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HomeMy WebLinkAbout2026.0630.TCSM.AGENDA.PACKET NOTICE OF SPECIAL 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 - SPECIAL MEETING TUESDAY, JUNE 30, 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. 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. CONSENT AGENDA a. CONSIDERATION AND POSSIBLE ACTION: Relating to Council recommending approval of, to the Arizona Department of Liquor Licenses and Control, the application for a Series 12 Restaurant License for Quik Burrito, located at 16754 E. Glenbrook Boulevard, Fountain Hills, Arizona 85268 b. CONSIDERATION AND POSSIBLE ACTION: Approving Resolution 2026-10, an Intergovernmental Agreement with the Fountain Hills Sanitary District, for the Golden Eagle Park Dam–Debris Mitigation Improvement Project – Phase II. c. CONSIDERATION AND POSSIBLE ACTION: Approving a request for a CUT/FILL waiver for 13818 E. Coyote Way to allow cut and fill in excess of 10' on portions of the property. 4. SPECIAL SESSION AGENDA a. CONSIDERATION AND POSSIBLE ACTION: Relating to Resolution 2026-18, a Lease Agreement between the Town of Fountain Hills and Fountain Hills and Lower Verde River Valley Museum and Historical Society b. DISCUSSION AND POSSIBLE DIRECTION: Regarding Staff Direction to Pursue Possible Solar Energy Projects, as requested by Councilmember Watts, with support of Mayor Friedel. Meeting Packet Page 1 of 58 5. ADJOURNMENT Dated this 25 day of June, 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 2 of 58 ITEM 3.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special Meeting Submitting Department: Administration / Finance Prepared by: Michael Stelpstra, Accountant Staff Contact Information: Phone: 480-816-5165 Email: mstelpstra@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Relating to Council recommending approval of, to the Arizona Department of Liquor Licenses and Control, the application for a Series 12 Restaurant License for Quik Burrito, located at 16754 E. Glenbrook Boulevard, Fountain Hills, Arizona 85268 Staff Summary (background) The purpose of this item is to obtain the Town Council’s recommendation (approval, disapproval, or no recommendation) regarding the application for a Series 12 Restaurant License submitted by Jesus Manuel Altamirano, agent of Quik Burrito, for submission to the Arizona Department of Liquor Licenses and Control. Staff reviewed the liquor license application and found that the liquor license application is in full compliance with Town Ordinances. Related Ordinance, Policy or Guiding Principle A.R.S. §4-201; 4-202; 4-203; 4-205 and R19-1-102. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends the Council recommend approval of the liquor license application to the Arizona Department of Liquor Licenses and Control. Suggested Motion MOVE TO APPROVE the Council’s recommendation for approval to the Arizona Department of Liquor Licenses and Control regarding the Series 12 Restaurant License application for Jesus Manuel Altamirano, agent of Quik Burrito. FISCAL IMPACT Fiscal Impact: Budget Reference: Funding Source: ATTACHMENTS 1. Local Governing Body Report Meeting Packet Page 3 of 58 Meeting Packet Page 4 of 58 Meeting Packet Page 5 of 58 Meeting Packet Page 6 of 58 Meeting Packet Page 7 of 58 Meeting Packet Page 8 of 58 ITEM 3.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special Meeting Submitting Department: Public Works / Engineering Prepared by: David Janover, Town Engineer Staff Contact Information: Phone: 480-816-5112 Email: djanover@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving Resolution 2026-10, an Intergovernmental Agreement with the Fountain Hills Sanitary District, for the Golden Eagle Park Dam–Debris Mitigation Improvement Project – Phase II. Staff Summary (background) In 2025, the Town completed stormwater drainage improvements within the Golden Eagle Park Impoundment Area, which are referred to as the Phase I improvements. This coming year, the Town plans to construct dam-related improvements and other improvements in the impoundment area, known as the Golden Eagle Park Dam-Debris Mitigation Improvement Project – Phase II. The project scope has also been expanded to include improvements requested by the Fountain Hills Sanitary District to protect its infrastructure. The Project combines Town-led debris mitigation improvements with District- led sanitary sewer infrastructure protection into a single construction