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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
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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
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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
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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
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Financial Section
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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.
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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
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Management’s Discussion and Analysis (MD&A)
(Required Supplementary Information)
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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.
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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 $49.9 million.
Additional information on the Town’s long-term liabilities can be found in Note 6 in the notes to the
financial statements.
Contacting the Town’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors
with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the
resources it receives. If you have questions about this report or need additional information, contact
the Finance Division, Town of Fountain Hills, 16705 East Avenue of the Fountains, Fountain Hills,
Arizona 85268 or visit our website at www.fountainhillsaz.gov.
Page 32
Basic Financial Statements
Page 33
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Page 34
Government-Wide Financial Statements
Page 35
Governmental
Activities
Assets
Current assets:
Cash and investments 49,708,197$
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
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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
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Page 72
Combining and Individual
Fund Financial Statements and Schedules
Page 73
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Page 74
Governmental Funds
Page 75
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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Transaction Type
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Sent At
05/22/2024 17:13 EDT
Executed At
05/22/2024 20:41 EDT
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SIGNERS
SIGNER E-SIGNATURE EVENTS
Name
Paul Soldinger
Email
psoldinger@fountainhillsaz.gov
Components
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Status
signed
Multi-factor Digital Fingerprint Checksum
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Typed Signature
Signature Reference ID
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Viewed At
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Signed At
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AUDITS
TIMESTAMP AUDIT
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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
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Transaction Type
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Sent At
10/30/2024 18:04 EDT
Executed At
10/31/2024 13:34 EDT
Identity Method
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Distribution Method
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GRL Fountain Hills Town 24
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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
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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.
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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
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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
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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
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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.
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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,
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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
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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
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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
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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?
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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
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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,
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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
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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
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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
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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.
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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
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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.
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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
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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
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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.
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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?
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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
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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
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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?
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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?
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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
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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
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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.
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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.
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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.
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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
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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.
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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
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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
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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.
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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
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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
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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
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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
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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
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OCTOBER 15, 2024 TOWN COUNCIL MEETING MINUTES
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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,
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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.
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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
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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?
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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
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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.
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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
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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
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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
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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
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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
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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
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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?
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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.
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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
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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
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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
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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.
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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
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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
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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?
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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?
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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.
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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 --
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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.
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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.
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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.
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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
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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,
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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
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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.
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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
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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.
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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?
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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.
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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
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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
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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.
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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
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A24-000015
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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.
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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:
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(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,
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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
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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]
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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
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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.
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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
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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
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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
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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
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Master of Urban and Regional Planning, Economic Development, University of New Orleans
Bachelor of Business Administration, Finance, University of Mississippi
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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
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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.
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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.
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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.
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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.
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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.
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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.
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§ 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.
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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.
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• 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.
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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
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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
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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
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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
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(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
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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.
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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
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JOC - General Category 3: Road Construction Services
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JOC - General Category 3: Road Construction Services
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JOC - General Category 3: Road Construction Services
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JOC - General Category 3: Road Construction Services
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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
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JOC - General Category 3: Road Construction Services
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JOC - General Category 3: Road Construction Services
Contract No. 2025094
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JOC - General Category 3: Road Construction Services
Contract No. 2025094
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JOC - General Category 3: Road Construction Services
Contract No. 2025094
M. R. Tanner Development and Construction, LLC
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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
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JOC - General Category 3: Road Construction Services
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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
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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.
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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
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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.
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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.
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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)
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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.
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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.
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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).
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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.
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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.
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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.
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ATTACHMENT A-1
PAST PERFORMANCE QUESTIONAIRE
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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.)
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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
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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
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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
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ATTACHMENT A-2
SCOPE OF WORK BY CATEGORY
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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
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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.
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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.
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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.
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ATTACHMENT A-3
JOC SELECTION CHECKLIST
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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
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ATTACHMENT A-4
STREET MAINTENANCE TECHNICAL
SPECIFICATIONS MANUAL
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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?
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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.
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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
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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
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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.
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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
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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.
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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.
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#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