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Home My WebLink About140515P NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. - EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, MAY 15, 2014 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ 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. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. 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. PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Linda M. Kavanagh Councilmember Dennis Brown Vice Mayor Cassie Hansen Councilmember Ginny Dickey Councilmember Henry Leger Councilmember Tait D. Elkie Councilmember Cecil A. Yates Z:\z:\council packets\2014\r140515\140515a.docx Last Printed 5/7/2014 5:45 PM Page 2 of 3 EXECUTIVE SESSION AGENDA • CALL TO ORDER – Mayor Linda M. Kavanagh 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT to A.R.S. §38-431.03.A.4: Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation. (Specifically, (i) contract negotiations with Rural Metro and (ii) Dina Galassini v. Town of Fountain Hills and State of Arizona). 2. ADJOURNMENT REGULAR AGENDA • CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh • INVOCATION – Pastor Tony Pierce, First Baptist Church • ROLL CALL – Mayor Linda M. Kavanagh • MAYOR’S REPORT i) None. • SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor may review recent events attended relating to economic development. ii) Presentation by the League of Cities and Town regarding 2014 Legislation. iii) Presentation by Fire Chief Randy Roberts regarding the Town’s recent ISO Public Protection Class survey. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(H), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Councilmembers may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Council agenda. Z:\z:\council packets\2014\r140515\140515a.docx Last Printed 5/7/2014 5:45 PM Page 3 of 3 CONSENT AGENDA ITEMS (1 – 2) All items listed on the Consent Agenda are considered to be routine, non-controversial matters and will be enacted by one motion and one roll call 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 items will be removed from the Consent Agenda and considered in its normal sequence on the Agenda. 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from April 9, 2014. 2. CONSIDERATION for approval of RESOLUTION 2014-23, abandoning whatever right, title, or interest the Town has in portions of certain public utility and drainage easements located at the rear property line of Plat 431, Block 6, Lot 7 (17246 E. Baca Drive) as recorded in Book 151 of Maps, Page 43, Records of Maricopa County, Arizona. EA2014- 04 (Snajder) REGULAR AGENDA ITEMS 3. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow Arizona Propane to install a 12’ diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E. Shea Blvd(AKA Plat 412B, Block 6, Lot 7 - Case #SU2014-02) 4. CONSIDERATION of a proposed SPECIAL USE PERMIT to allow Arizona Propane to install a 12’ diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E. Shea Blvd (AKA Plat 412B, Block 6, Lot 7 - Case #SU2014-02) 5. CONSIDERATION of RESOLUTION 2014-24, adopting development fees in compliance with A.R.S. §9-463.05 6. CONSIDERATION of approving the SECOND AMENDMENT to the Fire Protection and Emergency Services Agreement with Rural/Metro Corporation. 7. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. NONE. 8. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 9. ADJOURNMENT. DATED this 8th day of May, 2014. 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 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. 2014 Legislative Overview League of Arizona Cities and Towns Session at a Glance •Adjourned sine die on April 24 (102nd day) •General Effective Date: July 24 •1,205 bills introduced •303 bills sent to the Governor •278 bills signed •25 vetoes Key Issues of Session •Exercise of Religion •Common Core •School Vouchers •CPS Reform •Campaign Finance •“Ridesharing services” •Taxability of Solar Panels Sales Tax Reform Update •HB 2111 Implementation •Workgroups –Portal/Administration –Auditing/IGA –Contracting •Tax Policy Analyst, Lee Grafstrom –TPT implementation –MCTC oversight Legislative Recap: Laws Introduced, Passed and Signed HB 2389: NOW: transaction privilege tax changes •League Position: Neutral. •Overview: Enacts numerous changes as follow up to last year’s major TPT initiative (HB 2111), including creating a uniform licensing structure, eliminating license renewal fees and phasing out the Municipal Tax Hearing Office. HB 2571: criminal damage; economic costs •League Position: Support. League Resolution. •Overview: Prescribes the types of costs in determining damages for the offenses of criminal damage and aggravated criminal damage. SB 1326: state parks; donations; fund; transportation. •League Position: Support. League Resolution. •Overview: Establishes the Sustainable State Parks and Roads Fund and allows taxpayers to make a voluntary contribution of their tax refund to the fund. SB 1331: NOW: model city tax code; changes •League Position: Neutral. •Overview: Retroactive to July 1, 1988, stipulates that any changes not reflected in the official copy of the MCTC on file with DOR have no effect and defines new or different tax rate, including in the definition any change that increases taxpayer liability. SB 1413: taxes; manufacturers' electricity sales; exemption •League Position: Neutral. •Overview: SB 1413 exempts electricity and gas used in manufacturing and smelting operations from state TPT and stipulates that if a city or town wishes to provide a similar exemption it must be provided to all manufacturers and must have the same definitions as the state. Legislative Recap: Laws Introduced, Passed and Vetoed HB 2339: firearms; permit holders; public places •League Position: Oppose. •Overview: States that if a public entity wants to deny access to public buildings to concealed weapon permit holders, the public entity has to have electronic metal detection screening equipment and security personnel at the entrances of their public buildings. HB 2517: firearms; state preemption; penalties •League Position: Oppose. •Overview: States that political subdivisions can be enjoined from carrying out rules, taxes, actions or ordinances that violate the state preemption on firearms. It also allows for civil penalties and possible court action towards the responsible party who knowingly or willfully passes such a regulation. Other Notable Vetoes •HB 2024: aggressive solicitation; offense •HB 2262: NOW: transportation network services •HB 2664: income tax revisions •SB 1062: exercise of religion; state action. Potential Upcoming Issues •Special Taxing Districts •Income Tax Reform •Budget Transparency/Accountability •Impact Fees What’s Next? •PSPRS COLA changes •Special Session on CPS •League Conference –Gubernatorial Debate •2014 Elections •52nd Legislature, First Regular Session 1820 W. Washington Street Phoenix, AZ 85007 www.azleague.org 602-258-5786 Questions? ISO Public Protection Classification Classification Factors •Emergency Communications •Fire Department •Water Supply •Community Risk Reduction Grading Scale No Fire Protection Optimal Fire Protection TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:5/15/2014 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Administration Staff Contact Information:Bevelyn J.Bender,Town Clerk;480-816-5115;bbender@fh.az.gov Council Goal: Strategic Values:Civic Responsibility C3 Solicit feedback in decision-making REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from April 9,2014. Applicant:NA Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:A.R.S.§38-431.01 Staff Summary (background):The intent of approving previous meeting minutes is to ensure an accurate account of the discussion and action that took place at that meeting for archival purposes.Approved minutes are placed on the Town's website in compliance with state law. Risk Analysis (options or alternatives with implications): Fiscal Impact (initial and ongoing costs;budget status): Budget Reference (page number): Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s): Staff Recommendation(s):Approve List Attachment(s):None SUGGESTED MOTION (for Council use):Move to approve the consent agenda as listed Prepared by:Approved: j^giMs d3uC><QLA^O^^^- Bevelyn Bender,Town Clerk 5/5/2014 Ken Buchanan,Town Manager 5/6/2014 Page 1 of 1 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:5/15/2014 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Development Services Staff Contact Information:Randy Harrel,Town Engineer (480-816-5112 or rharrel@fh.az.gov Council Goal: Strategic Values:Not Applicable (NA)Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION for approval of RESOLUTION 2014-23 abandoning whatever right,title, or interest the Town has in the certain public utility and drainage easement located at the rear property line of Plat 431,Block 6, Lot 7 (17246 E. Baca Drive) as recorded in Book 151 of Maps, Page 43, Records of Maricopa County, Arizona.EA2014-04 (Snajder) Applicant:Ivica and Leila Snajder Applicant Contact Information:602-686-4564 Property Location:17246 E.Baca Drive Related Ordinance,Policy or Guiding Principle:N/A Staff Summary (background):This item on the Town Council's agenda is a proposal to abandon the public utility and drainage easement located at the rear property line of Plat 431,Block 6, Lot 7 (17246 E.Baca Drive) as shown in Exhibit "A".The property owner desires the assurance that any future improvements made to the lot will not be infringed upon by the construction of utilities. All affected utility companies have been notified of this abandonment proposal and have approved the proposed abandonment of these public utility easements.A 10*x 10'Public Utility Easement at the southwest corner of the lot will be granted by separate document,for the existing SRP transformer and any potential future utility boxes there. The Engineering Section has reviewed the site to ascertain any drainage issues in addition to the Town's general interest inthe easement.Itis the professional opinion of the Engineering Section that there is no need for the Town to retain the drainage easement proposed to be abandoned,with the understanding that certain lots withinthis subdivision are subject to lot-to-lot drainage runoff.The property owner of Lot7 is required to pass the developed flows generated by the upstream lots across their property. Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,listhere: N/A Page 1 of 2 Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):Staff recommends approval of Resolution 2014-23,withthe following stipulation: *Grant a 10'x 10'Public Utility Easement at the southwest corner of the lot. List Attachment(s):Vicinity Map; Aerial Photo Map;Resolution;Exhibit "A" Map SUGGESTED MOTION (for council use):Move to approve the abandonment of easement of the public utility and drainage easement at Plat 431,Block 6, Lot 7, with stipulation. prepared ldyHar el,Towr)Engirtee)" Approved:f \ Ken Buchanan,Town Manager 4/2^/2014 5/6/2014 Page 2 of2 NORTH SCALE:1" =3500' TOWN OF FOUNTAIN HILLS DEVELOPMENT SERVICES DEPARTMENT VICINITY MAP Mcdowell mountain park TOWN BOUNDARY! SALT RIVER PIMA MARICOPA INDIAN COMMUNITY :•••^ DEVELOPMENT SERVICES AERIAL PHOTO MAP PLAT 431,BLOCK 6,LOT 7 17246 E BACA DRIVE LEGEND LOTLINE ROW EASEMENT FLOODPLAIN — SUBJECT SITE 0 100'200" SCALE: 1" =200" AERIAL FLIGHT DATE:10/13 RESOLUTION 2014-23 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN PORTIONS OF THE DRAINAGE EASEMENT AND PUBLIC UTILITY EASEMENT AT THE REAR PROPERTY LINE OF PLAT 431,BLOCK 6, LOT 7,FOUNTAIN HILLS,ARIZONA,AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY,ARIZONA,RECORDED IN BOOK 151 OF MAPS,PAGE 43. WHEREAS,the Mayorand Councilofthe Town of Fountain Hills (the "Town Council"),as the governing bodyof real property located inthe Town of Fountain Hills (the "Town"),may require the dedication of public streets,sewer,water,drainage,and other utility easements or rights-of-way withinany proposed subdivision;and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement,deed,subdivision,plat or other lawful means;and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,as follows: SECTION 1.That the certain public utility and drainage easement,located at the northerly property line of Plat 431,Block 6, Lot 7,Fountain Hills,as recorded the Office of the County Recorder of Maricopa County,Arizona, Book 151 of Maps,Page 43,and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference,are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff.The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2.That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, May 15,2014. FOR THE TOWN OF FOUNTAIN HILLS: Linda M.Kavanagh,Mayor REVIEWED BY: Kenneth Buchanan,Town Manager