HomeMy WebLinkAbout140619PREVISED: 6/16/14
NOTICE OF THE EXECUTIVE AND
REGULAR SESSIONS OF THE
FOUNTAIN HILLS TOWN COUNCIL
TIME: 5:30 P.M. - EXECUTIVE SESSION
(Executive Session will be held in the Fountain Conference Room - 2nd floor)
6:00 P.M. - VIEWING OF THE TOWN’S NEW FIRE TRUCK (E822) IN THE
TOWN HALL PARKING LOT
6:30 P.M. - REGULAR COUNCIL MEETING
WHEN: THURSDAY, JUNE 19, 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
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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, 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 – Moment of Silence
ROLL CALL – Mayor Linda M. Kavanagh
MAYOR’S REPORT
i) The Mayor will read a PROCLAMATION recognizing JULY 2014 AS PARK AND
RECREATION MONTH in the Town of Fountain Hills.
ii) Rotation of the VICE MAYOR POSITION to Councilmember Cecil A. Yates,
pursuant to Fountain Hills Town Code, Section 2-2-2, which requires every elected
Councilmember to serve as Vice Mayor during the member's elected term.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor may review recent events attended relating to economic development.
ii) Update by Councilmember Ginny Dickey regarding the recent Maricopa
Association of Governments Regional Domestic Violence Council meeting held
June 5, 2014.
iii) Presentation by Robert Bennett, Republic Services General Manager, on the three
year status report.
iv) Update on Tourism by Community Services Director Mark Mayer/Tourism
Assistant Grace Rodman-Guetter.
v) Update from Economic Development Specialist Scott Cooper on the Economic
Development Plan.
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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.
CONSENT AGENDA ITEMS (1 – 9)
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
May 15, 2014 and June 5, 2014.
2. CONSIDERATION of approving the CANCELLATION of the Fountain Hills Town
Council meetings of July 3, 8, and 17, 2014.
3. CONSIDERATION of the THIRD AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT with CliftonLarsonAllen LLP, dated June 19, 2014, for
financial auditing services for the year ending June 30, 2014.
4. CONSIDERATION of renewing the CONTRACT with Albert Holler & Associates for
sales tax auditing services in the amount of $30,000 for one year, effectively July 1, 2014
through June 30, 2015, with up to four annual renewals.
5. CONSIDERATION of the SIXTH AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT with Fountain Hills Theater, in the amount of $63,216.00, for
the fiscal period July 1, 2014 through June 30, 2015, to provide general theater productions
and workshop/camp support for Fountain Hills residents.
6. CONSIDERATION of the SIXTH AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT with Boys & Girls Clubs of Scottsdale, McKee Branch, in the
amount of $51,200.00, for the fiscal period July 1, 2014 through June 30, 2015, to provide
teen activity programs to include academic success, good character and citizenship and
healthy lifestyles for Fountain Hills residents.
7. CONSIDERATION for approval of RESOLUTION 2014-30, abandoning whatever right,
title, or interest the Town has in the certain public utility and drainage easement located at
the rear and northwesterly property line of Plat 403C, Block 2, Lot 35 (15826 E. Cholla
Drive) as recorded in Book 161 of Maps, Page 43, Records of Maricopa County, Arizona.
EA2014-06 (Hagerty)
8. CONSIDERATION for approval of RESOLUTION 2014-33, abandoning whatever right,
title, or interest the Town has in portions of a certain 15' water line easement located within
Plat 705, Parcel A (17130 E. Shea Boulevard) as recorded in Book 468 of Maps, Page 3,
Records of Maricopa County, Arizona. EA2014-05 (IMH Special Asset NT 246, LLC)
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9. CONSIDERATION for approval of RESOLUTION 2014-34, abandoning whatever right,
title, or interest the Town has in the certain 10’ public utility and drainage easement located
at the southerly property line of Plat 303, Block 3, Lot 2 (17315 E. Brantley Drive) as
recorded in Book 147 of Maps, Page 4, Records of Maricopa County, Arizona. EA2014-07
(Sealund)
10. CONSIDERATION for approval of RESOLUTION 2014-35, abandoning whatever right,
title, or interest the Town has in the certain public utility easement and a portion of the
drainage easement located at the rear property line of Plat 506B, Block 1, Lot 38 (15033 E.
Marathon Drive) as recorded in Book 159 of Maps, Page 3, Records of Maricopa County,
Arizona. EA2014-08 (Brown)
REGULAR AGENDA ITEMS
11. CONSIDERATION AND DIRECTION to outside legal counsel REGARDING
RESOLUTION of Dina Galassini v. Town of Fountain Hills and State of Arizona.
12. CONSIDERATION of RESOLUTION 2014-32, regarding an Intergovernmental
Agreement with the Regional Public Transportation Authority relating to transit services.
13. CONSIDERATION of a 1-YEAR CONTRACT EXTENSION for T-Mobile “stealth”
cell tower antenna on Shea Boulevard.
14. CONSIDERATION of AMENDMENT NO. 1 in the amount of $62,997.00 to
CONTRACT C2014-143 with Low Mountain Construction, Inc. for the Avenue Median
Improvements project.
15. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding possible
changes (i) to the Avenue of the Fountains Median Project tree selection, (ii) Public
Address System, (iii) Wi-Fi System, and (iv) a roundabout at the intersection of La
Montana and Avenue of the Fountains.
16. CONSIDERATION of RESOLUTION 2014-31, declaring as a public record that certain
document filed with the Town Clerk and entitled the “2014 Development Impact Fee
Ordinance of the Town of Fountain Hills.”
17. CONSIDERATION of ORDINANCE 14-06, adopting the “2014 Development Impact
Fee Ordinance of the Town of Fountain Hills” by reference and amending the Town of
Fountain Hills Town Code, Chapter 7 (Buildings and Building Regulations), Article 7-10
(Development Fees), by deleting it in its entirety and replacing it with the 2014
Development Impact Fee Ordinance of the Town of Fountain Hills.
18. CONSIDERATION of RESOLUTION 2014-22, levying upon the assessed valuation of
the property within the Town of Fountain Hills, subject to taxation, a certain sum upon
each one hundred dollars ($100.00) of valuation sufficient to raise the amount estimated
to be required in the annual budget, specifically for the purpose of paying principal and
interest upon bonded indebtedness; all for the Fiscal Year ending June 30, 2015.
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19. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to any item
included in the League of Arizona Cities and Towns weekly LEGISLATIVE BULLETIN
or relating to any ACTION PROPOSED OR PENDING BEFORE THE STATE
LEGISLATURE.
20. 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:
NONE.
21. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by
the Mayor, Individual Councilmembers, and the Town Manager.
22. ADJOURNMENT.
DATED this 12th day of June, 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.
Designation of July 2014 as Park and Recreation Month
WHEREAS parks and recreation programs are an integral part of communities throughout this
country, including theTown of Fountain Hills; and
WHEREAS our parks and recreation are vitally important to establishing and maintaining the
quality of life in our communities,ensuring the health of all citizens,and contributing to the
economicand environmental well-beingofa community and region;and
WHEREAS parks and recreation programs build healthy,active communities that aid in the
prevention of chronic disease,provide therapeutic recreation services for those who are mentally or
physically disabled,and also improve the mental and emotional health of all citizens;and
WHEREAS parks and recreation programs increase a community's economic prosperity through
increased property values,expansion of the local tax base,increased tourism,the attraction and
retention of businesses,and crime reduction;and
WHEREAS parks and recreation areas are fundamental to the environmental well-being of our
community;and
WHEREAS parks and natural recreation areas improve water quality,protect groundwater,
prevent flooding,improve the quality of the air we breathe,provide vegetative buffers to
development,and producehabitatfor wildlife;and
WHEREAS our parks and natural recreation areas ensure the ecological beauty ofour community
and provide a place for children and adults to connect with nature and recreate outdoors;and
WHEREAS the U.S.House of Representatives has designated July as Parks and Recreation Month;
and
WHEREAS the Town of Fountain Hills recognizes the benefits derived from parksand recreation
resources
NOW THEREFORE,BE IT RESOLVED BY I, Linda Kavanagh,Mayor of the Town of Fountain
Hills,Arizona,that July 2014 is recognized as Park and Recreation Month in the Town of Fountain
Hills.
~L/'Linda
ATTEST:
Bevelyn j.Bender,ffown Clerk
Town of Fountain Hills
A Public-Private Partnership
1
PARTNERSHIP
•Since July 2011
•20,000 Tons of Waste
•6,000 Tons Recycled
2
REDUCED RATE
•Rates were not consistent; the average was
30.4% higher.
3
2014 RATE INCREASE
•1.22% Increase
•$11.44 to $11.58 (Trash – Recycle)
•$16.44 to $16.64 (Trash – Trash)
•How have other bills increased over the last 3
years?
4
REDUCED NUMBER OF HAULERS
•Benefit #1: Less Impact on Infrastructure
•Benefit #2: Resident Safety
5
REDUCED NUMBER OF HAULERS
•Benefit #3: Reduced Carbon Footprint by 50%
6
http://www.carbonfootprint.com/cfpstandard.html
DONATIONS/SUPPORT
•Fourth at the Fountain $500 05/2013
•Oktoberfest $1000 10/2013
•5k Turkey Trot $500 10/2013
•Press Box at Fountain Hills High School $1000
09/2013
•Fourth at the Fountain 2014 - $500
•Event Boxes ($3 Each)
7
Fountain Hills Recycle Tonnage
2011 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Recycle 128.26 165.47 155.87 173.49 222.26 196.97
Trash 465.6 561.8 493.7 536.4 635.1 547.5
Total 0 0 0 0 0 0 593.86 727.27 649.57 709.89 857.36 744.47
Diversion Rate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 21.60% 22.75% 24.00% 24.44% 25.92% 26.46%
2012 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Recycle 212.7 178.47 195.75 197.6 175.39 149.92 158.04 175.67 150.15 205.78 207.83 202.35
Trash 648.9 541.5 603.1 644.7 670.7 503.6 568.4 519.8 485.2 626 597.6 585.5
Total 861.6 719.97 798.85 842.3 846.09 653.52 726.44 695.47 635.35 831.78 805.43 787.85
Diversion Rate 24.69% 24.79% 24.50% 23.46% 20.73% 22.94% 21.76% 25.26% 23.63% 24.74% 25.80% 25.68%
2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Recycle 224.75 188.12 213.92 214.35 192.17 164.05 167.8 150 158.8 188.6 193.57 240.64
Trash 667.4 589.6 664.8 735.5 644.7 518.8 583.9 515.4 545.6 625.71 577.66 682.54
Total 892.15 777.72 878.72 949.85 836.87 682.85 751.7 665.4 704.4 814.31 771.23 923.18
Diversion Rate 25.19% 24.19% 24.34% 22.57% 22.96% 24.02% 22.32% 22.54% 22.54% 23.16% 25.10% 26.07%
2014 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Recycle 224.6 193.51 205.52 224.18 190.86
Trash 653.5 576.96 692.4 704.6 599.39
Total 878.1 770.47 897.92 928.78 790.25 0 0 0 0 0 0 0
Diversion Rate 25.58% 25.12% 22.89% 24.14% 24.15% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
LANDFILL DIVERSION
8
•Earn points based on
recycling.
•Use points to vote on
community projects.
•10.71% Participation Rate
•388,850 Points Earned
•Three Projects:
–FH Theatre
–Greening of FH
–River of Time Museum
9
AND THE WINNER IS….
10
FREE WALK-UP SERVICE
•$25 Value
11
SERVICE PROVIDERS
12
SERVICE PROVIDERS
13
SERVICE PROVIDERS
14
Consistent Service….
•Same Drivers
•Same Routes
•Same Trucks
•6-Day Customer
Service
CONCLUSION
15
We will handle it from here….
Community Services Department Staff
Intern
Marketing/Advertising Contracts
Working with our Economic Development
Department – Joint Venture
Funding from the Economic Development
Fund
Fort McDowell Yavapai Nation
›Destination Fort McDowell
Arizona Office of Tourism
›Destination Marketing Organization (DMO)
›Prop 302 Funding
Application in Progress
Hotels
Restaurants
Golf Courses
Fort McDowell
›Regular meetings with stakeholders will be
held
Businesses
McDowell Mountain Regional Park
Potential Contracts
›2015/16 Phoenix and/or Scottsdale CVB
Since the Town assumed tourism responsibilities
on January 1, 2014 we have
›Created an analytical database to measure all online
marketing strategies
›Created a growing online presence for the Town and
affiliated events
›Finished renovation of tourism website
›Created an identity for our tourism efforts
i.e. “Experience Fountain Hills!”
›Worked with Ft. McDowell to improve that relationship
– modified tourism website at their request
›Been reclassified as a DMO – Destination Marketing
Organization with the AZ Office of Tourism – Eligible for
Prop 302 funds to support tourism effort
A newly updated website featuring web content for Fort McDowell
Social media and events calendar including promotions for Fort McDowell
events
Creation of a presence and participation at town events
Advertisements for the town in each monthly issue of “Arizona Key
Magazine”
Continued advertisements in “Valley Guide” publication
Continuation with Dining Guide and Visitors Guide publications
Continued Visitor Guide distribution throughout the state
Newly designed marketing handouts; i.e. calendar of events
Create back links on the website for meeting spaces and Fort McDowell web
pages
Add video content and photo galleries to specific web pages on our website
Add downloadable documents i.e. the dining guide and visitors guide to
website
Work with graphic designer to create a cohesively designed “branded”
marketing scheme/strategy for distribution and promotion
Analytics of online social media presence
Current Social Media Outlets Include …
Experiencefountainhills.org
Facebook
Twitter
Instagram
YouTube
LinkedIn
Our growth in social media outlets outreach depicted through analytics
December 2013
April 2014 (To Date)
Special Report – St. Patrick’s Day Event 2014
Since the Town has taken over Tourism
responsibilities, social media presence
and attention has grown:
›“Likes” are up 7.75%
›“People talking about us” is up 440%
›“Reach” is up 207%
Our focus is on events!
