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HomeMy WebLinkAbout2026.1006.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, OCTOBER 6, 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 311 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. INVOCATION a. INVOCATOR: Pastor Clayton J. Wilfer, Joy 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. PROCLAMATION: October as Community Planning Month b. PROCLAMATION: October 17th as Arbor Day in conjunction with Make a Difference Day c. PROCLAMATION: October as Breast Cancer Awareness Month d. PROCLAMATION: October as Domestic Violence Awareness Month 7. PRESENTATIONS a. PRESENTATION: Completion of the Shea Boulevard Eastbound Lane Addition Project. 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 meeting minutes of the Town Council Regular Meeting of September 1, 2026, and the Work Session of September 8, 2026. 9. REGULAR AGENDA a. CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-13, repealing Town Code Articles 16-2, Small Wireless Facilities and 16-3 Utility Service Antennas, and adding Chapter 19 Small Wireless Facilities; Utility Service Antennas. b. CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-22, amending the Town's Wireless Facilities Standard Terms and Conditions for small cell wireless facilities located in Town rights-of-way. Meeting Packet Page 2 of 311 c. CONSIDERATION AND POSSIBLE ACTION: Regarding possible sale of Town-owned parcels at various locations. d. CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-14, amending Town Code Article 8-6, Short-term Rentals and Vacation Rentals. e. CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-05, amending Town Code Sections 10-2-1, 10-2-8, and 10-2-9 as related to the distribution of handbills. f. CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance No. 26–17, amending the Fountain Hills Town Code, Chapter 16 (Streets and Sidewalks), by adding Article 16-4, Automated License Plate Readers. (Presented at the request of Councilmember Skillicorn with the support of Councilmembers Larrabee and Watts). 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 30th day of September, 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 311 ITEM 6.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration 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) PROCLAMATION: October as Community Planning Month Staff Summary (background) The Town of Fountain Hills recognizes October as Community Planning Month, highlighting the vital role planning plays in guiding community growth and change. This proclamation emphasizes the importance of planning in allowing residents and officials to shape the town’s future and acknowledges the efforts of planners and volunteers who contribute to its development. Mayor Gerry M. Friedel encourages all residents to join in recognizing and appreciating these contributions. 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. Community Planning Month_2026_Signed Meeting Packet Page 4 of 311 Meeting Packet Page 5 of 311 ITEM 6.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration 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) PROCLAMATION: October 17th as Arbor Day in conjunction with Make a Difference Day Staff Summary (background) The Town of Fountain Hills recognizes the importance of trees and their many environmental, economic, and community benefits, including improving air quality, supporting wildlife, conserving energy, enhancing property values, and beautifying the community. Mayor Gerry M. Friedel hereby proclaims October 17, 2026, as Arbor Day in the Town of Fountain Hills, Arizona. 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. Arbor Day_2026_Signed Meeting Packet Page 6 of 311 Meeting Packet Page 7 of 311 ITEM 6.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration 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) PROCLAMATION: October as Breast Cancer Awareness Month Staff Summary (background) The Mayor and Town Council of Fountain Hills proclaim October 2026 as Breast Cancer Awareness Month—a time dedicated to promoting education, early detection, research, and support for those impacted by breast cancer. With 1 in 8 women in the U.S. expected to be diagnosed in their lifetime and over 320,000 new cases anticipated in 2026, raising awareness remains essential. Though less common, men are also affected by the disease. Early screening and timely treatment significantly improve survival rates, and today, more than 4 million breast cancer survivors live in the United States. This month brings communities together to honor those lost, stand with those currently facing the disease, celebrate survivors, and recognize the vital work of healthcare professionals and researchers. The Mayor and Town Council urge all residents to join in supporting the continued fight against breast cancer. 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. Breast Cancer Awareness_2026_Signed Meeting Packet Page 8 of 311 Meeting Packet Page 9 of 311 ITEM 6.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration 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) PROCLAMATION: October as Domestic Violence Awareness Month Staff Summary (background) The Mayor and Town Council proclaim October 2026 as Domestic Violence Awareness Month. While home should be a place of love, safety, and peace, for many it is marked by violence and fear. Domestic violence impacts individuals of all ages and backgrounds and is a leading cause of homelessness, particularly among women and children. Its effects are often devastating and long-lasting. We acknowledge and commend those who support survivors and work to prevent abuse, and we urge all citizens to raise awareness and support efforts to end domestic violence. 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. Domestic Violence Awareness Month - October 2026 SIGNED Meeting Packet Page 10 of 311 Meeting Packet Page 11 of 311 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR COUNCIL MEETING OF THE TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 A Regular Meeting of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 5:30 p.m. Members Present: Mayor Gerry M. Friedel; Vice Mayor Gayle Earle; Councilmember Brenda Kalivianakis; Councilmember Rick Watts; Councilmember Hannah Larrabee; Councilmember Allen Skillicorn Members Absent: Councilmember Peggy McMahon Staff Present: Town Manager Rachael Goodwin; Town Attorney Jennifer J. Wright; Town Clerk Bevelyn J. Bender Meeting Packet Page 12 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 1 of 45 Post-Production File Town of Fountain Hills Town Council Regular Meeting Minutes September 1, 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 13 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 2 of 45 MAYOR FRIEDEL: I'd like to call this meeting to order. And would you please rise for the pledge? 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. Pastor Dee Pavia from Christ Church in Fountain Hills will do our invocation. PAVIA: Thank you, Mayor and Council and staff. It's an honor to be here on behalf of Christ Church, Fountain Hills. Heavenly Father, we just thank you so much for this time to gather today, Lord God, here in your Town of Fountain Hills, this beautiful town, Lord. And we're just praying, Lord, for the Council tonight as they're making decisions, Father, that you would give them discernment, you would give them wisdom, Lord, you would give them just a unity tonight to come together for the betterment of your people, Lord. That's what we're praying for. We want the best for this community, Lord. We know that people stand on different sides of this political spectrum, Lord. But at the end of the day, we are all just human beings just trying to live peaceful lives here in this beautiful town. And I just pray that you would be with every single person that is in this room tonight and watching as well. In Jesus' name, amen. Thank you. MAYOR FRIEDEL: 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 Kalivianakis? KALIVIANAKIS: Here. BENDER: Councilmember Watts? WATTS: Here. BENDER: Cou ncilmember Larrabee? LARRABEE: Present. Meeting Packet Page 14 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 3 of 45 BENDER: Councilmember McMahon, I believe, is absent. And Councilmember Skillicorn? SKILLICORN: Here. BENDER: Mayor, you have a quorum. MAYOR FRIEDEL: Thank you. And now, we'll go to our summary of events by our Town Manager, Rachael. GOODWIN: Mayor, Council, community, thanks for being here. Welcome back. It was a lovely summer. It was a busy summer. I'm going to hit a couple of highlights from the summer as well as looking forward to a few things. We have a very, very busy next couple of weeks. So we wrapped up a busy summer with some great community events, including an outstanding Fourth at the Fountain, which drew more than 30,000 people. It was packed. If you were not there, you missed out. It was a very, very large event. We also had our recent Back to School Bash. Thank you to all of our staff, our partners, our volunteers, and everyone who helped make these events successful. EPCOR also hosted a recent water resource presentation that was also very well attended. For anyone who is unable to participate or wants to review that, the full presentation is available on the Town's YouTube channel. Looking ahead, our annual -- we are hosting a September 11th remembrance ceremony that will be next Friday on the 11th at 6 p.m. at the Fountain Amphitheater. We hope the community will join us as we remember and honor those who lost their lives and those who served that day. Following that, we will host the Fountain Hills High School Annual Cross Country Invitational at the park. It is a very busy morning on the 12th down at Fountain Park. Residents should expect increased activity and road closures in and around the park that morning. Again, if you haven't been, there are a lot of kids running. There's a lot of things happening down there. Hopefully, the weather continues to cooperate and it's not too, too hot. But it's a great day. Another reminder that next Tuesday, we will hold -- the Council will hold a work session regarding roadway funding. This will be an important discussion covering the condition of our streets, previous funding efforts, resident feedback, and our long-term funding Meeting Packet Page 15 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 4 of 45 forecast. A reminder, that will be at 1 o'clock in the Council chambers here. If you can't join us, it will also be recorded. We are nearing the completion of the Shea Boulevard widening project. Yay! Thank you to all of our staff that have been working on that. All of the paving associated with the project is now complete, but please mark your calendars for this Thursday, September 3rd. There will be overnight closures for eastbound Shea from 9 p.m. to 5 a.m. for the installation of vehicle detection equipment and some of our public safety elements. We'll have some additional closures planned for the following week on September 8, 9, and 10 so that we can administer our pavement marking, do some crack-filling, sealing, and temporary striping. That is really our last major hurdle for this project. So we are in the home stretch. So we appreciate that. We will continue to be doing daytime guardrail installation as well. So we just appreciate everyone's continued patience as we kind of bring this project home. Lastly, we had several new employees join the Town recently. You're going to meet a couple of them tonight, but I wanted to take a moment to welcome Hannah Martin. Hannah, where are you? Oh, there she is. She's in the back. She just recently joined us. Hannah's new to town, and she just recently joined us in the Town Manager's office. I think a number of you guys have met her. She's working with myself as well as the Council. So we're very glad to have you as part of the team. And then with that, I'd like to ask David Janover to come forward. Janover, are you back there? There he is. Would you mind stepping forward? Not to call you out, but I'm calling you out. Mayor, I'm going to turn it over to you. MAYOR FRIEDEL: Thank you. Before we move on, I would like to take a moment to recognize our Town Engineer, David Janover, who has been named the 2026 Professional Engineer of the Year by the Arizona Society of Professional Engineers. This is a very meaningful and well-deserved honor. The award recognizes much more than success on a single project for our community. Candidates are considered for their professional and technical achievements, service to the engineering profession, commitment to continued professional growth, and contributions to their communities. Meeting Packet Page 16 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 5 of 45 David, you exemplify all these qualities. David brings tremendous knowledge and experience to his work along with a thoughtful approach to solving complex challenges. His attention to detail, sound professional judgment, and dedication to public service have helped the Town address important infrastructure needs while continuing to plan responsibly for the future. David, we are very fortunate to have you as our Town Engineer and we're proud to see your work and professional accomplishments recognized by your peers throughout Arizona. On behalf of the Town Council, Town staff, and the entire Fountain Hills community, congratulations on being named the 2026 Professional Engineer of the year. It's my honor to present you with a certificate of appreciation of this outstanding achievement. And congratulations and thank you for your continued dedication and service to the Town of Fountain Hills. JANOVER: Thank you. Thank you. MAYOR FRIEDEL: And I have a little something extra for you from Mrs. Mayor and the Mayor. So that's to your favorite eating establishment. JANOVER: Oh, thank you. MAYOR FRIEDEL: All right. JANOVER: Wow. Thank you. I had no idea this was coming. I am honored, and I'm humbled at not only getting the award, but the recognition and what the recognition that this brings to the engineering community. And it's something that -- when things are engineered properly, no one thinks about it. But when something goes wrong in the engineering world, everybody knows about it. So it's one of those kind of things where when you're an engineer, you're not really appreciated unless something goes wrong. So this appreciation means a tremendous amount to me. And the Mayor and Council and Town staff and management, I could not be happier working for this beautiful community. So thank you. MAYOR FRIEDEL: And now, we'll move on with a couple of other recognitions. We have some people that are retiring from some of our commissions. So we'll start out with a couple of recognitions for our Strategic Planning Commission. This first one is for Randy Crader. And Randy is probably not here tonight, I don't think. But anyway, we would Meeting Packet Page 17 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 6 of 45 like to express our sincere gratitude to Randy, who has served with distinction on the Strategic Planning Advisory Commission since his appointment by the Town Council in February of 2024. Randy has brought a thoughtful perspective and a collaborative spirit to the Commission's work. His willingness to carefully consider the issues before the Commission and work constructively with his fellow commissioners has been greatly valued by both the Town and the Town Council and his fellow commissioners. So it's with deep appreciation that we recognize him here tonight. And we'll have this here for us to get to him as well. And then, we also have Paul Smith. Paul, I believe, are you here tonight? Maybe he didn't make it either. Okay. So we would also like to express our gratitude to Paul Smith for his distinguished service on Strategic Planning Advisory Commission. Since his appointment to the Commission by the Council in May of 2024, Paul has demonstrated exceptional commitment, thoughtful leadership, and valuable expertise. His contributions have strengthened the Commission's work and supported its efforts to guide the Town's future. The Town Council and his fellow commissioners are grateful for his dedication and service to this commission and the positive impact that he has made through his work on the Strategic Planning Commission. So we'll have this here, and we'll get this to him as well. And then, I have one other recognition tonight. And this is from our History and Culture Advisory Commission. And this is Tim Yoder. I believe Tim is here. I see him in the back. Tonight, we would like to take a moment to recognize Tim Yoder for his outstanding service on the History and Culture Advisory Commission. Tim has served since November 2023. And during this time, his dedication and hard work has made a lasting impact on both the Commission and the Town of Fountain Hills. Tim's commitment to preserving and promoting our town's history and culture has been evident through his countless hours of volunteer service. His contributions have been invaluable. His support has helped further the goals of the Commission and the broader vision of the Town. On behalf of the Town Council and fellow commissioners and the residents of Fountain Hills, we sincerely appreciate Tim's tireless efforts and his positive influence on Meeting Packet Page 18 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 7 of 45 our community. We are grateful for your service, Tim. Thank you, and thank you for all you do. So if you'd come on up, I'd like to present this to you. YODER: I'd just like to say it was a pleasure serving with my fellow commissioners. And Ryan Preston ran a very good show. MAYOR FRIEDEL: And now, we'll move on to presentations. Rachael? GOODWIN: Let's see. I believe -- Amanda, are you going to be introducing this item with us? Thank you. I appreciate it. Tonight, we do have a presentation by Republic Services to award their nonprofit grant to our community. Amanda, will you take it from there? JACOBS: Good evening, Mr. Mayor, members of Council. Welcome back to session. We want to start off one of our presentations today with our last nonprofit grant in partnership with Republic Services. So a little bit of background, Republic Services provides the Town $10,000. And then, we open up an application process. And we have people -- because Economic Development is ministering it, we ask other members of the Department as well as Melissa, who I'll introduce in a second, to help evaluate our applications. And so we're here today to award two nonprofits. And so we've got big checks. We've got some real check money. And we're going to have, again, our folks that have been nominated and have received the award to come up and take a photo with Coun cil. But before we do that, I'm going to turn it over to Melissa with Republic Services to say a few words. Melissa? KRUEGER: Thank you. Good evening, Mayor and Council. My name is Melissa Krueger. If you haven't met me, I've had the privilege of serving as your municipal manager for Republic Services for the past two and a half years. During that time, myself and my colleagues have had the opportunity to become actively involved in your community through chamber events, ribbon cuttings, networking events, quarterly meetings, Touch -A-Trucks, Make a Difference Day, volunteering. One of the experiences I'm most Meeting Packet Page 19 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 8 of 45 proud of is volunteering at Make a Difference Day for two consecutive years helping residents with yard improvement projects. Our team spent the day trimming trees and bushes and pulling weeds, and even battling a few bougainvillea thorns along the way. I often joke that I don't even spend that much time working in my own yard. But I was happy to do it because I genuinely wanted to support this community and its residents. We've truly enjoyed getting to know the people who make this town special. One of my other favorite memories was participating in the Touch-A-Truck event where our Republic Services truck attracted such a crowd of kids that our line was longer than the Fire Department's. Sorry to the Fire Department. But it's a proud moment for our team. As our partnership comes to a close early next year, I'm honored to be here this evening to present our Republic Services' final community grant to the town. Since 2018, Republic Services has proudly contributed a total of $90,000 to local nonprofit organizations in this community. This program reflects our commitment to giving back to the communities we serve. And I'm incredibly proud to have been a part of it. Tonight's grants recipients are Falcon Fiesta and the Fountain Hills Protect Our Youth Coalition. We are grateful for the important work these organizations do to strengthen and support your community. On behalf of Republic Services, we'd like to thank the Town, its leadership, residents, and nonprofit partnerships for the relationships we've built over the years. It's been a privilege to serve this community. We hope the Town will continue to support its nonprofit organizations and community initiatives. And we look forward to having an opportunity to once again serve your amazing community. Thank you. JACOBS: Do you want to announce Falcon Fiesta? KRUEGER: Oh, yes. Up first is Falcon Fiesta. (Photo taken) JACOBS: Testing. Testing. Okay. So our finance team is sometimes strict where you're supposed to sign off on a check. But I said, there's cameras. So we're handing over the real check as well as the poster-size. It's $5,000. Yes. And if you wanted to say a few words. Meeting Packet Page 20 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 9 of 45 STUMPF: Thank you. Yes. We just want to, on behalf of the Board of the Falcon Fiesta, thank our generous community and Republic Services for this donation to support our seniors at our district. Thank you. KRUEGER: Okay. And the Fountain Hills Protect Our Youth Coalition. (Photo taken) JACOBS: All right. We've got another $5,000, a real check. Do I give it to the kids, or do I give it to Tammy? And then, I think we're going to have a few words from everybody. Tammy? BELL: Yes. Really quickly. Thank you. I just my name is Tammy Bell. I'm the executive director for Protect Our Youth, and I want to thank the Town, staff, leadership, and Republic Services again for continually investing in Protecting Our Youth here at Fountain Hills and Fort McDowell Yavapai Nation. I'm really excited to share this year's grant funds. I just want to take a minute to tell you that we are going to be expanding our Above That youth prevention and leadership club to the fifth grade. And this is why it's so important. We know that in the State of Arizona, our eighth graders, who report using alcohol on a regular basis, tell us that they start by the age of 12 years old on average. So we are going to take a very successful middle school program, we're going to bring it down to the fifth grade, and we're going to start teaching our youth some -- building some coping skills, creating some really important relationships and opportunities for them to thrive before the problem begins. So we're very grateful for your sponsorship and for your grant because this is going to allow us to do that. The person doing all the hard work is next to me. This is our program manager, Elizabeth Orr. She's going to share some more. ORR: Thanks, Tammy. So what makes this opportunity so exciting is that we're providing our youth with some positive role models and also giving them the tools to fight against peer pressure and also, give them healthy resources so they can make healthy decisions. And I would just like to thank the Town of Fountain Hills and Republic Services so much for investing in that vision. And tonight, I did bring some of our role models with us. These are the high schoolers actually, our Fountain Hills seniors that Meeting Packet Page 21 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 10 of 45 are going to be helping with this program. And I did want to ask them a question; why they decided to become a mentor for the Fountain Hills Protect Our Youth Coalition. UNIDENTIFIED SPEAKER: My name is Milo (ph.). I chose to become a mentor for the Youth Coalition because I've seen in real life and on the internet what drugs do to people and how they ruin lives. And I want to stand against that and help improve those conditions. STREUFERT: Hi, my name is Colleen Streufert. And I chose to be a mentor for the Fountain Hills Protect Our Youth Coalition because I want to help children fight against addiction in their own families and their own futures. WEST (PH.) Hi, my name is Abigail (ph.) West. And I chose to be a mentor because I want to help educate the youth on how one small decision can change your life forever. ORR: Thank you. MAYOR FRIEDEL: Thank you again. Now, we'll move on to our -- do you have something else? JACOBS: This next one. MAYOR FRIEDEL: Yeah. Okay. JACOBS: You're not done with me, Mayor. MAYOR FRIEDEL: Rachael? Rachael, go ahead. GOODWIN: That's right. Amanda's not done. She has act number 2. She's going to be giving us an update on where we're at with the downtown strategy. JACOBS: Okay. Mr. Mayor, members of Council, since I have the microphone, before we dive into our downtown strategy update, Manager Goodwin mentioned some new staff members. I am pleased to introduce our new economic development specialist, Sophia Renk. Sophia? We are full-staffed now, but excited to have Sophia. She comes from the private industry, but has significant experience in marketing and business development. And then, very excited that she is also, like myself, a Fountain Hills resident. So that has been well-received so far in the business community. With that, Mayor and Council, I'm Meeting Packet Page 22 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 11 of 45 going to provide a high-level update on our downtown strategy. So for Council, if there's anyone new in the audience or watching at home, we had a 2009 downtown vision plan. And for years, it hadn't been updated. And the majority of the focus was the Avenue of the Fountains. When I started over four years ago, our community economic development strategy was also very old, about ten years old. And so we updated that. And in September of 2023, Council unanimously approved that. Under the focus area of business attraction, you'll see there, it says, "create a new downtown strategy consistent with economic trends." In November of 2023, we had a budget workshop, and we requested Council consensus. So again, in a workshop, we can't vote. But we asked for consensus to have staff to begin working on an internal update to the plan beginning in January of 2024. And then, my fellow colleagues thought I was a little crazy because I'm like, we're going to do this in nine months. But we did it. We knew it was going to be realistic because we kept hearing from the business community and our residents, this has to happen. So in September of 2024, we provided that strategy to you. You once again unanimously approved it. And what we heard too loud and clear from the residents and businesses is, we've tried this before. There's a tendency to make a plan, and then it's shelved. And I said, on my watch and my colleagues watch, that's not happening. And of course, having the great support of Council. So just a reminder, this was the map that we started with back in 2024. Again, for folks who have been here much longer than myself, it used to include Fountain Park as well as portions or all of Bashas, as well as Pillar, which is formerly Havenly. But we decided to reduce that footprint because, right, if you make it bigger, it's a bigger plan. It could cost more financially. So here are the various focus areas. There's four. So focus area 1 is land use. We had six implementation strategies. And five out of six are completed, or as we like to say, in process. So big bulk of those implementation strategies had to deal with the downtown overlay district; so improving active uses, improving by-right uses because as Director Wesley and I are meeting with new businesses, they want to know how long our process Meeting Packet Page 23 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 12 of 45 is. And so if we have to tell them, okay, you're going to have to go to the Planning and Zoning Commission, you're then going to have to go to Council, sometimes that adds anywhere between four to six months. So what can we do that is realistic, digestible not only by Council, but the community? And so it took over a year. So it took a little long. But extremely excited that again, that was approved by Mayor and Council back in May. So this is one where we say, okay, we can check the box. We updated. We now have an overlay district. But of course, the work is never done. And we'll get to that in our third focus area. Council also unanimously supported -- I think I have that right -- a facade improvement program. We launched that as a grant in April. And so just as a reminder, within the downtown budget, there's $50,000. And a business has to do $10,000 or greater -- so match -- to make sure two are not violating the gift clause. We did back in April receive four applications. We are navigating that process. But I can tell you because this is public. But Sofrita's submitted an application, the Fountain Hills Chamber of Commerce, ColabR8, and Sami Fine Jewelry. So we're in various stages of those applications. So some, it's just there. We're working through it. Two of them have submitted building permits. So as we start to navigate that and take pictures, we'll provide that in a different update. Focus Area 2, Infrastructure: So six out of seven are in progress. And a big chunk of this when we think of infrastructure, of course, is the Mayor and Council support of a five-year downtown streetscape capital improvement project. And so a couple years ago, we asked Council, do you want us to try to do this in five years or eight years? And we had your support for five years. So right now, we're in the process. And so Public Works is leading this charge of looking at the design for Verde River and Parkview. And so far, we're on schedule to provide a final presentation tentatively this December, and then hope to begin construction of Verde River in the spring of 2027. And as my buddy, our Director Weldy says, we just had a conversation with the Chamber and TAMA that with construction, sometimes there's never a good time. But then, as we say, if there's a way to ease some of the pain -- like, not do this in October when all the visitors here, we're having the fair -- that's appreciated by the community. There's also an area called Meeting Packet Page 24 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 13 of 45 pedestrian connectivity. Our Public Works Department installed marked crosswalks at Saguaro and Parkview and Saguaro and Paul Nordin to allow for pedestrian activity to get safely to our very popular Fountain Park. And then Plat 208, I went ahead and combined a couple of these, but restrooms are separated out. But you may recall for over a year, we were working with Plat 208 to see if we could have some type of partnership where we could redevelop what we're calling the pocket parks. But so it was the land next to Sofrita's. There's the other parcel next to Zab Thai. So we're getting very, very close. And then the business community unfortunately wanted us to swap where the restrooms are. And so you may recall we gave you an update, and it just really wasn't feasible because across the street -- so if we think of where the parking lot is, the Sheriff's Department, and Georgie's, we own land right there. And do we want to add another restroom? Right now, staff is not requesting that. We don't think that's feasible. So this is called -- I did not call it this. I inherited it. But where we're at is the Civic District within downtown. And so if you think of Town Hall, library, museum, community center, all these locations have restrooms. So why put another one there? So with the redevelopment of pocket parks, we're saying that's completed, that we've sort of exhausted all of our resources and buy-in. However, we are still talking. So somebody different has approached us for a public/private partnership related to restrooms. When I can tell you more, I will. It has gone a little quiet. But we're still looking at doing that. And that's why we made sure to have it in the plan. Focus Area 3, Economic Vitality: So three are completed, four are in progress of our seven implementation strategies. So going back, some of this is listed under economic vitality. But parts were also included in land use for our downtown overlay district. So for over four years, I was requesting more flexible zoning. And so with the Planning and Zoning Commission as well as Council, we did get buy-in to create. So if you're thinking where HonorHealth is, if you get blood work at Sonora Quest, the former Mayo Clinic, we've turned that into an innovation district. So again, we can check the box. But unfortunately, because this has taken so long, two of the buildings and one of the larger Meeting Packet Page 25 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 14 of 45 properties -- there's a person that I knew, very well-known in Phoenix all about bioscience investors, people sold their land or their buildings. So we're starting from scratch and building those relationships, and then trying to get that buy-in for our vision to, again, attract more industry. Also on here, but was also part of the downtown overlay district, is allowing temporary uses on vacant properties. So there's some parcels -- think at the corner of Verde River and Parkview -- where it's a vacant lot that has just sat there. Well, we have your approval. Now, the next step is talking to some of those landowners to see, would they have a pop-up event, a little movie, some food trucks, is there something they want to test out so they pull the trigger, if you will, to finally build something. So it's not just a vacant parcel. Park Place, the Mayor and Council back in October of 2025 updated the development agreement. And so that again happened. Council approved that. But we are now waiting for the property owner to submit new building permits plans. That was part of the development agreement. So we're waiting on that. Then, we had requested about $35,000 last year to do some digital marketing; so downtown logos, socials, adding stuff on our Experience Fountain Hills website to, again, let people know that downtown is beyond the Avenue. It's that area. And sometimes, we'll hear from people, what is there to do in Fountain Hills? There's tons. There's tons to do. So now, it's letting people know where they can go. So for instance, Grapeables has live music. We have the Culinary Curator, Debbie's Kitchen. Debbie's here. She's doing a ton of culinary experiences. So things are happening. We just need to market it and have it in a central location. And then, beyond the Art on the Avenue and the Farmer's Market, we tried something new in partnership with the Community Services Department, as well as Aesthetic Elegance, where she wanted to -- on her dime, but to partner with the Town -- to use the Avenue Linear Park on Saturdays when it's not so toasty like right now, so probably we'll pick it back up in November -- but to have yoga in the park. And so that was extremely successful that she's already working with Community Services to bring that back. And then, we also last year started our 3rd Thursday Concert Series at Centennial Meeting Packet Page 26 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 15 of 45 Pavilion. Those were extremely popular. Several of them, we had anywhere between 250 to 300 folks at Centennial Pavilion. We've decided to move that up, not start it in November, but it will be October this year. We're working on all the collateral just so we don't interfere with the Concerts on the Avenue. I think the more, the merrier. But people are like, let's spread it out. Okay. Easy peasy. But if you have not been to the concerts, you should come. Our feedback also last year was to add a few more food trucks. We were trying to push people into the community, but happy to report that the Batchelor Pad, October, November, and December, are going to bring their food cart. And it's going to be the actual barbecue. Erik said, Amanda, people may be missing my barbecue. So we're going to bring the barbecue. And if you didn't know, Snowbird Ice Cream also now has a little mini-cart. And so they will be there with ice cream. Somebody said, cool. I agree. So Focus Area 4, we got public spaces, placemaking, and so we're separating these next two slides out for arts and signage. And so again, a lot of this has to do with murals. We're continuing to do murals on utility boxes. Several months ago, we requested Council's permission to separate the overall placemaking strategy to allow John to work with you guys because we needed to do an ordinance update for murals on private businesses. And so we followed up with several of the businesses. They haven't submitted an application yet, but a couple of them are saying, we are going to do that. We're just waiting. It also, too, is a little hot. So we want to make sure our artists are not suffering in the heat. And then signage, five implementation strategies, three out of five. So some highlights is we had the overall Town-wide wayfinding signage. But a request again, too, was once we install those, can you please tell people -- point them to downtown. So you'll see language like downtown, the Fountain Hills Chamber Visitor Center, the International Dark Sky Discovery Center, shopping. So we're pointing everybody to our downtown. And then each year, we've been updating the Avenue District street banners. So right now, we've got the America 250. Hopefully, within the next 30 days, we will be replacing them again with the theme of that we're naturally artsy. We've got dining and we've got shopping. Meeting Packet Page 27 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 16 of 45 And then, we've been encouraging -- and we've also heard this from Oktoberfest or think of the Dark Sky Festival -- of can we have temporary signage, not just within the downtown, but could we place things in other strategic areas along Palisades or Fountain Hills Boulevard? So we're seeing more businesses take advantage. There's some other ideas I've been working with the Chamber of Commerce on. So again, these are all in progress. And with that, Mayor and Council, high level. But we wanted to give you an update, the public, and then just prove our Council's been very supportive. We are business-friendly. We are open for business. And we did not shelve our downtown strategy. Any questions, Mayor, Council? MAYOR FRIEDEL: Great presentation. We've got a lot going on -- JACOBS: We do. MAYOR FRIEDEL: -- in the downtown strategy for sure. JACOBS: Okay. Thank you. MAYOR FRIEDEL: Vice Mayor Earle? EARLE: I just want to thank you for everything you do. You're doing a great job. Thank you. JACOBS: Thank you. You're welcome. And I have to say, it's a team effort. Like I was saying, Community Services, we talked about Development Services, we got Finance, we got Public Works. But it's a team effort. And it's easy when we have the Town Manager's support and the Council's support. Thank you. MAYOR FRIEDEL: Okay. And moving on, we've got our consent agenda. I'll take a motion to approve. KALIVIANAKIS: Motion to approve the consent agenda. MAYOR FRIEDEL: Second? EARLE: I'll second it. MAYOR FRIEDEL: We have a motion and a second. Can I get a roll call vote, please, Town Clerk? BENDER: Councilmember Skillicorn? SKILLICORN: Yes. Meeting Packet Page 28 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 17 of 45 BENDER: Councilmember Kalivianakis? KALIVIANAKIS: Aye. BENDER: Councilmember Watts? WATTS: Aye. BENDER: Councilmember Larrabee? LARRABEE: Aye. BENDER: Vice Mayor Earle? EARLE: Aye. BENDER: And Mayor Friedel? MAYOR FRIEDEL: Aye. BENDER: Mayor, 6-0. MAYOR FRIEDEL: Thank you. We'll move on to our regular agenda. Item 9.(a.) related to pavement management. And Rachael? GOODWIN: Thank you, Mayor. Each year, each fall, we bring back a pavement management plan to kind of outline where we're going to be tackling our pavement plans for with the allocated budget. We have our Street Superintendent, Jeff Pierce, who's going to walk us through that. Just as a highlight, if you recall, there was some, I'm going to call them, pre-approved streets that we brought to your attention back in the spring that were kind of pre-authorized as streets that needed to have first priority. We are already addressing those. I think Jeff will probably talk about that. But then, this is what we will be doing with the remainder of the funding. PIERCE: Thank you, Town Manager. Perfect. Thank you. Town Manager, Mayor, Town Council. Jeff Pierce, Street Superintendent. How are you? I stand here tonight to present some selected streets that were approved fiscal year '25/'26, and also going to be talking about our favorite subject, pavement management, with additional funding approval. We'll start off with how we select these roads currently. And we've talked about the BOSS system in the past. And that's the Budget Street -- the Optimizer Street Selector. That is a program utilized by our current asphalt contractor who helps us Meeting Packet Page 29 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 18 of 45 provide data for selecting and funding roadway maintenance and full reconstructions. This helps us with the various subjects such as traffic flow, traffic volumes, pavement condition index -- PCI -- and also tries to give us the best cost-effective programs we can with the funding that is available. With that said, we'll go back to February 3rd, 2026 when Public Works Director Justin Weldy presented a number of roads. This fiscal year, fiscal year '26/'27, we have $6.4 million in our pavement maintenance fund. Out of that, these streets that you see up on the screen are $3.4 million of that. These roads were approved by Council, and as of July 1st of this year, have been started. We have a number of phases through that. I believe it's 1 through 5. And currently, we are in phase 1 of this, which we will currently be in the northwest section of approximately at the Stancrest, Keymar, and Wendover area. Unfortunately, this week we suffered inclement weather, which put us in a schedule pause to allow the subgrade to dry out. And hopefully, we will be back on schedule as of Tuesday of next week getting the paving on. Out of the $6.4 million, we have a remaining $3 million. We went back to BOSS, the asphalt contractor, and Town staff, and were able to run a scenario to bring forth to you. We were able to identify 14 local road segments scheduled for reconstruction with the remaining funds of $3 million for this year. On this map, you will notice that most of these roads are grouped together in the southeast section of town. This does two things for us. This not only helps us keep mobilization costs down, but it also connects existing road segments to roads that were completed last fiscal year or a fiscal year prior to that, allowing streets to be grouped together. Out of the 14 roads, a number of roads are cul-de-sacs, along with some long sections. Some of these include Manitou Drive, Kiowa Circle, Hawk Drive, Walapai Circle, Parlin Drive, Scirocco Drive, Cameron Court, Trojan Court, Malta Drive, Middlecoff Drive, Augusta Court, Indian Wells Drive, Zaharias Drive, and finally, Barnes Drive. With that, I'm looking to have approval from Council for the remaining $3 million and can answer any questions at this time. MAYOR FRIEDEL: Vice Mayor? EARLE: Oh. Well, I was just going to move to approve. If anyone wants to -- am I out of Meeting Packet Page 30 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 19 of 45 line? MAYOR FRIEDEL: No. SKILLICORN: You can make a motion anytime you like. MAYOR FRIEDEL: You can make a motion any time you want. That's correct. EARLE: Okay. MAYOR FRIEDEL: Councilman Watts? WATTS: Can you tell me what type of program -- are we doing an overlay, chip seal, what -- PIERCE: These are full reconstructions, sir. WATTS: Full reconstructions? PIERCE: Yes, sir. WATTS: Thank you. MAYOR FRIEDEL: Town Clerk, do we have any comment cards? BENDER: Mayor, we received two online, and both of them were against this item. MAYOR FRIEDEL: Okay. Okay. Thank you. Councilwoman? LARRABEE: Well, I want to second Councilwoman Earle's motion. But I also just wanted to say thank you so much for your staff's work on this. I can't tell you how exciting it is that not only did we get the roads that we had approved done in almost half the budget, but then on top of that, we're adding 14 more roads for this year. This is absolutely fantastic. It's exactly what the community has been asking for since well before I ran for Council. And this is making my last couple months here really wonderful. So thank you. PIERCE: Thank you, Councilmember. MAYOR FRIEDEL: Okay. So we have a motion and a second. Can I get a roll call vote, please? BENDER: Councilmember Watts? WATTS: Aye. BENDER: Councilmember Skillicorn? SKILLICORN: Present. Meeting Packet Page 31 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 20 of 45 BENDER: Councilmember Kalivianakis? KALIVIANAKIS: Aye. BENDER: Councilmember Larrabee? LARRABEE: Aye. BENDER: Vice Mayor Earle? EARLE: Aye. BENDER: And Mayor Friedel? MAYOR FRIEDEL: Aye. BENDER: Mayor, 6-0. MAYOR FRIEDEL: Thank you. Thank you, Jeff. Rachael, next up is -- GOODWIN: Yes. Next up, we have our Director Weldy. He's bringing forth a project that we actually tackled over the summer through consultation with myself, as well as our legal advice. We felt like this project could not wait for Council approval. So he is here for retroactive action. WELDY: Thank you for the introduction and the background information. Mr. Mayor and Councilmembers, first, thank you for the opportunity. Those of you that have lived in this community for any length of time, or even if you're a newcomer, you may or may not be aware of the surface water pump on Panorama. This pump was installed way back in the 80s by MCO Properties based on information they had received related to the possibility that the lake liner could be leaking. We now know that that in fact was never the case, but in fact have professional opinions -- more than one -- over three decades that indicate some of this water is natural spring water that occurs naturally. And then, the balance of it is irrigation water that is put on Fountain Park and percolates down to an impermeable clay layer, and then surfaces in this area. Some years ago, the Mayor and Council approved two different phases of a project to replace the storm drain pipe along Panorama, and phase 2 of that project was to fill in the relatively large borrow pit used to build some adjacent homes, and also a small park there, and replace Meeting Packet Page 32 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 21 of 45 the pump. We have faced challenges since that approval to reach an agreement on behalf of SRP with a neighborhood association for an electrical easement amounting to about 300 square feet along Panorama to install an additional transformer of the appropriate size to provide the 480 volts necessary. Not being able to reach that agreement, we have had to make some changes after the project, including but not limited to trying several different types of pumps that will achieve the goal, which is to minimize or completely eliminate the flow waters that would go by and enter the tribal lands. Not being successful despite every attempt, we've now gone to a more modern system. And because of the flows onto the tribal lands, concern by the tribal government, and their renewed commitment to stop those flows, we had a discussion internally over the summer. The decision was made to get some quotes. Those quotes are clearly listed in the staff report. And there are attachments related to that. Based on further discussion that's related to conversations with other governmental agencies -- not local, but county and state and federal -- we decided it best to go ahead and move forward with the Town Manager's approval. Having said that, the pump has been reinstalled, and it is a new one, state of the art. It is not yet energized, as we are working to bring the electricity from the current location into an area that will in the very near future have a screen wall around it so it will be more esthetically pleasing. It will also provide some protections for the facility. With that, we intend to have it energized and up and running by the end of September if everything works out right. And so far, we're right on track. I'll do my best to answer any questions that you may have related to this item. MAYOR FRIEDEL: I see no questions. Councilman Skillicorn? SKILLICORN: I'd like to make a motion to approve as drafted. WATTS: Second. MAYOR FRIEDEL: Okay. We have a motion and a second. Town Clerk, can we get a roll call, please? BENDER: Councilmember Skillicorn? Meeting Packet Page 33 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 22 of 45 SKILLICORN: Yes. BENDER: Councilmember Larrabee? LARRABEE: 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, 6-0. MAYOR FRIEDEL: Thank you. Okay. We'll move on to item 9.(c.), which is discussion and possible direction regarding amendments to the Town Code for Sections 10-2-8, 10-2-9 relating to handbills. Rachael? GOODWIN: Thank you, Mayor. Just a reminder, this item is actually for discussion and direction, so not formal action. What we're looking to discuss and what John will walk through tonight is our current ordinances on handbills. There are some conflicts as well as some Constitutionality questions. So we just need to get those addressed and get some direction on how we'd like to correct those. So John, I'll let you walk through that. WESLEY: Thank you. Mayor, Councilmembers, good to see you here again this evening. So as said, we're dealing with three different sections of the Town Code. But to put it all in perspective, Article 10-2 addresses litter issues. Sections 10-2-8 and 10-2-9 address handbills from that perspective. Currently, the ordinance provides some distinctions between commercial and noncommercial handbills. And there's some legal concerns with having that distinction with those items. So going a little deeper, Section 10-2-1 provides some definitions, which includes definitions of handbills and commercial and Meeting Packet Page 34 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 23 of 45 noncommercial handbills. 10-2-8 deals with handbills on public property and basically prohibits the distribution of commercial handbills, but allows noncommercial handbills to be distributed if they're handed to someone. You can't just leave them around, but have to be physically handed to someone. And then moving to 10-2-9, which deals with private property, does not allow commercial or noncommercial handbills to be placed on vehicles or deposited on property known to be vacant, to be left on property posted for no trespassing, and so forth. And then we get down to D and E . D says you may leave commercial or noncommercial handbills on inhabited properties if they're secured, but then E says, "can only leave commercial handbills if accepted by an occupant." So there are a couple of concerns here as has been noted. First of all, the distinction between commercial and noncommercial handbills would be that there are some legal concerns with that. And then, the conflict between subsections D and E, where one says you can put commercial if it's secured and the next one says you can only do commercial if it's accepted by someone. So those are the areas we want to focus on this evening and looking for your direction on. The first one, we think is fairly easy with regard to the commercial versus the noncommercial. To make sure we are legal with regard to Constitutional free speech, we just need to eliminate those distinctions and just talk about handbills regardless of commercial or noncommercial. Our real question for Council this evening is with that conflict between D and E, and is it okay, then, for any handbill, whether commercial or noncommercial, to be left on property as long as it's secured? Or do we want to have any handbill that's left only if someone accepts it? And so again, that's the main direction that we're looking for. So we can come back to you with an ordinance that handles this the way you'd like to see it done. Staff does have a concern about handbills that are left that are secured. Sometimes, that secure nature isn't as secure as people think. They can still get blown around, creating a litter issue. And then also, if a person really isn't careful about it, if somebody's actually occupying the property at the time or not, they could be left in front of homes where people aren't there for an extended period. And that then could create a public safety issue with some people that are going Meeting Packet Page 35 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 24 of 45 to be able to recognize that it doesn't look like anybody's home. So those are concerns with that. But again, looking for Council direction how you'd like to see us address this. MAYOR FRIEDEL: Councilmember Watts? WATTS: Thanks, John. Can you tell me what a handbill is by size, number of pages? Is there a consistent definition on commercial and residential? WESLEY: Commercial or noncommercial? Councilmember, I'd need to go back to the ordinance. I didn't memorize that to just be able to say it. But I don't recall anything in the ordinance that does it by size. It is by content, really, if it has a commercial or noncommercial nature to it. Give me just a second to get there. So again, 10-2-1 -- let's see. It should be up. So it has a rather lengthy definition of commercial handbill. And I could read the whole thing, but it's -- again, it's rather long. But I'll just do the first part. "Any printed or written matter of any sample or size, circular, leaflet, pamphlet, paper, booklet, or any other printed or otherwise reproduced original or copies of any matter of literature." Then it goes into a more extensive -- WATTS: I think you had it when you said any size. WESLEY: Yes. And then, noncommercial, again, means "any printed or written matter, any sample or device, circular, leaflet, pamphlet, magazine, paper, booklet, or any other printed or otherwise reproduced original copies of any matter of literature not included in definitions of commercial." So it doesn't reference any size. WATTS: And is it the same for during the election seasons? WESLEY: Correct. WATTS: So the election season takes priority over our ordinance, or vice versa? WESLEY: So again, if it meets the definition of a handbill, and most of the materials that are left as part of election would today be considered, I believe, a noncommercial handbill. But they're still a handbill. WATTS: Okay. And how do we determine if a residence, noncommercial facility is occupied or not? WESLEY: I think that's one of the challenges with the code. It says inhabited, uninhabited, or vacant. And sometimes, that's difficult to say if somebody's just off for Meeting Packet Page 36 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 25 of 45 an extended period or it's a winter visitor or if it truly is a vacant property. WATTS: Definitely a challenge. WESLEY: Yes, it is. WATTS: Thanks. MAYOR FRIEDEL: Councilman? SKILLICORN: Thank you, Mr. Mayor. One thing that I just want to refresh the staff and one thing that I would support is something that's drafted very narrowly to protect First Amendment rights. The First Amendment is very clear. "Shall not" is actually in the First Amendment. So that the distinction between noncommercial and commercial, that should be cleared up. And I have every right to post a Post-it note on my neighbor's door. So I think we need to remember that when we're drafting. And we want to be very narrow, and we need to protect First Amendment rights. And that's what I would require if I'm going to vote pro or con. LARRABEE: Thank you, Mayor. I would echo that sentiment. I appreciate your identification of the commercial and noncommercial distinction so that we can clear that up. And while writing this ordinance, I agree that we need to err on the side of freedom. I would like to ensure that we're defending First Amendment rights. But I will add that for public safety concerns, I do agree with that. Some houses, when the Amazon packages start piling up, you start to think, oh no, people are going to realize they've been gone for a while. So I would recommend some kind of language in there of out of sight from the street or something that just allows for us to protect the privacy of the homeowner as well as the First Amendment rights of the handbill or -- I don't know what to call it, but thank you. KALIVIANAKIS: Thank you, Mr. Mayor. And I'd like to address a question to our staff. And then after comment cards, I do have a statement I'd like to make, too. And my first thing is, it's come up that there's a Constitutional issue whether you have a right to go on somebody's property and put a Post-it note on their door. And I was wondering, could we get a legal opinion, or would that be permissible to have the Town Attorney weigh in? Is there such a Constitutional right? Meeting Packet Page 37 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 26 of 45 WRIGHT: Yeah. So as long as there's no no trespassing signs, you do have a right to go to somebody's door and, I guess, leave something behind unless it becomes a nuisance. So there are issues with trash. So we can regulate whether or not something is left behind or not left behind because there are esthetic issues. There's trash issues. This is actually in, I believe, the part of our code that's litter in particular. So this is in the litter section of the code. So you certainly have a right to go unless there's a no trespassing sign, in which case you can't enter a person's premises without their approval. But you do have a right to otherwise go to someone's door. In regards to leaving something behind, again, this is a litter issue. So if you were to leave something behind, it was unsecured, it would start blowing around. It would not just remain on that person's property. So I don't -- it's hard to say whether a Post-it note would stick if it's a dusty door and things like that. It's hard to say that's -- I'm not going to give a direct legal opinion as to whether or not a Post-it note per se, but we can regulate whether or not things are left behind in a way that would cause litter in the neighborhood. KALIVIANAKIS: Okay. Great. And then, let's just drill down on one more thing. Do we have the right as a Town to make the requirement that it's got to be accepted by a person? WRIGHT: Yes. We can make the requirement that you cannot leave paper behind. So we could say that -- you really have two choices that you can leave it behind secured or you can't leave it behind at all. And that would be legally permissible because it's a litter issue. Because the problem is, is whether or not it creates litter in the communities. KALIVIANAKIS: So both options that Mr. Wesley presented would be permissible? WRIGHT: Yeah. The big issue on the legality right now that -- first of all, the big issue is that we have inconsistencies. KALIVIANAKIS: Right. WRIGHT: The two sections contradict each other. So that's a problem. And then, the main issue from a legal standpoint is the commercial/noncommercial because that's content regulation. KALIVIANAKIS: Yeah. Thank you so much. And yeah. I agree we have to tie that Meeting Packet Page 38 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 27 of 45 together for commercial/noncommercial. That's a no-brainer. Again, reserving my comment for later, I do have concerns in the snowbird community and where people take a lot of vacations having acclamation (sic) of all these brochures, fliers, landscaping, all this kind of stuff in front of your house. But we'll address it after comment cards. Thank you. MAYOR FRIEDEL: Vice Mayor? EARLE: Thank you, Mayor. I just want to get clear on this. Is what you're saying is you're going to take out the noncommercial or commercial? It's just going to be all the same for both? WESLEY: Just handbill. EARLE: So that's great. And then I would go along with Councilwoman Larrabee -- I wanted to say Toth -- Larabee and Councilman Skillicorn. If I understood him right, I would -- if we're just doing discussion here, what I would support is being able to leave the handbills, but out of sight. So I don't know if a Post-it note is in sight or not, but it seems maybe it would be. Maybe you'd have to hide the Post-it note, but that would be my opinion. MAYOR FRIEDEL: Councilman? SKILLICORN: Thank you, Mr. Mayor. On note, it was kind of was brought up about if it's actually accepted by a person. I want to remind you, the post office will leave a Post-it note on the door if a package requires a signature and nobody's home. Also, the same thing with Amazon. They'll drop it off without even ringing your doorbell, and it's not accepted by a person. And to restrict that, I really don't see the post office obeying it, to be honest. Are we going to be certain finding mailmen? I doubt it. And if we're not going to do that, I don't see this as being plausible. MAYOR FRIEDEL: Councilman? WATTS: I kind of like the idea of prohibiting leaving it off the door because it eliminates process servers. On a lighter note, is putting it under a doormat with it sticking out from underneath a doormat acceptable? It's secure under the doormat. So it's more of a legal question. Meeting Packet Page 39 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 28 of 45 WRIGHT: Oops. There we go. So I think the question is, is if you wanted it -- because I think the current statute states -- or current code states that it must be secured if it's a noncommercial handbill. So under a doormat would be considered secured because the doormat is keeping it down. If the question is that if we wanted to change the code to be, it has to be secured and out of sight, I would also think that under a doormat, as long as it's placed in a way that is not seen from the street -- we'd have to say something out of sight from the casual observer on a road, passerby to a degree. So we'd have to define what we mean by out of sight. Does it mean completely out of sight so it's completely under the doormat and nobody knows it's there? Probably not. But do we need to make sure that it's not readily visible from the casual passerbyer (sic), yes, if we're going to say it has to be out of sight. WATTS: That'll be interesting to try to define that where from the street you can't -- you can see a doormat. MAYOR FRIEDEL: Pardon? WATTS: From the street, you can't see a doormat. It's flat. You can't see what's underneath it. If you put it underneath a doormat, the resident or the entity where the doormat is isn't going to be able to see it either. So you have challenges both ways. WRIGHT: Yeah. I think there's probably a way to put it under the doormat where it sticks out enough where you can see it as you open your door, but it's not visible from the road. WATTS: That's what I would look for. Right. WRIGHT: So I mean, if we were to craft a code that says that it has to be secured and generally out of sight so it can't be visibly or readily seen from the street, that could be something that could be administered to. I mean, are we going to give somebody a citation if you can actually see? I think the general premise is what we don't want to have happen is a pile of handbills on somebody's unoccupied residence, which I think we would still want to keep the language that exists that states that you generally shouldn't be doing -- like, if you go there and you see ten other handbills, you probably shouldn't be the 11th. You probably shouldn't have been the second or the third. The Meeting Packet Page 40 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 29 of 45 first one didn't know, but by the time you get to four or five or six, they know at that point. MAYOR FRIEDEL: Do we have any comment cards? BENDER: Mayor, we do not have comment cards. MAYOR FRIEDEL: Okay. Do we have any other questions or comments from Council? Go ahead. KALIVIANAKIS: Thank you, Mr. Mayor. Yeah. Again, I think we should consolidate the two sections. I think it's a good call that you noticed the confliction. And if we're going to straighten out this ordinance, I would be for handing it to the person. I just point out two things that I think the average Fountain Hills resident -- I think if you polled the snowbirds, everyone would say, yeah, don't put that junk when we're gone. If you polled people that take vacations a lot, they would be 100 hundred percent, I don't want a bunch of junk on my doorstep. And I think if you polled the rest of the population, they'd be like, no, I don't even like junk mail in my mailbox. And so do I want people coming up here and putting a bunch of fliers? Unfortunately, we live in the real world, so if there's two or three or four, they're not going to care. There are going to be five, six, and seven because they're paid to put these things out there and they're going to put it. So I think -- the average person in Fountain Hills would, I think, would be begging us, reject that. If I'm home, they can give it to me. If I'm not, don't put all that junk. And then, the other thing I just think I have to point out is the conflict of interest that this Council has because every two years, we have election cycles. And so it is in our interest when everybody is out door-knocking and soliciting votes that we're all going to be voting on something that's going to affect us. I think that all seven of us or six should be recused because we're biased. Of course, we want to put political stuff on people's property. And so I don't like that conflict. I think that's probably why we're going to vote for it because it's going to be good for our business, the politicians. But I don't think this is something that the residents want. And that's all I have. Thank you, Mr. Mayor. MAYOR FRIEDEL: Do you have enough direction? Meeting Packet Page 41 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 30 of 45 WESLEY. Yes, Mayor. I believe so. MAYOR FRIEDEL: All right. I don't see any other questions or comments. So we appreciate your presentation. Thank you. Moving on to item 9.(d.). Town Manager, Rachael? GOODWIN: Thank you, Mayor. Paul's going to introduce this item. This item really is up for discussion at a Council level. He's going to outline some of the facts around the proposed stipend increases, and then we will turn it over for you guys for discussion. Paul? SOLDINGER: All right. Welcome back, Mayor, Vice Mayor, and Council. Thank you for the opportunity. Just like Rachael mentioned, I'll just give some brief background and turn it over to you for discussion. So Mayor and Council compensation was first established back in April of 1992. I believe I was in elementary school back then. It's been a long time. Probably just starting elementary school at the time. $300 per month for Councilmembers, $400 per month for the Mayor at that time. Then in 2000, compensation for the Council was adjusted to current amounts, so it's been in place since 2000 at $400 per month for Councilmembers and $600 per month for the Mayor. Town Code in Arizona law does allow the Council to adjust or approve increased compensation by a resolution. The Town Council did consider a similar resolution, 2025-18, last May. It was denied by a 3-4 vote during that meeting to increase the amounts to $750 for the Councilmembers and $1,100 per month for the Mayor. But after that fact, the Council did have a couple more conversations about this subject. There was some conversation at the June 17th, 2025 regular meeting. And we specifically had a work session discussing Town staff and Council pay at the time. And so during those conversations, we were directed there was enough Councilmember interest to revisit this subject. And so tonight, we're reconsidering a similar resolution, but a different resolution, 2026-04, which revisits the idea of increasing the base stipend pay starting in December of 2026 to $750 per month for the Councilmembers, $1,100 per month for the Mayor. And just to know, there will be another agenda item right after this also considering whether Councilmember Meeting Packet Page 42 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 31 of 45 member stipends could be aligned with Town staff pay adjustments. So with that, I'll turn it back to the Council for further discussion. KALIVIANAKIS: Thank you, Mr. Mayor. Could we just clear up a stipend versus a salary? Because we got a lot of comment cards, and I got a lot of feedback from the public. And it seems like they're interchanging those two terms with abandon. Is there a difference between salary and a stipend? SOLDINGER: Mayor, Councilwoman Kalivianakis, I'd say there is. In this regard, it's kind of interchangeable. But a stipend is typically for your everyday expenses, right? Traveling, office supplies, use of your office, things like that. And so that's how we've characterized the stipend for the Council is covering your everyday costs to cover your responsibilities. Salary or other compensation is typically for the duties being performed. So that is how it's characterized in the resolution. KALIVIANAKIS: Thank you for clearing that up because I think that's something that's been missed by a lot of people. And that was my definition, too, that stipends are usually associated with colleges, universities for lodging and for continuing education, those type of things. And so because some of the comment cards are like, well, yeah, let's give them a higher salary because we'll attract better Councilmembers in the future, which is probably a good argument. But then, we should -- I think we should be talking about giving ourselves a salary and not a stipend. And then we can set that salary according to maybe other towns and municipalities. But that's not a conversation that we're having tonight. And so my last question to you would be, have Councilmembers come to you saying that this stipend of $400 for the Council and 600 for the Mayor is simply not enough for their continuing education and for their daily expenses of being on the Council? Has that been a problem that Councilmembers are coming to you and you're having to decide whether they should be approved or not as expenses? SOLDINGER: Mayor, Councilwoman, no. I wouldn't say that that's been a regular conversation. It's really been more at a Council level. There have been some conversations about it simply just not being adjusted for 26 years to account for Meeting Packet Page 43 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 32 of 45 inflation. That's really the internal conversations that have been had. But no particular Councilmember has discussed that with respect to that to me. KALIVIANAKIS: Okay. So this isn't on the agenda. trying to fix a problem. It's just maybe addressing something that hasn't been dealt with for a long time. Fair statement? SOLDINGER: Councilwoman, that's how I'd characterize it based on my understanding. But again, it's a Council-driven discussion. So I don't want to put words in anyone's mouth in this conversation. KALIVIANAKIS: Okay. SOLDINGER: Yeah. But I appreciate the question. KALIVIANAKIS: Thank you. LARRABEE: Thank you. Thank you, Mayor. And thank you, Paul. One thing to note is I was two years old when this current stipend was set, maybe less than two years old. I didn't look at the month. But when we're talking about bringing this up for inflation, I think it's really important to note that technically, this amount that we're changing it to is less than what $400 was worth in that year per month. So as we know, the world has changed a lot in 25, 26-ish years. And I think we need to set that mindset of this is less than what we were paying ourselves in 2000 as far as the value of the money. On top of that, if we have concerns regarding cost, I haven't figured out the exact dollar figure, but I know I personally have taken unpaid time off from my position to be able to attend budget meetings, various Town events over the four years that I've been on Council. I would not be surprised if my gas from where I work in Ahwatukee, my lost hours at work probably add up to about this amount. On top of that, something that has been part of the conversation in our past talks about this has been whether or not this Council is accessible to people who work. At this present moment before passing this resolution, it is simply not. I actually -- when I was running for office, I had someone sit me down and ask me what I was up to because there's no way someone in their 20s was dumb enough to do this, losing as much money as you would. And I literally had to convince him that this wasn't some kind of weird Hannah taking over the world thing. I do not believe that Meeting Packet Page 44 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 33 of 45 government officials should be overly compensated. But I do believe that it's a little silly that we were being compensated so low that people thought I was up to something because I was a young person, nonretired, trying to run. So I'm not saying we need a whole Council of people in their 20s, but a lot of people work even if they are retirement age. A lot of people still work. If they're getting paid hourly, they're getting screwed if they run for Council. So that is why I support this. WATTS: Are we going to vote on this tonight? We are? MAYOR FRIEDEL: Yeah. WATTS: Okay. Then my position is real simple. When we were all running for seats on the Council, this was never raised. And everybody on this Council knew what the stipend was whether it was compensation or not. I think it's disingenuous and self-serving to raise it ourselves today so that we benefit from it. I think that if we wanted to increase it now, it should be for the next Council. It shouldn't be for this Council, the people that are seated on it. And for that reason and several others, I'd be a no when we vote for this. LARRABEE: I had a clarifying question. Paul, at what date does this increase come into effect? SOLDINGER: So Mayor, Councilwoman Larrabee, based on the resolution as drafted, it would begin December of 2026 for when the new Councilmembers would be seated. But there would be existing Councilmembers on the dais still. LARRABEE: Right. So technically speaking, there is no possible reality where a Town Council could approve this and it would last for a brand new Council because there's always three veterans on the Council. SOLDINGER: That logic passes. Yes. LARRABEE: Thank you. SOLDINGER: I believe. GOODWIN: You can actually pass it for the '28 or for a future Council -- SOLDINGER: Sure. GOODWIN: -- when none of the -- any of the body is still available. Meeting Packet Page 45 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 34 of 45 LARRABEE: And we would assume that none of those people are running for reelection or already plan to run for reelection. GOODWIN: Correct. LARRABEE: I happen to know of people who do plan to run for reelection. So I think that the reason that this has not been dealt with in 25 years is because we keep saying things like this of, well, it shouldn't be for us. Well, we shouldn't start it now. Well, if we do it for the next Council. Well, I don't want to bring it up because people get mad about it. And that's how we got 25 years behind. And in a lot of ways, I view this issue similarly to our downtown project. It's a can that kept getting kicked down the road until it was an alarm going off. Thank you. EARLE: Thank you, Mayor. I just want to go off of Hannah's comment as well. This was brought up when Ginny was the mayor. And I know we called her blue, but Sharon, right, was on the Council at that time. They did not vote for it because they said it would have to be a future Council. So how many times are we going to keep saying it's a future Council? If we vote now, it is for future Council and going forward. At some point, there's going to be a few people on here that will benefit. But it's going -- it can't go into effect until the new Council is seated December 1st. I kind of see it as selfish to not do it for future Council, so. Also, we're bringing it back again. It's just an adjustment to restoration, not a raise. And if this was what they felt was the amount, $400, I see it as 26 years later because we're in 2026. At what point does it become almost moot, that amount of money, if inflation keeps going forward? WATTS: I think I like the idea of voting on it for the 2028, moving it out into the distance where we may or may not be on the Council at that point. We may or may not run. But right now, our fiduciary responsibility is the finances of this town. And put the Town first and foremost, not ourselves. And it's self-enriching if you're sitting on the Council and you're going to be benefited by the increase right now starting in December. It's disingenuous to say, why didn't we talk about it during the election cycle? Nobody raised this during the election cycle. And yet, everybody knew. I think that's the part that becomes self-serving today. And yes, at some point we've got to do it. Push it to Meeting Packet Page 46 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 35 of 45 2028, and I'll be a supporter. Right now, I'm not going to be a supporter for December. MAYOR FRIEDEL: Do we have any comment cards, Town Clerk? BENDER: Mayor received 15 online cards. Ten were for this item, five were against. We have three speakers. Those speakers are, in this order, Gregg Dudash, Linda Somo, and Lori Troller. DUDASH: Gregg Dudash, Fountain Hills resident. And welcome back, Mayor, Vice Mayor, and Council. This is a very interesting question. And a lot of people are confused about it. First of all, the state law, it cannot take effect until the next new Council session. So if you were to do it in January, it would kick out to another two years. The thing is, it's been 25 years, 26 years since we've looked at this, okay? My professional background, I would technically be called a subject matter expert. And the reason for that is master's degree in human resources, over a dozen years in personnel, my first five years were in compensation and benefits in a public sector environment in Chicago. I actually worked on the plan to bring the rate of our commissioners up. So I've done this. And let me tell you how -- the first problem is people think that this is a raise. And they're saying, you're going to double the person's salary. This is not a raise. A raise is a merit increase. That has to do with the individual. In compensation, we're looking at the classification here. There's two classes, actually. And we look at the class. And the incumbent is separate from that. It doesn't matter who's in it. And these are also what we would call a single-rate class, meaning it doesn't change. Whether you're in for four minutes or for four years, that pay is always the same. And by the way, this is a salary. This is what it is. We have not looked at this in 25 years. As a compensation professional, I shake my head and say, that's a problem. Let me tell you how we would go about doing this. We start with the job descriptions of the two classifications. We then go out and we find similar organizations; in this case, municipalities. We look at if they have similar jobs. And guess what? Perfect match. Every municipality has councilmembers. Every municipality, for