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HomeMy WebLinkAbout2026.0901.TCRS.AGENDA.PACKET 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, SEPTEMBER 1, 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 296 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. INVOCATION a. INVOCATOR: Pastor Dee Pavia, Christ's Church of Fountain Hills 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. RECOGNITION: Strategic Planning Advisory Commissioners Randy Crader (May 2025– August 2026) and Paul Smith (May 2024– August 2026). b. RECOGNITION: History and Culture Advisory Commissioner Tim Yoder (November 2023–July 2026). 7. PRESENTATIONS a. PRESENTATION: Republic Services Non-Profit Grant Award Program b. PRESENTATION: Downtown Fountain Hills Strategy Update 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 and Special Meeting of June 2, 2026, the Town Council Regular Meeting of June 16, 2026, and the Town Council Special Meeting of June 30, 2026. b. CONSIDERATION AND POSSIBLE ACTION: Approving the minutes of the Eagle Mountain Community Facilities District Board Meeting of June 2, 2026. c. CONSIDERATION AND POSSIBLE ACTION: Approving Resolution 2026-20, accepting Gila River Indian Community Grant Funding on behalf of the Fountain Hills Unified School District. d. CONSIDERATION AND POSSIBLE ACTION: Approving a Budget Authority Transfer from Capital Projects Fund contingency into the budget for the Fountain Park Ramada Replacement Project. Meeting Packet Page 2 of 296 e. CONSIDERATION AND POSSIBLE ACTION: Approving a Budget Authority Transfer from Capital Projects Fund contingency into the budget for the construction of Skyview Park. 9. REGULAR AGENDA a. CONSIDERATION AND POSSIBLE ACTION: Related to FY26-27 Pavement Management Selections and Funding b. CONSIDERATION AND POSSIBLE ACTION: Ratifying the Town Manager’s emergency authorization and necessary budget transfers for the purchase and installation of a replacement pump for the Panorama Drive Storm Drain Channel pump-back system from Laveen Pump Company. c. DISCUSSION AND POSSIBLE DIRECTION: Regarding amendments to the Town Code, Sections 10-2-8 and 10-2-9, relating to handbills. d. CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-04, increasing a stipend up to $750 per month for Council Members and increasing a stipend up to $1,100 per month for the Mayor beginning December 1, 2026. e. CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-05, aligning annual Council stipend adjustments with Town staff pay adjustments. 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 24 day of August, 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 296 ITEM 6.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration / Town Clerk Prepared by: Hannah Martin, Executive Assistant Staff Contact Information: Phone: 480-816-5107 Email: hmartin@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) RECOGNITION: Strategic Planning Advisory Commissioners Randy Crader (May 2025– August 2026) and Paul Smith (May 2024– August 2026). Staff Summary (background) The Mayor and Town Council will recognize Strategic Planning Advisory Commissioners Randy Crader, who served from May 2025 to August 2026, and Paul Smith, who served from May 2024 to August 2026, for their dedicated service to the Town of Fountain Hills. 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) Suggested Motion FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Cert of Appreciation- Randy Crader 2. Cert of Appreciation - Paul Smith Meeting Packet Page 4 of 296 Meeting Packet Page 5 of 296 Me e t i n g P a c k e t P a g e 6 o f 2 9 6 Meeting Packet Page 7 of 296 ITEM 7.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular 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) PRESENTATION: Republic Services Non-Profit Grant Award Program Staff Summary (background) Republic Services, in partnership with the Town of Fountain Hills, has continued its longstanding grant program to support nonprofit organizations serving the Fountain Hills community. This program funds initiatives that promote environmental stewardship, enhance the Town’s natural beauty, encourage public enjoyment, support healthy lifestyles and human services, and provide educational opportunities. For the current grant cycle, five applications were received and evaluated by a five-member grant review panel using the following criteria: • Community Impact: The extent to which the project or program enriches the community as a whole. • Human/Environmental Impact: The degree to which the project addresses human and/or environmental • needs and opportunities. • Educational Impact: The project's effectiveness in educating and informing the Fountain Hills community. Based on these evaluations, two nonprofit organizations have been selected to receive funding: • Falcon Fiesta Graduation Celebration • Fountain Hills Youth Substance Abuse Prevention Coalition Each organization will be awarded a $5,000 grant during the September 1, 2026 regular Town Council meeting. The Town of Fountain Hills values its partnership with Republic Services in supporting local nonprofit organizations and investing in the well-being and sustainability of the community. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Meeting Packet Page 8 of 296 N/A Staff Recommendation(s) N/A Suggested Motion N/A FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS None Meeting Packet Page 9 of 296 ITEM 7.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular 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) PRESENTATION: Downtown Fountain Hills Strategy Update Staff Summary (background) The 2023–2026 Community Economic Development Strategy (CEDS), under the Business Attraction focus area, identifies the creation of a new Downtown Strategy consistent with current economic trends as a key action item. In 2024, Town Council unanimously approved a new Downtown Strategy, which includes four focus areas and 29 implementation strategies. Over the past two years, staff has been actively working to implement the strategies and advance the goals identified in the Downtown Strategy. Attachment 1 provides a brief status update on implementation efforts, with updates highlighted in blue, bold font. Attachment 2 includes the PowerPoint presentation that will be presented at the September 1 meeting. Related Ordinance, Policy or Guiding Principle 2023-2026 Community Economic Development Strategy and Downtown Strategy Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A Suggested Motion N/A FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Downtown Strategy UPDATES 9.1.2026 2. Downtown Strategy Update 9.1.2026 Meeting Packet Page 10 of 296 1 | Page Fountain Hills Downtown Strategy Town’s Mission The Town of Fountain Hills’ purpose is to serve the best interests of the community by: providing for the safety and well-being of its residents and visitors; respecting its special, small-town character and quality of life; providing superior public services; sustaining the public trust through open and responsive government; and maintaining the stewardship and preservation of its financial and natural resources. To serve and respect and provide trust and stewardship. Town’s Vision Fountain Hills is a distinctive community designed to invigorate the body, mind and spirit, and strives to: Be stewards of this unique enclave, dedicated to preserving the environment and visual aesthetic and to living in balance with the Sonoran Desert; Champion the diversity of experiences our residents bring to our community and rely on this depth of experience to innovatively address our challenges; Be economically sustainable and anchor our vitality in an active, vibrant town core that serves us culturally, socially and economically; and, Be civic-minded and friendly, taking responsibility for our Town’s success by building partnerships and investing our talent and resources. Executive Summary The Downtown Strategy has not been updated since 2009. In September 2023, Council unanimously approved a three-year Community Economic Development Strategy (CEDS). One of the implementation strategies within the CEDS is to “Create a new Downtown Strategy consistent with current economic trends.” In November 2023, Council provided support for a staff-driven process to update the Downtown Strategy. For the purpose of developing this updated strategy, the area considered was north of El Lago, east of La Montana, and west of Foutain Park. This total area was divided into five sub-areas to consider some of the unique aspects of different portions of the downtown area. Staff held six focus group meetings with residents and businesses, conducted four electronic surveys and a public open house. Based on the feedback received, the Downtown Strategy focuses on four focus areas: • Land Use • Infrastructure • Economic Vitality • Public Spaces/Placemaking Background A vision plan was developed for the Downtown (formerly Town Center) in 2009. Over the last 14 years, several elements have been implemented to include the installation of the Avenue Linear Park and Park Place I and II. Meeting Packet Page 11 of 296 2 | Page Focus Area 1: Land Use Having the appropriate mix of uses in a commercial area is important to its success. The types of uses desirable in a given location vary depending on the intended nature of the area. The core of a downtown depends heavily on uses that attract pedestrians and relies on a high density of customers from nearby offices, residences, and entertainment activities. The Fountain Hills primary urban core area is along the Avenue, particularly from Saguaro to Verde River. This is an area that should have a predominance of restaurants, retail stores, and entertainment venues on the ground floor facing the street. Shade and outdoor activities such as sidewalk cafes and sitting areas should be readily available. Store fronts should be highly transparent to provide interest to the pedestrians on the sidewalk. Moving away from the intense core of the Avenue, the uses can become broader with a greater mix of commercial and office uses that can be less pedestrian oriented. One of the keys to a successful urban space is the energy that comes from activity that occurs consistently throughout the day and the week. Having residents in and near the area to provide activity and support for the businesses is essential. Implementation Strategies: • Improve the use and activity within the Avenue District by: o Amending ordinances to allow sidewalk cafes and developing standards for implementation. o Encouraging active front patio usage. Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. • Amend the zoning ordinance to require active first floor uses (restaurants, retail, entertainment) along the Avenue District. Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. • Improve maintenance of vacant properties by amending ordinances and enforcement practices for these properties. In process. The text amendment allows additional use opportunities. The next step is for staff to review options to improve the level of maintenance of these properties. • Remove obstacles to development and encouraging the right uses in different areas by: o Reviewing practices and procedures to assist with development. o Amending ordinances to allow up to 12 dwelling units by right on upper floors o Reviewing and amend ordinances as necessary to allow a wide range of businesses on Parkview. • Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. • Improve the design quality of buildings in the Downtown through: o Developing design guidelines for the downtown. – Not started Meeting Packet Page 12 of 296 3 | Page o Establishing a façade improvement program. – Launched in April 2026; Four businesses applied and all scored well to receive grant assistance. Two businesses have submitted for design review. Two others have yet to submit. • Explore options to work with building owners to improve the amount and quality of shade through building awnings. Not started. Focus Area 2: Infrastructure A high-quality built environment that is safe, comfortable, and attractive is important to the success of a downtown area. Through the focus groups, surveys, and open house, a consistent theme was the need for the Town to continue to improve the public space along our streets with outdoor gathering areas, room for sidewalk cafes, additional shade, and lighting. There is a strong desire for creating a place where people can gather to dine, shop, and enjoy a variety of activities and walk comfortably throughout the downtown. The public right-of-way and the sidewalk system are key components of the urban fabric that provides a place for citizens to interact. Providing a consistent sidewalk system that provides connectivity throughout the downtown is critical to the long-term viability of the area. The sidewalk system needs to be free of obstructions and include ADA access to buildings and public spaces. In our environment shade is also an important part of the sidewalk system. Shade can be from trees, building awnings, or other shade structures. Given our otherwise dark skies, pedestrian oriented lighting is also important for safety. Implementation Strategies: • Implement streetscape improvements to include: o More trees and shade along the Avenue o Add sidewalks and trees along Parkview o Fill in sidewalk gaps within downtown boundary o Provide shade over gathering areas along the streets o Provide lighting at street crossings o Add festive lighting in the Avenue entertainment area In progress as part of Capital Improvement Project (CIP) Downtown Streetscapes. • Create small, unique gathering places along the streets with shade and appropriate lighting. In progress as part of Capital Improvement Project (CIP) Downtown Streetscapes. • Explore options to improve pedestrian connectivity between downtown and Fountain Park. Installed marked crosswalks at Saguaro and Parkview and Saguaro and Paul Nordin for improved pedestrian access to Fountain Park. Meeting Packet Page 13 of 296 4 | Page • Evaluate options for improved event parking as recommended by the Downtown Parking Analysis. The options presented as part of the Downtown Parking Analysis are not feasible, i.e. parking garage, shuttles. Staff will continue to explore other options. • Partner with Plat 208 for redevelopment of the pocket parks along the Avenue. Completed. Town staff worked with Plat 208 and surrounding business owners. There was a request to switch the placemaking and restroom locations. The new proposed restroom location is directly opposite of Town-owned property and opposite where event organizers and tenants want to see restrooms. This project is not feasible and will not move forward for redevelopment. • Coordinate with Plat 208 to improve connections from parking areas to streets within the downtown. Not started. Town staff will coordinate with the Plat 208 Board and property owners for access between private parking and public sidewalks. • Determine the feasibility of installing public restrooms in the downtown area through a public- private partnership. Ongoing. While the proposed restrooms on Plat 208 property did not work out, there have been other property owners interested in a public-private partnership. Staff will continue to evaluate these options on a case-by-case basis. Focus Area 3: Economic Vitality Economic vitality involves taking a proactive and collaborative approach to building and growing a diverse economic base through smart new investment, cultivating a robust ecosystem for small businesses, focusing on the unique assets of the Fountain Hills community, and fostering an environment to help build local wealth. Implementation Strategies: • Create flexible zoning uses within the Business District to attract targeted industries and new skilled talent. Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. • Evaluate the current Entertainment District and modify to include uses such as dining, shopping and live entertainment. Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. • Continue to collaborate with Shea-Connelly on the completion of Park Place. Town Council approved an updated Development Agreement on October 21, 2025. Town staff is waiting for the owner to submit new building plans. • Modify the Zoning Code to allow temporary uses on vacant properties. Completed as part of the Downtown Overlay District approved by Town Council on April 21, 2026. Meeting Packet Page 14 of 296 5 | Page • Determine the feasibility of creating programming within the Avenue Linear Park to attract residents, visitors and businesses. The Town partnered with Aesthetic Elegance and Wellness MedSpa who created Yoga in the Park. The Farmers Market and Art on the Avenue will continue November – April. Staff are exploring night markets during the holidays. • Continue small and large-scale events within the Avenue District and determine the feasibility of expanding event footprints to include other districts within the downtown. Staff launched 3rd Thursday Concerts in Centennial Pavilion (Civic District) from November 2025 – April 2026. The concerts will return in October 2026 – March 2027. Oktoberfest moved from Fountain Park to the Community Center/Centennial Pavilion (Civic District). • Partner with The Avenue Merchant Association (TAMA), local attractions and businesses within the downtown area to create a newsletter and schedule of events that can be promoted locally and regionally. In FY2025-26, Council authorized Downtown Digital Marketing. A new Downtown logo was created, Downtown Fountain Hills social media channel, Downtown videos and Downtown webpages located on Experience Fountain Hills. Staff will explore the feasibility of creating a separate newsletter specific to downtown. Focus Area 4: Public Spaces/Placemaking Placemaking inspires people to collectively reimagine and reinvent public spaces as the heart of every community. Strengthening the connection between people and the places they share, placemaking refers to a collaborative process by which we can shape our public realm in order to maximize shared value. With community-based participation at its center, an effective placemaking process capitalizes on a local community's assets, inspiration, and potential, and it results in the creation of quality public spaces that contribute to people's health, happiness, and well-being. Placemaking shows people just how powerful their collective vision can be. It helps them to re-imagine everyday spaces, and to see anew the potential of parks, downtowns, waterfronts, plazas, neighborhoods, streets, markets, campuses and public buildings. During the April 2023 Economic Development workshop, the following question was asked: Placemaking inspires people to collectively reimagine and reinvent public spaces as the heart of every community. Where should Fountain Hills prioritize placemaking? Below are the results: 1. Downtown 2. Four Peaks Plaza/Target Shopping Center 3. Town Hall Campus/Centennial Circle 4. Fountain Park Meeting Packet Page 15 of 296 6 | Page Implementation Strategies: Arts • Partner with the Southern Arizona Arts and Cultural Alliance (SAACA) to administer murals in strategic locations identified by the town. Ongoing. Included as part of Downtown Placemaking (murals on utility boxes). Installation of Fountain Park mural. • Partner with Plat 208 to streamline the architectural review requirements to install exterior murals on buildings located within Plat 208. In progress. Staff met with Plat 208 to discuss streamlining the architectural review related to commercial projects and will expand conversations related to murals. • Install murals on utility boxes located in Downtown Fountain Hills over the next six years, based on town funding. (Exhibit A). Ongoing. Downtown Placemaking (murals on utility boxes) is part of the Downtown Fund. Six to eight murals are completed each fiscal year. • Modify the public art policy to allow for performing and temporary art. Not started. Staff will provide proposed updates to Council at a future date. Signage • Implement Town-wide Wayfinding Signage by December 2025. Completed June 2026. • Install entryway/monument signs within each district to identify and distinguish Fountain Hills’ downtown area. Staff have requested entryway/monument signs for the last two years. Council requested staff wait until after the Wayfinding Signage was complete and to continue to provide visuals of what staff is requesting. • Update the existing street banners along the Avenue District. Ongoing. Staff installed Avenue District banners in 2025 and America 250 banners at the beginning of 2026. New Avenue District banners will be installed September/October. Provide pedestrian oriented signage to direct people to businesses. Not started. Staff will be seeking further input on what is desired. • Allow for additional temporary signage during special events. Some event organizers are taking advantage of installing temporary signage around Town/outside Downtown to promote their events. Meeting Packet Page 16 of 296 7 | Page Budget Implementation Plan The Downtown Strategy will be a multi-year plan that will have budgetary impacts that will include one- time and ongoing expenses. Budget priorities and implementation plans will be part of the annual budget process. Meeting Packet Page 17 of 296 Downtown Strategy Meeting Packet Page 18 of 296 Background •2009 Downtown Vision Plan •September 2023 Approved Community Economic Development Strategy •“Create a new Downtown Strategy consistent with current economic trends.” •November 2023 Update Downtown Strategy •September 2024 Council Approves Downtown Strategy Meeting Packet Page 19 of 296 2024 Downtown Plan Meeting Packet Page 20 of 296 Focus Area 1: Land Use •Six Implementation Strategies •5 out of 6 strategies completed/in process •Highlights •Downtown Overlay District –Approved May 2026 •Improve the use and activity within the Avenue District •Active first floor uses (restaurants, retail, entertainment) •Amend ordinances to allow dwelling units by right •Façade Improvement Program –Launched April 2026 Meeting Packet Page 21 of 296 Focus Area 2: Infrastructure •Seven Implementation Strategies •6 out of 7 in progress •Highlights: •5-Year Downtown Streetscape CIP •Design of Parkview and Verde River •Construction of Verde River –Spring 2027 •Pedestrian Connectivity •Installed marked crosswalks at Saguaro and Parkview/Saguaro and Paul Nordin •Plat 208 •Redevelopment of pocket parks •Restrooms Meeting Packet Page 22 of 296 Focus Area 3: Economic Vitality •Seven implementation Strategies •3 completed,4 in progress •Highlights: •Flexible zoning/Created Innovation District •Temporary uses on vacant properties •Park Place •Updated Development Agreement in October 2025•New Downtown Logo and Socials •New Programming in Avenue Linear Park •Yoga in the Park (Aesthetic Elegance and Wellness)•3rd Thursday Concert Series at Centennial Pavilion •November 2025 –April 2026 •Returning October 2026 –March 2027 Meeting Packet Page 23 of 296 Focus Area 4: Public Spaces/Placemaking •Arts •Four implementation strategies •3 out of 4 strategies in progress •Highlights: •Downtown Placemaking –Murals on Utility Boxes •Murals on Exterior Buildings/Businesses Meeting Packet Page 24 of 296 Focus Area 4: Public Spaces/Placemaking •Signage •Five implementation strategies •3 out of 5 strategies completed •Highlights: •Town -Wide Wayfinding Signage •Update Avenue District Street Banners •Temporary Signage during special events Continued Meeting Packet Page 25 of 296 Questions? Meeting Packet Page 26 of 296 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND SPECIAL SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL June 2, 2026 A Regular and Special Meeting of the Fountain Hills Town Council was convened at 5:40 p.m. Members Present: Mayor Gerry M. Friedel: Vice Mayor Gayle Earle; Councilmember Rick Watts; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Allen Skillicorn Councilmember Hannah Larrabee attended by telephone conference call. Staff Present: Town Manager Rachael Goodwin; Town Attorney Jennifer J. Wright; Town Clerk Bevelyn J. Bender Meeting Packet Page 27 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 1 of 36 Post-Production File Town of Fountain Hills Regular And Special Council Meeting Minutes June 2, 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 28 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 2 of 36 MAYOR FRIEDEL: Thank you. We'll move on now to our call to order for our regular meeting. 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 a moment of silence as our invocation person is not able to make it tonight. So we'll have a moment of silence, please. Thank you. Town Clerk, can I get a roll call, please? BENDER: Mayor Friedel. MAYOR FRIEDEL: Present. BENDER: Vice Mayor Earle. EARLE: Present. BENDER: Councilmember Skillicorn, SKILLICORN: Here. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Here. BENDER: Councilmember Watts. WATTS: Here. BENDER: Councilmember Larrabee. LARRABEE: Here. BENDER: Councilmember McMahon. MCMAHON: Here. BENDER: Mayor, you have a quorum. MAYOR FRIEDEL: Thank you. And we'll move on to our summary of current events by our town manager. Rachael? GOODWIN: Thank you. Mayor. Meeting Packet Page 29 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 3 of 36 I have a few updates tonight, so bear with me. First, as we near the election, I wanted to remind our residents that town hall will have a ballot drop box available beginning the week of June 24th. For the ballot drop box will be available Monday through Thursday from 8 to 5 p.m., and on Election day from 6 a.m. to 7 p.m. We noticed that Town Hall was not listed on the county's website as a ballot drop point, and we brought that to the county's attention. They are reviewing it and will share an update once that has been resolved. We just want to make sure that our community is aware that we are a drop point. Staff will be putting out additional reminders regarding important election dates and information next week, so please follow us online. As we head into summer, save the date for our first Wacky Wet Wednesday. It will be held on June 10th at 4 Peaks Park from 11 a.m. to 12:30. This is always a fun way for families to cool off and enjoy the start of summer. And if it's anything like today, we are starting to see our triple digits, so it's well timed. Work has also begun on the Desert Vista Dog Park, which will remain closed through the month of June while updates and improvements are completed. We appreciate the community's patience as we work and look forward to reopening a refreshed and improved space for our residents and our pets. If you would like more information on that, their website is up to date with the details of that project. And there has been several social media updates featuring our own Mike Pelton, and I think director Snipes back there talking about all of the upgrades that are coming to the dog park. And then last, Mayor and Council, I wanted to add one special recognition tonight. I hope that's okay. On May 28th, our very own Mike Ciccarone reached 30 years of service with the Town of Fountain Hills. Mike serves as our chief technology Administrator, and anyone who has worked with the Town for any length of time knows how much we rely on Mike. Even when he's here, when he's not here, when he's on vacation. When he's hiding in his office, hoping that we don't bug him, he is a very, very, very integral part of what we Meeting Packet Page 30 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 4 of 36 do here. Technology touches nearly every part of town operations, and Mike has been a steady presence behind the scenes for three decades. We want to recognize that milestone publicly tonight. And I'll turn it over to the mayor for a formal proclamation. MAYOR FRIEDEL: Thank you. Rachael. Mike, this is a special one. No doubt about it. 30 years with one organization is a major accomplishment in any field, but it is especially notable in technology, where so much has changed over that period of time. Over the last 30 years, the Town has seen major changes in how we communicate, how we manage records, how we conduct public meetings, how we protect our systems, and how we support employees and residents. Through all of that, you have been a steady and reliable part of this organization. A lot of technology work is only noticed when something is not working. But the truth is, the Town depends on it every single day. Your work has supported every department and helped keep the organization functioning through the years. On behalf of the Town Council and the Town of Fountain Hills, thank you for 30 years of dedicated service. It is my honor to proclaim June 2nd, 2026 as Mike Ciccarone day in the Town of Fountain Hills. Mike, come on up and get this proclamation. GOODWIN: For those of you who don't know -- CICCARONE: It's been a pleasure serving the residents and the Town for 30 years. Granted, sometimes it felt longer than 30, but I'm looking forward to serving the Town for another at least 20. So I appreciate it. MAYOR FRIEDEL: And if anybody would like a cupcake -- Are we going to take a couple minutes to let people grab a cupcake? Five minute recess and let people have a cupcake on behalf of Mike. [CROSS TALK] MAYOR FRIEDEL: Thanks again, Michael. All right. We'll move on now to number 8, which is our consent agenda. Can I get a motion? Meeting Packet Page 31 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 5 of 36 MCMAHON: Motion -- KALIVIANAKIS: Motion to approve consent agenda. MAYOR FRIEDEL: Do I have a second? MCMAHON: I think I made the motion. She -- I think she second it. Right, Brenda? MAYOR FRIEDEL: Check with the Town Clerk. MCMAHON: I'll second it, wherever it goes. MAYOR FRIEDEL: We have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Watts. MAYOR FRIEDEL: Aye. BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. We'll move on to the regular agenda. So item A is a public hearing with consideration of possible action relating to ordinance 2606 amending the Fountain Hills Zoning Ordinance, sections 1.12 and 2.04 A and F, and adding Section 19 06(H) to provide a site plan. Modifications on -- and murals. So I'm going to open a public hearing, and call on the Town Manager. Rachael? Meeting Packet Page 32 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 6 of 36 GOODWIN: Thank you. Mayor. We have John Wesley here this evening. The mural conversation has been one that has been sort of off and on the agenda since earlier this fall. This is now bringing forward some detailed outlines for this -- this type of work in our town. It is a new and expanding area for us. So I know that John has worked with Amanda to take a lot of time and how to present this and bring this concept forward. With that, John, I'll turn it over to you. WESLEY: Thank you, Mayor and Council. Good evening. So as stated, we're discussing some possible amendments to the zoning ordinance to address murals. May recall, as the Town Manager mentioned back last fall, we came to you with this topic because we have had murals being put in various places in town on -- on -- on electric boxes, and that's generated some interest on others to paint their buildings. As we looked at our ordinances, we found we really had no way to regulate or control those. And Council gave us direction to look at that and come back to you with a program and any proposals and ordinance changes that might be needed to address placing of murals on our buildings. And so as we looked at it, we've recognized some need to amend the zoning ordinance to address this topic. We're proposing some amendments in three different areas of the zoning ordinance. First is to provide a definition, definition so that we know what we mean when we say mural. Second amendment is to Section 204 of the zoning ordinance that deals with site plan review to give us that authority when somebody is making changes to an existing building that doesn't have current paint provisions to review. Then that building for application of a mural and then some standards for murals themselves in Chapter 19. So looking at each of those individually, here's the definition for murals, we reviewed mural definitions in a number of other jurisdictions and pieced together from those things what we felt would be a good definition and workable one for us. And so that's the change to Section 12 point -- or 1.12, that definition. And then in Meeting Packet Page 33 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 7 of 36 Section 204 the zoning ordinance or a couple of changes there. Again to make it clear that if somebody is amending the exterior of the building by applying the mural, that we have that ability through our site plan review process to review that type of modification. And then also under the amendments, again, if somebody's making a change that we can review for paint colors and other modifications on the exterior of the building. And then the big change is in Chapter 19 of the zoning ordinance, where we actually add the provisions for murals. It created a new 1619.06H. But it also does point out that one of the provisions deals with paint colors. And that's in there because we have an existing provision that limits a building to a maximum of five paint colors. So the new provision here, H again references back to the definition and says that murals may have more than five colors and then list some specific requirements that must be met in painting a mural on a building. And you can read what those are. But probably the big part of this is the last one, C, referring back to the call to artist program we use currently for the painting of murals on the utility boxes. Those have with them certain design themes and standards. And so this references that that program and those requirements. And so each time we put those out, we set some themes that can be applied. And so if somebody's going to do a mural, they would look at these artistic themes, and whatever they would do would need to be consistent with those. And through that process, we also then are using some outside resources to help us to identify artists and create a list of artists that are then used and available to -- to do the murals. So I think that puts a pretty good control on the types of things that we would see painted on the buildings. It goes on then in the ordinance to list some things that you can't do with a mural, and again, you can read these. I don't need to reiterate all of them, but in particular we're concerned about that balance of the free speech but also controlling of the look. So some things such as no profanity or gory items, violent materials, avoiding people and words because that can start to become political and how those might be presented, Meeting Packet Page 34 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 8 of 36 and then avoiding signage. If somebody really wants to do a sign that's covered under the sign ordinance or trying to avoid that, and then not allowing them on historic property, and then they need to be maintained in a good order. So item three, when we reviewed this with the Planning Zoning Commission, they were a little concerned that that statement might not be quite strong enough. And they suggested we do a little bit more to ensure the murals are maintained. As we thought about it, and what was put in the packet was we can add an extra sentence on there, which is what we would do anyway. We refer back if somebody's not maintaining anything according to zoning ordinance, we go to our enforcement procedures that are in the zoning ordinance, which then allows us to issue notices of violation and ultimately citations. So we could make that more clear by adding the sentence on there. Anything beyond that, about the only way we could address it is if somebody doesn't follow up and maintain a mural would be for the Town to go in and repaint the building. We don't necessarily want it to go there and felt that might be too much to put in here, but -- tut you know, we could add that sentence. If the Council thinks it's important to help enforce this provision. Next provision is again, referencing back. If you're going to paint a mural, you have to use somebody off the Town's list of approved mural artists. PNZ commission was concerned that we ought to limit that to Arizona only artists. We could do that. That might limit it somewhat. Again, they go through an extensive process to solicit artists to do these murals as reviewed by a professional group. And if we happen to get somebody on that list from outside of Arizona and a local property owner wanted to use them, I'm not sure why we'd want to limit that. But we could add that sentence into the Code if desired by the Council. And then third, the PNZ commission was interested in establishing a process where there might be some type of other oversight committee or commission that would review these murals and not just leave it to staff. And so item five in the draft ordinance that was in your packet has that in there. Staff has some concerns with this particular provision. We've had experience before Meeting Packet Page 35 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 9 of 36 with committees and commissions that review art, and it's been a challenge. It can bog down the process and delay in there for someone wanting to get their building repainted, get the mural on there without really necessarily adding any additional benefit to the Town. We've gone through the process to -- to solicit and have a list of very qualified mural artists already selected, themes that are already pre-described for them to use. So again, staff sees that as is not really being necessary in the ordinance. And so staff recommends the ordinance as it was submitted to the PNZ commission. But if Council would like to consider any of those other three items that were suggested by the PNZ commission, we can review that in the adopted ordinance. Any questions for me at this time? MCMAHON: Thanks, John. I appreciate it, and I appreciate your assistance today in trying to understand this, but I have a question with the addition of number five for the 1906. Number four says that we're -- we're working with the Call to Artist program, and also a list of the pre-qualified artists. Is that -- and is -- are all those pre-qualified only Arizona artists, or is there a conflict between these two proposed sections? WESLEY: Mayor, Councilmember, I would have to defer to Amanda Jacobs to know if we've had any non -- non-Arizona artists on the list currently or previously. But whether we've had some in the past or not, we could in the future, it's always a possibility. MCMAHON: Okay. JACOBS: Shall we dance? MCMAHON: Thank you, Amanda. JACOBS: Thank you, John. Mr. Mayor, Councilmember McMahon. All of our current artists are from Arizona. To John's point, we do a national Call to Artist. The last time we went through this, there were a couple of out of state. But if you look at page three -- I have a hard copy. You guys have it electronically. But in the call to artist eligibility says this call is open to professional artists and artist teams living in Arizona. So that's a requirement to be Meeting Packet Page 36 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 10 of 36 eligible and selected. MCMAHON: So they have to be living in Arizona. JACOBS: Correct. MCMAHON: So it's not -- JACOBS: Correct. MCMAHON: And that's what the language will say if it's approved or -- JACOBS: Yes. So within the Call to Artist, we don't think we need to get so specific in the wording. Only Arizona artists may be used. We're okay with that. Or do we want to modify that? MCMAHON: Okay. So we're -- we're saying it's within the Town's list of pre-qualified artists. That's what the language is going to be? JACOBS: Correct. We'll have John clear them. WESLEY: And Mayor, Councilmember. So that's what it says in the Call to Artist -- MCMAHON: Okay. WESLEY: -- program currently, is that it needs to be an Arizona artist. So it's not necessarily needed here because it's covered there. But if -- it's redundant but it won't hurt to be here if the Council wants to leave that in okay. MCMAHON: But 1906(H) says only Arizona artists. So which one are we using? WESLEY: So both; we can use both. MCMAHON: Okay. WESLEY: If you take -- if you take it off of here, it's still in the artist program -- MCMAHON: Okay. WESLEY: -- documents. So it'll still be there. So whether it's here or not it -- that is a standard -- [CROSS TALK] MCMAHON: So it's not a contradiction. It's what I want to make sure. So thank you, I appreciate it. I didn't mean to put you on the spot, so. WATTS: John -- pardon me, John. 2.04(H) has a list of cannots. What I didn't see in there was anything that related to campaigns, movements, political actions of any sort. Meeting Packet Page 37 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 11 of 36 I want to make sure those types of things were excluded as well. WESLEY: Mayor, Councilmember, some of that gets a little bit challenging to put in as specifically as that. We think we've covered it in the fact that, again, you have to follow the theme that's in the call to artist program. And so those themes will pretty much exclude those. But then here you can't use any words and you can't depict any people. It would be challenging to go very far and do anything that is political or those types of topics that you just mentioned. MAYOR FRIEDEL: Okay. And my second question is, is there a way -- I know we struggled last year with getting artists to respond. Is there a way that we can put a caveat in there that says for Arizona artists, we're going to give you a ten percent allowance? Something like some of the different types of organizations that have beneficial treatment when they submit to RFPs and open it up to the nation as a whole and say, any artist but Arizona artists, we give a ten percent allowance to? WESLEY: Mayor, Councilmembers, certainly anything's possible under the scenario. I'm not sure how that plays out. For the most part, these will be artists that individual property owner will then hire to do the work. And so I'm not sure that ten percent favorability comes into that -- that property owner that's now hired the artist to do the work. MAYOR FRIEDEL: We're not hiring the artist. WESLEY: Correct. WATTS: We're just making the approval. WESLEY: Correct. WATTS: But you could have an incentive that was a ten percent reduction in permitting fees, for instance, for Arizona artists. WESLEY: Again, anything may be possible. I'd have to maybe defer to the Town Attorney about where we might get begin with any gift clauses or those types of things, but -- JACOBS: Mr. Mayor, Councilmember Watts, I'm going to jump in just to clarify. So we actually have never had an issue with the call to artist process. We get over 18 Meeting Packet Page 38 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 12 of 36 artists. Of the 18, the last session we probably had two that were out of state. And then this current cycle. So in October, we were able to obtain three new artists. So there hasn't been an issue where we're going to have to give them more money. WATTS: Okay. Then I misunderstood. I thought last year we struggled getting responses, and I was trying to find a way to incent people -- JACOBS: No. WATTS: -- some of the artists to come on Board. JACOBS: So that would that would be incorrect. WATTS: So thank you for the clarification. JACOBS: Yeah. You're welcome. MAYOR FRIEDEL: Thanks. MAYOR FRIEDEL: Councilman. SKILLICORN: Thank you. Thank you, Mr. Mayor. Director Wesley, it all looks pretty good to me. It sounded like you had a reservation on 19(H), about the committee. WESLEY: Correct. SKILLICORN: So you would prefer staff to do the oversight instead of committee? WESLEY: Correct. SKILLICORN: And you know, Mr. Mayor, I think that's -- that's a good idea. That's a good change. If you're receptive, I'd like to make a motion with that -- that small amendment. So I'd like to amend to approve it as drafted, other than an H and H, take the committee out and allow staff to have that discretion. WATTS: I'll second that. MCMAHON: Didn't -- you already amended that number four. You took that out? WESLEY: Mayor. Councilmember. That was number five. And so unfortunately, I created a little confusion in this in the way I wrote the report and what I attached to it. The ordinance that I attached to your staff report did have the committee on there. And so it probably would be best to make it clear in the ordinance that you're proving that it does not include that just so. Meeting Packet Page 39 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 13 of 36 MCMAHON: Okay. Thank you. I thought in your amendment that you did that. MAYOR FRIEDEL: Councilmember. KALIVIANAKIS: Yeah. Thank you. Thank you, Mr. Mayor. Yeah, actually, my point was with Councilmember Skillicorn's point. That's why I want to bring up to you. I was actually going to ask you for your reservations on that, but it seems like this body has pretty much decided to just go with the streamlined version and just have staff review it. And so that was my question, and I think it's been asked and answered, but I would -- I would support that motion with that amendment. MAYOR FRIEDEL: Town Manager. GOODWIN: Mayor, if I may, I just want to clarify the motion, because I think to your point, John, there was a little bit of confusion. So what I heard the Council say and what I heard Councilmember Skillicorn mention, we -- you want to submit the version that was submitted to PNZ. Is that correct? Is that the version that staff is recommending this evening? WESLEY: Mayor, Town Manager. So what I heard Councilmember Skillicorn say was to remove five -- GOODWIN: Correct. WESLEY: -- which is the committee. The other two items that were maybe of question about the extra reference on maintenance and the reference to the Arizona artist. GOODWIN: We're going to keep those. WESLEY: We'll keep those in. That's not a big deal either way. GOODWIN: Okay. WESLEY: And so I think that's clear what -- from what was stated. GOODWIN: Fantastic. Just want to make sure. Thank you. KALIVIANAKIS: And thank you. And then then my -- my other question was, it seemed like -- and again, I'd like to just have you weigh in on this, but as part of our package was regarding enforcement, because when the murals first go up, they look great and everyone's very excited. But then as the Arizona sun, we know what it does to murals, plastics, everything. It degrades them rather quickly. I would kind of like to see more Meeting Packet Page 40 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 14 of 36 teeth put into this, that if the Town sends a compliance report that's ignored, or they don't repaint a mural that's dilapidated, that we have the authority -- the Town does to repaint the mural and bill the property owner. If we approve the version that we're talking about right now, would it include that, or would we have to add that to the PNZ version? WESLEY: Mayor, Councilmember. There's nothing specific in this ordinance that that includes that provision. The -- as you state, the typical process would be some notices and then violations. Those violations can get very stiff over time if the property owner does not comply and do the painting. We do have general -- and the Town attorney can jump in here and help me as I might need it. But we do have general authority to abate -- issue abate violations of the code. Does that extend to our ability to repaint somebody's building for them and charge them for it? I don't know that it does it. It might. We can go out and -- and you know, deal with green pools or hazards and abate those. But whether we could really use that same authority to paint somebody building for them it may just be painting over it rather than actually repainting the mural if we did that. KALIVIANAKIS: Right. And it says repaint the building and charge the cost of the property owner, and I think I'd be for that. And again, sometimes we have code violations go on for years and they pay them and they're unresolved. And I think you'd be the one that could testify to that. And so again, this would be giving it some teeth. And I would respectfully ask Councilmember Skillicorn if he would consider a further amendment that he already added to include a time period that the Town could step in, because as we're writing violations, we're still -- we still have the mural that looks terrible and that people are like, what are they going -- what are they going to do about that mural that was put up seven years ago? So I would like to see that further amendment to give the Town teeth to like, look, if you're not going to paint it over, we're going to paint it over and send you the bill. I think that would be good public policy. LARRABEE: Mayor. Meeting Packet Page 41 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 15 of 36 MAYOR FRIEDEL: Yes, Hannah. Yes, Hannah. LARRABEE: Apologies. Thank you. Mayor. I, if I may, through the Mayor, I'd like to ask the Town attorney a question. Is that -- what was suggested by Councilmember Kalivianakis, are we starting to leak into property rights issue there? If we -- I understand they'd be in violation, but are we able to just say, if you don't comply, we'll paint your building? WRIGHT: So Mayor and Councilmember Larabee. So in response to that question, we already have the provisions within our enforcement action. So already listed here under three. It states that failure will result in enforcement action as provided by 1.1. If somebody is outside of the scope of the zoning ordinance and we need to do corrective action, we actually can charge them for the corrective action to get them within compliance of the zoning code. We also have the ability to assess fees and fines for every day that they're in violation. So those can also be used to pay for any repainting the building. So if it's outside of the zone, if they're violating the zoning code and we have to fix that -- that zoning code ordinance violation, then yes, we can. And I understand your private property concerns, but if it's outside of the zoning code, then, you know, then it kind of -- we do have the right to provide ordinances regarding esthetics of the community to maintain certain appearances to -- to -- to prevent blight those kinds of things. So that's all within our purview. And it's already existing in our zoning ordinance, so I don't think we'd need to specify it here. In my opinion. I think it's already implied by being able to go into our enforcement procedures within our zoning code and within the -- that we -- that currently exist. LARRABEE: Okay. Thank you so much. BENDER: You're welcome. MCMAHON: Thank you. Need clarification. Sorry. Is there four, and is there a five in the 1906(H) or no? Because I'm trying to understand where the -- if there's -- it's my understanding the Town's going to manage this and take care of it. There's not going to be a committee. Correct? Meeting Packet Page 42 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 16 of 36 WESLEY: Correct. Mayor. Councilmember. Yes. As it's been, the motion has been to remove five. MCMAHON: Okay. Thank you. I appreciate it for the clarification. SKILLICORN: Thank you, Mr. Mayor. So in -- Director Wesley, I believe, was planning zoning that added the red sentence about enforcement? WESLEY: Yes. SKILLICORN: Right. So my intention was that the motion included that read sentence. Right. Would you need more than that to enforce it? I mean, because there was a question about adding a time frame. I'm -- I do not oppose adding something like that, but I'm not sure it is necessary. So I would -- you know, as the person that has to do it, do you need something more specific in there? WESLEY: Mayor. Councilmember. I believe that we do not. I believe it's fine as -- as it's drafted that you've made the motion on. SKILLICORN: So Mr. Mayor, it sounds like any further revisions is moot -- or moot. MAYOR FRIEDEL: Town Clerk, do we have any comment cards? BENDER: No, Mayor. I did not hear a second. Was there a second to the motion? EARLE: I'll second. SKILLICORN: Councilman Watts. MAYOR FRIEDEL: Watts. BENDER: Okay. MAYOR FRIEDEL: Councilman Watts. BENDER: Thank you. KALIVIANAKIS: And just one more before general discussion to John. John, just to clean up what Allen said. Again, just -- just reading the report, it said the only other option to enforce maintenance would be to include a provision that allows the Town to repaint. So you're saying that has already been included in the redline version? Because I didn't see it. WESLEY: Right. Mayor, Councilmember, to the attorney's point. It's already included. Meeting Packet Page 43 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 17 of 36 That's why we didn't put it in there. But if it was just highlighting, if the Council still wanted something even more specifically stated, we could, but it's not necessary. KALIVIANAKIS: So -- WESLEY: And again -- KALIVIANAKIS: We're giving you the authorization to repaint right at some further date, just to clarify. WESLEY: Right. Yes. Again, Mayor, Councilmember, in recommending this to the Planning Zoning Commission, we just had the parts in the black letters, even that I felt was appropriate and would give us sufficient authority to do what we needed to do. We added the red in response to the PNZ commission to take it one step further. KALIVIANAKIS: Okay. So we don't need to take an additional action? WESLEY: I don't believe so. KALIVIANAKIS: Okay. MAYOR FRIEDEL: Okay. There's no comment cards. I'm going to close the public hearing. And we have a motion and a second already on the table. Can we get a roll call vote, please? BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Watts WATTS: Aye. BENDER: Councilmember Skillicorn. SKILLICORN: I'm pro mural. Yes. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. Meeting Packet Page 44 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 18 of 36 MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. Moving on to agenda item B, consideration and possible action regarding six month extension of the SUP for the Dairy Queen, located at 13212 North Saguaro Boulevard, approving the reduction of up to nine parking places. Town Manager, Rachael Goodwin. GOODWIN: Thank you. Mayor. This item was originally heard by the Council back in December. The SUP currently is set to expire during. I believe it's during your summer break. So they are here anticipating that and requesting an extension. With that, John will give us the details and background. WESLEY: Okay. Mayor, Councilmembers, I will go through this fairly quickly, but if you have questions, I can slow down. As was stated, we're dealing with a property at the corner of Palisades and Saguaro. The property owner there has requested or did request an SUP to eliminate some of the parking spaces along the south side of the building in order to add a drive up lane for a Dairy Queen facility that will be put into the building. That was approved by Town Council back in December on the 16th. They've got six months from then to submit their building plans. They have been working on them, but they have not submitted them yet and anticipating they wouldn't get them in before the 16th of this month. They requested the extension so that it can stay active as allowed by code. The ordinance does allow for these extensions when requested by the Council. There's been no particular changes in the area. There have been no particular changes in the code, and so staff does not see any issues with an extension at this time, and we recommend approval. MAYOR FRIEDEL: Councilman Skillicorn. SKILLICORN: Thank you, Mr. Mayor. As a pro ice cream voter, I'd like to make a motion to approve as drafted. LARRABEE: Second. Meeting Packet Page 45 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 19 of 36 MAYOR FRIEDEL: We have a motion and a second. Councilman Watts, do you have something? WATTS: John, do we have any provision for sunset clauses on those SUPs for anybody at this time? Or is that something we have to address in the future? Applying sunset clauses to SUPs? WESLEY: Mayor. Councilman, we do have sunsets. That's why that's before you. This would sunset. If you didn't do the extension, they'd be done. They'd have to start over again. We have two others in there. The first hurdle is you've got to submit your building permit within six months, and then you have to get your building permit approved within 12. And for those that don't require either one of those, you've got 18 months to establish use. And if that doesn't happen then it sunsets. WATTS: So sunset clauses would be more applicable to something like a PUD, PAD going forward then. WESLEY: Yes. WATTS: Correct. WESLEY: Right. WATTS: Okay. Thanks. MAYOR FRIEDEL: Do we have any comment cards, Town Clerk? BENDER: Mayor, we have one. It is Kim Oborski. OBORSKI: Hi, I'm Kim Oborski and a resident of the Town. It doesn't sound like this is necessary, but I just felt like I needed to come up to support my friends, because a number of them are just giddy about Dairy Queen reopening in town, and two of them -- no more than two of them, have a date to meet there the day that it opens. And these are not young people. So you know, I think that Dairy Queen, everyone's excited. And I think this is another thing to -- to attract young people to our town. And just as a side note on that, I think we need to add some more of those cool swings right over there on the lake near the Dairy Queen so people can take their, you know, vanilla swirl chocolate dipped and eat it on the swing. That's all I got. Thanks. Meeting Packet Page 46 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 20 of 36 MAYOR FRIEDEL: Thank you. Do we have a motion? And a second. We have a motion and a second. Roll call, please. BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Larrabee LARRABEE: Aye. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Watts. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. Welcome back, Dairy Queen. All right. Moving on to item C. It's consideration and possible action regarding Cooperative Purchasing Agreement 2026-063 with Duncor doing business as Summit West Signs. Rachael. GOODWIN: Thank you. Mayor. Justin, thanks for being here tonight. He's going to -- Justin's going to walk us through the conversation about our illuminated signs. A number of them are in need of replacement, and we need we're in need of a contract to do so. All of our illuminated signs are featured at our different traffic signal intersections. So with that, I will turn it over to Justin to give us any details we need. WELDY: Thank you for the opportunity, Mayor and Council, if you drive throughout the Meeting Packet Page 47 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 21 of 36 Town during the daytime, you're not likely to notice as often that the eliminated intersections, the traffic signals. We have green and white signs up there indicating what the streets are. In the past, they used to have the block numbers on them: 16,000, 17,000, 18,000. With the advent and advancement of technology, we no longer do that. However, the signs are subject to all of the elements that the desert provides, and deterioration, especially as of recent, has been accelerated. We had them on a rotation for repair and or replacement, and unfortunately, the vendor that did that for a considerable amount of time simply vanished. We were startled by that and spent a considerable amount of time reviewing our are available options. You'd be surprised how many people want to give it a try. Well, the Public Works Department in the Town is not in the give it a try business. So we did some research with the help of the procurement officer, Rob Durham, who's in the back of the room, I believe, and discovered that the one GPA contract with a local, long time established sign shop was the best affordable option for the Town. As we discussed this and we've all had an opportunity to read this contract, $150,000 is a lot of money. It certainly is. But when you look at the complexity and the size of these signs, you have a little bit of a better understanding. Now, keep in mind that some of the oldest ones that we have are currently still operating on fluorescent tubes and, in rare cases, incandescent lighting. As we repair or replace these sign faces and the casings that hold them up there, they will be eventually, not right away, converted to a more efficient and more reliable LED system. I would like to note that as a sample run with this group, we are going to be starting at the intersection of Avenue of the Fountains and Palisades. Perhaps over the next couple of days on your coming and going to different places. Perhaps driving by the future Dairy Queen location, you can take a look at that area and have a better understanding of why this is necessary. It simply has to do with the aesthetics, the upkeep, and the appearance of the Town, and in order to establish that, and keep those goals, and meet those demands, we have to spend money. Please note we are confident in the process, but this is a new vendor to us in regards to Meeting Packet Page 48 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 22 of 36 this. So the first intersection will be the test to get the kinks and stuff out. If they are able to accomplish that, and that will start in July and August most likely. Then we will move to the next intersection that needs the most attention, and so on and so forth until we get them all up and operating over the next 12 to 15 months. And then we'll go back to a basic maintenance on the contract. So the dollar threshold is an opportunity for staff to catch up on the backlog. With that said, if there are any questions I can answer, I'd certainly be happy to do so. MAYOR FRIEDEL: One easy question, this doesn't include the flashing stop signs that I hope that if they're not working, they're not applicable, are they? Maybe that's -- maybe that's a question for Captain Thomas. If they don't flash, we don't have to pay attention. WELDY: Mr. Mayor, Councilmember. So I'm not going to speak on behalf of law enforcement, but the flashing LED stop signs in the illuminated street name signs are totally different. MAYOR FRIEDEL: Okay WELDY: Two different vendors, two different manufacturers. Two different challenges. MCMAHON: I'll make a motion to approve. MAYOR FRIEDEL: Second. MAYOR FRIEDEL: Before we get to the vote, are there any comment cards, Town Clerk? BENDER: No. No, Mayor. MAYOR FRIEDEL: Thank you. Also, we have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Kalivianakis. Meeting Packet Page 49 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 23 of 36 KALIVIANAKIS: Aye. BENDER: Councilmember Watts. WATTS: Yep. MAYOR FRIEDEL: Vice Mayor Earle. EARLE: Aye. BENDER: Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. Moving on to item D. It's consideration and possible action related to any item included in the Arizona Cities and Towns weekly legislative bulletin. There hasn't been a whole lot going on. They just went back into session. So Town Manager. GOODWIN: Yes, you're right. Monday there was not a meeting again. They just reconvened. So we're kind of waiting to see where they go with the budget. Was there any questions or anything else going on out there that any Councilmembers were interested in? Otherwise, we're kind of sitting tight. MAYOR FRIEDEL: Okay. So moving on to item 10. I'm going to recess the regular meeting and open a special session. And that's a public hearing with consideration possible action relating to resolution 2026-11 approving the final budget for the Town of Fountain Hills for the fiscal year July 1st, 2026, and ending June 30th, 2027. Town Manager. GOODWIN: Mayor. Thank you. Arguably, this is the biggest action we take every year, which is to adopt the final budget. The tentative budget was brought to you at our May 2nd meeting. So Paul is here tonight to present our final budget and walk through any changes from that, present any details, answer any questions, and hopefully, move forward with this item. Paul, I'll turn it over to you. SOLDNER: Okay. Mayor, Vice Mayor, and Council, thank you for the opportunity tonight. I know last year, I kind of look back at last year's presentation, and there was a Meeting Packet Page 50 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 24 of 36 lot of public comment on capital project. And Rachael called this my Christmas Eve, and it really is. It's my finish line. It's been a long year. We -- we do have a lot of public input in this process. We have a lot of public discussion, and this is really a culmination of that. So this will go quickly, and I'd be happy to answer any questions or discuss anything in the budget if you'd like to along the way. So here's everything public facing that we've done this year. We've had two work sessions, which we kind of call retreats in November and February, where we were here in the Council chambers about six hours at a time, discussing several budgetary issues and priorities. We also had an open house in the Council chambers, about 20 residents. I don't know how many of those were staff, but about 20 people were there. But it was good. It was a good conversation. I really appreciate those, you know, take some time to prepare. But I do appreciate when the public comes to those -- those meetings. March, we had a long meeting related to capital improvement plans for next year. We discussed all the capital projects in depth. Then we brought the proposed work the proposed budget, to a work session in April, followed by the tentative budget approval last month. So tonight, this is our finish line, and I'm happy to be here. Our tentative budget was approved unanimously by Council on May 5th, seven zero, and it set the maximum budget for next year at $50.3 million. As a reminder, we budget to make sure we're at least $1 below the constitutionally required expenditure limitation of $38.2 million for next year that's set by the State. So we walked through that quite a bit in previous sessions. But that's something as part of our practices and our budgetary process. Also, we have $1 million in our general fund contingency. We kind of talk about this every year. We've talked about a few times. We were that was our goal going into this process to have at least $1 million. We're like, really spot on, pretty much. And you know, we've talked a lot about our conservative revenue projections. So at this point, I do want to say, like I've talked about in some of our quarterly reports, our revenues have started to pick up. Meeting Packet Page 51 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 25 of 36 The past five months have been much better than the previous year and a half. And so for whatever reason, the Town is seeing raising revenues, a possible economic expansion. So going into next year, I feel really good. I think you're going to see a lot of quarterly reports where we're, well, exceeding our projections, and we'll have to work that into our fiscal year 28 budget plan to see if there's additional resources available. Another thing to note, road paving in our operational budget. Last year we had a CIP as well for Palomino, but we did -- the Council did approve an increase to our operational budget for road paving at $6 million out of 8.3 million total in the streets fund. One thing we also like to point out is what are our budget expenditures for all the departments in the general fund, not considering the contingency. So you can kind of see what's really going up in the budget. It's similar to last year, about four percent increase of $900,000 at 25.8 million for next year. This is kind of where we landed on all the buckets. We -- we like to call our funds buckets. It's just a good way to illustrate. This is where the money is going for different purposes. And as you know, our general fund pays for almost all the Town's core services for our residents and $26.8 million for next fiscal year. Streets fund 8.3 million, as previously discussed, our capital improvement plan $11 million, which is a decrease from fiscal year '26. But keep in mind, we are earmarking other funds like development impact fee funds to pay for that -- that plan facilities reserve funds 600,000 like we've discussed. We're earmarking some of that money to go into the capital improvement plan. And we're also setting aside that lake cleaner money, although part of that is also earmarked for the design of the lake cleaner project for next fiscal year. Special revenue fund. Most of that is just in case we receive grants next year. I know we're actually going to start working with the fire department. I don't know if Rachael knows this yet, but we're working with the fire department starting next week on another grant application for next year, trying to apply to possibly get the feds to pay for a fire truck. So that would be something that's exciting, but we'll have to see how that Meeting Packet Page 52 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 26 of 36 goes. Economic development funds. So the three funds that the economic development director manages, number one, the Economic Development Fund, Downtown Strategy Fund and Tourism Fund, a little bit over one million and close to 1.1 million in total across those funds, all other funds of the Town, about 14, 15 other funds. You're looking at about 800,000. Most of that for vehicle replacements. So just wanted to give a brief recap. I know we've talked about a lot, but that's kind of where we landed in the final budget. Total budget of $50.3 million. And so one thing, in our town code, it talks about how the Council approves certain recurring goods and services, things we pay for year after year, or things that are mandated that we've talked about with Council many times, that proving the budget kind of similar to our approach with our fully authorized green light capital projects that we can move forward on these items. So we're listing them here. It's included in the budget implementation policy as well, and really should be familiar with most of these. The first three are related to the environmental program related to environmental mandates at the County and state level that we kind of have to do, like street sweeping, wash maintenance and things like that. So in the general fund, out of the Public Works Department, $450,000 for Washington Dam maintenance, 135,000 for street sweeping, and 103,000 for professional fees for MS4 required program steps. The next item, landscaping. If you look at the bottom line two, that's also for landscaping. So there's some nuance to this. We budget for landscaping at our parks and our facilities, out of the general fund and for our street medians and right of ways out of our streets fund. So you see the different budgetary items at 363,000, 346,000. But another nuance to that is we just completed a bid process to find a new vendor for landscaping, and the bids came in pretty well below those amount -- those budgeted amounts. So that's something that would be an opportunity for next year to possibly consider reallocating Meeting Packet Page 53 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 27 of 36 some of that budget. $6 million for the Pavement Management Program. You're approving it in the budget, but we're also going to bring Justin back up another time to discuss the plans for next year as well. And then, like we've talked about, we have other budgetary items in the streets, fund for other streets, maintenance and repairs like striping, signage, concrete. Those combined to be 320,000 and traffic signals 80,000. So these are things that we do year after year that are in the budget. They may change slightly year to year, but through the budget process, we're asking that you approve that. So we don't always have to come back for specific Council approvals on these items that are going on year to year. So in a nutshell, this is what our budget looks like. You'll see that our projected revenues and expenditures went down by about six percent. Most of that has to do with the Dark Sky Discovery Center grant from last year or this year. The Council -- I know I've said this so many times, but I just want to make sure that I'm transparent. Explain to the public that we budgeted $3 million in projected revenues and expenses last year for fiscal year '26, in case we were able to get that grant from the feds to work with the Dark Sky Discovery Center. We did not receive that. So we did not receive the money or spend it in the budget, we took it out. So it does make it look like our budgets reducing in both aspects, but that's the main explanation. Also explain the reduction in expenditures, our capital improvement plans a little bit lower than -- than fiscal year '26 at $11 million. Expense limitation exclusions at $12 million. We are projecting or budgeting to spend a little bit less of those revenues. And it's just simply because we're doing a lot of road work this year, so we don't have as many exclusions to use. We're not using all of our exclusions, but we're using less than -- than fiscal year '26. And then the last one is the expense limitation at 38.2 million. That's not set by us. That's set by the State in accordance with the Constitution and statutory guidance. But it's something that we have to comply with as a town or any municipality. So in a nutshell, we like this has been a good -- I would say, slide for us. We like to Meeting Packet Page 54 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 28 of 36 present it because I'd like to think it shows how we manage our budget wisely and lean and conservatively. We compared and we did the same thing last year. We compared all the same East Valley municipalities, most of them in Maricopa County, looking at our budgeted amounts in the general fund, or if any other governments use other funds to pay for public safety, because we were trying to look at core services, you know, public safety, parks, development services, building things like that. So trying to compare apples to apples to the best of our abilities. If you look at our budget for fiscal year '26, the one we use, fiscal year '26 also because that's what's available and ready for this analysis. So if we look at fiscal year '26 per capita, we -- we budgeted $1,064 per resident, about 35 percent the amount the Paradise Valley does for similar core services. So you know it -- you know, I would say we're lean. I think the data supports it. And I do want to make that transparent to the public. So that's why we present this. And so with that, that's the budget in a nutshell, and I'm happy to answer any questions. MAYOR FRIEDEL: I have a comment though. Thanks for the -- the great job you do, Paul, and your -- and your team. And you can see how efficient this town is by your numbers that you're showing there too. So again I know we've gotten awards year after year for what you guys have done. So we really appreciate your efforts and your team's work on this. So -- so thank you for that. SKILLICORN: Thank you, Mr. Mayor. And I'd just like to thank staff and the CFO. One, you know, with such a great communication putting -- putting everything together so people can easily understand it working with obviously quite a few different demands, balancing that. And I also want to thank you for some good news. With the revenues improving it really does seem like it's a well-oiled machine and things are going well. It's exciting to see. It's exciting to see, you know, a new sales tax generator, and dairy Queen coming to town. Grocery store, things like that. That's just such good news. Over and over again, we hear a lot of good news. So thank you so much. MCMAHON: Thank you. Paul, I really appreciate your and the staff's work. It's been a Meeting Packet Page 55 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 29 of 36 long road. We've gone back and forth a lot. And the budget shows your discipline and respect for the Town and -- and the dollars that we do have and using them wisely. So thank you very much. And also, congratulations on your award. WELDY: Thank you. MCMAHON: And I make a motion to approve. WATTS: Second. MAYOR FRIEDEL: And before we go to a vote, do we have any comment cards, Town Clerk? BENDER: No, Mayor, we do not. MAYOR FRIEDEL: Thank you. So we have a motion and a second. Can we get a roll call, please? BENDER: Councilmember McMahon. MAYOR FRIEDEL: You know what? Before we do that, I think I need to close the public hearing. Now we'll go to the vote. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Watts. WATTS: Aye. BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Vice Mayor Earle. EARLE: I'd like to add to my vote, Aye. Merry Christmas. WELDY: Thank you. Meeting Packet Page 56 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 30 of 36 BENDER: Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. WELDY: Thank you. MAYOR FRIEDEL: Now, I'm going to close the special session and reconvene our regular meeting. And we'll move on to the call to the public. Do we have any speaker cards, Town Clerk? BENDER: Yes, Mayor. We do. We had five speakers, but one individual left. And I passed around what he left for you. We will go with Larry Myers first, followed by Shelby Blecher, followed by Crystal Cavanaugh, and then Wendy Dashel. MYERS: Mayor, Council. Larry Myers, resident just shy of 45 years. So kind of timely that we had our budget report, and it was efficient, and it showed revenues rising because last week. I can't let this go without the public here and also the People watching on TV. There was a resident that stepped up to the microphone, and I'm sure it was for political purposes, stated that their revenues were higher under a previous administration, which I'm pretty well aware of that because I used to interact with David Paak quite frequently, since the Town is pretty transparent in most aspects, especially in finance. The revenues were not higher under the previous administration. If you take out the $11 million handout from the federal government of the COVID money. So I'm sure he was unaware of that. And it was a -- he'll correct his mistake the next time he steps to the microphone. That's the first thing. Second thing I have to correct. And it's not taking place here on the dais, but in the newspaper and in social media, there are certain individuals that are taking credit for bringing Sprouts here with a vote and blah, blah, blah, blah, blah. Well, I had a son that worked for Sprouts a while ago, long before Sander even bought the plaza. So there was no vote that brought Sprouts here. Sprouts was talking to the Basha Meeting Packet Page 57 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 31 of 36 family, who I am also pretty savvy with, the extended family. And they were actually talking to the Basha family about the Basha store in the Basha Plaza before any of this took place. So they've been eyeing Fountain Hills for a long time, and it definitely has nothing to do with 300 one bedroom apartments. It has to do with a pretty well-to-do community that shops wisely, buys organic produce. And that's there a high end grocer, or a mid to high end grocer. And they were actually talking about being in the Basha Plaza before the Basha family sold it to the Sacramento Company. So let's just make that clear because all of this is rather political. Let's put this administration down and let's boost another administration up. And then let's take credit for things we have no credit for whatsoever and just leave that be. We're lucky to have Sprouts, and we'll be lucky to keep them. Thank you. MAYOR FRIEDEL: Next speaker. BLECHER: Good evening, Mr. Mayor, Town Council. Shelby Blecher, resident of Fountain Hills. A resident wrote something and posted it to several Facebook groups. I feel the need to read that opinion into the record for everyone in Fountain Hills to hear. The Democratic club stated position. You can go look that up. The stated mission sounds pleasant on the surface, but it raises serious concerns about partisanship, exclusion, and the narrowing of civic discourse in Fountain Hills, with the three liberal candidates supported by the Democratic Club are proposing is not a community effort but a political silo. A mission statement centered on promoting the democratic community divides residents rather than unites them. Fountain Hills belongs to all the residents, not any one political party. The mission statement also promises to support democratic values, goals and activities. But which values which goals residents deserve specifics, not vague political slogans. And that raises a larger issue. We keep hearing about fiscal responsibility, transparency, and community engagement from our liberal candidates. Those sound great, but they Meeting Packet Page 58 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 32 of 36 are assertions, not evidence. If the Town government is failing, where specifically, what spending would they cut or reprioritize? What budget decision lacked transparency? What process would they replace? What policy should have been adopted but wasn't, and what harm resulted? These are not trick questions. They are the minimum standard for anyone seeking public office. The facts matter. Fountain Hills already operates with a balanced budget. The Town maintains public participation through open meetings and public comment. It already has an active economic development strategy focused on supporting local businesses. So if transparency is lacking, what's being hidden? If businesses are being harmed, which businesses and by what policy? If fiscal responsibility is lacking, which expenditure is irresponsible? Specifics matter. Good ideas should stand on their own merits. They should -- they should not need Partizan branding. And perhaps the most revealing part of the mission statement is its commitment to encouraging and supporting Democratic candidates. Let's be honest about what that means. This is not civic mission. It's a political campaign objective. Fountain Hills works best when ideas compete openly. Leaders are judged by results, and residents are not sorted into political camps. If the goal is truly to serve the community, then the mission statement should be about that. What is best for Fountain Hills, not what is best for the political party. That's the end of that statement. Lastly, let me talk about messages on the liberal candidates' signs and the PAC that supports them. Civility and collaboration. Decency and respect. Did the two Councilmembers sitting on the dais today, along with the former Mayor, care about collaboration after the last election? Councilmember Earle received enough votes to win the primary outright. But the People telling us they want collaboration only collaborated, conspired would be a better word to prevent Earle from being seated early. Not very collaborative and not something we're going to easily forget. Meeting Packet Page 59 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 33 of 36 Thank you. MAYOR FRIEDEL: Next speaker. CAVANAUGH: Good evening. Crystal Cavanaugh, Fountain Hills resident. What is civility? Simply put, it's courteous behavior. Politeness. What is collaboration? The act of working together. United labor, although not necessarily agreement in the end result. After observing and participating in Council meetings over several years, I've seen this to be the overall working relationship that already occurs on this dais, with a few exceptions, of course, at least publicly. Not sure about behind closed doors. So why would a civility and collaboration platform from some suddenly be the priority, as though it is a change from the current way of this Council? Wouldn't it be better to explain strengths, views and philosophy, especially when so-called supporters of civility don't respond civilly at all to discourse they disagree with, signs they don't like, and spew actual hatred towards others. Nothing polite towards those they disagree with. And I speak from personal experience, whether it be on social media or letters to the editor calling orange PAC signs vile, disgusting, and nasty, while unable to provide specifics. You don't like a specific political message on a sign, drive on by. You don't like the word blue or leftist or no primary property tax. Drive on by. Don't cut zip ties, tamper damage, or steal. That is not civil, but it may definitely be part of a collaborative effort. It's really just a disagreement on philosophy. But when you act on that, you're not civil. Verbal assaults and personal insults. Threats to slap someone while calling them disgusting. Stopping a vehicle in the middle of the street to scream how they hate your orange signs. A driver yelled -- a driver yelled hate for orange signs that just had candidates on them with the words experience, pro-property values, pro- family and schools, and pro-residents and pro-business. At this point, it's like a Pavlovian response to the color orange. When you claim you're taking some kind of moral high ground, yet drive around with a back window with vinyls that, say, ravaging our town with the word rot and a skull and crossbones, or a vehicle that has candidates Meeting Packet Page 60 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 34 of 36 sitting amongst garbage bags with negative wording. Or if placing your choose decency and respect sign, you put it right next to your other sign that says extremists destroy towns, reject Turning Point's Ben Larabee. You may definitely lose some credibility. It's a PACs job to support their preferred candidates with attention getting messaging and Reclaim Our Town does exactly that without pretense. Thank you. MAYOR FRIEDEL: Next speaker. DACAL: Good evening. My name is Wendy Dacal. I'm a 20-some-year resident here, and before I get to what I was going to say, I have to address some of that stuff. Hatred, Ms. Cavanaugh, I remember last meeting, you were just smirking at the fact that people were condemning you for the wordage in one of the signs, and you just thought it was so amusing that there was a double entendre there, and that it just brought more attention to it. So you were so happy that there was a problem with it. And unity and division. Oh my God, I would rather you come into town, and you see the signs that say, this is horrible, though, you know, don't -- don't vote for them. And then you see something that says civility, you know, which would you rather pay attention to? I know which I would. But anyway I just don't understand this. It's just beyond me. But shame on you. Especially you, Mayor Friedel. It wasn't enough to cripple Ms. Kalivianakis' campaign financially, and setting her back weeks due to her weak and without merit C and D order. But then you had to come around with this. There is civility. There is hatred right there. That -- what was the purpose of that? What -- what is this meant to prove? Nothing except that you're a very vindictive person. Also, the signs that Mr. Larabee has have definitely have the fountain on them. Where is his cease and desist order? It didn't have a K. It's a fountain. Then Mr. Larrabee shows up at the Town Council forum, and he's the first one to start slinging the mud. Well, our -- these candidates said we want to vow to have clean campaigns, but did any of the rat people jump on that bandwagon? They sure didn't. They'd rather gloat at those disgusting signs that they're so proud of. My -- my concern is that people come into town, they see these signs that are obviously Meeting Packet Page 61 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 35 of 36 meant to alienate people and say, I don't need this. I don't want to live here. I don't want to do business here. This is a terrible place to be. Thank you very much for setting my beautiful town that I was so proud of into such disgrace. MAYOR FRIEDEL: And since you mentioned me by name, I will address the fact that, A, I didn't send out that card. My cards are totally different, very professional, and B, I had absolutely nothing to do with delaying Councilwoman Kalivianakis' campaign at all. I also had to make changes to my website. The only difference was I didn't go to social media. I didn't go to the newspaper. You know what I did? I changed my website. So we'll end -- we'll end -- we'll end right there. We'll end right there. Thank you. We'll move on now. Is there any other speakers? BENDER: No, Mayor. MAYOR FRIEDEL: Thank you. We'll move on now to Council discussion and direction to the Town Manager. Does anybody have anything? Okay. How about future agenda items? Does anybody have anything? Councilman Watts. MAYOR FRIEDEL: Town Manager, do we have an update on where we're at with the e- bike situation? And maybe that's next agenda item not to discuss right now, but to make sure that we're pursuing it. If I can get an update next time. GOODWIN: Yes, absolutely. We can certainly do that. We've been taking steps internally to -- to address that, but a full update we can certainly add to the next agenda. WATTS: Thank you. MAYOR FRIEDEL: Anybody have anything else? I'll take a motion for adjournment. KALIVIANAKIS: Motion to adjourn. WATTS: Second. MAYOR FRIEDEL: All in favor? ALL: Aye. Meeting Packet Page 62 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 TOWN COUNCIL MEETING MINUTES Page 36 of 36 Having no further business, Mayor Gerry M. Friedel adjourned the Regular and Special Session of the Fountain Hills Town Council held on June 2, 2026, at 6:52 p.m. APPROVED: ____________________________________ GERRY FRIEDEL, MAYOR ATTEST: ____________________________________ BEVELYN J. BENDER, TOWN CLERK CERTIFICATION I HEREBY CERTIFY THAT THE FOREGOING MINUTES ARE A TRUE AND CORRECT COPY OF THE MINUTES OF THE REGULAR AND SPECIAL TOWN COUNCIL MEETING OF THE TOWN COUNCIL, TOWN OF FOUNTAIN HILLS, ARIZONA, HELD ON JUNE 2, 2026. I FURTHER CERTIFY THAT THE MEETING WAS DULY CALLED AND HELD AND THAT A QUORUM WAS PRESENT. ________________________________ BEVELYN J. BENDER, TOWN CLERK Meeting Packet Page 63 of 296 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL June 16, 2026 A Regular Meeting of the Fountain Hills Town Council was convened at 5:28 p.m. Members Present: Mayor Gerry M. Friedel: Vice Mayor Gayle Earle; Councilmember Rick Watts; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Allen Skillicorn Councilmember Hannah Larrabee attended by telephone conference call. Staff Present: Town Manager Rachael Goodwin; Town Attorney Jennifer J. Wright; Town Clerk Bevelyn J. Bender Meeting Packet Page 64 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 1 of 105 Post-Production File Town of Fountain Hills Council Meeting June 16, 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 65 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 2 of 105 MAYOR FRIEDEL: Thank you. Okay. We will now move on to our regular town council meeting. Would you all 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 to, we'll have a moment of silence in place of an invocation tonight. Thank you. Town Clerk, could I get a roll call, please? BENDER: Mayor Friedel. MAYOR FRIEDEL: Present. BENDER: Vice mayor Earle. EARLE: Present. BENDER: Council Member Kalivianakis. KALIVIANAKIS: Here. BENDER: Council Member Watts. WATTS: Present. BENDER: Council Member Larabee. LARRABEE: Present. BENDER: Council Member McMahon. MCMAHON: Here. MCMAHON: And Council Member Skillicorn. SKILLICORN: Here. BENDER: Mayor, you have a quorum. MAYOR FRIEDEL: Thank you. And we'll move on now to our summary of current events by Town Manager, Rachael. GOODWIN: Thank you, Mayor. I have a little list tonight, so please bear with me. A couple of pertinent updates for the community. First, I want to thank all the teens who participated in our video game tournament last week. Registration was full with more Meeting Packet Page 66 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 3 of 105 than 30 kids competing in two age groups for bragging rights and cash prizes in both Mario Kart and Super Smash Brothers. It was great to see such strong participation in one of our summer teen programs. It's also really fun to see the staff getting ready for it as they work on their skills. It's a -- that's a fun day. I also want to recognize our finance team for a recent notification from the Government Finance Officers Association. We just received a notice that the town was awarded the Triple Crown award for all three of our FY 2024 financial reports. This is a significant achievement, and Fountain Hills is only one of 440 governments to receive this award. And that is for 440 nationwide. It's -- I want to say it's fewer than a dozen or so in Arizona. So it's a pretty big deal. So congratulations to our finance team and everyone involved in maintaining the town's high standards for financial reporting and transparency. Looking ahead, we have our annual Fourth at the Fountain celebration taking place on Saturday, July 4th at Fountain Park. The event begins at 6:30 and is free and open to the community. This year's celebration will feature Roger Clyne and the Peacemakers, which is a really a very, very fun act and he will be taking the stage around 7:30, followed by fireworks over Fountain Lake beginning at 9. We are also expecting a flyover from Luke Air Force Base and their 56th Fighter Wing, featuring four F-35s at approximately 7:30. But of course, that timing is a little subject to -- you know, to flight operations and weather. We encourage everyone to come out, bring chairs and blankets, and enjoy the evening. Shifting gears a little bit, EPCOR will be holding an in-person meeting regarding its rate increase application next Wednesday, June 24th at 5:30 at the Community Center. I encourage the public to, if not attend, at least read up on what EPCOR's requests are. Residents who are interested in learning more about the application or providing input are welcome to attend. So again, that's 5:30 next Wednesday. Separately, residents should also be on the lookout for information about a public education session later this summer, where EPCOR will share information and answer questions related to water usage in Arizona and how those broader issues affect us here Meeting Packet Page 67 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 4 of 105 in Fountain Hills. Water is obviously a very real and very in-demand resource, and it's a very important topic for many in our community, and this will be a good opportunity for residents as well as our council, you guys are also invited to attend, to learn more, ask questions, and better understand the issues affecting our region. Okay, one more. I also wanted to remind everyone that Election Day is July 21st. Mark your calendars. Residents are encouraged to make a plan to vote and watch for official election information from Maricopa County. I know our town website is maintained and updated with the proper links as well as election information can -- is also available at Be Ballot Ready dot vote. So finally, following tonight's meeting, the council will begin its summer recess. So tonight's council meeting will be the last, and we will resume our regular meeting schedule on Tuesday, September 1st. We will be posting any special meetings that may be happening over the summer, but this is our last regularly scheduled meeting. Mayor, with that, I think those are all my updates. MAYOR FRIEDEL: A lot going on. Thank you. Now we'll move on to presentations. Rachael? GOODWIN: All right. Sorry about that. All right. Tonight we have our economic development and tourism actually specific to our tourism update from Amanda Jacobs. She's going to be giving us a fourth quarter update. JACOBS: Good evening, Mr. Mayor, members of council. So we're doing things a little bit different today. Usually it's an economic development update with just a few slides regarding tourism, but we try to encourage ourselves to toot our horn sometimes and there's been some record-breaking numbers. So we wanted to switch gears especially as we enter the summer months to provide an update. So highlights. Our occupancy from January to May 15th, and so here you're going to see where it kind of fluctuates by dates. But the 15th is that's when I had to start putting together my staff report and PowerPoint. We don't just do it today. And during that period too, there was 15,000 new unique visitors to the website. We'll get into this a little bit later, but one of our record breaking was 1.1 million Facebook views, a 14 Meeting Packet Page 68 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 5 of 105 million Wildjoy campaign impressions, we produced ten professional videos. And then you'll see over 100,000 with our fountain live feed and earth cam. So sometimes if our visitors can't make it to Fountain Hills, they'll reach out to us if the camera is dirty. As they're chilling in Montana to say you need to clean this up. I love looking at the fountain. And so we'll get some of those calls to experience Fountain Hills. Our viewership. So again, I'll point out, sometimes people are confused, but the left column is the top five in Arizona that are coming to the Experience Fountain Hills website and the top five nationally. You'll see, hasn't changed since the previous quarter. And then what helps with this too, even though this is tourism, is sometimes this also ties into business attraction and what the Greater Phoenix Economic council is doing and is in alignment with as we try to attract businesses not just to Fountain Hills, but the region and the state. All right. So we could be here all night but wanted to highlight. One thing that we wanted to do this fiscal year is we really needed to update and freshen up the content on our website. So you'll see -- you may need to put readers on, but the left side you'll see that we highlighted with photos our hotels, and there was a brief paragraph. And so what's next to it is we've completely revamped it. I encourage people to go to our hotel and resorts page and now it's expanded. It adds Google reviews, what amenities are offered. And then there's also a button called make a reservation. So a call to action that was launched in December. And then you will see there was an 81 percent increase. And so what we can gather from that as well as our CFO, we sometimes tease each other internally. But last month he told you we were seeing some great numbers when it came to bed tax and our sales tax. And so sometimes he jokes, maybe it's the economic development efforts. And I say maybe, here are the numbers. But there could be a correlation. And again, selfishly, we prioritized something like hotels and resorts because selfishly, we don't have a local primary property tax and we rely heavily on sales and bed tax. And then record breaking. This is a screenshot because we have dashboards. But our Meeting Packet Page 69 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 6 of 105 town strategic plan, you know, as well as our community economic development strategy, calls out that we want to attract younger families. And so the last three months again this is the first snapshot, but you'll see the last three full months. We are targeting people in the 25 to 34 age. So what we're doing is working. And part of that again later on is our tagline is naturally, Fountain Hills. We're naturally fun. We're naturally adventurous. We're naturally innovative. And so what we've been doing is making sure that we have fresh content. That we're not doing stock photography, that people are seeing their neighbors, their business people, and that it's very authentic and naturally, Fountain Hills. And then you'll see to our Facebook, we hit over a million Facebook views reaching people from across Arizona. And we're seeing too in our stats, Canada, Mexico, the United Kingdom. And we mentioned this previously. This is -- these are good targets as we look to open the Dark Sky Discovery Center. Some brief updates on our Prop 22 grants. So this current fiscal year, which will end June 30th, earlier this year we did apply for Fort McDowell Yavapai Nation grants. We did not receive any funding. We have submitted a request for $20,000 for marketing efforts. We should know by July or August if that will be awarded. Salt River Pima- Maricopa Indian Community, the last few years they've increased the ask from 30,000 to 50,000 and so that is benefiting our music fest. And so that's a photo of just this year. And then with the Salt River they actually will invite the town to apply. So it's not open to everybody, it's just specific to the town. And so we're waiting for that invitation. And Gila River Indian Community, last year we attempted this. The town as far as economic development and tourism was not awarded, but the Fountain Hills Chamber of Commerce was. And so we're serving this year and the next two years as a pass through. And this year, economic development chose not to apply. Again, sometimes it's a stretch when it's not your neighbor. But our fire department did apply and hopefully we'll hear later in the summer. Our Prop 302 grants this year, we secured over $76,000 and the estimate -- and it's always an estimate. We'll see how things trend and the State will report back to us, but Meeting Packet Page 70 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 7 of 105 we're anticipating to get over $90,000. And then it's very stringent on what we can apply for. So again print advertising, our visitor's guide, video production, et cetera. And then so we wanted to highlight this and I want to give a shout out. A couple of years ago our recreation program coordinator Skylar Thomas said, Amanda, we have our internal marketing team, but it's like we really need to get in touch with a social media influencer. And so I asked her if she wanted to help with that. And then so she did a little bit of research and then we reached out, several years ago to see if Lacey Kane (ph.), the founder, wanted to work with us, and through grant funding, we've been able to work with Lacey and Lacey's in-laws happen to be Fountain Hills residents. So that is a nice connection, but we had to receive a report since this is tied to Prop 302 funding. And then she let us know there was over 12 million impressions, so actually over 14 million impressions. And this is the largest. And so I was like toot- toot for DMO. So DMO is a destination marketing organization. So think of Visit Phoenix, Visit Mesa, where some of those giants, they're not connected to a town government. They are a separate convention visitors bureau. And so again, we made a record, so the largest campaign in history. And then just want to point out too, we are always looking at the data. How do we change? Is what we're doing working? And so you'll see two based off of TikTok. And it's her TikTok again, the town does not have a TikTok. So to have that on record and her Instagram again, she is also hitting that 25-to-35-year-olds, where again, they're looking at Fountain Hills. And so this past year we did stuff again on the fountain, us being number three in the world as the tallest. We also did, did you know, about some of our restaurants and that there's not just American food, there's Cuban food, there's Mexican food. And then because she likes us, she'll do some fun things to also boost things and add other videos. And so we just found out, too, we'll get some more grant funding to work with her next year. And then again, we're talking about tourism. But again, with economic development everything is interconnected. And so you'll see, too, that we were able to produce ten professional videos. Those are sliced up and put up on our Experience Fountain Hills Meeting Packet Page 71 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 8 of 105 social media. It's also located on our video gallery under Experience Fountain Hills. And so our businesses appreciate it because all they have to do is say yes and be ready. And then we have a contract with DayLite Films, so Andrew Day, who is a local business and resident. And then you'll see too, I noticed when I started here our photographs needed some help. They were outdated. And so we've been really trying to get fresh content and so we've been also doing that for the businesses. After we do the initial launch, we also share some of those photographs. And so again, in the interest of time, I won't read everything to you. And then want to give a shout out to Night Sky Tourist. So again, that is Vicky Derksen, who is a resident. Again when I started, it has been over four years, can you believe it? We were being very reactive, yet we had this International Dark Sky designation. And so for the last two years, she has helped for free to put together the international Observe the Moon night in partnership with Experience Fountain Hills, as well as the Geminid meteor shower watch party. She also has a partnership with ADERO between October, May-ish when again, it's not so toasty outside. And then you'll see here she also does private events and then you can see 80 percent she gathers are visitors that are coming to Fountain Hills and she gave her last hike report. And then you'll see -- so she specifically asked we'd had a recent meeting of just where are you coming from? Where are you hearing about this? And so these folks had directly noticed the information on our Experience Fountain Hills website and can see that they are visitors. So there's that Montana again, they're having a girls' weekend here in Fountain Hills. And then want to call out some of our conferences. We've been trying to work really hard with our community center, as well as event organizers that if you were having a conference in Fountain Hills, you need to coordinate with the Experience Fountain Hills, because if you don't have a room block, we have no idea that you are tied to that event. It just seems like you're a leisure traveler. Or if you select business, it's just business and there's no other data. And so we coordinated months back with the Museum Association of Arizona. They had 87 people registered and then we helped secure room Meeting Packet Page 72 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 9 of 105 blocks with two of our hotels. The owner did say of Spark by Hilton. Unfortunately no one stayed there, but at least two at Fountain Park. And then want to put in a plug with our Madam Clerk. So the Arizona Municipal Clerks Conference, they have been hosting that conference here in Fountain Hills for actually 15 years. And we've struggled the last few years, but you all know our Madam Clerk, Bev. She knew who to speak to, to try to actually get a room block. ADERO stepped up at a wonderful rate of $144. So you can't beat that. And then also just communicating with the clerks because they like to stay in Fountain Hills. They were a bit confused too, with the -- the Scottsdale name. And so I said it's a branding thing. They do -- actually they are located in Fountain Hills, we collect that sales tax. So once we know more numbers, we'll report back in the fall. And then this is just again some advertising that we're doing in magazines. Sometimes our residents say I don't see any advertising. And then I always tell them no, because I'm not targeting you. You're already here. So some key takeaways is again, we've reached record audiences. Also, things don't happen, change doesn't happen overnight. So I appreciate everyone's patience. It takes time to -- to build up our marketing. Again, the video, the photography, the grants have helped, but do want to say the AOT Prop 302 sunsets in 2031. I've already told the CFO and town manager we'll be thinking ahead already of next year of making sure that we're not losing certain funding. So for example, our annual visitor's guide that everyone loves, that is 100 percent paid by Prop 302. So starting to think ahead and do want to say this council and councils past, you guys have been very supportive of approving budget requests for marketing. So thank you; I appreciate that. And then just looking ahead, we're going to continue what we've been planning to do. And then just one hot off the press. Earlier this calendar year in January I met with Joe Bill and Geoff Yazzetta of the International Dark Sky Discovery Center and said, okay, guys, we need to start gearing up. What is our messaging to the domestic and international travelers? And they looked at me and said, Amanda, we're trying to open the building. And so I'm like, I understand. And so a couple weeks ago in very rapid Meeting Packet Page 73 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 10 of 105 order, I said, would you be okay? Can we partner together? We feel like it's a win-win. If we put in for a $15,000 grant to have a third-party work with us on that exercise, because in short order, we are going to need that. So again, we're not being reactive. We are strategically positioning ourselves. And so we were awarded $15,000 to do that. So super excited and so we will let you know the outcome of those efforts. And with that, Mr. Mayor, happy to answer any questions. MCMAHON: Thank you. Amanda, I don't mean to put you on the spot, but if we can go back to the record-breaking performance and that's on social media, Facebook and Instagram, is there any like one or two special things that they're clicking on that that is making it a record-breaking performance, or is it just mostly all the pictures or whatever is being posted? JACOBS: It's mostly all of it, but you'll see, we've been targeting a lot of what does extremely well is, of course, just the fountain and then the events. That is -- like the top three of people getting super excited. And then our last car show with Concours in the Hills also reaching out to legitimate videographers of hey, can we share your -- your drone footage? And some of that is just -- it just skyrockets. MCMAHON: So basically it's all the bouquet of events that we have and the attendance, et cetera, that you guys are posting and attracting more visitors and looking to, you know, a younger media age medium, right? JACOBS: Correct. Yes. MCMAHON: Okay. Thank you very much. JACOBS: Yes. You're welcome. SKILLICORN: Mr. Mayor, Director Jacobs. So Mr. Mayor, Director Jacobs, what tools are you lacking? I mean, is there anything that we can provide to you? Are there events that you need to happen? What more do you need? JACOBS: Mr. Mayor, Council Member Skillicorn. We just adopted the budget. So right now I would -- say we don't need anything just yet. But come this fall, maybe we will -- maybe we'll reach out. Part of it to you guys received the memo. I'm operating solo in my department. So some of it then is resources that, you know, you could dedicate Meeting Packet Page 74 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 