development fee study. Deliverables: Memoranda as appropriate. See Task 8. TASK 6: DISCUSS PRELIMINARY METHODOLOGIES AND POLICY OPTIONS The requirement that development fees be based on an IIP does not mean there is a requirement that only the plan-based methodology can be used in the calculations. The IIP can reflect the past capacity investments in infrastructure that will be repaid by new development with development fee revenue. Likewise, the Town can plan to provide new development the same level-of-service being currently provided to existing development. TischlerBise will evaluate different allocation methodologies for each IIP and development fee component to determine which methodology is the most appropriate measure of the demand created by new development. These methodologies include: Cost Recovery Methodology – This methodology is best suited for infrastructure which has already been built and has excess capacity available to be utilized for new development. Incremental Expansion Methodology – Under this approach, new development will receive the current level-of-service being provided to existing development by the existing inventory of infrastructure. 32 Plan-Based Methodology – This methodology primarily evaluates the CIP for new development’s proportionate share of planned capital projects. It is important to note, however, that CIP’s are often fiscally constrained and may not reflect the true requirements of new development. TischlerBise will therefore also evaluate master plans for different categories of infrastructure. This comprehensive approach and consideration of alternative methodologies will allow maximization of the development fees. TischlerBise will prepare draft levels-of-service tables and methodology recommendations for each infrastructure category and component. We will discuss this information with Town staff to ensure understanding and acceptance. Policy alternatives will be discussed as appropriate. This should help ensure “sign-off” and prevent time delays in finalizing the analysis. Meetings: One (1) virtual meeting with Town staff and elected officials (if desired) to discuss and explain the preliminary findings, assumptions, and results. Deliverables: TischlerBise will prepare a “story board” for staff review and comment detailing proposed levels-of-service, cost estimates, service areas, credits and recommended calculation methodologies. TASK 7: PREPARE DRAFT LAND USE ASSUMPTIONS AND INFRASTRUCTURE IMPROVEMENT PLAN (IIP) In this task, TischlerBise’s qualified professionals will prepare an IIP using generally accepted engineering and planning practices for each “necessary public service” for which a development fee can be assessed. Development of the IIP will include the following subtasks: § Reserve Capacity – The IIP will identify infrastructure capacity to be reserved to serve future development. § Description of Existing Necessary Public Services in the Service Area(s) – The IIP will include a description of the existing “necessary public services” in the service area(s) and the costs to upgrade, update, improve, expand, correct, or replace those services to meet existing needs and usage and stricter safety, efficiency, environmental, and regulatory standards. § Analysis of Total Capacity – The IIP will identify the current usage and commitments for usage of capacity of the existing “necessary public services.” § Description of “Necessary Public Services” Attributable to New Development – The IIP will describe all parts of the “necessary public services” of facility expansions and their costs necessitated by and attributable to development in the service area(s) based on the approved land use assumptions. Cost forecasts will include the costs of infrastructure improvements, real property, financing, engineering, and architectural services. § Equivalency/Conversion Table – The IIP will include a table establishing the specific level or quantity of use, consumption, or generation of a service unit for each category of “necessary public services” or facility expansions. The table will include the ratio of a service unit to various types of residential, commercial, and industrial land uses. § Projected Service Units – The IIP will include the total number of projected service units necessitated by and attributable to new development in the service area(s), based on the approved land use assumptions. 33 § Projected Demand for Necessary Public Services – The IIP will include a ten-year projection of the demand for “necessary public services” or facility expansions required by new service units. § Forecast of Non-Development Fee Revenues from New Service Units – The IIP will forecast revenues other than development fees generated by new service units, such as state-shared revenue, highway user revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes, and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions. This subtask will include a plan to include these contributions in determining the extent of the burden created by new development. These subtasks will result in a written plan that identifies each “necessary public service” or facility expansion that is to be the subject of a development fee and complies with the requirements of State law. Meetings: Two (2) presentations/work sessions with the Town Council to present and discuss the Land Use Assumptions and Infrastructure Improvement Plan as part of the legislatively required adoption process. Deliverables: Draft Land Use Assumptions and Infrastructure Improvement Plan. TASK 8: PREPARE FINAL DEVELOPMENT FEE REPORT, PUBLIC PRESENTATIONS The completion of the previous task will enable the development fee methodology and calculations to be finalized. TischlerBise will calculate the maximum justifiable fee for commercial, residential, and industrial development that can be charged and conform to fee requirements. TischlerBise will prepare a written report for the Town that summarizes the need for development fees for the “necessary public services” category and the relevant methodologies employed, as well as documentation for all assumptions and cost factors. The report will include at a minimum the following information: § Executive Summary. § A detailed description of the methodologies used during the study. § A detailed description of all level-of-service standards and cost factors used and accompanying rationale. § An IIP spanning a maximum ten-year planning horizon (fifteen years for utilities), listing projects, costs, timing, and financing. § A detailed schedule of all proposed fees listed by land use type and activity. § Other information which adequately explains and justifies the resulting recommended fee schedule. § Estimation of annual operating costs. § A ten-year cash flow analysis of development fees and estimate of operating costs. Analysis of Peer Community Fee Structures. In this Task, TischlerBise will prepare a comparative analysis of peer communities’ development fee structures. The analysis will compare how the proposed development fee structure for the Town of Fountain Hills compares to other peer communities, including noting any differences in fee schedules and methodologies. Meetings: Two (2) presentations/work sessions with the Town Council to present and discuss the Development Fee Report as part of the legislatively required adoption process. Deliverables: Final Development Fee Report and presentation materials for meetings. 34 TASK 9: STAKEHOLDER OUTREACH TischlerBise will meet with Town stakeholders during the course of the study process. The purpose of this committee is to allow interested parties to understand assumptions and raise any questions about the technical demographic, cost, revenue, credit, and other data and supporting documentation that is being used in the calculation of development fees. Meetings: One (1) to two (2) meetings with Stakeholder Group. Deliverables: Presentation Materials as Appropriate. Accessibility/Office Location TischlerBise will attend pre-scheduled meetings with the Town in person (or video conference if desired) deploying staff from our main office in Maryland. TischlerBise staff regularly travel to our national client base without incident and frequently utilize regional trips to add additional (uncontracted) trips to clients. TischlerBise’s regular and repeat work in Arizona affirms our flexibility and ability to accommodate schedules. Our Project Team will be available via email and phone, and our accessibility and availability will continue throughout the term of the Agreement. We encourage you to consult our references regarding our superior accessibility and availability. Internal Communications An essential component of these efforts is frequent, ongoing, and meaningful communication between the consultant team and staff. TischlerBise is known for its hands-on approach, with face-to-face meetings, frequent conference calls, and ongoing email communications are integral to our execution of the scope of work. The specific strategy is to use the Work Scope and Schedule to manage the project. It is recommended the Town identify a staff Project Manager who serves as a point person between the consultant team and Town. It is also recommended that a staff working group/technical committee be identified to provide feedback throughout the study process. This enables effective and efficient processes as well as keeps relevant staff apprised of the study’s progress and content. TischlerBise also recommends periodic briefings with Town Administration staff. Project Management Approach TischlerBise utilizes a project management process which ensures our projects are completed on time and within budget, and, most importantly, they yield results that match our clients’ expectations. Our project management plan employs the following principles to mitigate potential risk and result in successful projects: • Risk: Lack of Understanding of Project Goals, Objectives, and Desired Outcomes o Mitigation: We begin by defining the project to be completed. Based on discussions that occur as part of our Project Initiation task, Carson Bise, along with Mr. Griffin, will identify the final project goals and objectives in collaboration with Town staff, list potential challenges to the process, and develop a plan to ensure successful outcomes and effective communication. 35 • Risk: Schedule Delays o Mitigation: We will plan the project schedule from the outset. As part of the Project Initiation task, Mr. Bise will work with Town staff to create an agreed-upon timetable to meet the project schedule. Prior to beginning the project, Mr. Bise will assign roles that will ensure that the project schedule is met on time and within budget. • Risk: Technical Complications o Mitigation: We will actively manage the project process. Mr. Bise, Ms. Herlands, and Mr. Griffin have a long history of strong project management skills that are supported by past project successes (we encourage you to contact our references in this regard). Mr. Bise will manage the work in progress, provide guidance and oversight to staff, and be accountable to the Town meeting the schedule, budget, and technical requirements of the project. • Risk: Quality Control o Mitigation: We will review all project deliverables and communication through a formal quality assurance process that requires review at the peer level, project manager level, and executive officer level. Prior to the delivery of work product to the Town, deliverables will go through a structured quality assurance process involving up to three levels of review and utilizing a checklist tool. The first level involves a peer-to-peer review of work products and computer models. Next, Mr. Bise, assisted by Ms. Herlands, will be responsible for a second set of reviews comparing the work product to the completed quality checklist form. • Risk: Loss of Project Staff o Mitigation: Our Project Team for this assignment include two of the firm’s principals and one senior consultant. The fact that our project team includes the firm’s President and Vice President, as well as a senior member of our staff with a vested interest in continuing with the firm, the need to replace a member of our proposed Project Team is highly unlikely. If the need to replace a team member does arise, TischlerBise can immediately bring in Colin McAweeney, who is also a Senior Fiscal/Economic Analyst with the firm, who heads our Boise office. • Risk: Cost Overruns o Mitigation: The studies will be conducted under a fixed fee arrangement. We typically do not utilize change orders in our work efforts. The potential for a change in budget could occur if the goals, objectives, and expectations as agreed upon in the scope and project management processes shift significantly. The use of the above proactive project management elements is structured to avoid budgetary issues. 36 Section 5: Project Schedule Project Schedule The table below indicates our proposed schedule for this assignment, assuming a contract award in early late October/early November. This schedule assumes all draft work products needed to start the adoption process are completed by January 31, 2025. Once the “clock starts ticking” in February it is likely that several iterations of the IIP and/or Development Fee Report may be required to respond to stakeholder and elected official review. Tasks Anticipated Dates Meetings*Meetings/Deliverables Task 1: Project Initiation November, 2024 1 Data Request Memorandum Task 2: Develop Land Use Assumptions November, 2024 1*Land Use Assumptions Document Task 3: Ascertain Demand Factors and Levels-of- Service for “Necessary Public Services” November - December, 2024 2 Technical Memorandum Discussing Recommended Service Areas by Fee Category Task 4: Identify Capital Needs and Costs November - December, 2024 2*See Task 7 Task 5: Determine Need for Offsets January, 2025 0 See Task 8 Task 6: Discuss Preliminary Methodologies and Policy Options January, 2025 1 "Storyboard" Presention Outlining Preliminary Methodologies and Policy Options Task 7: Prepare Draft/Final Land Use Assumptions and Infrastructure Improvement Plan January, 2025 0 Draft/Final Land Use Assumptions and Infrastructure Improvement Plan Publish Land Use Assumptions and IIP February, 2025 0 Presentation Materials as Appropriate Public Hearing on Land Use Assumptions and IIP early May 2025 1 Presentation Materials as Appropriate Adoption of Land Use Assumptions and IIP**early June, 2025 0 Presentation Materials as Appropriate Task 8: Prepare Draft/Final Development Fee Report May, 2025 0 Draft/Final Development Fee Report Publish Development Fee Report June, 2025 0 Presentation Materials as Appropriate Public Hearing on Development Fee Report July, 2025 1 Presentation Materials as Appropriate Adoption of Development Fee Report September, 2025 0 Presentation Materials as Appropriate New Development Fees go into Effective January, 2025 0 N/A Task 9: Stakeholder Outreach January - February, 2025 1-2*Presentation Materials as Appropriate *In several cases it is assumed meetings are held with multiple departments over one (1) trip. PROPOSED SCHEDULE- LAND USE ASSUMPTIONS, IIP AND DEVELOPMENT FEE STUDY 37 Section 6: Fee Schedule The following is our fixed fee price proposal to complete the effort outlined in our Proposal. This price proposal shall remain valid for a period of 120 days. Project Team Member:Bise Herlands Griffin Total Hourly Rate*$245 $205 $195 Cost Task 1: Project Initiation 4 0 16 $4,100 Task 2: Develop Land Use Assumptions 4 4 24 $6,480 Task 3: Ascertain Demand Factors and Levels-of-Service for “Necessary Public Services”4 4 24 $6,480 Task 4: Identify Capital Needs and Costs 4 8 40 $10,420 Task 5: Determine Need for Offsets 4 2 8 $2,950 Task 6: Discuss Preliminary Methodologies and Policy Options 4 4 16 $4,920 Task 7: Prepare Draft/Final Land Use Assumptions and Infrastructure Improvement Plan 8 4 40 $10,580 Task 8: Prepare Draft/Final Development Fee Report 24 4 40 $14,500 Task 9: Stakeholder Outreach 8 0 8 $3,520 TOTAL:64 30 216 $63,950 * Hourly rates are inclusive of all costs. PROPOSED FEE - LAND USE ASSUMPTIONS, IIP AND DEVELOPMENT FEE STUDY 38 Principal Office 4701 Sangamore Road, Suite S240 | Bethesda, MD 20816 Boise Office 999 West Main Street | Boise, Idaho 83701 ITEM 9. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF AND POSSIBLE ACTION: Approving Cooperative Purchasing Agreement 2025-034 with B2B Direct Sales, Inc. for HVAC service on civics campus Staff Summary (Background) The purpose of this report is to seek Council approval for the replacement of chilled water pumps that service the HVAC units at the Town Hall Campus that are outdated and have exceeded their useful life. These units are integral to maintaining the efficiency and comfort of the Town’s HVAC system. Replacing these pumps is necessary to avoid increased maintenance costs, reduce system downtime, and ensure reliable operation of the Building Management System (BMS).   The Town Hall Campus Building Management System (BMS) manages the operation of all HVAC units, ensuring proper temperature regulation and air quality across various facilities, including the Town Hall, Community Center and Library Museum. As part of the BMS, chilled water pumps play a crucial role in the distribution of chilled water for cooling purposes. Two of the chilled water pumps currently in service are outdated and have exceeded their expected operational life. These pumps are more than 24 years old, and their performance has significantly deteriorated due to age, wear, and obsolescence. Continued use of these pumps has resulted in increased repair and maintenance costs, decreased energy efficiency, and increased risk of system failure.   Replacing these aged pumps is critical to maintaining the functionality of the HVAC system, ensuring energy efficiency, and reducing the risk of unplanned downtime.   The existing chilled water pumps exhibit the following issues: Frequent Breakdowns: The pumps are experiencing frequent mechanical failures and require ongoing repairs, which have resulted in increased downtime and higher maintenance costs. Decreased Efficiency: Older pumps are less energy-efficient compared to newer models, leading to higher operational costs. Obsolescence: Replacement parts for the outdated models are increasingly difficult to source, and some parts are no longer available, leading to longer repair times. Reliability Concerns: As the pumps age, their reliability continues to decline, posing a risk to the overall operation of the Town Hall Campus HVAC system.   To address these issues, staff proposes the replacement of the outdated chilled water pumps with newer, more efficient models. The new pumps will be selected based on the following criteria:   Energy Efficiency: Newer models that meet current energy efficiency standards, helping to reduce operating costs. Reliability: Pumps that are more reliable and have a longer expected operational life, reducing the need for future repairs and replacements. Compatibility: Pumps that are compatible with the existing Building Management System (BMS) and other HVAC components, ensuring seamless integration. Replacing these pumps will ensure that the HVAC system continues to operate efficiently, reduce maintenance costs, and extend the lifespan of the overall system.   The initial estimate for the replacement of the chilled water pumps was over $100,000. However, after collaborating with multiple manufacturers and vendors, the Facilities staff successfully secured replacement pumps, reducing the total cost. The revised estimate for the project is $58,668.97, which includes the cost of new units, labor, installation, and a 10% contingency. The Facilities Reserve Fund has sufficient budget authority and fund balance to cover the purchase and installation.     Related Ordinance, Policy or Guiding Principle 2015 Capital Reserve Analysis.   Risk Analysis In the event of a failure or major operating issue with the existing system, the Town risks the ability to repair and restore the HVAC operations without a new management control system.   Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Cooperative Purchasing Agreement 2025-034 with B2B Direct Sales, Inc SUGGESTED MOTION MOVE to approve Cooperative Purchasing Agreement 2025-034 with B2B Direct Sales, Inc.in the amount $58,668.97  Fiscal Impact Fiscal Impact:$58,668.97 Budget Reference:FY 25 Funding Source:Facilities Reserve Fund  Funding Source:Facilities Reserve Fund  If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:Yes Attachments Cooperative Purchasing Agreement  Scope & Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 11/06/2024 05:06 PM Town Attorney Aaron D. Arnson 11/07/2024 09:13 AM Town Manager Rachael Goodwin 11/12/2024 09:09 AM Form Started By: Justin Weldy Started On: 11/05/2024 05:51 PM Final Approval Date: 11/12/2024  1 Contract No. 2025-034 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND B2B DIRECT SALES, INC. D/B/A THE HVAC COMPANY THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and B2B Direct Sales, Inc. D/B/A The HVAC Company (the “Contractor”), is hereby entered into and shall be effective on the last signature date set forth below. RECITALS A.After a competitive procurement process (RFP# 22-001) with the City of Tempe, B2B Direct Sales, Inc. D/B/A The HVAC Company (“The HVAC Company”) entered into Contract No. T22-001-29, dated January 14, 2022, as amended (collectively, the “The City Contract”) for the Contractor to provide “Trade Services”. A copy of the City 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 City Contract, at its discretion and with the agreement of the awarded Contractor, and the City 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 City Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide “Trade Services” (the “Materials and Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Contractor hereby agree as follows: 1.Term of Agreement. This Agreement shall be effective as of the date of execution and attested to by the Town Clerk pursuant to Section 3-3-31 of the Town Code, and shall remain in full force and effect until June 30, 2025 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the City Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the City 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 2 (including any price adjustments approved as part of the City 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 City 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 City 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 $58,668.97 (including all renewals), of which sum includes a 10 percent contingency ($5,333.54) for the Materials and Services at the rates set forth in the City 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 City 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 City Contract will be subject to rejection and may be returned. All invoices and statements shall be emailed to accountspayable@fountainhillsaz.gov. Town Finance will not disburse any payments to Vendors without a valid business license, as applicable. 3 5.Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, 4 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 5 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 City 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 City 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 City 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 City Contract, the Town shall be afforded all of the rights and privileges afforded to the City Contract and shall be the “City” (as defined in the City Contract) for the purposes of the portions of the City 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 City to the extent provided under the City 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 6 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. If to Contractor:B2B Direct Sales, Inc. D/B/A The HVAC Company 3120 W. Carefree Highway, Ste.1817 Attn: Nicole Hoover 7 [SIGNATURES APPEAR ON FOLLOWING PAGES] 8 9 EXHIBIT B TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND B2B DIRECT SALES, INC. D/B/A THE HVAC COMPANY [Quote or Work Order] See following pages. Attn: Marc Brewer Phone: 219 2180213 Email: mbrewer@fountainhillsaz.gov Company: Town of Fountain Hills Address: 16705 E Ave of the Fountains, Fountain Hills, AZ 85268 Date: Sep 5, 2024 Re: Fountain Hills | Replacement of Chilled Water Pumps 4 & 5 Property: Town of Fountain Hills  Address: 16705 E Ave of the Fountains, Fountain Hills, AZ 85268 Quote #: 10449 Version 2   3120 W Carefree Hwy, Suite #1817, Phoenix, AZ, 85086 * 4806878081                The HVAC Company is pleased to offer our proposal for the referenced work:  SCOPE Replacement of chilled water pumps 4 and 5 with new pumps. #4 Taco FE4013D #5 Taco FE4013D Disconnect and remove existing pumps.  Relocate piping support to accommodate slightly wider pump skids. Set new pumps and anchor. Grout pumps in place. Reinstall suction diffusers, ISO valves, Flex connectors and gauges. Install new sections of piping to align piping to new dimensions. Reconnect to existing electrical. Align pumps. Reinsulate as needed. Start up pumps and verify proper operation. Priced to be performed during normal business hours.  Lead time: 5 weeks plus transit   Total Proposal as Outlined Above……………….$53,335.43 Our goal is to provide quality work at a competitive price. We will accomplish this by performing efficiently, timely, safely and to your complete and total satisfaction. Thank you for allowing us to proceed by authorizing the work in the space provided below. Lead times on parts and equipment available upon request and are subject to change based on availability at time of approval.    Sincerely,  The HVAC Company   ACCEPTANCE OF PROPOSAL  This proposal represents the entire agreement between the parties. There are no representations, promises or other understandings unless expressly included herein. Estimate valid for 15 days from the issue date. Payment terms are net 30 days, subject to a 5% late charge and a separate 1.5% interest charge on the outstanding delinquent balance compounded monthly.  Our offer is predicated upon a clear and accessible area that will be made available by others, where our work is to be performed.  Unless noted in the specific inclusions, our work will be performed during our normal working  hours. SPECIFIC EXCLUSIONS Permits & engineering; premium labor and any items not specified herein.   Approved by:  Approval Signature:  Date:  PO# or Payment Method:      ITEM 10. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  HOLD A PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: A request for a Special Use Permit to allow residential use (up to five dwelling units) on property located at 16622 E. Avenue of the Fountains.  Staff Summary (Background) The building on the property is a two-story commercial/office building built in 2001 with a total of eight office suites.  Four of the office suites in the rear of the building (two on each floor) were converted earlier this year to hotel rooms for a small, boutique hotel use.  If the SUP is approved, the property owner plans to maintain two first floor commercial suites along the Avenue and convert the remainder of the building into residential units.  The property owner is requesting approval for two dwelling units on the first floor and three on the second floor (the two remaining office suites on the second floor will be converted into one apartment unit).  Given the lot size of 6,000 sq. ft., five dwelling units will equate to a density in excess of 36 units per acre. General Plan  Our Commitment, page 13: Maintain the delicate balance of land uses that make the Town a desirable place to live, work, enjoy and visit. Our Commitment, page 13: Support existing businesses and continue to attract businesses that stimulate the Town’s economy. Our Vision, page 14: Residents enjoy a walkable community that is conducive to civic involvement and activities. Our Vision, page 14: A variety of housing options are available in safe, quiet, pleasant, and enjoyable neighborhoods. Thriving Neighborhoods Goals and Policies, page 23 Goal 2: Support a housing strategy that encourages a broad range of quality housing types to address current and future housing needs and to support long-term economic vitality. Policy 1. Encourage a broad range of housing types affordable to all income ranges and age groups in a manner compatible with adjacent development. Policy 2. Encourage a range of housing types and residential densities and maintain consistency with the existing character of infill areas in conformance with criteria provided in Table 1: Character Areas Plan. Policy 4. Encourage quality urban, compact, walkable mixed-use development that complements surrounding uses in the Town Center and in other areas that may become available for urban development. Policy 6. Support quality residential development that meets Town housing needs, promotes the vitality of established neighborhoods, and enhances the quality of life of Fountain Hills. Goal 4: Attract quality residential development that supports the healthy and active lifestyle valued by the community. Policy 1: Ensure that new neighborhoods: a. Sensitively and aesthetically integrate residential development to the social, built and natural environments by supporting neighborhood connectivity to Fountain Hills’ Great Places. Character Area Goals and Polices, page 38 Goal 1: Encourage future development, redevelopment and infill in a manner that will maintain and protect existing neighborhoods, the Town’s economic health, community well-being, and natural environment. Policy 4. Direct commerce and employment to the character areas that sustain them in conformance with the Character Areas Plan map and Table 1. Goal 2: Development, redevelopment and infill support Fountain Hill’s small-town identity and the distinct character of each area while fostering long-term viability. Policy 3. Support a mix of residential, employment, and commercial uses at densities and intensities and in the development form that reflect the small-Town character of Fountain Hills. Policy 5. Strongly encourage a wide range of housing types, densities and prices to support the current and projected populations (particularly families and working professionals) and to ensure the future stock of affordable housing for all income ranges. This is in the Town Center character area.  The General Plan statement for this area is:  "Continue to develop a highly integrated mix of uses to provide a vibrant town center.  Encourage development with an urban form with buildings brought to the street forming a continuous street wall.  Encourage active ground floor uses with a high degree of transparency and office and residential above."  The 2009 Specific Area Plan for the Avenue District includes the statement: "The Avenue District is designed to accommodate a degree of other uses including second story office space, condominiums and small-scale businesses along with limited neighborhood services." Zoning Ordinance Requirements The property at 16622 E. Avenue of the Fountains is zoned C-2 and has the Entertainment and Planned Shopping Plaza Overlay Districts.  This zoning designation allows residential uses on the second floor by right, up to 8 units per acre.  A Special Use Permit (SUP) is required for first floor residential and for a density over 8 units per acre. The zoning ordinance requires the existing 5,700 sq. ft. commercial/office uses to have 1 parking space per 250 sq. ft. of floor area.  23 parking spaces are required for these uses.  Multi-family dwellings require 2.25 spaces per unit or 12 spaces for five units.  Together, the existing and proposed uses would require a total of 20 parking spaces.  All parking is provided in the existing Plat 208 parking uses would require a total of 20 parking spaces.  All parking is provided in the existing Plat 208 parking lot for any uses in this area.  While fewer spaces will be needed, the nature of use, however, is different.  Residents will park overnight and on weekends and will want the closest spaces.  The building includes direct access to the parking area through rear doors. Today's ordinance requires one covered space per unit.  Covered parking will not be provided. Solid waste enclosures.  Required to be within 250 walking feet of the main entrance.  Given the rear access doors, the standard ordinance requirement is met with the two enclosure areas provided.  The enclosures, however, are the property of Plat 208.  Prior to issuance of a building permit to convert the units, staff will need confirmation from Plat 208 that these enclosures can be used by the residents of this building or an alternative solution will need to be provided.  Special Use Permit Requirements Section 2.02 of the zoning ordinance establishes the process and criteria for consideration of a SUP.   Requests for consideration of a SUP are to include a project narrative describing the proposed use and reasons for it, a site plan, a Good Neighbor Statement, and a citizen participation plan and report.  These items as prepared by the applicant are attached.  Because the building is existing, the site plan is an aerial image and floor plans of the existing hotel suites.   Section 2.02 F. 1. d. of the zoning ordinance states:  d. In order to recommend approval of any use permit, the findings of the Commission must be that the establishment, maintenance, or operation of the use or building applied for will not be detrimental to the public health, safety, peace, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use, nor shall it be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the Town. Analysis This area was zoned and platted prior to incorporation of the Town for commercial uses.  It is still the desire of the Town to have this be a successful commercial center.  In consideration of this request for the SUP, the questions become:  1. Will the proposed residential use be detrimental to the public health, safety, peace, or comfort of the neighborhood? 2. Will allowing residential use of this property be detrimental or injurious to the current commercial property improvements? 3. Is the residential use being designed and established in a manner that creates a desirable living environment in a manner compatible with the adjacent development and supportive of the general welfare of the Town? Impact on public health, safety, peace, or comfort of the neighborhood.  Redeveloping a portion of the existing building for residential use is unlikely to have a detrimental impact on the public health, safety, peace or comfort of the surrounding neighborhood. Impact on the adjacent commercial property improvements.  Residential uses are a part of a mixed-use, urban environment.  Additional residents living in the area will provide additional customers for the businesses and may provide nearby housing for people wanting to work in the area.  