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HomeMy WebLinkAbout2026.0505.TCRS NOTICE OF REGULAR MEETING OF THE TOWN COUNCIL Mayor Gerry M. Friedel Vice Mayor Gayle Earle Councilmember Peggy McMahon Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn Councilmember Hannah Larrabee Councilmember Rick Watts TIME: WHEN: WHERE: 5:30 PM - REGULAR MEETING DOORS OPEN 15 MINUTES PRIOR TO THE START OF THE MEETING TUESDAY, MAY 5, 2026 FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, ARIZONA 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. 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. PARTICIPATION IN PUBLIC MEETINGS Request to Comment Cards - To speak or submit written comments, a Request to Comment card is required. Cards must be completed and submitted to the Town Clerk before the meeting begins. Late or incomplete cards will not be accepted. A separate card is required for each agenda item. Agenda Items (Consent or Regular) - Request to Comment cards must include the agenda item number, whether the speaker is FOR or AGAINST the item, and whether the individual wishes to speak or submit written comments. Online Request to Comment cards may be submitted for regular agenda items only to either provide written comments or request to speak at the meeting. Online submissions must be received by 12:00 PM the day before the meeting at: https://www.fountainhillsaz.gov/publiccomment. Online comments are shared with the Town Council. Call to the Public requests are accepted in person only. Request to Comment cards must be submitted prior to the meeting commencing. Online submissions are not accepted for Call to the Public. Speaking Rules - Speakers may speak only when recognized by the Presiding Officer and are limited to three (3) minutes. All comments must be directed through the Presiding Officer, not to individual Councilmembers or staff. Request to Comment cards and submitted information are public records subject to public disclosure. 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). Meeting Packet Page 1 of 120 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. INVOCATION a. Provided by: Raygen Mitchell, Pastor of Scottsdale Bible Church 3. ROLL CALL 4. STATEMENT OF PARTICIPATION Anyone wishing to address the Council regarding items listed on the agenda or during Call to the Public must completely fill out a Request to Comment card located in the back of the Council Chambers and hand it to the Town Clerk prior to the start of the meeting. Once the meeting has started, late requests to speak cannot be accepted. When your name is called, please approach the podium, speak into the microphone, and state your name and if you are a resident for the public record. Comments may not exceed three minutes. It is the policy of the Mayor and Council not to 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. To avoid disruption of the meeting, to maintain decorum, and provide for an equal and uninterrupted presentation, applause is not permitted, except during Proclamations, Awards, and Recognitions. All meeting participants must maintain proper decorum as specified in Section 6 of the Council Rules of Procedure. 5. SUMMARY OF CURRENT EVENTS BY TOWN MANAGER 6. PROCLAMATIONS, AWARDS, AND RECOGNITIONS a. Proclamation for Rededicate250 b. Proclamation for National Day of Prayer c. Proclamation for the 57th Annual Professional Municipal Clerk Week 7. PRESENTATIONS a. Employee Safety Update b. Public Works update on wash maintenance. 8. CONSENT AGENDA All items listed are considered to be routine, non-controversial matters and will be enacted by one motion and vote 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 item will be removed from the Consent Agenda and considered as the first item on the Regular Agenda. The remaining items on the Consent Agenda will be enacted by one motion and vote of the Council. a. CONSIDERATION AND POSSIBLE ACTION: Approving the minutes of the Town Council Regular Meeting March 17, 2026. b. CONSIDERATION AND POSSIBLE ACTION: Approving a CUT/FILL WAIVER request to permit an area of approximately 2,885 square feet to exceed the maximum 10-foot visible FILL allowance up to approximately 15 feet deep maximum fills for the development of the back patio area for the property on 15409 E. Richwood Ave. 9. REGULAR AGENDA Meeting Packet Page 2 of 120 a. CONSIDERATION AND POSSIBLE ACTION: Relating to the purchasing a Fire Department Replacement Brush Truck. b. CONSIDERATION AND POSSIBLE ACTION: Related to the FY26 Pavement Management projects. c. CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-09, setting forth the Tentative Budget and establishing the maximum budget amount for the Town of Fountain Hills for the fiscal year beginning July 1, 2026, and ending June 30, 2027. d. CONSIDERATION AND POSSIBLE ACTION: Related to any item included in the Arizona Cities and Town's Weekly Legislative Bulletin or relating to any action proposed or pending before the State Legislature. 10. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01, or as prescribed by state law. 11. COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER Members of the Council may (1) request the Town Manager follow-up on matters raised at that meeting; (2) request one two-minute response to directed criticism raised any portion of the meeting; (3) 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 Dated this 30 day of April, 2026. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call (480) 816-5100 (voice) or AZRelay 7-1-1 the Thursday prior to the meeting to request reasonable accommodation. Meeting Packet Page 3 of 120 Meeting Packet Page 4 of 120 Meeting Packet Page 5 of 120 Meeting Packet Page 6 of 120 May 5, 2026 Workplace Safety David Trimble, Deputy Town Manager / Administrative Services Director Meeting Packet Page 7 of 120 Why This is Coming Forward 2 Council Follow -up At the January 20, 2026 Council meeting, Councilmember Watts asked for follow-up on workplace safety and referred to OSHA’s top 10 violations. What Staff Reviewed Staff reviewed the injury record, OSHA’s top 10 violations, Town work, and the safety measures, training, and oversight in place. What the Records Show The records reflect only a small number of isolated injuries and no repeated pattern tied to one OSHA category. The next slide covers the injury record and OSHA context. Meeting Packet Page 8 of 120 OSHA and Injury Trend Context 3 11 Days-Away From Work Cases Over the Prior 12 Years In most years, the Town had either zero days-away cases or only one. Underlying records did not show a repeated pattern tied to one OSHA category or any other recurring type of incident. Workers’ Compensation Staff also reviewed recent workers’ compensation pricing information through the Town’s public risk pool. This did not sugges t a recurring problem either. Meeting Packet Page 9 of 120 Safety Topics Most Relevant to Town Operations 4 Hazard Communication Ladder Safety Lockout / Tagout Personal Protective Equipment (PPE)Eye / Face Protection Heat Exposure Respiratory Protection Fall Protection Machine Guarding Not every item on OSHA’s top 10 list applies to Town operations. Other Risks Reviewed Chainsaw use, heavy equipment operation, traffic-control exposure, bloodborne pathogens, herbicide application, and other field hazards. Meeting Packet Page 10 of 120 Town Operating Context 5 Facilities Building systems work such as HVAC, plumbing, electrical, fire alarm, security, and building automation systems. Streets, Inspection, Code Roadway maintenance, traffic-control activity, and regular field visits for inspection and code enforcement. Parks, Grounds, Storm Response Herbicide application, mowing, operating backhoes and front loaders, chainsaw use, and storm response, including street clearance and sign repair. Most Town employees are not in field positions. The Town does not directly operate utilities, sanitation, or police services.Some larger-scale mowing, tree trimming, road construction, and similar work is handled by contractors. Meeting Packet Page 11 of 120 Examples of Current Safety Measures and Training 6 Supervision and Hiring Safety starts with capable employees. Supervisors and managers bring experience, training, and judgment to day- to-day decisions. PPE and Field Measures Employees use Town-provided PPE as needed, including respiratory and eye and face protection. The Town also provides a steel-toe work boot reimbursement program. Bloodborne Pathogens The Town has a bloodborne pathogens program and uses a specialized biohazard cleanup service. Position-Specific Training In-person training has included chainsaw safety, pressure-washer safety, hands-on instruction, and supervisory direction. Herbicide applicators also receive at least 6 hours of formal refresher training each year. Heat-Safety Plans Departments and divisions are required to maintain heat-safety plans. These include allowing more breaks, modified schedules, providing unlimited cool water, providing electrolytes, and shade. Outside Review The Town receives annual loss-control visits and had an ADOSH visit in 2015. The improvements made from that visit remain in place. Meeting Packet Page 12 of 120 Training Activity and Safety Administration 7 150+ Safety Courses Available 50+ Hours of Safety Instruction Available 1,200 Approx. 1,200 Online Classes Completed in the Last 5 Years 500+ Hours of Instruction Completed Online Libraries and Assignments SafePersonnel/Vector Solutions and Safety Source are available through AMRRP at no additional cost. As those libraries have expanded, the Town has increased required safety assignments. Injury Tracking and OSHA Records The Town tracks workplace injuries. OSHA 301 reports are completed at the time of injury. Annual OSHA 300 and 300A logs and reports are compiled as required. Meeting Packet Page 13 of 120 Bottom Line 8 What Was Asked Whether the Town is doing everything it reasonably can to help protect employee safety. What the Records Show The Town has a good track record with a small number of isolated injuries across a range of activities, not a repeated pattern tied to one OSHA category. Safety Measures in Place Town employees do work with safety risks, and the Town has supervision, PPE, training, recordkeeping, heat planning, and outside review in place. Meeting Packet Page 14 of 120 Questions Meeting Packet Page 15 of 120 Background At the January 20, 2026 Town Council meeting, Councilmember Watts asked for follow-up information regarding workplace safety in the Town's non-fire operations and referenced OSHA's top 10 violations. This report reviews the injury record, OSHA’s top 10 violations, Town work, and the safety measures, training, and oversight in place. OSHA and Injury Trend Context Staff first looked at the Town's OSHA and injury records. Over the prior 12 years, staff identified 11 cases involving days away from work, with most years showing either no such case or only one. Staff also reviewed the underlying records and did not find a repeated pattern tied to one OSHA category or any other recurring type of incident. The days-away totals reflected a small number of isolated events rather than the same issue recurring. Staff also reviewed several recent years of workers' compensation pricing information through the Town's public risk pool, which was generally consistent with the injury record and did not suggest a notable or recurring claims issue. Safety Topics Most Relevant to Town Operations Not every topic on OSHA's list applies to Town operations. The ones most relevant to Town operations include hazard communication, ladder safety, lockout/tagout, personal protective equipment, eye and face protection, heat exposure, respiratory protection, fall protection, and machine guarding. Staff also looked at other risks relevant to Town operations, including chainsaw use, heavy equipment operation, traffic-control exposure, bloodborne pathogens, herbicide application, and other field hazards. Town Operating Context The Town has field and technical employees in streets, parks, facilities, building inspection, and code enforcement. Facilities work includes building systems such as HVAC, plumbing, electrical, fire alarm, security, and building automation systems. Street crews handle roadway maintenance and traffic-control activity. Building inspection and code enforcement involve regular site visits and field activity. Parks, grounds, and street maintenance also involve work such as herbicide application, mowing, operating backhoes and front loaders, chainsaw use, and storm response, including street clearance and sign repair. Most Town employees are not in field positions, and the Town does not directly operate utilities, sanitation, or police services. Some larger-scale mowing, tree trimming, road construction, and similar work is also handled by contractors. Town employees still perform work that can involve safety risks, which is why the safety measures described below are in place. Examples of Current Safety Measures and Training Workplace safety starts with the recruitment and hiring of capable employees, especially supervisors and managers who bring experience, training, and good judgment to the job. The Town relies heavily on supervisors to make sound day-to-day decisions, provide training, and help set a culture of safety. The Town supports workplace safety through field measures, training, supervision, and outside review. Employees are expected to use Town-provided personal protective equipment as needed, including Meeting Packet Page 16 of 120 respiratory protection and eye and face protection, and the Town provides a steel-toe work boot reimbursement program. The Town also has a bloodborne pathogens program for positions where occupational exposure may arise in the course of work. In addition, the Town uses a specialized biohazard cleanup service, so employees are not expected to handle bodily-fluid cleanup or similar situations beyond their training, equipment, or normal scope of work. The Town also provides position- and task-specific training. This has included in-person chainsaw safety, pressure-washer safety, hands-on instruction, and supervisory direction. Herbicide applicators also receive at least 6 hours of formal refresher training each year. Departments and divisions are also required to maintain heat-safety plans. These include more breaks, modified schedules, cool water, electrolytes, and shade. For online training, the Town uses SafePersonnel/Vector Solutions and Safety Source, both available through AMRRP, the Arizona Municipal Risk Retention Pool, at no additional cost. Together, those safety libraries provide well over 150 courses totaling more than 50 hours of safety instruction. As those libraries have expanded, the Town has increased required safety assignments. Over the last five years, employees have completed about 1,200 online classes through the Town's training systems, representing over 500 hours of instruction. Not all of those classes were safety classes, but safety training makes up a substantial share of the overall library and required assignments. The Town also maintains systems for injury tracking and OSHA recordkeeping. OSHA 301 incident reports are completed at the time of injury, and the Town compiles the annual OSHA 300 and 300A logs and reports as required. The Town's safety efforts are also supported by outside review. The Town receives annual loss-control visits through its risk pool, including reviews of facilities such as the street yard and parks maintenance areas, with recommendations used to improve safety practices and conditions. The Town also had an ADOSH visit in 2015. The improvements from that visit remain in place. Conclusion The Town has a good track record with a small number of isolated injuries across a range of activities, not a repeated pattern tied to one OSHA category. The Town has a number of safety measures in place, including supervision, PPE, training, injury tracking and OSHA recordkeeping, heat planning, and annual loss-control visits. This review also led to additional required safety training in several areas. Meeting Packet Page 17 of 120 Appendix A - OSHA Top 10 Violations, Preliminary FY 2025 Source: Preliminary FY 2025 list presented at the 2025 NSC Safety Congress & Expo. OSHA's current official all-industry webpage still posts the FY 2024 list. The preliminary FY 2025 top 10 list included the following standards: 1. Fall Protection - General Requirements (29 CFR 1926.501): 5,914 violations 2. Hazard Communication (29 CFR 1910.1200): 2,546 3. Ladders (29 CFR 1926.1053): 2,405 4. Lockout/Tagout (29 CFR 1910.147): 2,177 5. Respiratory Protection (29 CFR 1910.134): 1,953 6. Fall Protection - Training Requirements (29 CFR 1926.503): 1,907 7. Scaffolding (29 CFR 1926.451): 1,905 8. Powered Industrial Trucks (29 CFR 1910.178): 1,826 9. Eye and Face Protection (29 CFR 1926.102): 1,665 10. Machine Guarding (29 CFR 1910.212): 1,239 Meeting Packet Page 18 of 120 Presented byJustin T. Weldy, Public Works Director Town Council Meeting May 5th, 2026 Town of Fountain Hills FY26 Wash Maintenance Update Meeting Packet Page 19 of 120 2 Wash Maintenance Map Meeting Packet Page 20 of 120 3 Wash Maintenance •Town manages approximately 208 total acres of surface drainage washes •In FY26, approximately 31 acres of washes have been maintained: •Ashbrook Wash (FH Blvd to Saguaro) – 28.2 acres •Emerald Wash (Saguaro to Town Limit) – 2.6 acres •At approximately 50 tons/per acre - 1,540 tons of organic material shredded in FY26 Meeting Packet Page 21 of 120 4 Ashbrook Wash AfterBefore Meeting Packet Page 22 of 120 5 Ashbrook Wash After Before Meeting Packet Page 23 of 120 6 Emerald Wash After Before Meeting Packet Page 24 of 120 7 Emerald Wash After Before Meeting Packet Page 25 of 120 8 Emerald Wash After After Meeting Packet Page 26 of 120 9Meeting Packet Page 27 of 120 Questions Meeting Packet Page 28 of 120 ITEM 8.