11 of 105 money, but if you don't have the human capital behind it, that becomes a challenge. So I appreciate the question. We'll give it some thought, but in the immediate we have the tools. And again I'll say from council members past and then this body, you guys have approved several hundred thousand dollars towards marketing. SKILLICORN: And Mr. Mayor, Director, and I'm kind of specific. I mean, would you appreciate more events? You know, currently I'm not sure. It sounds to me like, you know, like Mike Pelton is very helpful, but you know, is -- do you have enough tools to do what you need in house? Or I know you, there are some people that are going out, but you know, what more do we want? JACOBS: Mr. Mayor, Council Member Skillicorn. One item, but again, we've sort of -- pun intended. Check, please. We have in our community economic development strategy to work with the national event promoter. We'll say too because there are so many events and so not just put on by our community services department, but other third parties. Then it becomes too is their availability and the staff resources to support it. But we're always working with the town manager as well as the community services director to -- evaluate certain projects. So last year we were considering something. But again, their window didn't match with us because things were booked. SKILLICORN: And Mr. Mayor, Director last follow-up, I promise. JACOBS: Think he's going to ask me again. What should I say, Council Member Skillicorn? SKILLICORN: No, you -- reminded me because I know we've talked about, you know, some sort of like outsource outside event planner coming to us and doing an event. So it sounds like you're open to that. Do they have the tools? I mean, that they can contact you? Do they know that we're open for business? That's really the question. I mean, if you wanted to have an event here, let's say you wanted to do your community event or you know, or you just want to get a permit and rent out the park and do some big event that the town would benefit from. Are we talking the right people? Are we -- are the people are aware that we're open for business? JACOBS: And so Mr. Mayor, Council Member Skillicorn, the answer is yes. And they've Meeting Packet Page 75 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 12 of 105 been willing participants to come to the table. SKILLICORN: Thank you. KALIVIANAKIS: Thank you, Mr. Mayor. Thanks for the report. JACOBS: You're welcome. KALIVIANAKIS: When we see record-breaking performance, Instagram breaking 30-day records. Well, this doesn't happen in a vacuum. This is a lot of hard work. And I know you've been putting in long hours, and so I want to thank you for this great report. I also want to thank you for covering tourism tonight and expanding your normal report, because as we know that small business is the economic engine of Fountain Hills and tourism drive small business. And so I encourage you to continue with the tourism, keep updating us on what's going on there, and keeping innovative in your techniques, because I'm really thrilled to see these numbers. Lastly, and this isn't the town deal. It's a Dark Sky deal, but my number one question is when are they going to open those doors? And you mentioned the Bills are like, yeah, we're trying to get the doors open. Can you give us an estimate on when that's going to happen? JACOBS: So Mr. Mayor, Council Member Kalivianakis, the last report they gave us in their newsletter was January 2026. As of last week, I spoke with our building official. We have not received their plans for the next phase. So again, as soon as we receive those, we'll get rocking and rolling and hope to approve those. KALIVIANAKIS: Thank you. JACOBS: You're welcome. GOODWIN: Thank you, Mayor. Amanda, I just wanted to say I have a unique perspective in that I get to work with you every day. I also, previously in different roles, have had a little toe in tourism and what you've done has been really fantastic. So thank you for what you do each day, even with a very, very, very small team. So you've really done a lot. Thank you. JACOBS: No clapping. Don't get me in trouble. WATTS: I keep hitting the wrong button, sorry. Do you keep metrics on the various Meeting Packet Page 76 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 13 of 105 events as far as restaurants, hotels? I see do the hotel thing, but do you keep the metrics? So kind of like what Councilmember Skillicorn was saying, it would guide us in a certain direction. Maybe kite flying is not quite as productive as Irish Fest. And I don't mean to pick on those two, but do you keep those type of metrics as well? So to help us next time maybe to help you? JACOBS: Mr. Mayor, Council Member Watts, that is a little harder, specifically with the restaurants. One, the sales tax again, is proprietary, so even to me. So a lot of people think that I have that, that is just the CFO. I don't get to see those numbers. What we will do and a few months prior, Council Member Larrabee joined me on a business retention site visit. And so some of those site visits were hearing directly with some of the businesses. And I'll say depending on the restaurant or the retailer, it's very mixed of we love this. And then some people are like, well, people have issues with parking, and so they receive no benefit. So it's really hit or miss. We're starting. So for instance, just thinking ahead and what Council Member Kalivianakis says, we've been pushing again with some of the restaurants. So during the summer, people like to reduce their hours, they like to take a week or two off, to let us know so that we're not sending people, and then they're closed. Working with them too, we've made observations where they did contact us and they're like, we love your help. And then we're monitoring, okay, you let us know, but you haven't changed it on your website or Google Maps. That we can't do anything about. We can educate them, but then it's up to them. And so some of it's through site visits, if again so the previous month our CFO acknowledged just seeing that sales tax increase. So with the restaurants is a bit harder, Council Member Watts. WATTS: Okay. Well, thank you for that. It does look like we're going in the right direction, so nice job. Thanks. JACOBS: Thank you. EARLE: Since everyone asks -- everybody asked so many questions already and we have a full night tonight, I just want to say thank you. JACOBS: You're welcome. Meeting Packet Page 77 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 14 of 105 SKILLICORN: Thank you, Mr. Mayor. And there has been some great questions. And it actually led me to my next one. And I kind of wonder about the economic development, working with finance a little bit. And I know that I assume at least that the sales tax information is not immediate. We don't know, a week later, oh, look, that weekend was really strong, right? It's delayed, but I kind of wonder when we do get that information and then if it's possible to see it by date or weekend or something. And then the back date and what happened then. And I really think that would be a very valuable thing, because ultimately we are doing these events because we love the town and we're providing something for our citizens. But we also know that sales tax is a crucial part of our budget, and successful events and sales leads to nicer things. So that's -- I just want to make sure we're working together and we don't need an answer right now. But just something to think about going forward is the back date and go, hey, that was a very successful time for us. What else was going on in the town? And maybe there's also some things that we put a lot of energy into that don't provide a lot of those resources. And I'm not saying we don't do it because we still love community events, but we just -- the metrics are important, and it's important that we are looking at something and we actually can make those decisions. Thank you. It's been a great discussion. MAYOR FRIEDEL: Thank you for your efforts. You can see the results and all the hard work that you put in there. I'll throw out a little teaser. Can you use some covered parking? JACOBS: That's a separate agenda item, Mr. Mayor. Thank you. MAYOR FRIEDEL: Okay. Now we'll move on to our proclamation. Our Vice Mayor is going to handle the proclamation for July as Park and Recreation Month. Vice Mayor? EARLE: Thank you, Mayor. Whereas the town of Fountain Hills is committed to enhancing the quality of life for residents through exceptional parks, trails, recreational programs, and open space. And whereas parks and recreation promote health and wellness, provide opportunities for active lifestyles, strengthen community connections, and encourage residents of all ages to enjoy the natural beauty of Fountain Hills. And Meeting Packet Page 78 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 15 of 105 whereas parks and recreation services or service -- yeah, services contribute to the environmental, social, and economic vitality of our community and help make Fountain Hills a desirable place to live, work, and visit. And whereas -- and now, therefore, Mayor Gerry Friedel, together with the town council of the town of Fountain Hills, Arizona, do hereby proclaim July 2026 as Parks and Recreation Month and encourage all residents to recognize and celebrate the important role that parks, recreation facilities, programs, volunteers, and staff play or play in making Fountain Hills a vibrant and healthy community. MAYOR FRIEDEL: Kevin. Kevin, come on up. And now we'll move on with the Mayor's business spotlight and tonight it's Graze Craze. This month, it's my pleasure to recognize Graze Craze as our mayor's business spotlight, a business that has become a wonderful addition to Fountain Hills, the Fountain Hills community. Graze Craze specializes in beautifully crafted charcuterie boards and grazing boxes that bring people together for celebrations, business gatherings, and everyday occasions. Their philosophy is simple; every moment is worth celebrating, and great foods help create meaningful connections. Each board is thoughtfully arranged with fresh, high-quality ingredients and designed to deliver the wow factor while making entertainment easy and stress free. Whether you're hosting a community event, business meeting, client appreciation gathering, family celebration, or simply treating yourself, Graze Craze offers a convenient and memorable catering -- experience. The town has had the opportunity on many occasions to enjoy Graze Craze offerings at several council and community events, where they have consistently delivered exceptional quality, preservation, presentation, and service. While Graze Craze is a part of an international brand with locations across the United States, Canada, France, and Australia, our Fountain Hills location is proudly owned and operated by Steve Weberman. Steve's commitment to customer service and community involvement has helped make Graze Craze a valued member of our local business community. We appreciate Steve's investment in Fountain Hills and his dedication to providing a unique dining and catering experience for residents, businesses, and visitors alike. On behalf of Meeting Packet Page 79 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 16 of 105 the Town of Fountain Hills, congratulations to Graze Craze on being recognized as this month's Mayor's Business Spotlight. Steve, if you're here, come on down, please. WEBERMAN: Hi. Hi, everyone. If you haven't had our board, please order one. If you've had one, I've hoped you enjoyed it. We're doing really well. We've -- actually, because of our Fountain Hills success, we've opened up locations in Desert Ridge and Deer Valley Air Park. So we're doing quite well. And you know, we appreciate everything. We celebrate everything. And come on, stop in. We've got art in our place, too. We've got a charcuterie manufacturer that's put stuff in our place, actual boards. Not just the food and meat like we do, but also we have a local artist that's putting stuff in our place as well. So stop in and say hello and say hi to Susan. MAYOR FRIEDEL: Thank you. Okay. And now we'll move on with our consent agenda. Can I get a motion? EARLE: Motion to accept the consent agenda. SKILLICORN: Second. MAYOR FRIEDEL: We have a motion and a second. Can I get a roll call please, Town Clerk? BENDER: Council Member Skillicorn. SKILLICORN: Yes. BENDER: Council Member McMahon. MCMAHON: Aye. BENDER: Council Member Kalivianakis. KALIVIANAKIS: Aye. BENDER: Council Member Watts. WATTS: Yes. BENDER: Council Member Larrabee. LARRABEE: Yes. BENDER: And Vice Mayor. EARLE: Aye. Meeting Packet Page 80 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 17 of 105 BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven zero. MAYOR FRIEDEL: Thank you. We'll move on to our regular agenda item a, which is considerable -- consideration and possible action regarding the town's direct report, employment contract amendments and updated agreements, as applicable for the town manager, town attorney, town prosecutor and presiding judge, town magistrate. And authorizing the mayor, town manager, attorney, and town clerk to take all actions necessary to carry out the intent with Town Manager. UNIDENTIFIED SPEAKER: Mayor, just to be brief, these positions report directly to the town council. Therefore, any direction regarding these need to come from this entire body, which is why they are on the agenda tonight. Specifically, the direction was to bring these contracts forward to update and align them with the fiscal year. So any further questions? We do have staff here if we -- if there's any discussion. With that, I'll turn it over to you. SKILLICORN: Thank you, Mr. Mayor. I do have some thoughts and comments on this and -- on this particular one. And I think there are other people have questions also, but specifically there's a few items. One is or a couple of them are the attorney -- sorry, the prosecutor and the judge. And this, even though this is just a -- more of a we're giving reviews to these individuals, we're not changing the contract. But I just want to point out -- MAYOR FRIEDEL: Do you have a specific question, Councilman? SKILLICORN: Not this time. But I mean, I have comments on it. MAYOR FRIEDEL: Town attorney? UNIDENTIFIED SPEAKER: We take questions first, and then we go to comment cards and then we have discussion. MAYOR FRIEDEL: Do you have any questions? MCMAHON: Yes, I do. I notice in this agenda item there are all four individual employment contracts are grouped into one. I think -- personally I think that these are Meeting Packet Page 81 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 18 of 105 very, very important. You know, one for the prosecutor, one for the judge, one for Rachael, the town attorney, and one for the law firm. And I think that we -- they're distinct enough that we should vote separately on each one of them, even though they're one agenda item. So I'd like to make a motion that we do that if a motion is necessary. KALIVIANAKIS: Yeah, I would -- second that. I think a vote on each individual item would be preferable to an all or nothing. Oh, thank you. I just want to second the motion. MAYOR FRIEDEL: So we have a motion and a second. Can we get a roll call vote on that to separate these items? UNIDENTIFIED SPEAKER: It would be -- well, technically it would be four separate motions to then I guess the motion is -- I think the motion is out of order. I mean, it's not -- it needs to be rephrased, so the motion would be to approve each individually, but not necessarily break them apart. MCMAHON: Why is it out of order? UNIDENTIFIED SPEAKER: I'm sorry, it's not properly worded. I mean, you can't break apart an agenda item in the way that you've asked for it to be broken up, but you can -- MCMAHON: Tell me how to do it, please. UNIDENTIFIED SPEAKER: Yeah. So you can make a motion to approve one agenda item, but we still haven't gone to discussion yet or comment cards. But you can make that motion, and you can then make another motion to approve a different part of the -- different contract. So you make them as four separate motions on each one. MCMAHON: So when is that happening? When can I do that? UNIDENTIFIED SPEAKER: You can make that motion now, but we would still need discussion before you would vote on it. MCMAHON: Well, then I make the motion four different times. I make the motion to look at the -- UNIDENTIFIED SPEAKER: One motion at a time. MCMAHON: I make a motion to look at each contract individually. The prosecutor's Meeting Packet Page 82 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 19 of 105 individually, the judge's individually, the town manager's individually, and the town attorney's individually. UNIDENTIFIED SPEAKER: That's the -- the motion's still -- I said four separate motions to prove each contract individually. Like say so a motion to approve the town prosecutor's -- MCMAHON: So moved. Yeah (indiscernible). Do you want me to wait to do it? I will. UNIDENTIFIED SPEAKER: Yeah. MCMAHON: Thank you. MAYOR FRIEDEL: Do we have any comment cards? BENDER: Yes, Mayor. We do. We have seven that will be speaking. We did receive six cards online. Five wanted to let you know that there will not be speaking, five wanted to let you know they were for it, and one wanted to let you know they were against. First speaker will be Liz Gildersleeve (ph.), followed by Linda Somo (ph.), Shelby Blecher (ph.), and Susan DeGennaro. GILDERSLEEVE: Good evening. Liz Gildersleeve, Fountain Hills resident. I am in favor of approving the contractual amendment for the town attorney for a number of reasons. First, since I've lived in Fountain Hills, Jen Wright is the first town attorney who's actually been committed to protecting the town. That's been refreshing. For example, she provided the sound legal advice and protections to strengthen the ordinance for group homes, also known as sober homes. The added protections of insurance requirements and inspections was something residents demanded four years ago. Instead, four years ago, we got a watered-down version and weak legal advice from our last town attorney. But Ms. Wright, to her credit, figured out a legal way to strengthen the ordinance, which consequently provided neighborhoods and homeowners with better protection and more recourse. So thank you. Second, Ms. Wright has had to manage the daily barrage of petty lawsuits and orchestrated complaints from some of our most litigious residents. Their clear goal has been to weaken her resolve and cause continued chaos in our town, while at the same time preaching civility and collaboration. Finally, and most recently, Ms. Wright has had Meeting Packet Page 83 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 20 of 105 to protect the town's logo from misuse and copyright infringement. It required the town to hire outside council who, by the way, agreed with Ms. Wright's legal opinion and use of a cease and desist letter that was sent to all political candidates, advising them that the use of the town logo would be inappropriate on political materials. Seems self-explanatory to most. Everyone complied except one mayoral candidate. Unfortunately, now Fountain Hills taxpayers are on the hook. Excuse me, are on the hook to pay the unnecessary $18,000 legal bill of that outside attorney. So bottom line, I would prefer that you approve the amendment for the town attorney for another year. Reevaluate next year, as you should, for all employment contracts and move on. Thank you. MAYOR FRIEDEL: Next speaker. SOMO: Thank you, Mr. Mayor, Town council. My name is Linda Somo and I am a Fountain Hills resident. I'm not against the item itself, but I would support you separating out the various offices because I am against giving an exorbitant increase to one member, and that is the town attorney. I have seen nothing that she has done that would warrant an 11 percent increase on her current salary. Which is seven and a half or 7.6% over and above the 3.3% that has been recommended for other town employees. I don't know what she has done that would warrant that type of increase. Plus, when she came to this position, she lacked experience in town law and I don't know that she's gained any since then, at least I haven't seen it evident in your town meetings. And the previous speaker mentioned that she, you know, has had to deal with lawsuits. Well, part of that is because she advised the town council to do away with the ability for town members to file an ethics violation. If they had not done away with that, many of the lawsuits that have been filed would not have been necessary. And plus, she works for a firm that actually sued the town twice and lost both times. So I don't see -- you know, she has -- at least the firm she works for has caused taxpayers money in the past. So I would ask you to separate that out from the others and to reconsider an 11 percent increase for the town attorney. Thank you. Meeting Packet Page 84 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 21 of 105 BELCHER: Good evening, Mr. Mayor, Council. Shelby Blecher, Fountain Hills town resident. With a tight job market, as we've seen when another state hires away town staff, retaining quality staff is a real challenge. The town manager position is one of those highly competitive jobs that require a skill set that can fill a warehouse. We have that person here in Fountain Hills, and I, for one, think she's worth her weight in gold. Please keep Rachael Goodwin's pay competitive with other Maricopa County cities our size and approve her raise. As for the town attorney, Jen Wright, and her firm's contract, I feel equally the same regarding her value to the town. What are troubling to me are comments online and Facebook trying to devalue her worth. And by who? It's the same people who are trying to bury her in law fair paperwork, ridiculous notice of claims, and more. The misinformation fed to the public is maddening. Case in point, there's two Facebook accounts chatting. The question, "Didn't they fire our previous attorney, who had served us for many years for supposedly overcharging?" That was a quote. But isn't it general knowledge that Arnson, the former town attorney, quit? So there's the question. But in reality, a question is a misleading statement when it's framed as an inquiry but actually contains an unproven assumption designed to manipulate the listener or force a specific narrative. Known as a loaded question, this tactic nudges the respondent into an answer that inadvertently confirms something false or negative. It certainly prevents the poster from being charged with defamation, but the damage is done. Mission accomplished. When the very next day, a different account on Facebook speaks to a friend saying this could all have been avoided if we had retained our previous town attorney. The poster is referring to Arnson again, the guy who quit. This is the type of nonsense our town attorney has to deal with and spend some of her time on. How many extra hours does she take? I don't know, but what I do know is that it's shameful to see how many people putting up signs asking to bring back civility do exactly the opposite every chance they get, while also encouraging one another to bury the town in FOIAs and legal maneuvering while claiming First Amendment rights. I feel Meeting Packet Page 85 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 22 of 105 if they cared about the town so much, they would actually act civil and stop the wasted time and lawfare. Please approve the raise for our town council's employment contract. She deserves every penny. Thank you. DEGENNARO: Good evening. You can hear me okay? Sorry, I have to move this because I'm short. Mayor, council members. I'm Susan DeGennaro, candidate for town council and seven-year resident. I regularly come to council meetings, and part of that is prepping by reading the agenda, reading the staff reports and, goodness, some of them are long but well worth it. This one is just missing a little something I wanted to address. Each of the salary increases has a text that says why and what the raise is that is before the council. There is text about the town prosecutor and the presiding judge that they are under contracts and are contractually due the same 3.8 increase given to the staff. There is information about trying to standardize the town manager's salary, and I suspect, as Shelby pointed out, it's to try to stop her from shopping elsewhere. I applaud this. There is even information about the goal of standardizing the timing of these contracts, to standardize the review process, and increase the efficiency for the council, which again, I applaud. But there's no information in the actual staff report about the town attorney increase over the 3.3 CPI. I am not suggesting that the town attorney doesn't deserve a raise. I don't know; there was no information in there. The difference that we are talking about is a $7,000 a year raise versus a $24,000 a year raise, an additional $16,000 a year's increase. So of course, I went looking for support for this because I wanted to find it and I couldn't. So correct me if I'm wrong, but the council is on record as saying that they want to save money. They want to pinch pennies. The last attorney left being paid 234,000, and now you're looking at an increase of additional 6,000 on top of that. And to quote a Republican Senator Dirksen of Illinois, "a billion here, a billion there, pretty soon you're talking about real money." Well, we don't have $1 billion and we need to watch every dollar. So all I'm asking is some justification as to why it's above the 3.3%, or just stick with the 3.3%. Lastly, the only thing I don't know if you're all aware of this, but we ran out of comment Meeting Packet Page 86 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 23 of 105 cards before the meeting started and the meeting started early, so I'm not sure you got comments from everybody. And I know that you all want to hear from the town, so thank you. BENDER: Larry Myers (ph.), Beth Culp (ph.), and Dave Long (ph.). MYERS: Mayor, Council. Larry Myers. And the next time you meet, it will be 45 years. So I'd like to see these all separated out as well, one -- one by one. I couldn't even speak to the judge and the prosecutor. I don't -- I don't know how many people they judge and how many people they prosecute. So that's your business. What I will speak to is the town manager, who's done a fine job stepping in from somebody who was not doing such a fine job, who resigned, thank goodness. And the town attorney who resigned, wasn't fired. So the other residents stated all of the misgivings of Mr. Arnson on his way to the exit door. It wasn't mentioned the 5G, which he told us we'd be sued on that, that we're working on now. And then he hid the third-party attorney's work from not only the residents, but his own planning and zoning commission. So where -- do you go from the bottom? Well, you only go up. So let's review the numbers so we're not blurting out falsehoods. Mr. Arnson left at 234K a year. He was due a raise, had he been here, to 240 by his contract. The current town attorney came in at $218,000 a year, saving the town 7.16%, 16K for the first year. So by raising her to where Mr. Arnson would be demanding to be via his contract at 240, she's actually getting a ten percent raise. That's what she's getting, ten percent. And she saved us 7.16% in the first year of her tenure. So along with that, it appears with all the normal work that she does, she may be overworked and underpaid. I don't know how many hours she puts in, but I do know there's an inordinate amount of FOIAs now with the left lawfare, the lawsuits, the notice of claims, the AG complaint filings, and so all of that stuff which never existed for Mr. Arnson because there was a different administration sitting on the dais back then. And we don't do that stuff except when it's absolutely representing the people, all of the people. So I would say separating them all out, it's your business. The town manager seems to be deserving of a raise; it's in her contract. Judge and prosecutor, couldn't speak to Meeting Packet Page 87 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 24 of 105 them. Town attorney, I think, has done a fine job handling all of this. And for the amount of the raise doesn't seem even abnormal to me since she came in and saved the town money in the first year of her tenure. And that's all I have to say. Thank you very much. Approve at will. BENDER: Beth Culp and then Dave Long. CULP: This discussion has been very illuminating because I think it really puts us where we are right now, where we are so polarized, and it's the leftists and it's lawfare there this and it's reinventing history about I can't -- there were so many ethics complaints filed against Brenda and Ginny and Peggy that it was incredible. I want to talk just real frankly about this whole issue with our town attorney. First of all, she came in inexperienced. She did not -- Aaron Arnson had at least a decade's worth of experience in municipal law; she had zero. She had zero. In the time that she has been here, I feel like you're blaming the victim when we file lawsuits and open meeting complaints because open meeting laws have been violated. Clearly, they have been violated. Now, are they very slow in getting the resolutions to us? Yes. Does it take a long time for notices of claim to turn into lawsuits? Yes. But the fact is that there is no question that ultimately it will be determined that there had been open meeting law violations time after time. Civil rights were violated when we were -- the whole group was evicted from the town hall. The new rules of procedure are rife with unconstitutional provisions. And most recently, Jennifer Wright did, I think, the most egregious thing that I have ever seen a town attorney do. She sent a private citizen a cease and desist letter for having on her Facebook page maybe a tenth of an inch, a quarter of an inch. If you look closely, you might see Brenda's supposedly infringing logo that is protected political speech. Not only was it not a violation of the Lanham Act, it was -- she's not a competitor. She wasn't a candidate. She wasn't offering anything for sale. And she was sent a cease and desist letter. She has an absolute constitutional right to put candidate signs up and that is not an infringement. So increase in open meeting law complaints, increase in lawsuits. She was right in the Meeting Packet Page 88 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 25 of 105 middle, right in the middle of the $9.25 million notice of claim that the developer had. She was accused of getting involved in secret meetings. And I have to look as a lawyer. I looked at that and I thought, what was she thinking? She is inexperienced. She is very, very politically aligned with the majority on this council and the majority who are speaking in favor. All you have to do is go look at her X page and more importantly, recently, and I think this is an abomination. She ghost-wrote a letter for our mayor that was sent to the Maricopa County Board of Supervisors that supported Justin Heap's battle against the Maricopa County Board of Supervisors. And it's full of misinformation, and I don't think anybody on this council even knew that Mayor Friedel wrote that letter. Anybody know? This is another open meeting law violation, and it's going to show up. And if you want to call that lawfare, I call it trying to enforce our rights and our laws. Thank you. MAYOR FRIEDEL: Next speaker? Motion to approve is drafted. EARLE: Second. MCMAHON: What's the motion, please? UNIDENTIFIED SPEAKER: A motion to approve is drafted. MCMAHON: We talked before that I was going to make motions, and I would like the opportunity to make those motions. UNIDENTIFIED SPEAKER: You can ask him to amend the motion or you can ask him to remove the motion. MCMAHON: I think he's doing it on purpose, which is a misuse. UNIDENTIFIED SPEAKER: These are the Robert's Rules of Order, ma'am. MCMAHON: We don't follow Robert's Rules of Order. We follow our own rules of order, the State and the State legislatures, and Robert's Rules comes like fourth or something. UNIDENTIFIED SPEAKER: It's in the parliamentary procedure. MCMAHON: It's even in your writing. UNIDENTIFIED SPEAKER: It's also in the parliamentary -- Meeting Packet Page 89 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 26 of 105 MCMAHON: It's even the documents that you sent to us. UNIDENTIFIED SPEAKER: We have to deal with the motion that's on the table, but I think there's allowed for discussion. MCMAHON: Well, then, is it time for discussion, Mayor? Thank you. I would like the opportunity to speak, please. Thank you very much. I would like these items separated, but I sincerely doubt that Council Member Skillicorn will be gracious enough to do that, even though he talked some about the prosecutor and the judge. Because if they're together, then we're forced to vote one way or another. So I can vote no for everybody if I disagree with one person getting a raise, or we can separate them. So are you willing to amend your no question stance? (indiscernible) MCMAHON: See, I knew you would do that because it's typical. I support the raises for the people that have earned them. I don't believe that the law firm, based on my experience and my interactions and the -- work product and what I've seen, I don't believe that the La Sota law firm deserves an 11.6% raise or a raise period. I haven't seen the evidence. After more than a year of service, I haven't seen sufficient progress in knowledge of municipal law. She put on the agenda to take away your right to talk to the public, change the ethics rules. So now, instead of filing ethics complaints against us and holding us accountable, we're now seeing a plethora of lawsuits. That's the only way you can hold us accountable and that's costing the town literally thousands of dollars. I just cannot support without going into more detail, in addition to what Beth and Linda and a couple other people have said. I don't support a raise, and I don't think it's deserved. Aaron Arnson never asked for a raise and he wasn't going to ask for a raise. So accordingly, my vote, I want it to reflect that I don't support her raise. MAYOR FRIEDEL: Time. SKILLICORN: Thank you, Mr. Mayor. I do want to thank the Vice Mayor for putting together the reviews. It is a step that, unfortunately, you know, the, you know, previous councils didn't do. So really that initiative is really appreciated and is important. And Meeting Packet Page 90 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 27 of 105 it's really good feedback for everyone involved to -- you know, actually have something to go to. Now specifically I'm going to talk about the prosecutor and the judge. And you know, sadly, I get a lot of messages from my constituents. And it really sounds like Fountain Hills is developing this reputation of being really soft on crime. And really and what it really specifically comes to is I get numerous, numerous complaints about vagrancy and violations of our urban camping ordinance. And you know, we revamped our urban camping ordinance a few years ago. And you know, I want to say that it -- I don't remember if it passed unanimously, but there was a second one that did not pass. It failed three, four and some of the people on this dais voted for it and some on the dais voted against it. But the sad thing is, is that even the one that's on the books is not being enforced. You know, when I look into the records of proceedings, I'm seeing that we have individuals with dozens and dozens of complaints and serious complaints, including assaulting a sheriff's deputies, and they are not being enforced. And this is a serious concern. I mean, I've got residents that complain about this, and residents send me messages about homeless people yelling and berating them. Well, if I was the attorney or the prosecutor and the judge, that is not a work product that I would be proud of. I get messages from my constituents of homeless people running around naked on public property. If I was the prosecutor or judge, that would not be a work product that I would be -- I would be proud of. I get messages from constituents with human feces on the street from homeless people. If I was the prosecutor and judge, that is not a work product that I would be proud of. And if I could vote to leave those, get rid of those people, I would, but this is all tied together. UNIDENTIFIED SPEAKER: Time. SKILLICORN: I'm sorry. So tell me I was over time. MAYOR FRIEDEL: Vice Mayor. EARLE: Thank you, Mayor. I just wanted to set the record straight that when Aaron started with our town, it was 180,000 for that first year, not 234. So after 11 months of Meeting Packet Page 91 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 28 of 105 being with us, the council voted to increase his monthly pay $4,500. That's more than double what we're asking for here. Also, I would like to ask our town attorney about your municipal experience. Chair, may I ask her that? MAYOR FRIEDEL: You may. WRIGHT: Yes. So I have previously worked for the Rose Law Group. I've worked for the Institute for justice, I've worked for the Goldwater Institute, all of which specialize in municipal law and also in my elections law experience is municipally -- includes municipal law. MAYOR FRIEDEL: Thank you for that. Correction. That was a mistake before. And then also, maybe I'm not remembering this correctly, but I believe we dealt with the ethics complaint when Aaron was here because there was a complaint against Peggy and Brenda, and we undid some others and didn't away with the ethics complaints under Aaron? Thank you. WATTS: Thank you, Mr. Mayor. I'll try to keep it under two minutes. Yeah, I just think once again, what we're all seeing here tonight is bad government and bad public policy being set. We have a number of employees that we would give raises to. In this case, it's one size fits all. There's four people. That's not just cost of living raises. If they were, that would be a pretty easy decision. I'd say sure, give them all cost of living raises. That would be no problem to me. But I want to give Rachael her raise, I don't want to give Jen her raise, and it's for a very simple reason. My concern is that the proposal to raise the town attorney's compensation is just too soon. She hasn't even been with us for a year. Unlike the previous firm, that we had a consistent six-year term and we had no raises. It was a six-year term, flat-fee contract, and this served us very well. This firm has been, like I said, with under us for a year. This council should be prudent and maintain the original terms. They filled out the RFP. They looked at the workload. They knew what they were getting into. And within a year, now they're all of a sudden saying that we're not getting paid enough money and they're going to get more than had we kept the original attorney. This part of this was Meeting Packet Page 92 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 29 of 105 sold as cost savings, like Larry Meyer said. Well, within less than a year, there's no cost savings. It's going to be more expensive. This council should aim for long-term stability and fair treatment, but this is too soon. And lastly, in my 30 seconds, I'd like to give is I've received a number of cards, comments, emails and they say the same thing that Ms. DeGennaro said. You know, everything else in the contract package, there were reasons and justifications for why we're doing what we're doing with the town attorney. It was just, let's just give her more money. Let's give the La Sota law firm more money. There was no justification. Let's just give them more money. I don't know why we have to give them more money. They applied for the job, they have the job, they're doing the job. I think it's too early for a raise. You know, we're talking about roads first and fixing the roads. Why don't we pinch pennies here and just say, you know, stick to your original contract terms. If it's unsatisfactory, then -- you know, you can go elsewhere and we'll put another RFP out. MAYOR FRIEDEL: Time, thank you. WATTS: Thank you, Mayor. Maybe I imagined it, but we went through extensive review, number of hours analyzing the data that was relevant to the town. Town attorney, the town prosecutor, the town manager, and the town attorney. So I don't -- maybe -- it wasn't in the same meeting. But the validation we looked at, we went through it and clearly we didn't share enough of it with you, but that doesn't mean it isn't justified. And how we can approve one significant raise for the town manager that exceeds the 3.3% CPI and complain about a different rate for the town -- the town attorney makes no sense to me. You're talking out of both sides. Makes no sense whatsoever. So we go all the way back to the way back when we asked for quotes from a variety of legal firms. These -- were some of the most cost competitive rates that we started with, with a basis of the hours that Pierce Coleman provided that turned out to be erroneous. They weren't -- they were incomplete. They didn't keep good records of what they were doing. Maybe they should have. So I fully -- initially I was against the raises. I'm now in Meeting Packet Page 93 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 30 of 105 support of the raises, because sometimes you have to make it market justifications, market adjustments in order to get the quality of work that you want to get done. The order of magnitude that you want to get the work done. So now I'm for it. And that's what my vote is going to be. SKILLICORN: Thank you, Mr. Mayor. And Councilman Watts made a good point about, you know, maybe we didn't communicate with the public. But I do point out, because of Arizona law, we -- you know, we're not allowed to have discussions about employment matters in an open meeting. They have to be in executive session. And this was discussed and these were debated. And this -- you know, spending more money, I mean, what we're, you know, pressing nickels together and trying to save everything we can, that's something that we discussed. And unfortunately, the public is not privy to that information, but that is not the fault of anyone at the dais. That's, you know, it's typically employment -- matters are private thing until we have to vote on them. And that's just why -- just the fact that it is, I don't think that there is anything to raise salaries or anything like that. It was just something had to be discussed in executive session because of law. And I just want to point that out, and I think that our employees and the people working for us present a value. And you know, frankly, I -- not only should this be a great place to work, but the people should be fairly compensated. KALIVIANAKIS: Thank you, Mr. Mayor. Yeah. It's funny that we all of a sudden we found consensus tonight, and I'm just thrilled about that. And it seems like everybody up here seems at least a couple of the players have said that we didn't do a good job, and we weren't transparent. And we would have done better to communicate with the people in this town, the people that are paying the salaries, why this was warranted. And so there's a really simple, easy fix to this. Let's vote on three. Let's vote on the judge, the prosecutor, and the town manager, and let's bump the vote for the town attorney off to the first session in the fall. I mean, there's no harm done. We can put a new package together and we can tell you, the people, why? Why this is warranted and then you can decide. And then we can have another council, we can have another Meeting Packet Page 94 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 31 of 105 session, we can have another call to the public. And we can determine was the salary for the town attorney warranted or not? And so it seems to me that since many of the players here said that this was not done in transparency, you know, let's just fix it tonight and let's vote on three. And then let's put the other one off and let's get -- let's dig into it and get more information as to why this is justified. MCMAHON: Sorry to have to repeat myself, but some people apparently don't hear what I said earlier. The first attorney, Aaron Arnson, was here for 11 months when we raised him $4,500 a month from 180,000 to 234,000. So yes, there was a raise. And if any of you didn't hear that or want to know the facts on that, our CFO verified that for me or you can FOIA that to know that is the truth. He did get a raise and it was quite a significant raise. And our attorney will -- this attorney now will be here for a year in 15 days. So saying she hasn't been here a year, that's kind of baloney. And the raise will happen when she's here a year. MAYOR FRIEDEL: I think everybody's had a chance to weigh in, so I'm going to weigh in now, too. I don't think it's bad public policy or bad procedure. I think we're sitting here today because of what happened with the former attorney, and there's a couple of council members on this dais right now that drove him literally out of this town. He resigned. He wasn't fired, and that's the result. We're dealing with that right now. And when the RFP was done for a new attorney, I don't think that it was included in that job description was 125 FOIA requests and dozens of lawsuits and notice of claim. That takes a lot of extra work, a lot of extra time, a lot of extra preparation. I'm also going to repeat something that I said at the Mayor's Forum. This town is one of the most efficient towns in the East Valley. And you want to know why? It's because we -- it's because of the joint work between our finance team, our town manager, and our town attorney. Our town attorney now has uncovered stuff on certain projects in this town and everybody sitting up here on this dais knows what I'm talking about. So to say she's not qualified and she hasn't done her job is a big, big misnomer. And you can shake your head all you want; it's the truth. So I'm in favor of this. Meeting Packet Page 95 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 32 of 105 There's a motion and a second on the table right now. Can I get a roll call vote, please? BENDER: Mayor, can you confirm for me who was the second? MAYOR FRIEDEL: Vice Mayor. BENDER: Vice Mayor. Thank you. Council Member McMahon. MCMAHON: I vote for Rachael's. I vote for the prosecutor's and the judge's and I don't vote for the town attorney's; since they're bunched together, I have to say yes. BENDER: Council Member Watts. WATTS: Aye. BENDER: Council Member Skillicorn. SKILLICORN: Yes. BENDER: Council Member Kalivianakis. KALIVIANAKIS: Nay. BENDER: Council Member Larrabee. LARRABEE: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. MCMAHON: I'm going to change my vote to nay. Thank you. BENDER: Mayor, five two. MAYOR FRIEDEL: Thank you. Vice Mayor, will you turn your mic off? Thank you. Peggy, will you turn your mic off? Peggy, turn your mic off. MCMAHON: Thank you. MAYOR FRIEDEL: Thank you. Okay. We'll move on to item number B, consideration and possible action regarding the proposed energy savings capital project for parking shade structure and solar panels for Town Hall campus. Rachael? GOODWIN: Mayor, thank you. This is a -- this is an unusual item tonight, but this item is Meeting Packet Page 96 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 33 of 105 brought because staff have been evaluating options to reduce long-term utility costs for town facilities and to provide greater predictability as energy costs continue to increase. The proposed project would install solar covered parking structures on the civic campus, and is structured through a guaranteed energy savings agreement. Tonight's presentation will focus on the project scope, the financial structure, the guaranteed savings component, and the available federal rebate opportunity. Because the rebate opportunity is time sensitive, staff is bringing this item forward now so that council can determine whether if it wishes to authorize the project and preserve the town's eligibility for that savings. I sent out sort of a preview of that late last week. Representatives from Veregy, including Alyce Neal and Dee Smith, are here this evening to present the proposal, answer council questions, and we also have staff available to provide additional information as needed. With that, I'm going to ask Alyce to take it away. NEAL: Thank you, Manager Goodwin. And good evening, Mr. Mayor and council members. I'm Alyce Neal, and on behalf of Veregy, we're very happy to be here tonight to present this project to you. SMITH: Yes, Mr. Mayor, council members, my name is Dee Smith. We're also joined with our developer, Rob Coy, for tonight. And yeah, we just thank you very much for being here. We also just wanted to say how much of a pleasure it was to work with Town Manager Goodwin, your CFO. We work with facilities, parks, and your maintenance team, and we just really appreciate the opportunity to get us here this evening to present this. So with that, this evening, we are coming to you as current partners to the town of Fountain Hills seeking approval for the town's dual purpose solar carport project located here at Town Hill and the community center. This project would save the town $5.2 million over the next 35 years. It provides 128 covered parking spots in the parking lot, and it also offsets 64 percent of the town utilities. So I know we've also had some council members bring up they're looking for long-term budget stabilization and this project here offers the ability to do just that. Meeting Packet Page 97 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 34 of 105 KALIVIANAKIS: Can you repeat that figure? I'm sorry, I didn't hear the last one you said. SMITH: 5.2 million, 128 parking spots, 64 percent utility offset. KALIVIANAKIS: Thank you. SMITH: And yes, as Manager Goodwin said here tonight, your approval is necessary to meet critical timelines for the town to receive a 40 percent direct pay rebate, which would equal just over $956,000 to the project. So we'll talk a little bit about the problem, why this project works for you folks, why Veregy, and then why now? As we all are aware, rising utility costs are a problem around the state, around the nation. The town of Fountain Hills currently spends about $193,000 annually on your utility spends, and the chart that you're seeing here is just a conservative 4.5% escalation rate. So by the year 2040, high possibility you guys can pay over $370,000 in utilities. NEAL: Thank you. And thanks for that. Additionally, this project is fundamentally a budget and infrastructure item, not just solar. I just want to make that very clear. It also reduces and stabilizes your cost, improves your budget predictability, and it also leverages the federal tax investment incentives that are currently available to you. As Dee mentioned, it does provide covered parking for Fountain Hills residents, your visitors at the town hall, also at the community center, and at the public library. And so your action here tonight is really about advancing a project that lowers operating costs while current -- while maximizing the current available federal incentives. So the path to savings and where we've been. So as Dee mentioned, we did meet with Manager Goodwin and your CFO and other individuals. We started a preliminary energy audit back in February. From there, we moved into an investment grade audit. And here we're now asking for your approval for the contract to move forward into the design. If we do get approval tonight, the project moves into design immediately and we continue that through April of 2027. We will start construction in April of 2027, and then we should be complete by August of 2027. The project will continue to bring savings to the town over the course of 35 years, and that will be guaranteed savings to the town. A little bit about the project. Dee mentioned a couple of highlight -- highlighted points. Meeting Packet Page 98 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 35 of 105 Just want to also make sure that you all understand that we have designed this project. We have not overdesigned or under-designed based on the town's data that we received from your utility. We're also taking into consideration two interconnection points. We've also taken into consideration ADA requirements. Overall, it's a 597 kilowatt project. Again, tying into the town hall and into the community center, we have 128 covered parking spaces, 64 percent energy offset, and you're going to receive $956,000. That is from the direct incentive from the IRA. And that is tax law and so it's currently in effect right now, but it is going to expire. And we'll talk a little bit more about that in just a few minutes. We also mentioned that this is a lifetime savings of $5,263,296. And this is just a larger overview of the -- and as you can see, it's a tremendous amount of covered parking. It is on a 10 degree tilt, so it should avoid any glare should that be a problem. Yes. Yes, Councilmember? MCMAHON: I just have a question since the slide is up and it shows the parking structure, but there's a portion in the bottom right hand corner that isn't going to be covered. Is there a reason for that, please? NEAL: Yes. Councilmember McMahon, is that you're talking about over to the right where the library -- oh, the ADA. Yes, yes. So the reason that we are avoiding that area it's just -- it's very -- not very cost effective to design. You'd have to really wrap the steel. Also, the two points of interconnection are at different sides, but we have taken into account for the ADA parking that is required. So you will be -- that will be compliant. MCMAHON: Thank you. NEAL: You're welcome. EARLE: Can I ask something because we're looking at those right now like she did? The first time I saw this photo I didn't see that many parking spaces, but I was told unless I need to be corrected here in the campus parking is 349 spaces, but you're talking about 128. So what am I missing here? So that would have been 221 that are not -- that are uncovered, but what are we not covering? Meeting Packet Page 99 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 36 of 105 SMITH: You have your -- yeah. Your other side that goes down towards the library and Dark Skies building. And then also to the north there, where the police vehicles park. There's no covered parking. EARLE: So that's part of what the campus was before. Okay. Is there any plan to eventually cover everywhere? If that's not a question to you? NEAL: No. Thank you, Councilmember. Right now, the answer is no. Part of the reason is because we are sizing this to your energy capacity. So we want to make sure that it's not oversize or undersized. So right now, your current energy capacity is warranting this design. MAYOR FRIEDEL: Keep going. SMITH: So if you guys do nothing, don't pass this, your utility expenditure will stay the same. Your money is going to go to the utility company. Partnering with Veregy and this partnership here, you guys will see the utility usage drop and again the 65 percent energy offset by installing the solar. The total project cost for this project is $2,390,900, with a rebate of $956,384. Starting in year one, Veregy