The URL can be used to link to this page

Home My WebLink About2026.0630.TCSM.MINUTES.APPROVEDTaWN ❑F F'�UNTAIN HILLS MIN�TES D�' TNE SPECIAL SE551�N OF THE F�UNTAIN HI�LS TnWN C�UNCIL June 30, 2026 A Spe�ial Meeting �f the Fauntain Hills Tvwn Cvuncil was canven�d at 5:3� p.m. Members Present: Mayor Gerry M. Friedel: Vice Mayor Gayle Earle; Councilmember Rick Wat#s; �auncilmember P�ggy McMahan; Cauncilmember Brer�da J. Kalivianakis; Councilmemioer A41en 5killicvrn Councilmember Hannah Larrabee attended by telephone canference call. 5taff Pres�nt: ❑eputy Town Manager Da�id T�-imble; Town Attarney Jennifer J. Wright; ❑epu#y Town Glerk Angela Padgett-Espiritu �� _�1 o� �� w �� o � I � � �1 z � �� , .� � p � . � �o � e . �■ � �f��hat �s Axlti�� TOUti1N OF FQiJNTAIN HiLLS JlJNE 30, 2426 TQWN CflUNCIL �PECiAL 1NEETIYG EVI�PJu'7ES Post-Praduction File Tawn of Fauntain Hills Tawn Council Spetial Meeting Minutes June 30, 2�25 Transcription Provided 6y: eScribers, LLC **�� Transcription is pra�ided in ❑rder t� facilitate communieation ac�essibility and may not be a tatally �erbatim record af the proceedings. �**** Rage 1 of 22 7D4i1n1 �.'} G�U�V�RiN �iiLlS JJ�iE 3�, ��fi iQWN COUNCIL S�ECi.qL MEEiING MINU7 �S MAY�R FRIEdEL: I'd like to �all this meeting to arder. Wauld you please rise far the Pledge af Allegiance? [Pledge of Allegiance] MAY�R FRIEDEL: I'm going to add something to the agenda today. I'm going to do a special moment ❑f silence. ❑ne �f our business ❑wners passed away t�day, Jil! Keefe from Gaod Li�ing Greens passed away today after same health issues. So feel -- if you choose ta remain standing, we'll take a mament of silence in her honor. Thank you. Town clerk, can I get a roll call, please? ESPIRITLI: Mayar Friede!? MAYDR FRIEQEL: Present. ESPIRITU: Vice Mayar Earle? EARLE: Present. ESPIRITLI: Council Member 5kiljicorn? SKILLICORN: Here. ESPIRII�U: Coun�if Member Kalivianakis? KALIVIANAKIS: Here. ESPIRITU: Coun�il Memher Watts? WATTS: Present. ESPIRITU: Coun�il Member Larrabee? LARRA6EE: Here. ESPIRITLI: Council Member McMahon? MCMANON: Nere. ESPIRITII: We have a quorum. MAYQR FRIEbEL: Thank you. We'll mo�e on ta aur consent agenda. Can I get a mation? MCMAH�N: Motion to appro�e consent agenda as is. MAY�R FRIE�EL: Thank yau. UNIDEI�TIFIEd SREAKER: 5ecand. Page 2 of 22 f�Wl� GF F�iJiVTAIN HiLl.S !:]NE 3fl, t42b TOWN COUNCiL SP�ClAL MEETING M�NUT�S MAY�R FRIE��L: We ha�e a motion and a secand. Can I get a roll call, please, town clerk? ESPIRITU: Caun�il Member Larrabee? LARRABEE: Aye. ESPIRITl1: Caut�cil Member McMahon. MCMAHON: Aye. ESPIRITLI: Cauncil Member Watts? WATTS: Aye. Council Member 5killi�orn? SKILLICDRN: Yes. 53: Coun�il Member Kalivianakis? KALIVIANAKIS: Aye. E5PIRITU: Vi�e Mayor Earle? EA�L�: Aye. ESPIRITU: Mayar Friedei? IVIAYOR FRI EDEL: Aye. E5PlRITU: Motion passes se�en to zero. MAY�R FRI EQEL: Thank yau. We'll m��e on to ❑ur special session regular agenda, and I'm gaing to cal! on ❑ur deputy Town Manager, �av� Trimbl�, with informatian relating to a resofution for a lease an the museum. ❑ave? TRIM6LE: Yep. 5o 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'r� here to talk abaut a praposed iease between the town and the museum. 6efare I get started, as we all know, unfortunate{y, there has been a lot of misinformation surrounding this, and I want t❑ remind everyone that a Icase is a legal document. It's a business document and is not politieal. All right. Backgrauncl. 5a currently we'�e got a 25-year lease between the town and the museum. Rent has been a doilar a month. In totaf, the town's eollected $25. Page 3 of 22 Tr�'u'!fV UF f�L}NTRlN HILLS JUNE 3C�, 2Q2fi TDWN Cf]L1A1�:i, SP�CIy4 M��TINu MiMLITE5 Initially, the town pro�ided $�1Q,�00. And then the town currently als❑ pays for maintenan�e, utilities, and janitorial ser�ices. , As we began ta IooEc at renewing the lease, we had to look at town rer�uirements. And then there's twa things: We need to e�aluate for �ompliance with state law and highest and best use ❑f the town facility. And then additianally, the Arizona gift clause. So there's twa common questions, and one e�erybody's in agreement with; is there a clear purpose? Yes. The museum provides a clear purpose. But the gift elause in the Arizana Constitution does not say "or" it says "and". Is the town re�eiving a fair market va�ue? This got brought up ba�k in No�ember of 2�23 through a council budget workshop. And I do want to thank Council Member Kalivianakis because she k�rought up back then that the tawn needed to err in caution be�ause of the gift clause. 5a I appreciate her wisdom. And �ur then town attorney, Aaron Arneson {ph.y, agreed. We didn`t have all the information that, again, agreed with the �Eear puhlic purpose, but we neede� ta understand the fair market �alue. 5o you'll see several slides hereafter. You'll see we started this way back in 5eptember. I'm not going to go through e�ery milestane, but k�ack in No�emher, the town manager and I did meet with the f�rmer executive directar to just let her know that w� needed to start getting together. VIle needed to start cQllecting informatian ❑n financials, vis[tar data. As again, we loak to analyze the lease. At that time, it was requested if the town could provide aciditional finan�ial suppart, and we did say we cauld not do that in additiorr ta w�at we were already providing. Sa thraugh No�ember a11 the way to January, we were collecting data based on the data we received, and then we're going ta skip over -- we had a council executi�e session. Yau'll see that there's been several. 