the most part, has a mayor. So we have a perfect match there. I looked at it, and I limited it to East Valley for a number of reasons. But to simplify it -- and I'm looking at six different Meeting Packet Page 47 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 36 of 45 municipalities -- there are three municipalities that don't pay council or mayor anything. And as you can imagine, Paradise Valley is in there. The problem with that is, is that you end up getting retired millionaires filling the position. And you don't get the stratification of earnings that you want to bring into an elected position. So it's important to pay for these two positions. I went and I looked, and you're going to be shocked at what goes on here. The average is seven times more than the current rate. That's not seven percent, seven times more. We are so far behind that we're literally a joke. The least paid was Apache Junction. They had been double what you are paid now. They finally kicked it up to the municipal average. And by the way, everybody else is also doing the automatic compensation. So the bottom line is, I'm going to recommend the amount for mayor should be $5,000. The amount for councilmembers should be $3,000. That is the average. MAYOR FRIEDEL: I hate to interrupt you, but your time is up. DUDASH: Well, you'll do what you're going to do, but that's my recommendation. MAYOR FRIEDEL: Thank you. DUDASH: Thank you. SOMO: Mr. Mayor, Councilmembers, my name is Linda Somo. And I am a resident of Fountain Hills. No one is denying that there is time, effort, and sometimes your own resources required to do the job that you're doing. But let me also remind you that it's not a job. It's a civic duty. We did not hire you. We voted for you. And you are serving our community. I believe that you do need a stipend because of the time, effort, and any losses that you might have experienced because of having to miss hours on your job. But an 83 percent increase immediately for anyone who's currently on the Council and will continue to serve, or 87 percent increase for the mayor who will continue to serve seems a bit out of proportion. I thoroughly agree with Councilmember Watts. And it seems very self-serving that you would vote on it now. As was recommended, if you just postpone it until your January meeting, it would not go into effect until the 2028 counsel takes effect. And by then, it could be anybody. It might not be anyone who's currently on the dais, and you could at least say, this wasn't self-serving. I'm Meeting Packet Page 48 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 37 of 45 doing it for future Council. So I would encourage you to postpone this at least. And at the very least, if you choose to pass this tonight, do not attach it to automatic increases for staff in the future. Talk about self-serving, that is extremely self-serving. MAYOR FRIEDEL: That's a different agenda item. That's a different agenda item. And if you want to come up and talk to that one, you can. SOMO: I understand that. MAYOR FRIEDEL: We're not conflating the two right now. SOMO: Thank you. But I thought I would mention that since it is the next item. Thank you. MAYOR FRIEDEL: Thank you. TROLLER: Hi. Lori Troller. I didn't ask to speak, but I'll take it anyway. So I'm going to take Rick's perspective and flip it a little. If you guys had the salary that Gregg just said, seven times -- if we were at the rate where we should be, would we ever come and say, we're going to be fiscally responsible and we're going to take seven -- we're going to reduce our salary -- the pay -- by seven times? Would we ever be at the level where we should be and say, we're being fiscally responsible, and cut it? Would you ever go backwards? You wouldn't. I don't think you would. So it's the same argument. But I honestly believe -- I'm in the private sector. If I wasn't getting paid at the current rate, I'd pick a different job. So I'm just saying, take that same argument, go the other way. I don't think you'd cut it. UNIDENTIFIED SPEAKER: We can't hear you. TROLLER: So that's it. Should I say it again? She couldn't hear me. Should I say it again? Could you hear me? I'm right here. Oh, there it is. So I can restate that, but that's my thought. We're good? Okay. Thanks. LARRABEE: Thank you, Mayor. I did want to provide a quick clarification that one of the suggested solutions would be to postpone this to the January meeting. At that time, the three new Councilmembers would be sworn in and therefore, also voting for their own stipend increase. Just wanted to provide that clarification. KALIVIANAKIS: Okay. Thank you. Gerry. Yeah, I would I'd be much more amenable if Meeting Packet Page 49 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 38 of 45 we were going to make this effective December of '28, like was mentioned earlier. I'm still a little bothered by the fact that we're addressing this tonight, just because it hasn't been addressed in a number of years. The question of whether the Council has established a sufficient basis to justify an increase of this magnitude hasn't been established. It wasn't in the staff report, and it wasn't really talked about. Before elected officials vote to substantially increase the compensation attached to our offices, I believe there should be an objective basis for doing so that would include workload analysis or a compensation study, which, again, were not in our packet. I haven't seen that analysis or any other objective analysis that demonstrates why this is warranted. It's an 83- or 87-percent increase. To me, it's 100 percent. And that's a lot. Based on that information today, if somebody would want to make a motion to maybe put this in a couple of years from now, I'd be much more amenable to vote yes. But at this point, I'm going to vote no. MAYOR FRIEDEL: Vice Mayor? EARLE: I'd like to make a motion to pass as is. LARRABEE: Second. MAYOR FRIEDEL: We have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Larrabee? LARRABEE: Aye. BENDER: Councilmember Skillicorn? SKILLICORN: No. BENDER: Councilmember Kalivianakis? KALIVIANAKIS: No. BENDER: Councilmember Watts? WATTS: No. BENDER: Vice Mayor Earle? EARLE: Aye. BENDER: And Mayor Friedel? MAYOR FRIEDEL: Aye. Meeting Packet Page 50 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 39 of 45 BENDER: Mayor, 3-3. MAYOR FRIEDEL: Yeah. So that's a no. Thank you. We'll move on to item E. Well, item E is really moot now, right? Yeah. We don't even need to address item E. SKILLICORN: Wouldn't it still apply? EARLE: Yeah. Why would it not apply? MAYOR FRIEDEL: Oh, well. GOODWIN: Even if you don't adjust the stipend -- MAYOR FRIEDEL: Yeah, you could -- GOODWIN: -- I believe the salaries as today -- MAYOR FRIEDEL: All right. So we'll move on to item E, which is the cost-of-living increase. SOLDINGER: All right. Moving on. Mayor and Council, this one, this is resolution 2026-05. Similar background; Town Code and Arizona law do allow for the Council to approve increased compensation by resolution. So as you know, during the budget discussions, the Council approves a annual general adjustment for Town staff. So this year, for fiscal year '27, it was 3.8 percent for Town staff. However, as we've discussed, the Council stipends have not received annual adjustments. Again, you've had conversations on the subject, and there was interest in visiting this particular item. So we drafted resolution 2026-05, which would align annual increases between Council stipends, annual Town staff pay adjustments. And this would begin with next fiscal year 2028. MAYOR FRIEDEL: Councilman? SKILLICORN: Thank you, Mr. Mayor. I'd like to make a motion to approve resolution 2026-05 as drafted. LARRABEE: Second. MAYOR FRIEDEL: Do we have any comment cards on this one? BENDER: Mayor, we have 11 speaker cards that were turned in online; 3 for and 8 against. And then we have one speaker card. It's Gregg Dudash. MAYOR FRIEDEL: He's declining to speak. So we have a motion and a second. Can we Meeting Packet Page 51 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 40 of 45 get a roll call on this one? KALIVIANAKIS: Could I just address this very quickly? MAYOR FRIEDEL: Sure. KALIVIANAKIS: Thank you, Mr. Mayor. Again, I think with the stipend falling down, I just Googled when do people get pay raises? And that's basically when their job duties grow, their performance excels. And there's a list of reasons that people get pay raises. Again, with a stipend, if people spend more money on training or education or gas mileage, they can turn it in as a voucher to the appropriate person, Town staffer. Just putting a COLA in a stipend, to me, it's a nonsequitur. It doesn't make sense. MAYOR FRIEDEL: Councilwoman? LARRABEE: Thank you, Mayor. I'd like to point out a change in wording to benefit a certain narrative. When we were talking about the difference between a stipend and a salary, it was clarified that that was to do with cost. Now, we've Googled whether people get pay raises for anything other than job performance. If we're referring to cost, it makes even more sense for this to be adjusted with the cost-of-living adjustment of our Town staff because, again, as inflation increases, your money goes down in value. That's why we all know that if we bury cash under a mattress, you're technically losing money. But if you invest it, you might be earning money. It's the same difference. With inflation of each year, cost-of-living increases. And therefore, this would increase the stipend as it was so clarified in the last item for the Council members. Thank you. MAYOR FRIEDEL: Councilman? WATTS: Paul, when would the cost-of-living adjustment take place? Same time frame that staff? SOLDINGER: Yes. WATTS: And what month is that? SOLDINGER: So Mayor, Councilman Watts, so once the budget is adopted in July, the very first full pay period in July, that's when we apply the adjustment. WATTS: So this wouldn't take effect until next July? SOLDINGER: July of 2027, yes. Meeting Packet Page 52 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 41 of 45 WATTS: Thanks. MAYOR FRIEDEL: Okay. We have a motion and a second. Can we get a roll call, please? BENDER: Councilmember Kalivianakis? KALIVIANAKIS: Nay. BENDER: Councilmember Larrabee? LARRABEE: Aye. BENDER: Councilmember Watts? WATTS: Aye. BENDER: Councilmember Skillicorn? SKILLICORN: Yes. BENDER: Vice Mayor Earle? EARLE: Aye. BENDER: And Mayor Friedel? MAYOR FRIEDEL: Aye. BENDER: Mayor, 5-1. MAYOR FRIEDEL: Thank you. Thank you, Paul. We'll move on now to the call to the public. Town Clerk, do we have any speakers? BENDER: Mayor, we have one card, Ann Kinnie. KINNIE: Good evening, Mayor and Councilmembers. My concern is cell phone use. I've lived in two states. I'm sorry. I've lived in two states in the years since cell phones have been on our bodies and part of our lives. In those two states, towns had similar governments; a mayor, town council. And until I moved to Fountain Hills, I never saw some members of the Town Council on their cell phones during meetings. I don't think many of you are aware of the optics that come along with that. I was in education my whole career. Our phones stayed at our offices, not in a meeting. And I think that's something you should or may at least consider because sometimes, it looks -- there's some disinterest. And at the worst -- and I don't know any other way to describe it -- it sometimes looks like some of you are waiting to hear from your handlers, spouses, Meeting Packet Page 53 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 42 of 45 someone before you answer or contribute to a conversation. And I don't think that's the object or the optics that you'd like to portray to your constituents. And if you go back and watch any of the last Council meetings the last -- I've come to about half, and I watched about half online. If you can be objective and watch some of these online, you'll see that I'm pretty accurate that there's a lot of heads down on your phones. And I just personally -- maybe it's my bugaboo, but I find it unprofessional and almost offensive. Thank you. MAYOR FRIEDEL: Thank you. Any other speakers? No. Okay. We'll move on to Council discussion and direction to the Town Manager. Anybody have anything they need to bring up? Any future agenda items, Rick? WATTS: I'd kind of like to get an update on where we're at with the e-bike situation. Do you have that, or is that something for Capt. Thomas? GOODWIN: So it'll be a joint -- It's still a joint conversation between Capt. Thomas and -- well, you had Kevin Snipes also offer sort of the perspective from the park side of things. The direction that we received was to kind of see if we could collaborate to improve our current ordinances. That is still underway. And I don't want to put Capt. Thomas on the spot right now -- WATTS: Oh, go ahead. GOODWIN: -- but there is a conversation. I know Kevin Snipes is not here tonight. But it is on the docket for further effort later this fall. WATTS: Thank you. KALIVIANAKIS: Okay. Thank you, Jerry. Rachael, if you recall the former Council, I did make a motion for future business to eliminate these things from the dais. And I did get a second and a third. This was under former Mayor Dickey, and it never did get a hearing. So there really is still a future agenda item lurking out there for the elimination of cell phones during Council meetings. I don't know if we can get a legal opinion, maybe later or something. And is a future agenda item that was legally put on the future agenda that was never brought up Meeting Packet Page 54 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 43 of 45 by the mayor, could we be willing to still entertain that? Does it time out? And I made the motion, so I know. GOODWIN: Sure. I would need to go back and actually review -- KALIVIANAKIS: Yeah. GOODWIN: -- what that was. KALIVIANAKIS: Yeah. GOODWIN: And I'm sure -- I mean, I can work with Jen to give you a follow-up on that one. KALIVIANAKIS: Okay. Great. Thank you. GOODWIN: Um-hum. MAYOR FRIEDEL: Councilman? SKILLICORN: Thank you, Mr. Mayor. I actually have three future agenda items that I'd like to propose. One is an ordinance regulating automatic license plate readers if I've got a couple seconds on that. WATTS: I'd second that one. LARRABEE: I would third it. SKILLICORN: All right. Next one would be a discussion, basically having, like, a policy on water usage. Obviously, we would have to double-check what's legal state-law-wise and zoning-wise. But I'd like to have a comprehensive water discussion for the Town if we've got two seconds on that. WATTS: Can I get some clarification on what you're trying to get? SKILLICORN: Well, the Open Meetings Act would prohibit me from talking about some of the details of it. But my vision is we're going to have to discuss it as a Council and see where our preferences lay to move forward. But it's also good to have this in the public so people know where we stand on the issue. WATTS: So it's really a direction to staff more than anything else? SKILLICORN: Yeah. So I'm not proposing an ordinance. I want the Council to direct our attorney to come up with a -- and it may not be an ordinance. It may not be able do anything legally. But also, it could be multiple ordinances. It could be something we Meeting Packet Page 55 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 44 of 45 add to our strategic plan, things like that. WATTS: I think I'd second that. I'd think it'd be good for the public to know the steps that we've taken, just like the corner of Shea and Fountain Hills Boulevard and the thousands and thousands of gallons that we've saved there. I think it would be two million? Wow. So yes, I would be a second on that. SKILLICORN: And my third is just a minor revision in rules. I know we talked about this spring, I think. I just think how things are operating, I just think we want to have a minor clarification on rules. I don't know if I have a second and third on that. MAYOR FRIEDEL: Rules as they can concern what now? SKILLICORN: I think the Open Meeting Act would prohibit me from going into it in depth. GOODWIN: Councilmember, are you talking Rules of Procedure? SKILLICORN: Yes, yes. GOODWIN: Okay. I believe there is a tentative hold date for a Rules of Procedure work session because there's a number of changes that have come through from the staff side and through our clerk's office. So there is a plan for that. Is that something -- did you have a time line you're looking to -- SKILLICORN: Again, none of this is like, oh, it has to happen next week-type stuff. I realize if we're adding a whole bunch of things on the agenda, it takes time. GOODWIN: Okay. SKILLICORN: This was a couple specific things that I wanted to make sure are real clear. GOODWIN: Okay. MAYOR FRIEDEL: That's where I was going. I wanted to know what rules. Rules of Procedure. Okay. Thank you. KALIVIANAKIS: Motion to adjourn. SKILLICORN: Second. MAYOR FRIEDEL: All in favor? ALL: Aye. MAYOR FRIEDEL: All right. We're adjourned. Thank you. Meeting Packet Page 56 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 1, 2026 TOWN COUNCIL REGULAR MEETING MINUTES Page 45 of 45 Having no further business, Mayor Gerry Friedel adjourned the regular meeting of the Town Council at 7:13 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 TOWN COUNCIL MEETING OF THE TOWN COUNCIL, FOUNTAIN HILLS, ARIZONA HELD ON SEPTEMBER 1, 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 57 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 1 of 50 TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL September 8, 2026 A Work Session of the Fountain Hills Town Council was convened at 1:00 p.m. Members Present: Mayor Gerry M. Friedel: Vice Mayor Gayle Earle; Councilmember Rick Watts; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Members Not Present: Councilmember Hannah Larrabee and Councilmember Allen Skillicorn Staff Present: Town Manager Rachael Goodwin; Town Attorney Jennifer J. Wright; Deputy Town Clerk Angela Padgett-Espiritu 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 58 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 2 of 50 MAYOR FRIEDEL: Okay. I'm going to call this work session to order. Town Clerk, can we get a roll call, please? BENDER: Sure. Mayor Fidel. MAYOR FRIEDEL: Present. BENDER: Vice Mayor Earle. EARLE: Present. BENDER: Councilmember Kalivianakis. KALIVIANAKIS: Here. BENDER: Councilmember Watts. WATTS: Present. BENDER: Councilmember Larrabee. BENDER: Councilmember McMahon. MCMAHON: Here. BENDER: Councilmember Skillicorn. We have a quorum. MAYOR FRIEDEL: Thank you. Rachael? GOODWIN: Mayor, thank you. Before we begin, I want to briefly frame today's discussion and what we hope to accomplish. The question of how we address our long-term street needs is complicated, and there's not necessarily agreement among the Council or even among our community about what next steps should be. That's exactly why this work session is important. Today, staff will provide the Council with background and context to help establish a common foundation for the discussion. Paul is going to be leading us through, but we'll have David Janover as well, sharing some details. It'll include a look at the town's history with street funding and previous bond efforts, the condition and needs of our roadway system, what we have heard from Meeting Packet Page 59 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 3 of 50 residents, and some of the considerations and concerns that have been raised as we evaluate our options moving forward. The purpose of today is not to presume a particular outcome or funding solution. I want to be clear about that. It's to make sure that the Council has the information needed to have an informed policy discussion. At the conclusion of the presentation and discussion, staff will need clear direction for the Council regarding whether and how you would like us to proceed. That direction will help us determine what additional analysis, funding scenarios, public engagement or other work should come back to the Council for consideration. Our goal today is to provide the facts, understand the Council's priorities and their concerns, and leave with enough direction to responsibly move the conversation forward. So with that, I'm going to turn it over to Paul. He'll take it away. SOLDINGER: All right. Mayor, Vice Mayor, and Council, thank you for another opportunity. Good afternoon. Like Rachael mentioned, we're going to have a comprehensive discussion today. First, we're going to talk about some historical information about road funding, as well as some town survey results. And then I'll turn it over to Public Works to talk about current road conditions. So the town works with Flash Vote to conduct surveys of town residents, and we did conduct a road survey back in March. 452 respondents out of 809 enrolled at the time. And Flash Vote indicates that the margin of error is plus or minus 5 percent. So what -- they were asked if a road bond would speed up road repairs, would you support it or not support it in the next one to two years? So you can see the results on the screen. About 68 percent somewhat support or strongly support. If you add those bottom two up, the 31 percent and the 37 percent. There were those that were against it, nine percent strongly against, nine percent somewhat against, and ten percent neutral. And this survey was sent out to the full mayor and Council. It's also out there for public consumption. Meeting Packet Page 60 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 4 of 50 So for this question, you could choose all that apply, but you'll see that 63 percent said they would want to see a clear explanation of how road projects would be prioritized. 32 percent also said that they would want to see a specific road repair list, and 19 percent said they think road repairs are the highest priority for the town at the current moment. There's also several other options, so you can kind of read it. I'll leave it on the screen for just a moment. Yes, of course. MCMAHON: Thank you. If -- going through these questions, was there anything like, specific as to how, like, people wanted to see exactly how it was going to be spent, not necessarily just on what roads would be repaired, but exactly how every dime of it was going to be spent? Because I know in the past that's been an issue with other bonds and why people said no, because they didn't have clarity on that. SOLDINGER: Yeah. So Mayor, Councilwoman, these questions we -- we drafted just to give people options. So that kind -- that second one, I'd want it to be tied to a specific road repair list. Was trying to get to that point. Do you want us to put together a list if we try to go out with a bond initiative? There were also options for other. You see, ten percent chose other. And a lot of respondents put in comments. 160 or so put in specific comments on the things they'd like to see. MCMAHON: Okay. Thank you. And also I probably missed it, but what was the sampling? I mean, was it just in general for sending out to our residents or how did you pick the sampling? SOLDINGER: It was all of the people signed up for our town-wide surveys. So we don't release the questions ahead of time. We just kind of send it out. And so we've done this a few times. This is just one of the surveys that we sent out. So at the time, there were about 809 signed up and 450 or so responded. MCMAHON: So it's the same people for every survey you send out? SOLDINGER: Everyone signed up for the Flash Vote that we contract with, yeah. So Meeting Packet Page 61 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 5 of 50 every type of survey we send out, whoever signed up will get the link to that survey and have the opportunity to respond. MCMAHON: Okay. So and how often do you advertise this that people can sign up? SOLDINGER: I well, Mike Pelton's not here unfortunately, and Rachael might be able to chime in, but I know that he does put that out there. He's done several public postings about it being available for residents. MCMAHON: Uh-huh. SOLDINGER: I think it's part of his newsletters that he puts out as well. So definitely trying to engage with the residents and trying to get more people signed up. MCMAHON: Okay. Thank you. SOLDINGER: Uh-huh. Got it. Okay. WATTS: And just to clarify, I don't know. I've probably seen a half a dozen from Pelton where he's announced it, and I've signed up and answered the flash as well. So it could be skewed because I answered. SOLDINGER: Okay. Which one did you choose, Councilmember? WATTS: I'm not telling. [LAUGHTER] SOLDINGER: Okay. How much to spend? If you recall, I think it was the last time we met about this topic. We talked about just some examples of 11 or 12 -- $22 million to repair some of our bigger roads in town. So we gave a couple other options. We did zero, 5 million, 11 million, 22 million or 30 million. And as you can see, the results were pretty mixed. But the strongest support was the largest bond, the $30 million bond with 21 percent of respondents choosing that. Second place was $11 million, and then there were people, 11 percent of the respondents said that we don't need extra money for road repairs right now. They wouldn't be interested in a road bond at any price. UNIDENTIFIED SPEAKER: (Indiscernible). Meeting Packet Page 62 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 6 of 50 SOLDINGER: Uh-huh. Also at the bottom, just to point out, 14 percent responded, not sure. Maybe they weren't familiar with the topic. Eight percent chose other, which I'm not sure where that would be on the spectrum of these amounts. Again, 160 or so wrote in some comments, some with constructive feedback, some with, you know, positive comments on things that the town has been doing, you know. So you're going to get that disparate range and comments with any survey. And we do have that within the survey results as well. The main takeaways we want to tell you, majority do support a bond. According to the results, 68 percent at least somewhat support a bond or strongly supported bond within the survey. The -- for the most part, the answers were generally consistent across demographics, because we do have information too. But it was interesting to see that men most strongly supported the bond and the higher dollar amounts as well, in the survey results. EARLE: Can we just -- Yeah. You have a question? MCMAHON: I have a question. SOLDINGER: Sure. MCMAHON: Who gets to go first? EARLE: Okay. How many residents do we have in this town that are of age that could answer such questions? Is it like -- SOLDINGER: I -- yeah -- EARLE: Maybe. Well, this is good. You're getting feedback. And as Councilwoman McMahon said, it's pretty much the same people. But we have hundreds of other thousands of other people that this will affect that didn't get to answer the question. So I'm not a -- it's good to get an idea, but I think we talked about that at the league. When we do polling, it's such a small percentage of the actual people that it's going to affect. But just keeping that in mind. SOLDINGER: Absolutely. Meeting Packet Page 63 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 7 of 50 GOODWIN: I think -- I think to your point it's taken -- ideally, this is giving you sort of a touch point. It is giving you a -- a sense of that feedback. Now, granted, it is while it is statistically valid in terms of our population versus the input that we have, it's not -- it is one touch point, right? It is only one element of the consideration and the discussion. MCMAHON: I have the same concerns as I you know, because the 24,000 residents, et cetera, and we're sampling less than 1,000. It seems like I have a big concern with that. However, it's good to have this information because it is representative, but if the Council moves toward doing a bond, et-cetera, is there going to be -- I'm sure you guys are going to have public community meetings about it, a larger reach for everybody so that we can test the waters and see at that time exactly, you know, what -- what the onslaught is going to be, you know, to have it or not have it, et-cetera, correct? GOODWIN: So -- go ahead, Mayor. MAYOR FRIEDEL: I was going to say, I think the Council can't decide. We would decide whether we want to give the voice to the residents to decide for this, so they will have their voice. ultimately. GOODWIN: Correct. Yeah. If -- if the Council gives direction to move forward with this, yes, there will definitely be public outreach. Again, the survey was just one tool to sort of get a temperature check. It's not the end all be all. And yes, it would take a heavy lift, from whether it's social communications, whether it's in-person meetings, whether -- you know, there's not a one stop shop for us here. We'll have to do multiple efforts. Yes. MCMAHON: (Indiscernible). SOLDINGER: All right. KALIVIANAKIS: Thank you, Mr. Mayor. And yeah, just -- just -- I wasn't going to chime in on this, but since it's gotten such discussion, I'll just give my two cents. You know, I was a political science major in college and I studied polling for -- extensively and yeah, the five percent margin of error I don't, I don't think you can make a five percent margin of error claim based on a flash poll that had 457 people. Meeting Packet Page 64 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 8 of 50 This is a very flawed poll, and I can't in good conscience take anything from it. It's -- it's -- it's not useful information to me, and I think my colleague said the same thing. And so as we go forward, you know, that was just with those 457 people had to say on one day, and I'm not sure the relevance of this body going forward and using that as anything other than anecdotal evidence. SOLDINGER: Yeah. Understood. Thank you. WATTS: So maybe the last question. SOLDINGER: Yes. WATTS: Maybe not. I think it's important to understand that regardless of if the Council moves this forward, it's going to go to an election. One -- one cycle, either a special election or the general election, either or. But the public is going to have the last word. All we're doing is kind of condensing it to make it palatable for them to look at and understand. So today, while it's -- may not be relatively important to look at the numbers, the direction when we get there will be decided by the public. SOLDINGER: Yes. Just one caveat, councilmember, with a general obligation bond, which we've been discussing, that would go to the voters. If the Council decided to switch directions and go down a pledged revenue obligation bond route, that would not go to the voters. So that's just a distinction there. WATTS: Right. But today we're talking about the general obligation bond. And we're not talking about an alternate, much like Home Rule or anything else that we could do that wouldn't need to go before the voters. But in this particular case, we're talking solely on general obligation. SOLDINGER: So Councilmember, today we're talking more about the current road conditions and funding needs. But yes, the general obligation bond option was the primary one discussed at the previous discussion and still would be the leading recommendation for the Council, yes. All right. Well, that one -- that got a lot more questions than I expected. Thanks, Mike -- thanks, Mike Pelton for not being here today. Meeting Packet Page 65 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 9 of 50 [LAUGHTER] SOLDINGER: So this is kind of a refresher. Based on our ongoing revenues for fiscal year '27, we projected about 4.5 million of revenues. That's a little bit less than the prior year. We actually brought in close to five million -- or around $5 million last year. And so from a revenue perspective, we bring in Hurf revenues. That's our biggest revenue source at $1.8 million. Vehicle license taxes at 1.3 million, local sales taxes of 1.3 million, and about 100 to $200,000 of other revenues in this fund. So as we talked about from the expenditure side when spending, we have about $2.2 million in the budget as currently constructed for other street's needs, which includes things we've talked about, such as staffing, landscaping, rights of way, maintenance, curb repairs, things like that. So all the other kind of things that we need to do as a town that's budgeted there in that bucket, that's how I try to illustrate it. But based on our ongoing revenues, we only have about 2.3, $2.4 million a year to spend on road work. But we've been able to budget more than that because we've had available fund balances every year to do that. And a lot of that has to do with Council decisions to transfer money into the streets fund from general fund, excess reserves, and things like that. So for fiscal year '27, we did budget $6 million for road repairs. And I believe it was the last meeting where the Council approved to proceed on that plan for fiscal year '27. EARLE: Does that six million not include the 2.2 that goes to other things? SOLDINGER: No -- EARLE: It's a full 6.7 million just to roads? SOLDINGER: Yes. So and one thing to clarify just for the public, because if they watch Jeff's presentation, the way him and I explain it a little bit different. What he said was exactly accurate, right? 6.4 or 6.3 million on roads. He's just combining some of those other little things from that 2.2 million to go into that six million. So six million is just for road repair. You add another three to 400,000 for Meeting Packet Page 66 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 10 of 50 things like striping, curb repairs, and concrete stuff. So combined, really, it's more like -- what he says is actually probably more accurate than what I'm saying. It's like 6.3 to 6.4 million on the budget. And so combined, it's like $8.2 million in the budget for streets repair needs for this fiscal year. So we wanted to go in the history books and archives and give you an idea of how we used to pay for roads. So in the 1970s, prior to incorporation as a town, we had four special road districts here, and they were formed by the County, and voters authorized up to $24 million of road bonds, and $6 million of bonds were actually issued to construct roads in the town, pre- incorporation. Give me a second. Sorry. Upon incorporation, the town absorbed those districts and took on those costs. So the town was responsible for the road maintenance and -- and repairs. And then as a town, we did try to go out for a geo bond in 1991, and that was approved. So we'll talk about that in a little bit. 2011 we did try again, and that was not approved by the voters, and then 2013 we did have another successful bond initiative, a geo bond for Saguaro Boulevard. So road districts -- this question comes up sometimes about road districts. They're not very easy or viable today. So municipal improvement districts, they're possible for smaller roads like Palomino Boulevard, for example, if a majority of the landowners -- landowners that lived on Palomino Boulevard decided they wanted to create a road district and they petitioned -- signed a petition to form a district, they could. It's a special taxing district where they would pay the secondary property taxes to pay off the debt. So that is the possibility for some of these projects. But county improvement districts are not really viable because they're really only for unincorporated areas of the County. And it's controlled by the Board of Supervisors, and the town would have no control over those districts. anybody have any questions about those? Meeting Packet Page 67 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 11 of 50 So the special road districts in 1973 -- remember, the voters authorized up to $24 million, but they only issued $6 million. That's a good example of what we talked about before. If the Council did decide to move forward and we brought a voter authorization to the ballot where we said, hey, we would like authorization to do up to $22 million of bonds. That doesn't mean we have to go do $22 million of bonds. We could do an $11 million bond issuance or ten million whatever is needed at that time, and then proceed and wait until it's needed again. But we could use that authorization to go out again and do another bond issuance as the need arises. So that's kind of a good example of that. EARLE: When you do that, then does the -- the property bill portion that the residents pay, does that fluctuate up and down? Then it's not a set rate for so many years? It's based on when you take the money? SOLDINGER: Yeah. Mayor, Councilwoman, it's so when you issue the debt, let's say it's $11 million every year based on the -- the repayment schedule, let's say it's a ten year repayment schedule, we would be levying a secondary property tax on the residents to pay off that debt. So we -- it's just like your mortgage. You take out $11 million. Let's say you owe $1 million a year. You levy a tax on the residents to collect that money and then you pay it off every year. If we decide to do another bond on top of it, and that bond first bond was not paid off yet, it would overlap. So you'd be levying an amount to pay off both of the bonds. And then the -- the -- the secondary property tax levy would go up to pay off the bonds. EARLE: But you're saying here, like in '73 to '74, you only use six million of the 24 authorized? SOLDINGER: Uh-huh. Yes. EARLE: So -- SOLDINGER: That's what they did, and as the special road districts at the time. EARLE: Oh that's different than -- yeah. SOLDINGER: Yeah. That wasn't the town yet. Sorry, I should have spelled that out. So Meeting Packet Page 68 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 12 of 50 that was pre incorporation. Then the town became incorporated in 1989, and then in 1991 we tried for our first road bond initiative, where the voters did approve it. And I'll show you the wording from that -- the bond initiative in a little bit. But they -- they approved 3.5 million and we issued $3.5 million of bonds. 2011, we asked for 29.6 million as a town and the voters did not approve that. And I'll show that example in a little bit as well. And then 2013, our third and most recent and -- our last bond initiative that went to the voters, as far as I'm aware, it was approved for $8.2 million to for the reconstruction or improvement of Saguaro Boulevard. And we actually came in under budget on that one. We issued about $7.6 million of bonds, and that's the last bond that we did as a town. MCMAHON: May I -- SOLDINGER: Yes. Of course. MCMAHON: So when you were billing the -- when the residents were paying on their property tax for the one from 2013 -- SOLDINGER: Uh-huh. MCMAHON: -- did they pay less because you didn't use the whole 800 -- or 8.2 million? Because you have a set rate that you're billing every -- that's everybody's charged. SOLDINGER: Uh-huh. MCMAHON: Or added to their property tax. So what happens when you don't issue the full amount? SOLDINGER: So I'll give a little bit of a long winded answer, so forgive me. If the Council approved this to go to the voters, and then the voters chimed in, they said yes or no, if they did say yes, then we would actually go to the market and work with our municipal advisor and find the best terms for the town. And we'd bring whatever the -- basically it's like almost a procurement process, find the best -- either it's a direct placement or a bidding process to find the best terms for the town. We bring it back to the Town -- Town Council. Meeting Packet Page 69 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 13 of 50 So in this case the voters said yes, $8.2 million to do Saguaro, so go ahead, do that. We went out and found the best terms for a bond, and we brought it back to the town Council at that $7.6 million. So the 7.6 million is the key point, because that's the actual debt that we took on. And then we -- actually, you'll see in the bond initiative, I think it was for up to 15 years, but we did for five years at the time because we I think the idea was just to pay it off quickly. That's pretty unusual when it comes to bonds, but that's what we did as a town. So we paid it off in five years by 2020. WATTS: And these are taxable bonds. Where they -- or can they be crafted as tax free from the State and or the fed? SOLDINGER: So Mayor, Councilmember most of these bonds were discussing are typically tax exempt. WATTS: Okay. SOLDINGER: And that's why they can be attractive to -- to bond holders. WATTS: Is that state tax exempt or federal and state? SOLDINGER: Federal I believe in state, but federal, yes. WATTS: And if you had $22 million and you had certain tranches, certain ladders, $5 million for the next four and a half years or so what would that do to the effective interest rate over the life of that of that obligation? Would it reduce it or it doesn't increase it? But I think it does reduce it somewhat. SOLDINGER: Could you clarify your question? WATTS: Nope. SOLDINGER: I think so. WATTS: I mean, if I have five million this year, five million next year, I'm paying down already. So I'm reducing the overall debt. So while initially your presentation assumes that five percent is for the total amount -- SOLDINGER: Uh-huh. WATTS: -- from day one through the end, but if you only have certain tranches of Meeting Packet Page 70 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 14 of 50 money that you would have at certain defined periods of time, does that what does that do to the interest rate? And I believe that it reduces the effective interest rate over the duration. SOLDINGER: So Mayor and Councilmember, when you go to -- what I was describing earlier, when you go out to kind of like a bidding process to get the best terms for the town, you can look for particular terms like that, like an early repayment option that could reduce, but typically jail bonds that we're talking about today. Typically, they do have a ten year noncallable period. And I believe you can make additional payments to that principal with town funds, but you kind of have to feel the market out and see what the market conditions are to, to look for those terms, if that's what the Council wants to do. WATTS: I understand if it's noncallable, but if it's callable and we say we might pay them off earlier, then what does that do to the effective interest rate? And maybe that's a question that, if we move forward, we can look at and say, what's the effect of callable bonds versus noncallable? SOLDINGER: Yes, exactly. Councilmember, we can work with our municipal advisor to create certain scenarios for some of those options that you might be interested in. WATTS: Thanks. SOLDINGER: All right. Town bond Initiative one. So as a town, this is the first time we tried to do a road bond. This initiative, you can see the wording. It is kind of hard to see. I'm sorry. That's how I kind of had to do it to show it on the screen. But it was for $3.5 million to provide funds for the purpose of improvement, construction, reconstruction and maintenance of town streets and highways. And you'll see at the bottom that it passed pretty easily. 882 votes for with 332 votes against. So this one -- this one was interesting because it was a longer time period. We paid it off 15 or 20 years for a $3.5 million bond. So that was kind of interesting to see that. Town B ond Initiative 2. You may have heard of this one. We've talked about it a little bit. We asked the voters to approve or authorize $29.6 million of bonds for road Meeting Packet Page 71 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 15 of 50 reconstruction. You'll see that the wording is a little broader to provide funds to design, improve, construct, reconstruct and rehabilitate the streets, avenues, alleys, and highways. So at the time, this did not get approved. As you can see, 2980 votes for with 3741 votes against. So after that, we came back to the table. We brought back another bond initiative in 2013, asking for authorization to sell bonds of up to $8.2 million. And you'll kind of see in the wording there it's specific to provide funds to design, improve, reconstruct -- reconstruct and rehabilitate Saguaro Boulevard. So it was a specific bond for specific purpose at a lower dollar amount. So those are just some key takeaways of that. It easily passed. The voters approved it 4551 votes for with 2226 votes against at the time. And again, what I thought was interesting is it does authorize us as staff to issue a bond that shall not exceed fifteen years from the date of their issuance. But when we brought forth to the Council was a five-year repayment term rather than the 15-year repayment term. So where does that land us today? Option one, we can continue what we've been doing using our operating budget and finding ways to transfer money into the streets fund to do more road work. So we have been doing that already. Continue that, or option two consider issuing a bond, whether it's a pledge revenue obligation, where we restrict our current and future revenues to pay it off, or a general obligation bond, which would levy a secondary property tax to pay off the debt. So with that, I'm going to turn it over to Public Works unless you have any questions for me. MAYOR FRIEDEL: I do have a comment. SOLDINGER: Sure. MAYOR FRIEDEL: So if we if we were successful in getting a bond approved by the voters -- SOLDINGER: Uh-huh. MAYOR FRIEDEL: -- we -- we still we would still do our regular other maintenance as Meeting Packet Page 72 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 16 of 50 well as we've always done. This would be in addition to. So it's clear for people to understand that we're still going to do other road work with monies from the town. SOLDINGER: Yes. That's accurate. MAYOR FRIEDEL: All right. I just want to make sure that that was clear for people. WATTS: And not only other road work, but maintenance too. Maintaining the existing one has to be a key component of that as well. SOLDINGER: Absolutely. GOODWIN: Paul, before you go, I just have one question and I don't know that you can answer it. I don't know if it's down here or not. But based on the years that these were noted, it looks like they're all on odd years. So it looks like they were all probably done as a special election, not part of the standard election cycle. Is that accurate? SOLDINGER: That's my belief, yeah. I'm not 100 percent sure about the '91 election, but if -- I believe you're right. GOODWIN: Okay. SOLDINGER: I don't want to. GOODWIN: Just -- just checking just as a -- as a note. SOLDINGER: All right. MCMAHON: Yep. Thank you. I have a question, please. SOLDINGER: Yes. MCMAHON: Option number two. SOLDINGER: Yes. MCMAHON: Pledge revenue obligations. Can you explain that a little bit better? SOLDINGER: Yes. Actually, this is kind of an interesting time. We're bringing forth a consideration for the Council next week to close down the Municipal Property Corporation. Dissolve it. I'm kind of going off on a tangent, but it's somewhat relevant. That was another financing source that we use to issue bonds to build town hall and the community center. And what we did at that time is we pledged our revenue. So we do have a history of pledging revenues to pay off debt. So we pledge certain Meeting Packet Page 73 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 17 of 50 revenues to pay off the debt for all the facilities you're seeing around us. And once they were paid off in around 2018, then the Council decided to put that tax revenue into the streets fund. And that's the .2 percent that goes into the streets fund today. But yes, a pledge revenue obligation. If I went off on a tangent, so I might be misremembering your question, but yes, it's based on our existing revenues that we're saying, hey, we're not going to use this revenue for current road work. We're going to pay off the debt and take out a loan through the bond proceeds, and we'll be paying off from that revenue that's coming in. So that's always an option. The reason we did not recommend that as a primary option at the last discussion is because with such a large amount of road work that appears to be needed, restricting revenue might not be the most preferable option as a town for us. MCMAHON: Thank you for that clarification, because I thought we had discussed it a little bit before, and that's why we were -- one of the reasons why we were looking -- going this way, you know -- SOLDINGER: Right. MCMAHON: -- to consider the bonds. SOLDINGER: Uh-huh. MCMAHON: Thank you. SOLDINGER: Uh-huh. WATTS: Paul, do you know what the difference is between including the bond on either a special election or on the next general election, what the cost difference is? SOLDINGER: So Mayor, Councilmember, I know that the town clerk stated at one of our meetings when discussing this, that would be around $50,000 to hold a special election. I -- I want to say, is there an incremental cost to add another question? I'm not sure about if it would go to the general election or not, but I know that the special election, she stated was around 50,000, is what she was estimating. WATTS: And the tax free component of a general obligation bond really gives you, if you had a five-percent rate on your bond -- Meeting Packet Page 74 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 18 of 50 SOLDINGER: Uh-huh. WATTS: -- really becomes about a six and a half, almost a seven-percent effective rate because of the tax free component. SOLDINGER: Uh-huh. WATTS: Is that fair? SOLDINGER: Yes. WATTS: Okay. Thanks. MAYOR FRIEDEL: One more question. On the -- on the -- on the election. SOLDINGER: Yes, of course. MAYOR FRIEDEL: If we were to share that election with another governmental body like the Sanitary District or the school district, would we share the cost as well? Does anybody know? SOLDINGER: Does Bev? GOODWIN: I believe so. And do you know off the top of your head if we share that election? PADGETT-ESPIRITU: If it goes to the special election or the general? GOODWIN: Uh-huh. PADGETT-ESPIRITU: I do know from Bev, if it goes to a general election, that the cost that we spend -- we pay to the County, is minimal compared to if we actually hold a separate special election. But I believe if we do with the school, I'll have to get back to you. I think it is an off-cost. It wouldn't be as much as if we did it on our own. But I'll get clarification and get back to you. MAYOR FRIEDEL: And for me, it's just a cost of doing business. That's how I look at that. That election cost. SOLDINGER: Okay. All right. WELDY: Mayor and Council, good morning, or afternoon. As we've had these discussions over the years, we're all familiar with how important pavement management is. It takes a lot of planning and a lot of funding to maintain arguably one of our most valuable assets. Meeting Packet Page 75 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 19 of 50 I would argue on behalf of Public Works, in the last 15 years, thanks to cooperation from the elected body and management, that we have made incredible progress in providing funding and tackling some of the challenges that we face in regards to payment management. The uptick or down tick or the minimal amount of movement in regards to the backlog are one of the things that we have discussed often. The challenge with a backlog is, as we are having a discussion five years ago to address this, many streets at in this length of time. Some of the ones that were marginal in that time have now fallen into the backlog. So that's when the data gets a little bit confusing. When we were preparing this some time back, on the latter part of preparing what you are about to see, and Mr. Janover was going to share with you, I was actually absent. Our oldest granddaughter graduated from Texas or from high school in Texas, and so my wife and I were there. Mr. Soldinger, Mr. Janover, and Mr. Pierce -- he was here. There he is. They worked as a team, an incredible amount of hours to bring you this accurate data and information that you're going to have. In light of that, Mr. Janover is going to do the majority of the presentations and answer the questions. I will certainly be here, along with Paul and Mr. Pierce, if you have any questions for us. I would like to thank you for the opportunity to spend an afternoon discussing pavement management. It is a long-term planning process that requires funding permanently, not just once here and there, but it requires funding ongoing. So even the stuff that is brand new right now is going to require maintenance in five to seven years. And a lot of that depends on the weather. So it's not a one and done. It is a continual process that requires funding. So again, thank you. Mr. Janover. JANOVER: Thank you, Mayor, and Council, management. Meeting Packet Page 76 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 20 of 50 So everyone's very, very, very happy to be here to continue our conversation on our pavement management. So the conversation is going to shift now from our funding history and the potential financing options to the actual condition of our roadway system, right? Where we are today and how we got here and what the magnitude of that need looks like. And the purpose of these next slides, again, is not to identify a final bond amount today. That's not what we're looking to do. Our purpose here is to -- to give Council enough information to understand the condition of our network and the scale of the problem, so that you can tell us -- you can tell staff what you want us to do, and if you want us to continue evaluating a bond. So the town maintains -- the town maintains approximately 168 centerline miles of paved roadway. Centerline mile is -- that just means that we measure the length of the roadway down its centerline, regardless of whether it's -- has two lanes, four lanes, six lanes, et cetera. But when you account for the actual paved width of our roads, we maintain almost 3.5 million square yards of pavement. So to put that into perspective, that's enough pavement area to construct a two-lane roadway from Fountain Hills to Las Vegas. PCI you've heard this term bandied about many, many times. PCI stands for Pavement Condition Index, right? And that is simply a standardized zero to 100 scale based on the type of severity and extent of pavement distress that we see in a road. 100 is essentially a perfect pavement right, with no observed distresses. No observed cracking. A zero is a completely failed pavement. All you can see is cracks. You can actually pick up a piece of the road. It's just crumbling in your fingers. Now, PCI is not simply a measure of how smooth a road feels. A road can actually ride reasonably well, but still have cracking or other distresses that actually lower its PCI. But for our purposes, the important break point we have is below 40. And you can see that that line pointing to that 26 to 40 and zero to 25. So once roads -- these are the roads that we -- we refer to as our backlog, right. You've -- you've heard that many, many times. By this point, we're generally beyond Meeting Packet Page 77 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 21 of 50 any kind of cost effective preservation, and we're looking at reconstruction to address those roads. So we want to think of PCI -- I like the analogy of thinking of it as a health score for the pavement. So the closer we are to 100 -- the closer we are to 100, the -- the healthier the roadway is, correct? And as you are -- as you get down below that 26 to 40 in that in the marginal towards the poor situation, that's when we have a situation where we have -- we -- we're, we're past the point of preventive maintenance -- preventative maintenance, and we're into major surgery. Okay. So getting back to here. So Council has established a level of service pavement condition goal back in 2018, right? So these are not new standards that we're talking about, and that were created for the purpose of -- of our bond discussion tonight. We don't try to maintain every street at a PCI of 100, right? Because that would not be necessary nor financially practical. In fact, it would probably -- probably bankrupt us. Pavement management is really about maintaining an acceptable condition at the lowest life cycle cost, right? So the minimum acceptable condition varies by the roadway function. So we hold our arterials to the highest standards, right? Because they carry the -- the greatest volumes and are they essentially are the backbone of our transportation network. Then that's followed by collectors, and then finally by the local residential streets. The targets that were established in 2018 were roughly 60 to 70 for arterials, 50 to 60 for collectors, and 50 to 55 for local residential streets. Now, the objective is to intervene before the roads deteriorate below those thresholds, because once they reach that poor condition, the available treatment changes from a relatively inexpensive preservation to a much more expensive reconstruction. And again, these -- these PCI values are essentially minimum service level targets, okay? The goal is to keep roads above these minimum levels and treat them before they become much more expensive to fix. Now, you may remember that approximately $65 million figure from the 2022 Meeting Packet Page 78 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 22 of 50 pavement analysis that we did with the ad hoc Street Committee. It's important to -- to understand what that $65 million represented. That was essentially a fix everything that was below its target condition scenario, okay? So that included everything from relatively inexpensive crack sealing and slurry seals to mill and overlay work all the way through to full depth reconstruction. So that's $65 million was not a $65 million backlog. Okay. I just want to make that clear. That was not a $65 million backlog. That was for everything. And it's not equivalent to the bond number that we're discussing today. Backlog roads requiring reconstruction represented only a portion of that original $65 million. And the analysis that we're discussing today is much more focused, primarily on the roads that are either reconstruction -- either require reconstruction now, or are projected to require reconstruction in the near future. So over the last few years, the town has generally followed a very balanced pavement management approach. I'm actually very, very proud of the approach that we've taken, and this approach has been recommended by our Pavement Consultant's model runs. So as you know, we use this model called the BOS system, and that's essentially what tells us which roads to treat and when, and so forth. So for roads that have already failed, we reconstruct them, right? It's that simple. But for roads that are still in reasonably good condition, we try to preserve them before they become failures. That's the whole point of pavement management. So two of the biggest enemies of asphalt pavement are water and our environment, right? Particularly the intense sun and the ultraviolet UV radiation -- correct -- exposure that we have here in Arizona. Once water gets through those cracks in the pavement and into the underlying pavement structure, deterioration accelerates. Over time oxidation, and that UV exposure make the asphalt binder harder and more brittle. And that leads to additional cracking. And that's why it's so important that treatments like crack sealing and slurry seals take place, because they help to protect the pavement while it's still worth protecting, okay? That's a very, very important point. Meeting Packet Page 79 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 23 of 50 A crack seal is relatively inexpensive, right? We seal cracks all the time, and the reason for that is primarily to keep water from getting into that underlying pavement structure. A slurry seal is a thin surface treatment, and that seals and protects the pavement and slows down the deterioration to the deterioration. But it does not add any meaningful structural strength to the pavement. A mill and overlay is a more substantial treatment, where we remove that deteriorated surface and we replace it with new asphalt, while we still retain the underlying pavement structure underneath, and that's still serviceable. And then when the pavement structure itself has reached the end of its useful life, well, then that's when we move to a full depth reconstruction. And that's essentially rebuilding the entire roadway pavement section. So the reason for this comprehensive, balanced approach, right, is that a dollar spent at the right time preserving a good road can postpone a much larger reconstruction expense. So if we -- if we simply followed a worst first strategy and you know -- you're saying like, well, let's just take care. Let's just tackle all the backlog. Let's just take care of all that. If we did that worst first strategy, we could spend everything rebuilding the roads, right? That have failed while the rest of the system is deteriorating behind it. So that's why we have to kind of have this two-pronged approach. So our primary tool for selecting the roadway treatments in the pavement management model. The BOS system that we are using Roadway Asset Services for. They're the consultant that helps us run that model time and time again. The model evaluates the condition, the condition of our entire network, and it helps us to determine how to use the available pavement funding in the most financially and prudent and efficient way. So in other words, the model is designed to optimize our investment, right? Identifying which road should be treated. What treatment should be used so that the treatment provides the greatest value? So as a general rule, the annual payment program is driven by the recommendations Meeting Packet Page 80 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 24 of 50 that are coming out of that model. So each year, staff uploads a list of the roads that we have treated that fiscal year to the pavement consultant. We do that at the end of each fiscal year, and they in turn, update the model with the work that was completed, and then they rerun the model, right, for the following year and subsequent years. And that that tells us what is coming up next. Now, there are occasions, however, when we intentionally deviate from the model based on other considerations. For example, Palomino Boulevard, Ridgewood Drive, and Thistle Drive. Those were advanced last fiscal year, based in part on Council direction and public input, along with staff's evaluation of the conditions in the field and engineering judgment. But again, I want to emphasize that those are really the exceptions. The model remains the primary basis for us developing our -- our paving program, because it allows us to optimize the limited dollars across our entire roadway network. And we also continue to maximize that funding that Council provides us by adding additional preservation work whenever contract pricing and remaining budget capacity allow us to do so. So you'll notice that many -- sometimes we have some funding left over at the end of each fiscal year, and we take that and we advance. We kind of tackle what's next in the queue to kind of get a beat on that. So we do whatever we can. Now, this slide represents probably the biggest challenge that the town faces, right, when it comes to pavement management. That is our need to do two things at the same time, right? We need to one, reconstruct the roads that have already failed, while two, continuing to preserve the roads that have not failed quite yet. So our pavement management strategy has done a relatively good job of keeping our overall pavement network in relatively good condition, and has protected our prior investments. But time marches on, right, and roads continue to age. At some point, a marginal road crosses that line where another surface treatment is no longer economically appropriate, and full reconstruction is going to be required. And that's what this graphic on the right side of the page is really showing, right? We have about 14 percent of the network that is currently in this marginal 41 to 50 Meeting Packet Page 81 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 25 of 50 category. So those roads are the pipeline that's -- that's feeding our future backlog if they're not treated in time. And that's why simply eliminating today's backlog doesn't permanently solve the problem, right? There are always going to be additional pavement that's aging behind it. So a successful long term strategy, therefore, needs one source of funding that's capable of addressing the reconstruction backlog, while also preserving enough annual revenue to maintain our healthier portion of the system. So this slide is probably the simplest way to visualize what we're dealing with. Think of our pavement network as a boat that's taking on water. And that boat is captained by the very cute as a button Justin Weldy. As you can see, he's a -- we love this. We love this graphic. Anyway. So think of our payment network as a boat that's taking on water. So we're bailing out water every year, right, by reconstructing the backlog streets, that's what he's bailing out. But at the same time, water is still coming in right from the back of the boat there, because additional aging streets are continuing to deteriorate and enter our backlog, right? So if roads are entering the backlog faster than we're able to reconstruct them, then that total backlog grows, right? The water is -- is rising in the boat, right? Our backlog is growing, even though we're spending millions of dollars on completing projects every year. So the objective is not simply to bail out faster one year, right? We actually need a sustainable funding approach that's going to allow us both to address and reduce the existing backlog, and also reduce the rate at which the additional streets are falling into it, which is the water that's entering the boat. I just -- I just want to just stay on this slide for a few more minutes. Sorry. [LAUGHTER] So this next slide actually illustrates the boat analogy pretty well. We've been successful in maintaining our overall condition of -- of our pavement network. But at the same time, the amount of water in the boat, which is our backlog, has actually increased. Meeting Packet Page 82 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 26 of 50 So since 2022, the town has invested approximately $20.8 million in roadway repairs and preservation. So that investment has helped us maintain a relatively strong overall network PCI, right? Or actually, we've increased it slightly from 69 in 2023 to 69.8 in 2026. So we mainly held it -- held it steady. At the same time, the percentage of the network in backlog, you can see that number down towards the bottom left there. The percentage of the network in backlog has actually increased from 5.44 percent to 10.41 percent, about almost a 90 percent increase. So at first, those numbers may seem a bit contradictory, right? But let's remember that PCI is an average across the entire network. So by preserving and improving a large portion of our streets, we've actually been able to maintain that overall average, even while a growing number of the individual roads have deteriorated into backlog condition. So both things could be true at the same time. Overall network can remain relatively healthy, while the number of roads at the bottom of that condition scale continue to degrade and continue to grow, actually. So if we take a look at that other number in the middle, there on the left, the percentage of roads in good or better condition has also declined a bit from 69 percent to 63.52 percent between 2023 and 2026. That's another indication that more of the network is moving down that deterioration curve. So these numbers were actually put together -- I believe it was like last May, I believe -- in May. So -- but we can kind of for intents and purposes for today's discussion, we can consider this still pretty much the same as call it today's numbers. So this -- our model today identifies 221 roadway segments that are already in backlog. That's that top number on that red line. And that's requiring reconstruction, right? The estimated reconstruction cost for those existing backlog segments, those 221 segments, including an inflation -- an inflation assumption, is approximately point $1 million. But that's only -- that's only a snapshot. This is today's backlog, right? Taking right now. The model also identifies another 249 segments that are currently approaching the Meeting Packet Page 83 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 27 of 50 threshold and are expected to fall into backlog over approximately the next three to five years. The estimated reconstruction cost for those additional near-term backlog segments is approximately $28.2 million. So the planning level five year need is essentially 20.1 million plus 28.2 million, or $48.3 million, adjusted for inflation. So that $48.3 million, right, represents the estimated reconstruction need for roads that are either already in backlog or projected to reach backlog condition over the next three to five years. Now, the $48.3 million should not be viewed as replacing our annual pavement program under the funding network, right, that we're -- that's reflected in the presentation. Right. The bond proceeds would be directed only toward eligible capital improvements, primarily just really the full reconstruction right of roads that have reached backlog condition. The bond would not eliminate the need for our ongoing streets fund pavement program, right? Bonds can only be used for reconstruction. Our other revenues would be used for pavement preservation. So we still need that annual funding for crack sealing, slurry, seals, mill and overlay work, and other any other preservation work or treatments that's necessary to keep those good roads from becoming a future backlog. So that is the basic strategy. Oh, yes. EARLE: I have a question. JANOVER: Yes. EARLE: The ones that are soon to, in the next three to five years, need reconstruction. Is there any maintenance you can do on it to -- any preventative maintenance on those? JANOVER: Well if -- EARLE: Or that's if nothing's done to them? JANOVER: Yes. Mayor and Vice Mayor, if we were to address those, and we do have other -- other roads that are going to be also falling into backlog behind that. So what are what our what our approach here was, was to say, take a five year time frame, look Meeting Packet Page 84 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 28 of 50 at everything that's going to be either in backlog now or going to be in backlog and address that with the bond proceeds, while we use other -- other funds to address the preservation. Because as -- as we're as we're doing this, other -- other roads are going to be falling from preservation that -- that -- that we don't get a chance to preserve are going to fall into this other marginal category, right behind these. So at some point, we just have to kind of pick a number like, okay, over five years, where are we going to be? Let's address all those and get those done now while we're preserving the rest of our healthier roads. So I understand where you're coming from -- EARLE: Let me just ask you again. JANOVER: Yeah. EARLE: The ones that are at the three to five years is -- I mean, we're -- you're basing this on we do nothing -- nothing preventative on those. But is it a possibility of those that are soon to be backlogged, any preventative to keep them from becoming -- not needing to be reconstructed. That was my question. JANOVER: Yes. Mayor, Vice Mayor, yes. The short answer to your question is yes, something can be done to those, but we had to kind of pick a -- pick a point in which we say, okay, because if we were to address those and -- and put the -- put the money into those, then we are taking money away from other roads that -- that need it as well. These are already almost -- they're about to slip into the backlog. And -- and our thought was, well, if we, if we address those with the bond money, then we'll -- then we'll -- the rest of our -- the rest of our network, the more healthier part of our network will be able to put the money revenues into that for -- for pavement treatment, for -- for -- for maintenance, extending the life of those. Yeah. These -- these are almost at the end of their end of their life. So putting another pavement treatment into these, another maintenance treatment into these, will get us a couple of years more. So we're -- our thought was that we'd rather put the -- the -- the right dollars towards Meeting Packet Page 85 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 29 of 50 the right roadways and the right treatments. So again, we were trying to pick a year and trying to pick a time frame to say this is when these roads are going to -- Oh, did you want to say something, Paul? SOLDINGER: Sorry, I'll -- I'm waiting for you to stop. JANOVER: Oh, okay. I just felt someone behind me there. So that was essentially what -- we just had to pick a time frame to say, okay, in three to five years, these are going to be -- these are going to be in -- these are going to be in backlog. Let's get those on the queue to take care of them, because we're going to take care of them anyway. We're not going to -- again, we're not going to take care of them all right now. We just don't have the funding to do it all right now. So we're -- we're anticipating with a bond that those will be at the point where we need to take care of them. And if we -- and again, if we don't put the maintenance money into the other roads to protect the -- I just want to call it healthier roads, then those are going to degrade as well. So we just kind of have to draw a line in the sand, if you will. WATTS: If -- if -- along the same lines, if you addressed some of these roads that are in that sub-40 category, is there anything you can do? And if -- and if there is something you can do based upon the aggressiveness of the approach, whether it's crack, seal, slurry, mill and overlay, how long could each of those incremental treatments extend the life of those streets and bring them up to a more palatable marginal fair good? And I think forestalling some of this might make some sense by doing something as an intermediate. And if you're telling me that everything below 40, it's not salvageable, there's nothing we can do. That's one answer. But if there's something we can do to extend the life of those streets or minimally improve it, that's another answer. JANOVER: Good point. Mayor, Councilmember Watts, I'll Public Works Director Weldy discuss the chipseal with a cape, which we've -- we've done as actually as a pilot project, so I'll let him discuss that. WATTS: Can we go back to his slide? It's -- it was so -- Meeting Packet Page 86 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 30 of 50 WELDY: Having a poster made of it. So Mr. Janover is doing an excellent job of explaining it. So the marginal roads continue to degrade at a percentage based on their life and the weather. We simply don't have enough funding in the bucket to use one of Paul's metaphors to address all of them. The question is -- from the Vice Mayor, can we address some of them in the marginal? Absolutely. Is there something that we can do to extend their life? Sure. We've been before this body before and asked for permission to do an edge mill, a chip seal with a cape. And we've been successful at that. Some -- certainly some lessons learned. For the three of them that we've done, two different locations now, one of them is faring incredibly well, a section of Chalma. The other section, not so well. So yes, there are less expensive alternatives to bringing them back just above 40. And the intent of that alternative was to allow us more time for planning and funding scenarios. WATTS: But each of those treatments has an incremental increase in life. So if I went from the crack seal up to a slurry seal or cape and overlay, then what would I get in return? How many more years of life out of that street if I could do it? And each one has an incremental increase in life expectancy. WELDY: So each -- each one of the segments are slightly different. So just to do a vague -- we could probably move that out two and a half to two years max before we would have to address it. And having moved it out two and a half or three years until we could address it, it is now in the area that it's going to need a mill and overlay or full depth reconstruction. So we can move it out slightly, but we can't save it. WATTS: So assuming we did the bond, how much is this going to change in a year to two years? Is it going to get progressively worse? Are we going to hold our own at that 69 -- or sixty 69.8 percent or how far are we going to slip? WELDY: The intent with this discussion in regards to direction, is that we would have enough funding to move over the next several years to address the backlog and use the Meeting Packet Page 87 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 31 of 50 funding that is currently allocated for maintenance. So we would gain substantially. The backlog number would go down substantially with bond funding, provided we still had adequate funding to continue to do maintenance to keep us back into the above 40, 50, 60, or even up to 70 PCI range for some of the other roads. So our backlog would -- would drop substantially. WATTS: So you're really pushing us to the 20 million plus level, and you're going to hold on the soon to fall into the backlog with what we've got currently? WELDY: We the intent is not to push the Council in regards to funding. Those were just different options that Mr. Soldinger presented. So we don't want to back you into a corner here. We are simply providing accurate data and information that would allow you to make a decision to either move forward or stop based on these different scenarios. WATTS: I didn't mean to phrase it as backing us into a corner. It was more along the lines of, that's the reality that we're looking at. The reality is that in order to get the backlog back up above 40 and get it into a fair condition, I would say at a minimum you need the 20 million plus. WELDY: I would not argue with that estimate. MAYOR FRIEDEL: Justin, give me some numbers as far as time frame. A full depth reconstruction will last us, what, 20 or 30 years if we're -- if we're lucky? WELDY: Mr. Mayor, and so it's not a very complicated process. We live in a relatively dry, with the temperature fluctuations going the opposite direction of most of that on the planet. We go from the 60s and 70s into the hundreds. But it's the thaw-freeze cycle that really degrades the integrity of asphalt overall. So a brand new road, full depth construction, we could really be looking at 20 to 25 years, provided there was adequate funding at the five to seven year mark to do crack fill and preservative seal. MAYOR FRIEDEL: So -- So -- WELDY: So we've actually been able to get up to 30 years out of some. MAYOR FRIEDEL: Okay. So a mill and overlay, what kind of lifespan? Meeting Packet Page 88 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 32 of 50 WELDY: A mill and overlay extends the life approximately two-thirds of a lifespan. So it would be 16 or 17 years. MAYOR FRIEDEL: And how about cape and chip? WELDY: A maximum five to seven years, and that's again, just moving something -- kicking the can down the road, is how I've described it. MAYOR FRIEDEL: Okay. Thank you. WELDY: You're welcome. MAYOR FRIEDEL: Vice Mayor. EARLE: There, I muted. Sorry. Now I'm learning the mute button. Paul, my question is so we got 20 million, we get caught up, but in three to five years are we going to be back here asking for another bond? That's what it looks like to me here if we -- SOLDINGER: Good question. So Mayor, Vice Mayor, I