is guaranteeing a minimum savings of $81,989. That will grow as utilities continue to grow. But that's our first guaranteed year, about 82,000, as Alyce said, over the 35 year lifetime expectancy of this solution, you guys should see $5,263,296 saved with an ROI of 15 years on the capital investment there. NEAL: So again, also, we just want to be transparent about the ROI. This is the capital investment for this. We understand that there are additional life-term costs associated. That would be some of the maintenance and also -- yeah, additional cost. So that could bring the ROI to about 17 years, but the capital investment, what we're bringing tonight, is 15 years. SMITH: Okay. So why partner with Veregy? Like I said, we are a local to Arizona here. We were founded in Arizona. We are the largest energy services company in Arizona, and we do 90 percent of our work in-house, that's what makes us different than our competitors in this world, is we are one point of contact to you and all the praise, if there's anything negative, there's one point of contact to the town. Meeting Packet Page 100 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 37 of 105 We are current -- like I said, current partners with the town of Fountain Hills. You guys have beautiful gold medal winning parks. We have been able to partner on the relights for those installing the MUSCO at your Golden Eagle Park, at the Desert Vista skate park and Mini-Pitch. We also currently hold a service agreement through our workmanship. Your facilities team thought we did a good enough job that we signed a service agreement as current partners, and we're also great community partners as well. In 2022, we co-sponsored the Parks and Rec trade show social event at your Desert Vista Park with Musco. NEAL: Thank you. We're also working for other municipalities across the state and actually across the country. We really like bringing this type of project, this cost savings, to help you become stewards of your taxpayers' dollars. We've worked with the smaller municipalities since the beginning of our company 35 years ago. We also have some of the bigger ones. We're working with City of Phoenix, Pima County. But as you can see, we are working with City of Coolidge, City of Eloy. And we're also working with the Arizona Department of Emergency Affairs across all of their projects across the state. Okay. So there was a question about what is performance-based contracting. And I know most of you probably have heard the term design build, design, bid, build. This is design build. The difference is there are no change orders and there will be no engineer. There's all the engineering is up front. Yes, there's no value engineering in this project. It is backed by Arizona Revised Statutes, Title 34, 34-455. And again, it's design build. The great thing about it is that there is a savings component and that savings is guaranteed by Veregy. Should we not produce the energy that we say in the contract, then we actually have to write you a check for whatever that difference is. And so why now? And so as you all know, there is an investment tax credit that's going to expire on July 4th, 2026. And so time is of the essence to get the contract signed. And this is tax law. It's federal law. If we do nothing, you're still paying the money back to your utility. If you take advantage of this project and you take advantage of the tax credit, you get almost $1 million back to help fund the project. Meeting Packet Page 101 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 38 of 105 There are a couple of things that really make this tax investment, I think, good for the country. Some of that is the fiat compliancy and the domestic content. So we will be required to make sure that all of the materials and that it's manufactured in the United States for this project. MAYOR FRIEDEL: We have some questions now, so we'll cue it up. SKILLICORN: Thank you, Mr. Mayor. I hear that the lifetime is supposed to be 35 years. What's the warranty? SMITH: 30 years. Mr. Mayor, Councilmember Skillicorn, we had a 30-year warranty on the -- solar panels, the production for the solar panels. SKILLICORN: And Mr. Mayor, what about the electronics? Like if there's a lightning strike and one of the VFDs pops? What's the warranty for what's inside the electrical panel? SMITH: We do a two-year workmanship warranty that would cover. As far as the anything else coverage, Rob, inverters -- council members, we're going to bring up our developer, Rob Coy, for this here. COY: Thank you, Mr. Mayor, Mr. Councilman. Yeah, something like a lightning strike would be an act of god. No warranty would cover that just to be quite frank. SKILLICORN: And Mr. Mayor, what is our current cost per kilowatt for electricity? COY: $4 per -- well, $4 per watt is what the cost of the solar is. Your current cost per kilowatt is around $0.11. SKILLICORN: Yeah, that's -- a pretty big difference there. So Mr. Mayor, just doing a little bit of math here. I don't know if the CFO still -- here's CFO. If you wouldn't mind shout what he gets a return on investment for funds? SOLDINGER: Mayor, Councilmember, what was the question? SKILLICORN: For funds that you're not using, what kind of return on investment do you get on an annual basis? SOLDINGER: Yes. Mayor, Councilmember Skillicorn, right now we're blended about 3.8 to 4 percent if you were using that as a discount rate. SKILLICORN: If you don't mind, I'll use four. Meeting Packet Page 102 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 39 of 105 SOLDINGER: And while I'm up here, Kevin says I love the mic. I do want to clarify one thing. The -- number that they presented in the beginning, the 193,000, that's just for the town hall campus, the community center, town hall, and the library, around 200,000. That's -- that amount. We actually pay about $480,000 as a town in total for electricity at this point. So that was just one clarification I wanted to make to make sure that was clear. SKILLICORN: Mr. Mayor, what was that? And -- Paul, was it 480,000 a year? SOLDINGER: Yes. Fiscal year '25 we spent 481,000. SKILLICORN: Thank you so much, Mr. Mayor. When I see there is one of the projections of save $81,000 a year for the first year, when I look at this total outlay of 2.3, 90 and -- and $900 you know, almost $2.4 million, just quickly looking at four percent return, 15 years, that's $4.3 million. And you know, that is more than we spend on electricity over those years, and it's more than the potential savings. If we just invested this money, we'd be better off. I mean, this is more expensive than the electricity. The electricity is so inexpensive that this isn't efficient for the town. It doesn't make sense, the math doesn't add up. And frankly, in 15 years, if we go -- well, 30 years, you know, it's going to -- this is going to be triple that. I don't see the value to this. So we're going to spend more money -- now if you want to spend more money on covered parking that they have that discussion, right? But if we're going to have -- we're going to have covered parking, why don't we have covered parking on Avenue of Fountains so that retail shoppers can use it? I just don't see the math here. I mean, when we -- when you look at what it would cost to do with the opportunity cost, it's going to cost significantly more than the cost of electricity. MAYOR FRIEDEL: When I look at this, I see -- this, I see covered parking, almost $1 million rebate. The million dollars to me covers the solar panels, and we still have covered parking that will last for I don't know, 50 years, 75 years. If you look at APS right now, they're looking for a 16 percent increase. If you look at Epcor, 17 percent increase. Their 4.5% that they're building in I think is really low. I don't see these -- these rates staying that low. There's a big -- there's a big vacuum right now sucking up Meeting Packet Page 103 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 40 of 105 energy. You've got data centers working all over. You've got -- we've been talking with CAP and the water up at Lake Powell. That energy is going to be missing as well because there's no water to produce it. So I think these are very conservative estimates. I see this as 2.3, $2.4 million, $1 million rebate back. Those are the real numbers that I look at. And then we've got covered parking that people can still use and still go to the art fairs. So that's how I look at it. So I understand your numbers, but I think if we're being realistic about the numbers, we have to look at what the percentages really are going to be. And I know that they built in 4.5%. Is that what your guarantee is based on? SMITH: Yes, it is. MAYOR FRIEDEL: Yes. SMITH: And SRP in the last four years has averaged 5.15% increase if you take just the last four years alone. Yeah, it's going up. MAYOR FRIEDEL: Anyway, I'll let somebody else -- MCMAHON: Thank you. Thank you very much for your presentation. I do believe it's going to save us a lot of money. I think it's necessary, especially given what's coming up with the increases in costs for energy, et cetera. But I do have a question if you don't mind. Maybe you can help me understand this better. Under the long-term operational considerations, it's 4,000 -- about $4,500 a year. So what you guys do is you go in and check each of the solar -- the solar panels to make sure that they're producing what you're saying that they're going to produce, the savings, et cetera. If the maintenance is -- if there's maintenance or anything required on them, do you perform the maintenance? Does somebody else? I mean, how does that work? Or is this just a contract to come back in and make sure that they're producing what you promised they produce? COY: Okay. I'll take that one. Mr. Mayor, Councilmember. So we do include a two-year O&M agreement with this. So for the two years after permission to operate, we would service that annually, do thorough inspections, thorough calculations on it, make sure everything's still torqued. We also provide NVH measurement and verification Meeting Packet Page 104 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 41 of 105 throughout the term of the contract, which would be 15 years is what we're guaranteeing the term for. So with that, we put LightLevel on it. It's a real time energy monitoring software, so it gives alerts if anything were to happen. We monitor that daily. We have a team that monitors that throughout the United States. WATTS: (Indiscernible) and I am used to it. My questions are more technical, but I'm going to start with one. You mentioned IRA. Is it IRS that we're getting the tax refund from, not IRA? NEAL: I'm sorry, yes. WATTS: Okay. NEAL: My mistake. Yes, Inflation Reduction Act. WATTS: Right, that's different. NEAL: Yes. From the IRS, sir. WATTS: Okay. NEAL: Yes, Councilmember. WATTS: And we pay how much in taxes a year, roughly? Where's Paul? SOLDINGER: So Mayor, Councilmember. This particular rebate from the federal government, it doesn't require you to pay federal income taxes or anything like that. So even though the town is -- WATTS: It was a loaded question -- SOLDINGER: Yes, yes. WATTS: -- because we don't pay taxes, right? SOLDINGER: That's where I was going. WATTS: Okay. So I want to make sure the requirement was that we -- it wasn't a requirement that we had to pay taxes because municipalities don't pay taxes. SOLDINGER: Exactly. WATTS: And the IRS is really where we get the money. Is the reason that -- you're free to go. SOLDINGER: Okay. WATTS: Thanks. Meeting Packet Page 105 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 42 of 105 SKILLICORN: Don't go far. WATTS: Yeah, don't go far. Yeah. Is the reason you picked 64 percent as your design limits? Because we don't have a program with SRP, much like residential does for a buyback? COY: Yes. Yeah. So the buyback with SRP is only 2.7 cents when you sell back to SRP. So it's peanuts compared to APS where APS we could size it a little bit bigger and you get a one-for-one credit. We're also sizing it based off the utility usage. We know there's a LED project coming here that you guys are looking at new air handlers over at the community center. So we take all that into account because we don't want to just build the biggest system that supports what it is now, when you go do some more energy conservation measures, and then it's oversize and then it becomes a diminished return on investment. WATTS: But you have the same thing in the panels, the panel you said 15 years on your guarantee on the panel, but performance for the panel starts falling off year two and continues to degrade at one, two, or three percent per year until end of life? COY: 0.55% on these panels. WATTS: And they have a 25-year life, or they have a 30-year life? COY: They have a 25-year production warranty on them. WATTS: That to 80 percent, is that where you're going to get to the -- at 25 years? 80 percent capacity? COY: Right. Yes, sir. WATTS: The selection of the angle of the panels that I guess is what you've calculated a maximize -- I'm not as concerned about reflection as I am about maximizing efficiency of the panels; is that correct as well? COY: Yes. Correct. WATTS: Okay. And is there a reason we're using covered parking instead of a much cost -- costlier product, putting it on rooftops with flats? COY: Typically most people are liking the solar panels for the community and everything else. A lot of times when we're putting on the roof, that could also void roof warranties, Meeting Packet Page 106 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 43 of 105 so -- WATTS: We don't have a problem with that because it leaks like a sieve. COY: Yeah. WATTS: Sorry, Kevin. COY: So that is a reason a lot of commercial and municipalities like to avoid anything on their rooftops. WATTS: Okay. Is the system expandable should we want to add more panels at some time? COY: Yes, absolutely. WATTS: Okay. The inverters are the panels, and we can always put more panels up. But as long as you -- COY: Yeah, more panels, but you'd have to accompany it with another inverter, depending on the number of panels. WATTS: Got you. I think that does it for me. Thank you. COY: Okay. EARLE: Thank you. Mayor. As Rick's the technical guy, I'm the numbers gal. So I have some questions which Paul is aware of because I did share these with him beforehand, so no surprises here. Except you said something before that I didn't have in here. You said we only spent about $200,000 on electricity for the town hall area, 400 and something but that's throughout the community. So we're just talking about savings on the 200,000; is that -- did I not understand that? COY: (Indiscernible) Yes. So Mayor, Vice Mayor. Yeah, that's the idea, is the -- proposed project considered the town hall campus and the best use and the best project for the town hall campus. So the savings would be experienced town wide, but really, it would impact those meters. So I did include a breakdown of expenditures in your packet. So I haven't really thought through this -- EARLE: Okay. SOLDINGER: -- kind of on the spot, but that would impact the meters in question, which would be the town hall, community center meter, and the library museum building you Meeting Packet Page 107 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 44 of 105 would see a reduction. Actually, one good example that I'm somewhat familiar with is the Golden Eagle Park, and Dee had mentioned that they helped us retrofit new LED lighting at that park. You kind of -- I mean, when I look at the numbers, I kind of see that there's a correlation because our expenditures reduced from in fiscal year '23 at Golden Eagle Park from 30,600 to about 22,500 the next year, even though that year our overall town electricity went up quite a bit from about 415,000 to 476,000. So there is some evidence that some of the energy efficiency measures that Veregy has helped us with have helped the town from a cost perspective. EARLE: Okay. So following up with what I shared with you earlier, I'd like to go over those numbers. The project contract is 2,390,900? SOLDINGER: Yes. EARLE: The guaranteed electric savings for 15 years, but then I heard today, maybe 17 years was 1,604,173, correct? SOLDINGER: Yes. EARLE: So that leaves us at a net cost or energy savings over the 15 years minus the -- never mind, forget that one. The other thing that's not calculated in here is going to be the insurance, because we're going to be doing an increased insurance. And over the period of 15 years, that adds $67,500? SOLDINGER: Yeah, approximately. Yes. EARLE: Okay. And then the measures and verification is on a sliding scale. It starts out at 4,000 -- almost 4,500. But by year 15 it's 7,211, correct? So that's a total of 86,490 that we will be paying to Veregy to verify their own guaranteed savings. That seems like a conflict of interest to me. Then the panel cleaning that's included in the first two years, but year 3 to 15 when we talked, that's a $14,000-per-year cleaning. That's 182,000 -- $182,000. Then the rebate application. I didn't have that in there before, but we talked. We're talking about spending $12,000 to get help with that rebate application. So we add $12,000 to that. So then if we add all that -- that's extra expenses. So if we do not get the rebate, which is not guaranteed, nobody's telling us here that's guaranteed. So if we do not get the guaranteed, or we do not get the rebate Meeting Packet Page 108 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 45 of 105 in 15 years, it will cost us 1,134,717, even though we saved on it in electricity. If we do get the rebate of 956,360, we are out a cost of 178,357. So there's really no savings over the 15 years. Maybe it's 17 years. So then that's the -- what do you call it? The rate of return rate of -- right? SOLDINGER: ROI, yes. EARLE: Return of investment. SOLDINGER: Uh-huh. EARLE: So we're looking at not saving anything for 15 to 17 years. So then my other question is going to be we're going to borrow this money, right? Or do we have the 202,000,390? Do we have it? Are we going to borrow it? And then there's going to be expense on the borrowing it. So this doesn't seem -- numbers wise, doesn't work for me. Did I say anything wrong there? SOLDINGER: Mayor, Vice Mayor, you're pretty on point with your numbers. We did discuss them. I would like to add a couple clarifications. Like, for example, the measurement verification fee, that is elective. We could choose if we are achieving the savings every year and they -- they do do that measurement. We want to do that measurement at least for a few years to make sure we're exceeding what they projected. That is something we could decide to remove, so that's just a caveat to that. As far as borrowing money, we have the sufficient funding in our capital. That was one of the options that was initially discussed as a potential, but that would actually reduce the rebate ability. Like the rebate would go down if we were to choose that option. So because we have sufficient funding in the Capital Projects Fund, this proposed project would use the Capital Projects existing fund balance and budget. But for the most part, yes. What you state is correct; the numbers we went over, they are correct. So the whole idea I know from Veregy's perspective is that once that point hits where we hit that ROI in 15 to 17, maybe it's 18 years. That's when the town will benefit -- EARLE: But if. Meeting Packet Page 109 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 46 of 105 SOLDINGER: -- financially. EARLE: If we opt out of the M and V or you know, the verification, then they won't guarantee us. SOLDINGER: You're right. Absolutely. EARLE: So then we wouldn't get the check for if we didn't actually get the savings, but we still will have expenses, the insurance, the cleaning, whatever. Insurance, cleaning, other items on that -- on that after the year 15, 16, 17, what we're talking about, it keeps growing because when I first heard about it, it was an eight year thing. So my -- thoughts are going down on this. So when we, if we have a warranty on it. So you say it loses efficiency over each year. So there's a warranty. Is it 100 percent replacement or is there going to be a big deductible? Is there a warranty on the covered parking as well, the steel covered parking? SOLDINGER: On the structure? EARLE: The structure. Thank you. SOLDINGER: That would be a two-year warranty for the workmanship warranty. EARLE: Okay. So we look like we could have expense there. So again, can you tell me if we have a warranty up to you said 25 years? Someone else said 30 years, but now it's actually 25 years. So is that a 100 percent or do we have a deductible? Is it prorated? Is the warranty maybe only 50 percent at 20 years? SOLDINGER: It's warranty on the production of it -- of the modules. EARLE: Okay. Explain that to me. So it will cost us money? You produce it, but we would still, if we had a problem with the panel, it would still -- we would have an outlay of more money than? It's what -- it's out of my -- what am I understanding? SOLDINGER: Yes. After the initial warranty period, the panels itself have a 12-year warranty panel like warranty that covers 100 percent. If something was defective or a panel failed, they would replace that. We would replace that for the 12 years that that warranty is in. EARLE: So we're only at 12 years with the warranty? Meeting Packet Page 110 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 47 of 105 SOLDINGER: Yeah, with the actual product warranty. EARLE: What's between 12 and 25 years, then? Just the production, but we still pay -- SOLDINGER: Just the production. EARLE: So what does the panel cost from year 12 to 25? SOLDINGER: What's that? I'm sorry. EARLE: What would the panel cost after the 12 years, then? I'm sorry if it's a trick question, but it's probably not cheap. SOLDINGER: Yeah, no. I mean, a panel is probably 4 to 500 bucks and that's all it -- so. EARLE: If they're only -- and you're charging us 2,000,390, if they're only 4 to 500? SOLDINGER: Y ou have --the -- EARLE: T he numbers. I'm now -- now I'm like spinning here with these numbers. SOLDINGER: You have the construction, you have the steel, you have all the underground, the wiring, the electric runs, the meters, the new tie ins to the SESs. There's a lot more to it than just the panels. EARLE: Sure. Okay. Okay. But we would pay -- you say production. We'd pay for the panel. We'd pay for the labor to install one after the 12 years? SOLDINGER: Correct. EARLE: So it's not really a warranty coverage for the 25 years, 100 percent? Thank you. KALIVIANAKIS: Thank you, Mr. Mayor. Yeah. Thank you for your presentation. Very impressive. I know Veregy works with a lot of larger municipalities, a lot of larger jobs, and this is a pretty small job for you, but I think it's going to bring a lot of benefit to Fountain Hills. My question, the first one would be to the town manager, which was on the like -- since the count -- since the staff is recommending this, did you calculate the likelihood of getting the rebate and your recommendation for this project? Sure. GOODWIN: Okay. Thank you for the question. So to be fair, the -- they showed a timeline of how long we've been working on this, and we have pulled a lot of staff and resources together to see if this is really the right fit for us. It went through quite a dogged review multiple times to -- even through legal to make sure that we had a sound footing to bring this forward tonight if it made sense. Meeting Packet Page 111 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 48 of 105 Part of that was the rebate because of course, you know, that is really the driving piece of tonight's conversation, is that 40 percent rebate. We knew that there was -- that there were qualifications. We wanted to ensure that Paul really spearheaded that research and worked with both Dee and Alyce to get verifications, all of the verifications we needed through the manufacturers, as well as worked with an outside consultant to review the language and to ensure that we were reading it, interpreting it, and applying it correctly. So while there is no guarantee, I want to -- I want to make that very clear. There is no guarantee that the rebate will apply. We are about as confident as possible until we actually apply for it because it is federal. It does have -- you know, it does have some language, but we have done every piece of due diligence that we can short of actually submitting for it, to confirm that we are eligible for it. SKILLICORN: Can I ask you a question on that? GOODWIN: Of course. SKILLICORN: Excuse me. No rebate, no project, is that -- safe to say? GOODWIN: I'd say I would think that that's -- really the key factor in this. MAYOR FRIEDEL: Yeah. GOODWIN: But I would refer to both Dean Elise and Veregy as to the guidance there. That --'s really what's the key -- you know, the key supporter for us. MAYOR FRIEDEL: That's a big driver. GOODWIN: Uh-huh. So -- can you answer that? UNIDENTIFIED SPEAKER: Yes. Thank you, Mr. Mayor and Councilmembers. Yes. So the investment tax credit that we are going to help you achieve is federal law. Veregy has been working with multiple municipalities and school districts across the country, all of whom have been receiving this. It's just a matter -- it's a tax form. As long as we're compliant and we have everything that we need, which we've been following the guidance of tax advisors and the consultants that you all have been talking with, it's just a matter of three pages that you fill out. Meeting Packet Page 112 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 49 of 105 Like I said, we are seeing our clients. We've got testimonials that they are receiving that tax credit back. It is federal law right now. But it is going to sunset July 4th, and that's why we're here tonight. I also -- yeah, just to remind you that regardless, you're still paying SRP. No matter what ,whether you invest in this project or not, you're still taking that bucket of money to SRP. So thank you. GOODWIN: Mayor, if I can confirm something too. And I want to double check. My understanding is that we don't become eligible for that rebate until the project is completed. So to say, you know, no rebate, no -- it's kind of the other way around. We have to complete the project in order to submit for that rebate. KALIVIANAKIS: Okay. Thank you, Mr. Mayor. And so to deflect my question that went to the manager to you, what is your confidence level that we will get this rebate? UNIDENTIFIED SPEAKER: I'm highly confident Councilmember, that you will receive the -- rebate. It's tax law. KALIVIANAKIS: This isn't your first rodeo. UNIDENTIFIED SPEAKER: No, no it's not. Yeah, we -- our reputation is on the balance -- KALIVIANAKIS: Right? UNIDENTIFIED SPEAKER: -- for this. And so we would not, in good faith, tell you that this is something that we feel you would receive if we were not confident that you would. KALIVIANAKIS: Thank you very much. And I also again, since you mentioned it, I'll mention this to you. But in your return on investment in our package, it was stated at 15 years. And I appreciate your saying, well, it might be 17 years because of some of the incidentals that have been brought up by other Councilmembers. And so I think you were very candid. That said, there are other incidentals that are tied to this. But if you take the whole thing, the big picture and the 30,000 foot view, it'll still be a return on investment in 17 years. And this thing is going to be going hopefully for 35 years. And so once again, that's a lot of long-term savings, even if the return on Meeting Packet Page 113 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 50 of 105 investment is two years longer. So I just want to point that out. And thank you for pointing that out and just being candid enough to not go with the 15 year. The last thing I'd like to talk about, and I think we skipped over it a little bit and but I think the people in the audience and the people at home, they want to understand this guaranteed savings by law, and by your company, because I've never done this myself to my home. But if I'm paying $600 a month for utilities and that company came and said, I can guarantee you it's going to be $50 a month, and if it's more than that, we'll pay for it, I think I'd do that. And I think, isn't that what you're offering us here tonight? UNIDENTIFIED SPEAKER: It is. Yes. Councilmember, it is exactly what is in the State law for the type of contracting that we're doing. UNIDENTIFIED SPEAKER: Yeah. KALIVIANAKIS: And so we're not taking this on faith. Because this is backed by your company and state law. UNIDENTIFIED SPEAKER: Correct. KALIVIANAKIS: Okay. I like that. Thank you. UNIDENTIFIED SPEAKER: You're welcome. UNIDENTIFIED SPEAKER: Yeah. And the light level software that we install on it that monitors that you will see the real time KW production. So it's not a number we're giving you. It's -- backed by metered. So we see it. You see it. It's complete transparency. KALIVIANAKIS: Yeah. And thank you for that, because once again, we've read the packet and we did the deep dive. But people at home and the people in the audience, they might not be aware of that. And so again --, we're not taking anything on faith here. This is a trust with verify. And you guys are guaranteeing you're going to deliver what you said you're going to deliver. And that's a very good thing. Thank you. SKILLICORN: Thank you, Mr. Mayor. Yeah. Just again, punching in numbers, $0.11 a kilowatt. We're still fronting $2.4 million, even if there is a potential for rebate, which is Meeting Packet Page 114 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 51 of 105 not guaranteed, we have to front that until it's completed. So there's opportunity costs on that money, and the savings is rather limited. The warranty is not 30 years. It's not 35 years. You know, sounds like it's -- you know, a number of years on the panel performance, but then the equipment is only two and one monsoon could knock out the electronics. And as someone that's spent a lot of time in the inverter and VFD industry, it happens every day. So we're on the hook -- we're on the hook. There's a lot of risk to this for very little savings. And frankly, once you do the math, there isn't any savings. We're going to spend more money to save $0.11 a kilowatt. I mean -- and if everything goes perfect, you know, we're looking at that 17 to 20 years, and then we have obsolete, outdated equipment. That has -- you don't have any value. So if you're thinking about it as a shade for a parking structure, that's fine. But there just isn't any savings here. And we have to outlay the money, and there's opportunity costs to the money. If we simply put that money you know, into the bank, we'd make more money on it than the amount of money we spend on electricity. It's just really what it is. This is not a representation and good fiduciary policy for the people of Fountain Hills. UNIDENTIFIED SPEAKER: We do understand that, Mr. Mayor and Mr. Councilman; we also do want to reiterate the fact that we are seeing, since 2022, COVID, the 5.1 percent price increase in utilities. So it is exponentially jumping since COVID as well. WATTS: Yeah. But along those lines, you've got to have that factored into your 15 to 17 years. So you already do that. So the more we talk about the numbers, the more concerned I am about it at the 15 year. Best case scenario. 15 years, the panel's, in a very simple math, have degraded by 7.5 percent. So we're down to 56 percent as opposed to 64 percent, somewhere in that area. The life of those panels being 25 years. Yes, there's some upside after that 17-year period, but we don't know what that is. And we don't know what replacement costs are going to be. We don't know what -- Councilman Skillicorn point -- inverters, all of the -- Meeting Packet Page 115 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 52 of 105 all the interconnections that are involved. We end up with a nice covered parking area for a few million dollars. And when you talk about the guarantee, I don't wish any ill will on Veregy, but I assume you guys have a performance bond, that you guarantee the savings by way of a bond so that if you happen to go defunct, we still have the bond. Is that accurate? UNIDENTIFIED SPEAKER: Explain that again, please? WATTS: I'm not -- relying completely on Veregy for your guarantee. There has to be something behind Veregy in the way of an insurance performance bond -- UNIDENTIFIED SPEAKER: Yeah. WATTS: -- or a payment bond. UNIDENTIFIED SPEAKER: Yeah, we do. WATTS: So you bond to our benefit that, if something should go awry, we have a fallback, not just on you. UNIDENTIFIED SPEAKER: Correct. Yes, sir. WATTS: Okay. And I'm still stuck on the payback. And the payback is really driven because the lousy return that SRP gives us that couple of cents. Whereas in a residential environment, we get dollar for dollar payback, and that makes it viable. And also the reason I would go from 64 percent up to 80, 85, 90 percent. Even so, I'm not so sure I'm sold at this point. And I think I might be safer investing in the market as opposed to -- not the market necessarily these days, but you know, making other prudent investments as our -- CFO has already done, as opposed to speculation on solar. So I need more to be able to help. UNIDENTIFIED SPEAKER: Okay. You're also hedging the bet against future -- rate increases. If you look at APS, they're asking for 14 percent the last three years. Of course, they're not getting it but they're getting eight percent, they're getting nine percent year after year. It's only a matter of time before everybody else catches up. WATTS: Yeah, but the point still remains. 15 year life. While -- SRP, we have to deal with, is continuing to raise their rates, the technology is also jumping by increments. Meeting Packet Page 116 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 53 of 105 MCMAHON: Uh-huh. WATTS: So some of the -- film solar that's coming out these days has a longer life, has a higher efficiency. Some of the dual layer solar that is coming out has a much higher efficiency, and reliability is pretty stable. But the technology at the end of 15 years, we don't know what we're going to get. I think I read a report that something had 120 percent efficiency. I don't think they got that. But you know something. So my point is we're stuck with old equipment for 15 years. We didn't really save any money during that period of time. Now what do we do? So again, I need more. MAYOR FRIEDEL: Let me ask a couple comments if you don't mind. So somebody said there's no benefit right now. Well the benefit right now is covered parking. But I do have a couple questions for you. Is there any play in that warranty from two years? Did you -- every project you did, was it a two-year warranty? UNIDENTIFIED SPEAKER: Yeah, that's a standard Arizona statute, a two-year workmanship warranty that all contractors have to provide for any construction project. MAYOR FRIEDEL: Okay. Thank you. And I don't know, maybe this is a Paul question. Have we talked to anybody else about pricing on -- a project like this? How competitive is this? SOLDINGER: So Mayor, Council, this -- so this contract was structured under a cooperative agreement through performance contracting. So we really didn't know the scope of what they would even propose. What they first did -- so going back a little bit. They started with an initial energy. So evaluating our energy interval data to see where there could be some efficiencies. So it's actually a very long process for them to evaluate that and then say based on the data we see this; this is what we propose. And this was the main project discussed. There's other energy efficiencies they are proposing, but because this one has a deadline with the federal rebate, that's why we brought to Council at this time. Meeting Packet Page 117 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 54 of 105 We have not had the opportunity -- and this question has come up. Why not go through a bid process.? Well we didn't know the scope. You need a scope to go through a bid process. And what we're doing is completely legal. And within the parameters of our procurement policy is a performance contract. They guarantee the savings for a certain cost to build the project. MAYOR FRIEDEL: So I have another question. Have you -- how long have you guys been doing these projects for the other towns, and Phoenix? UNIDENTIFIED SPEAKER: And we've been in business for 35 years. MAYOR FRIEDEL: Have you -- what kind of -- what kind of difference have you seen in the technology of the panels in the last five years? Has it been dramatic? UNIDENTIFIED SPEAKER: It's in the last five years, they were at about 450 watts per panel. We're right around 570 right now. You're seeing a typical panel. MAYOR FRIEDEL: And the inverters -- so I want to make another comment, too. If -- monsoons knocked them out, nobody in Arizona would have solar. So -- I'm concerned about monsoons. But again, nobody in Arizona would have solar if monsoons knocked them out. So, your inverters. What's the warranty on the inverters? UNIDENTIFIED SPEAKER: The inverters have ten-year warranty on ten year. MAYOR FRIEDEL: Ten year. Okay. Go ahead, Vice Mayor. EARLE: Thank you. Mayor. I want to go back to the rebate now, learning that we don't get reimbursed till the project is done. When do we know we're guaranteed for the warranty? I'm sorry. The -- rebate. So but I -- we -- will apply for the rebate, but we're not guaranteed the rebate. But then are we locked in whether we get the rebate or not? Is there an option to apply for rebate and then say we go forward only knowing we got the rebate? SOLDINGER: So Mayor, Vice Mayor, I'll speak and you guys correct me if I say anything incorrect. So in these conversations, you know, Veregy, as any company, they would not guarantee that in the contract negotiations that we would get the rebate. But they have Meeting Packet Page 118 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 55 of 105 made many efforts to provide documents and clarification. We end up -- contracting with the tax advisor because to their point, the tax forms are not that complicated. But it's all the calculations and evaluating the criteria of the federal rebate that is challenging. So we have done a lot of verification and going back and forth with Veregy for them to provide the documentation. Our tax advisor needs to provide positive assurances. So I guess I never touched on the fact that we do feel really good. We'll get the rebate very, very strongly. It's not guaranteed, but it's as close to a guarantee that we can get as a staff at this point. But yes, it will come after the fact and we won't know until the project's done, planned for next August, if approved after that, they have to energize it. Is that a few months or how long will that typically take? UNIDENTIFIED SPEAKER: It's when the project is complete, yes. SOLDINGER: So -- we would know in about 14 to 16 months from now, if we are receive the rebate, we would apply for it right away with our tax advisor. And -- we would find out pretty quickly. EARLE: Okay. So then just to a reminder that in the 15 years to get the guarantee of savings, we would be shelling out 86,490. It's not free. The guarantee payback if we don't have the savings, is not free. Conflict of interest, I think I don't know. And then if my calculations here -- if we did nothing and we stayed with SRP with their suggestions, or their estimate of the raises every year, we'd be saving 178,357 in the 15 years. But if we don't get the rebate, that's going to be over a million. MAYOR FRIEDEL: Are you counting the covered parking in there? I don't know how you put the -- EARLE: Covered parking is -- MAYOR FRIEDEL: -- I don't know how you can put a value on that. EARLE: Okay. I'm -- what -- well, we wouldn't have -- if I'm saying -- if we -- well, that's a -- that's expensive covered parking. To get the covered parking with the solar. Yes it all -- it's all together. But if we just stuck with SRP, didn't have covered parking, it looks Meeting Packet Page 119 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 56 of 105 like we in 15 years, we would still be ahead 178,000. This is just estimates because you're just estimating too. So it doesn't -- and all these things we're learning more and more. And as things break down over time or what could happen. I'm not sure how good our insurance would be if a monsoon came through and knocked stuff out. I don't know what that covers. Just the numbers don't look good to me. Sorry, Paul. LARRABEE: Mayor. EARLE: Thank you. I wanted to thank you. Okay. MAYOR FRIEDEL: Hannah. Go ahead. LARRABEE: Thank you, Mayor. Apologies. I don't have a way to raise my hand over the phone. My first question is regarding the actual design of the project. Not even just our numbers, but knowing that, you know, if we were at the equator, the -- solar panels would be able to be flat. But as you move away from the equator, there's a certain angle they need to be to obtain maximum energy or retain maximum energy. Did we prioritize that angle to get the most energy out of each panel, or did we prioritize angle as in getting more shade for the vehicles? I just want to see if we looked at those options. If there's different designs we could look at. UNIDENTIFIED SPEAKER: Yes, Ms. Councilwoman, we do look at all the options for the angles. You could go at a higher angle, but then you're also increasing all your construction costs and your steel costs as well. Ten percent is the optimum that the computer program. We put it in a computer program that spits out where the optimal layouts are, what the angle is, what the azimuth is. And this is where we're at with the ten percent. LARRABEE: Okay. Thank you. So to be clear, are we getting the maximum amount of energy possible out of the solar panel, or are you saying that we are not to reduce building costs? UNIDENTIFIED SPEAKER: Ms. Councilwoman, no. Probably not getting the most out of the angle, because you would have to go at about a 20 percent angle to be at your most Meeting Packet Page 120 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 57 of 105 optimal. But that would put your -- canopy on the rear, approximately 25 feet in the air, and it would block the view of your whole buildings. LARRABEE: Okay. I wouldn't want that either. With -- and now, if -- I hope Paul hasn't walked too far away. But Paul, what would the cost be for us to just build covered parking? Like, let's say we don't put any solar panels on there. Would that be similar to this project cost? SOLDINGER: I don't have those figures of -- LARRABEE: That's fair. I understand that we wouldn't have exact -- SOLDINGER: What was that, Councilwoman? LARRABEE: Sorry, Paul. I understand we wouldn't have exact figures. Probably hasn't been a design yet, but do we have at least an idea of what the difference would be? Because I know a lot of the draw here is the covered parking, so I would like to compare. If that's half the cost, let's put half the money to just building covered parking, you know? SOLDINGER: So what I'll say to that is mayor, Councilwoman, is the reason this is before the Council, before the break is because of the federal rebate. So if -- the Council is interested in looking at covered parking without the solar panels, that's something we could look at in the fall or next fiscal year, and it wouldn't really impact the rebate -- ability to get a rebate. So that's something we could reconsider and look at as staff. LARRABEE: Okay. Thank you. MCMAHON: Thank you. And thank you very much for your presentation and all your in- depth information. Also your proven professional experience in the past and building things for the town, et cetera. As you said, we're going to be paying SRP anyway, and electricity. This is a capital improvement. It is going to not only be covered parking that is capital on our books, but it's going to be solar panels, et cetera. And if you think about it, we have entered into many contracts before with not knowing for sure whether or not we were going to get a rebate. And generally it's panned out, I think almost every single time that we do and Meeting Packet Page 121 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 58 of 105 we've done that. So we have voted for and supported other contracts that have an upcoming rebate that we apply for, et cetera. So I'm not really, really concerned and nervous about that. I do think personally that this is a really good idea, and I would like to make a motion to approve the proposed energy savings capital project for parking shade structure, solar panels, and including all necessary steps to execute contracts to initiate and administer the project to completion. This is a timing thing, and that's why it's here. It's not the only reason we're bringing it now, it's -- we're bringing it. You guys have been working on this, and the staff has been working on this for a really long time. They've done in-depth research about it. It's not just because of the rebate, it's because it's a good -- it's a good capital project for the town. Thank you. [CROSS-TALK] UNIDENTIFIED SPEAKER: Are you looking for a second or two? Are we going to go to the -- MCMAHON: I need a second. KALIVIANAKIS: Okay. I would second that. SKILLICORN: Thank you, Mr. Mayor. And I just have a couple of questions for the vendor. We did talk about inverters. What brand inverter are you guys using? UNIDENTIFIED SPEAKER: Inverters are SMA Sunny Tri-Power X. SKILLICORN: Okay. And then how many are there? UNIDENTIFIED SPEAKER: Total is -- see, you got five inverters for the community center and three inverters on the town hall raise. SKILLICORN: Mr. Mayor, bear with me a moment. Okay. There's quite a few. Just take a look at their warranty information. Also, Mr. Mayor and Councilman Watts, the ten percent versus 20 percent angle. We have thoughts on that. You know, again, I'm skeptical. I don't -- I think this is the -- is going to be very expensive for us to have covered parking, but Mr. Mayor, Councilman Meeting Packet Page 122 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 59 of 105 Watts, do you have thoughts on the angle? WATTS: I think the ten percent angle has some inherent flaws, but when you do the angle, and you do the math, and I forget a squared, b squared, c squared, that kind of stuff. You're probably right, 20-plus feet versus -- what do we have, 15 feet right now for covered parking. So I think that's something to be concerned. I think I look at this slightly differently after all the financial conversations. I think we look at this as a break even project at 15 to 17 years. And then if we're willing to accept a 50 percent performance after that, including -- in addition to -- or plus costs of maintenance and upkeep, then we should do it. But I don't think it pays for itself in that 15 to 17 years. And I think the math supports that. I think the maintenance costs are going to be high. I'm glad to hear that there are fewer number of inverters, rather than having hundreds of inverters out there, because the more items you've got, the more failures you're going to have. So we reduce some of those. I just think that it's -- -- inherently SRP's issue because they don't give us dollar for dollar, so we get a couple of cents. Doesn't make a lot of sense. So if we want -- from the council's perspective, if we want to live with the fact that 15 years from now we'll have paid for this and we'll get whatever we get out of the system, that's a different way to look at it. MAYOR FRIEDEL: Let me add something, too. I think that it -- correct me if I'm wrong. The main cost to all this is the construction costs. The equipment isn't really. It's $500 for a panel. I mean, it's -- not like it's going to break us if a panel goes out. So and I think, again, looking at the numbers and just looking at our trash hauler wanted 30 percent more, EPCOR up 17 percent, APS 16. I think the repayment on this is going to be shorter than 15 or 17 years. I just I don't see any way around that. I mean, am I --right? The major cost is the construction. UNIDENTIFIED SPEAKER: Yes, that's right, Mr. Mayor. And I also want to say that on the calculations that Rob had put together, we guaranteed that on 95 percent. So we will Meeting Packet Page 123 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 60 of 105 also recognize more savings. But for the guarantee, that is what the -- industry would be for the 95 percent on that. MAYOR FRIEDEL: Do we have a comment card? Somebody to speak? BENDER: No, Mayor. We do have three comment cards though. And they all say they are for this project. They don't want to speak. MAYOR FRIEDEL: Thank you. Councilman. SKILLICORN: Thank you, Mr. Mayor. I did look up -- the -- inverters are made in Germany. They're not made in the United States. You know, again, we don't know how long they're going to last. There's maintenance costs. Equipment like this doesn't last forever. And in my experience, which is extensive in this field, you know, lifetime -- the lifetime of these inverters is less than 15 years. WATTS: Wait, I thought the requirement for the rebate was all American made? UNIDENTIFIED SPEAKER: Yes, Mr. Mayor, Councilmember Watts. We have to meet a minimum 50 percent of domestic content for your project to be considered domestic content compliant with the materials and products that we're using. You guys are passing that threshold to 53.2 percent on domestic content. So you guys do qualify for domestic content as well as the fiat compliant materials. WATTS: Thanks. SKILLICORN: Mr. Mayor, thank you very much for your generosity here. I promise this is my last comment. As someone who is critical of the Inflation Explosion [sic] Act, I would be hypocritical if I voted for this. KALIVIANAKIS: Thank you, Mr. Mayor. And yeah, just before we vote, I just want to say, and you mentioned the word stewardship in your presentation, and that's literally what I had written down before your presentation even begun. I think this is a good project, and this is the kind of infrastructure and long-term infrastructure project that I think we should all be interested in. We in the Council serve two-to-four-year terms. And we are temporary stewards of a town that's going to be here for many, many years. We're making decisions today that Meeting Packet Page 124 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 61 of 105 future Councils and future Mayors, future budget officers are going to thank us for. They're going to reap the benefits of what we're doing today, many years down the road. And then somebody sometimes is going to tip the hat to the 2006 [sic] Town Council and saying these people had -- were visionaries. They looked down the road. They invested. Today it's 2.3. We're going to get the -- I'm sure we're going to get the rebate. The experts say we're going to get the rebate. That knocks it down to 1.3, and we're going to be getting cost savings on utilities that are going up dramatically with all the data centers and all the competition for electrical. It's -- going to go up exponentially, and we're going to be getting cheap energy for 35 years. And this is something that I'm so proud to take a yes vote on tonight, because this shows long-term planning, long-term stewardship and investing today and what we're going to be benefiting from in the future. And so to me, this is the probably the easiest vote I've taken since I've been in the Council, going on four years now to -- -- support the staff, to support the staff, report, to support the people, the experts that have come here to our small town and are offering us an option for future savings so we can make more infrastructure, future roads, future investments, future performance center. This is an easy vote. And so thank you for your presentation. And that's what I have to say before I vote. MAYOR FRIEDEL: I have two more comments. One, I think we can space this out over two years. UNIDENTIFIED SPEAKER: (Indiscernible) So that would help us for budgeting. And then secondly, is there something we can look at for use of downtown funds to help fund this project so it doesn't all come out of general fund? GOODWIN: Mayor, we can certainly take a look at that. I'll work with Paul -- wherever Paul went. There you are. Thank you. --to see if that's a viable option. Meeting Packet Page 125 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 62 of 105 MAYOR FRIEDEL: Thank you. So we have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Skillicorn. WATTS: No. BENDER: Councilmember Larrabee. LARRABEE: No. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Watts. WATTS: No. MAYOR FRIEDEL: Vice Mayor Earle. EARLE: May I explain my vote? MAYOR FRIEDEL: Sure. EARLE: I do support energy savings. But as a steward for our town, I think we need to make financially sound decisions. And I just don't -- it doesn't seem financially sound for the return on investment with all the numbers we've looked at. So my answer is no. BENDER: Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, three to four, fails. MAYOR FRIEDEL: Thank you. Sure. SKILLICORN: Mr. Mayor, I make a motion for a couple-minute recess. EARLE: I'll second that. MAYOR FRIEDEL: Short recess. EARLE: Thank you so much. (Recess) MAYOR FRIEDEL: Okay. Thank you. Now we'll move on to Item C, which is Meeting Packet Page 126 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 63 of 105 consideration and possible action regarding a budget authority transfer for additional design costs for the downtown -- streetscape. Capital improvement. Town Manager. GOODWIN: Thank you, Mayor. Director Weldy is going to walk us through a minor -- sort of a minor change in the sense that we have funding set aside in next year's budget for the construction of the downtown streetscape. However, construction can't happen until we finish design. Is that about right? I'll let you finish those details, director. WELDY: Thank you for the introduction and the brief description. So I have been doing this for a considerable amount of time. Sometimes I lighten the mood by using the term proverbial hat. At other times, when it's larger amounts of money, I say dump truck loads. As I mature, I grow less tolerant of some of these things on behalf of the people that I work for. And in this particular case, my tolerance level is right around there. The primary reason for that is I missed some things during the 15 percent design concept report, which was primarily related to drainage. Now that we're moving forward and we have a lot more information that we are paying for, not MAG, these things begin to add up. What I'm here tonight to ask for is funding, and this wouldn't be the first time I've been before this elected body and others to simply state the money that we have allotted for design is not going to be enough. And the reason for this ask is drainage. If the project is constructed without drainage improvements on Parkview between La Montana and Saguaro, when this placemaking town improvement is finished and there is an event there, pick your event. If there is rainfall, that rainfall is going to impact vendors that are in that space, and that's negative media and publicity and not what we should be focusing on. And that's what it comes down to. There was a little bit of error in the 15 percent design. The concept report, I'll own that. But in order to keep moving, we need to keep the design moving. Now let's get to the logistics and the challenging part. Meeting Packet Page 127 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 64 of 105 We have money budgeted for next year based on the budget that you've all seen. Several presentations for construction of the first section, which is Verde River between Avenue of the Fountains and Palisades. We're asking to use some of that money out of next year to complete the design. The intent is to keep moving on the moving forward on the project, which we have done. We've had enough funding to keep going with the design. There hasn't been any delays related to that, but we want to get it over the hump and get the design finished. All the technical specifications, the bid documents done, and get the first phase bid out for construction. So that's what I'm here to ask for, is some additional money to cover that drainage design. With that, I'll do my best to answer any questions not related to my maturity or my attitude. SKILLICORN: Thank you, Mr. Mayor and Director Weldy. So we already did the engineering for the drainage, or we just need a little bit more to do that engineering? And that is in addition to the angled parking spots and all that's going on there? GOODWIN: Mr. Mayor, Councilmember, this is just to pay for the design of the drainage. So we're -- that design is already underway because, again, we do have funding to keep moving until June 30th of this year. We're asking for that funding to carry into next year for the design. SKILLICORN: And Mr. Mayor, Director Weldy, do those storm drainage -- where -- does it go to? I mean, it wouldn't be allowed to go to the lake. Where does it go to? WELDY: Mr. Mayor, Councilmember. So it's easy for me to paint a picture, but basically what we have is everything from La Montana west to the Avenue of the Fountains in and around the drugstore and the assisted living facility. Those drain onto the Avenue of the Fountains. From the Avenue of the Fountains, they drain through that neighborhood into a basin, and that basin is along West B, and then it goes under West B and underneath the smaller homes on -- La Montana and comes underneath the Bashas' Parking Center. It enters La Montana right around Parkview. Meeting Packet Page 128 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 65 of 105 You may or may not, during storms have seen water -- what appears to be a lot of water coming out of the Bashas' parking. That's the water from there. Now that covers that part west of La Montana. A little bit of technical term here. So when -- we talk about the vertical crest, I'm talking about the highest part on the road north of Parkview on La Montana. The vertical crest is just in front of the bank building there. South of Parkview on La Montana, the vertical crest is just around the corner on the Avenue of the Fountains, so some of the water that comes down the avenue will turn. But all of that water ends up on Parkview. Now to get to answering your question, all of the runoff that comes down Parkview will be entering into a storm drain that exists on Saguaro Boulevard. Depending on the quantity or the Q as we describe it, it will then enter Fountain Channel. Fountain Channel is a turf area parallel to Saguaro that starts right at Parkview and then disappears as it goes under El Lago, and eventually ends up heading into the Verde River and the Salt River. SKILLICORN: And Mr. Mayor, Director, the let's say the water comes out of Bashas. Is that above grade that goes down the street or is -- are there storm drains? Storm sewers? It flows underneath grade. WELDY: For the Bashas, there is a concrete structure that allows it to flow under Bashas. Once it enters La Montana, it's on the surface; our intent is to capture it in that area and pipe it down to Saguaro. SKILLICORN: Thank you. And Mr. Weldy, you mentioned MAG. I don't know if I specifically remember a MAG component to this. Is there or was there like a drainage -- something to drainage with MAG? WELDY: So the first part of this, which was the 15 percent design concept, was $100,000 grant for MAG. That got us to the 15 percent, which doesn't go into a lot of details. It just gives us some concepts that we presented not only to the public, but to this elected body. SKILLICORN: Thank you very much. WELDY: You're welcome. Meeting Packet Page 129 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 66 of 105 SKILLICORN: So far, this is the best topic. EARLE: Thank you, Mayor. So my understanding is we already have this money, just in another bucket, so to speak, and we're switching it to this one if I speak like Paul does. I don't know where he is. Is that correct? WELDY: Mr. Mayor, Madam Vice Mayor, that is correct. We already have money budgeted next year for construction. We're asking to use some of that construction money for design. EARLE: But we don't want to do construction improperly. We need the proper design. So I -- if I can make a motion to approve and then continue conversation? SKILLICORN: I'll second that. KALIVIANAKIS: Councilman. WATTS: So we've already got -- we've already got money set aside for the budget to do the actual construction component; is that correct? WELDY: Mr. Mayor, Councilmember, that is correct. WATTS: So can we get your personal assurance that you'll save this money out of that? WELDY: Councilmember, I can't give you personal assurances based on all the other moving parts, but I'm a man of my word. WATTS: So thank you, Justin. I appreciate the input. MAYOR FRIEDEL: Town Clerk, are there any comment cards? MAYOR FRIEDEL: No, Mayor. MAYOR FRIEDEL: No. Okay. I'll take a motion -- a second. Did you second it? Okay. We have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Larrabee. KALIVIANAKIS: Aye. BENDER: Councilmember McMahon. Meeting Packet Page 130 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 67 of 105 MCMAHON: Aye. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Watts. WATTS: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. Moving on to item D, discussion and possible direction relating to e-bikes and e-moto regulations. Rachael? GOODWIN: Mayor, if you recall from our last meeting, we had a request to review what our current statutes say, what our current rules are. E-bikes are a growing concern in a number of communities, not just ours, but across the valley. Kevin has taken some time to put together some highlights about e-bikes, what they are, what they aren't, and what we currently have in place. I do know that we also have Captain Thomas in the back because this conversation obviously does overlap with MCSO efforts. So with that, I'll turn it over to Director Snipes. And just want to note, too, that this item is agendized for discussion and possible direction. So it's really about next steps, what you guys would like to see if any. All right. With that, all yours. SNIPES: Thank you very much. Mr. Mayor, Councilmembers. We're here tonight to talk about e-bikes. I know it's been a hot topic of discussion throughout this year for sure, and last year as well. Where we kind of like to start is there's a lot of -- even municipalities that are coming out and saying things that aren't accurate as far as what an e-bike is or is not. Here, we kind of see one that -- was -- put out by Scottsdale and it's talking about Meeting Packet Page 131 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 68 of 105 they're creating no e-bike zones. Well, the picture is not of an e-bike, it's of an e-moto. So that's something that we need to kind of pay attention to as we're talking about this, to make sure that we're talking about the things that we're intending to off to the right, you can kind of see that the e-bikes are kind of a lot like what we saw in many years ago when the mopeds came out and mopeds were not motorcycles. So they had their own set of rules. Now it's just we're talking about e-bikes or motos versus motorcycles or e- motorcycles. So kind of looking at the two and the differences. An e-bike is something with pedals. If you can't pedal it, it's not an e-bike, where any motorcycle has pegs like a motorcycle does. They can be much faster and -- require you to follow the rules of the road, which includes having license and all the things that you would have to have if you were riding a motorcycle. Here's another look at a -- e-moto and the gear that's required for it, which follows the same guidelines as what we do with -- motorcycles. What we're here talking about primarily tonight is the e-bikes. And so there's three different classes of e-bikes. They can be manipulated. So it's one of the things that we got to kind of look at. They have stickers that are on them when they -- first come out, but that doesn't mean that people don't take those off. So --it's -- one of the things that makes this very difficult with enforcement is figuring out exactly what you're dealing with. The State law in Arizona is the baseline authority. So we have to follow that at minimum. What we want to do beyond that is up to the group tonight to have that discussion and -- figure out what we want to do, and then we'll bring that back to you for approval in the fall. Here, we're kind of talking about the different classes of e-bikes. The class 1s are -- and in class 2s both only go to 20 miles per hour. The class 1 has pedal assist, which means you have to be pedaling it for the motor to work. The class 2s mean that you can throttle it like you would a motorcycle to -- get power, and you don't have to have the pedal assist, but it still is limited to a 20 mile-an-hour speed, and the class 3s go up to 28 Meeting Packet Page 132 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 69 of 105 miles per hour. and they do have a speedometer required on them, and they are pedal- assist only. So as you can see just in those descriptions, there's a lot of similarities between all three of them. So there's when we start having different rules based on the classes; it becomes very difficult for MCSO to be able to look across the park and go, yep, that's a class 1, or that's a class 2, or that's a class 3. That's a very difficult thing to determine from a distance. Around the valley there's a lot -- I mean, it's all over the place. So this is one where everybody's trying something different, and -- I don't think that any one solution has solved all the problems. But what we're trying to do is minimize the issues that we've had. Phoenix has gone to being the most restrictive in their park and preserve areas. They're set up where their off-road vehicle -- their off-road trails, they don't allow the e-bikes except for on the streets and on the paved facilities. On their natural surfaces, they don't allow it in the -- on their trails and things like that, which we are. We follow that same guideline here. We don't allow e-bikes in our preserve at all or on any of our trails at this time. Scottsdale kind of took a little bit different approach. They've guided theirs more towards how you ride it. Trying to cut down on reckless riding, riding wheelies under the influence, and -- allowing them to not use the class 3s on their mixed-use paths. Glendale by far has the most restrictive and comprehensive. They have age restrictions for -- each of the classes. They also have equipment requirements to have lights like you would for a bike when you're riding at nighttime. They have behavioral regulations for reckless riding. They have enforcement fines. They could climb to $500 within a 12- month period, depending on how many times you're caught. They also have 15 miles per hour limits within the parks and a requirement to yield to pedestrians. So with all of that, it I can't imagine how they -- enforce any -- most of this, because they're not sending out with radar guns, checking for 15-mile-an-hour speeds in the parks. You know, and one person's thought of a yield on a mixed-use path versus Meeting Packet Page 133 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 70 of 105 another's -- I'm sure we get plenty of calls that, hey, someone's here doing this right now. Getting out there to get to them again becomes a difficult task. So it's one of those things that we really want to make sure that we're thinking about as we're -- coming up with a plan to where it is enforceable, and it's not 1,000 calls to get a couple of people that you actually catch. We'd much rather have it be something where it's enforceable on a drive-by and being able to see what's going on within the parks and or the streets. So here's some options that we can look into. One is just to follow the Arizona law. The pros of that would be that it's simple. There's minimal enforcement burden. And there's -- and --it's consistent with the State law. Of course, that doesn't solve the issues that we're seeing with our residents' concerns about the speeds and the conflicts that we're seeing on the streets and in the parks. Another option is to do a path and trail classification, where we allow certain classes of e-bikes on our mixed-use paths, our shared-use paths, our sidewalks, and we still stay away from allowing the e-bikes on our trails. I personally think that -- if we start allowing them into the preserve, we'll -- run into more problems than what we have now, for sure. Another option to look into is doing an age restriction. And this would not allow -- and there's two different ways that I've seen it done. One is to not allow anyone under 14 to be on an e-bike. Another version that I seen done was to allow them on class 2s and 3s. Not -- to allow them on class 2s and 3s, sorry, but to allow them on the class 1s. This does address the concerns about the younger riders and seeing the -- way that they ride around and not knowing the rules and or not caring about the rules or a combination of the two. This again is more difficult to enforce because it's very hard to see someone with a helmet on and go, he's probably ten or 15 or 12. So it is very difficult to enforce. Another option is that we do a combination of the two, where we set an age restriction and we set a location restriction where we're not allowing the class 3s on the shared- use paths, the sidewalks, or the natural surfaces, as we saw in option 2. And -- but we Meeting Packet Page 134 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 71 of 105 are allowing class 1s and 2s to be able to be ridden on our shared-use paths and our sidewalks. And one of the things that that I've noticed more so recently as I am seeing more and more older people that aren't maybe able to ride bikes as much, and now they're riding e-bikes and getting out and using them. And so we want to be cautious of that as well as we're having these discussions and think what's going to affect everyone that are on these bikes, you know, if we're not allowing them in parks or if we're not allowing them in -- on sidewalks, then that's going to also affect -- it will affect everyone that's using these. Another option is to follow the rules of the road for of the State for the road usage, and to not allow any e-bikes in parks at all. It's a simple way to do it. It's easy to enforce because if you see an e-bike, then they're not allowed to be in there. But it is very restrictive and it doesn't address the street riding concerns. With that, I'll open it up to have some discussions around it and see how we want to move forward. EARLE: Thank you mayor. So what are the problems you're hearing currently? Well, and I want to ask. Regular bicycles, they're allowed in the park and on the sidewalks going down the avenue? SNIPES: Yes, uh-huh. EARLE: But the issue with -- SNIPES: But we've allowed -- it was a Council directive before my time here to allow bikes on all of our sidewalks, both in and out of the parks. EARLE: I know a lot of people like to walk around the park. Is there issues with the bikes running people over? SNIPES: I won't say running over. We -- have had complaints over the years of bikes being on the path and riding too fast, or not being courteous of people that are walking by. EARLE: Is there issues on the sidewalks, like on the Avenue of the Fountains where people walk up and down there? Are we having problems there? Meeting Packet Page 135 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 72 of 105 SNIPES: That's probably the one spot that I haven't ever had a complaint on, is on the Avenue. EARLE: Where's the most complaints? SNIPES: Fountain Park would be where we get the most complaints. EARLE: Fountain Park. Okay. What do you -- you think regular bikes are okay there? Maybe not e-bikes in the parks? SNIPES: It's definitely one option that we could do. Like I said, it does make it easy to enforce and to keep an eye out for. It. This is really a -- Council decision. Like I said, I've seen it done so many different ways, and I don't think that any of them are perfect. And so it's just really a matter of our town and the feel that we have here. The -- damage that the e-bikes, that some of the kids have been riding and doing donuts in our -- in fields and -- tearing up some of our granite areas is definitely been a concern. It's tailed off a little bit here recently, the damage-wise from what it was right after Christmas, when I think a lot of them may have been given away. So that's a good thing, but we are getting ready to go into summer and we'll see if it picks right back up again now that the kids will be out of school. EARLE: So I'm not familiar with e-bikes, but I was looking at those. But can they be just pedal only, you don't have any of the power on? SNIPES: They're -- -- EARLE: Class 1, 2 or 3? SNIPES: Not an e-bike; if they're an e-bike, as you pedal the -- EARLE: But can you just pedal? SNIPES: Could you just pedal? EARLE: Without the motor on? SNIPES: Yes, uh-huh. EARLE: So there could be a -- you have to pedal in the park once you get out of the park. You can. SNIPES: Well, when you're pedaling, it kicks the motor in as well. So you -- have a tough time. Meeting Packet Page 136 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 73 of 105 EARLE: You can't disconnect that part. SNIPES: Seeing that. Uh-huh. EARLE: Okay. Thank you. MCMAHON: Kevin, thank you very much for your presentation. I was on wait and I appreciate all the in-depth information. I read through some of the statutes and I happen to like Glendale's in the sense that it's pretty thorough as far as it, you know, gives you definitions -- for the bike. It covers drugs, alcohol, the whole nine yards. However, you say that's really difficult to enforce. Now, from my vantage point, I don't know what you know and what the Sheriff's Department know about the damage and enforcing, you know, what we need to enforce. So I think from my perspective, what is it you're trying to solve? And then we can look at which option or which one is best given our community, what you're trying to solve, and what they can enforce. And another question I'm just asking, you know, all of them right now, is do you notice that the Glendale one has fines? So I mean, I know the 14-year olds don't have ID cards or you know, age, you know, cards, et cetera so that's going to be tough to judge. You're just going to have to believe them. But I guess what I'm asking you for personally is a little bit of direction on what problem we're trying to solve so that we can weigh in as to what option might be the best option to help you manage the situation. Okay? SNIPES: Yeah. So I mean, this was a director from Council for us to go out and find some information on because of complaints that had been filed by residents here in town, as well as our parks department, seeing the damage that they're causing in the parks. And I'd have to let Captain Thomas speak to what they're seeing on the streets and -- roads and issues that have come up with that as well. As far as to the parks, it's -- more of the destruction -- destructive nature of the bikes that have caused the most damage -- MCMAHON: Uh-huh. Meeting Packet Page 137 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 74 of 105 SNIPES: -- here lately for us. MCMAHON: Uh-huh. SNIPES: And having the e-bikes being in the parks and -- ridden through areas that they shouldn't be ridden in causing plant damage and turf damage and things like that. MCMAHON: So would you prefer that they not be allowed in the parks or be very restricted in the parks? SNIPES: Yeah, I think in an ideal world I would. I like the age restriction idea. MCMAHON: Uh-huh. SNIPES: Knowing how difficult that is to -- enforce, I don't know that -- that would be something that we could put it out there. But I don't know that we're going to get the effect that we're looking for out of doing it by age. MCMAHON: Okay. SNIPES: And so with that, I would probably lean towards no e-bikes in the parks. And that would solve that side of the problem. SKILLICORN: They're not allowed on dirt -- on hiking paths or anything, are they? They're already not allowed on that. So we don't -- okay. Okay. So I guess getting back to the parks. So do you not want to allow them in the parks? I mean, are there reasonable restrictions if it's too cumbersome to not allow them in the parks, et cetera that we can apply in any of these options that you've given us or no? SNIPES: If I -- I'm not sure I'm understanding your question. So are you asking if we can -- if -- MCMAHON: Eliminate in parks. SNIPES: If we -- just eliminated them with within the parks and that would take care of the park side of the problem. We would just enforce no e-bikes in the parks. The issues that have been reported on the roadways and cutting in and out of traffic, and those sort of things, that would be a different, you know, would be a different option. MCMAHON: Okay. So we could add that and the streets and being able to enforce that cut down on the parks, maybe have an age restriction. So I mean that's a good start. SNIPES: Uh-huh. Meeting Packet Page 138 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 75 of 105 MCMAHON: You know, thank you for that direction; I appreciate it. Okay. WATTS: So I knew if I called enough times you'd finally get the message. My question really is this is one of enforcement. You really don't -- you and your staff really don't have an enforcement ability. So it falls back on MCSO. How are they going to enforce it? And there's an overriding concept that applies to e- bikes, bicycles, and so on. Anybody that rides on the street -- that they have to follow traffic laws. SNIPES: Uh-huh. WATTS: We're having a difficult time now doing that. I don't like the bikes in -- the park or skateboards, you know, and that kind of stuff. They -- I've seen too many almost -- not -- any accidents, per se, but almost. So I'm more of a proponent to ban them from the park and keep them on the streets in the bike lanes. And if parents allow them to ride in the streets, it's easier for MCSO to enforce at that point. They can see them. They're more -- visible. But keep them off of the --park areas and -- they're already from banned from the -- paths and trails. So that's where I would go. SNIPES: Okay. KALIVIANAKIS: Thank you, Mr. Mayor. Yeah. Thanks for bringing this up tonight. This is something that I think all the Councilmembers do hear from the general public. Matter of fact, we just got an email today addressed to the whole Council on, you know, we're going to do about it, and I let them know that -- hope you're listening out there -- listen in because we're going to be talking about tonight. You know, it's one of those things you just want to get it just right. You know, like the three bears. I do want to regulate. I don't want to overregulate. But I'm not sure if I have the information that I need from MCSO. What's more problematic? And Councilmember McMahon said this, we have to identify what the real problems are. So to me, the analysis would be let's identify what the biggest problems are. Let's -- talk to the experts. In my opinion, that would be MCSO, members from the Parks Department, and I'd also like to schedule, if possible, an open house at the Meeting Packet Page 139 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 76 of 105 community center, invite the public and let them come in there and tell us and tell the staff what they perceive as the biggest problems. Because if we get that kind of input from the parks people that are out there, the Sheriff's Department who deals with this all the time, and then from the residents to tell us where they're identifying that, their major concerns, then I think we could bring this up back in the fall and go into it really eyes open and knowing just --what we have to regulate, just what the concerns are without overregulating it. And so you know, to --me, I love the fact we're discussing this, but I just want to have the information from all concerned principals and players of what they would like to see us draft and then have the -- town staff put something together. Again, maybe what you did tonight. The minimum. One more. And I think that'd be a good way. And then we can vote with more knowledge. So that would be my suggestion. SKILLICORN: Thank you, Mr. Mayor and Director Snipes. I think you may have communicated this, but the biggest complaint from your department and maybe town-wide is more so the certain riders that are doing donuts or damaging equipment, damaging fields, effectively vandalism, right? Okay. So I look at that -- is a vandalism issue, not a bike issue. And I don't know if there are -- you know, what legal remedies are, but requiring helmets and age restrictions and stickers on the bikes doesn't stop vandalism. And then kind of on that point on this issue, many issues, I'm fundamentally libertarian. I'd prefer to have as little regulation as possible. And I'm also someone -- I don't currently own a e-bike; I had in the past, but I mountain bike. I like to do wheelies, I like to jump, I like to do endos, you know, things like that. So maybe I'm a small-h hooligan. So I understand the activity, and I don't want to take away from it. But I also know there's a lot of people in our town that are maybe not as physically capable to go up huge hills, and they have changed over to -- e-bikes have been very popular. And I think there's a lot of people that they don't own two bikes anymore. Meeting Packet Page 140 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 77 of 105 Maybe once upon a time they did, but a lot of times they got an e-bike and that's fine. There was a question from the Council about the pedal assist. Most e-bikes, you can turn that off or its setting. You know, you have just a tiny bit, a little bit more. And there's also the time when the battery runs out and then it is just a regular bicycle. There's also another issue is that they tend to be a little heavier, and I think there are places that it is a little inappropriate. And if you're not going to be rude to other people, if you're riding around the path and the fountain, it's not a great place to be one riding a bicycle at all or an e-bike. Have I done it? Yes. Have I done it when a lot of people are there? Or try not to. Right? I mean, you can -- you can understand when it's respectful, when it isn't, right? SNIPES: Yeah. SKILLICORN: If it's no one around and you're just trying to get the one side to the other, it's probably not a big deal. So I think that's where the issue is, is that there's there are some people that are either don't have that self-awareness or are being disrespectful. And then there's -- we have the vandals. So I would prefer to tread as lightly as we can. And I know that -- I know this is a very popular item in town. I have a feeling that I'm in a minority on this, but if we go too much, are we going to get into a nightmare of enforcement? And you know, like age limits, like, I'm sorry, people, we can vote with an ID in Arizona. Kids -- 14-year olds aren't walking around IDs, okay? Voters don't have IDs here in Arizona. So how do we enforce that? It means we wouldn't. So I mean, we can't do something we can't enforce. Also, as -- I mean, I'm a little bit interested in the subject. But I have seen e-bikes that advertise being the fastest e-bike in the world. And they'll give you a stack of stickers, and it's a sticker that is appropriate for the trail you want to be on. Right? So even if it's a class 1 and your e-bike will do 40 miles an hour, you can put the class 1 sticker on there. You know, how -- do you enforce that? And then do we really want to be the town that well, let's peel -- what's underneath your sticker. I mean, that is not the town I want to Meeting Packet Page 141 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 78 of 105 be part of. I prefer to just ask people to be respectful. And I think there's got to be ways that we can deal with, you know, people vandalizing the park by doing donuts and stuff. I am surprised that the current policy and directive was that -- allows bicycles are on sidewalks. Again, I don't know if that's -- no one around, no big deal. But if there's people using sidewalks, I don't think it's appropriate to zoom by them at 20 miles an hour. You know, people, you know could get hurt. It's not respectful, and they tend to be a little bigger and heavier, you know, stuff like that. I don't think it's an issue with adults. Maybe I'm wrong, but an issue with kids, some of it might be trying to get the parents to crack down. I would be curious what the captain has to say on enforcement, like, I don't think it's going to be code enforcement that goes and does it. I don't think it's going to the Parks Department. It's going to be the MCSO. What tools do they need and what real issues are there? You know, I think there's a couple different issues. One is the vandalism. There are kids that are on e -motos that are zipping in and out of traffic and could get hurt. Unfortunately, you can't legislate everything. I mean, if you're going to do that, you require everyone to wear, like motorcycle leathers and helmets and stuff. You know, it can't be padded, so we can't regulate that either. So I don't have all the answers, but I mean, I'm willing to listen to a consensus. I think that Scottsdale's got a better thing. Now you did -- the current policy is none of the dirt trails -- any bike is allowed on them? So like -- SNIPES: No, bicycles are. E-bikes are not. SKILLICORN: So let's say -- the Fountain Overlook Trail. You can ride a mountain bike up and down there? It's a little tight for mountain biking. SNIPES: I don't think that one -- is not on it. We have trails that are bike -- that allowed mountain bikes and regular bikes. SKILLICORN: So like -- I personally I've gone to Daryl (ph.) Canyon -- [CROSS-TALK] SKILLICORN: -- and I've -- if you go north, that's fine for mountain biking, right? But Meeting Packet Page 142 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 79 of 105 some of the trails are real tight. Some of them are more difficult to use a mountain bike or even e-bike. But then if there's other hikers, that becomes an issue. SNIPES: Correct. SKILLICORN: I just don't want to have a heavy handed. SNIPES: Uh-huh. SKILLICORN: I understand if this Council wanted to limit the use, especially the Fountain Park, is that the number one complaint place, the Fountain Park? SNIPES: I would say it's the number one pedestrian to bicycle location -- SKILLICORN: Yeah. SNIPES: -- but the damage from e-bikes is probably maxed out at -- Four Peaks. SKILLICORN: At Four peaks. And -- that's just a -- purely damage? SNIPES: Uh -huh. SKILLICORN: Yeah, are there -- I know the Mayor is an avid bicyclist. Are there trails at Four Peaks that are appropriate for that? I think of walking trails and playground equipment, baseball diamonds, you know, obviously the tennis courts, I don't think of -- appropriate bicycle trails there. MAYOR FRIEDEL: There's no -- trail there. SNIPES: One of the things --that we've done here is we've built ten-foot-wide sidewalks for multi-use. SKILLICORN: Things -- SNIPES: And so that's -- SKILLICORN: That's attracted the hoodlums. SNIPES: It is. Well, it's also attractive to kids learning how to ride bikes. And we're not against that. It's -- the speed of and knowledge of how to control the bike that they just get sent out into the world and go, hey, go ride. And you ride as fast as you can. You do endos, you do jumps, and you do what you can do. I did when I was a kid, for sure. SKILLICORN: I mean, is it possible to craft something tight about those high traffic park areas? It doesn't have to even be class 2. But class 1, 2, I don't know. And that's it. I mean, I just don't want to -- I don't want to become the town that is so restrictive that Meeting Packet Page 143 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 80 of 105 we're not fun. SNIPES: There's definitely places that allow class 1 and 2s in -- their parks, and they don't allow class 3s. That's -- something that has been written. Again, it's tough to enforce like we talked about. SKILLICORN: Yeah. SNIPES: And so like I said, this is a very difficult conversation because it's so hard to -- there's so many different steps. At least with -- the mopeds, they were pretty much the same. You know, there wasn't much difference in them. And so once you set a guideline, you could go, yep, that's a moped -- SKILLICORN: That's very easy to have an e-bike or electric bike with quite a bit of power nowadays. SNIPES: They tweak them where they take the governors off of them and all sorts of stuff. SKILLICORN: Yeah. And I do want to point out I was talking to a few people on the other side over there about maybe mountain biking in the State Trust land. And we have a very awesome town manager that might be helping facilitate that. So -- there, I mean, there's more opportunity. You don't have to be running over people to have fun. SNIPES: Right. SKILLICORN: So I just think if we could craft something very, very narrow that would be something that would be more interesting than me. MAYOR FRIEDEL: Would you be okay with restricting them from Fountain Park? That's a high pedestrian -- area. SKILLICORN: Yeah. Mr. Mayor, I think it's highly inappropriate to be riding around Fountain Park when there's people there. The only issue is -- that if nobody's there, does it bother anybody? And I can't craft an ordinance. SNIPES: Right, it doesn't work like that. SKILLICORN: Like, oh, you can ride your bicycle there when it's appropriate. SNIPES: We'll put a sign up that says there's 12 people in the park. You can't ride now. Meeting Packet Page 144 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 81 of 105 SKILLICORN: Yeah, that's the problem. Now, I think it's highly inappropriate. I mean, it doesn't even need to be that many people walking around. If you're zipping by pedestrians and a 20-mile-per-hour e-bike. And frankly, the it's, you know, it's challenging to get up to 20 curving. But even, you know, 15 miles an hour, someone walking at three miles an hour and an e-bike zipping by two inches away at 15 miles an hour, it doesn't mix well, right? I was hoping more people would have common sense. LARRABEE: Mayor? MAYOR FRIEDEL: Yes, ma'am. LARRABEE: Thank you. Kevin, would we be able to maybe consider an ordinance to bridge this gap, right? We -- might not want to completely ban it for the elderly, that these help them get around. But at the same time, we need to control some of the crazy. Are we able to put something like reckless driving in there? And that would include e-bikes, bikes, scooters, whatever, and just give MCSO a little bit of leeway to say like, hey, if someone's being crazy, they're able to do something about it. Or is that not really a realistic stipulation we could add? SNIPES: Well, I would say that when you start going down that line, then I would say it's crazy for someone to ride and jump and do a backflip on a bike, but the person that's doing it goes, no, it's just a Wednesday. And that's what we do. So I think as soon as you start trying to determine what that is -- Now, you could do, you know, like reckless riding. Like there's Scottsdale has taken that approach of no wheelies. And they put some restrictions like that on it. So yeah, you could do something along those lines. You'd have to be specific on what you are and aren't allowing. LARRABEE: Okay. Thank you. And as for the vandalism issue, do you have a ballpark figure of how much that has cost the town so far? SNIPES: I don't; it's -- a lot of man hours more so than it is property damage. Like, when you get a four-or-five-inch-deep hole into an infield of a ball field, it takes time to get that cleaned back up and put back together. And then it happens again the next night, Meeting Packet Page 145 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 82 of 105 and then the next night, and then the next night. That starts to -- calculate into a good amount of time that the guys are spending on stuff like that, or trails where they're throwing rocks out onto the sidewalk. So you're having to -- blow off the sidewalk and then shovel it back up the hill. That takes time. So it's a lot more time damage than --, say, someone doing graffiti or something like that, where there's actual monetary cost to it. LARRABEE: Okay. Thank you. And just to add to previous comments, I agree. I don't want to be overly heavy handed. I want Fountain Hills to be fun for kids, but I also want it to be safe for you know, all ages. Living near Four Peaks Park, I've been doing a lot of walking around there lately, and I will say I have seen some questionable decisions when it comes to crossing the road or -- I'm being as polite as I can about it, but I know kids. Kids are kids, and they're going to want to drive it as fast as they can. And that's what's kind of scary about these e-bikes is I think these companies, on the broad scale, are not taking a lot of responsibility for how dangerous they can be. I saw the fairly recent story of, unfortunately, the child that was killed in an accident with a vehicle and how that woman has been really pushing for legislation now on e-bikes. I -- don't mean to ramble on it, but I do want to see how we can put up just reasonable barriers on this without being overly heavy handed, but maybe just enforce some of the rules that maybe should have been designed into the bike in the first place. Like if we could -- not necessarily a speed limit, but if we could allow for MCSO to have some common sense enforcement, I think I'd like to see some looser language that allows us to let them make a judgment call. GOODWIN: Mayor, can I suggest -- I mean, this is obviously a very in-depth conversation with a lot of nuance to it. Would it make sense to bring this back as a work session or for another time, where we may have a little more discussion and input? EARLE: Yes, please. GOODWIN: Just a suggestion. MAYOR FRIEDEL: Yes, let's -- do that. Meeting Packet Page 146 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 83 of 105 SKILLICORN: I'll make a motion to table and to have a work session. EARLE: Okay. SNIPES: Thank you very much. EARLE: Do we need to vote on that? MAYOR FRIEDEL: I just -- we just need direction. GOODWIN: Yeah. We'll take that direction and go from there. SKILLICORN: Maybe we need a sheriff to bring back the posse to watch the park. SNIPES: Thank you. BENDER: Mayor. We did have one speaker. MAYOR FRIEDEL: Oh. Oh. Okay. MCMAHON: Shelby Blecher. SKILLICORN: He was sitting there stewing. I got three minutes. UNIDENTIFIED SPEAKER: Come on down. BLECHER: Good evening, Mr. Mayor. Councilmembers. Shelby Blecher, Fountain Hill resident. I'm going to take a little bit different approach to this. When you consider the regulations for e-bikes and e-moto, please consider the handout that I provided all of you regarding the hidden dangers of e-bikes. You should have all gotten these today. This was written by the American Academy of Orthopedic Surgeons. Orthopedic and trauma surgeons report a drastic surge in severe e-bike injuries due to the device's high speeds and heavy weight. E-bike accidents differ fundamentally from traditional bike crashes, more closely mirroring small motorcycle collisions. Doctors frequently treat complex and high energy fractures and traumatic brain injuries that typically require immediate surgery. Now, e-bikes certainly are fun and a convenient alternative to cars or for exploring our hilly community. Unfortunately, the dangers that come with high speeds aren't always communicated to the users, making it necessary to form regulations. We certainly need to keep them off of the sidewalks, out of the parks, and put them in the streets and designated bike lanes we have in town. Meeting Packet Page 147 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 84 of 105 A collision between an e-bike and a pedestrian will have tragic consequences. So I would advocate for the most restrictive policy similar to Glendale; whether it's enforceable or not, that's on MCSO. But if you don't have the policy, you can't enforce it. And I've heard somebody else comment about the fact that maybe we can put 14- year-olds into a class and require some type of licensing for them that they can carry in town. So there are alternatives. But I didn't hear any of you really talk about the severity of the injuries that are happening with e-bikes. Thank you. MAYOR FRIEDEL: Thank you. Moving on to item E, public hearing. I'm going to open up a public hearing with possible action regarding ordinance 2611, amending the zoning ordinance, chapter 6 sign regulation, section 6.08 A, drive-through sign, increase the allowed size of the signs. So I've opened the public hearing. Rachael? GOODWIN: Thank you, Mayor. I'll turn this directly over to Director Wesley to walk us through tonight's -- the details of the ordinance. WESLEY: Mayor, Council, good to be with you this evening. I'll try to keep this quick. It's a fairly simple topic, and you've had a long evening. So as stated, we're looking at a potential change in Chapter 6 of the zoning ordinance, which deals with signs. Signs we can regulate by time, place and manner provisions, but not by content. As you're aware, there's a major update done of the sign code in 2021 to become compliant with those requirements. When we did that, we did not make any changes in terms of the size requirements related to drive-through signs or the signs -- you have a menu board as you go to a drive-through restaurant. We've had some questions come up, concerns about -- our current regulations, that they're a little bit restrictive. And so we've taken a look at that to see if there is a possibility of making some changes. So here's the basics of our current regulations for drive-through signs, with a basic description of where they can be and the parameters that they can operate under. The primary ones of concern or interest here are the limitation on 20 square feet and Meeting Packet Page 148 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 85 of 105 five feet in height. Looking around the valley, we see that others have larger sizes here and we found these two specifically. It gets a little bit complicated since you can't regulate based on type of sign. So communities do it differently. These two I could identify as being directly comparable, and also just looking at general industry standards for how big these boards typically are. And so you see the different types there between the small, medium, and the large. So with that information in mind, we went to the Planning and Zoning Commission and discussed some options with them, and based on that discussion, its staff in the Planning and Zoning Commission's recommendation that we increase from 20 square feet to 30 square feet and from five feet of height to seven feet of height. And these signs -- and so this gives you a kind of a relative comparison of the current 20 square foot, the 30 square foot. So with that, Mayor, Council, any questions? MAYOR FRIEDEL: Thank you. MCMAHON: Who asked for this? SKILLICORN: Sorry. Thank you, Mr. Mayor. Are -- we have a bunch of drive-through businesses in town. Is everybody compliant with the current 20 square foot rule, or are there some that are -- because they just seem normal to me? WESLEY: Mayor. Councilmember. We did not go back out and measure what's there. We've had the same regulation for many years. So my assumption is that they are all compliant with the measurements. SKILLICORN: And then, Mr. Mayor, Director Wesley, you mentioned that someone said that we were a little small. Was that a business owner or what was the circumstance? WESLEY: Mayor, Councilmembers, specifically, it's the Dairy Queen that's preparing to come occupy. They're actually looking for something even a little bit larger than this. But we can work with a 30 square feet. SKILLICORN: Thank you. Thank you. MAYOR FRIEDEL: Thank you for answering my question. I'm not for this at all. I think that, you know, the signs for the Whopper and everything else they've worked so far -- Meeting Packet Page 149 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 86 of 105 they seem to be fine. The Dairy Queen is going to be in a very small area and a very small drive-through, and it's basically asking for a larger sign. I don't see the need for it. I'm not for larger signs in this regard. Like I said, I think they're fine the way they are. So I'm not for this. SKILLICORN: Thank you, Mr. Mayor. Planning, zoning, it's already gone through. They recommended 30 square feet. Was it unanimous? WESLEY: Yes, it was unanimous. SKILLICORN: So the Planning Zoning Commission unanimously said we should go to 30. Yes. Okay. I'll make a motion to approve as drafted. BENDER: I'll second it. MAYOR FRIEDEL: All right. Before we get too far ahead here, do we have any other comment cards, Town Clerk? BENDER: No, Mayor. MAYOR FRIEDEL: Okay. Thank you. Let me close the public hearing. And we have a motion and a second. If there's no other, no other discussion, then we'll ask for a roll call vote, please. BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Councilmember. Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember McMahon. MCMAHON: No. BENDER: Councilmember Watts. WATTS: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Freidel. Meeting Packet Page 150 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 87 of 105 MAYOR FRIEDEL: Aye. BENDER: Mayor 7-0 [sic]. MAYOR FRIEDEL: 6-1. BENDER: Oops. Sorry. MAYOR FRIEDEL: That's okay. Thank you. We'll move on to item F, which is consideration of possible action regarding professional services agreement July 2nd, 2020 with bio-janitorial services for town-wide janitorial services. Rachael. GOODWIN: Director Weldy is going to walk us through the details of this contract. But in general, we have a high level of janitorial needs throughout all of our buildings and facilities throughout town. So this is a highly competitive contract that went through our RFP, process that is here for tonight for award. Director. WELDY: Thank you for the introduction, Mr. Mayor and Councilmembers. This is a long process here that was done internally by the town staff through the release of a request for proposals. 16 qualified vendors submitted for this, and the amount of paperwork for each of us on the committee to go through and review it and look at pricing, and what they're offering is challenging, to say the least. I will -- hats off to the rest of the committee that sat on this because they waited for me a little bit longer, because I had a lot of other things that I was working on. That said, the -- town owns and is responsible for approximately 59,000 square feet of structures that need to be properly cleaned and presentable to the people that they represent. In order to accomplish that, we hire contractors to do that work. It seems like a lot of money annually for that type of service, but if you do the math related to hiring the people and maintaining the equipment necessary, especially the carpet cleaning equipment, the cost goes up substantially. This company has been vetted. They met all of the qualifications. We have sat and discussed it internally numerous times as the contract was coming to an end, that we've used for the last five years. This is the best bet for this community. Not only does it Meeting Packet Page 151 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 88 of 105 address the daily and nightly cleaning services, it also includes carpet cleaning for the community center and town hall. And importantly, it includes porter service for our special events at the community center, or if there's a big event at a park, or a trailhead, we have the ability to address that up front. And when it reopens the following day, it's ready to go. And that is the objective here. It is a long, drawn-out, complicated review, and process, and contract. You'll note that there is a very lengthy staff report designing this process or explaining this process, and how we arrived at this tonight. With that said, I will certainly do my best to answer any questions you may have related to this agreement. WATTS: I assume that the same scope of work was in this RFP that we used previously? WELDY: Mr. Mayor, Councilmember, no. This scope of work was substantially more work from lessons learned. WATTS: Such as strip and clean vinyl, VCT type tiles, and so on. Did you just learn from your past errors or oversights and then manage this RFP accordingly? WELDY: I would hesitate to say errors, but oversight? Yes. And demand? Yes. And porter services for special events? Definitely. We certainly did not make accommodations for that in the last agreement or the last two agreements over ten years. It has simply become more of a demand on what we're doing to meet the standards that we've adopted, or that each individual facility owner or manager has adopted. WATTS: Thank you. WELDY: You're welcome. MAYOR FRIEDEL: I think -- Vice Mayor was next. EARLE: I'd like to make a motion to approve. And you want to second it? SKILLICORN: Second. EARLE: Okay. MAYOR FRIEDEL: Do we have any speaker cards? BENDER: No, Mayor. Meeting Packet Page 152 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 89 of 105 MAYOR FRIEDEL: We don't. Okay. So we have a motion and a second. Roll call, please. SKILLICORN: Oh, I'm so sorry. May I ask a couple questions? MAYOR FRIEDEL: Sure. SKILLICORN: Okay. Thank you, Mr. Mayor and Director Weldy. And you know, looking over it, it seems detailed. 16 bidders. Really appears that the RFP process worked. I don't have any. I'm not skeptical. And frankly, for the breadth of work, the dollar amount doesn't seem wholly inappropriate. I am curious though, is there policies or are there certain -- you know, it sounds like there's a lot of restrooms, right? Are there certain things that because the town allows more of it, or the restrooms are open longer hours or certain parks that are worse than others? So is there is there a certain -- either activities or locations where it's driving more of the work? WELDY: Mr. Mayor, Councilmember. So primarily, the community center is one of the biggest customers that we have. And that's because of the nature. It's intended nature is to be a welcoming center for all ages. And there are an uncountable number of programs, and they are well attended. And the second one after that is special events. The town sponsors special events, and those special events generate an incredible amount of debris and require cleaning the restroom facilities at Fountain Park or any one of the trailheads or the parks. If you walk in there and there is a problem, I would be hard pressed to believe it's not already on the list to be addressed, or it was simply overlooked, and they're working on it very shortly. I would argue that I would put our facilities up against any facility in this valley in regards to cleanliness and the quality that we're expected. SKILLICORN: And Mr. Mayor, directly, I don't think anyone was saying that it's not clean or anything like that. I'm actually surprised that the community center is the biggest driver. I would have thought some of the parks or someplace very active, you know, outside would it be more of the, you know, the -- -- guilty party, basically. But and I just, Meeting Packet Page 153 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 90 of 105 you know, I'm just kind of curious because the staff can, you know, if there's certain areas that are a problem or certain times of day that are problem, you know, there are things we can do to adjust that, but I don't think this is inappropriate. It looks like it's been very thorough. I mean, even mentions not having slave labor for the Uyghurs. I mean, that's --pretty thorough. So I'm happy to approve it. It's in there. There's a -- China policy in here. MAYOR FRIEDEL: So we have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Watts. WATTS: Yes. BENDER: Councilmember Larrabee. LARRABEE: Aye. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Vice Mayor Earle. EARLE: Aye. BENDER: And Mayor Friedel. MAYOR FRIEDEL: Aye. UNIDENTIFIED SPEAKER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. And I think Justin's going to stay here for this one, too. GOODWIN: Uh-huh. EARLE: Where's he going? GOODWIN: I think he has to get his correct paperwork. MAYOR FRIEDEL: All right. Item G is consideration of possible action regarding the purchase of a Ditch Witch, a vacuum excavator from the Charles Machine Works. Meeting Packet Page 154 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 91 of 105 Town Manager. GOODWIN: That is correct. Justin wants to buy a Ditch Witch. Have you read the staff report? And he'll probably cover this. We do have a smaller unit of the style that is just not sufficient. So staff is looking to upgrade for better -- use in the town. Justin, would you like to walk us through that? WELDY: Yes. Thank you again for the introduction and the opportunity. I've stood in front of this elected body at this location and others, and explained that in Public Works and all the divisions in Public Works, we do not have any wants. Our policy is to address needs. We need to be more efficient with our -- what is in the professional industry referred to as a soft dig. So this is not a mechanical backhoe or trenching device. It is rather a 600- gallon trailer mounted vacuum cleaner with a four inch hose on it. This piece of equipment is primarily used to excavate the areas for signs. We have in excess of 8000 signs in this community. Some of them get knocked down. Some of them are outdated and need to be replaced. The other use is for cleaning out the small areas of drainage. We clean -- go in and clean out that sediment. This is where typically you cannot get mechanical equipment. It's equipped with a high pressure washer and we have the option to also use compressed air. So the high pressure water essentially loosens the material up and allows it to be vacuumed. In areas where we're going to be working around electricity, we then oftentimes switch to the high pressure air. It's the same function, but it eliminates the water. The town manager spoke earlier that almost eight years ago we purchased a relatively small one of these. It holds about 100 gallons, and we've certainly made it work. But with the increased workload in parks and the additional stuff that the street department is doing, the capacity is simply too small. A good example, we did an audit of our water meters and our backflow preventers, and we use this device to go and clean all of that material out. To clean out 15 or 20 of those requires two or three trips back to what we refer to as the bus barn. This is an Meeting Packet Page 155 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 92 of 105 area where we place that material, allow it to dry, and then we utilize it at a later date for other things. If the Parks department is using it to excavate any of their irrigation or any of their sprinkler heads, they also have to stop what they're doing and traverse the park, get back out regardless of the location. Go and dump in. All of this takes a little bit of time and is not as efficient as we would like to see. The intent, with the Council's approval to purchase this tonight, for which we have funding in the Public Works and Street Department, is Public Works would primarily use this one, and the smaller one, which is self-contained and very efficient, would then be primarily used by the Parks Department. So what we're asking for is the authority to spend money on something that we need to be more efficient at what we do. With that, I'll be happy to answer any questions that I can. SKILLICORN: Thank you, Mr. Mayor and Director Weldy. In current situations, do we just use the little one or do we rent a bigger one? WELDY: Mayor, Councilmember. We have not been able to find one for rent. The nature of this type of work, the filters and stuff, require a little bit of time and effort to clean, and they don't really rent them out unless you're going to do it for a month or so. SKILLICORN: Okay. And I distinctly, I thought, EPCOR -- I think they use a service. Like I swear the guys that came out were not EPCOR employees that were using it, but they're -- I mean, this is going to last a long time. The amortized cost is very low. I don't see a reason to -- complain about it, so I'll make a motion to approve. EARLE: Second. MAYOR FRIEDEL: Councilman Watts. WATTS: Justin, do we have a -- service technician that we service all this? It seems like we're acquiring more and more equipment. Do we have technicians that are certified to maintain this? Do we have to go back to the manufacturer for maintenance? WELDY: Mr. Mayor, Councilmember, the general maintenance of changing filters and cleaning it, oil, those types of things we'll do in-house. But anything after that will go back to the manufacturer's representative. Meeting Packet Page 156 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 93 of 105 WATTS: Is it prudent to start thinking about having a technician that can work on all of the different equipment that we're acquiring, and then get them certified so that they can do the work instead of going back to third-party? WELDY: Councilmember, we have had that discussion internally. We lost our -- I didn't say we lost -- our fleet mechanic retired after 20 years, that took care of the fleet in open space and everything else. It's kind of challenging to fill that position and we're certainly still having those internal discussions. But for right now, we have several people that are capable of doing a percentage of the work, and the balance of it goes off to the manufacturer's representative. WATTS: Thank you. WELDY: You're welcome. KALIVIANAKIS: So we had a motion. Did we get a second? We did. Okay. Can we get a roll call, please? BENDER: Just for the record, we have no speakers. Councilmember Larrabee. LARRABEE: Aye. BENDER: Councilmember McMahon. MCMAHON: Aye. BENDER: Councilmember Skillicorn. SKILLICORN: Yes. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Aye. BENDER: Councilmember Watts. WATTS: Aye. BENDER: Vice Mayor Earle. BENDER: Aye. MAYOR FRIEDEL: And Mayor Friedel. MAYOR FRIEDEL: Aye. Meeting Packet Page 157 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 94 of 105 BENDER: Mayor, seven-zero. MAYOR FRIEDEL: Thank you. Item H is consideration and possible action for the Arizona Cities and Towns weekly legislative bulletin. Does anybody have anything? Go ahead. SKILLICORN: Did I hit the wrong? Sorry. Thank you, Mr. Mayor. I mean, well, it sounds like the legislature passed the budget. I haven't heard that the government -- governor has signed it. But I believe they -- oh she did. They signed it today. So they have to do it through the special session to come back. It sounds like there is some exciting things that are passed. It was a really nice kind of last minute gift on Friday that a lot of things passed and sounds like the governor signed a bunch of things, which is new. So good. Moving forward, we --don't have to renew our taxes. Yay. KALIVIANAKIS: Seeing nothing else, we'll move on to the call to the public. Do we have any speaker cards, Town Clerk? UNIDENTIFIED SPEAKER: Yes, Mayor. We do. We have eight; Tiana Torian, followed by Patti Torian, followed by Linda Sommo, followed by Shelby Blecher. T. Torian: Hello. Thank you for the opportunity to speak. My name is Tiana Torian Wood. I've resided here for over 30 years. With an election approaching, many residents are considering what our town needs most. For many, the answer is simple, friendliness. That's what's missing from Fountain Hills these days. As a town that depends on tourism, friendliness is our bread and butter. Friendliness is economic success. Partisan politics are the antithesis of friendliness and have no place in our local government. Issues, such as naming civic spaces over controversial public figures, banning DEI initiatives, making English our official town language, and other overtly partisan items do not communicate friendliness. They do not communicate that this town is for everyone, and they do not improve our lives as residents. And the problem extends beyond policy. When the press table is removed, when opportunities for public comment are Meeting Packet Page 158 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 95 of 105 restricted, and when disagreement is treated with contempt rather than respect, a message is sent. Some voices matter more than others. That to be heard, a citizen must first agree. That is not the kind of local government our community deserves. Our elected officials, whoever they are, should listen to all residents and address the issues that matter most to this town, rather than focusing on partisan politics and smear campaigns against their opponents. As a town, we could argue forever about who is to blame for this divisive environment. But for me, this upcoming election isn't about who started it. It's about who's willing to stop it. Thank you for your time. MAYOR FRIEDEL: Next speaker. P. TORIAN: Thank you. Good evening. My name is Patty Torian and I've lived here since 1985. Okay. So with elections coming up, I would like to just express some concerns that I have as a resident, of things -- changes that I've seen in this town that really concern me. Over the last couple of years, I believe that many in this Council have succeeded in turning what used to be a government focused on town business into a partisan, divisive entity that has changed the spirit of our town. Councilmembers who swore to govern the town in an impartial manner have instead injected their own political and religious ideology into governance. Cases in point, they strong-armed the community center into allowing a Republican Party Christmas tree, despite the fact it's widely understood that Christmas is a nonpolitical celebration. They attempted to pass a motion to rename the community center to honor a polarizing figure who has no connection to our town. They ended our contract and years of partnership with Republic Waste for a company that has never that has never served a community of more than 5500. Their research for Mr. Skillicorn included noting that unlike Republic, Universal Waste has no DEI or human rights compliance policies which do not apparently align, according to him, with our town values, which I find kind of surprising. Impartial research should have focused solely on service provided, reliability, and Meeting Packet Page 159 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 96 of 105 financial soundness. We can only hope that the reduction of fees does not come with poor service and unreliability. Regardless of strong community pushback, they are talking about moving the Museum of Time out of its space. A cultural treasure of our community, located ideally along the Dark Skies Discovery Center and the library. They changed the campaign sign placement ordinance that limited areas where these signs could be displayed to a free-for-all of signs littering our streets and allowing bigoted, hateful signage. Once again, guided by their political ideology, not by what the residents of this town want representing us as people drive through our community. They have moved the CTP to the end of meetings. Thank you for the four hours that we all had to endure. This really shows where you put the importance of listening to us, just listening to our thoughts and our concerns. You made us sit through this. Thank you for that. Okay? They have removed the media desk because our local paper is not always in favor of their policies. I hope this election, we will be electing a Council that returns to nonpartisan management of our town, focusing on things that benefit all residents and keep the toxic, divisive ideology that we see all around on the internet and people associated with Councilmembers out of its governments. Thank you. MAYOR FRIEDEL: Shelby? BLECHER: I didn't see Linda here. Good evening, Mr. Mayor. Town Council. Shelby Blecher, Fountain Hills resident. A few people in town seem to have a problem with orange signs. They claim they are vulgar, uncivil, and inappropriate to display on the streets of our wonderful town. Coming from the battles of LA politics, I say that it's absolutely necessary to shock people into reading and thinking about the message on these orange signs. Frankly, I disagree with all the detractors and challenge them to put forth an explanation for their opinions, to go along with their one-liners that they toss out on Facebook. But let's go a step further here. The crowd screaming for civility, says nothing about the $18,327 that a Councilmember cost the town. Instead, instantly deflecting, to quote, Meeting Packet Page 160 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 97 of 105 how much did Gerry's personal lawsuit cost us, unquote. More false narratives in the same post. Quote, Gerry used the actual town logo in a social media ad campaign, unquote. The post says nothing about how the candidates received a cease and desist order from the Town Attorney, and only one refused to listen, costing the town $18,327. It wasn't Mayor Friedel. He conformed to the order. More false narratives from a -- prolific Facebook poster. Quote, isn't it ironic that one of the main reasons we may not have to impose new taxes in the arrival of Sprouts, with new housing for residents, something Gerry and his clan voted against, unquote. For those uninformed, there was never a vote on bringing Sprouts to town. The vote was on rezoning a parcel almost a half a mile away to allow 300-plus, mostly one-bedroom apartments to be built. Misleading comment? I think it was. The Councilmember herself goes to Facebook to requote what someone else said. Avoiding the problem of making the direct quote herself. Quote, the credit for Sprouts belongs to economic development director Amanda Jacobs, Sandra Development and the four Councilmembers who had the vision to approve rezoning, unquote. Rezoning what? Again, it wasn't for Sprouts. She continues to requote Jacobs, quote, attracting Sprouts Farmers market would not have been possible without the Fountain Hills Town Council approving zoning changes in 2004, unquote. Personally, I feel this is more than just a bit twisted since there's no formal statement by Sprouts affirming this. Could it be possible that Sprouts, who has a store in Scottsdale in any second street, is simply overburdened at that location, and needed a second location and chose Fountain Hills, not because of the 300-plus one bedroom apartments, but because we have a higher median income shopper and this location was their best choice? The more you look into this, the clearer the manipulation becomes by the Councilmember, who just cost the town $18,327. Thank you. BENDER: The last four speakers are Leah Phillipe and Jonathan Phillipe, followed by Meeting Packet Page 161 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 98 of 105 Beth Culp and Jerry Butler. L. PHILLIPE: Good evening. KALIVIANAKIS: I've got a point of order. The clock started when she was walking up here. I think we should give her a full three minutes. BENDER: I'm so sorry. MAYOR FRIEDEL: Go ahead. KALIVIANAKIS: Are you going to address my point of order? MAYOR FRIEDEL: It's not a valid point of order. L. Phillipe: Good evening. My name is Leah Phillipe, and I recently turned 18. This year I will be voting for the first time. When I was 11 years old, I started carrying around a pocket Constitution because I wanted to understand how our country works, why every voice matters. I have always loved learning about government, history, and the people who dared to stand up for what they believed in. I am also a person with a disability. Growing up has taught me that inclusion is more about -- it's more about -- sorry -- it's about more than ramps or accommodations. It is about whether people feel seen, respected, and welcomed in their own community. Over the past few years, I have watched my little brother stand at this very podium and speak with remarkable courage. He came here to share his ideas because he believed his voice mattered. Watching adults attack his character rather than respond to his ideas was heartbreaking. It reminded me that young people pay attention, not just to what adults say, but to how they treat others. I have learned that a community's character is not measured when we -- when everyone agrees, it is measured by how we treat one another when we disagree. As I prepare to cast my first vote, my hope is simple, that every young person in Fountain Hills is safe to participate, ask questions, share their views without fear of personal attacks. I hope that my -- that the example my generation inherits is one of respect, kindness, and the belief that every person deserves to be heard. Thank you very much. Thank you. [CROSS-TALK] Meeting Packet Page 162 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 99 of 105 MAYOR FRIEDEL: That's enough. J. PHILLIPE: Good Evening, Mayor and Council. My name is Jonathan David Philippe, and it's been a little while since I've spoken before you. I've been busy finishing my sixth straight honor roll semester and completing an early entry engineering college course. School has been my priority, and I'm proud of what I've accomplished. I also stepped back from speaking for a while because something happened that I wasn't prepared for. Instead of simply disagreeing with my ideas, some adults publicly attacked my character, my family, and questioned my abilities without ever even speaking to me. As a 13-year old, that was difficult to understand. Tonight, I'm not here to debate publicly. I'm here to ask something much simpler. Please remember that every meeting and political action teaches the next generation what leadership looks like. On the July 4th, I'll turn 14. In just four years, I'll be able to vote. My older sister just turned 18, and she'll be -- and she'll be voting just for the first time. Watching our community has shown both of us that participating in democracy matters. Growing up in Fountain Hills, I learned that this is a community where character counts. We were taught that respect isn't something we show only when we agree with -- only with what we agree with. It's something we show everyone and everything. The Lubavitcher Rebbe taught in a time of increasing darkness, we must increase the light. Tonight I'm asking you to be that light. Not because we all have to agree, but because every meeting teaches my generation what leadership looks like. Please -- let what we learn from you be respect, character, and courage. Thank you for your time. CULP: I just have to say that I think that was the most remarkable series of disrespectful events I've ever seen in a town Council meeting. You know, all these people are waiting here to speak. Councilmember Skillicorn is allowed to speak for 15 minutes about his adventures on e-bikes while we wait. Meanwhile, Councilmember Kalivianakis, Councilmember McMahon, if they ever speak more than two minutes on any topic, they get the gavel. On top of that, we have two Meeting Packet Page 163 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 100 of 105 young people coming up here, and I watched Mayor as you started the clock as they approached. 30 seconds had elapsed by the time one woman -- the young woman, got up here. 20 seconds elapsed by the time the young man got up there. When -- Councilmember Kalivianakis called a point of order, you shut her down with a gavel. And the second time you shut her down with the sharpest gavel I've heard. And I've heard some sharp ones in this dais -- from this dais. I want to talk now about the fact that it's apparent that the majority on this town Council does not care what 40 percent of the people in this town think about, the People that aren't interested in culture wars, the People that want to know answers about why Republic Services was terminated. And when Councilmember Kalivianakis tried to go into that, she was shut down just like she shut down tonight. This is wrong. We see what's happening. We see that whenever we speak, you take time from us. You find excuses to shut us down. Shelby Blecher stands up there and personally attacks Councilmember Kalivianakis, when that is not allowed by the rules of procedure that this town Council enacted. But it's okay when they do it. But if I do it, if I criticize Jennifer Wright, I'll get gaveled. I will get gaveled. You have to start equally enforcing the rules, Mayor. We see you. We see the lack of transparency. We see the 25 executive sessions. When you said you didn't foresee any, when Councilmember Watts said he was going to bring them, bring some kind of resolution forward that would limit executive sessions to personnel matters. This has got to change. It can't go on. Since you've had five on the majority, every time there is a contested vote, the same pattern is followed. Councilmember Skillicorn invokes the call of the question. He suspends the rules. That should be an extraordinary measure. You allow him to do it and you all support him in doing that to shut down discussion. You've done it on every single controversial point for one reason and one reason only. So we can't hear from the people who represent us and we're tired of it. MAYOR FRIEDEL: Now, I will respond to you, since you did call me out personally. Most Meeting Packet Page 164 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 101 of 105 of these e-sessions that we're dealing with are because of some of the nonsense that you created personally. CULP: May I respond? MAYOR FRIEDEL: No, you may not. And secondly, -- the interruptions by Councilwoman Kalivianakis are not going to be tolerated. If that lady who was disabled needed more time, I was prepared to give her the time. She does not need to interrupt the meeting to do that. Next speaker please. BUTLER: I see five seconds have already elapsed since I tried to walk up here. I'm 86 years old. I would hope you'd give me a little bit more time. MAYOR FRIEDEL: We'll give you five seconds. We'll give you ten if you need it. BUTLER: Thank you. My name is Jerry Butler. I've not been here in a long time. I'm Fountain Hills property owner. 27-year full time resident. For the last 25 years, I've been a community volunteer doing many things to advance this community. My background is civil engineering and as you might assume, my most recent volunteer commitment has been for the Citizens Advisory Streets Committee. That was made up of 12 nonpartisan residents with a combined experience of 250 years addressing the needs of our streets. Tonight, I'm here to talk about streets on two fronts, one to express my disappointment for canceling the street workshop that was scheduled for earlier today, and to commend our town staff for the work they did in preparing for that workshop. Now, regarding the workshop itself and the presentation that was , or available, as a member of the Streets Committee, I spent 20 months exploring all aspects of the network and based on my engineering background, I want everyone here and watching to know that our town staff did an amazing job preparing for the workshop. The information that was ready to be presented was very thorough and to the staff, thank you. Regarding the second point, my disappointment. After three years of silence since the Streets Committee filed its report, I was looking forward to today's workshop and must Meeting Packet Page 165 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 102 of 105 ask why was it canceled and when will it be rescheduled? The reason for these two questions is our streets, which happen to be the community's largest asset, are deteriorating at a rapid rate. When the committee filed its report, I want to quote, it stated without significant additional revenues, street -- the street network maintenance levels cannot be achieved, which means streets will continue to deteriorate, creating failing conditions from which the town cannot possibly recover. Unfortunately, that statement is correct. Even though many millions of dollars have been injected into the street network in the last three years, it's not enough. Case in point is, three years ago, our backlog for poor and very poor streets represented 5.4 percent of the network. Today, it's nearly double, at 10.4 percent. Four years ago, Mr. Skillicorn, you had a Roads First program that promised to find needed streets -- needed street funds from the existing revenues. How's that gone? Are you proud of what's been accomplished? To Mayor Friedel, based on your financial background, where do you foresee finding more revenues to fix our streets? In closing, why was the workshop canceled and when will it be rescheduled? Time is of the essence. Our streets continue to deteriorate daily. They are nonpartisan. Thank you. MAYOR FRIEDEL: I'll answer your question. I think we're going to try and bring -- that back soon. Yeah. Yeah. It's not an agenda item, but we will bring it back. Vice Mayor, did you have something? EARLE: Are we ready to ask for something to be future agenda items? Is that next? MAYOR FRIEDEL: Is that the last speaker? BENDER: Yes. MAYOR FRIEDEL: Okay. Thank you. MAYOR FRIEDEL: Next is comments for the town manager. SKILLICORN: Because he brought it up. EARLE: I'd like to do it now. Meeting Packet Page 166 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 103 of 105 MAYOR FRIEDEL: Do we have any comments for the town manager? EARLE: I do. MAYOR FRIEDEL: You do? Okay. EARLE: I did have one prepared already, so I did. I would like to request that the street repair research work session be rescheduled as soon as possible. And -- because staff has been preparing for this session and was anticipating the summer to continue that work. So I'd like to get to it and look for it forward to what -- the work you've done. Thank you. MAYOR FRIEDEL: Anything else for the Town Manager? We'll move on to future agenda items. Anybody have anything? Can I get a motion to adjourn? Oh. Go ahead. KALIVIANAKIS: Thank you. Yes. As far as a future agenda item is concerned, I share Mr. Butler's concern. Without any explanation given to me whatsoever, the workshop was pulled today. When we're talking about fixing the roads, we better talk about how we're going to fix the roads. So I would like to call tonight on the first Town Council meeting after the break, to either put the workshop back in order on the first day, or to make this an agenda item for discussion only, so we can talk about how to fix the roads in a practical sense. Can I get a second? EARLE: Second, second. KALIVIANAKIS: Can I get a third? We're just talking about the roads. EARLE: You already have it. LARRABEE: Point of information. Wasn't that already requested? MAYOR FRIEDEL: Yes it was. It was already requested. LARRABEE: Okay. MAYOR FRIEDEL: Can I get a motion? KALIVIANAKIS: So moved. MAYOR FRIEDEL: Second? Meeting Packet Page 167 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 104 of 105 EARLE: Second. MAYOR FRIEDEL: All in favor? ALL: Aye. Meeting Packet Page 168 of 296 TOWN OF FOUNTAIN HILLS JUNE 16, 2026 COUNCIL MEETING Page 105 of 105 Having no further business, Mayor Gerry M. Friedel adjourned the Regular Session of the Fountain Hills Town Council held on June 16, 2026, at 9:35 p.m. APPROVED: ____________________________________ GERRY FREIDEL, MAYOR ATTEST: ___________________________________ BEVELYN J. BENDER, TOWN CLERK CERTIFICATION I HEREBY CERTIFY THAT THE FOREGOING MINUTES ARE A TRUE AND CORRECT COPY OF THE MINUTES OF THE REGULAR TOWN COUNCIL MEETING OF THE TOWN COUNCIL, TOWN OF FOUNTAIN HILLS, ARIZONA HELD ON JUNE 16, 2026. I FURTHER CERTIFY THAT THE MEETING WAS DULY CALLED AND HELD AND THAT A QUORUM WAS PRESENT. _______________________________ BEVELYN J. BENDER, TOWN CLERK Meeting Packet Page 169 of 296 TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL June 30, 2026 A Special Meeting of the Fountain Hills Town Council was convened at 5:30 p.m. Members Present: Mayor Gerry M. Friedel: Vice Mayor Gayle Earle; Councilmember Rick Watts; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Allen Skillicorn Councilmember Hannah Larrabee attended by telephone conference call. Staff Present: Deputy Town Manager David Trimble; Town Attorney Jennifer J. Wright; Deputy Town Clerk Angela Padgett-Espiritu Meeting Packet Page 170 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 1 of 22 Post-Production File Town of Fountain Hills Town Council Special Meeting Minutes June 30, 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 171 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 2 of 22 MAYOR FRIEDEL: I'd like to call this meeting to order. Would you please rise for the Pledge of Allegiance? [Pledge of Allegiance] MAYOR FRIEDEL: I'm going to add something to the agenda today. I'm going to do a special moment of silence. One of our business owners passed away today, Jill Keefe from Good Living Greens passed away today after some health issues. So feel -- if you choose to remain standing, we'll take a moment of silence in her honor. Thank you. Town clerk, can I get a roll call, please? ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Present. ESPIRITU: Vice Mayor Earle? EARLE: Present. ESPIRITU: Council Member Skillicorn? SKILLICORN: Here. ESPIRITU: Council Member Kalivianakis? KALIVIANAKIS: Here. ESPIRITU: Council Member Watts? WATTS: Present. ESPIRITU: Council Member Larrabee? LARRABEE: Here. ESPIRITU: Council Member McMahon? MCMAHON: Here. ESPIRITU: We have a quorum. MAYOR FRIEDEL: Thank you. We'll move on to our consent agenda. Can I get a motion? MCMAHON: Motion to approve consent agenda as is. MAYOR FRIEDEL: Thank you. UNIDENTIFIED SPEAKER: Second. Meeting Packet Page 172 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 3 of 22 MAYOR FRIEDEL: We have a motion and a second. Can I get a roll call, please, town clerk? ESPIRITU: Council Member Larrabee? LARRABEE: Aye. ESPIRITU: Council Member McMahon. MCMAHON: Aye. ESPIRITU: Council Member Watts? WATTS: Aye. Council Member Skillicorn? SKILLICORN: Yes. S3: Council Member Kalivianakis? KALIVIANAKIS: Aye. ESPIRITU: Vice Mayor Earle? EARLE: Aye. ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Aye. ESPIRITU: Motion passes seven to zero. MAYOR FRIEDEL: Thank you. We'll move on to our special session regular agenda, and I'm going to call on our Deputy Town Manager, Dave Trimble, with information relating to a resolution for a lease on the museum. Dave? TRIMBLE: Yep. So we'll have Amanda Jacobs, our Economic Development Director, come on up and walk us through this. JACOBS: Good evening, Mr. Mayor, members of council. Tonight we're here to talk about a proposed lease between the town and the museum. Before I get started, as we all know, unfortunately, there has been a lot of misinformation surrounding this, and I want to remind everyone that a lease is a legal document. It's a business document and is not political. All right. Background. So currently we've got a 25-year lease between the town and the museum. Rent has been a dollar a month. In total, the town's collected $25. Meeting Packet Page 173 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 4 of 22 Initially, the town provided $210,000. And then the town currently also pays for maintenance, utilities, and janitorial services. , As we began to look at renewing the lease, we had to look at town requirements. And then there's two things: We need to evaluate for compliance with state law and highest and best use of the town facility. And then additionally, the Arizona gift clause. So there's two common questions, and one everybody's in agreement with; is there a clear purpose? Yes. The museum provides a clear purpose. But the gift clause in the Arizona Constitution does not say "or" it says "and". Is the town receiving a fair market value? This got brought up back in November of 2023 through a council budget workshop. And I do want to thank Council Member Kalivianakis because she brought up back then that the town needed to err in caution because of the gift clause. So I appreciate her wisdom. And our then town attorney, Aaron Arneson (ph.), agreed. We didn't have all the information that, again, agreed with the clear public purpose, but we needed to understand the fair market value. So you'll see several slides hereafter. You'll see we started this way back in September. I'm not going to go through every milestone, but back in November, the town manager and I did meet with the former executive director to just let her know that we needed to start getting together. We needed to start collecting information on financials, visitor data. As again, we look to analyze the lease. At that time, it was requested if the town could provide additional financial support, and we did say we could not do that in addition to what we were already providing. So through November all the way to January, we were collecting data based on the data we received, and then we're going to skip over -- we had a council executive session. You'll see that there's been several. So again, we do not negotiate contracts in public. It is an executive session. I will provide a friendly reminder that although we're showing the dates, that again, we cannot divulge what has happened in there. But again, in December, the staff received direction to move forward with not renewing the lease based off of the data. That was Meeting Packet Page 174 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 5 of 22 shared with the former now board president and executive director by the town manager and me on January 26th. Immediately following on February 3rd, I had a meeting with the River of Time Museum president, as well as the director -- former director -- and they provided a letter which was shared to council where they requested a one-year lease, and a short-term funding plan, which we asked what does that look like for you? Tell me more, which was not given. We're going to fast-forward again. So on February 24th, we had a public council retreat seeking council direction on how to move forward. You can see in the February 24th council meetings, it's about page 128, if you don't want to do all the work, but Mayor Friedel, Council Member Kalivianakis, and Council Member McMahon were the three that said to pursue with renewing a lease for one year. We only had six elected officials, not the full body, and unfortunately it was very split. And then towards the end, it was Council Member Watts who recommended looking towards a business plan. And so as we concluded that retreat -- so again, it was looking for some consensus, direction, we can't take action at a council retreat, we then concluded that and said because it was very mixed from the body -- so again, the council body, not just one, can make a decision, that staff would get back to the body and then also talk with the museum. So four business days later -- so you'll see March 3rd -- I had a brief meeting with our town manager, Town Manager Goodwin, and said that I would be meeting -- so March 3rd, if you see attorney economic development director, but to meet with Attorney Wright because I wanted to propose an Option 3. And so again, with negotiations, negotiation doesn't happen at a council level. It is operational. Attorney Wright agreed with what I wanted to do, and about an hour or two later, I presented Option 3 to the former board president and the current executive director. Meeting Packet Page 175 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 6 of 22 That was on March 3rd. While they did not receive the lease that is before you, and that was included in the attachment, this was, essentially, what was proposed on March 3rd. After that, we did receive a business plan, but there was never a response to the March 3rd Option 3. So helping to determine the public benefit and paying a thousand a month. So what has happened all of a sudden? So the new director reached out towards the end of May and wanted to meet. Unfortunately, I was out of town visiting my nephew for his graduation. And then subsequently the executive director was out of town. And so we met on June 11th. The director did not let me know what we were meeting about; one could assume it was the lease, but we blocked an hour. And so Jane and I actually spent three-and-a-half hours together, coming from a place of understanding of what the museum needed, what the town needed, but negotiating and understanding that both sides may not get exactly what we wanted, but to operate in good faith. Following that three-and-a-half hour meeting, I then had a meeting with our town clerk and town manager. And so internally, we all knew that today there was going to be a special meeting. That was not made public, but it was on the council agenda. And so for the public benefit, originally, this was supposed to be a Zoom meeting at 1 p.m. for the license for Quik Burrito. So again, it is our job as staff to be professional, to be forward-thinking, since this was already on the calendar. It was then looking forward and asking one, the town manager and the town attorney if we could do this, which is part of the Council Rules Of Procedures. They have the authority to add items to the agenda in case the public did not know that. So you'll see, typically, this would happen in 30 or 60 days. But on Sunday, June 14th, the town finally received a response to our letter dated back from April 28th, wanting again to move forward. And again, based off of Jane's professionalism, her already instituting free admission days and demonstrating the public benefit, myself as well as Attorney Wright worked around the clock with Jane to, essentially, bring you to a lease. Meeting Packet Page 176 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 7 of 22 So some considerations -- again, making sure that we're complying with the law -- is there's a current lease in place that expires August 15th. So someone had indicated that the lease had lapsed. That is not true. It has not. August 15th is the end of it. And so again, we're wanting to make sure it doesn't lapse. And so the lease term will be ten- and-a-half months. It'll be 1,000 a month. But because it's starting mid-October and September we'll collect $1,500. The public benefit is free admission days, free programing, and completion of a third- party economic impact analysis. So for the public, the town has a partnership with the Greater Phoenix Economic Council, that is the regional economic development organization. And so they assist with this. So this is at no cost to the museum or any additional cost to the town. It's approximately a two-page document that I will provide to the director. She will input all of it. I will receive it. It is then forwarded to GPEC, their third-party and their modeling, and we'll get back what that analysis is. And then there's, of course, reporting requirements. So both parties acknowledging that we need to have more meetings, understand visitor data, and then seeing if the programing is growing. On June 24th, and then as part of your package, you will see that the museum board of directors approved the lease as drafted. It has Jane's signature. And so staff is respectfully requesting that the council approve this as written, and that no changes are made so we don't have to go to the drawing board, and then to give the stability that the museum needs to continue growing their programs. With that, Mr. Mayor, happy to answer any questions. SKILLICORN: Thank you, Mr. Mayor and Director Jacobs. How many members does the museum have? JACOBS: Mr. Mayor, Council Member Skillicorn, I will have to defer that to the museum director. I don't know, off the top of my head. SKILLICORN: Okay. Is there a kind of a guess? Is it a dozen? Is it 100? Is it 1,000? JACOBS: We will get back to you. It's not -- UNIDENTIFIED SPEAKER: It's about 600. Meeting Packet Page 177 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 8 of 22 JACOBS: 600. SKILLICORN: That's a good amount. And Mr. Mayor, Director Jacobs, is there anyone famous that we might know that's a member? JACOBS: How do we define famous, Council Member Skillicorn? That I don't -- that I don't know. SKILLICORN: Nick Wenchell (ph.), maybe? JACOBS: That's museum data. SKILLICORN: Okay. And then Mr. Mayor, Director Jacobs, there was some talk about hours being expanded. You know, what are the current hours and what were they before? JACOBS: So not an expansion, per se, but last summer, the museum did decide to be closed. And so this year, they've made the decision to remain open; however, at reduced hours. So it's three hours. And then typically, the regular hours are from 10 to 4, and so that will resume in September. SKILLICORN: And Mr. Mayor, Director Jacobs, three hours a day or -- and then the regular hours it was 10 to 4; so six hours? JACOBS: That is correct. SKILLICORN: And it's -- JACOBS: And it's not open -- SKILLICORN: -- seven days a week or -- JACOBS: It is not seven days a week. UNIDENTIFIED SPEAKER: I'm looking to Jane. PRZESLICA: (Indiscernible). JACOBS: Okay. We will get -- yeah. So Jane, if you want you can come up if you feel comfortable or -- yeah. So we'll get back to you, Council Member. SKILLICORN: Okay. MAYOR FRIEDEL: Anybody else have any questions? All right. Do we have any comment cards? ESPIRITU: Yes we do, Mayor. The town received one online comment with the position Meeting Packet Page 178 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 9 of 22 of four, and then we have three requests to speak this evening. So the first one up will be Crystal Cavanaugh (ph.), followed by Larry Myers (ph.), followed by Shelby Blecker (ph.). CAVANAUGH: Good evening. Crystal Cavanaugh, Fountain Hills resident. I'll be very brief. I am for this type of a plan. I think when the community first heard that the lease was coming to an end, but when we learned some of the details that it was a 25-year lease, and yet there had been no plan to sustain it, and they just, what, thought the town was going to cover it forever like that? So I don't think anyone was ever opposed to keeping the museum going. I do know comments I have heard, you know, they were just concerned about what's the process? What responsibility is the museum willing to do? So I think this sounds really reasonable, and I don't have a problem with the town continuing to cover those costs as long as the museum will take some responsibility and raising their own money, too. Thank you. MYERS: Mayor, Council, Larry Myers. I just want to remind everybody, if you pay Arizona taxes you can get a tax credit for up to, I think it's $1,375. And even though Arizona only charges five percent of your federal, when you -- if you're collecting any dividends, those get taxed. So I've never escaped a tax bill from the State of Arizona, and you can use that tax credit for any number of things. I've used it for kids going to private schools and whatever. And I think you want to save the museum, write a check, because there's got to be 50 people in this town that are paying the State of Arizona $1,000, and it comes right off your tax bill. So that's all I wanted to say. I wanted to remind everybody that that option is there. And I hope our new directors and executive director sort of put a program together and encourage people to do that, because it's really easy. Thanks. BLECKER: Good evening, Mr. Mayor, Town Council. Shelby Blecker, Fountain Hills resident. I too am in favor of this extension of the lease. I went to the museum over the weekend. I found it to be very informative and just a lot of fun to walk through there Meeting Packet Page 179 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 10 of 22 and learn more about our time. But a recent letter regarding the River of Time Museum in the Times, it spins a political narrative that ignores the legal reality and the local history to suggest that you, Mayor and conservative council members are arsonists trying to run a local treasure out of town is just not unfair; it's completely false. The issue of the River of Time lease was never a lack of support by you or the conservative Council Members. It was strictly a legal hurdle created by the Arizona Constitution's gift clause, as Amanda has already said. And she already provided the facts and some other pertinent information, so I won't repeat that. But I will repeat that when the lease approached in August 26th expiration, it was town staff that exercising mandatory fiscal responsibility notified the museum that continuing the dollar-a-year lease without proper legal justification or a business plan would explicitly violate state law. The attorney, town staff ,and the council were bound by law to address this issue, not by a sudden desire to hurt the museum. Furthermore, the claim that the lease extension is a rabbit pulled out of a hat due to election year backlash rewrites the actual timeline of events, another thing that Amanda just presented tonight. So Mayor Friedel and conservative leaders, I feel, have always valued the historical and educational role of the River Time plays in the Lower Verde Valley. However, true leadership requires balancing that appreciation with an oath to uphold and protect taxpayers from constitutional violations. This special session isn't gaslighting. It's responsible governance working exactly as it should to find a legal bridge for a beloved community institution. Let's look at the actual paperwork and timelines before we let election season rhetoric distort the facts. Thank you. SKILLICORN: Thank you, Mr. Mayor. So I have read a lot online and there's a lot of misinformation out there. And unfortunately, this has become political, but this is like the least political thing I think this council is going to do and the least controversial thing Meeting Packet Page 180 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 11 of 22 this council's going to do. I suspect that this is going to pass unanimously, and it's going to be a nothing burger. And what I've seen online has been completely manufactured and fake. So I'd like to make a motion to pass this as drafted. UNIDENTIFIED SPEAKER: Second. SKILLICORN: And I'd like to make a motion to call the question. UNIDENTIFIED SPEAKER: Second. MAYOR FRIEDEL: Since Councilman Watts was already cued in, I'm going to let him speak. And then you can have your call the question. UNIDENTIFIED SPEAKER: (Indiscernible). I think when you call the question, you have to call the question. That's a misuse of call in the question, as usual. MAYOR FRIEDEL: All right. Then, I'll make a motion that we amend the rule. UNIDENTIFIED SPEAKER: Can we have a ruling on the town attorney? MAYOR FRIEDEL: Town attorney, would you weigh in, please? WRIGHT: So we -- since the call a question has been motioned and seconded, then we need to do a roll call, vote on the call of question, and if it fails then you'd have the discussion. MAYOR FRIEDEL: Okay. Roll call, vote on the call of the question, please, town clerk? ESPIRITU: Council Member Kalivianakis? KALIVIANAKIS: Aye. ESPIRITU: Council Member Watts? WATTS: Nay. ESPIRITU: Council Member Skillicorn? SKILLICORN: Yes. ESPIRITU: Council Member McMahon? MCMAHON: Nay. ESPIRITU: Council Member Larrabee? LARRABEE: Aye. ESPIRITU: Mayor -- Vice Mayor Earle? EARLE: Nay. Meeting Packet Page 181 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 12 of 22 ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Nay. ESPIRITU: Okay. The motion is denied. MAYOR FRIEDEL: Motion's denied. Okay. Councilman Watts, go ahead please. WATTS: Thank you, Mayor. I want to take a little slightly different tact here, but I would like to formally recognize and commend town staff for their extensive efforts in bringing forward this lease agreement. In particular, I want to acknowledge our Economic Development Director, Amanda Jacobs, who I'm pretty sure kept hours. So you can probably tell me how many hours you got in this. As well as our town attorney, Jen Wright, for their diligent and mostly behind-the-scenes work. In collaboration with the River of Time Museum, their efforts have resulted in a practical, short-term solution that provides the River of Time with a responsible and mutually agreed to path moving forward. I also believe it's important to address some of the public commentary surrounding this matter. Certain criticisms have been levied without accompanying viable alternatives, and in some instances appear to disregard established legal constraints. The Arizona Supreme Court ruled in 2021, through a decision through Schires and Carlat, clearly limits the types of arrangements that we are -- that we can previously -- that we had previously utilized and that we can do today. The town is obligated to operate within those legal parameters. To be clear, the agreement is not a result of some external pressure, nor is it attributable to commentary from individuals outside the formal process. It is not a mission accomplished moment, but rather a measure and lawful step forward. This outcome reflects the sustained professional efforts of the town staff, who have been working on this issue several years with significant focus and urgency over the past 6 to 12 months to arrive at a compliant and workable solution. Thank you. MAYOR FRIEDEL: Vice Mayor? EARLE: Thank you, Mayor. I'd like to take a moment to express my sincere appreciation for our town attorney, Meeting Packet Page 182 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 13 of 22 Jennifer Wright, and our Economic Development Director, Amanda Jacobs. This has been an extraordinary, complex issue involving legal, financial, and policy considerations. They have devoted countless hours researching, analyzing, negotiating, and working towards a solution that gives the council the information needed to make thoughtful decisions. Public service is not always easy, especially when working through difficult and highly emotional issues like this one. Whether every recommendation is popular or not, I believe Jennifer and Amanda have approached this process with professionalism, integrity, and a genuine commitment to serving the residents of Fountain Hills. I want them both to know that their hard work has not gone unnoticed, and I sincerely thank them for their dedication to our t own. And Jennifer, I also want to personally thank you for your steady professionalism and sound counsel. I know this has required an enormous amount of work, and I want you to know that I truly appreciate your dedication to this town. Thank you. WRIGHT: Thank you. Appreciate it. This has been a long road, as everybody can see, by Amanda's time line, and it's unfortunate that it has turned political, but I would like to thank the staff and Amanda for staying with it, and also the museum and recognize the director for her teamwork as well. Thank you for the hard work. And also, I would like to say, given the political nature of this, that when council decides to approve and ratify a contract and other projects, it's not one person that does it. It's the full body of seven of us. So taking credit isn't appropriate, and we work as a whole body here, whether we agree or not agree and vote accordingly. So I'd like to take it out of the political arena in that regard. Thank you very much for all your hard work. MAYOR FRIEDEL: I would also like to make a statement. I would like to recognize the four bodies that really put all the work into this: Jane and her staff and her time, Amanda Jacobs, the town staff, this council. Our legal representation was probably undermined with the leaking of some information, which isn't appropriate. It turned this into a political issue, which it shouldn't be. It's really more of a common sense Meeting Packet Page 183 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 14 of 22 issue. We did not want this museum to go away. And I think, Jane, you know that. So a lot of hard work went into this. I appreciate everybody's efforts, and I hope we've learned that executive session material stays in the executive session, and it doesn't get leaked to any political party or any PAC or anything like that, because a lot of misinformation has been floating around about this. This meeting was scheduled to review a liquor license. We added the museum to this agenda specifically because we had the meeting already set. This is town business. This is how we'll conduct our town business. We will get the job done, we will get our businesses taken care of, and we'll get the museum taken care of. So I want to clear up any misconception that we added this meeting for political purposes. This meeting was already established to take care of other town business. So I just felt that people need to know the record on this. So we're all for the museum. I'm a member and now a contributor to the museum as well. So -- and I've been to the museum several times, and I've met with Jane a couple of times. So we're all for the museum. This gives us the opportunity and a new direction, new leadership. The winds of change are here for the museum and we applaud that. So with that do we have a motion on the floor for this? ESPIRITU: Yes, Mayor, we have -- MAYOR FRIEDEL: And we have a second? ESPIRITU: Yes. MAYOR FRIEDEL: Okay. Can we get a roll call vote, please.? ESPIRITU: Council Member Skillicorn? SKILLICORN: Yes. ESPIRITU: Council Member Larrabee? LARRABEE: Aye. ESPIRITU: Council Member McMahon? MCMAHON: Aye. ESPIRITU: Council Member Kalivianakis? KALIVIANAKIS: Aye. Meeting Packet Page 184 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 15 of 22 ESPIRITU: Council Member Watts? WATTS: Aye. ESPIRITU: Vice Mayor Earle? EARLE: Aye. ESPIRITU: Mayor Friedel? MAYOR FRIEDEL: Aye. ESPIRITU: Motion passes unanimous. MAYOR FRIEDEL: Thank you. Thank you, Amanda. JACOBS: Thank you. And then just real quick, Mayor. In the event this was approved -- so again, a little behind the curtain -- is we will sign a resolution, an agreement in advance. If the body had decided to make -- to deny this, it would be stamped by our clerk's office and say fail. But this is an executed agreement that has been signed by our town manager in advance, the Mayor or madam clerk and our attorney. I will be handing this over to Jane, and then we will be issuing a press release. So again, it's our duty to think a few steps ahead operationally. Thank you, Mayor and council for your kind words. MAYOR FRIEDEL: Okay. We'll move on to regular agenda item B, which is discussion and possible direction regarding staff direction to pursue possible solar energy projects. And I'm going to ask Council Member Watts to lead us off. WATTS: So a little bit of the back story. After we had the presentation by Veregy a couple of weeks ago, I was still a proponent of solar, the saving of energy, the prudent use of finances for the town. So I did a little digging and found that the normal payback is something less than ten years. The return on investment from a financial standpoint is somewhere in the area of nine percent, eight percent, something like that. So it's viable. So I went out and I talked to a couple of different contractors and I confirmed those numbers. My request to put this on the agenda today was simply to get a consensus that we go to an RFP. I don't have any skin in the game. I don't have any preferred contractors. What Meeting Packet Page 185 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 16 of 22 I'm looking at from the standpoint of how can we take advantage of the direct pay, that's the investment tax credit that the municipality can get, that we use the finances of the town to the town's benefit. We're currently getting about a four percent return. We can get significantly more than that as an ROI on the investment. We can validate the life expectancy of the equipment, factor in all the maintenance costs. So an RFP made some sense to me, because we can craft the criteria for the solar around very specific requirements. One of those would be making it plus fifty percent American made. And so many of the panels are made overseas. Germany is a big manufacturer. China. Japan. But America has also got a big handle on the solar panels. So looking at what we can do with our finances, looking at what we can do for the long term, looking at the life expectancy of the solar panels and the degradation of output, it made some sense. So I'm asking for support to see if we can't do an RFP. Now, the RFP is simply that. It's a request from contractors who specialize in this, who can assure performances, who can assure the investment tax credit, all of the different things. And we have to stipulate that we want a payback that is, let's call it near ten years or less. So that's what I'm looking for, and I'm hoping I can get some support from the council. MAYOR FRIEDEL: I would be for us investigating that. Anybody else have a thought on that? MCMAHON: Yes I do. This is not a reconsideration of the prior project. That project has gone away and so has over a million dollars in savings. From what's been -- I spoke with a couple of people about this, the staff, and understand it better that it's going to go out for bid. And hopefully, we will be able to apply for the federal grant and get a portion of that. We won't get all of it, but we'll get a portion of it hopefully. I was disappointed that the last one didn't pass, but willing to look forward to the future and see if a different project can eventually be placed before Council and we can take a look at it and decide whether or not it is a good project for the town. MAYOR FRIEDEL: Councilman? Meeting Packet Page 186 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 17 of 22 SKILLICORN: Thank you, Mr. Mayor. I actually would not echo those comments because electricity is cheap. These panels are expensive. I believe that the electricity cost for this campus was about $200,000 a year. We would have