5a again, we do not negotiate contracts in publi�. It is an executive session. I will provide a friendly reminder that although we're showing the dates, that again, we cannat divulge what has happened in there. But again, in �ecember, the staff received directian ta mo�e forward with nat renewing the lease based �ff flf the data. 7hat was Page 4 of 22 ��a.vN o� �ouNraiN N��s ]UN£ 3U, zU2fi TDWN C�UlVCIi SPECipL MFETlNG M{i�l1TES shared with the former naw board president and executive direct�r by the town manager and me an January 26th. Immediately following an February 3rd, I had a meeting with the Ri�er of Time Museum president, as weRi as the director -- �ormer tiirector -- and they pra�ided a letter whi�h uvas shared ta council where they requested a one-year lease, and a short-term funding plan, which we asked what does that look like far you? Tell me more, which was not gi�en. We're going ta fast-farward again. So on February 24th, we had a public council retreat seeking coun�il dire�tion on how tfl mo�e forward. You can see in the February Z4th counci] meetings, it`s about page 128, if yau dan't wa�t to do all the work, but Mayor Friedel, Council Member lCali�ianakis, a�d Council Memher McMahon were the three that said t❑ pursue with renewing a leas� for one year. We anfy had $ix elected ❑fficials, not the full bady, and unfortunateiy it was very split. And then towards the end, it was Council Member Watts wha recammended loaking towards a business plan. And so as we can�luded that retreat -- so again, it was looking for some cflnsensus, directian, we can't take actian at a cauncil retreat, we then concluded that and said f�ecause i't was �ery mixed fr�m the body -- so again, the council foody, n�t just ane, �an make a decision, that staff would get back t❑ the bfldy and then a�so talk with the museum. Sa four husiness days later -- so yau'il see March 3rd -- I had a hrief ineeting with our town manager, Tawn Manager Gaodwin, and said that I wauld be meeting -- so Mar�h 3rd, if you see attorney economic development dire�tor, but to meet with Attarney Wright because I wanted t❑ prapose an Optian 3. And so again, with negotiations, negatiation doesn't happen at a council level. It is operatianal. Attorney Wright agreed with what I wanted t❑ d�, and about an hour ar two later, I presented Optior� 3 t� the farmer baard president and the current executive director. Page 5 af 22 TQWN QF �Ql1NT1IfIV HILL� JU�4E 3Q� 202b7QWN CGU�'aCIL S?ECIAL MEETfNG Nil�1LIlE5 That was on March 3rd. While they did nat receive the lease that is f�efore yau, and that was included in the attachment, this was, essentially, what was propased on March 3rd. After that, we did receive a husiness plan, but there was ne�er a response to the March 3rd �ptian 3. So helping to determine the public benefit and paying a thousand a month. S4 what has happened all af a sudden? 5a the new directar reached out tawards the end of May and wanted to meet. Unfortunately, I was aut af town visiting my nephew for his graduation. And then subsec{uently the executive directar was out ❑f town. And so we met on June 11th. The director did not let me know what we were meeting about; ane could assume it was the lease, but we fola�ked an haur. And so Jane and I actually spent three-and-a-haEf hours together, caming from a place ❑f understanding of what t�e museum needed, what the town needed, i�ut negotiating and understanding that bath sides may not get exactly what we wanted, but to aperate in goad faith. Following that three-and-a-half hour meeting, ! then had a meeting with our town �lerk and town manager. And so internally, we all knew that taday there was going to be a special meeting. That was not made publi�, but it was an the �ouncil agenda. And so far the public benefit, originally, this was suppased to be a Zoam meeting at 1 p.m. for the license for Quik Burrita. So again, it is our job as staff t❑ be professional, to be forward-thinking, since this was already ❑n the cafendar. It was then looking forward and asking ❑ne, the town manager and the town attarney if we could do this, whiGh is part of the Coun�il Rules �f Procedures. They have the authority to add items to the agenda in case the public did not know that. 5o you'll see, typically, this would happen in 3� or 6� days. But an 5unday, June 14th, the town finally recei�ed a response to our fetter dated back fram April Z8th, wanting again ta move forward. And again, t�ased aff �f Jane's pr�fessiorralism, her already instituting fr�e admission days and demonstrating the publi� benefit, myself as weli as Attorney Wright worked around the cl�ck with Jane ta, essentially, bring you ta a lease. Page 6 of 22 �rowr� oF �autirAinr yii�s 111NE 30, 2�26 TQWf� CO�JIVtiIL 5��ClAL MEfTING MINUTES 5a some cansideratians -- agair�, making sure that we're complying with the law -- is there's a current lease in place that expires August 15th. 5o some�ne had indicated that the lease had lapsed. That is not true. It has not. August 15t#� is the end of it. And s❑ again, we're wanting ta make sure it doesn't lapse. And so the Eease term will be ten- and-a-half months. It'll be 1,��0 a month. But because it's starting mid-O�tober and 5eptember we'll eollect $1,500. T#�e public benefit is free admission days, free programing, and completian of a third- party economic impact analysis. Sa far the public, the town has a partnership with t�e Greater Phaenix Economi� Council, that is the regional e�onomic de�elopment organiiatian. Anci so they assist with this. 5o this is at no cost to the museum ar any additional cost to the tawn. It's appraximately a twa-page document that I will pro�ide ta the director. 5he will input all of it. I wiiE receive it. It is then forwarded ta GPEC, their third-party and their modeling, and we'll get back what that analysis is. And ihen there's, ❑f course, reporting requirements. 5❑ 6oth parties acknowledging that we need ta have more meetings, understand �isitar data, and ther� seeing if the programing is growing. �n June 24th, and then as part ❑f your package, you will see that the museum f�oard ❑f ciirectars appro�ed the iease as drafted. It has Jane's signature. And s❑ staff is respectfully requesting that the coun�il apprave this as written, an� that nQ changes are mad� s❑ we don't have to ga ta the drawing baard, and then t❑ give the stability t�rat the museum needs to continue growing their programs. With that, Mr. Mayor, happy to answer any questions. SKILLICQRIV: Thank you, Mr. Mayor and ❑irector Jacobs. How many members daes the museum have? JAC065: Mr. Mayar, Council Member Skillicorn, I will have t❑ defer that ta the museum directflr. I don't knaw, off the top of my head. SKILLICORN: Okay. Is there a kind of a guess? Is it a dozen? Is it 1fl0? !s it 1,��? JACOB5: We will get back to yau. It's nat -- UNIDENTIFIED SPEAKER: It's about 64Q. Page 7 of 22 ro�n�ti aF FLuN�A��v �i�t.s JIJNE 30, 202n TnWN COU�ICIL SPFCIAL MFETiIVt"i MIIVU'ff5 JAC�BS: 500. 5KlLLICDRN: That'� a good amount. And Mr. Mayor, �irectorJacobs, is there anyon� famous that we might know that's a member? JACOBS: How da we define famous, Council Mem�er Skiili�orn? That I don't -- that I don't knaw, SKILLIC�RN: Nick Wenchell �ph,}, maybe? JAC0B5: That's museum data. SKILLIC�RN: Okay. And then Mr. Mayflr, birector 1a�abs, there was some talEc abaut hours being expanded. Yau know, what are the current hours and what were they before? JAC�65: 5a not an expansion, per se, but last summer, the museum did decide ta be clased. And so this year, they'�e made the decision to remain open; however, at reduGed hours. So it's three hours. And then typically, the regufar hours are from 10 ta 4, anci so that wilf resume in 5e{�tember. SKILLlC�RN: And Mr. Mayor, �irector Jacobs, three haurs a day or -- and then the regular hours it was �0 ta �1; so six haurs? JACDBS: That is carre�t. SK�LLICORN: And it's -- JAC�BS: And it's nat open -- SKILLICORN: -- se�en days a week or -- JACDBS: It is not se�en days a week. UNIDENTIFIED SPEAKER: I'm foaking to Jane. PRZE5LICA: �Indiscernible}. JACDBS: �kay. We will get -- yeah. 5o Jane, if you want yau can came up if you feel comfortable ar -- yeah. 5a we'll get back ta yau, �auncil Member. SKILLICORN: Okay. MAYOR FRIE�EL: Anyk�ody else ha�e any questions? All right. ❑o we ha�e any �omment cards? ESPIRITII: Yes we do, Mayor. The town recei�ed one online comment with the positian Page 8 of 22 Town� a� FouMrA�n� r��L�s 1UAIE 30, 2[f2fi T�UUN �QUIVCIL SPE�IAL 111EETlNi; I�/IifIfU7E5 af faur, and then we have three requests to speak this evening. So the first one up will be Crystal Cavanaugh {ph.}, fallawed k�y Larry Myers �ph.}, follawed by 5helby Blecker [ph.}. CAVANAUGH: Good e�ening. Crystai Ca�anaugh, Fountain l;ills resident. I'll be �ery hr�ef. I am for this type af a plan. I think when the cammunity first heard that the iease was comi�g ta an end, but wt�en we learned some af the details tF�at it was a 25-year lease, at�d yet there had been no plan to sustain it, anci they just, what, thflught the tflwn was going ta co�er it fore�er like that? So I don't think anyone was e�er oppased to keeping the museum going. I d❑ know �omments I ha�e heard, you know, they were just concerned about what's the process? Vllhat responsibility is the museum willing to da? 5a I think this sounds really reasonable, and I don't ha�e a problem with the tawn Eontinuing ta c�ver those casts as I�ng as the museum will take same responsi6ility and raising their awn maney, too. Thanfc you. MYERS: Mayar, CaunCil, Larry Myers. I just want ta remir�d everybody, if yau pay Arizona taxes you can get a tax credit for up to, I think it's $1,375. And e�en th�ugh Arizona ❑r�ly cY�arges fi�e percent of your federal, when you -- if yau're colle�ting any dividends, those get taxed. So 1've never escaped a tax bill from the 5tate of Arizana, and you can use that tax credit far any number of things. I've used it for kids going to private schoals and