want to point -- when I was nervously pacing back and forth, I kind of want to say a few things about the data because -- you know, from my perspective, a finance perspective. So one, one thing that we really should hedge on is these are estimates. We haven't had this PCI data collected in about four years. So we're just using predictions at this point, predictive methodology to predict what where we are today. It could change if we actually did another full measurement, but it's relatively accurate. I think anywhere in the plus a ten percent range is probably where we are as far as the backlog numbers that we're presenting today. I just wanted to make that clear. This is just for discussion purposes. As far as bonding goes, the other thing that I wanted to mention is what was really interesting is the pavement management program for this year. It's all focused on smaller residential roads in the town. And if you look at the backlog number, what kind of stands out, that $20 million, the $15 million is for our local roads. Our local -- from my understanding, Justin can touch on this, but a lot of our local roads have not been touched or reconstructed in so long, and many of them are pre incorporated. So you can see as a backlog number, most of it is local roads. Meeting Packet Page 89 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 33 of 50 And this year we are addressing almost entirely -- or I think entirely local roads. So everything we're doing this year is mitigating or reducing that number. Say we do five to $6 million this year. That directly reduces that backlog number. So actually our backlog number is starting to look pretty good. It's right around $15 million today. The challenge is that $28 million coming due in the next few years, and most of that is in the next three to five years, where another $28 million -- and most of that is local roads as well, when I look at the data, a similar percentage falls into that backlog as well. So if we were to do a bond, you know what we would do? You know, I don't want to speak for them, but from a budgetary standpoint, try to budget five to $6 million a year. If -- if we are -- if the Council does still continue to authorize a million or so $2 million of transfers into the streets fund. That's how we could get there. That would be a challenge, though. That would be really some navigation. And if we did that, we could really substantially reduce the backlog ourselves. But then the soon to be backlog is what we cannot address with just our operating budget. That -- so if that's what the Council want to do, is really correct or fix most of the backlog, bonding is pretty much our only option to do that. If you're -- if the Council or the residents are happy with the -- the road conditions today and maybe some marginal improvements, then we just -- I'd say continue what we're doing today with our operating budget. Uh-huh. GOODWIN: Paul, can I ask you one clarifying question? Mayor, if that's okay with you? What I heard you say was if we -- and this is directly to your question, Vice Mayor. So if we went -- if the bond was approved and we move towards that, we would work kind of congruently with our operating budget to continue to address -- so let's just say the bond goes towards those that are under 40. The allocated budget each year would go towards preventing anything else to fall into that. So we would kind of run a congruent effort so that we're not back here in three to five years, ideally, if that. Meeting Packet Page 90 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 34 of 50 But we have to make sure that we have the funds available to do that. That's obviously highly contingent on our budgeting process and our revenues and other things like that. Is that what I heard you say? SOLDINGER: Yes, that's an excellent way to summarize it. That's probably a good option, is to -- if the Council did want to move forward in a bond, use that towards the current backlog and then start using the operating budget to try to address everything that's going to start falling into the backlog. That's probably a really good idea, a good way to approach it in that conversation. And another point that we've talked about in the past, but just as a -- as a reminder, bond proceeds and spending the bond proceeds does not count towards the expenditure limitation in our budget process. So we could say, hey, we're going to do $6 million of road work from our existing revenues. And if we did take out a $20 million bond, we could budget another $20 million that next year on top of our budget to do as much road work as possible without any impact to our expenditure limitation. MAYOR FRIEDEL: Can we get that road work done, Justin or David? WELDY: I was briefly absent to discuss an issue with EPCOR. Catch me up real quickly. MAYOR FRIEDEL: So if we got a bond, as Paul was saying, for $20 million to get all these substandard roads taken care of, can we get -- what's the time frame to get that work done? WELDY: Realistically, probably five years plus or minus. It's -- it's a lot of road work. GOODWIN: Justin, before you sit down, I had one other question. Mayor, if that's okay with you? MAYOR FRIEDEL: Go ahead. GOODWIN: When you mentioned -- you were sharing with the Mayor the different applications, and preservative applications, and their projected lifespan, what they add to the road. Meaning if we did a mill and overlay versus a chipseal and a cape, they offer different things. Wanted to make sure, does it matter when they are applied, i.e., if the road is so far is Meeting Packet Page 91 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 35 of 50 so degraded to, let's just say a 30, and we decided to do a chipseal and a cape, does that still add five to seven years, or does it matter when it's applied? WELDY: And that's an excellent question. So the answer to that question is it just kicks the can down the road. It just buys us some time. And a chip seal and a cape is such a type of treatment that it fills a lot of the voids. But a good example, if you want to see one, is half a Chama was pre-incorporation, the other was post. On the pre-incorporation. It looks wobbly and you can see reflective cracking, but it's not as bad. So that's what it would buy us is time -- GOODWIN: Thank you. WELDY: -- but it would not rejuvenate. In regards to the others, the proper treatment at the proper time does actually extend the life to the expected life expectancy of that roadway section. GOODWIN: Thank you. I thought that I wanted to double check that, because I know when we were talking about the earlier question about can we can we extend it? Yes, you can, but I think it matters, you know, your timing. If it's -- if it's too far gone, you know, it's just a band-aid. But doing it on a timely basis is what we're trying to get to. Getting our roads to that point where we can then take some of these more minimal cost measures to extend those, as opposed to always having to reconstruct. SOLDINGER: And I just want to add one thing, Mayor. So with the five year timeline that Justin mentioned, when you issue a bond, you have to reasonably expect to spend it within a three-year period. So that would be a consideration. If we couldn't do $20 million of roadwork, additionally, in the next three years, we'd probably want to go for a smaller bond, or if we went to get the voter authorization, then issue a smaller bond to -- to be realistic with what we can do in that three-year period. MAYOR FRIEDEL: I -- yeah, I agree with that. And I think it would be a good test case to see how -- how it all worked out. Meeting Packet Page 92 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 36 of 50 Rick. WATTS: So I'm not sure if this goes to David or to Justin, but in the aggregate, if we did a 20 -- $20 million bond and we did our $6 million worth of work, we got $26 million worth of ongoing work with three primary streets between Palisades, Fountain Boulevard, Saguaro, I don't believe that you can get enough contractors to be able to do that work, even in three years. So I think it'd have to be less than the $22 million. I don't know that you can get it all done in five years because of the maintenance aspect and then the reconstruction aspect. So can you get it done? And if so what time period? And you really ought to have a time period for each of the bond amounts. WELDY: So there are several smaller questions in there to unpack. The reality is, is there are several contractors available to do that type of work for bid. Not all of them are necessarily what we would use under cooperative agreement. A good example is the Saguaro reconstruction. We got a large number of bids from qualified contractors for that that were all in the ballpark. So I'm confident that as each segment comes up and we set that out for bid, direct selection is a little bit more challenging, that we would have a series of contractors, and it's going to take a little bit more than five years. And then the latter part -- the maintenance would be separate. So the contractors that would be doing the maintenance would typically have either a second crew if they were going to be bidding on something, or they would have subcontractors that would be bidding on it. So we would separate the two. We would not have the same contractor or the same crews working on bond work versus maintenance. We would break those two apart. WATTS: Yeah, but I hear what you're saying. And it can be two different entities, but by the same breath, you're disrupting traffic. Somehow, you're going to be disrupting traffic, whether it's on some of the arterial streets, whether it's going to be on some of the feeders, wherever it's going to be, you're going to have a lot of, I would call, monkeys in a barrel at one time. And that is going to be a challenge with the feedback -- the pushback that we get from Meeting Packet Page 93 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 37 of 50 even on Shay, that's going wonderfully, and we still get a lot of heat on that one. Can you imagine shutting down one of the primary streets into town and then more of the side streets as well? WELDY: And to your point -- and these are all valid. I have lived through each of those scenarios. So I've said this often, there is no convenient time for construction because you cannot start and stop during seasonal, and it's also and this makes people a little uncomfortable. Fountain Hills is one of the only municipal governments that pays a convenience fee. And let me explain that in a little bit of detail. In order to keep Shay moving in two lanes, we had to pay a little bit extra, which all of the contractors factored in there, knowing that they would only be able to do a part of it at one time instead of just reducing it to one lane. The same applies to our basic maintenance and treatment. They know that we're going to have to make accommodations to allow people to do certain things on their road or in their neighborhood, and there's a fee associated with that. If you go anywhere else in the state, or the valley, or even other states, you will note that Pima Road is down to one lane for 24 months, and this is the way it is. And that's -- you have to live with it if you're in that jurisdiction. We are considerably more accommodating here, and we would have to make those accommodations. And each one of them cost a little more. And it takes a little more time. I would say that even with the convenience fee and the time delays or constraints that we have, we've still been able to manage relatively well in the 20 or so years that I've been here. But yes, there are logistical challenges. Absolutely. We certainly wouldn't want to pick one section of town and disrupt all of it at one time, because that also has a very negative impact on first responders response, trash collection, school bus pickup and drop off. There's a lot more impacted than just the folks that get up and go to work every morning. WATTS: And you're going to be here for the duration? Meeting Packet Page 94 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 38 of 50 WELDY: No, sir. WATTS: Okay. [LAUGHTER] JANOVER: He's going to be in the polls. Yeah. He's making the same faces he uses in the vote. So Mayor, Vice Mayor, I'd just like to get back to that -- that -- your earlier point, and I think the discussion we've just been having kind of gets -- gets back to that. Obviously we don't have the ability to just say, okay, let's -- these 221 backlog roads. Okay. They're fixed. Okay. Now at that point, if we could just do it right away. Sure we can. We can do we could do whatever we need to do to those soon to be backlog roads and -- and treat those. But honestly, we figured when we did this analysis, when we started it, we said, okay, it's going to take us time to get through the backlog roads. We can't do them all in one year, or two years, or three years. So let's -- let's say, okay, three to five years, it's going to take us that much time to get through the backlog that we have right now. And so during that time, while we're fixing the roads we're fixing now, we have other roads that are entering the backlog that we're going to -- that we want to capture and incorporate that into the bond proceeds also, so we can address those already and plan for that. So that's really the reason why we had this scenario like this, the three to five-year horizon. It's not like we're saying like, you know what, screw them. We don't want to do them right now. We'll take care of our current -- but we have to -- we have to think about those because as we're addressing our backlog now, those are going to fall into the backlog. We just don't have the time to -- it would be great if we could just like just snap our fingers and it was done, but we know it's going to take time to address them. So anyway, getting back on track. We know that there is one important thing finding that we found from our analysis here. Probably 75.6 percent of our current backlog is actually associated with local residential streets. Meeting Packet Page 95 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 39 of 50 By comparison, arterials accounts for approximately six percent, collectors about 9.2 percent, and alleys about 9.3 percent of that current backlog reconstruction cost. Now, because most of that backlog is on local streets, Council may want to consider whether the program should simply follow pavement condition, or do we want to place additional emphasis on certain types of roadways? So if we simply address backlog based on the pavement condition, a large portion of the reconstructed -- reconstruction program that we're going to be working on will naturally occur on the neighborhood streets, because that's where most of the existing backlog is. Alternatively, Council could direct us to evaluate prioritization based on roadway classification or geographic distribution, or some other combination of factors. But if Council is interested, we can also model alternative funding horizons, such as seven-year or ten-year scenarios, in addition to the five-year estimate that we're showing here. And again, I want to iterate, just like Paul did. These are planning level estimates, right? They're not construction bids. We don't have a final project list. But if Council directs us to proceed, we would refine the modeling costs, right? We would sequence those -- sequence the roadway reconstructions before returning with any kind of recommendation. WATTS: Mr. Janover? JANOVER: Yes. MCMAHON: Why don't we just discussing the addressing for $20.1 million, the backlog for using the bond for that? JANOVER: Yes. MCMAHON: Okay. So instead of like saying like, payment condition or certain types of -- and certain types of roads. So if Council decides to move forward with this, what I'm hearing, and maybe I'm not hearing it all 100 percent, is that we really want to address the backlog, because that's the problem in the drain that's happening. And it's getting worse and worse and worse. They're getting below 40, et cetera. And so that's what we're because we're always going to be playing catch up no matter Meeting Packet Page 96 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 40 of 50 what we do. Even if we had enough money, we're still going to be playing catch up on the roads are still going to deteriorate. So what we want to do is best use of funds. Best use of funds, it sounds to me like is addressing the backlog because that's the problem. And then using the budget funds to maintain, you know, other more -- you know, higher rated streets, et cetera, correct? JANOVER: Yes. Mayor, Councilmember McMahon. MCMAHON: Thank you. JANOVER: That -- that -- that is correct. That is correct. And what I was talking about was how we address the backlog. MCMAHON: Uh-huh. JANOVER: Do we want to address it just by -- do we want to prioritize them by the type of roadway classification -- MCMAHON: Uh-huh. JANOVER: -- or do we want to take care of everything that's in the north -- northeast or the northwest first or -- MCMAHON: Right. JANOVER: It's just-- just different options of how to approach addressing the backlog. MCMAHON: Right. But in the prior page, what did it say? The largest percentage was -- JANOVER: Yes. MCMAHON: -- on the general roadways -- JANOVER: Yes, locals. MCMAHON: -- like the residential ones that that really are what our residents are complaining about, you know, like King Street offshoots and things like that. So in looking at that particular diagram you had, you know, selecting that highest percentage area, those streets might be the best use of the bond if this moves forward at all. Thank you. JANOVER: Thank you. EARLE: Hi. I'm here. So because this is for discussion and I know we're not all the way there yet, we have a ways to go today, but I came on this Council saying never, no way a Meeting Packet Page 97 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 41 of 50 bond for roads until I see all these details. And then I said, not residential roads because not everybody's on them, just the main arterial and feeder roads. But I see there's a big need in the residential roads. So my -- what I will be suggesting is that we do the six percent of the arterial roads, and the 9.2 percent of collector roads, and what we need to do on the local roads as well with that -- we'll talk about how we do the bonding down the road. But I like the idea of Paul saying if we can -- if we have to spend it within three years, you know, we talked about which -- what I'd like you to look into is the -- the 11 million at $11 million bond for ten years. But if there's a way to do two of them, I don't know how you do that, because even the percentage -- when we do a 20-year loan, we're only putting $0.62 on every dollar into the road. The rest goes to the bank. If we're doing a ten-year loan or bond, $0.77 goes to the road. This is just figures there and the rest goes to the bank, and I'd like to see more of it go to the roads than to the making the banks rich. So if you're looking into it, Paul, I'd like you to figure that out for us, if that's possible. I think you said, you know, approving the 20 million, but it would be laid out, you know, two different ways of how that works, but. SOLDINGER: Yeah. So Mayor, Vice Mayor, so we provided -- in the options in the survey, we provided those options to the survey respondents. And then we provided some, you know -- you know, estimates to the Council as well. One of the options is the $11 million and over a ten-year repayment period. And if that's something that we can get a majority discussion on, then we could definitely prepare that. Or if it's multiple scenarios that you're interested in, we can definitely do that. 11 million over a ten million or ten-year repayment period is pretty typical. You could extend it, but to your point, you would be paying more interest over the life of the repayment. Meeting Packet Page 98 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 42 of 50 You could -- we could bring you a five-year repayment period scenario. That's what we did. The last one. You're -- you're going to pay less interest in the five years than the ten years, but on the payment, on -- the taxes for the taxpayer will go up per year because of -- EARLE: When you get this second part -- just -- but if we can't, if it has to be done within three years and we can't do it within three years, why would we take out a bond if we can't? What happens there? That's my question there, too. SOLDINGER: Uh-huh. EARLE: And the other thing, which I'm I want the general public to know when we're talking about determining what goes on your taxes, the value of your home -- SOLDINGER: Uh-huh. EARLE: -- is a lot less than what your house sells for. So a lot of us do fall within the range of the -- what you were calculating these numbers on is around 500,000 -- SOLDINGER: Uh-huh. EARLE: -- as the what do you call it, the limited property value or LPV? SOLDINGER: Yes, so -- EARLE: So for -- I didn't really look at that before, and -- SOLDINGER: Yeah. No problem. I can -- I can state it. So it's very similar to what we presented in February, just kind of looking at the average taxpayer or resident that owns a home in Fountain Hills. It's pretty close. It's an estimate, but it's pretty close. In that $11 million scenario over a ten-year repayment period. It would be about $110 a year of secondary property taxes. That's the starting point. It could slightly go down year to year depending on the development in the town and things like that. But that's an estimate of about how much it would impact. EARLE: And commercial properties and landlords, you know, with apartments and stuff. They're paying property tax too, aren't they? And is it at a different rate that would be paying towards these bonds, besides just the residents? SOLDINGER: It's based on the limited property value based on the assessor's Meeting Packet Page 99 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 43 of 50 assessment. So if there's an assessment by the assessor and there's a limited property value on the building or property in town, yes, the tax would be spread out or levied on us. EARLE: So it's not just on us residents, it's on landowners. SOLDINGER: It's on commercial, buildings as well. EARLE: Yeah. SOLDINGER: Any -- yeah. Any taxpayers that own buildings in town, that's the levy would go to us. EARLE: It is -- but is -- commercial is helping to pay towards the bond, is what I'm saying? SOLDINGER: Uh-huh. Yes. EARLE: Right, right. Okay. So that's only $109 is $14. I mean, $4.17 a month. Not too bad. Does anybody hear that out there? That's why I support bonds now. Maybe. Yeah, maybe. SOLDINGER: Yeah. WATTS: It's a year. EARLE: I said it's $109 a year works out to $4.17 a month. But you pay most of us. I think I do anyway. I pay mine twice a year. If you have it on your mortgage, it's not going to be very much of an increase, so. JANOVER: Okay. So just to summarize, and just to be clear, we are looking -- staff is looking for direction tonight or today. But when -- and where not asking Council to again select the final bond amount. The first question is simply does Council want staff to continue evaluating a potential roadway bond? And if so we'd like some guidance on the time horizon. Should we model a five-year program as we discussed here today? Or would you like us to develop a seven-year, and/or even ten-year alternative? And finally, does Council want us to evaluate different prioritization strategies? For example, whether arterials, collectors, or local streets should receive priority versus addressing the backlog just primarily based on the condition basis or merit basis of Meeting Packet Page 100 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 44 of 50 when it -- when it should be done, when it's next up in the queue. And if Council wants us to move forward, staff would take that direction and will further develop the scenarios and return in early 2027 with some refined costs, alternatives, and recommendations. So in essence, what we're seeking tonight or today is just enough policy direction, right, to -- to know what alternatives Council would like us to come back with. And with that, that concludes the Public Works portion of the presentation. And we'd be happy to answer any questions about pavement conditions, the backlog estimates, the treatment strategies, or potential scenarios. And more importantly, we're interested in Council's thoughts on whether you would like us to continue with this analysis, and if so what type of scenarios and priorities would you like us to bring back? So with that, we have. MCMAHON: Thank you. I have a question. JANOVER: Captain Weldy is not here at the moment. I guess he's not here. But we do have Paul, myself, and Jeff. Jeff Pierce is in here. So it's just the Paul and Dave show. MCMAHON: Thank you. In your -- if you go back a slide, and you said five years or whatever. There's no amount of money in this. So I think part of the -- in looking at this, and looking at what Paul gave us, and looking at like the backlog at 20 million, et cetera, then I think that maybe when -- if -- if we direct them to take a look at -- basically, I think all of this is going to be included if we decide on a bond, et cetera, in order to do the right strategy and stuff, because then you can, depending upon the roads or what is chosen, then that will determine the amount of money as well in the long run. JANOVER: Yes. Mayor, Councilmember. So what will we doing is we're really going to dive down on the -- the actual analysis on the real numbers, and we're going to come back with an actual list of roadways -- MCMAHON: Uh-huh. JANOVER: -- and we can actually come back with projected cost estimates -- MCMAHON: Right. Meeting Packet Page 101 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 45 of 50 JANOVER: -- and actually get some bids on those to see what we're really up against. MCMAHON: So your -- your presentation -- thank you for your presentation. I think it's been very well-written and explained concisely what we're looking at. And you summed it up very well. Request for direction. But I kind of think, and maybe I'm wrong, that if we direct them to continue to do this, it's really going to have to take into all that consideration, so that an -- a more -- a better educated decision can be made later on with more -- not more succinct, but more directive information as far as the condition of the roads, et cetera. So that's my thinking on it. And thank you both, you know, for your presentation. I appreciate it. GOODWIN: Just to chime in on what Councilmember McMahon just said, there's a little bit of the information that -- that we won't be able to provide you. We won't have a condition assessment done again before a decision has to be made. We're actually going the other way around and asking to know what your temperature check is on an amount. Not us coming back and saying we need this, because really it's about a tolerance level from this Council of what number can -- does this Council support? And if it's 11 million, if it's 20 million, if it's 40, whatever that is, we can run the scenarios based on those numbers. But ultimately, it's about what you guys would like to see us come back with. That's what we're trying -- we're -- we're looking for you guys to put those guardrails and parameters so that we come back with something that's viable, not something that we come back and the Council goes, where the heck did this come from? MCMAHON: Right. But to me -- and maybe I'm wrong again, I don't know. I mean, I've heard that we really want to address the backlog, that that's really been the problem. It's been the big drain about everything and what's in the back of everybody's mind all the time. And it's getting worse. And as it gets worse, it gets more expensive. So yeah, I'm -- I'm for looking at the backlog and looking at moving forward with that. WATTS: So Paul, where did we get the 11 and the 22 million? Meeting Packet Page 102 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 46 of 50 SOLDINGER: Oh. So Mayor, Councilmember, we were providing just examples. It was an easy example, not necessarily us recommending that we should -- WATTS: So just arbitrary numbers? SOLDINGER: Well, not necessarily. We looked at Fountain Hills Boulevard and Palisades Boulevard. They're similar in size. We got a quote from one of our current contractors. We had some contingency to that to give you a conservative estimate. That's where we got the $11 million for. So the last time we talked about this, we were talking about Palisades and Fountain Hills Boulevard. The -- the conversation has shifted a little bit to more like, hey, should we look at the backlog? We can always go back and look at those, but it was kind of interesting seeing the data that -- there are certain portions of those roads that are in really bad condition, but there are portions of those roads that are in pretty good condition. So you know, it's kind of a hard decision. It's more of a policy decision. Do we want to go down that road and -- and make it easier to just issue a bond and let's redo Palisades Boulevard or Fountain Hills Boulevard, or do we want to address what's currently in the backlog based on the data? Which is mainly our side streets, our residential roads. WATTS: I think looking at it, King Street is a great example because half of that road is in good shape and half of its falling apart. SOLDINGER: Uh-huh. WATTS: So a good example, but I think that if I looked at it and I said, I took the arterial, or collector, or the locals in aggregate, that's about $12 million. It's pretty straightforward there. But on the other hand, you're going to have a continued degradation of the streets over the next year to two years by the time we put this all together. SOLDINGER: Right. WATTS: So you're going to have some more that you're going to have to anticipate. And I don't want to go back to the public again and say, we need more money. So I'd be a supporter of the $20 million for a ten-year time frame. Just to give you some idea of Meeting Packet Page 103 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 47 of 50 guidance where I would fall. SOLDINGER: Okay. So 20 rather than 22 as the original example. WATTS: 22 million. Potato, potato. SOLDINGER: Okay. But you're interested in more of a shorter repayment period, like a ten-year repayment period for something like that, so -- WATTS: Yeah, I don't -- I don't think that the 239 -- or $219 based upon the -- the option three, is that painful. SOLDINGER: Uh-huh. WATTS: So even if it goes to four -- $400 a year, you're talking about less than $50 a month. So I don't go to Starbucks once a week. SOLDINGER: Okay. WATTS: Thanks. SOLDINGER: Absolutely. Appreciate the (indiscernible). BENDER: Yes. So just to reiterate, and I wonder if I was clear before, I would like to see that we do the -- a bond. That's the twenty million that would be taking care of all the back load -- back -- back load -- backlog. Sorry. It's a load isn't it? It's a backlog. In my calculation on that one is what you estimate it would be -- it's the -- it's like $18 a month. If we're thinking of that, that would be people that are on their mortgages, or it's the -- what was it here -- at the ten years. At the ten years would be about 200, $219 -- SOLDINGER: Uh-huh. EARLE: -- a year. So -- and then in the meantime, the monies that we do -- I want us to continue to pull together as much as we can to take care of what we have now. And we might be able to get some reconstruction. I don't know. Any capital improvement projects or any -- did I make that clear? Am I -- okay. SOLDINGER: So Vice Mayor, 20 million or so -- EARLE: But ten years, ten years. SOLDINGER: Ten-year repayment period is what you are most interested in? EARLE: I want more of the money to go to the roads instead of paid in interest. Meeting Packet Page 104 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 48 of 50 SOLDINGER: Okay. EARLE: We don't want to make the banks richer than they need to be. We want to make the town richer with the -- with the nice roads. MAYOR FRIEDEL: My only concern is can we get the work done taking $20 million? SOLDINGER: So I think to Justin's point earlier, Mayor, we could, if that's the route you want to go, what we would do is ask the voters to authorize us to do 20 or 22 million of bonds and probably issue an initial bond to do three years-worth of road work, whether that's 10 million, 11 million, 12 million, and we'll make that decision at that point. Then we come back, we go out and do the process to find the best the best option for a bond for the town, and we'd bring it back to the Council. But first, we need that voter authorization to -- to -- to do that. MAYOR FRIEDEL: Okay. Good. So I think you have some direction, if I'm not mistaken. Or do we? GOODWIN: Right now I've heard definitively from the Vice Mayor, from Councilman Watts, and -- that's three. I'd like to hear from the other two up here if possible. MAYOR FRIEDEL: Oh, I'm -- I'm all in. GOODWIN: Okay. MAYOR FRIEDEL: Yeah. KALIVIANAKIS: Yeah, I'm with my colleagues on this one. I do prefer the shorter payment, the ten-year so we get more bang for our buck. I think less of the banks, as my colleague stated. And as far as Palisades and Fountain Hills Boulevard, you know, we're going to get some -- if we have more patience, we're going to get county money from that in like -- SOLDINGER: Uh-huh. KALIVIANAKIS: -- ten years or whatever, 13 years from now. So I think we should put those projects off with this bond money and -- and go for the -- the under 40, the backlog, you know, the people in our residential neighborhoods that have been waiting for this for so long. Meeting Packet Page 105 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 49 of 50 And so I would like to higher figure so we can just really tackle this for once and for all. And if the voters want it done, this is their chance to get it done, and done right, and not just half measures. So yeah, I concur. Okay. MCMAHON: Clarification. I'm good with the 22, because even the million dollar difference, by the time this is done, it's going to increase. And we'll -- if we -- and -- and it's just probably just part of it. And if that's what the estimate is, I'm for doing it that way. SOLDINGER: Okay. So it sounds like we can prepare some scenarios specifically with our municipal advisor. Is there any other scenario that the Council would like to see when we bring it back? Or -- it sounds like we're all pretty set on that 20, $22 million number. Okay. All right. GOODWIN: All right. I think that leads us -- unless there's any other final questions, I think we are -- we've got our direction. MAYOR FRIEDEL: Thank you everybody. SOLDINGER: Thank you. Meeting Packet Page 106 of 311 TOWN OF FOUNTAIN HILLS SEPTEMBER 8, 2026 TOWN COUNCIL WORK SESSION MINUTES Page 50 of 50 Having no further business, Mayor Friedel adjourned the work session at 2:37 p.m. APPROVED: ____________________________________ GERRY M. 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 WORK SESSION OF THE TOWN COUNCIL, FOUNTAIN HILLS, ARIZONA HELD ON SEPTEMBER 8, 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 107 of 311 ITEM 9.a. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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) CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-13, repealing Town Code Articles 16-2, Small Wireless Facilities and 16-3 Utility Service Antennas, and adding Chapter 19 Small Wireless Facilities; Utility Service Antennas. Staff Summary (background) Following a couple of years of community discussion and input, and six months of review and discussion by the Planning and Zoning Commission, on September 4, 2024, the Town Council approved an ordinance updating Chapter 17, Wireless Telecommunications Towers and Antennas. Because that review and update process did not also include any consideration of amending Article 16-2 of the Town Code addressing small cell facilities located in Town rights-of-way and did not have the benefit of the work done by Andrew Campanelli to draft a revised ordinance, on January 21, 2025, the Town Council directed staff to work with the Planning and Zoning Commission to consider further revisions to Chapter 17 of the Zoning Ordinance and also to review and update the regulations governing small cell facilities in the Town's rights-of-way. Staff and the Commission began that work at the regular meeting in March 2025. Over the next couple of months, the Commission reviewed the existing zoning ordinance and the draft ordinance provided by Mr. Campanelli for modification of Chapter 17 of the Zoning Ordinance. Following that review, the Commission was ready to begin review of Town Code Article 16-2, Small Wireless Facilities. Given the legal and technical requirements involved in this section, work was delayed until a decision was made to hire a consultant to help address all the ordinances and issues related to wireless telecommunications. To help complete this project, with direction from the Town Council, staff entered into a contract with McCollough Law Firm PC to assist staff in the drafting of the updates to the ordinances and associated documents. This firm was selected based on their expertise in this field of law and their responsiveness to working with staff to complete this project in a timely manner. Over the last several months, the consultant and staff have worked to revise Town ordinances to provide the maximum protection for the town while also complying with legal requirements and providing reasonable means to have adequate wireless communication coverage throughout the Town. The proposed amendments are designed to: • Preserve local authority to the fullest extent allowed by federal and Arizona law. • Protect Fountain Hills' desert character, scenic views, historic resources, residential properties, and neighborhoods. • Implement comprehensive permit application requirements and review procedures. Meeting Packet Page 108 of 311 • Improve transparency, accountability, and defensibility of permitting decisions. This staff report addresses the proposed ordinance changes to better regulate small cell wireless facilities. As stated above, those regulations are currently located in Chapter 16, Streets and Sidewalks, of the Town Code. The revised ordinance for small cell facilities addresses all such facilities, whether in the street right-of-way or on private property. Given this change, it did not make sense to keep the regulations in the Streets and Sidewalks chapter of the Town code. Therefore, what has been Articles 16-2 and 16-3 are being moved to a new Chapter 19, Small Cell Wireless Facilities; Utility Service Antennas. The revised ordinance is significantly different than the current ordinance. It covers a wider range of topics to ensure that small cell wireless facilities will meet both the needs of the residents of the Town while also complying with all federal and state requirements. The draft ordinance was reviewed by the Planning and Zoning Commission at a work session on July 28, 2026. The Commissioners made several comments for modifications to address the needs of the Town. Following the Commission discussion, additional input was received from Lori Troller with suggestions for additional modifications. To the extent possible, the consultant has amended the final draft ordinance as attached to this report to address those comments. Key provisions of the new ordinance include: • Expanded purpose statements in Section 19-1-1 that describe the intent of the ordinance to preserve important characteristics of the Town while complying with federal and state requirements. • Additional definitions in Section 19-1-2 provide clarity to the terms used in the ordinance and help set the regulatory framework of the ordinance. • Location standards in Section 19-1-3 B. This section includes provisions that limit locations based on visibility of the towers (19-1-3 B 1 a) and require them to be setback from property lines (19-1-3 B 1 b). 19-1-3 B 2 d states that such facilities must be at least 500 feet from any residentially zoned parcel. This section goes on to state preferences for such facilities to be located in industrial and commercial properties. Section 19-1-10 provides an option for applicants to request an exception to these location requirements. • Design standards in Section 19-1-4 have been expanded from the current requirements. • Section 19-1-5 B lists the requirements to be provided in an application. These submittal requirements have been expanded to include fire safety information, an environmental impact assessment, structural analysis, acoustic analysis, a radiofrequency compliance report, and notice to property owner's within 300'. • Section 19-1-5 C reserves to the Town to the fullest extent permissible, decisions regarding the placement, construction, and modifications of these towers. • Section 19-1-5 H requires submittal of a property values impact report that can be required by the Town. • Review procedures and timelines are provided in Section 19-1-6. This section includes, among other things, use of an independent consultant to review applications, the opportunity for the applicant to voluntarily waive the review timeframes, submission of a property value impact report, and specific requirements for applications for towers to be located in the right-of-way. Meeting Packet Page 109 of 311 • Section 19-1-7 requires, among other things, a post-installation certification showing compliance with all requirements and approvals, insurance, an indemnification agreement, a facility maintenance agreement, a decommissioning plan, and provisions to address abandoned facilities. • Section 19-1-8 addresses safety standards including fire safety. • Section 19-1-9 provides the standards for ongoing operations and maintenance, including monitoring of radiofrequency emissions. • Section 19-1-10 provides for Council consideration of exceptions to the ordinance. The request for the exception has to be made at the time of submittal. Exceptions are permitted only when the Council finds the denial would violate federal or state law, or both or, applying a section of the ordinance in a specific case would violate rights or privileges conferred by federal or state law. Also included in this ordinance is moving the provisions addressing Utility Service Antennas (antennas used by utility companies such as EPCOR, Fountain Hills Sanitary District, and SRP) to communicate within their systems from Town Code Article 16-3 to Article 19-2. No changes are being made to this article. With the adoption of the original small cell ordinance in 2018, for small cell facilities placed in Town rights-of-ways, the Council also adopted the following documents and forms: • Wireless Facility License Agreement • Wireless Facilities Standard Terms and Conditions • Small Wireless Facilities in the Right-of-Way Design Standards & Guidelines • Wireless Facilities Irrevocable Letter of Credit Template • Assumption of Wireless Facility License Agreement Each of these is still in effect. One minor change is being made to the Terms and Conditions document under a separate agenda item. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) As directed by the Town Council, the Planning and Zoning Commission reviewed the existing ordinances and held a study session with the Town's consultant to review the draft new ordinance. The Commissioners made several suggestions for modifications to the draft ordinance which were used by the consultant to prepare the final ordinance for Council consideration. Because this is not part of the Zoning Ordinance, the Planning and Zoning Commission does not have the authority to make a formal recommendation on this ordinance. Staff Recommendation(s) Staff recommends adoption of Ordinance 26-13 Suggested Motion MOVE TO approve Ordinance 26-13. FISCAL IMPACT Meeting Packet Page 110 of 311 Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Ordinance 26-13 Small Wireless 2. Ch 19 SWF Ordinance with amendments shown Meeting Packet Page 111 of 311 ORDINANCE NO. 26–13 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, AMENDING THE FOUNTAIN HILLS TOWN CODE CHAPTER 16, STREETS AND SIDEWALKS, BY REPEALNG ARTICLES 16-2, SMALL WIRELESS FACILITIES, AND 16-3, UTILITY SERVICE ANTENNAS, AND ADDING A NEW CHAPTER 19, SMALL WIRELESS FACILITIES; UTILITY SERVICE ANTENNAS TO THE TOWN CODE. WHEREAS, the Town Council desires to replace the existing Town Code Chapter 16, Articles 16-2, Small Wireless Facilities, and 16-3 Utility Service Antennas, with a new Chapter 19, Small Wireless Facilities; Utility Service Antennas; and WHEREAS, updated ordinance seeks to enhance the ability of the providers of telecommunication services to provide such services to the community quickly, effectively, and efficiently while protecting residential areas from potential adverse impacts; and WHEREAS, the Town Council recognizes that technology and laws regarding these facilities have changed, so the Town’s regulations need to change accordingly; and WHEREAS, in accordance with Article II, Sections 1 and 2, Constitution of Arizona, and the laws of the State of Arizona, the Town Council has considered the individual property rights and personal liberties of the residents of the Town and the probable impact of the proposed ordinance on the cost to construct housing for sale or rent before adopting this ordinance. WHEREAS, it is necessary for the preservation of the peace, health, and safety of the Town of Fountain Hills, Arizona, an emergency is declared to exist, and this ordinance shall become immediately operative and in force from and after the date of adoption. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. Articles 16-2 and 16-3 of the Fountain Hills Code are hereby repealed as provided in Exhibit A. SECTION 3. Chapter 19, Small Wireless Facilities; Utility Service Antennas is added to the Town Code as provided in Exhibit B. Meeting Packet Page 112 of 311 SECTION 4. If any provision of this Ordinance is for any reason held by any court of competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed separate, distinct and independent of all other provisions and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 5. EMERGENCY CLAUSE - WHEREAS, it is necessary for the preservation of the peace, health, and safety of the Town of Fountain Hills, Arizona, an emergency is declared to exist, and this ordinance shall become immediately operative and in force from and after the date of adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 6th day of October, 2026. TOWN OF FOUNTAIN HILLS, ARIZONA ATTEST: ____________________________________________ _______________________________________ Gerry M. Friedel, Mayor Bevelyn Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: _____________________________________________ ________________________________________ Rachael Goodwin, Town Manager Town Attorney Meeting Packet Page 113 of 311 ORDINANCE NO. 26-13 EXHIBIT A Chapter 16 Streets and Sidewalks Articles: 16-1 Encroachments 16-2 Small Wireless Facilities 16-3 Utility Service Antennas Article 16-1 Encroachments … Article 16-2 Small Wireless Facilities Section 16-2-1 Purpose The intent and purpose of this article is to facilitate the development and installation of small wireless facilities in the Town of Fountain Hills to supplement existing wireless communications networks and to increase capacity in high demand areas, while simultaneously promoting and preserving the health, safety, and general welfare of the residents of the Town and protecting and preserving the aesthetic qualities of the natural and built environment of the Town. Through this article, the Town seeks to balance the need for increased wireless communications capacity with the need for reasonable standards to preserve the aesthetic values of the Town and to ensure the safe placement of small wireless facilities. Section 16-2-2 Definitions The definitions contained in A.R.S. § 9-591 are incorporated by this reference and shall apply to this article as if fully set forth here. Section 16-2-3 Small Wireless Facilities in the Public Right-of-Way This section permits the installation of small wireless facilities in the right-of-way subject to the following requirements: Meeting Packet Page 114 of 311 A. No monopoles, utility poles associated with small wireless facilities, or small wireless facilities shall be collocated, installed, modified, or replaced in the public right-of-way unless the following requirements are met: 1. The applicant participates in a pre-application conference with the Department of Development Services; 2. An Application is submitted to and approved by the Town pursuant to this section; 3. All Town requirements as set forth in this article are met; 4. All other applicable codes and requirements are met; 5. A Wireless Facility License Agreement is signed; and 6. A Wireless Facility Encroachment Permit issued. B. The collocation, installation, modification, maintenance, and replacement of monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way shall be subject to and comply with reasonable requirements, including the Wireless Facilities Standard Terms and Conditions, the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. C. The Development Services Department shall prescribe and provide a regular form of Application for use by applicants for the collocation, installation, modification, maintenance, and replacement of monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way. The Application shall include such information and details as the Department deems necessary to establish the exact location, nature, dimensions, duration and purpose of the proposed monopoles, utility poles, or small wireless facilities in the public right-of-way. Section 16-2-4 Rates and Fees A. The Town Council shall, by ordinance or resolution, set and amend any rate, rate component, charge, or fee authorized by state law for the use of the public right-of- way and Town utility poles in connection with small wireless facilities including: 1. Fees for special use permit applications 2. Fees for collocation applications; Meeting Packet Page 115 of 311 3. Fees for the use of the right-of-way; 4. Rates for the use of the Town’s utility poles; 5. Fees for Encroachment Permit Applications; 6. Fees to recover legal costs resulting from enforcement to any noncompliance including, but not limited to, administrative expenses, investigation, testing, legal proceedings and filings, and continued monitoring; and 7. Other fees as the Town may determine necessary to carry out the requirements contained herein. B. All rates and fees set or amended pursuant to this article shall be reasonable and shall not exceed the amounts permitted by state law. C. The Town shall publish and make available its schedule of rates and fees. D. These fees relate solely to the matters covered by this article and are separate from all other fees, fines and penalties chargeable by the Town. D. The Application shall be accompanied by maps, sketches, diagrams or similar exhibits. The accompanying materials shall be of the size and in the quantity prescribed by the Development Services Department and of sufficient clarity to illustrate the location, dimensions, nature and purpose of the proposed monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way and its relation to existing and proposed facilities in the right-of-way. E. No changes shall be made in the location, dimensions, character or duration of the monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way as granted by the permit except upon written authorization of the Development Services Department. F. Approval of an Application is contingent upon the applicant demonstrating compliance with the Wireless Facilities Standard Terms and Conditions, the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. G. An applicant may appeal denial of an Application to the Town Council by following this procedure: Within seven calendar days of the denial of an Application, Meeting Packet Page 116 of 311 an applicant shall file a notice of appeal, in writing, with the Town Clerk. The Town Council may affirm, modify, or reverse the action from which the appeal is taken. H. Upon approval of an Application, a Wireless Facility Encroachment Permit will be issued for each monopole, utility pole associated with small wireless facilities, or small wireless facility included in the Application. However, nothing in this article shall be construed to exempt monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way from the requirements of Article 16-1 as an encroachment in the public right-of-way. I. The collocation, installation, modification, maintenance, and replacement of monopoles, utility poles associated with small wireless facilities, or small wireless facilities shall be subject to rates and fees pursuant to Section 16-2-4 of this article. Section 16-2-4 Rates and Fees A. The Town Council shall, by ordinance or resolution, set and amend any rate, rate component, charge, or fee authorized by state law for the use of the public right-of- way and Town utility poles in connection with small wireless facilities including: 1. Fees for special use permit applications 2. Fees for collocation applications; 3. Fees for the use of the right-of-way; 4. Rates for the use of the Town’s utility poles; 5. Fees for Encroachment Permit Applications; 6. Fees to recover legal costs resulting from enforcement to any noncompliance including, but not limited to, administrative expenses, investigation, testing, legal proceedings and filings, and continued monitoring; and 7. Other fees as the Town may determine necessary to carry out the requirements contained herein. B. All rates and fees set or amended pursuant to this article shall be reasonable and shall not exceed the amounts permitted by state law. C. The Town shall publish and make available its schedule of rates and fees. D. These fees relate solely to the matters covered by this article and are separate from all other fees, fines and penalties chargeable by the Town. Meeting Packet Page 117 of 311 Article 16-3 Utility Service Antennas Section 16-3-1 Purpose The purpose of this article is to establish general guidelines for the siting of wireless communications towers and antennas placed in the public right-of-way used by utility companies to communicate within the utility system. Section 16-3-2 Definitions “Utility service antenna” means an antenna placed on or near utility boxes, poles, switches, storage tanks, etc., and used by a utility provider to facilitate the operation of the utility system. Section 16-3-3 Utility Service Antennas in the Public Right-of-Way A. General Requirement. For an antenna placed in the town’s right-of-way with the top of the antenna less than six feet above ground level, the support structure and antenna shall be painted a neutral color to blend with the surrounding area. If the top of the antenna is six feet or more above ground level, the antenna and support structure shall utilize the town’s approved saguaro cactus stealth design or a similar stealth design appropriate to the given location as approved by the Public Works Director. B. Review Process. 1. For antennas with a maximum height less than six feet above ground level, applications are reviewed and approved through the town’s encroachment permit process as provided in town code article 16-1, Encroachments. An electrical permit shall also be required for any associated electrical work. 2. For antennas with a maximum height six feet or more above ground level, applications will require an encroachment permit as required by town code article 16-1, Encroachments, and review and approval through the town’s building permit process. Meeting Packet Page 118 of 311 Exhibit B Chapter 19 Small Wireless Facilities; Utility Service Antennas Articles: 19-1 Small Wireless Facilities 19-2 Utility Service Antennas Article 19-1 Small Wireless Facilities Sections: 19-1-1 Purpose 19-1-2 Definitions 19-1-3 General Requirements 19-1-4 Design Standards 19-1-5 Application Submission Requirements 19-1-6 Review Procedures and Timelines; Fees 19-1-7 Permit Conditions 19-1-8 Safety Standards 19-1-9 Operational Requirements 19-1-10 Exceptions 19-1-11 Appeals 19-1-12 Rates and Fees Section 19-1-1 Purpose A. The intent and purpose of this article are as follows: 1. To establish clear guidelines and standards for the siting, location, compatibility, structural integrity, and design of small wireless facilities that promote the availability of adequate public services while minimizing negative impacts of facilities on surrounding land uses and ensuring compatibility with adjacent land uses. Meeting Packet Page 119 of 311 2. To employ the “General Authority” preserved to the Town under 47 U.S.C. § 332(c)(7)(A) to the greatest extent the United States Congress intended while simultaneously complying with each of the substantive and procedural requirements set forth within the subsection 47 U.S.C. § 332(c)(7)(B). 3. To employ the authority reserved under A.R.S. §§ 9-583.A, and 9-596.A to manage the Town’s public highways, permit and manage access to the Town’s public rights of way, exercise its zoning powers, land use, planning and permitting authority and exercise its police powers. 4. To implement Town regulations related to the provision of wireless telecommunications services, and the siting of their small wireless facilities. 5. To assure compliance with the Federal Communications Commission’s (FCC) legislative rules for Communication Facilities including those for Radio Frequency human exposure limits in 47 C.F.R. Part 1, Subpart I and those addressing State and Local Government Regulation of the Placement, Construction, and Modification of Personal Wireless Service Facilities, in 47 C.F.R. Part 1, Subpart U. 6. To promote the community interest by (1) ensuring the balance between public and private interests is maintained; (2) protecting the Town of Fountain Hills’ visual character from potential adverse impacts and visual blight created or exacerbated by small and micro wireless facilities and related infrastructure; (3) protecting and preserving the Town’s environmental resources; (4) protecting and preserving the Town’s public rights-of-way; and (5) promoting access to high- quality, advanced wireless services for the Town’s residents, businesses, and visitors. 7. Ensure that all telecommunications carriers providing facilities or services within the Town comply with the Fountain Hills Town Code. 8. Encourage the collocation of small wireless facilities, thus helping to minimize adverse impacts on the community; 9. Recognize that technology and laws regarding these facilities have changed, so the Town’s regulations need to change accordingly; 10. Promote the health, safety, and general welfare of the people of Fountain Hills Town. 11. Maintain the Town’s status as a designated International Dark Sky Community and an optimum environment for stargazing. Meeting Packet Page 120 of 311 12. Conserve and enhance the unique natural beauty, irreplaceable natural resources, historical, natural, and man-made character and appearance of Fountain Park, McDowell Mountain Preserve, Pleasantville Park, and views of Red Mountain and Four Peaks. 13. Protect Saguaro cacti as a unique natural resource promoting tourism, contributing to the aesthetic well-being of the community, high property values, high quality of life, unique lifestyles, and providing habitat protection for desert wildlife. Saguaro cacti grow slowly and cannot be replaced by a plant of like character. 14. Protect the Sonoran Desert tortoise and its habitats as a unique natural resource and an important component of Town of Fountain Hills natural environment that contributes to the aesthetic, environmental, and personal well-being of the community. The Sonoran Desert tortoise is a state-protected species in Arizona and a petitioned candidate for inclusion as a federally endangered species pursuant to the Endangered Species Act of 1973, 16 U.S.C. §§ 1531–1544. Populations of the Sonoran Desert tortoise have been documented in the Town of Fountain Hills. 15. Protect the quiet small-town suburban, scenic and visual character of the Town. B. This Section is not intended to, nor shall it be interpreted or applied to: 1. Prohibit or effectively prohibit any wireless telecommunications service provider's ability to provide reasonable and necessary wireless communications services; 2. Prohibit or effectively prohibit any entity's ability to provide reasonable and necessary interstate or intrastate telecommunications service; 3. Unreasonably discriminate among providers of functionally equivalent services; 4. Deny any request for authorization to place, construct or modify wireless telecommunications service facilities solely on the basis of environmental effects of radio frequency emissions so long as such wireless facilities comply in every instance and regard with all FCC's regulations concerning such emissions; 5. Prohibit any eligible facility that the Town may not deny under federal or state law; or, 6. Otherwise authorize the Town to violate any applicable federal or state law. C. Applicability. 1. New small wireless facilities. All new small wireless facilities in the Town of Fountain Hills shall be subject to these regulations. The following exceptions apply: Meeting Packet Page 121 of 311 a. Amateur Radio Station Operators/Receive Only Antennas. This chapter shall not govern any tower, or the installation of any antenna, that is under the maximum building height of the zoning district in which such structure is located and which is owned and operated by a federally licensed amateur radio station operator or is used exclusively for receive only operations. b. Pre-existing Towers or Antennas. Legally established pre-existing towers and pre-existing antennas shall not be required to meet the requirements of this chapter, other than the requirements of Sections 19-1-3 and 19-1-4. c. AM Array. For purposes of implementing this chapter, an AM array, consisting of one (1) or more tower units and supporting ground system which functions as one (1) AM broadcasting antenna, shall be considered one (1) tower. Measurements for setbacks and separation distances shall be measured from the outer perimeter of the towers included in the AM array. Additional tower units may be added within the perimeter of the AM array by right. d. Mobile or Temporary Towers. Mobile wireless facilities, when placed on site for seven (7) consecutive days or less, provided any necessary building permit or encroachment permit is obtained. e. Utility Service Antennas in the Right-of-Way. Utility service antennas as defined in this chapter placed in the public right-of-way are subject to the requirements of Article 19-2, Utility Service Antenna, of the Town Code. f. Over-the-Air-Reception Devices ("OTARD") antennas as defined by 47 C.F.R. § 1.4000(a). 2. Existing Towers and Antennas. Any existing towers which are modified, upgraded, or changed in any manner shall be subject to the provisions of this ordinance as applicable. All existing towers and antennas shall be subject to the maintenance and operations requirements in Zoning Ordinance Sec. 17.06. Section 19-1-2 Definitions As used in this article, the following terms shall have the meanings set forth below. A. “Accessory equipment or antenna equipment” means equipment other than antennas used in connection with a small wireless facility or other infrastructure deployment. This includes but is not limited to, equipment, switches, wiring, cabling, Meeting Packet Page 122 of 311 power sources, shelters or cabinets associated with an antenna, located at the same fixed location as the antenna, and, when collocated on a structure, is mounted or installed at the same time as such antenna. For purposes of an eligible facilities request as defined at 47 C.F.R. §1.6100(b)(3) only, the term includes "transmission equipment" as defined in 47 CFR. § 1.6100(b)(8), as may be amended or superseded. B. “Accessory facility or accessory structure” means a facility or structure serving or being used in conjunction with a personal wireless services facility or complex and located on the same property or lot as the personal wireless services facility or complex, or an immediately adjacent lot including, but not limited to, utility or transmission equipment, storage sheds or cabinets. C. “ACHP” means the Federal Advisory Council on Historic Preservation. D. “Adjacent properties or properties adjacent” shall mean (i) those lots or parcels of land that abut another lot or parcel of land or public right-of-way that is contiguous to a wireless facility site or proposed site and (ii) the lots or parcels of land or public right-of- way that would be contiguous to lots or parcels or public rights-of-way but for an intervening local or collector roadway. E. “ADEQ” means the Arizona Department of Environmental Quality. F. “Aesthetic or aesthetics” refers to subjective or objective determinations related to whether and if so, how well a facility will fit within the character of the area where the facility is proposed. This requires a broad range of factors including but not limited to visual effects and impact on property values. The Town will consider aesthetics for all applications and, where not prohibited by federal or state law, reserves the ability to impose careful placement conditions or restrictions. G. “Alternative wireless facility structure” (also called “Concealment element”) can mean any feature or effort to minimize or eliminate the extent to which the wireless facility can be noticed. Concealment elements include, but are not limited to stealth efforts like manmade trees, clock towers, bell steeples, light poles and similar alternative- design mounting structures not necessary to the operation of the facility that is intended to camouflage or obscure the presence of antennas, or towers, or base stations. Setback requirements can also constitute concealment elements. Alternative wireless facility structure or concealment is distinguished from other more aesthetic requirements intended to minimize the visual impact of a facility or an aesthetic locational directive to prevent unwanted visual impact. H. "Antenna" means communications equipment that transmits or receives electromagnetic radio frequency signals and that is used in providing wireless services. Meeting Packet Page 123 of 311 I. "Applicable codes" means uniform building, fire, electrical, plumbing or mechanical codes that are adopted by a recognized national code organization or local amendments to those codes that are enacted to address threats of destruction of property or injury to persons and to an extent that is not inconsistent with this article. J. "Applicant" means any individual, corporation, limited liability company, general partnership, limited partnership, estate, trust, joint-stock company, association of two or more persons having a joint common interest, or any other entity submitting an application for a wireless communication facility permit, site plan approval, building permit, and/or any other related approval, for the installation, operation and/or maintaining of one or more wireless communication facilities. K. "Application" shall mean all necessary and required documentation, information, and evidence that an applicant must submit to receive a wireless communications facility permit, building permit, or other Town approval for personal wireless service facilities from the Town. L. "ATSSA" means the American Traffic Safety Services Association. M. "Authority" shall mean the Town of Fountain Hills, Arizona. N. “Base station” means for purposes of eligible facilities requests, as defined in 47 C.F.R. §1.6100(b)(1), a structure or equipment at a fixed location that enables FCC- licensed or authorized wireless communications between user equipment and a communications network. The term does not encompass a tower or any equipment associated with a tower. O. “Backhaul facilities” means a physical transmission path, all or part of which is within the public rights-of-way controlled by the Town or any government entity, used for the transport of communications data by wire or fiber from a wireless facility to a network. A backhaul facility may also consist of an antenna, including a microwave antenna, installed in the public rights-of-way pursuant to a permit, used for the transport of communications data wirelessly from a wireless facility to a network. P. "Cable operator" has the same meaning prescribed in A.R.S. § 9-505 and includes a video service provider. Cable operator does not include a special taxing district. Q. “Child care facility” or “daycare” has the same meaning prescribed in A.R.S. § 36-881.3., any facility in which child care is regularly provided for compensation for five or more children not related to the proprietor. R. “Clear zone” shall mean the roadside border area, starting at the edge of the traveled way, available for safe use by errant vehicles. This area may consist of a shoulder, recoverable slope, non-recoverable slope, clear runout area, or combination Meeting Packet Page 124 of 311 thereof. The width of the clear zone is dependent upon the traffic volumes and speeds, and on the roadside geometry. S. "Collocate" or "collocation" can have different meanings depending on context. 1. When and where A.R.S. §§ 9-591 — 9-600 apply, the definition in A.R.S. §§ 9- 951.8 shall also apply. That definition currently states: "Collocate" or "collocation" means to install, mount, maintain, modify, operate or replace wireless facilities on, within or adjacent to a wireless support structure or utility pole. 2. Where and when the FCC’s general rules for placement, construction and modification of personal wireless facilities apply, the definition in 47 C.F.R. § 1.6002(g) shall apply. That definition currently states: Collocation, consistent with § 1.1320(d) and the Nationwide Programmatic Agreement (NPA) for the Collocation of Wireless Antennas, appendix B of this part, section I.B, means— a. Mounting or installing an antenna facility on a pre-existing structure; and/or b. Modifying a structure for the purpose of mounting or installing an antenna facility on that structure. c. The definition of “collocation” in § 1.6100(b)(2) applies to the term as used in that section. 3. Where and when the FCC’s rules for wireless facility modifications apply, the definition in 47 C.F.R. § 1.6100(b)(2) shall also apply. That definition currently states: (2) Collocation. The mounting or installation of transmission equipment on an eligible support structure for the purpose of transmitting and/or receiving radio frequency signals for communications purposes. T. For state law purposes, "Communications service" means cable service as defined in 47 United States Code section 522(6), information service as defined in 47 United States Code section 153(24), telecommunications service as defined in 47 United States Code section 153(53) or wireless service. U. For state law purposes "Communications service provider" means a cable operator, a provider of information service as defined in 47 United States Code section 153(24), a telecommunications carrier as defined in 47 United States Code section 153(51) or a wireless services provider. Meeting Packet Page 125 of 311 V. “Consolidated permit application” shall mean a single permit application that would otherwise require individual permit applications for the collocation of up to 25 small wireless facilities to existing utility poles within the public rights-of-way. W. “DBM” (dBm) stands for decibel milliwatts, which is a concrete measurement of the wireless signal strength of wireless networks. It expresses power relative to 1 milliwatt (mW) on a logarithmic scale. Emissions are measured using positive whole or fractional numbers. Received signal strengths are typically recorded in negative numbers because they are usually weaker than 1 milliwatt, and can range from approximately -30 dBm to -110 dBm. The closer the number is to 0, the stronger the cell signal. FCC, HHS and OSHA regulate safe exposure thresholds but transmitter power (in dBm) is crucial to determining exposure, as it is the starting point for calculating current exposure limits. X. “Development Services Director” or “Director” means the person appointed by the Town Manager to be the Development Services Director. If there is no such person designated by the Town Manager, the Town Manager is the Development Services Director. Y. “Distributed Antenna System” or “DAS” means a network of spatially separated antenna nodes connected to a common source via a transport medium that provides personal wireless service within a geographical area. Z. “Eleventh hour submissions” means an applicant’s submission of new and/or additional materials in support of an application and/or to cure deficiencies in incomplete and denied applications within 48 hours of the expiration of an applicable shot clock, or at an otherwise unreasonably short period of time before the expiration of the shot clock, making it impracticable for the Town to adequately review and consider such submissions due to their complexity, volume, or other factors, before the expiration of the shot clock. AA. “Eligible facilities request” means a request for modification (co‐location, removal or replacement of transmission equipment) as defined in 47 CFR § 1.6100(b)(3) of an existing base station wherein automatic approval of modifications that does not substantially change the physical dimensions of such tower or base station are mandated by 47 U.S.C. § 1455(a)(2), involving: 1. Collocation of new transmission equipment; 2. Removal of transmission equipment; or 3. Replacement of transmission equipment Meeting Packet Page 126 of 311 BB. “Excavate or excavation” shall mean consistent with the definition contained in A.R.S. § 40-360.21.8, as it may be amended, any manmade cut, cavity, trench, or depression in the earth’s surface, formed by removal of earth, intended to change the grade or level of land, or intended to penetrate or disturb the surface of the earth, including land beneath the surface water, as defined in A.R.S. § 45-101.9., and the term includes pipe bursting and directional drilling or boring from one point to another point beneath the surface of the earth, or other trenchless technologies. CC. “Existing structure” means light poles, power poles, chimneys, billboards, and other similar structures, which are placed, within the Town at the time of adoption of this chapter, except existing buildings. DD. “FCC” means the Federal Communications Commission. EE. “FCC shot clock” means the presumptively reasonable time frame within which the Town must act on a wireless application, as defined by the FCC. The shot clock begins when the applicant takes the first procedural step that the Town requires. 1. Aggregate of 60 days: a. Collocation of small wireless facilities at existing small wireless facility sites. b. Eligible Facilities Requests. 2. Aggregate of 90 days: a. New small wireless facilities. b. Collocation applications for additions to existing communications facilities not defined as an eligible facilities request. FF. "Fee" means a onetime charge. GG. “General population/uncontrolled exposure limits” means the applicable radiofrequency radiation exposure limits set forth within 47 CFR §1.1310(e)(1), Table 1 Section (ii), made applicable pursuant to 47 CFR §1.1310(e)(3), as further described and supplemented by the FCC Office of Engineering and Technology Laboratory Division’s advisory Knowledge Database (KBD), available at https://apps.fcc.gov/oetcf/kdb/index.cfm. HH. “Historic property” shall mean any prehistoric or historic district, site, building, object or other real or personal property, of historical, architectural or archaeological value. These properties or resources may include, but are not limited to, monuments, memorials, Indian habitations, ceremonial sites, abandoned settlements, engineering Meeting Packet Page 127 of 311 works, treasure troves, artifacts, or other objects with intrinsic historical or archaeological value, or any part thereof, relating to the history, government, or culture of the Town. II. "Law" means any federal, state or local law, statute, common law, code, rule, regulation, order or ordinance. JJ. “Maintenance or routine maintenance” means plumbing, electrical or mechanical work that may require a building permit but that does not constitute a modification to the personal wireless service facility. It is work necessary to assure that a wireless facility and/or telecommunications structure exists and operates reliably and in a safe manner, presents no threat to persons or property, and remains compliant with the provisions of this chapter and FCC requirements. KK. "Monopole" means a wireless support structure that is not more than forty inches in diameter at the ground level and that has all of the wireless facilities mounted on the pole or contained inside of the pole. LL. "MUTCD" means the Manual on Uniform Traffic Control Devices, most recent edition, as published by the Federal Highway Administration. MM. "Permit" means written permission required by an authority to install, mount, maintain, modify, operate or replace a utility pole or monopole, to collocate a small wireless facility on a utility pole or wireless support structure or to collocate wireless facilities on a monopole. NN. “Permittee” means any person to whom a permit to place or maintain a wireless facility has been granted by the Town. OO. "Person" means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including an authority. PP. “Personal wireless service” or “PSWF” is as defined in 47 U.S.C. § 332(c)(7)(C)(i). QQ. “"Personal wireless service facilities are as defined in 47 U.S.C. § 332(c)(7)(C)(ii). RR. "Private easement" means an easement or other real property right that is only for the benefit of the grantor and grantee and the grantor's or grantee's successors and assigns. SS. "Public street" means the full width of the right-of-way of any road, street, highway, lane or pedestrian walkway used by or for the general public, whether or not the road, street, highway, alley, lane or pedestrian right-of-way has been improved or accepted for maintenance by the Town. Meeting Packet Page 128 of 311 TT. “RF” means radiofrequency. UU. “RF radiation” means radiofrequency radiation, that being electromagnetic radiation which is a combination of electric and magnetic fields that move through space as waves, and which can include both non-ionizing radiation and ionizing radiation. VV. "Rate" means a recurring charge. WW. “Residential dwelling” means any dwelling unit that includes toilet or outhouse facilities, and facilities for food preparation and sleeping. XX. “Residential property” means any property that contains a residential dwelling. YY. “Residential property boundaries or school property boundaries” shall mean residential property boundaries and property boundaries containing a public, charter, or private school. ZZ. "Right-of-way" means the area on, below or above a public roadway, highway, street, sidewalk, alley or utility easement. Right-of-way does not include a federal interstate highway, a state highway or state route under the jurisdiction of the department of transportation, a private easement, property that is owned by a special taxing district, or a utility easement that does not authorize the deployment sought by the wireless provider. AAA. “School” means a public, charter, or private educational institution providing instruction for elementary and secondary grades as defined in A.R.S. § 15-101 and includes the real property and facilities used for such educational purpose. BBB. “School property” means any parcel containing a public, charter, or private educational institution providing instruction for elementary and secondary grades as defined in A.R.S. § 15-101 and includes associated playgrounds, athletic fields, administrative buildings, parking areas, and other school-related facilities. CCC. “Setback” means for the purposes of a small wireless facility permit application, a setback shall mean the distance between (a) any portion of a personal wireless facility and/or complex, including but not limited to any and all accessory facilities and/or structures, and (b) the exterior line of any parcel of real property or part thereof which is owned by, or leased by, an applicant seeking a small wireless facility permit to construct or install a personal wireless facility upon such real property or portion thereof. In the event that an applicant leases only a portion of real property owned by a landlord, the setback shall be measured from the facility to the line of that portion of the real property which is actually leased by the applicant, as opposed to the exterior lot line of the non- leased portion of the property owned by the landlord. Meeting Packet Page 129 of 311 DDD. A setback will also mean the distance between the proposed facility and residential and school property boundaries. This distance shall be measured as the most direct, level, shortest straight line, without regard to intervening structures or objects, between the closest edge or corner of the residential or school property line. EEE. “Shot clock, FCC” means the applicable period which is presumed to be a reasonable period within which the Town is generally required to issue a final decision upon an application seeking wireless facility permit approval for the installation, substantial modification, or collocation of a personal wireless services facility or structure, to comply with Section 47 U.S.C. §332(c)(7)(B)(ii) and A.R.S. §§ 9-593.F.3. and 9-594.C.3. FFF. “Shot clock, Arizona” means the statutory timeframe within which the Town must act on a wireless application in the right-of-way pursuant to A.R.S. § 9-593.F.2. and § 9- 594.C.3. before it is otherwise deemed approved pursuant to these statutory provisions. The Arizona shot clock begins on the date when the Town determines the application is properly completed. GGG. "Small wireless facility" can have different meanings depending on context. 