to have a hundred percent of electricity being generated that we use in this campus to get anywhere close to that ten-year payback. I do not find plausible or realistic. Highly skeptical of that number. But that's still millions of dollars that we have to outlay for something that's very inexpensive. What would be the return on investment if we spent $2 million on economic development? We might have a turnaround in 24 months. You know, what about other things? I mean, I understand -- again, I think this is driven because there's some people who want to have some shaded parking, but shaded parking at this campus here isn't going to drive retail sales. If we wanted to have shaded parking on the Avenue of the Fountains that might get people to stay longer and spend more money. That may have actual -- a real economic development component to it. I also kind of wonder how much would a parking garage cost? You know what a parking garage cost? $2 million. The town probably could use a parking garage during certain special events, and that would be an economic development driver. I still think that that this money would be better spent on economic development or frankly, fixing our roads. If we do this, we're going to be another year behind on our roads. I just think that this is foolish, and electricity is very inexpensive. These panels are expensive. And basically, we have to front all the money. It's just the opportunity cost is bigger than $2 million. And as someone who is going to be a fiduciary and is going to be responsible for how money is spent, I cannot say we're going to basically let our roads get one more year down the path and spend $2 million on panels that aren't needed and don't have a payback. And I'll tell you what, when I drive down roads and I see big, giant covered solar parking lots, it's always schools and governments, and it's because politicians are foolish with Meeting Packet Page 187 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 18 of 22 money. MAYOR FRIEDEL: Counsel? WATTS: If I can address Councilman Skillicorn? So the preliminary numbers are right around a million one; a little bit over a little bit over a million one. And with the incentive of thirty percent, it's closer to $800,000 is what the out-of-pocket cost would be. The payback on it is at 10 years, with a life expectancy of 25 years, it pays two-and-a-half million dollars back. So we'd become positive two times what, and that's where the ROI comes back. MCMAHON: I know, but isn't this just to give direction to the council and not talk about the contract? WATTS: It is. It is. These are preliminary -- MCMAHON: And I want to be careful about that. WATTS: They are preliminary budgets that there's no -- that's the nature of running an RFP is I had to have a basis to go forward. Because if I got the same numbers that we got with the prior presentation, it didn't make any sense. But now, because I have gotten verification from two different contractors as a budgetary number, and that's what we always do when we start looking at projects, we look at what's the budgetary constraints, can we make it work? Should it work? And so on. So $800,000 for two- and-a-half million dollars over the life of it made some sense. MAYOR FRIEDEL: And I would say, Allen, before I go to Councilwoman McMahon, this is just investigation. We would have some time in it with the town staff, but we're not signing a contract. We're not doing anything like that. I think it's worth checking into. Councilwoman, go ahead. MCMAHON: Thank you, because I wanted to clarify that as well, because I was concerned that we were talking about contractual terms and things like that. And plus, isn't it the staff's responsibility to do procurement, not necessarily council's? And so as long as this is just basically to look forward into the future and investigate it, you know, like Safeway and other private businesses have solar panels, et cetera, it's not just government and schools. And so like I said, I'm willing to look forward to the future Meeting Packet Page 188 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 19 of 22 and relook at this and see if it's in the best interest of the town when it comes before town and the budget we have and the money to spend. WATTS: Okay. Okay. It's a short response. I just wholeheartedly agree that that's exactly what it is. It's an investigatory can we achieve the numbers that we need to achieve to make it a viable project for us without getting consensus to do that? MAYOR FRIEDEL: Vice mayor? EARLE: Thank you, Mayor. I appreciate what everybody is saying up here. I also support energy savings for our town. But staff has spent a lot of time, we've spent a lot of money already. And two weeks ago learning all of that, it was voted down. Some of the things that I learned talking to Paul didn't make me feel comfortable with this. And I guess this is not the place to discuss that, but we would be asking them to spend more time in this research, which I think we may find similar things as well. And we've also asked staff to look into things for the roads, and then we stopped that. But that's coming back. So I don't know how much time staff has that we're asking them to look into other things that we maybe don't -- isn't so necessary at the moment. I know roads have been a big priority. So I would prefer we put our energy into that right now. So that's my input on it anyway. MAYOR FRIEDEL: Brenda? KALIVIANAKIS: Thank you, Mr. Mayor. And yeah, I'm split on this one because I supported the project. I like the project. I like the savings down the road. But on the other hand, I think the vice mayor and me may have the same notes because I absolutely share your concerns about the staff time. Rachel said that she put in -- the staff put in countless number of hours consulting experts about the rebate, about the viability. We had one of the top energy producers of solar here giving a great presentation. And I just have a feeling this is going to be like a Charlie Brown and Lucy moment as we're going to tee this thing up again. We're going to get bids. We're going to put the staff through a heck of a lot of work. And the concerns that we had last time are still going to be dogging us the next time. Meeting Packet Page 189 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 20 of 22 And I won't go into all of them, but the panel cleaning, the insurance. Council Member Skillicorn talked about antiquated equipment in 10 or 15 years. This will be stuff that's, you know, not usable anymore. And the insurance problems with monsoons and that kind of thing. All the things that were said last week are still going to be dogging us. And so -- and then not only that, but we're going to do this because the federal rebate, and with this delay that rebate is going to even be less and less obtainable. And so that $1 million, which they all agreed was not going to be guaranteed. If we put this off for months, put it through an RFP, it's going to be less likely that we get the offset. And the last thing that they said was, could we take that money and just reinvest it instead of putting it into solar projects? These are all things I listened to, too. And I'm just afraid that even though in concept, I'm with Council Member Watts in looking into this again, I'm still with Vice Mayor Earle that, you know, it seems like we're going to be at the same place at the same meeting in the future and handling the same issues that we already rejected. MAYOR FRIEDEL: I'll make one comment and then we'll see if we have any comment cards. I think it's worth investigating. We've learned a lot from the last trip, so we probably have some shortcuts and we've learned a lot, and we can take that knowledge and move forward, probably at a much quicker pace and less time involved. And I think the town staff is probably up to the project. So that's just my two cents on it. Do we have any comment cards, town clerk? ESPIRITU: Yes, Mayor. We do. The town received one online comment with a position of four. And then we have two requests to speak: Crystal Cavanaugh and Larry Myers. CAVANAUGH: I too, was torn on this topic. After that last meeting, it made a lot of sense to vote no on it because of the costs. And I guess part of me is still at that spot. It kind of reminds me of when there was a big roundabout study that wanted to be done under a different administration that was going to be 4- or $500,000, but for a project that in the end we really weren't going to be able to afford. So at this point in time, I'm wondering, we were on a pathway. We have lake liner, we Meeting Packet Page 190 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 21 of 22 have a lot of roads, and then suddenly we're kind of taking this fork, and I don't know that I can get behind it. I'm not really strong one way or the other, but I am leaning more towards the last comments here, because I just feel like we have more priorities at this time. I mean, eventually there may need to be a road bond, for example. And so it's a lot harder sell to get people to get on board with the road bond if you're going off in this other direction for solar. And so that's really where I'm at right now. Thanks. ESPIRITU: Okay. Mayor, speaker, Larry Myers, has declined to speak. MAYOR FRIEDEL: Okay. Thank you. Hannah, do you have anything to say? LARRABEE: Thank you, Mayor. I don't have too much to add. I agree with the comments that I believe that the money that we would be setting aside for a project like this could be used better in different areas. If the council majority wants to hear further, I'm open to it; however, personally, I'm a no. MAYOR FRIEDEL: So you've got your direction? WATTS: Looks like I heard four no's ,even though we didn't vote. It seemed like that was the sentiment and the consensus. MAYOR FRIEDEL: Okay. All right. So be it. Councilman, did you have something you wanted -- oh, Councilman Skillicorn? SKILLICORN: I was just going to make a friendly motion to adjourn. MAYOR FRIEDEL: Do we have a second? WATTS: Second. MAYOR FRIEDEL: All in favor? UNIDENTIFIED SPEAKER: Aye. MAYOR FRIEDEL: Thank you. We're adjourned. Meeting Packet Page 191 of 296 TOWN OF FOUNTAIN HILLS JUNE 30, 2026 TOWN COUNCIL SPECIAL MEETING MINUTES Page 22 of 22 Having no further business, Mayor Gerry M. Friedel adjourned the Special Session of the Fountain Hills Town Council held on June 30, 2026, at 6:14 p.m. APPROVED: ____________________________________ GERRY FREIDEL, MAYOR ATTEST: ____________________________________ BEVELYN J. BENDER, TOWN CLERK CERTIFICATION I HEREBY CERTIFY THAT THE FOREGOING MINUTES ARE A TRUE AND CORRECT COPY OF THE MINUTES OF THE SPECIAL TOWN COUNCIL MEETING OF THE TOWN COUNCIL, TOWN OF FOUNTAIN HILLS, ARIZONA HELD ON JUNE 30, 2026. I FURTHER CERTIFY THAT THE MEETING WAS DULY CALLED AND HELD AND THAT A QUORUM WAS PRESENT. ________________________________ BEVELYN J. BENDER, TOWN CLERK Meeting Packet Page 192 of 296 ITEM 8.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration / Town Clerk Prepared by: Angela Espiritu, Deputy Town Clerk Staff Contact Information: Phone: 480-816-5116 Email: aespiritu@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving the minutes of the Eagle Mountain Community Facilities District Board Meeting of June 2, 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 Minutes of the Eagle Mountain Community Facilities District Board Meeting of June 2, 2026, as presented. Suggested Motion MOVE TO APPROVE the Minutes of the Eagle Mountain Community Facilities District Board Meeting of June 2, 2026, as presented. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. 2026.0602.EMCFD.MINUTES Meeting Packet Page 193 of 296 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR BOARD MEETING OF THE EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT JUNE 2, 2026 A Regular Meeting of the Fountain Hills Eagle Mountain Community Facilities District Board was convened at 16705 E. Avenue of the Fountains in open and public session at 5:15 p.m. Members Present: Board Chairman Gerry Friedel; Board Vice Chairman Gayle Earle; Board Member Brenda Kalivianakis; Board Member Rick Watts; Board Member Peggy McMahon; Board Member Allen Skillicorn Board Member Hannah Larrabee attended by telephone conference call Staff Present: District Manager Rachael Goodwin; District Attorney Jennifer J. Wright; District Clerk Bevelyn J. Bender Meeting Packet Page 194 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 1 of 12 Post-Production File Town of Fountain Hills Eagle Mountain Community Facilities District Meeting Minutes June 2, 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 195 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 2 of 12 BENDER: Board Member Skillicorn. SKILLICORN: Here. BENDER: Board Member Kalivianakis. KALIVIANAKIS: Here. BENDER: Board Member Watts. WATTS: Here. BENDER: Board Member Larrabee. I had -- she's not online yet. And Board Member McMahon. MCMAHON: Here. BENDER: Chairman, you have a quorum. CHAIRMAN FRIEDEL: Thank you. So we are going to be having consideration and possible action regarding the minutes of the Eagle Mountain Maintenance District Board meeting of June 3rd. Are there any comment cards, Clerk? BENDER: No, Chairman. CHAIRMAN FRIEDEL: Thank you. Is there any Board discussion? Can I get a motion for approval? EARLE: So moved. MCMAHON: Second. CHAIRMAN FRIEDEL: We have a motion and a second. Can we get a roll call vote, please? BENDER: Board Member McMahon. MCMAHON: Aye. BENDER: Board Member Watts. WATTS: Aye. BENDER: Board Member Skillicorn. SKILLICORN: Yes. BENDER: Board Member Kalivianakis. Meeting Packet Page 196 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 3 of 12 KALIVIANAKIS: Aye. BENDER: Vice Chair Earle. EARLE: Aye. BENDER: Chairman Friedel. CHAIRMAN FRIEDEL: Aye. BENDER: Board Member Larrabee. Chairman, six-zero. CHAIRMAN FRIEDEL: Thank you. And then the second item we have is consideration of possible action regarding resolution EMCFD2026-01, dissolving the Eagle Mountain Facilities District. Rachael. GOODWIN: Thank you, Chairman. Our CFO, Paul Soldinger, is going to walk us through the -- the conversation and the details behind the dissolving of this facilities district, if the Board so chooses. With that, I'll hand it over to you, Paul. SOLDINGER: All right. Great. Thank you. Good evening. Chairman and Board of the Eagle Mountain Community Facilities District. So this District is a special taxing district that has been in place and formed in 1995, basically to fund the -- and finance the infrastructure in the Eagle Mountain neighborhood. All the debt was fully paid off in 2021, and the District has been inactive for five years now. So under statute, the Board is now able to consider closure or dissolution of the District. We actually have Zach Sakas, our Special Districts Council from Greenberg Traurig here to answer any specific questions you might have. But we have about $200 in the fund that will be transferred to the Town if approved. Also, the Town Council has a similar agenda item from the Town's perspective. We placed it on the consent agenda just simply because we're already talking about it here. Happy to talk about, if need be at that point. But one thing to consider is two years ago, when all the Qasimyar liability issues Meeting Packet Page 197 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 4 of 12 happened at the County level. As a reminder, that is a potential liability related to the County that was sued by -- Maricopa County was sued by a taxpayer. And what they found in the litigation was that some taxpayers overpaid their property taxes. So the Town had a liability. Eagle Mountain did. The Town paid it off. Eagle Mountain, the District had never paid that 47,000 approximate liability off. Well, we don't know if the liability still exists or not. The County has not communicated anything to us. We tried to reach out as-- Zach actually reached out. Did not receive a response. The County already paid the taxpayers back. But the key point in this discussion is if you dissolve the District today and the Town also approves to dissolve it under statute, the Town would take on any liabilities of the District. So if the County ever does try to seek that repayment or reimbursement from the District, it would then go to the Town. At this point, we don't know if there's a liability, but I want to make it clear that there is the possibility of a liability in the future. So with that, that's all I have for you tonight, and I'd be happy to answer any questions. WATTS: Paul, is there something similar to a statute of limitations on that liability? SOLDINGER: Could you answer that question? Yes, if you could. SAKAS: Chairman. Board. Zach Sakas, Special District, Council to the District. At this point, we're not aware of what the -- the limitation would be. We'll come back to the Council after some additional research on that. But our general understanding is the County paid the taxpayers back under the Qasimyar litigation and its enforcement procedures related to recouping those funds from the different political subdivisions are no longer ongoing. CHAIRMAN FRIEDEL: So would it be your recommendation, without a specific timeline, that we keep this open until we had a definitive answer on the statute of limitations, where we no longer have that liability? SAKAS: I think that's at the -- the District Board's discretion, whether the -- the amount or the potential liability that could transfer over to the Town is material to -- to wait on dissolving the District. WATTS: Paul, can I go back to you and say, what's your opinion? Meeting Packet Page 198 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 5 of 12 SOLDINGER: This is a really tough one. I think at this point, my opinion -- it's hard to put your opinion out in the public purview for something like this because it's kind of unclear. It's unknown. We've done our best to reach out to the County, and they've already paid off the taxpayers. And to be completely honest, $47,000 to Maricopa County is a -- it's completely immaterial. So it's very possible they wrote it off and just never notified us. And actually, at one point, they -- they told us that they were writing it off, and then they, after further discussion, that wasn't the case. So the problem with keeping it open is we continue to have to allocate staff time to have these meetings. The Board would have to meet each year. We'd have to approve a budget. We'd have to pay for public posting notices, which can range about 300 to $500 a year for a district that has no further need to be in existence. So I hesitate, but my recommendation would be to close it just because it doesn't seem like the County is coming for that liability at this point. WATTS: Thank you. MCMAHON: Paul, didn't we discuss this before about, you know, resolving dissolution, so to speak? And that is what -- eventually we were aiming to do? SOLDINGER: Yes. Chair, Chairman, and Board Member. We talked about it. So at the time -- we talked about a few times, we brought up two years ago when it first happened, and at the time, we had existing fund balance in the Town's coffers in a prior debt issuance to pay it off from the Town's perspective, but we did not have the money from the district's perspective to do that. And so we -- I think we basically decided or recommended to hold off and see what happened. And -- and there was the chance that the County was going to forgive it because they did it for -- for example, I believe Rio Verde water district or fire district, they did a similar action. And the whole -- the whole key to that conversation was any existing special taxing district. So not the Town, a special taxing districts like this one that was not continuing to levy property taxes. So it had no continuing taxing authority because there was no debt. So we fit that criteria perfectly for some reason. The County changed its mind in Meeting Packet Page 199 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 6 of 12 that conversation. And so that's why we're here today. MCMAHON: So we could dissolve it. Right? I mean, there -- there's really no purpose. I'm going to go out on a limb and say, really no purpose for it. Then it's served its purpose. SOLDINGER: Board Member, yes, it served its purpose. But to the other -- the other Board Members' point, if we kept it open -- the confusing thing about this is, as a special taxing district, it's legally separate from the Town. MCMAHON: Uh-huh. SOLDINGER: So it's shielding the Town from any liabilities. If you dissolve it, the Town would take on a possible liability. The problem is, it seems like there is no liability, but you just never know. With the County, they could change their mind and come back to try to seek that repayment. MCMAHON: Okay. So maybe what -- before even like moving to dissolve it or anything, look at the-- if there's an applicable statute of limitations and then come back. And if there isn't or there is, then look at what the options might be at that time when we do more research on it. SOLDINGER: We make that happen by the next meeting? Or will we have to have a special meeting? Called the District Board again? Okay. That would be an option. Board Member we'd have to probably call a special meeting sometime in the summer to make that, because we're required to pass a budget, we just wouldn't be following the statutory requirements to pass the budget and things like that. So we'd be out of compliance with statute if we didn't kind of move on this quickly. MCMAHON: Okay. So then what would the best motion, or given what the discussion has been this evening? What is -- what is the best motion or what we're going to do with this tonight? SOLDINGER: I would say it's a really hard one. MCMAHON: I know. SOLDINGER: I would -- my recommendation would be to close it, because it seems like Meeting Packet Page 200 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 7 of 12 the County has forgotten about this, and we're just not going to keep seeking that answer from them. They haven't responded. They don't provide that information. They've already repaid the taxpayers. There's no reason for us to at this point. It could happen. It's like a -- MCMAHON: Yeah. SOLDINGER: -- it's a possibility kind of thing. MCMAHON: Right. SOLDINGER: So my recommendation would be to close it, but it isn't -- MCMAHON: To hold it or to dissolve it? SOLDINGER: To dissolve it -- MCMAHON: Okay. SOLDINGER: -- is my recommendation, yes. MCMAHON: Okay. I'm for that. I'm good with that. I'll make a motion to dissolve it. SKILLICORN: Thank you, Mr. Chairman. Well, $300 in newspaper posting fees is a lot lower than $47,000. I'm inclined to table it until we know more. You know, I'm kind of curious if discussion, though, you know, what other people's opinions are. And you know, maybe we can debate this and help make a decision before we make any other motions. CHAIRMAN FRIEDEL: Yes, ma'am. EARLE: My well, I'd like to second the motion of Peggy to go ahead and dissolve it. That's my take. CHAIRMAN FRIEDEL: Councilmember Watts. WATTS: I think -- I think I'd like to support Councilmember Skillicorn's idea about tabling, because $300 a year, $500 a year, is significantly less than $47,000 in liability. And I would ask to pursue a letter of determination from the State -- from the Maricopa County. So we had something concrete that said we were either relieved of liability or it remains and we are not. But I think without knowing that, we're it's -- it's a lot worse than a toss-up. I wouldn't toss a coin for $47,000. So I would support Councilman Skillicorn's suggestion to table. Meeting Packet Page 201 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 8 of 12 KALIVIANAKIS: Thank you, Mr. Mayor. Yeah, I think the liabilities, they're negligible to nonexistent, and I would be willing to go with the staff's suggestion that we go ahead and dissolve it. I don't see this thing coming back. It's antiquated. It's been forgotten. It's just -- it's just a housekeeping issue to me. If we had a consent agenda, I'd put it on the consent agenda, but yeah, I'm for the Councilmember Earl and McMahon's motion to -- let's -- let's get rid of it. GOODWIN: Paul, I just have a question. Actually, it may be for you, Zach, because I know we have you here tonight, so your expertise is helpful. Thank you. If the Board chose to leave this open and -- indefinitely until -- and the County came back and said, yep, we want our $47,000, is there a way for the Town to levy that then to -- to the Eagle Mountain CFD? I mean, would we be able to collect that money from them, or would the Town -- is there a mechanism to get that funding, or are we going to have to absorb that anyhow? SAKAS: Chairman, Board, responsive to the District manager's question, the -- this District never levied a property tax to pay operation and maintenance expenses for the District. There are abilities to levy charges, fees, other things to property owners within the District. It would not be a property tax, but there could be a potential way to levy that, or not levy because it's not a tax, but to charge fees of some sort, or rates to property owners within the District -- GOODWIN: Okay. SAKAS: -- to repay that. GOODWIN: To cover that liability. SAKAS: If -- if the District is existing. GOODWIN: Gotcha. Okay. Just wanted to make sure that we weren't going to -- SAKAS: Yeah. GOODWIN: -- essentially take that on one way or the other. SAKAS: The -- the ability, the -- the trick we ran into, as Paul mentioned, was the property taxes were turned off because there was no longer debt outstanding, and the Meeting Packet Page 202 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 9 of 12 only statutory authority to levy those property taxes was inherently connected to the debt. So we could not turn property taxes of any sort back on to -- to pay the potential amounts on the -- from the Qasimyar litigation. GOODWIN: Okay. But there is a fee mechanism that we could use, or some other charge? SAKAS: Potentially. Well, I don't want to use the word assessment because in the CFD assessments there's -- it's a specific lien on lots. And it wouldn't be that situation either. GOODWIN: Okay. Thank you. SKILLICORN: Thank you, Mr. Chairman. I would be curious of the mechanism to collect that. Because I'm not excited about the rest of the Town paying out $47,000. I mean, how would -- how would Eagle Mountain reimburse the Town for that? SOLDINGER: So Chairperson, Board Member Skillicorn, it would be if -- if the District is dissolved today, it would become a potential liability of the Town. So the Town would be responsible if the County came seeking that reimbursement. Right now, we have about 28 or $29,000 still existing in that debt fund that we use to pay off the previous liability. So the Council would have to -- or under the Town Manager's authority would have to authorize payment, probably from the general fund or another unrestricted fund, to pay -- pay off that debt. SKILLICORN: Mr. Mayor, CFO, but what is the mechanism that Eagle Mountain would pay back the Town? SAKAS: Chairman, Board. To the extent the District was dissolved, there would be no mechanism. But if the District was left intact with action of the District Board and likely some public input from property owners within the District, the District could levy charges, fees, other things for district services, which could include the amount potentially owed to the County. MCMAHON: So you're saying that they could levy against the County, but and then Paul saying we have a certain amount of funds that if something like this came up, we could use that as a negotiating factor if there was any liability imposed on the Town. And that's a big if. Meeting Packet Page 203 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 10 of 12 SOLDINGER: So I keep forgetting the terms. Board Member. If dissolved, then the Town would be responsible. That's when I was discussing the different funds the Town could pay. MCMAHON: Right. SOLDINGER: But our special District Council was discussing was if it was left intact, there could be a mechanism where it would be a -- not an assessment, but a fee basically charged to the homeowners or the landowners within the District in the Eagle Mountain neighborhood to -- to pay off that debt. MCMAHON: Okay. SOLDINGER: Am I saying that correctly, or -- MCMAHON: But you've been saying this has been sitting here for a while and it's remote. It seems like it would be a remote, if that even happened. SOLDINGER: It we've -- we've done our best to seek that information. MCMAHON: Right. SOLDINGER: We've gotten no response. MCMAHON: Yeah. SOLDINGER: And I think that's the challenge, you know, attorney to attorney communications with no response. So that's we could with the option of tabling on -- on the Board, if that were to be something the Board wants to consider. We could try to seek stronger, you know -- MCMAHON: Uh-huh. SOLDINGER: -- with stronger means to get that information and we can do some things. But and we could bring it back to the Board if that's the way that the Board would like us to go. MCMAHON: Okay. Thanks. All right. EARLE: Second. CHAIRMAN FRIEDEL: Any other discussion? EARLE: How about Hannah? CHAIRMAN FRIEDEL: Hannah, do you have anything you want to add? Meeting Packet Page 204 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 11 of 12 LARRABEE: No, Mayor. Thank you. CHAIRMAN FRIEDEL: So we have a motion and a second. Are there any comment cards, Town Clerk? BENDER: No, Chairman. CHAIRMAN FRIEDEL: Can we get a roll call vote, please? BENDER: Board Member Skillicorn. SKILLICORN: No. BENDER: Board Member Larrabee. LARRABEE: Aye. BENDER: Board Member McMahon. MCMAHON: Aye. BENDER: Board Member Kalivianakis. KALIVIANAKIS: Aye. BENDER: Board Member Watts. WATTS: Nay. BENDER: Vice Chair Earle. EARLE: Aye. BENDER: And Chair Friedel. CHAIRMAN FRIEDEL: Aye. BENDER: Chairman, five-two. CHAIRMAN FRIEDEL: Thank you. Can I get a motion to adjourn this special meeting? KALIVIANAKIS: Motion to adjourn special meeting. CHAIRMAN FRIEDEL: And we need a second. EARLE: Second. Meeting Packet Page 205 of 296 TOWN OF FOUNTAIN HILLS JUNE 2, 2026 EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING MINUTES Page 12 of 12 Having no further business, Chairman Gerry Friedel adjourned the Regular Session of the Eagle Mountain Community Facilities District Board held on June 2, 2026, at 5:34 p.m. APPROVED: ____________________________________ GERRY FRIEDEL, CHAIRMAN ATTEST: ____________________________________ BEVELYN J. BENDER, DISTRICK CLERK CERTIFICATION I HEREBY CERTIFY THAT THE FOREGOING MINUTES ARE A TRUE AND CORRECT COPY OF THE MINUTES OF THE EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT MEETING OF THE BOARD, TOWN OF FOUNTAIN HILLS, ARIZONA, HELD ON JUNE 2, 2026. I FURTHER CERTIFY THAT THE MEETING WAS DULY CALLED AND HELD AND THAT A QUORUM WAS PRESENT. ________________________________ BEVELYN J. BENDER, DISTRICT CLERK Meeting Packet Page 206 of 296 ITEM 8.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular 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: Approving Resolution 2026-20, accepting Gila River Indian Community Grant Funding on behalf of the Fountain Hills Unified School District. Staff Summary (background) Proposition 202 (Gaming Compact with the State of Arizona) was a ballot measure passed by the Arizona voters in the 2002 state general election and codified in ARS 5-601.02. This legislation allows for distribution of funds to cities, towns, and counties for their programs from Arizona Indian Tribes for government services that benefit the general public, including public safety, mitigation of the impacts of gaming, and the promotion of commerce and economic development. The Gaming Compact permits the Nation to allocate 12% of fees it pays to the State to cities, towns and counties in the State of Arizona. Many non-profit organizations also request Proposition 202 funding as "pass through dollars" from cities, towns, and counties to support programs within their communities. Since the legislation required funds to be solicited by a municipality or county, the Town Council approved Resolution 2025-26, which adopted the Town's policy and procedures relating to the Proposition 202 application process for the procurement of funds on behalf of various entities (i.e. as a pass through for funds). The Gila River Indian Community has awarded the Fountain Hills Unified School District (FHUSD) $50,000 for the Native American Cultural Center and Club. The Town will serve as the "pass through" in accordance with Prop 202 and the administration of the grant will be the sole responsibility of the FHUSD. Related Ordinance, Policy or Guiding Principle 2022 Town of Fountain Hills Strategic Plan Priorities: Targeted Collaborative Economic Development and Promote the Long-Term Financial Sustainability of Town Infrastructure, Environmental and Social Resources; Section 12 of the Gaming Compact 2002 and A.R.S. 5- 601.02; Fountain Hills Resolution 2025-26 Risk Analysis If the resolution is not approved, the Fountain Hills Unified School District will not receive $50,000 for the Native American Cultural Center and Club. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval. Suggested Motion Meeting Packet Page 207 of 296 MOVE TO APPROVE Resolution 2026-20, accepting Gila River Indian Community Grant Funding on behalf of the Fountain Hills Unified School District. FISCAL IMPACT Fiscal Impact: $50,000 as a pass through only. Budget Reference: Special Revenue Fund Funding Source: Gila River Community Grant Cycle 2026 ATTACHMENTS 1. Resolution 2026-20 Gila River Grant Program - FHUSD Meeting Packet Page 208 of 296 RESOLUTION NO. 2026-20 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, PROVIDING “PASS THROUGH” SUPPORT FOR THE FOUNTAIN HILLS UNIFIED SCHOOL DISTRICT FOR GILA RIVER GRANT FUNDING WHEREAS, the Town of Fountain Hills, being a qualifying entity, acts as a “Pass Through” agency for the Fountain Hills Unified School District by accepting any dispersed funds intended for the Fountain Hills Unified School District from the Gila River Grants Review Committee and in accordance with the terms and conditions of said grant. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recital above is hereby incorporated as if fully set forth herein. SECTION 2. The Town hereby authorizes the acceptance of funds. SECTION 3. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to cause the execution of the grant funding 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, this 1st day of September 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 209 of 296 ITEM 8.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Multi-Departmental 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: Approving a Budget Authority Transfer from Capital Projects Fund contingency into the budget for the Fountain Park Ramada Replacement Project. Staff Summary (background) The Town Council previously authorized a total of $520,000 for the replacement of ramada structures at Fountain Park, including $320,000 in FY2026 and $200,000 in FY2027. Following a competitive procurement process, the Town selected Richmond Construction & Infrastructure as the contractor. The contractor completed demolition work during FY2026, for which the Town paid $141,376. However, less construction work was completed in FY2026 than originally anticipated, resulting in a larger portion of the project carrying into FY2027. Approximately $375,000 in remaining contract work is now anticipated during FY2027. The FY2027 Adopted Budget currently includes only $200,000 in budget authority for the project. Staff is therefore requesting Council approval to transfer $175,000 in budget authority from the Capital Projects Fund contingency to the Fountain Park Ramada Replacement Project. This request does not increase the total project funding previously approved by Council. Rather, it reallocates budget authority between fiscal years to reflect the revised construction schedule and ensure sufficient FY2027 authority is available to complete the project and make final payments to the contractor. The total project cost the previously approved $520,000. Related Ordinance, Policy or Guiding Principle Town Budgetary and Financial Policies Risk Analysis Without approving the budget authority transfer, staff will be unable to pay the Contractor the full amount owed under the bid award and contract amount. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of budget authority transfer of $175,000 from the Capital Projects Fund contingency into the Project. Suggested Motion Meeting Packet Page 210 of 296 MOVE TO APPROVE Budget Authority Transfer of $175,000 from Capital Projects Fund contingency into the budget for the Fountain Park Ramada Replacement Project FISCAL IMPACT Fiscal Impact: $175,000 (already authorized in previous Fiscal Year) Budget Reference: FY2027 Adopted Budget Funding Source: Capital Projects Fund ATTACHMENTS 1. budget transfer Meeting Packet Page 211 of 296 TOWN OF FOUNTAIN HILLS BUDGET AMENDMENTS JOURNAL ENTRY PROOF Report generated: 08/19/2026 10:29 User: BBogdan Program ID: bgamdent Page 1 LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND 2027 03 2 09/01/2026 CIP COUNCIL BUA CIP XFRS 1 1 1 CIPPR 8070 P3067 PARK & REC CAP PROJECTS PARK IMPROVEMENTS 200,000.00 175,000.00 375,000.00 600-50-50-502-000-1602-8070-P3067 FROM CIP CONTINGENCY 09/01/2026 2 CIPAD 7010 CAPITAL PROJECTS ADMIN CONTINGENCY 1,321,000.00 -175,000.00 1,146,000.00 600-10-10-105-000-0106-7010- TO P3067-FP RAMADAS 09/01/2026 3 CIPPR 8070 P3060 PARK & REC CAP PROJECTS PARK IMPROVEMENTS 1,400,000.00 25,000.00 1,425,000.00 600-50-50-502-000-1602-8070-P3060 FROM CIP CONTINGENCY 09/01/2026 4 CIPAD 7010 CAPITAL PROJECTS ADMIN CONTINGENCY 1,321,000.00 -25,000.00 1,296,000.00 600-10-10-105-000-0106-7010- TO P3060-SKYVIEW 09/01/2026 ** JOURNAL TOTAL 0.00 Meeting Packet Page 212 of 296 TOWN OF FOUNTAIN HILLS BUDGET AMENDMENT JOURNAL ENTRY PROOF Report generated: 08/19/2026 10:29 User: BBogdan Program ID: bgamdent Page 2 CLERK: BBogdan YEAR PER JNL SRC ACCOUNT ACCOUNT DESC T OB DEBIT CREDIT EFF DATE JNL DESC REF 1 REF 2 REF 3 LINE DESC 2027 3 2 BUA CIPPR-8070-P3067 PARK IMPROVEMENTS 5 175,000.00 09/01/2026 CIP XFRS CIP COUNCIL T FROM CIP CONTINGENCY BUA CIPAD-7010 CONTINGENCY 5 175,000.00 09/01/2026 CIP XFRS CIP COUNCIL T TO P3067-FP RAMADAS BUA CIPPR-8070-P3060 PARK IMPROVEMENTS 5 25,000.00 09/01/2026 CIP XFRS CIP COUNCIL T FROM CIP CONTINGENCY BUA CIPAD-7010 CONTINGENCY 5 25,000.00 09/01/2026 CIP XFRS CIP COUNCIL T TO P3060-SKYVIEW JOURNAL 2027/03/2 TOTAL .00 .00 Meeting Packet Page 213 of 296 ITEM 8.e. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Multi-Departmental 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: Approving a Budget Authority Transfer from Capital Projects Fund contingency into the budget for the construction of Skyview Park. Staff Summary (background) The Town Council authorized $1.4 million in the FY2027 Adopted Budget for construction of Skyview Park, a new stargazing park located at Bainbridge Avenue and Golden Eagle Boulevard. Following a competitive procurement process, staff selected AR Mays Construction as the contractor, with a total contract amount of $1.4 million, including an owner’s allowance for unforeseen construction costs. The FY2027 Capital Improvement Plan identifies the Parks Development Impact Fee Fund as the funding source for the project. Construction is expected to begin in the coming months. Since the Parks Superintendent, who was responsible for overseeing the project, recently left Town employment, the Community Services Director is requesting an additional $25,000 in budget authority to retain J2 Engineering and Environmental Design LLC (J2 Design) to provide construction administration and project management services throughout construction. Given the recent staff transition, retaining J2 Design will provide continuity and additional oversight to help ensure the project is completed in accordance with the approved scope, contract requirements, and Town expectations. Construction administration services will also help support quality control, coordination, schedule management, and resident safety throughout the project. With Council approval, staff will transfer $25,000 in budget authority from the Capital Projects Fund contingency to the Skyview Park project budget within the same fund. Sufficient contingency and fund balance are available to accommodate the requested transfer. Related Ordinance, Policy or Guiding Principle Town Budgetary and Financial Policies Risk Analysis Without approving the budget authority transfer, staff will be unable ensure all construction administration steps will be carried out during the construction of Skyview Park, in accordance with the Contractor's winning proposal and the original design of the Project. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of a budget authority transfer of $25,000 from the Capital Meeting Packet Page 214 of 296 Projects Fund contingency into the Project. Suggested Motion MOVE TO APPROVE Budget Authority Transfer of $25,000 from Capital Projects Fund contingency into the budget for the construction of Skyview Park. FISCAL IMPACT Fiscal Impact: $25,000 Budget Reference: FY2027 Adopted Budget Funding Source: Parks Development Impact Fees Fund (Capital Improvement Plan approved in FY2027 Adopted Budget) ATTACHMENTS 1. J2 Design - Skyview Park - Post Design Proposal 2. budget transfer Meeting Packet Page 215 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 February 20, 2026 – V1 Kevin Snipes Community Services Director Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 ksnipes@fountainhillsaz.gov Re: Town of Fountain Hills – Skyview Park Dear Mr. Snipes J2 Engineering and Environmental Design LLC (J2 Design) is pleased to continue providing professional design assistance during the Construction of Skyview Park. Our estimated Not to Exceed design fee for this project is as follows (see attached fee sheets for breakdown): Post Design – Construction Administration J2 Design Fee: $ 16,058.07 Wright Engineering Fee: $ 5,140.00 RKC Fee: $ 2,000.00 Total Fee Including J2 Design & Sub-Consultants: $ 23,198.07 Thank you for selecting the J2 Team; we are excited to begin work on this project and to continue our outstanding working relationship with the Town of Fountain Hills. Please do not hesitate to call with any questions that you may have. Sincerely, Adam Hawkins, PLA, ASLA | Project Landscape Architect J2 Engineering and Environmental Design, LLC ahawkins@j2design.us - Cell Phone 623.694.6134 Meeting Packet Page 216 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 Town of Fountain Hills | Skyview Park J2 Scope of Services | Post Design Construction Administration Task 100 – Construction Administration J2 will attend the construction kick-off meeting. J2 will respond to contractor Requests for Information (RFI) J2’s will review shop drawings and submittals. It is assumed that each submittal/shop drawing will have no more than two (2) reviews for each submittal package. This equates to an initial review of the submittal/shop drawing and a second review after any requested corrections or updates have been made. J2 will accompany the town (if attendance is desired) and the contractor and visit local nurseries (local is defined as within 75 miles of the project site). The Contractor will have previously secured and tagged the plant materials that are in conformance with the project plans and specifications for the project that are to be reviewed on this visit. This visit will allow the J2 Design Team and the town the opportunity to review the plant material that has been secured for the project prior to delivery of the plants to the project. It will also allow an opportunity to accept and or reject the proposed plants based on observations of the size, health, and vigor of the plants at the nursery prior to delivery to the site and potentially select and tag any proposed replacements for the rejected plant materials. J2 will provide an observation report of the nursery visit to the Town J2 will attend up to eight (8) construction meetings as requested by the Town. It is assumed that the Town’s construction manager or contractor will be providing all agendas, sign-ins, and minutes and J2 has not included these in this scope of services. J2 will provide one (1) initial review of contractor prepared and provided as-built plans and operation and maintenance (O&M) manuals. J2 will comment on both the as-builts and O&M manuals and provide back to the contractor for revisions. J2 will provide one (1) final review of as-builts and O&M manuals to verify if all deficiencies noted in initial review have been adequately addressed. Deliverables: • RFI responses • Submittal/Shop drawing Reviews • Nursery Observation Report(s) • As-builts and O&M review comments Meeting Packet Page 217 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 Meetings: • Construction Kick-off - One (1) meeting. This meeting is anticipated to be three (3) hours in duration inclusive of travel. J2 will have one (1) representative at this meeting. • Construction Meetings-Eight (8) meetings. Each meeting is anticipated to be three (3) hours in duration inclusive of travel. J2 will have one (1) representative at this meeting. • Nursery Site Visit- One (1) Site Visit, this meeting is anticipated to be six (6) hours in duration inclusive of travel time. J2 will have one (1) representative at this meeting. Task 200 – Construction Phase Site Visits J2 will attend a pre-final walk through and final walk through of the project. J2 will generate a punch list of items, pertaining to the landscape and irrigation, for corrective action by the contractor after each walk through. Deliverables: • Observation Reports (PDF) • Punch Lists (PDF) Meetings: • Pre-final Walk through - One (1) meeting. This meeting is anticipated to be four (4) hours in duration inclusive of travel. J2 will have two (2) representatives at this meeting. • Final Walk through - One (1) meeting. This meeting is anticipated to be four (4) hours in duration inclusive of travel. J2 will have two (2) representatives at this meeting. Meeting Packet Page 218 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 Post Design General Understanding: Limited post design services shall be performed by J2 Engineering and Environmental Design, LLC. Construction administration and observations will be provided by J2 under the limits described above with the intent of rendering a professional opinion regarding the quality of the completed construction strictly limited to the landscape, hardscape, irrigation aspects of the project. This task should not be construed to warrant the work of any contractor. Each discipline will review and approve applicable shop drawings. Any administrative, observation and inspection services provided by the Consultant Project Team are solely for the purpose of rendering a professional opinion regarding apparent conformance to contract requirements. Consultant does not warrant the work of any contractor. In accordance with generally accepted construction practice, contractor shall be solely responsible for all job site conditions and safety of persons or property. Any observations of the work completed are subject to the following: The observations shall be directly related to the quality of the work performed so that such work is in accordance with the requirements of the construction documents. The issuance of a punch list shall not be a representation that J2 has: (1) Made exhaustive or continuous on-site observations to check the quality or quantity of the Work (2) Reviewed construction means, methods, techniques, sequences for the Contractor’s own Work or procedures (3) Reviewed copies of requisitions received from Subcontractors and material suppliers and other data requested by the owner to substantiate the Contractor’s right to payment or (4) Ascertained, how or for what purpose, the Contractor has used money previously paid on account of the Contract Sum. J2 shall not have control over, or charge of, and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the Work of each of the Contractors, since these are solely the Contractor’s responsibility under the Contract for Construction. J2 shall not be responsible for a Contractor’s failure to carry out the Work in accordance with the respective Contract Documents. J2 shall not have control over, or charge of, acts or omissions of the Contractors, Subcontractors, or their agents or employees, or any other persons performing portions of the Work not directly employed by J2. The Construction Administration and Observations portion of this Agreement is based upon the following assumptions, which are assumed to be reasonable: Meeting Packet Page 219 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 Maximum contract time of twelve (12) months for construction. If this general understanding is not correct, or if the Town feels additional, field time is needed beyond this Scope of Work; such services can be provided on an additional time and materials basis. Meeting Packet Page 220 of 296 J2 Engineering and Environmental Design, LLC 4649 E. Cotton Gin Loop Suite B2 Phoenix, Arizona 85040 ph. 602.438.2221 The following tasks are NOT included in this scope of services: 1. J2 is not providing any permitting or permit fees. 2. J2 is not providing any material testing. 3. J2 is not providing any erosion control, SWPPP inspections. 4. J2 is not providing any Utility Potholing 5. J2 is not performing any pressure tests or irrigation coverage tests. 6. Field measurements of site work for payment applications and justification. 7. J2 is not providing Environmental Clearances and/or Studies or Reports or 404 permitting 8. Design revisions based on modified scope by Town or Value Engineering by Contractor are not included and would need a contract modification. 9. J2 is not drafting or certifying contractor as-builts. 10. J2 is not providing any weekly construction meeting agendas, logs, or minutes. 11. J2 is not reviewing, approving, or certifying contractor pay applications. We would expect to start our services after receipt of the Notice to Proceed. This exhibit represents the entire understanding of the Scope of Services as set out herein and may only be modified in writing signed by both parties. Meeting Packet Page 221 of 296 Skyview Park | Town of Fountain Hills Post Design - Construction Administration J2 Engineering and Environmental Design, LLC 2/23/2026 Design Manager Project Engineer Sr. Project Engineer Engineer Landscape Architect Sr. Landscape Architect Designer Sr. Designer 227.70$ 204.40$ 148.64$ 120.81$ 207.88$ 138.31$ 122.89$ 89.18$ Task #Hours Total 100 101 Submittal / Shop Drawings Review 4 12 12 28 102 Respond to contractor RFI"s 2 12 12 26 103 Construction Kick-Off Meeting (1 Field Meeting) 3 3 104 Construction Meetings (up to 8 Mtg's As Requested) 12 12 16 40 105 Nursery Site Visit (1 Meeting) 8 8 106 Asbuilt and O&M review 4 4 8 200 201 Pre-Final Walk Through and Punch List (1 Field Meeting) 6 6 12 202 Final Walk Through and Punch list (1 Field Meeting) 6 6 12 0 0 0 0 0 37 60 40 137 -$ -$ -$ -$ -$ 5,117.47$ 7,373.40$ 3,567.20$ 16,058.07$ Subconsultants: Fee Amount RKC 2,000.00$ 23,198.07$ Wright Engineering 5,140.00$ Total Subconsultants: 7,140.00$ Allowances: Fee Amount $0.00 Total Allowances: $0.00 Date February 23, 2026 Aaron Allan, PLA, ASLA | Principal J2 Hours per Labor Category: J2 Fee per Labor Category: Total Fee J2 Design and Subconsultants J2 Engineering and Environmental Design, LLC Labor Category: Rate: Task Description: Construction Administration Construction Phase Site Visits Skyview Park - PD 2026.02.20 - Fee - Post Design - V1 1 Meeting Packet Page 222 of 296 TOWN OF FOUNTAIN HILLS BUDGET AMENDMENTS JOURNAL ENTRY PROOF Report generated: 08/19/2026 10:29 User: BBogdan Program ID: bgamdent Page 1 LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND 2027 03 2 09/01/2026 CIP COUNCIL BUA CIP XFRS 1 1 1 CIPPR 8070 P3067 PARK & REC CAP PROJECTS PARK IMPROVEMENTS 200,000.00 175,000.00 375,000.00 600-50-50-502-000-1602-8070-P3067 FROM CIP CONTINGENCY 09/01/2026 2 CIPAD 7010 CAPITAL PROJECTS ADMIN CONTINGENCY 1,321,000.00 -175,000.00 1,146,000.00 600-10-10-105-000-0106-7010- TO P3067-FP RAMADAS 09/01/2026 3 CIPPR 8070 P3060 PARK & REC CAP PROJECTS PARK IMPROVEMENTS 1,400,000.00 25,000.00 1,425,000.00 600-50-50-502-000-1602-8070-P3060 FROM CIP CONTINGENCY 09/01/2026 4 CIPAD 7010 CAPITAL PROJECTS ADMIN CONTINGENCY 1,321,000.00 -25,000.00 1,296,000.00 600-10-10-105-000-0106-7010- TO P3060-SKYVIEW 09/01/2026 ** JOURNAL TOTAL 0.00 Meeting Packet Page 223 of 296 TOWN OF FOUNTAIN HILLS BUDGET AMENDMENT JOURNAL ENTRY PROOF Report generated: 08/19/2026 10:29 User: BBogdan Program ID: bgamdent Page 2 CLERK: BBogdan YEAR PER JNL SRC ACCOUNT ACCOUNT DESC T OB DEBIT CREDIT EFF DATE JNL DESC REF 1 REF 2 REF 3 LINE DESC 2027 3 2 BUA CIPPR-8070-P3067 PARK IMPROVEMENTS 5 175,000.00 09/01/2026 CIP XFRS CIP COUNCIL T FROM CIP CONTINGENCY BUA CIPAD-7010 CONTINGENCY 5 175,000.00 09/01/2026 CIP XFRS CIP COUNCIL T TO P3067-FP RAMADAS BUA CIPPR-8070-P3060 PARK IMPROVEMENTS 5 25,000.00 09/01/2026 CIP XFRS CIP COUNCIL T FROM CIP CONTINGENCY BUA CIPAD-7010 CONTINGENCY 5 25,000.00 09/01/2026 CIP XFRS CIP COUNCIL T TO P3060-SKYVIEW JOURNAL 2027/03/2 TOTAL .00 .00 Meeting Packet Page 224 of 296 ITEM 9.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Public Works / Streets Prepared by: Jeff Pierce, Streets Superintendent Staff Contact Information: Phone: 480-816-5129 Email: jpierce@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Related to FY26-27 Pavement Management Selections and Funding Staff Summary (background) SUMMARY The Public Works Streets Superintendent will present the proposed paving locations for FY26-27, utilizing the remaining $3 million in available funding. These proposed projects are separate from the streets previously presented to and approved by the Town Council in the prior fiscal year, totaling approximately $3.4 million and currently underway. The proposed FY26-27 projects were identified through the Town’s pavement management process and are intended to address roadway conditions while supporting the Town’s long- term strategy for maintaining and improving its street network. BACKGROUND The Town utilizes the Budget Optimization Street Selector (BOSS), a pavement management software system, to assist in evaluating and prioritizing roadway improvements. BOSS considers multiple factors, including pavement condition, traffic volumes, available funding, and potential impacts to traffic flow, to develop a prioritized and cost-effective program for pavement repairs and full roadway reconstruction. As part of the FY26-27 planning process, the BOSS system was used to evaluate roadway conditions and identify candidate streets for improvement. The resulting recommendations provide a data-driven approach to allocating available funding and prioritizing streets that require significant rehabilitation or reconstruction. The Town Council has allocated $6.4 million for paving projects. This funding includes approximately $3.4 million for streets approved in the prior fiscal year, which are currently underway, and $3 million in remaining funding proposed for the FY26-27 paving program. Proposed Full Reconstruction Projects Based on the BOSS pavement management analysis and prioritization, the following 14 local road segments are proposed for full reconstruction: Manitou Drive — Inca Avenue to End Kiowa Circle — Inca Avenue to End Hawk Drive — Inca Avenue to Saguaro Boulevard Meeting Packet Page 225 of 296 Walapai Circle — Inca Avenue to End Parlin Drive — Inca Avenue to Malta Drive Sirocco Drive — Inca Avenue to Parlin Drive Cameron Court — Sirocco Drive to End Trojan Court — Parlin Drive to End Malta Drive — Rand Drive to Saguaro Boulevard Middlecoff Drive — Kingstree Boulevard to End Augusta Court — Jacklin Drive to End Indian Wells Drive — Saguaro Boulevard to Saguaro Boulevard Zaharis Drive — Indian Wells Drive to End Barnes Drive — Indian Wells Drive to End Related Ordinance, Policy or Guiding Principle Pavement Management Best Practices Risk Analysis Failure to proceed with pavement management selections could result in failing roadways and result in higher pricing. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends that the Town Council approve the projects for the reconstruction of the fourteen (14) roads identified and selected by the BOSS program as presented by staff. Suggested Motion MOVE TO direct staff to proceed with the streets as identified. FISCAL IMPACT Fiscal Impact: $3,000,000 Budget Reference: Streets Fund Funding Source: N/A ATTACHMENTS 1. Combined Maps 2. FY27-Pavement-Treatment Meeting Packet Page 226 of 296 = 250 LF 4,193 SY = $44,6 PUBLIC WORKS FY2027 FUTURE PAVEMENT IMPROVEMENTS NOTES: MANITOU DR. TREATMENT LEGEND SLURRY SEAL SURFACE TREATMENT MILL & OVERLAY FULL DEPTH RECONSTRUCTION N w ♦E s MAP NOT TO SCALE PAVEMENT SELECTIONS, APPROXIMATE QUANTITIES AND APPROXIMATE PRICING BASED ON ROADWAY ASSET SERVICES 2026 PowerBI "FOUNTAIN HILLS AZ FY27 ANALYSIS REV 2" DATED 7 /23/26 THIS TOPO/AERIAL MAPPING IS SUITABLE FOR GENERAL PLANNING PURPOSES, BUT SHOULD NOT BE USED FOR DESIGN. Meeting Packet Page 227 of 296 PTH RECONSTRUCTION QUANTITI LENGTH = 670 LF AREA= 4,193 SY PUBLIC WORKS FY2027 FUTURE PAVEMENT IMPROVEMENTS NOTES: KIOWA CIRCLE TREATMENT LEGEND SLURRY SEAL SURFACE TREATMENT MILL & OVERLAY FULL DEPTH RECONSTRUCTION N w ♦E s MAP NOT TO SCALE PAVEMENT SELECTIONS, APPROXIMATE QUANTITIES AND APPROXIMATE PRICING BASED ON ROADWAY ASSET SERVICES 2026 PowerBI "FOUNTAIN HILLS AZ FY27 ANALYSIS REV 2" DATED 7 /23/26 THIS TOPO/AERIAL MAPPING IS SUITABLE FOR GENERAL PLANNING PURPOSES, BUT SHOULD NOT BE USED FOR DESIGN. Meeting Packet Page 228 of 296 Meeting Packet Page 229 of 296 Meeting Packet Page 230 of 296 Meeting Packet Page 231 of 296 Meeting Packet Page 232 of 296 LL DEPT VEMENT L VEMENT A PUBLIC WORKS FY2027 FUTURE PAVEMENT IMPROVEMENTS NOTES: CAMERON CT TREATMENT LEGEND SLURRY SEAL SURFACE TREATMENT MILL & OVERLAY FULL DEPTH RECONSTRUCTION N w ♦E s MAP NOT TO SCALE PAVEMENT SELECTIONS, APPROXIMATE QUANTITIES AND APPROXIMATE PRICING BASED ON ROADWAY ASSET SERVICES 2026 PowerBI "FOUNTAIN HILLS AZ FY27 ANALYSIS REV 2" DATED 7 /23/26 THIS TOPO/AERIAL MAPPING IS SUITABLE FOR GENERAL PLANNING PURPOSES, BUT SHOULD NOT BE USED FOR DESIGN. Meeting Packet Page 233 of 296 Meeting Packet Page 234 of 296 Meeting Packet Page 235 of 296 Meeting Packet Page 236 of 296 Meeting Packet Page 237 of 296 Meeting Packet Page 238 of 296 Meeting Packet Page 239 of 296 ULL TION QUAN ES AVE H = 190 AVE = 8,766 T= PUBLIC WORKS FY2027 FUTURE PAVEMENT IMPROVEMENTS NOTES: BARNES DR TREATMENT LEGEND SLURRY SEAL SURFACE TREATMENT MILL & OVERLAY FULL DEPTH RECONSTRUCTION N w ♦E s MAP NOT TO SCALE PAVEMENT SELECTIONS, APPROXIMATE QUANTITIES AND APPROXIMATE PRICING BASED ON ROADWAY ASSET SERVICES 2026 PowerBI "FOUNTAIN HILLS AZ FY27 ANALYSIS REV 2" DATED 7 /23/26 THIS TOPO/AERIAL MAPPING IS SUITABLE FOR GENERAL PLANNING PURPOSES, BUT SHOULD NOT BE USED FOR DESIGN. Meeting Packet Page 240 of 296 Presented by Jeff Pierce, Public Works Streets Superintendent Town Council Meeting September 1, 2026 Town of Fountain Hills FY27 Pavement Management Meeting Packet Page 241 of 296 p/o Montrose Dr Westminster Pl Newmarket Ct Springmont Dr Hyde Park Pl Stancrest Dr Wendover Dr Coventry Cir Midland Dr Keymar Dr Roads Currently Underway - Approved for Priority Treatment in FY27 Council Approved on February 3, 2026 – Cost: $3.4M Peachtree Ln Pelican Dr Silver Hawk Ct Bluejay Pl Mayflower Dr Bradford Dr Tamarack Ln Tanglewood Ct Palmetto Ln Shagbark Ct Brunswick Dr Meeting Packet Page 242 of 296 Meeting Packet Page 243 of 296 Meeting Packet Page 244 of 296 Meeting Packet Page 245 of 296 Meeting Packet Page 246 of 296 Meeting Packet Page 247 of 296 Meeting Packet Page 248 of 296 Meeting Packet Page 249 of 296 Meeting Packet Page 250 of 296 Meeting Packet Page 251 of 296 Meeting Packet Page 252 of 296 Meeting Packet Page 253 of 296 Meeting Packet Page 254 of 296 Meeting Packet Page 255 of 296 Meeting Packet Page 256 of 296 Meeting Packet Page 257 of 296 Meeting Packet Page 258 of 296 Meeting Packet Page 259 of 296 ITEM 9.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 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: Ratifying the Town Manager’s emergency authorization and necessary budget transfers for the purchase and installation of a replacement pump for the Panorama Drive Storm Drain Channel pump-back system from Laveen Pump Company. Staff Summary (background) The Panorama Drive Storm Drain Channel, located south of El Lago Boulevard, was originally constructed in 1988, prior to the Town’s incorporation. The channel was constructed by MCO Properties as part of the Puerto Del Lago off-site improvements. As part of a Council-approved Capital Improvement Project, a new pump system was designed and installed in 2022 to improve the Town’s ability to manage surface water and stormwater within the Panorama Drive Storm Drain Channel. The project included upgraded electrical service and a variable-speed controller intended to improve the reliability and efficiency of the pump system. The pump installed as part of the capital project was designed to operate on 480-volt electrical service. However, implementation of the preferred electrical-service configuration has been delayed because Salt River Project has been unable to obtain the necessary easement from a nearby property owners’ association adjacent to the roadway. Without that easement, the Town would have been unable to complete the electrical improvements as originally planned. In the interim, the pump system has experienced significant operational challenges and costly failures, with repair expenses exceeding $50,000. These failures have reduced the Town’s ability to consistently capture and pump water from the channel to Fountain Park Lake. When the system is not operating effectively, water can bypass the pump system and continue downstream toward the Fort McDowell Yavapai Nation reservation lands. The Fort McDowell Yavapai Nation Tribal Council has formally addressed this issue through joint Council discussions and, most recently, through the adoption of Resolution No. Ft. McD. 2025-34. The resolution reaffirms the Nation’s longstanding opposition to discharges of water onto or through reservation lands when those discharges result from human activity or modification of the physical landscape. The resolution identifies potential impacts including the movement of sediment and contaminants, garbage and debris, standing water, mosquito- related concerns, and other adverse conditions. Staff originally anticipated presenting the replacement pump purchase to the Town Council in Meeting Packet Page 260 of 296 June 2026, prior to the Council’s summer recess. However, procurement, supply, and installation considerations delayed finalization of the proposed purchase and installation. During the summer, the conditions at the site became more urgent. Town staff observed federal representatives at the location reviewing downstream water flows onto Fort McDowell Yavapai Nation lands. Based on the information available to the Town from two independent waste analysts and two professional engineers, the flows were determined to include a combination of naturally occurring surface water and reclaimed water associated with irrigation activities at Panorama Park. The resulting discharge raised additional concerns regarding compliance with the Clean Water Act and reinforced the need to promptly restore reliable operation of the Town’s pump system. Given the ongoing downstream flows, the concerns raised by the Fort McDowell Yavapai Nation, the regulatory implications associated with the discharge, and the need to address environmental impacts, the Town Manager, following legal review and discussion, determined that delaying the pump replacement until the Council reconvened would not be in the Town’s best interest. The Town Manager therefore authorized the purchase and installation of the replacement pump pursuant to the Town’s emergency and public-health purchasing authority. The replacement is intended to restore reliable operation of the Panorama Drive pump system, improve the Town’s ability to capture and convey water to Fountain Park Lake, reduce standing and stagnant water conditions, address nuisance and public-health concerns, and minimize the potential for continued downstream flows onto Fort McDowell Yavapai Nation lands. The agreement is being presented to the Town Council at tonight's meeting for formal ratification and codification of the Town Manager’s emergency authorization and the associated purchase and installation. Below are the three bids staff received for the replacement. Laveen Pump Company submitted the lowest bid in the amount of $87,703.35. Laveen Pump Company has provided repairs and service at this location for more than 30 years, both for the Town and, prior to incorporation, for the Fountain Hills Sanitary District. The company is familiar with the pump-back system, site conditions, and operational history. Vendor Universal Drilling, Inc. Copper State Pump & Well Service Laveen Pump Company Bid Amount $133,374.00 $132,904.00 $87,703.35 The Vendor will also build a required enclosure around the pump for resident safety reasons. These purchases were not included in the FY2027 Adopted Budget, and will necessitate a transfer of budget authority from the General Fund contingency into the Environmental Program cost center within the Public Works Department budget in the General Fund. Staff is requesting a budget transfer of $95,000 to accommodate all costs associated with the new Meeting Packet Page 261 of 296 pump and enclosure. Related Ordinance, Policy or Guiding Principle This item is consistent with the Town’s Storm Water Management Plan, AZPDES Small MS4 permit obligations, Town Code Section 14-7 relating to stormwater pollution prevention, and the Town’s Strategic Plan goals to maintain reliable public infrastructure, protect public health and safety, and enhance quality of life Risk Analysis Failure to replace the pump would increase the risk of continued system failures, standing and stagnant water, nuisance and mosquito-related concerns, and continued downstream flows toward the Fort McDowell Yavapai Nation reservation lands. Continued system failures could also increase environmental, regulatory, intergovernmental, reputational, and financial risks to the Town, particularly in light of the Nation’s formal opposition to such discharges and concerns regarding potential Clean Water Act compliance. Although the pump replacement does not resolve the longer-term limitations associated with the preferred electrical service configuration, it is necessary to restore reliable operation of the system, reduce stagnant water conditions, improve the Town’s ability to manage surface and reclaimed water flows, and minimize the potential for continued downstream discharges. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends that the Town Council ratify and approve the Town Manager’s emergency authorization and necessary budget transfers in the amount of $95,000 for the purchase and installation of the replacement pump and enclosure for the Panorama Drive Storm Drain Channel and authorize the Mayor and Town Manager to execute any related agreements and documents necessary to complete the project. Suggested Motion MOVE TO RATIFY AND APPROVE the Town Manager’s emergency authorization for the purchase and installation of a replacement pump and enclosure for the Panorama Drive Storm Drain Channel pump-back system from Laveen Pump Company, in an amount not to exceed $95,000, and authorize the Town Manager or designee to execute all necessary budget authority transfers, documents and take any actions necessary to complete the purchase and installation. FISCAL IMPACT Fiscal Impact: $95,000 Budget Reference: Adopted FY27 budget Funding Source: General Fund - Public Works Department, Environmental Program cost center ATTACHMENTS 1. COPPER STATE PUMP QUOTE 2. UNIVERSAL DRILLING INC QUOTE 3. Estimate Laveen Pump Co 4. SRP EASEMENT Meeting Packet Page 262 of 296 ESTIMATE Date 3/17/2026 ESTIMATE 506 CUSTOMER Town of Fountain Hills Mark Mayer 16705 E. Ave of the Fountains Fountain Hills, AZ.85268 Project Total Copper State Pump & Well Service Taylor Roberts 928.232.0026 www.copperstatepump@gmail.com PO Box 1027 Wickenburg, AZ 85358 contractors License #'s 195223 Description Quantity Rate AmountItem Mine tuff MT19 Estimate 250-300 GPM at clients provided head. 3-5 week delivery. 1 31,500.00 31,500.00TPump System LABOR: Pull existing Pump and install new pump using client existing product and controls 1 3,750.00 3,750.00Pump System Sales Tax 6.30% 1,984.50 $37,234.50 Meeting Packet Page 263 of 296 ESTIMATE Date 3/17/2026 ESTIMATE 505 CUSTOMER Town of Fountain Hills Project Total Copper State Pump & Well Service Taylor Roberts 928.232.0026 www.copperstatepump@gmail.com PO Box 1027 Wickenburg, AZ 85358 contractors License #'s 195223 Description Quantity Rate AmountItem Pump Configuration: Complete Pump, NSF Certified: No COS 300 GPM x 110@1775 RPM (Bowl Performance) Total Pump: 216(in) Model: Open Line Shaft (OLS)- SM9M-2 w/colletid impellers. Suction: 10" Integral Bell Strainer Standard Basket. Column Std. Duty SP16" Sch40/0.28wall 60" STD Section Length. Line Shaft 1 1/4" -10tpi LH 10" stick up Head SL w/SL-6-10.12BD 150# ANSI RF Slip-on for VHS Driver w/Mech. Seal Assembly. Standard Base foundation Plate Motor: VHS 15HP TEFC 1775RPM CD Dimension (in) 22.94 BX Dimension (in) 1.25, Motor BD Diameter 10. 3p/460v/60Hz. NRR Nidec Catalog #CHT15V2BLE. Nidec Model #FU28, 1 1/2" BX w/steady bushing. 81,500.00 81,500.00TPump System Labor to install. Lead time 12-15 weeks. 8,500.00 8,500.00TPump System Prices for above items only any additional work or materials is T&M Sales Tax 6.30% 5,670.00 $95,670.00 Meeting Packet Page 264 of 296 Meeting Packet Page 265 of 296 Meeting Packet Page 266 of 296 Laveen Pump Co PO Box 5932 Goodyear, AZ 85338 US 623-386-3600 laveenpumpco@gmail.com Estimate ADDRESS Town of Fountain Hills Attn: Justin 16705 E. Ave of the Fountains Fountain Hills, AZ.85268 ESTIMATE #DATE EXPIRATION DATE 1254 06/11/2026 06/16/2026 DATE ACTIVITY DESCRIPTION QTY RATE AMOUNT parts Pump Configuration: Complete Pump, FW10KC-2 Short Set 216" TPL Short Set, TPC 6-280-5-B Column 6X280X5 Butt GRN T&C, WLS06X250304SS WI Spider 6" X2.5" 304SS, WLI1188X200-VES Insert 1-3/16X2" HUB V Esconite, BS416SS 1-3/16" -PSQ Bar Stock 1 3/16" 416SSPSQ RL Shaft, TSC119X10-SS 1 3/16" Shaft Coupling 10"T 416SS 1 5/8"X3- 1/2", TDH-FW6W/L1.188-LP 4 6SS HS ASSY,T1SF10KCW/L6X^ 304 IMP CPLG, TASFW10KC ADD STG 304 IMPTSBM06SS 6" Male NPT SS Basket Strainer, 15HPMotor MTTUSHO15P2BLNEN10VHS 1800 RPM, Sloe Plate 24"X24", Additional surface piping and electrical. 1 75,450.00 75,450.00T Labor Labor to install. Lead time 4/5 weeks. 1 7,500.00 7,500.00 Prices for above items only any additional is T&M. Using clients existing VFD and water line to ty in. SUBTOTAL 82,950.00 TAX (6.3%) 4,753.35 TOTAL $87,703.35 Accepted By Accepted Date Meeting Packet Page 267 of 296 Page 1 of 4 WHEN RECORDED MAIL TO: SALT RIVER PROJECT Land Department/PAB10W P. O. Box 52025 Phoenix, Arizona 85072-2025 EXEMPT PURSUANT TO A.R.S. §§ 11-1134(A)(2) and (A)(3) OVERHEAD AND UNDERGROUND POWER DISTRIBUTION EASEMENT Maricopa County R/W # Agt. CLB Parcel # 176-06-777 Job # LJ90455 / T3458923 / SE ¼, SEC. 14, T03N, R06E W CLB C _______ MORNINGSIDE AT LAKESIDE VILLAGE HOMEOWNERS ASSOCIATION, an Arizona nonprofit corporation hereinafter called Grantor, for and in consideration of the sum of Ten Dollars, and other valuable consideration, receipt and sufficiency of which are hereby acknowledged, does hereby grant and convey to SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, an agricultural improvement district organized and existing under the laws of the State of Arizona, and its successors and assigns, hereinafter called Grantee, for use by Grantee and Grantee’s employees, contractors, licensees, and invitees, a non-exclusive easement to construct, install, reconstruct, replace, remove, repair, operate and maintain a line of poles with wires suspended thereon, conduits and conductors, transformers, and all necessary and proper guys, anchorage, crossarms, braces, underground electrical conduits and conductors, pipes, cables, switching equipment, transformers, pad-mounted equipment, enclosures, manholes, vaults, and all other appliances, appurtenances and fixtures (collectively, “Facilities”) for the transmission and distribution of electricity, communication signals and data, and for all other purposes connected therewith at such locations and elevations, in, upon, over, under, across, through and along the Easement Parcel (defined below), as Grantee may now or hereafter deem convenient or necessary from time to time, together with the right of access to and from the Easement Parcel, over, across, through and along Grantor’s Property (defined below) (collectively, the “Easement”). Grantee is hereby authorized to permit others to use the Easement for additional Facilities jointly with or separately from the Grantee for their purposes. The lands in, upon, over, under, across, through and along which the Easement is granted are situated in the County of Maricopa, State of Arizona, and are more particularly described as: JEP Meeting Packet Page 268 of 296 Page 2 of 4 Grantor's Property: A portion of the Southeast quarter of Section 14, Township 03 North, Range 06 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, being more particularly described in SPECIAL WARRANTY DEED Instrument 2024-0483602 records of Maricopa County, Arizona. Easement Parcel: See Exhibit “A” Attached Hereto and Made a Part Hereof. CAUTION: Facilities placed within the Easement Parcel may contain high voltage electrical equipment. Notice is hereby given that the location of underground electrical conductors or facilities must be verified as required by Arizona Revised Statutes, Section 40-360.21, et. seq., Arizona Blue Stake Law, prior to any excavation. Notice is also hereby given that any activity performed within the Easement Parcel shall comply with the Arizona Overhead Powerline Safety Law, Arizona Revised Statutes 40-360.41-45. The Easement is governed by the following terms and conditions: 1. Modification of Easement Parcel. Grantor acknowledges that field conditions may result in the Facilities being installed within Grantor’s Property in a location that is not within the Easement Parcel. Promptly after discovering the construction or installation of any Facilities outside of the Easement Parcel, Grantee shall obtain Grantor’s agreement with and execution of an amendment to this Easement, modifying the legal description of the Easement Parcel to reflect the actual location of the Facilities (the “Amendment”). Upon the recordation of the Amendment, such revised legal description shall have the same force and effect, and create the same priority of interest, as if recorded concurrently with this instrument. Grantor may consent to the execution and recordation of the Amendment through the exercise of its sole discretion. 2. Prohibited Activities. Grantor shall not, whether directly or indirectly by granting permission, construct, install or place any building or other structure, plant any trees, drill any wells, store materials of any kind, or alter the ground level, within the Easement Parcel. This paragraph 2 does not prohibit the use of the Easement Parcel for such purposes as landscaping (except trees), paved parking, sidewalks and/or driveways, provided that such use is otherwise in accordance with the terms of this Easement, and does not interfere with the efficient operation and maintenance of the Facilities, including access thereto. To obtain clarification as to whether or not a particular construction activity is prohibited by the first sentence of this paragraph 2, Grantor may request Grantee’s prior written approval to grade or install improvements (“Work”) within the Easement Parcel by submitting all construction, grading, or other development plans, as applicable, describing the proposed Work. Grantee may grant or deny such approval through the exercise of Grantee’s sole discretion, provided that Grantee’s review and right to approve shall be limited to whether the proposed Work conflicts with the existing Facilities, including access thereto. Any such approval is hereby subject to Grantor complying with all other provisions of this Easement. 3. Clear Areas. Grantor shall maintain a clear area that extends 3.00 feet from and around all edges of all transformer pads and other equipment pads, and a clear area that extends 12.00 feet immediately in front of all transformer and other equipment openings (“Clear Areas”). No improvements, fixtures, trees, shrubs, or other obstructions shall be placed within the Clear Areas. Grantee shall have the right (but not the obligation) to remove any obstructions within the Clear Areas. Meeting Packet Page 269 of 296 Page 3 of 4 4. Additional Grantee Rights. Grantee shall have the right (but not the obligation) to trim, cut and clear away trees, brush or other vegetation on, or which encroaches into, the Easement Parcel or the Clear Areas, whenever in its judgment the same shall be necessary for the convenient and safe exercise of the rights herein granted. Grantor agrees that any fences or walls which now cross or hereafter cross Grantor’s Property will not prevent Grantee’s access to the Easement Parcel or the Facilities. Grantor further agrees that Grantee can use gates on all such fences or walls for such access. 5. Perpetual Nature of Easement. The Easement, and Grantee’s rights hereunder, shall be perpetual, and shall not terminate until, and unless abandoned through the recordation of a document formally abandoning the Easement, which references this instrument and is executed and acknowledge by Grantee. Upon such recordation, all Grantee's rights hereunder shall cease, except the right to remove any and all property placed upon the Easement Parcel within a reasonable time subsequent to such abandonment. 6. Successors and Assigns. The benefits and burdens, and the covenants and agreements herein set forth shall run with and burden the land and shall extend and inure in favor and to the benefit of, and shall be binding on Grantor and Grantee and their successors and assigns. 7. Rights and Remedies Cumulative. The rights and remedies hereunder are cumulative, and the exercise of any one or more of such rights or remedies shall not preclude the exercise, at the same or different times, of any other right or remedy available. 8. Private Use. The provisions of this instrument are not intended to and do not constitute a public utility easement, or any other grant, dedication, or conveyance for public use of the Easement Parcel. 9. Warranty of Title. Grantor represents and warrants that: (i) fee simple title to the Grantor’s Property and Easement Parcel is vested in Grantor, and (ii) Grantor has full power and authority to grant the Easement and to perform its obligations under this instrument. 10. Authority to Bind Grantor. The individual executing this instrument represents and warrants: (i) that he or she is authorized to do so on behalf of Grantor; and (ii) that he or she has full legal power and authority to bind Grantor in accordance with the terms herein and, if necessary, has obtained all required consents or delegations of such power and authority (whether from any partner, owner, spouse, shareholder, director, member, manager, creditor, investor, developer, governmental authority, judicial or administrative body, association, or other person or entity). REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Meeting Packet Page 270 of 296 Page 4 of 4 IN WITNESS WHEREOF, MORNINGSIDE AT LAKESIDE VILLAGE HOMEOWNERS ASSOCIATION, an Arizona nonprofit corporation, corporation, has caused its name to be executed by its duly authorized representative(s), this ______ day of ________________, ________. MORNINGSIDE AT LAKESIDE VILLAGE HOMEOWNERS ASSOCIATION, an Arizona nonprofit corporation By ___________________________________ Its ___________________________________ By ___________________________________ Its ___________________________________ STATE OF ___________________ ) ) ss COUNTY OF _________________ ) The foregoing instrument was acknowledged before me this ____ day of __________, _______ by ________________________________________________________________________________ and ______________________________________________________________________________, as _____________________ and ________________________, respectively, of MORNINGSIDE AT LAKESIDE VILLAGE HOMEOWNERS ASSOCIATION, an Arizona nonprofit corporation, on behalf of such corporation. __________________________________ Notary Public My Commission Expires: _________________________ _________________________ Notary Stamp/Seal Legal Approved Form 03.10.2023_mcm Meeting Packet Page 271 of 296 EXHIBIT “A” SRP JOB NUMBER: T3458923 DATE: 09-17-2024 SRP JOB NAME: PANORAMA DR PU REVAMP PAGE: 1 OF 3 SECTION 14, TOWNSHIP 3N, RANGE 6E AN EASEMENT WITHIN A PARCEL OF LAND AS DESCRIBED IN DOCUMENT 2024-0483602 MARICOPA COUNTY RECORDER (MCR), BEING A PORTION OF PARCEL “A” OF ”MORNINGSIDE AT LAKESIDE VILLAGE” AS SHOWN IN BOOK 318 OF MAPS, PAGE 44, MARICOPA COUNTY RECORDER (MCR), LOCATED IN THE SOUTHEAST QUARTER OF SECTION 14, TOWNSHIP 3 NORTH, RANGE 6 EAST, OF THE GILA AND SALT RIVER MERIDIAN, MARICOPA COUNTY, ARIZONA, BEING 8.00 FEET IN WIDTH, LYING 4.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE; COMMENCING AT THE SOUTHWEST CORNER OF GENERAL LAND OFFICE (GLO) LOT 8 OF SAID SECTION 14, BEING A GLO BRASS CAP STAMPED “CC”, FROM WHICH THE SOUTHEAST CORNER OF SAID SECTION 14, BEING A GLO BRASS CAP, BEARS NORTH 89 DEGREES 42 MINUTES 12 SECONDS EAST, A DISTANCE OF 1190.19 FEET (BASIS OF BEARING); THENCE NORTH 59 DEGREES 42 MINUTES 27 SECONDS WEST, A DISTANCE OF 1348.15 FEET TO AN EXISTING POWER POLE; THENCE NORTH 58 DEGREES 30 MINUTES 19 SECONDS WEST, A DISTANCE OF 20.22 FEET TO THE CENTERLINE OF A SALT RIVER PROJECT (SRP) EASEMENT RECORDED IN DOCKET 9317, PAGE 390 MCR, AND A MID-SPAN TAP BEING PART OF THIS EASEMENT, SAID POINT BEING THE POINT OF BEGINNING; THENCE NORTH 29 DEGREES 42 MINUTES 19 SECONDS EAST, A DISTANCE OF 29.23 FEET TO A POWER POLE BEING A PART OF THIS EASEMENT; THENCE NORTH 72 DEGREES 04 MINUTES 23 SECONDS WEST, A DISTANCE OF 39.69 FEET TO A POINT IN AN EQUIPMENT PAD BEING 7.50 FEET BY 5.50 FEET AND BEING A PART OF THIS EASEMENT; THENCE CONTINUING, NORTH 72 DEGREES 04 MINUTES 23 SECONDS WEST, A DISTANCE OF 4.05 FEET TO THE WEST LINE OF SAID PARCEL “A” AND THE POINT OF TERMINUS; SAID EASEMENT CONTAINS AN AREA OF 584 SQUARE FEET, OR 0.013 ACRE(S), MORE OR LESS. SIDELINES BEING LENGTHENED OR SHORTENED TO FORM VERTICES AT ALL ANGLE POINTS AND TO TERMINATE AT ALL REFERENCED EXISTING PARCEL AND EASEMENT LINES WHICH PASS THROUGH A POINT OF TERMINUS OR BEGINNING. END OF DESCRIPTION 09/26/2024 Meeting Packet Page 272 of 296 COORDINATE SYSTEM. LOW DISTORTION PROJECTION BASED ON THE MARICOPA COUNTY BASIS OF BEARINGS: SITE EXHIBIT "A" ABBREVIATION TABLE NOTES CAUTION LAW, PRIOR TO ANY EXCAVATION. SEQ., ARIZONA BLUE STAKE STATUTES, SECTION 40-380.21, ET. REQUIRED BY ARIZONA REVISED FACILITIES MUST BE VERIFIED AS ELECTRICAL CONDUCTORS OR LOCATION OF UNDERGROUND NOTICE IS HEREBY GIVEN THAT THE VOLTAGE ELECTRICAL EQUIPMENT, DELINEATED MAY CONTAIN HIGH THE EASEMENT LOCATION AS HEREON AN ARIZONA BOUNDARY SURVEY. BOUNDARIES SHOWN. THIS IS NOT VERIFY THE LOCATION OF ANY NO ATTEMPT HAS BEEN MADE TO FROM RECORD INFORMATION, AND PARCELS SHOWN WERE PLOTTED ACCOMPANY AN EASEMENT. ALL THIS EXHIBIT IS INTENDED TO UNLESS OTHERWISE NOTED. OF THE EQUIPMENT PAD ARE MEASURED TO THE WINDOW ALL ELECTRIC LINES SHOWN 14 BOU LE VA RD S AG U A RO G&SRM T3N, R6E VICINITY MAP (NTS) I ND I AN RE S ERVAT I ON F ORT MCDO WEL L LEGEND MID SPAN TAP POWER POLE ARE PART OF THIS EASEMENT EQUIPMENT PAD(S) - 7.50'x 5.50' SECTION CORNER AS NOTED TIE LINE CENTERLINE OF EXISTING EASEMENT DOCKET 9317 PAGE 390 MCR CENTERLINE OF 8' EASEMENT (AERIAL) CENTERLINE OF 8' EASEMENT (UNDERGROUND) PROPERTY LINE SECTION AND CENTERLINE AGENT: BALTRUS DRAWN: BARNES CHECKED BY: SCALE: SHEET: 2 OF 2 REVISION: SHEET SIZE:8.5"x11" LAND DEPARTMENT SURVEY DIVISION AGRICULTURAL IMPROVEMENT & POWER DISTRICT SALT RIVER PROJECT NTS SRP LDWR NUMBER: NA I.O. NUMBER: T3458923 DATE: 09-17-2024 CREW CHIEF: MILLER FIELD DATE: 04-08-2024 15.2 NORTH - 34.5 EAST T.3 N., R.6 E SE 1/4, SECTION 14 PANORAMA DR PU REVAMP DRIVE PANORAMA POT POINT OF TERMINUS POB POINT OF BEGINNING NTS NOT TO SCALE LVI LAST VISUAL INSPECTION (M) MEASURED MCR MARICOPA COUNTY RECORDER GLO GENERAL LAND OFFICE FND FOUND EPAD ELECTRICAL EQUIPMENT PAD BC BRASS CAP APN ASSESSOR'S PARCEL NUMBER 3 09/26/2024 JEP Meeting Packet Page 273 of 296 EXHIBIT "A" N NORTH DETAIL "A" - NTS N 72 ° 04' 23 "W 43 . 74' 39 . 69' D= 20°49'26" L= 233.33' R= 642.00' 4.05' 1 8 5 . 1 7 ' N29 °42 '19 "E 29 .23 ' L = 2 3 3 . 3 3 ' 20.22' (TIE) N58°30'19"W 1348.15' (TIE) N59°42'27"W N 59 ° 42' 27 " W 134 8 . 15' ( TI E) POWER POLE EXISTING POWER POLE SEE DETAIL "A" P AN O RAMA DRI VE EPAD P-1520 B OO K 318 PAG E 44 M CR PA RC EL " A" LVI 5-14-2008 FND GLO BC SECTION 14 SOUTHEAST CORNER 4 8 . 1 6 ' AGENT: BALTRUS DRAWN: BARNES CHECKED BY: SCALE: SHEET: 3 OF 3 REVISION: SHEET SIZE:8.5"x11" LAND DEPARTMENT SURVEY DIVISION AGRICULTURAL IMPROVEMENT & POWER DISTRICT SALT RIVER PROJECT NTS SRP LDWR NUMBER: NA I.O. NUMBER: T3458923 DATE: 09-17-2024 CREW CHIEF: MILLER FIELD DATE: 04-08-2024 15.2 NORTH - 34.5 EAST T.3 N., R.6 E SE 1/4, SECTION 14 PANORAMA DR PU REVAMP A PO R TI ON O F 202 4 - 048 3 6 0 2 M CR A PN 176 - 06- 777 POINT OF COMMENCEMENT POB S 0 6 ° 1 9 ' 1 2 " W 5 3 1 . 6 3 ' (BASIS OF BEARING) N89°42'12"E 1190.19' (M) POT 0.013 ACRES 584 SQUARE FEET EASEMENT AREA: LVI 5-11-2012 FND GLO BC STAMPED "CC" GLO LOT 8 OF SECTION 14 SOUTHWEST CORNER OF LVI 5-11-2012 FND GLO BC STAMPED "WC" SECTION 14 CORNER 20 1/2 M JEP Meeting Packet Page 274 of 296 ITEM 9.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 Meeting Type: Town Council Regular 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) DISCUSSION AND POSSIBLE DIRECTION: Regarding amendments to the Town Code, Sections 10-2-8 and 10-2-9, relating to handbills. Staff Summary (background) Summary This item seeks Council direction regarding amendments to the Town’s regulations governing the distribution of handbills. The current Town Code distinguishes between commercial and noncommercial handbills in certain circumstances and contains conflicting provisions regarding distribution on private property. Staff recommends eliminating the commercial/noncommercial distinction to address First Amendment concerns and create consistent regulations. The primary policy question for Council is whether handbills should be permitted to be left at private residences when they are secured to the property, or whether handbills should only be distributed when accepted by a person. Following Council direction, staff will prepare an ordinance amendment for future Council consideration. Background Chapter 10 of the Town Code addresses health and sanitation, including regulations intended to reduce litter. Article 10-2, “Litter; Nuisances,” contains two sections regulating the distribution of handbills: • Section 10-2-8 – Handbills on public property • Section 10-2-9 – Handbills on private property Last spring, concerns were raised regarding provisions that treat commercial and noncommercial handbills differently. Staff reviewed the existing language and identified both First Amendment concerns and inconsistencies within the current regulations. Public Property – Section 10-2-8 The current Code prohibits throwing or leaving any handbill, whether commercial or noncommercial, on sidewalks, streets, or other public property. However, it allows a person to hand a noncommercial handbill directly to someone who agrees to accept it, while prohibiting the same distribution of a commercial handbill. This distinction raises First Amendment concerns because the regulation treats speech differently based on whether it is commercial or noncommercial. Staff recommends eliminating that distinction so the regulation applies consistently to all handbills. Meeting Packet Page 275 of 296 Private Property – Section 10-2-9 Most provisions governing handbills on private property apply equally to commercial and noncommercial materials. However, subsections D and E create conflicting requirements. Subsection D allows both commercial and noncommercial handbills to be left at an inhabited property when they are secured in a manner that prevents them from becoming litter. Subsection E, however, prohibits commercial handbills from being distributed unless they are accepted by a person at the property. These provisions are inconsistent and again distinguish between commercial and noncommercial speech. Council Direction Requested Staff recommends removing all distinctions between commercial and noncommercial handbills. Council direction is requested on the remaining policy question: Should handbills be allowed to be left at private property when appropriately secured, or should handbills only be distributed when accepted by a person at the property? In considering this question, staff notes both litter and public safety concerns associated with materials being left unattended at residences. Based on Council direction, staff will prepare revised ordinance language and return to Council for formal consideration. Related Ordinance, Policy or Guiding Principle Town Code Sections 10-2-8 and 10-2-9. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends removing the distinction between commercial and noncommercial handbills and is seeking direction on how to address handbills being left on private property. Suggested Motion Staff is looking for consensus direction on how to proceed with a text amendment. When that is prepared it will be brought back for Council action. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Fountain Hills Town Code Section 10-2-1 2. Fountain Hills Town Code Section 10-2-8 3. Fountain Hills Town Code Section 10-2-9 Meeting Packet Page 276 of 296 Section 10-2-1 Definitions In this article, unless the context otherwise requires: A. “Aircraft” means any contrivance now known or hereafter invented, used or designed for navigation or for flight in the air, and includes, but is not limited to, helicopters and lighter-than-air dirigibles and balloons. B. “Animal” means any and all types of animals, both domestic and wild, male and female, singular and plural. C. “Authorized private receptacle” means a litter storage and collection receptacle as required and authorized in this article. D. “Commercial Handbill” means any printed or written matter, any sample or device, circular, leaflet, pamphlet, paper, booklet, or any other printed, or otherwise reproduced original or copies of any matter or literature: 1. Which is not defined as in this chapter as either a newspaper or a noncommercial handbill; and 2. Which advertises for sale any merchandise, product, commodity, or thing; or 3. Which directs attention to any business or mercantile or commercial establishment, or other activity, for the purpose of either directly or indirectly promoting the interests thereof by sales; or 4. Which directs attention to or advertises any meeting, theatrical performance, exhibition, or event of any kind, for which an admission fee is charged or a collection is taken up for the purpose of defraying the expenses incident to such meeting, theatrical performance, exhibition, or event of any kind, when in either of the same is held, given or takes place in connection with the dissemination of information which is not restricted under the ordinary rules of decency, good morals, public peace, safety and good order. Nothing contained in this clause shall be derived to authorize the holding, giving or taking place of any meeting, theatrical performance, exhibition, or event of any kind without a license, where such license is or may be required by any law of this state, or under any ordinance of this Town; or 5. Which, while containing reading matter other than advertising matter, is predominantly and essentially an advertisement, and is distributed or circulated for advertising purposes, or for the private benefit and gain of any person so engaged as advertiser or distributor. E. “Developed property” means occupied real property, which has been altered from its natural state by the creation or addition of any buildings, structures, pavement, or other improvements. F. “Fowl” means any and all fowl, domesticated and wild, male and female, singular and plural. G. “Garbage” means putrescible animal and vegetable wastes, resulting from the handling, preparation, cooking and consumption of food. Art. 10-2 Litter; Nuisances | Fountain Hills Town Code Page 1 of 3 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Meeting Packet Page 277 of 296 H. “Landscaped area” means an exterior improvement or change of land through replacement of native vegetation or addition of artificial topping material including, but not limited to, landscape gravel, stones, or boulders, or a combination of new vegetation and artificial topping material. I. “Litter” means garbage, refuse and rubbish and all other waste material which, if thrown or deposited in a manner prohibited by this article, tends to create a danger to public health, safety and welfare, and includes, but not by way of limitation, paper and metal, such as containers or cans. J. “Major repair” means the removal from any vehicle of a major portion thereof, including, but not limited to, the differential, transmission, head, engine block or oil pan. K. “Native vegetation” means naturally occurring plant growth of indigenous origin. L. “Natural desert” means unimproved land with primarily undisturbed native vegetation. Vacant lots are generally considered natural desert, even where previously graded or disturbed. M. “Newspaper” means a publication regularly issued for dissemination of current news, matters of general interest and local happenings at stated short intervals of time whether such publication is distributed by paid subscription or for free. Such publication shall be from a known office of publication and shall bear the dates of issue and shall be numbered consecutively. N. “Noncommercial handbill” means any printed or written matter, any sample or device, circular, leaflet, pamphlet, magazine paper booklet, or any other printed or otherwise reproduced original or copies of any matter or literature not included in the definitions of a commercial handbill or a newspaper. O. “Park” means a park, reservation, playground, recreation center or any other public area in the Town, owned or used by the Town and devoted to public recreation. P. “Private premises” means any dwelling, house, building or other structure designed or used either wholly or in part for private residential purposes, whether inhabited or temporarily or continuously uninhabited or vacant, and includes but is not limited to any yard, grounds, walk, driveway, porch, steps, vestibule or mail box belonging or appurtenant to such dwelling, house, building or other structure. Q. “Public place” means any and all streets, sidewalks, boulevards, alleys or other public ways and any and all public parks, squares, spaces, grounds and buildings. R. “Refuse” means all putrescible and nonputrescible solid wastes, except body wastes, including garbage, rubbish, ashes, street cleanings, dead animals, abandoned, wrecked or junked vehicles or parts thereof and solid market and industrial wastes. S. “Rubbish” means nonputrescible solid wastes consisting of both combustible and noncombustible wastes, such as paper, wrappings, cigarettes, cardboard, metal cans, yard clippings, leaves, metal, wood, glass, bedding, crockery and similar materials. Art. 10-2 Litter; Nuisances | Fountain Hills Town Code Page 2 of 3 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Meeting Packet Page 278 of 296 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Town Code. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Hosted by ICC Code Solutions. T. “Streets or road” means the entire width between the boundary lines of every way publicly maintained when any part thereof is open to the use of the public for purposes of vehicular travel, and includes the whole right-of- way of the public entity maintaining said way, whether such right-of-way is paved or not. U. “Vehicle” means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, including devices used exclusively upon stationary rails or tracks, except for a device propelled solely by human power. V. “Weed” means any native vegetation growing in excess of six inches within a landscaped area in an uncontrolled manner that may reasonably be determined to be detrimental or destructive and difficult to control or eradicate and may spread to adjacent property. Interpretation is the same regardless of whether an owner or occupant regards the vegetation as desirable. (20-20, Amended, 09/15/2020; 98-01, Amended, 01/15/1998) Art. 10-2 Litter; Nuisances | Fountain Hills Town Code Page 3 of 3 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Meeting Packet Page 279 of 296 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Town Code. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Hosted by ICC Code Solutions. Section 10-2-8 Deposit of Commercial Handbills on Public Property No person shall throw or deposit any commercial or noncommercial handbill in or upon any sidewalk, street or other public place within the Town, nor shall any person hand out or distribute or sell any commercial handbill in any public place, but nothing in this section shall be deemed to prohibit any person from handing out or distributing on any sidewalk, street or other place within the Town, without charge to the receiver thereof, any noncommercial handbill to any person willing to accept it. Art. 10-2 Litter; Nuisances | Fountain Hills Town Code Page 1 of 1 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Meeting Packet Page 280 of 296 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Town Code. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Hosted by ICC Code Solutions. Section 10-2-9 Handbills: Commercial and Noncommercial A. No person shall throw or deposit any commercial or noncommercial handbill in or upon any vehicle, but it is not unlawful on any public place for a person to hand out or distribute without charge to the receiver thereof, a noncommercial handbill to any occupant of a vehicle who is willing to accept it. B. No person shall throw or deposit any commercial or noncommercial handbill in or upon any private premises which are known, or should be known, to such person to be temporarily or continuously uninhabited or vacant. C. No person shall throw, deposit or distribute any commercial or noncommercial handbill upon any private premises, if requested by anyone thereon not to do so, or if there is placed on the premises in a conspicuous position near the entrance thereof, a sign bearing the words "No Trespassing", "No Peddlers or Agents", "No Advertisement", or any similar notice, indicating in any manner that the occupants of said premises do not desire to be molested or have their right of privacy disturbed, or to have any handbill left upon such premises. D. No person shall throw, deposit or distribute any commercial or noncommercial handbill in or upon private premises which are inhabited unless the handbill is so placed or deposited as to secure or prevent the handbill from being blown or drifted about the premises or sidewalks, streets or other public places, and except that mailboxes may not be so used when so prohibited by federal postal law or regulations. The provisions of this section shall not apply to the distribution of mail by the United States nor of newspapers as defined by this article. E. No person shall throw, deposit or distribute any commercial handbill in or upon private premises which are inhabited except upon the acceptance thereof, or the express consent therefor, by an occupant of such premises. Art. 10-2 Litter; Nuisances | Fountain Hills Town Code Page 1 of 1 The Fountain Hills Town Code is current through Ordinance 26-11, passed June 16, 2026. Meeting Packet Page 281 of 296 ITEM 9.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 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 2026-04, increasing a stipend up to $750 per month for Council Members and increasing a stipend up to $1,100 per month for the Mayor beginning December 1, 2026. Staff Summary (background) The Town of Fountain Hills Council adopted Resolution 1992-10 in April 1992, first establishing compensation of $300 per month for Council Members and $400 per month for the Mayor. Eight years later, in 2000, the Council adopted Resolution 2000-28, which increased these amounts to $400 per month for Council Members and $600 per month for the Mayor. Town Code, Section 2-1-5 and ARS 9-232.01 allow for the Council to approve increased monthly stipend amounts by resolution. At the May 6, 2025, regular meeting, the Town Council considered a resolution (Resolution 2025-18) to increase stipends for Council Members to $750 per month and for the Mayor to $1,100 per month. Resolution 2025-18 failed by a 3-4 Council vote on that night. However, the Council held further discussion on this matter at the June 17, 2025, regular meeting and at the September 9, 2025, work session discussing staff and council pay adjustments. At those subsequent meetings, several members of the Council expressed interest in revisiting the possibility of increasing Council and Mayor stipends beginning after the 2026 election. Additionally, the Council approved a Council Travel Policy at the September 2, 2025, regular meeting which governs travel reimbursements for any member of the Town Council. Therefore, Town staff are presenting Resolution 2026-04 for Council consideration, which increases stipends for Council Members to $750 per month, and the Mayor to $1,100 per month beginning December 1, 2026 after the new Council is seated. Regardless of the Council's vote on this resolution, another agenda item tonight relates to aligning Council Member and Mayor's stipend adjustments with Town staff pay adjustments approved during the budget process each fiscal year. Related Ordinance, Policy or Guiding Principle Town Code, Section 2-1-5; ARS 9-232.01 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Meeting Packet Page 282 of 296 N/A Suggested Motion MOVE TO approve Resolution 2026-04, proposing increased monthly stipends for the Mayor at $1,100 and Council Members at $750 beginning December 1, 2026 after the new Council is seated, and any necessary budget transfers OR MOVE TO deny Resolution 2026-04, proposing increased monthly stipends for the Mayor and Council Members FISCAL IMPACT Fiscal Impact: $31,200 per year Budget Reference: Mayor & Council Department Funding Source: General Fund ATTACHMENTS 1. Resolution 2026-04 2. Presentation Meeting Packet Page 283 of 296 RESOLUTION 2026-04 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, PURSUANT TO ARIZONA REVISED STATUTES SECTION 9-232.01 AND TOWN CODE 2-1-5 INCREASING A STIPEND UP TO $750 PER MONTH FOR COUNCIL MEMBERS AND INCREASING A STIPEND UP TO $1,100 PER MONTH FOR THE MAYOR NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That on July 6, 2000, the Town Council of the Town of Fountain Hills passed Resolution 2000-28 establishing the current stipends for members of the Council. SECTION 2. That Section 2-1-5 of the Fountain Hills Town Code provides that the stipends paid to the Mayor and Council for service in office shall be fixed from time to time by resolution of the Council. SECTION 3. Pursuant to the authority under both state law and the Town Code, the following stipends are hereby established beginning on December 1, 2026: A. Each Council Member shall receive a stipend of $750 per month, or proportionate portion thereof, served. B. The Mayor shall receive a stipend of $1,100 per month, or proportionate portion thereof, served. The stipends established in this section are in lieu of any other salary or wages and other incidental expenses. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, this 1st day of September 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 284 of 296 Council Base Stipends Resolution 2026-04 Paul Soldinger, Chief Financial Officer September 1, 2026 Meeting Packet Page 285 of 296 Council Base Stipends Background •Mayor & Council compensation first established in April 1992 •$300 per month for Councilmembers •$400 per month for the Mayor •Compensation was adjusted in 2000 to current amounts: •$400 per month for Councilmembers •$600 per month for the Mayor Meeting Packet Page 286 of 296 Council Base Stipends Background •Town Code and ARS 9-232.01 allow for the Council to approve increased compensation by resolution •The Town Council did not approve Resolution 2025-18 (by a 3-4 vote) at the May 6, 2025, regular meeting to increase the amounts to: •$750 per month for Councilmembers •$1,100 per month for the Mayor •The Council held additional conversations on this subject during the June 17, 2025, regular meeting and the September 9, 2025, work session •Several Councilmembers expressed interest in revisiting increasing the base amounts (beginning after the next election) and aligning annual Council pay adjustments with Town staff pay adjustments Meeting Packet Page 287 of 296 Council Base Stipends –Resolution 2026-04 •Resolution 2026-04 revisits the idea of increasing base stipend amounts to the following amounts beginning December 2026: •$750 per month for Councilmembers •$1,100 per month for the Mayor •Another agenda item will discuss aligning annual adjustments with Town staff Meeting Packet Page 288 of 296 Questions & Comments? Meeting Packet Page 289 of 296 ITEM 9.e. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 9/1/2026 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 2026-05, aligning annual Council stipend adjustments with Town staff pay adjustments. Staff Summary (background) Town Code, Section 2-1-5 and ARS 9-232.01 allow for the Council to approve increased monthly stipend amounts by resolution. The Town Council held discussions on this matter at the June 17, 2025, regular meeting and at the September 9, 2025, work session discussing staff and council pay adjustments. At those meetings, several members of the Council expressed interest in aligning annual Council and Mayor stipend adjustments with Town staff pay adjustments approved through each annual budget process. These proposed annual stipend adjustments for the Council would begin in the fiscal year following the new Council being seated in December 2026 (Fiscal Year 2028). Additionally, the Council approved a Council Travel Policy at the September 2, 2025, regular meeting which governs travel reimbursements for any member of the Town Council. Therefore, Town staff drafted Resolution 2026-05 for Council consideration, which provides that the stipends for Council Members and the Mayor would be increased on the effective date and by the same percentage as Council approved salary adjustments (Annual General Adjustment - AGA) for Town employees from and after December 2026. Related Ordinance, Policy or Guiding Principle Town Code, Section 2-1-5; ARS 9-232.01 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A Suggested Motion MOVE TO approve Resolution 2026-05, proposing an annual stipend adjustment for the Mayor and Council Members at the same rate applied to Town staff compensation effective from and after December 2026 OR MOVE TO deny Resolution 2026-05, proposing annual Mayor and Council Member stipend adjustments FISCAL IMPACT Meeting Packet Page 290 of 296 Fiscal Impact: Annual increases would apply to base stipend amounts. Budget Reference: Mayor & Council Department Funding Source: General Fund ATTACHMENTS 1. Resolution 2026-05 2. Presentation Meeting Packet Page 291 of 296 RESOLUTION 2026-05 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, PURSUANT TO ARIZONA REVISED STATUTES SECTION 9-232.01 AND TOWN CODE 2-1-5 ESTABLISHING AN ANNUAL STIPEND ADJUSTMENT FOR COUNCIL MEMBERS AND THE MAYOR AT THE SAME RATE APPLIED TO TOWN STAFF COMPENSATION NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That Section 2-1-5 of the Fountain Hills Town Code provides that the stipends paid to the Mayor and Council for service in office shall be fixed from time to time by resolution of the Council. SECTION 2. The Council approves a final budget for the Town each fiscal year that may include a salary adjustment for all Town employees, except those with individual employment contracts. SECTION 3. Pursuant to the authority under both state law and the Town Code, from and after December 1, 2026, the stipends for Council Members and the Mayor shall be increased on the effective date and by the same percentage as Council approved salary adjustments for all Town employees, except those with individual employment contracts. The stipends and any adjustments to them pursuant to this section are in lieu of any other increased salary or wages and other incidental expenses. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, this 1st day of September 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 292 of 296 Council Stipends Annual Adjustments Resolution 2026-05 Paul Soldinger, Chief Financial Officer September 1, 2026 Meeting Packet Page 293 of 296 Council Annual Adjustments Background •Town Code and ARS 9-232.01 allow for the Council to approve increased compensation by resolution •The Town Council typically approves a Town staff pay Annual General Adjustment (AGA) through the annual budget process. •However, the Council stipends have not received annual adjustments. •The Council held conversations on this subject during the June 17, 2025, regular meeting and the September 9, 2025, work session •Several Councilmembers expressed interest in aligning annual Council pay adjustments with Town staff pay adjustments Meeting Packet Page 294 of 296 Council Annual Adjustments– Resolution 2026-05 •Resolution 2026-05 introduces the idea of aligning annual increases between Council stipends and annual Town staff pay adjustments: •Beginning with the Fiscal Year 2028, Council stipends would be increased by the same percentage as Council-approved salary adjustments for employees Meeting Packet Page 295 of 296 Questions & Comments? Meeting Packet Page 296 of 296