whatever. And I think you want ta sa�e the museum, write a ch�ck, because there's got t❑ be 5� people in this t�wn that are paying the State of Arizona $1,000, and it cames right off your tax bill. 5o that's all I wanted to say. I wanted to remind everybady that that option is there. And I hope our new directors and executi�e director sort of put a program together an� encourage people to da that, because it's reakly easy. Thanks. gLECKER: Good e�ening, Mr. Mayar, Tawn Cauncil. Shelk�y Blecker, Fountain Hills resident. I to❑ am in favor of this extension af the lease. I went to the museum aver the weekend. I found it to be very infarmati�e and just a kot of fun to walk through there Page 9 of 2z iUWIV �� F�71;iVTAiAf HIILs JJ�'vE 30, 2U257C1WN CO'JNGL SPECIA!. M��iivG MIN�JTES and �earn more abaut ourtime. But a recent ietter regarciing the Ri�er af �ime Museum in the �iimes, it spins a po�itical narrative that i�nores the legal rea�ity and the local history to suggest that you, Mayor and canser�ative c�uncil members are arsonists trying to run a I�GaI treasure aut of town is just not unfair; it's eompletely false. The issue of the Ri�er af Time lease was ne�er a lack af support by you ar the canservati�e Cauncil Mem�Oers. Et was strictly a legal hurdle �reated by the Arizona Constitution's gift �lause, as Amanda has already said. And she already provided the facts and some other pertinent information, so I w�n't repeat that. But I will repeat that when the lease approached in August 26th expiration, it was town staff tha� exercising mandatary fiscal responsibility notified the museum that cantinuing the dollar-a-year lease without proper legal justification a� a business plan would explicitly vialate state faw. The attorney, town staff,and the cauncil were hound hy law ta address this issue, nat by a sudden desire to hurt the museum. Furthermore, the claim that the lease extension is a rabbit pufled aut of a hat due t❑ eaectian year bacEclash rewrites the actual timeline af events, anather thing that Amanda just presented tonight. So Mayor Friedel and conservative leaders, ! feel, have always �alued the histarical and educatior�al rol� af th� Ri�er Time piays in the Lower Verde Vall�y. However, true leadership requires balancing that appreciation with an oath to uphald and protect taxpayers from canstitutional violations. This spe�ial session isn't gaslighting. It's responsible go�ernance w�rking exactly as it shoufd to find a legal bridge far a belaved �ammunity institutian, l.et's laak at the actual paperwork and timelines before we let election seasan rhetoric distort the facts. Thank ]IpU. SKILLICORN: ThanEc yau, Mr. Mayor. 5o I ha�e read a Iot ❑nline and there's a lot af misinformati�n aut there. And un��rtunately, this has become political, but this is lik� the least political thing I think this council is going ta d❑ and the least contro�ersial thing Page 10 af ZZ T�IiVN DF FOUh�'All� HI:.LS 1kJNE 3D, 20�4i TQVy�V CC�U�1Cil SPECI!aL TVIFETIIVG MINJTEr this eouncil`s going to d�. I suspect that this is going to pass unanimously, and it's going ta be a nothing burger. And what I'�e seen online has k�een completely manufactured and fa€ce. 5fl I'd like to make a motion to pass this as drafted. UN�DENTIFIEQ 5PEAKER: 5econd. SKi�LICOR�V: And f'd like to make a mation ta �all the question. IJNIdENTIFIE� SPEAKER: Second. MAYDF� FRIEDEL: Since Cauncilman Watts was already cued in, I'm going to let him speak. And then yau can have your call the questian. 11NIQEN71FIEb SPEAKER: {Indiseernible}. I think when you call the question, you have t❑ call the question. That's a misuse of call in the question, as usual. MAYDR FRIEbEL: All right. Then, I`II make a motion that we amend the rule. UNIDENTIFIED SPEAKER: Can we have a ruling on the town attorney? MAYDR FRIEDEL: Town attorney, would you weigh in, please? WRIGHT: So we -- since the call a question has been motioned and seconded, then we need t❑ do a roll call, vote on the call of question, and if it fails then you'd have the diseussion. MAY�R FRIEdEL: Qkay. Roll call, vote on t�e cal! af the question, please, town cl�rk? ESPIRITU: Council M�mber Kalivianakis? KALIVIANAKIS: Aye. ESPIRITU: �aun�il Member Watts? WArTS: Nay. ESPIRITU: C�uncil Member Skilli�orn? SKIL.LICORN: Yes. ESPIRITLI: Cflun�il Member MeMahon? MCMAHON: Nay. ESPIRITLI: Coun�il Memk�er Larrabee? LARRA6EE: Aye. ESPlRITU: Mayar -- Vice Mayor Earle? EARLE: Nay. Page 11 of 2Z ra�� r�� ou�vrai�� r��a JUNE 30, 2DZfi TO►!V[V COIiNGL 5PE�.iAL MEEl"ING fJlINUTfS ESPI RITU: Mayar Friedel? MAY�R FRiE�EL: Nay. ESPiRiTll: Dkay. The n�otion is denied. MAY�R FRIEdEL: Motion's denied. Dkay. Coun�ilman Watts, gv ahead please. WATTS: Thank you, Mayar. I want t❑ take a little slightly different tact here, but I wauld li�Ce ta formalfy recognize and cammend t�wn staff for their extensi�e efforts in bringing forward this lease agreement. In particular, I want ta acknowledge ❑ur Econamic Development Directar, Amanda Jac�bs, who I'm pretty sure kept hours. 