1. When and where A.R.S §§ 9-591 – 9-599 applies, the definition in A.R.S §§ 9- 591.19 shall also apply. That definition means a wireless facility that meets both of the following qualifications: a. All antennas are located inside an enclosure of not more than six cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of the antenna's exposed elements could fit within an imaginary enclosure of not more than six cubic feet in volume. b.All other wireless equipment associated with the facility is cumulatively not more than twenty-eight cubic feet in volume, or fifty cubic feet in volume if the equipment was ground mounted before August 9, 2017. The following types of associated ancillary equipment are not included in the calculation of equipment volume pursuant to this subdivision: i. An electric meter. ii. Concealment elements. iii. A telecommunications demarcation box. iv. Grounding equipment. v. A power transfer switch. vi. A cutoff switch. vii. Vertical cable runs for the connection of power and other services. Meeting Packet Page 130 of 311 2. Where and when the FCC’s general rules for placement, construction and modification of personal wireless service facilities apply, the definition in 47 CFR §1.6002(l) shall apply. That definition states as follows: a. Small wireless facilities are facilities that meet each of the following conditions: i. The facilities— 1) Are mounted on structures 50 feet or less in height including their antennas as defined in § 1.1320(d); or 2) Are mounted on structures no more than 10 percent taller than other adjacent structures; or 3) Do not extend existing structures on which they are located to a height of more than 50 feet or by more than 10 percent, whichever is greater; ii. Each antenna associated with the deployment, excluding associated antenna equipment (as defined in the definition of “antenna” in § 1.1320(d)), is no more than three cubic feet in volume; iii. All other wireless equipment associated with the structure, including the wireless equipment associated with the antenna and any pre-existing associated equipment on the structure, is no more than 28 cubic feet in volume; iv. The facilities do not require antenna structure registration under part 17 of this chapter; v. The facilities are not located on Tribal lands, as defined under 36 CFR 800.16(x); and vi. The facilities do not result in human exposure to radiofrequency radiation in excess of the applicable safety standards specified in § 1.1307(b). HHH. "Special taxing district" means a special district formed pursuant to title ARS 48, chapter 11, 12, 17, 18, 19, 20 or 22. III. “Support structure” means pole, tower, base station, or other building, whether or not it has an existing antenna facility, that is used or to be used for the provision of personal wireless service. Meeting Packet Page 131 of 311 JJJ. “Thermal runaway” means self-heating of an electrochemical system in an uncontrollable fashion. KKK. “Tolling” or “tolled” means the pausing of the running of the time period permitted under the applicable shot clock for the respective type of wireless facility as per 47 CFR § 1.6003(a) and per A.R.S. § 9-594.C.3. by mutual agreement of the Town and applicant waiving the applicable timeframes in A.R.S. § 9-594.C.3. LLL. “Town council” or “council” means the town councilmembers of the town Fountain Hills. MMM. “Undertaking” means any application seeking Council approval for the installation of a personal wireless services facility licensed under the authority of the FCC shall constitute an undertaking within the meaning of NEPA, in accord with 42 CFR §137.289 and 36 CFR §800.16. NNN. “Utility” means Arizona (under ARS § 40-360.51 (5)): A public utility includes corporations or persons engaged in furnishing water, gas, electricity, telephone service, or sewage disposal to the public for compensation. OOO. "Utility pole" means a pole or similar structure that is used in whole or in part for communications services, electric distribution, lighting or traffic signals. Utility pole does not include a monopole. PPP. "Utility pole, Authority " means a utility pole that is owned or operated by an authority and that is in a right-of-way. Authority utility pole does not include a utility pole for electric distribution. QQQ. “Utility service antennas” means antenna placed on or near utility boxes, poles, switches, storage tanks, etc., and used by a utility provider to facilitate the operation of the utility system. RRR. “Wireless carriers or carrier” means companies that provide Personal Wireless Services to end-use consumers. SSS. For state law purposes "Wireless facility": 1. Means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including both of the following: a. Equipment associated with wireless communications. b. Radio transceivers, antennas, coaxial or fiber-optic cables, regular and backup power supplies and comparable equipment, regardless of technological configuration. Meeting Packet Page 132 of 311 2. Includes small wireless facilities. 3. Does not include the structure or improvements on, under or within which the equipment is collocated, wireline backhaul facilities, coaxial or fiber-optic cable that is between wireless support structures or utility poles or coaxial or fiber-optic cable that is otherwise not immediately adjacent to, or directly associated with, an antenna. 4. Does not include Wi-Fi radio equipment described in A.R.S § 9-506, subsection I or microcell equipment described in A.R.S. § 9-584.E. TTT. "Wireless infrastructure provider" means any person that is authorized to provide telecommunications service in this state and that builds or installs wireless communications transmission equipment, wireless facilities, utility poles or monopoles but that is not a wireless services provider. Wireless infrastructure provider does not include a special taxing district. UUU. For state law purposes "Wireless provider" means a cable operator, wireless infrastructure provider or wireless services provider. VVV. For state law purposes "Wireless services" means any services that are provided to the public and that use licensed or unlicensed spectrum, whether at a fixed location or mobile, using wireless facilities. WWW. For state law purposes "Wireless services provider" means a person that provides wireless services. Wireless services provider does not include a special taxing district. XXX. For state law purposes “Wireless support structure”: 1. Means: a. A freestanding structure, such as a monopole. b. A tower, either guyed or self-supporting. c. A sign or billboard d. Any other existing or proposed structure designed to support or capable of supporting small wireless facilities. 2. Does not include a utility pole. Meeting Packet Page 133 of 311 Section 19-1-3 General Requirements A. Lot size. For purposes of determining whether the installation of a facility or antenna complies with zoning district development regulations, including but not limited to setback requirements, lot coverage requirements, and other such requirements, the dimensions of the entire lot of that portion of real property which is actually leased by the applicant, as opposed to the exterior lot line of the non-leased portion of the property, shall control. B. Locational Standards. Small Wireless Facilities shall be sited to inflict the minimum adverse impacts upon individual residential or school properties either public, charter, or private that provide instruction to elementary and secondary grade-age children, and commercial properties that abut residential or school properties, and specifically, to minimize, to the greatest extent reasonably feasible, adverse aesthetic impacts upon residential homes or reductions in the property values of same. Small wireless facilities attached to pre-existing wooden and non-wooden poles shall conform to the following criteria. Proposed antenna and related equipment shall meet design standards which the Town may maintain and update as needed. 1. Facilities shall be located to minimize their visibility and the number of distinct facilities present as follows: a. No new facility(ies) shall be placed on an exposed ridgeline or to silhouette against the sky. b. No new facility(ies) shall be installed in a location that is not developed with wireless facilities or other resort, commercial, or industrial uses. c. No new facility(ies) shall be placed in a location readily visible from a public trail, public park, mountain view, or other developed outdoor recreation area. 2. Wireless facilities shall be set back from adjacent property lines as follows: a. The setback requirement of the zoning district containing the use shall apply. b. If the project parcel is adjacent to a zoning district with a more restrictive setback, the more restrictive setback shall apply to the proposed small wireless facility. c. The setback shall be measured from that part of the facility(ies) that is closest to the neighboring property (i.e., the setback for a faux tree would be measured from the end of the branch closest to the neighboring property). In no Meeting Packet Page 134 of 311 instance may a facility be located such that its fall or debris zone extends to an abutting property. d. Wireless communication facilities shall not be located anywhere that results in less than a 500-foot setback from the facility(ies) to a residentially zoned parcel, or a parcel that has a child care or daycare facility or school, regardless of the zoning of the project parcel or the contiguous parcels. e. For guyed facilities and/or support structures, the required setback shall be measured from the outermost guy wire anchor point, and shall additionally account for the manufacturer's or structural engineer's certified guy-wire failure/whip radius. In no case shall a guy wire anchor, guy wire, or its calculated failure radius be located within 500 feet of an occupied structure, public right-of- way, or property line, whichever is more restrictive. 3. Collocation of new antennas on existing facility(ies) is strongly encouraged. Where appropriate to minimize visual impacts, new small wireless facilities will not be approved where collocation on existing facilities is technically feasible, will provide the desired service coverage, and would not result in alterations that create a greater visual impact. 4. Restricted site locations for small wireless facilities not collocated in the public right-of-way. All of the following locations will be deemed restricted site locations that require an exception pursuant to Section 19-1-10 of this Article: a. any location within a residential zone; b. any location within 500 feet from a residential dwelling unit; c. any location within 500 feet from a daycare facility or school; and d. any location within a public trail, park, or outdoor recreation area. 5. Location preferences. To better assist applicants and decision makers understand and respond to the community's aesthetic preferences and values, this subsection sets out listed preferences for locations to be used in connection with small wireless facilities in an ordered hierarchy. Applications that involve lesser-preferred locations may be approved so long as the applicant demonstrates by clear and convincing evidence in the written record that: a. any more preferred locations or structures within 500 feet from the proposed site would be technically infeasible; and b. if the proposed site or the most-preferred location within 500 feet from the proposed site is within a restricted site location, the applicant qualifies for an Meeting Packet Page 135 of 311 exception pursuant to Section 19-1-10. of this section. The Town of Fountain Hill prefers small wireless facilities to be installed in locations, ordered from most preferred to least preferred, as follows: i. Collocated on an already existing facility; ii. Locations within industrial districts; iii. Locations within commercial zones; iv. Locations within mixed use districts; v. Any location not within 500 feet from any residential zone; vi. Locations within residential zones 6. New poles and new ground mounted equipment for small wireless facilities in the rights-of-way must maintain a minimum 25-foot distance from the primary doorway of businesses or residences measured from the outer door frame and a minimum 10- foot distance from the primary entrance of businesses or residences measured at the edge of the local public right-of-way. For a through lot, the separation requirement shall apply to each street frontage, regardless of the location of the primary entrance or the street from which vehicular access is provided. C. In the event that a proposed facility would be within 500 feet from two or more restricted site locations (as defined in Paragraph 4.), and the proposed facility qualifies for an exception pursuant to Section 19-1-10. of this code, the technically feasible location furthest from all such restricted site locations will be deemed to be the most preferred alternative. For discretionary permits the Town of Fountain Hills reserves the right to deny an application based on aesthetic or other locational considerations such as unacceptable impact on the characteristics of the impacted neighborhood or any other “safe harbor” allowed by 47 U.S.C. §§253(b)-(c) and/or 332(c)(7)(B)(i)(II) even if the applicant has proved that a denial would prohibit or effectively prohibit the provision of personal wireless service. D. Accessory equipment for wireless facilities and wireless collocation facilities. 1. For facilities on private property, locations for accessory equipment in order of preference from most preferred to least preferred, accessory equipment for wireless communication facilities and wireless communications collocation facilities shall be located underground, within a building or structure, on a screened roof top area or structure, or in a rear yard if not readily visible from surrounding properties and the roadway, unless the reviewing authority finds that another location is preferable under the circumstances of the application. Meeting Packet Page 136 of 311 2. For facilities in the public right-of-way, accessory equipment shall be located underground. 3. Battery Safety. Any battery energy storage or backup power system installed in connection with a PSWF shall utilize lithium iron phosphate (LiFePO4 or LPE) batteries, which are less prone to thermal runaway and fire hazard. All battery systems shall comply with applicable fire, electrical, building, and product-safety codes and standards. E. Structures and facilities deployed by wireless providers pursuant to this section shall be constructed, maintained and located as to not obstruct, endanger or hinder the usual travel or public safety on the right-of-way, damage or interfere with any other utility facilities in the right-of-way or interfere with a utility's use of the utility's facilities in the right-of-way. F. Minimum Height of Antennas. All antennas shall be located such that: 1. Any person walking adjacent to the transmitting surface of the antenna will be walking on a grade that is a minimum of eight and one-half (8.5) feet below the transmitting surface; and, 2. No person at ground level will be exposed to an exposure level that is higher than allowed by the FCC’s general population exposure rules. Section 19-1-4 Design Standards A. Wireless facilities shall be designed in compliance with all applicable national and Arizona safety standards and to minimize visual, noise, and other impacts on the surrounding community and landscapes in accordance with the design standards in this section. 1. General design standards a. All facilities shall be engineered and certified by an Arizona-licensed structural engineer to withstand local seismic, wind, and loading conditions applicable to the site, and shall comply with wind and seismic load standards in accordance with International Building Codes as adopted by the Town of Fountain Hills and ANSI/TIA-222-H or its most current revision, National Electric Safety Code (NESC) standards, National Electrical Code (NEC) standards. b. Facilities shall be designed to minimize potential adverse impacts that may be inflicted or be likely to inflict upon nearby properties. Meeting Packet Page 137 of 311 c. The applicant shall employ screening and concealment design techniques in the design and placement of wireless facility(ies) and accessory equipment in order to ensure that the facility(ies) is as visually inconspicuous as possible, to prevent the facility(ies) from dominating the surrounding area and to hide the facility from predominant views from surrounding properties and viewsheds, all in a manner that achieves compatibility with the community and background landscapes and structures. Facilities and accessory equipment shall be finished in non-glare colors and non-reflective surfaces and colors that minimize their visibility to the greatest extent possible. d. The visible exterior surface of wireless support facilities, i.e. vaults, equipment rooms and equipment enclosures, shall be designed to be visually compatible with structures typically found in the vicinity of the project site. e. No facility shall be lighted except where required FCC lighting is necessary and must comply with the Town’s Outdoor Lighting Control Ordinance. No exterior lighting shall spill from the site in an unnecessary manner. If required, lighting for facilities shall be limited as follows: i. All approved lighting shall be shielded or directed on site to minimize off- site light spill. ii. In all zones, lighting shall be limited to Security lighting that is manually operated or motion-detector controlled. f. Signage shall be limited to required address and facility identification signs, emergency and safety hazard signage. g. All collocated and multiple-user facilities shall be designed to promote facility and site sharing where feasible, including parking areas, access roads, utilities and equipment. 2. The collocation, installation, modification, maintenance, and replacement of monopoles, utility poles associated with small wireless facilities in the public right- of-way shall be subject to and comply with the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. 3. Small wireless facilities located on private property shall comply with the following design standards: a. Facilities designed as an integral part of the structure are strongly encouraged within all commercial and industrial districts. Meeting Packet Page 138 of 311 b. Antennas: Wall-mounted antennas and antenna equipment, including but not limited to radios, cables, associated shrouding, disconnect boxes, meters, microwaves, and conduit, shall be mounted as close to the wall as technically feasible and shall not extend more than four feet from the face of the wall nor consume more than fifty (50 sq. ft.) square feet per building face, excluding mountings. Pole-mounted antennas, and antenna equipment, including but not limited to radios, cables, associated shrouding, disconnect boxes, meters, microwaves, and conduit, shall be mounted as close to the pole as technically feasible. c. Fencing and screening of wireless facilities. i. Base stations shall be screened from adjacent public rights of way, public trails, public recreation areas, places of public gathering, open spaces, and adjacent properties by landscaping with native species or other means, in alignment with Section 19.05 of the Fountain Hills Town Zoning Ordinance. ii. All areas disturbed during project construction shall be replanted with vegetation as required by Section 6.05 of the Town’s Subdivision Ordinance and approved during plan review. iii. Existing trees and other screening vegetation in the vicinity of the facility and along the access or utility easements, shall be preserved to the maximum extent possible and protected from damage during construction. iv. No razor wire or barbed wire shall be permitted on any chain link fencing. 4. Data-Only and Information Service Facilities. To the maximum extent permitted by federal and state law, any wireless facility used exclusively for the provision of an information service, data collection, telemetry, machine-to-machine communication, sensing, monitoring, or another service that does not constitute a personal wireless service under 47 U.S.C. § 332(c)(7)(C) or a telecommunications service protected by 47 U.S.C. § 253 shall be installed underground or flush with grade, including its antenna, antenna equipment and accessory equipment, where technically feasible. An applicant seeking above-ground installation shall demonstrate through clear and convincing technical evidence that underground or flush-to-grade installation would prevent the facility from performing its intended function and that the proposed above-ground installation is the least visually intrusive technically feasible alternative. Meeting Packet Page 139 of 311 Section 19-1-5 Application Submission Requirements A. Consolidated applications. The applicant may submit up to 25 individual applications for collocations of small wireless facilities permits in a consolidated application; provided, however, that the small wireless facilities in a consolidated application must be proposed with substantially the same equipment in the same configuration on the same support structure type. Each application in a consolidated application must meet all the requirements for a complete application, which includes without limitation the application fee for each application in the consolidated application. If any application in a consolidated application is incomplete, the Town, in the Town's discretion, shall determine whether the entire consolidated application shall be deemed incomplete. If any application is withdrawn or deemed withdrawn from a consolidated application, the Town shall determine whether the entire consolidated application shall be deemed withdrawn. If any application in a consolidated application fails to meet the required findings for approval, the Town shall determine whether the entire consolidated application is denied. B. General application requirements. All permit applications for small wireless facilities must include the following information and materials: 1. Application form duly completed and executed in a manner specified by the Town. 2. A statement by the applicant stating whether applicant intends to claim Effective Prohibition in the event of a permit denial. If applicant intends to claim Effective Prohibition, applicant must attach a written Notice Of Effective Prohibition explaining how a significant gap in coverage exists and why the proposed location is the least intrusive alternative to remedy said gap. 3. Proof of authorization of structure occupancy. The applicant must submit a written copy of proof that the applicant is authorized to install its facility(ies) on the support structure such as a utility pole, streetlight, or other structure, as applicable. 4. Drawn-to-scale depictions of the wireless facilities and equipment. If the proposed facility is a small wireless facility, the drawn-to-scale depiction shall include complete calculations for all of the antennas and equipment of which the facility will be comprised, depicting that, when completed, the installation and equipment will meet the physical size limitations which enable the facility to qualify as a small wireless facility. 5. Construction drawings that depict all the existing and proposed improvements, equipment and conditions related to the proposed project, which includes without limitation any and all poles, posts, pedestals, traffic signals, towers, streets, sidewalks, pedestrian ramps, driveways, curbs, gutters, drains, handholes, manholes, fire hydrants, equipment Meeting Packet Page 140 of 311 cabinets, antennas, cables, trees and other landscape features. The construction drawings must: a. contain cut sheets that contain the technical specifications for all existing and proposed antennas and accessory equipment, which includes without limitation the manufacturer, model number and physical dimensions; b. identify all potential support structures within 50 feet from the proposed project site and call out such structures' overall height above ground level; c. depict the applicant' s preliminary plan for electric and data backhaul utilities, which shall include the anticipated locations for all conduits, cables, wires, handholes, junctions, transformers, meters, disconnect switches, and points of connection; and d. demonstrate that proposed project will be in full compliance with all applicable health and safety laws, regulations or other rules, which includes without limitation all applicable codes and public utility regulations and orders. 6. Site survey. A survey prepared, signed and stamped by a licensed or registered engineer. The survey must identify and depict all existing boundaries, encroachments and other structures within 75 feet from the proposed project site and any new improvements, which includes, as applicable, without limitation all: a. traffic lanes; b. all private properties and property lines; c. above and below-grade utilities and related structures and encroachments; d. fire hydrants, roadside call boxes and other public safety infrastructure; e. streetlights, decorative poles, traffic signals and permanent signage; f. sidewalks, driveways, parkways, curbs, gutters and storm drains; g. benches, trash cans, mailboxes, kiosks and other street furniture; and h. existing trees, planters and other landscaping features. 7. Photo simulations. Site photographs and photo simulations that show the existing location and proposed small wireless facility in context from at least three vantage points within the public streets or other publicly accessible spaces, together with a vicinity map that shows the proposed site location and the photo location for each vantage point. At least one simulation must depict the small wireless facility from a vantage point approximately 50 feet from the proposed support structure or location. The photo simulations and vicinity map shall be incorporated into the construction plans submitted with the application. The Meeting Packet Page 141 of 311 photo simulations must show all required elements of the facility that will be visible and shall be based on actual site photographs. 8. Fire safety. A Fire Safety Plan that includes a general description of the personal wireless services facility for purposes of ensuring the Fire Department is fully informed and prepared in case of a fire. The Fire Safety Plan shall include: a. Location of all Fire Safety Plan documents. b. Location of the facility’s alarm panel. c. List of emergency contacts. d. Specific responsibilities assigned to designated personnel. e. Location of signal-processing equipment. f. Location and listing of types of power equipment, including rectifiers, inverters, distribution cabinets, bus bars, cables, and communications raceways. g. Listing and location of batteries, including description of quantities and types of batteries, specifying whether batteries are lithium-ion, nickel cadmium, sodium-nickel, valve-regulated lead acid, and/or vented, and description of any associated exhaust ventilation system(s). h. Description of actions to detect and prevent thermal runaway events. i. Description of whether the facility will be located in a lightning-prone area. If the facility is to be located in a lightning-prone area, description of how the facility shall comply with NFPA 780 Standard for the Installation of Lightning Protection Systems; j. Description of location and types of fuses used to ensure that if the wireless transmission facility experiences overcurrent resulting from current exceeding the rating of equipment or the ampacity of a conductor, the facility shall turn off temporarily. k. Depowering procedures including identification of locations of electrical depowering devices, which include: i. Coded floor prints located in the Fire Safety Plan document; ii. Facility signage to direct fire personnel to depowering locations; iii. The method of turning off power to the following: 1) Alternating current power board. This is the primary source of electric power for a small wireless facility and is supplied by the local power company. Meeting Packet Page 142 of 311 2) Standby power generator. This unit, usually a turbine or diesel generator, provides standby ac power that is transferred manually or automatically whenever a loss of ac power is experienced. 3) Direct current primary disconnect fuse or circuit breaker bay. This unit distributes dc power to the secondary fuse or circuit breaker panels throughout the central office. The secondary fuse or circuit breaker panels feed all the operating voltages to the central office branch circuits. 4) Uninterruptible power supply (UPS) 5) HVAC systems serving the facility 6) Alternative energy devices, such as wind turbines, fuel cells, photovoltaic systems, or other devices providing power to the facility. 9. Detailed electrical designs, signed and stamped by a licensed electrical engineer, demonstrating compliance with the adopted building, electric and fire codes adopted by the Town. The Code compliance demonstration shall include all necessary underlying calculations and inputs, including but not limited to: i. A short circuit and coordination study (“SCCS”) calculated pursuant to the IEEE 551-2006: Recommended Practice for Calculating AC Short-Circuit Currents in Industrial and Commercial Power Systems or the latest version of that standard. The study must demonstrate the protection devices will ensure the equipment enclosure will not be breached. The SCCS must include analysis of Voltage Transient Surges due to contact of conductors of different voltages; ii. A one-line diagram of the electrical system; iii. Voltage Drop & Load Flow Study; iv. Load Calculation; v. Panel Directories; 10. Regulatory authorization. The applicant shall submit evidence of the applicant's regulatory status under federal and Arizona law to provide the services and construct the small wireless facility proposed in the application. The application shall clearly and expressly state whether the facility will be used to provide personal wireless services as defined by federal law and if the applicant contends 47 U.S.C. § 332(c)(7) and 47 C.F.R. §§1.6002 and 1.6003 apply. The applicant shall also clearly state whether it contends that 47 U.S.C. § 1455 and 47 C.F.R. § 1.6100 apply. Meeting Packet Page 143 of 311 11. Environmental impact assessment. A completed FCC NEPA worksheet that was used to determine whether further environmental processing under NEPA and 47 C.F.R. Subpart I is necessary. 12. Structural analysis by a professional engineer licensed in the State of Arizona that evaluates whether the underlying pole or support structure has the structural integrity to support all the proposed equipment and attachments. At a minimum the analysis must be consistent with ANSI .05.1 standards, the standards and practices required for an ANSI/TIA-222 Maintenance and Conditions Assessment (under the most current revision at the time of submittal), any safety and construction standards required by law and the utility provider and all other applicable codes. The report shall contain tolerances including but not limited to guy tensions if applicable, plumb, twist, slip splices and take up devices. If a new tower or monopole, include calculations demonstrating the new tower is capable of collocation of at least one additional set of antenna. 13. Acoustic analysis. The applicant shall submit an acoustic analysis prepared and certified by a licensed engineer in the State of Arizona for the proposed facility and all associated equipment including all environmental control units, sump pumps, temporary backup power generators and permanent backup power generators demonstrating compliance with the Town’s noise regulations. The acoustic analysis must also include an analysis of the manufacturer’s specifications for all noise-emitting equipment and a depiction of the proposed equipment relative to all adjacent property lines. 14. FCC Compliance Report. An FCC compliance report, prepared by a licensed engineer, and certified under penalties of perjury, that the content thereof is true and accurate, wherein the licensed engineer shall certify that the proposed facility will be FCC compliant as of the time of its installation, meaning that the facility will not expose members of the general public to radiation levels that exceed the permissible radiation limits which the FCC has set. If it is anticipated that more than one carrier and/or user is to install transmitters into the facility, the FCC compliance report shall take into account anticipated exposure from all users on the facility and shall indicate whether or not the combined exposure levels will or will not exceed the permissible General Population Exposure Limits, or alternatively, the occupational Exposure Limits, where applicable. Such FCC Compliance Report shall provide the calculation or calculations with which the engineer determined the levels of RF radiation and/or emissions to which the facility will expose members of the general public. On the cover page of the report, the report shall explicitly specify: (a) Whether the applicant and their engineer are claiming that the applicable FCC limits based upon which they are claiming FCC compliance are the General Population Exposure Limits or the Occupational Exposure Limits. If the applicant and/or their engineer are asserting that the Occupational Meeting Packet Page 144 of 311 Exposure Limits apply to the proposed installation, they shall detail a factual basis as to why they claim that the higher set of limits is applicable, (b) The exact minimum distance factor, measured in feet, which the applicant’s engineer used to calculate the level of radiation emissions to which the proposed facility will expose members of the general public. The minimum distance factor is the closest distance (i.e., the minimum distance) to which a member of the general public shall be able to gain access to the transmitting antennas mounted upon, or which shall be a part of, the proposed facility. 15. If the application is for a wireless facility that will not be attached to an existing utility pole and the facility’s proposed height will be greater than 30 feet then structural elevations of the facility(ies) shall include any trees and other structures within 20 feet, and their height. 16. Notice of Application. The applicant shall provide evidence that a Town-approved notice was sent to all landowners and residents within 300 feet of the proposed facility location at least 15 days prior to application submittal. C. Each Eligible Facilities Request shall include the items listed in B.1.-10. and B. 12.-16. The applicant shall also produce all other information that is necessary for the Development Services Director to verify that the proposed facility meets the criteria for an Eligible Facilities Request in 47 C.F.R. §1.6100. D. Additional submittal requirements for wireless facilities located within the Town’s rights-of-way: 1. A signed Wireless Facility License Agreement; and 2. A Wireless Facility Encroachment Permit E. Additional submittal requirements for wireless facilities located on private property: 1. Proof of authorization of site occupancy. If the applicant is not the owner of real property where it seeks to install and operate its facility(ies) and is leasing all or a portion of the real property, the application shall provide a written copy of its lease with the owner of such property or other proof that applicant is authorized to occupy the site. 2. Tree protection. The applicant shall identify all existing trees to be removed on a parcel for the installation, operations and maintenance of the facility and obtain approval from the Town of a tree protection plan prepared by a certified arborist if the small cell installation will be located within the canopy of a tree or within a 20-foot radius of the base of such a tree. Depending on site specific criteria (e.g., location of tree, size, and type of tree, etc.), a radius greater than 20 feet may be required. Meeting Packet Page 145 of 311 Section 19-1-6 Review Procedures and Timelines A. Complete Application. Applications for small wireless facilities shall be filed electronically on the Town’s website using the process established by the director for such applications. All such applications shall include the information as required by Section 19-1-5 as applicable to the type of application. B. Independent Consultant. The Town is authorized to retain an independent, qualified consultant to review any application for a permit for a small wireless facility to review the technical aspects of the application, including, but not limited to, the following matters: 1. The accuracy, adequacy, and completeness of submissions; 2. Compliance with applicable radio frequency emission standards; 3. Whether any requested exception is necessary to close a significant gap in coverage and is the least intrusive means of doing so; 4. Technical demonstration of the unavailability of alternative sites, facility designs or configurations, and coverage analysis; and 5. The validity of conclusions reached or claims made by applicant. 6. The cost of this review shall be paid by the applicant through a deposit pursuant to an adopted fee schedule resolution. C. Review and approval authority. The Town of Fountain Hills reserves its authority to the fullest extent permitted over decisions regarding the placement, construction, and modification of a wireless communications facility pursuant to 47 U.S.C. § 332(c)(7)(A) and A.R.S. § 9-596. D. The permitting and regulation of small wireless facilities are subject to all of the Town’s codes and regulations, including the Town’s zoning codes and other regulatory documents. E. Voluntary waiver of timeframes for completeness review and the Arizona shot clock to either grant or deny a properly completed application. In the interests of promoting a proper review for approval of a permit application, the Town shall request that Applicant agree to a voluntary waiver of the timeframe for completeness review and permit review pursuant to A.R.S. § 9-593.F.2. and/or 47 C.F.R. § 1.6003(d) upon receipt of an application. F. Completeness review. Upon receipt of wireless communications facility permit application, the Town shall review the application for completeness. If the Town Meeting Packet Page 146 of 311 determines the application is: (a) incomplete, (b) missing required application materials, (c) specifies the wrong type of wireless facility, or (d) is otherwise defective, then, within 20 days of the Town’s receipt of the application for collocation of small wireless facilities or 30 days of the Town’s receipt of the application for the modification of existing or the installation of new monopoles, utility poles or new wireless facilities, the Town shall notify applicant of the incompleteness of an application with a notice of incomplete application sent by electronic mail. If and to the extent 47 C.F.R. § 1.6003 applies, the tolling periods set out in § 1.6003(d) shall apply. If and to the extent that 47 C.F.R. § 1.6100 applies, the tolling periods in § 1.6100(c) shall apply. 1. Notice of incomplete application. Such notice shall advise the applicant, indicating with specificity any deficiencies in the required documents or deficiencies in the content of the required documents which, if cured, make the application properly completed. 2. Extension of 75-day application review period for collocations of small wireless facilities or 150-day period for modifications of existing or installations of new monopoles, utility poles or new wireless facilities. The Town and applicant may mutually agree to extend the 75-day or 150-day application review period. 3. Eleventh hour submissions. Upon the electronic mailing of such notice of incompleteness, applicant will have a reasonable timeframe to cure deficiencies and make the application properly completed to accommodate the Town’s timely request for information required to complete the application. In the event that applicant tenders eleventh hour submissions to the Town in the form of expert reports, expert materials, and/or materials which require a significant period for review due either to their complexity or the sheer volume of materials which an applicant has chosen to provide to the Town at such a late point in the proceedings, the Town shall be afforded a reasonable time to review such late-submitted materials. 4. If applicant does not cure stated deficiencies within 30 days, the application will be considered withdrawn or closed. G. On-site inspection. A physical inspection by Town staff or the Town's designee may be required for any application that involves: 1. A new wireless facility on a new or replacement structure; 2. Any modification to an existing facility if no physical inspection has occurred in the last 12-month period. H. Property values impact report. The Town may require applicant to submit a property values impact report prepared by an independent, qualified real estate appraiser Meeting Packet Page 147 of 311 licensed in the state of Arizona. The report shall evaluate the potential impact of the proposed wireless facility on the value, marketability, and desirability of nearby residential properties and shall: 1. Identify all residential properties located within at least one thousand (1,000) feet of the proposed wireless facility site, or such greater distance as determined appropriate by the Town; 2. Analyze the potential effects of the proposed facility on surrounding property values, including but not limited to visual impacts, proximity impacts, neighborhood character, aesthetics, noise, lighting, and equipment visibility associated with the proposed installation; 3. Include a comparative analysis of similarly situated properties located near existing wireless facilities and comparable properties not located near such facilities, where data is reasonably available; 4. Evaluate impacts on scenic views, residential enjoyment, and community character, particularly in residential neighborhoods, historic districts, scenic corridors, and environmentally sensitive areas; 5. Include all assumptions, methodologies, supporting market data, studies, photographs, maps, and comparable sales relied upon in preparing the report; 6. Be prepared at the sole expense of the applicant; and 7. Be subject to independent peer review by a real estate expert selected by the Town, at the applicant’s expense. The Town may consider the findings of the property value impact report, including any evidence of adverse impacts on surrounding properties or neighborhood character, when evaluating compliance with applicable zoning, aesthetic, compatibility, and public welfare standards under this Code. I. Environmental impact. For all applications other than eligible facilities requests, the Town shall conduct environmental reviews pursuant to NEPA. If, and to the extent that, the Town determines a proposed installation bears the potential for a significant adverse impact upon the environment within the meaning of NEPA, then the Town shall be expected to comply with the requirements of NEPA in determining both 1. The extent of adverse impacts upon the environment and Meeting Packet Page 148 of 311 2. What mitigation measures the applicant should be required to undertake to minimize the adverse environmental impacts and/or adverse impacts upon historic sites, structures and/or districts. J. A biological resource survey addressing potential impacts to locally present protected or sensitive species, including but not limited to the Sonoran Desert Tortoise (Gopherus morafkai). The survey shall include the following: 1. A proposed facility description including location, height of tower as measured from the ground, description of associated equipment, width and length of access roads and driveways, and length and right-of-way width of power and communication lines; 2. Existing biological resources on-site including quantification of vegetation and habitat types, color photo documentation of on-site and surrounding vegetation, a description of water resources, potential habitat for federal and state-listed species, and sensitive species habitats; 3. The results of any focused surveys for federally listed species (if required); and 4. Impacts to biological resources including quantification of the habitat to be removed as a result of the proposed facility. The director may waive this requirement based on a finding that existing information verifies the lack of such biological resources on the site. K. Historical reviews. For all applications other than eligible facilities requests, the Town shall consider the potential adverse impacts of any proposed personal wireless services facility upon any historic site or structure. If, and to the extent that the Town determines that a proposed installation bears the potential for a significant adverse impact upon a historic site or a historic district within the meaning of the NHPA (especially if the historic site at issue is listed upon the national register of historic places), then the reviewing authority shall comply with the requirements of both NHPA and Town law in determining both: (a) the extent of adverse impacts upon the historic properties, and (b) what mitigation measure might the applicant be required to undertake to minimize the adverse environmental impacts and/or adverse impacts upon historic sites or structures. Should a respective applicant fail to obtain a Section 106 review under NHPA, and opinion letters from the FCC pertaining to its proposed installation prior to a first public hearing before the reviewing authority for the respective application, then the Town shall make direct requests to the FCC for their review of the application. They shall request the FCC’s review and input in completing the statutorily-required environmental/historic impact analysis pursuant to NHPA. This request shall include, but not be limited to, a request to the FCC for a Section 106 review, as defined in this chapter, as the Town Meeting Packet Page 149 of 311 recognizes each application for a wireless communications facility permit for the installation of a personal wireless services facility shall constitute “an undertaking” for purposes of compliance with the National Historic Preservation Act. L. Small wireless facilities in the public right-of-way. The permitting and regulation of small wireless facilities in the right-of-way are subject to all of the Town’s codes and regulations, including the Town’s zoning codes and other regulatory processes governing use of the rights-of-way. Small wireless facilities located or collocated within the Town’s rights-of-way shall be reviewed in accordance with the following: 1. Review and approval authority. The Town of Fountain Hill reserves its authority to the fullest extent pursuant to 47 U.S.C. § 332(c)(7)(A) and A.R.S. § 9-594.B. to regulate the construction, installation, maintenance, modification, operation or replacement of a utility pole, monopole or associated wireless facility in a right-of- way. 2. No monopoles, utility poles associated with small wireless facilities, or small wireless facilities shall be collocated, installed, modified, or replaced in the public right-of-way unless the following requirements are met. Applications for the installation of new, replacement or modified utility poles associated with the collocation of small wireless facilities in the right-of-way shall be reviewed for compliance with the following: a. All applicable codes. b. Local code provisions or regulations that concern: i. Public safety. ii. Objective design standards and reasonable stealth and concealment requirements. iii. Undergrounding requirements that prohibit the installation of new or the modification of existing utility poles or monopoles in a right-of-way without prior approval, if such requirements include a waiver, zoning or another process that addresses requests to install such new utility poles or monopoles or modify such existing utility poles or monopoles and do not prohibit the replacement of utility poles or monopoles. c. Requirements that are imposed by a contract between the Town and a private property owner and that concern design standards applicable to utility poles in the right-of-way. Meeting Packet Page 150 of 311 d. The Town’s public safety and reasonable spacing requirements that concern the location of new utility poles in a right-of-way. Approval of an Application is contingent upon the applicant demonstrating compliance with the Wireless Facilities Standard Terms and Conditions, the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. Upon approval of an Application, a Wireless Facility Encroachment Permit will be issued for each monopole, utility pole associated with small wireless facilities, or small wireless facility included in the Application. However, nothing in this article shall be construed to exempt monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way from the requirements of Town Code Article 16-1 as an encroachment in the public right-of-way. M. The Town shall notify the applicant of approval or denial by electronic mail on or before the end of the applicable shot clock period or, if review timeframe waived, at the end of any mutually agreed-upon extension. If the application is denied, the Town shall specify the basis for the denial in writing with citations to the specific code provisions on which the denial is based and send the documentation to Applicant by electronic mail. The applicant may cure the deficiencies identified by the Town and resubmit the application within 30 days after the notice of denial is sent to the applicant. If the application is resubmitted, the Town shall approve or deny the application within 30 days of receipt of the application. If Applicant does not cure the stated deficiencies within 30 days, the application shall be considered withdrawn or closed. N. Truthful and accurate statements. Applicant acknowledges that the Town's approval relies on the written and/or oral statements by applicant and/or persons authorized to act on permittee's behalf. In any matter before the Town in connection with the small wireless facility or other infrastructure approved under the wireless communications facility permit, neither the applicant nor any person authorized to act on applicant's behalf shall, in any written or oral statement, intentionally provide material factual information that is incorrect or misleading or intentionally omit any material information necessary to prevent any material factual statement from being incorrect or misleading. Section 19-1-7 Permit Conditions A. Owners of all approved wireless facilities shall be required to agree to allow future co-location by other carriers, and to provide an efficient process for handling co- location requests. Meeting Packet Page 151 of 311 B. Post-installation certification. Within 60 calendar days after the permittee commences full, unattended operations of the wireless facility approved or deemed- approved, the permittee shall provide the Town’s Development Services Director, or his or her designee with documentation reasonably acceptable to the Development Services Director, at its expense, showing that the wireless facility has been installed and constructed in strict compliance with the approved construction drawings and photo simulations. Such documentation shall include without limitation as-built drawings, GIS data, and site photographs and may be reviewed by an independent consultant retained by the Town pursuant to this Ordinance. The post-installation certification shall include, without limitation, the physical site information including listing of ASR registration number, owner of record, service life, number of antennas, name of each wireless carrier using the facility, list of lengths and sizes of guy wire coil, lengths and sizes of COAX and fiber cable, COAX fiber boots, COAX fiber panels, and COAX fiber connectors, base station equipment, jaw turnbuckle, grounding kit(s), lightning arrestor, lights, wave bridge, GPS receiver(s) and transmitter(s), and backup power equipment including fuel tank(s). C. Insurance required. Prior to final inspection and operation of the facility, The permittee and each owner or operator of an antenna on the personal wireless services facility, shall obtain, and at all times relevant to this permit maintain, insurance policies, issued by an insurer authorized to do business in the State of Arizona and reasonably acceptable to the Town of Fountain Hills, at least as broad as follows: 1. Commercial general liability insurance. The permittee shall procure and maintain at its expense or cause its contractor or subcontractor to procure and maintain throughout the term of this permit, commercial General Liability ("CGL") insurance on an "occurrence" basis, with limits not less than $10,000,000 per occurrence per wireless carrier or $10,000,000 per wireless carrier in the aggregate. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project location or the general aggregate limit shall be twice the required occurrence limit. CGL insurance must include coverage for the following: Bodily Injury and Property Damage; Personal Injury/Advertising Injury; Premises/Operations Liability; Products/Completed Operations Liability; Aggregate Limits that Apply per Project; Explosion, Collapse and Underground ("UCX") exclusion deleted; Contractual Liability with respect to the permit; Broad Form Property Damage; and Independent Consultants Coverage. The policy shall contain no endorsements or provisions limiting coverage for (i) contractual liability; (ii) cross liability exclusion for claims or suits by one insured against another; (iii) products/completed operations liability; (iv) bodily injury or damage from RF exposure at levels exceeding the FCC limits; or (v) contain any other exclusion contrary to the conditions in this permit. 2. Environmental pollution liability insurance. The permittee shall procure and maintain at its expense or cause its contractor or subcontractor to procure and maintain throughout the Meeting Packet Page 152 of 311 term of this permit, Contractors Pollution Liability Insurance including contractual liability coverage to cover liability and legal expenses arising out of cleanup, removal, storage, or handling of hazardous or toxic chemicals, materials, substances, or any other pollutants by the permittee or any subcontractor resulting from pollution conditions associated with the personal wireless services facility in an amount not less than $1,000,000 each occurrence combined single limit for bodily injury and property damage. 3. Umbrella policy. If an umbrella or excess liability insurance policy is used to satisfy the minimum requirements for insurance coverage listed above, the umbrella or excess liability policies shall provide coverage at least as broad as specified for the underlying coverages and covering those insured in the underlying policies. Coverage shall be "pay on behalf," with defense costs payable in addition to policy limits. Permittee shall provide a "follow form" endorsement or schedule of underlying coverage satisfactory to the Town indicating that such coverage is subject to the same terms and conditions as the underlying liability policy 4. Endorsements. The relevant policy(ies) shall name the Town of Fountain Hills, its elected/appointed officials, commission members, officers, representatives, agents, volunteers and employees as additional insureds. The permittee shall use its best efforts to provide thirty (30) days' prior notice to the Town of the cancellation or material modification of any applicable insurance policy. 5. Verification of coverage. Permittee shall furnish the Town of Fountain Hills with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required herein. All certificates and endorsements are to be received and approved by the Town before any work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Licensee's obligation to provide them. Permittee shall furnish updated certificates and endorsements to the Town annually. The Town reserves the right to require updated certificates and endorsements or complete, certified copies of all required insurance policies, including the endorsements required herein, at any time. All insurance required under this Chapter shall be issued by an insurer holding a current A.M. Best rating of A- or better, that is not an affiliate, subsidiary, or captive insurance entity of the applicant, permittee, or any parent or related company thereof. Self-insurance and insurance issued by a special-purpose or single-project entity created by the applicant shall not satisfy this requirement. The Town reserves the right to request and independently verify the insurer's rating and independence prior to permit issuance and at each renewal. D. Permittee has full liability. The permittee shall assume full liability for damage or injury caused to any property or person by the personal wireless services facility. Meeting Packet Page 153 of 311 E. Prior to final inspection and operation of the facility, permittee shall provide an executed agreement, pursuant to which permittee and any related third parties agree to defend, hold harmless and fully indemnify the Town of Fountain Hills, its officers, employees, agents, attorneys, and volunteers, from (i) any claim, action or proceeding brought against the Town or its officers, employees, agents, or attorneys to attack, set aside, void, or annul any such approval of the Town or (ii) a successful legal action brought against the Town for loss of property value or other harm caused by the placement or operation of a small cell installation. Such indemnification shall include damages, judgments, settlements, penalties, fines, defensive costs or expenses, including, but not limited to, interest, attorneys’ fees and expert witness fees, or liability of any kind related to or arising from such claim, action, or proceeding whether incurred by the permittee, the Town of Fountain Hills and/or the parties initiating or bringing such proceeding. The agreement shall also include a provision obligating the permittee to indemnify the Town of Fountain Hills for all of the Town’s costs, fees and damages which the Town incurs in enforcing the indemnification provisions of this Section. F. ADA accommodations. The Town of Fountain Hills seeks to comply with the Americans With Disabilities Act, and shall comply with same in the event that any person who is disabled within the meaning of the Act seeks a reasonable accommodation, to the extent they are entitled to same under the Act. G. Prior to the issuance of any entitlement permit, the applicant shall provide a facility maintenance/removal agreement and decommissioning plan to the Town manager, binding the developer and successors in interest, to an agreement to: 1. Maintain the facility as approved; and 2. Notify the Town of Fountain Hills of intent to vacate the site, agreeing that the applicant will remove all facilities within twelve (12) months pursuant to the decommissioning plan unless the site is occupied by a successor; or 3. Provide a performance bond equal in cost to removing the facility and associated facilities. H. Decommissioning plan. The Facility Maintenance/Removal Agreement shall include a decommissioning plan with the following information: 1. A plan for disposal of all solid waste, special waste and hazardous waste in accordance with local, state, and federal waste disposal regulations detailing the types and quantities of waste materials and methods of disposal; 2. A description of how and on what schedule stabilization and re-vegetation of the site as deemed necessary to minimize erosion will be accomplished. Permittee should Meeting Packet Page 154 of 311 include, to the extent possible, restoration of native vegetation, and pollinator-friendly seed mixtures shall be used to the maximum extent possible in re-vegetation of ground cover; 3. An estimate of costs for the decommissioning of the personal wireless services facility with a detailed description of how the estimated costs were derived, including the date which was the basis for the estimate; 4. A decommissioning plan signed by the party responsible for decommissioning and the landowner (if different) whose minimum requirements meet the standards of this Ordinance. Such plan must be filed with the Town manager prior to the first operation of the personal wireless services facility; 5. An estimate of the total cost of decommissioning value of the equipment and itemization of the estimated major expenses, including the projected costs of measures taken to minimize or prevent adverse effects on the environment during the implementation of the decommissioning plan. I. Abandoned Facilities: The wireless facility authorized under this permit shall be deemed abandoned if not operated for any continuous six-month period. Within 90 days after a small wireless facility or other infrastructure deployment is abandoned or deemed abandoned, the permittee and/or property owner shall completely remove the small wireless facility or other infrastructure deployment and all related improvements and shall restore all affected areas to a condition compliant with all applicable laws, which includes without limitation the Code. In the event that neither the permittee nor the property owner complies with the removal and restoration obligations under this condition within said 90-day period, the Town shall have the right (but not the obligation) to perform such removal and restoration with or without notice, and the permittee and property owner shall be jointly and severally liable for all costs and expenses incurred by the Town in connection with such removal and/ or restoration activities. J. Landscaping. The permittee shall replace any landscape features damaged or displaced by the construction, installation, operation, maintenance or other work performed by the permittee or at the permittee’s direction on or about the site. If any trees or cacti are damaged or displaced, the permittee shall hire and pay for a licensed arborist to select plant and maintain replacement landscaping in an appropriate location for the species. Any replacement tree or cacti must be substantially the same size as the damaged tree or cacti or as otherwise approved by the Town of Fountain Hills. The permittee shall, at all times, be responsible to maintain any replacement landscape features. K. A permanent, weatherproof, facility identification sign, no more than twelve (12”) inches by twenty-four (24”) inches in size, identifying the facility operator and a twenty- four (24) hour phone number, shall be placed on the fence, the equipment building or Meeting Packet Page 155 of 311 facility base. If larger signage is required by the FCC, the applicant shall provide proof of the requirement, and signage shall not exceed the required size. L. Permittee’s contact information. Prior to the final inspection and at all times relevant to this permit, Permittee shall keep on file with the Town of Fountain Hills basic contact and site information. This information shall include, but is not limited to, the following: 1. The name, physical address, notice address (if different), direct telephone number and email address for the permittee and, if different from the permittee, the site operator, equipment, owner, the site manager and agent for service of process; 2. The regulatory authorizations held by the permittee and, to the extent applicable, site operator, equipment owner and site manager as may be necessary for the facility's continued operation; 3. The facility's site identification number and/or name used by the permittee and, to the extent applicable, site operator, equipment owner and site manager; and 4. A toll-free telephone number to the facility's network operations center where a live person with power-down control over the facility is available 24 hours-per-day, seven days-per-week. Within 10 business days after a written request by the Town of Fountain Hills, the permittee shall furnish the Town with an updated form that includes all the most current information described in this condition. M. Within 15 days after any project approval, the permittee shall sign and file with the Town manager a defense and indemnity agreement, to defend, indemnify, hold harmless, the Town of Fountain Hills and Town Council, agents, officers, officials, employees and volunteers (collectively, the "indemnitees") from any and all (i) damages, liabilities, injuries, losses, costs and expenses and from any and all claims, demands, law suits, writs and other actions or proceedings ("claims") brought against the indemnitees to challenge, attack, seek to modify, set aside, void or annul the Town of Fountain Hills' s approval of this use permit, and (ii) other claims of any kind or form, whether for personal injury, death or property damage, that arise from or in connection with the permittee's or its agents', directors', officers', employees', contractors', subcontractors', licensees' or customers' acts or omissions in connection with this use permit or the small wireless facility or other infrastructure deployment. In the event the Town of Fountain Hills becomes aware of any claims, the Town will use best efforts to promptly notify the permittee and the private property owner (if applicable) and shall reasonably cooperate in the defense. The permittee expressly acknowledges and agrees that the Town shall have the right to approve, which approval shall not be unreasonably withheld, the legal counsel providing the Town's defense, and the property owner and/ or permittee (as applicable) shall promptly reimburse the Town for any costs and expenses directly and necessarily Meeting Packet Page 156 of 311 incurred by the Town in the course of the defense. The permittee expressly acknowledges and agrees that the permittee' s indemnification obligations under this condition are a material consideration that motivates the Town to approve this use permit, and that such indemnification obligations will survive the expiration, revocation or other termination of this permit in the form approved by Town Manager. N. Permit revocation. Any permit granted under this section may be revoked in accordance with the provisions and procedures in Town Code Section 16-1-3. The Town Council, Town Manager, Fire Marshal, Development Services Director, or other Town official may initiate revocation proceedings when there is information that the facility may not be in compliance with all applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Before any public hearing to revoke a permit granted under this Section, the body that originally approved the permit must issue a written notice to the permittee that specifies (i) the facility(ies); ii) the violation(s) to be corrected; (iii) the timeframe in which the permittee must correct such violation(s); and (iv) that, in addition to all other rights and remedies the Town of Fountain Hills may pursue, the Town may initiate revocation proceedings for failure to correct such violation(s). The body that originally approved the permit may revoke a permit when it finds substantial evidence in the written record to show that the facility is not in compliance with any applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Any decision to revoke or not revoke a permit shall be final and not subject to any further appeals. Written notice of intention to revoke the permit shall be mailed to the applicant not less than 10 days before the public hearing. O. Truthful and accurate statements. The permittee acknowledges that the Town's approval relies on the written and/or oral statements by permittee and/or persons authorized to act on permittee' s behalf. In any matter before the Town of Fountain Hills in connection with the use permit or the wireless facility approved under the use permit, neither the permittee nor any person authorized to act on permittee' s behalf shall, in any written or oral statement, intentionally provide material factual information that is incorrect or misleading or intentionally omit any material information necessary to prevent any material factual statement from being incorrect or misleading. Section 19-1-8 Safety Standards A. All small wireless facilities shall be designed by qualified, licensed persons to meet minimum standards for public safety, and shall comply with all applicable legal requirements, including the Town Building, Electric, and Fire Codes throughout the permit period. All wireless facilities should be proactively monitored and maintained to ensure compliance with the safety design. Meeting Packet Page 157 of 311 B. Fire Safety Hazard Protocols: If the Fire Chief (or his or her designee) finds good cause to believe that the facility(ies) (including, without limitation, its accessory equipment, antenna and/ or base station) presents a fire risk, electrical hazard or other immediate threat to public health and safety in violation of any applicable law, such officials may order the facility to be shut down and powered off until such time as the fire risk or electrical hazard has been mitigated. Any mitigations required shall be at permittee’s sole cost and expense. C. Other Safety Hazard Protocols: If there is good cause to believe that the facility(ies) presents a danger of debris fall or shows signs of imminent structural hazard such as misaligned base plates, degraded flanges, defective sections, joints, and guy wires, Town officials may order the facility(ies) shut down and powered off until such time as the hazard has been mitigated. Any mitigations required shall be at permittee’s expense. D. All small wireless facilities shall comply with safety standards, including, but not limited to, The National Electric Safety Code and applicable life safety codes, Town of Fountain Hills Building Safety Code, and engineering codes. Section 19-1-9 Operational Requirements A. RF Limit: The Town deems it to be of critical importance to the health, safety, and welfare of the Town, its residents, and the public at large that personal wireless service facilities do not expose members of the general public to levels of RF radiation that exceed the limits set out in FCC regulations. In accord with the same, the Town enacts the following RF Radiation testing requirements and provisions set forth herein below. 1. Prohibition on Illegally Excessive RF Radiation: No facility shall be sited or operated in such a manner that it poses, either by itself or in combination with other such facilities, a potential threat to public health. To that end no small wireless facility or combination of facilities shall produce at any time RF emissions that exceed the limits for Maximum Permissible Exposure for human exposure pursuant to 47 CFR §1.1310(e)(1), Table 1 or any more restrictive standard subsequently adopted or promulgated by the Town, the state of Arizona, or the federal government. 2. RF Emissions Monitoring Requirements a. Post-installation certification. Within 45 days of commencing operation of a facility, the permittee shall provide the Development Services Director a post installation certification prepared in accordance with the small wireless facility Meeting Packet Page 158 of 311 standards confirming that the facility is compliant with FCC regulations concerning radio frequency emissions. b. Post-modification certification. Within 45 days of modifying a permitted facility, the permittee shall perform subsequent radio frequency reporting and testing confirming that the small wireless facility is compliant with FCC regulations concerning radio frequency emissions. c. Annual certification. No more than 12 months following the issuance of the initial Wireless Permit, and no more than 12 months after each annual certification, the permittee shall perform subsequent radiofrequency reporting and testing confirmation that the small wireless facility is compliant with FCC regulations concerning radiofrequency emissions. Failure to supply the required reports or to remain in continued compliance with Maximum Permissible Exposure limits for human exposure pursuant to 47 CFR §1.1310(e)(1), Table 1 shall be grounds for revocation of the permit or other entitlement. d. Random testing. At the permittee’s expense, the Town may retain an engineer or other qualified electromagnetic radiation specialist to conduct random unannounced RF radiation testing of any facility to ensure the facility’s compliance with the limits in 47 C.F.R.§1.1310(e)(1) Table 1. e. If the Town has good cause to believe a facility or facilities is operating in excess of FCC exposure limits, the Town shall provide written notice to the owner and/or operator identifying the noncompliance and the corrective action required. Except where the violation presents an immediate threat to public safety, the owner or operator shall be afforded a reasonable period, not to exceed thirty (30) days, to cure the violation or demonstrate compliance. The Town may hire an independent consultant to test the facility for excess RF emissions levels. Such testing shall be conducted at permittee’s expense. Noncompliance with FCC exposure guidelines shall be grounds for revocation of the permit or other entitlement. 3. Any finding of illegally excessive RF radiation is a violation of this ordinance and the permit conditions and the permit is subject to revocation pursuant to Section 19-1- 7. N. or rescission. B. Maintenance: All small wireless facilities including, but not limited to, monopoles, utility poles, accessory equipment, lighting, fences, walls, shields, cabinets, artificial foliage or concealment elements and the facility site shall be maintained so as to minimize visual, noise, and other impacts on the surrounding community and be Meeting Packet Page 159 of 311 maintained in good condition, including ensuring the facilities are reasonably free of: 1. Dirt or grease; 2. Chipped, faded, peeling, or cracked paint; 3. Rust and corrosion; 4. Cracks, dents, or discoloration; 5. Missing, discolored, or damaged synthetic foliage or other concealment elements; 6. Graffiti, bills, stickers, or advertisements; 7. Litter or debris including but not limited to synthetic foliage that has fallen off a monopine; permittee is responsible for prompt cleanup of debris or synthetic foliage at its expense. 8. Broken or misshapen structural parts; and 9. Damage from any cause. C. Repairs. All necessary repairs and restoration shall be completed by the permittee, owner, or operator within 48 hours: 1. After discovery of the need by the permittee, owner, operator or any designated maintenance agent; or 2. After the permittee, owner, operator, or any designated maintenance agent receives notification from a resident or the Development Services Director, or any Town official. 3. The permittee shall replace its facilities, after obtaining all required permits, if maintenance or repair is not sufficient to return the facility to the condition it was in at the time of installation. 