›40 Special events tentatively scheduled for
next year – including some potential new
events
Foster increases in event and program
attendance, town recognition and
number of out of town visitors
Continued analysis of social media and online marketing strategy with analytics
Promotion of all online entities & medias
Creation and promotion of …
›“Things to Do” incentive fliers
›Calendar of Events updates
›Branded online and print material Identity
›A deeper presence at events and town activities
Explore other recreation and CVB opportunities – Scottsdale & Phoenix
Meet with identified stakeholders
Tourism presence at major special events
Recognizable identity for our tourism
specific efforts
Fiscal Year 14/15
Budget $103,000
Anticipated AOT
Grant $21,500
Ft. McDowell
Yavapai Nation
›FY 14/15 $ Unknown
Fiscal Year 13/14
Budget $103,000
AOT Grant $20,551
Ft. McDowell
Yavapai Nation
›FY 13/14 $5,000
Service Vendor Cost
Contact
Management/Automated
Campaigns
Infusionsoft $6,600
Inventory Management of
Brochures, Posters & Collateral
INFOX $6,000
Airport Advertising Alliance Airport Marketing $2,580
Website Support IDS Technology Marketing $10,000
Print Media Campaigns TBD $10,000
Surveys & Evaluations TBD $2,000
Printing TBD $11,000
Staff (Interns) TBD $11,520
TOTAL $49,700
Support Contracts/Material
Economic Development Plan Update
Business Attraction
Business Retention
Entrepreneurial Development
Foundational Maintenance
Locational Catalysts
FountainHillsED.org
Business Attraction
Monitoring and updating inventory of available office
space
Contacted new and build on existing relationships with
ED partners
Updated economic development data
Created an ED specific website
Launched a social media presence for ED
FountainHillsED.org
Business Retention & Expansion
Identified 8 targeted Fountain Hills’ businesses
Brokers Alliance – Insurance brokerage
Concept Development Corp. – Laser boresighters/products
CR Engineering – Electrical Engineering Consultants
OpenSystems Media – Multimedia products for embedded computing
Prevco Subsea – Ocean and marine engineering
Set Enterprises – Developer of educational games
SJT Micropower – High performance silicon MESFET transistors
Technologic Systems – Embedded computer systems
FountainHillsED.org
Entrepreneurial Development
Attend Sponsors meeting for JumpStartBiz
Evaluated program and recommended continued
funding for FY 14/15
FountainHillsED.org
Foundational Maintenance
Gathering information and reviewing incentive
strategies from the region
FountainHillsED.org
Locational Catalysts
Encourage infill development and redevelopment
within Downtown
FountainHillsED.org
Business Attraction
Leverage ED relationships for targeting efforts
Targeted marketing messaging
Evaluate ED Roadshow with GPEC/ACA
Feasibility studies for higher education and
healthcare
FountainHillsED.org
Business Retention & Expansion
Continue to build relationships with targeted existing
business
Conduct targeted industry summit
Utilize tracking and identification software
FountainHillsED.org
Entrepreneurial Development
Follow JumpStartBiz graduates for local growth
opportunities
Foundational Maintenance
Further review incentive strategies of regional partners
Compose incentive/assistance program for council
consideration
Review town’s regulatory process
FountainHillsED.org
Locational Catalysts
Focus on downtown open space development
FountainHillsED.org
30 leads
High Tech Manufacturing, Bioindustry, Business
Services, Food Processing, Solar, Financial
Services, Call Centers
Ranging in Size
10K – 100K SF
Existing and BTS
8-40 acres
15-900 new jobs
Working with GPEC
Marketing and local assistance
FountainHillsED.org
www.FountainHillsED.org
www.facebook.com/FountainHillsED
@FountainHillsED
www.linkedin.com/in/FountainHillsED
TOWN OF FOUNTAIN HILLS
M E M O R A N D U M
TO: Mayor Kavanagh & members of the
Town Council DT: 6/19/14
FR: Scott Cooper, ED Specialist RE: Fountain Hills Targeted Existing
Business
It is important for the entire community to recognize how important business retention really is.
Every community has at least one really good success story -- a great young business that
moved into town, opened shop and exploded into a community powerhouse. They are great to
have and a real feather in the community’s cap. However, real job growth over time comes from
the expansion of businesses already in the community. While Business Attraction is an
important role in economic development, and in our plan, it takes a lot less time, energy and
resources to take care of the businesses that are already located in Fountain Hills.
As one of five Focused Approaches of the Economic Development Plan, Business Retention &
Expansion is something that can be addressed quickly. The ED Plan calls for an assessment of
targeted local business, and eight companies were identified. Attached you will find a brief
introduction to each company.
While researching these companies I not only found them each to be outstanding in their
respective industries, but also felt they were well-hidden gems in the community. It is our plan
to not only make the Town aware of who they are and what they do, but also the region, and the
country. These are the businesses that can tell the business story of the Town of Fountain Hills.
Each of these companies has been or will be contacted for individual meetings. Tracking these
meetings and their progress will be done on a regular basis. Building long lasting beneficial
relationships will be the key to future successes.
Fountain Hills Targeted Existing Business
Prevco Subsea – Ocean and marine engineering
John Head, President & Founder
9521 N. Technology Drive, #C1
Fountain Hills, AZ 85268
480-837-0100
John Head founded the company in 1999 and has worked to develop better and more standardized ways
of designing and producing subsea pressure vessels. Over the years, his knowledge and dedication in
this area have enabled him to produce a line of off-the-shelf housings as well as proprietary software
which allows the quick and accurate design of custom and unique enclosures. Under his leadership, the
company is rapidly growing and he has recently added new staff and larger facilities to meet increasing
customer demand.
Brokers Alliance – Insurance brokerage
David Racich, President & CEO
16930 E. Palisades Blvd. Suite 100
Fountain Hills, AZ 85268
800-290-7226 ext. 111
Joseph Racich, Founder (Father of David) started writing life insurance as an independent broker in 1978.
He founded his General Agency, RAAN Marketing, Inc. in February 1982. Joe founded the first Brokers
Alliance in the town of Homewood, Illinois. He expanded in 1995 by establishing the Fountain Hills ,
Arizona office.
Brokers Alliance, Inc. has been serving the Brokerage Community in the areas of Life, Annuities,
Premium Financing, Long Term Care, Disability Insurance and Trust Documentation for the past 30
years.
Set Enterprises – Developer of educational games
Marsha Jean Falco, Founder & CEO
Collette Falco, Owner Operator
16537 E. Laser Drive, Suite 10
Fountain Hills, AZ 85268
480-837-3628
The company’s first game, SET, was invented in 1974 (although the company was founded in 1990) while
doing genetic research in Cambridge, England. Ms. Falco received her M.S. in Population Genetics from
Michigan State University and her B.S. in Animal Science from Arizona State University.
Set Enterprises, Inc. is a family owned and operated business with global presence; its games are sold all
across America and in over 15 countries around the world. They are a leading developer of award
winning family and educational games. Recently, SET Enterprises entered into license agreements to
make some of its games available in new and exciting ways, such as online, electronic handheld games,
syndicated puzzles and mobile devices.
Technologic Systems – Embedded computer systems
Bob Miller, President & Founder
16525 East Laser Drive
Fountain Hills, AZ 85268
480-837-5200
Technologic Systems, Inc. was founded in 1984 in Ohio. The original product line was based on serial
print buffer technology for the then fledgling personal computer industry. The product line grew to include
parallel print buffers with increasing memory and multiple printer inputs even as the computer industry
boomed throughout the late eighties and early nineties. With the proliferation of local area networking in
the early nineties, the days of the print buffer were numbered.
In 1995 that Technologic Systems moved its operation to Fountain Hills, AZ and expanded its product
offering with a line of PC compatible Single Board Computers based on the PC/104 form factor. Since
that time Technologic Systems has experienced steady growth with the addition of three new lines of
Single Board Computers as well as PC/104 peripheral products, enclosures and production support tools.
With the advent of Linux onto the embedded computing scene in the late nineties, Technologic Systems
developed an open source distribution with full networking su pport called TS-Linux.
Concept Development Corp. – Laser boresighters for U.S. military, law enforcement and sportsmen
Rich Langner, President & CEO
16611 E. Laser Drive
Fountain Hills, AZ 85268
800-472-4405
Concept Development Corp. developed the first laser boresighters on the market, the SiteLite Mag Laser
Boresighters, and then established the company in 1992. Today, they are the leading manufacturer of
quality laser boresighters. The SiteLite laser products are in use worldwide by the U.S. Military, EOD
Bomb Squads, Law Enforcement and Sportsmen.
Their latest venture includes development of EOD Laser products for use by bomb squads to acquire IED
targets for disposal.
SJT Micropower, Inc. – RF Mircopower (SJT is the parent company) is the exclusive licensor and world
leader in high performance silicon MESFET transistors for the multi-billion dollar RF, analog and mixed
signal semiconductor markets.
Trevor J. Thornton, Ph.D., President and Founder
Seth J. Wilk, Ph.D., CEO
William Lepkowski, Ph.D., Research and Senior Engineer
16411 N Skyridge Lane
Fountain Hills, AZ 85268
480- 816-8077
Since graduating from Cambridge University (BA 1983, PhD 1987) Trevor Thornton has held post-
doctoral appointments at the Cavendish Laboratory, Cambridge (1986-88) and Bell Communications
Research in New Jersey (1988-90). In 1998 he joined the faculty of the ASU Electrical Engineering Dept.
Dr. Thornton’s group at ASU has pioneered the development of metal–semiconductor field effect
transistors (MESFETs) for low power mixed-signal circuit applications. The ASU device process flow was
first adapted for use at the Space and Naval Warfare Systems Command. In 2000 Dr. Thornton founded
SJT Micropower Inc., to commercialize the Intellectual Property developed in his lab at ASU.
Proprietary technology enables lower cost mobile devices, telecommunication infrastructure, consumer
electronics and embedded analog components. The company offers solutions that meet stringent
requirements of consumer, industrial, medical, automotive, military and aerospace sectors.
SJT Micropower products are designed in house and then fabricated at an outside semiconductor
foundry.
CR Engineering - CR Engineers, Inc. (CRE) is a Consulting Electrical Engineering firm
Catherine Alcorn, President
16719 E Palisades Blvd
Fountain Hills, AZ
480-816-5541
Founded in 1985, CRE serves the electrical engineering needs of the aviation, federal and public works,
commercial, and industrial markets, and excels at technically complicated and specialized projects such
as the electrical design of aeronautical ground lighting (AGL) systems and photovoltaic power systems.
OpenSystems Media – OpenSystems Media (formerly OpenSystems Publishing) focuses solely on the
embedded computing market. OpenSystems Media provides a range of integrated multimedia products
to help deliver messages directly to target audiences
Founding Partners:
John A. Black Jr.
Michael Hopper
Wayne Kristoff
16626 E Avenue of the Fountains, Suite #201
Fountain Hills, AZ 85268
480-967-5581
OpenSystems Media’s promotes the development and use of open standards and new technologies in
the embedded computing industry. They scan the industry for emerging standards, emerging
technologies and uniquely innovative products, and work with industry leaders to develop and publish
articles that educate their readers about innovative new products, technologies, and standards of benefit
to them.
Fountain Hills is the Editorial Office and handles article submissions, products, buyer’s guides, and
websites.
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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 May 15,2014 amd June 5,2014.
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:
frCAA CJUcJ^x^Q^^
Bevelyn Bender,Town Clerk 6/10/2014 Ken Buchanan,Town Manager 6/10/2014
Page 1 of 1
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:June 19,2014 Meeting Type:Regular
Agenda Type:Consent Submitting Department:Administration
Staff Contact Information:Town Manager,Ken Buchanan,480-816-5107,kbuchanan@fh.az.gov
Strategic Priority:Not applicable Council Goal:Not applicable
REQUEST TO COUNCIL:CONSIDERATION of approving the CANCELLATION of the Fountain Hills
Town Council meetings of July 3, 8, & 17, 2014.
Applicant:N/A
Applicant Contact Information:N/A
Property Location:N/A
Related Ordinance,Policy or Guiding Principle:Council Rules of Procedure
Staff Summary (background):The Council has recessed for either a portion or the entire the month of July since
2003.The intent of this agenda item is to provide the public with advance notice of meeting cancellations should
the Council chose to continue this practice.The next regularly scheduled Council meeting date would take place
on August 7,2014,unless a special session became necessary during the Council's hiatus.
Risk Analysis (options or alternatives with implications):N/A
Fiscal Impact (initial and ongoing costs;budget status):N/A
Recommendation(s)by Board(s)or Commission(s):N/A
Staff Recommendation(s):N/A
SUGGESTED MOTION:Move to approve the consent agenda.
Attachment(s):None
Submitted and Approved by:
Ken Buchanan,Town Manager 6/10/14
Pa°e I of 1
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Consent Submitting Department:Administration
Staff Contact Information:Ken Buchanan,Town Manager,480-816-5130,kbuchanan@fh.az.gov
Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of the THIRD AMENDMENT TO PROFESSIONAL
SERVICES AGREEMENT with CliftonLarsonAIIen,LLP, dated June 19,2014, for financial auditing services for the
year ended June 30, 2014.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:
Staff Summary (background):The Town and LarsonAllen,LLP entered into a Professional Services
Agreement dated June 17,2010 for the Contractor to provide financial auditing services.
The initial agreement has been previously amended twice:
(1)On December 6,2012,the First Amendment extended the term of the Initial Agreement.
(2) On July 1,2013,the Second Amendment further extended the term and increased the compensation
amount.The Second Amendment approved the contract for the next two audits (FY13-14 and FY14-15).
This proposed Third Amendment modifies the Scope of Work and creates the mechanism for the engagement
letter to detail the scope of work for each of the next two years.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs;budget status):$61,175 for FY13-14 and FY14-15
Budget Reference (page number):FY13-14 Budget -Page 159 for General Fund,Page 260 for HURF
Funding Source:Multiple Funds
if Multiple Funds utilized,list here:General Fund,HURF Fund
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):
Staff Recommendation(s):Approve
Page 1 of 2
List Attachment(s):THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT with
CliftonLarsonAIIen,LLP dated June 19,2014.
SUGGESTED MOTION (for Council use):MOVE to approve the THIRD AMENDMENT TO PROFESSIONAL
SERVICES AGREEMENT with CliftonLarsonAIIen,LLP,dated June 19,2014.
Prepared by:
NA 6/11/2013
Director's Approval:
NA 6/11/2013
Approved:\pproved:x—n
(en Buchanan,Town ManaqerKenBuchanan,Town Manager 6/11/2013
Page2 of2
Meeting Date:6/19/2014
Agenda Type:Consent
Staff Contact Information:Ken Buchanan
Strategic Values:Economic Vitality
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):Consideration of renewing the CONTRACT with Albert Holler and
Associates for sales tax auditing services in the amount of $30,000 for one year, effective July l,2014 through June 30,
2015 with up to four annual renewals.
Applicant:Ken Buchanan,Town Manager and Craig Rudolphy,Finance Director
Applicant Contact Information:Contract No.C2015-107
Property Location:
Related Ordinance,Policy or Guiding Principle:n/a
Staff Summary (background):From time to time circumstances require sales tax audits of business
transactions occuring within the corporate limits of the Town of Fountain Hills.The contractor is required to be
procured as it requires technical expertise to conduct such sales tax audits to determine compliance with local
ordinances and state law.The Professional Services Agreement with Holler and Associates will be effective
July 1,2014,if approved and conditioned on four areas as stated inthe proposed agreement.Should the
Arizona Department of Revenue take over auditing responsibilities January 1,2015, this agreement will
immediately terminate.
Risk Analysis (options or alternatives with implications):n/a
Fiscal Impact (initial and ongoing costs;budget status):$30,000
Budget Reference (page number):n/a
Funding Source:NA
If Multiple Funds utilized,list here:n/a
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):n/a
Staff Recommendation(s):Approve the Professional Services Contract with Holler&Associates
List Attachment(s):Professional Services Agreement
SUGGESTED MOTION (for council use):Move to approve the Professional Services Contract with Holler &
Associates for sales auditing services not to exceed $30,000.
Page 1 of 2
Prepared by:
NA
Director's Approval:
NA
proved:s—\
Ken Buchanan,Town Manager
6/19/2014
6/19/2014
6/19/2014
Page 2 of2
Contract No. C2015-107
2178597.1
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
ALBERT HOLLER,
D/B/A ALBERT HOLLER & ASSOCIATES
THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into
as of July 1, 2014, between the Town of Fountain Hills, an Arizona municipal corporation (the
“Town”), and Albert Holler, d/b/a Albert Holler & Associates (the “Contractor”).
RECITALS
A. The Contractor possesses the skill and experience required to complete auditing
services (the “Services”).
B. The Town desires to enter into this Agreement with the Contractor for the
Services.