5a you can pr�bably tell me how many hours you got in this. As well as aur town attorney, Jen Wright, for th�ir diligent and mastly behind-the-scenes work. In callabaration with th� River of Time Museum, their eff�rts have resulted in a pra�tical, short-term solution that pra�ides the Ri�er of Time with a responsible and mutually agreed t❑ path moving forward. I als� believe it's important to address some of the public commentary surr�unding this matter. Certain criticisms ha�e been levieci without ac�ampanying viable alternatives, and in some instan�es appear to disregard established legal constraints. The Arizona Supreme Court ruled in 2�21, through a decision thraugh Schires and Carlat, clearly limits the types ❑f arrangements that we are -- that we can previously -- that we had previously utili2ed and that we can da today. The town is obligated ta operate within those Iegal parameters. ia be �lear, the agreement is not a result of some externai pressure, nar is it attributable to �om�-nenfiary from indi�iduals outside th� formal process. It is r�at a mission aceomplished mament, 6ut rather a measure and lawful step forward. This ❑utc�me reflects the sustained professional efforts of the tawn staff, wha have been warking on this issue se�eral years with signi�icant focus and urg�ncy over the past 6 t❑ 12 months ta arri�e at a compliant and warkable solution. Thank yflu. MAYOR FRIEQEL: Vice Mayor? EAR�E: Thank yau, Mayor. I'd like t� take a mament ta express my sincere appreciation for our town attorney, Page I2 of 22 T�WN Q�F F�UI�TAIN HllLS lL1N� 3a� 2D26 TOWN COUNCfI SPECIAL MEE i ING i'J!4lVUTES Jennifer Wright, and our Ec�nomic Qevelopment birector, Amanda Jacobs. This has heen an extraordinary, complex issue invol�ing legal, financial, and poliGy considerations. They have de�oted countless hours researehing, anafyzing, negotiating, and wvrking tawards a svlution that gives the cauncil the information needed to make �houghtful decisions. Public service is nat always easy, especially when working through difficult and highly emotianal issues like this one. Whether e�ery recommendatio� is popular or not, I believe Jennifer and Amanda ha�e approached this pro�ess with prafessionalism, integrity, and a genuine commitment ta serving t�e residents of Fauntain Hills. I want them bath to know that their hard work has not gone unnaticed, and I sincerely thank them for their dedi�ation to our tawn. And Jennifer, I alsa want to personally thank yau for y�ur steady pr4fessianalism and sound caunsel. I know this has required an enormous amount af work, and I want you to know that I truly a{�preciate your dedicatian to this town. Thank you. WRIGHT: Thank you. Appr�ciate it. This has been a long road, as everybady can see, by Amanda's time line, and it's unfortunate thaC it has turned political, f�ut I would like to thank the staff and Amanda for staying with it, and also the museum anci recognize the director for her teamwork as well. �hank you f�r the hard work. And also, I would like t❑ say, giv�n the political nature of this, that when caun�ii decides to approve and ratify a GonCract and Qther projects, it's not ane persan that does it. It's the full body of seven ❑f us. S❑ taking �redit isn't appropriate, and we work as a whole 4�ody here, whether we agree ❑r not agree anci vote accardingEy. Sa I'd like to take it ❑ut of the political arena in that regard. 7hank yau �ery mu�h for all your hard work. MAY�R F�IEOEL: I would a1s❑ like to make a statement. I would like t❑ recagnize the four bodies that really put all the work into this: Jane and her staff and her time, Amanda Ja�abs, the town staff, this council. ❑ur I�gal representation was pro6ably undermined with the leaking af same infarmattan, which isn't appropriate. It turned this into a poiiti�al issu�, which it shauldn't be. It's really mflre af a camman sense Page 13 of 22 TpW� =7F F�l1NTAIN H��.CS �UNE 30, 7.OZ� iOWN CpU�JCIL SPECII�:L MEETiIV� MiiVUTES issue. We did not want this museum to go away. And I thir�k, Jane, you know that. 5o a iot of hard work went into this. I appreciate everybody's efforts, and I hop� we'�e learned that executi��e session material stays in the executi�e session, and it daesn't get IeaEced to any political party or any PAC ar anything like that, because a Ivt vf misinfarmation has been flaating around ahout this. This meeting was scheduled to review a liquor li�ense. We added the museum ta this agenda specifically because we had the meeting already set. This is tawn business. This is how we'll conduct aur town husiness. We will get the job dane, we will get our businesses taken care of, and we'll get the museum taken �are of, 5o I want ta clear up any misconception that we added this meeting far palitical purposes. This meeting was already established ta take care af ather town husiness. 5a I just felt that people need to know the re�ard on this. 5o we're all for the museur-n. !'m a memi�er and now a contributar to the museum as weff. So -- and I'�e been to the museum several times, and I've met with lane a couple of times. 