4. Each owner or operator of a facility shall routinely inspect each site to ensure compliance with the standards set forth in this section and the conditions of approval. D. No changes shall be made in the location, dimensions, character or duration of the monopoles, utility poles associated with small wireless facilities, or small wireless facilities as granted by the permit except upon written authorization of the Development Services Department. Meeting Packet Page 160 of 311 Section 19-1-10 Exceptions A. The Town may grant an exception to the provisions in this Article but only to the extent necessary to avoid conflict with applicable federal or state law. When the applicant requests an exception, the Reviewing Authority shall consider the findings in Subsection B. Each exception is specific to the facts and circumstances in connection with each application. An exception granted in one instance shall not be deemed to create a presumption or expectation that an exception will be granted in any other instance. B. Findings for an Exception. The Town Council may grant an exception to any provision or requirement in this Section only if the Council finds that: 1. a denial based on the application' s noncompliance with a specific provision or requirement would violate federal law, state law or both; or 2. a provision in this Section, as applied to the applicant, would violate any rights or privileges conferred on the applicant by federal or state law. C. Exception Requests. An applicant may request an exception only at the time the applicant submits an application. The Reviewing Authority may consider additional information provided by the applicant after submittal to supplement the initial exception request. Any request for an exception after the initial submittal shall be deemed to be a new application. D. Burden of Proof. The applicant shall have the burden to prove to the Council that an exception should be granted pursuant to Subsection B. The standard of evidence shall be the same as required by applicable federal or state law for the issue raised in the applicant' s request for an exception. E. Scope of Exception. If the Council finds that an exception should be granted, the exception shall be narrowly tailored so that the exception deviates from this Section to the least extent necessary for compliance with federal or state law. Section 19-1-11 Appeals Any person adversely affected by a decision of the Town Manager, or Development Services, in the granting or denial of a permit pursuant to this section may appeal that decision to the Board of Adjustment. Such appeal must be taken by filing written notice with the Town manager, or designee, with a copy to the Town clerk, within 30 days after the decision of the Town manager, or Development Services Director if the appellant received actual notice within 5 days of the decision. The deadline is tolled on a day for day basis until the appellant receives actual notice or should have become aware of the Meeting Packet Page 161 of 311 decision using reasonable diligence. Each appeal must be accompanied by a payment in sufficient amount to cover the cost of publishing and mailing notices of hearings. Failure to file such appeal constitutes acceptance of the permit and any conditions thereof or the denial of the application. Where a notice of appeal to the Town manager, or designee, is not timely filed as provided in this section, such right to appeal is waived. Section 19-1-12 Rates and Fees A. The Town Council shall, by ordinance or resolution, set and amend any rate, rate component, charge, or fee authorized by state law for the use of the public right-of-way and Town utility poles in connection with small wireless facilities including: 1. Fees for special use permit applications 2. Fees for collocation applications; 3. Fees for the use of the right-of-way; 4. Rates for the use of the Town’s utility poles; 5. Fees for Encroachment Permit Applications; 6. Fees to recover legal costs resulting from enforcement related to any noncompliance including, but not limited to, administrative expenses, investigation, testing, legal proceedings and filings, and continued monitoring; and 7. Other fees as the Town may determine necessary to carry out the requirements contained herein. B. All rates and fees set or amended pursuant to this article shall be reasonable and shall not exceed the amounts permitted by state law. C. The Town shall publish and make available its schedule of rates and fees. D. These fees relate solely to the matters covered by this article and are separate from all other fees, fines and penalties chargeable by the Town. ARTICLE 19-2 Utility Service Antennas Sections: 19-2-1 Purpose Meeting Packet Page 162 of 311 19-2-2 Definitions 19-2-3 Utility Service Antennas in the Public Right-of-Way Section 19-2-1 Purpose The purpose of this article is to establish general guidelines for the siting of wireless communications towers and antennas placed in the public right-of-way used by utility companies to communicate within the utility system. Section 19-2-2 Definitions “Utility service antenna” means an antenna placed on or near utility boxes, poles, switches, storage tanks, etc., and used by a utility provider to facilitate the operation of the utility system. Section 19-2-3 Utility Service Antennas in the Public Right-of-Way A. General Requirement. For an antenna placed in the town’s right-of-way with the top of the antenna less than six feet above ground level, the support structure and antenna shall be painted a neutral color to blend with the surrounding area. If the top of the antenna is six feet or more above ground level, the antenna and support structure shall utilize the town’s approved saguaro cactus stealth design or a similar stealth design appropriate to the given location as approved by the Public Works Director. B. Review Process. 1. For antennas with a maximum height less than six feet above ground level, applications are reviewed and approved through the town’s encroachment permit process as provided in town code article 16-1, Encroachments. An electrical permit shall also be required for any associated electrical work. 2. For antennas with a maximum height six feet or more above ground level, applications will require an encroachment permit as required by town code article 16-1, Encroachments, and review and approval through the town’s building permit process. Meeting Packet Page 163 of 311 1 Article 19-1 Small Wireless Facilities Section 19-1-1 Purpose A. The intent and purpose of this article are as follows: 1. To establish clear guidelines and standards for the siting, location, compatibility, structural integrity, and design of small wireless facilities that promote the availability of adequate public services while minimizing negative impacts of facilities on surrounding land uses and ensuring compatibility with adjacent land uses. 2. To employ the “General Authority” preserved to the Town under 47 U.S.C. § 332(c)(7)(A) to the greatest extent the United States Congress intended while simultaneously complying with each of the substantive and procedural requirements set forth within the subsection 47 U.S.C. § 332(c)(7)(B). 3. To employ the authority reserved under A.R.S. §§ 9-583.A, and 9-596.A to manage the Town’s public highways, permit and manage access to the Town’s public rights of way, exercise its zoning powers, land use, planning and permitting authority and exercise its police powers. 4. To implement Town regulations related to the provision of wireless telecommunications services, and the siting of their small wireless facilities. 5. To assure compliance with the Federal Communications Commission’s (FCC) legislative rules for Communication Facilities including those for Radio Frequency human exposure limits in 47 C.F.R. Part 1, Subpart I and those addressing State and Local Government Regulation of the Placement, Construction, and Modification of Personal Wireless Service Facilities, in 47 C.F.R. Part 1, Subpart U. 6. To promote the community interest by (1) ensuring the balance between public and private interests is maintained; (2) protecting the Town of Fountain Hill’s visual character from potential adverse impacts and visual blight created or exacerbated by small and micro wireless facilities and related infrastructure; (3) protecting and preserving the Town’s environmental resources; (4) protecting and preserving the Town’s public rights-of-way; and (5) promoting access to high-quality, advanced wireless services for the Town’s residents, businesses, and visitors. 7. Ensure that all telecommunications carriers providing facilities or services within the Town comply with the Fountain Hills Town Code. Meeting Packet Page 164 of 311 2 8. Encourage the collocation of small wireless facilities, thus helping to minimize adverse impacts on the community; 9. Recognize that technology and laws regarding these facilities have changed, so the Town’s regulations need to change accordingly; 10. Promote the health, safety, and general welfare of the people of Fountain Hills Town. 11. Maintain the Town’s status as a designated International Dark Sky Community and an optimum environment for stargazing. 12. Conserve and enhance the unique natural beauty, irreplaceable natural resources, historical, natural, and man-made character and appearance of Fountain Park, McDowell Mountain Preserve, Pleasantville Park, and views of Red Mountain and Four Peaks. 13. Protect Saguaro cacti as a unique natural resource promoting tourism, contributing to the aesthetic well-being of the community, high property values, high quality of life, unique lifestyles, and providing habitat protection for desert wildlife. Saguaro cacti grow slowly and cannot be replaced by a plant of like character. 14. Protect the Sonoran Desert tortoise and its habitats as a unique natural resource and an important component of Town of Fountain Hills natural environment that contributes to the aesthetic, environmental, and personal well-being of the community. The Sonoran Desert tortoise is a state-protected species in Arizona and a petitioned candidate for inclusion as a federally endangered species pursuant to the Endangered Species Act of 1973, 16 U.S.C. §§ 1531–1544. Populations of the Sonoran Desert tortoise has been documented in the Town of Fountain Hills. 15. Protect the quiet small-town suburban, scenic and visual character of the Town. B. This Section is not intended to, nor shall it be interpreted or applied to: 1. Prohibit or effectively prohibit any wireless telecommunications service provider's ability to provide reasonable and necessary wireless communications services; 2. Prohibit or effectively prohibit any entity's ability to provide reasonable and necessary interstate or intrastate telecommunications service; 3. Unreasonably discriminate among providers of functionally equivalent services; 4. Deny any request for authorization to place, construct or modify wireless telecommunications service facilities solely on the basis of environmental effects of radio frequency emissions so long as such wireless facilities comply in every instance and regard with all FCC's regulations concerning such emissions; Meeting Packet Page 165 of 311 3 5. Prohibit any eligible facility that the Town may not deny under federal or state law; or 6. Otherwise authorize the Town to violate any applicable federal or state law. C. Applicability. 1. New small wireless facilities. All new small wireless facilities in the Town of Fountain Hills shall be subject to these regulations. The following exceptions apply: a. Amateur Radio Station Operators/Receive Only Antennas. This chapter shall not govern any tower, or the installation of any antenna, that is under the maximum building height of the zoning district in which such structure is located and which is owned and operated by a federally licensed amateur radio station operator or is used exclusively for receive only operations. b. Pre-existing Towers or Antennas. Legally established pre-existing towers and pre-existing antennas shall not be required to meet the requirements of this chapter, other than the requirements of Sections 19-1-3 and 19-1-4. c. AM Array. For purposes of implementing this chapter, an AM array, consisting of one (1) or more tower units and supporting ground system which functions as one (1) AM broadcasting antenna, shall be considered one (1) tower. Measurements for setbacks and separation distances shall be measured from the outer perimeter of the towers included in the AM array. Additional tower units may be added within the perimeter of the AM array by right. d. Mobile or Temporary Towers. Mobile wireless facilities, when placed on site for seven (7) consecutive days or less, provided any necessary building permit or encroachment permit is obtained. e. Utility Service Antennas in the Right-of-Way. Utility service antennas as defined in this chapter placed in the public right-of-way are subject to the requirements of Article 16-3, Utility Service Antenna, of the Town Code. (24- 08, Amended, 09/04/2024, Deleted and replaced) f. Over-the-Air-Reception Devices ("OTARD") antennas as defined by 47 C.F.R. § 1.4000(a). 2. Existing Towers and Antennas. Any existing towers which are modified, upgraded, or changed in any manner shall be subject to the provisions of this ordinance as applicable. Meeting Packet Page 166 of 311 4 All existing towers and antennas shall be subject to the maintenance and operations requirements in Sec. 17.06. Section 19-1-2 Definitions As used in this article, the following terms shall have the meanings set forth below. A. “Accessory equipment or antenna equipment” means equipment other than antennas used in connection with a small wireless facility or other infrastructure deployment. This includes but is not limited to, equipment, switches, wiring, cabling, power sources, shelters or cabinets associated with an antenna, located at the same fixed location as the antenna, and, when collocated on a structure, is mounted or installed at the same time as such antenna. For purposes of an eligible facilities request as defined at 47 C.F.R. §1.6100(b)(3) only, the term includes "transmission equipment" as defined in 47 CFR. § 1.6100(b)(8), as may be amended or superseded. B. “Accessory facility or accessory structure” means a facility or structure serving or being used in conjunction with a personal wireless services facility or complex and located on the same property or lot as the personal wireless services facility or complex, or an immediately adjacent lot including, but not limited to, utility or transmission equipment, storage sheds or cabinets. C. “ACHP” means the Federal Advisory Council on Historic Preservation. D. “Adjacent properties or properties adjacent” shall mean (i) those lots or parcels of land that abut another lot or parcel of land or public right-of-way that is contiguous to a wireless facility site or proposed site and (ii) the lots or parcels of land or public right-of-way that would be contiguous to lots or parcels or public rights-of-way but for an intervening local or collector roadway. E. “ADEQ” means the Arizona Department of Environmental Quality. F. “Aesthetic or aesthetics” refers to subjective or objective determinations related to whether and if so, how well a facility will fit within the character of the area where the facility is proposed. This requires a broad range of factors including but not limited to visual effects and impact on property values. The Town will consider aesthetics for all applications and, where not prohibited by federal or state law, reserves the ability to impose careful placement conditions or restrictions. G. “Alternative wireless facility structure” (also called “Concealment element”) can mean any feature or effort to minimize or eliminate the extent to which the wireless facility can be noticed. Concealment elements include, but are not limited to stealth efforts like manmade trees, clock towers, bell steeples, light poles and similar Meeting Packet Page 167 of 311 5 alternative-design mounting structures not necessary to the operation of the facility that is intended to camouflage or obscure the presence of antennas, or towers, or base stations. Setback requirements can also constitute concealment elements. Alternative wireless facility structure or concealment is distinguished from other more aesthetic requirements intended to minimize the visual impact of a facility or an aesthetic locational directive to prevent unwanted visual impact. H. "Antenna" means communications equipment that transmits or receives electromagnetic radio frequency signals and that is used in providing wireless services. I. "Applicable codes" means uniform building, fire, electrical, plumbing or mechanical codes that are adopted by a recognized national code organization or local amendments to those codes that are enacted to address threats of destruction of property or injury to persons and to an extent that is not inconsistent with this article. J. "Applicant" means any individual, corporation, limited liability company, general partnership, limited partnership, estate, trust, joint-stock company, association of two or more persons having a joint common interest, or any other entity submitting an application for a wireless communication facility permit, site plan approval, building permit, and/or any other related approval, for the installation, operation and/or maintaining of one or more wireless communication facilities. K. "Application" shall mean all necessary and required documentation, information, and evidence that an applicant must submit to receive a wireless communications facility permit, building permit, or other Town approval for personal wireless service facilities from the Town. L. "ATSSA" means the American Traffic Safety Services Association. M. "Authority" shall mean the Town of Fountain Hills, Arizona. N. “Base station” means for purposes of eligible facilities requests, as defined in 47 C.F.R. §1.6100(b)(1), a structure or equipment at a fixed location that enables FCC- licensed or authorized wireless communications between user equipment and a communications network. The term does not encompass a tower or any equipment associated with a tower. O. “Backhaul facilities” means a physical transmission path, all or part of which is within the public rights-of-way controlled by the Town or any government entity, used for the transport of communications data by wire or fiber from a wireless facility to a network. A backhaul facility may also consist of an antenna, including a microwave antenna, installed in the public rights-of-way pursuant to a permit, used Meeting Packet Page 168 of 311 6 for the transport of communications data wirelessly from a wireless facility to a network. P. "Cable operator" has the same meaning prescribed in A.R.S. § 9-505 and includes a video service provider. Cable operator does not include a special taxing district. Q. “Child care facility” or “daycare” has the same meaning prescribed in A.R.S. § 36- 881.3., any facility in which child care is regularly provided for compensation for five or more children not related to the proprietor. R. “Clear zone” shall mean the roadside border area, starting at the edge of the traveled way, available for safe use by errant vehicles. This area may consist of a shoulder, recoverable slope, non-recoverable slope, clear runout area, or combination thereof. The width of the clear zone is dependent upon the traffic volumes and speeds, and on the roadside geometry. S. "Collocate" or "collocation" can have different meanings depending on context. 1. When and where A.R.S. §§ 9-951 — 9-600 apply, the definition in A.R.S. §§ 9- 951.8 shall also apply. That definition currently states: "Collocate" or "collocation" means to install, mount, maintain, modify, operate or replace wireless facilities on, within or adjacent to a wireless support structure or utility pole. 2. Where and when the FCC’s general rules for placement, construction and modification of personal wireless facilities apply, the definition in 47 C.F.R. § 1.6002(g) shall apply. That definition currently states: Collocation, consistent with § 1.1320(d) and the Nationwide Programmatic Agreement (NPA) for the Collocation of Wireless Antennas, appendix B of this part, section I.B, means— a) Mounting or installing an antenna facility on a pre-existing structure; and/or b) Modifying a structure for the purpose of mounting or installing an antenna facility on that structure. c) The definition of “collocation” in § 1.6100(b)(2) applies to the term as used in that section. 3. Where and when the FCC’s rules for wireless facility modifications apply, the definition in 47 C.F.R. § 1.6100(b)(2) shall also apply. That definition currently states: Meeting Packet Page 169 of 311 7 (2) Collocation. The mounting or installation of transmission equipment on an eligible support structure for the purpose of transmitting and/or receiving radio frequency signals for communications purposes. T. For state law purposes, "Communications service" means cable service as defined in 47 United States Code section 522(6), information service as defined in 47 United States Code section 153(24), telecommunications service as defined in 47 United States Code section 153(53) or wireless service. U. For state law purposes "Communications service provider" means a cable operator, a provider of information service as defined in 47 United States Code section 153(24), a telecommunications carrier as defined in 47 United States Code section 153(51) or a wireless services provider. V. “Consolidated permit application” shall mean a single permit application that would otherwise require individual permit applications for the collocation of up to 25 small wireless facilities to existing utility poles within the public rights-of-way. W. “DBM” (dBm) stands for decibel milliwatts, which is a concrete measurement of the wireless signal strength of wireless networks. It expresses power relative to 1 milliwatt (mW) on a logarithmic scale. Emissions are measured using positive whole or fractional numbers. Received signal strengths are typically recorded in negative numbers because they are usually weaker than 1 milliwatt, and can range from approximately -30 dBm to -110 dBm. The closer the number is to 0, the stronger the cell signal. FCC, HHS and OSHA regulate safe exposure thresholds but transmitter power (in dBm) is crucial to determining exposure, as it is the starting point for calculating current exposure limits. X. “Development Services Director” or “Director” means the person appointed by the Town Manager to be the Development Services Director. If there is no such person designated by the Town Manager, the Town Manager is the Development Services Director. Y. “Distributed Antenna System” or “DAS” means a network of spatially separated antenna nodes connected to a common source via a transport medium that provides personal wireless service within a geographical area. Z. “Eleventh hour submissions” means an applicant’s submission of new and/or additional materials in support of an application and/or to cure deficiencies in incomplete and denied applications within 48 hours of the expiration of an applicable shot clock, or at an otherwise unreasonably short period of time before the expiration of the shot clock, making it impracticable for the Town to adequately Meeting Packet Page 170 of 311 8 review and consider such submissions due to their complexity, volume, or other factors, before the expiration of the shot clock. AA. “Eligible facilities request” means a request for modification (co‐location, removal or replacement of transmission equipment) as defined in 47 CFR § 1.6100(b)(3) of an existing base station wherein automatic approval of modifications that does not substantially change the physical dimensions of such tower or base station are mandated by 47 U.S.C. § 1455(a)(2), involving: 1. Collocation of new transmission equipment; 2. Removal of transmission equipment; or 3. Replacement of transmission equipment BB. “Excavate or excavation” shall mean consistent with the definition contained in A.R.S. § 40-360.21.8, as it may be amended, any manmade cut, cavity, trench, or depression in the earth’s surface, formed by removal of earth, intended to change the grade or level of land, or intended to penetrate or disturb the surface of the earth, including land beneath the surface water, as defined in A.R.S. § 45-101.9., and the term includes pipe bursting and directional drilling or boring from one point to another point beneath the surface of the earth, or other trenchless technologies. CC. “Existing structure” means light poles, power poles, chimneys, billboards, and other similar structures, which are placed, within the Town at the time of adoption of this chapter, except existing buildings. DD. “FCC” means the Federal Communications Commission. EE. “FCC shot clock” means the presumptively reasonable time frame within which the Town must act on a wireless application, as defined by the FCC. The shot clock begins when the applicant takes the first procedural step that the Town requires. 1. Aggregate of 60 days: a. Collocation of small wireless facilities at existing small wireless facility sites. b. Eligible Facilities Requests. 2. Aggregate of 90 days: a. New small wireless facilities. Meeting Packet Page 171 of 311 9 b. Collocation applications for additions to existing communications facilities not defined as an eligible facilities request. FF. "Fee" means a onetime charge. GG. “General population/uncontrolled exposure limits” means the applicable radiofrequency radiation exposure limits set forth within 47 CFR §1.1310(e)(1), Table 1 Section (ii), made applicable pursuant to 47 CFR §1.1310(e)(3), as further described and supplemented by the FCC Office of Engineering and Technology Laboratory Division’s advisory Knowledge Database (KBD), available at https://apps.fcc.gov/oetcf/kdb/index.cfm. HH. “Historic property” shall mean any prehistoric or historic district, site, building, object or other real or personal property, of historical, architectural or archaeological value. These properties or resources may include, but are not limited to, monuments, memorials, Indian habitations, ceremonial sites, abandoned settlements, engineering works, treasure troves, artifacts, or other objects with intrinsic historical or archaeological value, or any part thereof, relating to the history, government, or culture of the Town. II. "Law" means any federal, state or local law, statute, common law, code, rule, regulation, order or ordinance. JJ. “Maintenance or routine maintenance” means plumbing, electrical or mechanical work that may require a building permit but that does not constitute a modification to the personal wireless service facility. It is work necessary to assure that a wireless facility and/or telecommunications structure exists and operates reliably and in a safe manner, presents no threat to persons or property, and remains compliant with the provisions of this chapter and FCC requirements. KK. "Monopole" means a wireless support structure that is not more than forty inches in diameter at the ground level and that has all of the wireless facilities mounted on the pole or contained inside of the pole. LL. "MUTCD" means the Manual on Uniform Traffic Control Devices, most recent edition, as published by the Federal Highway Administration. MM. "Permit" means written permission required by an authority to install, mount, maintain, modify, operate or replace a utility pole or monopole, to collocate a small wireless facility on a utility pole or wireless support structure or to collocate wireless facilities on a monopole. NN. “Permittee” means any person to whom a permit to place or maintain a wireless facility has been granted by the Town. Meeting Packet Page 172 of 311 10 OO. "Person" means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including an authority. PP. “Personal wireless service” is as defined in 47 U.S.C. § 332(c)(7)(C)(i). QQ. “Personal wireless service facilities are as defined in 47 U.S.C. § 332(c)(7)(C)(ii). RR. "Private easement" means an easement or other real property right that is only for the benefit of the grantor and grantee and the grantor's or grantee's successors and assigns. SS. "Public street" means the full width of the right-of-way of any road, street, highway, lane or pedestrian walkway used by or for the general public, whether or not the road, street, highway, alley, lane or pedestrian right-of-way has been improved or accepted for maintenance by the Town. TT. “RF” means radiofrequency. UU. “RF radiation” means radiofrequency radiation, that being electromagnetic radiation which is a combination of electric and magnetic fields that move through space as waves, and which can include both non-ionizing radiation and ionizing radiation. VV. "Rate" means a recurring charge. WW. “Residential dwelling” means any dwelling unit that includes toilet or outhouse facilities, and facilities for food preparation and sleeping. XX. “Residential property” means any property that contains a residential dwelling. YY. “Residential property boundaries or school property boundaries” shall mean residential property boundaries and property boundaries containing a public, charter, or private school. ZZ. "Right-of-way" means the area on, below or above a public roadway, highway, street, sidewalk, alley or utility easement. Right-of-way does not include a federal interstate highway, a state highway or state route under the jurisdiction of the department of transportation, a private easement, property that is owned by a special taxing district, or a utility easement that does not authorize the deployment sought by the wireless provider. AAA. “School” means a public, charter, or private educational institution providing instruction for elementary and secondary grades as defined in A.R.S. § 15-101 and includes the real property and facilities used for such educational purpose. BBB. “School property” means any parcel containing a public, charter, or private educational institution providing instruction for elementary and secondary grades as defined in A.R.S. § 15-101 and includes associated playgrounds, athletic fields, administrative buildings, parking areas, and other school-related facilities. Meeting Packet Page 173 of 311 11 CCC. “Setback” means for the purposes of a small wireless facility permit application, a setback shall mean the distance between (a) any portion of a personal wireless facility and/or complex, including but not limited to any and all accessory facilities and/or structures, and (b) the exterior line of any parcel of real property or part thereof which is owned by, or leased by, an applicant seeking a small wireless facility permit to construct or install a personal wireless facility upon such real property or portion thereof. In the event that an applicant leases only a portion of real property owned by a landlord, the setback shall be measured from the facility to the line of that portion of the real property which is actually leased by the applicant, as opposed to the exterior lot line of the non-leased portion of the property owned by the landlord. DDD. A setback will also mean the distance between the proposed facility and residential and school property boundaries. This distance shall be measured as the most direct, level, shortest straight line, without regard to intervening structures or objects, between the closest edge or corner of the residential or school property line. EEE. “Shot clock, FCC” means the applicable period which is presumed to be a reasonable period within which the Town is generally required to issue a final decision upon an application seeking wireless facility permit approval for the installation, substantial modification, or collocation of a personal wireless services facility or structure, to comply with Section 47 U.S.C. §332(c)(7)(B)(ii) and A.R.S. §§ 9-593.F.3. and 9- 594.C.3. FFF. “Shot clock, Arizona” means the statutory timeframe within which the Town must act on a wireless application in the right-of-way pursuant to A.R.S. § 9-593.F.2. and § 9- 594.C.3. before it is otherwise deemed approved pursuant to these statutory provisions. The Arizona shot clock begins on the date when the Town determines the application is properly completed. GGG. "Small wireless facility" can have different meanings depending on context. 1. When and where A.R.S §§ 9-591 – 9-599 applies, the definition in A.R.S §§ 9- 591.19 shall also apply. That definition means a wireless facility that meets both of the following qualifications: a. All antennas are located inside an enclosure of not more than six cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of the antenna's exposed elements could fit within an imaginary enclosure of not more than six cubic feet in volume. b. All other wireless equipment associated with the facility is cumulatively not more than twenty-eight cubic feet in volume, or fifty cubic feet in volume if the equipment was ground mounted before August 9, 2017. The following types of Meeting Packet Page 174 of 311 12 associated ancillary equipment are not included in the calculation of equipment volume pursuant to this subdivision: i. An electric meter. ii. Concealment elements. iii. A telecommunications demarcation box. iv. Grounding equipment. v. A power transfer switch. vi. A cutoff switch. vii. Vertical cable runs for the connection of power and other services. 2. Where and when the FCC’s general rules for placement, construction and modification of personal wireless service facilities apply, the definition in 47 CFR §1.6002(l) shall apply. That definition states as follows: (a) Small wireless facilities are facilities that meet each of the following conditions: (i) The facilities— i. Are mounted on structures 50 feet or less in height including their antennas as defined in § 1.1320(d); or ii. Are mounted on structures no more than 10 percent taller than other adjacent structures; or iii. Do not extend existing structures on which they are located to a height of more than 50 feet or by more than 10 percent, whichever is greater; (ii) Each antenna associated with the deployment, excluding associated antenna equipment (as defined in the definition of “antenna” in § 1.1320(d)), is no more than three cubic feet in volume; (iii) All other wireless equipment associated with the structure, including the wireless equipment associated with the antenna and any pre-existing associated equipment on the structure, is no more than 28 cubic feet in volume; (iv) The facilities do not require antenna structure registration under part 17 of this chapter; (v) The facilities are not located on Tribal lands, as defined under 36 CFR 800.16(x); and Meeting Packet Page 175 of 311 13 (vi) The facilities do not result in human exposure to radiofrequency radiation in excess of the applicable safety standards specified in § 1.1307(b). HHH. "Special taxing district" means a special district formed pursuant to title ARS 48, chapter 11, 12, 17, 18, 19, 20 or 22. III. “Support structure” means pole, tower, base station, or other building, whether or not it has an existing antenna facility, that is used or to be used for the provision of personal wireless service. JJJ. “Thermal runway” means self-heating of an electrochemical system in an uncontrollable fashion. KKK. “Tolling” or “tolled” means the pausing of the running of the time period permitted under the applicable shot clock for the respective type of wireless facility as per 47 CFR § 1.6003(a) and per A.R.S. § 9-594.C.3. by mutual agreement of the Town and applicant waiving the applicable timeframes in A.R.S. § 9-594.C.3. LLL. “Town council” or “council” means the town councilmembers of the town Fountain Hills. MMM. “Undertaking” means any application seeking Council approval for the installation of a personal wireless services facility licensed under the authority of the FCC shall constitute an undertaking within the meaning of NEPA, in accord with 42 CFR §137.289 and 36 CFR §800.16. NNN. “Utility” means Arizona (under ARS § 40-360.51 (5)): A public utility includes corporations or persons engaged in furnishing water, gas, electricity, telephone service, or sewage disposal to the public for compensation. OOO. "Utility pole" means a pole or similar structure that is used in whole or in part for communications services, electric distribution, lighting or traffic signals. Utility pole does not include a monopole. PPP. "Utility pole, Authority " means a utility pole that is owned or operated by an authority and that is in a right-of-way. Authority utility pole does not include a utility pole for electric distribution. QQQ. “Utility service antennas” means antenna placed on or near utility boxes, poles, switches, storage tanks, etc., and used by a utility provider to facilitate the operation of the utility system. RRR. “Wireless carriers or carrier” means companies that provide Personal Wireless Services to end-use consumers. SSS. For state law purposes "Wireless facility": Meeting Packet Page 176 of 311 14 1. Means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including both of the following: 2. Equipment associated with wireless communications. 3. Radio transceivers, antennas, coaxial or fiber-optic cables, regular and backup power supplies and comparable equipment, regardless of technological configuration. 4. Includes small wireless facilities. 5. Does not include the structure or improvements on, under or within which the equipment is collocated, wireline backhaul facilities, coaxial or fiber-optic cable that is between wireless support structures or utility poles or coaxial or fiber-optic cable that is otherwise not immediately adjacent to, or directly associated with, an antenna. 6. Does not include Wi-Fi radio equipment described in A.R.S § 9-506, subsection I or microcell equipment described in A.R.S. § 9-584.E. TTT. "Wireless infrastructure provider" means any person that is authorized to provide telecommunications service in this state and that builds or installs wireless communications transmission equipment, wireless facilities, utility poles or monopoles but that is not a wireless services provider. Wireless infrastructure provider does not include a special taxing district. UUU. For state law purposes "Wireless provider" means a cable operator, wireless infrastructure provider or wireless services provider. VVV. For state law purposes "Wireless services" means any services that are provided to the public and that use licensed or unlicensed spectrum, whether at a fixed location or mobile, using wireless facilities. WWW. For state law purposes "Wireless services provider" means a person that provides wireless services. Wireless services provider does not include a special taxing district. XXX. For state law purposes “Wireless support structure”: 1. Means: a. A freestanding structure, such as a monopole. b. A tower, either guyed or self-supporting. c. A sign or billboard Meeting Packet Page 177 of 311 15 d. Any other existing or proposed structure designed to support or capable of supporting small wireless facilities. 2. Does not include a utility pole. Section 19-1-3 General Requirements A. Lot size. For purposes of determining whether the installation of a facility or antenna complies with zoning district development regulations, including but not limited to setback requirements, lot coverage requirements, and other such requirements, the dimensions of the entire of lot that portion of real property which is actually leased by the applicant, as opposed to the exterior lot line of the non-leased portion of the property, shall control. B. Locational Standards. Small Wireless Facilities shall be sited to inflict the minimum adverse impacts upon individual residential, child care or daycare facility, or school properties either public, charter, or private that provide instruction to elementary and secondary grade-age children, and commercial properties that abut residential or school properties, and specifically, to minimize, to the greatest extent reasonably feasible, adverse aesthetic impacts upon residential homes or reductions in the property values of same. Small wireless facilities attached to pre-existing wooden and non-wooden poles shall conform to the following criteria. Proposed antenna and related equipment shall meet design standards which the Town may maintain and update as needed. 1. Facilities shall be located to minimize their visibility and the number of distinct facilities present as follows: a. No new facility(ies) shall be placed on an exposed ridgeline or to silhouette against the sky. b. No new facility(ies) shall be installed in a location that is not developed with wireless facilities or other resort, commercial, or industrial uses. c. No new facility(ies) shall be placed in a location readily visible from a public trail, public park, mountain view, or other developed outdoor recreation area. 2. Wireless facilities shall be set back from adjacent property lines as follows: a. The setback requirement of the zoning district containing the use shall apply. Meeting Packet Page 178 of 311 16 b. If the project parcel is adjacent to a zoning district with a more restrictive setback, the more restrictive setback shall apply to the proposed small wireless facility. c. The setback shall be measured from that part of the facility(ies) that is closest to the neighboring property (i.e., the setback for a faux tree would be measured from the end of the branch closest to the neighboring property). In no instance may a facility be located such that its fall or debris zone extends to an abutting property. d. Wireless communication facilities shall not be located anywhere that results in less than a 500-foot setback from the facility(ies) to a residentially zoned parcel, or a parcel that has a child care or daycare facility or school, regardless of the zoning of the project parcel or the contagious parcels. e. For guyed facilities and/or support structures, the required setback shall be measured from the outermost guy wire anchor point, and shall additionally account for the manufacturer's or structural engineer's certified guy-wire failure/whip radius. In no case shall a guy wire anchor, guy wire, or its calculated failure radius be located within 500 feet of an occupied structure, public right-of-way, or property line, whichever is more restrictive. 3. Collocation of new antennas on existing facility(ies) is strongly encouraged. Where appropriate to minimize visual impacts, new small wireless facilities will not be approved where collocation on existing facilities is technically feasible, will provide the desired service coverage, and would not result in alterations that create a greater visual impact. 4. Restricted site locations for small wireless facilities not collocated in the public right-of-way. All of the following locations will be deemed restricted site locations that require an exception pursuant to Section 19-1-10 of this Article: a. any location within a residential zone; b. any location within 500 feet from a residential dwelling unit; c. any location within 500 feet from a daycare facility or school; and d. any location within a public trail, park, or outdoor recreation area. 5. Location preferences. To better assist applicants and decision makers understand and respond to the community's aesthetic preferences and values, this subsection sets out listed preferences for locations to be used in connection with small wireless facilities in an ordered hierarchy. Applications that involve lesser-preferred Meeting Packet Page 179 of 311 17 locations may be approved so long as the applicant demonstrates by clear and convincing evidence in the written record that: a. any more preferred locations or structures within 500 feet from the proposed site would be technically infeasible; and b. if the proposed site or the most-preferred location within 500 feet from the proposed site is within a restricted site location, the applicant qualifies for an exception pursuant to Section 19-1-10. of this section. The Town of Fountain Hill prefers small wireless facilities to be installed in locations, ordered from most preferred to least preferred, as follows: i. Collocated on an already existing facility; ii. Locations within industrial districts; iii. Locations within commercial zones; iv. Locations within mixed use districts; v. Any location not within 500 feet from any residential zone; vi. Locations within residential zones 6. New poles and new ground mounted equipment for small wireless facilities in the rights-of-way must maintain a minimum 25-foot distance from the primary doorway of businesses or residences measured from the outer door frame and a minimum 10-foot distance from the primary entrance of businesses or residences measured at the edge of the local public right-of-way. For a through lot, the separation requirement shall apply to each street frontage, regardless of the location of the primary entrance or the street from which vehicular access is provided. C. In the event that a proposed facility would be within 500 feet from two or more restricted site locations (as defined in Paragraph 4.), and the proposed facility qualifies for an exception pursuant to Section 19-1-10. of this code, the technically feasible location furthest from all such restricted site locations will be deemed to be the most preferred alternative. For discretionary permits the Town of Fountain Hills reserves the right to deny an application based on aesthetic or other locational considerations such as unacceptable impact on the characteristics of the impacted neighborhood or any other “safe harbor” allowed by 47 U.S.C. §§253(b)-(c) and/or 332(c)(7)(B)(i)(II) even if the applicant has proved that a denial would prohibit or effectively prohibit the provision of personal wireless service. D. Accessory equipment for wireless facilities and wireless collocation facilities. Meeting Packet Page 180 of 311 18 1. For facilities on private property, locations for accessory equipment in order of preference from most preferred to least preferred, accessory equipment for wireless communication facilities and wireless communications collocation facilities shall be located underground, within a building or structure, on a screened roof top area or structure, or in a rear yard if not readily visible from surrounding properties and the roadway, unless the reviewing authority finds that another location is preferable under the circumstances of the application. 2. For facilities in the public right-of-way, accessory equipment shall be located underground. 3. Battery Safety. Any battery energy storage or backup power system installed in connection with a PSWF shall utilize lithium ion phosphate (LiFePO4 or LPE) batteries, which are less prone to thermal runaway and fire hazard. All battery systems shall comply with applicable fire, electrical, building, and product-safety codes and standards. E. Structures and facilities deployed by wireless providers pursuant to this section shall be constructed, maintained and located as to not obstruct, endanger or hinder the usual travel or public safety on the right-of-way, damage or interfere with any other utility facilities in the right-of-way or interfere with a utility's use of the utility's facilities in the right-of-way. F. Minimum Height of Antennas. All antennas shall be located such that: a. Any person walking adjacent to the transmitting surface of the antenna will be walking on a grade that is a minimum of eight and one-half (8.5) feet below the transmitting surface; and, b. No person at ground level will be exposed to an exposure level that is higher than allowed by the FCC’s general population exposure rules. Section 19-1-4 Design Standards A. Wireless facilities shall be designed in compliance with all applicable national and Arizona safety standards and to minimize visual, noise, and other impacts on the surrounding community and landscapes in accordance with the design standards in this section. 1. General design standards Meeting Packet Page 181 of 311 19 a. All facilities shall be engineered and certified by an Arizona-licensed structural engineer to withstand local seismic, wind, and loading conditions applicable to the site, and shall comply with wind and seismic load standards in accordance with International Building Codes as adopted by the Town of Fountain Hills and ANSI/TIA-222-H or its most current revision, National Electric Safety Code (NESC) standards, National Electrical Code (NEC) standards. b. Facilities shall be designed to minimize potential adverse impacts that may be inflicted or be likely to inflict upon nearby properties. c. The applicant shall employ screening and concealment design techniques in the design and placement of wireless facility(ies) and accessory equipment in order to ensure that the facility(ies) is as visually inconspicuous as possible, to prevent the facility(ies) from dominating the surrounding area and to hide the facility from predominant views from surrounding properties and viewsheds, all in a manner that achieves compatibility with the community and background landscapes and structures. Facilities and accessory equipment shall be finished in non-glare colors and non-reflective surfaces and colors that minimize their visibility to the greatest extent possible. d. The visible exterior surface of wireless support facilities, i.e. vaults, equipment rooms and equipment enclosures, shall be designed to be visually compatible with structures typically found in the vicinity of the project site. e. No facility shall be lighted except where required FCC lighting is necessary and must comply with the Town’s Outdoor Lighting Control Ordinance. No exterior lighting shall spill from the site in an unnecessary manner. If required, lighting for facilities shall be limited as follows: i. All approved lighting shall be shielded or directed on site to minimize off- site light spill. ii. In all zones, lighting shall be limited to Security lighting that is manually operated or motion-detector controlled. f. Signage shall be limited to required address and facility identification signs, emergency and safety hazard signage. g. All collocated and multiple-user facilities shall be designed to promote facility and site sharing where feasible, including parking areas, access roads, utilities and equipment. 2. The collocation, installation, modification, maintenance, and replacement of monopoles, utility poles associated with small wireless facilities in the public right- Meeting Packet Page 182 of 311 20 of-way shall be subject to and comply with the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. 3. Small wireless facilities located on private property shall comply with the following design standards: a. Facilities designed as an integral part of the structure are strongly encouraged within all commercial and industrial districts. b. Antennas: Wall-mounted antennas and antenna equipment, including but not limited to radios, cables, associated shrouding, disconnect boxes, meters, microwaves, and conduit, shall be mounted as close to the wall as technically feasible and shall not extend more than four feet from the face of the wall nor consume more than fifty (50 sq. ft.) square feet per building face, excluding mountings. Pole-mounted antennas, and antenna equipment, including but not limited to radios, cables, associated shrouding, disconnect boxes, meters, microwaves, and conduit, shall be mounted as close to the pole as technically feasible. c. Fencing and screening of wireless facilities. i. Base stations shall be screened from adjacent public rights of way, public trails, public recreation areas, places of public gathering, open spaces, and adjacent properties by landscaping with native species or other means, in alignment with Section 19.05 of the Fountain Hills Town Zoning Ordinance. ii. All areas disturbed during project construction shall be replanted with vegetation as required by Section 6.05 of the Town’s Subdivision Ordinance and approved during plan review. iii. Existing trees and other screening vegetation in the vicinity of the facility and along the access or utility easements, shall be preserved to the maximum extent possible and protected from damage during construction. iv. No razor wire or barbed wire shall be permitted on any chain link fencing. 4. Data-Only and Information Service Facilities. To the maximum extent permitted by federal and state law, any wireless facility used exclusively for the provision of an information service, data collection, telemetry, machine-to-machine communication, sensing, monitoring, or another service that does not constitute a personal wireless service under 47 U.S.C. § 332(c)(7)(C) or a telecommunications service protected by 47 U.S.C. § 253 shall be installed underground or flush with grad, including its antenna, antenna equipment and accessory equipment, where Meeting Packet Page 183 of 311 21 technically feasible. An applicant seeking above-ground installation shall demonstrate through clear and convincing technical evidence that underground or flush-to-grade installation would prevent the facility from performing its intended function and that the proposed above-ground installation is the least visually intrusive technically feasible alternative. Section 19-1-5 Application Submission Requirements A. Consolidated applications. The applicant may submit up to 25 individual applications for collocations of small wireless facilities permits in a consolidated application; provided, however, that the small wireless facilities in a consolidated application must be proposed with substantially the same equipment in the same configuration on the same support structure type. Each application in a consolidated application must meet all the requirements for a complete application, which includes without limitation the application fee for each application in the consolidated application. If any application in a consolidated application is incomplete, the Town, in the Town's discretion, shall determine whether the entire consolidated application shall be deemed incomplete. If any application is withdrawn or deemed withdrawn from a consolidated application, the Town shall determine whether the entire consolidated application shall be deemed withdrawn. If any application in a consolidated application fails to meet the required findings for approval, the Town shall determine whether the entire consolidated application is denied. B. General application requirements. All permit applications for small wireless facilities must include the following information and materials: 1. Application form duly completed and executed in a manner specified by the Town. 2. A statement by the applicant stating whether applicant intends to claim Effective Prohibition in the event of a permit denial. If applicant intends to claim Effective Prohibition, applicant must attach a written Notice Of Effective Prohibition explaining how a significant gap in coverage exists and why the proposed location is the least intrusive alternative to remedy said gap. 3. Proof of authorization of structure occupancy. The applicant must submit a written copy of proof that the applicant is authorized to install its facility(ies) on the support structure such as a utility pole, streetlight, or other structure, as applicable. 4. Drawn-to-scale depictions of the wireless facilities and equipment. If the proposed facility is a small wireless facility, the drawn-to-scale depiction shall include complete calculations for all of the antennas and equipment of which the facility will be comprised, Meeting Packet Page 184 of 311 22 depicting that, when completed, the installation and equipment will meet the physical size limitations which enable the facility to qualify as a small wireless facility. 5. Construction drawings that depict all the existing and proposed improvements, equipment and conditions related to the proposed project, which includes without limitation any and all poles, posts, pedestals, traffic signals, towers, streets, sidewalks, pedestrian ramps, driveways, curbs, gutters, drains, handholes, manholes, fire hydrants, equipment cabinets, antennas, cables, trees and other landscape features. The construction drawings must: a. contain cut sheets that contain the technical specifications for all existing and proposed antennas and accessory equipment, which includes without limitation the manufacturer, model number and physical dimensions; b. identify all potential support structures within 50 feet from the proposed project site and call out such structures' overall height above ground level; c. depict the applicant' s preliminary plan for electric and data backhaul utilities, which shall include the anticipated locations for all conduits, cables, wires, handholes, junctions, transformers, meters, disconnect switches, and points of connection; and d. demonstrate that proposed project will be in full compliance with all applicable health and safety laws, regulations or other rules, which includes without limitation all applicable codes and public utility regulations and orders. 6. Site survey. A survey prepared, signed and stamped by a licensed or registered engineer. The survey must identify and depict all existing boundaries, encroachments and other structures within 75 feet from the proposed project site and any new improvements, which includes, as applicable, without limitation all: a. traffic lanes; b. all private properties and property lines; c. above and below-grade utilities and related structures and encroachments; d. fire hydrants, roadside call boxes and other public safety infrastructure; e. streetlights, decorative poles, traffic signals and permanent signage; f. sidewalks, driveways, parkways, curbs, gutters and storm drains; g. benches, trash cans, mailboxes, kiosks and other street furniture; and h. existing trees, planters and other landscaping features. Meeting Packet Page 185 of 311 23 7. Photo simulations. Site photographs and photo simulations that show the existing location and proposed small wireless facility in context from at least three vantage points within the public streets or other publicly accessible spaces, together with a vicinity map that shows the proposed site location and the photo location for each vantage point. At least one simulation must depict the small wireless facility from a vantage point approximately 50 feet from the proposed support structure or location. The photo simulations and vicinity map shall be incorporated into the construction plans submitted with the application. The photo simulations must show all required elements of the facility that will be visible and shall be based on actual site photographs. 8. Fire safety. A Fire Safety Plan that includes a general description of the personal wireless services facility for purposes of ensuring the Fire Department is fully informed and prepared in case of a fire. The Fire Safety Plan shall include: a. Location of all Fire Safety Plan documents. b. Location of the facility’s alarm panel. c. List of emergency contacts. d. Specific responsibilities assigned to designated personnel. e. Location of signal-processing equipment. f. Location and listing of types of power equipment, including rectifiers, inverters, distribution cabinets, bus bars, cables, and communications raceways. g. Listing and location of batteries, including description of quantities and types of batteries, specifying whether batteries are lithium-ion, nickel cadmium, sodium-nickel, valve-regulated lead acid, and/or vented, and description of any associated exhaust ventilation system(s). h. Description of actions to detect and prevent thermal runaway events. i. Description of whether the facility will be located in a lightning-prone area. If the facility is to be located in a lightning-prone area, description of how the facility shall comply with NFPA 780 Standard for the Installation of Lightning Protection Systems; j. Description of location and types of fuses used to ensure that if the wireless transmission facility experiences overcurrent resulting from current exceeding the rating of equipment or the ampacity of a conductor, the facility shall turn off temporarily. k. Depowering procedures including identification of locations of electrical depowering devices, which include: Meeting Packet Page 186 of 311 24 i. Coded floor prints located in the Fire Safety Plan document; ii. Facility signage to direct fire personnel to depowering locations; iii. The method of turning off power to the following: 1) Alternating current power board. This is the primary source of electric power for a small wireless facility and is supplied by the local power company. 2) Standby power generator. This unit, usually a turbine or diesel generator, provides standby ac power that is transferred manually or automatically whenever a loss of ac power is experienced. 3) Direct current primary disconnect fuse or circuit breaker bay. This unit distributes dc power to the secondary fuse or circuit breaker panels throughout the central office. The secondary fuse or circuit breaker panels feed all the operating voltages to the central office branch circuits. 4) Uninterruptible power supply (UPS) 5) HVAC systems serving the facility 6) Alternative energy devices, such as wind turbines, fuel cells, photovoltaic systems, or other devices providing power to the facility. 9. Detailed electrical designs, signed and stamped by a licensed electrical engineer, demonstrating compliance with the adopted building, electric and fire codes adopted by the Town. The Code compliance demonstration shall include all necessary underlying calculations and inputs, including but not limited to: a. A short circuit and coordination study (“SCCS”) calculated pursuant to the IEEE 551- 2006: Recommended Practice for Calculating AC Short-Circuit Currents in Industrial and Commercial Power Systems or the latest version of that standard. The study must demonstrate the protection devices will ensure the equipment enclosure will not be breached. The SCCS must include analysis of Voltage Transient Surges due to contact of conductors of different voltages; b. A one-line diagram of the electrical system; c. Voltage Drop & Load Flow Study; d. Load Calculation; e. Panel Directories. Meeting Packet Page 187 of 311 25 10. Regulatory authorization. The applicant shall submit evidence of the applicant's regulatory status under federal and Arizona law to provide the services and construct the small wireless facility proposed in the application. The application shall clearly and expressly state whether the facility will be used to provide personal wireless services as defined by federal law and if the applicant contends 47 U.S.C. § 332(c)(7) and 47 C.F.R. §§1.6002 and 1.6003 apply. The applicant shall also clearly state whether it contends that 47 U.S.C. § 1455 and 47 C.F.R. § 1.6100 apply. 11. Environmental impact assessment. A completed FCC NEPA worksheet that was used to determine whether further environmental processing under NEPA and 47 C.F.R. Subpart I is necessary. 12. Structural analysis by a professional engineer licensed in the State of Arizona that evaluates whether the underlying pole or support structure has the structural integrity to support all the proposed equipment and attachments. At a minimum the analysis must be consistent with ANSI .05.1 standards, the standards and practices required for an ANSI/TIA-222 Maintenance and Conditions Assessment (under the most current revision at the time of submittal), any safety and construction standards required by law and the utility provider and all other applicable codes. The report shall contain tolerances including but not limited to guy tensions if applicable, plumb, twist, slip splices and take up devices. If a new tower or monopole, include calculations demonstrating the new tower is capable of collocation of at least one additional set of antenna. 13. Acoustic analysis. The applicant shall submit an acoustic analysis prepared and certified by a licensed engineer in the State of Arizona for the proposed facility and all associated equipment including all environmental control units, sump pumps, temporary backup power generators and permanent backup power generators demonstrating compliance with the Town’s noise regulations. The acoustic analysis must also include an analysis of the manufacturer’s specifications for all noise-emitting equipment and a depiction of the proposed equipment relative to all adjacent property lines. 14. FCC Compliance Report. An FCC compliance report, prepared by a licensed engineer, and certified under penalties of perjury, that the content thereof is true and accurate, wherein the licensed engineer shall certify that the proposed facility will be FCC compliant as of the time of its installation, meaning that the facility will not expose members of the general public to radiation levels that exceed the permissible radiation limits which the FCC has set. If it is anticipated that more than one carrier and/or user is to install transmitters into the facility, the FCC compliance report shall take into account anticipated exposure from all users on the facility and shall indicate whether or not the combined Meeting Packet Page 188 of 311 26 exposure levels will or will not exceed the permissible General Population Exposure Limits, or alternatively, the occupational Exposure Limits, where applicable. Such FCC Compliance Report shall provide the calculation or calculations with which the engineer determined the levels of RF radiation and/or emissions to which the facility will expose members of the general public. On the cover page of the report, the report shall explicitly specify: (a) Whether the applicant and their engineer are claiming that the applicable FCC limits based upon which they are claiming FCC compliance are the General Population Exposure Limits or the Occupational Exposure Limits. If the applicant and/or their engineer are asserting that the Occupational Exposure Limits apply to the proposed installation, they shall detail a factual basis as to why they claim that the higher set of limits is applicable, (b) The exact minimum distance factor, measured in feet, which the applicant’s engineer used to calculate the level of radiation emissions to which the proposed facility will expose members of the general public. The minimum distance factor is the closest distance (i.e., the minimum distance) to which a member of the general public shall be able to gain access to the transmitting antennas mounted upon, or which shall be a part of, the proposed facility. 15. If the application is for a wireless facility that will not be attached to an existing utility pole and the facility’s proposed height will be greater than 30 feet then structural elevations of the facility(ies) shall include any trees and other structures within 20 feet, and their height. 16. Notice of Application. The applicant shall provide evidence that a Town-approved notice was sent to all landowners and residents within 300 feet of the proposed facility location at least 15 days prior to application submittal. C. Each Eligible Facilities Request shall include the items listed in B.1.-10., B.12.-16. The applicant shall also produce all other information that is necessary for the Development Services Director to verify that the proposed facility meets the criteria for an Eligible Facilities Request in 47 C.F.R. §1.6100. D. Additional submittal requirements for wireless facilities located within the Town’s rights-of-way: 1. A signed Wireless Facility License Agreement; and Meeting Packet Page 189 of 311 27 2. A Wireless Facility Encroachment Permit E. Additional submittal requirements for wireless facilities located on private property: 1. Proof of authorization of site occupancy. If the applicant is not the owner of real property where it seeks to install and operate its facility(ies) and is leasing all or a portion of the real property, the application shall provide a written copy of its lease with the owner of such property or other proof that applicant is authorized to occupy the site. 2. Tree protection. The applicant shall identify all existing trees to be removed on a parcel for the installation, operations and maintenance of the facility and obtain approval from the Town of a tree protection plan prepared by a certified arborist if the small cell installation will be located within the canopy of a tree or within a 20- foot radius of the base of such a tree. Depending on site specific criteria (e.g., location of tree, size, and type of tree, etc.), a radius greater than 20 feet may be required. Section 19-1-6 Review Procedures and Timelines A. Complete Application. Applications for small wireless facilities shall be filed electronically on the Town’s website using the process established by the director for such applications. All such applications shall include the information as required by Section 19-1-5 as appliable to the type of application. B. Independent Consultant. The Town is authorized to retain an independent, qualified consultant to review any application for a permit for a small wireless facility to review the technical aspects of the application, including, but not limited to, the following matters: 1. The accuracy, adequacy, and completeness of submissions; 2. Compliance with applicable radio frequency emission standards; 3. Whether any requested exception is necessary to close a significant gap in coverage and is the least intrusive means of doing so; 4. Technical demonstration of the unavailability of alternative sites, facility designs or configurations, and coverage analysis; and 5. The validity of conclusions reached or claims made by applicant. 6. The cost of this review shall be paid by the applicant through a deposit pursuant to an adopted fee schedule resolution. Meeting Packet Page 190 of 311 28 C. Review and approval authority. The Town of Fountain Hills reserves its authority to the fullest extent permitted over decisions regarding the placement, construction, and modification of a wireless communications facility pursuant to 47 U.S.C. § 332(c)(7)(A) and A.R.S. § 9-596. D. The permitting and regulation of small wireless facilities are subject to all of the Town’s codes and regulations, including the Town’s zoning codes and other regulatory documents. E. Voluntary waiver of timeframes for completeness review and the Arizona shot clock to either grant or deny a properly completed application. In the interests of promoting a proper review for approval of a permit application, the Town shall request that Applicant agree to a voluntary waiver of the timeframe for completeness review and permit review pursuant to A.R.S. § 9-593.F.2. and/or 47 C.F.R. § 1.6003(d) upon receipt of an application. F. Completeness review. Upon receipt of wireless communications facility permit application, the Town shall review the application for completeness. If the Town determines the application is: (a) incomplete, (b) missing required application materials, (c) specifies the wrong type of wireless facility, or (d) is otherwise defective, then, within 20 days of the Town’s receipt of the application for collocation of small wireless facilities or 30 days of the Town’s receipt of the application for the modification of existing or the installation of new monopoles, utility poles or new wireless facilities, the Town shall notify applicant of the incompleteness of an application with a notice of incomplete application sent by electronic mail. If and to the extent 47 C.F.R. § 1.6003 applies, the tolling periods set out in § 1.6003(d) shall apply. If and to the extent that 47 C.F.R. § 1.6100 applies, the tolling periods in § 1.6100(c) shall apply. 1. Notice of incomplete application. Such notice shall advise the applicant, indicating with specificity any deficiencies in the required documents or deficiencies in the content of the required documents which, if cured, make the application properly completed. 2. Extension of 75-day application review period for collocations of small wireless facilities or 150-day period for modifications of existing or installations of new monopoles, utility poles or new wireless facilities. The Town and applicant may mutually agree to extend the 75-day or 150-day application review period. 3. Eleventh hour submissions. Upon the electronic mailing of such notice of incompleteness, applicant will have a reasonable timeframe to cure deficiencies and make the application properly completed to accommodate the Town’s timely request for information required to complete the application. In the event that Meeting Packet Page 191 of 311 29 applicant tenders eleventh hour submissions to the Town in the form of expert reports, expert materials, and/or materials which require a significant period for review due either to their complexity or the sheer volume of materials which an applicant has chosen to provide to the Town at such a late point in the proceedings, the Town shall be afforded a reasonable time to review such late-submitted materials. 4. If applicant does not cure stated deficiencies within 30 days, the application will be considered withdrawn or closed. G. On-site inspection. A physical inspection by Town staff or the Town's designee may be required for any application that involves: 1. A new wireless facility on a new or replacement structure; 2. Any modification to an existing facility if no physical inspection has occurred in the last 12-month period. H. Property values impact report. The Town may require applicant to submit a property values impact report prepared by an independent, qualified real estate appraiser licensed in the state of Arizona. The report shall evaluate the potential impact of the proposed wireless facility on the value, marketability, and desirability of nearby residential properties and shall: 1. Identify all residential properties located within at least one thousand (1,000) feet of the proposed wireless facility site, or such greater distance as determined appropriate by the Town; 2. Analyze the potential effects of the proposed facility on surrounding property values, including but not limited to visual impacts, proximity impacts, neighborhood character, aesthetics, noise, lighting, and equipment visibility associated with the proposed installation; 3. Include a comparative analysis of similarly situated properties located near existing wireless facilities and comparable properties not located near such facilities, where data is reasonably available; 4. Evaluate impacts on scenic views, residential enjoyment, and community character, particularly in residential neighborhoods, historic districts, scenic corridors, and environmentally sensitive areas; 5. Include all assumptions, methodologies, supporting market data, studies, photographs, maps, and comparable sales relied upon in preparing the report; 6. Be prepared at the sole expense of the applicant; and Meeting Packet Page 192 of 311 30 7. Be subject to independent peer review by a real estate expert selected by the Town, at the applicant’s expense. The Town may consider the findings of the property value impact report, including any evidence of adverse impacts on surrounding properties or neighborhood character, when evaluating compliance with applicable zoning, aesthetic, compatibility, and public welfare standards under this Code. I. Environmental impact. For all applications other than eligible facilities requests, the Town shall conduct environmental reviews pursuant to NEPA to the extent NEPA procedures apply to the project. If, and to the extent that, the Town determines a proposed installation bears the potential for a significant adverse impact upon the environment within the meaning of NEPA, then the Town shall be expected to comply with the requirements of NEPA in determining both 1. The extent of adverse impacts upon the environment and 2. What mitigation measures the applicant should be required to undertake to minimize the adverse environmental impacts and/or adverse impacts upon historic sites, structures and/or districts. J. A biological resource survey addressing potential impacts to locally present protected or sensitive species, including but not limited to the Sonoran Desert Tortoise (Gopherus morafkai). The survey shall include the following: 1. A proposed facility description including location, height of tower as measured from the ground, description of associated equipment, width and length of access roads and driveways, and length and right-of-way width of power and communication lines; 2. Existing biological resources on-site including quantification of vegetation and habitat types, color photo documentation of on-site and surrounding vegetation, a description of water resources, potential habitat for federal and state-listed species, and sensitive species habitats; 3. The results of any focused surveys for federally listed species (if required); and 4. Impacts to biological resources including quantification of the habitat to be removed as a result of the proposed facility. The director may waive this requirement based on a finding that existing information verifies the lack of such biological resources on the site. K. Historical reviews. For all applications other than eligible facilities requests, the Town shall consider the potential adverse impacts of any proposed personal wireless services Meeting Packet Page 193 of 311 31 facility upon any historic site or structure. If, and to the extent that the Town determines that a proposed installation bears the potential for a significant adverse impact upon a historic site or a historic district within the meaning of the NHPA (especially if the historic site at issue is listed upon the national register of historic places), then the reviewing authority shall comply with the requirements of both NHPA and Town law in determining both: (a) the extent of adverse impacts upon the historic properties, and (b) what mitigation measure might the applicant be required to undertake to minimize the adverse environmental impacts and/or adverse impacts upon historic sites or structures. Should a respective applicant fail to obtain a Section 106 review under NHPA, and opinion letters from the FCC pertaining to its proposed installation prior to a first public hearing before the reviewing authority for the respective application, then the Town shall make direct requests to the FCC for their review of the application. They shall request the FCC’s review and input in completing the statutorily-required environmental/historic impact analysis pursuant to NHPA. This request shall include, but not be limited to, a request to the FCC for a Section 106 review, as defined in this chapter, as the Town recognizes each application for a wireless communications facility permit for the installation of a personal wireless services facility shall constitute “an undertaking” for purposes of compliance with the National Historic Preservation Act. L. Small wireless facilities in the public right-of-way. The permitting and regulation of small wireless facilities in the right-of-way are subject to all of the Town’s codes and regulations, including the Town’s zoning codes and other regulatory processes governing use of the rights-of-way. Small wireless facilities located or collocated within the Town’s rights-of-way shall be reviewed in accordance with the following: 1. Review and approval authority. The Town of Fountain Hill reserves its authority to the fullest extent pursuant to 47 U.S.C. § 332(c)(7)(A) and A.R.S. § 9-594.B. to regulate the construction, installation, maintenance, modification, operation or replacement of a utility pole, monopole or associated wireless facility in a right-of- way. 2. No monopoles, utility poles associated with small wireless facilities, or small wireless facilities shall be collocated, installed, modified, or replaced in the public right-of-way unless the following requirements are met. Applications for the installation of new, replacement or modified utility poles associated with the collocation of small wireless facilities in the right-of-way shall be reviewed for compliance with the following: a. All applicable codes. b. Local code provisions or regulations that concern: i. Public safety. Meeting Packet Page 194 of 311 32 ii. Objective design standards and reasonable stealth and concealment requirements. iii. Undergrounding requirements that prohibit the installation of new or the modification of existing utility poles or monopoles in a right-of-way without prior approval, if such requirements include a waiver, zoning or another process that addresses requests to install such new utility poles or monopoles or modify such existing utility poles or monopoles and do not prohibit the replacement of utility poles or monopoles. a. Requirements that are imposed by a contract between the Town and a private property owner and that concern design standards applicable to utility poles in the right-of-way. b. The Town’s public safety and reasonable spacing requirements that concern the location of new utility poles in a right-of-way. Approval of an Application is contingent upon the applicant demonstrating compliance with the Wireless Facilities Standard Terms and Conditions, the Town’s Design Standards and Guidelines, and any site-specific requirements developed based upon consultation with the Town through the site review and permitting process. Upon approval of an Application, a Wireless Facility Encroachment Permit will be issued for each monopole, utility pole associated with small wireless facilities, or small wireless facility included in the Application. However, nothing in this article shall be construed to exempt monopoles, utility poles associated with small wireless facilities, or small wireless facilities in the public right-of-way from the requirements of Article 16-1 as an encroachment in the public right-of-way. M. The Town shall notify the applicant of approval or denial by electronic mail on or before the end of the applicable shot clock period or, if review timeframe waived, at the end of any mutually agreed-upon extension. If the application is denied, the Town shall specify the basis for the denial in writing with citations to the specific code provisions on which the denial is based and send the documentation to Applicant by electronic mail. The applicant may cure the deficiencies identified by the Town and resubmit the application within 30 days after the notice of denial is sent to the applicant. If the application is resubmitted, the Town shall approve or deny the application within 30 days of receipt of the application. If Applicant does not cure the stated deficiencies within 30 days, the application shall be considered withdrawn or closed. N. Truthful and accurate statements. Applicant acknowledges that the Town's approval relies on the written and/or oral statements by applicant and/or persons authorized to act on permittee's behalf. In any matter before the Town in connection with the small Meeting Packet Page 195 of 311 33 wireless facility or other infrastructure approved under the wireless communications facility permit, neither the applicant nor any person authorized to act on applicant's behalf shall, in any written or oral statement, intentionally provide material factual information that is incorrect or misleading or intentionally omit any material information necessary to prevent any material factual statement from being incorrect or misleading. Section 19-1-7 Permit Conditions A. Owners of all approved wireless facilities shall be required to agree to allow future co- location by other carriers, and to provide an efficient process for handling co-location requests. B. Post-installation certification. Within 60 calendar days after the permittee commences full, unattended operations of the wireless facility approved or deemed-approved, the permittee shall provide the Town’s Development Services Director, or his or her designee with documentation reasonably acceptable to the Development Services Director, at its expense, showing that the wireless facility has been installed and constructed in strict compliance with the approved construction drawings and photo simulations. Such documentation shall include without limitation as-built drawings, GIS data, and site photographs and may be reviewed by an independent consultant retained by the Town pursuant to this Ordinance. The post-installation certification shall include, without limitation, the physical site information including listing of ASR registration number, owner of record, service life, number of antennas, name of each wireless carrier using the facility, list of lengths and sizes of guy wire coil, lengths and sizes of COAX and fiber cable, COAX fiber boots, COAX fiber panels, and COAX fiber connectors, base station equipment, jaw turnbuckle, grounding kit(s), lighting arrestor, lights, wave bridge, GPS receiver(s) and transmitter(s), and backup power equipment including fuel tank(s). C. Insurance required. Prior to final inspection and operation of the facility, the permittee and each owner or operator of an antenna on the personal wireless services facility, shall obtain, and at all times relevant to this permit maintain, insurance policies, issued by an insured authorized to do business in the State of Arizona and reasonably acceptable to the Town of Fountain Hills, at least as broad as follows: 1. Commercial general liability insurance. Commercial general liability insurance. The permittee shall procure and maintain at its expense or cause its contractor or subcontractor to procure and maintain throughout the term of this permit, commercial General Liability ("CGL") insurance on an "occurrence" basis, with limits not less than $10,000,000 per occurrence per wireless carrier or $10,000,000 per wireless carrier in the aggregate. If a general aggregate limit applies, either the general aggregate limit Meeting Packet Page 196 of 311 34 shall apply separately to this project location or the general aggregate limit shall be twice the required occurrence limit. CGL insurance must include coverage for the following: Bodily Injury and Property Damage; Personal Injury/Advertising Injury; Premises/Operations Liability; Products/Completed Operations Liability; Aggregate Limits that Apply per Project; Explosion, Collapse and Underground ("UCX") exclusion deleted; Contractual Liability with respect to the permit; Broad Form Property Damage; and Independent Consultants Coverage. The policy shall contain no endorsements or provisions limiting coverage for (i) contractual liability; (ii) cross liability exclusion for claims or suits by one insured against another; (iii) products/completed operations liability; (iv) bodily injury or damage from RF exposure at levels exceeding the FCC limits; or (v) contain any other exclusion contrary to the conditions in this permit. 