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration / Administrative Services Prepared by: Bev Bender, Town Clerk Staff Contact Information: Phone: 480-816-5115 Email: bbender@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving the minutes of the Town Council Regular Meeting March 17, 2026. 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 Meeting Minutes of the Town Council Regular Session of March 17, 2026, as presented. Suggested Motion MOVE TO APPROVE the Meeting Minutes of the Town Council Regular Session of March 17, 2026, as presented. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. 2026.0317.TCRCS.VERBATIM.TRANSCRIPT Meeting Packet Page 29 of 120 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL MARCH 17, 2026 A Regular Session 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 Gerry M. Friedel; Vice Mayor Gayle Earle; Councilmember Brenda J. Kalivianakis; Councilmember Rick Watts; Councilmember Hannah Larrabee Members Absent: Councilmember Peggy McMahon Staff Present: Town Manager Racheal Goodwin; Deputy Town Clerk Angela Padgett-Espiritu; Town Attorney Jennifer Wright Meeting Packet Page 30 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 1 of 31 Post-Production File Town of Fountain Hills Fountain Hills Town Council Regular Meeting Minutes March 17, 2026 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. * * * * * Meeting Packet Page 31 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 2 of 31 MAYR FRIEDEL: Please rise for the pledge of allegiance. 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 FRIEDEL: And if you choose, please remain standing for the invocation which will be presented by Carri Schneider, director of Promiseland Preschool with Christ's Church in Fountain Hills. SCHNEIDER: Good evening, Mayor and council members. Thank you for the opportunity of opening this meeting tonight. If you'd like, please join me in prayer. Heavenly father, we come before you with grateful and humble hearts. Thank you for the opportunity to live in such a beautiful community in a country where liberty and freedom reign. God, we thank you for all these servants here today who've been elected by the citizens of Fountain Hills to represent them. Lord, give them wisdom and discernment to lead them with integrity and make decisions that will honor you and make our beautiful town prosper. In Jesus name we pray. Amen. ALL: Amen. MAYOR FRIEDEL: Thank you. Town Clerk, would you please take a roll call? PADGETT-ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Present. PADGETT-ESPIRITU: Vice Mayor Earle? EARLE: Present. PADGETT-ESPIRITU: Council member Kalivianakis? KALIVIANAKIS: Here. PADGETT-ESPIRITU: Council member Watts? WATTS: Present. PADGETT-ESPIRITU: Council member Larabee? LARRABEE: Present. PADGETT-ESPIRITU: Council member McMahon? Council member Skillicorn? SKILLICORN: Here. Meeting Packet Page 32 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 3 of 31 PADGETT-ESPIRITU: We have a quorum. MAYOR FRIEDEL: Thank you. We'll move right into the report by our town manager. GOODWIN: Thank you, Mayor. Good evening, Mayor and Council, and to all of our audience out there. I have a couple of updates. I want to share a few things as we head into our busy spring season. First, happy Saint Patrick's day. I hope you guys came out and joined us for our greening of the fountain today. And thank you to everyone who came out to Irish Fest this past Saturday despite the warm temperatures. It was a great event, and we appreciate the strong community turnout. This week, our third Thursday concert series continues at Centennial Pavilion on Thursday from 6:00 to 7:30 p.m. That's after sunset, so it should be a little cooler out there. A nice way to spend the evening. We'll be featuring a band called Znora, and they have a blues and rock performance going. So it's been a great event series out there, and we hope to see you there. A couple of quick park and other updates. Our 250th anniversary sign is expected to be delivered and installed in Fountain Park next week. That will be down in the main lawn area. That is designed to be a photograph worthy, Instagrammable spotlight on our 250th, and another way to help celebrate the yearlong anniversary. Additionally, this Sunday morning from 5:00 to noon, roads around the fountain will be closed for the Mountain to Fountain Run. So we encourage residents to plan ahead there as well. Looking ahead to Saturday, March 28th -- that's not this Saturday, but the following Saturday -- we have a full day of activities planned. The morning begins at Desert Vista Park -- please note it's at Desert Vista, this is a big change -- from 9:00 to 11:00 with our annual Eggstravaganza Easter Egg Hunt. This year we're going to be combining that with our Touch-a-Truck event. The egg hunt will include more than 15,000 eggs, and they will be split into two sessions. We'll have our little hunters -- so ages 5 and under -- at 9:45 -- bless you -- and ages 6 and older at 10:15. If you're planning to be there, be on time. If you have never seen that egg hunt before, the eggs are gone in probably less than two minutes. It is Meeting Packet Page 33 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 4 of 31 madness, and it's a lot of fun, but don't be late because there won't be any left. Families will also enjoy bounce houses, crafts, and again, the return of the Touch-a- Truck, where kids can explore a variety of vehicles and meet the professionals who use them. Later that day is the Dark Sky Festival, which will take place at the community center and within the community -- the -- excuse me -- the Centennial Pavilion from 4:00 to 9:00 p.m., offering educational activities and a chance to celebrate our night skies. We encourage everyone to come out and enjoy these events. Check online for more details, and we want to remind everybody that Fountain Hills is a great place to be -- be this spring. Mayor, that's all my updates for you. MAYOR FRIEDEL: Thank you. We have a lot going on. GOODWIN: We always do. MAYOR FRIEDEL: Okay. Now we will move on to proclamations, awards, and recognitions. So we're going to start with the Veteran of the Month, and it's my distinct honor and privilege to recognize David Pappas as our Veteran of the Month. David has shared that he accepts this recognition not just for himself, but on behalf of every man and woman who has worn the uniform of the United States of America, and those who took the oath to defend our nation in times of peace and war, and who made sacrifices up -- up to and including their lives. David entered the United States Army Reserve infantry in 1963 at just 19 years old, serving until 1969 and achieving the rank of Sergeant E-5. He completed basic and advanced infantry training at Fort Dix in New Jersey, where he trained on anti-tank weapons and earned the distinction of expert shooter. He later returned annually to serve as a firing range instructor and to help train new -- new recruits. His service continued long after his military commitment ended. Nearly 30 years ago, the American Legion Post 58 operated out of a small, rented space here in Fountain Hills. Through the efforts of David Pappas and others, the post purchased the land and built the masonry shell of what is now Post 58 -- the -- the Post 58 building. A second lot Meeting Packet Page 34 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 5 of 31 was later acquired, which today serves as the patio space enjoyed by our veterans. David has been a member of Post 58 for 30 years, serving two years as second vice commander, and nine years as member at large. David, your service to our country and your continued dedication to our veterans and our community represent the very best of Fountain Hills. On behalf of the Town of Fountain Hills, it's my privilege to recognize you as our Veteran of the Month. Thank you so much for your service. Come on up, will you, please, David? PAPPAS: I want to thank everybody for this award. You know, it's really not for me. I've got a few things I can say off to the side here. Can I? MAYOR FRIEDEL: Sure. UNIDENTIFIED SPEAKER: Sure. Where do you want to start? PAPPAS: This award's not for me. UNIDENTIFIED SPEAKER: Hmm? PAPPAS: This award's not for me. UNIDENTIFIED SPEAKER: Okay. PAPPAS: All right. I got it. Well, I'll go over here. Well, anyway, I want to thank everybody for this because I hadn't planned them reading this, and I had it all -- and I worked, and worked, and worked on it until I couldn't work anymore on it, and I'd get hoarse, and everything else like that, but I'm so proud of this -- this. And I want to make it clear this award is not for me. It is for every soldier who has ever put on a uniform of the United States of America, and God bless them all. Some of them paid the ultimate price, and it's sad, but God has taken care of them because they gave up their life for our country. Thank you. UNIDENTIFIED SPEAKER: If you want to read that poem, you can. Do you want to read the poem? MAYOR FRIEDEL: Sure. UNIDENTIFIED SPEAKER: Okay. Read the poem, okay? PAPPAS: All right. UNIDENTIFIED SPEAKER: Read the poem. Meeting Packet Page 35 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 6 of 31 PAPPAS: Sorry. It's just -- MAYOR FRIEDEL: That's all right. UNIDENTIFIED SPEAKER: Because he had -- okay. It is the soldier. Go ahead. PAPPAS: This is a poem that was given to me about five years ago. It is the soldier, not the minister, who has given us freedom of religion. It is the soldier, not the reporter, who has given us freedom of the press. It is the soldier, not the poet, who has given us freedom of speech. It is the soldier, not the campus organizer, who has given us freedom to protest. It is the soldier, not the lawyer, who has given us a right to a fair trial. It is the soldier, not the politician, who has given us the right to vote. It is the soldier who salutes the flag, who serves beneath the flag, and whose coffin is draped by the flag, who allows the protesters to burn the flag. Thank you. MAYOR FRIEDEL: Thank you. And now we'll move on with the Mayor's Business Spotlight, and tonight we are spotlighting D&K Music. Today, we are proud to spotlight Kim Spence and D&K Music, a valued local business that has been providing live entertainment in Fountain Hills since 2003. Let me repeat that. Since 2003. Holy cow. For more than two decades, Kim has helped bring energy, fun, and connection to our community through live music. D&K Music doesn't just entertain. They help create experiences that make Fountain Hills special. As a local business, Kim, and Deb, and D&K Music support our restaurants, events, and gathering places by providing entertainment that brings residents and visitors together. They really do that. They do a great job of bringing people together. Their work helps strengthen our local businesses and continues to -- and contributes to the vibrant atmosphere in our community. Businesses like D&K Music play an important role in our -- supporting our local economy and enhancing the quality of our life for our residents. On behalf of the town, I would like to thank Kim and Deb for their continued investment in Fountain Hills and for sharing her talents in -- with our community for over 20 years. We encourage everyone to support D&K Music and our local businesses. Thank you Kim and Deb for helping make Fountain Hills such a wonderful place to live, work, enjoy, and Meeting Packet Page 36 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 7 of 31 entertain. Would you come on up? MAYOR FRIEDEL: Now I know -- I know you guys are used to the microphone, so here you go. SPENCE: Yeah. We'll be careful. Thank you, Mayor Friedel. Thank you, Town Council, for giving us this wonderful honor. Thank you to all of our friends that came today to support us. I'd like to add a few things. Debbie started this business way before me in 1986, and then Dom (ph.) joined us about 15 years ago, and we have just been terrific together ever since, but she was the mastermind behind it. But we enjoy working in this town. We're at the Alamo. We work at the American Legion Post 58. We work at the Elks Club -- Elks Lodge. So we're around town quite a bit. Come and see us. Thank you again. You want to say anything? UNIDENTIFIED SPEAKER: No, no, no. MAYOR FRIEDEL: Come on, Dom. How about a song? How about a quick song? Thank you guys -- thank you guys, again. Okay. So now we have a presentation. Rachael? GOODWIN: Mayor, tonight's presentation is regarding short-term rentals, STRs. STRs have been a topic of a lot of debate and conversation throughout the state. As you guys know, Arizona law prevents us from prohibiting them. We cannot prohibit them, and we have very few regulations we can apply, but those that we can include a permitting process, and Paul and his team have really taken that to heart and have made some significant strides in that process. So he's going to share an update about that. SOLDINGER: All right. Mayor, and Vice Mayor, and Council, thank you for the opportunity tonight. Like Rachael mentioned, I'm just going to do a very hopefully brief presentation on short-term rental compliance efforts the town has made over the past couple years. So regulatory requirements. Like Rachael