effort. The proposed Intergovernmental Agreement (IGA) establishes roles, responsibilities, and fiscal obligations between the Town of Fountain Hills (Town) and the Fountain Hills Sanitary District (District) for coordination and cost-sharing of certain elements of the Phase II improvements. BACKGROUND The Phase II Project includes two coordinated components: • Town Improvements: Installation of debris deflector structures and access barrier improvements at the Golden Eagle Park Dam to reduce the risk of blockage and structural damage during storm events. • District Improvements: Construction of a retaining wall system and related improvements to protect an existing sanitary sewer manhole located near the dam outlet works. These improvements have been combined into a single design, permitting, and construction effort to streamline project delivery, satisfy permitting requirements, and reduce overall Meeting Packet Page 9 of 58 construction costs. DISCUSSION The proposed IGA establishes: • The Town as the lead agency responsible for procurement, contract administration, and construction oversight • A single construction contract covering both Town and District improvements • A clear cost allocation and reimbursement structure Under the Agreement: • The Contractor will submit itemized invoices identifying Town and District work • The Town will review and pay 100% of each invoice, while providing the District an opportunity to review District-related costs • The District will reimburse the Town for 100% of District-related costs within 30 days The Agreement also clarifies that: • The Town retains full authority for procurement and construction administration • The District retains authority over construction decisions related to its sanitary sewer manhole protection improvements and has separately retained Construction Quality Assurance (CQA) services • The District’s financial responsibility is limited to its defined scope of work • The Parties will coordinate as needed during construction This approach provides efficient project delivery while maintaining clear accountability between the Parties. FUNDING AND REIMBURSEMENT The Town has a separate Intergovernmental Agreement with the Maricopa County Flood Control District (MCFCD) for the Golden Eagle Park Dam Improvement Project. Under that agreement: • The Town is eligible for 75% reimbursement of its eligible project costs • This reimbursement applies only to the Town’s portion of the Project The District’s portion of the Project: • Is not included in the scope of the MCFCD agreement, and • Is not eligible for reimbursement from MCFCD Accordingly: • The District will reimburse the Town for 100% of District-related construction costs • The Town will separately pursue reimbursement from MCFCD for eligible Town costs only This structure ensures that funding sources remain separate and compliant with each Meeting Packet Page 10 of 58 agreement. Related Ordinance, Policy or Guiding Principle A.R.S. §11-951 et seq., authorizing intergovernmental agreements, and the Town’s guiding principle of interagency coordination to ensure efficient project delivery, cost sharing, and protection of public infrastructure. Risk Analysis Without approval of the IGA, the Town would assume financial risk for District-related construction costs without a guaranteed reimbursement mechanism, and the separation of funding required under the Town’s agreement with MCFCD would not be clearly documented. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2026-10 Suggested Motion MOVE TO APPROVE Resolution 2026-10 FISCAL IMPACT Fiscal Impact: $191,300 Budget Reference: FY2027 Funding Source: Capital Projects Fund ATTACHMENTS 1. Resolution 2026-10 IGA with FHSD for Golden Eagle Park Phase II Meeting Packet Page 11 of 58 RESOLUTION NO. 2026-10 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE INTERGOVERNMENTAL AGREEMENT WITH THE FOUNTAIN HILLS SANITARY DISTRICT FOR THE GOLDEN EAGLE PARK DAM-DEBRIS MITIGATION IMPROVEMENT PROJECT - PHASE II. RECITALS: WHEREAS, The Town of Fountain Hills (“Town”) owns and maintains the Golden Eagle Park Dam; and WHEREAS, The Fountain Hills Sanitary District (“District”) owns and operates sanitary sewer infrastructure within the project area; and WHEREAS, The Town and the District have developed coordinated improvements consisting of debris mitigation structures and sanitary sewer manhole protection improvements; and WHEREAS, The Town and the District desire