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
Contractor hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set
forth above and shall remain in full force and effect until June 30, 2015 (the “Initial Term”),
unless terminated as otherwise provided in this Agreement. After the expiration of the Initial
Term, this Agreement may be renewed for up to four successive one-year terms (each, a
“Renewal Term”) if (i) it is deemed in the best interests of the Town, subject to availability and
appropriation of funds for renewal in each subsequent year, (ii) at least 30 days prior to the end
of the then-current term of the Agreement, the Contractor requests, in writing, to extend the
Agreement for an additional one-year term, (iii) the Town has a current intergovernmental
agreement in place with the State of Arizona to allow the Town to conduct the audits otherwise
performed by the Arizona Department of Revenue (an “Audit IGA”) and (iv) the Town approves
the additional one-year term in writing (including any price adjustments approved as part of this
Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be
withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this
Agreement shall cause the Agreement to terminate at the end of the then-current term of this
Agreement; provided, however, that the Town may, at its discretion and with the agreement of
the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and
any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms
and conditions of this Agreement shall remain in full force and effect.
2178597.1
2
2. Scope of Work. Contractor shall provide the Services as set forth in the Scope of
Work, attached hereto as Exhibit A and incorporated herein by reference. For the period of time
between July 1, 2014 and December 31, 2014, Contractor shall perform the Services directly for
the Town. Thereafter, Contractor shall perform the Services only if the Town has a current
Audit IGA in place.
3. Compensation. The Town shall pay Contractor for the Initial Term and for each
subsequent Renewal Term, if any, an annual aggregate amount not to exceed $30,000.00 for the
Services. The maximum aggregate amount for this Agreement shall not exceed $150.000.00.
4. Payments. The Town shall pay the Contractor $2,500 each month for the period
of July 1, 2014 through December 31, 2014, and for each month thereafter during which there is
a current Audit IGA in place.
5. Documents. All documents, including any intellectual property rights thereto,
prepared and submitted to the Town pursuant to this Agreement shall be the property of the
Town.
6. Contractor Personnel. Contractor shall provide adequate, experienced personnel,
capable of and devoted to the successful completion of the Services to be performed under this
Agreement. Contractor agrees to assign specific individuals to key positions. Contractor agrees
that, upon commencement of the Services to be performed under this Agreement, key personnel
shall not be removed or replaced without prior written notice to the Town. If key personnel are
not available to perform the Services for a continuous period exceeding 30 calendar days, or are
expected to devote substantially less effort to the Services than initially anticipated, Contractor
shall immediately notify the Town of same and shall, subject to the concurrence of the Town,
replace such personnel with personnel possessing substantially equal ability and qualifications.
7. Inspection; Acceptance. All work shall be subject to inspection and acceptance
by the Town at reasonable times during Contractor’s performance. The Contractor shall provide
and maintain a self-inspection system that is acceptable to the Town.
8. Licenses; Materials. Contractor shall maintain in current status all federal, state
and local licenses and permits required for the operation of the business conducted by the
Contractor. The Town has no obligation to provide Contractor, its employees or subcontractors
any business registrations or licenses required to perform the specific services set forth in this
Agreement. The Town has no obligation to provide tools, equipment or material to Contractor.
9. Performance Warranty. Contractor warrants that the Services rendered will
conform to the requirements of this Agreement and to the highest professional standards in the
field.
10. Indemnification. To the fullest extent permitted by law, the Contractor shall
indemnify, defend and hold harmless the Town and each council member, officer, employee or
agent thereof (the Town and any such person being herein called an “Indemnified Party”), for,
from and against any and all losses, claims, damages, liabilities, costs and expenses (including,
but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings)
2178597.1
3
to which any such Indemnified Party may become subject, under any theory of liability
whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out
of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or
omissions, in connection with the work or services of the Contractor, its officers, employees,
agents, or any tier of subcontractor in the performance of this Agreement. The amount and type
of insurance coverage requirements set forth below will in no way be construed as limiting the
scope of the indemnity in this Section.
11. Insurance.
11.1 General.
A. Insurer Qualifications. Without limiting any obligations or
liabilities of Contractor, Contractor shall purchase and maintain, at its own expense,
hereinafter stipulated minimum insurance with insurance companies authorized to do
business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with
an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town.
Failure to maintain insurance as specified herein may result in termination of this
Agreement at the Town’s option.
B. No Representation of Coverage Adequacy. By requiring insurance
herein, the Town does not represent that coverage and limits will be adequate to protect
Contractor. The Town reserves the right to review any and all of the insurance policies
and/or endorsements cited in this Agreement but has no obligation to do so. Failure to
demand such evidence of full compliance with the insurance requirements set forth in this
Agreement or failure to identify any insurance deficiency shall not relieve Contractor
from, nor be construed or deemed a waiver of, its obligation to maintain the required
insurance at all times during the performance of this Agreement.
C. Additional Insured. All insurance coverage and self-insured
retention or deductible portions, except Workers’ Compensation insurance and
Professional Liability insurance, if applicable, shall name, to the fullest extent permitted
by law for claims arising out of the performance of this Agreement, the Town, its agents,
representatives, officers, directors, officials and employees as Additional Insured as
specified under the respective coverage sections of this Agreement.
D. Coverage Term. All insurance required herein shall be maintained
in full force and effect until all work or services required to be performed under the terms
of this Agreement are satisfactorily performed, completed and formally accepted by the
Town, unless specified otherwise in this Agreement.
E. Primary Insurance. Contractor’s insurance shall be primary
insurance with respect to performance of this Agreement and in the protection of the
Town as an Additional Insured.
F. Claims Made. In the event any insurance policies required by this
Agreement are written on a “claims made” basis, coverage shall extend, either by keeping
2178597.1
4
coverage in force or purchasing an extended reporting option, for three years past
completion and acceptance of the services. Such continuing coverage shall be evidenced
by submission of annual Certificates of Insurance citing applicable coverage is in force
and contains the provisions as required herein for the three-year period.
G. Waiver. All policies, except for Professional Liability, including
Workers’ Compensation insurance, shall contain a waiver of rights of recovery
(subrogation) against the Town, its agents, representatives, officials, officers and
employees for any claims arising out of the work or services of Contractor. Contractor
shall arrange to have such subrogation waivers incorporated into each policy via formal
written endorsement thereto.
H. Policy Deductibles and/or Self-Insured Retentions. The policies
set forth in these requirements may provide coverage that contains deductibles or self-
insured retention amounts. Such deductibles or self-insured retention shall not be
applicable with respect to the policy limits provided to the Town. Contractor shall be
solely responsible for any such deductible or self-insured retention amount.
I. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Contractor shall execute written agreements with its
subcontractors containing the indemnification provisions set forth in this Section and
insurance requirements set forth herein protecting the Town and Contractor. Contractor
shall be responsible for executing any agreements with its subcontractors and obtaining
certificates of insurance verifying the insurance requirements.
J. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Contractor will provide the Town with suitable evidence of
insurance in the form of certificates of insurance and a copy of the declaration page(s) of
the insurance policies as required by this Agreement, issued by Contractor’s insurance
insurer(s) as evidence that policies are placed with acceptable insurers as specified herein
and provide the required coverages, conditions and limits of coverage specified in this
Agreement and that such coverage and provisions are in full force and effect.
Confidential information such as the policy premium may be redacted from the
declaration page(s) of each insurance policy, provided that such redactions do not alter
any of the information required by this Agreement. The Town shall reasonably rely upon
the certificates of insurance and declaration page(s) of the insurance policies as evidence
of coverage but such acceptance and reliance shall not waive or alter in any way the
insurance requirements or obligations of this Agreement. If any of the policies required
by this Agreement expire during the life of this Agreement, it shall be Contractor’s
responsibility to forward renewal certificates and declaration page(s) to the Town 30 days
prior to the expiration date. All certificates of insurance and declarations required by this
Agreement shall be identified by referencing the RFP number and title or this Agreement.
A $25.00 administrative fee shall be assessed for all certificates or declarations received
without the appropriate RFP number and title or a reference to this Agreement, as
applicable. Additionally, certificates of insurance and declaration page(s) of the
insurance policies submitted without referencing the appropriate RFP number and title or
a reference to this Agreement, as applicable, will be subject to rejection and may be
2178597.1
5
returned or discarded. Certificates of insurance and declaration page(s) shall specifically
include the following provisions:
(1) The Town, its agents, representatives, officers, directors,
officials and employees are Additional Insureds as follows:
(a) Commercial General Liability – Under Insurance
Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent.
(b) Auto Liability – Under ISO Form CA 20 48 or
equivalent.
(c) Excess Liability – Follow Form to underlying
insurance.
(2) Contractor’s insurance shall be primary insurance as
respects performance of the Agreement.
(3) All policies, except for Professional Liability, including
Workers’ Compensation, waive rights of recovery (subrogation) against Town, its
agents, representatives, officers, officials and employees for any claims arising
out of work or services performed by Contractor under this Agreement.
(4) ACORD certificate of insurance form 25 (2014/01) is
preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the
phrases in the cancellation provision “endeavor to” and “but failure to mail such
notice shall impose no obligation or liability of any kind upon the company, its
agents or representatives” shall be deleted. Certificate forms other than ACORD
form shall have similar restrictive language deleted.
11.2 Required Insurance Coverage.
A. Commercial General Liability. Contractor shall maintain
“occurrence” form Commercial General Liability insurance with an unimpaired limit of
not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed
Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy
shall cover liability arising from premises, operations, independent contractors, products-
completed operations, personal injury and advertising injury. Coverage under the policy
will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof,
including but not limited to, separation of insured’s clause. To the fullest extent allowed
by law, for claims arising out of the performance of this Agreement, the Town, its agents,
representatives, officers, officials and employees shall be cited as an Additional Insured
under ISO, Commercial General Liability Additional Insured Endorsement form CG 20
10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to
include as an insured the person or organization shown in the Schedule, but only with
respect to liability arising out of “your work” for that insured by or for you.” If any
Excess insurance is utilized to fulfill the requirements of this subsection, such Excess
2178597.1
6
insurance shall be “follow form” equal or broader in coverage scope than underlying
insurance.
B. Vehicle Liability. Contractor shall maintain Business Automobile
Liability insurance with a limit of $1,000,000 each occurrence on Contractor’s owned,
hired and non-owned vehicles assigned to or used in the performance of the Contractor’s
work or services under this Agreement. Coverage will be at least as broad as ISO
coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the
fullest extent allowed by law, for claims arising out of the performance of this
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees shall be cited as an Additional Insured under ISO Business Auto policy
Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance
is utilized to fulfill the requirements of this subsection, such Excess insurance shall be
“follow form” equal or broader in coverage scope than underlying insurance.
C. Professional Liability. If this Agreement is the subject of any
professional services or work, or if the Contractor engages in any professional services or
work adjunct or residual to performing the work under this Agreement, the Contractor
shall maintain Professional Liability insurance covering negligent errors and omissions
arising out of the Services performed by the Contractor, or anyone employed by the
Contractor, or anyone for whose negligent acts, mistakes, errors and omissions the
Contractor is legally liable, with an unimpaired liability insurance limit of $2,000,000
each claim and $2,000,000 annual aggregate.
D. Workers’ Compensation Insurance. Contractor shall maintain
Workers’ Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Contractor’s employees engaged in the performance of
work or services under this Agreement and shall also maintain Employers Liability
Insurance of not less than $500,000 for each accident, $500,000 disease for each
employee and $1,000,000 disease policy limit.
11.3 Cancellation and Expiration Notice. Insurance required herein shall not
expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town.
12. Termination; Cancellation.
12.1 For Town’s Convenience. This Agreement is for the convenience of the
Town and, as such, may be terminated without cause after receipt by Contractor of written notice
by the Town. Upon termination for convenience, Contractor shall be paid for all undisputed
services performed to the termination date.
12.2 For Cause. If either party fails to perform any obligation pursuant to this
Agreement and such party fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the non-defaulting party, such party will be in default. In the event
of such default, the non-defaulting party may terminate this Agreement immediately for cause
and will have all remedies that are available to it at law or in equity including, without limitation,
the remedy of specific performance. If the nature of the defaulting party’s nonperformance is
2178597.1
7
such that it cannot reasonably be cured within 30 days, then the defaulting party will have such
additional periods of time as may be reasonably necessary under the circumstances, provided the
defaulting party immediately (A) provides written notice to the non-defaulting party and (B)
commences to cure its nonperformance and thereafter diligently continues to completion the cure
of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of
such termination for cause, payment shall be made by the Town to the Contractor for the
undisputed portion of its fee due as of the termination date.
12.3 Due to Work Stoppage. This Agreement may be terminated by the Town
upon 30 days’ written notice to Contractor in the event that the Services are permanently
abandoned. In the event of such termination due to work stoppage, payment shall be made by
the Town to the Contractor for the undisputed portion of its fee due as of the termination date.
12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ.
REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further
obligations by the Town or any of its departments or agencies if any person significantly
involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the
Town or any of its departments or agencies is, at any time while the Agreement or any extension
of the Agreement is in effect, an employee of any other party to the Agreement in any capacity
or a Contractor to any other party of the Agreement with respect to the subject matter of the
Agreement.
12.5 Gratuities. The Town may, by written notice to the Contractor, cancel this
Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future
employment, entertainment, gifts or otherwise, were offered or given by the Contractor or any
agent or representative of the Contractor to any officer, agent or employee of the Town for the
purpose of securing this Agreement. In the event this Agreement is canceled by the Town
pursuant to this provision, the Town shall be entitled, in addition to any other rights and
remedies, to recover and withhold from the Contractor an amount equal to 150% of the gratuity.
12.6 Agreement Subject to Appropriation. The Town is obligated only to pay
its obligations set forth in the Agreement as may lawfully be made from funds appropriated and
budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations
under this Agreement are current expenses subject to the “budget law” and the unfettered
legislative discretion of the Town concerning budgeted purposes and appropriation of funds.
Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this
Agreement shall be deemed terminated at the end of the then-current fiscal year term for which
such funds were appropriated and budgeted for such purpose and the Town shall be relieved of
any subsequent obligation under this Agreement. The parties agree that the Town has no
obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations
set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which the
Agreement is executed and delivered. The Town shall be the sole judge and authority in
determining the availability of funds for its obligations under this Agreement. The Town shall
keep Contractor informed as to the availability of funds for this Agreement. The obligation of
the Town to make any payment pursuant to this Agreement is not a general obligation or
indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim
2178597.1
8
against the Town from or relating in any way to the Town's termination of this Agreement
pursuant to this section.
12.7 Audits by ADOR. For the period beginning January 1, 2015, if the Town
does not enter into an Audit IGA and the Arizona Department of Revenue takes over auditing
responsibilities for the Town, this Agreement will immediately terminate. Upon such
termination, Contractor shall complete any current audits in progress, and the Town shall
compensate Contractor through the end of the last such audit.
13. Miscellaneous.
13.1 Independent Contractor. It is clearly understood that each party will act in
its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the
other. An employee or agent of one party shall not be deemed or construed to be the employee
or agent of the other for any purpose whatsoever. The Contractor acknowledges and agrees that
the Services provided under this Agreement are being provided as an independent contractor, not
as an employee or agent of the Town. Contractor, its employees and subcontractors are not
entitled to workers’ compensation benefits from the Town. The Town does not have the
authority to supervise or control the actual work of Contractor, its employees or subcontractors.
The Contractor, and not the Town, shall determine the time of its performance of the services
provided under this Agreement so long as Contractor meets the requirements of its agreed Scope
of Work as set forth in Section 2 above. Contractor is neither prohibited from entering into other
contracts nor prohibited from practicing its profession elsewhere. Town and Contractor do not
intend to nor will they combine business operations under this Agreement.