mentioned, the town may not prohibit short- term rentals in town, but we may have a permitting process, so we do. We charge the maximum, which is $250 annually, and there are some neighbor notification Meeting Packet Page 37 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 8 of 31 requirements. They're required to provide emergency contact information to the town, liability insurance, and other safety considerations. So in November is when the ordinance was approved by the Town Council, which created a new article of Town Code that basically mirrors what state law requires and allows us to have this permitting process in place. It also allows us to deny or suspend permits for confirmed violations and things of that nature. There's also legislation going through the legislature right now to expand the ability to do that and look at a longer time frame, so that's something we're monitoring as well. So permitting and compliance efforts. Here's a timeline. In January, right after the ordinance was approved, we implemented a manual process to accept applications. It's an online electronic form, and we collected those applications, and we ended with about 105 active permits by December of 2024 when we implemented a new software. It's called Rentalscape through Deckard Technologies, and it's a permitting and compliance platform. So short-term rental owners can go to our website and apply. It takes them to the electronic form that feeds into the system. They provide us information, pay the annual fee, and upload these three documents on your screen. And it's actually an AI software that scrapes and analyzes short-term rental listings like Airbnb and Vrbo, and identifies unpermitted short-term rentals in our town, and -- and notifies us, and it also sends out warning letters to the short-term rental operators that are unpermitted. So it's really small, but that is an example of what a warning letter looks like. It's just notifying them what they're required to do. They should be following Town Code, and register with the town, register with the County, and things of that nature. So these are very automated. Staff are not involved. The letters are sent out by the vendor, and it has helped us ramp up compliance. A lot more of the unpermitted short-term rentals have actually registered with the town since then. So as you can see, we -- as of last week, we had about 210 active short-term rentals in town. 165 were permitted as of last week, a 57 percent increase since we implemented Meeting Packet Page 38 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 9 of 31 the new system last year. And so we have about 45 unpermitted short-term rentals at this time, and we're still working through that process with Code Enforcement and Development Services to try to get hopefully up to a -- close to 100 percent compliance rate with that. The system also has some other benefits. It shows you confirmed listings, confirmed bookings, and it also cross-references to reviews that renters leave on each listing. So it kind of confirms and provides additional evidence to staff that, yes, the operator is running a short-term rental. It's not permitted through the town. Not only that, it gives us some financial information. We can cross-reference to tax records and things like that. That is very helpful to the town, so I just wanted to highlight those as well. And we also have a complaints portal, and I know some residents are familiar with it. It's also on our website under Finance, Real Property Rentals. There's a link to the complaints portal where if you're having issues with a short-term rental in your neighborhood or nearby -- if there's a lot of noise, breaking town code, and things like that, residents may submit a complaint, and our Code Enforcement staff, they'll look into it, and we'll work with Code Enforcement. And so again, we have the ability to revoke or suspend permits under certain circumstances, and that gives us the ability to track them better, and work with Code Enforcement on that. So with that -- that was my update. We are continuing these efforts. We're working through the system to try to get better compliance. Code Enforcement is imposing certain civil citations as necessary. We've been working through that process, as well as the complaints process. And so with the new legislation, we'll -- we'll look at that when that is approved by the legislature. It looks like it will most likely be approved, and we'll -- we'll make updates as necessary. So with that, I'd be happy to answer any questions. MAYOR FRIEDEL: Vice Mayor? EARLE: Thank you, Mayor. What is the fee if they are found not being compliant, and how do they go about that process, or getting that money, or whatever it is you do to them? Meeting Packet Page 39 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 10 of 31 SOLDINGER: So Mayor, Vice Mayor, so Code Enforcement handles that. The range of civil citations is between $250 up to $1,000. So for example -- and we've slow rolled it. You know, we didn't even have a system in place at first. It was hard to get that in place. So once we did, and we've been giving enough warning, there have been more civil citations issued. But for example, if they're not -- if they're an unpermitted short-term rental owner, and they're not getting the permit, they've gotten warning letters and -- Code Enforcement then we'll take the steps to put a warning -- another warning letter on their door, notify them that way. So they've had -- I guess what I'm trying to say is they've had plenty of opportunities to be notified that they need to register with the town. At that point, there have been up to $1,000 citations applied to those types of short-term rental operators, so -- but it -- it ranges and it depends from $250 to $1000. Um-hum. MAYOR FRIEDEL: I think that's it. Thank you. SOLDINGER: All right. Great. Thank you. MAYOR FRIEDEL: We'll move on to the Consent A genda. Can I get a motion? KALIVIANAKIS: Motion to approve Consent Agenda. LARRABEE: Second. MAYOR FRIEDEL: We have a motion and a second. Town Clerk, roll call, please? PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Councilmember Watts? WATTS: Yes. PADGETT-ESPIRITU: Councilmember Larrabee? LARRABEE: Aye. PADGETT-ESPIRITU: Vice Mayor Earle? EARLE: Aye. PADGETT-ESPIRITU: Mayor Friedel? Meeting Packet Page 40 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 11 of 31 MAYOR FRIEDEL: Aye. PADGETT-ESPIRITU: Motion passes six to zero. MAYOR FRIEDEL: Thank you. We'll move on to our regular agenda. I'm going to open a public hearing for this with consideration and possible action relating to a Special Use Permit to allow light assembly and storage in the C-3 Zoning District. Rachael? GOODWIN: Mayor, I think you summed it up. We're going to be talking about a new business that is located over off of Colony, and John is going to walk us through that. WESLEY: Mayor, Council, good evening. Happy Saint Patrick's Day. This hopefully will go fairly quickly, but as mentioned, we're looking at a property over on Colony, just a little bit east of Saguaro, highlighted there in the blue. Chapter 12 of the Zoning Ordinance sets forth the requirements in commercial zoning districts. This particular property is zoned C-3. And in the C-3, in order to have a light assembly use, it requires approval of a Special Use Permit. The code lists a couple of requirements for that business as a precursor to consideration of the SUP. So again, here is the facility that we're referring to, 16939 East Colony, Suite 4. One of the requirements is that the assembly use occupies less than 50 percent of the floor area, and you can see here the back portion of the shop that's used for the assembly that's less than 50 percent; and that they have no hazardous materials, and that is true for this particular business. What they do is they -- they have the pieces, the frames, and the glass, and they assemble the windows based on the customer's orders. Here are some pictures they provided of the interior of their space. You can see it's a clean workspace, and what they have is no heavy machinery or -- or manufacturing type activities, just the assembly. As part of a Special Use Permit, they're required to do a citizen participation process. They did contact the adjacent businesses and property owners, and they got no concerns expressed by any of those folks; and staff has not received any calls or questions from any of the public that was notified, either by their citizen participation Meeting Packet Page 41 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 12 of 31 plan or the public notices that were sent. Section 2.02 F 1 d sets forth the criteria for consideration and approval of SUPs. And basically, is it causing any negative impacts on the surrounding properties, neighborhood, or the community? Staff was not able to identify any negative impacts from this use. This use actually got moved in -- it started sometime last year, August, September time frame. They applied for the business license. That's when we learned they were there, and -- and recognized the need for this process. So they've been operating now for several months. And again, we have not noted any concerns, and none of the adjacent businesses have expressed any concerns. So with that, Planning and Zoning Commission held their hearing on this on -- on February the 9th. They found no issues, and P&Z Commission staff do recommend approval. Any questions? WATTS: (Indiscernible) buttons. MAYOR FRIEDEL: Councilmember Watts? WATTS: You got to push your button. Hey, John. You said no hazardous materials. So no adhesives, no solvents of any kind go into the production process? WESLEY: Mayor, Councilmember, not that they've reported it anyway. I think it is just the assembly. WATTS: Okay. And is there any fire protection in the -- in the facility? Is that required by code or not for this particular application? WESLEY: So Mayor, Councilmembers, certainly the code requires fire sprinklers in most buildings. Some older ones don't have it. I'm not familiar with this building, if it has the fire sprinklers. The building official did not bring up any concerns in his review. WATTS: I was just looking at some of the photos, and none of the photos showed it on the ceiling, so I was just curious if -- if it was required. And I assume that's a fire department issue? WESLEY: It usually comes in if actually expanding, remodeling to a significant degree. Meeting Packet Page 42 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 13 of 31 Here, this is all just any tenant improvement. So there's nothing currently that would have triggered that requirement. WATTS: Thank you. MAYOR FRIEDEL: Are there any comment cards, Town Clerk? PADGETT-ESPIRITU: No, there are not. MAYOR FRIEDEL: No? Okay. Then I'm going to close the public hearing. Oh, okay. I'm going to close the public hearing, and then I'll request a motion if somebody would like to do that. SKILLICORN: Motion to approve is drafted. LARRABEE: Second. MAYOR FRIEDEL: We have a motion and a second. Can we get a roll call, please? PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember Larrabee? LARRABEE: Aye. PADGETT-ESPIRITU: Councilmember Kalivianakis? KALIVIANAKIS: Aye. PADGETT-ESPIRITU: Councilmember Watts? WATTS: Yep. PADGETT-ESPIRITU: Vice Mayor Earle? EARLE: Aye. PADGETT-ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Aye. PADGETT-ESPIRITU: Motion passes six to zero. MAYOR FRIEDEL: Thank you. We'll move on to agenda item B, which is consideration and possible action regarding Ordinance 26-09 amending the Town Code Chapter 8, Business Regulations, by adding a new Article 8-8, Community Residences. Rachael? Meeting Packet Page 43 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 14 of 31 GOODWIN: Mayor and Council, I'm going to turn this one over to John as well, and I believe Jen may have a few insights as well. This action tonight is at the request of Council. There's been several conversations about updating this chapter specifically as it relates to insurances, insurance requirements, and inspections. With that, I'll let John introduce the item and go from there. WESLEY: Thank you. Mayor and Council, as mentioned, Council directed staff to look into this issue about a year ago, and we got started on the process. Then there was some action being taken at the State level that caused us to wait and see what they did, and so it's been a little bit of a wait, but we're back now responding to the request by Council that we look for the opportunity to insert into our community residence ordinance requirements for insurance and improve our inspection requirements. As we looked at the opportunities to do that, and as the town attorney reviewed the requirements under State statute, we determined that -- well, I guess back up from there just a little bit. So currently, the regulations are in the Zoning Ordinance Section 5.13. And as we looked at what the Council was wanting to do, and looked at our regulations and State statute, it was determined that it would be better if the registration portions of our Community Residence Ordinance were located in the Town Code under business regulations. And so that's what we're doing tonight, is creating that section of the Town Code to move then those regulations to that section, as well as then addressing the provisions that Council is wanting to add to the code. So as we look at the new ordinance, so Section 8-8-1 sets forth the purpose of this section. So this is new. We didn't have this in the Zoning Ordinance. So as you look at that in -- in the ordinance, all that whole section is new, but just establishes the need and the purpose of why we're having these -- these regulations. 