5o we're ail for the museum. T�is gives us the apportunity and a new direction, new leadership. The winds of change are here for the museum and we applaud that. 5o with that do we have a moti�n on the f�o�r for this? E5PIR4TL1: Yes, Mayor, we ha�e -- MAYflR FRIEDEL: And we have a second? ESPIRIT[J: Yes. MAY�R FRIEQEL: ❑kay. Can we geC a roli call �ote, please.? ESPIRITLI: Council Member Skillicarn? SKILLIC�RN: Yes. ESPIRfTLJ: Council M�mber Larrabee? LARRASEE: Aye. ESPIRITIJ: Council Member McMahan? MCMAHQfV: Aye. ESPI�iITl1: Cauncil Member Kali�ianakis? KA�IVIANAKIS: Aye. Page 14 af ZZ rawn� or Fr�uN�ain� �ti�,�� lUNE 3a, 2:l26 T�IA�H CQUNCII. SP�CiRI MEffiNG MlIVL1TE5 ESPIRITII: Council Member Watts? WATT�: Aye. ES°If:I�TU: Vice Mayar Earle? EARLE: Aye. ESPIRITLJ: Mayar Friedel? MAY�R FRIEpEL: Aye. ESPIRlTU: Motion passes unanimaus. MAYDR FRIEpEL: Thank yau. Thank ypu, Amanda. JAC�BS: Thank you. And then just real quick, Mayor. In the event this was approved -- so again, a little behind the �urtain -- is we will sign a resolutian, an agreement in ad�ance. If the body had decided to make -- ta deny this, it would be stamped by aur clerk's office and say fail. But this is an executed agreement that has been signed by aur town manager in ad�ance, the Mayor or madam clerk and ❑ur attorney. I will be handing this over to Jane, and then we will be issuing a press release. 5❑ again, it's our duty to think a few steps ahead operationally. Thank you, Mayor and c�uncil f�r your kind words. MAYOR F�IE�EL: Okay. We'll mo�e on to regular agenda item B, which is discussion and possible direction regarding staff directian ta pursue passible solar energy proje�ts. And I'm going to ask Council Member Watts t❑ I�ad us off. WATT5: 5o a little bit af the back story. After we had the presentation by Veregy a couple of weeks ago, I was still a proponent af salar, the sa�ing of energy, the prudent use af finances for the town, Sa I did a little digging and fflund that the narmal payback is something less than ten years. 7he return ❑n investment from a financial standpoint is somewhere in the area of nine per�ent, eight percent, something like that. 5o it's viabl�. Sa I went out and I talked t❑ a cauple of different contractars and I confirmed those numbers. My request to put this ❑n the agenda today was simply to get a cansensus that we go to an RFP. I don't have any skin in the gam�. I don't have any preferred contractors. What Page 15 of 22 Towr� ar- �uurvrRi�v i�iL�.s �iJNE 3U, Z�7.f ;[11h1N COlIfVCIL SP�CIAL M�ETIAEG Nllf�lliES I'm lofl€cing at fram the standpoint of how can we take ad�antage ❑f the direct pay, that's the investment tax �redit that the municipality Can get, that we use the ff�ances of the town ta the town's benefit. We're currently getting about a four percent return. We can get significantly more than that as an R�I on the in�estment. We can �alidate the life expectancy af the equipment, fa�tor in all the maintenance costs. 5� an RFP made some sense t❑ me, because we �an craft the criteria for the solar around very specific req�irements. �ne of those would be making it plus fifty percent American made. And s❑ many of the panels are made o�erseas. Germany is a big manufacturer. China. lapan. 6ut America has als❑ got a big handle on the salar panels. 50 looking at wY�at we can do with ❑ur finances, looking at what we can da for the long term, Ifloking at the life expectan�y of the so�ar paneis and t#�e degradation af output, it made some sense. 5a I'm asking far support t� see if we can't d❑ an RFP. fVaw, the RFP is simply that. It's a request from contractars who specialize in this, wha can assure performan�es, who ean assure the in�estment tax �redit, ali af the different t�ings. 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 suppart from t}�e cauncil. MAYOR FRIEQEL: I would be far us in�estigating that. Anybody else have a thought on that? MCMAH�N: Yes I do. This is not a recansideration of the priar project. That project has gone away and so has o�er a million dollars in savings. From what's been -- I spake with a couple of people abaut this, the staff, and understand it t�etter that it's gaing to go �ut for bid. And hapefully, we will be able to apply for the federal grant and get a portion af that. We wan't get akl of it, but we'll get a�artian af it hopefully. I was disappointed that the last ane didn't pass, but willing ta look forward to the future and see if a differer�t proje�t can eventually be placed before Council and we can tafce a look at it and decide whether or nat it is a good project for the town. MAYQR FRIE�EL: Coun�ilman? Page 16 of 22 TflVVi'J CF FDUN7A!!V HI��S lUAI� 30, 2'�76 TOW(V C�iJI�CIL 5�'�C!!