13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of
the State of Arizona and suit pertaining to this Agreement may be brought only in courts in the
Maricopa County, Arizona.
13.3 Laws and Regulations. Contractor shall keep fully informed and shall at
all times during the performance of its duties under this Agreement ensure that it and any person
for whom the Contractor is responsible abides by, and remains in compliance with, all rules,
regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the
following: (A) existing and future Town and County ordinances and regulations, (B) existing and
future State and Federal laws and (C) existing and future Occupational Safety and Health
Administration standards.
13.4 Amendments. This Agreement may be modified only by a written
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Contractor.
13.5 Provisions Required by Law. Each and every provision of law and any
clause required by law to be in the Agreement will be read and enforced as though it were
included herein and, if through mistake or otherwise any such provision is not inserted, or is not
correctly inserted, then upon the application of either party, the Agreement will promptly be
physically amended to make such insertion or correction.
2178597.1
9
13.6 Severability. The provisions of this Agreement are severable to the extent
that any provision or application held to be invalid by a Court of competent jurisdiction shall not
affect any other provision or application of the Agreement which may remain in effect without
the invalid provision or application.
13.7 Relationship of the Parties. It is clearly understood that each party will act
in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of
the other. An employee or agent of one party shall not be deemed or construed to be the
employee or agent of the other for any purpose whatsoever. The Contractor is advised that taxes
or Social Security payments will not be withheld from any Town payments issued hereunder and
Contractor agrees to be fully and solely responsible for the payment of such taxes or any other
tax applicable to this Agreement.
13.8 Entire Agreement; Interpretation; Parol Evidence. This Agreement
represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and
superseded by this Agreement. No representations, warranties, inducements or oral agreements
have been made by any of the parties except as expressly set forth herein, or in any other
contemporaneous written agreement executed for the purposes of carrying out the provisions of
this Agreement. This Agreement shall be construed and interpreted according to its plain
meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting
the Agreement. The parties acknowledge and agree that each has had the opportunity to seek
and utilize legal counsel in the drafting of, review of, and entry into this Agreement.
13.9 Assignment; Delegation. No right or interest in this Agreement shall be
assigned or delegated by Contractor without prior, written permission of the Town signed by the
Town Manager and no delegation of any duty of Contractor shall be made without prior, written
permission of the Town signed by the Town Manager. Any attempted assignment or delegation
by Contractor in violation of this provision shall be a breach of this Agreement by Contractor.
13.10 Subcontracts. No subcontract shall be entered into by the Contractor with
any other party to furnish any of the material or services specified herein without the prior
written approval of the Town. The Contractor is responsible for performance under this
Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely
manner pursuant to any subcontract shall be a material breach of this Agreement by Contractor.
13.11 Rights and Remedies. No provision in this Agreement shall be construed,
expressly or by implication, as waiver by the Town of any existing or future right and/or remedy
available by law in the event of any claim of default or breach of this Agreement. The failure of
the Town to insist upon the strict performance of any term or condition of this Agreement or to
exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or
the Town’s acceptance of and payment for services, shall not release the Contractor from any
responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a
waiver of any right of the Town to insist upon the strict performance of this Agreement.
13.12 Attorneys’ Fees. In the event either party brings any action for any relief,
declaratory or otherwise, arising out of this Agreement or on account of any breach or default
2178597.1
10
hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’
fees and reasonable costs and expenses, determined by the court sitting without a jury, which
shall be deemed to have accrued on the commencement of such action and shall be enforced
whether or not such action is prosecuted through judgment.
13.13 Liens. All materials or services shall be free of all liens and, if the Town
requests, a formal release of all liens shall be delivered to the Town.
13.14 Offset.
A. Offset for Damages. In addition to all other remedies at law or
equity, the Town may offset from any money due to the Contractor any amounts
Contractor owes to the Town for damages resulting from breach or deficiencies in
performance or breach of any obligation under this Agreement.
B. Offset for Delinquent Fees or Taxes. The Town may offset from
any money due to the Contractor any amounts Contractor owes to the Town for
delinquent fees, transaction privilege taxes and property taxes, including any interest or
penalties.
13.15 Notices and Requests. 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 Contractor: Albert Holler & Associates
18521 East Queen Creek Road, Suite 105-425
Queen Creek, Arizona 85142
Attn: Albert Holler
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
2178597.1
11
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.
13.16 Confidentiality of Records. The Contractor shall establish and maintain
procedures and controls that are acceptable to the Town for the purpose of ensuring that
information contained in its records or obtained from the Town or from others in carrying out its
obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or
employees, except as required to perform Contractor’s duties under this Agreement. Persons
requesting such information should be referred to the Town. Contractor also agrees that any
information pertaining to individual persons shall not be divulged other than to employees or
officers of Contractor as needed for the performance of duties under this Agreement.
13.17 Records and Audit Rights. To ensure that the Contractor and its
subcontractors are complying with the warranty under subsection 13.18 below, Contractor’s and
its subcontractors’ books, records, correspondence, accounting procedures and practices, and any
other supporting evidence relating to this Agreement, including the papers of any Contractor and
its subcontractors’ employees who perform any work or services pursuant to this Agreement (all
of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to
audit and/or reproduction during normal working hours by the Town, to the extent necessary to
adequately permit (A) evaluation and verification of any invoices, payments or claims based on
Contractor’s and its subcontractors’ actual costs (including direct and indirect costs and overhead
allocations) incurred, or units expended directly in the performance of work under this
Agreement and (B) evaluation of the Contractor’s and its subcontractors’ compliance with the
Arizona employer sanctions laws referenced in subsection 13.18 below. To the extent necessary
for the Town to audit Records as set forth in this subsection, Contractor and its subcontractors
hereby waive any rights to keep such Records confidential. For the purpose of evaluating or
verifying such actual or claimed costs or units expended, the Town shall have access to said
Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement
for the duration of the work and until three years after the date of final payment by the Town to
Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town
with adequate and appropriate workspace so that the Town can conduct audits in compliance
with the provisions of this subsection. The Town shall give Contractor or its subcontractors
reasonable advance notice of intended audits. Contractor shall require its subcontractors to
comply with the provisions of this subsection by insertion of the requirements hereof in any
subcontract pursuant to this Agreement.
13.18 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT.
§ 41-4401, the Contractor and its subcontractors warrant compliance with all federal immigration
laws and regulations that relate to their employees and their compliance with the E-verify
requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractor’s failure to
comply with such warranty shall be deemed a material breach of this Agreement and may result
in the termination of this Agreement by the Town.
2178597.1
12
13.19 Conflicting Terms. In the event of any inconsistency, conflict or
ambiguity among the terms of this Agreement and the Scope of Work, the documents shall
govern in the order listed herein.
13.20 Non-Exclusive Contract. This Agreement is entered into with the
understanding and agreement that it is for the sole convenience of the Town. The Town reserves
the right to obtain like goods and services from another source when necessary.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement 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)
2178597.1
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
ALBERT HOLLER, D/B/A ALBERT HOLLER & ASSOCIATES
[Scope of Work]
See following page.
2178597.1
SCOPE OF WORK
Description of Services.
Beginning on July 1, 2014, Contractor will provide the following services:
• Select and complete sales and use tax audits from construction and retail activity
recovering a minimum of $30,000 per fiscal year (annual cost of contract).
• Provide taxpayer assistance as requested.
• Provide monthly reports on the results showing the breakdown by construction sales tax,
number of residential rental taxpayers contacted and residential tax assessments.
Expense Reimbursement.
Contractor shall be entitled to reimbursement from Town for the following “out-of-pocket”
expenses: out-of-state travel provided that it is pre-authorized by the Town Finance Director.
Support Services.
Town will provide the following support services for the benefit of the Contractor: office space,
mail, and photocopying.
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Consent Submitting Department:Administration
Staff Contact Information:Ken Buchanan,Town Manager,480-816-5130,kbuchanan@fh.az.gov
Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):
CONSIDERATION of sixth amendment to the PROFESSIONAL SERVICES AGREEMENT with Fountain Hills
Theater, Inc. in the amount of $63,216.00,for the fiscal period July 1,2014 through June 30,2015,to provide general
theater productions and workshop/camp support for Fountain Hills residents,and
CONSIDERATION of the sixth amendment to the PROFESSIONAL SERVICES AGREEMENT with Boys & Girls
Clubs of Scottsdale,McKee Branch, in the amount of $51,200.00, for the fiscal period July 1, 2014 through June 30,
2015,to provide teen activity programs to include academic success, good character and citizenship and healthy lifestyles
for Fountain Hills residents.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:
Staff Summary (background):These Professional Services Agreements were approved by Council in the
FY14-15 budget.
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):
Page 1 of 2
List Attachment(s):
Sixth amendment to the PROFESSIONAL SERVICES AGREEMENT with Fountain Hills Theater,Inc. in the
amount of $63,216.00,for the fiscal period July 1,2014 through June 30,2015.
Sixth amendment to the PROFESSIONAL SERVICES AGREEMENT with Boys & Girls Clubs of Scottsdale,
McKee Branch,in the amount of $51,200.00,for the fiscal period July 1,2014 through June 30,2015.
SUGGESTED MOTION (for council use):MOVE TO APPROVE the sixth amendment to the PROFESSIONAL
SERVICES AGREEMENT with Fountain Hills Theater,Inc.in the amount of $63,216.00,for the fiscal period
July 1,2014 through June 30,2015,to provide general theater productions and workshop/camp support for
Fountain Hills residents,and
MOVE TO APPROVE the sixth amendment to the PROFESSIONAL SERVICES AGREEMENT with Boys &
Girls Clubs of Scottsdale,McKee Branch,in the amount of $51,200.00,for the fiscal period July 1, 2014
through June 30,2015,to provide teen activity programs to include academic success,good character and
citizenship and healthy lifestyles for Fountain Hills residents.
Approved:
;n Buchanan,Town ManagerKenBuchanan,Town Manager 6/11/2014
Page 2 of 2
SIXTH AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
FOUNTAIN HILLS THEATER,INC.
THIS SIXTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this
"Sixth Amendment")is made as of June 19,2014,between the TOWN OF FOUNTAIN HILLS,
an Arizona municipal corporation (the "Town"),and FOUNTAIN HILLS THEATER,INC.,an
Arizona corporation,f/k/a Fountain Hills Community Theater,Inc.(the "Contractor").
RECITALS
A. The Town and the Contractor entered into a Professional Services Agreement
dated May 17,2007 (the "Original Agreement"),as amended by that certain First Amendment
dated October 4, 2007(the"First Amendment"),as amended bythat certain Second Amendment,
datedJune21, 2010(the"Second Amendment"),as amended by that certain Third Amendment,
dated October 6,2011 (the "Third Amendment"),as amended by that certain Fourth
Amendment,dated June 21, 2012 (the "Fourth Amendment"),and as amended by that certain
Fifth Amendment,dated June 20, 2013 (the "Fifth Amendment"),for the Contractorto provide
youth arts services (the "Services").The Original Agreement,First Amendment,Second
Amendment,Third Amendment,Fourth Amendment and Fifth Amendment are collectively
referred to herein as the "Agreement."
B. The Town has determined that it is necessary to extend the Agreement with the
Contractor for the Services.
C. The Town and the Contractor desire to enter into this Sixth Amendment to (i)
extend the term of the Agreement,(ii)modify the Scope of Work of the Agreement,(iii)revise
the payment provision and (iv)provide for compensation tothe Contractor for the Services.
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
Contractor hereby agreeto amend the Agreement as follows:
1. Term. The term ofthe Agreementis herebyextendeduntilJune30,2015.
2.Scope of Work.The Contractor shall provide the Services asset forth in Scope of
Workattached hereto as Exhibit 1and incorporated herein by reference.
2172191.2
3. Compensation. The Town shall pay Contractor an annual aggregate amount not
to exceed $63,216.00 for the Services as set forth in the Scope of Work attached hereto as
Exhibit 1.
4. Payments. The Town shall pay the Contractor for the Services on a quarterly
basis in conjunction with the submittal by Contractor of quarterly reports, as set forth in the
Scope of Work attachedheretoas Exhibit 1. Quarterlyreportsshall be due no laterthanthe 10th
of the month following the end of each quarter.Payments of $15,804.00 shall be paidwithin 30
days following receipt of the quarterly report;provided, however, that the Town shall have the
right, based upon the information provided in the quarterlyreports,to reduce the final quarterly
payment as necessary if costs to the Contractor for providing the Services during the term of this
Sixth Amendment are estimated to be less than $63,216.00.
5.Effect of Amendment.In all other respects, the Agreement is affirmed and
ratified and,except as expressly modified herein, allterms and conditions of the Agreement shall
remain in full force and effect.
6.Non-Default.By executing this Sixth Amendment,the Contractor affirmatively
asserts that (i) the Town is not currently in default, nor has been in default at any time priorto
this Sixth Amendment,under any of the terms or conditions of the Agreement and (ii) any and
all claims, known or unknown relating to the Agreement and existing on or before the date of
this Sixth Amendment are forever waived.
7.Conflict of Interest.This Sixth Amendment may be cancelled by the Town
pursuantto Ariz.Rev.Stat.§38-511.
[SIGNATURES ON FOLLOWING PAGES]
2172191.2
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
(ACKNOWLEDGEMENT)
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 meon the basis of satisfactory evidence to bethe person who he
claims to be,and acknowledged that he signed the above document,on behalfof the Town of
Fountain Hills.
Notary Public
(Affix notary seal here)
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
2172191.2
"Contractor"
FOUNTAIN HILLS THEATER,INC.,
an Arizona corporation,
f/k/a Fountain Hills Community Theater,Inc.
Bv:H)Un4-Am /JjJs >#.^g-/g^-J xhi £_•
Name
Its:
STATE OF ARIZONA )
) ss.
)COUNTY OF MARICOPA
(Affixnotaj
2172191.2
FAY GRIDLEY
iyiv comm. expires * _
(ACKNOWLEDGEMENT)
, 2014, before me personally appeared
_>to***tc\^l't ])\"'W of FOUNTAIN HILLS
THEATER, INC., an Arizona corporation,f/k/a Fountain Hills Community Theater, Inc., whose
identity was proven to me on the basis of satisfactory evidence to be the person who he/she
claims to be, and acknowledged that he/she signed the above document on behalf of the
corporation.
^/SZ*.
Notary Publ
^
r
2172191.2
EXHIBIT 1
TO
SIXTH AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
FOUNTAIN HILLS THEATER,INC.
[Scope of Work]
See following page.
SCOPE OF WORK FOR FISCAL YEAR 2014-15
PROGRAM:YOUTH ARTS
CONTRACTOR:FOUNTAIN HILLS THEATER,INC.
PROPOSED FUNDING:$63,216.00
Scope of Work:
General production and workshop/camp support.
The Town name and logo will be prominently displayed and acknowledged on all advertising
and promotional material aseithera partial or full sponsor ofeach production.
Reporting:
Quarterly reports,containing the number of performances,number of attendees and per ticket
price,are due by the 10th day following the end of each quarter -March 31,June 30,September
30 and December 31.
Payment Terms:
Funding will be provided in four equal installments of $15,804.00 within 30 days following
receipt of the quarterly report.
2172191.2
2172301.1
SIXTH AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
BOYS & GIRLS CLUB OF GREATER SCOTTSDALE, INC.
THIS SIXTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this
“Sixth Amendment”) is made as of June 19, 2014, between the TOWN OF FOUNTAIN HILLS,
an Arizona municipal corporation (the “Town”), and BOYS & GIRLS CLUB OF GREATER
SCOTTSDALE, INC., an Arizona corporation (the “Contractor”).