to combine these improvements into a single construction project for efficiency and cost-effectiveness; and WHEREAS, The Town desires to enter into an Intergovernmental Agreement, dated June 16th, 2026 (the “Agreement”) with the District to establish roles, responsibilities, and fiscal obligations for the Project; and WHEREAS, The Town will serve as the lead agency for procurement and construction administration under the proposed Agreement; and WHEREAS, The Town has entered into a separate Intergovernmental Agreement with the Maricopa County Flood Control District (“MCFCD”) for partial reimbursement of the Town’s eligible project costs; and WHEREAS, The District’s portion of the Project is not included in the scope of the MCFCD agreement and is not eligible for reimbursement from MCFCD; and WHEREAS, Arizona law (A.R.S. §11-951 et seq.) authorizes public agencies to enter into intergovernmental agreements; BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: Meeting Packet Page 12 of 58 ENACTMENTS: SECTION 1. The Town Council approves the Intergovernmental Agreement with the Fountain Hills Sanitary District for the Golden Eagle Park Dam–Debris Mitigation Improvement Project – Phase II. SECTION 2. The Town Manager is authorized to execute the Intergovernmental Agreement and any related documents, subject to approval as to form by the Town Attorney. SECTION 3. The Town shall administer the construction contract, remit payment to the contractor, and receive reimbursement from the District for all District-related project costs. SECTION 4. The Town shall separately pursue reimbursement from MCFCD for eligible Town project costs only, consistent with the Town’s agreement with MCFCD. SECTION 5. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Agreement and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 30, 2026. FOR THE TOWN OF FOUNTAIN HILLS: Gerry Friedel, Mayor ATTESTED TO: Bevelyn Bender, Town Clerk REVIEWED BY: Rachael Goodwin, Town Manager APPROVED AS TO FORM: Jennifer Wright, Town Attorney Meeting Packet Page 13 of 58 EXHIBIT A TO RESOLUTION NO. 2026-10 (Intergovernmental Agreement) See following pages. Meeting Packet Page 14 of 58 Intergovernmental Agreement for the Golden Eagle Park Dam-Debris Mitigation Improvement Project – Phase II between the Town of Fountain Hills and the Fountain Hills Sanitary District Agenda Item _________ PARTIES This Intergovernmental Agreement (“Agreement” of “IGA”) is entered into this 30th day of June, 2026 (the “Effective Date”), by and between the Town of Fountain Hills, Arizona, a municipal corporation of the State of Arizona (“Town”), and the Fountain Hills Sanitary District, a political subdivision of the State of Arizona (“District”). The Town and the District shall be referred to herein as a “Party” and collectively as the “Parties”. STATUTORY AUTHORIZATION 1. This Agreement is entered into pursuant to A.R.S. §11-951 et seq., which authorizes public agencies to contract for joint or cooperative action. PURPOSE OF THE AGREEMENT 2. The purpose of this Agreement is to establish roles, responsibilities, and fiscal obligations for the Golden Eagle Dam Improvement Project – Phase II (“Project”). The Project combines two coordinated improvements: 2.1 Town Component: Debris deflector structures and dam access barrier improvements 2.2 District Component: Sanitary sewer manhole protection improvements 3. These improvements have been combined into a single construction effort for efficiency and cost-effectiveness and permitting requirements through ADWR SCOPE OF WORK 4. Town Scope The Town shall be responsible for: 4.1 Construction of debris deflector structures and access barrier improvements 4.2 All costs associated with the Town portion of the Project 5. District Scope District shall be responsible for: 5.1 Construction of sanitary sewer manhole protection improvements 5.2 All costs associated with the District portion of the Project Meeting Packet Page 15 of 58 PROJECT ADMINISTRATION 6. The Town shall serve as the lead agency for the Project and shall: 6.1 Procure the construction contractor 6.2 Procure construction management and CQA services 6.2.1 The District has directly contracted for CQA services 6.3 Administer the construction contract 6.4 Provide construction oversight 6.5 The Town shall have full authority to manage procurement and contract administration, subject to coordination with the District on matters affecting the District’s scope of work. 6.5.1 The District will have full authority over construction decisions for its portion of the Project, including manhole protection improvements. This structure is consistent with the project delivery approach documented in the Construction Quality Assurance Plan COST RESPONSIBILITIES 7. Town Costs The Town shall be responsible for all costs associated with its portion of the Project, including debris deflector structures and related improvements. Estimated Town project cost: approximately $191,300 . 