ATTESTED TO: Bevelyn J.Bender,Town Clerk APPROVED AS TO FORM: Andrew J.McGuire,Town Attorney 6 0 15'30" SCALE: 1" -30" DATE:4-24-14 TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 431 BLOCK 6 LOT 7 ro N 89'55'10"W ABANDON 20'- P.U.E.Sc D.E. BLOCK 6 LOT 7 PROPOSED 10'x10'P.U.E. "(BY SEPARATE INSTRUMENT) EAST 85.00' BACA DRIVE 8 Tea 7J*I* TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:5/15/2014 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Development Services Staff Contact Information:Robert Rodgers,Senior Planner (480)816-5138 rrodgers@fh.az.gov Strategic Values:Not Applicable (NA)Council Goal:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow Arizona Propane to install a 12'diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E.Shea Blvd. AKA Plat 412B,Block 6,Lot 7. (APN 176-10-249)(Case #SU2014-02) CONSIDERATION of a SPECIAL USE PERMIT to allow Arizona Propane to install a 12'diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E.Shea Blvd. AKA Plat 412B,Block 6, Lot 7. (APN 176-10-249)(Case #SU2014-02) Applicant:David Ross,Ross Design Group LLC c/o Martin Dawson,Arizona Propane Applicant Contact Information:4342 N. Civic Center Plaza,Scottsdale,AZ 85251 Property Location:17251 E.Shea Blvd,Fountain Hills,AZ Related Ordinance,Policy or Guiding Principle: Fountain Hills Zoning Ordinance Chapter 2,Section 2.02 -Special Use Permits Fountain Hills Zoning Ordinance Chapter 12,Section 12.03 -Special Use Permits Fountain Hills Zoning Ordinance Chapter 19 -Architectural Review Guidelines Staff Summary (background): EXISTING ZONING:"C-1 Neighborhood Commercial &Professional Zoning District" EXISTING CONDITION:Vacant pad within an existing office & retail center. SURROUNDING LAND USES AND ZONING: NORTH:Shea Blvd,then Crossroads Convenience Center,zoned "C-2 PD" SOUTH:Salt River Pima-Maricopa Indian Community EAST:Shea Blvd,then Crossroads Convenience Center,zoned "C-2 PD" WEST:Single-Family Residential,zoned "R1-43" Arizona Propane proposes to construct a 12'round, 6,000 gallon propane storage tank and conduct associated gas sales at 17251 E.Shea Blvd,currently known as Shea East Plaza (Kern Plaza). The tank will be above ground and surrounded by an 8' tall masonry wall.The wall will be designed and painted to match the existing Page 1 of 4 AZ Propane SU #2014-02 style of the office building.The applicants will also be renovating the former coffee kiosk into an attendant's office.The kiosk has already been repainted to match the existing plaza style. As this use is not specifically listed in the zoning ordinance,staff has determined that the use is similar in nature with retail gasoline sales activities which generally fall under the Special Use category listed in Section 12.04.E of the Zoning Ordinance.While not an exact match,staff feels the use is similar enough to qualify for Special Use consideration in the C-1 zoning district. APPLICABLE REGULATIONS: If the Special Use Permit is approved,the applicant will be required to obtain a building permit for the improvements within six months ofTown Council approval. If the applicant fails to obtain a buildingpermit within the allowed time or if the building permit is allowed to expire,the Special Use Permit will lapse. Section 2.02.D of the Zoning Ordinance indicates that the following factors should be considered in the review of a Special Use Permit: 1.Special conditions influencing its location. Staff: The plaza is located on Shea Blvd which is the main east-west arterial street in Fountain Hills.Access onto Shea Blvd is excellent.The plaza is zoned for commercial uses and it currently has only one tenant. 2.Proposed location of buildings,parking and other facilities. Staff: No new buildings are proposed.The walled enclosure containing the propane tank is the only structure to be built. The existing kiosk will receive tenant improvements on the inside only. The plaza parking is adequate to handle this additional use. 3.Amount of traffic likely to be generated. Staff: The proposal will not generate traffic in excess of the parking lot's circulation and design capacity. 4.Influence that the above factors are likely to exert on adjoining properties. Staff: The neighborhood immediately behind the plaza is currently a single-family residential area. Neither the neighborhood nor Firebrick Drive is accessible by car from the plaza. Noise, litter, or other undesirable conditions that could negatively affect the neighborhood are not expected to be any greater than normally associated with commercial plazas.The Councilshould thoroughly review the mitigation methods Arizona Propane plans to use, and if they are determined to be inadequate,stipulate what additional measures that you recommend be taken. In order to approve a Special Use Permit,the findings of the Council must be that the establishment, maintenance,or operation of the use or building applied for will not be detrimental to the public health,safety, peace,comfort, and general welfare of persons residing or working in the neighborhood of such proposed use, nor shall it be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the town. The Council may also impose any conditions in connection with the use permit that it deems appropriate to secure the intent and purposes of this ordinance and may recommend requiring guarantees and evidence that the conditions are being,or will be followed. If the Council determines that the application and supporting data do not indicate that all applicable conditions and requirements of this ordinance will be satisfactorily mitigated or met, it may deny the Special Use Permit. Risk Analysis (options or alternatives with implications): Approval of the Special Use Permit will allow Arizona Propane to install a 12'diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades.Denial of the Special Use Page 2 of4 AZ Propane SU #2014-02 Permit will require that the applicants either look for an alternative location or decide not to pursue the proposal. Fiscal impact (initial and ongoing costs;budget status):NA Budget Reference (page number):NA Funding Source:NA If Multiple Funds utilized,list here:NA Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s): The Planning &Zoning Commission voted to forward a recommendation to approve the Special Use Permit subject to the stipulations outlined in the staff report. Staff Recommendation(s): Staff recommends that the Town Council approve the proposed Special Use Permit subject to the following stipulations: 1.Applicant is required to obtain a building permit for the improvements within six months of Town Council approval.Failure to obtain a building permit within the allowed time or if the building permit is allowed to expire,the Special Use Permit will lapse. 2. Applicant shall submit a landscape plan depicting additional plantings designed to better screen the propane tank from street view.Such plan shall be submitted,approved and completed prior to a Certificate of Occupancy. 3.Arizona Propane shall have and maintain a valid,up-to-date Fountain Hills Business License. 4.Building signage shall be in full compliance with the Fountain Hills zoning ordinance. 5.The external areas of the plaza,including parking lots,will be kept clean and any littershall be removed within 2 hours following closing for the evening. 6.Applicants are required to follow the standard requirements of the Fountain Hills Fire Department as outlined in the memorandum of 4/2/2014.On-site inspections will be conducted by the Fire Department to determine compliance.(480)816-5114. 7. Applicants shall comply with the Fountain Hills Town Engineer's memorandum of 4/15/2014 regarding the emergency access gate on Firebrick Drive. List Attachment(s): 1.Application 2.Applicant's Narrative 3.Site Plans (4 pgs) 4.Photo of Tank 5.4/15/2014 Town Engineer Memo 6.4/2/2014 Fire Dept Memo 7.4/24/14 P&Z Meeting Minutes Page 3 of4 AZ Propane SU #2014-02 SUGGESTED MOTION (for Council use): Move to approve the SPECIAL USE PERMIT to allow Arizona Propane to install a 12'diameter,6,000 gallon propane tank within a walled enclosure and to install other site upgrades with additional landscaping as presented and subject to the stipulations outlined in the staff report. Prepared by: Robert Rodgers,Sfenfep-PTanner 5/5/2014 Director's Approval: Paul Mdbd,Development Services Director 5/6/2014 Approved: &±I AACjxIuaOla^ Ken Buchanan,Town Manager 5/7/2014 Page 4 of4 DONot write in this space -official use only Filing Date 3ffl_doN Accepted By ^^tfexfAz^Ji^,>•.-,,..,,->,A k<_.^-. Fee Accepter/^ —-«--:*g *utu.»v *%£ Case ManagerSEISZ^-S^Jij8 -Jl 'tp&6%<JV The Town of Fountain Hills Abandonment (Plat or Condominium) Area SpecificPlan &Amendments Condominium Plat Development Agreement General Plan Amendment Planned UnitDevelopment Appealof Administrator's Interpretation Concept Plan Cut/FillWaiver HPE Change or Abandonment Ordinance(TextAmendment) Preliminary/Final Plat Replat (Lot joins, lot splits, lot line adjustments) Rezoning (Map)^Special Use Permit &Amendments Site Plan Review (vehicles sales)Temporary Use Permit (Median Fee,if applicable) Variance Other ./J05^~A PROJECT NAME /NATURE OF PROJECT:'%W&Pfctfi^/jZfifA/L <&l£<S> LEGAL DESCRIPTION:Plat Name PROPERTY ADDRESS:/7&J bGJfrM* PARCEL SIZE (Acres)I^^JSS NUMBER OF UNITS PROPOSED EXISTING ZONING C-/ M&'^ibiS ^^•^B^^^BB Block Lot ASSESSOR PARCEL NUMBER f*7&-/°~WT~ TRACTS ^__ PROPOSED ZONING ^'//fP&X>l&ft/fair pp""frwfaf/fittt&itt'Snruc./tos»iMiw DavPhone to-f*-7W *£McteK JO*WW*Citv:OtitiAaxK/k Zip:&&( Email: Owner~4irs.&t?cfbe,fk n>sc£e*~ Mr. Ms'.Address:Ffe*Hi.4h*llvJ City:MmlL State:/fe Zip:$&$ ,DayPhone Ifapplication isbeingsubmittedpy-somepnepUprthan theownerofthepropertyunderconsideration,the section below mustbe completed.C. SIGNATURE OF OWNERS I HEREBY AUTHORIZE S—~Pr •••/.f~7 Please Print Subscribed and sworn before me this day of. My Commission Expires, Notary Public Applicaiion -Revised 10-2007 .,/ DATE 3/7 TO FILE THIS APPLICATION. ,20 5liO£>i M--0 TKj*H7-70 redact redact Narrative:17257 E.Shea Blvd,Fountain Hills Arizona Arizona Propane,Fountain Hills CI zoning:request for special use permit Arizona Propane, has moved their Corporate Offices in 2013 to 17521 E.Shea Blvdin Fountain Hills. Martin Dawson the ownerof Arizona Propane has lived in Fountain Hills since the 1970s.He isa long time resident. The property is zoned C-1 which allows for a special use permit application in the current zoning for retail sales of gasoline subjectto compliance with applicable fire and safety codes.(limited to4 dispensing units,serving a maximum of8 cars simultaneously)In this case it will bea single dispensing unit servicing 1 vehicle at a time . Arizona Propane has3 locationsinthe Maricopa County region,aswellas Casa Grande and Tucson. Theyarean established business ofover30 years,complying with all applicable codes and laws at each facility.Arizona Propane has the experience of working with all municipalities,codes and agencies,in order to run their day to day facilities. The parcel is currently avacantlotand parking area located directly along the eastsideoftheir offices. All driveways,drainage,catch basins and parking arein place.5 Parking spaces will be removed in order to allow for truck pull uptothe proposed dispenser.See the plan.Also we are providing revised parking calculations on our site plan drawing for reference. The existing drive thru coffee building,which is vacant,is being proposed as Arizona Propane's pay station drive thru for patrons.It will bestaffedwith an attendant,who will comeout through the existing rear door,and fill the patrons tanks.Thus it will bestaffedto increase safetyas well asbetter service.All patrons will pay atthe drive thru window for their refils.At this time there is no way to target theamountof traffic,however It isnot anticipated thatthe traffic will bevery much,based upon propane being a specialized fuel,unlike gasoline,which is used in nearly every vehicle.Refilling of bbq tanks, and recreationalstyle vehicles, aswell asa few propane powered vehicles willbe the norm.Thus traffic will be limited.Due to an attendant on site,the need for handicapped requirements immediately atthe fill station will notbe required.(The entire adjacent office building is set up for handicapped accessibility currently) The storagetank will be refilled as necessary.A30 foot standard truck witha3,000 gal.tank will dothe refilling utilizing the same traffic path indicated for all vehicular traffic onsite.This truck complies with allturning radius requirements.No larger trucks are required. Allbuilding codes,planningand fire ordinances will be complied to. Arizona Propane wouldverymuch like to havethis retail sales dispensing station immediately adjacent to their coroporate offices.It isan integral partof their business,and will help them retaintheir corporate offices in fountain hillsfor years to come. PARCELNUMBER(APN):ZONING:OCCUPANCYGROUP:CONSTRUCTIONTYPE:LOTSIZE:PARKING:176-1c-ioPRO!occVB(174,6EXIS 5)SPACESREMOVEDFORETAILPROPANESALES.REA DUMPSTER ENCLOSURE EXIST'G^ 12'DIA.PROPANE TANK DECORATIVE 4/„;MASONRY SCREEN WALL +8'-0"HIGH P.U.AREA.GAS DISTRIBUTION POINT E) 5UAR0 .CACTUS 4 <& T t $> IIST'G SAGUARO JS iXIST'G 2-WAY CIRCULATION /"~\ % * -T\A ./ . ] ivV:•',. '.'