RECITALS
A. The Town and the Contractor entered into a Professional Services Agreement
dated May 17, 2007 (the “Original Agreement”), as amended by that certain First Amendment
dated October 4, 2007 (the “First Amendment”), as amended by that certain Second Amendment,
dated June 21, 2010 (the “Second Amendment”), as amended by that certain Third Amendment
dated October 6, 2011 (the “Third Amendment”), as amended by that certain Fourth Amendment
dated June 21, 2012 (the “Fourth Amendment”), and as amended by that certain Fifth
Amendment dated June 20, 2013 (the “Fifth Amendment”), for the Contractor to provide youth
services (the “Services”). The Original Agreement, First Amendment, Second Amendment,
Third Amendment, Fourth Amendment and Fifth Amendment are collectively referred to herein
as the “Agreement.”
B. The Town has determined that it is necessary to extend the Agreement with the
Contractor for the Services.
C. The Town and the Contractor desire to enter into this Sixth Amendment to (i)
extend the term of the Agreement, (ii) modify the Scope of Work, (iii) modify the payment
provision and (iv) provide for compensation to the Contractor for the Services.
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
Contractor hereby agree to amend the Agreement as follows:
1. Term. The term of the Agreement is hereby extended until June 30, 2015.
2. Scope of Work. The Contractor shall provide the Services as set forth in Scope of
Work attached hereto as Exhibit 1 and incorporated herein by reference.
2172301.1
2
3. Compensation. The Town shall pay Contractor an annual aggregate amount not
to exceed $51,200.00 for the Services as set forth in the Scope of Work attached hereto as
Exhibit 1.
4. Payments. The Town shall pay the Contractor for the Services on a quarterly
basis in conjunction with the submittal by Contractor of quarterly reports, as set forth in the
Scope of Work attached hereto as Exhibit 1. Quarterly reports shall be due no later than the 10th
of the month following the end of each quarter. Payments of $12,800.00 shall be paid within 30
days following receipt of the quarterly report; provided, however, that the Town shall have the
right, based upon the information provided in the quarterly reports, to reduce the final quarterly
payment as necessary if costs to the Contractor for providing the Services during the term of this
Sixth Amendment are estimated to be less than $51,200.00.
5. 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.
6. Non-Default. By executing this Sixth Amendment, the Contractor affirmatively
asserts that (i) the Town is not currently in default, nor has been in default at any time prior to
this Sixth Amendment, under any of the terms or conditions of the Agreement and (ii) any and
all claims, known or unknown relating to the Agreement and existing on or before the date of
this Sixth Amendment are forever waived.
7. Conflict of Interest. This Sixth Amendment may be cancelled by the Town
pursuant to ARIZ. REV. STAT. § 38-511.
[SIGNATURES ON FOLLOWING PAGES]
2172301.1
3
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
(ACKNOWLEDGEMENT)
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]
•Contractor'
BOYS &GIRLS CLUB OF GREATER SCOTTSDALE,INC.,
an Arizona corporation
By:^I
:T
Its
(ACKNOWLEDGEMENT)
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On [0 dfl-U 0?June 2014,before me personally appeared _jKg iA&^
ShfliiQWssA I the.-SV P fr£flfercdhovvS of BOYS &GIRLS CLUB OF
SSCOTTS-D.GREATER SCOTTStfALE,INC., an Arizona corporation, whose identity was proven to me on
the basisof satisfactory evidence to be the person who he/she claims to be, and acknowledged
that he/shesigned the above documenton behalf of the corporation.
(U^r-^-iS---: • - ,.-,...—v.~a^• •• •immmmBk^-L -;.*^.-11—• •••• e y
DEVgRLYA-MERlZ'
Notary Pubfic -State ofArizona
MARtCOftt COUNTY
My Commission Expires
July 26,2010
(Affix notary seal here)
2172301
2172301.1
EXHIBIT 1
TO
SIXTH AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
BOYS & GIRLS CLUB OF GREATER SCOTTSDALE, INC.
[Scope of Work]
See following page.
2172301.1
SCOPE OF WORK FOR FISCAL YEAR 2014-15
PROGRAM: YOUTH/TEEN ACTIVITIES
CONTRACTOR: BOYS & GIRLS CLUB OF GREATER SCOTTSDALE,
MARY ELLEN AND ROBERT McKEE BRANCH
PROPOSED FUNDING: $51,200.00
PROGRAMS:
1) Academic success: $20,000
2) Good character and citizenship: $20,000
3) Healthy lifestyles: $11,200
REPORTING:
Quarterly reports, containing the following information broken down by each of the three
programs, are due by the 10th day following the end of each quarter – March 31, June 30,
September 30 and December 31:
1) Frequency of class sessions
2) Number of participants per program
3) Average age of participants
4) Program cost itemized
5) Pre-Post test results
PAYMENT TERMS:
Funding will be provided in four equal installments of $12,800.00 within 30 days following
receipt of the quarterly report.
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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:NotApplicable (NA)NotApplicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION for approval of RESOLUTION 2014-30 abandoning
whatever right,title,or interest the Town has inthe certain public utility easementand a portion of the drainage easement
located at the rearand northwesterly property linesof Plat403C, Block2, Lot 35 (15826E. Cholla Drive)as recorded in
Book 161 of Maps,Page43,Records of Maricopa County,Arizona.EA2014-06 (Hagerty)
Applicant:Rachel Hagerty
Applicant Contact Information:602-740-6759
Property Location:15826 E. Cholla Drive
Related Ordinance,Policy or Guiding Principle:N/A
Staff Summary (background):This item on the Town Council's agenda is a proposalto abandon the public
utility easement and a portion ofthe drainage easement locatedat the rear and northwesterly property linesof
Plat403C,Block 2,Lot 35 (15826 E. Cholla Drive)as shown in Exhibit "A".The property owner desires the
assurance that any future improvements made tothe lot will not be infringed upon by the construction of
utilities.
All affected utility companies have been notified ofthis abandonment proposal and have approved the
proposed abandonment of these public utility easements.
The Engineering Section has reviewed the sitetoascertainanydrainageissues in addition tothe Town's
general interest in the easement.It isthe professional opinion ofthe Engineering Section thatthereis noneed
forthe Townto retain the rear drainage easement proposed to be abandoned,with the understanding that
certain lots within this subdivision are subject to lot-to-lot drainage runoff.The property owner of Lot 35 is
required to pass the developed flows generated bythe upstream lots across their property.
The side 10'drainageeasement will be retained,to potentially eventually outlet drainage flow from Cholla
Driveinto the town-owned Ironwood Wash property at the rear of the lot.The Town will allowthe
encroachmentofthe applicant's proposed 5'wrought iron pool barrier fence crossing and along the retained
easement.(submitted Building Permit number BP2014-253).
Risk Analysis (options or alternatives with implications):N/A
Fiscal Impact (initial and ongoing costs;budget status):N/A
Pagel of 2
Budget Reference (page number):N/A
Funding Source:NA
If Multiple Funds utilized,list here: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 approval of Resolution 2014-30,with the following stipulation:
List Attachment(s):Vicinity Map; Aerial Photo Map;Resolution;Exhibit "A" Map
SUGGESTED MOTION (for council use):Move to approve the abandonment of the public utility easement and a
portion of the drainage easement at Plat 603C,Block 2, Lot 35.
Randy Harrafl,Town Engineer 5/28/2014
Director's Approval^
5/28/2014
Approved:
Ken Buchanan,Town Manager 6/10/2014
Page 2 of2
0/Y W\V.0 '<
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TOWN OF FOUNTAIN HILLS
DEVELOPMENT SERVICES DEPARTMENT
VICINITY MAP
Mcdowell mountain park
TOWN BOUNDARY I
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SCALE:1"=3500'
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DEVELOPMENTSERVICESAERIALPHOTOMAPPLAT603C,BLOCK2,LOT3515826ECHOLLADRLEGEND:LOTLINEROWEASEMENTFLOODPLAINSUBJECTSITEO100'200"SCALE:1"=200'AERIALFLIGHTDATE:10/13
RESOLUTION 2014-30
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS,ARIZONA,ABANDONING WHATEVER RIGHT,TITLE,OR
INTEREST IT HAS IN THE PUBLIC UTILITY EASEMENT AND PORTIONS OF THE
DRAINAGE EASEMENT AT THE REAR AND NORTHWESTERLY PROPERTY
LINES OF PLAT 603C,BLOCK 2, LOT 35,FOUNTAIN HILLS,ARIZONA,AS
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA
COUNTY,ARIZONA,RECORDED IN BOOK 161 OF MAPS,PAGE 43.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council"),as the governing
body of real property located in the Town of Fountain Hills (the "Town"), may require the dedication of public
streets,sewer,water,drainage,and other utility easements or rights-of-way within any 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 easement,and a portion of the drainage easements
located at the rear and northwesterly property lines of Plat 603C,Block 2, Lot 35,Fountain Hills,as
recorded the Office of the County Recorder of Maricopa County, Arizona, Book 161 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,
June 19,2014.
FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO:
Linda M.Kavanagh, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY:APPROVED AS TO FORM:
Kenneth Buchanan,Town Manager Andrew J. McGuire, Town Attorney
SCALE: 1" =40'
DATE:5-28-14
TOWN OF FOUNTAIN HILLS
EASEMENT ABANDONMENT
EXHIBIT "A"
PLAT 603C BLOCK 2 LOT 35
tortaS/Vl*
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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 2014-33 abandoning
whateverright,title, or interestthe Town has in a certain 15'water lineeasement locatedwithin Plat 705,Parcel A (17130
E. Shea Boulevard)as recorded in Book 468 of Maps, Page 3,Records of Maricopa County,Arizona.EA2014-05 (IMH
Special Asset NT 246, LLC)
Applicant:Owner:IMH Special Asset NT 246,LLC,Authorized agent and proposed purchaser (per letter
dated 4/23/2014;Fountain Hills Development Group,LLC
Applicant Contact Information:480-840-8400 (For Fountain Hills Development Group,LLC:Eva Newton;
Telephone:910-695-3694)
Property Location:17130 East Shea Boulevard
Related Ordinance,Policy or Guiding Principle:N/A
Staff Summary (background):This item on the Town Council's agenda is a proposal to abandon a 15'water
line easement located within Plat 705,Parcel A (17130 E.Shea Boulevard)as shown in Exhibit "A"(located at
the northeast corner of Shea Boulevard and Monteray Drive).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 (i.e. only Chaparral City Water Company)have been notifiedofthis
abandonment proposal and have approved the proposed abandonment of this water line easement.
The existing 15'water line easement was created on the Plat 705 subdivision plat. Atthat time, the easement
was the intended location for a waterline looping a proposed motel project, which was never constructed.So,
the easement is not now needed,and can be abandoned.This abandonment is a necessary prerequisite for
most any future site water system layout,including forthe proposed Tractor Supply Company store currently
proposed forthissite (SU2014-04;CP2014-01),which is currently in the preliminary staff review process prior
to its consideration by the Planning and Zoning Commission and Town Council.
Because the applicant is a proposed purchaser ofthe property, and because ofthe property owner's request;
afterTown Council action, staff will contact the property owner and waitfortheir writtenauthorization before
recording the abandonment documents.
Risk Analysis (options or alternatives with implications):N/A
Fiscal Impact (initial and ongoing costs;budget status):N/A
Page 1 of 2
Budget Reference (page number):N/A
Funding Source:NA
If Multiple Funds utilized,list here: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 approval of Resolution 2014-33.
List Attachment(s):Vicinity Map; Aerial Photo Map;Resolution;Exhibit "A" Map
SUGGESTED MOTION (for Council use):Move to approve the abandonment of a 15'water line easement at Plat
705,Parcel A.
/'-?/,
Paul Mood,Dei'elop/nent Services Director
^,£Z..-.i<3*.
Ken Buchanan,Town Manager
5/28/2014
6/10/2014
Page 2 of 2
RESOLUTION 2014-33
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR
INTEREST IT HAS IN A CERTAIN 15'WATER LINE EASEMENT LOCATED WITHIN
PLAT 705,PARCEL A, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE
OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA,
RECORDED IN BOOK 468 OF MAPS,PAGE 3.
WHEREAS,the Mayorand Council ofthe Townof Fountain Hills (the "Town Council"),as the governing
bodyof real property located inthe Townof 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 authorityto accept or reject offers ofdedication of private
property by easement,deed,subdivision,plat or other lawful means;and
WHEREAS,Chaparral City Water Company has received notificationof 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 15'water line easement lying within Plat 705,Parcel A, Fountain Hills,as
recorded the Officeof the County Recorder of Maricopa County, Arizona, Book 468 of Maps,Page 3, and
as more particularly described in ExhibitA,attached hereto and incorporated herein by reference.is hereby
declared to be abandoned by the Town.
SECTION2. That this Resolution is one of abandonment and disclaimer by the Townsolely for
the purpose of removing any potential cloud on the titleto said property and that the Town inno way
attempts to affect the rights ofany private party to oppose the abandonment or assert any rightresulting
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,
June 19,2014.
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
d/S AY,0
f**tHh.t\+*
NORTH
SCALE:1"•3500
TOWN OF FOUNTAIN HILLS
DEVELOPMENT SERVICES DEPARTMENT
VICINITY MAP
Mcdowell mountain park
TOWN BOUNDARYl
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
3
DEVELOPMENT SERVICES
AERIAL PHOTO MAP
PLAT 705 REPLAT,PARCEL A
17130 E SHEA BLVD
LEGEND
LOTLINE
ROW
EASEMENT
FLOODPLAIN
SUBJECT SITE
0 100"200'
SCALE:1" =200'
AERIAL FLIGHT DATE:10/13
TOWN OF FOUNTAIN HILLS
EASEMENT ABANDONMENT
EXHIBIT "A"
PLAT 705 REPLAT,PARCEL A -(MCR 98-0338677)
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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 2014-34 abandoning
whatever right, title, or interest the Town has in the certain 10' public utility and drainage easement located at the
southerly property line of Plat 303, Block 3, Lot 2 (17315 E. Brantley Drive) as recorded in Book 147of Maps, Page4,
Records of Maricopa County, Arizona.EA2014-07 (Sealund)
Applicant:Ralph Sealund
Applicant Contact Information:602-549-4604
Property Location:17315 E.Brantley
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 10' public
utility and drainage easement located at the southerly property line of Plat 303,Block 3,Lot2 (17315 E.
Brantley 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.The applicant has
applied for a Building Permit to construct a masonry retaining wall/fence at the rear and a portion ofthe side
property lines (BP2014-287),and has recently granted a 10' x 10'public utility easement at the northerly corner
ofthelot(EAA2014-07).
All affected utility companies have been notified of this abandonment proposal and have approved the
proposed abandonment of the public utility easement.
The Engineering Section has reviewed the site to ascertain any drainage issues inadditionto 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 rear drainage easement proposed to be abandoned,with the understanding that
certain lots within this subdivision are subject to lot-to-lot drainage runoff.The property owner of Lot2 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
Page 1 of 2
Funding Source:NA
IfMultipleFunds utilized, list here: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 approval of Resolution 2014-34.
List Attachment(s):Vicinity Map;Aerial Photo Map;Resolution;Exhibit "A"Map
SUGGESTED IVlOTION (for council use):Move to approve the abandonment of the 10'public utility and drainage
easement at Plat 303,Block 3, Lot 2.