8. District Costs District shall be responsible for all costs associated with its portion of the Project, including manhole protection improvements. Estimated District project cost: approximately $122,500 OTHER FUNDING SOURCES 9. The Town has entered into a separate Intergovernmental Agreement with the Maricopa County Flood Control District (MCFCD) for partial reimbursement of the Town’s Project costs. 9.1 MCFCD reimbursement applies only to eligible costs associated with the Town’s portion of the Project. 9.2 The District’s portion of the Project is not included in the scope of the MCFCD agreement and is not eligible for reimbursement by MCFCD. 9.3 Nothing in this Agreement shall be construed to obligate the Town to seek or obtain MCFCD reimbursement on behalf of the District. PAYMENT AND REIMBURSEMENT 10. The Contractor shall submit itemized invoices clearly identifying: 10.1 Town-related work 10.2 District-related work 11. The Town shall: 11.1 Review and approve all invoices, providing the District time to review costs associated to the District portion of the Project. 11.2 Remit payment to the Contractor for 100% of each invoice Meeting Packet Page 16 of 58 12. District shall: 12.1 Review and approve invoices for District related costs. 12.2 Reimburse the Town for 100% of District-related costs 12.3 Submit payment within 30 days of receiving invoice documentation 12.4 In the event the District disputes any portion of an invoice, the undisputed portion shall be paid within the 30-day period, and the Parties shall work in good faith to resolve the disputed portion. RECORDKEEPING AND AUDIT 13. The Town shall maintain complete financial records for the Project. District shall have the right to review records related to its portion of the work. TERM 14. This Agreement shall remain in effect until: 14.1 Completion of construction, and 14.2 Final reconciliation of all payments between the Parties INDEMNIFICATION 15. Each Party shall be responsible for its own acts, errors, and omissions to the extent permitted by Arizona law. TERMINATION 16. This Agreement may be terminated by mutual written agreement of both Parties. AMENDMENTS 17. This Agreement may only be amended by written agreement executed by both Parties. LEGAL REVIEW AND APPROVAL 18. This Agreement has been reviewed and approved by the legal counsel for each Party. Execution of this Agreement constitutes such approval. NO THIRD-PARTY BENEFICIARIES 19. This Agreement does not create any rights in any third party. COMPLIANCE WITH LAWS 20. The Parties shall comply with all applicable federal, state, and local laws. (Signatures on Following Page) Meeting Packet Page 17 of 58 TOWN OF FOUNTAIN HILLS FOUNTAIN HILLS SANITARY DISTRICT ________________________________ ______________________________________ Rachael Goodwin, Town Manager Dana Trompke, PE, District Manager Date: ___________________________ Date: _________________________________ ATTEST: ATTEST: ________________________________ ______________________________________ Town Clerk Administrative Services Manager The foregoing Intergovernmental Agreement has been reviewed pursuant to A.R.S. §11-952, as amended, by the undersigned General Counsel, who has determined that it is in proper form and within the powers and authority granted under the laws of the State of Arizona. ________________________________ ______________________________________ Jennifer Wright Daniel Jones Attorney for the Town of Fountain Hills Attorney for the Fountain Hills Sanitary District Meeting Packet Page 18 of 58 ITEM 3.