The residents in the building will have direct access from the building to the parking lot behind the building without using adjacent property. Creating a desirable living environment that supports the general welfare of the town.  For those looking for an urban setting, these units will provide a desirable living environment.  There is parking available for the residents and shops, community facilities, parks, and activities in close proximity.   Citizen Participation The applicant held a citizen participation meeting on October 3.  A report has not yet been received, but the applicant has verbally informed staff that no one attended the meeting. Staff received one email from an adjacent property owner supporting residential use but raising some questions they believe will need to be addressed, and more residential use occurs in Plat 208.  A copy of this email is attached.   Related Ordinance, Policy or Guiding Principle Zoning Ordinance Section 2.02, Special Use Permits Zoning Ordinance Chapter 12, Commercial Zoning Districts Zoning Ordinance Chapter 25, Entertainment District Overlay Zoning Ordinance Chapter 26, Planned Shopping Plaza District Overlay Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission held a public hearing to review and consider this request at their October 14, 2024, meeting.  The applicant and several citizens spoke in favor of the request.  Commissioners had some questions regarding the available parking and the solid waste pick up.  There was some concern about the density, but it was noted it is less than what has been approved for Park Place.  Clarification was provided that the two ground floor units facing the Avenue of the Fountains are not included in the SUP and will remain commercial/office uses. The Commission voted unanimously to recommend approval of the SUP. Staff Recommendation(s) Staff supports a recommendation for approval of this Special Use Permit.  Approval should be conditioned on the applicant providing a letter from Plat 208 stating they have an agreement for use of the solid waste enclosures prior to issuance of a building permit for remodel of the existing offices. SUGGESTED MOTION MOVE to approve SUP 24-000005 for up to five residential units, maintaining the two first floor commercial/office suites along the Avenue, and providing agreement from Plat 208 regarding solid waste services prior to issuing a remodel permit. Attachments Isaacs' email  Vicinity Map  Site Plan  Good Neighbor Statement  Citizen Participation Plan  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 10/22/2024 02:55 PM Town Attorney Aaron D. Arnson 10/23/2024 05:52 PM Town Manager Rachael Goodwin 10/31/2024 10:28 AM Form Started By: John Wesley Started On: 10/15/2024 04:02 PM Final Approval Date: 10/31/2024  From:Roger Isaacs To:Marina Buer; John Wesley Cc:Suzanne Isaacs Subject:16622 East Avenue of Fountains - Special Use Request Date:Wednesday, October 2, 2024 10:22:18 PM EXTERNAL EMAIL We are providing our position and thoughts via email since we are out of state for the next few days and will not be able to attend the informational open house tomorrow night in person. I’ve included John since he is deeply involved and the town needs to understand both our position and our concerns. Position We are 100% in support of mixed use on Plat 208 and would encourage the town to not only approve this request but to take steps to expand owner’s “by rights” to encourage downtown revitalization, eliminate unnecessary costs/delays, and more clearly set forth the boundaries the Town is REALLY going to operate between. Concerns Our concerns were not generated by Vladimir/Marina but driven by our past experience with mixed use and the relative lack of experience/preparation by those responsible for providing the infrastructure needed to evolve our downtown into a high quality successful mixed use community. We acknowledge that Plat 208, the Town, Roger & Suzanne, Vlad & Marina and many others have been working towards this vision but we are far from actually being where we need to be. Parking At this time there is no ability to provide assigned or secured or covered spaces for this property. Plat 208 has not actually formally endorsed over night parking or accepted that they are responsible for providing space per code. I am working on a revision to the Rules & Regulations which will be presented at the next Board meeting and which would acknowledge that Plat 208 residents will have the right to park overnight in certain areas. If this occurs then residential members will be assured the space that the Town assumes will be provided BUT the solution will be far below the expectation of the market that we want to target. We are concerned that Plat 208 residential members will quickly be in conflict with business members over “preferred parking spaces”. The Town and Plat 208 need to restrict residential parking to prevent residents from locking in the best spots – forcing customers to find and use distant spaces. Solid Waste John I appreciated your follow up on per residential unit trash requirements. Since I received your information I have engaged with our Board, reached out to several owners (trash enclosure managers) and worked on a Plat 208 trash enclosure availability resource. Plat 208 currently has very little available capacity. We currently have 28 enclosures. At a replacement cost of $25k per – this represents a $700k asset and in general the Board is not interested in removing more parking spaces and spending more money for additional enclosures. This is a problem since only 2 serviceable enclosures are sitting unused and the vast majority of the enclosure managers currently are NOT willing to take on additional shared users. Vladamir has attempted to make arrangements but we don’t believe he has a viable near term solution. In our experience there must be a signed sharing contract in place otherwise there is no commitment. We understand that from a code perspective the enclosure managed by Que Bueno is within allowable distance BUT there are several problems. CeCe has talked to us twice in the recent past complaining about overage charges. She indicated she was not willing to share with anyone and risk further issues/surcharges. In fact I received a query last week that came through from the mayor on her issues. If CeCe has reversed her position and signed an agreement with Vlad then that is a big step in the wrong direction. Suzanne and I have been on association Boards in FH where residential is sharing with restaurants and it is a constant war. Having to walk 125+ feet carrying a bag of trash, unlock a locked enclosure, not pass out from the odor of rotting food waste, trying not to slip on the slop, lifting the sticky lid and throwing in the bag – yes that will drive the value of our downtown units up won’t it? I believe Vladamir understands this isn’t a real solution but his other options are tough. He can petition 208 to build another enclosure – maybe the Board would change direction and support (last one built took over a year to approve). He can switch to providing a roller container for each residence BUT then we believe he should be required to provide a shielding enclosure which would take space, money, and time. We believe there needs to be a plan for moving forward with a short term temporary solution while a long term proper solution is developed and implemented. Vlad’s comment to me on all this was that the Town and Plat 208 need to be working together much earlier with developers to either firmly indicate that the desired/needed solution is available or to begin work to have it ready in conjunction with go live… I agree and ask again how can we get Plat 208 and the Town better in synch on development planning? Access Many of our downtown buildings were platted for zero lot line construction and (in my opinion) the Town and building architects failed to provide reasonable front to rear access. Vladamir’s building suffers from this. Getting from certain suites to Plat 208 parking or trash services behind the building can be a several minute exercise - unless they cut through private property or restricted areas. For our own longer term requirements we installed a paver walkway from Avenue to Plat 208. We have enjoyed a good relationship with Vlad and his tenants – allowing temporary open use and having no notable issues with respect of our property or abuse. Our concern is that a diverse group of condo owners may not all continue in the same manner. We are under no requirement to allow owners, customers, or others to utilize the walkway and we may restrict access/use at our discretion at any time. Potential residents and occupants of the building need to understand this. I hope this conveys our endorsement for moving forward and our deep concern that this will be a very bumpy road. The infrastructure is not ready and our Plat 208 pioneers are being forced to work around inferior solutions – we need to all work together to really realize the potential. Thanks, Roger & Suzanne Vicinity CASE: SUP24-000005 SITE / ADDRESS: 16622 E AVENUE OF THE FOUNTAINS APN 176-05-137 REQUEST: A SPECIAL USE PERMIT TO ALLOW UP TO 5 DWELLING UNITS (SUITES 100, 101, 200, 201, AND 202 AND 203 COMBINED) IN THE C-2, INTERMEDIATE COMMERCIAL ZONING DISTRICT, WITHIN THE ENTERTAINMENT AND THE PLANNED SHOPPING PLAZA OVERLAY DISTRICTS. All that is Ariz on a FO U N TAIN HIL L S TOWN OF INC. 1989 MCDOWELL MOUNTAIN REGIONAL PARK SALT RIVER PIMA - MARICOPA INDIAN COMMUNITY FO R T M C D O W E L L Y A V A P A I N A T I O N SC O T T S D A L E Site Location Vicinity MapMap ::CaseCase DetailsDetailsSUP24-000005SUP24-000005 AVE N U E O F T H E F O U N T A I N S PARK V I E W A V E VE R D E R I V E R D R LA M O N T A N A D R Site Plan No exterior changes Good Neighbor Statement Subject: SUP24-000005, 16622 E. Avenue of the Fountains Introduction: This Good Neighbor Policy outlines the commitments and actions we pledge to undertake to ensure a smooth and respectful transition as we change the use of our boutique hotel suites # 100; 101; # 200; 201; 202, from commercial to residential condominium suites. • Commercial suites numbered 102 and 103, will remain unchanged. Our goal is to foster a positive relationship with our neighbors and maintain the quality of life in the community. We believe this change will bring more vibrancy and stability to the area. The two-story, block construction building with elevator and two staircases, with 10 A/C Units and 9 individual electrical meters. Approximately, 8, 700 sq. ft. The Belvedere Suites: Ste# 100- 3 bedrooms, 2 bathrooms, full kitchen, living room approx. 1,000sq.ft. Ste# 101-(ADA compliance), 2 bedrooms, 2 bathrooms, full kitchen, Living room, approx. 900sq.ft. Ste# 200- 2 bedrooms, 2 bathrooms, full kitchen, living room, approx. 1,000sq.ft. Ste# 201-2 bedrooms, 2 bathrooms, full kitchen, living room, approx. 900sq.ft. Commercial Suites: Ste# 102-Retail space, approx. 1,000sq.ft. Ste# 103-Office space, approx. 900sq.ft. Ste# 202-Office space, approx. 1,000sq.ft. St# 203-Office space, approx. 900sq.ft. We are seeking approval to convert the boutique hotel's existing C-2 Zoning for a Special Use, specifically to change commercial suites to residential suites as follows: • Residential suites: #100, 101, 200, 201, and 202 & 203 converted into one suite-# 202. • Commercial suites numbered 102 and 103, will remain unchanged. *We are dedicated to being a responsible and considerate neighbors during this transition. Through proactive communication, thoughtful planning, and a commitment to addressing community concerns, we aim to ensure a harmonious integration of the new residential use into the existing neighborhood fabric. We strongly believe the new vibrancy which will come from this location will add value to the adjacent business owners on Avenue of the Fountains, Fountain Hills Blvd, Palisades Blvd, Saguaro Blvd, and for the entire community. Thank you for your cooperation and support as we work together to improve our the most beautiful town! Contact information: Belvedere Suites, LLC. Vladimir & Marina Buer (480)-220-0206 (480)-620-7613 From:Marina Buer To:John Wesley Cc:Paula Woodward Subject:Re: SUP24-000005 Date:Wednesday, September 4, 2024 4:37:04 PM EXTERNAL EMAIL Citizen Participation Plan for 16622 E. Avenue of the Fountains, Fountain Hills, Az 85268 Special Use Permit Date : September 5, 2024 Purpose: This Citizen Participation Plan informs citizens, property owners, and nearby neighborhood associations of the special use permit application for residential uses of the former boutique hotel suites building at 16622 E. Avenue of the Fountains. This plan will ensure that those affected by this application will have an adequate opportunity to learn about and comment on the proposal. Applicant: The Buer Revocable Trust, Location: The property considered for the SUP is on the east side of E. Avenue of the Fountains, west of Saguaro Blvd. Action Plan : To provide effective citizen participation in conjunction with this application, the following actions will be taken to provide opportunities to understand and address any real or perceived impacts of the conversion that members of the community may have. 1. A contact list will be provided for citizens within 300’ of the property location. 2. All persons listed on the contact list will receive a letter describing the conversion process location, andinvitation to a neighborhood meeting will be reviewed at a meeting with Planning and Zoning at 6:00PM on October 14, 2024. If appropriate it will then be reviewed with the Town Council on November19, 2024 (this is tentatively 5:30 PM). Both meetings will take place at the Town Hall. You arewelcome to attend those meetings. If you prefer, you can send questions or concerns directly toVladimir and Marina at (480) 220-0206 or via email at Vandm59@gmail.com .3. Presentations will be made to any other groups or citizens upon request. Copies of sign-in list and anycomments will be submitted with the Citizen Participation Report. Schedule: Planning and Zoning at 6:00 PM on October 14, 2024. Council on November 19, 2024 (this is tentatively 5:30 PM). Both meetings will take place at the Town Hall. Citizen Participation Plan for Special Use Permit for: Property Address Belvedere Suites, LLC. 16622 E. Avenue of the Fountains, Fountain Hills, Az 85268 Subject: Special Use Permit Introduction: This Good Neighbor Policy outlines the commitments and actions we pledge to undertake to ensure a smooth and respectful transition as we change the use of our boutique hotel suites # 100; 101; # 200; 201; 202, from commercial to residential condominium suites. Commercial suites numbered 102 and 103, will remain unchanged. Our goal is to foster a positive relationship with our neighbors and maintain the quality of life in the community. We believe this change will bring more vibrancy and stability to the area. The two story block construction building with elevator and two staircases, with 10 A/C Units and 9 individual electrical meters. Approximately, 8, 700 sq. ft. The Belvedere Suites: Ste# 100- 3 bedrooms, 2 bathrooms, full kitchen, living room approx. 1,000sq.ft. Ste# 101-(ADA compliance), 2 bedrooms, 2 bathrooms, full kitchen, Living room, approx. 900sq.ft. Ste# 200- 2 bedrooms, 2 bathrooms, full kitchen, living room, approx. 1,000sq.ft. Ste# 201-2 bedrooms, 2 bathrooms, full kitchen, living room, approx. 900sq.ft. Commercial Suites: Ste# 102-Retail space, approx. 1,000sq.ft. Ste# 103-Office space, approx. 900sq.ft. Ste# 202-Office space, approx. 1,000sq.ft. St# 203-Office space, approx. 900sq.ft. We are seeking approval to convert the boutique hotel's existing C-2 Zoning for a Special Use, specifically to change commercial suites to residential suites as follows: Residential suites: #100, 101, 200, 201, and 202 & 203 converted into one suite-# 202. Commercial suites numbered 102 and 103, will remain unchanged. *We are dedicated to being a responsible and considerate neighbors during this transition. Through proactive communication, thoughtful planning, and a commitment to addressing community concerns, we aim to ensure a harmonious integration of the new residential use into the existing neighborhood fabric. We strongly believe the new vibrancy which will come from this location will add value to the adjacent business owners on Avenue of the Fountains, Fountain Hills Blvd, Palisades Blvd, Saguaro Blvd, and for the entire community. Thank you for your cooperation and support as we work together to improve our the most beautiful town! Contact information: Belvedere Suites, LLC. Vladimir & Marina Buer (480)-220-0206 (480)-620-7613 Vandm59@gmail.com On Aug 30, 2024, at 8:46 AM, Marina Buer <vandm59@gmail.com> wrote: From: John Wesley <jwesley@fountainhillsaz.gov> Date: August 29, 2024 at 2:57:56 PM MSTTo: Marina Buer <vandm59@gmail.com>Subject: RE: SUP24-000005  Vladimir, By the information provided below, it shows you are planning 5 total living units in the property. 2 on the ground floor and three on the second floor. You are allowed up to 8 units per acre by right if they are all on the second floor. Your lot size is 6,000 square feet, or 0.137 acres. At 8 units per acre, you can have 1.09 units by right (I always round this up to 2). At 5 total units on the property, that is a density of 36 units per acre. Your SUP needs to be for all 5 units, not just the two on the ground floor. <image001.png> From: Marina Buer <vandm59@gmail.com> Sent: Thursday, August 29, 2024 2:49 PM To: John Wesley <jwesley@fountainhillsaz.gov> Subject: Re: SUP24-000005 EXTERNAL EMAIL Good afternoon John, Thank you for your email confirmation. Following our recent conversation, my understanding was that a special use permit is required for the first floor Suites #100 and #101, which face the parking lot. Additionally, the Town would support this application if we maintain the front two Suites #102 and #103 as commercial. Could you please confirm this? We would also like to forward all documents submitted regarding our special use process for your review. We have notified our POA (Plat 208), and the property manager has notified all property owners within a 300-foot radius on our behalf. Thank you very much for assisting us with this challenging project. We will resend the Citizens Participation Plan at the beginning of next week. With appreciation, Respectfully, Vladimir & Marina From:zach@zbrooks.com<zach@zbrooks.com> Sent: Thursday, August 22, 2024 8:15 PM To: Marina Buer <vandm59@gmail.com>; Farhad Tavassoli <ftavassoli@fountainhillsaz.gov> Cc: Scott Brendemuhl <scott.brendemuhl@associatedasset.com> Subject: Updated Notification This notice is being sent to all members of Tract 208 on behalf ofVladimir and Marina Buer. They own The Belvedere Suites at 16622 E.Avenue of the Fountains. Vladimir and Marina are asking approval from the Town of FountainHills to convert the boutique hotel's existing C-2 Zoning for a SpecialUse, specifically to change commercial suites to residential suites as follows: · Residential suites: 100, 101, 200, 201, 202, 203 · Commercial suites numbered 102 and 103, will remain unchanged. Their request will be reviewed at a meeting with Planning and Zoning at6:00 PM on October 14, 2024. If appropriate it will then be reviewedwith the Town Council on November 19, 2024 (this is tentatively 5:30PM). Both meetings will take place at the Town Hall. You are welcometo attend those meetings. If you prefer, you can send questions orconcerns directly to Vladimir and Marina at (480) 220-0206or via emailat Vandm59@gmail.com . Thanks, Zach Brooks President Tract 208 Board Zach Brooks602-418-6704 On Aug 29, 2024, at 1:16 PM, jwesley@fountainhillsaz.gov wrote:  Vladimir, I have a couple of items to bring to your attention regarding yourapplication for a Special Use Permit for residential use at 16622 E.Avenue of the Fountains. First, I have reviewed case loads with Farhad and determined I needed tolighten his load so I have taken over the processing of this case. Allfuture comments and questions can be directed to me. I look forward toworking with you on this request. I see that we still need to receive a citizen participation plan. I willforward an example plan to you to assist you in crafting and submitting acitizen participation plan. I also note that we do not have a list of all the property owners within300' of your property. Please submit that list with the mailing addressesof these property owners. I also note in your narrative that you will be having 2 residential units onthe ground floor and three on the second floor. Is this correct? From theprevious building permit plans I understand there are only two hotelunits currently on the second floor. Will you be converting anothersecond floor space to residential? Will there be any non-residential useof the second floor? To keep your case on track for the October P&Z Commission review, Iwill need the above information no later than one week from today,Thursday, September 5. Please note that if you miss this deadline youwill be be able to be on a Council agenda until after the first of the year. Please let me know if I can be of any assistance. John Wesley, AICPDevelopment ServicesDirectorTown of Fountain Hills480-816-513816705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 w: www.fountainhillsaz.gov e: jwesley@fountainhillsaz.gov Disclaimer: All messages created in this system are the property of the Town of Fountain Hills, Arizona and should be considered a public record subject to disclosure under the Arizona Public Records Law (ARS 39-121). Town employees, town public officials, and those who generate email to them, should have no expectation of privacy related to the use of this technology. <Adopted Citizen Participation Guidelines.pdf> Disclaimer: All messages created in this system are the property of the Town of Fountain Hills, Arizona and should be considered a public record subject to disclosure under the Arizona Public Records Law(ARS 39-121). Town employees, town public officials, and those who generate email to them, shouldhave no expectation of privacy related to the use of this technology. ITEM 10. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  HOLD A PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: A request to rezone approximately 0.69 acres located at 15225 N. Fountain Hills Boulevard, northeast corner of Fountain Hills Boulevard and Glenbrook Boulevard, from C-1, Neighborhood Commercial and Professional Zoning District, to C-2, Intermediate Commercial Zoning District. Staff Summary (Background) The commercial block at the northeast corner of Fountain Hills Boulevard and Glenbrook Boulevard was zoned C-1 in County with the original zoning for Fountain Hills.  This block was platted in 1972 and the first development of the lots and buildings began in 1980.  There have been no changes to the buildings and parking since 2006. Lot 17, located at the corner of Fountain Hills Boulevard and Glenbrook Boulevard, is 29,913 square feet in size and contains one building of approximately 10,000 square feet.  The request is to rezone this one lot to C-2 in order to then seek and obtain approval of a Special Use Permit to allow outdoor display of vehicles for sale. The surrounding zoning and land use pattern is:  North: C-1, vacant East: C-1, commercial buildings and day care; R-2, residential South: C-C, vacant (approved for residential) and commercial Southwest: R1-8, church West: R1-35, church Zoning Districts  The existing zoning on this property is C-1.  This district is described as: C-1. Neighborhood Commercial and Professional Zoning District: The Neighborhood Commercial and Professional District is established to provide a location for modest, well-designed commercial enterprises to serve a surrounding residential neighborhood, as well as to provide for services to the community, which is not detrimental to the integrity of the surrounding residential neighborhood, and to provide for the appropriate location of professional offices throughout the community. The intent of this district is to integrate limited commercial offices throughout the community. The intent of this district is to integrate limited commercial activity and professional offices with residential land uses in a climate favorable to both. Particular attention is to be paid to the interface between commercial or professional uses and the residential uses within the same neighborhood. The requested zoning designation is C-2.  This district is described as: C-2. Intermediate Commercial Zoning District: The principal purpose of this Zoning District is to provide for the sale of commodities and the performance of services and other activities in locations for which the market area extends beyond the immediate residential neighborhoods. Principal uses permitted in this Zoning District include furniture stores, hotels and motels, restaurants, and some commercial recreation and cultural facilities, such as movies and instruction in art and music. This Zoning District is designed for application at major street intersections. The C-2 Zoning District is a more intense district that allows a wider range of uses by right and is intended for areas designed to serve a larger geographic area.  The additional uses allowed in the C-2 by right include the following:  C. Additional Uses Permitted in C-2 and C-3 Zoning Districts are as follows: 1. Automobile laundries, provided steam cleaning is confined to an enclosed building. 2. Automobile repair shops and garages, including an outside vehicle storage area to be used only for vehicles under repair which shall be completely screened from any street or surrounding property, and further provided all repair operations are conducted within a building. 3. Bars, including retail sales of package goods for off-site consumptions; provided, that there is no entertainment or music audible off-site unless otherwise permitted pursuant to Chapter 25 of this ordinance. 4. Blueprint, photo static and reproduction (copy) services. 5. Catering establishments not utilizing any manufacturing process or outside storage of materials or vehicles. 6. Conservatories or studios: Art, dancing or music. 7. Drive-in restaurants and refreshment stands. 8. Electrical fixtures and appliance sales repair and service. 9. Furniture stores: New, used, finished or unfinished; No manufacturing. 10. Health spas and public gyms. 11. Hotels and Motels. 12. Laboratories, medical or dental. 13. Liquor stores. 14. Parking lots and public garages, subject to parking standards in Chapter 7. 15. Plumbing shops. 16. Pool halls or billiard centers. 17. Radio and television broadcasting stations and studios, but not including transmitter towers and stations. 18. Restaurants and cafes, including outdoor patios with or without cocktail lounges; provided, that there is no entertainment or music audible off-site unless otherwise permitted pursuant to Chapter 25 of this ordinance. Any outdoor patio with alcoholic beverage service must be enclosed as required by Arizona Revised Statues § 4-207.01, as amended, except for the time during which a current and applicable barrier exemption, as granted by the Arizona Department of Liquor Licenses and Control, is in place for the outdoor patio. 19. Retail stores. 20. Theaters, but not including a drive-in theater and adult oriented facilities as defined under Chapter 1, Section 1.12 of this zoning ordinance. 21. Trade schools. 22. Upholstery shops. 23. Veterinary hospitals and clinics for animals, subject to: a. Animals shall not be boarded or lodged except for short periods of observation incidental to care or treatment. b. Animals shall be kept within a completely enclosed building, which shall be constructed and maintained as to prevent objectionable noise and odor outside the walls of the building. c. No kennels or exercise runs will be permitted. d. All refuse shall be stored within the enclosed building or within odor proof containers. 24. Accessory buildings and uses customarily incidental to the above. 25. In the C-2 district, sale of new and used automobiles, golf carts, all-terrain vehicles and motorcycles are permitted, provided all the following conditions are met: a. All display of inventory and merchandise is completely within an enclosed building, without outdoor display of any vehicle; and b. All sales activities occur within the building. 26. Substance abuse or addiction treatment center. Must be located at least 2,000 feet from any other detoxification center, substance abuse or addiction treatment center, or transitional community residence. In addition to uses that are allowed by right, the Zoning Ordinance includes some uses that require a Special Use Permit if in the C-1 Zoning District.  By rezoning to C-2 the requirement for the Special Use Permit would no longer be in place.  The uses subject to the SUP in C-1 are:  A. Drive-in window facilities. B. Operation of commercial or professional activities between eleven p.m. and seven a.m. C. Outdoor seating area. D. Private schools for vocational education. E. Retail gasoline sales, subject to compliance with applicable fire and safety codes.  (Limited to four dispensing units serving a maximum of eight cars simultaneously). F. Member-based indoor shooting range for gun calibers designed to be withstood by an AR500 steel grade or equivalent bullet trap design standard. Exceptions to member-based requirement include law enforcement and military personnel, and special event participants.     General Plan  Character Area Goals and Policies: GOAL 1: Encourage future development, redevelopment and infill in a manner that will maintain and protect existing neighborhoods, the Town’s economic health, community well-being, and natural environment. POLICIES:  Achieve and maintain a diverse and sustainable land use mix consistent with our small-town character that supports thriving neighborhoods, environment and economy by attracting and retaining revenue-generating uses that:  Enhance the Town’s economic vitality; anda. Increase the Town’s revenue base to maintain quality infrastructure, services and amenities. b. 1. GOAL 2: Development, redevelopment and infill support Fountain Hill’s small-town identity and the distinct character of each area while fostering long-term viability. POLICIES:  2. Require higher density/intensity development adjacent to residential uses to include appropriate landscape buffers within the setback area when within or adjacent to the Large Lot Residential and Mixed Neighborhood Residential character types.  3. Support a mix of residential, employment, and commercial uses at densities and intensities and in the development form that reflects the small-town character of Fountain Hills. 6. Require that development, redevelopment, and infill conform with Exhibit 2, Character Areas Plan map, and Table 1.    GOAL 3: Monitor development, revitalization, redevelopment and infill. POLICIES:  3. Continue to monitor and prioritize the development of existing commercially zoned lands and the renovation of underutilized commercial buildings. General Plan Character Areas:  Existing commercial areas within the Neighborhood's character type (Shea and Eagle Mountain, Fountain Hills and Glenbrook, Saguaro and Kingstree) will continue to provide commercial services for their adjacent neighborhood and the community.  Given their integration with the surrounding neighborhood they should always remain low intensity non-residential areas.  Continued development and redevelopment in these locations must be compatible with the adjacent neighborhood and done in a way that both supports the continued health of the residential area and makes for a more viable and sustainable commercial node. Analysis The primary goal for this area is to maintain a neighborhood-oriented commercial node that meets the needs of the nearby residents. When a property is zoned, the land within the area zoned can be used for any of the permitted uses.  Therefore, when evaluating this request, consideration has to be given to whether or not this is an appropriate location for a car wash, vehicle repair, a hotel, a restaurant with outdoor seating, or any of the other uses listed by right in the C-2 District.  Consideration should also be given to the impact on the neighborhood of removing the C-1 zoning district regulations that require approval of a Special Use Permit for drive-in windows, businesses to be open from 11 pm to 7 am, outdoor seating, and gasoline sales and whether those protections are needed in this area. The General Plan recognizes this as a neighborhood-serving commercial area that should be maintained.  It has struggled over the years, along with the commercial area to the south, to keep tenants.  A rezone to a higher zoning designation would broaden the options for businesses that could locate on this property, which might help make it more successful.  However, the additional uses that would be allowed would not be in keeping with the low impact commercial development that has been in place in this area. Citizens Participation The applicant sent notice to all property owners within 300' as required by ordinance.  A meeting was held on September 15 that could be attended in person or virtually.  No one attended the meeting, so there were no comments from the surrounding property owners regarding this request. Since sending out the public notice of the meeting, staff has not received any comments or questions from the public regarding this request. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Section 2.01 Amendments or Zone Changes Zoning Ordinance Chapter 12 Commercial Zoning Districts Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission held a public hearing on this request at their October 14, 2024, meeting.  The applicant spoke in favor of the request in order to allow outdoor display for their existing golf cart business.  One citizen spoke in opposition to this rezoning but supported the existing business and their ability to display golf carts in the parking lot. The Commission reviewed the list of additional uses that would be allowed on this property if the rezoning were approved.  Based on the potential impact of these more intense uses, the Commission voted unanimously to recommend denial of the rezoning.  At the same time, however, the Commissioners expressed support for the golf cart business and outdoor display of these vehicles.  They recommend the Council direct staff to process a text amendment to allow display of golf carts in the C-1 zoning district. Staff Recommendation(s) A rezoning of this property to C-2 would be too intense for this area.  The location of the property is not consistent with the intent of this district and the General Plan designation is for lower intensity uses consistent with being part of a residential neighborhood. Staff recommends denial of the rezoning request. SUGGESTED MOTION MOVE to deny rezoning case RZ24-000002.  