*H*T«t i . '". a '! I-:''- i••i ffiP 'W 1 :\•••'•••'..•'•• ft ^•'••r\*>€&/% 1 v5 1 •.":.;'' -.>.---;i-^-;-.• • ^^^^H^^^^^^^^^^H • . ^JBfcr^,-- . .^u'"-•-_. ••?a& ^- • _ ^?^^R5 Arizona Propane -Opticom Gate TOWN OF FOUNTAIN HILLS INTER OFFICE MEMO TO:Robert Rodgers,AICP/Senior Planner CC:Paul Mood,P.E./Dev.Services Dir. Dave Ott/Fire Marsh; FR:Randy L.Harre Town Engineer DATE:4-15-14 RE:Arizona Propane Stipulation to Upgrade the Emergency Gate at the Firebrick emergency access As a stipulation of the Site Plan for the proposed Arizona Propane site (on the south side of Shea Blvd.adjacent to the east Town limits),the Bngineering Section has requested a stipulation that the applicant provide a motor-operated,Opticom-controlled,emergency access gate at the existing emergency access driveway from the far east end of Firebrick Drive into this site. This motor-operated,Opticom-controlled emergency access gate had been a requirement of previous plans for this property, but had never actually been constructed.(Reference: "Kern Plaza", Grant of Easement Map, Note 4 (2006);"Kern Plaza", sealed Grading and Drainage Plan (2004);"19000 Place",Engineering Building Permit Review Comments (2001); etc.) With the proposed, increased fire hazard due to the proposed propane tank, dispensing, and container filling operations,this emergency access gate needs to be constructed with this proposed project. There are several emergency uses that this EVP (Emergency Vehicle Pre-emption - i.e. an Opticom-actuated.motorized)gate provides: •In a potential propane fire,other fire,or emergency medical need on-site at this Plaza,the proposed EVP gate allows faster fire/EMT response into the site from Fire Station #2 (the closest fire station, which lies on Saguaro Blvd. south of Shea Blvd.) via Firebrick Drive. (Currently,since the existing chain gate at this location has a Fire Department padlock, a fire truck would have to stop, a fireiighter/EMT get out of the truck,unlock and remove the padlock, physically open the chain gate, and then get back into the truck, in order to drive through the gate. Note: Although relocation of Fire Station #2 to a Shea Blvd. location has been under discussion for the past decade,there currently is no approved funding, nor any current Town commitment,to relocate this fire station.) • This gate provides emergency vehicle access to the east side of a potential emergency scene (fire or EMT) on or along Shea Blvd., east of Monteray Drive. • This gate provides the ONLY available, potential Shea Blvd. traffic rerouting around (especially a medium-to-long-term)emergency scene on or along Shea Blvd.,from west of Cereus Wash to the east Town limit (and the BEST available emergency traffic rerouting for Shea Blvd.,from Saguaro Blvd. to the east Town limit). Fountain Hills Fire Department Office of the Fire Marshal Dave Ott,Assistant Chief 16705 E.Avenue of the Fountains Fountain Hills,AZ 85268 (480)816-5114 Fax (480)837-6167 P & Z Review 4/2/2014 RE:SU2014-02 The proposed 6,000 gallon above ground Liquefied Petroleum Gas tank shall comply with the 2012 International Fire Code Chapter 61 and the 2014 NFPA 58. Dave Ott.Assistant Chief Page 1 of 4 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE PLANNING & ZONING COMMISSION APRIL 24, 2014 Chairman Lloyd Pew opened the meeting at 6:30 p.m. The following Commissioners were present: Chairman Lloyd Pew, Commissioners Angela Strohan, Gene Slechta and Steven Harris. Also in attendance were Paul Mood, Director of Development Services, Robert Rodgers Senior Planner, and Janice Baxter Executive Assistant and Recorder of the Minutes. Commissioner Stan Connick was absent and did not contact staff in advance. Vice-Chairman Michael Archambault was unable to attend and notified staff in advance. Chairman Lloyd Pew requested participation in the Pledge of Allegiance and a moment of silent reflection. ROLL CALL: Commissioner Steven Harris present Chairman Lloyd Pew present Commissioner Angela Strohan present Commissioner Gene Slechta present Vice-Chairman Mike Archambault absent Commissioner Stan Connick absent CALL TO THE PUBLIC No one wished to speak. AGENDA ITEM #1 - CONSIDERATION of APPROVING the meeting minutes from the regular session of the Planning and Zoning Commission dated Thursday, March 27, 2014. Commissioner Angela Strohan MOVED to APPROVE the meeting minutes dated Thursday, March 27, 2014, as written. Commissioner Steven Harris SECONDED. A roll call was taken and the MOTION CARRIED 4 – 0, by those present. Chairman Lloyd Pew aye Commissioner Steven Harris aye Commissioner Angela Strohan aye Commissioner Gene Slechta aye AGENDA ITEM #2 – PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow Arizona Propane to install a 12’ diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E. Shea Boulevard, aka Plat 412B, Block 6, Lot 7. (APN 176-10-249) Case Number SU2014-02. Robert Rodgers gave a presentation and included a PowerPoint presentation (Exhibit “A”). Mr. Rodgers stated that this was an application by Arizona Propane for a Special Use Permit to allow them to establish a retail propane gas vending station at 17251 E Shea Boulevard. He added that Page 2 of 4 the property was located on the southern end of Shea Boulevard in the Shea East Commercial Plaza; formerly known as Kern Plaza. Mr. Rodgers pointed out that the property was on the southern town property line and abuts the Pima Maricopa Reservation on the south and the Firerock Estates single-family residential neighborhood on the west and is zoned C-1 – Neighborhood Commercial. Mr. Rodgers added that dispensing fuel had been determined to require a Special Use Permit in this zoning district. Mr. Rodgers stated that the proposal was to install one, 12’ diameter propane tank for dispensing of fuel and that the tank would be within an 8’ tall gated block wall enclosure. He added that the enclosure would be constructed to match the existing plaza architecture and colors. Mr. Rodgers pointed out that a station attendant would be responsible for filling the customer’s tanks, accepting payment, and would use the existing kiosk as the station’s office and point of sale. Mr. Rodgers added that additional landscaping has been proposed to help soften the visual impacts without blocking visibility from Shea Boulevard. Mr. Rodgers explained that the existing chain across the rear emergency access drive would be replaced with a motorized gate with an opticom system for emergency vehicle use only. He added that there would be six parking spaces replaced with a curbside pullout for customer vehicles being serviced and that parking would still remain in conformance with ordinance requirements. Mr. Rodgers stated that Zoning Section 2.02.D indicated that four primary factors should be considered during the review of a Special Use Permit application: 1. There are special conditions that influence the location of the proposed use. 2. The location of the proposed buildings, parking, etc, was logical and reasonable. 3. Traffic would not be adversely affected. 4. There would be minimal or no effect on nearby properties. Staff felt that these conditions had been adequately addressed in the proposal and would recommend that the Commission forward a recommendation to Town Council to approve the Special Use Permit to allow propane dispensing, subject to the stipulations listed in the staff report as follows: 1. Applicant is required to obtain a building permit for the improvements within six months of Town Council approval. Failure to obtain a building permit within the allowed time or if the building permit is allowed to expire, the Special Use Permit will lapse. 2. Applicant shall submit a landscape plan depicting additional plantings designed to better screen the propane tank from street view. Such plan shall be submitted, approved and completed prior to a Certificate of Occupancy. 3. Arizona Propane shall have and maintain a valid, up-to-date Fountain Hills Business License. 4. Building signage shall be in full compliance with the Fountain Hills zoning ordinance. Page 3 of 4 5. The external areas of the plaza, including parking lots will be kept clean and any litter shall be removed within 2 hours following closing for the evening. 6. Applicants are required to follow the standard requirements of the Fountain Hills Fire Department as outlined in the memorandum of April 2, 2014. One-site inspections will be conducted by the Fire Department to determine compliance. (480) 816-5114. 7. Applicants shall comply with the Fountain Hills Town Engineer’s memorandum of April 15, 2014, regarding the emergency access gate on Firebrick Drive. Mr. Rodgers pointed out that the applicants were present to answer questions. Those in attendance representing Arizona Propane were Justin Dawson Vice-president of Arizona Propane, Jerry Thompson General Manager of Arizona Propane and David Ross President of Ross Design Group Architecture located at 4342 Civic Center Plaza, Scottsdale, Arizona 85251. Chairman Lloyd Pew opened the Public Hearing at 6:35 p.m. Since no one wished to speak Chairman Lloyd Pew closed the Public Hearing at 6:35 p.m. AGENDA ITEM # 3 – CONSIDERATION of a proposed SPECIAL USE to allow Arizona Propane to install a 12’ diameter propane tank within a walled enclosure and to install additional landscaping and other site upgrades at 17251 E. Shea Boulevard, aka Plat 412B, Block 6, Lot 7. (APN 176-10-249) Case Number SU2014-02. Commissioner Angela Strohan asked the applicant if the tank would be painted a color other than a bright white. Justin Dawson answered that the company’s color is beige and would blend in with the surrounding buildings. Mr. Dawson pointed out that the beige paint color would be used on the surrounding walls and the tank. Commissioner Gene Slechta asked the applicant what was the expected volume of sales on a daily basis. Justin Dawson answered that the company was estimating approximately 20 customers per day at this location and included all barbeque and motor fills. Commissioner Slechta then asked what would be the days and hours of operation. Mr. Dawson answered that they plan to be open from 8:00 a.m. until 4:30 p.m., Monday through Friday. Chairman Lloyd Pew asked if there were any further questions or discussions. None were initiated. Chairman Pew asked for a motion from the Commission. Commissioner Gene Slechta made a MOTION to FORWARD A RECOMMENDATION to the Town Council to APPROVE the proposed Special Use Permit to allow Arizona Propane to install a 12’ diameter, 6,000 gallon propane tank within a walled enclosure and to install other site upgrades with additional landscaping as presented and subject to the stipulations outlined in the staff report. Commissioner Angela Strohan SECONDED and the MOTION CARRIED 4- 0, by those present. Page 4 of 4 AGENDA ITEM #5 – COMMISSION DISCUSSION/REQUEST FOR RESEARCH None AGENDA ITEM #6- SUMMARY OF COMMISSION REQUEST from Senior Planner. None AGENDA ITEM #7 – REPORT from Senior Planner and Zoning Administrator, Planning and Zoning Division of Development Services. Nothing to report. AGENDA ITEM #8 - ADJOURNMENT. Commissioner Gene Slechta MOVED to adjourn and Commissioner Steven Harris SECONDED and the MOTION CARRIED 4-0. The meeting ADJOURNED at 6:39 p.m. FOUNTAIN HILLS PLANNING & ZONING COMMISSION BY: _________________________________________ Chairman Lloyd Pew ATTEST: _________________________________ Janice Baxter, Recorder CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Fountain Hills Planning and Zoning Commission held on the 24th day of April 2014, in the Town Council Chambers, 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268. I further certify that the meeting was duly called and that a quorum was present. Dated this 24th day of April 2014 _________________________________ Janice Baxter, Recorder 2165619.1 Page 1 of 2 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date: 5/15/2014 Meeting Type: Regular Session Agenda Type: Regular Submitting Department: Administration Staff Contact Information: Andrew McGuire, Town Attorney (602) 257-7664 Strategic Values: Not Applicable (NA) Council Goal: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF RESOLUTION 2014-24, adopting development fees in compliance with A.R.S. § 9-463.05. Applicant: N/A Applicant Contact Information: N/A Property Location: N/A Related Ordinance, Policy or Guiding Principle: Arizona Revised Statutes ("A.R.S.") § 9-463.05 Staff Summary (background): A.R.S. § 9-463.05 governs how development fees are calculated for municipalities in Arizona. Under the updated requirements of A.R.S. § 9-463.05, a development impact fee study is segmented into three major components as follows: 1. The Land Use Assumptions (“LUA”) document identifies the current and projected service units by service area. 2. The Infrastructure Improvements Plan (“IIP”) identifies the current and future facilities to serve the projected growth identified within the LUA. 3. The Development Impact Fee Report ("Fee Report") outlines the proposed development impact fee by fee category and service area, incorporating the IIP-eligible facilities and service units. The Fee Report will also incorporate capital funding analyses, offset calculations and cash flow projections for the proposed development impact fees. The adoption of a new IIP and proposed fees includes several opportunities for public input. The adopted IIP/LUA and the proposed development fees resulting therefrom are posted on the Town’s website. The following is the schedule of public hearings and adoption of the IIP and development fees: December 5, 2013 Provide public notice by making IIP available and posting all materials on Town’s website. - COMPLETE December 19,2013 -Town Council Meeting Overview of LUA and IIP at regularly-scheduled Council meeting.