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special Meeting Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: Phone: 480-816-5138 Email: jwesley@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving a request for a CUT/FILL waiver for 13818 E. Coyote Way to allow cut and fill in excess of 10' on portions of the property. Staff Summary (background) The owner of the property at 13818 E. Coyote Way is preparing plans to build a new single- family home on this lot. The plans submitted for this 49,783 sq. ft. lot show a total disturbance area of approximately 21,000 sq. ft. The total area proposed under roof is 6,397 sq. ft. The lot slopes down from the street toward a drainage way across the rear (west side) of the lot. The western portion of the lot is in a drainage easement. The highest point on the lot is at the south-east corner at 2440' and the lowest is in the north-west corner at 2370'. The area of the lot closest to the street has a general slope between 15% and 20%. The most significant slopes are along the southern property boundary and the west side of the lot. The plans for this two-story home set the building pad at 2421', which is about the same elevation as the street where the driveway connects to the street. To create a level building pad, the area to the east and south of the home will be excavated to provide the driveway access to the garages on the south side of the house. This will have the effect of screening much of the driveway and garages from the street and the neighbors to the south. There is also a small area of excess fill on the outdoor living area behind the house next to the pool. This area of excess fill is not visible to adjacent properties. Meeting Packet Page 19 of 58 Staff has identified three objectives in reviewing cut and fill waiver requests. Those objectives are: 1. To reduce the visual impacts of the proposed developments as viewed from the adjacent properties and right of way. Cut. The area of cut is along the southern boundary of the property. Two retaining walls that comply with ordinance requirements will be used to step the land down to the finish grade. Given the topography and the curve of the street, the area of cut will be visible only to those on the property in front of the garage area. The maximum amount of cut is over 15', but this is in a relatively small area. Fill. The area of excess fill in in the rear portion of the lot. The excess fill is behind two retaining walls which comply with ordinance requirements. The lower wall is also partially screened by use of boulders. The rear areas of the lot slopes down to the drainage way with slopes in excess of 20%. The property behind this lot is part of the Fountain Hills McDowell Mountain Preserve. The nearest existing trail is over 450' away. 2. To review the measures applied by the designer to minimize the amount of cut and fill on the lot. The designer of this property picked a location in the center of the lot that, for the most part, balanced out the cut and fill requirements while fitting within the setback requirements. The excess cut along the south side of the lot is needed to provide for the driveway access to the garage area. Shifting the house further west would cause a more significant impact with additional fill needed due the steep slopes on the west side of the property. 3. What are alternatives to the proposed plan that would conform to the cut/fill requirements? Assessing alternatives to the current design that conform to ordinance requirements would necessitate submission of design options. Review of the property by staff finds there are significant challenges relating to the topography and configuration of the lot that make Meeting Packet Page 20 of 58 alternatives challenging without complete redesign of the desired home on this lot. The HOA has reviewed and approved the plans as designed. 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 approval of the requested cut/fill waivers. Suggested Motion MOVE TO APPROVE a CUT/FILL waiver for 13818 E. Coyote Way (CFW26-000005) as requested. FISCAL IMPACT Fiscal Impact: Budget Reference: Funding Source: ATTACHMENTS 1. Case Details Maps Meeting Packet Page 21 of 58 Cut/Fill Waiver Vicinity Map Case Details CASE: CFW26-000005 SITE / ADDRESS: 13818 Coyote Way REQUEST: A cut/fill waiver to allow a portions of the lot to be cut and filled a depth of more than 10’. Maximum cut height is 15’. Site Location Meeting Packet Page 22 of 58 Meeting Packet Page 23 of 58 Cut Fill Meeting Packet Page 24 of 58 Meeting Packet Page 25 of 58 Meeting Packet Page 26 of 58 Meeting Packet Page 27 of 58 Meeting Packet Page 28 of 58 Fill Cut Note: Cannot see cut area from the street Meeting Packet Page 29 of 58 ITEM 4.