�� 143�ETiNG IVIiNi3TE5 SKILLICORN: Thank yau, Mr. Mayar. I actuafiy would not eeho those comments hecause electricity is cheap. These panels are exper�si�e. I belie�e that the eEectricity cost for this campus was abaut $2DD,000 a year. We would ha�e t❑ ha�e a hundred percent of electricity being generated that we use in this campus to get anywhere clase t❑ that ten-year payback. I d❑ nat find plausible or realistic. Highly skeptical ❑f that numi�er. But that's still millions ❑f dollars that we ha�e to outlay for something that's �ery inexpensiv�. What wauld be Che return �n investment if we spent $2 million on econamic de�elopment? We might ha�e a turnaround in 24 months. You know, what about other things? I me�n, ! understand -- again, I think this is dri�en because there's same people wh❑ want to ha�e some shaded parking, but shaded parking at this campus here isn't gaing ta dri�e retail sales. If we wanted to have shaded parking ❑n the Avenue of the Fountains that might get people to stay longer and spend more money. That may have actual -- a real ecanomic development component to it. I a1s❑ kind of wonder how much would a parking garage Gost? Yau know what a parking garage cost? $2 millian. The town probably could use a parking garage during certain speeial e�ents, and that would be an econami� develapment driver. ! still think that that this money wauld be better spent on economic de�elopment ❑r trankly, fixing aur roads. if we da this, we're gaing to be another year behind on our roads. I just think that this is foalish, and electricity is �ery inexpensive. These panels are expensive. And basicaliy, we ha�e to frar�t all the maney. It's just the oppartunity cost is bigger than $2 million. And as sameone wha is going to be a fiduciary and is going to be responsibEe far haw money is spent, I cannot say we're going to basiCally let Qur roads get one mare year dawn the path and spend $2 million an panels that aren't needed ar�d don't ha�e a payba�k. And I'll tell yau what, wher� I dri�e dawn roac{s and I see big, giant covered solar parking lats, it's always schaols and ga�ernments, and it's because politicians are foolish with Page 1.7 of 22 Tr�w�v oF ��UrurAiry ��s JL'�lE 30, 2025 TOWN C[}U1�4kL 5PECiHL MEETII�G iiAIfVUTES mon�y. MAYDR FRlEDEL: Counsei? WATTS: If I can address Cauncilman 5killicorn? 5❑ the preliminary numbers are right araund a millian ❑ne; a little bit over a IittEe bit o�er a millian ane. And with the incenti�e af thirty percent, it's closer t❑ $$00,000 is what the out-af-packet cost would be. The payback ❑n it is at 10 years, with a life expectancy of 25 years, it pays two-and-a-half million dollars back. 5a we'd be�ame pvsiti�e two times what, and that`s where the R�I cames 4�a�k. MCMAH�N: 1 know, f�ut isn't this just to gi�e direction to the cauncil and not talk about the cantract? WATTS: It is. It is. These are preliminary -- MCMANDN: And I want ta �e careful about that. WATTS: They are preliminary budgets that there's no -- t�at's the nature of running an RFP is I had t❑ have a basis to go forward. 6ecause if I got the same numbers that we got with the priar presentativn, it didn't make any sense. But naw, because I have gotten �erificati�n from two different contractors as a budgetary numk�er, and that's what we always do when we start laoking at projects, we look at what's the budgetary �onstraints, �an we make it wark? S�ould it wark? And so on. 50 $800,OOD for two- and-a-half million dollars ❑ver the life of it made same sense. MAYQR FRIEbEL: And i would say, Allen, before I go to Councilwaman MeMahon, this is just in�estigatian. We would ha�e some tim� in it with the town staff, but we'r� not signing a contract. We're not doing anything like that. I think it's worth checking into. Councilwoman, go ahead. MCMAHON: Thank yo�, because I wantec! to clarify that as w�ll, becaus� I was cancerned that we were talking abaut eontractual terms and things like that. And plus, isn't it the staff's responsibility ta do pracur�ment, not necessarily �ouncil's? And sa as Iong as this is just basically to laok forward into the future and in�estigate it, you know, iike Safeway and ather pri�ate businesses have salar panels, et cetera, it`s nat just go�ernment and schoois. And so like I said, I'm willing to look forward ta the future Page 18 of 22 TOWN QF FOUNTAIfV h�LLS JUNE 3�, 2D26 �'OWN �OUIV�IL SP�CIAL MtETING MINL'TfS and relook at this and see if it's in the best interest of the town when it comes f�efore t�wn and the budget we have and the money to spend. WATTS: 0lcay. Dkay. Et's a shart respanse. { just wholeheartedly agree that that's exactly what it is. It's an in�estigatary ean we achie�e the numbers that we need to achie�e t❑ make it a �iable project for us without getting cansensus to da that? MAY�R FRIEDEL: Vice mayor? EARLE: Thank you, Mayor. I appreciate what everylaody is saying up here. I alsa support energy savings for aur tawn. But staff has spent a lat of time, we'�e spent a lot of money already. And twa weeks ago learning a�l ❑f that, it was �oted down. 5ame of the things that I learned talking t❑ Paul didn`t ma[te me feel comfortat�le with this. And I guess this is not the place tfl cfiscuss that, but we would be asking them ta spend mare time in this research, which I think w� may find similar things as well. And we'�e also asiced staff to look into things far the roads, anci then we stopped that. But that's coming baek. 5o I dan't knaw how mu�h time staff has that we're asking them t❑ la�k into ather things that we maybe don`t -- isn't s❑ necessary at the moment. I kn�w raads have been a big priarity. 