Approved:proved:-^
Oa/sOa^^
Ken Buchanan,Town Manager 6/10/2014
Page2 of2
RESOLUTION 2014-34
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS,ARIZONA,ABANDONING WHATEVER RIGHT,TITLE OR
INTEREST IT HAS IN THE PUBLIC UTILITY AND DRAINAGE EASEMENT
LOCATED AT THE SOUTHERLY PROPERTY LINE OF PLAT 303,BLOCK 3,LOT 2,
FOUNTAIN HILLS,ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY
RECORDER OF MARICOPA COUNTY,ARIZONA,RECORDED IN BOOK 147 OF
MAPS,PAGE 4.
WHEREAS,the Mayor and Council of the Town of Fountain Hills (the "Town Council"),as the governing
body of real property located in the Town of Fountain Hills (the "Town"),may require the dedication of public
streets,sewer,water,drainage,and other utility easementsor rights-of-way within any proposed
subdivision;and
WHEREAS,the Town Council hasthe authority to accept or reject offers ofdedication of private
propertyby easement,deed,subdivision,plator other lawful means; and
WHEREAS,all present utility companies have received notification ofthe proposed abandonment.
NOWTHEREFORE, BE ITRESOLVED BYTHE MAYOR ANDCOUNCILOF THE TOWNOF
FOUNTAIN HILLS,as follows:
SECTION 1.That the certain public utility easement,located atthe southerly property line of Plat
303,Block 3,Lot 2,Fountain Hills,as recorded the Office ofthe County Recorder of Maricopa County,
Arizona,Book 147of Maps,Page 4, and as more particularly described in Exhibit A,attachedheretoand
incorporated herein by reference,are hereby declared tobe abandoned by the Town.Certain lots within
this subdivision are subject to lot-to-lot drainage runoff.The property owner is required topassthe
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 ofany private party to oppose the abandonment or assert any right resulting
there from or existing previoustoany actionbythe Town.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
June 19,2014.
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
0 25'50'
SCALE: 1" -50'
DATE:6-5-14
TOWN OF FOUNTAIN HILLS
EASEMENT ABANDONMENT
EXHIBIT "A"
PLAT 303 BLOCK 3 LOT 2
NEW 10'x10'P.U.E.
(BY SEPARATE
DOCUMENT)
BLOCK 3
LOT 2
ABANDON
10' P.U.E. &D.E."
N55-24'00"E
NORTH
SCALE:1"=3500'
TOWN OF FOUNTAIN HILLS
DEVELOPMENT SERVICES DEPARTMENT
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
DEVELOPMENT SERVICES
AERIAL PHOTO MAP
PLAT 303,BLOCK 3,LOT 2
17315 E BRANTLEY DR
LEGEND
LOTLINE
ROW
EASEMENT
FLOODPLAIN
SUBJECT SITE
0 100'200'
SCALE:1" =200"
AERIAL FLIGHT DATE:10/13
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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 2014-35 abandoning
whateverright,title, or interestthe Town has inthe certain public utility easement and a portionof the drainageeasement
located at the rear property line of Plat 506B, Block 1,Lot 38 (15033 E.Marathon Drive)as recorded in Book 159 of
Maps, Page 3, Records of Maricopa County,Arizona.EA2014-08 (W. Brown)
Applicant:William and Sandi Brown
Applicant Contact Information:253-209-0344
Property Location:15033 E.Marathon 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 506B, Block 1,Lot 38 (15033 E.
Marathon 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 ofthis abandonment proposal and have approved the
proposed abandonment of these public utility easements.A public utility easement is needed at the
northeasterly corner of the lot, for existing and future utility boxes.
The Engineering Section has reviewed the site to ascertain any drainage issues inadditionto the Town's
general interest inthe easement.It is the professional opinionof the Engineering Section that there is no need
for the Town to retain the rear drainage easement proposed to be abandoned,with the understanding that
certain lots within this subdivision are subject to lot-to-lot drainage runoff.The property owner of Lot 38 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 2014-35,with the following stipulation:
*Grant a 10'x 10'public utility easement at the northeasterly 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 the public utility easement at Plat
506B,Block 1,Lot3d>
Paj*rMoody^everbpra§nt Scr /1ces Director
Approved:-—>.
Ken Buchanan,I own Manager
B75720T4"
6/10/2014
Page 2 of2
NORTH
SCALE:1"=3500'
TOWN OF FOUNTAIN HILLS
DEVELOPMENT SERVICES DEPARTMENT
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
DEVELOPMENT SERVICES
AERIAL PHOTO MAP
PLAT 506B,BLOCK 2,LOT 38
15033 E MARATHON DR
LEGEND
LOTLINE
ROW
EASEMENT
FLOODPLAIN
SUBJECT SITE
0 100'200'
SCALE:f =200'
AERIAL FLIGHT DATE:10/13
RESOLUTION 2014-35
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS,ARIZONA,ABANDONING WHATEVER RIGHT TITLE OR
INTEREST IT HAS IN THE PUBLIC UTILITY AND DRAINAGE EASEMENT AT THE
SOUTHERLY PROPERTY LINE OF PLAT 506B,BLOCK 1,LOT 38,FOUNTAIN
HILLS,ARIZONA,AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER
OF MARICOPA COUNTY,ARIZONA,RECORDED IN BOOK 159 OF MAPS PAGE
3.
WHEREAS,the Mayor and Council of the Town of Fountain Hills (the "Town Council"),as the governing
body of real property located in the Town of Fountain Hills (the "Town"),may require the dedication of public
streets,sewer,water,drainage,and other utility easements or rights-of-way within any proposed
subdivision;and
WHEREAS,the Town Council has the authority to accept or reject offers of dedication of private
property by easement,deed,subdivision,platorother lawful means; and
WHEREAS,all present utility companies have received notification ofthe proposed abandonment.
NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS,as follows:
SECTION 1.Thatthe certain public utility and drainage easement located attherearand
southerly property line of Plat 506B,Block 1,Lot 38,Fountain Hills,as recorded the Office of the County
Recorder of Maricopa County,Arizona,Book 159 of Maps,Page 38,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 previoustoany actionbythe Town.
PASSED AND ADOPTED BYthe Mayor and Councilof the Town of Fountain Hills,
June 19,2014.
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,TownAttorney
0 15'30
SCALE: 1"=30'
DATE:6-5-14
TOWN OF FOUNTAIN HILLS
EASEMENT ABANDONMENT
EXHIBIT "A"
PLAT 506B BLOCK 2 LOT 38
res T?*\*
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Administration
Staff Contact Information:Joan Mcintosh,Human Resources Administrator,480-816-5125,jmcintosh@fh.az.gov.
Council Goal:
Strategic Values:Not Applicable (NA)Not Applicable (NA)
(Agenda Language):CONSIDERATION of RESOLUTION 2014-32,approving a Transit
Services Agreement between the Town of Fountain Hills and The Regional Public Transportation Authority.
Applicant:N/A
Applicant Contact Information:N/A
Property Location:N/A
Related Ordinance, Policy or Guiding Principle:
Staff Summary (background):On April 3,2014,Valley Metro presentedtothe Council the final results of a
transit feasibility study for the Town of Fountain Hills.Mr.Buchanan recommended tothe Council thatthe
Town proceed with the RideChoice Program,which wasalsoone of Valley Metro's recommendations based
on their findings.On June 19,2014,Ron Brooks from Valley Metro will be present to answer any questions
the Council mayhave pertaining tothe RideChoice Program
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoingcosts; budget status): $66,000
Budget Reference (page number):
Funding Source:Grant Fund
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form: na
Recommendation(s)by Board(s)or Commission(s):N/A
Staff Recommendation(s):Approval of Resolution 2014-32.
List Attachment(s):Transit Services Agreement Between the Town of Fountain Hills and the Regional Public
Transportation Authority -Contract #124-75-2015.
SUGGESTED MOTION (for Council use):Move to approve Resolution 2014-32
Page 1 of 2
Prepared by:
\cc^hncu^jio
Jfodn Mcintosh,HR Administrator/Risk Manager 6/3/2014
Director's Approval:
m 6/3/2014
Approved:prouea:^—-^
Ken Buchanan,Town Manager "*6/3/2014
Pace 2 of 2
2180707.1
RESOLUTION NO. 2014-32
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING AN INTERGOVERNMENTAL
AGREEMENT WITH THE REGIONAL PUBLIC TRANSPORTATION
AUTHORITY RELATING TO TRANSIT SERVICES.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Intergovernmental Agreement with the Regional Public
Transportation Authority relating to transit services (the “Agreement”) is hereby approved in
substantially the form and substance attached hereto as Exhibit A and incorporated herein by
reference.
SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to cause the execution of the Agreement and to take all steps
necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, June 19, 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
2180707.1
EXHIBIT A
TO
RESOLUTION NO. 2014-32
[Agreement]
See following pages.
1
FOUNTAINHILLS TRANSIT SERVICES IGA 2014 14
TRANSIT SERVICES AGREEMENT
BETWEEN THE TOWN OF FOUNTAIN HILLS (“Member”)
AND
THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY
Contract # 124-75-2015
THIS TRANSIT SERVICES AGREEMENT (“Agreement”) is made and entered into
this 1st day of July, 2014 by and between the Town of Fountain Hills, a Arizona municipal
corporation (hereinafter referred to as “Member”) and the Regional Public Transportation
Authority, a political subdivision of the state of Arizona (hereinafter referred to as “RPTA”).
Member and RPTA are collectively referred to as the “Parties.”
RECITALS
WHEREAS, Member has statutory authority to provide transit services and to enter into
agreements with other entities within Maricopa County to provide transit services (A.R.S.
Section 11-951, et seq.); and,
WHEREAS, RPTA is a political subdivision of the state of Arizona, established for the
purpose of planning and providing public transportation services (A.R.S. Section 48-5121;
A.R.S. Section 48-5101, et seq.); and,
WHEREAS, as a political subdivision of the state of Arizona RPTA “may contract and
enter into stipulations of any nature to do all acts necessary and convenient for the full exercise
of” its powers granted under A.R.S. Section 48-5101, et seq., including entering into
intergovernmental agreements with other governmental entities (A.R.S. Section 11-951, et seq.);
and,
WHEREAS, RPTA is willing to provide, and Member is willing to purchase or receive
transportation services as detailed in this Agreement; and,
2
FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
WHEREAS, transit activities are one of those types of activities authorized pursuant to
the aforementioned statutory and other authority,
AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual covenants and
considerations herein contained, it is agreed by the Parties as follows:
SECTION 1. DEFINITIONS
The following capitalized terms shall have the following meaning when used in this
Agreement, unless a different meaning is clearly intended:
“RPTA” means the Regional Public Transportation Authority, a political subdivision of
the State of Arizona.
“Member” means the Town of Fountain Hills, Arizona municipal corporation and a
community within the service area of the Regional Public Transportation Authority (RPTA).
“Effective Date” means the date on which rights granted hereunder become operative, as
specified in Section 6 hereof.
“Force Majeure” means any event which: (i) causes either party to be unable to perform
under this agreement; and (ii) is outside the reasonable control of the party unable to perform and
could not be avoided by such party through the exercise of due care. Force Majeure events
include, without limitation: terrorists, earthquakes, fires, floods, tornadoes, wars, labor strikes or
similar accidents, disputes or similar events.
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SECTION 2. SCOPE OF AGREEMENT
During the term of this agreement RPTA shall provide the following services:
The Ride Choice Program (Schedule D): Ride Choice is a program which provides
subsidized taxicab services to Fountain Hills residents who have qualifying disabilities and/or
who are 65 years of age or more. Each qualifying resident will receive up to $100.00 of taxicab
service per month. The rider will pay 25% of the cost, and the Town will pay the remaining 75%.
Americans with Disabilities Act (ADA) Public Transportation Funds (PTF) (Schedule E)
The RPTA shall transfer to the Member funds allocated by the Board of the RPTA, and specified
in Schedule E, for the purposes of reimbursing Member for the cost to provide Paratransit
services to ADA certified individuals. The Member shall submit a PTF Reimbursement Request
Form, Attachment A, certifying that the costs have been incurred and are eligible for
reimbursement.
SECTION 3. RPTA’S OBLIGATIONS:
3.1 With respect to the services provided hereunder, RPTA, shall:
a. Provide Fixed Route Bus, Dial-a-Ride Paratransit Services or other transit
services, administrative services, equipment, personnel and management
services directly or through contractors, as provided in this Agreement.
The RPTA shall ensure that the contractor(s) are duly qualified, licensed,
trained, and have adequate equipment to perform services under this
Agreement;
b. Draft and secure approval for annual operating budgets;
c. Intentionally deleted;
d. Administer the RideChoice Program.
e. Select, oversee and manage the RideChoice contractor and any
subcontractors utilized for this program.
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
f. Create marketing materials, including brochures, applications and other
documents intended to inform the public about the RideChoice program.
g. Accept applications for RideChoice service and make determinations of
eligibility based on guidelines agreed to by the parties.
h. Forward information for eligible riders to the RideChoice contractor, who
will be responsible for enrolling the rider in the program, for providing the
fare card and for providing customer service and support to the rider as
he/she uses the RideChoice program.
i. Providing monthly reports and invoices to the Town.
j. Managing the budget which the Town has established for the RideChoice
program.
3.2 The RPTA and the Member may conduct service and financial audits, as required,
of any Services provided hereunder.
3.3 By February 21 of each year, the RPTA shall provide the Member with a detailed
written budget estimate for the provision of transit Services, including the expected sources and
amounts of funding for the next fiscal year. If the Member approves the budget estimate, RPTA
shall prepare an amendment to this Agreement for Member approval of the budget estimate.
SECTION 4. TOWN’S OBLIGATIONS:
4.1 With respect to the services provided hereunder, Member, shall:
a. If Member desires services in addition to the Services originally approved in the
schedules hereto, Member shall provide funding adequate to finance such services
over and above funding provided by the RPTA and Member.
b. Intentionally deleted;
c. The Member may purchase and install bus stop signs and associated amenities;
d. The Member shall provide advice to the RPTA and to any operator providing
service required by this Agreement in the preparation and amendment of service
plans;
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
e. Collaborate with Valley Metro on eligibility guidelines for the RideChoice
program.
f. Assist Valley metro with marketing and outreach as necessary.
g. Establish and communicate the annual budget for the program.
4.2 Member does hereby agree to participate in the Valley Metro Program(s) defined
in Section 2 of this agreement.
4.3 Transit Life Cycle Program: Intentionally deleted.
SECTION 5. TERM OF AGREEMENT
This Agreement shall be operative for an indefinite term to be amended on an annual
basis as service needs and as Public Transportation Fund (PTF) reimbursements are agreed. The
Parties do not intend that the term of this Agreement shall exceed any limitation imposed by law,
including, without limitation, the laws of the State of Arizona, and agree to comply with any
applicable requirements of such laws in connection with any renewal of the term of this
Agreement.
SECTION 6. EFFECTIVE DATE
This Agreement shall take effect only after it has been approved by Member’s Council,
approved by the RPTA Board of Directors, executed by the duly authorized officials of each of
the Parties, approved by the Parties’ respective counsel.
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SECTION 7. GENERAL CONDITIONS
A. Records and Audit
All books, accounts, reports, files and other records relating to this Agreement
under the custody or control of RPTA or its contractors shall be subject, at all
reasonable times, to inspection and audit by Member and RPTA for five (5) years
after completion of this Agreement. Such records shall be produced at RPTA
offices as and when requested by Member.
B. Covenant Against Contingent Fees
Both Parties warrant that no person has been employed or retained to solicit or
secure this Agreement upon an agreement or understanding for a commission,
percentage, brokerage or contingent fee; and that no member of Congress, no
member of the Member’s Council or the RPTA Board of Directors, and no
officer, agent, or employee of the Town or RPTA has any interest, financially or
otherwise, in this Agreement.