-COMPLETE February 6,2014 -Public hearing on the LUA and IIP. -COMPLETE March 10,2014-Town Council Meeting Possible adoption of the LUA and IIP. Set public hearing on development fees and provide notice of intent.-COMPLETE April 9,2014 - Town Council Meeting for public hearing on the development fees.- COMPLETE May 15,2014 - Town Council Meeting for possible adoption of development fees. August 1,2014 -Latest Effective Date of updated development fees. Risk Analysis (options or alternatives with implications):Due to the multi-step process,and the requirement to adopt the new fees by August 1,2014,the schedule does not allow for any changes in these meeting dates in order to meet the adoption deadline. Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s): Staff Recommendation(s): List Attachment(s):Development Impact Fee Report SUGGESTED MOTION (for Council use): N/A Prepared by: NA Director's Approval: NA NA^ 2165619.1 Page 2of2 2165245.1 RESOLUTION NO. 2014-24 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING DEVELOPMENT FEES IN COMPLIANCE WITH STATE LAW. WHEREAS, Arizona’s enabling legislation for development fees, ARIZ. REV. STAT. § 9-463.05 (the “Development Fee Statute”) requires the Town to produce three integrated documents prior to assessing development fees: (i) land use assumptions (“LUA”), (ii) an infrastructure improvements plan (“IIP”), and (iii) a development fee study based upon the LUA/IIP. The Development Fee Statute also requires a two-phase adoption process, whereby the LUA and IIP are reviewed, refined and adopted before the development fee study is addressed; and WHEREAS, in accordance with the Development Fee Statute, (i) the LUA and IIP were released to the public, (ii) the Town Council held a public hearing on February 6, 2014, to receive public comment on the LUA/IIP and (iii) The Town Council approved Resolution 2014-14 on March 10, 2014, adopting the LUA/IIP and giving notice of its intent to assess development fees; and WHEREAS, in accordance with the Development Fee Statute, the Town Council held a public hearing on April 9, 2014, on the document entitled Development Impact Fee Report, dated March 11, 2014, prepared by Raftelis Financial Consultant, Inc. (the “Preliminary Development Fee Study”); and WHEREAS, the Preliminary Development Fee Study has been updated to include comments received from the public, including representatives of the development community (the updated document is referred to as the “Final Development Fee Study”); and WHEREAS, the Town Council desires to conclude the second phase of the development fee adoption process by approving the Final Development Fee Study. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Final Development Fee Study is hereby adopted in substantially the form and substance of Exhibit A, attached hereto and incorporated herein by reference. SECTION 3. In accordance with the Development Fee Statute, the development fees are set forth in the Final Development Fee Report shall not be effective until 75 days after the date of this Resolution. SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. 2165245.1 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, May 15, 2014. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Kenneth W. Buchanan, Town Manager Andrew J. McGuire, Town Attorney 2165245.1 EXHIBIT A TO RESOLUTION NO. 2014-24 [Final Development Fee Study] See following pages. Development Impact Fee Report Final |May 7, 2014 Town of Fountain Hills ARIZONA ii Contents Introduction and Overview ...........................................................................................................................1 Methodologies ..........................................................................................................................................3 Fire and Emergency Development Impact Fee .............................................................................................4 Eligible Assets Replacement Value ...........................................................................................................5 Infrastructure Improvements Plan Projects .............................................................................................5 Cash Flow ..................................................................................................................................................6 Debt Proceeds, Issuance Costs and Debt Service .................................................................................6 NPV of Future Growth-Related Debt Interest ......................................................................................6 Revenue Projections .............................................................................................................................6 Parks and Recreation Development Impact Fee...........................................................................................7 Eligible Assets Replacement Value ...........................................................................................................7 Infrastructure Improvements Plan Projects .............................................................................................8 Cash Flow ..................................................................................................................................................8 Revenue Projections .............................................................................................................................8 List of Tables Table 1 Fire and Emergency Development Impact Fees ................................................................2 Table 2 Parks and Recreation Development Impact Fees ..............................................................2 Table 3 Current Development Impact Fees (Except Streets)..........................................................3 Table 4 Current Strees Development Impact Fees .........................................................................3 Table 5 Fire and Emergency Development Impact Fees ................................................................5 Table 6 Parks and Recreation Development Impact Fees ..............................................................7 iii Abbreviations and Acronyms ARS –Arizona Revised Statutes CIP –Capital Improvements Plan DIFs, Impact Fees, or Development Fees –Development Impact Fees EDU –Equivalent Development Unit EMS –Emergency Medical Services ENR-CCI –Engineering News Record Construction Cost Index Fee Report –Development Impact Fee Report FY –Fiscal Year IIP –Infrastructure Improvements Plan LOS –Level of Service LUA –Land Use Assumptions MPC –Municipal Property Corporation NPV –Net Present Value NPS –Necessary Public Services RCN –Replacement Cost New RFC –Raftelis Financial Consultants SB –Senate Bill SFR –Single-Family Residential Sq. Ft.–Square Foot or Feet 1 Introduction and Overview The Town of Fountain Hills (Town) retained the team of Raftelis Financial Consultants, Inc. (RFC or Raftelis)1, to complete an update of the Town’s development impact fees for compliance with the requirements of Arizona Revised Statutes (ARS) § 9-463.05. Under the updated requirements of ARS § 9-463.05 a development impact fee study is segmented into three major components as follows: 1.Land Use Assumptions (LUA)identify the current and projected service units by service area. The Town LUA is summarized in the Final LUA and IIP Report dated March 10, 2014. This report outlines the projected growth in residential population and housing units and non-residential employment and square feet. 2.Infrastructure Improvements Plan (IIP) identifies the current and future facilities to serve the projected growth in service units identified within the Final LUA and IIP Report dated March 10, 2014. 3.Development Impact Fee report (Fee Report), the subject of this document,outlines the proposed development impact fee by fee category and service area based on the eligible facilities and service units identified in the separate Final LUA and IIP Report dated March 10, 2014. The Fee Report incorporates capital funding analyses, offset calculations (if any)and cash flow projections for the proposed development impact fees. To ensure that new development contributes its proportionate share towards the cost of public facilities,the Town has enacted development impact fees for a variety of fee categories. The fees were most recently updated in December 2011 with elimination of the Open Space and General Government fees and reductions to the Parks and Recreation, and Library and Museum fee areas as a result of changes to ARS § 9-463.05, enacted in April 2011. The purpose of this study is to update the Town’s development impact fee categori es: Fire and Emergency Medical Services (EMS) Law Enforcement Parks and Recreation Streets Open Space Library and Museum Appendix C includes a summary of the Town’s current non-utility development impact fees. 1 The Town initially retained Red Oak Consulting, an ARCADIS group, to complete this study and the contract was subsequently assigned to RFC in July 2013. 2 Table 1 summarizes the proposed residential and non-residential Fire and Emergency development impact fees to be assessed Town-wide. Table 1 Fire and Emergency Development Impact Fees Table 2 summarizes the proposed residential Parks and Recreation development impact fees to be assessed Town-wide. Table 2 Parks and Recreation Development Impact Fees The draft development impact fees discussed in this report are proposed to be effective August 1, 2014.Tables 3 and 4 summarize the Town’s current non-utility development impact fees. The Streets development impact fee summarized in Table 4 includes different fees assessed to single- family and multi-family residential and commercial, office, hotel and industrial categories. Fee Category Residential per Dwelling Unit Commercial /Industrial per Sq. Ft. Fire and Emergency $300 $0.243 Fee Category Residential per Dwelling Unit Parks and Recreation $1,301 3 Table 3 Current Development Impact Fees (Except Streets) Table 4 Current Streets Development Impact Fees The Town’s Library and Museum, Streets and Law Enforcement development impact fees will be phased out by August 1, 2014, with existing fund balance being used to fund eligible capital improvements and/or pledged debt as outlined within the balance of the report.If warranted after future updates to the Town’s long-term capital plan and IIP, the Town may reinstate these and other development impact fees that recover the proportional impact of the identified facilities from new development. Methodologies There are a variety of methods that can serve as a rational basis for computing non-utility and utility development impact fees. The most common include: System Buy-In Plan Based Incremental or Incremental Plan Based Average Hybrid Method The System Buy-in method uses a historical perspective. The original costs of the system’s fixed assets are identified and escalated to current value using a nationally-recognized index. System equity equals the escalated original cost less developer contributions as well as growth- Fee Category Residential per Dwelling Unit Commercial/ Industrial per Sq. Ft. Law Enforcement $112 $0.070 Parks and Recreation 2,118 0.000 Fire and Emergency 207 0.129 Library and Museum 79 0.000 Residential per Dwelling Unit Commercial/ Industrial per Sq. Ft. Residential (Single