8-8-2 sets forth definitions. The definitions here are the same ones we have in the Zoning Ordinance, so there were no changes there from the current ordinance. Section 8-8-3 covers registration and re-registration. And so again, all this is coming over from Section 5.13 B of the Zoning Ordinance, with two exceptions. One is adding in that provision that the applicant will not -- that they will cooperate with any code Meeting Packet Page 44 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 15 of 31 violation inspections -- investigations. They will test that at the time they make their application. And then one of the items that the Council asked us to add was the insurance provisions. Several years ago, when the P&Z Commission was looking at these provisions, they did suggest to include in their draft ordinance to the Council insurance provisions, and this section that's been added is what was recommended by the Planning and Zoning Commission at that time, and so that's -- that's where the numbers come from that are in here. Then continued on in section 5.13 C. Currently, the Zoning Ordinance are the reregistration requirements, so this is in 8-8-3 of the new ordinance. Again, brought over the same reregistration provisions, but with two exceptions -- or two additions. One is that we we'll review to make sure that the operator is remaining in good standing with the code, and any code violations, and so forth, and also to maintain their insurance that was required with initial registration. And then we've also added here a Section 8-8-4 on code violations. So this, again, goes with the direction from Council that we beef up a little bit our investigations -- or inspection allowances in the code. So this does allow resident's neighbors to file complaints, but we're looking for verifiable complaints of -- of the Town Code. We're not looking for violations of the State Code because the only things that -- that are applicable are from the Town Code. If we find verifiable evidence, then Code Enforcement staff will follow up like they do with any other case, with investigating the property, potentially going to the home for an interior inspection if that's warranted by the evidence that's been provided, and then continuing on from there. And then in Section 8-8-5, Violations and Penalties. That's, again, pretty much the same as 5.13 F, but we did add one additional provision that a code violation fails to meet life safety standards, it could -- it's a additional thing that can be used to revoke a registration. I believe that is it as far as the changes. So again, the ordinance you have in front of you tonight is very much the same as what's Meeting Packet Page 45 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 16 of 31 currently in code in Section 5.13 of the Zoning Ordinance, with a few additions that have been added to address the topics raised by the Council that you want to see covered. And P&Z will be considering, at their meeting in April, an amendment to 5.13 to take those things out of the Zoning Ordinance, so then we won't have those duplicate regulations. Staff recommends approval. If you have any questions of me at this time, or the town attorney, we'll be glad to try to answer those questions. WATTS: John, two questions. One, under the -- under the insurance paragraph, I didn't see a requirement for naming the town as additional insured. I'm not sure that that's applicable, and maybe that's a question for town attorney, to make sure that we have some protection as well as additional insured. WESLEY: Mayor, Councilmember, again, this is what was recommended previously by the Planning and Zoning Commission, so that's why we brought it -- brought it forward for your consideration. That is how it's -- WATTS: Well, I'd like to, if we can, add naming the town as additional insured in the final draft. WRIGHT: I'll have to check to make sure we can legally do that. Typically, an additional insured would be where they're using town property or town facilities, or we're entering into a contract with them, but I'll check to see if we can do that. I don't think that that's what's required under our -- under the Town Code regarding short-term rentals. I'll have to see -- compare with that to see if we can do that, but what it does do is require a waiver so that they can't -- you know, the town can't be sued because, again, this isn't our property, or our -- you know, if it were -- we require the -- the additional insured when somebody uses our -- our community center because ultimately it's on our property. So I don't know that we'd have the same concerns of liability issues as the additional insured, but -- WATTS: If the waiver suffices, then I'm -- I'm fine with that. If you want to do a little more -- WRIGHT: Okay. WATTS: The other question was, I don't see a timeline for when there's a -- there's an Meeting Packet Page 46 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 17 of 31 out of compliance issue when either to vacate or to correct. Is there one somewhere else that we -- how long do they have to either vacate -- and that's under 8-8.5 [sic]. WESLEY: Right. Mayor, Councilmember, we don't have specific time frames in any of our codes for that. We work with people that are in violation to bring them into compliance. And then, you know, if they're not, then we follow up with the citations and take that through the Court procedures. So that's the typical way that would be handled. When we get to the re-registration -- which is only good for a year -- and they're not being compliant, that would be our opportunity then to cause it not to be reregistered and lose their -- their license. WATTS: Okay. Thanks. MAYOR FRIEDEL: Councilmember? KALIVIANAKIS: Thank you, Mr. Mayor. Yeah. Just a couple of questions for you, John. I'm just curious, do we have any other businesses that we require insurance for in the town? WESLEY: Mayor, Councilmember, I know the short-term rentals -- we've talked about that a couple of times this evening -- is one that does require that. Also, I believe the mobile food vendors also are required to provide proof of insurance. Those are the two I can think of. KALIVIANAKIS: So that's by code? WESLEY: Yes. KALIVIANAKIS: Okay. So some of the businesses we're requiring insurance and some were not. Would that be a fair characterization? WESLEY: Yes. KALIVIANAKIS: Okay. I have a little bit of a problem with the Equal Protection Clause of the Constitution because it's supposed -- we're supposed to treat everybody fairly, and we're not supposed to be singling out any -- any businesses for any additional scrutiny. I'm a little concerned with that. This is somewhat like a bill of attainder. The Constitution outlawed picking people to write laws about. MAYOR FRIEDEL: Excuse me one second. Town attorney? Meeting Packet Page 47 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 18 of 31 WRIGHT: Oh, I was just going to say, isn't this the question-and-answer section, not the discussion section? MAYOR FRIEDEL: Yeah. KALIVIANAKIS: I'm asking him questions. MAYOR FRIEDEL: This is discussion right now. EARLE: Nope, not discussion. KALIVIANAKIS: I'm asking him questions. MAYOR FRIEDEL: Oh, okay. KALIVIANAKIS: Okay. Thank you. So there's two sober living, 12 community residences. Generally, if we're going to rewrite an ordinance, we're going to be addressing a problem. That's why we'd go through the time, town staff, have a Council meeting, Planning & Zoning. What is the problem we are trying to cure by passing this ordinance tonight? What is the identifiable problem that we're trying to fix? What have they been doing wrong? WESLEY: Mayor, Councilmember, I'm not aware of any violations that we've had over the last couple of years, but a few complaints we have received that we have worked to address. But this came from the Council as a desire for the code amendment, so I'm not really the one to answer that question. KALIVIANAKIS: Okay. So we're not really moving the ball forward. We're just recodifying what's already been codified. I get that. Under new 88.1, Purpose, it says that this article's adopted to protect peace, health, safety. It also says that we are going to make sure that residences are operated and maintained in a manner that complies with state licensing regulations. That's in the packet. That's in the purpose. Shouldn't the State itself be making sure they're compliant -- EARLE: Point of order. KALIVIANAKIS: -- with State licensing considerations? EARLE: Point of order. Are we still in the question stage or are you just making statements here? KALIVIANAKIS: I'm asking him a quick question. Meeting Packet Page 48 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 19 of 31 EARLE: Well, it's not quick because it's been 2.5 minutes. KALIVIANAKIS: Shouldn't the State make sure it's compliant -- it's complying with State licensing regulations and not the town? Because the State does have certified inspectors that have been trained on -- on what they're doing here, and it seems like we're usurping the powers of the State. WESLEY: Mayor, do you want me to respond to the question? MAYOR FRIEDEL: Pardon me? WESLEY: Do you want me to respond to the question? MAYOR FRIEDEL: Sure. WESLEY: So Mayor, Councilmember, part of the application provision is that they submit to us their state license. So that's the part where we do check that they have followed the State requirements. Beyond that, no. We don't go in to enforce the State legislation (indiscernible). KALIVIANAKIS: I understand that in order for them to get a business license, they have to have federal, state, and local compliance. But again, this is saying that we're going to make them comply with state licensing requirements, almost like it's an affirmative duty, and I -- I don't see how we have that jurisdiction. WESLEY: In terms of having a license in order to register here. MAYOR FRIEDEL: Yeah. WESLEY: That's what that means. KALIVIANAKIS: Well, we might want to clean that language up then, because it's -- it's contradictory to the actual written language, and so I'm a little concerned about that. The $2 million and $4 million occurrence, was there an analysis or a history that we arrived at those two figures? They seem to be kind of pulled out of a hat. Was there a method to arrive at those figures? WESLEY: Mayor, Councilmember, again, back in the Planning and Zoning Commission a couple of years ago when this was discussed, one of our commissioners is in the insurance provision -- insurance industry, and he, on his analysis, recommended those numbers. Meeting Packet Page 49 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 20 of 31 KALIVIANAKIS: So an insurance agent did it? WESLEY: Yes. KALIVIANAKIS: Okay. There's also one other problem, and that is the Fair Housing Act, particularly regarding housing for individuals in recovery. Has Fair Housing Act considerations been given for this particular thing, making it more difficult for people that are seeking treatment for alcoholism and the elderly to have a group home to live in? Has there been any consideration to the Fair Housing Act? WESLEY: Mayor, Councilmember, yes. As we looked at this, we feel like these provisions are within the allowances of both state and federal law for maintaining that compliance with Fair Housing. KALIVIANAKIS: So you don't see that as a problem? WESLEY: No. KALIVIANAKIS: My other concern is how's the town going to prevent repeated or biased complaints from neighbors that will trigger unnecessary inspections? Because it seems to me that could be fraught with abuse. Just neighbors don't like neighbors, and they're going to be reporting. Of course, I realize that right now you can report a neighbor for their garbage cans being overturned. You get those all the time, but this seems to lend itself to mischief. Is there anything that you are going to do to prevent this kind of mischief, reporting these facilities to try to make their life difficult? WESLEY: Mayor, Councilmember, you're correct. We get a wide variety of complaints and occasions of neighbors picking on neighbors, and so we have a trained professional staff who -- who know how to deal with those things. And we've specifically written in the ordinance that we're looking for verifiable complaints, not just, you know, whims or -- or somebody's upset at something. So they will -- before they contact any property owners, they will investigate and see if they can verify a complaint before m oving forward. KALIVIANAKIS: But I'm sure when you send a Code Enforcement officer, you always are trying to get verified complaints, correct? WESLEY: Um-hum. Meeting Packet Page 50 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 21 of 31 KALIVIANAKIS: So does this change that standard at all? WESLEY: No. KALIVIANAKIS: Okay. My last question is -- we're going to be conducting these inspections. Are these going to be unannounced inspections that will require a warrant, or are these going to be inspections that -- they'll be noticed that we feel like you're in violation, and then on so and so date, we're going to send somebody over there to make sure you're in compliance? WESLEY: Mayor, Councilmember, these would be similar to any other inspections that we do. We see a violation, and depending upon the situation, the code officer may go knock on the door to discuss that violation with the property owner. Other times, they may send notices or post the property. So it depends upon the nature of the violation and what is necessary at the time. When we do go knock on a door, typically that's not with prior notice to the property owner. And so that may occur here, but it will be up to them. If they refuse to allow the code officer in, then we will have to just move from that point. We can't force our way in unless we were to get some kind of warrant. KALIVIANAKIS: So in other words, if somebody alleged that they're taking down a load bearing wall. And they showed up at the door, are you doing that? No, of course not. Would they have any recourse to enter the premises without a warrant to -- to determine if there was a code violation in -- in the premises? WESLEY: Mayor, Councilmember, I don't believe so, but that might be one to turn to the attorney, again, to -- to verify what would be allowed and required. WRIGHT: When they knock on the door, if they -- if the homeowner, or the property owner, or the business operator allows them to come in and inspect, they would be allowed to come in and inspect. Part of the requirement to maintain their license is that they cooperate with any investigation. So the point here is that if somebody comes and knocks on your door, and there's a verifiable complaint -- again, it can't just be some random -- so I think, going back to what you said before, sometimes our code officers go out to try to substantiate complaints that are just based off of mere allegations. This one requires substantiated Meeting Packet Page 51 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 22 of 31 allegations to begin with. So before the code officer's going to go out, there's going to need to be more than just a mere allegation. It has to be a substantiated allegation. And then, again, if they knock on the door, if the homeowner says no, you cannot come in, then yes, they'd have to go get a judicial warrant. If they see a health and safety issue that requires emergent circumstances, they have, as I'm sure they currently have, the option to call the police if there's -- you know, if they look inside and there is, like, a fire hazard that -- or something to such a great degree, you know, that they can see. Just like a police officer if they see an exigent circumstance. But generally speaking, a code officer is not a police officer. So a code officer wouldn't have that same authority to go in without a judicial warrant if the person were to say, you're not allowed to come in. KALIVIANAKIS: Yeah. WRIGHT: That answer your question? KALIVIANAKIS: Yeah, that is my question. Because again, you know, I'm afraid that somebody could -- on any one of our homes, could say, you know, we suspect there's a code violation. And they knock on my door, and they say, you know, we're going to enter your premises. Again, I would say, absolutely not, unless you get a warrant. And this almost seems -- like, almost like a criminal deal. You know, we shouldn't -- we shouldn't want inspectors from the town to have the right to enter premises, and if we don't give them the entry, then we're going to pull their business license. That doesn't seem very -- very right to me, but that's it. Thank you, John. MAYOR FRIEDEL: Do we have any public comment cards? PADGETT-ESPIRITU: Yes, we do. The town received five online comment cards, all with the position of four, and two wishing to speak. So the first one up is Larry Meyers, followed by Crystal Cavanaugh. MEYERS: Mayor, Council. I would recommend you approve this without any further discussion. This was litigated, discussed ad infinitum for the last six years. It was written by really intelligent people on our own Planning and Zoning commission. One sits on the dais right now. It was vetted through the Ninth Circuit. Meeting Packet Page 52 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 23 of 31 The Fair Housing Act has nothing to do with anything. This is about group homes subdivided into transitional and community housing. Doesn't have anything to do with sober living. It's a misnomer