2. Environmental pollution liability insurance. The permittee shall procure and maintain at its expense or cause its contractor or subcontractor to procure and maintain throughout the term of this permit, Contractors Pollution Liability Insurance including contractual liability coverage to cover liability and legal expenses arising out of cleanup, removal, storage, or handling of hazardous or toxic chemicals, materials, substances, or any other pollutants by the permittee or any subcontractor resulting from pollution conditions associated with the personal wireless services facility in an amount not less than $1,000,000 each occurrence combined single limit for bodily injury and property damage. 3. Umbrella policy. If an umbrella or excess liability insurance policy is used to satisfy the minimum requirements for insurance coverage listed above, the umbrella or excess liability policies shall provide coverage at least as broad as specified for the underlying coverages and covering those insured in the underlying policies. Coverage shall be "pay on behalf," with defense costs payable in addition to policy limits. Permittee shall provide a "follow form" endorsement or schedule of underlying coverage satisfactory to the Town indicating that such coverage is subject to the same terms and conditions as the underlying liability policy 4. Endorsements. The relevant policy(ies) shall name the Town of Fountain Hills, its elected/appointed officials, commission members, officers, representatives, agents, volunteers and employees as additional insureds. The permittee shall use its best efforts to provide thirty (30) days' prior notice to the Town of the cancellation or material modification of any applicable insurance policy. 5. Verification of coverage. Permittee shall furnish the Town of Fountain Hills with original certificates and amendatory endorsements or copies of the applicable policy language providing the insurance coverage required herein. All certificates and endorsements are to be received and approved by the Town before any work Meeting Packet Page 197 of 311 35 commences. However, failure to obtain required documents prior to the work beginning shall not waive the Licensee's obligation to provide them. Permittee shall furnish updated certificates and endorsements to the Town annually. The Town reserves the right to require updated certificates and endorsements or complete, certified copies of all required insurance policies, including the endorsements required herein, at any time. All insurance required under this Chapter shall be issued by an insurer holding a current A.M. Best rating of A- or better, that is not an affiliate, subsidiary, or captive insurance entity of the applicant, permittee, or any parent or related company thereof. Self-insurance and insurance issued by a special-purpose or single-project entity created by the applicant shall not satisfy this requirement. The Town reserves the right to request and independently verify the insurer's rating and independence prior to permit issuance and at each renewal. D. Permittee has full liability. The permittee shall assume full liability for damage or injury caused to any property or person by the personal wireless services facility. E. Prior to final inspection and operation of the facility, permittee shall provide an executed agreement, pursuant to which permittee and any related third parties agree to defend, hold harmless and fully indemnify the Town of Fountain Hills, its officers, employees, agents, attorneys, and volunteers, from (i) any claim, action or proceeding brought against the Town or its officers, employees, agents, or attorneys to attack, set aside, void, or annul any such approval of the Town or (ii) a successful legal action brought against the Town for loss of property value or other harm caused by the placement or operation of a small cell installation. Such indemnification shall include damages, judgments, settlements, penalties, fines, defensive costs or expenses, including, but not limited to, interest, attorneys’ fees and expert witness fees, or liability of any kind related to or arising from such claim, action, or proceeding whether incurred by the permittee, the Town of Fountain Hills and/or the parties initiating or bringing such proceeding. The agreement shall also include a provision obligating the permittee to indemnify the Town of Fountain Hills for all of the Town’s costs, fees and damages which the Town incurs in enforcing the indemnification provisions of this Section. F. ADA Accommodations. The Town of Fountain Hills seeks to comply with the Americans With Disabilities Act, and shall comply with same in the event that any person who is disabled within the meaning of the Act seeks a reasonable accommodation, to the extent they are entitled to same under the Act. Meeting Packet Page 198 of 311 36 G. Prior to the issuance of any entitlement permit, the applicant shall provide a facility maintenance/removal agreement and decommissioning plan to the Town manager, binding the developer and successors in interest, to an agreement to: 1. Maintain the facility as approved; and 2. Notify the Town of Fountain Hills of intent to vacate the site, agreeing that the applicant will remove all facilities within twelve (12) months pursuant to the decommissioning plan unless the site is occupied by a successor; or 3. Provide a cash bond equal in cost to removing the facility and associated facilities. H. Decommissioning plan. The Facility Maintenance/Removal Agreement shall include a decommissioning plan with the following information: 1. A plan for disposal of all solid waste, special waste and hazardous waste in accordance with local, state, and federal waste disposal regulations detailing the types and quantities of waste materials and methods of disposal; 2. A description of how and on what schedule stabilization and re-vegetation of the site as deemed necessary to minimize erosion will be accomplished. Permittee should include, to the extent possible, restoration of native vegetation, and pollinator-friendly seed mixtures shall be used to the maximum extent possible in re-vegetation of ground cover; 3. An estimate of costs for the decommissioning of the personal wireless services facility with a detailed description of how the estimated costs were derived, including the date which was the basis for the estimate; 4. A decommissioning plan signed by the party responsible for decommissioning and the landowner (if different) whose minimum requirements meet the standards of this Ordinance. Such plan must be filed with the Town manager prior to the first operation of the personal wireless services facility; 5. An estimate of the total cost of decommissioning value of the equipment and itemization of the estimated major expenses, including the projected costs of measures taken to minimize or prevent adverse effects on the environment during the implementation of the decommissioning plan. I. Abandoned Facilities: The wireless facility authorized under this permit shall be deemed abandoned if not operated for any continuous six-month period. Within 90 days after a small wireless facility or other infrastructure deployment is abandoned or deemed abandoned, the permittee and/or property owner shall completely remove the small wireless facility or other infrastructure deployment and all related improvements Meeting Packet Page 199 of 311 37 and shall restore all affected areas to a condition compliant with all applicable laws, which includes without limitation the Code. In the event that neither the permittee nor the property owner complies with the removal and restoration obligations under this condition within said 90-day period, the Town shall have the right (but not the obligation) to perform such removal and restoration with or without notice, and the permittee and property owner shall be jointly and severally liable for all costs and expenses incurred by the Town in connection with such removal and/ or restoration activities. J. Landscaping. The permittee shall replace any landscape features damaged or displaced by the construction, installation, operation, maintenance or other work performed by the permittee or at the permittee’s direction on or about the site. If any trees or cacti are damaged or displaced, the permittee shall hire and pay for a licensed arborist to select plant and maintain replacement landscaping in an appropriate location for the species. Any replacement tree or cacti must be substantially the same size as the damaged tree or cacti or as otherwise approved by the Town of Fountain Hills. The permittee shall, at all times, be responsible to maintain any replacement landscape features. K. A permanent, weatherproof, facility identification sign, no more than twelve (12”) inches by twenty-four (24”) inches in size, identifying the facility operator and a twenty-four (24) hour phone number, shall be placed on the fence, the equipment building or facility base. If larger signage is required by the FCC, the applicant shall provide proof of the requirement, and signage shall not exceed the required size. L. Permittee’s contact information. Prior to the final inspection and at all times relevant to this permit, Permittee shall keep on file with the Town of Fountain Hills basic contact and site information. This information shall include, but not is limited to, the following: 1. The name, physical address, notice address (if different), direct telephone number and email address for the permittee and, if different from the permittee, the site operator, equipment, owner, the site manager and agent for service of process; 2. The regulatory authorizations held by the permittee and, to the extent applicable, site operator, equipment owner and site manager as may be necessary for the facility's continued operation; 3. The facility's site identification number and/or name used by the permittee and, to the extent applicable, site operator, equipment owner and site manager; and 4. A toll-free telephone number to the facility's network operations center where a live person with power-down control over the facility is available 24 hours-per-day, seven days-per-week. Within 10 business days after a written request by the Town Meeting Packet Page 200 of 311 38 of Fountain Hills, the permittee shall furnish the Town with an updated form that includes all the most current information described in this condition. M. Within 15 days after any project approval, the permittee shall sign and file with the Town manager a defense and indemnity agreement, to defend, indemnify, hold harmless, the Town of Fountain Hills and Town Council, agents, officers, officials, employees and volunteers (collectively, the "indemnitees") from any and all (i) damages, liabilities, injuries, losses, costs and expenses and from any and all claims, demands, law suits, writs and other actions or proceedings ("claims") brought against the indemnitees to challenge, attack, seek to modify, set aside, void or annul the Town of Fountain Hills' s approval of this use permit, and (ii) other claims of any kind or form, whether for personal injury, death or property damage, that arise from or in connection with the permittee's or its agents', directors', officers', employees', contractors', subcontractors', licensees' or customers' acts or omissions in connection with this use permit or the small wireless facility or other infrastructure deployment. In the event the Town of Fountain Hills becomes aware of any claims, the Town will use best efforts to promptly notify the permittee and the private property owner (if applicable) and shall reasonably cooperate in the defense. The permittee expressly acknowledges and agrees that the Town shall have the right to approve, which approval shall not be unreasonably withheld, the legal counsel providing the Town's defense, and the property owner and/ or permittee (as applicable) shall promptly reimburse the Town for any costs and expenses directly and necessarily incurred by the Town in the course of the defense. The permittee expressly acknowledges and agrees that the permittee' s indemnification obligations under this condition are a material consideration that motivates the Town to approve this use permit, and that such indemnification obligations will survive the expiration, revocation or other termination of this permit in the form approved by Town Manager. N. Permit revocation. Any permit granted under this section may be revoked in accordance with the provisions and procedures in this subsection. The Town Council, Town Manager, Fire Marshal, Development Services Director, or other Town official may initiate revocation proceedings when there is information that the facility may not be in compliance with all applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Before any public hearing to revoke a permit granted under this Section, the body that originally approved the permit must issue a written notice to the permittee that specifies (i) the facility(ies); ii) the violation(s) to be corrected; (iii) the timeframe in which the permittee must correct such violation(s); and (iv) that, in addition to all other rights and remedies the Town of Fountain Hills may pursue, the Town may initiate revocation proceedings for failure to correct such violation(s). The body that originally approved the permit may revoke a permit when it finds substantial evidence in the written record Meeting Packet Page 201 of 311 39 to show that the facility is not in compliance with any applicable laws, which includes without limitation, any permit in connection with the facility and any associated conditions with such permit(s). Any decision to revoke or not revoke a permit shall be final and not subject to any further appeals. Written notice of intention to revoke the permit shall be mailed to the applicant not less than 10 days before the public hearing. O. Truthful and accurate statements. The permittee acknowledges that the Town's approval relies on the written and/or oral statements by permittee and/or persons authorized to act on permittee' s behalf. In any matter before the Town of Fountain Hills in connection with the use permit or the wireless facility approved under the use permit, neither the permittee nor any person authorized to act on permittee' s behalf shall, in any written or oral statement, intentionally provide material factual information that is incorrect or misleading or intentionally omit any material information necessary to prevent any material factual statement from being incorrect or misleading. Section 19-1-8 Safety Standards A. All small wireless facilities shall be designed by qualified, licensed persons to meet minimum standards for public safety, and shall comply with all applicable legal requirements, including the Town Building, Electric, and Fire Codes throughout the permit period. All wireless facilities should be proactively monitored and maintained to ensure compliance with the safety design. B. Fire Safety Hazard Protocols: If the Fire Chief (or his or her designee) finds good cause to believe that the facility(ies) (including, without limitation, its accessory equipment, antenna and/ or base station) presents a fire risk, electrical hazard or other immediate threat to public health and safety in violation of any applicable law, such officials may order the facility to be shut down and powered off until such time as the fire risk or electrical hazard has been mitigated. Any mitigations required shall be at permittee’s sole cost and expense. C. Other Safety Hazard Protocols: If there is good cause to believe that the facility(ies) presents a danger of debris fall or shows signs of imminent structural such as misaligned base plates, degraded flanges, defective sections, joints, and guy wires, Town officials may order the facility(ies) shut down and powered off until such time as the hazard has been mitigated. Any mitigations required shall be at permittee’s expense. D. All small wireless facilities shall comply with safety standards, including, but not limited to, The National Electric Safety Code and applicable life safety codes, Town of Fountain Hills Building Safety Code, and engineering codes. Meeting Packet Page 202 of 311 40 Section 19-1-9 Operational Requirements A. RF Limit: The Town deems it to be of critical importance to the health, safety, and welfare of the Town, its residents, and the public at large that personal wireless service facilities do not expose members of the general public to levels of RF radiation that exceed the limits set out in FCC regulations. In accord with the same, the Town enacts the following RF Radiation testing requirements and provisions set forth herein below. 1. Prohibition on Illegally Excessive RF Radiation: No facility shall be sited or operated in such a manner that it poses, either by itself or in combination with other such facilities, a potential threat to public health. To that end no small wireless facility or combination of facilities shall produce at any time RF emissions that exceed the limits for Maximum Permissible Exposure for human exposure pursuant to 47 CFR §1.1310(e)(1), Table 1 or any more restrictive standard subsequently adopted or promulgated by the Town, the state of Arizona, or the federal government. 2. RF Emissions Monitoring Requirements a. Post-installation certification. Within 45 days of commencing operation of a facility, the permittee shall provide the Development Services Director a post installation certification prepared in accordance with the small wireless facility standards confirming that the facility is compliant with FCC regulations concerning radio frequency emissions. b. Post-modification certification. Within 45 days of modifying a permitted facility, the permittee shall perform subsequent radio frequency reporting and testing confirming that the small wireless facility is compliant with FCC regulations concerning radio frequency emissions. c. Annual certification. No more than 12 months following the issuance of the initial Wireless Permit, and no more than 12 months after each annual certification, the permittee shall perform subsequent radiofrequency reporting and testing confirmation that the small wireless facility is compliant with FCC regulations concerning radiofrequency emissions. Failure to supply the required reports or to remain in continued compliance with Maximum Permissible Exposure limits for human exposure pursuant to 47 CFR §1.1310(e)(1), Table 1 shall be grounds for revocation of the permit or other entitlement. d. Random testing. At the permittee’s expense, the Town may retain an engineer or other qualified electromagnetic radiation specialist to conduct random Meeting Packet Page 203 of 311 41 unannounced RF radiation testing of any facility to ensure the facility’s compliance with the limits in 47 C.F.R.§1.1310(e)(1) Table 1. e. If the Town has good cause to believe a facility or facilities is operating in excess of FCC exposure limits, the Town shall provide written notice to the owner and/or operator identifying the noncompliance and the corrective action required. Except where the violation presents an immediate threat to public safety, the owner or operator shall be afforded a reasonable period, not to exceed thirty (30) days, to cure the violation or demonstrate compliance. The Town may hire an independent consultant to test the facility for excess RF emissions levels. Such testing shall be conducted at permittee’s expense. Noncompliance with FCC exposure guidelines shall be grounds for revocation of the permit or other entitlement. 3. Any finding of illegally excessive RF radiation is a violation of this ordinance and the permit conditions and the permit is subject to revocation pursuant to Section 19- 1-7. N. or recission. B. Maintenance: All small wireless facilities including, but not limited to, monopoles, utility poles, accessory equipment, lighting, fences, walls, shields, cabinets, artificial foliage or concealment elements and the facility site shall be maintained so as to minimize visual, noise, and other impacts on the surrounding community and be maintained in good condition, including ensuring the facilities are reasonably free of: 1. Dirt or grease; 2. Chipped, faded, peeling, or cracked paint; 3. Rust and corrosion; 4. Cracks, dents, or discoloration; 5. Missing, discolored, or damaged synthetic foliage or other concealment elements; 6. Graffiti, bills, stickers, or advertisements; 7. Litter or debris including but not limited to synthetic foliage that has fallen off a monopine; permittee is responsible for prompt cleanup of debris or synthetic foliage at its expense. 8. Broken or misshapen structural parts; and Meeting Packet Page 204 of 311 42 9. Damage from any cause. C. Repairs. All necessary repairs and restoration shall be completed by the permittee, owner, or operator within 48 hours: 1. After discovery of the need by the permittee, owner, operator or any designated maintenance agent; or 2. After the permittee, owner, operator, or any designated maintenance agent receives notification from a resident or the Development Services Director, or any Town official. 3. The permittee shall replace its facilities, after obtaining all required permits, if maintenance or repair is not sufficient to return the facility to the condition it was in at the time of installation. 4. Each owner or operator of a facility shall routinely inspect each site to ensure compliance with the standards set forth in this section and the conditions of approval. D. No changes shall be made in the location, dimensions, character or duration of the monopoles, utility poles associated with small wireless facilities, or small wireless facilities as granted by the permit except upon written authorization of the Development Services Department. Section 19-1-10 Exceptions A. The Town may grant an exception to the provisions in this Article but only to the extent necessary to avoid conflict with applicable federal or state law. When the applicant requests an exception, the Reviewing Authority shall consider the findings in Subsection B. Each exception is specific to the facts and circumstances in connection with each application. An exception granted in one instance shall not be deemed to create a presumption or expectation that an exception will be granted in any other instance. B. Findings for an Exception. The Town Council may grant an exception to any provision or requirement in this Section only if the Council finds that: 1. a denial based on the application' s noncompliance with a specific provision or requirement would violate federal law, state law or both; or 2. a provision in this Section, as applied to the applicant, would violate any rights or privileges conferred on the applicant by federal or state law. Meeting Packet Page 205 of 311 43 C. Exception Requests. An applicant may request an exception only at the time the applicant submits an application. The Reviewing Authority may consider additional information provided by the applicant after submittal to supplement the initial exception request. Any request for an exception after the initial submittal shall be deemed to be a new application. D. Burden of Proof. The applicant shall have the burden to prove to the Council that an exception should be granted pursuant to Subsection B. The standard of evidence shall be the same as required by applicable federal or state law for the issue raised in the applicant' s request for an exception. E. Scope of Exception. If the Council finds that an exception should be granted, the exception shall be narrowly tailored so that the exception deviates from this Section to least extent necessary for compliance with federal or state law. Section 19-1-11 Appeals Any person adversely affected by a decision of the Town Manager, or Development Services, in the granting or denial of a permit pursuant to this section may appeal that decision to the Board of Adjustment. Such appeal must be taken by filing written notice with the Town manager, or designee, with a copy to the Town clerk, within 30 days after the decision of the Town manager, or development review board Development Services Director if the appellant received actual notice within 5 days of the decision. The deadline is tolled on a day for day basis until the appellant receives actual notice or should have become aware of the decision using reasonable diligence. Each appeal must be accompanied by a payment in sufficient amount to cover the cost of publishing and mailing notices of hearings. Failure to file such appeal constitutes acceptance of the permit and any conditions thereof or the denial of the application. Where a notice of appeal to the Town manager, or designee, is not timely filed as provided in this section, such right to appeal is waived. Section 19-1-12 Rates and Fees A. The Town Council shall, by ordinance or resolution, set and amend any rate, rate component, charge, or fee authorized by state law for the use of the public right-of-way and Town utility poles in connection with small wireless facilities including: 1. Fees for special use permit applications 2. Fees for collocation applications; 3. Fees for the use of the right-of-way; Meeting Packet Page 206 of 311 44 4. Rates for the use of the Town’s utility poles; 5. Fees for Encroachment Permit Applications; 6. Fees to recover legal costs resulting from enforcement to any noncompliance including, but not limited to, administrative expenses, investigation, testing, legal proceedings and filings, and continued monitoring; and 7. Other fees as the Town may determine necessary to carry out the requirements contained herein. B. All rates and fees set or amended pursuant to this article shall be reasonable and shall not exceed the amounts permitted by state law. C. The Town shall publish and make available its schedule of rates and fees. D. These fees relate solely to the matters covered by this article and are separate from all other fees, fines and penalties chargeable by the Town. Meeting Packet Page 207 of 311 ITEM 9.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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) CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-22, amending the Town's Wireless Facilities Standard Terms and Conditions for small cell wireless facilities located in Town rights-of-way. Staff Summary (background) In 2018, state statutes were modified to require local jurisdictions to allow small cell wireless facilities to be located in city and town rights-of-way. In response to that, staff prepared, and the Council adopted several documents to govern the placement of such facilities along our streets. One of the documents adopted is titled "Wireless Facilities Standard Terms and Conditions." This forty-seven-page document covers a wide range of issues and requirements to be met by any entity desiring to use the Town's right-of-way for this purpose. The current and proposed new ordinance require compliance with the items listed in the Terms and Conditions document. Staff, in conjunction with a consultant hired to update all the Town's ordinances and related documents associated with the approval, installation, and maintenance of wireless telecommunications towers and antennas, has identified one minor change to be made to the Town's Wireless Facilities Standard Terms and Conditions for small wireless facilities to be located in Town rights-of-ways. The one change needed is to update the submission requirements in Sec. 6.9.2 to reflect our current process of receiving all applications and associated documents electronically. The attached resolution with the updated terms and conditions is the same as previously approved by the Town Council with this one modification. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2026-22. Suggested Motion MOVE TO approve Resolution 2026-22. FISCAL IMPACT Meeting Packet Page 208 of 311 Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. RESOLUTION 2026-22 Meeting Packet Page 209 of 311 RESOLUTION NO. 2026-22 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN’S WIRELESS FACILITIES STANDARD TERMS AND CONDITIONS. WHEAREAS: The Town Council adopted Resolution 2018-18 on February 20, 2018, adopting a set of documents governing the placement and use of Town rights-of-ways for use by small cell wireless facilities; and WHEREAS: Resolution 2018-18 included a document titled: Wireless Facilities Standard Terms and Conditions; and WHEREAS: A review of the adopted Wireless Facilities Standard Terms and Conditions document found that the submittal requirements contained in Sec. 6.9.2 were not consistent with the Towns current requirements a revision was determined to be necessary. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. That certain document entitled “Wireless Facilities Standard Terms and Conditions” attached hereto as Exhibit A is hereby adopted. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 6th day of October, 2026. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Gerry M. Friedel, Mayor Bevelyn Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Town Manager Town Attorney Meeting Packet Page 210 of 311 Revised 10.6.2026 EXHIBIT A WIRELESS FACILITIES STANDARD TERMS AND CONDITIONS The Common Council of the Town of Fountain Hills (“Town”) has adopted the following recitals, terms and conditions (collectively, the “Terms”) to govern the use of Town owned right-of-way for the placement of wireless facilities by a Wireless Provider as defined by the Arizona Revised Statutes, Section 9-591, et. seq. These Terms are effective as of , 20 , and may be amended only upon approval of the Town Council. RECITALS a. Town owns the public street and alley rights-of-way and public utility easements within the boundaries of the Town of Fountain Hills that are designed for use by utility companies for installation, operation and repair of water, electrical and other utilities pursuant to franchise, licenses or other agreements between utility companies and Town (collectively the “Right-of-way”). b. Town is the owner of certain street lights and traffic signals (individually a “Utility Pole” or collectively “Utility Poles”) located in the Right-of-way (as hereinafter defined). c. Pursuant to A.R.S. 9-591, et seq., one or more Wireless Providers may desire to establish and operate a network of Small Wireless Facilities to enhance wireless service coverage within the Town. d. Town anticipates that one or more Wireless Providers may desire to install Small Wireless Facilities on the Town’s Utility Poles, install new and replacement Utility Poles capable of supporting Small Wireless Facilities, and in certain cases and where permitted by the Town’s Code, install other Small Wireless Facilities or monopole towers in the Right-of-way. e. Wireless Providers agree to comply with the Town’s Right-of-way use requirements as provided in these Terms. Furthermore, Wireless Providers agree to file the appropriate applications and secure the appropriate licenses and permits required by the Town for placement of Wireless Facilities within the Town’s boundaries. f. Town Utility Poles approved for Small Wireless Facilities shall retain their primary governmental purpose, and use of the Right-of-way by Wireless Providers shall not interfere with the Town’s use thereof. The primary purpose of these Terms is to protect the health, safety and welfare of the public, and to protect the value of and physical integrity of publicly-owned property and assets. g. Because Town’s existing streetlight poles and traffic signal poles are not Meeting Packet Page 211 of 311 Revised 10.6.2026 designed to safely support the additional weight and stress of Wireless Facilities, Wireless Service Providers shall be required to provide poles designed to support these facilities to replace existing poles prior to attaching Wireless Facilities. TERMS 1. DEFINITIONS. For the purposes of the Terms: “Antenna” means communications equipment that transmits or receives electromagnetic radio frequency signals and that is used in providing wireless services. “Application Fee” means the Town’s encroachment permit application, review and other fees related to the issuance of the permit. “Base Use Fee” means the amount that the Company shall pay to Town for each year of this license for use of Town Right-of-way and Town- owned Pole, as set out in the current fee schedule. “Communications Equipment” means any and all electronic equipment at the Small Wireless Facility location that processes and transports information from the antennas to the Wireless Provider’s network. “Competing Users” means entities that own the water pipes, cables and wires, pavement, and other facilities which may be located within the Right-of-way. The Competing Users include without limitation, the Town, the State of Arizona and its political subdivisions, the public, and all manner of utility companies and other existing or future users of the Use Areas. “Encroachment Permit” means a permit issued pursuant to Chapter 16 of the Fountain Hills Town Code allowing a a utility pole, monopole, small wireless facility or wireless support structure to be placed in the Town’s Right-of-way pursuant to the Wireless Provider’s License Agreement. “FCC” means the Federal Communications Commission. “FCC Rules” means all applicable radio frequency emissions laws and regulations. “FCC OET Bulletin 65” means the FCC’s Office of Engineering & Technology Bulletin 65 that includes the FCC Radio Frequency Exposure Guidelines. Meeting Packet Page 212 of 311 Revised 10.6.2026 “License Agreement” means the license incorporating these Terms for Wireless Providers to install and operate Wireless Facilities in the Town’s Right-of-way. “Monopole” means a wireless support structure that is not more than forty inches in diameter at the ground level and that has all of the wireless facilities mounted on the pole or contained inside of the pole. “RF” means radio frequency. “RF Letter” means a letter attesting to the Wireless Provider’s compliance with FCC RF exposure guidelines from the Wireless Provider’s senior internal engineer. “Right-of-way” as defined for wireless sites in A.R.S. §9-591(18) means the area on, below or above a public roadway, highway, street, sidewalk, alley, or utility easement. Right-of-way does not include a Federal Interstate Highway, a state highway or state route under the jurisdiction of the Department of Transportation, a private easement, property that is owned by a special taxing district, or a utility easement that does not authorize the deployment sought by the wireless provider. “Site Documents” means the depiction of the use area, schematic plans and map showing location of the installation of the Wireless Facility in the Right-of-way, including but not limited to the title report of the use area, vicinity map, site plan, elevations, technical specifications and the cubic feet of the non-antenna wireless equipment. “Small Wireless Facility” as defined in A.R.S. §9-591(19), means a Wireless Facility that meets both of the following qualifications: a. All antennas are located inside an enclosure of not more than six (6) cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of the antenna’s exposed elements could fit within an imaginary enclosure of not more than six (6) cubic feet in volume. b. All other wireless equipment associated with the facility is cumulatively not more than twenty-eight (28) cubic feet in volume, or fifty (50) cubic feet in volume if the equipment was ground mounted before the effective date of this section. The following types of associated ancillary equipment are not included in the calculation of equipment volume pursuant to this subdivision: i. An electric meter. Meeting Packet Page 213 of 311 Revised 10.6.2026 ii. Concealment elements. iii. A telecommunications demarcation box. iv. Grounding equipment. v. A power transfer switch. vi. A cutoff switch. vii. Vertical cable runs for the connection of power and other services. “Supplemental Parcel Agreement” means an agreement authorizing the Wireless Provider to use property outside of the Town’s Right-of-way, whether owned by the Town or a third-party. “Third Party Areas” means the portions of the Right-of-way, such as canal crossings or other areas that for any reason have limited Right -of-way dedications or that have regulatory use restrictions imposed by a third party. “Violation Use Fee” means the types of fees that the Town has available to remedy certain breaches of the License Agreement by a Wireless Provider. “Wireless Facility” as defined in A.R.S. §9-591(22): a. Means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including both of the following: i. Equipment associated with wireless communications. ii. Radio transceivers, antennas, coaxial or fiber-optic cables, regular and backup power supplies and comparable equipment, regardless of technological configuration. b. Includes small wireless facilities. c. Does not include the structure or improvements on, under or within which the equipment is collocated, wireline backhaul facilities, coaxial or fiber-optic that is between wireless support structures or utility poles or coaxial or fiber-optic cable that is otherwise not immediately adjacent to, or directly associated with, an antenna. Meeting Packet Page 214 of 311 Revised 10.6.2026 d. Does not include Wi-Fi radio equipment described in Section 9- 506, Subsection I or microcell equipment described in Section 9 - 584, Subsection E. “Wireless Infrastructure Provider” as defined in A.R.S. §9-591(23) means any person that is authorized to provide telecommunications service in this state and that builds or installs wireless communications transmission equipment, wireless facilities, utility poles or monopoles but that is not a wireless service provider. Wireless Infrastructure Provider does not include a special taxing district. “Wireless Provider” as defined in A.R.S. §9-591(24) means a Cable Operator, Wireless Infrastructure Provider or Wireless Services Provider. “Wireless Provider’s Improvements” means all improvements installed by the Wireless Provider, including, but not limited to: all elements of the Wireless Facility, all screening elements, any landscaping plants or materials, and any other elements provided by the Wireless Provider in the approved License Agreement. “Wireless Services” as defined in A.R.S. §9-591(25) means any services that are provided to the public and that use licensed or unlicensed spectrum, whether at a fixed location or mobile, using wireless facilities. “Wireless Services Provider” as defined in A.R.S. §9-591(26) means a person that provides wireless services. Wireless Services Provider does not include a special taxing district. “Wireless Support Structure” as defined in A.R.S. §9-591(27): a) Means: i. A freestanding structure, such as a monopole. ii. A tower, either guyed or self-supporting. iii. A sign or billboard. iv. Any other existing or proposed structure designed to support or capable of supporting small wireless facilities. v. Does not include a utility pole. 2. USE AREAS. Meeting Packet Page 215 of 311 Revised 10.6.2026 Upon approval of a License Agreement, Town grants to Wireless Service Provider the right to install Wireless Facilities in the Town’s Right-of-way upon issuance of an Encroachment Permit for each Use Area as set forth below: 2.1 Limitations. Notwithstanding anything herein to the contrary, the Use Areas include and are limited to only certain areas that Wireless Provider is permitted to exclusively use and occupy (the “Exclusive Area”) and certain areas that Wireless Provider is permitted to use on a shared basis (the “Shared Area”). The Use Areas are defined by the Boundary Plan. 2.2 Use Areas Boundary. The Use Areas is the smallest geometric shape that includes the Exclusive Areas and the Shared Areas. The Use Areas exclude other parts of the Street Parcel or and all other land. Wireless Provider shall not occupy or use any other portion of the Street Parcel or adjoining lands. An approved License Agreement or any associated Encroachment Permit(s) does not allow any use by Wireless Provider of land outside the Street Parcel. If any portion of Wireless Provider’s work, improvement or equipment is to be located on other land, then such work, improvements and equipment are prohibited unless Wireless Provider first obtains from the owner of said land (including Town, if applicable) a Supplemental Parcel Agreement allowing such work, improvements and equipment. 2.3 Exclusive Areas. The Exclusive Areas are limited to the following, if and as defined by the Boundary Plan: 2.3.1 The land area defined as “Enclosure” on the Boundary Plan to be used by Wireless Provider solely for the enclosure housing the electronic ground equipment shown on the Site Plan (the “Enclosure”). Such area is confined to the actual area occupied by the exterior structure and the interior of the enclosure. If the Boundary Plan does not show a clearly defined and correctly labeled “Enclosure” area, then no enclosure area is available for Wireless Provider’s use and any enclosure for Wireless Provider’s use must be located outside the Street Parcel and authorized by a Supplemental Parcel Agreement. 2.3.2 The area on the Pole defined as “Antennas” on the Boundary Plan to be used by Wireless Provider solely for mounting the Antennas. Such area is confined to the Town approved elevations and locations actually occupied by the Antennas and their supporting brackets. If the Boundary Plan does not show a clearly defined and correctly labeled “Antennas” area, then no main antennas area is available for Wireless Provider’s use and any main antennas for Wireless Provider’s use must be located outside the Street Parcel and authorized by a Supplemental Parcel Agreement. Meeting Packet Page 216 of 311 Revised 10.6.2026 2.4 Shared Areas. Shared Areas are limited to the following areas, if and as defined by the Boundary Plan: 2.4.1 A motor vehicle Parking space (the “Parking Space”) at the “Parking Space” location described on the Boundary Plan to be used by Wireless Provider solely for parking a service vehicle to service the Communications Equipment and for ingress and egress to that Parking Space. 2.4.2 No temporary construction area is provided by these Terms, an approved License Agreement or Encroachment Permit. Wireless Provider must obtain from Town a separate written document giving Wireless Provider permission to work in the Right-of-way, as described elsewhere herein. 2.4.3 An underground cable route (the “Signal Route”) labeled as the “Signal Route” described on the Boundary Plan from the Enclosure to the Antenna to be used by Wireless Provider solely for underground radio frequency lines between the Enclosure and the Antenna. Notwithstanding the preceding sentence, the portion of the Signal Route upon the Pole shall not be underground but shall be within the Pole. If the Boundary Plan does not show a clearly defined and correctly labeled “Signal Route” area, then no signal route area is available for Wireless Provider’s use and any signal route for Wireless Provider’s use must be separately authorized by Town. 2.5 Power and Telephone Service. Nothing herein grants permission for Wireless Provider to use any portion of power, telephone or other service routes, if any. Wireless Provider acknowledges that use of the public street Right-of-way or public utility easements for these purposes, if any, is governed by Town’s normal Right-of-way rules and policies, and by the franchise agreements between the Town and the electrical and telephone service providers. 2.6 Rights in Adjacent Land. Wireless Provider's rights are expressly limited to the real property defined as the “Use Areas” an issued Encroachment Permit. Without limitation, in the event any public Right -of- way or other public or private property at or adjacent to the Use Areas is owned, dedicated, abandoned or otherwise acquired, used, improved or disposed of by Town, such property shall not accrue to Wireless Provider but shall be the Town’s property and not subject to the Use Areas. 2.7 Variation in Area. In the event the Use Areas consist of more or less than any stated area, Wireless Provider's obligations hereunder shall not be increased or diminished. Meeting Packet Page 217 of 311 Revised 10.6.2026 2.8 Condition of Title. Wireless Provider shall not have power to amend, modify, terminate or otherwise change the Site Documents or create new Site Documents. 2.8.1 Town does not warrant its own or any other person’s title to or rights to use the Use Areas or any other property. 2.8.2 Wireless Provider shall pay, indemnify, defend and hold harmless Town and its agents and representatives of, from and against any and all claims, demands, damages, expenses, interest or penalties of any kind or nature whatsoever, including attorneys', arbitrators' and experts' fees and court costs that arise from or relate to Wireless Provider’s non-compliance with the Site Documents. 2.9 Condition of Use Areas. The Use Areas are being made available in an “as is” condition without any express or implied warranties of any kind, including without limitation any warranties or representations as to their condition or fitness for any use. 2.10 No Real Property Interest. Notwithstanding any provision hereof to the contrary, and notwithstanding any negotiation, correspondence, course of performance or dealing, or other statements or acts by or between the parties, Wireless Provider's rights herein are limited to use and occupation of the Use Areas for the Permitted Uses. 2.11 Limited Rights in Use Areas. Wireless Provider's rights in the Use Areas are limited to the specific rights expressly granted in Wireless Provider’s approved License Agreement. 2.12 Reserved Right and Competing Users and Activities. Notwithstanding anything herein to the contrary, Town specifically reserves to itself and excludes from any Encroachment Permit a non -exclusive delegable right (the “Reserved Right”) over the entire Use Areas for all manner of real and personal improvements and for streets, sidewalks, trails, landscaping, utilities and every other land use of every description. Without limitation: 2.12.1 Competing Users. Wireless Provider accepts the risk that Town and others (the “Competing Users”) may now or in the future install their facilities in the Use Areas in locations that make parts of the Right-of-way unavailable for Wireless Provider’s use. 2.12.2 Competing Activities. Wireless Provider accepts the risk that there may now or in the future exist upon the Use Areas Meeting Packet Page 218 of 311 Revised 10.6.2026 all manner of work and improvements upon the Use Areas (the “Competing Activities”). The Competing Activities include without limitation any and all laying construction, erection, installation, use, operation, repair, replacement, removal, relocation, raising, lowering, widening, realigning or other dealing with any or all of the following, whether above, upon or below the surface of the Use Areas and whether occasioned by existing or proposed uses of the Right-of-way or existing or proposed uses of adjoining or nearby land: 2.12.2.1 All manner of streets, alleys, sidewalks, trails, ways, traffic control devices, subways, tunnels, trains and gates of every description, and all manner of other transportation facilities and their appurtenances. 2.12.2.2 All manner of pipes, wires, cables, conduits, sewers, pumps, valves, switches, conductors, connectors, poles, supports, access points and guy wires of every description, and all manner of other utility facilities and their appurtenances. 2.12.2.3 All manner of drains, bridges, viaducts, overpasses, underpasses, culverts, markings, balconies, porches, overhangs and other encroachments of every description and all manner of other facilities and their appurtenances. 2.12.2.4 All other uses of the Right-of-way that Town may permit from time to time. 2.12.3 Town’s Rights Cumulative. All of Town’s Reserved Rights under various provisions of the License Agreement, these Terms and Encroachment Permits shall be cumulative to each other. 2.12.4 Use Priorities. These Terms do not grant to Wireless Provider or establish for Wireless Provider any exclusive rights or priority in favor of Wireless Provider to use the Use Areas. Wireless Provider shall not obstruct or interfere with or prevent any Competing User from using the Use Areas. 2.12.5 Regulation. Town shall have full authority to regulate use of the Use Areas and to resolve competing demands and preferences regarding use of the Use Areas and to require Wireless Provider to cooperate and participate in implementing Meeting Packet Page 219 of 311 Revised 10.6.2026 such resolutions. Without limitation, Town may take any or all of the following into account in regulating use of the Use Areas: 2.12.5.1 All timing, public, operational, financial and other factors affecting existing and future proposals, needs and plans for Competing Activities. 2.12.5.2 All other factors Town may consider relevant, whether or not mentioned in the License Agreement, these Terms and Encroachment Permit(s). 2.12.5.3 Differing regulatory regimes or laws applicable to claimed rights, public benefits, community needs and all other factors relating to Competing Users and Competing Activities. 2.12.6 Communications Equipment Relocation. Upon one hundred eighty (180) days’ notice from Town, Wireless Provider shall temporarily or permanently relocate or otherwise modify the Communications Equipment Relocation (the “Relocation Work”) as follows: 2.12.6.1 Wireless Provider shall perform the Relocation Work at its own expense when required by Town’s town manager or designee. 2.12.6.2 The Relocation Work includes all work determined by Town to be necessary to accommodate Competing Activities, including without limitation temporarily or permanently removing, protecting, supporting, disconnecting or relocating any portion of the Communications Equipment. 2.12.6.3 Town may perform any part of the Relocation Work that has not been performed within the allotted time. Wireless Provider shall reimburse Town for its actual costs in performing any Relocation Work. Town has no obligation to move Wireless Provider’s, Town’s or others’ facilities. 2.12.6.4 Town and not Wireless Provider shall be entitled to use any of Wireless Provider’s facilities that are abandoned in place or that are not relocated on Town’s request. Meeting Packet Page 220 of 311 Revised 10.6.2026 2.12.6.5 All Relocation Work shall be subject to and comply with all other provisions of the License Agreement. 2.12.7 Disruption by Competing Users. Neither Town nor any agent, contractor or employee of Town shall be liable to Wireless Provider, its customers or third parties for any service disruption or for any other harm caused them or the Communications Equipment due to Competing Users or Competing Activities. 2.12.8 Emergency Disruption by Town. Town may remove, alter, tear out, relocate or damage portions of the Communications Equipment in the case of fire, disaster, or other emergencies if Town’s town manager or designee deems such action to be reasonably necessary under the circumstances. In such event, neither Town nor any agent, contractor or employee of Town shall be liable to Wireless Provider or its customers or third parties for any harm so caused to them or the Communications Equipment. When practical, Town shall consult with Wireless Provider in advance to assess the necessity of such actions and to minimize to the extent practical under the circumstances damage to and disruption of operation of the Communications Equipment. In any event, Town shall inform Wireless Provider after such actions. Wireless Provider’s work to repair or restore the Communications Equipment shall be Relocation Work. 2.12.9 Public Safety. If the Communications Equipment or any other Wireless Provider equipment, improvements or activities present any immediate hazard or impediment to the public, to Town, to Town’s equipment or facilities, to other improvements or activities within or without the Use Areas, or Town’s ability to safely and conveniently operate the Right-of- way or perform Town’s utility, public safety or other public health, safety and welfare functions, then Wireless Provider shall immediately remedy the hazard, comply with Town’s requests to secure the Street Parcel, and otherwise cooperate with Town at no expense to Town to remove any such hazard or impediment. Wireless Provider’s work crews shall report the Use Areas within four (4) hours of any request by Town under this paragraph (the “RF Safety Paragraph”). 2.13 Third Party Permission. There may be portions of the Right-of-way or other areas that for any reason have limited Right -of-way dedications or that have regulatory use restrictions imposed by a third party (“Third Party”). Areas subject to such restrictions or regulations by Third Parties are referred to as “Third Party Areas” and communications equipment may not be built Meeting Packet Page 221 of 311 Revised 10.6.2026 without permission from the Third Party or Third Parties that have property rights or regulatory authority over a specific Third Party Area. Wireless Provider’s right to use any Use Areas shall be suspended, but not its obligations with respect thereto, during any period that a Third Party Permission is not in effect. 3. DURATION; EXTENSIONS. 3.1 Term. The original term of each License Agreement shall be for a period of ten (10) years commencing on the effective date stated therein (“Initial Term”). The Term of any associated Encroachment Permits issued to Wireless Provider shall be the same as Wireless Provider’s approved License Agreement. 3.2 Extensions. The term of the License Agreement may be extended for one (1) additional ten (10) year period (“Extension Term”) subject to consent by Town and Wireless Provider, which either may withhold in its sole and absolute discretion. Both Town and Wireless Provider shall be deemed to have elected to extend unless Town or Wireless Provider, respectively, gives notice to the contrary to the other at least ninety (90) days prior to the end of the initial Term. 3.3 Holding Over. In any circumstance whereby Wireless Provider would remain in possession or occupancy of the Use Areas after the expiration of this License Agreement (as extended, if applicable), such holding over shall not be deemed to operate as a renewal or extension of the License Agreement or Encroachment Permits, but shall only create a use right from month to month that may be terminated at any time by Town upon thirty (30) days’ notice to Wireless Provider, or by Wireless Provider upon sixty (60) days’ notice to Town. 3.4 Town’s Right to Cancel. Notwithstanding anything contained herein to the contrary, Town shall have the unconditional right, with or without cause, to terminate any Encroachment Permit for reasons including but not limited to street widening, Right-of-way abandonment, or development that may impact the location of the site, upon one hundred eighty (180) days’ prior written notice given at any time after the first one hundred eighty (180) days. 3.5 Wireless Provider's Right to Cancel. Wireless Provider shall have the unilateral right to terminate any License Agreement without cause upon thirty (30) days’ prior written notice. Wireless Provider has no right to terminate any time after an event of default by Wireless Provider has occurred (or an event has occurred that would become a default after passage of time or giving of notice). Meeting Packet Page 222 of 311 Revised 10.6.2026 3.6 Removal and Restoration Obligations. Upon expiration or termination of any License Agreement or Encroachment Permit, or any abandonment of any Wireless Facilities, Wireless Provider shall remove its Wireless Facilities from the Right-of-way, at is sole cost and expense as provided in Section 12.4 hereto. 4. WIRELESS PROVIDER’S PAYMENTS. Wireless Provider shall make payments to Town as follows: 4.1 Use Fee Items. Wireless Provider shall pay to Town each of the following separate and cumulative amounts (collectively the “Use Fees”): 4.1.1 An annual amount (the “Base Use Fee”). 4.1.2 An amount (the “Application Fee”) based on Wireless Provider’s application and permit review and other costs as set out below. 4.1.3 An amount (the “Violation Use Fee”) based on certain breaches by Wireless Provider of the License Agreement as set out below. 4.1.4 All other amounts required by the License Agreement. 4.2 Base Use Fee Amount. The amount of Base Use Fee Wireless Provider shall pay to Town for each year of this Agreement shall be the total of all applicable fee line items for wireless communications facilities (including without limitation “antenna base fee” and “ground equipment fee”, as applicable) as set out in the then current fee schedule as it may be amended from time to time by Town’s town council. 4.3 Application Fee Amount. The amount of the Application Fee for Small Wireless Facilities under A.R.S. § 9-592 shall be Seven Hundred Fifty Dollars ($750.00) and the Application Fee for wireless sites under A.R.S. § 9-594 shall be One Thousand Dollars ($1000.00). Nothing herein shall prevent the Town from charging any other applicable fees ordinarily charged by the Town for review of plans, issuance of permits, and inspection of Wireless Provider’s work upon the Use Areas (including, without limitation, encroachment permits, traffic control fees, technology fees) as set out in the then current fee schedule as it may be amended from time to time by Town’s town council. 4.4 Use Fees Cumulative. All items of Use Fees shall be cumulative and separate from each other. Meeting Packet Page 223 of 311 Revised 10.6.2026 4.5 Use Fee Schedule. Provider shall pay all Use Fees at the times and in the amounts specified by Town’s normal processes. Town’s failure to collect any item of the Use Fees does not waive Wireless Provider’s liability for such Use Fee, nor shall such failure be deemed a waiver by the Town to collect such Use Fee thereafter. 4.6 Letter of Credit. The Initial Letter of Credit amount shall be based upon the Wireless Provider’s good faith projection of the number of sites to be constructed within the Town of Fountain Hills during the current calendar year. The Initial Letter of Credit shall be received by the Town before any construction and encroachment permits are issued as follows: 4.6.1 The amount of the letter of credit shall be as follows: Thirty Thousand Dollars ($30,000.00) for up to ten (10) wireless sites; Sixty Thousand Dollars ($60,000) for eleven (11) to twenty (20) wireless sites; One Hundred Five Thousand Dollars ($105,000) for twenty one (21) to thirty five (35) wireless sites; One Hundred Eighty Thousand Dollars ($180,000) for thirty six (36) to sixty (60) wireless sites; Three Hundred Thousand Dollars ($300,000) for sixty one (61) to one hundred (100) wireless sites; Four Hundred Fifty Thousand Dollars ($450,000) for one hundred one (101) to one hundred fifty (150) wireless sites; Six Hundred Seventy Five Thousand Dollars ($675,000) for one hundred fifty one (151) to two hundred twenty five (225) wireless sites; One Million Fifty Thousand Dollars ($1,050,000) for two hundred twenty six (226) to three hundred fifty (350) wireless sites; One Million Five Hundred Thousand Dollars ($1,500,000) for three hundred fifty one (351) to five hundred (500) wireless sites; Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) for five hundred one (501) to seven hundred fifty (750) wireless sites; and Three Million Dollars ($3,000,000) for seven hundred fifty one (751) to one thousand (1,000) wireless sites. If the number of Wireless Provider’s wireless sites is more than one thousand (1,000), the Three Million Dollar ($3,000,000) letter of credit shall remain in effect and the letter of credit for the wireless sites in excess of one thousand sites shall be calculated using the schedule provided in this subsection. 4.6.2 The Town will determine at least once annually if the number of Wireless Provider’s wireless sites that are licensed require that the letter of credit be upgraded to a higher amount. If Town requires a new letter of credit, it shall provide formal notice in writing to the Wireless Provider. The Wireless Provider must provide the new letter of credit within 45 days of receiving written notice. Meeting Packet Page 224 of 311 Revised 10.6.2026 4.6.3 The letter of credit is a security deposit for Wireless Provider’s performance of all of its obligations under these Terms within the Town of Fountain Hills. 4.6.4 The letter of credit shall meet the requirements listed on Exhibit “B” attached hereto. 4.6.5 Wireless Provider shall provide and maintain the letter of credit during the entire term of the License Agreement as follows: 4.6.5.1 Wireless Provider shall cause the original letter of credit to be delivered to Town’s Development Services Director. 4.6.5.2 Wireless Provider shall pay all costs associated with the letter of credit, regardless of the reason or manner such costs are required. 4.6.5.3 Within ten (10) business days after Town gives Wireless Provider notice that Town has drawn on the letter of credit, Wireless Provider shall cause the letter of credit to be replenished to its prior amount. 4.6.6 Town may draw on the letter of credit upon any Event of Default, and in the following circumstances whether or not they are an Event of Default: 4.6.6.1 Wireless Provider fails to cause the letter of credit to be renewed, extended, increased in amount or otherwise maintained as required by these Terms. 4.6.6.2 Wireless Provider fails to make monetary payments as required by these Terms. 4.6.6.3 The issuer of the letter of credit fails to immediately honor a draft on the letter of credit or otherwise repudiates or fails to honor the letter of credit. 4.6.7 Town shall also have such additional rights regarding the letter of credit as may be provided elsewhere in the License Agreement. Meeting Packet Page 225 of 311 Revised 10.6.2026 4.7 Late Fees. Any fee payable under this Agreement is deemed paid only when Town actually receives good cash payment. Should any fee not be paid on or before the date due, a late fee shall be added to the amount due in the amount of the greater of ten percent (10%) of the amount due, or One Hundred Dollars ($100.00). Furthermore, any fee that is not timely paid shall accrue simple interest at the rate of one and one-half percent (1 ½ %) per month from the date the amount first came due until paid. Wireless Provider expressly agrees that the foregoing represent fair and reasonable estimates by Town and Wireless Provider of Town’s costs (such as accounting, administrative, legal and processing costs, etc.) in the event of a delay in payment of the fee. Town shall have the right to allocate payments received from Wireless Provider among Wireless Provider’s obligations. 4.8 Fee Amounts Cumulative. All amounts payable by Wireless Provider hereunder or under any tax, assessment or other existing or future ordinance, law or other contract or obligations to the Town of Fountain Hills or the State of Arizona shall be cumulative and payable in addition to each other payment required hereunder, and such amounts shall not be credited toward, substituted for, or setoff against each other in any manner. 5. USE RESTRICTIONS. Wireless Provider's use and occupation of the Use Areas shall in all respects conform to all and each of the following cumulative provisions: 5.1 Permitted Uses. Wireless Provider shall use the Use Areas solely for the Permitted Uses and shall conduct no other activity at or from the Use Areas without Town’s prior written consent, which may be withheld in Town’s sole and absolute discretion. 5.2 Enclosure Use. Wireless Provider shall use the Enclosure solely for locating utility cabinets and housing the Communications Equipment used for the Antennas. 5.3 Small Wireless Facility. Wireless Provider may install a Small Wireless Facility, as defined in A.R.S. 9-591(19), to be limited to: 5.3.1 All antennas, including the antenna’s exposed elements, are located inside an enclosure of not more than six (6) cubic feet in volume, and 5.3.2 All other wireless equipment associated with the facility is cumulatively not more than twenty-eight (28) cubic feet in volume. Meeting Packet Page 226 of 311 Revised 10.6.2026 5.3.3. The following ancillary equipment is not included in the equipment volume: electric meter, concealment elements, telecom demarcation box, grounding equipment, power transfer switch, cutoff switch, and vertical cable runs. 5.4 Communications Operations Restriction. Pursuant to A.R.S. 9- 592(F)(3), Wireless Provider shall not install, operate, or allow the use of equipment, methodology or technology that interferes or is likely to interfere with the optimum effective use or operation of Town's existing or future fire, emergency or other communications equipment, methodology or technology (i.e., voice or other data carrying, receiving or transmitting equipment). If such interference should occur, Wireless Provider shall immediately discontinue using the equipment, methodology or technology that causes the interference until Wireless Provider takes corrective measures to alter the Communications Equipment to eliminate such interference. Any such corrective measures shall be made at no cost to Town. Wireless Provider shall give to Town advance written notice containing a list of the radio frequencies Wireless Provider is using at the Use Areas and shall give advance written notice to Town of any change in frequencies. 5.5 Other Equipment. Wireless Provider shall not disturb or otherwise interfere with any other antennas or other equipment Town or an authorized third party may have already installed or may yet install upon the Street Parcel. 5.6 Signs. All signage is prohibited except in compliance with the following requirements: 5.6.1 Wireless Provider shall install and thereafter maintain the following signs and other markings as reasonably determined by Town from time to time: 5.6.1.1 All signs and markings required for safe use of the Use Areas by Town, Wireless Provider and other persons who may be at the Use Areas at any time for any reason. 5.6.1.2 Any signage Town may request directing parking, deliveries and other vehicles and other users to comply with this License Agreement. 5.6.1.3 Warning signs listing only Wireless Provider's name, permanent business address, telephone number, emergency telephone number, and any information required by law. Meeting Packet Page 227 of 311 Revised 10.6.2026 5.6.2 All signage not expressly allowed by these Terms is prohibited. 5.6.3 The location, size, content and style of each sign shall be subject to the provisions of the applicable sign ordinance and shall comply with Town’s sign programs as the same may change from time to time. Wireless Provider shall update signs, at Wireless Provider’s sole cost and expense, as required to comply with changes in the applicable sign ordinance and Town’s sign programs. 5.6.4 Wireless Provider shall design, make, install and maintain all signage in a first class, professional manner without broken panels, faded or peeling paint or other damage. Town reserves the right to require Wireless Provider to install, at Wireless Provider’s cost, new or updated signage if the existing signage is not compliant with this Agreement. 5.6.5 Wireless Provider shall bear all costs pertaining to the erection, installation, operation, maintenance, replacement and removal of all signs including, but not limited to, the application for and obtaining of any required sign, building or other permits regardless of the reason for any such activity, even if such activity is required by Town pursuant to these Terms. 5.6.6 The requirements of this paragraph apply to all signs, designs, monuments, decals, graphics, posters, banners, markings, and other manner of signage. 5.7 Wireless Provider’s Lighting. Except for security lighting temporarily operated with Town’s approval from time to time, Wireless Provider shall not operate outdoor lights at the Use Areas. 5.8 Noise. Except during construction permitted under the License Agreement and for burglar alarms and other safety devices, outdoor loud speakers, sirens or other devices for making noise are prohibited. All equipment shall be operated so that sound coming therefrom is compliant with Section 11-1-7 of the Town Code and does not exceed the ambient noise level at the boundary of the Street Parcel. The preceding sentence does not apply to use of normal, properly maintained construction equipment used as permitted by the approved License Agreement or permit issued to Wireless Provider by the Town, to infrequent use of equipment that is as quiet or quieter than a typical well maintained gasoline powered passenger automobile, to use of an air conditioning unit that is no noisier than a typical well maintained residential air conditioning unit. Meeting Packet Page 228 of 311 Revised 10.6.2026 5.9 Limited Access. It is Wireless Provider’s and not Town’s responsibility to keep unauthorized persons from accessing the Communications Equipment and the Exclusive Areas. 5.10 Standards of Service. Wireless Provider shall operate the Use Areas in a first-class manner, and shall keep the Use Areas attractively maintained, orderly, clean, neat and tidy at all times. Wireless Provider shall not allow any person or persons in or about the Use Areas related to Wireless Provider’s operations who shall fail to be clean, courteous, efficient and neat in appearance. 5.11 Wireless Provider's Agent. Wireless Provider shall at all times retain on call available to Town by telephone an active, qualified, competent and experienced person to supervise all activities upon the Use Areas and operation of the Communications Equipment. Wireless Provider’s agent shall be authorized to represent and act for Wireless Provider in matters pertaining to all emergencies and the day-to-day operation of the Right-of- way and all other matters affecting a License Agreement or Encroachment Permit. Wireless Provider shall also provide notice to Town of the name, street address, electronic mail address, and regular and afterhours telephone number of a person to handle Wireless Provider's affairs and emergencies at the Right-of-way. Any change shall be given in writing to Town’s Development Services Director in the manner stated for notices required herein. ‘ 5.12 Coordination Meetings. Wireless Provider shall meet with Town and other Right-of-way users from time to time as requested by Town to coordinate and plan construction on the Use Areas and all matters affected by these Terms. 5.13 Toxic Substances. Wireless Provider’s activities upon or about the Use Areas shall be subject to the following regarding any hazardous or toxic substances, waste or materials or any substance now or hereafter subject to regulation under the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601, et seq., the Arizona Hazardous Waste Management Act, A.R.S. §§ 49 -901, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et seq., the Toxic Substances Control Act, 15 U.S.C. §§ 2601, et seq., or any other federal, state, county, or local law pertaining to hazardous substances, waste or toxic substances and their reporting requirements (collectively “Toxic Substances”): 5.13.1 Wireless Provider understands the hazards presented to persons, property and the environment by dealing with Toxic Substances. Town has made no warranties as to whether the Use Areas contain actual or presumed asbestos or other Toxic Substances. Meeting Packet Page 229 of 311 Revised 10.6.2026 5.13.2 Within twenty-four (24) hours after discovery by Wireless Provider of any Toxic Substances, Wireless Provider shall report such Toxic Substances to Town in writing. Within fourteen (14) days thereafter, Wireless Provider shall provide Town with a written report of the nature and extent of such toxic substances found by Wireless Provider. 5.13.3 Disturbance of Toxic Substances. Prior to undertaking any construction or other significant work, Wireless Provider shall cause the Use Areas to be inspected to prevent disturbance of potential asbestos or other Toxic Substances. Prior to any work of any description that bears a material risk of disturbing potential asbestos or other Toxic Substances, Wireless Provider shall cause the contractor or other person performing such work to give to Town written notice by the method described in these Terms to the effect that the person will inspect for Toxic Substances, will not disturb Toxic Substances, and will indemnify, defend and hold Town harmless against any disturbance in Toxic Substances in the course of the contractor’s or other person’s work. Wireless Provider shall cause any on-site or off-site storage, inspection, treatment, transportation, disposal, handling, or other work involving Toxic Substances by Wireless Provider in connection with the Use Areas to be performed by persons, equipment, facilities and other resources who are at all times properly and lawfully trained, authorized, licensed, permitted and otherwise qualified to perform such services. Wireless Provider shall promptly deliver to Town copies of all reports or other information regarding Toxic Substances. 5.14 Required Operation. During the entire term of the License Agreement and associated Encroachment Permit(s), and any renewals or extensions thereof, Wireless Provider shall actively and continuously operate the Communications Equipment twenty -four (24) hours per day, seven (7) days per week, for the Permitted Uses. Notwithstanding anything contained in this paragraph to the contrary, the operation requirements of this paragraph shall be effective commencing on the completion of the Project and shall continue through the date the License Agreement terminates or expires for any reason. In the event of relocation of the Communications Equipment or damage to the Use Areas severe enough that the Communications Equipment cannot reasonably be operated during repairs, the operation requirements of this paragraph shall be suspended during the time specified by these Terms for accomplishing repair of such damage or relocation of the Communications Equipment. Wireless Provider may temporarily cease operating the Communications Equipment for short periods necessary to test, repair, service or upgrade the Communications Meeting Packet Page 230 of 311 Revised 10.6.2026 Equipment. Notwithstanding the foregoing to the contrary, any suspension in operations, whether or not authorized pursuant to the License Agreement, shall not serve to extend any Term of the License Agreement. 5.15 Actions by Others. Wireless Provider shall be responsible to ensure compliance with the License Agreement by all persons using the Right -of- way through or under Wireless Provider. 