Family)$5,614 Residential (Multi-Family)3,942 Commercial $3.835 Office 2.835 Hotel 2.258 Industrial 1.235 Development Type 4 related interest costs. The development impact fee is the quotient of the system value divided by the system capacity. The Plan Based Incremental or Incremental method is forward-looking and considers only future growth-related capital projects and acquisitions. The development impact fee is the quotient of the growth-related cost of proposed projects for a specified time frame plus growth- related debt interest costs divided by the increase in capacity provided by those projects. The Plan Based Average method is similar to the Plan Based Incremental method. However, the plan based average approach considers future growth-related projects that benefit new and existing development. The development impact fee is the quotient of the cost of proposed projects for a specified time frame divided by the total capacity served in the calculation year. The Hybrid method combines the system buy-in and incremental methods. The development impact fee is the quotient of the sum of the current system value and future growth-related capital costs divided by of the sum of existing system capacity and the increase in capacity provided by the future growth-related projects. The Town must create an IIP to reflect the costs required to provide necessary public services for new growth. In developing the costs in the IIP,the Town considered what was needed so the burden of providing services to new development did not lower the service level for existing citizens or charge new development exclusively to increase the level of service provided to existing residents.The Town may increase the level of service for current and future residents; however,the development impact fee will reflect only the portion of the facility benefiting new development,with funding for the increased level of service portion of the improvement benefiting existing development funded by alternative sources. In all fee categories, projects are based on facility needs to serve future development.Proposed fee calculations recognize the proportional cost of current and future facilities benefiting new development. Funding for the portion of facilities benefiting existing development will need to be from another source, which may include general fund revenues, debt and/or future dedicated tax-based funding sources documented in the Fee Report. However, the IIP eligible facilities documented in this report are fully allocated to growth without a benefit to existing development with no offset required. Fire and Emergency Development Impact Fee Fire and Emergency development impact fees will be assessed Town-wide.Table 5 summarizes proposed Fire and Emergency development impact fees by type of development. 5 Table 5 Fire and Emergency Development Impact Fees Residential developments are assessed fees per housing unit while non-residential commercial, public, lodging and industrial development categories are assessed per 1,000 square feet of development.Fees are proposed to be effective August 1,2014. The Town’s Fire and Emergency development impact fee was calculated using the hybrid approach that considers: Replacement value of constructed and eligible facilities. Current cost of future growth-related IIP projects. Increase reflecting net present value (NPV) of future interest of growth-related portion of projected debt issues. Appendix A summarizes the calculated Fire and Emergency development impact fees per residential housing unit and non-residential square feet.The eligible costs are allocated between residential and non-residential development types based on projected square feet of development at FY 2034-35.Service units reflect existing and projected housing units and non-residential square feet detailed in the Final LUA IIP Report.The capacity of planned facilities will be exceeded in FY 2034-35 and the total current and projected FY 2034-35 square feet are used to allocate costs before calculating draft development impact fees by type of development. The components of the calculated Fire and Emergency development impact fee and associated cash flow projection is discussed in the following sections. Eligible Assets Replacement Value The replacement value of current eligible Fire and Emergency facilities is approximately $1.6 million excluding grant funded and donated assets as detailed in the Final LUA and IIP Report and supporting worksheets in Appendix A. The asset value includes existing fire stations, land, specialized vehicles, apparatus, equipment and miscellaneous assets and excludes administrative vehicles, grant funded or donated assets. Infrastructure Improvements Plan Projects The total cost of the proposed fire station number 3 is $2.8 million anticipated to be constructed from FY 2021-22 through FY 2022-23 as detailed in the Final LUA and IIP Report and summarized in Appendix A to this report.The new fire station is allocated fully to future Fee Category Residential per Dwelling Unit Commercial /Industrial per Sq. Ft. Fire and Emergency $300 $0.243 6 development (growth)benefiting future residential and non-residential developments.Based on the timing of the projects, an annual capital project inflation rate of 3%, compounded annually, is applied to project cost estimates and illustrated in the cash flow and supporting worksheet also provided in Appendix A. Cash Flow A cash flow analysis has been compiled to summarize the sources and uses and funding requirements of Fire and Emergency development impact fee fund included in Appendix A. The sections below outline projects and cash flow uses of IIP projects,debt issuance and reserve requirements, debt service funded through development impact fee revenues, interest income, and debt proceeds. This section summarizes the assumptions and projections outlined in Appendix A. The Fire and Emergency development impact fee fund has a fund balance of $43,624 as of June 30, 2013 available to fund future growth-related improvements. Debt Proceeds, Issuance Costs and Debt Service Debt is projected to be issued to fund the proposed IIP eligible capital improvements. Debt projections reflect availability of revenues generated from development impact fees balanced against the timing of the project and availability of cash to partially fund anticipated capital projects. Assumptions regarding the term, interest rate, debt service requirement and issuance expenses are also summarized in Appendix C. NPV of Future Growth-Related Debt Interest The NPV of future interest payments associated with future development’s portion of debt funded Fire and Emergency IIP facilities is projected to be approximately $1.6 million. The NPV interest reflects today’s value associated with funding the growth -related facilities and is eligible for inclusion as assessed development impact fees are anticipated to repay the growth - related debt service.The annual debt service and NPV associated with projected debt issues are detailed in Appendix A. Revenue Projections Projected Fire and Emergency development impact fee revenues are based on the proposed fees by residential and non-residential development type, indexed for inflation, applied to projected development for the following development types: Residential o Single-family residential o Multi-family residential Non-residential o Commercial / lodging o Industrial 7 Residential developments are assessed fees per housing unit while non-residential development categories are assessed per 1,000 square feet of development.The fee increases are delayed 24 months after the August 1, 2014 effective date or two years to FY 2016-17 to conservatively project revenues for plats that have already been approved and will be assessed the current Fire and Emergency development impact fee. Plats that have been approved will be assessed the current Fire and Emergency development impact fee since the fee is increasing while plats approved after August 1, 2014 may be assessed the proposed fees.Appendix A summarizes the projected development impact fee revenues by type of development. Parks and Recreation Development Impact Fee Parks and Recreation development impact fees will be assessed Town-wide.Table 6 summarizes the proposed Parks and Recreation development impact fees for residential development. Table 6 Parks and Recreation Development Impact Fees Residential developments are assessed fees per housing unit.Fees are proposed to be effective August 1, 2014. The Town’s Parks and Recreation development impact fee was calculated using the hybrid approach that considers: Replacement value of constructed and eligible facilities. Current cost of future growth-related IIP projects. Appendix B summarizes the calculated Parks and Recreation development impact fees per housing unit. The components of the calculated Parks and Recreation development impact fee and associated cash flow projection is discussed in the following sections. Eligible Assets Replacement Value The replacement value of current eligible Parks and Recreation facilities is approximately $21.3 million excluding grant funded assets as detailed in the Final LUA and IIP Report and Appendix B.The asset value includes existing parks and improvements,land, equipment and miscellaneous assets and excludes grant funded assets. Fee Category Residential per Dwelling Unit Parks and Recreation $1,301 8 Infrastructure Improvements Plan Projects The total cost of the planned Town funded Parks and Recreation IIP eligible improvements is $0.7 million anticipated to be constructed in FY 2022-23 as detailed in the Final LUA and IIP Report and summarized in Appendix B to this report.The future park improvements are allocated fully to future development (growth)benefiting future residential developments.Based on the timing of the projects, an annual capital project inflation rate of 3%, compounded annually, is applied to project cost estimates and illustrated in the cash flow and supporting worksheets also provided in Appendix B. Cash Flow A cash flow analysis has been compiled to summarize the sources and uses of the Parks and Recreation development impact fee fund. Appendix B details the cash flow analysis. The sections below outline projects and cash flow uses of IIP projects funded through development impact fee revenues and interest income.The Town does not have outstanding debt repaid through Parks and Recreation development impact fees and additional debt is not projected to be required to fund future IIP eligible facilities.This section summarizes the assumptions and projections outlined in Appendix B. The Parks and Recreation development impact fee fund has a fund balance of approximately $47,859 as of June 30, 2013 available to fund future eligible Park and Recreation facilities. Revenue Projections Projected Parks and Recreation development impact fee revenues are based on the draft fee by residential housing unit, indexed for inflation, applied to projected single-family and multi- family residential development.Residential developments are assessed fees per housing unit. The fee decrease is effective in FY 2014-15 assessed to all plats, including those already approved, as the 24 month delay applies only to fee increases.The fee is not recommended to be assessed to non-residential development categories as outlined in the Final LUA and IIP Report. Appendix B summarizes the projected development impact fee revenues by type of development. APPENDIX A Fire and Emergency TOWN OF FOUNTAIN HILLS FIRE & EMERGENCY SERVICES FEE CALCULATION Hybrid Description Approach Capital Assets Existing Assets $4,289,257 Add/Less: Beginning Fund Balance [1]0 Add:CIP 2,767,000 Add: Study Cost 9,286 Less: Grant Funds (59,789) Less: Donated Assets (2,644,859) Subtotal $4,360,895 Financing Costs Less: Outstanding Principal - Total $0 Add: Outstanding Interest - Total 0 Add: Interest on New Debt 1,560,139 Subtotal 1,560,139 Applicable Capital & Financing $5,921,033 Residential FY 2034-35 85.8% Residential Allocation $5,080,179 Residential Units 16,924 Fee per dwelling Unit $300 Commercial FY 2034-35 14.2% Non-residential Allocation $840,854 Non-residential Units 3,455,653 Fee per s.f.