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special Meeting Submitting Department: Administration / Economic Development & Tourism Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Phone: 480-816-5104 Email: ajacobs@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Relating to Resolution 2026-18, a Lease Agreement between the Town of Fountain Hills and Fountain Hills and Lower Verde River Valley Museum and Historical Society Staff Summary (background) Background The Town of Fountain Hills and the Fountain Hills and Lower Verde River Valley Museum (Museum) entered into a lease agreement on August 16, 2001 (Attachment 1). The agreement expires on August 15, 2026. Key provisions of the existing agreement include: • Approximately 5,000 square feet of Town-owned space was leased to the Museum at a nominal rate of $1 per year for 25 years (total rent collected: $25). • The Town contributed $210,000 toward exhibits, displays, lighting, and permanent improvements at the inception of the lease. • Throughout the lease term, the Town has paid for building maintenance and utilities, including water, gas, electricity, sewer, trash removal, and base cable television service (excluding telephone and equipment costs). • Over the past 25 years, the Town and Museum have maintained a longstanding partnership focused on preserving and interpreting the community’s history. Current Considerations As the current lease approaches expiration, the Town must evaluate future occupancy of the facility in a manner consistent with Arizona law, sound fiscal stewardship, and the Town’s fiduciary responsibilities. Town staff and representatives of the Museum began discussions regarding a new lease in November 2025. Through recent discussions, the parties have negotiated a proposed lease agreement for the period of August 16, 2026, through June 30, 2027. Under the proposed agreement, the Museum will pay rent for the use of the facility (Attachment 2, Section 3 – Rent) and provide specified public benefits and services to residents and visitors (Attachment 2, Section 6 – Public Benefits). The proposed lease term will allow the Museum to continue operations without interruption Meeting Packet Page 30 of 58 while providing both parties additional time to evaluate the Museum’s long-term operational and financial sustainability, assess the measurable public benefits provided to the community, and consider potential future occupancy arrangements. The proposed structure is intended to help ensure that any future agreement is supported by adequate consideration and complies with applicable provisions of the Arizona Constitution, including the Gift Clause. Staff believes the proposed lease provides an appropriate interim framework that balances the Town’s interest in preserving local history and culture with its obligation to protect public resources and ensure legal compliance. Additionally, the Museum Board approved the draft lease as written at their board meeting on Thursday, June 24. Related Ordinance, Policy or Guiding Principle The lease agreement supports the Town's General Plan, specifically by maximizing economic development opportunities in Fountain Hills and supporting strong public/private partnerships to strengthen the community, ensuring long-term viability, and improving the Town's quality of life. As well as the Town's Strategic Plan, specifically Targeted Collaborative Economic Development. Risk Analysis If the lease agreement is not approved, the Museum will no longer be able to operate effective January 1, 2027, and will need to begin the 90-day deaccession and transition process. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval. Suggested Motion MOVE TO APPROVE Resolution 2026-18, Approving a Lease Agreement between the Town of Fountain Hills and Fountain Hills and Lower Verde River Valley Museum and Historical Society FISCAL IMPACT Fiscal Impact: $10,500 from September 1, 2026 - June 30, 2027 to the General Fund. Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. 