C. Alteration in Character of Work
Minor alterations in the character of work shall be authorized in writing by
Member and acknowledged by RPTA by letter.
D. Termination (and/or Changes in Service)
Member and RPTA hereby agree to full performance of the covenants and
obligations contained herein, except that each reserves the right, at its option and
sole discretion, to terminate or abandon the service provided for in this
Agreement, or any portion thereof.
Termination of this Agreement may be at any time and for any reason, with or
without cause, upon providing ninety (90) calendar days prior written notice to
the other Party. Termination shall be effected by delivery of a Notice of
Termination specifying the extent to which performance of work under the
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
Agreement is terminated, and the date upon which such termination becomes
effective.
Upon termination, RPTA shall calculate actual expenses incurred up to and
including the date of termination and (if termination was at the election of
Member) any penalty or costs whatsoever (including, but not limited to, any costs
of such termination as a result of Section 49 U.S.C. 1609 [formerly Section 13(c)
of the Federal Transit Act of 1964, as amended] together with any penalty or costs
imposed by other funding sources and any related labor costs (the total of which is
hereinafter referred to as “termination costs”). If Member has paid RPTA sums in
excess of the termination costs, RPTA shall refund the excess; if Member has paid
RPTA an amount less than the termination costs, then Member shall pay to RPTA
an amount equal to the difference between the termination costs and the amount
that Member already has paid under this Agreement. Upon termination of this
Agreement, all property used in connection with this Agreement will be promptly
returned to the Party holding title thereto, not considering any state or federal
funding. Final payment shall be made within sixty (60) calendar days after the
termination of service.
SECTION 8. ADDITIONAL WORK
This Section is intentionally left blank.
SECTION 9. AGREEMENT NON-ASSIGNABLE
RPTA may not assign or otherwise transfer any of its rights or obligations hereunder to a
third Party without the express prior written consent of Member, which may be granted or
withheld by Member in its sole and absolute discretion. Any assignment or transfer without such
prior written consent shall be void.
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
SECTION 10. INDEMNIFICATION
Except for claims arising solely and exclusively from the negligent or willful acts or
omissions of Member, its officers, officials, agents or employees (hereinafter referred to as
“Indemnitee”), RPTA shall indemnify, defend, save and hold the Indemnitee harmless from and
against any and all claims, actions, liabilities, damages, losses, expenses and costs (including
court costs, attorneys’ fees and costs of claim processing, primary loss investigation and
litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including
death), loss or damage to tangible property: (1) arising under this Agreement, or (2) caused, or
alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of RPTA
or any of its owners, officers, directors, agents, contractor or employees, including employees
from the Member assigned to work full time for RPTA.
It is the specific intent of the Parties to this contract that the Indemnitee shall, in all
instances except for loss or damage resulting from the sole and exclusive negligence of the
Indemnitee, be indemnified against all liability, loss or damage of any nature whatever for or on
account of any injuries to or the death of any person or damages to or the destruction of property
belonging to any person, arising out of or in any way connected with the performance of this
Agreement.
SECTION 11. INSURANCE
RPTA will maintain in force the insurance program approved the by RPTA Board of
Directors and included in RPTA’s fiscal year budgets.
SECTION 12. DEFAULT
Either Party shall be deemed in default under this Agreement upon the failure of such
Party to observe or perform any material covenant, condition or agreement on its part to be
observed or performed hereunder, and the continuance of such failure for a period of thirty (30)
days after written notice by the other Party, as required herein. Such notice shall specify the
failure and request it be remedied, unless the Party giving notice agrees in writing to an
extension of the time period prior to its expiration. However, if the failure stated in the notice
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
cannot be corrected within the applicable period, it will not give rise to a default hereunder if
corrective action is instituted within the applicable period and diligently pursued until the failure
is corrected. In the event of a default hereunder, the non-defaulting Party may have a breach of
contract claim and remedy against the other in addition to any remedy provided or permitted by
law; provided, however, that no remedy that would have the affect of amending any provisions
of this Agreement shall become effective without the formal amendment of this Agreement.
SECTION 13. ISSUE RESOLUTION
Any dispute arising out of the interpretation of any provision of this Agreement, any
policy matter or the determination of an issue of fact, which dispute is not resolved at staff level,
shall be referred to RPTA’s Chief Executive Officer and a representative designated by Member.
If, after good faith negotiations aimed at reaching an amicable solution, a dispute cannot be
resolved, the dispute shall be presented to the RPTA Board of Directors for resolution. If not
resolved at this level, the dispute may be brought before a court of competent jurisdiction in
Maricopa County, Arizona.
SECTION 14. NOTICE
Any notice, consent or other communication (“Notice”) required or permitted under this
Agreement shall be in writing and either delivered in person, deposited in the United States mail,
postage paid, registered or certified mail, return receipt requested, or deposited with any
commercial air courier or express service addresses as follows:
If intended for RPTA:
Regional Public Transportation Authority
Attention: General Counsel
101 N. 1st Avenue, Suite 1300
Phoenix, AZ 85003
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
If intended for Member:
Town of Fountain Hills
Attn: Kenneth W. Buchanan, Town Manager
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
with copy to:
Gust Rosenfeld, PLC
Attn: Andrew J. McGuire
One East Washington Street, Suite 1600
Phoenix, Arizona 85004
Notice shall be deemed received at the time it is personally served or, on the second day
after its deposit with any commercial air courier or express service, if mailed, ten (10) days after
the notice is deposited in the United States mail as provided. Any time period stated in a Notice
shall be computed from the time the Notice is deemed received. Either Party may change its
mailing address or the person designated to receive notice by notifying the other Party as
provided in this Section.
SECTION 15. AMENDMENT
This Agreement may be modified or amended only by a written document executed by
both RPTA and Member, approved as to form by the Member Attorney, and may be filed with
the Member’s Clerk. Such document shall expressly state that it is intended by the Parties to
amend specifically identified terms and conditions of this Agreement.
SECTION 16. INTEGRATION
This Agreement, together will the exhibits, instruments and other documents required to
be executed and delivered in connection hereto represents the entire agreement of the parties
with respect to the subject matter hereof, and all agreements entered into prior hereto with
respect to the subject matter hereof are revoked and superseded by this Agreement, and no
representations, warranties, inducements or oral agreements have been made by any of the
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
parties except as expressly set forth herein, or in other contemporaneous written agreements.
This Agreement may not be changed, modified or rescinded except in writing, signed by all
parties hereto, and any attempt at oral modification of this Agreement shall be void and of no
effect.
SECTION 17. APPLICABLE LAW AND LITIGATION
This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Arizona. Any and all litigation between the Parties arising from this Agreement shall be
litigated solely in the appropriate state court located in Maricopa County, Arizona.
SECTION 18. NON-WAIVER
No covenant or condition of this Agreement may be waived by any Party, unless done so
in writing. Forbearance or indulgence by any Party in any regard whatsoever shall not constitute
a waiver of the covenants or conditions to be performed by the other.
SECTION 19. SEVERABILITY
Any provision of this Agreement that is prohibited or unenforceable under the laws of the
State of Arizona shall be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.
SECTION 20. BENEFIT AND BINDING EFFECT
The terms and provisions of this Agreement shall inure to the benefit of and are binding
on RPTA and Member and their respective successors and permitted assigns.
SECTION 21. SURVIVAL
The indemnifications and limitations on liability provided in this Agreement shall have
full force and effect notwithstanding any other provisions of this Agreement and shall survive
any termination or expiration thereof.
SECTION 22. FURTHER ASSURANCES
The Parties hereto shall execute such other documents and take such other actions as may
be reasonably necessary or proper to achieve the intent and purposes hereof.
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SECTION 23. CONFLICTS OF INTEREST
All Parties hereto acknowledge that this Agreement is subject to cancellation pursuant to
the provisions of Section 38-511, Arizona Revised Statutes.
SECTION 24. Intentionally deleted.
SECTION 25. CONSTRUCTION AND INTERPRETATION OF AGREEMENT
This Agreement, and each of its provisions, exhibits, terms and conditions, has been
reached through negotiations between the Parties. Accordingly, each of the Parties expressly
acknowledges and agrees that this Agreement shall not be deemed to have been authored,
prepared or drafted by any particular Party, and that the rule of construction that resolves
ambiguities against the drafting party shall not be employed in the interpretation of this
Agreement.
SECTION 26. THIRD-PARTY BENEFICIARIES
This Agreement is intended to benefit the corporate and municipal interests of RPTA and
Member alone, and no other person shall claim any implied right, benefit or interest in such
services. The Parties do not intend to create rights in or remedies to any third party as a
beneficiary of this Agreement or of any duty, covenant, obligation or undertaking established
under this Agreement.
SECTION 27. POLICE POWER
The Parties acknowledge the right vested in Member pursuant to general law to exercise
its police power for the protection of the health, safety and welfare of its constituents and their
properties. Nothing in this Agreement shall be construed as precluding Member from exercising
such powers in connection with the subject matter hereof.
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SECTION 28.
A. COMPLIANCE WITH THE IMMIGRATION REFORM AND CONTROL
ACT of 1986 (IRCA) and with A.R.S. § 23-211 – § 23-214.
RPTA understands and acknowledges the applicability of IRCA and of § 23-211 through
§ 23-214, Arizona Revised Statutes (A.R.S.), to it. RPTA shall comply with IRCA and with
A.R.S. § 23-211 through § 23-214 in performing under this Agreement. To ensure that RPTA
and its subcontractors complying with the provisions of this Section, Member shall have the right
to inspect the personnel and related records and papers of RPTA and of its subcontractors
pertaining to individuals performing work under this Agreement.
Further, Member is prohibited by A.R.S. § 41-4401 from awarding an Agreement to any
contractor who fails, or whose subcontractors fail, to comply with A.R.S. § 23-214(A). For this
reason, RPTA shall ensure that both it and each of its subcontractors are in compliance with the
requirements of A.R.S. § 23-214(A). In addition, both RPTA and each of RPTA’s
subcontractors shall warrant their compliance with all federal immigration laws and regulations
that relate to their employees and their compliance with A.R.S. § 23-214(A).
A breach of any of the provisions of this Section shall be deemed a material breach of
this Agreement and is subject to penalties up to and including termination of the Agreement.
SECTION 29. COMPLIANCE WITH THE E-VERIFY PROGRAM
29.1 Warrant of Compliance - Under the provisions of A.R.S. §41-4401, both Parties
warrant to the other that each Party will comply with all Federal Immigration laws and
regulations that relate to their employees and that each now complies with the E-Verify Program
under A.R.S. §23-214(A).
29.2 Breach of Warranty - A breach of this warranty will be considered a material
breach of this Agreement and may subject the breaching party to penalties up to and including
termination of this Agreement.
29.3 Right to Inspect - Both Parties retain the legal right to inspect the papers of any
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
employee who works on this Contract or subcontract to ensure compliance with the warranty
given above.
29.4 Random Verification - Either Party may conduct a random verification of the
employment records of the other to ensure compliance with this warranty.
29.5 Federal Employment Verification Provisions – No Material Breach. A Party will
not be considered in material breach of this Agreement if it establishes that it has complied with
the employment verification provisions prescribed by 8 USCA §1324(a) and (b) of the Federal
Immigration and Nationality Act and the E-Verify requirements prescribed by A.R.S. §23-
214(A).
29.6 Inclusion of Article in Other Contracts - The provisions of this Article must be
included in any contract either Party enters into with any and all of its contractors or
subcontractors who provide services under this Agreement.
SECTION 30. CIVIL RIGHTS
The parties agree that as a condition of this Agreement they will each comply with all
applicable civil rights laws and regulations, in accordance with applicable Federal directives,
except to the extent that the Federal government determines otherwise in writing. These include,
but are not limited to, those provisions of Section 12 of that certain United States of America
Department of Transportation Federal Transit Administration Master Agreement, dated October
1, 2009, as may be amended from time to time, which provisions are hereby incorporated by
reference.
SECTION 31. SUBJECT TO APPROPRIATIONS
The Town is obligated only to pay its obligations set forth in the Agreement as may
lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then
current fiscal year. The Town’s obligations under this Agreement are current expenses subject to
the “budget law” and the unfettered legislative discretion of the Town concerning budgeted
purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the
then-current fiscal year term for which such funds were appropriated and budgeted for such
purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The
parties agree that the Town has no obligation or duty of good faith to budget or appropriate the
payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year
other than the fiscal year in which the Agreement is executed and delivered. The Town shall be
the sole judge and authority in determining the availability of funds for its obligations under this
Agreement. The Town shall keep RPTA informed as to the availability of funds for this
Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not
a general obligation or indebtedness of the Town. RPTA hereby waives any and all rights to
bring any claim against the Town from or relating in any way to the Town's termination of this
Agreement pursuant to this section.
SECTION 32. INCORPORATION OF EXHIBITS
For each year during the term of this Agreement and in coordination with RPTA’s
adopted fiscal year budget process, Schedules hereto shall be revised and incorporated into this
Agreement and made a part hereof as though fully set forth herein.
Schedule “A” Intentionally left blank
Schedule “B” Intentionally left blank
Schedule “C” Intentionally left blank
Schedule “D” Ride Choice
Schedule “E” Americans with Disabilities Act (ADA) Public Transportation Fund (PTF)
Schedule “F” Intentionally left blank
Schedule “G” Intentionally left blank
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date
first set forth above.
REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA)
By: ______________________________
Stephen R. Banta, Chief Executive Officer
APPROVED AS TO FORM:
By: _______________________________
Michael J. Ladino, General Counsel
TOWN OF FOUNTAIN HILLS (MEMBER)
By: __________________________________
Linda M. Kavanagh, Mayor,
By:
Bevelyn J. Bender, Town Clerk
APPROVED AS TO FORM:
By:
Andrew J. McGuire, Town Attorney
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
SCHEDULE “A” INTENTIONALLY LEFT BLANK
SCHEDULE “B” INTENTIONALLY LEFT BLANK
SCHEDULE “C” INTENTIONALLY LEFT BLANK
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
SCHEDULE “D” – RIDE CHOICE
The Town of Fountain Hills agrees to participate and financially support the RideChoice
Transportation Services program for Fiscal Year 2014-2015. The Town of Fountain Hills shall
fund this project in the amount of $28,930.00 for the period July 1, 2014 to June 30, 2015. The
Town of Fountain Hills will pay the RPTA for the project in twelve (12) monthly installments of
$2,410.83. Payment of invoices shall become due within thirty (30) calendar days after the
receipt of an invoice from RPTA.
Regional Public Transportation Authority
RideChoice Program
Town of Fountain Hills
Fiscal Year 2014 - 2015
Funding:
PTF ADA Funds $36,400
Coupon Revenue 13,440
City Contributions 28,930
Total Funding $78,770
Expenditures:
Payments to Taxi Cab Companies $57,670
Dialysis Voucher Program 0
Program Cost $57,670
Agency Staff, Overhead, Program Mgmt. 16,100
One Time Setup Fee 5,000
Total Expenditures $78,770
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SCHEDULE “D” – RIDE CHOICE Cont.
RIDECHOICE PROGRAM
RideChoice is the name of the program that includes the RideChoice Medical Trip Card
and the RideChoice Fare Card. RPTA shall provide the services required to administer, market
and manage the Ride Choice program. The participating City will pay for costs of these
Alternative Transportation Services Programs.
RIDECHOICE MEDICAL TRIP CARD – Intentional deleted.