$0.243 [1] Hybrid method assumes a beginning balance of $0. A - 1A - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY FIRE & EMERGENCY REVENUE Hybrid Revenue FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Fees [1] [2] [3] All Residential per dwelling $207 $207 $207 $300 $309 $318 $328 $338 $348 $358 $369 $380 $391 Non-Residential per s.f.0.129 $0.129 $0.129 $0.243 0.250 0.258 0.266 0.274 0.282 0.290 0.299 0.308 0.317 Revenue All Residential $4,347 $5,382 $10,350 $16,500 $15,450 $17,490 $172,200 $92,950 $113,100 $132,460 $108,855 $134,900 $113,390 Non-Residential 1,498 1,498 1,498 2,821 2,903 2,996 3,088 3,181 3,274 3,367 25,897 3,576 3,681 Interest Income 1,146 1,622 1,951 2,477 3,117 3,793 6,843 11,120 14,072 7,973 1,610 0 0 Total Revenue $6,990 $8,501 $13,799 $21,799 $21,469 $24,278 $182,132 $107,251 $130,446 $143,800 $136,362 $138,476 $117,071 Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,893 $295,293 $295,293 $295,293 Other Cash In-Flows/(Out-Flows) Capital Expenditures $0 $0 $0 $0 $0 $0 $0 $0 ($353,594)($3,354,415)$0 $0 $0 Development Fee Study Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 Debt Proceeds 0 0 0 0 0 0 0 0 350,000 3,000,000 0 0 0 Debt Service Reserve Deposit 0 0 0 0 0 0 0 0 (30,863)(264,536)0 0 0 Debt Issuance Costs 0 0 0 0 0 0 0 0 (3,500)(30,000)0 0 0 Subtotal 0 0 0 0 0 0 0 0 (37,956)(648,951)0 0 0 Increase/(Decrease) in Cash Balance $6,990 $8,501 $13,799 $21,799 $21,469 $24,278 $182,132 $107,251 $92,490 ($536,044)($158,931)($156,817)($178,222) Beginning Balance $43,624 $50,614 $59,116 $72,915 $94,714 $116,183 $140,461 $322,593 $429,844 $522,334 ($13,711)($172,642)($329,459) Ending Balance $50,614 $59,116 $72,915 $94,714 $116,183 $140,461 $322,593 $429,844 $522,334 ($13,711)($172,642)($329,459)($507,681) [1] New fees are assumed effective 8/1/14. [2] Fee increases are delayed 24 months for plats that are already approved. Delay is assumed to apply to all development to conservatively project revenues. [3] Fees indexed for inflation of 3% per year. A - 2A - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY FIRE & EMERGENCY REVENUE Hybrid Revenue Fees [1] [2] [3] All Residential per dwelling Non-Residential per s.f. Revenue All Residential Non-Residential Interest Income Total Revenue Debt Service Other Cash In-Flows/(Out-Flows) Capital Expenditures Development Fee Study Costs Debt Proceeds Debt Service Reserve Deposit Debt Issuance Costs Subtotal Increase/(Decrease) in Cash Balance Beginning Balance Ending Balance [1] New fees are assumed effective 8/1/14. [2] Fee increases are delayed 24 months for plats that are already approved. Delay is assumed to apply to all development to conservatively project revenues. [3] Fees indexed for inflation of 3% per year. FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 $403 $415 $427 $440 $453 $467 $481 $495 $510 0.327 0.337 0.347 0.357 0.368 0.379 0.390 0.402 0.414 $106,795 $87,150 $111,020 $169,400 $0 $0 $0 $0 $0 3,797 3,913 4,029 4,145 4,273 4,400 4,528 205,668 4,807 0 0 0 0 0 0 0 0 0 $110,592 $91,063 $115,049 $173,545 $4,273 $4,400 $4,528 $205,668 $4,807 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $295,293 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ($184,701)($204,230)($180,244)($121,748)($291,020)($290,892)($290,765)($89,625)($290,486) ($507,681)($692,382)($896,612)($1,076,855)($1,198,603)($1,489,623)($1,780,515)($2,071,280)($2,160,905) ($692,382)($896,612)($1,076,855)($1,198,603)($1,489,623)($1,780,515)($2,071,280)($2,160,905)($2,451,391) A - 3A - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Parks & Recreation - INFLATED [1] P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%0 0 0 0 0 0 0 0 0 0 0 0 P3011 Fountain Park, Phase VI 0.0%100.0%825,000 716,108 0 0 0 0 0 0 0 0 0 0 P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0 P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 0 0 0 0 0 0 0 0 0 0 P3023 New Pocket Park-West 100.0%0.0%0 0 0 0 0 0 0 0 0 958,212 0 0 P3024 Urban Trail Improvements 0.0%100.0%20,000 21,218 21,855 22,510 0 0 0 0 0 0 0 0 Total Parks & Recreation 1,145,000 737,326 21,855 22,510 0 10,985,281 22,629,679 0 0 958,212 0 0 Parks & Recreation Improvements Growth Related CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $958,212 $0 $0 Parks & Recreation Improvements Non-Growth Related CIP $1,145,000 $737,326 $21,855 $22,510 $0 $0 $0 $0 $0 $0 $0 $0 Parks & Recreation Improvements Ellman Funded CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $0 $0 $0 [1] CIP is inflated at a 3% rate, compounded annually. A - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Parks & Recreation - INFLATED [1] P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0% P3011 Fountain Park, Phase VI 0.0%100.0% P3014 Community Park - Ellman Property 100.0%0.0% P3022 Fountain Lake Water Quality Improvements 0.0%100.0% P3023 New Pocket Park-West 100.0%0.0% P3024 Urban Trail Improvements 0.0%100.0% Total Parks & Recreation Parks & Recreation Improvements Growth Related CIP Parks & Recreation Improvements Non-Growth Related CIP Parks & Recreation Improvements Ellman Funded CIP [1] CIP is inflated at a 3% rate, compounded annually. ALL YEARS FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 0 0 0 0 0 0 0 0 50,000 50,000 0 0 0 0 0 0 0 0 1,541,108 1,541,108 0 0 0 0 0 0 0 33,614,960 0 33,614,960 0 0 0 0 0 0 0 0 300,000 300,000 0 0 0 0 0 0 0 958,212 0 958,212 0 0 0 0 0 0 0 0 135,583 135,583 0 0 0 0 0 0 0 34,573,173 2,026,690 36,599,863 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 A - 5 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Fire & Emergency Services - INFLATED [1] F4013 Fire Station 3 Construction 100.0%0.0%0 0 0 0 0 0 0 0 353,594 3,354,415 0 0 F4015 Fire Station 1 Renovation 0.0%100.0%420,000 0 0 0 0 0 0 0 0 0 0 0 F4025 Portable Live Fire Training Unit 0.0%100.0%160,000 0 0 0 0 0 0 0 0 0 0 0 F4027 Assistance to Fire Fighters Grants - Radios 0.0%100.0%120,000 0 0 0 0 0 0 0 0 0 0 0 F4005 Fire Station 2 Relocation 0.0%100.0% Total Fire & Emergency Services 700,000 0 0 0 0 0 0 0 353,594 3,354,415 0 0 Fire & Emergency Services Growth Related CIP $0 $0 $0 $0 $0 $0 $0 $0 $353,594 $3,354,415 $0 $0 Fire & Emergency Services Non-Growth Related CIP $700,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 [1] CIP is inflated at a 3% rate, compounded annually. A - 6 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Fire & Emergency Services - INFLATED [1] F4013 Fire Station 3 Construction 100.0%0.0% F4015 Fire Station 1 Renovation 0.0%100.0% F4025 Portable Live Fire Training Unit 0.0%100.0% F4027 Assistance to Fire Fighters Grants - Radios 0.0%100.0% F4005 Fire Station 2 Relocation 0.0%100.0% Total Fire & Emergency Services Fire & Emergency Services Growth Related CIP Fire & Emergency Services Non-Growth Related CIP [1] CIP is inflated at a 3% rate, compounded annually. ALL YEARS FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 0 0 0 0 0 0 0 3,708,009 0 3,708,009 0 0 0 0 0 0 0 0 495,000 495,000 0 0 0 0 0 0 0 0 160,000 160,000 0 0 0 0 0 0 0 0 120,000 120,000 0 0 0 0 0 0 0 3,708,009 775,000 4,483,009 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 A - 7 TOWN OF FOUNTAIN HILLS FIRE & EMERGENCY SERVICES FUTURE GROWTH-RELATED DEBT FY 2021-22 FY 2021-22 Principal 385,000 Interest 5.0% Period 20 Payment 30,893 Interest 232,868 Discount Interest 163,221 Start Year 2022 Series 2022 (1)Series 2023 (1) Fiscal Year Ending Principal Interest Principal Total P&I 2022 385,000 0 0 2023 373,357 19,250 11,643 30,893 2024 361,131 18,668 12,226 30,893 2025 348,294 18,057 12,837 30,893 2026 334,816 17,415 13,479 30,893 2027 320,663 16,741 14,153 30,893 2028 305,803 16,033 14,860 30,893 2029 290,199 15,290 15,603 30,893 2030 273,816 14,510 16,383 30,893 2031 256,613 13,691 17,203 30,893 2032 238,551 12,831 18,063 30,893 2033 219,585 11,928 18,966 30,893 2034 199,671 10,979 19,914 30,893 2035 178,761 9,984 20,910 30,893 2036 156,805 8,938 21,955 30,893 2037 133,752 7,840 23,053 30,893 2038 109,546 6,688 24,206 30,893 2039 84,130 5,477 25,416 30,893 2040 57,444 4,207 26,687 30,893 2041 29,422 2,872 28,021 30,893 2042 (0)1,471 29,422 30,893 Subtotal 232,868$385,000$617,868$ NPV of Interest Payments $163,221 (1) Equal amortized debt payments A - 8A - 8 TOWN OF FOUNTAIN HILLS FIRE & EMERGENCY SERVICES NPV FUTURE GROWTH-RELATED DEBT FY 2022-23 FY 2022-23 Principal 3,295,000 Interest 5.0% Period 20 Payment 264,399 Interest 1,992,987 Discount Interest 1,560,139 Start Year 2023 Series 2023 (1)Series 2024 (1) Fiscal Year Ending Principal Interest Principal Total P&I 2023 3,295,000 0 0 2024 3,195,351 164,750 99,649 264,399 2025 3,090,719 159,768 104,632 264,399 2026 2,980,855 154,536 109,863 264,399 2027 2,865,499 149,043 115,357 264,399 2028 2,744,375 143,275 121,124 264,399 2029 2,617,194 137,219 127,181 264,399 2030 2,483,654 130,860 133,540 264,399 2031 2,343,438 124,183 140,217 264,399 2032 2,196,210 117,172 147,227 264,399 2033 2,041,622 109,811 154,589 264,399 2034 1,879,303 102,081 162,318 264,399 2035 1,708,869 93,965 170,434 264,399 2036 1,529,913 85,443 178,956 264,399 2037 1,342,010 76,496 187,904 264,399 2038 1,144,711 67,100 197,299 264,399 2039 937,547 57,236 207,164 264,399 2040 720,025 46,877 217,522 264,399 2041 491,627 36,001 228,398 264,399 2042 251,809 24,581 239,818 264,399 2043 0 12,590 251,809 264,399 Subtotal 1,992,987$3,295,000$5,287,986$ NPV of Interest Payments $1,396,918 (1) Equal amortized debt payments A - 9A - 9 APPENDIX B Parks and Recreation TOWN OF FOUNTAIN HILLS PARKS & RECREATION FEE CALCULATION Hybrid Description Method Capital Assets Existing Assets $24,303,533 Add/Less: Beginning Fund Balance [1]0 Add:CIP 28,313,000 Add: Study Cost 9,286 Less: Grant Funds (3,001,637) Less Developer Funded Improvements (27,600,000) Less: Donated Assets 0 Subtotal 22,024,182 Financing Costs Less: Outstanding Principal - Total 0 Add: Outstanding Interest - Total 0 Add: Interest on New Debt [2]0 Subtotal 0 Applicable Capital & Financing $22,024,182 Residential Units 16,924 Fee per dwelling Unit $1,301 [1] Hybrid method assumes a beginning balance of $0. [2] Consists of NPV of interest on new debt issued for Growth Related CIP projects. B - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY PARKS & RECREATION REVENUE Hybrid Revenue FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Fees [1] All Residential per dwelling $2,118 $1,301 $1,340 $1,380 $1,421 $1,464 $1,508 $1,553 $1,600 $1,648 $1,697 $1,748 $1,800 Revenue All Residential $44,478 $33,826 $67,000 $75,900 $71,050 $80,520 $791,700 $427,075 $520,000 $609,760 $500,615 $620,540 $522,000 Delopment Fee Credits 0 0 0 0 0 0 (226,200)(232,950)(320,000)(329,600)(296,975)(305,900)(180,000) Interest Income 1,587 3,325 4,937 7,229 9,650 12,213 25,663 37,928 46,284 40,645 34,259 43,195 52,452 Total Revenue $46,065 $37,151 $71,937 $83,129 $80,700 $92,733 $591,163 $232,053 $246,284 $320,805 $237,899 $357,835 $394,452 Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Cash In-Flows/(Out-Flows) Capital Expenditures $0 $0 $0 $0 $0 ($10,985,281)($22,629,679)$0 $0 ($958,212)$0 $0 $0 Development Fee Study Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 Developer Constructed 0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0 0 Debt Proceeds 0 0 0 0 0 0 0 0 0 0 0 0 0 Debt Service Reserve Deposit 0 0 0 0 0 0 0 0 0 0 0 0 0 Debt Issuance Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 Subtotal 0 0 0 0 0 0 0 0 0 (958,212)0 0 0 Increase/(Decrease) in Cash Balance $46,065 $37,151 $71,937 $83,129 $80,700 $92,733 $591,163 $232,053 $246,284 ($637,407)$237,899 $357,835 $394,452 Beginning Balance $47,859 $93,924 $131,075 $203,013 $286,141 $366,841 $459,575 $1,050,737 $1,282,790 $1,529,074 $891,667 $1,129,567 $1,487,402 Ending Balance $93,924 $131,075 $203,013 $286,141 $366,841 $459,575 $1,050,737 $1,282,790 $1,529,074 $891,667 $1,129,567 $1,487,402 $1,881,854 [1] New fees are assumed effective 8/1/14. [2] Fees are credited for development within Ellman property in leiu of completing park projects. B - 2B - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY PARKS & RECREATION REVENUE Hybrid Revenue Fees [1] All Residential per dwelling Revenue All Residential Delopment Fee Credits Interest Income Total Revenue Debt Service Other Cash In-Flows/(Out-Flows) Capital Expenditures Development Fee Study Costs Developer Constructed Debt Proceeds Debt Service Reserve Deposit Debt Issuance Costs Subtotal Increase/(Decrease) in Cash Balance Beginning Balance Ending Balance [1] New fees are assumed effective 8/1/14. [2] Fees are credited for development within Ellman property in leiu of completing park projects. FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 $1,854 $1,910 $1,967 $2,026 $2,087 $2,150 $2,215 $2,281 $2,349 $491,310 $401,100 $511,420 $780,010 $0 $0 $0 $0 $0 (148,320)(95,500)(49,175)(50,650)0 0 0 0 0 63,825 74,677 87,740 108,268 121,697 125,348 129,108 132,981 136,971 $406,815 $380,277 $549,985 $837,628 $121,697 $125,348 $129,108 $132,981 $136,971 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $406,815 $380,277 $549,985 $837,628 $121,697 $125,348 $129,108 $132,981 $136,971 $1,881,854 $2,288,669 $2,668,945 $3,218,930 $4,056,558 $4,178,255 $4,303,603 $4,432,711 $4,565,692 $2,288,669 $2,668,945 $3,218,930 $4,056,558 $4,178,255 $4,303,603 $4,432,711 $4,565,692 $4,702,663 B - 3B - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Parks & Recreation - 2013 Dollars P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 P3011 Fountain Park, Phase VI 