6.30.26 - Special Session Museum Lease 2. Res 2026-18 Lease between FH and Museum Meeting Packet Page 31 of 58 Proposed Lease Agreement Between the Town and River of Time Museum Meeting Packet Page 32 of 58 Background •25-Year Lease between Town and Museum Association; expires August 15, 2026 •Rent $1 annually; Total $25 •Town provided $210,000 •Cost of displays and exhibits •Lighting •Other permanent improvements •Town pays for maintenance, utilities and janitorial services Meeting Packet Page 33 of 58 Town Requirements •Any consideration of renewal requires an evaluation of compliance with state law. •Highest and best use of a Town-owned facility. Meeting Packet Page 34 of 58 Gift Clause •Arizona’s Gift Clause exists to protect taxpayers. It ensures public dollars are used for a clear public purpose and that the Town receives fair value in return. •Two common questions: •Is there a clear public purpose; and •Is the Town receiving fair market value? Meeting Packet Page 35 of 58 Timeline -Staff EcDev and Public Works 16 Sep. Town Manager, EcDev Director and Public Works Director 23 Sep. Town Manager, Directors 20 Oct. Attorney and EcDev Director 4 Nov. Town Manager, EcDev Director and Museum 17 Nov. Attorney and EcDev Director 2 Dec. Attorney and EcDev Director 16 Dec. Meeting Packet Page 36 of 58 Timeline -Staff Town Manager, EcDev Director and Museum 26 Jan. Attorney and EcDev Director 27 Jan. EcDev Director and Museum 3 Feb. Attorney and EcDev Director 10 Feb. Attorney and EcDev Director 17 Feb. Attorney and EcDev Director 3 Mar. EcDev Director and Museum 3 Mar. Attorney, EcDev Director, Museum and their Attorney 10 Mar. Attorney and EcDev Director 31 March Meeting Packet Page 37 of 58 Timeline -Staff EcDev Director and Museum Executive Director 11 June Attorney and EcDev Director 16 June Attorney and EcDev Director EcDev Director and Museum Executive Director 17 June Town Manager, Attorney and EcDev Director EcDev Director and Museum Executive Director 22 June Attorney and EcDev Director EcDev Director and Museum Executive Director 23 June EcDev Director and Museum Executive Director 24 June Meeting Packet Page 38 of 58 Timeline -Council Executive Session 18 Nov. Executive Session 16 Dec. Council Retreat 24 Feb. Executive Session 17 March Executive Session 7 April Executive Session 23 June Meeting Packet Page 39 of 58 Proposed Lease •Considerations: •Lease Term: August 16, 2026 –June 30, 2027 •Rent:September $1,500; $1,000 per month thereafter •Public Benefit:Free admission days,free programming, completion of a third- party economic impact analysis •Reporting Requirements as outlined in the lease •June 24 –Museum Board of Directors approved the lease as drafted Meeting Packet Page 40 of 58 Staff Recommendation •Staff recommends approval. Meeting Packet Page 41 of 58 Questions? Meeting Packet Page 42 of 58 Meeting Packet Page 43 of 58 Meeting Packet Page 44 of 58 Meeting Packet Page 45 of 58 Meeting Packet Page 46 of 58 Meeting Packet Page 47 of 58 Meeting Packet Page 48 of 58 Meeting Packet Page 49 of 58 Meeting Packet Page 50 of 58 Meeting Packet Page 51 of 58 Meeting Packet Page 52 of 58 Meeting Packet Page 53 of 58 Meeting Packet Page 54 of 58 Meeting Packet Page 55 of 58 Meeting Packet Page 56 of 58 ITEM 4.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special 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) DISCUSSION AND POSSIBLE DIRECTION: Regarding Staff Direction to Pursue Possible Solar Energy Projects, as requested by Councilmember Watts, with support of Mayor Friedel. Staff Summary (background) At the June 16, 2026, regular meeting with a 3-4 vote the Town Council did not approve a proposed capital project for a shade structure with solar panels on the Town Hall campus. The project was proposed by Veregy LLC (Veregy) through a cooperative purchasing agreement for performance contracting allowed under Arizona law. This item was added to the agenda at the request of Council Member Watts, with the support of the Mayor, for the Town Council to discuss and possibly direct Town staff to pursue other possible parking shade structure and/or solar energy projects for Town Council consideration that may have lower pricing and/or energy efficiencies, including the possibility of issuing a Request for Proposals (RFP) or identifying another cooperative purchasing agreement. Although the opportunity to begin a solar energy project before the July 4, 2026, federal rebate deadline that allowed four years to complete the project has passed, there are still possible opportunities to pursue similar solar projects that may qualify for federal rebates. However, any proposed solar project would need to be fully completed and energized through Salt River Project (SRP) before December 31, 2027, to qualify for federal rebates. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A - For Town Council Discussion and Possible Direction Suggested Motion N/A FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A Meeting Packet Page 57 of 58 ATTACHMENTS None Meeting Packet Page 58 of 58