5a I would prefer we put our energy int❑ that right now. 5fl that's my input ❑n it anyway. MAYOR FRIEL7EL: 6renda? KALIVIANAKIS: Thank yau, Mr. Mayor. And yeah, I'm split on this one because I supported th� project. I IiEce the project. I like the savings down the roacf. But on the ather hand, I think the �ice mayor and me may have the same notes because I ak�solutely share your �ancerns about the staff time. Rachek said that she put in -- the staff put in cauntless number of hours consulting experts ab4ut the rebate, ab�ut the viability. We had one of the to� energy producers of solar here gi�ing a great presentation. And I just ha�e a feeling this is gaing to be like a Charlie Brown and Lucy mament as we're going to tee this thing up again. We're gaing to get bids. We're going ta put the staff thra�gh a heck of a lat of work. And the concerns that we had last time are still going ta be dogging us the next time. Page 19 of 22 T�111P3 0� ��7l.lhi-� AlN klLIS ]UiJc 30, 2026TpWN CC"�U11CIL SpFCIAL NkFFTiNG MINLiTES And I won't ga intfl all af them, but t�e panel cleaning, the insurance. Counci[ Member Skillicorn talked abaut antiquated equipment in 1� or 15 years. This will be stuff that's, you kn4w, not usable anymare. And the insurance prablems with mansoons arrd that kind ❑f thing. All the things that were said last week are still going to be dogging us. And so -- and then nat only that, but we're going to d❑ this because the federal rebate, and with this delay that rebate is going t❑ e�en be less and less ❑btainable. And s❑ that $1 millian, which they al! agreed was not going to �e guaranteed. If we put this ❑ff for months, put it thraugh an RFP, it's going to !�e less fikely that we get th� offset. And the last thing that they said was, could we take that maney and just rein�est it instead ❑f putting it into salar prajects? These are all things I listened ta, t�o. And I'm just afraid that e�en though in concept, I'm with Council Member Watts in loaking into this again, I'm stiil with Vice Mayor Earle that, you knQw, 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 a1r-eady rejected. MAYDR FRIEdEL f'll make ❑ne camment and then we'll see if we ha�e any �omment cards. I think it's worth in�estigating. We've learned a lat from the last trip, so we prabably ha�e same shortcuts and we've learned a lot, and we can take that knawledge and mave farward, probabiy at a much quicker pace and less time in�al�ed. And I think the town staff is probably up ta the projeCt. So that's just my two tents on it. bo we ha�e any comment eards, town clerk? E5PIRITU: Yes, Mayor. We da. The town received one anline �omment with a position of four. And then we ha�e two requests to speak: Crystal Ca�anaugh and Larry Myers. CAVANAl1GH: I too, was torn an this topic. After that last meeting, it made a fot of sense to �ote no ❑n it because of the casts. And I guess part af ine is still at that spot. It kind of reminds me af when there was a big roundabaut study that wanted to be done under a different administratian that was gfling ta be 4- or $5Qa,QOD, but for a praje�t that in the end we really weren't gaing to be able to afford. 5❑ at this point in time, I'm wandering, we were an a pathway. We have lake liner, we Page z0 nf z2 TOWN flF �C]tfiVTAiN KiLLS 3l]NE 3D, �L�26 TaWM CaUfkClL SPE�iAI. M�� iNG MINU7E5 ha�e a lot of roads, and then suddenly we're kind of taking this fork, and i dan't know that I can get behind it. I'm not reaily strong one way ar the ❑ther, but I am lear�ing more tawards the last comments here, because I just feel like we ha�e more priorities at this time. I mean, e�entually there may need ta be a r�ad hond, for example. And so it's a lot harder sell tQ get peaple to get on f�oard with the raad band if you're going off in this other direction f�r solar. And so that's really where I'm at right now. Thanks. ESPIRiTU: ❑kay. Mayor, speaker. Larry Myers, has declined to speak. MAYDR FR4EDEL: �kay. 7hank you. Hannah, do you ha�e anything tv say? LARRABEE: Thank you, Mayor. I don't ha�e to❑ much to add. I agree with the comments that I belie�e ti�at the money that we would be setting aside for a project iike this couid be used better in different areas. If the council majority wants t� hear furt�er, I'm open t� it; howe�er, {�ersonally, I'm a na. MAYDR �RIE�EL: 5o you've got your direction? WATTS: Looks like I heard four na's ,e�en though we didn't vote. It seemed li�e that was the sentiment and the cansensus. MAYOR FRIEQEL: �kay. All right. 5a be it. Councilman, did you have something you wanted -- oh, Councilman Skillicarn? SKILLIC�RN: I was just going ta make a friendly motion to adj�urn. MAYDR FRIE�EL: ❑a we have a second? WATiS: Secand. MAYOR FRIE�EL: All in fa�or? UiVI�ENTIFIEa SPEAK�R: Aye. MAYOR FRIE�EL: Thank you. We're adjourned. Page 21 of 22 ?�WI� OF foiiNTAIN HILLS ]�JIVE 3d, 2026 TOWN CS7UNClL SPECiRt MEETING MlNiJ7E5 Ha�ing no further business, Mayor Gerry M. Friedel adjourned the 5pecial Session af the Fountain Hills Tawn Council held on June 3�, 20Z6, at 6:14 p.m. APPROVE�: � � �� GERRY FREIb��, MAY�R A�TE57: �� BEVELYN J. BEN�E , TOWN CLERK CERTIFICATI�N I HEREBY CERTIFYTHAT THE FOREG�ING MINUTES AR� A TRUE AN❑ CORRECT COPY OF THE MINUTES ❑F THE S�ECIAL TOWN COLINCIL MEETING ❑F TFiE TOWN C�UNCIL, T�WN OF FDUNTAIN HILLS, ARIZ�NA HEL� ❑IV JIJfVE 30, 2�25. I FURTHER CERTIFY THAT THE MEETING WAS dULY CALL�D AN❑ HEL❑ ANa THA�F A qUORIJM WA5 PRESENT. �� BEVELYN J. BENDER, T�WfV CLERK Page ZZ of Zz