anyway, because the drug houses that were proliferating in this town, which was the purpose of this ordinance in the first place, were anything but sober. They were a nuisance to neighbors. They probably could be now. The previous administration stripped out the inspection provision for occupancy levels. I'm not going to repeat the same state statute that says that municipalities get to govern -- govern their own land use. I've said it about six times up here. Six years this has been going on, and I think it's time to finish the ordinance. It'll be just fine for those who comply. We have occupancy levels. We have code for the well-being of people. We're not doing health and -- health and well-being inspections, but we've got fire regulations. We're allowed to do all of this, and all of this other crap that's been brought up about the federal -- the feds already went through the Ninth Circuit. None of this has anything to do with our town ordinance. And these businesses -- these are businesses, just like any other business, and some businesses require licenses and some don't. And these just happen -- with the culmination of this ordinance, they require a license, just like a short-term rental property. So I would -- I would appreciate -- after working on this with a bunch of other citizens for the last six years and the P&Z people, I would appreciate you finishing the job tonight and approving this. I thank you for your time. Thank you. CAVANAUGH: Good evening. Crystal Cavanaugh, Fountain Hills resident. I am part of that dedicated group of citizens that have worked on this for many years, and we've had quite a journey over these years, all to protect the residents and their neighborhoods. That's all this is about. We had success in finally getting limitations on occupancy and having distance requirements between such homes. And we're talking, again, the transitional community residences and the community residence -- the longer term, which are more like the group homes, and the seniors that were referred to. This is all about land use. This is why we needed the inspection clause, because we had these requirements about occupancy, but how are we verifying that? So we reduced it Meeting Packet Page 53 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 24 of 31 to five or six, and we have no idea how many are in there. So no one is going to go knocking on the door to check on whether somebody's getting good treatment. This isn't even about that. We don't have anybody qualified who's going to go up and judge whether they're getting good treatment. But when you're supposed to have five beds or six beds? Yeah, they can verify that by going. Or if the neighbors report that they see van loads of ten people showing up to a five-person group home? Yeah, they might complain. Or if people are yelling, and hooting and hollering on their balconies, and clearly under the influence of drugs at a home that they're supposed to be getting recovery in? Yeah, that might warrant a call also. But this is all about protecting our neighborhoods. Once again, these are businesses sitting in neighborhoods, which is our biggest investment. So I appreciate that this has come back. I appreciate the majority Council. I appreciate our new attorney because our previous attorney gave us so many conflicting statements about how we couldn't do stuff, but never really helped us understand how we could do stuff. So that's why the citizens stayed on top of this, and we really appreciate you up on the dais. Thank you. MAYOR FRIEDEL: Councilmember Larrabee? LARRABEE: Thank you, Mayor. I agree this has been -- this horse has been beaten to death. So I'd like to just make a motion to approve. WATTS: Second. SKILLICORN: Am I next in line? MAYOR FRIEDEL: Yes, Councilman. SKILLICORN: Thank you, Mr. Mayor. You know, I just want to thank Director Wesley and staff for really putting this to paper. You know, this, to me, sounds like it protects neighborhoods. To me, it sounds like it protects our families. And to me, it sounds like it protects our property values. And that is the job that we're sworn to do up here, and to see this come across the finish line today is exciting to see. So thank you, staff, for putting this together. And I think this, you know, fulfills the promises that we made when we ran for this office, and I do appreciate that. Meeting Packet Page 54 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 25 of 31 And it is exciting to see that, you know, we're doing some good here, and we're fulfilling our promises. And to see that the people that live in these streets in these neighborhoods that have these homes and that frankly, a lot of these homes are not very neighborly. I like to see that these people -- these residents that are our constituents have some protections now, and I do -- I do appreciate that. The staff took a lot of arrows on this one. So I just want to say thank you, and you know, thumbs up. Give applause to you guys. So thank you very much. MAYOR FRIEDEL: Councilmember? KALIVIANAKIS: Thank you, Mr. Mayor, and I'll make it brief. I concur with the speakers. I think a lot of good work has been done regarding this issue. The distance between homes was -- was a great thing that we got passed. I was for the occupancy limits, which we passed. I was for -- well, you know, so there's been a lot of good work on this, which I do applaud. And everybody that contributed to the process, I commend you. I'm a little concerned about my questioning Director Wesley, because this ordinance that we're passing tonight has serious concerns about fairness and legality. It singles out one type of housing, community residences, and imposes burdens that no other residential use is subject to, including excessive insurance requirements and intrusive inspections triggered by neighbor complaints. Many of these homes serve individuals protected under federal law, and policies like this risk violating the Fair Housing Act by effectively discouraging their operation. We should be very careful not to adopt regulations that invite discriminatory behavior, unequal treatment, or costly litigation for the town. Thank you. MAYOR FRIEDEL: Vice Mayor? EARLE: Thank you, Mayor. I'd ask permission to ask the attorney a question. MAYOR FRIEDEL: (Indiscernible). EARLE: Could you explain to us the process of this, and how people would -- would they get grandfathered in, or how long this process will take so the -- the general public knows? WRIGHT: Just to be clear, your question is for the existing businesses when -- okay. So Meeting Packet Page 55 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 26 of 31 there are -- so the way that the -- okay. Let me back up. Right now, this -- many -- much of what's in this Town Code mirrors the -- or in this ordinance mirrors the -- the zoning code. And under the zoning code, the businesses that existed prior to that zoning code being implemented were grandfathered, have nonconforming use policies. Once that zoning provision is taken out, then the businesses that -- once -- once the -- these provisions about the registration are taken out and put into business licensing, then those companies that exist now will have to register their business. Now the two -- I think there's -- my understanding is there's a couple, Director Wesley, that are operating under the new Town Code; is that correct? WESLEY: That's correct. WRIGHT: So the two new businesses that -- or two businesses that are currently operating under the existing Town Code, for them, when this goes into effect in 30 days, then they would be subject to these regulations, but you can't just overnight require them to obtain insurance a nd to comply. We'd have to send out notices. And I think -- I don't know if Director Wesley would want to talk more on how you'd send out notices, and the timelines that you'd -- you'd provide, but that would all come from Development Services saying what the -- you know, what the new requirements are, and then they'd have a period of time to comply, but -- WESLEY: Yes. Mayor, Vice Mayor, I'm not sure if you need much more detail on that. One piece I would add is because it is part of, also, business regulations, we'll be working with finance in terms of the business licenses and getting those updated, and given a timeline to get that done over the next, you know, 60 to 90 days. EARLE: Okay. Thank you. MAYOR FRIEDEL: We have a motion and a second. Can we get a roll call, please? PADGETT-ESPIRITU: Councilmember Watts? WATTS: Aye. PADGETT-ESPIRITU: Councilmember Skillicorn? SKILLICORN: Yes. PADGETT-ESPIRITU: Councilmember Kalivianakis? Meeting Packet Page 56 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 27 of 31 KALIVIANAKIS: Nay. PADGETT-ESPIRITU: Councilmember Larrabee? LARRABEE: Aye. PADGETT-ESPIRITU: Vice Mayor Earle? EARLE: Aye. PADGETT-ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Aye. PADGETT-ESPIRITU: Motion passes five to one. MAYOR FRIEDEL: Thank you. Okay. Moving on to item C, possible action related to any of the Arizona Cities and Town's Weekly Legislative Bulletin. Does anybody have anything they want to discuss on that? Councilman Skillicorn? SKILLICORN: Thank you, Mr. Mayor. I just wanted to say that there was actually a new representative sworn in today for our area. So we actually have a new state representative, and actually he texted me during the meeting. So yeah, we have a new person that we can -- we can -- we can lean on to do our bidding. MAYOR FRIEDEL: Thank you. Anybody else? Okay. Then we'll move on to our call to the public. Town Clerk, do we have any speakers? PADGETT-ESPIRITU: Yes, we do. We have two. The first one is -- and I apologize if I mispronounce your name, Mrs. Cora Karolyi [sic]. CARALDI: I am Madhuram Caraldi (ph.). Thanks for your time. I am a Fountain Hill resident from 2010. So I raised my kids here. I wanted to raise my grandkids. So everything wrong in this town is so painful to me. The main reason I'm here is it's been extremely stressful -- really extremely stressful. Every single minute, daytime, nighttime, weekdays, weekends, above the fountain is fly private jets and helicopters. So we had no this problem before. This has been last couple of months. It's possible to avoid residential area. They can fly above the Rio Verde River or above the McDowell mountains. Meeting Packet Page 57 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 28 of 31 So it's been really, really extremely stressful, extremely danger in case of crash. They can crash to any houses, above my house -- above any houses. So two weeks ago, a small airplane crashed in -- in Phoenix somewhere in house. So this problem needs to be -- to be -- to be stopped. So we have to find -- we have to find a way, so not just sending them the notice. I'm sure most of them they come from the Mesa City's airport, so we have to find a way to stop them. A group of us maybe to -- to go to meet the management to -- to -- to explain. So it's been really, really stressful and really dangerous. So I have degree in biology. I know the most stressful thing is the noises -- high noises, so many other reason. And also, it's hard to run a town. Thanks for your service, for your mission, but -- so more bigger the town, more harder. So together we can do more easier. So let's see how can we -- can we stop this problem? So thanks anyway. PADGETT-ESPIRITU: Next up, we have Susan DeGennaro. DEGENNARO: Thank you, Mayor. Thank you, Council. Susan DeGennaro, seven-year resident of Fountain Hills. I am the chair of the silent auction for the Dark Sky Festival, so I'd like to thank Rachael for mentioning the festival on the 28th. I wanted to thank the council for continuing to support our town's dark sky description, designation, and the festival itself. I've worked with local businesses, local artists, local entrepreneurs to fill the auction with a variety of items to highlight our town and all it has to offer. The auction is what keeps our festival free. So even if you can't go to the festival, we ask that you please go and check out our auction. It is live now. And were you to do so, you can do that by going -- texting 26 -- 26darksky to 76278. Did y'all catch that? 26darksky, all one word. 26darksky to 76278. You can also go to fhdarksky.com. That is our festival website -- or that is the preservation society's website, and on there will be all the information about the festival. I'd just like, again, to say a big thank you to everyone who makes the events in this town possible. Thank you. Hope to see y'all on the 28th. MAYOR FRIEDEL: Thank you. Any other speakers? No? Okay. Thank you. Meeting Packet Page 58 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 29 of 31 Now we'll move on to council discussion and direction to the town manager. Does anybody have anything? Rachael, in the call to the public, the gentleman was talking about planes and helicopters over the fountain and that. Do you want to -- we talked about that last week. There's been a lot of -- a lot of activity over the fountain because they're shooting videos and stuff. Do you want to expand on that a little bit? GOODWIN: Well, I think if I understood the speaker correctly, it's the noise of the helicopters and the -- the frequency of what's going on over residential areas. And it is my understanding -- and he's correct, that they're -- a lot of that originates out of Mesa field. There are a number of flight schools. It used to be two or three flight schools. It has now -- you know, it has grown to be six or seven flight schools. So that increases the number of flights. We have been in touch with the flight school. We have been in touch with the City of Mesa requesting some considerations. And unfortunately, their cooperation was limited and stated that -- simply that they have the right to operate in that airspace. So unfortunately, we do not have a lot of leverage in that space and in how to do that, but perhaps it would be worth having further conversation, either with this body or perhaps with the attorney, to see if there's more leverage or more ways we can explore ideas there and how we can hopefully curb that, because it's not the first time we've heard that complaint. MAYOR FRIEDEL: And I know you and I met with a lady, and we actually worked on that about a year -- year and a half ago. Councilman Watts? WATTS: So the -- the correct agency to talk to, though, is the Flight Safety Standard Office out of Scottsdale. GOODWIN: Correct. We've gone through that path as well. WATTS: Okay. And the FAA has governance, and that's the problem, because the flight paths are all dictated by the FAA. GOODWIN: Yes. Meeting Packet Page 59 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 30 of 31 WATTS: So the flight schools, they use that as a landmark, and it's unfortunate because they do send their student pilots out. They have to be at specific altitudes. But that is a known flight path, and there's a practice area just north of here -- just north of the McDowells just to -- to the northeast. GOODWIN: Yes. WATTS: So you're not going to get them to change it, but I would make noise with -- with what's called the FSDO, and they may be able to influence the FAA. GOODWIN: And I can hear our town attorney next to me reminding us this is not an agendized item. So if we want to have more conversation or direction on this, perhaps we would like to see this on a future agenda. MAYOR FRIEDEL: Speaking of that, we'll move on to future agenda items. Anybody have anything for the future? Okay. Thank you. Can I get a motion to adjourn? LARRABEE: So moved. MAYOR FRIEDEL: Second? SKILLICORN: Second. MAYOR FRIEDEL: Motion and a second. All in favor? ALL: Aye. MAYOR FRIEDEL: Thank you. Meeting Packet Page 60 of 120 TOWN OF FOUTAIN HILLS MARCH 17, 2026, FOUNTAIN HILLS TOWN COUNCIL REGULAR MEETING MINUTES Page 31 of 31 APPROVED: ____________________________________ GERRY FRIEDEL, MAYOR ATTEST: ____________________________________ ANGELA PADGETT-ESPIRITU, DEPUTY TOWN CLERK CERTIFICATION I HEREBY CERTIFY THAT THE FOREGOING MINUTES ARE A TRUE AND CORRECT COPY OF THE MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY COUNCIL, TOWN OF FOUNTAIN HILLS, ARIZONA HELD ON MARCH 17, 2026. I FURTHER CERTIFY THAT THE MEETING WAS DULY CALLED AND HELD AND THAT A QUORUM WAS PRESENT. ________________________________ ANGELA PADGETT-ESPIRITU, DEPUTY TOWN CLERK Meeting Packet Page 61 of 120 ITEM 8.