The motion could also include direction to staff to process a text amendment that would allow golf cart display in the C-1 and C-C zoning districts. Attachments Vicinity Map  Site Plan  Zoning Map  Project Narrative  Citizen participation Plan  Citizen Participation Report  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 10/22/2024 02:55 PM Town Attorney Aaron D. Arnson 10/23/2024 05:55 PM Town Manager Rachael Goodwin 10/31/2024 10:05 AM Development Services Director (Originator)John Wesley 10/31/2024 10:30 AM Form Started By: John Wesley Started On: 10/15/2024 04:03 PM Final Approval Date: 10/31/2024  Vicinity CASE: RZ24-000002 SITE / ADDRESS: 15225 N FOUNTAIN HILLS BLVD APN 176-04-455 REQUEST: REZONE THE NORTHEAST CORNER OF FOUNTAIN HILLS BLVD AND GLENBROOK BLVD, FROM C-1, NEIGHBORHOOD COMMERCIAL AND PROFESSIONAL ZONING DISTRICT, TO C-2, INTERMEDIATE COMMERCIAL DISTRICT. All that is Ariz on a FO U N TAIN HIL L S TOWN OF INC. 1989 MCDOWELL MOUNTAIN REGIONAL PARK SALT RIVER PIMA - MARICOPA INDIAN COMMUNITY FO R T M C D O W E L L Y A V A P A I N A T I O N SC O T T S D A L E Site Location Vicinity MapMap ::CaseCase DetailsDetailsRZ24-000002RZ24-000002 FO U N T A I N H I L L S B L V D MC D O W E L L MO U N T A I N RD GLENBROOK BL V D I V O R Y D R EL PUEBLO BLV D PE A C H T R E E L N AL L E Y AL L E Y ALLEY Site Plan: No changes to existing development Request to rezone to C-2 Zoning Map July 7th 2024 Town of Fountain Hills 16705 E Ave of the Fountains, Fountain Hills, AZ 85268 RE: Project Narrative The lot is not changing from existing standards. Christine, Sheppard, or Phyllis Krikorian- Meagher owner of real property located at 15225 E. Fountain Hills Blvd, proposes to apply for zoning change from C1 to C2 with SUP or C3.C3 is the preferred Zoning. The proposed property is an existing C-1 Neighborhood Commercial Professional District. Storefront which allows: “Sale of new and used automobiles, golf carts, all-terrain vehicles, and motorcycles are permitted in the C-1”. The Owner is requesting a zoning change for an existing tenant to allow them to have several golf carts displayed in the parking lot or under the awning away from egress points under the permitted uses of the C3 Zoning ordinances or C-2 Zoning Ordinances with a special use permit. The preferred zoning would be C-3; The existing C3 zoning ordinances would allow for: New and used automobiles, boats, golf carts, all-terrain vehicles, motorcycles, travel trailers, recreational vehicle sales and rental including indoor and/or outside display area, provided all sales and repair activities are conducted within a building. Please see the site plan showing the parking lot will remain functional to the building but allow for display of golf carts, while not impeding or interfering with any of the surrounding major roads, streets, adjacent lots, while maintaining proper egress of all units. This does not interfere with any direct residential area within the allotted radius of zoning or other Commercial Businesses. Fountain Hills Golf Carts is the only occupant in the structure and rents 3 spaces out of the 5 available. If approved Carts will be displayed on the back end and/ or front of parking lot contained within the property only during business hours, while leaving the majority of parking spaces open and available for any consumers and / or Emergency services. The landscape of the property will not be interfered with in any way. The residential area behind the is not in direct view of such displays. Thank you for your consideration and please let us know if you need any additional information. Paula Richards, For and on behalf of Christine Sheppard July 7, 2024 Town of Fountain Hills 16705 E Ave of the Fountains, Fountain Hills, AZ 85268 RE: Citizen Participation Plan 1)A list of residents, property owners, interested parties, political jurisdictions and public agencies which may be affected by the proposed development. The following are businesses or churches that would be closest to the existing retail center  See mailing list 2) How those interested in, and potentially affected by, a proposed development will be notified that such an application has been made. We will provide the existing businesses in the vicinity with a flyer describing the proposed rezoning and its purpose for the display of golf carts in front of the business. Hold a meeting at the business location and also with a Zoom meeting access. 3) How those affected or otherwise interested will be provided an opportunity to discuss the proposal. The above-mentioned flyer will contain a virtual meeting for all that are interested to join in to discuss the proposed rezoning for the purpose of displaying golf carts in front of business This project will not require any construction or changes to the existing lot and will not affect any existing business or residents in any way therefore a schedule is not applicable. We will inform Development Services Department with the report and a copy of the plan that was given to local businesses in the area and meetings held Thank you for your consideration and please let us know if you need any additional information. Paula Richards, For and on behalf of Christine Sheppard Re Zoning request mailing list Parcel Name mailing addres Address 1 176-02-679 S R P A I & P D 313 N 3RD AVE PHOENIX AZ USA 85003 15228 N IVORY DR FOUNTAIN HILLS 85268 srp lot 2 176-04-456 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 N/A Lot 3 176-04-439 MICELL LEONARD 11605 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16740 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 176-04-440 MICELL LEONARD 11606 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16744 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 176-04-441 MICELL LEONARD 11607 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16746 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 4 176-04-442 JFDC LIVING TRUST in care of ZLAKET ADEL F/NADA S TR 8994 E GRAY RD SCOTTSDALE AZ USA 85260 16748 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 5 176-04-443 KARP BRIAN A/CHRISTINA C 16678 N ASPEN DR FOUNTAIN HILLS AZ USA 85268 15253 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 6 176-04-444 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15251 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-445 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15243 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-446 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-447 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15247 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-448 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-809 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by shop 7 176-04-452 MCLEAN MICHELLE D/TERENCE M NILAND 901 AUGUSTA DR NAMPA ID USA 83686 15235 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants Submiting req. 176-04-451 KRIKORIAN PHILLIP TR 6746 E MONTECITO AVE SCOTTSDALE AZ USA 85251 15237 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants 176-04-455 KRIKORIAN PHILLIP TR 6746 E MONTECITO AVE SCOTTSDALE AZ USA 85251 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 FHGC - submitting request 8 176-04-798 TRAETTINO CHRISTOPHER A 6402 S 28TH ST PHOENIX AZ USA 85042 15241 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants 9 176-04-807 ZARRAGA JAIME JR/CALEB JAMES 9843 N 13TH PL PHOENIX AZ USA 85020 16754 E GLENBROOK BLVD FOUNTAIN HILLS 85268 Maskadores 10 176-04-808 FMS LLC FIVE 5917 E MARILYN RD SCOTTSDALE AZ USA 85254 16758 E GLENBROOK BLVD FOUNTAIN HILLS 85268 flapjacks 176-04-809 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 parking lot hand delivered 176-04 862 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 townhomes 1/2 back of lot hand delivered 176-04 860 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD UNIT 1 FOUNTAIN HILLS 85268 townhome 1 hand delivered 176-04-861 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD UNIT 2 FOUNTAIN HILLS 85268 townhome 2 11 176-02-688 LSM VENTURES LLC 829 EASTWOOD DR GOLDEN CO USA 80401 16805 E GLENBROOK BLVD FOUNTAIN HILLS 85268 homeacross street 12 176-04-687 THIN AIR LLC 15871 E EAGLEROCK DR FOUNTAIN HILLS AZ USA 85268 16741 E GLENBROOK BLVD FOUNTAIN HILLS 85268 empty lot 13 176-04-813 TRACT 106 PROPERTY OWNERS ASSN 11655 N 109TH ST SCOTTSDALE AZ USA 85259 16741 E GLENBROOK BLVD FOUNTAIN HILLS 85268 chruch parking lot 14 176-04-866 BARRY AND DEBRA MCBRIDE REVOCABLE TRUST 9249 N 102ND ST SCOTTSDALE AZ USA 85258 16751 E GLENBROOK BLVD FOUNTAIN HILLS 85268 chruch 7 Date: August 21, 2024 Purpose: The purpose of this Citizen Participation Plan is to inform citizens, property owners, and nearby neighborhood associations of the special use permit application for rezoning from C1 to C2 with a special use permit or C3. This plan will ensure that those affected by this application will have an adequate opportunity to learn about and comment on the proposal. Applicant: Paula Richard for and Behalf of Christine Sheppard, property Owner 15225 E. Fountain Hills Blvd Fountain Hills, AZ 85268 602-882-2958 email: pr12@cox.net Location: The property being considered for this SUP or C3 Rezoning is located at 15225 E. Fountain Hills Blvd (see attached location map). Owner is requesting a zoning change for an existing tenant to allow them to have their golf carts displayed in the parking lot during business hours under the permitted uses of the C2 with special use permit to display a few vehicles outside or C3 Zoning ordinances; New and used golf carts, sales and rental including indoor and/or outside display area, provided all sales and repair activities are conducted within a building. Action Plan: To provide effective citizen participation in conjunction with this application, the following actions will be taken to provide opportunities to understand and address any real or perceived impacts of the development that members of the community may have. 1. A contact list will be developed for citizens and HOA’s within 300’ of the project location. 2. All persons listed on the contact list will receive a letter describing the project, project schedule, site plan and invitation to a neighborhood meeting to be held at Fountain Hills Golf Carts and via Zoom (see details below)  The meeting will be an introduction to the project, and an opportunity to ask questions and state concerns. A sign-in list will be used, and comment forms provided. Copies of the sign-in list and any comments will be submitted with the Citizen Participation Report.  If a second meeting is required, details will be sent to all parties and will be provided to the Town with the Citizen Participation Report. 3. Presentations will be made to groups of citizens or neighborhood associations upon request. Copies of the sign-in list and any comments will be submitted with the Citizen Participation Report. 4. An email will be sent to the case planner following each of the scheduled meetings, and at any other time there is significant input to inform the staff of the progress of implementing the plan. Schedule: Mail flyers by 8/21/24 Neighborhood meeting 9/15/24 – 3PM at FH Golf Carts Paula Richards is inviting you to a scheduled Zoom meeting. Topic: FH Golf Cart rezoning Time: Sept 15, 2024 03:00 PM Arizona Join Zoom Meeting: Invite Link Invite Link Join Zoom Meeting https://us05web.zoom.us/j/82655372441?pwd=0L8anpah00vadYop6sMZl7aUgctblL.1 Meeting ID: 826 5537 2441 Passcode: 6dAGCj CiƟzen ParƟcipaƟon Report for Fountain Hills Golf Carts Specia Use permit and Re zone Case #: Permit #: SUP24-000006 / Project #: 22-000487 Date of Report: 10-1-24 Overview: This report provides results of the implementaƟon of the CiƟzen ParƟcipaƟon Plan for FHGC special use permit. This site is located at 15225 E. Fountain Hills Blvd Fountain Hills, AZ 85268. This report provides evidence that ciƟzens, neighbors, and interested persons have had adequate opportunity to learn about and comment on the proposed plans and acƟons addressed in the applicaƟon. Comments, sign-in lists, peƟƟons, leƩers, summary sheets, and other materials are aƩached. Contact: Paula Richards on Behalf of Ron Ricci and ChrisƟne Sheppard 15225 E. Fountain Hills Blvd Fountain Hills, AZ 85268 602-882-2958 email: pr12@cox.net Neighborhood MeeƟngs: The following are dates and locaƟons of all meeƟngs where ciƟzens were invited to discuss the applicant’s proposal [comments, sign in lists and other feedback are aƩached]; 1. 9/15/24 – for SUP & Rezoning permit FounƟan Hills Golf Carts , 3 P.M. to 3:30 P.M. - 0 CiƟzens in aƩendance; 0 virtually Correspondence and Telephone Calls: 1. 1st leƩers mailed to contact list (14) on 8/22/24 including all property owners and one HOA within 300’ 2. 2nd leƩers mailed to contact list on 9/5/24 3. 2 of those leƩers where hand mailed as well as the actually businesses in this area where hand delivered copies of this leƩer 4. Project published in the "Fountain Hills Times" newspaper on not sure of actual of date we paid for the town to post 5. Established website and other social media accounts related to the project on N/A 6. 9/15/24 meet with adjacent neighbors/ owners - no parƟcipants showed up on site to discuss the proposed August 31, 2024 Town of Fountain Hills 16705 E Ave of the Fountains, Fountain Hills, AZ 85268 RE: Citizen Participation Plan 1)A list of residents, property owners, interested parties, political jurisdictions and public agencies which may be affected by the proposed development. The following are businesses or churches that would be closest to the existing retail center  See mailing list 2) How those interested in, and potentially affected by, a proposed development will be notified that such an application has been made. We will provide the existing businesses in the vicinity with a flyer describing the proposed rezoning and its purpose for the display of golf carts in front of the business. Hold a meeting at the business location and also with a Zoom meeting access. 3) How those affected or otherwise interested will be provided an opportunity to discuss the proposal. The above-mentioned flyer will contain a virtual meeting for all that are interested to join in to discuss the proposed rezoning for the purpose of displaying golf carts in front of business This project will not require any construction or changes to the existing lot and will not affect any existing business or residents in any way therefore a schedule is not applicable. We will inform Development Services Department with the report and a copy of the plan that was given to local businesses in the area and meetings held Thank you for your consideration and please let us know if you need any additional information. Paula Richards, For and on behalf of Christine Sheppard Re Zoning request mailing list Parcel Name mailing addres Address 1 176-02-679 S R P A I & P D 313 N 3RD AVE PHOENIX AZ USA 85003 15228 N IVORY DR FOUNTAIN HILLS 85268 srp lot 2 176-04-456 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 N/A Lot 3 176-04-439 MICELL LEONARD 11605 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16740 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 176-04-440 MICELL LEONARD 11606 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16744 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 176-04-441 MICELL LEONARD 11607 N SAGUARO BLVD FOUNTAIN HILLS AZ USA 85268 16746 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 4 176-04-442 JFDC LIVING TRUST in care of ZLAKET ADEL F/NADA S TR 8994 E GRAY RD SCOTTSDALE AZ USA 85260 16748 E GLENBROOK BLVD FOUNTAIN HILLS 85268 lot at top 5 176-04-443 KARP BRIAN A/CHRISTINA C 16678 N ASPEN DR FOUNTAIN HILLS AZ USA 85268 15253 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 6 176-04-444 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15251 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-445 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15243 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-446 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-447 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15247 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-448 MIRANTISA PROPERTIES LLC 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS AZ USA 85268 15249 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by day school 176-04-809 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 lot by shop 7 176-04-452 MCLEAN MICHELLE D/TERENCE M NILAND 901 AUGUSTA DR NAMPA ID USA 83686 15235 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants Submiting req. 176-04-451 KRIKORIAN PHILLIP TR 6746 E MONTECITO AVE SCOTTSDALE AZ USA 85251 15237 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants 176-04-455 KRIKORIAN PHILLIP TR 6746 E MONTECITO AVE SCOTTSDALE AZ USA 85251 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 FHGC - submitting request 8 176-04-798 TRAETTINO CHRISTOPHER A 6402 S 28TH ST PHOENIX AZ USA 85042 15241 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 behind restaurants 9 176-04-807 ZARRAGA JAIME JR/CALEB JAMES 9843 N 13TH PL PHOENIX AZ USA 85020 16754 E GLENBROOK BLVD FOUNTAIN HILLS 85268 Maskadores 10 176-04-808 FMS LLC FIVE 5917 E MARILYN RD SCOTTSDALE AZ USA 85254 16758 E GLENBROOK BLVD FOUNTAIN HILLS 85268 flapjacks 176-04-809 TRACT 430 PROPERTY OWNERS ASSOC in Care of CENTURY 21 KERN REALTY 17031 E EL LAGO BLVD FOUNTAIN HILLS AZ USA 85268 15225 N FOUNTAIN HILLS BLVD FOUNTAIN HILLS 85268 parking lot hand delivered 176-04 862 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 townhomes 1/2 back of lot hand delivered 176-04 860 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD UNIT 1 FOUNTAIN HILLS 85268 townhome 1 hand delivered 176-04-861 TROGI ARNOLD TR 16806 E GLENBROOK BLVD 2 FOUNTAIN HILLS AZ USA 85269 16806 E GLENBROOK BLVD UNIT 2 FOUNTAIN HILLS 85268 townhome 2 11 176-02-688 LSM VENTURES LLC 829 EASTWOOD DR GOLDEN CO USA 80401 16805 E GLENBROOK BLVD FOUNTAIN HILLS 85268 homeacross street 12 176-04-687 THIN AIR LLC 15871 E EAGLEROCK DR FOUNTAIN HILLS AZ USA 85268 16741 E GLENBROOK BLVD FOUNTAIN HILLS 85268 empty lot 13 176-04-813 TRACT 106 PROPERTY OWNERS ASSN 11655 N 109TH ST SCOTTSDALE AZ USA 85259 16741 E GLENBROOK BLVD FOUNTAIN HILLS 85268 chruch parking lot 14 176-04-866 BARRY AND DEBRA MCBRIDE REVOCABLE TRUST 9249 N 102ND ST SCOTTSDALE AZ USA 85258 16751 E GLENBROOK BLVD FOUNTAIN HILLS 85268 chruch 7 Date: August 31, 2024 Purpose: The purpose of this Citizen Participation Plan is to inform citizens, property owners, and nearby neighborhood associations of the special use permit application with a C2 rezoning. This plan will ensure that those affected by this application will have an adequate opportunity to learn about and comment on the proposal. Applicant: Paula Richard for and Behalf of Christine Sheppard, property Owner 15225 E. Fountain Hills Blvd Fountain Hills, AZ 85268 602-882-2958 email: pr12@cox.net Location: The property being considered for this Special Use Permit is located at 15225 E. Fountain Hills Blvd (see attached location map). The Town requires we notify all property owners in the area for both the re-zoning request and then the special use permit request . Owner is requesting a zoning change and special use permit for an existing tenant to allow them to have their golf carts displayed in the parking lot during business hours under the permitted uses of the C2 with special use permit to display vehicles outside, new and used golf carts, sales and rental including indoor and/or outside display area, provided all sales and repair activities are conducted within a building. Tenant is requesting to use only a few spaces for display of golf carts during business hours and or under the awning away from egress points. Action Plan: To provide effective citizen participation in conjunction with this application, the following actions will be taken to provide opportunities to understand and address any real or perceived impacts of the development that members of the community may have. 1. A contact list will be developed for citizens and HOA’s within 300’ of the project location. 2. All persons listed on the contact list will receive a letter describing the project, project schedule, site plan and invitation to a neighborhood meeting to be held at Fountain Hills Golf Carts and via Zoom (see details below)  The meeting will be an introduction to the project, and an opportunity to ask questions and state concerns. A sign-in list will be used, and comment forms provided. Copies of the sign-in list and any comments will be submitted with the Citizen Participation Report.  If a second meeting is required, details will be sent to all parties and will be provided to the Town with the Citizen Participation Report. 3. Presentations will be made to groups of citizens or neighborhood associations upon request. Copies of the sign-in list and any comments will be submitted with the Citizen Participation Report. 4. An email will be sent to the case planner following each of the scheduled meetings, and at any other time there is significant input to inform the staff of the progress of implementing the plan. Schedule: Mail flyers by 9/6/24 Neighborhood meeting 9/15/24 – 3PM at FH Golf Carts Paula Richards is inviting you to a scheduled Zoom meeting. Topic: FH Golf Cart rezoning Time: Sept 15, 2024 03:00 PM Arizona Join Zoom Meeting: Invite Link Invite Link Join Zoom Meeting https://us05web.zoom.us/j/82655372441?pwd=0L8anpah00vadYop6sMZl7aUgctblL.1 Meeting ID: 826 5537 2441 Passcode: 6dAGCj ITEM 10. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  HOLD A PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Amending Zoning Ordinance Section 2.07 Appeals and Variances.  Staff Summary (Background) Staff is conducting a complete update to Chapter 2, Procedures, of the Zoning Ordinance.  This update is being done one section at a time.  Staff started with, and Council has approved, updates to Section 2.01, Amendments or Zone Changes, Section 2.02, Special Use Permits, and Section 2.03, Temporary Use Permits, and Section 2.04, Site Plans.  Sections 2.05, Violations and Enforcement, 2.06, Planned Unit Developments, and 2.08, Citizen Participation are not being updated.  The last section for review and update is Section 2.07, Appeals and Variances. Section 2.07 addresses appeals to the Board of Adjustment of staff decisions, appeals from decisions by the Board of Adjustment to Superior Court, and requests for variances from the requirements of the Zoning Ordinance.  Some of the recommended changes are for consistency with the other sections of this chapter and some are to clarify the requirements for consideration of a particular type of application.  State statutes place specific parameters on the consideration of variance requests.  In practice, the Town receives very few of these types of applications.  In the last five years there have been no appeals and six variance applications. The proposed changes to this section of the Zoning Ordinance are as follows. Existing: A. Appeals to the Board of Adjustment Proposed: A. Purpose.  The current ordinance does not have a purpose statement like the other sections.  Stating the purpose of the types of requests that can be made under this section helps users better understand and apply the ordinance to their situation. Existing: B. Variance Proposed: B. Appeals to the Board of Adjustment The changes being made in this section are mostly to create consistency with the application process contained in the other sections of Chapter 2. process contained in the other sections of Chapter 2. 1. Application.  This follows the other sections establishing the electronic submittal, project narrative and filing fee requirements.  It maintains the requirement file an appeal within 15 days of the action taken by the Town that they are requesting to appeal.  When this type of appeal does occur, what typically happens is someone as requested an interpretation of how to apply a code provision.  The Zoning Administrator issues a formal, written statement of interpretation.  That starts the clock on the 15 day time period to appeal the decision or interpretation to the Board of Adjustment. 2. Stay.  There can be times when the decision of the Zoning Administrator would impact an ongoing project or action by the person making the appeal.  If an appeal is filed, that action halts any action with regard to the activity, unless stay would result in imminent peril for life or property. 3. Review.  This section of staff administrative review of the application is similar to the what has been included in the other sections of Chapter 2. 4. Notice.  The first sentence in this section was moved to 3., the rest remains the same. 5. Hearing. This section describes the hearing process for an appeal and uses existing ordinance language.  Existing: C. Appeals from the Board of Adjustment Proposed: C. Variance Most of the changes being made in this section are either adjustments to provide a consistent format with the other sections or re-organization of the existing language. 1. Purpose.  The language added to the Purpose statement is moved from what was 2.07 B 7.  The language removed is covered in other parts of this section.  Variances cannot be granted to change the terms of the zoning ordinance or to permitted uses in a zoning district. 2. Application. This language is new and follows the standard used in other sections.  The project narrative section includes specific information to be submitted to assist in evaluating the requested variance against the standards for approval. 3. Review.  This language is new and follows the standard used in other sections to determine if a complete application has been submitted. 4. Notice.  The first sentence is removed as unnecessary. 5. Hearing. The language in this section is mostly relocated from other portions of the existing ordinance.  The hearing at Board of Adjustment meetings is similar to other council and commission hearings in that anyone who wishes to speak may do so.  There is a difference, however, in that the Board of Adjustment is a quasi-judicial body, so the discussions and material (evidence) presented are more formal. 6. Findings.  As opposed to the Planning and Zoning Commission that makes recommendations to the Town Council, the Board of Adjustment is a quasi-judicial body that makes decisions regarding the granting of a variance.  If the applicant is not satisfied with the decision of the Board of Adjustment, the matter can be appealed to Superior Court, not to the Town Council.  Therefore, the findings the Board makes in reaching a decision are very important.  The required findings have their basis in ARS 9-462.06.  In the current ordinance the required findings are somewhat scattered in the text, and it is not clear if an applicant just has to meet one or all of the tests.  The revised language brings all the required findings into one place and, by using the "and" between each statement, clarifies that all the standards have to be met to grant the variance. 7. Action. The added language comes from another portion of the current ordinance. Existing 5-7, were moved to other portions of the revised ordinance.   Existing: D. Fees - moved to the application sections of B and C. Proposed: D. Appeals from the Board of Adjustment This is section C in the current ordinance.  No changes are proposed.   Related Ordinance, Policy or Guiding Principle Zoning Ordinance Section 2.07 Appeals and Variances Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission reviewed this proposed text amendment at their regular meeting on October 14, 2024.  Following the presentation and discussion, the Commission voted to recommend approval of the proposed amendment. Staff Recommendation(s) Staff recommends adoption of the revisions as provided. SUGGESTED MOTION MOVE to adopt Ordinance #24-20. Attachments Ordinance 24-20  Clean version of new Sec. 2.07  Existing Ordinance Section 2.07  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 10/22/2024 02:55 PM Town Attorney Aaron D. Arnson 10/23/2024 05:56 PM Town Manager Rachael Goodwin 10/31/2024 10:06 AM Development Services Director (Originator)John Wesley 10/31/2024 10:30 AM Form Started By: John Wesley Started On: 10/15/2024 04:04 PM Final Approval Date: 10/31/2024  ORDINANCE NO. 24-20 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS ZONING ORDINANCE SECTION 2.07, APPEALS AND VARIANCES ENACTMENTS: NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That Section 2.07, Appeals and Variances, of the Fountain Hills Zoning Ordinance is amended as provided in Exhibit A attached hereto. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 19th day of November, 2024. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Angela Padgett-Espiritu, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney ORDINANCE 24-20 PAGE 2 Exhibit A Section 2.07 Appeals and Variances A. PURPOSE. APPEALS OF DECISIONS BY AN ADMINISTRATIVE OFFICER OF THE TOWN IN THE APPLICATION OF THIS ORDINANCE MAY BE FILED BY THE APPLICANT, BY THE OWNER OF PROPERTY, OR BY ANY OTHER PERSON AGGRIEVED BY A DECISION UNDER THE PROVISIONS OF THIS ORDINANCE AND WHO HAS STANDING TO APPEAL PURSUANT TO STATE LAW. VARIANCES ARE AUTHORIZED AS SET FORTH IN ARIZONA REVISED STATUTES A.R.S. § 9-462.06 AND AS SET FORTH IN THIS ORDINANCE. B. Appeals to the Board of Adjustment:. THE BOARD OF ADJUSTMENT MAY HEAR APPEALS MADE BY ANY PERSON WHO IS AGGRIEVED BY THE ZONING ADMINISTRATOR'S INTERPRETATION OR ADMINISTRATION OF THIS ORDINANCE. 1. The Board of Adjustment may hear appeals made by any person who is aggrieved by the Zoning Administrator's interpretation or administration of this sectionAPPLICATION. 2A. COMPLETE APPLICATION. Board aAppeals shall be filed ELECTRONICALLY ON THE TOWN’S WEBSITE with the Zoning Administrator on forms furnished for that purposeUSING THE PROCESS ESTABLISHED BY THE DIRECTOR FOR SUCH APPLICATIONS within fifteen (15) days after the action appealed from,. B. THE APPLICATION shall INCLUDE A NARRATIVE STATEMENT specifyING the REQUESTED APPEAL AND THE grounds therefore,. The Zoning Administrator shall forthwith transmit to the Board all papers constituting the record upon which the appealed action is taken. C. FILING FEE. THE APPLICATION SHALL BE ACCOMPANIED BY PAYMENT OF A FILING FEE IN AN AMOUNT ESTABLISHED BY A SCHEDULE ADOPTED BY RESOLUTION OF THE COUNCIL AND FILED IN THE OFFICES OF THE TOWN CLERK. NO PART OF THE FILING FEE SHALL BE RETURNABLE. PAYMENT OF THE FILING FEE MAY BE WAIVED WHEN THE PETITIONER IS THE TOWN, SCHOOL DISTRICT, SPECIAL PURPOSE DISTRICT, COUNTY, STATE OR FEDERAL GOVERNMENT. 32. STAY OF PROCEEDINGS. The appeal stays all proceedings in the matter appealed from, unless the Zoning Administrator certifies to the Board that, by reason of the facts ORDINANCE 24-20 PAGE 3 stated in the certificate, a stay would, in his opinion, cause imminent peril to life or property. In such case, proceedings shall not be stayed, except by a restraining order granted by the Board, on application and notice to the Zoning Administrator, or by a court of record. 3. REVIEW. A. DETERMINATION OF COMPLETE APPLICATION. BEFORE INITIATING REVIEW, THE DEVELOPMENT SERVICES DIRECTOR, OR DESIGNEE, SHALL REVIEW THE SUBMITTAL TO DETERMINE IF IT IS COMPLETE AND MEETS THE REQUIREMENTS OF THIS SECTION. APPLICANTS WILL BE NOTIFIED OF MISSING OR INCOMPLETE APPLICATION ITEMS. ONCE AN APPLICATION HAS BEEN DETERMINED TO BE COMPLETE, THE APPLICANT WILL BE NOTIFIED TO PAY THE APPLICATION FEE. WHEN THE FEE HAS BEEN RECEIVED, STAFF WILL BEGIN REVIEW OF THE APPLICATION. B. STAFF REVIEW. STAFF WILL CONDUCT A REVIEW AND ANALYSIS OF THE APPEAL AND WILL SEEK ADDITIONAL INFORMATION AND CLARIFICATION FROM THE APPLICANT AS NECESSARY TO PREPARE THE APPEAL FOR CONSIDERATION BY THE BOARD. STAFF WILL INFORM THE APPLICANT OF ANY REVISIONS NEEDED TO BRING THE APPLICATION INTO COMPLIANCE WITH TOWN REQUIREMENTS. C. FOLLOWING NOTICE REQUIREMENTS, THE APPEAL WILL BE SCHEDULED FOR HEARING BY THE BOARD OF ADJUSTMENT AT THEIR NEXT AVAILABLE MEETING. 4. NOTICE. NOTICE OF THE HEARING SHALL BE MADE BY PUBLISHING A NOTICE THEREOF IN THE OFFICIAL NEWSPAPER OF THE TOWN AND, IF APPLICABLE, BY POSTING THE PROPERTY AFFECTED NOT LESS THAN FIFTEEN (15) DAYS PRIOR TO THE HEARING. THE NOTICE SHALL SET FORTH THE TIME AND PLACE OF THE HEARING AND INCLUDE A GENERAL EXPLANATION OF THE MATTER TO BE CONSIDERED. 45. HEARING. The Board shall hear the appeal at the next regularly scheduled meeting after the required advertising requirements have been fulfilled. Notice of the hearing shall be made by publishing a notice thereof in the official newspaper of the Town and by posting the property affected not less than fifteen (15) days prior to the hearing. The notice shall set forth the time and place of the hearing and include a general explanation of the matter to be considered. ORDINANCE 24-20 PAGE 4 A. THE DEVELOPMENT SERVICES DIRECTOR SHALL FIX A REASONABLE TIME FOR THE HEARING OF THE APPEAL AND SHALL GIVE NOTICE IN ACCORDANCE WITH SECTION 2.07 B. 4. HEREIN. B. ANY PARTY MAY APPEAR AT THE HEARING IN PERSON OR BY AGENT OR ATTORNEY. PARTIES SHALL HAVE THE RIGHT TO PRESENT THEIR CASE BY ORAL OR DOCUMENTARY EVIDENCE, TO SUBMIT REBUTTAL EVIDENCE, AND TO CONDUCT SUCH INQUIRY OF FACTS OF OPPOSING PARTIES THROUGH THE CHAIRPERSON. THE CHAIRPERSON MAY LIMIT OR PREVENT QUESTIONS OR INQUIRIES THAT ARE IRRELEVANT OR INAPPROPRIATE. THE BOARD SHALL, AS A MATTER OF POLICY, PROVIDE FOR THE EXCLUSION OF IRRELEVANT, IMMATERIAL, OR UNDULY REPETITIOUS EVIDENCE AND IN FURTHERANCE OF THIS POLICY MAY LIMIT CROSS- EXAMINATION. 5C. The Board may reverse or affirm, wholly or partly, or modify the order, requirement or decision of the Zoning Administrator or other staff members, appealed from and make such order, requirement, decision or determination, as it may deem necessary. 6. Any party may appear at the hearing in person or by agent or attorney. Parties shall have the right to present their case by oral or documentary evidence, to submit rebuttal evidence, and to conduct such inquiry of facts of opposing parties through the Chairman. The Chairman may limit or prevent questions or inquiries that are irrelevant or inappropriate. The Board shall, as a matter of policy, provide for the exclusion of irrelevant, immaterial or unduly repetitious evidence and in furtherance of this policy may limit cross-examination. BC. Variance: 1. PURPOSE. Any aggrieved person may appealAPPLY to the Board of Adjustment for a variance from the terms of the Zoning Ordinance if, because of special circumstances applicable to the property, including its size, shape, topography, location, or surroundings, the strict application of the Zoning Ordinance will deprive such property owner of privileges enjoyed by owners of other property of the same classification in the same Zoning District. NOTHING HEREIN CONTAINED SHALL BE CONSTRUED TO EMPOWER THE BOARD TO CHANGE THE TERMS OF THIS ORDINANCE, TO AUTHORIZE USES WHICH VIOLATE ANY OTHER TOWN ORDINANCE, TO AFFECT CHANGES IN THE ZONING MAP, OR TO ADD TO ORDINANCE 24-20 PAGE 5 OR CHANGE THE USES PERMITTED IN ANY ZONING DISTRICT. Any variance granted shall be made subject to such conditions as will assure that the adjustment authority shall not constitute a granting of special privileges inconsistent with the limitations upon other properties in the zone in which such property is located. 