6. WIRELESS PROVIDER’S IMPROVEMENTS. All of Wireless Provider‘s improvements and other construction work whether or not specifically described herein upon or related to the Use Areas (collectively “Wireless Provider's Improvements”) shall comply with the following: 6.1 Wireless Provider’s Improvements. Wireless Provider’s Improvements include without limitation, all modification, replacement, repairs, installation, construction, grading, structural, utility, lighting, plumbing, sewer or other alterations, parking or traffic alterations, removal, demolition or other cumulatively significant construction or similar work of any description and all installation or alteration of the Communications Equipment. 6.2 Zoning and Similar Approval Process. The zoning processes, building permit processes, Right-of-way management policies and similar regulatory requirements that apply to Wireless Provider’s Improvements are completely separate from the plans approval processes set forth in these Terms. Wireless Provider’s satisfaction of any requirement set forth these Terms does not substitute for compliance with any regulatory requirement. Wireless Provider’s satisfaction of any regulatory requirement does not substitute for compliance with any requirement of these Terms. Wireless Provider must make all submittals and communications regarding the requirements of these Terms through Town’s Development Services Director and not through other staff. Wireless Provider shall be responsible to directly obtain all necessary permits and approvals from any and all governmental or other entities having standing or jurisdiction over the Use Areas. Wireless Provider bears sole responsibility to comply with all stipulations and conditions that are required in order to secure such rezoning and other approvals. Notwithstanding anything in this paragraph to the contrary, to the extent regulatory requirements and requirements of these Terms are identical, compliance with regulatory requirements shall constitute compliance with these Terms and vice versa. 6.2.1 Batching Sites for Approval. Only sites that do not have a new or a replacement pole required for the antennas, and do not have any underground cables, conduit, and foundations, are eligible for batch processing of the applications. Meeting Packet Page 231 of 311 Revised 10.6.2026 6.3 Relationship of Plans Approval to Regulatory Processes. Wireless Provider’s submission of plans under these Terms, Town’s approval of plans for purposes of these Terms, and the plans approval process herein shall be separate and independent of all development, zoning, design review and other regulatory or similar plans submittal and approval processes, all of which shall continue to apply as provided under state law, in addition to the requirements of these Terms and its approvals. BUILDING PERMITS, ZONING CLEARANCES, OR ANY OTHER GOVERNMENTAL REVIEWS OR ACTIONS DO NOT CONSTITUTE APPROVAL OF ANY PLANS FOR PURPOSES OF THE LICENSE AGREEMENT. 6.4 Town’s Fixtures and Property. Wireless Provider shall not remove, alter or damage in any way any improvements or any personal property of Town upon the Use Areas without Town’s prior written approval. In all cases, Wireless Provider will repair any damage or other alteration to Town’s property caused by Wireless Provider or its contractors, employees or agents to as good or better condition than existed before the damage or alteration. 6.5 Design Requirements. All Wireless Provider's Improvements shall comply with the following design requirements: 6.5.1 All Wireless Provider's Improvements shall be contained entirely within the Use Areas and without any encroachment or dependence upon any other property, except for permitted utility service. 6.5.2 Any changes to utility facilities shall be strictly limited to the Use Areas, shall not affect utilities used by Town or any authorized users thereof, and shall be undertaken by Wireless Provider at its sole cost and expense. 6.5.3 The Antennas and other Communications Equipment shall be properly designed, installed and maintained so as not to create a risk of damage to the Pole, to persons or property upon or using the Street Parcel or Town’s other property. 6.5.4 To the extent requested by Town, Wireless Provider’s plans shall include a description of construction methods employed to address environmental issues affecting or affected by the Use Areas and protect other facilities at the Street Parcel and surrounding properties. 6.5.5 All specifications set forth in the Town of Fountain Hills’s Design Standards for Small Wireless Facilities in the Right-of-Way, attached here to as Exhibit “A.” Meeting Packet Page 232 of 311 Revised 10.6.2026 6.6 Approval Required. Wireless Provider shall not construct any Wireless Provider's Improvements (including work on adjacent public lands, if applicable) without having first received an executed License Agreement, written plans approval from Town and any and all permits deemed necessary by the Town. Such consent requirement shall apply to all improvements, furnishings, equipment, fixtures, paint, wall treatments, utilities of every description, communications cabling and other construction work of any description as described in all plans heretofore or hereafter delivered by Wireless Provider to Town. Such consent requirement does not apply to work to the Communications Equipment confined completely inside the Enclosure and not visible, audible, or otherwise discernible outside the Enclosure. 6.7 Effect of Plans Approval. Wireless Provider shall submit engineering and construction plans to the Town for review and approval. Town's approval of plans submitted shall be for purposes of these Terms only and shall constitute irrevocable approval (but only at the level of detail of the applicable stage of the review process) of the matters plainly shown on the plans approved. Town shall not reject subsequent plans to the extent the matter to which Town objects was plainly shown on plans previously approved by Town. However, Town is not precluded from objecting to matters not previously approved, changes to plans, matters not previously clearly disclosed on approved plans, or refinements or implementation of matters previously approved. 6.8 Plans Required. Wireless Provider’s design of all Wireless Provider’s Improvements shall occur in three stages culminating in final working construction documents for the Wireless Provider’s Improvements (the “Final Plans”). The three stages are, in order of submission and in increasing order of detail, as follows: 6.8.1 Conceptual plans showing the general layout, locations, elevations, configuration, and capacities of all significant improvements, topographical features, pedestrian and vehicular ways, buildings, utilities, and other features significantly affecting the appearance, design, function or operation of each element of Wireless Provider’s Improvements. 6.8.2 Preliminary plans showing all surface finishes and treatments, finished elevations, general internal and external design (including without limitation colors, textures and materials), mechanical, communications, electrical, plumbing and other utility systems, building materials, landscaping and all other elements necessary prior to preparation of final working construction documents and showing compliance with all Meeting Packet Page 233 of 311 Revised 10.6.2026 requirements of these Terms. The preliminary plans shall show all detail necessary prior to preparation of Final Plans. 6.8.3 Final Plans. In addition to the information that Town required for Preliminary plans, the Final Plans shall include a title report for the Use Area and the Shared Use Area, engineering design documents for the pole foundation, pole structural design, and other generally required engineering specifications for construction drawings or “CD” plans for permits. 6.9 Approval Process. The following procedure shall govern Wireless Provider's submission to Town of all plans for Wireless Provider’s Improvements, including any proposed changes by Wireless Provider to previously approved plans: 6.9.1 All plans Wireless Provider submits under these Terms shall show design, appearance, capacity, views, and other information reasonably deemed necessary by Town for a complete understanding of the work proposed, all in detail reasonably deemed appropriate by Town for the level of plans required herein. 6.9.2 Wireless Provider shall deliver all plans submissions for non-regulatory approvals required herein directly to Town’s Development Services Director and shall clearly label the submissions to indicate that they are submitted pursuant to the Terms and not for building permits, zoning or other approvals. Each submittal of plans by Wireless Provider for Town’s review shall be submitted using the Town’s electronic application process. 6.9.3 All construction plans shall be prepared by qualified registered professional engineers. 6.9.4 Town and Wireless Provider shall endeavor to resolve design and construction issues to their mutual satisfaction but, in the event of an impasse for any reason or however arising, in light of Town’s ownership and other uses of the Use Areas, and as a condition of Town’s entering into a License Agreement or issuing an Encroachment Permit, final decision authority regarding all design and construction issues shall rest with Town. 6.9.5 All Wireless Provider’s Improvements shall comply with all requirements of law, any applicable insurance contracts and these Terms. Meeting Packet Page 234 of 311 Revised 10.6.2026 6.10 Cost of Wireless Provider Improvements. All Wireless Provider's Improvements shall be designed and constructed by Wireless Provider at Wireless Provider's sole cost and expense, including without limitation any alteration or other change to Town’s equipment or other improvements or property that may occur. In no event shall Town be obligated to compensate Wireless Provider in any manner for any of Wireless Provider's Improvements or other work provided by Wireless Provider during or related to the term of any approved License Agreement and Encroachment Permit(s). Wireless Provider shall timely pay for all labor, materials, work, and all professional and other services related thereto and shall pay, protect, indemnify, defend and hold harmless Town and Town’s employees, officers, contractors and agents against all claims related to such items. Wireless Provider shall bear the cost of all work required from time to time to cause the Use Areas and Town’s adjoining property (if directly affected by Wireless Provider’s work) to comply with local zoning rules, the Americans with Disabilities Act, building codes and all similar rules, regulations and other laws if such work is required because of work performed by Wireless Provider, by Wireless Provider's use of the Use Areas, or by any exercise of the rights granted to Wireless Provider under this License Agreement or associated Encroachment Permit(s). 6.11 Improvement Quality. Any and all work performed on the Use Areas by Wireless Provider shall be performed in a workman-like manner meeting or exceeding the best practices of similar facilities in Maricopa County, Arizona, and shall be diligently pursued to completion and in conformance with all building codes and similar rules. All of Wireless Provider's Improvements shall be high quality, safe, fire resistant, modern in design, and attractive in appearance, all as approved by Town through the plans approval processes described in these Terms in addition to any zoning, building code or other regulatory processes that may apply. 6.12 Ownership of Wireless Provider’s Improvements. All Wireless Provider’s Improvements (including without limitation poles and lights) except the Communications Equipment shall be and become part of the real property of Town as the same is constructed or installed. 6.13 Damage During Work. Upon performing any work upon the Right- of-way, Wireless Provider shall simultaneously restore the Right-of-way to its prior condition, as directed by Town and repair any holes, mounting surfaces or other damage whatsoever to the Right-of-way. Such work shall include revegetation and appropriate irrigation systems for revegetated areas. 6.14 Replacement Pole. If Town approves a Wireless Provider proposal to install Antennas on a Town owned pole, then in addition to the other requirements, the following shall apply: Meeting Packet Page 235 of 311 Revised 10.6.2026 6.12.1 Wireless Provider shall provide and deliver to Town a replacement pole, including mast arm, so that a replacement is immediately available to Town in case the original pole is damaged. 6.12.2 If Town uses a replacement pole, then Wireless Provider shall provide another replacement pole. 6.12.3 Upon installation of a replacement pole, the Town will determine if the original pole, mast arm(s), signal head(s), and light fixture(s) shall be delivered by Wireless Provider to the Town’s Corporation Yard or if the Wireless Provider shall dispose of the original pole, mast arm, signal head and light fixture. 6.12.4 All performance under this paragraph shall be at Wireless Provider’s expense. Town owns the original pole and all replacement poles. 6.15 Coordination with Encroachment Permit. The Street Parcel is located in Town’s public street Right-of-way. Wireless Provider shall obtain encroachment permits at Wireless Provider’s expense as follows: 6.15.1 Wireless Provider shall perform no construction work in the Right-of-way without obtaining from Town a permit giving permission to work in the Right-of-way. 6.15.2 Wireless Provider shall not alter or modify its antennas, wireless equipment or any improvements without submitting plans or drawings of the proposed alteration or modification to Town and obtaining approval from Town’s Development Services Director. 6.15.3 Wireless Provider shall not perform any work on its own antennas or wireless equipment without first obtaining from Town an encroachment permit giving it permission to work in the Right-of-way. 6.15.4 Wireless Provider shall not in any way obstruct pedestrian or vehicular traffic within the Right-of-way without first obtaining from Town a permit giving permission to obstruct traffic. 6.16 Time for Completion. Wireless Provider shall diligently and expeditiously pursue to completion the construction of all approved Wireless Provider's Improvements. Wireless Provider shall complete construction of all Wireless Provider's Improvements no later than one hundred eighty (180) Meeting Packet Page 236 of 311 Revised 10.6.2026 days of permit issuance unless Town and Wireless Provider agree to extend this period or a delay is caused by a lack of commercial power at the site. If Town, in its sole examination of the construction activity at a site, determines that Wireless Provider has not substantially performed construction at a site within one hundred eighty (180) days of the permit issuance date, Town may require the Wireless Provider to cease construction and resubmit the site for approval. 6.17 Construction Notification. Town may establish requirements for notification of nearby residents and property owners prior to construction. 6.18 Work Time and Manner Restrictions. All installation, construction, maintenance, inspection, repair and other work of any kind shall be done in a manner that does not disrupt traffic (except in compliance with appropriate permits) or nearby land uses. Without limitation, such work shall be done in compliance with applicable Town policies and directions from time to time, taking into account the various sensitivities of traffic, tourism, events, adjoining land uses, other Right-of-way uses, and all other needs and concerns that are likely to be affected by Wireless Provider’s work. 7. RF SAFETY FOR TOWN’S EMPLOYEES. Prior to performing any work on a wireless site in the Right-of-way, an employee or authorized agent of the Town will contact Wireless Provider’s Network Operations Center (the NOC”) whose information shall be located on the ground equipment or on the pole. The Town’s employee or agent shall identify himself or herself as an employee or agent of Town and the need for the RF to be turned off at the site for a specified period to perform maintenance or repair work at the site. Upon completion of the work, the Town’s employee shall contact the NOC and inform them that the site may activate the RF signals. Furthermore, as Town’s employees, agents, and representatives must have uninterrupted and safe access to the Right-of-way and all structures located thereon, Wireless Provider must comply with at least one of the following safety protocols: 7.1 Provide access to a “kill switch” for each wireless site that the Town's employees, agents, or representatives can use to turn off all power to the Wireless Provider’s Facilities while Town’s work is performed at the location. 7.2 Within 24 hours of a request, agree to send a technician with an RF monitor to confirm that all RF emitting equipment has, in fact, been deactivated, and to install all appropriate lockout tags and devices. 8. MAINTENANCE AND UTILITIES. Meeting Packet Page 237 of 311 Revised 10.6.2026 Except as expressly provided below, Wireless Provider shall be solely responsible for all maintenance, repair and utilities for the Use Areas during the term of an approved License Agreement and associated Encroachment Permit(s). Without limitation, Wireless Provider shall perform the following: 8.1 Maintenance by Town. Town has no maintenance or repair obligations for the Communications Equipment or other Wireless Provider’s Improvements. 8.2 Maintenance by Wireless Provider. Wireless Provider shall at all times repair and maintain the Use Areas at Wireless Provider's sole expense in a first-class, sound, clean, safe and attractive manner, meeting or exceeding the manner of maintenance at first class comparable facilities in Maricopa County, Arizona, as determined in Town's reasonable discretion. The preceding sentence does not require Wireless Provider to repair or maintain Town’s facilities at the Use Area unless such work is attributable in whole or in part to Wireless Provider’s use of the Use Areas. 8.3 Utility Service. Wireless Provider shall contract for and pay all charges, fees, deposits and other amounts for electricity and telephone and other data communication service to the Use Areas at the rates applicable thereto. Wireless Provider shall use no other utilities at the Use Areas, unless otherwise authorized by Town. 8.4 Utility Interruptions. Town is not responsible for any interruption of utilities to or upon the Use Areas or other difficulties related to utilities at the Use Areas. 8.5 Right of Inspection. Town shall be entitled to inspect all construction, reconstruction or installation work and to make such tests as it deems necessary to ensure compliance with the terms herein and any applicable laws and regulations. All Town plans reviews, inspections, standards and other rights and actions with relation to Wireless Provider’s Improvements are for Town’s sole and exclusive benefit and neither Wireless Provider nor any other person shall rely thereon or have any rights related thereto. The preceding sentence does not prevent Wireless Provider from relying on consents, permits or approvals Town may grant based on Town’s plans, reviews, and inspections. This right of access is in addition to access rights for Town inspectors or other employees and officers acting within their legal authority. 8.6 Construction Notification. Town may establish requirements for Wireless Provider to notify nearby residents prior to construction. 8.7 Blue Stake. Wireless Provider shall register with and comply with the local Blue Stake program. Meeting Packet Page 238 of 311 Revised 10.6.2026 9. BREACH BY WIRELESS PROVIDER. Wireless Provider shall comply with, perform and do each obligation required of Wireless Provider herein and shall cause all persons using the Use Areas through or under Wireless Provider or these Terms to do the same. Wireless Provider's failure to do so shall be a material breach by Wireless Provider of these Terms. 9.1 Events of Default. All License Agreements and Encroachment Permits are approved upon the condition that each and every one of the following events herein shall be deemed an “Event of Default” by Wireless Provider of Wireless Provider's material obligations under these Terms: 9.1.1 If Wireless Provider shall be in arrears in the payment of Use Fee and shall not cure such arrearage within ten (10) days after Town has notified Wireless Provider of such arrearage. 9.1.2 If Wireless Provider shall fail to operate the Communications Equipment (except during specific periods expressly excused herein) for a period of five (5) consecutive days or a total of thirty (30) days within any twelve (12) month period. 9.1.3 If Wireless Provider shall fail to maintain any insurance required under these Terms. Notwithstanding the preceding sentence, such failure shall not be a default if, within ten (10) days after notice from Town, Wireless Provider provides to Town the required insurance and the required evidence thereof. Such insurance must cover the past for a period adequate that there is no gap in the insurance coverage required by these Terms. 9.1.4 If the Wireless Provider’s right to use a Utility Pole expires or is terminated for any reason. 9.1.5 If Wireless Provider does not commence and diligently pursue to completion each required stage of construction of the site within the times required herein. The times specified for concluding each stage of required construction have been established far enough in advance, and have taken into account the likelihood of construction delays, so that no cure period is provided. 9.1.6 If Wireless Provider shall be the subject of a voluntary or involuntary bankruptcy, receivership, insolvency or similar Meeting Packet Page 239 of 311 Revised 10.6.2026 proceeding or if any assignment of any of Wireless Provider's or such other person’s property shall be made for the benefit of creditors or if Wireless Provider or such other person dies or is not regularly paying its debts as they come due (collectively a “Wireless Provider Insolvency”). 9.1.7 If the issuer of any letter of credit shall fail for any reason to timely and fully honor any request by Town for funds or other performance under the instrument and Wireless Provider fails to cause the issuer, or some other person, to honor the request within ten (10) days after Town notifies Wireless Provider that such request has not been honored. 9.1.8 If Wireless Provider shall fail to obtain or maintain any licenses, permits, or other governmental approvals pertaining to the Right-of-way or timely pay any taxes pertaining to the Right- of-way and does not cure such failure within thirty (30) days. 9.1.9 If Town shall be exposed to any liability, obligation, damage, cost, expense, or other claim of any description, whether or not asserted, unless Wireless Provider gives immediate notice to Town of Wireless Provider’s commitment to indemnify, defend and hold Town harmless against such claim, and Wireless Provider does in fact promptly commence and continue to indemnify, defend and hold Town harmless against such claim. 9.1.10 If Wireless Provider shall fail to meet its obligations under the RF Safety Paragraph. 9.1.11 If Wireless Provider shall engage in a pattern of repeated failure (or neglect) to timely do or perform or observe any provision contained herein. After Town has once given notice of any failure by Wireless Provider to comply with its obligations set forth in these Terms, the following shall constitute a repeated failure by Wireless Provider to comply with such provision: h. 9.1.11.1 Another failure to comply with any provision of these Terms during the following thirty (30) day period. i. 9.1.11.2 Three (3) or more failures to comply with any provision of these Terms during any ninety (90) day period. j. 9.1.11.3 Six (6) or more failures to comply with Meeting Packet Page 240 of 311 Revised 10.6.2026 any provision of these Terms during any twelve (12) month period. 9.1.12 If Wireless Provider shall fail to or neglect to timely and completely do or perform or observe any other provisions herein and such failure or neglect shall continue for a period of thirty (30) days after Town has notified Wireless Provider in writing of such failure or neglect. 9.2 Town's Remedies. Upon the occurrence of any Event of Default or at any time thereafter, Town may, at its option and from time to time, exercise at Wireless Provider’s expense any or all or any combination of the following cumulative remedies in any order and repetitively at Town’s option: 9.2.1 Terminate the License Agreement or any or all Encroachment Permits due to Wireless Provider’s breach or for any other reason, however, such termination does not terminate Wireless Provider’s obligations arising during the time simultaneous with or prior to or the termination, and in no way terminates any of Wireless Provider’s liability related to any breach of these Terms. 9.2.2 Pay or perform, for Wireless Provider's account, in Wireless Provider’s name, and at Wireless Provider's expense, any or all payments or performances required hereunder to be paid or performed by Wireless Provider. 9.2.3 Abate at Wireless Provider's expense any violation of these Terms. 9.2.4 Notwithstanding anything under these Terms to the contrary, unilaterally and without Wireless Provider’s or any other person’s consent or approval, draw upon, withdraw or otherwise realize upon or obtain the value of any letter of credit, escrowed funds, insurance policies, or other deposits, sureties, bonds or other funds or security held by Town or pledged or otherwise obligated to Town by Wireless Provider or by any third party (whether or not specifically mentioned herein) and use the proceeds for any remedy permitted by these Terms. 9.2.5 Require an additional security deposit adequate in Town's sole discretion to protect Town and the Right-of-way. 9.2.6 Require that the Wireless Provider remedy any and all violations and pay any and all outstanding fees in full (before accepting applications for new Encroachment Permits). Meeting Packet Page 241 of 311 Revised 10.6.2026 9.2.7 Assert, exercise or otherwise pursue at Wireless Provider's expense any and all other rights or remedies, legal or equitable, to which Town may be entitled, subject only to the limitation set out below on Town’s ability to collect money damages in light of the Violation Use Fee. 9.3 Violation Use Fee. Wireless Provider and Town agree that Wireless Provider’s failure to comply with the provisions herein will result in damages to Town, including but not limited to expenses related to administrative costs, staff time, field work and inspections, legal services, etc. Wireless Provider’s failure to comply with the provisions herein will result in damages in an amount that is and will be impracticable to determine. Therefore, the parties have agreed that Wireless Provider shall pay the Violation Use Fee set out below in accordance with the following (the “Violation Fee Provisions”): 9.3.1 Violation Use Fee is only intended to remedy damages that Town suffers because of Wireless Provider’s breach of this Agreement. Wireless Provider’s payment of Violation Use Fee does not in any way excuse any breach by Wireless Provider of these Terms or limit in any way Town’s obtaining any other legal or equitable remedy provided by these Terms or otherwise for such breach. For example, Wireless Provider’s obligation to pay Violation Use Fee does not in any way detract from Wireless Provider’s indemnity and insurance obligations under these Terms, which shall apply according to their terms in addition to Wireless Provider’s obligation to pay Violation Use Fee. 9.3.2 Town may elect to draw upon the letter of credit to collect the Violation Use Fee. 9.3.3 The Violation Fee Provisions and the amount of the Violation Use Fee per day or part thereof are as follows: 9.3.3.1 The amount of Six Hundred Dollars ($600.00) per day for Wireless Provider’s failure to properly restore the public Right-of-way or to correct related violations of specifications, code, ordinance or standards within ten (10) business days after Town’s notice to correct such defects. Such Violation Use Fee shall be in addition to any cost the Town may incur to restore the Right-of-way or correct the violation. 9.3.3.2 The amount of Five Hundred Dollars ($500.00) per instance of any other action or non- action by the Wireless Provider contrary to these Meeting Packet Page 242 of 311 Revised 10.6.2026 Terms herein and that is not cured after three (3) business days’ notice. 9.3.4 Violation Use Fees shall be assessed as follows: 9.3.4.1 If Town determines that Wireless Provider is liable for Violation Use Fee, then Town shall issue to Wireless Provider a notice of Town’s assessing a Violation Use Fee. The notice shall set forth the nature of the violation and the amount of the assessment. 9.3.4.2 Wireless Provider shall pay the Violation Use Fee within ten (10) days after Town’s notice. However, if the Violation Use Fee amount exceeds Five Thousand Dollars ($5,000), then the following shall apply: 9.3.4.2.1 Wireless Provider shall have thirty (30) days after the notice to pay the Violation Use Fee or give Town notice contesting the assertion of noncompliance. 9.4 Reimbursement of Town's Expenses. Wireless Provider shall pay to Town within thirty (30) days after Town’s demand any and all amounts expended or incurred by Town in performing Wireless Provider's obligations (upon Wireless Provider’s failure to perform the same after notice from Town) together with interest thereon at the rate of twelve percent (12%) per annum from the date expended or incurred by Town. 10. BREACH BY TOWN. Notwithstanding anything in these Terms to the contrary, if Town at any time is required to pay to Wireless Provider any amount or render any performance, such amount or performance is not due until thirty (30) days after notice by Wireless Provider to Town that the amount has become payable or that the performance is due. In the event a cure cannot be effected during that period, Town shall not be in default so long as Town commences cure during the period and diligently prosecutes the cure to completion provided such cure must be completed within sixty (60) days after the notice. 10.1 Right to Setoff and Credit. In addition to its other rights and remedies Town shall have the right to setoff and credit from time to time and at any time, any and all amounts due from Wireless Provider to Town, whether Meeting Packet Page 243 of 311 Revised 10.6.2026 pursuant to these Terms herein or otherwise, against any sum which may be due from Town to Wireless Provider. 11. NON-WAIVER. Wireless Provider acknowledges Wireless Provider's unconditional obligation to comply with these Terms herein. No failure by Town to demand any performance required of Wireless Provider under these Terms herein, and no acceptance by Town of any imperfect or partial performances under these Terms herein, shall excuse such performance or impair in any way Town's ability to insist, prospectively and retroactively, upon full compliance with these Terms herein. No acceptance by Town of Use Fee payments or other performances hereunder shall be deemed a compromise or settlement of any right Town may have for additional, different or further payments or performances as provided for in these Terms. Any waiver by Town of any breach of condition or covenant herein contained to be kept and performed by Wireless Provider shall not be deemed or considered as a continuing waiver and shall not operate to bar or otherwise prevent Town from declaring a default for any breach or succeeding or continuing breach either of the same condition or covenant or otherwise. No statement, bill or notice by Town or Wireless Provider concerning payments or other performances due hereunder, or failure by Town to demand any performance hereunder, shall excuse Wireless Provider from compliance with its obligations nor estop Town (or otherwise impair Town's ability) to at any time correct such notice and/or insist prospectively and retroactively upon full compliance with the License Agreement. No waiver of any description (INCLUDING ANY WAIVER OF THIS SENTENCE OR PARAGRAPH) shall be effective against Town unless made in writing by a duly authorized representative of Town specifically identifying the particular provision being waived and specifically stating the scope of the waiver. WIRELESS PROVIDER EXPRESSLY DISCLAIMS AND SHALL NOT HAVE THE RIGHT TO RELY ON ANY SUPPOSED WAIVER OR OTHER CHANGE OR MODIFICATION, WHETHER BY WORD OR CONDUCT OR OTHERWISE, NOT CONFORMING TO THIS PARAGRAPH. 12. TERMINATION. The following provisions shall apply at the expiration of the term or earlier termination of each License Agreement and Encroachment Permit: 12.1 Surviving Obligations. Expiration or termination of a License Agreement or Encroachment Permit does not terminate Wireless Provider’s obligations existing or arising prior to or simultaneous with, or attributable to, the termination or events leading to or occurring before termination. Meeting Packet Page 244 of 311 Revised 10.6.2026 12.2 Delivery of Possession. Wireless Provider shall cease using the Use Areas associated with the expired or terminated License Agreement or Encroachment Permit. Wireless Provider shall, without demand, peaceably and quietly quit and deliver up the Use Areas to Town thoroughly cleaned, in good repair with the Use Areas maintained and repaired and in as good order and condition, reasonable use and wear excepted, as the Use Areas now are or in such better condition as the Use Areas may hereafter be placed. 12.3 Confirmation of Termination. Upon expiration or termination of a License Agreement or Encroachment Permit for any reason, Wireless Provider shall provide to Town upon demand recordable disclaimers covering the Use Areas executed and acknowledged by Wireless Provider and by all persons claiming through this License Agreement, Encroachment Permit or Wireless Provider any interest in or right to use the Use Areas. 12.4 Removal of Improvements. Wireless Provider shall remove all Communications Equipment and restore the Use Areas including Utility Pole, mast arms, luminaires, or wireless support structure to its prior condition, or to a condition matching Town’s surrounding land and improvements, as directed by Town, at Wireless Provider's expense prior to normal expiration of the term of a License Agreement or Encroachment Permit; or within sixty (60) days after early termination of a License Agreement or Encroachment Permit. Without limitation, such work shall include revegetation and appropriate irrigation systems for revegetated areas. Notwithstanding anything in the License Agreement and these Terms to the contrary, Town may elect to require Wireless Provider to leave any or all construction or other items (except the Communications Equipment) in place, and all such items shall be owned by Town. Unless Town directs otherwise, all wiring, pipes and conduits shall be left in good and safe condition, in working order, with each end properly labeled and enclosed in proper junction boxes. 12.5 Prior Improvements. This article also applies to any improvements that Wireless Provider may have made to the Use Areas. 13. INSURANCE. During the entire term of any License Agreement or Encroachment Permit, Wireless Provider shall insure its property and activities at and about the Use Areas and shall provide insurance and indemnification as follows: 13.1 Insurance Required. Not later than the date of this License Agreement, and at all times thereafter when Wireless Provider is occupying or using the Use Areas in any way, Wireless Provider shall obtain and cause to be in force and effect the following insurance: Meeting Packet Page 245 of 311 Revised 10.6.2026 13.1.1 Commercial General Liability. Commercial general liability insurance with a limit of Ten Million and No/100 Dollars ($10,000,000.00) for each occurrence, a limit of Ten Million and No/100 Dollars ($10,000,000.00) for products and completed operations annual aggregate, and a limit of Ten Million and No/100 Dollars ($10,000,000.00) general aggregate limit per policy year. The policy shall cover liability arising from premises, operations, independent contractors, products, completed operations, personal injury, bodily injury, advertising injury, and liability assumed under an “insured contract” including this License Agreement. The policy will cover Wireless Provider’s liability under the indemnity provisions set forth in these Terms. The policy shall contain a “separation of insured’s” clause. 13.1.2 Automobile Liability. Automobile liability insurance with a limit of One Million Dollars ($1,000,000) for each occurrence covering any and all owned, hired, and non-owned vehicles assigned to or used in any way in connection with Wireless Provider’s use of the Right-of-way. Without limitation, such insurance shall cover hazards of motor vehicle use for loading and off loading. 13.1.3 Workers' Compensation. Such workers’ compensation and similar insurance as is required by law and employer's liability insurance with a minimum limit of One Hundred Thousand Dollars ($100,000) for each accident, One Hundred Thousand Dollars ($100,000) disease for each employee, Five Hundred Thousand Dollars ($500,000) policy limit for disease. All contractors and subcontractors must provide like insurance. 13.1.4 Special Risk Property. Unless waived by Town in writing, all risk property insurance covering damage to or destruction of all real and personal improvements to the Right- of-way, including without limitation, all improvements existing upon the Right-of-way prior to this License Agreement or hereafter constructed in an amount equal to full replacement cost of all such improvements. Such insurance shall be special causes of loss policy form (minimally including perils of fire, lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, civil commotion, theft, vandalism, malicious mischief, collapse and flood). Coverage shall include pollutant clean up and removal with minimum limits coverage of Fifty-Thousand Dollars ($50,000.00). 13.1.5 Other Insurance. Any other insurance Town may reasonably require for the protection of Town and Town's employees, officials, representatives, officers and agents (all of Meeting Packet Page 246 of 311 Revised 10.6.2026 whom, including Town, are collectively “Additional Insureds”), the Right-of-way, surrounding property, Wireless Provider, or the activities carried on or about the Right-of-way. Such insurance shall be limited to insurance a reasonable person owning, leasing, designing, constructing, occupying, or operating similar facilities might reasonably purchase. 13.2 Policy Limit Escalation. Town may elect by notice to Wireless Provider to increase the amount or type of any insurance to account for inflation, changes in risk, or any other factor that Town reasonably determines to affect the prudent amount of insurance to be provided. 13.3 Form of All Insurance. All insurance provided by Wireless Provider with respect to the Right-of-way, whether required in these Terms or not, shall meet the following requirements: 13.3.1 “Occurrence” coverage is required. 13.3.2 If Wireless Provider uses any excess insurance then such excess insurance shall be “follow form” equal to or broader in coverage than the underlying insurance. 13.3.3 Policies must also cover and insure Wireless Provider’s activities relating to the business operations and activities conducted away from the Right-of-way. 13.3.4 Within five (5) business days of receiving a written request from the Town, Wireless Provider shall provide copies of insurance certificates, insurance policies, formal endorsements or other documentation acceptable to Town that all insurance coverage required herein is provided. 13.3.5 Wireless Provider’s insurance shall be primary insurance with respect to claims arising out of Wireless Provider’s operations, activities and obligations set forth in these Terms. 13.3.6 All policies, including workers’ compensation, shall waive transfer rights of recovery (subrogation) against Town, and the other Additional Insureds. 13.3.7 All deductibles, retentions, or “self-insured” amounts shall be subject to the following: 13.3.7.1 Wireless Provider shall be solely responsible for any self-insurance amount or deductible. Meeting Packet Page 247 of 311 Revised 10.6.2026 13.3.7.2 Such amounts shall not exceed in total One Hundred Thousand Dollars ($100,000.00) per loss. At such times as Wireless Provider’s net worth is more than One Hundred Million Dollars ($100,000,000.00), such limit shall be One Million and No/100 Dollars ($1,000,000.00). 13.3.7.3 Any self-insured exposure shall be deemed to be an insured risk under this License Agreement. 13.3.7.4 Wireless Provider shall provide to the beneficiaries of all such amounts no less insurance protection than if such self-insured portion was fully insured by an insurance company of the quality and caliber required hereunder. 13.3.7.5 The right to self-insure is limited and specific to Wireless Provider and does not extend to Wireless Provider’s contractors or others. 13.3.8 All policies except workers’ compensation must name Town and the other Additional Insureds as additional insureds. Wireless Provider shall cause coverage for Additional Insureds to be incorporated into each insurance policy by endorsement with respect to claims arising out of Wireless Provider’s operations, activities and obligations under the License Agreement. 13.3.9 All policies must require the insurer to provide Town with at least thirty (30) days’ prior notice of any cancellation. The insurer's duty to notify Town of changes in coverage shall not include phrases such as “endeavor to” or “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives.” 13.3.10 All policies shall require that notices be given to Town in the manner specified for notices to Town set forth in the License Agreement and these Terms. 13.4 Insurance Certificates. Wireless Provider shall evidence all insurance by furnishing to Town certificates of insurance annually and with each change in insurance coverage. Certificates must evidence that the policy described by the certificate is in full force and effect and that the policy satisfies each requirement of these Terms applicable to the policy. For example, certificates must evidence that Town and the other Additional Meeting Packet Page 248 of 311 Revised 10.6.2026 Insureds are additional insureds. Certificates must also be in an industry standard form reasonably acceptable to Town. Wireless Provider shall provide updated certificates at Town’s request. 13.5 Acceptable Insurers. All insurance policies shall be issued by insurers acceptable to Town. At a minimum, all insurers shall be duly licensed (or qualified unlicensed non-admitted insurer) by the State of Arizona, Department of Insurance. At a minimum, all insurers shall have and maintain an A.M. Best, Inc. rating of B++ 6. 13.6 No Representation of Coverage Adequacy. By requiring insurance herein, Town does not represent that coverage and limits will be adequate to protect Wireless Provider. Town reserves the right to review any and all of the insurance policies and/or endorsements cited in these Terms but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in these Terms or failure to identify any insurance deficiency shall not relieve Wireless Provider from, nor be construed or deemed a waiver of, Wireless Provider’s obligation to maintain the required insurance at all times. 13.7 Risk of Loss. Wireless Provider assumes the risk of any and all loss, damage or claims related to Wireless Provider's use of the Right -of-way or other property of Town, Wireless Provider or third parties throughout the term of any License Agreement or Encroachment Permit. Wireless Provider shall be responsible for any and all damage to its property and equipment related to the License Agreement or Encroachment Permit. 13.8 Insurance to be Provided by Others. Wireless Provider shall cause its contractors or other persons occupying, working on or about, or using the Right-of-way pursuant to these Terms to be covered by their own or Wireless Provider’s insurance as required by these Terms. The required policy limits for commercial general liability insurance provided by such persons shall be One Million Dollars ($1,000,000) for each occurrence, One Million Dollars ($1,000,000) for products and completed operations annual aggregate, and Two Million Dollars ($2,000,000) general aggregate limit per policy year. This paragraph does not apply to persons who do not actually perform physical labor in the Right-of-way (such as Wireless Provider’s consulting design engineers). 14. INDEMNITY. In addition to all other indemnities and other obligations hereunder, to the fullest extent permitted by law, throughout the term of any License Agreement or Encroachment Permit and until all obligations and performances under or related to the License Agreement (including these Terms) are satisfied and all matters described in this Paragraph are completely resolved, Wireless Provider and all Meeting Packet Page 249 of 311 Revised 10.6.2026 other persons using, acting, working or claiming through or for Wireless Provider (if they or their subcontractor, employee or other person or entity hired or directed by them participated in any way in causing the claim in question) shall jointly and severally indemnify, defend and hold harmless Town and all other Additional Insureds for, from and against any and all claims or harm related to Wireless Provider’s use of the Right-of-way or the rights granted to Wireless Provider with respect to the Right-of-way or Wireless Provider’s exercise of its rights under these Terms (the “Indemnity”). Without limitation, the Indemnity shall include and apply to any and all allegations, demands, judgments, assessments, taxes, impositions, expenses, proceedings, liabilities, obligations, suits, actions, claims (including without limitation claims of personal injury, bodily injury, sickness, disease, death, property damage, destruction, loss of use, financial harm, or other impairment), damages, losses, expenses, penalties, fines or other matters (together with all attorney fees, court costs, and the cost of appellate proceedings and all other costs and expenses of litigation or resolving the claim) that may arise in any manner out of any use of the Right-of-way or other property pursuant to any License Agreement or Encroachment Permit or any actions, acts, errors, mistakes or omissions relating to work or services in the performance of or related to the License Agreement, including without limitation any injury or damages or cause of action claimed or caused by any employees, contractors, subcontractors, tenants, subtenants, agents or other persons upon or using the Right-of-way or surrounding areas related to Wireless Provider’s exercise of its rights under this License Agreement, including without limitation, claims, liability, harm or damages caused in part by Town or any other Additional Insured or anyone for whose mistakes, errors, omissions or negligence Wireless Provider or Town may be liable (collectively, “Claims”). As a condition to Town’s approval of any License Agreement or Encroachment Permit, Wireless Provider specifically agrees that to the extent any provision of this paragraph is not fully enforceable against Wireless Provider for any reason whatsoever, this Paragraph shall be deemed automatically reformed to the minimal extent necessary to cause it to be enforceable to the fullest extent permitted by law. The Indemnity shall also include and apply to any environmental injury, personal injury or other liability relating to Wireless Provider’s use of real property under the License Agreement or any Encroachment Permits. Notwithstanding the foregoing, the Indemnity does not apply to Claims arising only from the sole gross negligence or intentionally wrongful acts of Town or to Claims that the law prohibits from being imposed upon the indemnitor. 15. CONDEMNATION. The following shall govern any condemnation of any part of or interest in the Use Areas and any conveyance to Town or another condemnor in avoidance or settlement of condemnation or a threat of condemnation: 15.1 Termination for Condemnation. The Encroachment Permit for the Use Area shall terminate on the date (the “Condemnation Date”) that is the Meeting Packet Page 250 of 311 Revised 10.6.2026 earlier of the date title vests in the condemnor, or the date upon which the condemnor is let into possession. Notwithstanding the foregoing, if Town reasonably determines that the Use Areas continue to be suitable for Wireless Provider to conduct the Permitted Uses, Town may elect to cause the Encroachment Permit to continue to remain in effect as to the part of the Use Areas not taken and the Use Fee shall not be reduced or abated. Nevertheless, if Wireless Provider reasonably determines that the Use Areas are not suitable for Wireless Provider to conduct the Permitted Uses, then the Encroachment Permit shall terminate. 15.2 Condemnation Proceeds. Wireless Provider hereby assigns and transfers to Town Wireless Provider’s entire interest in all condemnation damages, interest, severance damages, and any other payments or proceeds of any kind relating to the condemnation (collectively the “Condemnation Proceeds”). Wireless Provider shall execute and deliver to Town assignments or other instruments requested by Town confirming such assignment and transfer. Wireless Provider shall immediately pay to Town any Condemnation Proceeds Wireless Provider may receive. The Condemnation Proceeds shall not include relocation benefits, if any, awarded specifically to Wireless Provider to cover expenses of relocating Wireless Provider’s business located at the Use Areas at the time of the condemnation, or any compensation specifically awarded to Wireless Provider for any taking of the Communications Equipment itself. Any repair, relocation or similar costs relating to the Communications Equipment shall be borne by Wireless Provider. 15.3 Power to Condemn. Wireless Provider acknowledges that Town and others from time-to-time may use the power to condemn the Use Areas or any interest therein or rights thereto. Town has not relinquished any right of condemnation or eminent domain over the Use Areas. Town does not warrant that Town will not condemn the Use Areas during the term of this License Agreement, but Town does not presently have intentions to condemn the Use Areas. 16. DAMAGE TO OR DESTRUCTION OF USE AREAS. The following provisions shall govern damage to or destruction of the Use Areas by fire, flood, explosion, the elements, the public enemy, or other casualty (collectively “Casualty Damage”): 16.1 Damage to Wireless Provider’s Improvements. Wireless Provider shall commence restoring the Casualty Damage to Wireless Provider’s Improvements within thirty (30) days after any Casualty Damage occurs. Wireless Provider shall complete the restoration work within thirty (30) days after commencement. Such work shall be subject to the plans approval process and all other requirements for Wireless Provider’s Improvements. Meeting Packet Page 251 of 311 Revised 10.6.2026 Wireless Provider shall perform all restoration work at Wireless Provider’s sole cost and expense. 16.2 Monthly Restoration Work Report. Wireless Provider shall provide to Town no later than the tenth day of each month a written narrative report of the progress of the restoration work. 17. WIRELESS PROVIDER'S RECORDS. During the entire term of any License Agreement, Wireless Provider shall keep records and provide information to Town as follows: 17.1 Scope of Information. Unless otherwise specified, all of Wireless Provider’s recordkeeping and disclosure obligations under this article are limited to the following (collectively the “Covered Information”): 17.1.1 The status of the construction, repair or restoration of Wireless Provider Improvements. 17.1.2 Information indicating whether Town or Wireless Provider is in compliance with the terms herein. 17.2 Records Inspection. At Wireless Provider’s expense, Wireless Provider shall: 17.2.1 Permit and assist Town and its representatives upon twenty-one (21) days’ notice to inspect, audit, and copy Wireless Provider's records of Covered Information. 17.2.2 Make the records of Covered Information (and reasonable accommodations for Town’s audit and inspection) available to Town at Wireless Provider's offices in Maricopa County, Arizona. 17.2.3 Cause Wireless Provider’s employees and agents and accountants to give their full cooperation and assistance in connection with Town’s access to the Covered Information. 17.3 Record Retention. Wireless Provider shall preserve records of the Covered Information in a secure place at Wireless Provider’s corporate headquarters in the continental United States for a period ending seven (7) years after the time period reported by the records. 17.4 Record Media Included. Town’s and Wireless Provider’s rights and obligations regarding the Covered Information apply regardless of the type of media, materials, or data repositories that may contain the Covered Information. Town shall have access to Covered Information contained, without limitation, in records, books, papers, documents, recordings, computer Meeting Packet Page 252 of 311 Revised 10.6.2026 data, contracts, logs, notes, ledgers, correspondence, reports, drawings, and memoranda, and any and all other sources, records and repositories of Covered Information. 17.5 Reports. Wireless Provider shall deliver to Town written reports (and, if requested by Town, a presentation to Town’s governing council or designee) covering such Covered Information as Town may request from time to time. 17.6 Standards for Records. Wireless Provider shall maintain a standard, modern system of recordkeeping for the Covered Information and shall keep and maintain proper and accurate books and other repositories of information relating to the Covered Information. 18. COMPLIANCE WITH LAW. Wireless Provider shall perform its obligations under the License Agreement (including these Terms ) and any Encroachment Permit in accordance with all federal, state, county and local laws, ordinances, regulations or other rules or policies as are now in effect or as may hereafter be adopted or amended. Without limiting in any way the generality of the foregoing, Wireless Provider shall comply with all and each of the following: 18.1 Applicability of Municipal Law. Without limitation, Wireless Provider shall comply with municipal laws as follows: 18.1.1 Wireless Provider acknowledges nothing set forth herein or by approval of a License Agreement or issuance of an Encroachment Permit constitutes, and Town has not promised or offered, any type of waiver of, or agreement to waive (or show any type of forbearance, priority or favoritism to Wireless Provider with regard to) any law, ordinance, power, regulation, tax, assessment or other legal requirement now or hereafter imposed by the Town of Fountain Hills or any other governmental body upon or affecting Wireless Provider, the Use Areas, or the Street Parcel or Wireless Provider’s use of the Use Areas, the Street Parcel or the Right-of-way. 18.1.2 All of Wireless Provider's obligations hereunder are in addition to, and cumulative upon (and not to any extent in substitution or satisfaction of), all existing or future laws and regulations applicable to Wireless Provider. 18.1.3 Town by approving this License Agreement or any Encroachment Permit cannot, and has not, relinquished or limited any right of condemnation or eminent domain over the Meeting Packet Page 253 of 311 Revised 10.6.2026 Right-of-way or any other property related to the License Agreement or Encroachment Permit, or within the Right-of-way. 18.1.4 The approval of this License Agreement or issuance of any Encroachment Permit cannot and does not impair Town’s, power to enact, apply or enforce any laws or regulations, or exercise any governmental powers affecting in any way Wireless Provider, the Use Areas, the Street Parcel, or the Right-of-way. 18.1.5 Town’s rights and remedies under this License Agreement and any Encroachment Permit for Wireless Provider’s failure to comply with all applicable laws supplement and are in addition to and do not replace otherwise existing powers of the Town of Fountain Hills or any other governmental body. 18.1.6 Wireless Provider's rights under this License Agreement and any Encroachment Permit are further subject to all present and future building restrictions, regulations, zoning laws, and all ordinances, resolutions, rules and orders of all bodies, bureaus, commissions and bodies of any municipal, county, state, or federal authority, now or hereafter having jurisdiction over the Use Areas or Wireless Provider’s use thereof. Wireless Provider shall comply with all of the foregoing. 18.2 Radio Frequency Compliance Requirements. Wireless Provider shall document, report and confirm its compliance with Federal Communications Commission (“FCC”) Radio Frequency Exposure Guidelines (FCC OET Bulletin 65) and all other applicable radio frequency emissions laws and regulations in effect from time to time (collectively, the “FCC Rules”) as follows: 18.2.1 Wireless Provider shall cause its senior internal engineer responsible for compliance with the FCC Rules to deliver to Town a written letter (the “RF Letter”), as follows: 18.2.1.1 The RF Letter shall attest that Wireless Provider’s operation of the Communications Equipment is in compliance with the FCC Rules. A statement from Wireless Provider declaring exemption from reporting to FCC is not acceptable to comply with the requirements of this paragraph. 18.2.2 Wireless Provider shall maintain records of radio frequency measurements and Communications Equipment performance in accordance with the FCC Rules. Meeting Packet Page 254 of 311 Revised 10.6.2026 18.2.3 Wireless Provider shall also evidence and demonstrate its compliance with the FCC Rules in such manner and at such intervals as the Town of Fountain Hills Zoning Ordinance and other applicable laws and regulations may mandate. 18.3 Use Area Regulations. Town reserves the right to adopt, amend and enforce against Wireless Provider rules and regulations governing the operation of the Street Parcel, including the Use Areas, Wireless Provider's activities therein and thereon, and the public areas and facilities used by Wireless Provider in connection therewith. 18.4 Taxes, Liens and Assessments. In addition to all other amounts herein provided and to the extent consistent with applicable law, Wireless Provider shall pay, when the same become due and payable, all taxes and general and special fees, charges and assessments of every description that during the term of any License Agreement or Encroachment Permit may be levied upon or assessed upon or with respect to Wireless Provider’s use of the Right-of-way, the operations conducted therein, any amounts paid or other performances required by these Terms by either party, and all possessory interest in the Right-of-way and Wireless Provider’s improvements and other property thereon. Wireless Provider shall pay, indemnify, defend and hold harmless Town from any and all such obligations, including any interest, penalties and other expenses which may be imposed, and from any lien therefor or sale or other proceedings to enforce payment thereof. 18.5 Permits. Nothing in these Terms relieves Wireless Provider of the obligation to obtain permits, licenses and other approvals from Town or other units of government that are required for the erection, construction, reconstruction, installation, operation or maintenance of the Communications Equipment or provision of telecommunications services; or from compliance with applicable municipal codes, ordinances, laws and policies, such as zoning and land use ordinances and regulations, pavement cut and restoration ordinances and regulations, subdivision and project improvement ordinances, curb cut permits, building permits, Right-of-way permits, encroachment permits, traffic control permits and the like. 19. ASSIGNABILITY. The License Agreement or Encroachment Permit(s) are not assignable by Wireless Provider (and any assignment shall be void and vest no rights in the purported assignee) unless the assignment is made in strict compliance with the following: 19.1 Assignments Affected. Every assignment of any of Wireless Provider’s interest in the Right-of-way, the License Agreement, Meeting Packet Page 255 of 311 Revised 10.6.2026 Encroachment Permit(s) or these Terms or any of Wireless Provider’s rights or interests hereunder is prohibited unless Wireless Provider first receives from Town notice of Town’s consent to the assignment, where Town’s consent to such assignment not to be unreasonably withheld, conditioned, or delayed. All references in these Terms to assignments by Wireless Provider or to assignees shall be deemed also to apply to all of the following transactions, circumstances and conditions and to all persons claiming pursuant to such transactions, circumstances and conditions: 19.1.1 Any voluntary or involuntary assignment, conveyance or transfer of Wireless Provider’s right to use the Right -of-way under this License Agreement or any interest or rights of Town under this License Agreement, in whole or in part. 19.1.2 Any voluntary or involuntary pledge, lien, mortgage, security interest, judgment, claim or demand, whether arising from any contract, any agreement, any work of construction, repair, restoration, maintenance or removal, or otherwise affecting Wireless Provider’s rights to use the Right-of-way (collectively “Liens”). 19.1.3 Any assignment by Wireless Provider of any interest in the License Agreement or Encroachment Permit(s) for the benefit of creditors, voluntary or involuntary. 19.1.4 A Wireless Provider Insolvency. 19.1.5 The occurrence of any of the foregoing by operation of law or otherwise. 19.1.6 The occurrence of any of the foregoing with respect to any assignee or other successor to Wireless Provider. 19.2 Pre-approved Assignments. Subject to certain conditions hereafter stated, Town hereby consents to certain assignments (the “Pre-approved Assignments”). Only the following assignments are Pre-approved Assignments: 19.2.1 Complete Assignment of License Agreement and Encroachment Permits. Wireless Provider's complete assignment of all of Wireless Provider's rights and Interests in the Right-of-way, the approved License Agreement and all Encroachment Permits to a single assignee who meets all of the following requirements, as determined by Town in Town’s reasonable discretion (a “Qualified Operator”): Meeting Packet Page 256 of 311 Revised 10.6.2026 19.2.1.1 The assignee has experience, management, credit standing and financial capacity and other resources equal to or greater than Wireless Provider’s and adequate to successfully perform the obligations set forth herein. 19.2.1.2 The assignee is experienced in the management and operation of similar projects. 19.2.1.3 The assignee assumes all of Wireless Provider’s obligations herein. 19.2.1.4 The assignee has a net worth of not less than Fifty Million and No/100 Dollars ($50,000,000.00). 19.2.2 Stock Transfers. The transfer of publicly traded stock, regardless of quantity. 19.2.3 Merger. The merger or consolidation of Wireless Provider with another entity that is a Qualified Operator. 19.2.4 Common Ownership Transfer. Wireless Provider’s complete assignment of all of Wireless Provider’s rights and interests in the Right-of-way, the approved License Agreement and Encroachment Permits to single assignee who is and remains a wholly owned subsidiary of Wireless Provider’s sole owner as of the date of the License Agreement (or a wholly owned subsidiary of a wholly owned subsidiary of Wireless Provider’s sole owner as of the date of the License Agreement). 19.3 Limitations on Assignments. Town’s consent to any assignment, including without limitation, Pre-approved Assignments, is not effective until the following conditions are satisfied: 19.3.1 Except for the sale of stock, Wireless Provider shall provide to Town a complete copy of the document assigning its interests, or other such documentation acceptable to the Town. 19.3.2 Each assignee must execute an assumption of the License Agreements and/or the Encroachment Permits in form acceptable to Town. 19.3.3 Each Pre-approved Assignment must satisfy all other requirements of these Terms pertaining to assignments. Meeting Packet Page 257 of 311 Revised 10.6.2026 19.4 Assignment Remedies. Any assignment without Town’s consent shall be void and shall not result in the assignee obtaining any rights or interests. Town may, in its sole discretion and in addition to all other remedies available to Town under these Terms or otherwise, and in any combination, terminate any and all of the License Agreement and Encroachment Permits, collect Use Fees from the assignee and/or declare the assignment to be void, all without prejudicing any other right or remedy of Town under these Terms. No cure or grace periods shall apply to assignments prohibited under these Terms or to enforcement of any provision under these Terms against an assignee who did not receive Town’s consent. 19.5 Effect of Assignment. Prior to any effective assignment, each assignee must execute an assumption of each License Agreement and Encroachment Permit in the form attached hereto as Exhibit “C.” No action or inaction by Town shall be deemed a waiver of the prohibition on assignments or any other provision herein, or the acceptance of the assignee, Wireless Provider or occupant as Wireless Provider, or a release of Wireless Provider from the further performance by Wireless Provider of the provisions of these Terms. Consent by Town to an assignment shall not relieve Wireless Provider from obtaining Town’s consent to any further assignment. No assignment shall release Wireless Provider from any liability hereunder. 19.6 Enforceability after Assignment. No consent by Town shall be deemed to be a novation. Town’s consent to any assignment does not in any way expand or modify the terms set forth in these Terms or waive, diminish or modify any of Town’s rights or remedies under the License Agreement or any Encroachment Permit. The terms set forth in these Terms shall be enforceable against Wireless Provider and each successor, partial or total, and regardless of the method of succession, to Wireless Provider's interest hereunder. Each successor having actual or constructive notice of the License Agreement, these Terms or any Encroachment Permit shall be deemed to have agreed to the preceding sentence. 19.7 Grounds for Refusal. Except for the Preapproved Assignments, no assignment of the License Agreement or any Encroachment Permit by Wireless Provider is contemplated or bargained for. Without limitation, Town has the right to impose upon any consent to assignment such conditions and requirements as Town may deem appropriate. 19.8 Consent to Assignments. Wireless Provider shall attach to each Pre- approved Assignment a copy of Wireless Provider’s notice to Town of the Pre-approved Assignment and other required documents. Wireless Provider shall attach to each other assignment, a copy of Town’s notice to Wireless Provider of Town’s consent to the assignment. These Terms shall continue Meeting Packet Page 258 of 311 Revised 10.6.2026 to be enforceable according to its terms in spite of any provisions of any documents relating to an assignment. 19.9 Assignment Fee. Wireless Provider shall pay to Town in advance the sum of Five Hundred Dollars ($500) as a nonrefundable fee for legal, administrative and other expenses related to every Pre -approved Assignment (other than the sale of publicly traded stock) or to any request for a consent to assignment, whether or not Town grants such request. 20. MISCELLANEOUS. The following additional provisions apply to these Terms: 20.1 Amendments. These Terms may not be amended except by a formal writing executed by all of the parties. 20.2 Dates. Any reference to a year shall refer to a calendar year unless a fiscal year is specifically stated. Sunday, Saturday and Arizona legal holidays are holidays for purposes of the License Agreement and issued Encroachment Permits. 20.3 Time of Essence. Time is of the essence of each and every provision of the License Agreement and issued Encroachment Permits. 20.4 Severability. If any provision of these Terms shall be ruled by a court or agency of competent jurisdiction to be invalid or unenforceable for any reason, then: 20.2.1 The invalidity or unenforceability of such provision shall not affect the validity of any remaining provisions of these Terms. 20.2.2 These Terms shall be automatically reformed to secure to the parties the benefits of the unenforceable provision, to the maximum extent consistent with law. 20.5 Conflicts of Interest. No officer, representative or employee of Town shall have any direct or indirect interest in the License Agreement or any Encroachment Permit, nor participate in any decision relating to the License Agreement or any Encroachment Permit that is prohibited by law. Notwithstanding the foregoing, pursuant to A.R.S. § 38 -511, the Town of Fountain Hills may cancel the License Agreement or any Encroachment Permit, without penalty or further obligation, if any person significantly involved in initiating, negotiating, securing, drafting or creating the License Agreement or associated Encroachment Permits on behalf of the Town is, at any time while the License Agreement or Encroachment Permits is in Meeting Packet Page 259 of 311 Revised 10.6.2026 effect, or any extension thereof, an employee, agent or consultant to Wireless Provider in any capacity. 20.6 No Partnership. The transactions and performances contemplated hereby shall not create any sort of partnership, joint venture or similar relationship between the parties. 20.7 Nonliability of Officials and Employees. No official, representative or employee of Town shall be personally liable to any party, or to any successor in interest to any party, in the event of any default or breach by Town or for any amount which may become due to any party or successor, or with respect to any obligation of Town or otherwise under the terms of any License Agreement or related to any License Agreement or Encroachment Permit. 20.8 Notices. Notices hereunder shall be given in writing delivered to the other party or mailed by registered or certified mail, return receipt requested, postage prepaid or a national overnight express courier (such as Federal Express or UPS) to the addresses set forth in the License Agreement and to the Town as follows: If to Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Attn: Town Manager Copy to: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Attn: Development Services Director Meeting Packet Page 260 of 311 Revised 10.6.2026 Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Attn: Town Attorney By notice from time to time, a person may designate any other street address within Maricopa County, Arizona as its address for giving notice hereunder. Service of any notice (i) if by registered or certified ail shall be deemed to be complete three (3) days (excluding Fridays, Saturday, Sunday and legal holidays) after the notice is deposited in the United States mail or (ii) if by overnight courier upon receipt. 20.9 Construction. Whenever the context of these Terms requires herein the singular shall include the plural, and the masculine shall include the feminine. 20.10 Funding. This subparagraph shall control notwithstanding any provision of the License Agreement or any exhibit or other agreement or document related hereto. If funds necessary to fulfill Town’s obligations under the License Agreement or any Encroachment Permit are not appropriated by the Town of Fountain Hills Town Council, Town may terminate the License Agreement or any Encroachment Permit, by notice to Wireless Provider. Town shall use best efforts to give notice of such a termination to Wireless Provider at least thirty (30) days prior to the end of Town's then current fiscal period. Termination in accordance with this provision shall not constitute a breach of the License Agreement or Encroachment Permit by Town. No person will be entitled to any compensation, damages or other remedy from Town if the License Agreement or any Encroachment Permit is terminated pursuant to the terms of this subsection. 20.11 Paragraph Headings. The paragraph headings contained herein are for convenience in reference and not intended to define or limit the scope of any provision of the License Agreement. 20.12 No Third Party Beneficiaries. No person or entity shall be a third party beneficiary to the License Agreement or shall have any right or cause of action hereunder. Town shall have no liability to third parties for any approval of plans, Wireless Provider’s construction of improvements, Wireless Provider’s negligence, Wireless Provider’s failure to comply with the provisions of these Terms (including any absence or inadequacy of insurance required to be carried by Wireless Provider). 20.13 Exhibits. All Exhibits specifically stated to be attached hereto as specified herein are hereby incorporated into and made an integral part of the License Agreement for all purposes. Meeting Packet Page 261 of 311 Revised 10.6.2026 20.14 Attorneys' Fees. If any action, suit or proceeding is brought by either party hereunder to enforce the License Agreement or any issued Encroachment Permit or for failure to observe any of the covenants of the License Agreement, these Terms or any issued Encroachment Permit, or to vindicate or exercise any rights or remedies hereunder, the prevailing party in such proceeding shall be entitled to recover from the other party such prevailing party’s reasonable attorneys’ fees and other reasonable litigation costs (as determined by the court (and not a jury) in such proceeding). 20.15 Approvals and Inspections. All approvals, reviews and inspections by Town are for Town’s sole benefit and not for the benefit of Wireless Provider, its contractors, engineers or other consultants or agents, or any other person. 20.16 Legal Workers. If and to the extent A.R.S. § 41-4401 is applicable, Wireless Provider shall comply with laws regarding workers as follows: 20.16.1 Wireless Provider warrants to Town that Wireless Provider and all its subcontractors will comply with all federal immigration laws and regulations that relate to their employees and that Wireless Provider and all its subcontractors now comply with the E-Verify Program under A.R.S. § 23-214(A). 20.16.2 A breach of the foregoing warranty by Wireless Provider shall be deemed a material breach of the License Agreement and any issued Encroachment Permit that is subject to penalties up to and including termination of this License Agreement and any issued Encroachment Permits. 20.16.3 Town retains the legal right to inspect the papers of any employee of Wireless Provider or any subcontractor who works on a Use Area pursuant to License Agreement and any Encroachment Permit to ensure that they or the subcontractor is complying with the warranty given above. 20.16.4 Town may conduct random verification of Wireless Provider’s and its subcontractors’ employment records to ensure compliance with the warranty given above. 20.16.5 Wireless Provider shall indemnify, defend and hold Town harmless for, from and against all losses and liabilities arising from any and all violations of the warranty given above. Meeting Packet Page 262 of 311 ITEM 9.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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) CONSIDERATION AND POSSIBLE ACTION: Regarding possible sale of Town-owned parcels at various locations. Staff Summary (background) At the December 2, 2025, Town Council meeting, the Council reviewed and discussed the possibility of selling select Town-owned parcels. At the conclusion of that discussion, the Council directed staff to develop further information regarding a parcel on East Ashbrook Drive. Staff returned to the Council on March 3, 2026, and presented the option of selling this piece of Town-owned land. The Council directed staff to proceed with preparing this property for sale and to come back to the Council with additional surplus properties for consideration. Staff is in the process of surveying the property on Ashbrook as the first step in moving the property through the process. This report outlines five additional surplus properties that could be sold. Town staff have not identified any immediate Town needs for any of these properties. Staff seeks Council direction on each of these properties. East side of the 14000 Block of N. Del Cambre This property is located on the south side of Ashbrook Wash between N. Del Cambre Ave. and N Vallecito Dr. This area was conveyed to the Town from MCO Properties by Special Warranty Deed in June 1997 along with several other properties. The area identified for possible sale is above the floodplain for Ashbrook Wash. The area is relatively flat and would be easy to develop. Meeting Packet Page 263 of 311 The exact area that would be sold is subject to change based on surveying the property. What staff has identified as the potential area is almost 27,000 sq. ft. and could be divided into two lots compatible to the surrounding lots. These lots exceed the minimum 8,000 sq. ft. required by the R1-8 zoning district. The surrounding area was included in Plat 101, approved in July 1971. Homes began being built in this area in the late 1970's and all the lots were developed by 1997. Given the property was considered part of Ashbrook Wash, it is shown on the 2002 General Plan as open space. Lots in the area range in size from 8,303 to 12,807 sq. ft. Of the 17 homes closest to this property, only one is a two-story home. Southwest corner of Greystone and Sycamore This property is located on the south side of Greystone just west of Sycamore. This area was conveyed to the Town from MCO Properties with a Special Warranty Deed along with several other properties in March 1997. The area identified for possible sale is above the floodplain for the adjacent Greystone Wash. There is a significant slope across the property, it slopes down from west to east over 40'. While this slope is significant, it is similar to other lots along Greystone. Meeting Packet Page 264 of 311 The exact area that would be sold is subject to change based on surveying the property. What staff has identified as the potential area is approximately 39,000 sq. ft. The 6 lots immediately to the is area range in size from 40,900 to over 64,000 sq. ft. in size. The property is zoned R1-35, establishing the minimum lot size as 35,000. The proposed lot could possibly be increased in size. Most of the homes along Greystone were built in the early to mid 1990's. South side of the 15500 -15600 Blocks of E. Sunburst This property is located on the south side of Sunburst across from Whitestone Way (between Greystone and Telegraph). This area was included on the Plat for Stoneridge South II as Lot 2 and is designated as a Public Utility Easement and a Drainage Easement. Lot 2 was deeded to the Town in 1995. Meeting Packet Page 265 of 311 The area staff has identified is approximately 190,000 sq ft in size and could be divided into four lots of around 47,000 sq ft in size. The lots along the south side of Sunburst range from 36,670 to 90,000 square feet in size with an average of 50,477 square feet. The area is zoned R1-35. The lots to the north across Sunburst are zoned R1-8. This area is above the flood plain associated with Sunburst Wash but is very steep. The slopes across the property are all in excess of 30%. Initial development in this area began in the mid-1990's. The lots along the south side of Sunburst have continued to slowly develop. There are still several lots available. While there is no current expectation of Town use of this property, there has been some discussion in the past regarding potential park use of this portion of Sunburst Wash. If that were to happen, this area could be part of the access to the park. North side of the 15500 Block of E. Palomino This property is located on the north side of Palomino between Pinto and Ocotillo. This area was included on the Plat for Stoneridge South II as Lot 2 and designated as a Public Utility Easement and a Drainage Easement. Lot 2 was deeded to the Town in 1995. The lot identified for possible sale is along the south side of Sunburst Wash. The slopes in this area are very steep, especially on this lot. The slope just north of Palomino is in excess of 35%, which would make development of this lot challenging. The lot shown is over 53,000 sq. ft., which is compatible with the adjacent lots. The property on the north side of Meeting Packet Page 266 of 311 Palomino is zoned R1-35 and the property on the south side is zoned R1-8. The smaller lots to the south and west began development in the 1980's. The larger lots on the north side of Palomino did not start developing until the mid-1990's. While there is no current expectation of Town use of this property, there has been some discussion in the past regarding potential park use of this portion of Sunburst Wash. If that were to happen, this area could be part of the access to the park. East side of the 16600 Block of N. Aspen This property is located on the east side of Aspen along the Hesperus Wash. This area is part of Parcel B of Final Plat 505 D and is designated as a Public Utility Easement and a Drainage Easement. Parcel B was conveyed to the Town by a special warranty deed from MCO in March, 1997. The area staff has identified that is outside the flood plain is not impacted by significantly steep slopes. The total area is approximately 100' deep with 300 feet of frontage along Aspen. This area is zoned R1-10 (minimum 10,000 sq ft lots) and could be subdivided into three lots of a similar size to the ones across the street. The average size of the 13 lots along this street is 10,325 square feet. Related Ordinance, Policy or Guiding Principle Meeting Packet Page 267 of 311 N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff is seeking Council direction on whether or not to move forward with the next step of preparing any or all of the lots discussed in this report for possible sale. The properties on Del Cambre and Aspen will be the easier ones to develop. Staff recommends moving forward with those properties first. Suggested Motion MOVE TO direct staff to move forward with preparing one or more of the property listed to sell. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS None Meeting Packet Page 268 of 311 ITEM 9.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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) CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-14, amending Town Code Article 8-6, Short-term Rentals and Vacation Rentals. Staff Summary (background) In January 2021, the Town Council adopted Ordinance 21-03 creating Article 8-6, Vacation Rentals, as part of the Town Code. This was a very basic ordinance as allowed by state statute to provide some local governance of short-term and vacation rentals. In 2022 the state legislature passed a bill increasing the regulatory authority of cities and towns with regards to short-term and vacation rentals. In November 2022, the Council adopted Ordinance 22-09 establishing the ordinance as it exists today. Staff has now had nearly four years of experience implementing the ordinance as approved by the Council in 2022. Over this time, staff have identified some challenges with the current ordinance. One of the main challenges is that the current ordinance does not clearly define the process for consideration of permit suspensions (Sec. 8-6-11 B). The biggest change in the ordinance is providing this process. Following review of other ordinances from around the state, review of ARS 9-500.39, and extensive staff discussions, the following amendments to Town Code Article 8-6 are being recommended. General The current ordinance uses both "short-term rental" and "vacation rental" interchangeably. To avoid any confusion, staff has changed all references to just use the term "short-term rental." The current ordinance sometimes refers to an owner's agent, representative, or designee. For consistency, a definition was provided that "designee" covers all these terms and the ordinance was amended to just use "owner's designee." Section 8-6-1 Purpose No changes Section 8-6-2 Definitions There are several new definitions included in the revised ordinance to clarify terms used in the ordinance and address challenges in application of the current ordinance. Section 8-6-3 Permit Required - Penalties A. Permit Required. One of the current challenges is lack of clarity who a permit belongs to Meeting Packet Page 269 of 311 if someone other than the owner completes the application. The change in this section makes it clear that the permit belongs to the property owner. A related issue is that more than one person or entity may submit an application for a short-term rental at one property. These proposed changes to this section also limit this to just allowing one permit per address. B. Permit Applications. Most of the changes in this section are simple clarifications. One change (8-6-3 B 3) is to require that a person submitting an application on behalf of an owner also submit a document from the owner giving them the authority to make the application. This will help ensure that only authorized designees are making the applications. Another change to this section is item #7, which currently requires the applicant to attest they have notified the adjacent property owners. This has been a challenge to enforce from the beginning. We frequently receive calls from neighboring property owners saying they did not get the notice. An option in state statute is to simply publicize the location of short-term rentals with the contact information. Several cities have taken this approach. Our software vendor for short-term rentals provides this option for a small additional fee. The Town has chosen to use this option and is, therefore, removing the notification requirement from the ordinance. The final change to this section is to move the requirement that the owner provide documentation that they have registered as a rental property with Maricopa County (item #9) to Sec. 8-6-3 G. The state statute does not include this in the list of things that could be required as part of the application; therefore it was not appropriate to make this a requirement in the application. D. This subsection addresses reasons for denial of a permit. Item #5 on the list currently includes a number of items that are not included in the statute as reasons that an application can be denied. Therefore, they are being removed from the Town's ordinance. G. As stated above, the requirement that the applicant document they have registered the property as a rental has been moved to this section. I. This section includes a provision from the time of adoption of the ordinance in 2022 requiring existing short-term rentals to register their property within 30 days. This provision is no longer needed and is being removed from the ordinance. L - O were added in response to issues that have arisen during implementation of the existing ordinance. Each of these added provisions help clarify some aspect of the application process or requirements or how staff will address revocations and reapplications. Section 8-6-4 Emergency Point of contact Requirements - Penalties No significant changes. Section 8-6-5 Compliance with the Law - Prohibited Uses B. Subsection 2 was amended and subsection 10 was added to further define the types of activities that are not allowed in short-term rentals. These further clarifications of prohibited activities should improve our ability to respond to inappropriate uses of short-term rentals. G. This subsection responds to a change in state statutes that allow cities and towns to require the owner to reside on the property if using an Accessory Dwelling Unit (ADU) as a short-term rental if the rental received a certificate of occupancy on or after September 14, Meeting Packet Page 270 of 311 2024. H. This is a new subsection that addresses issues raised by guests of a renter at a short-term rental. This change makes it clear a guest can be subject to the same civil penalties as the person renting the home. Section 8-6-6 Neighbor Notification Required As stated above, staff has deleted this section. The current ordinance process for registration makes it challenging to complete this process in a verifiable way. Under the current ordinance, the applicant must attest they have sent the notice. Staff does not really know if they have until someone complains, then it could be the notice just did not reach them rather than that the applicant did not send it. It is important that surrounding property owners have knowledge of the short-term rental and how to contact the emergency contact person in the event of a problem. Staff is recommending implementation of an alternative approach that is available through our software vendor. The information regarding the location of short-term rentals with the accompanying contact information can be posted online. This allows any neighbor, not just the ones that have previously been included in the notice, to go online to obtain the contact information and inform the owner or designee of an issue. Renumbered 8-6-6 Advertisement Requirements No significant changes. Renumbered 8-6-7 Posting on the Property Required No significant changes. Renumbered 8-6-8 Insurance Required A minor change to ensure either the property owner or online marketing company has the required insurance and that the insurance is maintained. Renumbered Section 8-6-9 Background Checks Required No significant changes. Renumbered Section 8-6-10 Standards and Operating Requirements - Health and Safety No significant changes. Renumbered Section 8-6-11 Permit Suspensions B. Permit Suspension Process. Adding this section was one of the primary reasons to amend this Article. The Town has experienced a few situations where short-term rentals were not following the ordinance to the point the Town desired to suspend the license. When we did so, it was determined the current ordinance did not provide a clear process for handling suspensions. The added provisions: • Require written notice to the owner and designee at least 15 calendar days before a hearing. • Provides options for serving the notice that include certified or registered mail, emailing, hand-delivering, and other means as allowed by the Arizona Rules of Civil Procedure. • Describes in detail the timing and method of holding a hearing and the options available to the hearing officer in deciding the case Meeting Packet Page 271 of 311 • Set a minimum suspension of 3 months and a maximum of 12 months. Renumbered Section 8-6-12 Enhanced Penalties No significant changes. The first sentence of subsection C was deleted in that it is no longer necessary; the ordinance has been in effect for several years. Renumbered Section 8-6-13 Appeals No significant changes. Renumbered Section 8-6-14 Judicial Relief No significant changes. Renumbered Section 8-6-15 Severability and Section 8-6-16 Prior Code Provisions Superseded No changes Section 8-6-18 Effective Date Deleted as no longer needed. Related Ordinance, Policy or Guiding Principle Town Code Article 8-6 Short-term Rentals and Vacation Rentals Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Ordinance 26-14. Suggested Motion MOVE TO APPROVE Ordinance 26-14, amending Town Code Article 8-6. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Ordinance 26-14 Meeting Packet Page 272 of 311 ORDINANCE NO. 26–14 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, AMENDING THE FOUNTAIN HILLS TOWN CODE BY AMENDING CHAPTER 8, BUSINESS LICENSES, ARTICLE 8-6, SHORT-TERM RENTALS AND VACATION RENTALS. WHEREAS, local governments may regulate short-term rentals and vacation rentals as provided in Arizona Revised Statutes (“A. R. S.”) § 9-500.39; and WHEREAS, on November 15, 2022, the Mayor and Town Council passed and adopted Ordinance 22-09 adding Article 8-6, Short-term Rentals and Vacation Rentals to the Town Code; and WHEREAS, the Town has found it necessary to amend the existing regulations to ensure the proper functioning of short-term rentals and vacation rentals consistent with Arizona Revised Statutes (“A. R. S.”) § 9-500.39; and WHEREAS, a central and significant goal for the Town is to protect the health safety and welfare of the Town residents, preserve its housing stock, and maintain the quality and character of residential neighborhoods; and WHEREAS, in accordance with Article II, Sections 1 and 2, Constitution of Arizona, and the laws of the State of Arizona, the Town Council has considered the individual property rights and personal liberties of the residents of the Town and the probable impact of the proposed ordinance on the cost to construct housing for sale or rent before adopting this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. Article 8-6 of the Fountain Hills Town Code is hereby amended as provided in Exhibit A. SECTION 3. If any provision of this Ordinance is for any reason held by any court of competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed separate, distinct and independent of all other provisions and such holding shall not affect the validity of the remaining portions of this Ordinance. Meeting Packet Page 273 of 311 SECTION 4. This ordinance shall become effective thirty (30) days after its passage and adoption by the Town Council of the Town of Fountain Hills, Arizona, and its approval by the Mayor and attestation by the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 6th day of October, 2026. TOWN OF FOUNTAIN HILLS, ARIZONA ATTEST: ____________________________________________ _______________________________________ Gerry M. Friedel, Mayor Bevelyn Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: _____________________________________________ ________________________________________ Rachael Goodwin, Town Manager Timothy A. La Sota, Town Attorney Meeting Packet Page 274 of 311 ORDINANCE NO. 26-14 EXHIBIT A Article 8-6 Short-Term Rentals and Vacation Rentals Sections: 8-6-1 Purpose 8-6-2 Definitions 8-6-3 Permit Required – Penalties 8-6-4 Emergency Point of Contact Requirements – Penalties 8-6-5 Compliance with the Law – Prohibited Uses 8-6-6 Neighbor Notification Required 8-6-76 Advertisement Requirements 8-6-87 Posting on the Property Required 8-6-98 Insurance Required 8-6-109 Background Checks Required 8-6-110 Standards and Operating Requirements – Health and Safety 8-6-121 Permit Suspensions 8-6-132 Enhanced Penalties 8-6-143 Appeals 8-6-154 Judicial Relief 8-6-165 Severability 8-6-176 Prior Code Provisions Superseded 8-6-18 Effective Date Section 8-6-1 Purpose This article is adopted to protect the peace, health, safety, and welfare of the Town’s residents and visitors by enacting reasonable regulations that mitigate the harmful abuses common to the short-term rental of residential property within the Town while preserving property owners’ rights to rent their property in a manner that does not disturb the peace or harm public health, public safety, or general public welfare. Such Meeting Packet Page 275 of 311 harmful abuses deplete law enforcement and public safety resources and can leave other areas of the Town with compromised levels of police protection so as to create a significant threat to the safety of both citizens and police officers alike. The inclusion of a specific regulation or reference to the Town Code in this article does not imply the exclusion of any other applicable law. It shall be unlawful to provide, offer or operate a short-term rental or vacation rental within the corporate limits of the Town without first obtaining a permit as provided in this article and without complying with any and all applicable laws, regulations and this code. Section 8-6-2 Definitions In this article, unless the context or definitions in A.R.S. § 9-500.39 indicate otherwise, the following terms or phrases are defined as follows: “ACCESSORY DWELLING UNIT" MEANS A SELF-CONTAINED LIVING UNIT THAT IS ON THE SAME LOT OR PARCEL AS A SINGLE-FAMILY DWELLING OF GREATER SQUARE FOOTAGE THAN THE ACCESSORY DWELLING UNIT, THAT INCLUDES ITS OWN SLEEPING AND SANITATION FACILITIES AND THAT MAY INCLUDE ITS OWN KITCHEN FACILITIES. “Advertisement” means any method of soliciting the use of property for SHORT-TERM vacation rental purposes. “Applicant” means the owner or owner’s designee who applies with the Town for a permit or renewal of a permit. “BANQUET SPACE” MEANS AN EVENT CENTER THAT IS USED FOR SERVING AND/OR CONSUMING FOOD AND/OR BEVERAGES. “TOWN CODE” MEANS THE FOUNTAIN HILLS TOWN CODE INCLUDING THE ZONING ORDINANCE. “Days” shall mean calendar days unless stated otherwise. “Designee” and “agent” are interchangeable for purposes of this article and mean any person or persons with the charge, care, or control of any property, dwelling unit, or portion thereof. “Designee” includes the “emergency point of contact.” Meeting Packet Page 276 of 311 “EVENT CENTER” MEANS ANY DWELLING UNIT (I) FOR WHICH THE OCCUPANT HAS MADE PAYMENT FOR TRANSIENT USE OF THE DWELLING UNIT AND (II) WHICH IS USED FOR SPECIAL EVENTS OR OTHER NONRESIDENTIAL USES. “GUEST” MEANS A PERSON WHO MAKES TRANSIENT USE OF A SHORT-TERM RENTAL. FOR THE PURPOSES OF THIS ARTICLE, ANY PERSON WHO MAKES PAYMENT FOR THE USE OF A SHORT-TERM RENTAL, ANY PERSON IDENTIFIED ON THE RENTAL AGREEMENT FOR A SHORT-TERM RENTAL, ANY PERSON WHO SLEEPS OR PLANS TO SLEEP OVERNIGHT IN A SHORT-TERM RENTAL, AND ANY PERSON PRESENT IN A SHORT-TERM RENTAL AFTER 10:00 P.M. ARE EACH PRESUMED TO BE A GUEST OF THAT SHORT-TERM RENTAL. “Emergency point of contact” means the owner or individual designated by the owner to: (i) serve as the local twenty-four (24) hour emergency point of contact for the vacation SHORT-TERM rental; and (ii) respond to complaints and emergencies relating to the vacation SHORT-TERM rental in a timely manner as required by this article. “Neighbor notification” means the written notice provided by the owner to each single- family residential property adjacent to the vacation rental property, directly across from the vacation rental property, and diagonally across the street of the vacation rental property that includes the valid permit number issued by the Town, the physical address of the vacation rental, and the name, address, and twenty-four (24) hour telephone number of the emergency point of contact. “Nonresidential use” means any use that is not permitted in a residential zoning district pursuant to the Town Zoning Ordinance, any use that constitutes an “unruly gathering,” as defined in Section 11-1-7(B), and any use other than lodging or uses that are customarily incidental to lodging. In addition to those uses already stated herein, such nonresidential uses include, but are not limited to, weddings; banquets; concerts; retreats; any use for which entrants pay an entry fee; fireworks displays; a one-time or periodic, free or ticketed, cultural, charitable or cause-related occasion conducted for the purpose of attracting revenue, support, awareness and/or entertainment purposes; and social gatherings with more than ten (10) persons in attendance. “Online lodging marketplace” has the same meaning prescribed in A.R.S. § 42-5076. “Owner” means any person who, alone or with others, has title or interest in a property, dwelling unit, or portion thereof, with or without accompanying actual possession Meeting Packet Page 277 of 311 thereof, and includes any person who as agent, executor, administrator, trustee, or guardian has charge, care, or control of any property, dwelling unit, or portion thereof. “OWNER’S DESIGNEE” MEANS AN AGENT OR REPRESENTATIVE OF THE OWNER, SUCH AS A LANDLORD, STATUTORY AGENT, OR PROPERTY MANAGER, OR OTHER DESIGNEE ACTING ON BEHALF OF THE OWNER, WHO CONTROLS OR OTHERWISE REGULATES THE OCCUPANCY OR USE OF THE SHORT-TERM RENTAL. “Permit” OR “SHORT-TERM RENTAL PERMIT” Means authorization by the Town to operate a vacation SHORT-TERM rental in accordance with this article. “Person” means an individual, public entity, firm, corporation, partnership, limited liability company, trust, association, or any other business entity or juridical person, whether operating on a for-profit or nonprofit basis. “Short-term rental” and “vacation rental” are interchangeable for purposes of this article and meanS any individually or collectively owned single-family or one-to-four-family house or dwelling unit, or any unit or group of units in a condominium or cooperative, that is also a transient public lodging establishment or owner-occupied residential home offered for transient use. “Vacation SHORT-TERM rental” does not include: i. Accommodations or property that are classified for property taxation under A.R.S. § 42-12001; or ii. Any unit that is used for any nonresidential use, including a special event that would otherwise require a permit, retail, restaurant, banquet space, EVENT CENTER, or other similar use. “Timely manner” means responding to complaints and emergencies in person, by phone, or by email within the time frame required by public safety personnel. “TOWN CODE” MEANS THE FOUNTAIN HILLS TOWN CODE INCLUDING THE ZONING ORDINANCE. “Transaction privilege tax license” is the license issued by the State of Arizona pursuant to A.R.S. Title 42. “Transient” has the same meaning prescribed in A.R.S. § 42-5070. Meeting Packet Page 278 of 311 “TRANSIENT PUBLIC LODGING ESTABLISHMENT” MEANS THE BUSINESS OF OPERATING FOR OCCUPANCY BY TRANSIENTS A HOTEL OR MOTEL, INCLUDING AN INN, TOURIST HOME OR HOUSE, DUDE RANCH, RESORT, CAMPGROUND, STUDIO OR BACHELOR HOTEL, LODGING HOUSE, ROOMING HOUSE, APARTMENT HOUSE, DORMITORY, PUBLIC OR PRIVATE CLUB, MOBILE HOME OR HOUSE TRAILER AT A FIXED LOCATION, OR OTHER SIMILAR STRUCTURE, AND ALSO INCLUDING A SPACE, LOT, OR SLAB THAT IS OCCUPIED OR INTENDED OR DESIGNED FOR OCCUPANCY BY TRANSIENTS IN A MOBILE HOME OR TRAILER FURNISHED BY THEM FOR SUCH OCCUPANCY. TRANSIENT LODGING DOES NOT INCLUDE THOSE EXCEPTIONS IDENTIFIED IN A.R.S. SECTION 42-5070(B). “VERIFIED VIOLATION” A FINDING OF GUILT OR CIVIL RESPONSIBILITY FOR VIOLATING ANY STATE LAW OR LOCAL ORDINANCE RELATING TO A PURPOSE PRESCRIBED IN A.R.S. § 9-500.39(B), (D), (F), OR (K) THAT HAS BEEN FINALLY ADJUDICATED. Section 8-6-3 Permit Required – Penalties A. Permit Required. EACH SHORT-TERM RENTAL UNIT REQUIRES ITS OWN TOWN- ISSUED SHORT-TERM RENTAL PERMIT. PERMITS MAY ONLY BE ISSUED TO THE PROPERTY OWNER AND ONLY ONE PERMIT MAY BE ISSUED PER ADDRESS. Prior to use of a property as a vacation SHORT-TERM rental, the owner OWNER’S DESIGNEE shall obtain an annual vacation SHORT-TERM rental permit from the Town. Renting, or offering for rent, a vacation SHORT-TERM rental without complying with the permit requirement in this section is prohibited. B. Permit Applications. The owner of a proposed vacation SHORT-TERM rental, OR OWNER’S DESIGNEE, shall submit to the Town a permit application on a form furnished by USING the Town’S ONLINE PERMITTING SYSTEM. The permit application shall be signed by the applicant and shall contain the following minimum information, which shall be made publicly available: 1. The physical address of the residential property proposed to be used as a vacation SHORT-TERM rental. 2. The name, address, and telephone number, AND EMAIL ADDRESS of the owner for which the vacation SHORT-TERM rental registration certificate is to be issued. If the property owner is an entity, the legal name of the entity and its statutory agent. Meeting Packet Page 279 of 311 3. The name, address, and telephone number, AND EMAIL ADDRESS of each designee of the owner, if any. THE OWNER SHALL CERTIFY THAT THE OWNER’S DESIGNEE IS AUTHORIZED TO ACT UPON THE OWNER’S BEHALF. 4. The full name, address, EMAIL ADDRESS, and twenty-four (24) hour telephone number of the individual who will serve as the emergency point of contact. 5. Proof of a valid transaction privilege tax license FOR THE SHORT-TERM RENTAL. 6. Acknowledgment by the owner OR OWNER’S DESIGNEE of an agreement to comply with all applicable laws, regulations, and ordinances, including the requirement that the owner and each designee shall not be a registered sex offender, been convicted of any felony act that resulted in death or serious physical injury, or been convicted of any felony use of a deadly weapon within the past five years. 7. Attestation of compliance with the notification required in this article. 87. Evidence of liability insurance appropriate to cover the vacation SHORT-TERM rental in the aggregate of at least $500,000.00 or evidence that each vacation SHORT-TERM rental transaction will be provided through a platform that provides equal or greater primary liability insurance coverage for the vacation SHORT-TERM rental. 9. Evidence the vacation rental is registered with Maricopa County Assessor’s Office in accordance with A.R.S. § 33-1902. C. Permit Fee. Every application, including any renewal application, for a vacation SHORT-TERM rental permit under this article shall be accompanied by a nonrefundable fee established by resolution. D. Issuance – Reasons for Denial. The Town shall issue or deny the permit within seven business days after receipt of a complete application, except that the Town may deny issuance of a permit for any of the following reasons: 1. The applicant failed to provide the information required under subsection B of this section; Meeting Packet Page 280 of 311 2. The applicant failed to pay the permit fee required under subsection C of this section; 3. The applicant provided false information; 4. The owner or designee of the owner: (ia) is a registered sex offender; (iib) has been convicted of any felony act that resulted in death or serious physical injury; or (iiic) has been convicted of any felony use of a deadly weapon within five years of submitting the application; or 5. At the time of application, the owner has a suspended permit OR LICENSE for the same vacation SHORT-TERM rental or any of the following applies: (a) one violation at the vacation rental that resulted in or constituted any of the offenses described in Section 8-6-12; or (b) three violations of this article at the vacation rental within a twelve (12) month period, not including an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety. E. Notice of Denial – Appeal. The Town Manager or designee shall give notice of the denial of an application to the applicant by emailing the notice to applicant at the address listed on the application. The notice of the denial shall inform the applicant of the right to appeal the denial as provided for in Section 8-6-13. F. Maintaining Accurate Information – Violations. All applicants and persons holding permits issued pursuant to this article shall give written notice to the Town Manager or designee of any change in information submitted in connection with an application for a permit or renewal of a permit. The notice shall be provided to the Town Manager OR DESIGNEE not less than ten (10) days prior to the effective date of the change. A violation of this subsection is a civil offense. G. RENTAL REGISTRATION. PROVIDE THE TOWN EVIDENCE THE SHORT-TERM RENTAL IS REGISTERED WITH MARICOPA COUNTY ASSESSOR’S OFFICE IN ACCORDANCE WITH TOWN CODE SECTION 7-1-10 PRIOR TO OFFERING THE UNIT FOR RENT. H. Term of Fountain Hills Permit – Renewal Application. All permits issued under this article shall be valid for a period of one year from the date of their issuance or unless suspended or revoked. Except where the Town has received a new COMPLETE Meeting Packet Page 281 of 311 application along with the requisite fees, it shall be unlawful for any person to operate a vacation SHORT-TERM rental after the expiration date recorded upon the face of the vacation SHORT-TERM rental permit. PERMIT RENEWALS SHALL BE PROCESSED THE SAME AS A NEW APPLICATION. HI. Operating Without a Permit – Penalties. An owner or operator of a vacation rental that fails to apply for a permit or license within thirty (30) days of the permit application being made available by the Town shall immediately cease operations. In addition to any other penalty pursuant to the Town Code, the Town may impose a civil penalty of up to $1,000.00 per month against the owner if the owner or owner’s designee fails to apply for permit within thirty (30) days of receiving the written notice of violation from the Town. Representations or advertisements including online listings that reference the property, house or dwelling unit location within the Town is prima facie evidence that a vacation SHORT-TERM rental is operating in the Town. IJ. Nontransferable. No permit shall be transferable either as to location (DWELLING UNIT OR ADDRESS), or as to person. JK. Implementation. The Town Manager or designee shall develop the forms and/or database necessary to implement this section. L. PERMITTED USE OF INFORMATION. UNLESS OTHERWISE PROVIDED BY LAW, THE TOWN MAY USE ANY INFORMATION OBTAINED FROM A PERMIT APPLICATION FOR ANY LAWFUL PURPOSE INCLUDING COMMUNICATING INFORMATION RELATED TO PUBLIC HEALTH AND SAFETY, PROVIDING REMINDERS REGARDING COMPLIANCE WITH LAWS, AND GENERAL TOWN UPDATES. M. OWNERS’ DESIGNEE. AN OWNER MAY RETAIN A DESIGNEE TO COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE, INCLUDING, WITHOUT LIMITATION, THE MANAGEMENT OF THE SHORT-TERM RENTAL AND THE COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE. NOTWITHSTANDING ANY AGENCY RELATIONSHIPS BETWEEN AN OWNER AND A DESIGNEE, THE OWNER OF THE SHORT-TERM RENTAL SHALL REMAIN RESPONSIBLE FOR COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE AND THE FAILURE OF A DESIGNEE TO COMPLY WITH THIS ARTICLE SHALL NOT RELIEVE THE OWNER OF THE OWNER'S OBLIGATIONS UNDER THE PROVISIONS OF THIS ARTICLE. N. PERMIT REVOCATION. THE TOWN SHALL IMMEDIATELY REVOKE A PERMIT UPON THE DISCOVERY OF GROUNDS FOR DENIAL THAT EXISTED AT THE TIME THAT PERMIT WAS ISSUED. Meeting Packet Page 282 of 311 O. REAPPLICATION AFTER DENIAL OR SUSPENSION. NO OWNER OR OWNER’S DESIGNEE WHO HAS HAD A PERMIT DENIED OR SUSPENDED PURSUANT TO THIS ARTICLE MAY APPLY FOR ANOTHER PERMIT AT THE SAME LOCATION OR PROPERTY FOR ONE YEAR AFTER THE DECISION OR APPEAL AFFECTING THE APPLICANT’S PERMIT HAS BECOME FINAL. THE TOWN MAY REDUCE IN WHOLE OR IN PART THE ONE-YEAR PERIOD, IF THE DENIAL WAS BASED ON A GOOD FAITH FAILURE TO PROVIDE COMPLETE INFORMATION; PROVIDED, THAT THE APPLICANT IS NOW IN COMPLIANCE WITH THIS ARTICLE AND HAS PAID ALL REQUIRED FEES AND PENALTIES. Section 8-6-4 Emergency Point of Contact Requirements – Penalties A. Emergency Responses – Violations. When requested by a certified peace officer or Town official, the owner, OWNER’S DESIGNEE, or emergency point of contact whose name appears on the permit application must be on the vacation SHORT-TERM rental premises, or be available over the phone or text, within sixty (60) minutes of the request. B. Nonemergency Responses – Violations. The owner, OWNER’S DESIGNEE, or emergency point of contact shall respond to all other complaints relating to the vacation SHORT-TERM rental in person, over the phone, by email, or by text within four hours of the request. C. Maintaining Accurate Emergency Information. All applicants and persons holding permits issued pursuant to this article shall give prior written notice to the Town Manager or designee of any change to the contact information provided to the Town for the emergency point of contact. The notice shall be provided to the Town Manager not less than ten (10) days prior to the effective date of the change. D. Violations. In addition to any other penalty pursuant to the Town Code, a violation of this section shall be a civil offense. E. Penalties. In addition to any other penalty pursuant to the Town Code, an owner shall be subject to civil penalties of up to $1,000.00 for every thirty (30) days the owner fails to provide notice to the Town as required under this subsection. Before imposing the initial civil penalty, the Town shall provide thirty (30) days’ notice to the owner by emailing a notice of violation to the owner’s email address that was provided to the Town. The notice of the violation shall inform the applicant of the right to appeal the denial as provided for in Section 8-6-13. Notwithstanding the date of the notice of Meeting Packet Page 283 of 311 violation, the date for calculating the penalties shall be the first day the vacation SHORT- TERM rental is occupied following the owner’s failure to provide the notice to the Town regarding the change. Section 8-6-5 Compliance with the Law – Prohibited Uses A. A vacation SHORT-TERM rental shall comply with the federal, state, and local laws, including laws relating to public health and safety, sanitation, solid waste, hazardous waste, tax privilege licensing, property tax registration, traffic control, pollution control, noise, property maintenance, and nuisance abatement. B. No person or entity shall operate a vacationSHORT-TERM rental in violation of this article or other law. In addition, the use of a vacation SHORT-TERM rental property for any of the following uses or purposes is strictly prohibited: 1. Any nonresidential use; 2. Holding a special event that requires a permit or license pursuant to a Town ordinance or state law or rule OR ADVERTISING A SHORT-TERM RENTAL PROPERTY AS AVAILABLE TO BE USED FOR SPECIAL EVENTS, INCLUDING FOR WEDDINGS OR WEDDING RECEPTIONS; 3. Operating a retail business, restaurant, event center, banquet hall SPACE or similar use; 4. Housing sex offenders; 5. Operating or maintaining a sober living home; 6. Selling liquor, illegal drugsCONTROLLED SUBSTANCES, or pornography; 7. Operating a nude or topless dancing; 8. Obscenity; 9. Adult-oriented business; or 10. ANY USE THAT CONSTITUTES A SUBSTANTIAL DISTURBANCE OF THE QUIET ENJOYMENT, AND PEACE, HEALTH, SAFETY OR GENERAL WELFARE OF PRIVATE OR Meeting Packet Page 284 of 311 PUBLIC PROPERTY THROUGH A NUISANCE PARTY OR UNRULY GATHERING, INCLUDING, BUT NOT LIMITED TO, EXCESSIVE NOISE OR TRAFFIC, OBSTRUCTION OF PUBLIC STREETS BY CROWDS OR VEHICLES, FIGHTS, DISTURBANCES OF THE PEACE, LITTER, POSSESSION OF SPIRITUOUS LIQUORS IN THE POSESSION OF OR CONSUMED BY ANY MINOR, OR WHERE ILLEGAL DRUGS ARE IN THE POSSESSION OF, OR CONSUMED BY, ANY PERSON. 11. Any other use prohibited by A.R.S. § 9-500.39 or Town Code. C. A vacation SHORT-TERM rental lacking a valid transaction privilege tax license issued by the State of Arizona shall not be rented or offered for rent. D. No person or entity may receive payment or accept a fee, directly or indirectly, for facilitating the rental of a vacation SHORT-TERM rental operating in violation of this code or other law. E. In addition to any other penalty pursuant to the Town Code, any person who causes, allows, facilitates, aides, or abets any violation of this article shall be subject to a civil offense. F. The failure of any designee to comply with this article shall not relieve the owner of liability under this article. G. AN ACCESSORY DWELLING UNIT (ADU) THAT IS ISSUED A CERTIFICATE OF OCCUPANCY ON OR AFTER SEPTEMBER 14, 2024, SHALL NOT BE USED AS A SHORT- TERM RENTAL UNLESS THE PROPERTY OWNER’S PRIMARY RESIDENCE IS THE PRIMARY STRUCTURE ON THE SAME PROPERTY AS THE ADU. AN ACCESSORY DWELLING UNIT ISSUED A CERTIFICATE OF OCCUPANCY PRIOR TO SEPTEMBER 14, 2024, MAY BE USED AS A SHORT-TERM RENTAL REGARDLESS OF WHETHER THE PROPERTY OWNER USES THE PROPERTY AS THE OWNER’S PRIMARY RESIDENCE. H. ANY GUEST WHO CAUSES, PERMITS, FACILITATES, AIDES, OR ABETS ANY VIOLATION OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL SANCTION AS SET FORTH IN SECTION 8- 6-12 B. Section 8-6-6 Neighbor Notification Required Meeting Packet Page 285 of 311 A. Neighbor Notification. Prior to offering a vacation rental for rent for the first time, the owner or designee shall provide neighbor notification to each single-family residential property adjacent to the vacation rental property, directly across from the vacation rental property, and diagonally across the street of the vacation rental property. The neighbor notification shall be provided in writing in the form required by the Town and shall include the following minimum information: 1. The permit number issued by the Town; 2. The physical address of the vacation rental; and 3. The name, physical address, email address, and twenty-four (24) hour telephone number of the emergency point of contact. B. Additional Neighbor Notification Required. Any change to the information provided under subsection A of this section shall require additional neighbor notification by the owner or designee not later than five days prior to each change. The additional notification shall be provided in the manner required by subsection A of this section. C. Attestation. At the time of the application, the owner or designee shall provide to the Town an attestation of compliance with the neighbor notification required by this section. D. Violations. In addition to any other penalty pursuant to Town Code, a violation of this section shall be a civil offense. Section 8-6-76 Advertisement Requirements A. Required Disclosure. To protect the peace, health, safety, and general welfare of the Town’s residents and visitors, the owner or owner’s designee shall be responsible for displaying the permit number issued by the Town on each advertisement for such vacation SHORT-TERM rental. B. In addition to the permit number that must be included in the short-term rental’s listing, the owner OR OWNER’S DESIGNEED shall complete and prominently display the following statement in the short-term rental’s online lodging marketplace or other listing: Meeting Packet Page 286 of 311 The Owner OR OWNER’S DESIGNEE of this property will provide you with pertinent safety information, explain your responsibilities under the Fountain Hills Town Code, and expect you to certify your compliance therewith. You must not use this property for any nonresidential or other prohibited activity or use, as defined in Fountain Hills Town Code Section 8-6-5. Any renter GUEST who causes, permits, facilitates, aides, or abets such prohibited use of this property shall be subject to a civil infraction carrying a mandatory penalty of a minimum of $500.00, in addition to any other penalties which the Town may impose. The use of this Short-Term Rental to house sex offenders is prohibited by State Law and by the Fountain Town Code. The Owner OR OWNER’S DESIGNEE of this Short-Term Rental is required to perform a background check on you and your guests prior to your stay. C. Violations. In addition to any other penalty pursuant to the Town Code, a violation of this section shall be a civil offense. Each advertisement in violation of this section shall constitute a separate violation. Section 8-6-87 Posting on the Property Required A. Posting at the Vacation SHORT-TERM Rental. The owner OR OWNER’S DESIGNEE of the vacation SHORT-TERM rental must display the name, phone number, and email address of the owner or designee, and emergency point of contact in a conspicuous place within fifteen (15) feet of the primary entrance of the vacation SHORT-TERM rental. B. Booking Information. To protect the peace, health, safety, and general welfare of the Town’s residents and visitors, the owner OR OWNER’S DESIGNEE of a short-term rental shall (1) provide each booking guest with a statement of applicable Town rules and regulations, or direct each booking guest thereto, and inform the booking guest that rental of the unit constitutes an agreement to comply with such rules and regulations and (2) display the permit number issued by the Town on each advertisement for such short-term rental. C. Failure to Comply. In addition to any other penalty pursuant to the Town Code, a violation of this section shall be a civil offense. Each day a vacation SHORT-TERM rental does not display the information required by this section shall constitute a separate violation. Meeting Packet Page 287 of 311 Section 8-6-98 Insurance Required A. Required Insurance. Prior to offering or renting a vacation SHORT-TERM rental for rent for the first time, liability insurance appropriate to cover the vacation SHORT-TERM rental in the aggregate of at least $500,000.00 shall be providedMAINTAINED by the owner or the online marketplace platform SHORT-TERM RENTAL MAY ONLY ADVERTISE AND OFFER EACH SHORT-TERM RENTAL THROUGH AN ONLINE LODGING MARKETPLACE THAT PROVIDES EQUAL OR GREATER COVERAGE. B. Proof of Insurance. Proof of the required liability insurance coverage shall be provided to the Town at the time of the application. C. Violation. In addition to any other penalty pursuant to the Town Code, a violation of this section shall be a civil offense. Each day a vacation SHORT-TERM rental lacks the insurance required by this section shall constitute a separate violation. Section 8-6-109 Background Checks Required A. No sex offender shall be permitted to rent or occupy the vacation SHORT-TERM rental. Owners OR OWNER’S DESIGNEES who allow a sex offender at the vacation SHORT-TERM rental shall be found in violation of this section. B. Within twenty-four (24) hours of every booking, a sex offender background check on each guest shall be conducted by the owner, OWNER’S DESIGNEE, or by the online lodging marketplace on which the vacation SHORT-TERM rental is advertised. The owner OR OWNER’S DESIGNEE shall demonstrate compliance with this requirement by retaining a full copy of each background check for a minimum of twelve (12) months after the booking date and providing the copy to the Town upon a request by a police officer. C. In addition to any other penalty pursuant to the Town Code, any person who violates this section shall be subject to a civil offense. D. The failure of an online lodging marketplace to conduct a background check shall not relieve the owner OR OWNER’S DESIGNEE of liability under this section. Meeting Packet Page 288 of 311 Section 8-6-110 Standards and Operating Requirements – Health and Safety A. Standards and Operating Requirements. 1. An owner or owner’s representativeDESIGNEE shall (a) affirmatively respond to complaints in person, over the phone, or by email, and (b) abate the incident from which the complaint arose in a timely manner regardless of when the owner OR OWNER’S DESIGNEE receives notice of the complaint. If such a response is due within one hour under this article’s definition of timely manner, the response is deemed necessary to protect the peace, health, safety, and welfare of the general public, and the owner or owner’s representative DESIGNEE shall so respond in person. If the response is due within twenty-four (24) hours, the owner or the owner’s representative DESIGNEE shall respond either in person, by telephone, or by email. Failure of the owner or the owner’s representativeDESIGNEE to respond to a complaint as provided herein is a violation of this article, and the owner shall be deemed responsible for such violation regardless of whether an owner’s representative DESIGNEE has been designated. 2. Prior to the commencement of the occupancy or during check-in, the owner OR OWNER’S DESIGNEE shall explain and describe all rules and regulations applicable to the use of the property as a short-term rental including, but not limited to, parking restrictions, restrictions on noise and amplified sound, trash collection schedules, special event and nonresidential use restrictions, fire evacuation routes, and any other information, as required by this code, applicable to the short-term rental and the surrounding neighborhood. Prior to or upon the booking guest’s arrival at the short-term rental, the owner OR OWNER’S DESIGNEE shall provide the booking guest with a written copy of the statement of rules and regulations acknowledged by the booking guest at the time of booking. The owner OR OWNER’S DESIGNEE shall keep a record of compliance with this section. 3. Trash and refuse shall not be left stored within public view, except in proper collection containers for the purpose of collection in accordance with Town Code. 4. The following notice must be completed in fourteen (14) point or larger bold font, on a laminated or otherwise similarly shielded paper, and prominently Meeting Packet Page 289 of 311 displayed on the inside of the front door and the primary door to the backyard or in a conspicuous location near each such door. The notice below shall also include information regarding the location of all fire extinguishers and Town of Fountain Hills parking and waste disposal regulations. NOTICE USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENALTIES: 1. Housing sex offenders; 2. Operating or maintaining a sober living home; 3. Selling controlled substances, liquor, or pornography; 4. ADULT-ORIENTED BUSINESSES OR ACTIVITIES INCLUDING BUT NOT LIMITED TO Oobscenity, Nnude or topless dancing, and other adult-oriented businesses, performances, parties, or activities in which value is given in exchange for an adult - oriented service; 5. Any uses prohibited under A.R.S. § 9-500.39, or federal, state, or local law; or 6. Any use that disturbs neighboring properties’ peace and enjoyment including, but not limited to, excessive noise, impeding traffic, obstruction of public streets by crowds or vehicles, use or possession of illegal drugs, drinking in public areas, the service of alcohol to minors or consumption of alcohol by minors, fighting, disturbing the peace, and/or littering. USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENALTIES: Use for any nonresidential use, including: 1. For a special event that would otherwise require a permit or license pursuant to Town ordinance or a state law or rule; or 2. Operating a retail business, restaurant, event center, banquet space, or similar use. Your local contact person’s name is _________ and can be reached by phone 24 hours a day, seven days a week, at ___-___-____ . TOWN OF FOUNTAIN HILLS SHORT-TERM RENTAL PERMIT # __________. Meeting Packet Page 290 of 311 B. Health, Safety, and Sanitation. To protect the health, safety, and general welfare of all short-term rental occupants, short-term rentals must meet the minimum standards for habitable structures set forth in this code and the Zoning Ordinance and the following requirements. The Town may require inspection if it has a reason for concern that the short-term rental may not be compliant with the Town’s fire, building, or zoning requirements or other requirements set forth in this chapterARTICLE. 1. Smoke and Carbon Monoxide (CO) Detection and Notification System. A working smoke alarm and carbon monoxide (CO) alarm system, which may require the installation and maintenance of several detection units, shall be present within the short-term rental and maintained annually as required under NFPA (National Fire Protection Association) 72. The owner or owner’s representative DESIGNEE shall keep and make available for inspection upon request by the Fire Marshal a record of all inspections and maintenance activities. 2. Fire Extinguisher. A portable, multi-purpose fire extinguisher shall be installed, inspected, and maintained as required under NFPA 10 in any kitchen area and on each floor of a short-term rental and within twenty (20) feet of every outdoor fire feature, fire pit, patio heater, fireplace, or other areas with fire. The extinguisher(s) shall be installed on the wall in an open common area or in an enclosed space with appropriate markings visibly showing the location of the fire extinguisher. 3. Fire Safety and Emergency Evacuation Map. The owner OR OWNER’S DESIGNEE shall provide and prominently display a map of the short-term rental showing the following information: safe routes of egress in the event of a fire or other emergency; the location of fire detection and suppression equipment; and any additional information relevant to such emergency preparedness measures. Such maps shall include the full property address, emergency information (911), and owner OR OWNER’S DESIGNEE contact information. 4. Air Filters. As applicable, all HVAC filters in the short-term rental shall be changed every three months or according to the manufacturer’s instructions. The owner or owner’s representative DESIGNEE shall keep and make available for inspection upon request by the Town a record of all HVAC filter changes. 5. Parking. The owner OR OWNER’S DESIGNEE shall establish and post the maximum number of vehicles that can be parked at the rental for a period of Meeting Packet Page 291 of 311 twenty-four (24) hours or more based on an allowance of one vehicle for each seven hundred fifty (750) square feet of livable area in the home. This limitation applies to vehicles parked in the driveway or on the street within one thousand (1,000) feet of the property. 6. Cleaning. The owner OR OWNER’S DESIGNEE shall have the short-term rental cleaned between bookings following CDC guidelines and using household disinfectant products recommended by the United States Environmental Protection Agency. The owner or owner’s representative DESIGNEE shall keep and make available for inspection upon request by the Town a record of all cleanings. 7. Pest Control. The owner OR OWNER’S DESIGNEE shall ensure that the short-term rental receives regular (at least monthly) pest control treatments to keep the interior of all buildings and structures and exterior area of the premises free from infestation of insects, rodents, and other noxious pests where such infestation threatens the health, safety, or welfare of a person or persons. The owner or owner’s representative OR OWNER’S DESIGNEE shall keep and make available for inspection upon request by the Town a record of all pest control treatments. Section 8-6-121 Permit Suspensions A. Permit Suspensions. The Town may initiate an administrative process to suspend a vacation SHORT-TERM rental permit for a period of up to twelve (12) months for any of the following: 1. Three verified violations of this article within a twelve (12) month period, not including any such violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety. 2. One verified violation that results in or constitutes any of the following: a. A felony offense committed at or in the vicinity of a vacation SHORT-TERM rental by the owner of the vacation SHORT-TERM rental or by the owner’s designee; Meeting Packet Page 292 of 311 b. A serious physical injury or wrongful death at or related to a vacation SHORT-TERM rental resulting from the knowing, intentional or reckless conduct of the owner of the vacation SHORT-TERM rental or the owner’s designee; c. The owner of the vacation SHORT-TERM rental or the owner’s designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses, or prostitution, or operating or maintaining a sober living home; or d. The owner of the vacation SHORT-TERM rental or the owner’s designee knowingly or intentionally allowing the use of a vacation SHORT-TERM rental for a special event that would otherwise require a permit or license pursuant to the Town Code or a state law or rule or for a retail, restaurant, banquet space or other similar use. B. PERMIT SUSPENSION PROCESS. 1. WRITTEN NOTICE. THE TOWN SHALL GIVE WRITTEN NOTICE TO THE OWNER AND OWNER’S DESIGNEE THAT THE TOWN INTENDS TO SUSPEND THE SHORT-TERM RENTAL PERMIT. THE NOTICE MUST INCLUDE A DESCRIPTION OF THE VERIFIED VIOLATION OR VIOLATIONS THAT FORM THE BASIS FOR THE SUSPENSION, NOTIFICATION THAT A HEARING MAY BE REQUESTED BY THE OWNER OR OWNER’S DESIGNEE WITHIN 15 CALENDAR DAYS OF SERVICE OF NOTICE, AND A WARNING THAT FAILURE TO TIMELY REQUEST A HEARING IN WRITING MAY RESULT IN SUSPENSION OF THE SHORT-TERM RENTAL PERMIT. 2. SERVICE. SERVICE OF THE NOTICE MAY BE ACCOMPLISHED AND WILL BE DEEMED PROPER AND COMPLETE BY ANY OF THE FOLLOWING METHODS: a. MAILING A COPY OF THE NOTICE BY CERTIFIED OR REGISTERED MAIL TO THE OWNER AND OWNER’S DESIGNEE(S) AS LISTED ON THE MOST RECENT PERMIT APPLICATION; b. EMAILING THE OWNER AND OWNER’S DESIGNEE AS LISTED ON THE MOST RECENT PERMIT APPLICATION; c. HAND-DELIVERING THE NOTICE TO THE OWNER OR OWNER’S DESIGNEE. d. ANY MEANS ALLOWED BY THE ARIZONA RULES OF CIVIL PROCEDURE FOR THE SUPERIOR COURTS OF ARIZONA. 3. HEARING. IF A TIMELY REQUEST FOR A HEARING IS MADE, THE TOWN SHALL SCHEDULE A HEARING DATE BEFORE A HEARING OFFICER WITHIN 30 DAYS OF Meeting Packet Page 293 of 311 RECEIPT OF THE REQUEST AND SERVE NOTICE TO THE OWNER AND OWNER’S DESIGNEE OF THE SCHEDULED DATE AS PRESCRIBED BY SUBSECTION 2. a. THE HEARING SHALL BE HELD DURING REGULAR TOWN BUSINESS HOURS. b. ALL PROCEEDINGS BEFORE THE HEARING OFFICER SHALL BE INFORMAL AND WITHOUT A JURY, EXCEPT THAT TESTIMONY SHALL BE GIVEN UNDER OATH OR AFFIRMATION. THE RULES OF EVIDENCE DO NOT APPLY, EXCEPT FOR STATUTORY PROVISIONS RELATING TO PRIVILEGED COMMUNICATIONS, AND THE HEARING OFFICER MAY PERMIT ANY EVIDENCE DEEMED RELEVANT TO THE ISSUES AT HAND TO BE ADMITTED. NO PREHEARING DISCOVERY SHALL BE PERMITTED, EXCEPT UNDER EXTRAORDINARY CIRCUMSTANCES AS DETERMINED BY THE HEARING OFFICER. THE TOWN IS REQUIRED TO PROVIDE EVIDENCE OF ADJUDICATED VIOLTIONS. c. THE HEARING OFFICER IS AUTHORIZED TO MAKE SUCH ORDERS AS MAY BE NECESSARY OR APPROPRIATE TO FAIRLY AND EFFICIENTLY DETERMINE THE TRUTH AND DECIDE THE CASE AT HAND. d. THE HEARING MAY BE CONTINUED ONE TIME BY THE HEARING OFFICER UPON THE WRITTEN REQUEST OF EITHER PARTY FOR GOOD CAUSE. e. THE OWNER AND THE TOWN SHALL EACH BE GIVEN AN OPPORTUNITY TO PRESENT THEIR RESPECTIVE CASES. THE TOWN SHALL PRESENT ITS CASE FIRST AND EACH PRESENTATION MAY INCLUDE: i. SWORN TESTIMONY; ii. SUBMISSION OF EVIDENCE; iii. PRESENTATION OF WITNESSES; iv. CROSS-EXAMINATION; v. OPENING AND CLOSING STATEMENTS. THE OWNER AND TOWN SHALL EACH BE LIMITED TO TWO HOURS FOR TESTIMONY, PRESENTATION, CROSS-EXAMINATION AND STATEMENTS UNLESS THE HEARING OFFICER, FOR GOOD CAUSE SHOWN, EXTENDS THE TIME. f. THE HEARING OFFICER SHALL RENDER A WRITTEN DECISION WITHIN 30 DAYS OF THE CLOSE OF THE HEARING. g. IF THE OWNER OR OWNER’S DESIGNEE FAILS TO APPEAR AT THE SCHEDULED HEARING, THE HEARING OFFICER SHALL ENTER AN ORDER IN FAVOR OF THE TOWN. h. THE HEARING OFFICER’S ORDER SHALL BE MAILED TO THE OWNER OR OWNER’S DESIGNEE BY CERTIFIED, RETURN RECEIPT REQUESTED MAIL. Meeting Packet Page 294 of 311 i. THE HEARING SHALL BE RECORDED BY AN ELECTRONIC RECORDING DEVICE. C. THE DURATION OF A PERMIT SUSPENSION ORDERED PURSUANT TO THIS ARTICLE SHALL BE DETERMINED BY THE HEARING OFFICER, PROVIDED THAT THE MINIMUM DURATION OF SUCH A SUSPENSION SHALL BE THREE MONTHS, AND THE MAXIMUM DURATION OF SUCH A SUSPENSION SHALL BE TWELVE MONTHS. D. Appeals. A decision to suspend a permit may be appealed by the owner as set forth in Section 8-6-143. Section 8-6-132 Enhanced Penalties A. The remedies in this article are cumulative and the Town may proceed under one or more such remedies. B. In addition to any other penalty pursuant to the Town Code, and notwithstanding any other law, the Town may impose a civil penalty of the following amounts against an owner, OR OWNER’S DESIGNEE, OR GUEST OF THE SHORT-TERM RENTAL if the owner, OR OWNER’S DESIGNEE, OR GUEST causes, allows, facilitates, aides, or abets a verified violation of any provision of this article or fails to perform any act or duty required by this article, related to the same vacation SHORT-TERM rental property within the same twelve (12) month period: 1. Up to five hundred dollars ($500.00) or up to an amount equal to one night’s rent for the vacation SHORT-TERM rental as advertised, whichever is greater, for the first violation. 2. Up to $1,000.00 or up to an amount equal to two nights’ rent for the vacation SHORT-TERM rental as advertised, whichever is greater, for the second violation. 3. Up to $3,500.00 or up to an amount equal to three nights’ rent for the vacation SHORT-TERM rental as advertised, whichever is greater, for a third and any subsequent violation. If multiple violations arise out of the same response to an incident at a vacation SHORT- TERM rental, those violations are considered one violation for the purpose of assessing civil penalties. Meeting Packet Page 295 of 311 C. In addition to any other penalty pursuant to the Code, any property that operates as a vacation rental and fails to apply for vacation rental permit in accordance with this article within thirty (30) days of the application process being made available by the Town, must cease operations immediately. In addition to any fines imposed pursuant to this section, the Town may impose a civil penalty of up to $1,000.00 per month against the owner if the owner or owner’s designee fails to apply within thirty (30) days of receiving written notice of the failure to comply with this article. Section 8-6-143 Appeals A. Any person aggrieved by any decision with respect to the REVOCATION OR denial of or a refusal to issue a vacationSHORT-TERM rental permit, the suspension of a vacation SHORT-TERM rental permit, or a penalty imposed pursuant to this article may appeal the decision by filing a written notice of appeal with the Town Manager no later than thirty (30) days from the date of the decision letter. The notice of appeal shall be on a form approved by the Town. B. An appeal under this section does not operate as a stay of the permit suspension. C. This section is not applicable to judicial actions brought pursuant to Section 8-6-14 or to penalties including fines imposed by a court. Section 8-6-154 Judicial Relief A. Notwithstanding Section 8-6-11 A, any attempted or completed felony act, arising from the occupancy or use of a vacation SHORT-TERM rental that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property’s use as a vacation SHORT-TERM rental for a period that shall not exceed twelve (12) months. B. The Town Attorney PROSECUTOR may initiate proceedings in the Town court or other court of competent jurisdiction to enforce this section. Section 8-6-165 Severability Meeting Packet Page 296 of 311 In the event any section or provision of this article shall be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of this article as a whole or any part thereof other than the part so declared to be invalid or unconstitutional. Section 8-6-176 Prior Code Provisions Superseded Article 8-6 of the Town Code is superseded and replaced in its entirety by the ordinance codified in this article. Section 8-6-18 Effective Date The ordinance codified in this article shall become effective on February 1, 2023. Meeting Packet Page 297 of 311 ITEM 9.e. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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) CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-05, amending Town Code Sections 10-2-1, 10-2-8, and 10-2-9 as related to the distribution of handbills. Staff Summary (background) At the September 1, 2026, Council meeting the Council reviewed the existing ordinances regarding handbills and provided direction to staff on changes that should be made to address legal concerns and maintain freedom in distribution of materials. In response to the Council direction, staff has prepared the following amendments to the existing ordinance. Section 10-2-1 Definitions Add a definition of handbill as follows: "Handbill" means any type of commercial or noncommercial handbill as defined herein. This simple addition allows the change to the rest of the ordinance to use the term handbill and still cover all commercial and noncommercial handbills. Section 10-2-8 Deposit of Handbills on Public Property. The changes remove the distinction between commercial and noncommercial handbills and makes it legal to hand out any type of handbill on public property. Section 10-2-9 Handbills. The main change throughout this section is to remove the use of commercial and noncommercial in describing the ordinance provisions. The main change is in D in response to the direction received by the Council. It was the consensus of the Council to allow all types of handbills to be left on inhabited properties provided they were secured in some manner and not readily visible from the adjacent public way. This language would still prohibit such things as the casual throwing of bags with rocks in them along with a card in someone's driveway or leaving something on a door that is visible from the street. Given the additional way mail and packages are distributed today, the section allowing continued distribution of mail by the United Postal Service was expanded to include other similar carriers. Staff also added a provision to clarify that notices posted by government entities are also exempt. These notices include things such as notifying residents of upcoming street paving projects, utility projects, or code violations. Related Ordinance, Policy or Guiding Principle Meeting Packet Page 298 of 311 Town Code Article 10-2. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Ordinance 26-05. Suggested Motion MOVE TO adopt Ordinance 26-05. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Ord 26-05 Meeting Packet Page 299 of 311 ORDINANCE NO. 26–05 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, AMENDING TOWN CODE SECTION 10-2-1 DEFINITIONS AND SECTIONS 10-2-8 AND 10- 2-9 RELATING TO HANDBILLS. WHEREAS, The Town desires to protect the safety of its residents by limiting the possible accumulation of unwanted materials in and around the street facing yards of their properties; and WHEREAS, The Town desires to maintain streets and sidewalks free of liter and debris; and WHEREAS, The Town recognizes and desires to protect free speech and lawful commercial activities; NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Council adopts the amendments as contained in Exhibit A. SECTION 3. If any provision of this Ordinance is for any reason held by any court of competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed separate, distinct and independent of all other provisions and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 4. In accordance with Article II, Sections 1 and 2, Constitution of Arizona, and the laws of the State of Arizona, the City/Town Council has considered the individual property rights and personal liberties of the residents of the City/Town and the probable impact of the proposed ordinance on the cost to construct housing for sale or rent before adopting this ordinance. SECTION 6. This ordinance shall become effective thirty (30) days after its passage and adoption by the Town Council of the Town of Fountain Hills, Arizona, and its approval by the Mayor and attestation by the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 6th day of October, 2026. Meeting Packet Page 300 of 311 TOWN OF FOUNTAIN HILLS, ARIZONA ATTEST: ____________________________________________ _______________________________________ Gerry M. Friedel, Mayor Bevelyn Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: _____________________________________________ ________________________________________ Rachael Goodwin, Town Manager Town Attorney Meeting Packet Page 301 of 311 ORDINANCE NO. 26-05 EXHIBIT A Chapter 10, Health and Sanitation Article 10-2 Litter; Nuisances Section 10-2-1 Definitions … “HANDBILL” MEANS ANY TYPE OF COMMERCIAL OR NONCOMMERCIAL HANDBILL AS DEFINED HEREIN. … 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 nothingNOTHING 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. 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 Meeting Packet Page 302 of 311 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 THE HANDBILLS ARE PLACED OUT OF VIEW FROM THE ADJACENT PUBLIC STREET OR SIDEWALK. mMailboxes may not be so used when so prohibited by federal postal law or regulations. The provisions of this section shall not apply to: 1. the dDistribution of mail by the United States POSTAL SERVICE OR ANY COMMON CARRIER OR COURIER AUTHORIZED TO DELIVER MAIL OR PACKAGES, nor of newspapers as defined by this article. 2. POSTING OF PROPERTY FOR GOVERNMENT PUPROSES. 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. Meeting Packet Page 303 of 311 ITEM 9.f. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 10/6/2026 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: Regarding Ordinance No. 26–17, amending the Fountain Hills Town Code, Chapter 16 (Streets and Sidewalks), by adding Article 16-4, Automated License Plate Readers. (Presented at the request of Councilmember Skillicorn with the support of Councilmembers Larrabee and Watts). Staff Summary (background) At the Council's regular meeting on September 15, 2026, Councilmember Skillicorn requested (with the support of Councilmembers Watts and Larrabee) to work with the Town Attorney to prepare an ordinance regulating the use of automated license plate readers and return the draft ordinance to the Council for consideration. Ordinance No. 26-17, was drafted with the support of the Town Attorney; the finalized copy was provided by Councilmember Skillicorn. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A Suggested Motion NA FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. ORDINANCE NO 26-17 Meeting Packet Page 304 of 311 ORDINANCE NO. 26–17 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, AMENDING THE FOUNTAIN HILLS TOWN CODE, CHAPTER 16, STREETS AND SIDEWALKS, BY ADDING ARTICLE 16-4, AUTOMATED LICENSE PLATE READERS. WHEREAS, the Town of Fountain Hills has determined that revisions to its Town Code are necessary to protect the privacy of Town residents; and WHEREAS, the Town of Fountain Hills owns or controls public streets, rights-of-way, parks, buildings, and other public property within the Town, and has the authority to regulate encroachments upon and uses of that property, including under Town Code Chapter 16, Article 16-1; and WHEREAS, the Mayor and Council find and determine that automated license plate reader systems and similar vehicle-identification technologies capture images of vehicles and license plates traveling on public streets, convert those images into searchable data, and commonly store or share that data across networked databases; and WHEREAS, the Mayor and Council find and determine that the placement of such systems on Town property or in the public right-of-way converts Town infrastructure into a persistent, location-logged vehicle-tracking network without a warrant, individualized suspicion, or the knowledge of the persons whose movements are recorded, and raises substantial concerns regarding privacy, data sharing with third parties and other jurisdictions, and the Town’s ability to control the use of its own streets and property; and WHEREAS, the Town does not presently operate or host an automated license plate reader system, and the Mayor and Council find that the Town’s policy should be established before such systems are installed rather than after; and WHEREAS, since 2025 at least eleven Arizona jurisdictions, including Flagstaff, Sedona, Sierra Vista, South Tucson, Chandler, Surprise, Tempe, Cave Creek, Payson, and Pinal County, have terminated or declined to renew automated license plate reader contracts, and Arizona agencies have in 2026 disciplined or criminally investigated officers for misuse of such systems, demonstrating that administrative safeguards on networked systems have not proven reliable in practice; and WHEREAS, the Town already requires an encroachment permit to erect or maintain a pole, post, or other structure in the right-of-way, and an express prohibition for this class of devices provides clarity to staff, vendors, law-enforcement partners, and residents and Meeting Packet Page 305 of 311 avoids ad hoc permitting of a use the Council has determined is inconsistent with the Town’s interest in its public property; and WHEREAS, nothing in this Ordinance is intended to restrict a person from installing or operating a personal or commercial security system located wholly on private property for the protection of that property, including a camera that incidentally captures a license plate of a vehicle on or immediately adjacent to that private property. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. Chapter 16, Article 16-4, of the Fountain Hills Town Code is hereby adopted as set forth in Exhibit A. SECTION 3. If any provision of this Ordinance is for any reason held by any court of competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed separate, distinct and independent of all other provisions and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 4. The Mayor, the Town Manager, the Town Clerk and Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this ordinance. SECTION 5. This ordinance shall become effective thirty (30) days after its passage and adoption by the Town Council of the Town of Fountain Hills, Arizona, and its approval by the Mayor and attestation by the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 6th day of October, 2026. TOWN OF FOUNTAIN HILLS, ARIZONA ATTEST: ____________________________________ ______________________________________ Mayor Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ ______________________________________ Town Manager Town Attorney Meeting Packet Page 306 of 311 ORDINANCE NO. 26-17 EXHIBIT A Chapter 16, Streets and Sidewalks Article 16-4, Automated License Plate Readers ARTICLE 16-4 AUTOMATED LICENSE PLATE READERS 16-4-1 Purpose The purpose of this Article is to prohibit the installation and operation of automated license plate reader systems and equivalent vehicle-identification technology on Town public property and in the public right-of-way, while preserving the right of persons to operate personal and commercial security systems located wholly on private property. This Article shall be liberally construed to accomplish that purpose, and nothing in it authorizes any installation or use not expressly permitted. 16-4-2 Definitions In this Article, unless the context otherwise requires: A. “Automated license plate reader system” or “ALPR system” means any camera, sensor, pole, cabinet, trailer, or networked system, whether fixed, semi- permanent, portable, trailer-mounted, or relocatable, that is designed or used to automatically capture an image of a license plate, vehicle, or vehicle identifier, and to convert, store, analyze, transmit, or render searchable that image or derived data, including license-plate numbers, plate images, vehicle make, model, color, or other vehicle-signature characteristics. The term includes systems commonly known as automated license plate readers, ALPRs, LPRs, and any functionally equivalent technology, regardless of vendor. The term does not include a camera or recording system that performs no automated recognition of license plates or vehicles and requires manual review of recorded images to identify a plate. B. “Person” means any individual, corporation, partnership, limited liability company, association, homeowners’ association, vendor, contractor, or other Meeting Packet Page 307 of 311 legal entity, and any governmental agency or unit of government other than the Town, including any law enforcement agency providing services to the Town under an intergovernmental agreement. Obligations of the Town are set forth in Section 16-4-5. C. “Private property” means real property that is not public property and is not public right-of-way. D. “Public property” means real property owned, leased, or controlled by the Town, including without limitation Town buildings, parks, parking lots, drainage facilities, open space, streetlights, traffic signals, utility poles owned or controlled by the Town, and other Town facilities. E. “Public right-of-way” or “right-of-way” has the meaning given in Section 16-1- 1(G) of this Code. F. “Personal security system” means a camera, doorbell camera, video doorbell, floodlight camera, or similar device installed on private property by or for the owner, occupant, or lawful possessor of that property, primarily to protect that property, its occupants, or invited guests, and that is not installed on public property or in the public right-of-way. 16-4-3 Prohibition A. No person shall install, construct, erect, attach, operate, maintain, or cause to be installed, constructed, erected, attached, operated, or maintained an automated license plate reader system on public property or in, on, over, or under the public right-of-way within the Town. B. No person shall use Town streetlights, traffic signals, utility poles, cabinets, conduit, power, or other Town infrastructure to support or serve an automated license plate reader system. C. An automated license plate reader system located on public property or in the public right-of-way is deemed an encroachment within the meaning of Section 16-1-1(B), whether or not it obstructs or interferes with the normal use of the right-of-way, and is unlawful under Section 16-1-3. No encroachment permit, right-of-way permit, or pole-attachment authorization shall be issued for such a system, and any permit or authorization purporting to allow one is void. D. This Section applies to installations by private vendors, homeowners’ associations, business improvement organizations, other units of government, and any other person. Meeting Packet Page 308 of 311 16-4-4 Exemptions This Article regulates only public property and the public right-of-way. Without implying that it otherwise reaches any device located wholly on private property, this Article does not apply to: A. A personal security system located wholly on private property, including a system that incidentally captures an image of a license plate of a vehicle on that private property or of a vehicle on an adjacent street when the camera itself is mounted on the private property and is not mounted on public property or in the public right-of-way. B. A commercial security system located wholly on private property and operated by or for the owner or occupant of that property for the protection of that property, subject to Chapter 18 of this Code where applicable, provided the cameras and supporting equipment are not installed on public property or in the public right-of-way. C. A handheld device, or a device mounted on a lawfully operating motor vehicle, that is used by a peace officer during a specific investigation or patrol and that is not a fixed or semi-permanent installation on public property or in the public right-of-way. A vehicle parked or stationed for the predominant purpose of collecting license-plate or vehicle data from passing traffic is a fixed or semi- permanent installation for purposes of this Article. D. A traffic-control device, traffic-management camera, or intersection- monitoring camera that performs no automated recognition of license plates or vehicles and does not render vehicle images searchable by plate or vehicle attribute. E. Equipment located within the right-of-way of the state highway system under the jurisdiction of the Arizona Department of Transportation. F. License-plate recognition used solely and internally for access control at a gated private community or private parking facility, where the equipment is located wholly on private property. This exemption does not authorize placement of any device in the public right-of-way. 16-4-5 No Town operation or participation Meeting Packet Page 309 of 311 A. The Town shall not acquire, lease, fund, subscribe to, contract for, install, operate, host, or participate in an automated license plate reader system or network, or purchase or accept access to ALPR data or ALPR query services, wherever the system, network, or data is located. No Town officer or employee shall enter into, renew, or extend any contract, subscription, grant, pilot, trial, intergovernmental agreement, or data-sharing agreement for any such system, network, or access. B. No Town officer or employee shall authorize, permit, or agree, by permit, license, lease, intergovernmental agreement, or otherwise, to the placement by another agency or vendor of an automated license plate reader system on public property or in the public right-of-way. Any request by another agency or vendor to place such a system shall be reported to the Council in a public meeting within sixty (60) days of receipt. C. Nothing in this Section prohibits a peace officer providing law-enforcement services in the Town from querying a database lawfully maintained by another jurisdiction when that query is made in connection with a specific criminal investigation and does not involve an automated license plate reader system located in the Town. 16-4-6 Removal; restoration A. Any automated license plate reader system installed in violation of this Article is a public nuisance and an unlawful encroachment as provided in Section 16-4- 3.C. B. Upon written notice from the Town Manager or designee, the owner, vendor, or operator shall deactivate the system within forty-eight (48) hours and shall remove the system and restore the site within fourteen (14) days, or within such longer period as the Town Manager specifies in writing for good cause. C. If the owner, vendor, or operator fails to remove the system after notice, the Town may remove it and restore the site, and shall recover the actual cost of removal and restoration, plus an administrative fee in an amount set by Council resolution, as a civil obligation. The Town may also pursue any remedy available under Article 16-1 and Section 1-8-3. D. Any automated license plate reader system located on public property or in the public right-of-way on the effective date of this Article shall be deactivated within seven (7) days and removed within thirty (30) days of that date without notice under subsection B. The Town Manager shall report to the Council in a Meeting Packet Page 310 of 311 public meeting within ninety (90) days of the effective date whether any such system was identified and the disposition of each. 16-4-7 Enforcement and penalties A. A violation of this Article is a civil offense punishable as provided in Section 1- 8-3 of this Code. Each day a violation continues after notice constitutes a separate offense. B. In addition to any civil sanction, the Town may seek injunctive or other equitable relief, revocation of any related permit, and recovery of costs and attorney fees as allowed by law. C. The Town Manager, Town Engineer, Development Services Director, code compliance officers, and law-enforcement personnel serving the Town are authorized to enforce this Article. D. The Town Attorney may initiate proceedings in the Fountain Hills Municipal Court or other court of competent jurisdiction to enforce this Article. E. Any resident of the Town may bring an action in a court of competent jurisdiction for declaratory or injunctive relief to enforce Section 16-4-5. 16-4-8 Relationship to other provisions A. This Article is in addition to, and does not limit, Fountain Hills Town Code Article 16-1 (Encroachments), Article 16-2 (Small Wireless Facilities), Section 7- 1-6 (Utility Poles and Wires), Chapter 18 (Alarm Systems), and the Fountain Hills Zoning Ordinance. B. If a provision of this Article conflicts with a more general provision of the Fountain Hills Town Code, this Article controls as to automated license plate reader systems. C. Nothing in this Article authorizes a use that is otherwise prohibited by the Fountain Hills Zoning Ordinance or by state or federal law. D. Nothing in this Article limits the collocation of small wireless facilities under Article 16-2 and A.R.S. § 9-591 et seq.; provided that no permit or authorization under Article 16-2 authorizes an automated license plate reader system, which is not a wireless facility within the meaning of that article. Meeting Packet Page 311 of 311