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Development Services / Planning Prepared by: Farhad Tavassoli, Senior Planner Staff Contact Information: Phone: 480-816-5139 Email: ftavassoli@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving a CUT/FILL WAIVER request to permit an area of approximately 2,885 square feet to exceed the maximum 10-foot visible FILL allowance up to approximately 15 feet deep maximum fills for the development of the back patio area for the property on 15409 E. Richwood Ave. Staff Summary (background) The applicant is requesting a fill waiver to allow approximately 2,885 square feet of the subject property to have up to 15 feet of fill (5 feet additional fill than what is allowed by the Ordinance) in order to allow the construction of a back patio for a new single-family residence at 15409 E. Richwood Ave. A small portion of the building footprint is also within the excess fill area, but is exempt from requiring a waiver as it is less than 5% of the building footprint. The Town of Fountain Hills Subdivision Ordinance, Article 5, Section 5.03.D.: “…the total combined height of any fill or the depth of any cut area as a result of subdivision improvement grading and/or any subsequent grading, including but not limited to grading approved as a part of building permit approval, shall not total more than ten feet, as measured from natural grade, unless otherwise provided in this Article. These limitations on cut and fill apply to all zoning districts.” The grading plan does not include any cuts greater than 10 feet anywhere on the lot. Staff has identified three objectives in reviewing cut and fill waiver requests. Those objectives are: 1. To reduce the visual impact of the proposed development as viewed from the adjacent properties and rights of ways. The fill would be contained behind a series of retaining walls. The attached cut-and-fill exhibit illustrates fill depths of up to 15 feet, which exceed the 10 feet of fill allowed by right; the areas outside the building footprint exceeding 10 feet are shown in orange. The slopes in this portion of the property are approximately 20%. Per Article 5, Section 5.06.D of the Subdivision Ordinance, retaining walls may be up to 10 feet in height but must average 7 feet. The applicant is proposing a retaining wall with a maximum height of only 6 feet. Because the property is a corner lot that slopes downward from Richwood Drive, the fill areas would be partially visible from the residence to the south, but only from that home’s driveway, and not from the structure itself. The same fill area would not be visible from Richwood Avenue, as it would be screened by the house. Furthermore, the fill would remain below the home’s Meeting Packet Page 62 of 120 finished floor elevation and therefore would not obstruct any viewsheds from the uphill properties. 2. To review the measures applied by the designer to minimize the amount of cut and fill on the lot. According to the applicant's narrative, "A critical component of the design is providing safe, step-free access to the rear patio and outdoor living areas. Due to the existing topography, achieving this accessibility requires additional fill and associated retaining improvements in the southeast portion of the site." To achieve this, the design incorporates three terraced retaining walls in the rear yard. The terracing helps break up vertical massing, and each level will include landscaping to soften the appearance of the walls and support the intent of the grading regulations. 3. To consider possible alternatives to the proposed plan that would conform to the ten-foot maximum cut or fill. The property could be developed with a smaller home (the proposed home is approximately 5,100 square feet total). However, there still may need to be some amount of fill placed on this property due to its steep slopes. The balance of the proposed site design appears to be in compliance with the Town’s Subdivision and Zoning Ordinances. Related Ordinance, Policy or Guiding Principle Subdivision Ordinance, Article 5, Section 5.03.D Subdivision Ordinance, Article 5, Section 5.06.D Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends the Town Council APPROVE the Cut/Fill waiver request subject to the condition that the building permit and subsequent development activities are compliant with all other Zoning and Subdivision Ordinances and the project is constructed in substantial conformance with the site plans provided with this request. Suggested Motion MOVE TO APPROVE a CUT/FILL WAIVER for the property on 15407 E. Richwood Ave. as shown on the attached exhibit. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Case Map-CFW26-000004 2. Applicant Narrative 3. Fill Exhibit 1 4. Fill Exhibit 2 Meeting Packet Page 63 of 120 CASE: CFW26-000004 SITE / ADDRESS: 15409 E. Richwood Ave. APN 176-22-623 REQUEST: CONSIDERATION OF a CUT/FILL WAIVER request to permit an area of approximately 2,885 square feet to exceed the maximum 10 foot visible FILL allowance up to approximately 15 feet deep maximum fills for the development of the back patio area for the property on 15409 E. Richwood Dr. Site Location Meeting Packet Page 64 of 120 Olmstead – Cut/Fill Waiver Application Permit # B26-000174 03/31/26 Project Description: Construction of a new single-story, single-family residence including all associated site development work. Scope includes site preparation, excavation, and grading; installation of retaining walls as required by site conditions; construction of on-site utilities including water, sewer, storm drainage, electrical, and all related improvements necessary to deliver a complete and functional residential property. Reasoning for Cut/Fill Waiver Request: The proposed residence is situated on a uniquely constrained lot characterized by areas of steep existing grades. Significant consideration was given to the civil design and grading plan to develop a layout and floor plan that meet the homeowners’ needs for space, functionality, and accessibility, while remaining compliant with applicable municipal requirements. The design successfully addresses these constraints in nearly all areas, with the exception of the limited area located southeast of the residence, as identified. The homeowners are elderly and have documented mobility limitations, including intermittent reliance on a wheelchair, with additional medical procedures anticipated that may result in permanent wheelchair use. In response, the home has been thoughtfully designed to eliminate steps throughout and to incorporate appropriately sized hallways and doorways to ensure full accessibility. A critical component of the design is providing safe, step-free access to the rear patio and outdoor living areas. Due to the existing topography, achieving this accessibility requires additional fill and associated retaining improvements in the southeast portion of the site. These improvements are necessary to create an accessible outdoor environment, allowing the homeowners to safely access and enjoy areas beyond the driveway. Given these circumstances, we respectfully request consideration for an exception to the 10-foot fill limitation. The proposed design exceeds this threshold by approximately 3 feet in a limited and targeted area, solely to accommodate essential accessibility needs. We believe this request is justified as it enables safe and reasonable use of the property for homeowners with mobility challenges, while maintaining the overall intent of the grading regulations. Sincerely, Bryan Grabowy SOCON Builders 480-440-4039 BGrabowy@soconaz.com Meeting Packet Page 65 of 120 Meeting Packet Page 66 of 120 Fill Areas 15’ fill 10’ fill >10’ fill Meeting Packet Page 67 of 120 ITEM 9.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Fire Department Prepared by: Dave Ott, Fire Chief Staff Contact Information: Phone: 480-816-5280 Email: dott@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Relating to the purchasing a Fire Department Replacement Brush Truck. Staff Summary (background) The Town purchased two brush trucks for the Fire Department in 2012 and 2013, during the period when fire services were contracted. Both vehicles have now exceeded their useful lives and are experiencing increasing maintenance and reliability issues. Since their acquisition, the Town has been setting aside funding annually within the Vehicle Replacement Fund to support their eventual replacement. In June 2025, the Town Council approved the replacement of one of these brush trucks. Due to delays associated with the custom build process, the Fire Department now anticipates receiving that vehicle in early FY2027, approximately July or August 2026. Budget authority for this previously approved acquisition has been carried forward within the Vehicle Replacement Fund to ensure completion upon delivery. The Fire Department is now requesting Council approval to replace the second brush truck, a 2014 Ford F-550 Type 6 Brush Truck, which is also scheduled for replacement within the Vehicle Replacement Fund. The proposed purchase would be completed through Sourcewell Contract #020124-SEW with SeaWestern Emergency Vehicles for an estimated cost of $290,000. Delivery of this vehicle is anticipated by the end of May 2026. Because the previously approved brush truck will not be delivered prior to June 30, 2026, sufficient budget authority remains available within the Vehicle Replacement Fund in FY2026 to complete this acquisition without requiring a budget amendment. The lower cost of the requested brush truck, compared to the previously approved unit (not to exceed $390,000, with a final estimated cost of approximately $313,000), reflects differences in vehicle type and operational purpose. The previously approved vehicle is a Ford F-450 configured as a Type 5 Brush Truck, designed with a greater emphasis on Wildland Urban Interface (WUI) response. The requested vehicle is a Ford F-550 configured as a Type 6 Brush Truck, which provides greater flexibility as a multi-use apparatus capable of supporting both emergency medical response and WUI operations. Both vehicles are four-wheel drive. The delay associated with the first brush truck is due to logistical challenges related to its custom build. In contrast, the requested vehicle is available for purchase on a shorter timeline through a different vendor, allowing the Town to address immediate operational needs more Meeting Packet Page 68 of 120 quickly. Related Ordinance, Policy or Guiding Principle This purchase meets the requirements of replacement of vehicles over 10 years old under the Vehicle Replacement Policy, and the current vehicle has exceeded its useful life. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the purchase of a replacement Brush Truck in compliance with the Vehicle Replacement Policy and funding available in the Vehicle Replacement Fund. Pricing not to exceed $290,000. Suggested Motion Move to approve the purchase of a new replacement Brush Truck, not to exceed $290,000. FISCAL IMPACT Fiscal Impact: Not to Exceed $290,000. Budget Reference: FY2026 Funding Source: Vehicle Replacement Fund (VRAD) ATTACHMENTS 1. SeaWestern Purchase Agreement and Sales Order_0001 Meeting Packet Page 69 of 120 Meeting Packet Page 70 of 120 Meeting Packet Page 71 of 120 Meeting Packet Page 72 of 120 Meeting Packet Page 73 of 120 ITEM 9.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Phone: 480-816-5133 Email: jweldy@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Related to the FY26 Pavement Management projects. Staff Summary (background) On September 2, 2025, staff presented the proposed pavement management projects for Fiscal Year 2026 to the Town Council. As part of that presentation, staff provided maps identifying proposed project locations, along with the recommended treatment types and associated cost estimates. Following Council approval, staff conducted a detailed follow-up review of the presentation materials and performed field inspections of the affected roadway segments. During this process, staff determined that the proposed treatment location on Kingstree Boulevard does not align with the best pavement management practices. Kingstree Boulevard is approximately 1.5 miles in length, and the originally proposed work would address only a small section of the roadway. Treating a limited portion of a roadway of this length is not consistent with industry best practices, as it does not provide a cost-effective or long-term solution and may lead to inconsistent pavement conditions along the corridor. Furthermore, given the overall condition of Kingstree Boulevard, isolated improvements would not meaningfully extend the service life of the roadway. Staff also determined that this segment should be considered within the broader context of the Town’s pavement management backlog and long-term funding strategy. The expenditure of funds for a partial treatment on Kingstree Boulevard would not align with Council’s objectives of maximizing the effectiveness of available resources and improving overall network conditions. The estimated cost to complete the originally proposed work on Kingstree Boulevard is approximately $463,000. Based on the findings of the field review and condition assessments, staff recommends reallocating these funds to higher-priority locations. Specifically, staff recommends that the Town Council authorize the use of the $ 463,000 to reconstruct six (6) cul-de-sacs and localized street segments that have been selected based on their overall condition and low Pavement Condition Index (PCI) ratings. The proposed locations include: • Regency Drive – from Kingstree Boulevard to end Meeting Packet Page 74 of 120 • Nightingale Drive – from Malta Drive to end • Westminster Place – from Montrose Drive to end • Cameron Court – from Sirocco Drive to north end • Royal Court – from Kingstree Boulevard to end • Sage Drive – from Sage Drive to end This approach will allow the Town to address multiple failing roadway segments, improve neighborhood street conditions, and achieve a greater overall benefit from the available funding. Related Ordinance, Policy or Guiding Principle Pavement Management Best Practices. Risk Analysis If the originally proposed project on Kingstree Boulevard were to proceed, the Town would risk investing approximately $463,000in a limited roadway segment that would not significantly improve overall pavement conditions or extend the useful life of the corridor. This approach is not aligned with best pavement management practices.. By contrast, reallocating the funding to reconstruct multiple cul-de-sacs and localized street segments reduces overall risk by addressing areas with the lowest Pavement Condition Index (PCI) ratings and the greatest need for rehabilitation. This strategy maximizes the return on investment, improves conditions across a broader portion of the Town’s roadway network, and helps prevent further deterioration that could lead to more costly repairs in the future. There is minimal risk associated with the proposed reallocation, as all selected locations have been field-verified and prioritized based on established pavement management criteria. Deferring work on Kingstree Boulevard does present a risk of continued deterioration; however, this roadway is more appropriately addressed as part of a future, comprehensive project when sufficient funding is available to treat the corridor in its entirety. Overall, the recommended approach reduces financial risk, improves network performance, and better aligns with Council’s objectives for responsible infrastructure investment. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends that the Town Council approve the reallocation of previously authorized funding from the Kingstree Boulevard project to the reconstruction of the identified cul-de- sacs and street segments based on condition assessments and PCI data. Suggested Motion Move to approve the reallocation of previously authorized Fiscal Year 2026 pavement management funding in the amount of $463,000 from the Kingstree Boulevard project to the reconstruction of selected cul-de-sacs and street segments, as identified by staff. Meeting Packet Page 75 of 120 FISCAL IMPACT Fiscal Impact: $608,786.50 Budget Reference: Streets Fund Funding Source: N/A ATTACHMENTS 1. FY26 Pavement Management_5-5-2026 Meeting Packet Page 76 of 120 Presented byJustin T. Weldy, Public Works Director Town Council Meeting May 5, 2026 Town of Fountain Hills FY26 Pavevemnt Management Meeting Packet Page 77 of 120 Regency Pl 420 Ft Meeting Packet Page 78 of 120 Nightingale Cir 211 Ft Meeting Packet Page 79 of 120 Westminster Pl (Montrose to NE terminus) 300 Ft Meeting Packet Page 80 of 120 Cameron Ct 238 Ft Meeting Packet Page 81 of 120 Royal Ct 354 Ft Meeting Packet Page 82 of 120 Sage Dr 216 Ft Meeting Packet Page 83 of 120 Road Segment Length PCI Regency Pl 420 ft 16 Nightingale Dr 211 ft 18 Westminster Pl (NE end)300 ft 22 Cameron Ct 238 ft 23 Royal Ct 354 ft 26 Sage Dr 216 ft 27 Total 1,739 ft FY26 Cul-de-sac Paving Summary Meeting Packet Page 84 of 120 Questions Meeting Packet Page 85 of 120 ITEM 9.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration / Finance Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Phone: 480-816-5160 Email: psoldinger@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-09, setting forth the Tentative Budget and establishing the maximum budget amount for the Town of Fountain Hills for the fiscal year beginning July 1, 2026, and ending June 30, 2027. Staff Summary (background) The Proposed Fiscal Year 2026-27 (FY2027) budget was presented to the Town Council during a budget work session on April 14, 2026. The total expenditures in the FY2027 Tentative Budget for all funds is $50.3 million, an increase of $1.08 million from the Proposed Budget. Resolution 2026-09 establishes $50.3 million as the maximum amount of expenditures for FY2027. After approval of Resolution 2026-09, changes to the budget may be made between line items for the Final Budget adoption (scheduled for June 2, 2026), but the total may not exceed that maximum amount set by the Tentative Budget. The FY2027 Tentative Budget includes $1.0 million of contingency budget authority in the General Fund, which provides the Town Council budgetary flexibility in case of unplanned and unforeseen events, such as emergency infrastructure repairs, and protects the Town from possible revenue shortfalls. Accordingly, the General Fund contingency may only be used if there are adequate financial resources available. The Finance Division provides quarterly revenue updates to the Town Council at the end of each quarter, which provides the residents and the Town Council transparent insights into the Town's financial condition throughout the fiscal year. Related Ordinance, Policy or Guiding Principle Arizona Revised Statute (A.R.S.) § 42-17102 Risk Analysis If not approved, the Town will not be in compliance with Arizona law. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2026-09. Suggested Motion MOVE TO APPROVE Resolution 2026-09, setting the FY2027 Tentative Budget at $50.3 million. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Meeting Packet Page 86 of 120 Funding Source: N/A ATTACHMENTS 1. RESOLUTION 2026-09 2. PRESENTATION Meeting Packet Page 87 of 120 RESOLUTION NO. 2026-09 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, SETTING FORTH THE TENTATIVE BUDGET AND ESTABLISHING THE MAXIMUM BUDGET AMOUNT FOR THE TOWN OF FOUNTAIN HILLS FOR THE FISCAL YEAR BEGINNING JULY 1, 2026, AND ENDING JUNE 30, 2027 WHEREAS, pursuant to the provisions of the laws of the State of Arizona, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) are required to adopt a budget for each fiscal year; and WHEREAS, in accordance with Ariz. Rev. Stat. § 42-17102, the Town Manager has prepared, and filed with the Town Council, the Town Manager’s budget estimates for the fiscal year beginning July 1, 2026, and ending June 30, 2027. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The statements and schedules attached hereto as Exhibit A and incorporated herein by reference are hereby adopted as the Town’s official tentative budget for the fiscal year beginning July 1, 2026, and ending June 30, 2027, including the establishment of the maximum budget amount for such fiscal year in the amount of $50,285,064. SECTION 3. Upon approval of the Town Council, the Town Manager or designee shall publish in the official Town newspaper once a week for two consecutive weeks (i) the official tentative budget summary (Schedule A) and (ii) a notice, in the form attached as Exhibit B and incorporated herein by reference, of the public hearing of the Town Council to hear taxpayers and make tax levies at designated times and places. The notice shall include the physical addresses of the Fountain Hills Town Hall, the Fountain Hills branch of the Maricopa County Library and the Town website where the tentative budget may be found . SECTION 4. The Town Manager or designee shall, no later than seven business days after the date of this Resolution, (i) make available at the Fountain Hills Town Hall and the Fountain Hills branch of the Maricopa County Library a complete copy of the tentative budget, and (ii) post the tentative budget in a prominent location on the Town’s website. Meeting Packet Page 88 of 120 SECTION 5. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 5th day of May, 2026. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Mayor Town Clerk REVIEWED BY: APPROVED AS TO FORM: Town Manager Town Attorney Meeting Packet Page 89 of 120 EXHIBIT A TO RESOLUTION NO. 2026-09 [Tentative Budget] See following pages Meeting Packet Page 90 of 120 Official Budget Forms Town of Fountain Hills Fiscal year 2027 6/23 Arizona Auditor General Official City/Town Budget Forms Meeting Packet Page 91 of 120 Schedule G—Full-time employees and personnel compensation Schedule C—Revenues other than property taxes Schedule D—Other financing sources/(uses) and interfund transfers Schedule E—Expenditures/expenses by fund Schedule F—Expenditures/expenses by department (as applicable) Town of Fountain Hills Table of Contents Fiscal year 2027 Schedule A—Summary Schedule of estimated revenues and expenditures/expenses Schedule B—Tax levy and tax rate information 6/23 Arizona Auditor General Official City/Town Budget Forms Meeting Packet Page 92 of 120 Fiscal year General Fund Special Revenue Fund Debt Service Fund Capital Projects Fund Permanent Fund Enterprise Funds Available Internal Service Funds Total all funds 2026 Adopted/adjusted budgeted expenditures/expenses* E 1 26,029,061 13,677,949 1,060 12,159,228 0 0 1,529,100 53,396,398 2026 Actual expenditures/expenses** E 2 23,434,444 8,886,607 10 8,064,801 0 0 1,074,280 41,460,142 2027 Beginning fund balance/(deficit) or net position/(deficit) at July 1*** 3 15,000,000 8,315,480 41,198 10,616,273 0 0 11,856,430 45,829,381 2027 Primary property tax levy B 4 0 0 0 0 0 0 0 2027 Secondary property tax levy B 5 0 0 0 0 0 0 0 2027 Estimated revenues other than property taxes C 6 26,800,894 7,267,000 817 3,691,977 0 0 716,915 38,477,603 2027 Other financing sources D 7 0 0 0 0 0 0 0 0 2027 Other financing (uses) D 8 0 0 0 0 0 0 0 0 2027 Interfund transfers in D 9 35,000 150,000 0 3,300,000 0 0 0 3,485,000 2027 Interfund Transfers (out) D 10 0 185,000 0 1,900,000 0 0 1,400,000 3,485,000 2027 Line 11: Reduction for fund balance reserved for future budget year expenditures Maintained for future debt retirement 41,155 41,155 Maintained for future capital projects 4,283,134 4,696,250 6,700,000 15,679,384 Maintained for future financial stability 10,751,866 10,751,866 Maintained for future streets projects 4,306,170 4,306,170 Maintained for future vehicle, facilities and technology replacement 3,243,345 3,243,345 2027 Total financial resources available 12 26,800,894 11,241,310 860 11,012,000 0 0 1,230,000 50,285,064 2027 Budgeted expenditures/expenses E 13 26,800,894 11,241,310 860 11,012,000 0 0 1,230,000 50,285,064 Expenditure limitation comparison 2026 2027 1 Budgeted expenditures/expenses 53,396,398$ 50,285,064$ 2 Add/subtract: estimated net reconciling items (82,309) (82,845) 3 Budgeted expenditures/expenses adjusted for reconciling items 53,314,089 50,202,219 4 Less: estimated exclusions 16,732,213 12,024,151 5 Amount subject to the expenditure limitation 36,581,876$ 38,178,068$ 6 EEC expenditure limitation or voter-approved alternative expenditure limitation 36,581,877$ 38,178,069$ * ** ***Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund). See the Instructions tab, cell C17 for more information about the amounts that should and should not be included on this line. S c h Funds Includes expenditure/expense adjustments approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. 11 Town of Fountain Hills Summary Schedule of estimated revenues and expenditures/expenses Fiscal year 2027 Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule A Official City/Town Budget Forms Meeting Packet Page 93 of 120 2026 2027 1. $$ 2. $ 3.Property tax levy amounts A.Primary property taxes $$ B.Secondary property taxes C.Total property tax levy amounts $$ 4.Property taxes collected* A.Primary property taxes (1)Current year's levy $ (2) Prior years’ levies (3) Total primary property taxes $ B.Secondary property taxes (1)Current year's levy $ (2) Prior years’ levies (3) Total secondary property taxes $ C.Total property taxes collected $ 5.Property tax rates A.City/Town tax rate (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate B.Special assessment district tax rates Secondary property tax rates—As of the date the proposed budget was prepared, the one (1)special assessment districts for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * city/town was operating Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year. Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18) Town of Fountain Hills Tax levy and tax rate information Fiscal year 2027 Maximum allowable primary property tax levy. A.R.S. §42-17051(A) Property tax judgment Property tax judgment Property tax judgment Property tax judgment 6/23 Arizona Auditor General Schedule B Official City/Town Budget Forms Meeting Packet Page 94 of 120 Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 General Fund Local taxes Local Sales Tax $14,962,027 $17,232,975 $15,268,851 Franchise Tax 350,000 312,482 325,000 Licenses and permits Business License Fees 114,094 102,214 110,000 Residential Rental License 28,523 34,000 35,000 Liquor License Fees 2,000 4,266 2,000 Building Permit Fees 450,000 478,956 450,000 Sign Permits 3,350 3,166 3,350 Landscape Permit Fees 3,780 2,066 3,780 Subdivision Fees 40,000 22,668 40,000 Special Event Permits 18,100 39,563 30,000 Engineering Fees 5,900 9,104 10,000 Encroachment Fees 100,000 37,113 50,000 Variances 5,000 11,744 5,000 Inspection Fees 35,000 38,321 45,000 Planning & Zoning Fees 20,060 15,076 20,060 Plan Review Fees 50,000 31,240 50,000 Intergovernmental State Sales Tax 3,639,515 3,565,712 3,562,041 Fire Insurance Premium Tax 75,000 550,000 330,000 Shared Income Tax 4,698,139 4,617,595 4,987,436 Charges for services Parks & Rec User Fees 260,000 338,624 275,000 Leases & Rents 379,914 406,905 387,455 Fines and forfeits Court Fines 210,000 359,303 300,000 Interest on investments Interest on Investments 348,507 476,573 294,941 In-lieu property taxes Contributions Voluntary contributions 60,000 38,184 60,000 Miscellaneous Miscellaneous 192,980 146,850 155,980 Total General Fund $26,051,889 $28,874,701 $26,800,894 * Town of Fountain Hills Revenues other than property taxes Fiscal Year 2027 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. Source of revenues 6/23 Arizona Auditor General Schedule C Official City/Town Budget FormsMeeting Packet Page 95 of 120 Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2027 Source of revenues Special revenue funds Highway User Revenue Fund Highway User Tax 1,890,627 $1,713,607 $1,810,740 Vehicle License Tax 1,277,830 1,252,219 1,280,205 Local Sales Tax 1,242,326 1,424,328 1,279,231 In-Lieu Fees 100,000 10,000 Recycle Proceeds 1,000 1,624 1,000 Interest 191,193 339,725 105,205 Miscellaneous 30,000 16,865 30,000 $4,732,976 $4,748,368 $4,516,381 Downtown Strategy Fund Local Sales Tax 124,233 $142,432 $127,923 Interest 13,830 22,054 14,168 $138,063 $164,487 $142,091 Economic Development Fund Local Sales Tax 496,930 $569,731 $511,692 Miscellaneous 1,646 Interest 10,766 27,416 13,350 $507,696 $598,793 $525,042 Tourism Fund Grants 150,000 $126,624 $150,000 Interest 3,000 7,194 3,126 $153,000 $133,818 $153,126 Special Revenue Fund - Grants Intergovernmental-State $1,690,000 $250,253 $1,750,000 Intergovernmental-Federal 3,000,000 Other 113,892 5,660 $4,690,000 $364,145 $1,755,660 Public Art In-Lieu Fees $100,000 $24,263 $100,000 Other 15,000 Interest 820 1,632 1,289 $100,820 $40,895 $101,289 Court Enhancement Fund Court Enhancement/JCEF Revenue $33,000 $66,018 $52,000 Interest 8,789 10,343 8,641 $41,789 $76,361 $60,641 Cottonwoods Maintenance District Assessments $11,606 $10,448 $12,342 Interest Income 400 773 428 $12,006 $11,221 $12,770 Total special revenue funds $10,376,350 $6,138,087 $7,267,000 *Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget FormsMeeting Packet Page 96 of 120 Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2027 Source of revenues Debt service funds General Obligation Debt Service Interest Income $500 $990 $566 $500 $990 $566 Eagle Mountain CFD Assessments $$$ Interest Income $$$ Municipal Property Corp Interest Income $200 $483 $251 $200 $483 $251 Total debt service funds $700 $1,473 $817 Capital projects funds Capital Projects Fund Local Sales Tax $1,188,207 $1,283,288 $1,361,152 Grants 2,190,750 1,750,000 1,131,250 Interest 170,000 335,158 175,666 $3,548,957 $3,368,446 $2,668,068 Fire Development Fee Fund Development Fees $17,228 $11,281 $164,445 Interest Income 4,102 7,439 4,173 $21,330 $18,721 $168,618 Streets Development Fee Fund Development Fees $266,141 $183,110 $380,179 Interest Income 15,227 34,705 $281,368 $217,815 $380,179 Parks & Recreation Development Fee Fund Development Fees $224,096 $134,637 $448,240 Interest Income 13,632 17,812 26,872 $237,728 $152,449 $475,112 Total capital projects funds $4,089,383 $3,757,430 $3,691,977 *Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget FormsMeeting