2. APPLICATION. A. APPLICATION. APPLICATIONS FOR A VARIANCE SHALL BE FILED ELECTRONICALLY ON THE TOWN’S WEBSITE BY AN OWNER OF REAL PROPERTY IMPACTED BY THE APPLICATION OF THE ZONING ORDINANCE USING THE PROCESS ESTABLISHED BY THE DIRECTOR FOR SUCH APPLICATIONS. ALL SUCH APPLICATIONS SHALL INCLUDE THE INFORMATION REQUIRED IN THIS SECTION. B. PROJECT NARRATIVE. A WRITTEN STATEMENT WHICH INCLUDES: I. A NARRATIVE DESCRIBING: 1. THE EXISTING AND PROPOSED USE OF THE PROPERTY; 2. THE ZONING ORDINANCE PROVISION THAT PROHIBITS THE DESIRED DEVELOPMENT; 3. THE HARDSHIPS THAT WILL OCCUR IF A VARIANCE IS NOT GRANTED; AND 4. THE RELIEF SOUGHT BY THE VARIANCE. II. A MAP OR OTHER ILLUSTRATION OR DOCUMENTATION SHOWING THE NATURE OF THE PROPERTY, THE PROPOSED DEVELOPMENT AND/OR OTHER CONDITIONS JUSTIFYING THE VARIANCE REQUEST. C. A LIST OF NAMES AND ADDRESSES FOR ALL PROPERTY OWNERS WITHIN THREE HUNDRED (300) FEET OF THE EXTERIOR BOUNDARIES OF THE PROPERTY FOR WHICH AN APPLICATION IS MADE. D. FILING FEE. THE APPLICATION SHALL BE ACCOMPANIED BY PAYMENT OF A FILING FEE IN AN AMOUNT ESTABLISHED BY A SCHEDULE ADOPTED BY RESOLUTION OF THE COUNCIL AND FILED IN THE OFFICES OF THE TOWN CLERK. NO PART OF THE FILING FEE SHALL BE RETURNABLE. PAYMENT OF FILING FEE SHALL BE ORDINANCE 24-20 PAGE 6 WAIVED WHEN THE CHANGE IS INITIATED BY THE COUNCIL OR THE COMMISSION OR WHEN THE APPLICANT IS THE TOWN, SCHOOL DISTRICT, SPECIAL PURPOSE DISTRICT, COUNTY, STATE OR FEDERAL GOVERNMENT. 3. REVIEW. A. DETERMINATION OF COMPLETE APPLICATION. BEFORE INITIATING REVIEW, THE DEVELOPMENT SERVICES DIRECTOR, OR DESIGNEE, SHALL REVIEW THE SUBMITTAL TO DETERMINE IF IT IS COMPLETE AND MEETS THE REQUIREMENTS OF THIS SECTION. APPLICANTS WILL BE NOTIFIED OF MISSING OR INCOMPLETE APPLICATION ITEMS. ONCE AN APPLICATION HAS BEEN DETERMINED TO BE COMPLETE THE APPLICANT WILL BE NOTIFIED TO PAY THE APPLICATION FEE. WHEN THE FEE HAS BEEN RECEIVED, STAFF WILL BEGIN REVIEW OF THE APPLICATION. B. STAFF REVIEW. STAFF WILL CONDUCT A REVIEW AND ANALYSIS OF THE PROPOSED VARIANCE AND DEVELOPMENT AND WILL SEEK ADDITIONAL INFORMATION AND CLARIFICATION FROM THE APPLICANT AS NECESSARY TO PREPARE A REPORT AND RECOMMENDATION TO THE BOARD OF ADJUSTMENT. C. FOLLOWING NOTICE REQUIREMENTS, THE VARIANCE WILL BE SCHEDULED FOR HEARING BY THE BOARD OF ADJUSTMENT. 4. NOTICE. The Board shall hear the appeal at the next regularly scheduled meeting after the required advertising requirements have been fulfilled.Notice of the hearing shall be made by publishing a notice thereof in the official newspaper of the Town and by posting the property affected not less than fifteen (15) days prior to the hearing. The notice shall set forth the time and place of the hearing and include a general explanation of the matter to be considered. 5. HEARING. A. THE DEVELOPMENT SERVICES DIRECTOR SHALL FIX A REASONABLE TIME FOR THE HEARING OF THE VARIANCE AND SHALL GIVE NOTICE IN ACCORDANCE WITH SECTION 2.07 C. 4 HEREIN. B. ANY PARTY MAY APPEAR AT THE HEARING IN PERSON OR BY AGENT OR ATTORNEY. PARTIES SHALL HAVE THE RIGHT TO PRESENT THEIR CASE BY ORAL OR ORDINANCE 24-20 PAGE 7 DOCUMENTARY EVIDENCE, TO SUBMIT REBUTTAL EVIDENCE, AND TO CONDUCT SUCH INQUIRY OF FACTS OF OPPOSING PARTIES THROUGH THE CHAIRPERSON. THE CHAIRPERSON MAY LIMIT OR PREVENT QUESTIONS OR INQUIRIES THAT ARE IRRELEVANT OR INAPPROPRIATE. THE BOARD SHALL, AS A MATTER OF POLICY, PROVIDE FOR THE EXCLUSION OF IRRELEVANT, IMMATERIAL OR UNDULY REPETITIOUS EVIDENCE AND IN FURTHERANCE OF THIS POLICY MAY LIMIT CROSS- EXAMINATION. 6. FINDINGS. A, A VARIANCE SHALL NOT BE GRANTED UNLESS THE BOARD FINDS SUFFICIENT EVIDENCE TO MAKE A DETERMINATION THAT: I. THERE ARE SPECIAL CIRCUMSTANCES APPLICABLE TO THE PROPERTY, INCLUDING ITS SIZE, SHAPE, TOPOGRAPHY, LOCATION, OR SURROUNDINGS; AND II. SUCH SPECIAL CIRCUMSTANCES ARE PRE-EXISTING AND NOT CREATED BY THE PROPERTY OWNER OR APPELLANT; AND III. THE STRICT APPLICATION OF THE ZONING ORDINANCE WILL DEPRIVE SUCH PROPERTY OF PRIVILEGES ENJOYED BY OTHER PROPERTY OF THE SAME CLASSIFICATION IN THE SAME ZONING DISTRICT; AND IV. ANY VARIANCE GRANTED WILL ASSURE THAT THE ADJUSTMENT AUTHORIZED SHALL NOT CONSTITUTE A GRANT OF SPECIAL PRIVILEGES INCONSISTENT WITH THE LIMITATIONS UPON OTHER PROPERTIES IN THE VICINITY AND ZONE IN WHICH SUCH PROPERTY IS LOCATED. B, NO NONCONFORMING USE OR VIOLATIONS OF THIS ORDINANCE WITH RESPECT TO NEIGHBORING LANDS, STRUCTURES, OR BUILDINGS IN THE SAME ZONING DISTRICT, AND NO PERMITTED USE OF LANDS, STRUCTURES OR BUILDINGS IN OTHER ZONING DISTRICTS SHALL BE CONSIDERED GROUNDS FOR GRANTING A VARIANCE. 47. ACTION. In granting a variance, the Board shallMAY impose such conditions and safeguards as are appropriate to ensure that the purpose and intent of this section remain intact. EVERY VARIANCE SHALL BE PERSONAL TO THE APPLICANT THEREFORE AND ORDINANCE 24-20 PAGE 8 SHALL BE TRANSFERABLE AND SHALL RUN WITH THE LAND ONLY AFTER COMPLETION OF ANY STRUCTURE OR STRUCTURES AUTHORIZED THEREBY. 5. No nonconforming use or violations of this section with respect to neighboring lands, structures, or buildings in the same zoning district, and no permitted use of lands, structures or buildings in other zoning districts shall be considered grounds for granting a variance. 6. Every variance shall be personal to the applicant therefore and shall be transferable and shall run with the land only after completion of any structure or structures authorized thereby. 7. Nothing herein contained shall be construed to empower the Board to change the terms of this section, to authorize uses which violate any other Town ordinance, to affect changes in the zoning map, or to add to or change the uses permitted in any Zoning District. CD. Appeals from the Board: The decision of the Board shall be final, provided, however, that any person aggrieved by a decision of the Board may, at any time within thirty (30) days after the filing of the decision in the office of the Development Services Director, file a special action in the nature of certiorari with the Arizona Superior Court in and for Maricopa County for review of the Board's decision. Allowance of the writ shall not stay proceedings upon the decision appealed from, unless the court shall grant a restraining order. If a special action is brought for review of a matter in which the Board held a hearing which was not stenographically or electronically recorded, then upon request of any party to the special action or the court, the Board shall forthwith arrange a hearing in accordance with the public hearing and posting requirements for a variance for the purpose of causing a stenographic or electronic record to be made of the evidence presented by the parties. If evidence is presented at this hearing, which is new, or different from that originally presented the same shall be noted in the record by the Board Chairman. D. Fees: 1. Upon filing an application for appeal, the appellant shall pay a filing fee in the amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. The filing fee may be waived when the petitioner is the Town, County, State, or Federal Government. ORDINANCE 24-20 PAGE 9 2. In the case of an appeal for a variance to more than one provision of this section, the filing fee shall equal the total amount chargeable for all provisions as prescribed by the fee schedule. 2.07, Appeals and Variances Page 1 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… Section 2.07 Appeals and Variances A. Purpose. Appeals of decisions by an administrative officer of the Town in the application of this ordinance may be filed by the applicant, by the owner of property, or by any other person aggrieved by a decision under the provisions of this Ordinance. Variances are authorized as set forth in Arizona Revised Statutes A.R.S. § 9-462.06 and as set forth in this Ordinance. B. Appeals to the Board of Adjustment The Board of Adjustment may hear appeals made by any person who is aggrieved by the Zoning Administrator's interpretation or administration of this ordinance. 1. Application. a. Complete Application.Appeals shall be filed electronically on the Town’s website using the process established by the director for such applications within fifteen (15) days after the action appealed from. b. The application shall include a narrative statement specifying the requested appeal and the grounds therefore. c. Filing Fee. The application shall be accompanied by payment of a filing fee in an amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be returnable. Payment of the filing fee may be waived when the petitioner is the Town, County, State or Federal Government. 2. Stay of Proceedings. The appeal stays all proceedings in the matter appealed from, unless the Zoning Administrator certifies to the Board that, by reason of the facts stated in the certificate, a stay would, in his opinion, cause imminent peril to life or property. In such case, proceedings shall not be stayed, except by a restraining order granted by the Board, on application and notice to the Zoning Administrator, or by a court of record. 3. Review. a. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall review the submittal to determine if it 2.07, Appeals and Variances Page 2 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… is complete and meets the requirements of this section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete, the applicant will be notified to pay the application fee. When the fee has been received, staff will begin review of the application. b. Staff review. Staff will conduct a review and analysis of the appeal and will seek additional information and clarification from the applicant as necessary to prepare the appeal for consideration by the Board. Staff will inform the applicant of any revisions needed to bring the application into compliance with Town requirements. c. Following notice requirements, the appeal will be scheduled for hearing by the Board of Adjustment at their next available meeting. 4. Notice. Notice of the hearing shall be made by publishing a notice thereof in the official newspaper of the Town and, if applicable, by posting the property affected not less than fifteen (15) days prior to the hearing. The notice shall set forth the time and place of the hearing and include a general explanation of the matter to be considered. 5. Hearing. a. The Development Services Director shall fix a reasonable time for the hearing of the appeal and shall give notice in accordance with Section 2.07 B. 4. herein. b. Any party may appear at the hearing in person or by agent or attorney. Parties shall have the right to present their case by oral or documentary evidence, to submit rebuttal evidence, and to conduct such inquiry of facts of opposing parties through the Chairman. The Chairman may limit or prevent questions or inquiries that are irrelevant or inappropriate. The Board shall, as a matter of policy, provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence and in furtherance of this policy may limit cross-examination. c. The Board may reverse or affirm, wholly or partly, or modify the order, requirement or decision of the Zoning Administrator or other staff members, appealed from and make such order, requirement, decision or determination, as it may deem necessary. C. Variance: 2.07, Appeals and Variances Page 3 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… 1. Purpose. Any aggrieved person may apply to the Board of Adjustment for a variance from the terms of the Zoning Ordinance if, because of special circumstances applicable to the property, including its size, shape, topography, location, or surroundings, the strict application of the Zoning Ordinance will deprive such property owner of privileges enjoyed by owners of other property of the same classification in the same Zoning District. Nothing herein contained shall be construed to empower the Board to change the terms of this ordinance, to authorize uses which violate any other Town ordinance, to affect changes in the zoning map, or to add to or change the uses permitted in any Zoning District. 2. Application. a. Application. Applications for a variance shall be filed electronically on the Town’s website an owner of real property impacted by the application of the zoning ordinance using the process established by the Director for such applications. All such applications shall include the information required in this section. b. Project Narrative. A written statement which includes: i. A narrative describing: 1. The existing and proposed use of the property; 2. The zoning ordinance provision that prohibits the desired development; 3. The hardships that will occur if a variance is not granted; and 4. The relief sought by the variance. ii. A map or other illustration or documentation showing the nature of the property, the proposed development and/or other conditions justifying the variance request. c. A list of names and addresses for all property owners within three hundred (300) feet of the exterior boundaries of the property for which an application is made. d. Filing Fee. The application shall be accompanied by payment of a filing fee in an amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be returnable. Payment of 2.07, Appeals and Variances Page 4 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… filing fee shall be waived when the change is initiated by the Council or the Commission or when the applicant is the Town, school district, special purpose district, county, state or federal government. 3. Review. a. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall review the submittal to determine if it is complete and meets the requirements of this Section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete the applicant will be notified to pay the application fee. When the fee has been received, staff will begin review of the application. b. Staff review. Staff will conduct a review and analysis of the proposed variance and development and will seek additional information and clarification from the applicant as necessary to prepare a report and recommendation to the Board of Adjustment. c. Following notice requirements, the variance will be scheduled for hearing by the Board of Adjustment. 4. Notice. Notice of the hearing shall be made by publishing a notice thereof in the official newspaper of the Town and by posting the property affected not less than fifteen (15) days prior to the hearing. The notice shall set forth the time and place of the hearing and include a general explanation of the matter to be considered. 5. Hearing. a. The Development Services Director shall fix a reasonable time for the hearing of the variance and shall give notice in accordance with Section 2.07 C. 4 herein. b. Any party may appear at the hearing in person or by agent or attorney. Parties shall have the right to present their case by oral or documentary evidence, to submit rebuttal evidence, and to conduct such inquiry of facts of opposing parties through the Chairman. The Chairman may limit or prevent questions or inquiries that are irrelevant or inappropriate. The Board shall, as a matter of policy, provide for the exclusion of irrelevant, immaterial or unduly repetitious evidence and in furtherance of this policy may limit cross-examination. 2.07, Appeals and Variances Page 5 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… 6. Findings. a, A variance shall not be granted unless the Board finds sufficient evidence to make a determination that: i. There are special circumstances applicable to the property, including its size, shape, topography, location, or surroundings; and ii. Such special circumstances are pre-existing and not created by the property owner or appellant; and iii. The strict application of the Zoning Ordinance will deprive such property of privileges enjoyed by other property of the same classification in the same zoning district; and iv. Any variance granted will assure that the adjustment authorized shall not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which such property is located. b, No nonconforming use or violations of this ordinance with respect to neighboring lands, structures, or buildings in the same zoning district, and no permitted use of lands, structures or buildings in other zoning districts shall be considered grounds for granting a variance. 7. Action. In granting a variance, the Board may impose such conditions and safeguards as are appropriate to ensure that the purpose and intent of this section remain intact. Every variance shall be personal to the applicant therefore and shall be transferable and shall run with the land only after completion of any structure or structures authorized thereby. D. Appeals from the Board: The decision of the Board shall be final, provided, however, that any person aggrieved by a decision of the Board may, at any time within thirty (30) days after the filing of the decision in the office of the Development Services Director, file a special action in the nature of certiorari with the Arizona Superior Court in and for Maricopa County for review of the Board's decision. Allowance of the writ shall not stay proceedings upon the decision appealed from, unless the court shall grant a restraining order. If a special action is brought for review of a matter in which the Board held a hearing which was not stenographically or electronically recorded, then upon request of any party to the special action 2.07, Appeals and Variances Page 6 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-06, and legislation passed thro… or the court, the Board shall forthwith arrange a hearing in accordance with the public hearing and posting requirements for a variance for the purpose of causing a stenographic or electronic record to be made of the evidence presented by the parties. If evidence is presented at this hearing, which is new, or different from that originally presented the same shall be noted in the record by the Board Chairman. Section 2.04 Site Plan Review Regulations A. Purpose and Applicability. 1. Purpose. The purpose of these Site Plan review regulations is to provide for administrative review and approval of Site Plans and review for compliance with the architectural guidelines in Chapter 19 of the Zoning Ordinance prior to submitting for building construction plan review. This review process helps address any potential development issues early in the development process and ensure that the proposed building can be located on the lot in conformance with the intent and provisions of the General Plan, this Zoning Ordinance and all other relevant Town ordinances and polices. These Site Plan review regulations also provide for a two- step appeal of the Site Plan review administrative decision first to the Planning and Zoning Commission and second to the Town Council. 2. Applicability. All nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments shall receive Site Plan approval prior to submission of construction plans related to a development, redevelopment, or expansion of existing development. B. Application. 1. Complete Application. Applications for Site Plan review shall be filed electronically on the Town’s website by an owner of the real property within the area proposed for the Site Plan review using the process established by the Director for such applications. All such applications shall include the information required in this section. 2. Project Narrative. A written statement which includes: a. A narrative describing the existing zoning, desired use of the property, and reasons justifying the proposed Site Plan. b. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property and the date or dates (if any) of expiration thereof. If the applicant is not the current owner, or has owned the property for less than one year, this statement should also include any real estate disclosures associated with the purchase of the property. 3. A fully dimensioned, detailed Site Plan drawn to scale, prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which shows the following: a. Legal description, property dimensions and heading, along with the name, address and telephone number of the owner, developer and designer. b. A generalized location map showing surrounding land use, zoning, and traffic circulation patterns within a 300-foot radius of the property, measured in all directions from the perimeter of the property lines. A north arrow and scale shall be provided. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 1 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. c. Site conditions information, including: i. A topographic survey extending at least 100 feet beyond the exterior property line of the site. Contour interval shall not exceed two feet within 20 feet of any proposed improvement and five- foot intervals for the remainder of the lot or parcel. ii. Location and extent of major vegetative cover (if any). All Saguaro cacti over three feet in height must be identified as well as significant vegetation and rock outcroppings as defined in Article 1 of the Subdivision Ordinance. iii. Location and extent of intermittent streams and water ponding areas. iv. Existing drainage, including arrows showing direction of flow. Show any areas of ponding. v. Natural features such as mesas, rock outcroppings, or streams and manmade features such as existing roads and structures, with indication as to which are to be retained and which are to be removed or altered. vi. A slope analysis map with categories of less than 10 percent, 10 to 20 percent, 20 to 30 percent and 30 percent and above. Identify hillside disturbance areas and Hillside Protection Easement (H.P.E.) areas with areas of each totaled in a table. Demonstrate compliance with the hillside disturbance regulation of the Town’s Subdivision Ordinance, Section 5.04, or specifically identify variations from these requirements. d. Proposed land use areas and specifications, including use standards of each area, as applicable: i. Proposed dwelling unit type, total land area and maximum density of residential use areas. ii. Proposed uses, total land area and maximum lot coverage. List the individual square footage of all nonresidential buildings and disturbance areas. iii. Proposed public streetscape and public and private open space improvements and their relationship to the overall development. iv. Building heights, minimum lot areas and setbacks. Show the size and dimensions of yards and spaces between buildings and show the location, type and height of walls and fences. v. Building elevations and architectural renderings showing architectural theme colors and type of exterior building materials for each structure or group of structures; include all sides in both black and white and color (see Chapter 19 for Architectural Review Guidelines). vi. A graphic representation of the proposed landscaping treatment, plant materials, fences, walls and other Site Plan and open space improvements, in accordance with the Subdivision Ordinance, Article 6. vii. Proposed location and width of any arterial, collector or local streets. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 2 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. viii. Proposed location and use of all lands proposed to be dedicated for public purposes including parks, storm water retention areas and school sites. ix. If structures are proposed, show cross-sections through site and building at 25-foot intervals perpendicular to slope, giving percentage of slope at each, and showing exact heights of structures at each existing contour. x. If structures are proposed, each floor level shall be shown with different shading with a legend giving grade or elevation of each level. xi. If a garage(s) is proposed, the proposed elevation or grade at garage floor and at existing street level at drive entry. Give percentage of total average slope, and percent and length of single steepest portion of driveway. xii. The individual square footage of buildings, garages, patios, footprint, and disturbance area. xiii. All disturbed (or graded) areas and the proposed method of final treatment. Indicate all retaining walls, showing the actual heights. xiv. Existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel and show that the requirements regarding storm water runoff and drainage have been met. xv. Location, number of spaces, dimensions, circulation patterns, and surface materials for all off-street parking and loading areas, driveways, access ways, and pedestrian walkways. Show compliance with all parking lot landscape requirements (see Chapter 7, Parking and Loading Requirements). The acceptability of any proposed shared parking arrangement must be validated in a study prepared by an independent traffic expert approved by the Town and whose services are paid for by the applicant. xvi. The location, dimensions, area, materials, and lighting of signage. xvii. A lighting plan in conformance with Chapter 8 of this Zoning Ordinance; include a photometric plan showing foot candles of lighting in all parking lots. xviii. Street dedications and improvements. xix. The size and locations of all existing and proposed public and private utilities. All easements must be shown and given in writing. xx. A phasing plan, if the project will be completed in phases, indicating which improvements will be completed in each phase. xxi. A traffic analysis, unless waived by the Development Services Director. e. If the site contains unique features requiring additional analysis, any other information the plan reviewer reasonably determines to be necessary to establish compliance with this Zoning Ordinance. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 3 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. 4. Fee. Payment of a filing fee established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be refundable. Payment of the filing fee shall be waived when the applicant is the Town, school district, special purpose district, county, state, or federal government. C. Review and Approval. 1. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall evaluate the submittal to determine if it is complete and meets the requirements of this section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete the applicant will be notified to pay the application fee. When the fee has been received, staff will begin review of the application. 2. Staff Review. Staff will conduct review and analysis of the Site Plan and will seek additional information and clarification from the applicant as necessary to take action on the application. Staff will inform the applicant of any revisions needed to bring the Site Plan into compliance with Town requirements. 3. The action of the staff shall be one of approval when the applicant submits a Site Plan which conforms to all applicable regulations and the conditions placed upon the Site Plan by the staff. Approval shall be documented by staff stamping the final Site Plan “approved.” D. Appeals. The application for an appeal of an Administrative Site Plan review decision shall be made within 30 days of said decision and shall be accompanied by a filing fee in an amount established by the Town Council as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, the federal government or a county, state, school district, or sanitary district. 1. Any applicant for administrative Site Plan approval who is dissatisfied or aggrieved by the decision of the Planning and Zoning Division may, within 30 days, appeal the decision to the Planning and Zoning Commission. The Planning and Zoning Commission may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. 2. Any applicant who is dissatisfied or aggrieved by the appeal decision of the Planning and Zoning Commission may, within 30 days, appeal their decision to the Town Council. The Town Council may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. E. Expiration of Site Plan Approval. 1. A Site Plan approval becomes void if a building permit has not been issued within one year from the date of the approval. 2. If the applicant files for an extension prior to the Site Plan approval becoming void, an extension may be granted by the Planning and Zoning Division. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 4 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. F. Site Plan Amendments. Following approval of a Site Plan, modifications to the site or building must be approved through approval of a Site Plan amendment following the procedures above. Site plan amendment may be considered minor or major as defined below. The fee for a minor Site Plan amendment shall be one-quarter the current Site Plan review fee. The Zoning Administrator shall determine if a Site Plan modification is minor or major using the criteria below: 1. A modification shall be considered minor if the Zoning Administrator determines the modification involves: a. A change in landscape area or open space of less than 25 percent; or b. A change in the total building footprint that is less than 10 percent of the initially approved building footprint; or c. An increase in building height at any point that is less than 10 percent of the initially approved building height; or d. Minimal adjustments to: i. The building footprint, location, or orientation; ii. The pad location; iii. The configuration of a parking lot or drive aisles; iv. Project amenities such as, but not limited to, recreational facilities, pedestrian amenities, fencing or other screening material; v. Residential density; or vi. the approved phasing plan; e. Does not modify any specific conditions of approval for the original Site Plan. 2. A modification shall be considered major if it does not meet the requirements to be considered a minor Site Plan modification. G. Special Use Permits – Temporary Use Permits. If the Site Plan is proposed for a property or use that will require approval of a special use permit or temporary use permit, the special use permit or temporary use permit must be considered and acted upon prior to approval of the Site Plan. The applicant may choose to have the Site Plan processed concurrently with a special use permit and considered by the Planning and Zoning Commission and Town Council with the special use permit. (23-06, Amended, 05/16/2023, Deleted and replaced) Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 5 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Zoning Ordinance. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Hosted by General Code. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 6 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 24-10, passed June 18, 2024. ITEM 10. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 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 AND POSSIBLE ACTION: Approving Professional Services Agreement 2025-025 between the Town and Hazen and Sawyer, PC for Storm Water Support Services Staff Summary (Background)  The Town of Fountain Hills is committed to maintaining compliance with the Arizona Department of Environmental Quality's (ADEQ) General Permit for Municipal Separate Storm Sewer Systems (MS4). This permit outlines the Town’s responsibilities in managing stormwater discharges to protect water quality and reduce pollutants entering local water bodies. To ensure continued compliance with regulatory requirements, including annual reporting, inspections, and monitoring, the staff recommends awarding a professional services contract to an experienced environmental consulting firm. This firm will support the Town’s efforts to fulfill its obligations under the MS4 program and meet all state and federal mandates related to stormwater management. The Town issued Request for Proposals (RFP 2024-003) to identify qualified vendors to provide professional services to support the Town’s MS4 program. The Town received proposals from four vendors, listed below:  Civil and Environmental Consultants, Inc. Hazen and Sawyer Pinyon Environmental, Inc. WSP USA, Inc. An internal selection committee reviewed and evaluated the proposals based on several criteria, including experience, qualifications, key personnel, and management approach. After a thorough review, Hazen and Sawyer, P.C. scored the highest and is recommended for the award of the contract. Scope of Services Under the proposed contract, Hazen and Sawyer, P.C. will perform the following MS4-related tasks and services:  Wet and dry weather monitoring Collection and testing of outflow samples Inspection of municipal facilities and infrastructure Public education and outreach assistance Staff training Updates to the Town’s Storm Water Management Plan (SWMP) Additionally, Hazen and Sawyer, P.C. will prepare and maintain documentation for all related activities, including annual reporting to ADEQ. While Hazen and Sawyer, P.C. will handle these tasks, Town staff will continue to conduct initial inspections of construction sites for stormwater erosion control, review erosion control plans, and respond to violations. Town staff is also responsible for responding to residential and business violations, such as illegal pool water dumping or illicit discharge into stormwater systems. All documentation related to these activities will be managed by Town staff. The approved FY 25 Budget includes funding for environmental mandates such as this. As mentioned in the budget presentations, the environmental fund will be closed at the end of FY 25. For subsequent years, staff will submit a supplemental budget request to the Town Manager for mandated environmental such as this for approval. Exhibit B of the agreement (attached) provides a detailed breakdown of the vendor’s costs over a five-year period. The annual cost varies based on the different tasks required over the life of the contract:    Year Fiscal Year Fee Year 1 FY 24-25 $ 128,304 Year 2 FY 25-26 $   93,289 Year 3 FY 26-27 $ 146,537 Year 4 FY 27-28 $ 131,179 Year 5 FY 28-29 $ 107,821 5-Year Total $ 607,130 The total contract amount for the five-year period will not exceed $607,130, which includes a 10% owner's allowance. The proposed contract with Hazen and Sawyer, P.C. will provide the necessary professional support to ensure continued compliance with the MS4 permit and facilitate the Town’s stormwater management efforts. Staff recommends approval of the contract as outlined. Related Ordinance, Policy or Guiding Principle Adopted 2022 Environmental Plan, EPA/ADEQ Small Municipal Storm Sewer System Permit, (MS4) (AZG2021-002). Risk Analysis Failure to comply with state and federal requirements can result in legal action and/or fines against the Town of Fountain Hills. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Professional Services Agreement 2025-025 between the Town and Hazen and Sawyer, PC SUGGESTED MOTION MOVE to approve Professional Services Agreement 2025-025 between the Town and Hazen and Sawyer, PC Fiscal Impact Fiscal Impact:$ 128,304 -$ 607,130 Budget Reference:FY 25 Funding Source:Environmental Fund; future Supplement in Gen Fund If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:Yes Attachments PSA 2025-025  PSA Exhibit B  PSA Exhibit A  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 11/06/2024 08:22 AM Town Attorney Aaron D. Arnson 11/07/2024 09:13 AM Town Manager Rachael Goodwin 11/12/2024 09:04 AM Form Started By: Justin Weldy Started On: 10/07/2024 02:41 PM Final Approval Date: 11/12/2024  Contract No. 2025-025 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HAZEN AND SAWYER, P.C. THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into as of November 19, 2024, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Hazen and Sawyer, P.C., a New York professional corporation (the “Vendor”). RECITALS A. The Town issued a Request for Proposals, RFP No. 2024-003 (the “RFP”), a copy of which is on file with the Town and incorporated herein by reference, seeking proposals from vendors interested in providing professional services consisting of consulting for the Municipal Separate Storm Sewer System (MS4) program (the “Services”). B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”), attached hereto as Exhibit A and incorporated herein by reference. C. The Town desires to enter into an Agreement with the Vendor to perform the Services, as set forth below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Vendor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and attested to by the Town Clerk pursuant to Section 3-3-31 of the Town Code, and shall remain in full force and effect until June 30, 2025 (the “Initial Term”), unless terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this Agreement may be renewed for up four successive one-year terms (the “Renewal Term”) if (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town approves the additional one-year term in writing (including any price adjustments approved as part of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Vendor’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 Vendor, elect to waive this requirement and renew this Agreement. The Initial Term and the Renewal Term 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. This is an indefinite quantity and indefinite delivery Agreement for Services (attached hereto as Exhibit A [scope] and incorporated by this reference) as previously set forth herein. Services shall only be provided when the Town identifies a need and proper authorization and documentation have been approved. For project(s) determined by the Town to be appropriate for this Agreement, the Vendor shall provide the Services to the Town on an as- required basis relating to the specific Services as may be agreed upon between the parties in writing, in the form of a written acknowledgment between the parties describing the Services to be provided (each, a “Work Order”). Each Work Order issued for Services pursuant to this Agreement shall be (i) in the form provided and approved by the Town for the Services, (ii) contain a reference to this Agreement and (iii) be attached to hereto as Exhibit B and incorporated herein by reference. By signing this Agreement, Vendor acknowledges and agrees that Work Order(s) containing unauthorized exceptions, conditions, limitations, or provisions in conflict with the terms of this Agreement, other than Town's project-specific requirements, are hereby expressly declared void and shall be of no force and effect. The Town does not guarantee any minimum or maximum amount of Services will be requested under this Agreement. 3. Compensation. The Town shall pay the Vendor an aggregate amount not to exceed $607,130 (of which sum includes an owners’ allowance of 10% [$55,193]) at the rates set forth in the Task Order (and when authorized to proceed by Town personnel to proceed) attached hereto as Exhibit B, which is incorporated herein by reference. 4. Payments. The Town shall pay the Vendor monthly (and the Vendor shall invoice the Town monthly), based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. All invoices and statements shall be emailed to accountspayable@fountainhillsaz.gov. This Agreement must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Vendor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Vendor’s performance. The Vendor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Vendor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Vendor. The Town has no obligation to provide Vendor, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Vendor. 9. Performance Warranty. Vendor warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 10. Indemnification. To the fullest extent permitted by law, the Vendor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Vendor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Vendor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Vendor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. E. Primary Insurance. Vendor’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured; the Town’s insurance shall be non-contributory. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. G. Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Vendor. Vendor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Vendor shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Vendor shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Vendor will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Vendor’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Vendor’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Vendor under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Vendor shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. B. Vehicle Liability. Vendor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Vendor’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Vendor engages in any professional services or work in any way related to performing the work under this Agreement, the Vendor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Vendor, or anyone employed by the Vendor, or anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers’ Compensation Insurance. Vendor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Vendor’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Vendor of written notice by the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Vendor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent or representative of the Vendor to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Vendor an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Vendor fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Vendor acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Vendor do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Vendor. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Vendor without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision shall be a breach of this Agreement by Vendor. 13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Vendor is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Vendor. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Vendor from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Rachael Goodwin, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Vendor: Hazen and Sawyer, P.C. 140 E. Southern Ave., Suite 340 Tempe, Arizona 85282 Attn: Rebecca Sydnor, PE or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Vendor shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Vendor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Vendor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Vendor as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Vendor pursuant to this Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of intended audits. Vendor shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 13.20 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 13.21 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. 13.22 Cooperative Purchasing. Specific eligible political subdivisions and nonprofit educational or public health institutions (“Eligible Procurement Unit(s)”) are permitted to utilize procurement agreements developed by the Town, at their discretion and with the agreement of the awarded Consultant. Consultant may, at its sole discretion, accept orders from Eligible Procurement Unit(s) for the purchase of the Materials and/or Services at the prices and under the terms and conditions of this Agreement, in such quantities and configurations as may be agreed upon between the parties. All cooperative procurements under this Agreement shall be transacted solely between the requesting Eligible Procurement Unit and Consultant. Payment for such purchases will be the sole responsibility of the Eligible Procurement Unit. The exercise of any rights, responsibilities or remedies by the Eligible Procurement Unit shall be the exclusive obligation of such unit. The Town assumes no responsibility for payment, performance or any liability or obligation associated with any cooperative procurement under this Agreement. The Town shall not be responsible for any disputes arising out of transactions made by others. [SIGNATURES ON FOLLOWING PAGES] EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HAZEN AND SAWYER, P.C. [Work Order/Task Order] See following pages. Page 1 of 2 Hazen and Sawyer 1400 E. Southern Avenue, Suite 340 Tempe, AZ 85282 Justin Weldy Public Works Director 12705 E. Avenue of the Fountains Fountain Hills, AZ 85268 RE: RFP-2024-03 Municipal Separate Storm Sewer System (MS4) Program Dear Mr. Weldy, Thank you for the opportunity to support the Town of Fountain Hills (Town) in implementing the Municipal Separate Storm Sewer System (MS4) program. Hazen and Sawyer (Hazen) appreciated the opportunity to meet on August 28, 2024, to refine the scope of services and discuss anticipated activities over the next several years. At the Town’s request, Hazen is providing an updated fee table to support several ongoing and anticipated tasks over the next five years. • Task 1: MS4 Annual Report – developing the MS4 Annual Report by September 30th each year. The Town will self-perform this report for FY24-25. • Task 2: SWMP Revision (Yr 1 & 3) and SWMP Audit Support (Yr 4) – Hazen will update and finalize the 2022 Draft SWMP in FY24-25 and update the SWMP in FY26-27 to address anticipated changes associated with the superseding MS4 Phase 2 permit. Additionally, permittees are typically audited by ADEQ every 5 years, given that the most recent audit was performed in 2021, and a new permit is anticipated in FY26-27, Hazen anticipates the Town will be audited in FY27-28 and will provide audit preparation and support. • Task 3: Public Education and Outreach – in years when the SWMP is updated, Hazen will provide desktop level outreach and educational support and materials to aid in roll out of the updated SWMPs. The Town will self-perform all in-person outreach activities. • Task 4: Wet Weather Monitoring – Each year, Hazen will perform wet weather visual monitoring twice per wet season at five outfall locations identified in the SWMP. • Task 5: Dry Weather Screening – Hazen will perform dry weather screening at select outfalls to Ashbrook, Cereus, and Colony Washes each year. • Task 6: Municipal Facility Inspections – On an annual basis, Hazen will perform facility inspections at the locations and frequencies identified in the SWMP. • Task 7: Post-Construction Structure Inspections – Each year, Hazen will select locations, perform inspections on select post-construction structures, and will perform limited investigation/source tracking of potential illicit discharges. • Task 8: Staff Training – Hazen will provide annual stormwater training for Town personnel. • Task 9: Project Management – Hazen will provide status reporting and timely invoicing on project activities. • Task 10: Characterization Monitoring – In FY24-25, Hazen will perform one round of Characterization Monitoring at three outfall locations over the course of one day. This task will include laboratory coordination efforts and direct expenses. Additional details on the deliverables, assumptions, and schedule will be provided in early September. This fee estimate is provided on an expedited basis to meet the Towns request for submittal to the Town Council. If you have any questions or concerns, please reach out via RSydnor@hazenandsawyer.com or (623) 628-7232. Sincerely, Rebecca Sydnor, PE Project Manager Page 2 of 2 Hazen and Sawyer 1400 E. Southern Avenue, Suite 340 Tempe, AZ 85282 The tables below identify Hazen’s anticipated rates and projected fees, including labor, mileage, and other direct expenses. Hazen appreciates the opportunity to revisit the scope and fee if permit conditions, or the anticipated timelines for permit issuance and ADEQ audit, shift from the fiscal years in which they are projected. Based on Town feedback during the August 28, 2024 meeting, an Owners Allowance of 10% is included. Fees reflected in the table above are based on the labor rate schedule shown below. EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HAZEN AND SAWYER, P.C. [Consultant’s Proposal/Scope] See following pages. Town of Fountain Hills Admin-Procurement Robert Durham, Procurement Administrator 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program RESPONSE DEADLINE: August 22, 2024 at 5:00 pm Report Generated: Tuesday, August 27, 2024 Hazen and Sawyer Response CONTACT INFORMATION Company: Hazen and Sawyer Email: ccourter@hazenandsawyer.com Contact: Curt Courter Address: 498 Seventh Avenue, 11th Floor New York, NY 10018 Phone: N/A Website: https://www.hazenandsawyer.com/ Submission Date: Aug 22, 2024 4:05 PM [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 2 ADDENDA CONFIRMATION No addenda issued QUESTIONNAIRE 1. Certification By confirming questions under this section, the Vendor certifies: NO COLLUSION* Pass The submission of the Proposal did not involve collusion or other anti-competitive practices. Confirmed NO DISCRIMINATION* Pass It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246. Confirmed NO GRATUITY* Pass It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip favor or service to a Town employee, officer or agent in connection with the submitted Proposal. It (including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 3 with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager, Assistant Town Managers, Department Heads, and other Town staff. All contact must be addressed to the Town’s Procurement Agent, except for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to influence the selection process by any means shall void the submitted Proposal and any resulting Agreement. Confirmed FINANCIAL STABILITY* Pass It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential costs resulting from an award of the Agreement. Confirmed NO SIGNATURE/FALSE OR MISLEADING STATEMENT* Pass The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or misleading statement, shall void the submitted Proposal and any resulting Agreement. Confirmed PROFESSIONAL SERVICES AGREEMENT* Pass In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services Agreement including the Scope of Work and other Exhibits. Confirmed [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 4 A LIST OF AT LEAST THREE REFERENCES FOR SIMILAR PROJECTS.* Pass References will be checked, and it is Vendor’s responsibility to ensure that all information is accurate and current. Vendor authorizes the Town’s representative to verify all information from these references and releases all those concerned from any liability in connection with the information they provide. Inability of the Town to verify references shall result in the Proposal being considered non-responsive. Confirmed 2. Vendor Proposal GENERAL INFORMATION* Pass A. One page cover letter as described in the section titled "RFP Submission Process", the subsection titled "Required Submittal". B. Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address, identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under this section for each member. If a limited liability company, provide the name of the member or members authorized to act on the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of the person to contact concerning the Proposal. C. Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that supports the Vendor’s authority to provide services in Arizona. D. Provide a general description of the Vendor’s organization, including years in business. E. Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last five years. Briefly describe the circumstances and the outcome. [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 5 F. Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly describe the circumstances and the outcome. RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer-Submission1.pdf EXPERIENCE AND QUALIFICATIONS OF THE VENDOR* Pass A. Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a similar size to the Town, specifically relating experience with respect to Municipal Separate Storm Sewer System (MS4) program. B. Vendor must demonstrate successful completion of at least three similar projects within the past 60 months. For the purpose of this Solicitation, “successful completion” means completion of a project within the established schedule and budget and “similar projects” resemble this project in size, nature and scope. Provide a list of at least three organizations for which you successfully completed a similar project. This list shall include, at a minimum, the following information: 1. Name of company or organization. 2. Contact name. 3. Contact address, telephone number and e-mail address. 4. Type of services provided. 5. Dates of contract initiation and expiration. C. A description of the consultant’s experience with MS4 programs, particularly within Arizona RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer-Submission1.pdf KEY POSITIONS* Pass A. Identify each key personnel member that will render services to the Town including title and relevant experience required, including the proposed project manager and project staff. [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 6 B. Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of what their role will be in providing services to the Town. C. If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for providing supervision must be included. D. Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward the Proposal page limit. However, each resume shall not exceed two pages in length. RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer-Submission1.pdf PROJECT APPROACH* Pass a. A detailed work plan outlining how the consultant will accomplish each task in the scope of work. b. A schedule for completing the tasks and deliverables. A. Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s Representatives. RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer-Submission1.pdf PROJECT SCHEDULE* Pass Provide a project schedule showing key project milestones and deliverables. The schedule shall demonstrate Vendor’s ability to meet the designated milestones as listed below. Assumptions used in developing the schedule shall be identified and at a minimum the proposed schedule shall include the following dates, if applicable. A. See Scope requirements RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer-Submission1.pdf [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT RFP No. RFP-2024-003 Municipal Separate Storm Sewer System (MS4) program [HAZEN AND SAWYER] RESPONSE DOCUMENT REPORT Request for Proposals - Municipal Separate Storm Sewer System (MS4) program Page 7 PROPRIETARY OR CONFIDENTIAL INFORMATION IN THE BID?* Pass Communicate information not to be made public by highlighting the proprietary/confidential information. No W-9 Pass Hazen_W-9_Form_2023.pdf FEE SCHEDULE* Pass RFP-2024-003_Town_of_Fountain_Hills_Municipal_Separate_Storm_Sewer_System_Program_Hazen-and-Sawyer_Fee-Schedule- Submission1.pdf ITEM 10. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 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: Approving Cooperative Purchase Agreement 2025-036 with M. R. Tanner Development and Construction, Inc. Staff Summary (Background) Background: Effective pavement management is critical for maintaining the Town’s transportation network, ensuring infrastructure integrity, and preserving the quality of street surfaces. In recent years, the Town has explored various methods for prioritizing street repairs. Currently, we utilize pavement management software known as the Budget Optimization Street Selector (BOSS), which employs a Prioritization Optimization process. This system evaluates several factors, including street condition, traffic volume, budget constraints, and potential traffic flow impacts to determine the most efficient sequence for repairs or replacements. During the Town Council meeting on June 18, 2024, staff presented paving options for Fiscal Year 2025, based on both BOSS-generated priorities and public input. The Council directed staff to proceed with the BOSS-selected streets, with the possibility of including two additional locations, pending available funding. Following this direction, staff conducted a geotechnical inspection of the selected streets over the summer. The inspection identified complexities that necessitated modifications to the original work scope. Staff has prepared a revised and detailed scope of work based on these findings and submitted it to the contractor for pricing.  Cost Update:  The initial cost estimate for the selected streets presented on June 18 was $4.8 million. However, following the geotechnical inspections and current market conditions, the revised cost proposal is estimated at $5.23 million, reflecting increases in labor and material costs. Consequently, this updated estimate does not include the two alternate locations proposed by the Council. To optimize resource allocation, the Town has utilized a cooperative purchasing agreement through the City of Chandler’s Street Maintenance & Repair Services contract (RFP #PW0-745-4123), awarded to M.R. Tanner Development & Construction, Inc. It’s important to note that this agreement will expire on December 31, 2024. To prevent delays in this year's pavement management work and to benefit from competitive pricing, staff has encumbered approximately $1.5 million for a portion of the streets approved by the Council. A map indicating these Phase I locations is attached for reference. This work is in progress and will be completed under the Chandler cooperative contract before the December 31 deadline. However, to address the remaining street repairs planned for Fiscal Year 2025, Council approval of a new cooperative purchasing agreement is necessary. Following a competitive procurement process (RFQ), the City of Buckeye has entered into Contract No. 2025094, dated September 3, 2024, for Road Construction Services, also awarded to M.R. Tanner Development & Construction, Inc. M.R. Tanner has agreed to extend the pricing from the Buckeye contract to the Town of Fountain Hills, allowing us to take advantage of competitive pricing and maintain project consistency.  Recommendation:  The Public Works Department recommends the approval of a cooperative purchasing agreement with M.R. Tanner Development & Construction, Inc. in an amount of approximately $3.7 million to finalize the FY 2025 paving plan. Additionally, a budget adjustment is necessary to accommodate the increased project costs, therefore the following transfers of approximately $250,000 in expenditure authority from unspent capital project budgets are requested:  D6064 - Lowflow Drainage Project: $50,000 (Town Match portion) S7001 - Shea Blvd Widening Technology: $150,000 (Town Match portion) S6058 - Shea Blvd Widening Palisades: $50,000 (Town Match portion) Action Requested: Approval of the cooperative purchasing agreement and the associated budget adjustment for the FY 2025 paving plan.    Related Ordinance, Policy or Guiding Principle Pavement Management best practices Capital Reserve Assessment   Risk Analysis Failure to approve the contract for street maintenance and repair will delay projects, resulting in higher prices and an increased backlog.   Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends the approval of Cooperative Purchase Agreement 2025-036 with M. R. Tanner Development and Construction, Inc.   SUGGESTED MOTION MOVE to approve Cooperative Purchase Agreement 2025-036 with M. R. Tanner Development and Construction, Inc. in the amount of $3,700,000 and any associated budget transfers. Fiscal Impact Fiscal Impact:$3,700,000 Budget Reference:FY 25 Funding Source:Streets fund If Multiple Funds utilized, list here:Budget Transfers from Capital Projects Fund Budgeted: if No, attach Budget Adjustment Form:Yes Attachments Cooperative Purchasing Agreement  Underlying Agreement  Phase I Map  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 11/06/2024 03:37 PM Town Attorney Aaron D. Arnson 11/07/2024 09:13 AM Town Manager Rachael Goodwin 11/12/2024 05:47 PM Form Started By: Justin Weldy Started On: 08/21/2024 06:55 AM Final Approval Date: 11/12/2024  1 Contract No. 2025-036 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND M.R. TANNER DEVELOPMENT AND CONSTRUCTION, LLC THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into on November 19, 2024, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and M.R. Tanner Development and Construction, LLC., an Arizona limited liability company (the “Contractor”). RECITALS A. After a competitive procurement process (the “RFQ”), the City of Buckeye (“City”) entered into Contract No. 2025094, dated September 3, 2024 (the “City Contract”), for the Contractor to provide “Road Construction Services”. A copy of the City Contract is attached as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the City Contract, at its discretion and with the agreement of the awarded Contractor, and the City 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 City Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide “Road Construction Services” (the “Materials and Services”) for “Road Construction Project August 2024 Map 2-7” as attached, 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 set forth above and attested to by the Town Clerk pursuant to Section 3-3-31 of the Town Code, shall remain in full force and effect until November 14, 2025. 2. Scope of Work. Contractor shall provide to the Town the Services under the terms and conditions of the City Contract and according to the specifications set forth in the Contractor’s Proposal attached hereto as Exhibit B and incorporated herein by reference. All contractors and sub-contractors engaged in construction projects within the municipality shall display the contractor’s name/logo on both sides of the vehicle so that it is clearly visible and readable to a distance of at least 50 ft. This mandate ensures clear identification of the entities involved in town projects and facilitates easy recognition of authorized personnel and equipment. 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 City 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 2.2 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 $3,687,705.75 for the Materials and Services at the rates set forth in the City Contract (as Exhibit A attached hereto and incorporated by this reference) and as more particularly set forth in Exhibit B attached hereto and incorporated by this reference. 4. Payments. On or before the 15th day of each month after construction has commenced, the Contractor shall submit to the Town an application (AIA G702 or equivalent) for payment consisting of the cost of the Work performed up to the end of the prior month, including the cost of material stored on the site or at other locations approved by the Town. The application shall be deemed approved and certified for payment seven days after it is submitted unless before that time the Town prepares and issues a specific written finding setting forth those items in detail that are not approved for payment under the Contract. Prior to submission of the next application for payment, the Contractor shall make available at the request of the Town a statement accounting for the disbursement of funds received under the previous application for purposes of audit. The extent of such statement shall be as agreed upon between the Town and Contractor. 4.1 Within 14 days after approval of each monthly application for payment, the Town shall pay directly to the Contractor the appropriate amount for which application for payment is made, less amounts (a) previously paid by the Town, (b) sufficient to pay expenses the Town reasonably expects to incur in correcting deficiencies which are set forth in writing and provided to the Contractor and (c) any retainage as set forth below. 4.2 The Town’s progress payment, occupancy or use of the Project, whether in whole or in part, shall not be deemed as acceptance of any Work not conforming to the requirements of this Contract. 4.3 Upon Substantial Completion of the Work, the Town shall pay the Contractor the unpaid balance of the cost of the Work, less a sum equal to the Contractor’s estimated cost of completing any unfinished items as agreed to between the Town and the Contractor as to extent and time for Final Completion. The Town thereafter shall pay the Contractor monthly the amount retained for unfinished items as each item is completed. 4.4 Retainage. With respect to the Work, the Town shall retain ten percent (10%) of the amount of each estimate until Final Completion and acceptance of all Material, equipment and Work covered by this Contract. 4.5 Any securities submitted by Contractor in lieu of retainage as may be allowed by law, shall be deposited in an escrow account by the Town. The Town shall be listed as payee or multiple payees with Contractor on all such securities. 4.6 When the Work is fifty percent (50%) completed, one-half of the amount retained including any securities substituted pursuant to subsection 4 shall be paid to the Contractor upon the Contractor’s request, provided the Contractor is making satisfactory progress on the Work and there is no specific cause or claim requiring a greater amount to be retained. After the construction Work is fifty percent (50%) completed, no more than five percent (5%) of the amount of any subsequent progress payments made under this Contract may be retained, provided the Contractor is making satisfactory progress on the Project. If, 3 at any time, the Town determines satisfactory progress is not being made, ten percent (10%) retention shall be reinstated for all progress payments made under this Contract after the determination. 4.7 Payment for On-site and Off-site Stored Materials. Payment shall be made on account of Materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. Payment may similarly be made for Materials and equipment suitably stored off the site, conditioned upon the Contractor furnishing evidence to the Town that (1) the Materials will pass to the Town upon payment therefore, (2) the Materials are adequately safeguarded and insured, including during transit from the off-site location to the Project site and (3) such other matters as the Town may reasonably request in order to protect its interests. With the prior, written approval of the Town, Contractor may advance order the bulk delivery of Materials to be incorporated into the Work over the course of this Contract. Upon delivery and receipt of supplier invoice, the Town shall pay for the bulk delivery, either directly to the Contractor or to the vendor or by joint check to Contractor and vendor, and shall receive a full release for the amount paid from vendor and Contractor. Contractor agrees to assume full responsibility for the safekeeping of all such Materials and shall guarantee to the Town that such Materials shall remain safe from theft or damage from any and all causes (unless caused by the sole negligence of the Town). Contractor shall immediately replace, repair or restore said Materials to their original condition so as to not cause any delay in the Work, and Contractor shall indemnify and hold harmless the Town for, from and against any and all loss, cost, liability or expense resulting from any loss or damage to any of the Materials described herein from any cause unless due to the Town’s sole negligence. Should the Town have reason to believe Contractor is not properly safeguarding any of the Materials, the Town shall have the right, but not the affirmative duty, to immediately take such steps as it deems necessary to do so, including removing Contractor from the job, replacing any Materials or expending any sums to properly carry out Contractor’s responsibility hereunder, and any amounts so expended shall be billed back to Contractor or deducted from any sums then or thereafter due to Contractor. Contractor shall fully insure all Materials stored on site as required by the Town, and if such insurance is not obtained due to a lack of insurable interest, the Town shall have the right to obtain such insurance and charge the amount thereof back to Contractor or deduct said amount from any funds then or thereafter due to Contractor. 4.8 The vendor shall first obtain a business license in accordance with Town Code, Article 8-1, before commencing work in accordance with this contract. Town Finance will not disburse any payments to vendors without a valid business license, as applicable. All invoices and statements shall be emailed to accountspayable@fountainhillsaz.gov. 4.9 Each invoice shall (i) contain a reference to this Agreement and the City 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 City 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’ books, 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. 4 For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 7. Israel. Contractor certifies that it is not currently engaged in and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 8. China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 9. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 10. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 11. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that 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 City 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 5 exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the City 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 City 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 City Contract, the Town shall be afforded all of the rights and privileges afforded to City and shall be the “City” (as defined in the City Contract) for the purposes of the portions of the City 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 City to the extent provided under the City 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, to the fullest extent permitted by law, the Contractor shall indemnify 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”) to the extent that such Claims (or actions in respect thereof) are caused by the negligent acts, recklessness or intentional misconduct of the Contractor, its officers, employees, agents, or any tier of subcontractor in connection with Contractor’s work or services in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 15. Laws and Regulations. Contractor 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 6 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: M.R. Tanner Development and Construction, LLC 1327 W. San Pedro St. Gilbert, Az. 85233 Attn: Josh Skinner JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 33 2024193.1 Street Maintenance – Pave, Patch & Mill Projects / Sealing Application Projects 2024193.2 General Construction Services 2024193.3 Road Construction Services 2024193.4 Steel Building/Structure Construction Services JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 34 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 35 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 36 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 37 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 38 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 39 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 40 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 41 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 42 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 43 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 44 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 45 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 46 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 47 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 48 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 49 a) Quality of technical data/report preparation efforts E VG S M U N b) Ability to meet quality standards specified for technical performance E VG S M U N c) Timeliness/effectiveness of contract problem resolution without extensive customer guidance E VG S M U N d) Adequacy/effectiveness of quality control program and adherence to contract quality assurance requirements (without adverse effect on performance) E VG S M U N a) Compliance with contract delivery/completion schedules including any significant intermediate milestones. (If liquidated damages were assessed or the schedule was not met, please address below) E VG S M U N b) Rate the contractor's use of available resources to accomplish tasks identified in the contract E VG S M U N a) To what extent were the end users satisfied with the project?E VG S M U N b) Contractor was reasonable and cooperative in dealing with your staff (including the ability to successfully resolve disagreements/disputes; responsiveness to administrative reports, ommunication ) E VG S M U N c) To what extent was the contractor cooperative, , and concerned with the interests of the customer?E VG S M U N d) Overall customer satisfaction E VG S M U N a) Effectiveness of on-site management of subcontractors, suppliers, materials, and/or labor force?E VG S M U N b) Ability to hire, apply, and retain a qualified workforce through this effort E VG S M U N c) Government Property Control E VG S M U N d) Knowledge/expertise demonstrated by contractor personnel E VG S M U N e) Utilization of Small Business E VG S M U N f) Ability to simultaneously manage multiple projects with multiple disciplines E VG S M U N g) Ability to assimilate and incorporate changes in requirements and/or priorit , including planning, execution and response to Government change E VG S M U N h) Effectiveness of overall management (including ability to effectively lead, manage and control the program)E VG S M U N PAST PERFORMANCE EVALUATION (TO BE COMPLETED BY CLIENT) 1. QUALITY 2. SCHEDULE/TIMELINESS OF PERFORMANCE: 3. CUSTOMER SATISFACTION 4. MANAGEMENT/PERSONNEL/LABOR JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 50 a) Ability to meet the terms and conditions within the contractually agreed price(s)?E VG S M U N b) Contractor proposed innovative alternative methods/processes that reduced cost, improved maintainability or other factors that benefited the client E VG S M U N c) If this is/was a Government cost type contract, please rate the Contractor's timeliness and accuracy in submitting monthly invoices with appropriate back- up documentation, monthly status reports/budget variance reports, compliance with established budgets and avoidance of significant and/or unexplained variances (under runs or overruns) E VG S M U N d) Is the Contractor's accounting system adequate for management and tracking of costs? If no, please explain in Remarks section. e) If this is/was a Government contract, has/was this contract been partially or completely terminated for default or convenience or are there any pending terminations? Indicate if show cause or cure notices were issued, or any default action in comment section below. f) Have there been any indications that the contractor has had any financial problems? If yes, please explain below. a) To what extent was the contractor able to maintain an environment of safety, adhere to its approved safety plan, and respond to safety issues? (Includes: following the users rules, regulations, and requirements regarding housekeeping, safety, correction of noted deficiencies, etc.) E VG S M U N b) Contractor complied with all security requirements for the project and personnel security requirements.E VG S M U N a) Ability to successfully respond to emergency and/or surge situations (including notifying COR, PM or Contracting Officer in a timely manner regarding urgent contractual issues) E VG S M U N b) Compliance with contractual terms/ provisions (explain if specific issues)E VG S M U N c) Would you hire or work with this firm again? (if no, please explain below) d) In summary, provide an overall rating for the work performed by this contractor.E VG S M U N Client Signature:Date: Please provide responses to the questions above (if applicable) and/or additional remarks. , please provide a brief narrative addressing specific strengths, weaknesses, deficiencies, or other comments which may assist in evaluating performance risk. (please attach additional pages if necessary) 5. COST/FINANCIAL MANAGEMENT 6. SAFETY/SECURITY 7. GENERAL Yes No NoYes NoYes Yes No JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 51 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 52 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 53 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 54 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 55 a) Quality of technical data/report preparation efforts E VG S M U N b) Ability to meet quality standards specified for technical performance E VG S M U N c) Timeliness/effectiveness of contract problem resolution without extensive customer guidance E VG S M U N d) Adequacy/effectiveness of quality control program and adherence to contract quality assurance requirements (without adverse effect on performance) E VG S M U N a) Compliance with contract delivery/completion schedules including any significant intermediate milestones. (If liquidated damages were assessed or the schedule was not met, please address below) E VG S M U N b) Rate the contractor's use of available resources to accomplish tasks identified in the contract E VG S M U N a) To what extent were the end users satisfied with the project?E VG S M U N b) Contractor was reasonable and cooperative in dealing with your staff (including the ability to successfully resolve disagreements/disputes; responsiveness to administrative reports, ommunication ) E VG S M U N c) To what extent was the contractor cooperative, , and concerned with the interests of the customer?E VG S M U N d) Overall customer satisfaction E VG S M U N a) Effectiveness of on-site management of subcontractors, suppliers, materials, and/or labor force?E VG S M U N b) Ability to hire, apply, and retain a qualified workforce through this effort E VG S M U N c) Government Property Control E VG S M U N d) Knowledge/expertise demonstrated by contractor personnel E VG S M U N e) Utilization of Small Business E VG S M U N f) Ability to simultaneously manage multiple projects with multiple disciplines E VG S M U N g) Ability to assimilate and incorporate changes in requirements and/or priorit , including planning, execution and response to Government change E VG S M U N h) Effectiveness of overall management (including ability to effectively lead, manage and control the program)E VG S M U N PAST PERFORMANCE EVALUATION (TO BE COMPLETED BY CLIENT) 1. QUALITY 2. SCHEDULE/TIMELINESS OF PERFORMANCE: 3. CUSTOMER SATISFACTION 4. MANAGEMENT/PERSONNEL/LABOR JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 56 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 57 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 58 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 59 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 60 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 61 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 62 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 63 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 64 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 65 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 66 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 67 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 68 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 69 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 70 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 71 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 72 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 73 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 74 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 75 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 76 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 77 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 78 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 79 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 80 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 81 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 82 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 83 JO C - G e n e r a l C a t e g o r y 3 : R o a d C o n s t r u c t i o n S e r v i c e s Co n t r a c t N o . 2 0 2 5 0 9 4 M. R . T a n n e r D e v e l o p m e n t a n d C o n s t r u c t i o n , L L C 84 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 85 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 86 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 87 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 88 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 89 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 90 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 91 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 92 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 93 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 94 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 95 EXHIBIT B TO JOB ORDER CONTRACT FOR ROAD CONSTRUCTION SERVICES BETWEEN CITY OF BUCKEYE AND M. R. TANNER DEVELOPMENT AND CONSTRUCTION, LLC RFQ NO. 2024193] SEE FOLLOWING PAGES JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 96 CITY OF BUCKEYE REQUEST FOR QUALIFICATIONS RFQ: 2024193 JOB ORDER CONTRACTING (JOC) GENERAL CATEGORY 1: Street Maintenance Pave, Patch & Mill Projects / Sealing Applications Projects CATEGORY 2: General Construction Services CATEGORY 3: Road Construction Services CATEGORY 4: Steel Building/Structure Construction Services CONTACT PERSON Travis M. Stewart - Contracts Administrator Finance Division / City of Buckeye 623.349.6173 tstewart@buckeyeaz.gov Date Issued: Monday, May 20, 2024 Pre-Submittal Conference: Wednesday, May 29, 2024 at 10:00 AM Last Day for Questions: Monday, June 10, 2024 at 3:00 PM RFQ Due Date: Monday, June 17, 2024 at 3:00 PM PLEASE NOTE: IF DOCUMENTS WERE DOWNLOADED FROM THE CITY OF BUCKEYE BONFIRE WEBSITE, CONTRACTORS ARE RESPONSIBLE FOR OBTAINING ANY ADDENDA EITHER THROUGH UPDATES ON THE WEBSITE, OR BY CONTACTING THE CITY CONTACT PERSON LISTED ABOVE. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 97 TABLE OF CONTENTS SECTION DESCRIPTION PAGE NO. 1. Introduction ......................................................................................... 3 2. Project Summary/ Scope of Work ....................................................... 4 3. Pre-Submittal Conference ................................................................... 5 4. Submittal Requirements ...................................................................... 5 5. Selection Process ................................................................................. 9 6. General Information ............................................................................ 9 SECTION ATTACHMENTS PAGE NO. 1. Past Performance Questionnaire A-1 2. Scope of Work by Category A-2 3. JOC Selection Checklist A-3 4. Street Maintenance Technical A-4 5. Sample Contract -5 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 98 SECTION 1 - INTRODUCTION The City of Buckeye is currently looking to establish Job Order Contracts (JOCs) for indefinite quantity and indefinite delivery for various projects in the City of Buckeye, Arizona. Individual categories under this JOC are listed in detail in Attachment A-2. Interested contractors will have the ability to show related experience and a proven record of accomplishment in Job Order Contracting projects of the same nature and magnitude. The selected contractors will be expected to deliver turnkey projects, which may include design, preconstruction services, permitting, regulatory requirements, and as-built/close-out documents. The contract period will be for an initial term of one (1) year with no more than four (4) additional one-year extensions. During the term of the contract, work shall be conducted as a series of individual job orders referred to as Delivery Orders. The effective date of the initial one (1) year start date of each JOC category is as follows: Street Maintenance: Pave, Patch & Mill Projects / 8/6/2024 Sealing Applications Projects General Construction Services 8/1/2024 Road Construction Services 8/1/2024 Steel Building/Structure Construction Services 8/1/2024 The JOC categories are intended for small to midsized projects. Estimated values for individual projects are expected not to exceed $1,000,000.00. Most projects are anticipated to be completed within the same fiscal year they are initiated or within three hundred sixty-five (365) days. Projects may extend into the next fiscal year and beyond, but in no instance will any one project under a JOC category exceed $2,000,000.00. The total amount for all projects for any one contractor will not exceed $6,000,000.00 per category in any given fiscal year. Any contract resulting from this solicitation shall be for the use of the City of Buckeye. In addition, specific eligible political subdivisions and nonprofit educational or public health institutions may also participate at their discretion. In order to participate in any resultant contract, a political subdivision or nonprofit educational or public health institution must have been invited to participate in this specific solicitation and the contractor must be in agreement with the cooperative transaction. In addition to cooperative purchasing, any eligible agency may elect to participate (piggyback) on any resultant contract; the specific eligible political subdivision, nonprofit educational or public health institution and the contractor must be in agreement. Any delivery order placed to the successful contractor will be placed by the specific agencies participating in this purchase. Payment for purchases made under this agreement will be the sole responsibility of each participating agency. The City shall not be responsible for any disputes arising out of transactions made by others. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 99 SECTION 2 PROJECT(S) SUMMARY/SCOPE OF WORK The intent of this solicitation is to award Job Order Contracts in seven Categories as listed in Attachment A-2 to at least three (3) and no more than five (5) separate Contractors in each category who will subsequently compete for individual Job Orders (Delivery Orders) for projects by providing a proposal as each project arises based off of a Delivery Order Request for Proposal (DORFP) that is issued by the City of Buckeye. Each Job Order will be implemented by issuing a Delivery Order for the work. Each Job Order will be a separate contract for construction. Individual Delivery Orders shall not exceed $2,000.000.00, including all change orders. The scope of work for each project cannot be precisely defined at this time, but the expectation is that the majority of Job Orders will be in the $100,000 to $1,000,000 range. The City reserves the right to issue individual Job Orders by negotiating with the contractor that scored as the most qualified under a JOC category. If negotiations fail, the City will go to the next most qualified contractor for negotiations. The process is repeated until negotiations are successful, or the JOC contractor list is expended. As individual Job Orders are issued in this manner, negotiations will be initiated with the next most qualified contractor as each project is identified. To the extent projects will be rotated through all contractors under the JOC category to provide equal opportunity for all contractors, the byproduct of which is efficiency through competitive pricing, as discussed in the following paragraphs. The City of Buckeye has elected to use the JOC delivery method for these projects as outlined under A.R.S. Title 34. Cost effective construction in the shortest possible time period and within Job Order Contracting. The Contractors may provide separate qualification submittals for one or multiple categories described in Attachment A-2. The list of services under each category is not comprehensive and the City reserves the right to add related services to each category as necessary. The City anticipates it will award contracts to at least three (3) and no more than five (5) separate contractors in each category (The number of contractors will be determined in the evaluation phase.). For projects determined by the City to be appropriate for this Job Order Contract, the City will request that the Contractor prepare a cost proposal and project schedule. If acceptable, the City will issue an Individual Job Order Contract and direct the Contractor to proceed with the work. Although the City anticipates that awarded Contractors will be issued work, the Contractor is guaranteed neither a minimum amount of work nor any jobs at all. The City reserves the right and will issue job orders based on the ability of the Contractor to meet the City and the availability of trades and expertise in relation to each project. Appropriate payment and performance bonding per project shall be required. Scope of Work: See Attachment 2. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 100 SECTION 3 - PRE-SUBMITTAL CONFERENCE The pre-submittal conference has been scheduled for Wednesday, May 29, 2024, at 10:00 AM via Microsoft Teams. Attendance is encouraged but not required. Microsoft Teams: Link SECTION 4 SUBMITTAL REQUIREMENTS The One (1) page Cover letter submitted with your Statement of Qualifications (SOQ) packet, must indicate which category(s) your Firm wishes to be considered for using the JOC Selection Checklist (Attachment A-3). Firms must submit a separate SOQ for each category they wish to be considered for. When the selection process is complete, Firms may be awarded in one or multiple Categories based on the SOQs submitted. by Monday, 3:00 PM, local time on June 17, 2024. Submit a complete copy of the Qualifications using a searchable Submittals must be received by the specified time. On the PDF file, please display: Firm name, Request for Qualifications (RFQ) title, RFQ Number #2024193, Category Number/Name. All submittals must be https://buckeyeaz.bonfirehub.com/opportunities/114292. All Questions concerning this Request for Qualifications (RFQ) can be submitted through Bonfire or directly to the Contracts Administrator: (Phone/Email) City of Buckeye 530 East Monroe Avenue Buckeye, AZ 85326 Attn: Travis M. Stewart tstewart@buckeyeaz.gov 623.349.6173 Questions must be received by the deadline to be considered. The deadline for questions is June 10, 2024, 3:00 PM Local Time. Submittal: one (1) page cover letter, Two (2) pages financial information) TAB A: Project Experience (one page per project, maximum of eight (8) projects) TAB B: Past Performance Questionnaire (one form per projects identified in TAB A) TAB C: Key Personnel Resumes (one page per resume, plus organizational chart) TAB D: Method of Approach (25 pages) JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 101 COVER LETTER/FINANCIAL INFORMATION Within the one- and the email address for your firm s contact person for the RFQ and Category (2) you wish to be considered for. Adherence to the maximum page criterion is critical: each page side (maximum 8- criteria information will be counted. -outs) unless specifically authorized. Pages that have project photos, charts and/or graphs will be counted towards the required number of pages. Front and back covers, Table of Contents, and divider (tab) pages will not be counted unless they include qualification information that could be considered by the selection panel. Resumes should provide information for key staff (no company profiles) and should not include project pictures or general firm information. Any additional company information or non-key staff information included in the resume section will be counted against the maximum page requirement. Do not submit information that is not listed herein. Font size must be 10 point or greater. 1. Financial Capacity/Bonding/Insurance 2. Total Bonding Capacity - Single Limit and Aggregate Limit 3. Current Backlog/Project List 4. (Items 1-3 must be documented /verified from your surety or insurance carrier) TAB A - PROJECT EXPERIENCE Identify at least Five (5) but no more than Eight (8) comparable projects. Demonstrate the experience of your firm and/or proposed team, including sub-contractors, on projects same/similar to that described in the solicitation for same/similar services. The projects submitted should also demonstrate that the contractor and/or the team have performed a same/similar type of services at multiple sites simultaneously. Same and or similar type services may be as follows: 1. Job Order Contracts for the services in the individual category the firm is submitting under as described in Attachment A-2. 2. Multiple Award JOC Contracts with Public Entities. (City, State, School District, County) 3. One (1) project presented in TAB A must represent a multitude of disciplines and job Duties. 4. Two (2) projects must highlight your firm s ability to perform similar projects and have a final construction value of greater than $1,000,000. 5. All projects submitted must have been completed within the last five (5) years. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 102 TAB B - PAST PERFORMANCE QUESTIONNAIRE For each project submitted in TAB A, you must submit a completed Past Performance Questionnaire, ATTACHMENT (A-1). The firm is directed to provide this form to the project owner or Point of Contact. Instruct the owner to complete the form and return the form with your submission. TAB C - EXPERIENCE OF KEY PERSONNEL The Firm must provide resume data for the following key personnel: JOC Account Manager, JOC Estimator, Project Manager, Project Superintendent, and Quality Control Manager. The Firm may also include resume data for other personnel that you consider key. Resume information to be provided shall be limited to no more than one (1) page per person and shall include the following information as a minimum: (a) Name and title (b) Project assignment (c) Name of firm with which associated (d) (e) Active professional registration, year first registered, if applicable (f) Other experience and qualifications relevant to same/similar work required under this contract (g) Education: degree(s), year, specialization, if applicable Include an organizational chart (maximum 2 pages) at the end of this tab, chart may be submitted Provide an organizational chart that depicts the project team organization and lines of authority. Clearly indicate superior/subordinate reporting relationships; provide names of Project Managers, Site Supervisors, Inspectors and Estimators. Include if applicable, Key Personnel from major Subcontractors or Suppliers that would contribute to major portions of any work associated with this JOC solicitation. TAB D - METHOD OF APPROACH General Project Approach: 1.City 2. Describe how your firm handles cost control (daily, monthly, and completion tracking/reporting); scheduling (initial and progress schedules); how are cost overruns identified and how are they mitigated? 3. 4. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 103 Job Order Management: cost estimates and schedules related to the City specific detail regarding the following: 1. Upon receipt of a job order request for proposal from the City, how many days does your firm require to process and complete all necessary paperwork and return a proposal to the City? 2. Upon acceptance of a proposal and issuance of a Notice to Proceed, how many days does your firm typically require to mobilize forces and start construction? 3.ocedure and how change Orders are communicated with the City. Value Analysis/Value Engineering/Risk Mitigation: 1. What capabilities does your firm have to provide additional Value Analysis/Value Engineering to Job Orders of limited design prior to construction? What is your willingness to provide these services as part of your job order quotation? 2. What capabilities do you have to identify and communicate various opportunities for risk mitigation with the City at the time of Job Order development? What risk Avoidance strategies have you commonly employed and shared with Owners to Reduce NOTE: Specific pricing information, including proposed value engineering or cost savings Any Statement of Qualifications that contains any information of this type may, in the sole discretion of the City, be deemed non-responsive and be returned to the Contractor. Subcontractor Selection Plan: Each Contractor s subcontracting plan will be incorporated by reference into the Agreement. Each Contractor will be obligated to comply with its own plan. Note that a subcontractor selection plan is a requirement of A.R.S. § 34-604(C)(2)(e)(i) and, as such, must be submitted; failure to submit a subcontractor selection plan will result in rejection of the Statement of Qualifications. Safety: 1.. 2. List all major Certifications and Training obtained by the Safety Manager. 3. Describe Safety Training protocol provided to Field Staff at a Project site. 4. Provide your Firms most current Experience Modification Rate (EMR). JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 104 SECTION 5 - SELECTION PROCESS This Request for Qualifications (RFQ) is being conducted pursuant to A.R.S. § 34-604. The process will be to review and evaluate the submittals using a Scoring System. The selection criteria and relative weights for determining the order of firms on the final list are as follows: SECTION MAX SCORE Cover Letter 0 Project Experience 30 Past Performance Questionnaire 20 Experience of Key Personnel 20 Method of Approach 30 Total Maximum Points 100 The Selection Panel will evaluate each SOQ according to the criteria set forth in Section 4 above. The City will select firm(s) based on the SOQs received; formal interviews may or may not be conducted. The City may conduct a due diligence review on the firm(s) receiving the highest scores. City employees and at least one senior management employee of a licensed contractor and one person who is an architect or engineer registered pursuant to A.R.S. § 32-121. These members may be employees of the City or outside consultants. The selection committee will review, evaluate, and score the RFQ responses in accordance with the evaluation criteria established above. The City may then decide, if necessary, to conduct interviews of firms to make final selections. The City will then award a Job Order Contract to the highest-ranked firms within each Category. The City expects to award contracts in all categories listed in Attachment A-3. SECTION 6 - GENERAL INFORMATION City Rights. The City of Buckeye reserves the right to reject any or all Statements of Qualifications, to waive any informality or irregularity in any Statement of Qualifications received, and to be the sole judge of the merits of the respective Statements of Qualifications received. Acceptance of Evaluation Methodology. By submitting Qualifications in response to this SOQ, respondent acknowledges and accepts the evaluation process, the established criteria and associated Scoring System subjective judgments by the City. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 105 Release of Project Information. The City shall provide the release of all public information concerning this project, including selection announcements and contract award. Those desiring to release information to the public must receive prior written approval from the City. Contact with City Employees. representatives, agents, lobbyists, attorneys, and subcontractors) will refrain, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process with any person who may play a part in the selection process, including the evaluation panel, the City Manager, Department Heads and other City staff. This policy is intended to create a level playing field for all potential firms, assure that contract decisions are made in public and to protect the integrity of the selection process. All contact on this selection process should be addressed to the authorized representative identified below. Data Confidentiality. Except as specifically provided in the Contract, the Contractor or its subcontractors shall not divulge data to any third party without prior written consent of the City. Legal Worker Requirements. The City of Buckeye is prohibited by A.R.S. § 41-4401 from awarding a contract to any contractor who fails, or whose subcontractors fail, to comply with A.R.S. § 23- 214(A). The contractor and each subcontractor shall comply with all federal immigration laws and regulations related to their employees and compliance with the stated law. The City of Buckeye retains the legal right to inspect the papers of any contractor or subcontractor employee who is awarded a contract to ensure that the firm or subcontractor is complying with the law. Lawful Presence Requirement. Pursuant to A.R.S. §§ 1-501 and 1-502, the City of Buckeye is prohibited from awarding a contract to any natural person who cannot establish that such person is lawfully present in the United States. To establish lawful presence, a person must produce qualifying identification and sign a City-provided affidavit affirming that the identification provided is genuine. This requirement will be imposed at the time of contract award. This requirement does not apply to business organizations such as corporations, partnerships or limited liability companies. Protest Procedures. Firms wishing to respond to disqualification or a procurement outcome may refer to The City of Buckeye Procurement Code, Section 24-3-17 which governs protest procedures utilized throughout the selection process. Suspension/Debarment. By submitting a proposal in response to this solicitation, the respondent is certifying that it is neither debarred nor suspended nor under consideration for suspension or debarment by any federal, state, or local government or agency. If a respondent is not able to so certify, the respondent must submit a letter that identifies the agency involved and a contact and explains why respondent is suspended, debarred, or being considered for suspension or debarment. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 106 Questions. Questions pertaining to this selection process or contract issues should be directed to Travis M. Stewart, Contracts Administrator at 623-349-6173 / tstewart@buckeyeaz.gov or Bonfire website. All questions relating to the RFQ must be received no later than the deadline for questions as stated on the cover sheet of the RFQ. Responses to questions that materially change the scope or intent of this SOQ will be issued via addendum on the City of Buckeye website. The City will not notify Respondents of posting of addenda. addenda. Failure to include acknowledgement of all addenda may be cause for rejection of the proposal. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 107 ATTACHMENT A-1 PAST PERFORMANCE QUESTIONAIRE JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 108 CONTRACT INFORMATION (To be completed by Contractor) 1. Contractor Information: Firm Name: __________________________ Email : ____________________________________ Address: _____________________________ Contact Name: _____________________________ Phone Number: _______________________ Contact Phone: _____________________________ 2. Work Performed as: Prime Contractor Sub Contractor Joint Venture Other (Explain): 3. Contract Information: Contract Number:________________________________ Contract Type: Firm Fixed Price Cost Reimbursement Other (Please specify): Contract Title: __________________________________ Contract Location: _______________________ Award Date (mm/dd/yy): ____________________ Contract Completion Date: ____________________Actual Completion Date : __________________ Explain Differences: Original Contract Price (Award Amount): __________________________ Final Contract Price (to include all modifications, if applicable): _________________________ Explain Differences: 4. Project Description: Complexity of Work: High Med Routine CLIENT INFORMATION (To be completed by Client) 5. Client Information: Name: ___________________________________Phone Number: ____________________________________ Title: ____________________________________Email Address: _______________________________________ 6. Describe the client's role in the project: Client Signature:Date: PAST PERFORMANCE QUESTIONNAIRE How is this project relevant to project of submission? (Please provide details such as similar equipment, requirements, conditions, etc.) JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 109 NOTE (E ) Exceptional An Exceptional rating is appropriate when the contractor successfully performed multiple significant events that were of benefit to the Government/Owner. A singular benefit, however, could be of such magnitude that it alone constitutes an Exceptional rating. Also there should have been NO significant weaknesses identified. A Very Good rating is appropriate when the Contractor successuflly performed a significant event that was a benefit to the Government/Owner. There should have been no significant weaknesses identified. A Satisfactory rating is appropriate when there were only minor problems, or major problems that the contractor recovered from without impact to the contract. There should have been NO significant weaknesses identified. Per DOD policy, a fundamental principle of assigning ratings is that the contractors will not be assessed a rating lower than Satisfactory solely for not performing beyond the requirements of the contract. A Marginal rating is appropriate when a significant event occurred that the contractor had trouble overcoming which impacted the Government/Owner. An Unsatisfactory rating is appropriate when multiple significant events occurred that the contractor had trouble overcoming and which impacted the Government/Owner. A singular problem, however, could be of such serious magnitude that it alone constitutes an unsatisfactory rating. Raiting will be neither positive nor negative.No information or did not apply to your contract Performance does not meet most contractual requirements and recovery is not likely in a timely manner. The contractual performance of the element or sub-element contains serious problem(s) for which the contractor's corrective actions appear or were ineffective. Performance does not meet some contractual requirements. The contractual performance of the element or sub-element being assessed reflects a serious problem for which the contractor has not yet identified corrective actions. The contractor's proposed actions appear only marginally effective or were not fully implemented. Performance meets minimum contractual requirements. The contractual prerformance of the element or sub-element contains some minor problems for which corrective actions taken by the contractor appear or were satisfactory Performance meets contractual requirements and exceeds some to the Government/Owner's benefit. The contractual performance of the element or sub-element being assessed was accomplished with some minor problems for which corrective actions taken by the contractor were effective (N) Not Applicable (U) Unsatisfactory (M) Marginal (S) Satisfactory (VG) Very Good RATING DEFINITION Performance meets contractual requirements and exceeds many to the Government/Owner's benefit. The contractual performance of the element or sub-element being assessed was accomplished with few minor problems for which corrective actions taken by the contractor were highly effective ADJECTIVE RATINGS AND DEFINITIONS TO BE USED TO BEST REFLECT YOUR EVALUATION OF THE CONTRACTOR'S PERFORMANCE JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 110 a) Quality of technical data/report preparation efforts E VG S M U N b) Ability to meet quality standards specified for technical performance E VG S M U N c) Timeliness/effectiveness of contract problem resolution without extensive customer guidance E VG S M U N d) Adequacy/effectiveness of quality control program and adherence to contract quality assurance requirements (without adverse effect on performance) E VG S M U N a) Compliance with contract delivery/completion schedules including any significant intermediate milestones. (If liquidated damages were assessed or the schedule was not met, please address below) E VG S M U N b) Rate the contractor's use of available resources to accomplish tasks identified in the contract E VG S M U N a) To what extent were the end users satisfied with the project?E VG S M U N b) Contractor was reasonable and cooperative in dealing with your staff (including the ability to successfully resolve disagreements/disputes; responsiveness to administrative reports, ommunication ) E VG S M U N c) To what extent was the contractor cooperative, , and concerned with the interests of the customer?E VG S M U N d) Overall customer satisfaction E VG S M U N a) Effectiveness of on-site management of subcontractors, suppliers, materials, and/or labor force?E VG S M U N b) Ability to hire, apply, and retain a qualified workforce through this effort E VG S M U N c) Government Property Control E VG S M U N d) Knowledge/expertise demonstrated by contractor personnel E VG S M U N e) Utilization of Small Business E VG S M U N f) Ability to simultaneously manage multiple projects with multiple disciplines E VG S M U N g) Ability to assimilate and incorporate changes in requirements and/or priorit , including planning, execution and response to Government change E VG S M U N h) Effectiveness of overall management (including ability to effectively lead, manage and control the program)E VG S M U N PAST PERFORMANCE EVALUATION (TO BE COMPLETED BY CLIENT) 1. QUALITY 2. SCHEDULE/TIMELINESS OF PERFORMANCE: 3. CUSTOMER SATISFACTION 4. MANAGEMENT/PERSONNEL/LABOR JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 111 a) Ability to meet the terms and conditions within the contractually agreed price(s)?E VG S M U N b) Contractor proposed innovative alternative methods/processes that reduced cost, improved maintainability or other factors that benefited the client E VG S M U N c) If this is/was a Government cost type contract, please rate the Contractor's timeliness and accuracy in submitting monthly invoices with appropriate back- up documentation, monthly status reports/budget variance reports, compliance with established budgets and avoidance of significant and/or unexplained variances (under runs or overruns) E VG S M U N d) Is the Contractor's accounting system adequate for management and tracking of costs? If no, please explain in Remarks section. e) If this is/was a Government contract, has/was this contract been partially or completely terminated for default or convenience or are there any pending terminations? Indicate if show cause or cure notices were issued, or any default action in comment section below. f) Have there been any indications that the contractor has had any financial problems? If yes, please explain below. a) To what extent was the contractor able to maintain an environment of safety, adhere to its approved safety plan, and respond to safety issues? (Includes: following the users rules, regulations, and requirements regarding housekeeping, safety, correction of noted deficiencies, etc.) E VG S M U N b) Contractor complied with all security requirements for the project and personnel security requirements.E VG S M U N a) Ability to successfully respond to emergency and/or surge situations (including notifying COR, PM or Contracting Officer in a timely manner regarding urgent contractual issues) E VG S M U N b) Compliance with contractual terms/ provisions (explain if specific issues)E VG S M U N c) Would you hire or work with this firm again? (if no, please explain below) d) In summary, provide an overall rating for the work performed by this contractor.E VG S M U N Client Signature:Date: Please provide responses to the questions above (if applicable) and/or additional remarks. , please provide a brief narrative addressing specific strengths, weaknesses, deficiencies, or other comments which may assist in evaluating performance risk. (please attach additional pages if necessary) 5. COST/FINANCIAL MANAGEMENT 6. SAFETY/SECURITY 7. GENERAL Yes No NoYes NoYes Yes No JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 112 ATTACHMENT A-2 SCOPE OF WORK BY CATEGORY JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 113 The intent of this solicitation is to award a Job Order Contract to at least three (3) and no more than five (5) separate Contractors in each category who will subsequently compete for individual Job Orders for projects by providing a proposal as each project arises. Each Job Order will be implemented by issuing a Delivery Order (DO) for the work. Each Job Order (DO) will be a separate contract for construction. Individual Delivery Orders shall not exceed $2,000,000.00, including all change orders. The scope of work for each project cannot be precisely defined at this time, but the expectation is that the majority of Job Orders will be in the $50,000 to $1,000,000 range. Projects delivered under the Job Order Contract will be restricted to the services outlined in each category. Interested contractors will have the ability to show related experience and a proven track record in projects of the same nature and magnitude. The selected contractors will be expected to deliver turn key projects, including all permitting and compliance with regulatory requirements. For any project determined by the City to be appropriate for the Job Order Contract, the City will issue a Delivery Order Request for Proposals (DORFP). The City reserves the right to issue individual Job Orders by negotiating with the contractor that scored as the most qualified under a JOC category. If negotiations fail, the City will go to the next most qualified contractor for negotiations. The process is repeated until negotiations are successful, or the JOC contractor list is expended. As individual Job Orders are issued in this manner, negotiations will be initiated with the next most qualified contractor as each project is identified. Projects will be rotated through all contractors under the JOC category to provide equal opportunity for all contractors. The City will receive proposals and execute individual Delivery Orders specifying the cost and completion schedule for each project. Design services or post design services may be required for some of the projects. The scope of work for design or post design services, when applicable, will be defined by the City and included in each Delivery Order Request for Proposals. Any as- builts required to be completed as part of the post design services will be specified. The following work activities may be included in individual projects under each category. Not all activities will be included in all projects. The activities are not inclusive of the work that may be required on all projects. The successful contractors shall have experience, knowledge, and ability to accomplish the following tasks but not limited to: CATEGORY 1: STREET MAINTENANCE: PAVE, PATCH & MILL PROJECTS May include but not limited to the following Services more particularly described in the attached Street Maintenance Technical Specifications Manual (Attachment A-4): Asphalt Milling Meet Compaction and MAG Standards for Asphalt Breaks Striping and Pavement Marking Preparation of surfaces and Cleaning Material Quality Control and Testing JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 114 Engineer Approved Mixes and Specifications Traffic Control Manhole/Utility Adjustments Asphalt Patch After Underground Utility Repairs Protection of Landscape and Adjacent Property Community Outreach CATEGORY 1: STREET MAINTENANCE: SEALING APPLICATION PROJECTS May include but not limited to the following Services more particularly described in the attached Street Maintenance Technical Specifications Manual (Attachment A-4): Asphalt Emulsion Seal Coat-Master seal Asphalt Emulsion Seal Coat-PMM Asphalt Emulsion Seal Coat-Slurry Seal Type II Equipment Required for Sealing Applications Preparation of Surfaces and Cleaning Protection of Landscape and Adjacent Property Community Outreach Traffic Control Quality Control Standards and Testing CATEGORY 2: General Construction Services 1) General building/site construction for various renovations, new building construction, site enhancements, painting, project management, cost estimating and miscellaneous improvements. 2) Knowledge of and compliance with current City of Buckeye adopted codes and inspection requirements. 3) Simultaneous management of Subcontractors, project schedule and budgets through all phases of construction. 4) Design Services; Design services may be required for some work assignments. The contractor shall use Arizona registered professional engineers to prepare and seal construction documents. 5) Obtain all necessary permits required to complete the project, including SWPPP, dust control and all other permitting required to successfully complete the Delivery Order. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 115 6) Show evidence of the appropriate Arizona State contractor license - Class B-01 General Commercial Contractor or equivalent prior to submitting RFQ. 7) Effectively managed on-site personnel meeting high quality and safety standards along with effective public relations 8) Provide rapid response to emergency work required. No minimum amount of work is guaranteed. The City anticipates pricing individual job orders by obtaining proposals from one or all Job Order Contractors, as outlined in the solicitation materials, as each unique project arises. Appropriate payment and performance bonding per project shall be required. CATEGORY 3: Road Construction Services 1) Ability to perform specific tasks associated with Road Construction to include: PCCP Paving, Asphalt paving, Box Culverts, ADA Ramps, Road Reconditioning, Slurry Seal, concrete Flatwork, Bank Protection, Retaining Walls, Turn Lanes, Utility Work, Bus Pullouts, neighborhood Rehabilitation, Curb and Gutter, Drainage Structures, Roadway excavation and Grading, Roadway widening, Guardrail fabrication and installation, Striping and signage, Chip Seal and Traffic Control 2) Design Services; Design services may be required for some work assignments. The contractor shall use Arizona registered professional engineers to prepare and seal construction documents. 3) Permitting; Obtain all necessary permits required to complete the project, including but not limited to; Engineering Off-site, haul route, stockpile, SWPPP, dust control, traffic control plans, MCESD approval to construct, approval of construction. 4) Maintaining traffic control according to the approved traffic control plans. 5) Simultaneous management of multiple projects with multiple disciplines. 6) Effectively managed on-site personnel meeting high quality and safety standards along with effective public relations 7) Provide rapid response to emergency work required. CATEGORY 4: Steel Building/Structure Construction Services 1) New steel building/structure constructions, renovations on existing buildings/structures, project management, cost estimating and miscellaneous improvements. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 116 2) Knowledge of and compliance with current City of Buckeye adopted codes and inspection requirements. 3) Simultaneous management of Subcontractors, project schedule and budgets through all phases of construction. 4) Design Services; Design services may be required for some work assignments. The contractor shall use Arizona registered professional engineers to prepare and seal construction documents. 5) Obtain all necessary permits required to complete the project, including SWPPP, dust control and all other permitting required to successfully complete the Delivery Order. 6) Show evidence of the appropriate Arizona State contractor license - Class B-01 General Commercial Contractor or equivalent prior to submitting RFQ. 7) Effectively managed on-site personnel meeting high quality and safety standards along with effective public relations 8) Provide rapid response to emergency work required. No minimum amount of work is guaranteed. The City anticipates pricing individual job orders by obtaining proposals from one or all Job Order Contractors, as outlined in the solicitation materials, as each unique project arises. Appropriate payment and performance bonding per project shall be required. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 117 ATTACHMENT A-3 JOC SELECTION CHECKLIST JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 118 JOC Categories RFQ No. Description Category 2024193.1 Street Maintenance Pave, Patch & Mill Projects / Sealing Application Projects 2024193.2 General Construction Services 2024193.3 Road Construction Services 2024193.4 Steel Building/Structure Construction Services JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 119 ATTACHMENT A-4 STREET MAINTENANCE TECHNICAL SPECIFICATIONS MANUAL JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 120 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 121 2.2.3.1 EQUIPMENT: ....................................................................................................................... 2 2.2.3.2 MELTER APPLICATOR: ......................................................................................................... 3 2.2.3.3 WEATHER: ........................................................................................................................... 3 2.2.3.4 CLEANING CRACKS: ............................................................................................................. 3 2.2.3.5 APPLICATION: ...................................................................................................................... 3 2.2.3.6 INSPECTION: ........................................................................................................................ 4 2.2.7.1 PATCHING MATERIAL: ........................................................................................................ 5 2.2.7.2 MATERIAL ACCEPTANCE: .................................................................................................... 5 2.2.8.1 WEATHER LIMITATIONS: ..................................................................................................... 5 2.2.8.2 EQUIPMENT: ....................................................................................................................... 5 2.2.8.3 PREPARATION OF CRACKS: ................................................................................................. 5 2.2.8.4 APPLICATION OF PATCHING MATERIAL: ............................................................................ 6 2.2.8.5 PAVEMENT CLEANING AND PROTECTION: ........................................................................ 6 2.2.9.1 BASIS OF PAYMENT: ........................................................................................................... 6 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 122 2.3.3.1 COMPOSITION OF SLURRY SEAL MIXTURES:..................................................................... 7 2.3.3.2 TRAIL APPLICATIONS: .......................................................................................................... 7 2.3.4.1 GENERAL: ............................................................................................................................ 7 2.3.4.2 SELF CONTAINED SLURRY MACHINE(S): ............................................................................. 7 2.3.4.3 SLURRY SEAL SPREADING EQUIPMENT: ............................................................................ 8 2.3.4.4 ROLLERS: ............................................................................................................................. 8 2.3.4.5 CLEANING EQUIPMENT: ..................................................................................................... 8 2.3.4.6 AUXILIARY EQUIPMENT: ..................................................................................................... 8 2.3.5.1 CLEANING: ........................................................................................................................... 8 2.3.5.2 WATER FOGGING: ............................................................................................................... 9 2.3.8.1 JOINTS: .............................................................................................................................. 10 2.3.8.2 LINES: ................................................................................................................................ 10 2.3.8.3 HAND WORK: .................................................................................................................... 10 2.3.8.4 STOCKPILE AND CLEAN UP: ............................................................................................... 10 2.3.8.5 MATERIAL TESTING: ......................................................................................................... 11 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 123 2.5.7.1 EVALUATION METHOD: ....................................................................................................18 2.5.7.2 PAYMENT ADJUSTMENT FOR RIDEABILITY: .................................................................... 19 2.5.9.1 PLACING:...........................................................................................................................21 2.5.9.2 JOINTS: .............................................................................................................................. 22 2.5.9.3 LEVELING COURSE: ............................................................................................................ 22 2.5.9.4 COMPACTION BASE AND SURFACE: ................................................................................ 22 2.5.9.5 SMOOTHNESS: .................................................................................................................. 23 2.5.9.6 ASPHALT CONCRETE OVERLAY:......................................................................................... 23 2.5.9.7 PAVEMENT FABRIC INTERLAYER: ...................................................................................... 24 2.5.10 QUALITY CONTROL: .......................................................................................................... 25 2.5.11.1 ACCEPTANCE CRITERIA:................................................................................................. 25 2.5.11.3 SURFACE TESTING: ....................................................................................................... 27 2.5.11.4 ASPHALT PAVEMENT THICKNESS: ................................................................................ 27 2.5.11.5 DENSITY: ........................................................................................................................ 28 2.5.11.6 ENGINEERING ANALYSIS (EA): ....................................................................................... 29 2.5.15.1 SCOPE: ........................................................................................................................... 31 2.5.15.2 CORE DRILLING DEVICE: ................................................................................................ 31 2.5.15.3 ACCESSORY EQUIPMENT: ............................................................................................. 31 2.5.15.4 PROCESS: ....................................................................................................................... 32 2.6.2.1 AGGREGATE: ..................................................................................................................... 33 2.6.2.2 ASPHALT-RUBBER BINDER: .............................................................................................. 33 2.6.2.3 MIX DESIGNS: .................................................................................................................... 33 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. 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Tanner Development and Construction, LLC 124 2.6.2.4 CALIBRATION FACTORS: ....................................................................................................34 2.6.4.1 LIME WATER: .................................................................................................................... 35 2.6.4.2 QUALITY CONTROL AND ACCEPTANCE: .......................................................................... 36 2.6.4.3 ADJUSTMENTS: ................................................................................................................. 36 2.8.3.1 RUBBER ASPHALT BINDER (RAB) - TERMINAL BLEND: .................................................... 37 2.8.3.2 RUBBER ASPHALT BINDER (RAB) - FIELD BLEND:.............................................................. 38 2.8.4.1 ASPHALT BINDER: .............................................................................................................. 41 2.8.4.2 STONE CHIPS: .................................................................................................................... 42 2.8.5.1 CONSTRUCTION METHODS: .............................................................................................. 42 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 125 2.8.5.2 APPLICATION OF BITUMINOUS MATERIAL:......................................................................43 2.8.5.3 APPLICATION OF COVER MATERIAL: ................................................................................. 44 2.8.5.4 ROLLING: ........................................................................................................................... 44 2.8.5.5 JOINTS: .............................................................................................................................. 45 2.8.5.6 SURPLUS AGGREGATE REMOVAL: .................................................................................... 45 2.8.5.7 DISTRIBUTING EQUIPMENT: ............................................................................................. 45 2.8.5.8 SAND BLOTTER: ................................................................................................................. 46 2.8.5.9 PERFORMANCE: ................................................................................................................ 46 2.8.5.10 CLEANUP: ...................................................................................................................... 46 2.9.4.1 GENERAL: .......................................................................................................................... 47 2.9.4.2 DISTRIBUTING EQUIPMENT: ............................................................................................. 47 2.10.4.1 GENERAL: ...................................................................................................................... 51 2.10.4.2 DISTRIBUTING EQUIPMENT: ......................................................................................... 52 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 126 2.11.4.1 GENERAL: ...................................................................................................................... 55 2.11.4.2 DISTRIBUTING EQUIPMENT: ......................................................................................... 55 2.12.4.1 GENERAL: ...................................................................................................................... 58 2.12.4.2 DISTRIBUTING EQUIPMENT: ......................................................................................... 58 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 127 2.13.4.1 GENERAL: ...................................................................................................................... 61 2.13.4.2 DISTRIBUTING EQUIPMENT: ......................................................................................... 61 2.14.2.1 STRIPING: ...................................................................................................................... 63 2.14.2.2 PAINT: ............................................................................................................................ 63 2.14.3.1 APPLICATION TOLERANCES: .......................................................................................... 64 2.14.4.1 GENERAL: ...................................................................................................................... 65 2.14.4.2 STRIPING EQUIPMENT: ................................................................................................. 65 2.14.4.3 OTHER EQUPMENT: ...................................................................................................... 65 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 128 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 129 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 130 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 131 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 132 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 133 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 134 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 135 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 136 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 137 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 138 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 139 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 140 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 141 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 142 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 143 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 144 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 145 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 146 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 147 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 148 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 149 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 150 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 151 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 152 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 153 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 154 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 155 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 156 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 157 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 158 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 159 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 160 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 161 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 162 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 163 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 164 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 165 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 166 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 167 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 168 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 169 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 170 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 171 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 172 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 173 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 174 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 175 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 176 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 177 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 178 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 179 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 180 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 181 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 182 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 183 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 184 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 185 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 186 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 187 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 188 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 189 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 190 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 191 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 192 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 193 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 194 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 195 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 196 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 197 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 198 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 199 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 200 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 201 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 202 SOLICITATION AMENDMENT RFQ NO. 2024193 CITY OF BUCKEYE AMENDMENT NO. 1 NOTE: Attach to the Request for Qualifications (RFQ). However, if the Statement of Qualifications (SOQ) has already been submitted, complete this Amendment and return for attachment to your SOQ no later than 3:00 PM, June 17, 2024. City of Buckeye Attn: Travis Stewart, Contracts Administrator Finance Department tstewart@buckeyeaz.gov SOLICITATION: RFQ NO. 2024193 REQUEST FOR QUALIFICATIONS JOB ORDER CONTRACTING (JOC) GENERAL Last Day for Questions: June 10, 2024, no later than 3:00 PM local time SOQ Due Date and Time: June 17, 2024, no later than 3:00 PM local time NOTICE TO CONTRACTORS: This Amendment forms a part of the Contract and clarifies, corrects, or modifies the original Request for Qualifications documents prepared by the City of Buckeye. The balance of the specifications and instructions remain the same. Offeror must acknowledge receipt and acceptance of this Amendment by returning the attached Solicitation Amendment Acknowledgement Page with the SOQ. Questions from Contractors: Q1. Section 4 Submittal Requirements specifies that there is a one (1) page limit for the cover letter and two (2) page limit for the financial information. Can additional pages be submitted for financial information if needed? A1. The cover letter will be limited to one (1) page. Financial information can be provided as an appendix to the submittal without any page limitations. Q2. Past Performance Questionnaire that once signed prevents the submittal from being a searchable JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 203 The Past Performance Questionnaires can also be submitted as a separate file. The solicitation has been setup to allow for submission of multiple files. Q3. Can you please clarify what you are looking for in Tab A, Item No. 2 Muliple Award JOC Contracts with Public Entities. (City, State, School District, County)? A3. This is to show any experience with Multiple Award JOC Contracts, current or previous, that a contractor may have with public entities of any kind. The contracts would not necessarily need to be of the same type of work as the category the contractor is providing a submission for. It is show contractor experience performing work under similar types of contract. Q4. Can you please clarify what you are looking for in Tab C, Item (b) Project Assignment (i.e. current project assignment, previous project assignment, or other)? A4. It would be projects the person worked on, current or previous, where the type of work performed is similar to the JOC category in question or where the person was in a similar role they would be under this JOC. Q5. Will the City of Buckeye share forecast spending by each of the defined categories for the proposed period of the JOCs? A5. The City of Buckeye has not fully defined the spending forecast for each category at this time. The potential usage has been set at $6 million a year per contractor per category with a limit of $2 million for project. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 204 PLEASE ACKNOWLEDGE YOUR FIRM S RECEIPT OF THIS AMENDMENT BY SIGNING THE ATTACHED SOLICITATION AMENDMENT ACKNOWLEDGEMENT. SOLICITATION AMENDMENT ACKNOWLEDGEMENT SOLICITATION: RFQ NO. 2024193 JOB ORDER CONTRACTING (JOC) GENERAL AMENDMENT NUMBER 1 AMENDMENT ISSUE DATE: June 3, 2024 Offeror certifies that Offeror has read, understands, and will fully and faithfully comply with this Request for Qualifications, its attachments and any referenced documents. Offeror also certifies that this SOQ was independently developed without consultation with any of the other Submitters or potential Submitters. Name of Company: _____________________________________________________ Authorized Signature: _____________________________________________________ Print Name and Title: _____________________________________________________ Date: _____________________________________________________ Address: _____________________________________________________ City, State, Zip Code: _____________________________________________________ Telephone Number: _____________________________________________________ Email Address: _____________________________________________________ JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 205 SOLICITATION AMENDMENT RFQ NO. 2024193 CITY OF BUCKEYE AMENDMENT NO. 2 NOTE: Attach to the Request for Qualifications (RFQ). However, if the Statement of Qualifications (SOQ) has already been submitted, complete this Amendment and return for attachment to your SOQ no later than 3:00 PM, June 17, 2024. City of Buckeye Attn: Travis Stewart, Contracts Administrator Finance Department tstewart@buckeyeaz.gov SOLICITATION: RFQ NO. 2024193 REQUEST FOR QUALIFICATIONS JOB ORDER CONTRACTING (JOC) GENERAL Last Day for Questions: June 10, 2024, no later than 3:00 PM local time SOQ Due Date and Time: June 17, 2024, no later than 3:00 PM local time NOTICE TO CONTRACTORS: This Amendment forms a part of the Contract and clarifies, corrects, or modifies the original Request for Qualifications documents prepared by the City of Buckeye. The balance of the specifications and instructions remain the same. Offeror must acknowledge receipt and acceptance of this Amendment by returning the attached Solicitation Amendment Acknowledgement Page with the SOQ. Questions from Contractors: Q1. In Tab A Project Experience, it states that all projects must have been completed within the last five (5) years. Does this exclude projects that are currently in progress? A1. Tab A is meant to reflect projects that have been completed. This gives the City a better idea of a Contractor s experience through the entirety of a project. Projects that are currently in progress can be listed under the current backlog/project list. Q2. Past Performance Questionnaire, it states that the project owner must fill out the form. Are we allowed to list City of Buckeye projects and project owners? A2. Yes, projects completed for the City of Buckeye reflect experience working with City personnel and at locations within the City. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 206 Q3. The proposed method of file naming the PDF results in an inability to save the file. Could we shorten the proposed file name and remove symbols that prevent saving such as / and &? A3. Yes, the original intention was for the file name to include the RFQ number and/or name and contractor name. File names can be shortened. The City is only requesting that the file name include the RFQ number and contract name, which can be abbreviated. Examples: RFQ 2024193 ABC Const, RFQ 2024194 ABC Inc, 2024193 ABC and 2024194 ABC Inc. Q4. Do you want this (Tab A: Item 2) added as its own page after my projects appear since it is a list? A4. Item 2 is intended to be examples of the types of projects that can be included in Tab A. If a contractor has projects that fit this category, then this shows experience with similar types of contracts. This should be added as another project in this section if the contractor chooses to include it as a project. Q5. Do you just need the rate for the Experience Modification Rate (EMR), or do you require a letter from our Insurance Carrier? A5. The City is only requesting the rate at this time. Q6. For showing the evidence of the appropriate Arizona State contractor license, can this be put on the Financial information page? A6. Yes, this information can be included on the cover letter or financial information page. Q7. Additional clarification on requested Financial Information: 1. Financial Capacity/Bonding/Insurance 2. Total Bonding Capacity Single Limit and Aggregate Limit 3. Current Backlog/Project List 4. Insurance Provider Rating A7. Items 1-3 have been requested to be documented/verified by your surety or insurance carrier. This can be done via a one (1) page letter from your surety or insurance carrier. Item 1 Financial Capacity/Bonding/Insurance: this item is more of a general status of your company with your surety or insurance carrier. Is the company in good standing? Are there any outstanding claims that may affect future work? Item 2 Total Bonding Capacity: this item is to provide a view of your company s current limits, single and aggregate. If there is no aggregate limit then the limit can be reflected as N/A or no limit. Item 3 Current Backlog/Project List: this information can be included as an attachment to the above information. Item 4 Insurance Provider Rating: A rating from one of the websites (e.g. A.M. Best, Moody s, S&P, etc.) is sufficient. There is no requirement to obtain anything officially from the insurance provider specifying the rating. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 207 Q8. What is the maximum total page count for the SOQ? A8. There isn t a maximum page count. There are sections that have page limitations. There are also sections where the page limit is dependent on the information provided (Tab A and B are dependent on the number of projects presented by a contractor). The City has also removed the page limitation on the Financial Information section. Q9. Are contractors required to provide a Certificate of Insurance with their submission? A9. No, the City will be requesting a Certificate of Insurance to those contractors awarded under each JOC category. *REMINDER: All questions received to date should have been addressed between Amendment No. 1 and 2. If there is a question that hasn t been addressed, please reach out to the Contracts Administrator for this solicitation. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 208 PLEASE ACKNOWLEDGE YOUR FIRM S RECEIPT OF THIS AMENDMENT BY SIGNING THE ATTACHED SOLICITATION AMENDMENT ACKNOWLEDGEMENT. SOLICITATION AMENDMENT ACKNOWLEDGEMENT SOLICITATION: RFQ NO. 2024193 JOB ORDER CONTRACTING (JOC) GENERAL AMENDMENT NUMBER 2 AMENDMENT ISSUE DATE: June 5, 2024 Offeror certifies that Offeror has read, understands, and will fully and faithfully comply with this Request for Qualifications, its attachments and any referenced documents. Offeror also certifies that this SOQ was independently developed without consultation with any of the other Submitters or potential Submitters. Name of Company: _____________________________________________________ Authorized Signature: _____________________________________________________ Print Name and Title: _____________________________________________________ Date: _____________________________________________________ Address: _____________________________________________________ City, State, Zip Code: _____________________________________________________ Telephone Number: _____________________________________________________ Email Address: _____________________________________________________ JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 209 SOLICITATION AMENDMENT RFQ NO. 2024193 CITY OF BUCKEYE AMENDMENT NO. 3 NOTE: Attach to the Request for Qualifications (RFQ). However, if the Statement of Qualifications (SOQ) has already been submitted, complete this Amendment and return for attachment to your SOQ no later than 3:00 PM, June 17, 2024. City of Buckeye Attn: Travis Stewart, Contracts Administrator Finance Department tstewart@buckeyeaz.gov SOLICITATION: RFQ NO. 2024193 REQUEST FOR QUALIFICATIONS JOB ORDER CONTRACTING (JOC) GENERAL Last Day for Questions: June 10, 2024, no later than 3:00 PM local time SOQ Due Date and Time: June 17, 2024, no later than 3:00 PM local time NOTICE TO CONTRACTORS: This Amendment forms a part of the Contract and clarifies, corrects, or modifies the original Request for Qualifications documents prepared by the City of Buckeye. The balance of the specifications and instructions remain the same. Offeror must acknowledge receipt and acceptance of this Amendment by returning the attached Solicitation Amendment Acknowledgement Page with the SOQ. Questions from Contractors: Q1. On page 6 of the RFQ for Job Order Contracting (JOC) General, you ask for a Current Backlog/Project List. Is this a list of backlog projects that are bonded? Or all backlog? A1. This is a list of all backlog projects that are bonded. Q2. I would just like confirmation that the org chart can be an 11 x 17 page? A2. Yes, Q3. Page 4 Section 2 - subsequently compete for individual Job Orders (Delivery Orders) for projects by providing a JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 210 Does this mean that ALL projects procured under this contract will be bid amongst ALL contractors holding that category of this contract? A3. No, the City has the option to award individual Job Orders through two methods. The City of Buckeye reserves the right to issue individual Job Orders (Delivery Orders) for projects either by requesting proposals from all contractors under a particular JOC category through a Delivery Order Request for Proposal (DORFP) or through direct negotiations with a contractor based off the next most qualified contractor as each project is identified and awarded. The idea is for all contractors, under each category, to have equal opportunity for projects, to the extent reasonably practicable. Q4. Page 4 Section 2 - individual Job Orders by negotiating with the contractor that scored as the most qualified under a JOC category.: A4. All submittals received in a category will be evaluated and scored by an evaluation panel after the solicitation due date. Those contractors that are awarded under a category will be identified as qualified contractors for that category and ranked based off their evaluation scores. The contractor that Q5. Page 4 Section 2 - How will the City handle this if all projects are being bid amongst all the contractors in that category and then being negotiated with the most qualified? A5. The City will select which method will be utilized to award an individual Job Order as each project is identified. Projects bid amongst all contractors in a category provide equal opportunity for all contractors to be awarded those opportunities. Projects negotiated directly with contractors based off qualifications will be awarded on a round-robin method. The initial project will be negotiated with the contractor identified as the most qualified. If negotiations are unsuccessful, the City will go to the next most qualified contractor. The process will continue until negotiations are successful or the contractor list is exhausted. If negotiations are successful with a contractor for a project, then negotiations will be initiated with the next most qualified contractor for the following project utilizing this method. This process will continue as new projects are identified. The idea is for the City to rotate projects through all contractors under a category to provide equal opportunity as practicable. Q6. If we are interested in certain tasks under a category do we note that in the cover letter or will additional categories be added? JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 211 A6. Contractors should have experience in all tasks in the categories they have interest in. If there are areas a contractor specializes in, that can be identified in the cover letter. Additional categories will not be added to this solicitation. The City may solicit additional JOC categories in the future. Q7. On page 20 of the RFQ, Category 4: Steel Building/Structure Construction Services, bullet point 1 states renovations on existing buildings/structures. Does this include non-steel structure renovations and repairs? I.e. concrete repairs to mezzanines A7. This can include renovations and repairs for non-steel buildings/structures. Depending on the type of work needed to be completed it would fall under Category 2: General Construction Services or Category 4: Steel Building/Structure Construction Services. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 212 PLEASE ACKNOWLEDGE YOUR FIRM S RECEIPT OF THIS AMENDMENT BY SIGNING THE ATTACHED SOLICITATION AMENDMENT ACKNOWLEDGEMENT. SOLICITATION AMENDMENT ACKNOWLEDGEMENT SOLICITATION: RFQ NO. 2024193 JOB ORDER CONTRACTING (JOC) GENERAL AMENDMENT NUMBER 3 AMENDMENT ISSUE DATE: June 10, 2024 Offeror certifies that Offeror has read, understands, and will fully and faithfully comply with this Request for Qualifications, its attachments and any referenced documents. Offeror also certifies that this SOQ was independently developed without consultation with any of the other Submitters or potential Submitters. Name of Company: _____________________________________________________ Authorized Signature: _____________________________________________________ Print Name and Title: _____________________________________________________ Date: _____________________________________________________ Address: _____________________________________________________ City, State, Zip Code: _____________________________________________________ Telephone Number: _____________________________________________________ Email Address: _____________________________________________________ JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 213 EXHIBIT C TO JOB ORDER CONTRACT FOR ROAD CONSTRUCTION SERVICES BETWEEN CITY OF BUCKEYE AND M. R. TANNER DEVELOPMENT AND CONSTRUCTION, LLC [INSURANCE AND BONDS] SEE FOLLOWING PAGES JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 214 INSURANCE 1. Concurrently with the execution of the Contract, the Contractor shall furnish the City of Buckeye a certificate of insurance on a standard insurance industry ACORD form. The ACORD form shall be issued by an insurance company authorized to transact business in the State of Arizona. 2. Contractor, subcontractors and subconsultants shall procure and maintain until all of their obligations have been discharged, including any warranty periods under this Contract are satisfied, insurance against claims for injury to persons or damage to property, which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees, or subcontractors. A. The insurance requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. B. The City in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that might arise out of the performance of the work under this Contract by the Contractor, his agents, representatives, employees, subcontractors or subconsultants and Contractor is free to purchase such additional insurance as may be determined necessary. C. Minimum Scope and Limits of Insurance. Contractor shall provide coverage at least as broad and with limits of liability not less than those stated below. (i) Commercial General Liability-Occurrence Form Policy shall include bodily injury, property damage, and broad form contractual liability and XCU coverage. General Aggregate $2,000,000 Products-Completed Operations Aggregate $2,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence $1,000,000 City of Buckeye shall be named as an additional insured with respect to liability arising out of the activities performed by, or on behalf of the (a) Automobile Liability- Bodily injury and property damage for any owned, hired, and non-owned vehicles used in the performance of this Contract Combined Single Limit (CSL) $1,000,000 JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 215 City of Buckeye shall be named as an additional insured with respect to liability arising out of the activities performed by, or on behalf of the Contractor hired or borrowed by the (b) Workers Compensation and Employers Liability Workers Compensation Statutory Each Accident $ 1,000,000 Disease-Each Employee $ 1,000,000 Disease-Policy Limit $ 1,000,000 The policy shall contain a waiver of subrogation against the City of Buckeye. (c) Professional Liability Each Claim $2,000,000 Annual Aggregate $2,000,000 (i) The required professional liability coverage must cover work done or to be done or on the behalf of the Contractor. (ii) In the event that professional liability insurance required by this Contract years past completion and acceptance of the Work or services required by this Contract. (iii) Should the Contract include the services of design as an integral part of the work, any professional liability shall specifically delete any design-build or design-build delivery of the Project. (d)Umbrella/Excess Liability: Umbrella/Excess Liability insurance with a limit of not less than $5,000,000 per occurrence combined limit Bodily Injury and Property Damage, Automobile Liability, and Employe (e) Additional Insurance Requirements. The policies shall include, or be endorsed to include, the following provisions: (i) On insurance policies where the City of Buckeye is named as an additional insured, the City of Buckeye shall be an additional insured to the full limits of liability purchased by the Contractor even if those limits of liability are in excess of those required by this Contract. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 216 (ii) The Contractor's insurance coverage shall be primary insurance and non- contributory with respect to all other available sources. (iii) Coverage provided by the Contractor shall not be limited to the liability assumed under the indemnification provisions of this Contract. (f) certificate(s) shall include all subcontractors as additional insureds under its policies or subcontractors shall maintain separate insurance as determined by the Contractor, however, subcontractor's limits of liability shall not be less than $1,000,000 per occurrence / $2,000,000 aggregate shall be appropriate to cover all of its work performed herein. (g) Notice of Cancellation. Each insurance policy required by the insurance provisions of this Contract shall provide the required coverage and shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice has been given, by certified mail, return receipt requested to: William Kauppi Chief Financial Officer, Finance City of Buckeye 530 East Monroe Avenue Buckeye, Arizona 85326 (h) Acceptability of Insurers. Insurance is to be placed with insurers duly licensed or of no less than A -. The City in no way warrants that the above required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency. (i) Verification of Coverage: (i) Contractor shall furnish the City Certificates of Insurance (ACORD form or equivalent approved by the City) and with original endorsements effecting coverage as required by this Contract. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Any policy endorsements that restrict or limit coverages shall be clearly noted on the certificate of insurance. (ii)All certificates and endorsements are to be received and approved by the City before work commences. Each insurance policy required by this Contract must be in effect at or prior to the earlier of commencement of work under this Contract or the signing of this Contract and remain in effect for the duration of the Project. Failure to JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 217 maintain the insurance policies as required by this Contract or to provide evidence of renewal is a material breach of contract. (iii)All certificates of insurance required by this Contract shall be sent directly to the City of Buckeye, Contracts Manager. The contract number and project description shall be included on the Certificates of Insurance. The City reserves the right to require complete, certified copies of all insurance policies required by this Contract, at any time. (j) Approval. Any modification or variation from the insurance requirements in this Contract shall be approved by the City, whose decision shall be final. Such action will not require a formal contract amendment, but may be made by administrative action. (k) Approval, disapproval or failure to act by the City regarding any insurance supplied by Contractor or its Subcontractors shall not relieve Contractor of full responsibility or liability for damages, errors, omissions or accidents as set forth in this Contract. Neither the bankruptcy or insolvency of Contractor's insurer nor any denial of liability by Contractor's insurer shall exonerate Contractor from the liability or responsibility of Contractor set forth in this Contract. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 218 BONDS Bonds and Other Performance Security. Contractor shall provide the following performance bond and labor and material payment bond: 1. Prior to execution of the each Contract for construction services, the Contractor must provide a performance bond and a labor and materials bond, each in an amount equal to the amount of the initial Contract Price designated for construction services set forth in the Contract. a. Each such bond shall be executed by a surety company or companies holding a Certificate of Authority to transact surety business in the State of Arizona, issued by the City of the Arizona Department of Insurance. A copy of the Certificate of Authority shall accompany the bonds. The Certificate shall have been issued or updated within two years prior to the execution of the Contract. b. The bonds shall be made payable and acceptable to the City of Buckeye. c. The bonds shall be written or countersigned by an authorized representative of the surety who is either a resident of the state of Arizona or whose principal office is maintained in this state, as by law required, and the bonds shall have attached thereto a certified copy of Power of Attorney of the signing official. If one Power of Attorney is submitted, it shall be for twice the total Contract amount. If two Powers of Attorney are submitted, each shall be for the total Contract amount. Personal or individual bonds are not acceptable. 2. Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a copy of the bonds or shall permit a copy to be made. 3. All bonds submitted for this project shall be provided by a company which has been rated "A- or better" by the A.M. Best Company. JOC - General Category 3: Road Construction Services Contract No. 2025094 M. R. Tanner Development and Construction, LLC 219 #1 ITEM 10. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 11/19/2024 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 AND POSSIBLE ACTION: Approving Amendment One to Professional Services Agreement 2022-075 with M.R. Tanner Development and Construction, LLC for Pavement Preservation Treatments and necessary budget transfers. Staff Summary (Background) Background: The Public Works Department is dedicated to enhancing and maintaining the town’s roadway network, which currently encompasses approximately 162 lane miles and totals 390 centerline miles of roads, comprising over 3.6 million square yards of asphalt. The estimated cost for complete replacement of a major roadway is between $3.2 million and $3.5 million per mile. Given these significant reconstruction costs, it is crucial to maintain and extend the life of existing pavement surfaces for as long as possible. Implementing seal coating at the appropriate time can save substantial funds and effectively utilize the Town's limited street maintenance budget. On May 17, 2022, the Town Council approved Professional Services Agreement 2022-075 with M.R. Tanner Development and Construction, LLC, for Pavement Preservation services amounting to $1,400,000 for specific areas, including the Shea Boulevard Pavement Area (from Scottsdale to Maricopa County) and the Saguaro Boulevard Pavement Area (from Shea Boulevard to Fountain Hills Boulevard). During the May 17, 2022, council meeting, the Public Works Director informed the couilc that the section of Saguaro Boulevard between Fountain Hills Boulevard and Colony Drive would not receive treatment until the completion of the Federally-funded Sidewalk Gap project on that segment of Saguaro Boulevard. As of now, the majority of the federally funded sidewalk gap infill project on Saguaro Boulevard has been completed, allowing the pavement preservation work to proceed. The cost for the PMRE Pavement Preservation and Mill/Overlay work is $344,775, which includes a 15% owner’s allowance. To fund this work, a budget authority transfer is required from the unspent portion of Capital Project S6058 (Shea Boulevard Widening Palisades) in the amount of $344,775.    Related Ordinance, Policy or Guiding Principle Pavement Management Best Practices. Risk Analysis Failure to approve the contract for Pavement Preservation will delay projects and result in higher Failure to approve the contract for Pavement Preservation will delay projects and result in higher pricing and further deterioration of Saguaro Blvd.   Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends the approval of Amendment One to Professional Services Agreement 2022-075 with M. R. Tanner Development and Construction, Inc. for Pavement Preservation Treatments. SUGGESTED MOTION MOVE to recommend the approval of Amendment One to Professional Services Agreement 2022-075 with M. R. Tanner Development and Construction, Inc. for Pavement Preservation Treatments, increasing the aggregate amount by $344,775 and the necessary budget transfers. Fiscal Impact Fiscal Impact:$344,775 Budget Reference:FY 25 Funding Source:Streets fund  If Multiple Funds utilized, list here:Budget Transfer from Capital Projects Fund Budgeted: if No, attach Budget Adjustment Form:Yes   Fiscal Impact: Budget Reference: Funding Source: If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments MR Tanner 2022-075.1  Exhibit B  Town of Fountain Hills Saguaro Blvd  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 11/06/2024 05:39 PM Town Attorney Aaron D. Arnson 11/07/2024 09:09 AM Town Manager Rachael Goodwin 11/12/2024 05:50 PM Form Started By: Justin Weldy Started On: 11/06/2024 04:48 PM Final Approval Date: 11/12/2024  1 Contract No. 2022-075.1 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND M.R. TANNER DEVELOPMENT AND CONSTRUCTION, INC. THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this “First Amendment”) is effective retroactively from June 1, 2023, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and M. R. Tanner Development and Construction, Inc., a(n) Arizona limited liability company (the “Consultant”). RECITALS A. The Town and the Consultant entered into a Professional Services Agreement (the “Agreement”), dated May 17, 2022, for the Consultant to provide “Pavement Maintenance at Saguaro and Shae Blvd.” (the “Services”) after a Town solicitation (2021-RFP-014). All capitalized terms not otherwise defined in this First Amendment have the same meanings as contained in the Agreement. B. The Town has determined that it is necessary to extend the Agreement with the Consultant for Services. C. The Town and the Consultant desire to enter this First Amendment to amend the Agreement to (i) extend the term of the Agreement and (ii) provide for compensation to the Consultant for the Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Consultant hereby agree as follows: 1. Term of Agreement. The term of the Agreement is hereby extended until June 30, 2025, unless terminated as otherwise provided pursuant to the terms and conditions of the Agreement. 2. Compensation. The Town shall pay Consultant an aggregate amount not to exceed $1,699,768.99. This is an increase of the contract amount by $299,768.99 (of which sum includes an owners’ allowance of twenty-five percent [25%] or $76,650) for the Services (see Exhibit B); Exhibit B is hereby incorporated by this reference. 2 3. Effect of Amendment. In all other respects, the Agreement is affirmed and ratified and, except as expressly modified herein, all terms and conditions of the Agreement shall remain in full force and effect. 4. Non-Default. By executing this First Amendment, the Consultant affirmatively asserts that (i) the Town is not currently in default, nor has it been in default at any time prior to this First Amendment, under any of the terms or conditions of the Agreement and (ii) any and all claims, known and unknown, relating to the Agreement and existing on or before the date of this First Amendment are forever waived. 5. China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 6. Conflict of Interest. This First Amendment and the Agreement may be cancelled by the Town pursuant to Ariz. Rev. Stat. § 38-511. [SIGNATURES ON FOLLOWING PAGES] EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND M.R. TANNER DEVELOPMENT & CONSTRUCTION, LLC [Consultant’s Cost Based on RFP Unit Pricing] See following pages. CONTRACT/ PROPOSAL CLASS A LICENSE NO. 111576-A An Equal Opportunity Employer 1327 West San Pedro Street · Gilbert, Arizona 85233-2403 Phone (480) 633-8500 · Fax (480) 633-8111 Date 11/13/2024 To Town of Fountain Hills Job Name Saguaro Blvd Location Saguaro Blvd from Colony to Fountain Hills Blvd Architect- Engineer N/A Attention Justin Weldy Plans Dated N/A Soil Engineer N/A Report Date N/A We propose to furnish all labor and material necessary to complete the work as described per our unit prices. All work will be done in accordance with the plans, specifications, and per the requirements of the governing municipality. Thank you for the opportunity of submitting a bid on the above- described job. NO.QUANTITY UNIT UNIT PRICE AMOUNT CRACKSEAL 15,763.00 LF 0.33 5,201.79 PMRE 87,911.00 SY 1.10 96,702.10 4" EQUIV PAINT 49,510.00 LF 0.16 7,921.60 4" EQUIV EXTRUDED THERMO 42,490.00 LF 0.50 21,245.00 4" EQUIV TRANSVERSE THERMO 15,210.00 LF 0.85 12,928.50 PREFORMED TAPE ARROW SYMBOL 18.00 EA 160.00 2,880.00 PREFORMED TAPE BIKE GUY + ARROW 7.00 EA 220.00 1,540.00 REFLECTIVE PAVEMENT MARKERS 970.00 EA 3.00 2,910.00 CERAMIC MARKERS 325.00 EA 3.00 975.00 OFF-DUTY POLICE OFFICER 391.00 HR 90.00 35,190.00 TRAFFIC CONTROL 9.50 DA 3,750.00 35,625.00 OWNERS ALLOWANCE 1.00 LS 76,650.00 76,650.00 Total Bid 299,768.99$ Payment to be based on actual field-measured quantities unless otherwise stated. 90% monthly progress draws on completed work with the final 10% due 30 days after final completion and acceptance of our work. Interest will be charged at the rate of 1.5% per month on all late balances. Any and all costs or fees necessarily incurred in the pursuit of the collection of this account will be paid by the owner. The above prices, specifications and conditions on the front and back of this proposal are satisfactory and are hereby accepted, giving M.R. TANNER CONSTRUCTION authorization to complete work as specified. Funding verification and further payment term conditions to be established prior to execution of contract agreement or commencement of work. M. R. TANNER CONSTRUCTION Firm Name:____________________________ By: Accepted by:____________________________ Title:Title:____________________________ Date:Date: ____________________________ ACCEPTANCE OF CONTRACT/ PROPOSAL ITEM DESCRIBED PROPOSAL OF WORK TO BE FURNISHED CONTRACT/ PROPOSAL CLASS A LICENSE NO. 111576-A An Equal Opportunity Employer 1327 West San Pedro Street · Gilbert, Arizona 85233-2403 Phone (480) 633-8500 · Fax (480) 633-8111 Date 11/13/2024 To Town of Fountain Hills Job Name Saguaro Blvd Location Saguaro Blvd from Colony to Fountain Hills Blvd Architect- Engineer N/A Attention Justin Weldy Plans Dated N/A Soil Engineer N/A Report Date N/A We propose to furnish all labor and material necessary to complete the work as described per our unit prices. All work will be done in accordance with the plans, specifications, and per the requirements of the governing municipality. Thank you for the opportunity of submitting a bid on the above- described job. NO.QUANTITY UNIT UNIT PRICE AMOUNT CRACKSEAL 15,763.00 LF 0.33 5,201.79 PMRE 87,911.00 SY 1.10 96,702.10 4" EQUIV PAINT 49,510.00 LF 0.16 7,921.60 4" EQUIV EXTRUDED THERMO 42,490.00 LF 0.50 21,245.00 4" EQUIV TRANSVERSE THERMO 15,210.00 LF 0.85 12,928.50 PREFORMED TAPE ARROW SYMBOL 18.00 EA 160.00 2,880.00 PREFORMED TAPE BIKE GUY + ARROW 7.00 EA 220.00 1,540.00 REFLECTIVE PAVEMENT MARKERS 970.00 EA 3.00 2,910.00 CERAMIC MARKERS 325.00 EA 3.00 975.00 OFF-DUTY POLICE OFFICER 391.00 HR 90.00 35,190.00 TRAFFIC CONTROL 9.50 DA 3,750.00 35,625.00 OWNERS ALLOWANCE 1.00 LS 76,650.00 76,650.00 Total Bid 299,768.99$ Payment to be based on actual field-measured quantities unless otherwise stated. 90% monthly progress draws on completed work with the final 10% due 30 days after final completion and acceptance of our work. Interest will be charged at the rate of 1.5% per month on all late balances. Any and all costs or fees necessarily incurred in the pursuit of the collection of this account will be paid by the owner. The above prices, specifications and conditions on the front and back of this proposal are satisfactory and are hereby accepted, giving M.R. TANNER CONSTRUCTION authorization to complete work as specified. Funding verification and further payment term conditions to be established prior to execution of contract agreement or commencement of work. M. R. TANNER CONSTRUCTION Firm Name:____________________________ By: Accepted by:____________________________ Title:Title:____________________________ Date:Date: ____________________________ ACCEPTANCE OF CONTRACT/ PROPOSAL ITEM DESCRIBED PROPOSAL OF WORK TO BE FURNISHED