0.0%100.0%825,000 675,000 0 0 0 0 0 0 0 0 0 0 P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 0 P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 0 0 0 0 0 0 0 0 0 0 P3023 New Pocket Park-West 100.0%0.0%0 0 0 0 0 0 0 0 0 713,000 0 0 P3024 Urban Trail Improvements 0.0%100.0%20,000 20,000 20,000 20,000 0 0 0 0 0 0 0 0 Total Parks & Recreation 1,145,000 695,000 20,000 20,000 0 9,200,000 18,400,000 0 0 713,000 0 0 Parks & Recreation Growth Related CIP 0 0 0 0 0 0 0 0 0 713,000 0 0 Parks & Recreation Non-Growth Related CIP 1,145,000 695,000 20,000 20,000 0 0 0 0 0 0 0 0 Parks & Recreation Improvements Developer Funded CIP 0 0 0 0 0 9,200,000 18,400,000 0 0 0 0 0 B - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Parks & Recreation - 2013 Dollars P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0% P3011 Fountain Park, Phase VI 0.0%100.0% P3014 Community Park - Ellman Property 100.0%0.0% P3022 Fountain Lake Water Quality Improvements 0.0%100.0% P3023 New Pocket Park-West 100.0%0.0% P3024 Urban Trail Improvements 0.0%100.0% Total Parks & Recreation Parks & Recreation Growth Related CIP Parks & Recreation Non-Growth Related CIP Parks & Recreation Improvements Developer Funded CIP ALL YEARS FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 $50,000 0 0 0 0 0 0 0 0 1,500,000 1,500,000 0 0 0 0 0 0 0 27,600,000 0 27,600,000 0 0 0 0 0 0 0 0 300,000 300,000 0 0 0 0 0 0 0 713,000 0 713,000 0 0 0 0 0 0 0 0 130,000 130,000 0 0 0 0 0 0 0 28,313,000 1,980,000 30,293,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 B - 5 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Parks & Recreation - INFLATED [1] P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0%0 0 0 0 0 0 0 0 0 0 0 0 P3011 Fountain Park, Phase VI 0.0%100.0%825,000 716,108 0 0 0 0 0 0 0 0 0 0 P3014 Community Park - Ellman Property 100.0%0.0%0 0 0 0 0 10,985,281 22,629,679 0 0 0 0 0 P3022 Fountain Lake Water Quality Improvements 0.0%100.0%300,000 0 0 0 0 0 0 0 0 0 0 0 P3023 New Pocket Park-West 100.0%0.0%0 0 0 0 0 0 0 0 0 958,212 0 0 P3024 Urban Trail Improvements 0.0%100.0%20,000 21,218 21,855 22,510 0 0 0 0 0 0 0 0 Total Parks & Recreation 1,145,000 737,326 21,855 22,510 0 10,985,281 22,629,679 0 0 958,212 0 0 Parks & Recreation Improvements Growth Related CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $958,212 $0 $0 Parks & Recreation Improvements Non-Growth Related CIP $1,145,000 $737,326 $21,855 $22,510 $0 $0 $0 $0 $0 $0 $0 $0 Parks & Recreation Improvements Ellman Funded CIP $0 $0 $0 $0 $0 $10,985,281 $22,629,679 $0 $0 $0 $0 $0 [1] CIP is inflated at a 3% rate, compounded annually. B - 6 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY CAPITAL IMPROVEMENTS PROGRAM PROJECT/PROGRAM DESCRIPTION Growth Non- Growth Parks & Recreation - INFLATED [1] P3008 Four Peaks Neighborhood Park Phase II & III 0.0%100.0% P3011 Fountain Park, Phase VI 0.0%100.0% P3014 Community Park - Ellman Property 100.0%0.0% P3022 Fountain Lake Water Quality Improvements 0.0%100.0% P3023 New Pocket Park-West 100.0%0.0% P3024 Urban Trail Improvements 0.0%100.0% Total Parks & Recreation Parks & Recreation Improvements Growth Related CIP Parks & Recreation Improvements Non-Growth Related CIP Parks & Recreation Improvements Ellman Funded CIP [1] CIP is inflated at a 3% rate, compounded annually. ALL YEARS FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Growth Non-Growth FY 2013-32 0 0 0 0 0 0 0 0 50,000 50,000 0 0 0 0 0 0 0 0 1,541,108 1,541,108 0 0 0 0 0 0 0 33,614,960 0 33,614,960 0 0 0 0 0 0 0 0 300,000 300,000 0 0 0 0 0 0 0 958,212 0 958,212 0 0 0 0 0 0 0 0 135,583 135,583 0 0 0 0 0 0 0 34,573,173 2,026,690 36,599,863 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 B - 7 APPENDIX C Assumptions and Supporting Worksheets TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE ITEM FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 1.Escalation Factors General Inflation 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Capital Outlay - Parks & Recreation 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Capital Outlay - Fire & Emergency Services 0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Fee Index - Escalation for Inflation Fire & Emergency 0.00%0.00%0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Parks & Recreation 0.00%0.00%0.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Growth - Non-Residential 0.44%0.44%0.44%0.44%0.43%0.43%0.43%0.43%0.43%0.43%3.16%0.41%0.41%0.41% Growth - Residential 0.16%0.20%0.38%0.42%0.38%0.41%3.93%1.98%2.29%2.55%1.98%2.34%1.87%1.68% Bond / Loan Parameters Length of Term / Repayment Period (years)20 20 20 20 20 20 20 20 20 20 20 20 20 20 Annual Interest Rate 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% Issuance Costs 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0% Fiscal Year Month of Issue (1=Jul)1 1 1 1 1 1 1 1 1 1 1 1 1 1 Debt Service Reserve Deposit Factor 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 C - 1 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE ITEM 1.Escalation Factors General Inflation Capital Outlay - Parks & Recreation Capital Outlay - Fire & Emergency Services Fee Index - Escalation for Inflation Fire & Emergency Parks & Recreation Growth - Non-Residential Growth - Residential Bond / Loan Parameters Length of Term / Repayment Period (years) Annual Interest Rate Issuance Costs Fiscal Year Month of Issue (1=Jul) Debt Service Reserve Deposit Factor FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 0.41%0.40%0.40%0.40%0.40%0.40%17.45%0.34% 1.31%1.60%2.33%0.00%0.00%0.00%0.00%0.00% 20 20 20 20 20 20 20 20 5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0% 1 1 1 1 1 1 1 1 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 C - 2 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE 2a.Building Data [1] FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Single-Family Dwellings Units 8,293 8,318 8,343 8,373 8,403 8,438 8,938 9,188 9,488 9,838 10,113 10,438 10,713 10,968 Single-Family Dwellings, Permits 20 25 25 30 30 35 500 250 300 350 275 325 275 255 Multi-Family Dwellings (2.5 units each permit)4,840 4,841 4,866 4,891 4,911 4,931 4,956 4,981 5,006 5,026 5,046 5,076 5,091 5,101 Multi-Family Dwellings, Permits 0 0 10 10 8 8 10 10 10 8 8 12 6 4 Multi-Family Dwellings, New Units 1 1 25 25 20 20 25 25 25 20 20 30 15 10 Total Dwelling Units 13,133 13,159 13,209 13,264 13,314 13,369 13,894 14,169 14,494 14,864 15,159 15,514 15,804 16,069 Percentage Increase 0.16%0.20%0.38%0.42%0.38%0.41%3.93%1.98%2.29%2.55%1.98%2.34%1.87%1.68% State Trust Land (included in SF Dwelling Units)0 0 0 0 0 0 150 150 200 200 175 175 100 80 2b.Square Feet Avg.s.f./unit:1,930 Single Family, New Square Feet 38,600 48,250 48,250 57,900 57,900 67,550 965,000 482,500 579,000 675,500 530,750 627,250 530,750 492,150 Cumulative S.F. [2]16,005,490 16,053,740 16,101,990 16,159,890 16,217,790 16,285,340 17,250,340 17,732,840 18,311,840 18,987,340 19,518,090 20,145,340 20,676,090 21,168,240 Avg.s.f./unit:1,002 Multi-Family, New Square Feet 1,002 1,002 25,050 25,050 20,040 20,040 25,050 25,050 25,050 20,040 20,040 30,060 15,030 10,020 Cumulative S.F. [2]4,849,680 4,850,682 4,875,732 4,900,782 4,920,822 4,940,862 4,965,912 4,990,962 5,016,012 5,036,052 5,056,092 5,086,152 5,101,182 5,111,202 Industrial Square Feet 313,274 313,766 314,259 314,751 315,243 315,735 316,227 316,719 317,211 317,703 318,196 318,688 319,180 319,672 New Square Feet [3]492 492 492 492 492 492 492 492 492 492 492 492 492 492 Commercial / Lodging Square Feet 2,323,554 2,334,673 2,345,791 2,356,910 2,368,028 2,379,147 2,390,266 2,401,384 2,412,503 2,423,621 2,509,740 2,520,858 2,531,977 2,543,096 New Square Feet [4]11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 11,119 86,119 11,119 11,119 11,119 Subtotal 2,636,828 2,648,439 2,660,050 2,671,661 2,683,271 2,694,882 2,706,493 2,718,103 2,729,714 2,741,325 2,827,935 2,839,546 2,851,157 2,862,768 Total New Square Feet 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 11,611 86,611 11,611 11,611 11,611 0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%0.4%3.2%0.4%0.4%0.4% Total Residential SF 20,855,170 20,904,422 20,977,722 21,060,672 21,138,612 21,226,202 22,216,252 22,723,802 23,327,852 24,023,392 24,574,182 25,231,492 25,777,272 26,279,442 Total Residential and Commercial SF 23,491,998 23,552,861 23,637,772 23,732,333 23,821,883 23,921,084 24,922,745 25,441,905 26,057,566 26,764,717 27,402,117 28,071,038 28,628,429 29,142,210 Residential Percentage 88.8%88.8%88.7%88.7%88.7%88.7%89.1%89.3%89.5%89.8%89.7%89.9%90.0%90.2% Commercial Percentage 11.2%11.2%11.3%11.3%11.3%11.3%10.9%10.7%10.5%10.2%10.3%10.1%10.0%9.8% [1] Projected dwelling units timing provided by Town. [2] Based on average of national median sq. ft. figures from 1989 to 1998 to develop assumed single family sq.ft. of 1,930 and multi-family units average of 1,002. [4] Projected average annual square footage growth through FY 2049-50 build-out based on 129.7 commercial / lodging acres to be developed and ratio of 7,605 developed square feet per acre. Average annual growth is adjusted for 75,000 square feet developed in FY 2023-24 and 500,000 square feet developed in FY 2033-34. [3] Projected average annual square footage growth through FY 2049-50 based on 2 acres to be developed and 9,105 square feet per acre. C - 3 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY GENERAL INPUT SCHEDULE 2a.Building Data [1] Single-Family Dwellings Units Single-Family Dwellings, Permits Multi-Family Dwellings (2.5 units each permit) Multi-Family Dwellings, Permits Multi-Family Dwellings, New Units Total Dwelling Units Percentage Increase State Trust Land (included in SF Dwelling Units) 2b.Square Feet Avg.s.f./unit:1,930 Single Family, New Square Feet Cumulative S.F. [2] Avg.s.f./unit:1,002 Multi-Family, New Square Feet Cumulative S.F. [2] Industrial Square Feet New Square Feet [3] Commercial / Lodging Square Feet New Square Feet [4] Subtotal Total New Square Feet Total Residential SF Total Residential and Commercial SF Residential Percentage Commercial Percentage [1] Projected dwelling units timing provided by Town. [2] Based on average of national median sq. ft. figures from 1989 to 1998 to develop assumed single family sq.ft. of 1,930 and multi-family units average of 1,002. [4] Projected average annual square footage growth through FY 2049-50 build-out based on 129.7 commercial / lodging acres to be developed and ratio of 7,605 developed square feet per acre. Average annual growth is adjusted for 75,000 square feet developed in FY 2023-24 and 500,000 square feet developed in FY 2033-34. [3] Projected average annual square footage growth through FY 2049-50 based on 2 acres to be developed and 9,105 square feet per acre. FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 11,168 11,418 11,793 11,793 11,793 11,793 11,793 11,793 200 250 375 0 0 0 0 0 5,111 5,121 5,131 5,131 5,131 5,131 5,131 5,131 4 4 4 0 0 0 0 0 10 10 10 0 0 0 0 0 16,279 16,539 16,924 16,924 16,924 16,924 16,924 16,924 1.31%1.60%2.33%0.00%0.00%0.00%0.00%0.00% 50 25 25 0 0 0 0 386,000 482,500 723,750 0 0 0 0 0 21,554,240 22,036,740 22,760,490 22,760,490 22,760,490 22,760,490 22,760,490 22,760,490 10,020 10,020 10,020 0 0 0 0 0 5,121,222 5,131,242 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262 5,141,262 320,164 320,656 321,148 321,641 322,133 322,625 323,117 323,609 492 492 492 492 492 492 492 492 2,554,214 2,565,333 2,576,451 2,587,570 2,598,688 2,609,807 3,120,925 3,132,044 11,119 11,119 11,119 11,119 11,119 11,119 511,119 11,119 2,874,378 2,885,989 2,897,600 2,909,210 2,920,821 2,932,432 3,444,042 3,455,653 11,611 11,611 11,611 11,611 11,611 11,611 511,611 11,611 0.4%0.4%0.4%0.4%0.4%0.4%17.4%0.3% 26,675,462 27,167,982 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752 27,901,752 29,549,840 30,053,971 30,799,352 30,810,962 30,822,573 30,834,184 31,345,794 31,357,405 90.3%90.4%90.6%90.6%90.5%90.5%89.0%89.0% 9.7%9.6%9.4%9.4%9.5%9.5%11.0%11.0% C - 4 TOWN OF FOUNTAIN HILLS NON-UTILITY DEVELOPMENT FEE STUDY ENR-CCI Area Year Period Index Source ENR-CCI Index ENR-CCI Ratio United States 2013 Annual ENR Construction Cost Index 9552 1.000 United States 2012 Annual ENR Construction Cost Index 9308 1.026 United States 2011 Annual ENR Construction Cost Index 9070 1.053 United States 2010 Annual ENR Construction Cost Index 8802 1.085 United States 2009 Annual ENR Construction Cost Index 8570 1.115 United States 2008 Annual ENR Construction Cost Index 8310 1.149 United States 2007 Annual ENR Construction Cost Index 7966 1.199 United States 2006 Annual ENR Construction Cost Index 7751 1.232 United States 2005 Annual ENR Construction Cost Index 7446 1.283 United States 2004 Annual ENR Construction Cost Index 7115 1.343 United States 2003 Annual ENR Construction Cost Index 6695 1.427 United States 2002 Annual ENR Construction Cost Index 6538 1.461 