Packet Page 97 of 120 Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2027 Source of revenues Permanent funds N/A $$$ $$$ Total permanent funds $$$ Enterprise funds N/A $$$ $$$ Total enterprise funds $$$ *Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget FormsMeeting Packet Page 98 of 120 Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2027 Source of revenues Internal service funds Facilities Reserve Fund Interest Income 140,000 331,796 144,302 $140,000 $331,796 $144,302 Technology Replacement Fund Internal Service Charges $65,511 $65,508 $65,511 Interest Income 7,605 $65,511 $65,508 $65,511 Vehicle Replacement Fund Vehicle Replacement Charges $368,337 $379,472 $458,050 Interest Income 49,052 111,223 49,052 $417,389 $490,695 $507,102 Total internal service funds $622,900 $887,999 $716,915 Total all funds $41,141,222 $39,659,690 $38,477,603 *Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget FormsMeeting Packet Page 99 of 120 Fund Sources (Uses)In (Out) General Fund General Fund $$$35,000 $ Total General Fund $$$35,000 $ Special revenue funds Streets Fund $$$ Court Enhancement Fund 35,000 Downtown Strategy Fund Economic Dev Fund 150,000 Tourism Fund 150,000 Total special revenue funds $$$150,000 $185,000 Debt service funds N/A $$$$ Total debt service funds $$$$ Capital projects funds Capital Projects Fund $$$3,300,000 Parks & Rec Development Fee Fund 1,600,000 Streets Development Fee Fund 300,000 Total capital projects funds $$$3,300,000 $1,900,000 Permanent funds N/A $$$$ Total permanent funds $$$$ Enterprise funds N/A $$$$ Total enterprise funds $$$$ Internal service funds Facilities Reserve Fund $$$$1,400,000 Technology Replacement Fund Vehicle Replacement Fund Total Internal Service Funds $$$$1,400,000 Total all funds $ $ $ 3,485,000 $ 3,485,000 2027 2027 Town of Fountain Hills Other financing sources/(uses) and interfund transfers Fiscal year 2027 Other financing Interfund transfers 6/23 Arizona Auditor General Schedule D Official City/Town Budget FormsMeeting Packet Page 100 of 120 Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses Fund/Department 2026 2026 2026 2027 General Fund Mayor & Town Council $73,455 $59,321 $80,442 Administration 3,252,618 3,071,511 3,459,977 General Government 1,899,944 (75,473)752,453 1,745,819 Municipal Court 548,969 525,869 574,919 Public Works 2,488,886 100,000 2,091,724 2,516,325 Development Services 1,532,513 (100,000)1,328,554 1,568,863 Community Services 4,427,565 52,995 4,015,101 4,580,916 Fire & Emergency Medical 5,966,584 5,776,771 6,477,777 Law Enforcement 5,861,005 5,813,140 5,795,856 Total General Fund $26,051,539 $(22,478)$23,434,444 $26,800,894 Special revenue funds Streets Fund $7,244,627 $1,150,000 7,555,164 8,269,842 Downtown Strategy Fund 165,200 15,000 135,703 240,200 Economic Development Fund 471,378 448,588 503,234 Tourism Fund 333,425 328,575 325,756 Special Revenue Fund 4,690,000 (525,000)333,410 1,755,660 Public Art Fund 40,214 47,611 42,777 Court Enhancement Fund 77,500 29,645 87,500 Cottonwoods Maint District 15,605 7,911 16,341 Total special revenue funds $13,037,949 $640,000 $8,886,607 $11,241,310 Debt service funds General Obligation Bonds $350 $350 Eagle Mountain CFD 200 Municipal Property Corp 510 10 510 Total debt service funds $1,060 $$10 $860 Capital projects funds Capital Projects $12,712,800 $(625,000)8,057,323 11,000,000 Fire/Emergency Dev Fee 1,964 2,491 2,491 4,000 Streets Dev Fee 31,146 2,496 2,496 4,000 Park/Rec Dev Fee 30,840 2,491 2,491 4,000 Total capital projects funds $12,776,750 $(617,522)$8,064,801 $11,012,000 Permanent funds N/A $$$$ Total permanent funds $$$$ Enterprise funds N/A $$$$ Total enterprise funds $$$$ Internal service funds Facilities Reserve Fund $1,000,000 $701,840 600,000 Technology Replacement Fund 50,000 43,947 50,000 Vehicle Replacement Fund 479,100 328,493 580,000 Total internal service funds $1,529,100 $1,074,280 1,230,000 Total all funds $ 53,396,398 $ $ 41,460,142 $ 50,285,064 * Expenditures/expenses by fund Fiscal year 2027 Town of Fountain Hills Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule E Official City/Town Budget FormsMeeting Packet Page 101 of 120 Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses 2026 2026 2026 2027 Mayor & Council General Fund $ 73,455 $ $ 59,321 $ 80,442 Department total $73,455 $$59,321 $80,442 Administration General Fund $ 3,252,618 $ 3,071,511 3,459,977 Downtown Strategy Fund 165,200 135,703 240,200 Economic Development Fund 471,378 448,588 503,234 Tourism Fund 333,425 328,575 325,756 Special Revenue Fund 4,690,000 30,636 1,750,000 General Obligation Debt 350 350 Eagle Mountain CFD 200 Municipal Property Corp 510 10 510 Cottonwoods Maint District 15,605 7,911 16,341 Capital Projects 1,167,800 543,741 3,700,000 Department total $10,097,086 $$4,566,676 $9,996,368 General Government General Fund $ 1,899,944 $ 752,453 1,745,819 Technology Replacement 50,000 43,947 50,000 Vehicle Replacement 415,000 271,165 465,000 Department total $2,364,944 $$1,067,565 $2,260,819 Municipal Court General Fund $ 548,969 $ $ 525,869 $ 574,919 Court Enhancement Fund 77,500 29,645 87,500 Department total $626,469 $$555,513 $662,419 Public Works General Fund $ 2,488,886 $ 2,091,724 2,516,325 Streets Fund 7,244,627 7,555,164 8,269,842 Special Revenue Fund 900 Capital Projects 9,950,000 6,636,331 3,100,000 Facilities Reserve Fund 1,000,000 701,840 600,000 Vehicle Replacement 64,100 57,328 115,000 Streets Development Fees 31,146 2,496 4,000 Department total $20,747,613 $$17,045,783 $14,605,167 Development Services General Fund $ 1,532,513 $ $ 1,328,554 $ 1,568,863 Department total $1,532,513 $$1,328,554 $1,568,863 Community Services General Fund $ 4,427,565 $ 4,015,101 4,580,916 Special Revenue Fund 301,874 5,660 Public Art Fund 40,214 47,611 42,777 Capital Projects 1,595,000 877,250 4,200,000 Parks/Rec Development Fees 30,840 2,491 4,000 Department total $6,093,619 $$5,244,327 $8,833,353 Fire & Emergency Medical General Fund $ 5,966,584 $ $ 5,776,771 $ 6,477,777 Fire/EMS Development Fees 1,964 2,491 4,000 Department total $5,966,584 $$5,779,262 $6,481,777 Law Enforcement General Fund $ 5,861,005 $ $ 5,813,140 $ 5,795,856 Department total $5,861,005 $$5,813,140 $5,795,856 * Expenditures/expenses by department Fiscal year 2027 Town of Fountain Hills Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. Department/Fund 6/23 Arizona Auditor General Schedule F Official City/Town Budget FormsMeeting Packet Page 102 of 120 Full-time equivalent (FTE) Employee salaries and hourly costs Retirement costs Healthcare costs Other benefit costs Total estimated personnel compensation 2027 2027 2027 2027 2027 2027 106.75 9,925,941 1,019,460 1,106,489 569,025 12,620,915 Streets Fund 7.05 575,022 65,473 94,959 57,211 792,665 Economic Development Fund 2.00 256,060 28,348 18,666 8,017 311,091 Total special revenue funds 9.05 $ 831,082 $ 93,821 $ 113,625 $ 65,228 $ 1,103,756 $ $ $ $ $ Total debt service funds $ $ $ $ $ $ $ $ $ $ Total capital projects funds $ $ $ $ $ $ $ $ $ $ Total permanent funds $ $ $ $ $ $ $ $ $ $ Total enterprise funds $ $ $ $ $ $ $ $ $ $ Total internal service fund $ $ $ $ $ Total all funds 115.80 $ 10,757,023 $ 1,113,281 $ 1,220,114 $ 634,253 $ 13,724,671 Internal service funds Special revenue funds Debt service funds Capital projects funds Permanent funds Enterprise funds Fund Town of Fountain Hills Full-time employees and personnel compensation Fiscal year 2027 General Fund 6/23 Arizona Auditor General Schedule G Official City/Towns Budget FormsMeeting Packet Page 103 of 120 EXHIBIT B TO RESOLUTION NO. 2026-09 [Notice] See following page Meeting Packet Page 104 of 120 Town of Fountain Hills Notice of Public Hearing Final Budget Adoption and Tax Levy On June 2, 2026, beginning at 5:25 p.m. in the Town Hall Council Chambers, 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268, public hearings will be held to allow members of the public to appear and testify or make inquiries regarding Fiscal Year 2026-27 Budgets for (i) the Town of Fountain Hills, and (ii) the Cottonwoods Maintenance District Board. On June 16, 2026, beginning at 5:25 p.m. in the Town Hall Council Chambers, 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268, the Cottonwoods Maintenance District Board will adopt its property tax levy for the Fiscal Year beginning July 1, 2026, and ending June 30, 2027. A complete copy of each of the budgets for the Fiscal Year 2026-27 may be viewed at: 1. Fountain Hills Town Hall (2nd floor), 16705 E. Avenue of the Fountains, Fountain Hills, Arizona 85268 2. Fountain Hills Maricopa County Branch Library, 12901 La Montana Drive, Fountain Hills, Arizona 85268 3. The Town of Fountain Hills website at: www.fountainhillsaz.gov/budget Anyone wishing to respond may do so in person at the meetings or in writing prior to the date of the June 2, 2026, and June 16, 2026, meetings by delivering the written comments to the Town Clerk’s office, 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268. Meeting Packet Page 105 of 120 FY2027 Tentative Budget Paul Soldinger, Chief Financial Officer May 5, 2026 Meeting Packet Page 106 of 120 Key Updates from Proposed Budget Meeting Packet Page 107 of 120 Key Updates from Proposed Budget •Added $80,000 of budgeted expenditures for Arizona Office of Tourism (AOT) grant (Prop 302) •Budget increased $80K in Tourism Fund •Added $1 million of budget contingency in Capital Projects Fund for possible new FY27-FY28 project to be presented to Council on 6/2/2026 •Budget increase $1M in Capital Projects Fund (up to $1.7M) Meeting Packet Page 108 of 120 FY2027 Tentative Budget Comparison - Revenues No changes made from FY27 Proposed Budget FY2027 FY2027 Changes Proposed Budget Tentative Budget from Proposed Revenues by Fund General Fund $26,800,894 $26,800,894 $0 Streets Fund 4,516,381 4,516,381 0 Capital Projects Fund 2,668,068 2,668,068 0 Facilities Reserve Fund 144,302 144,302 0 Special Revenue Fund 1,755,660 1,755,660 0 Economic Dev Funds 820,259 820,259 0 10 Nonmajor Funds 1,772,039 1,772,039 0 Total Expenditures: $38,477,603 $38,477,603 $0 Major Fund Groups Meeting Packet Page 109 of 120 FY2027 Tentative Budget Comparison - Expenditures Additional $1M for CIP contingency General Fund Contingency FY2027 FY2027 Changes Proposed Budget Tentative Budget from Proposed Expenditures by Fund General Fund $26,800,894 $26,800,894 $0 Streets Fund 8,269,842 8,269,842 0 Capital Projects Fund 10,000,000 11,000,000 1,000,000 Facilities Reserve Fund 600,000 600,000 0 Special Revenue Fund 1,755,660 1,755,660 0 Economic Dev Funds 989,190 1,069,190 80,000 10 Nonmajor Funds 789,478 789,478 0 Total Expenditures: $49,205,064 $50,285,064 $1,080,000 FY2027 FY2027 Changes Proposed Budget Tentative Budget from Proposed General Gov Contingency $1,002,316 $1,002,316 $0 Major Fund Groups General Fund Contingency Added $80K of budget to account for AOT grant Meeting Packet Page 110 of 120 Expenditure Limitation for FY2027 Tentative FY27 Expenditure Limit $38,178,069 FY27 Proposed Budget $49,205,064 Less Grants (1,760,660) Less HURF (1,810,740) Less Investment Income (840,962) Less Other Exclusions (2,175,700) Less Using Prior Years’ Carryforward (5,518,934) FY27 Expenditures Subject to Limit $38,178,068 $1 FY27 - $6.7M exclusions Budgeted to be $1 under the FY2027 expenditure limitation Meeting Packet Page 111 of 120 General Fund Meeting Packet Page 112 of 120 General Fund Past Performance *FY23 Expenditures do not include about $4.2 million of ARPA grants that paid for Public Safety out of another fund instead of the General Fund Without those grants, the General Fund expenditures would have been about $19.9 million in FY23 Meeting Packet Page 113 of 120 General Fund - Expenditures *Administration Department includes Town Manager, Information Technology, Town Clerk, Administrative Services, Finance, Public Information, Legal Services and Purchasing divisions ** Includes MCSO Patrol/Jail costs, and animal control services FY2026 FY2027 FY2027 Changes % Change Adopted Budget Proposed Budget Tentative Budget from FY27 Proposed to Tentative from FY2026 Adopted to FY27 Tentative Expenditures by Department Mayor and Council $73,455 $80,442 $80,442 $0 9.5% Administration*3,252,618 3,459,977 $3,459,977 0 6.4% General Government 1,899,944 1,745,819 $1,745,819 0 -8.1% Municipal Court 548,969 574,919 $574,919 0 4.7% Public Works 2,488,886 2,516,325 $2,516,325 0 1.1% Development Services 1,532,513 1,568,863 $1,568,863 0 2.4% Community Services 4,427,565 4,580,916 $4,580,916 0 3.5% Fire & Emergency Med 5,966,584 6,477,777 $6,477,777 0 8.6% Law Enforcement**5,861,005 5,795,856 $5,795,856 0 -1.1% Total Expenditures: $26,051,539 $26,800,894 $26,800,894 $0 2.9% General Fund Meeting Packet Page 114 of 120 All Other Funds Meeting Packet Page 115 of 120 All Other Funds - Expenditures FY2026 FY2027 FY2027 Changes % Change Adopted Budget Proposed Budget Tentative Budget from FY27 Proposed to Tentative from FY26 Adopted to FY27 Tentative Funds other than General Fund Streets Fund $7,244,627 $8,269,842 $8,269,842 $0 14.2% Capital Projects Fund 12,712,800 10,000,000 11,000,000 1,000,000 -13.5% Facilities Reserve Fund 1,000,000 600,000 600,000 0 -40.0% Special Revenue Fund 4,690,000 1,755,660 1,755,660 0 -62.6% Economic Development Funds*970,003 989,190 1,069,190 80,000 10.2% All Nonmajor Funds**727,429 789,478 789,478 0 8.5% Total Expenditures: $27,344,859 $22,404,170 $23,484,170 $1,080,000 -14.1% Total Budgeted Expenditures:$53,396,398 $49,205,064 $50,285,064 Major Fund Groups *”Economic Development Funds” includes the Downtown Strategy, Economic Development, and Tourism Funds ** Nonmajor Funds include the Public Art, Court Enhancement, GO Bond Debt Service, MPC Debt Service, Cottonwoods Maintenance District, Fire/Streets/Parks Impact Fee, Technology Replacement, and Vehicle Replacement Funds Added $1M (up to $6M) for road paving projects Additional $1M for CIP contingency Added $80K of budget to account for AOT grant Meeting Packet Page 116 of 120 Proposed Transfers Meeting Packet Page 117 of 120 Proposed Transfers* •$150,000 from Economic Development Fund to Tourism Fund to cover non-grant funded FY27 operations •Up to $35,000 from Court Enhancement Fund to General Fund to cover actual part-time Court operation staff costs •Up to $1,400,000 from Facilities Reserve Fund to Capital Projects Fund (matched to actual Lake Liner Design and Air Handler project costs, as planned and discussed with Council) •Up to $1,900,000 ($1.6M Parks & $0.3M Streets) from Development Impact Fee Funds to Capital Projects Fund for actual costs for Skyview Park and Shea Blvd Widening capital projects (reimbursements from impact fee funds, as planned and discussed with Council) *Funding transfers of General Fund excess reserves will be presented to Council in Fall 2026, after the financial audit is completed. Meeting Packet Page 118 of 120 Council Direction for Final Budget Meeting Packet Page 119 of 120 ITEM 9.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/5/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration / Town Clerk Prepared by: Staff Contact Information: Phone: Email: Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Related to any item included in the Arizona Cities and Town's Weekly Legislative Bulletin or relating to any action proposed or pending before the State Legislature. Staff Summary (background) Related Ordinance, Policy or Guiding Principle Risk Analysis Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Suggested Motion FISCAL IMPACT Fiscal Impact: Budget Reference: Funding Source: ATTACHMENTS None Meeting Packet Page 120 of 120