United States 2001 Annual ENR Construction Cost Index 6334 1.508 United States 2000 Annual ENR Construction Cost Index 6221 1.535 United States 1999 Annual ENR Construction Cost Index 6059 1.576 United States 1998 Annual ENR Construction Cost Index 5920 1.614 United States 1997 Annual ENR Construction Cost Index 5826 1.640 United States 1996 Annual ENR Construction Cost Index 5620 1.700 United States 1995 Annual ENR Construction Cost Index 5471 1.746 United States 1994 Annual ENR Construction Cost Index 5408 1.766 United States 1993 Annual ENR Construction Cost Index 5210 1.833 United States 1992 Annual ENR Construction Cost Index 4985 1.916 United States 1991 Annual ENR Construction Cost Index 4835 1.976 United States 1990 Annual ENR Construction Cost Index 4732 2.019 United States 1989 Annual ENR Construction Cost Index 4615 2.070 United States 1988 Annual ENR Construction Cost Index 4519 2.114 United States 1987 Annual ENR Construction Cost Index 4406 2.168 United States 1986 Annual ENR Construction Cost Index 4295 2.224 United States 1985 Annual ENR Construction Cost Index 4195 2.277 United States 1984 Annual ENR Construction Cost Index 4146 2.304 United States 1983 Annual ENR Construction Cost Index 4066 2.349 United States 1982 Annual ENR Construction Cost Index 3825 2.497 United States 1981 Annual ENR Construction Cost Index 3535 2.702 United States 1980 Annual ENR Construction Cost Index 3237 2.951 C - 5 Meeting Date:5/15/2014 Agenda Type:Regular Staff Contact Information:Ken Buchanan Strategic Values:Public Safety,Health Welfare TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type:Regular Session Submitting Department:Administration Council Goal: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):Approve the Second Amendment to the Fire Protection and Emergency Services Agreement with the Rural/Metro Corporation. Applicant:Ken Buchanan,Town Manager Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:n/a Staff Summary (background):The Fire Protection and Emergency Services Agreement will reach the conclusion of its initial five-year term as of June 30,2014.The agreement permits extension for two additional two-year terms upon agreement of the Town and Rural/Metro.The Second Amendment will approve the first of the two permitted extensions,continuing the agreement through June 30,2016. Risk Analysis (options or alternatives with implications):n/a Fiscal Impact (initial and ongoing costs;budget status):n/a Budget Reference (page number):n/a Funding Source:NA If Multiple Funds utilized,listhere:n/a Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s):n/a Staff Recommendation(s):Staff recommends approving the Second Amendment to the Fire Protection and Emergency Services Agreement with Rural/Metro Corporation,which will,among other things,extend the term for an additional two-year term. List Attachment(s):Rural/Metro Letter;Staff Memorandum;Second Amendment to Agreement. SUGGESTED MOTION (for council use):Move to approve the Second Amendment to the Fire Protection and Emergency Services Agreement with Rural/Metro. Page 1 of 2 Prepared by: TvlA Director's Approval: Approved: Ken Buchanan,Town Manager 5/15/2014 5/15/2014 5/15/2014 Page 2 of2 CONFIDENTIAL MEMORANDUM DATE:May 15th 2014 FROM:Ken Buchanan,Town Manager TO:Mayor and Town Council SUBJECT:RURAL/METRO 2-YEAR EXTENSION AMENDMENT FOR FIRE SERVICES AND EMERGENCY SERVICES AGREEMENT;AGREEMENT FOR THE LEASE OF SPACE FOR BILLETING AN AMBULANCE SERVICE AND A PARAMEDIC RIDE-ALONG FEE. After initial meetings withthe Rural/Metro representative and subsequent discussionswith exchange of positions highlighted many areas which included it wasdecidedthat beingonlya 2-year extensionandnot a new 5-year agreement discussion, only couple of areas of the current agreement be amended and two other areas negotiated with a separate agreement. They are: Station #2 response times The Station #2 response time language will remain intact in the agreement. Appendix I Amendment An amended equipment list in Appendix "I"of the agreement will include the recently purchased equipment of Spartan Fire Truck and Brush Attack Truck. The 3%annual inflationary factor The Rural/Metro 3% fixed annual fee adjustment will stay intact with the two year extension. Ambulance Facility Lease Rural/Metro Ambulance is a separate entity (see attachment) and is not part of the Town of Fountain Hills Fire Protection and Emergency Services Agreement and currently utilizing Station #1 space at no cost.There has been discussion between Pase 1 of2 *£> R/M representatives and staff to come to an arrangement through a separate agreementexploringwhatotherarrangementandleasefees inothercitiesand towns. Paramedic Ride-Along Fee Rural/Metro Ambulance being a separate entity sometimes finds it necessary to utilize Fountain Hills R/M Fire Department paramedics in a ride-along capacity for adequate patient care to the hospital.The Town of Fountain Hills pays for the paramedic and should reimbursed by Rural/Metro Ambulance Company to pay for that times used.This is standard among many fire departments where the local ambulance company will pay a fee for service ifa fire paramedic is required to conduct a ride-along. Staffis recommending the 2-yearFire ServiceContractextension of the Fire Protection and Emergency Services Agreement betweenthe Town of Fountain Hills and the Rural/Metro Corporation;the Equipment/Apparatus List;the3% fixed annual fee adjustment;and a separate agreement for billeting of ambulances in Town-owned Fire facilities as well as fees for paramedic ride-alongs when necessary. Page 2 of2 2166427.2 SECOND AMENDMENT TO FIRE PROTECTION SERVICES AGREEMENT THIS SECOND AMENDMENT TO FIRE PROTECTION SERVICES AGREEMENT (this “Second Amendment”) is entered into on May 15, 2014 (“Effective Date”), by and between the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation (hereinafter called the “Town”), and RURAL/METRO CORPORATION, an Arizona corporation with a local place of business at 9221 East Via de Ventura, Scottsdale, Arizona 85258 (hereinafter called “Rural/Metro”). RECITALS A. The Town and Rural/Metro entered into a FIRE PROTECTION SERVICES AGREEMENT (the “Original Agreement”) dated May 21, 2009, for fire protection and emergency medical services. B. The Town and Rural/Metro entered into a First Amendment to the Original Agreement on August 2, 2012 (the “First Amendment”), to (i) add provisions relating to the CARES Services and (ii) replace the Manpower Exhibit. Collectively, the First Amendment and Agreement are referred to herein as the “Agreement.” C. The Town and Rural/Metro desire to further amend the Agreement to (i) extend the term for two years subject to the terms and conditions set forth herein, (ii) address the operational period for the Eagle Mountain Ambulance Station, (iii) delete the provisions relating to telephone services at the Fire Stations, (iv) replace Appendix I to include recently purchased equipment and (v) update the notice provisions. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Consultant hereby agree as follows: 1. Term Extended. Pursuant to Section 2.1 of the Agreement (Term), the Parties agree to extend the term of this Agreement for an additional two years, terminating on June 30, 2016. 2. Fire Station Modification. Section 3.1 (Fire Stations) is deleted in its entirety and replaced with the following: 3.1 Fire Stations. The Town Manager shall provide, for Rural/Metro’s use in the Primary Service Area, Station No. 1 and Station No. 2 (individually referred to herein as a “Fire Station” or collectively as the “Fire Stations”). Rural/Metro hereby agrees that the Fire Stations shall be sufficient to allow Rural/Metro to perform the Services during the term of this Agreement; provided, however, that in the event that the Town constructs a new Fire Station within the term of this 2166427.2 2 Agreement, it shall also be made available to Rural/Metro to perform its Services. Rural/Metro agrees to maintain, at its sole cost and expense, the Eagle Mountain Ambulance substation until such time that the town relocates Fountain Hills Fire Station 2. 3. Telephone Service. Section 3.6 (Telephone Services) is deleted in its entirety and reserved for future use. 4. Appendix Replaced. The text of Appendix I (Initial Vehicles and Equipment) is deleted in its entirety and replaced with the following: VEHICLE VIN # LICENSE PLATE 2014 Spartan (E822) 4S7AU2E94EC077602 X-XXXX 2014 Ford F550 (BR823) 1FD0W5HY9EEA17584 G-795GM 2008 Crimson (E 823) 497AT2C958CO63752 G-946EZ 1998 LaFrance (Reserve) 4Z36EFBXYRF75528 G-151CK 1999 LaFrance (L822) 4Z36ESB1XRB05483 G-354DL 2011 Ford (Chief) 1FTFW1CF1BFA44166 G-567GD 2009 Ford 150 4X4 (Asst.Chief) 1FTPW14VX9KB48053 G-968EZ 2011 Ford 550 (SQ 822) 1FD0W5HY4CEB08422 G-794GE 2007 Ford Escape (CARES) 1FMYU59H87KA23856 G-913EP 5. Notices. Section 7.8 (Notices) is deleted in its entirety and replaced with the following: 7.8 Notices. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Kenneth W. Buchanan, Town Manager With copy to: GUST ROSENFELD, P.L.C. One East Washington Street, Suite 1600 Phoenix, Arizona 85004-2553 Attn: Andrew J. McGuire, Esq. If to Rural Metro: Rural/Metro Corporation, Inc. 9221 East Via de Ventura Scottsdale, Arizona 85258 Attn: Fire Chief 2166427.2 3 With a Copy to: Rural/Metro Corporation, Inc. 9221 East Via de Ventura Scottsdale, Arizona 85258 Attn: General Counsel or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 6. Effect of Amendment. In all other respects, the Agreement is affirmed and ratified and, except as expressly modified herein, all terms and conditions of the Agreement shall remain in full force and effect. 7. Non-Default. By executing this Second Amendment, Rural/Metro affirmatively asserts that (i) the Town is not currently in default, nor has been in default at any time prior to this Second Amendment, under any of the terms or conditions of the Agreement and (ii) any and all claims, known and unknown, relating to the Agreement and existing on or before the date of this Second Amendment are forever waived. [SIGNATURES ON FOLLOWING PAGES] 2166427.2 4 IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the date and year first set forth above. “Town” TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Kenneth W. Buchanan, Town Manager ATTEST: Bevelyn J. Bender, Town Clerk (ACKNOWLEDGMENT) STATE OF ARIZONA ) ) ss. COUNTY OF MARICOPA ) On ___________________, 2014, before me personally appeared Kenneth W. Buchanan, the Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document, on behalf of the Town of Fountain Hills. Notary Public (Affix notary seal here) [SIGNATURES CONTINUE ON FOLLOWING PAGE] 2166427.2 5 “Rural/Metro” Rural Metro Corporation, an Arizona corporation By: Michael East, Senior Vice President (ACKNOWLEDGMENT) STATE OF ____________________) ) ss. COUNTY OF __________________) On ________________________, 2014, before me personally appeared Michael East, the Senior Vice President of RURAL METRO CORPORATION, an Arizona corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document on behalf of the corporation. Notary Public (Affix notary seal here) Rural/Metro Fire Department Mr.Ken Buchanan April 29, 2014 Town Manager Town of Fountain Hills 16705 E Avenue of the Fountains Fountain Hills, AZ.85268 Mr.Buchanan, I wanted to follow upon our previousconversations regardingthe emergency response system inthe Town of Fountain Hills.I felt it might be prudent for the sakeof clarity to provide you with a simplified road map of our direction. Keepin mind that Rural/Metro's fire services agreements are matters of negotiations and understanding between us and our customers.Emergency Medical Transportation Agreements are between three entities,Rural/Metro,our customers,and the Department of Health Services. It seems appropriate that we separate these two types of agreements in order to move our business relationship forward. First, it is my desire to complete the process and formalize a 2 year extension of the current fire service agreement with the Town. The extension document is currently under review within the administration of the Town. Secondly,in consideration for the Town's assistance with the ambulance operations,I am planning to facilitate meetings between the Town and representatives of Rural/Metro Ambulance. The intent of these meetings isto reach an equitable financial solution between the parties to reimburse the Town for services they provide supporting the ambulance system.Similar agreements exist currently between Rural/Metro Ambulance (and other owned entities) and other municipalities. Examples of reimbursement include rental of fire station facilities and paramedic support for Advanced Life Support transports. Ted Beam Fire Chief Rural/Metro Fire Department Central Arizona 222 E Main St.Mesa,Arizona 85201