RIDECHOICE FARE CARD
The RideChoice Fare Card program is available to seniors and individuals with
disabilities who reside in the cities of Mesa, Chandler and Tempe and the Town of Fountain
Hills. Any value up to a maximum of $100 per month may be purchased/added to a customer’s
card.
How it Works
• Individuals must complete a RideChoice application which is intended to gather
information needed to verify the individual’s eligibility for RideChoice.
• Upon receipt of a completed application, Valley Metro staff will review the application
and make a determination of eligibility.
• Once an individual is deemed eligible, Valley Metro will forward the individual’s name,
address and other required information to the RideChoice contractor. The RideChoice
contractor will create an electronic account for the new RideChoice customer.
• An eligible RideChoice customer will receive a letter indicating eligibility and a
RideChoice Fare Card. Once notified of his/her eligibility, the RideChoice customer will
be able to pay up to $25 per month to his/her account. Payments may be made via the
Internet or by mail.
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
• Upon receipt of a payment, the RideChoice contractor will add four times the value of the
customer’s payment to the customer’s RideChoice account. This value will be available
to the rider via his/her RideChoice Fare Card. Riders can make payments in any
increment up to a total of $25 per month, and riders can carry unused RideChoice account
values forward from one month to the next. At no time can a rider’s RideChoice account
accumulate more than $300.
• Once the RideChoice Customer’s account is established and funds are deposited, the
customer can use any of approximately eight taxicab and transportation providers
enrolled as RideChoice providers. These companies are under subcontracts to our
RideChoice contractor. When taking a trip on RideChoice, the customer calls the
company of choice, indicates that he/she is a RideChoice customer, and schedules his/her
trip in the same manner that any other taxicab customer does so.
• At the time of the trip, the customer swipes his/her RideChoice card upon entering the
vehicle and upon exiting the vehicle. This creates a record of the beginning and ending
points of the trip, along with the date and the identity of the rider. Upon the conclusion of
the trip, the value of the trip is automatically deducted from the rider’s RideChoice
account.
• Approximately three weeks after the end of each month, the RideChoice contractor
provides Valley Metro with an electronic file, showing all RideChoice trips taken. Data
includes the date, time, pick-up and drop-off locations, the rider’s name, the mileage and
the cost of the trip. Valley Metro uses this information to allocate RideChoice costs
among the participating cities. Valley Metro provides each participating city with a
detailed report showing its share of the RideChoice service.
• Because funds may be limited, Valley metro can cap enrollment and/or adjust the subsidy
for a given city or town.
Valley Metro and the Town will establish a cap based on available funding. This cap may be
adjusted by Valley Metro at the direction of Fountain Hills, based on available funds or changes
in the amount of service to be provided to each eligible participant. Initially, this cap is set at 40
participants. Once the cap is reached, no new participants will be enrolled. Instead, qualified
residents will be placed on a waiting list. If and when participants drop off the service and/or in
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
the event that Fountain Hills raises the cap, Valley Metro will enroll qualified residents on a first
come, first served basis until the cap is again reached. This procedure may be amended by the
mutual consent of the parties.
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
SCHEDULE “E” – AMERICANS WITH DISABILITIES ACT (ACT) – PUBLIC
TRANSPORTATION FUNDS (PTF) AVAILABILITY
For the period July 1, 2014 to June 30, 2015 the maximum amount of Public
Transportation Funds (PTF) available for the Town of Fountain Hills’s is $36,400.00. The PTF
will pay actual costs for ADA trips and other requests for Paratransit service made by ADA
certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be
performed and adjustments, if necessary, will be made using actual ADA eligible costs.
Any remaining ADA PTF funds not credited up to the maximum may be requested by
Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial
officer or designee. RPTA will reimburse Town within thirty (30) business days based upon
availability of funds. Town may request that reimbursements be made electronically. Wire
transfers must be pre-arranged through the RPTA Finance Department.
Maximum amount: $36,400.00
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SCHEDULE “F” INTENTIONALLY LEFT BLANK
SCHEDULE “G” INTENTIONALLY LEFT BLANK
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FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15
ATTACHMENT “A” – PTF EXPENSE REIMBURSMENT REQUEST
Page 1 of 2
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date: 6/19/2014
Meeting Type: Regular Session
Agenda Type: Regular
Submitting Department: Administration
Staff Contact Information: Ken Buchanan
Strategic Values:
Maintain/Improve Community Infrastructure
Council Goal:
Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language): Consideration of a one year extension to the T-Mobile ground lease for
cellular services located at 17230 East Shea Boulevard.
Applicant: Ken Buchanan, Town Manager
Applicant Contact Information:
Property Location:
Related Ordinance, Policy or Guiding Principle: n/a
Staff Summary (background): The current cellular tower located at 17230 E. Shea Boulevard was supposed
to be a "stealth" cell tower as a Flagpole. The flag was to be proportionate to the pole, which unfortuately
conflicted with the SRP 69kV electric line and was rendered un-usable. There have many attempts to continue
the use of the T-Mobile Cell Tower guised as something else but has been unsuccessful. The current lease
has expired as of June 10th 2014. A one year extension is under consideration to determine if the pole could
be moved to accommodate the flag or find another location for the cell tower.
Risk Analysis (options or alternatives with implications): n/a
Fiscal Impact (initial and ongoing costs; budget status): $999.00 per month with one time payment of $702.00
for the full execution of the one year lease totalling $12,690 for the 12 month period.
Budget Reference (page number): n/a
Funding Source: NA
If Multiple Funds utilized, list here: n/a
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendation(s) by Board(s) or Commission(s): n/a
Staff Recommendation(s): Approve the one year extension to the lease for a T-Mobile Cell Tower.
List Attachment(s): Professional Services Agreement
SUGGESTED MOTION (for Council use): Move to approve the one year extension of the T-Mobile West Tower
located at 17230 Shea Boulevard.
Prepared by:
fiA"6/19/2014
Director's Approval:
flA "6/19/2014
proved:f "\
n Buchanan,Town Manager
Oa/V.
Ken Buchanan,Town Manage?*-6/19/2014
Page 2 of2
2172919.5
Site Name: Town of Fountain Hills
Business Unit #: 828549
FIRST AMENDMENT
TO
OPTION AND SITE LEASE AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
T-MOBILE WEST TOWER LLC
THIS FIRST AMENDMENT TO OPTION AND SITE LEASE AGREEMENT (this
“First Amendment”) is effective as of June 10, 2014, by and between the Town of Fountain
Hills, an Arizona municipal corporation (the “Town” or “Lessor”), and T-Mobile West Tower
LLC, a Delaware limited liability company, by and through CCTMO LLC, a Delaware limited
liability company, its attorney in fact (“Lessee”). Unless otherwise defined herein, all capitalized
terms in this First Amendment shall have the meanings set forth in the Agreement (defined
below).
RECITALS
A. The Town and Western PCS III Corporation (“Original Lessee”) entered into an
Option and Site Lease Agreement dated December 4, 1998 (the “Agreement”), whereby Lessor
leased to Original Lessee certain real property, together with access and utility easements (the
“Premises”), all located within certain real property owned by Lessor at or about 17230 East
Shea Boulevard, Fountain Hills, Arizona (the “Property”), for the purpose of occupying,
installing, operating and maintaining a Communications Facility.
B. The Agreement contained an option for Original Lessee to lease the Property
within the first 18 months of the Date of the Agreement, which could be extended an additional
six months upon written notification and the payment of a fee. The Lease Term would be five
years, with two five-year Renewal Terms.
C. On or about April 23, 2009, T-Mobile West Corporation, as successor-in-interest
to VoiceStream PCS III Corporation, successor-in-interest to Original Lessee, gave Lessor notice
of its intent to renew the Agreement for the final five-year Term, commencing on June 10, 2009.
D. On or about November 30, 2012, CCTMO LLC acquired exclusive rights to
manage and operate Lessee’s Communications Facility on the Premises on behalf of Lessee.
The Town issued its written consent on January 31, 2013.
E. Lessor and Lessee desire to enter into this First Amendment to (i) extend the term
of the Agreement and (ii) increase the monthly rent paid by Lessee to Lessor under the
Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals, which are hereby
incorporated by reference, the promises and covenants set forth herein, and other good and
2172919.5
Site Name: Town of Fountain Hills
Business Unit #: 828549
2
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor
and Lessee hereby agree as follows:
1. Term. The term of the Agreement is hereby extended until June 9, 2015.
2. Increased Rent. Commencing with the payment due July 1, 2014, Lessee shall
pay Lessor Rent in the amount of Nine Hundred Ninety-Nine and No/100 Dollars ($999.00) per
month in consideration for Lessee’s use of the Property.
3. Consideration. Lessee will pay to Lessor a one-time amount of Seven Hundred
Two and No/100 Dollars ($702.00) for the full execution of this First Amendment, within sixty
(60) days of the full execution of this First Amendment (the “Conditional Signing Bonus”). In
the event that this First Amendment (and any applicable memorandum) is not fully executed by
both Lessor and Lessee for any reason, Lessee shall have no obligation to pay the Conditional
Signing Bonus to Lessor.
4. Notices. All notices, requests, demands and other communications under the
Agreement or this First Amendment shall be delivered to Lessee at the following address:
CCTMO LLC
c/o Crown Castle USA Inc.
E. Blake Hawk, General Counsel
Attn: Legal Department
2000 Corporate Drive
Canonsburg, PA 15317
5. Non-Default. By executing this First Amendment, Lessor and Lessee
affirmatively assert that that (i) Lessor and Lessee are not currently in default, nor have been in
default at any time prior to this First 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 First Amendment are forever waived.
6. Ratification. Lessor and Lessee agree that Lessee is the current Lessee under the
Agreement, the Agreement is in full force and effect, as amended herein, and the Agreement
contains the entire agreement between Lessor and Lessee with respect to the Premises.
7. Conflict of Interest. This First Amendment may be canceled pursuant to ARIZ.
REV. STAT. § 38-511.
8. IRS Form W-9. Lessor agrees to provide Lessee with a completed IRS Form
W-9, or its equivalent, upon execution of this First Amendment and at such other times as may
be reasonably requested by Lessee. In the event the Property is transferred, the succeeding
Lessor shall have a duty at the time of such transfer to provide Lessee with a completed IRS
Form W-9, or its equivalent, and other related paper work to effect a transfer in the rent to the
new Lessor.
2172919.5
Site Name: Town of Fountain Hills
Business Unit #: 828549
3
9. 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. In the event of any conflict or inconsistency between the terms of
this First Amendment and the Agreement, the terms of this First Amendment shall control. This
First Amendment may be executed simultaneously or in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same agreement.
IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the date
and year first set forth above.
“Lessor”
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]
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Development Services
Staff Contact Information:Paul Mood,Dev.Services Director,480-816-5129
Strategic Values:Council Goal:
Maintain/Improve Community Infrastructure Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of Amendment No.I in the amount of $62,997.00 to
CONTRACT C2014-143 with Low Mountain Construction,Inc. for the Avenue Median Improvements project.
Applicant:NA
Applicant Contact Information:NA
Property Location:Avenue of th Fountains from Saguaro Blvd.to La Montana Dr.
Related Ordinance,Policy or Guiding Principle:NA
Staff Summary (background):On April 3,2014 Town Council approved a construction contract in the amount
of $1,468,334.45 with Low Mountain Construction for the Avenue Median Improvements project.The bid
documents included SRP plans to bring 400 amp,3 phase electrical power to the east median by upgrading an
existing 150KV transformer on the north side of the Avenue of the Fountains near the Chase Bank to a 500KV
transformer.The contractor was to provide trench,conduit,slurry backfill,pavement restoration,etc. from the
new transformer to the east median service entrance section.After a preconstruction meeting with SRP,Town
staff and the contractor it was determined that the 150KV transformer could not be upgraded to a 500KV
transformer due to SRP system limitations.
SRP provided a redesign for electrical power from an existing 600KV transformer located at the northwest
corner of Paul Nordin Parkway and Verde River Drive to a new transformer that will be set at the southeast
corner of Avenue of the Fountains and Verde River Drive.The SRP redesign resulted in more than doubling
the length oftrench, conduit, slurry backfill,etc. along Verde River Drive to avoid existing utilities.Verde River
Drive is also known for its rocky soil conditions and the contractor has anticipated "hard dig"conditions intheir
quote of $62,977.00.The revised construction contract total is $1,531,311.45.The contractor has not
requested any additional time for the SRP redesign and additional work.
Risk Analysis (options or alternatives with implications):Approval ofthe change order will allow for adequate
power to be supplied to the Avenue of the Fountains Median.
Fiscal Impact (initial and ongoing costs;budget status):$62,977.00
Budget Reference (page number):314
Funding Source:NA
If Multiple Funds utilized,list here:Downtown Excise Tax
Page 1 of 2
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):NA
Staff Recommendation(s):Staff recommends approval of Amendment No. 1 to Contract C2014-143
List Attachment(s):
SUGGESTED MOTION (for Council use):
Prepared by:
6/16/2014
6/16/2014
^R/-1Ken'Brfchanan,Town Manager^6/16/2014
Page 2 of2
FIRST AMENDMENT
TO
CONTRACT NO.C2014-143
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
LOW MOUNTAIN CONSTRUCTION,INC.
THIS FIRST AMENDMENT TO CONTRACT NO. C2014-143 (this "First Amendment")
is entered into as of June 16, 2014, between the Town of Fountain Hills, an Arizona municipal
corporation (the "Town"),and Low Mountain Construction,Inc.,an Arizona corporation (the
"Contractor").
RECITALS
A. The Town issued Invitation for Bids DS2014-106 (the "IFB")seeking bids from
contractors to perform median improvements on Avenue of the Fountains (the "Services").The
Contractor responded to the IFB,and the Town and Contractor entered into Contract No.C2014-
143 dated April 3,2014,forthe provision of the Services (the "Contract"),a true and correct copy
of whichison file inthe Town Clerk's Office. All of the capitalizedterms not otherwise defined in
this FirstAmendmenthave the same respectivemeaningsas contained inthe Contract.
B. The Town has determined that additional Services by the Contractor are necessary
dueto SRP's redesign of the powersource(the "Additional Services").
C. The Town and the Contractor desire to enter into this First Amendment to provide
foran increase inthe Contract ajriqynt to compensate the Contractor forthe Additional Services.
AGREEMENT
NOW,THEREFORE,in consideration of the foregoing recitals,which arejncorporated
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
Contractor hereby agree as follows:
1.Scope of Work.Contractor shall provide the Additional Services as set forth in the
Fee Proposal,attached hereto as Exhibit 1 and incorporated herein by reference.
2. Compensation. The Town shall increase the compensation to Contractor by
$62,977.00 for the Additional Services at the rates set forth in the Fee Proposal,attached hereto as
Exhibit K resulting in an increase of the total compensation,from $1,468,334.45 to an aggregate
amount not to exceed $1,531,311.45.
3.Effect of Amendment.Inallother respects,the Contract is affirmed and ratified and,
except as expressly modified herein,all terms and conditions of the Contract shall remain in full
force and effect.
2183770.1
4.Non-Default.By executing this First Amendment,the Contractor affirmatively
asserts that (i) theTown is not currently in default,nor has been in default at any timepriorto this
First Amendment,under any of the terms or conditions of the Contract and (ii) any and all claims,
known and unknown,relating to the Contract and existing on or before the date of this First
Amendment are forever waived.
5. Conflict of Interest. This First Amendment and the Contract may be canceled by the
Town pursuant to Ariz.Rev.Stat.§38-511.
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 behalfof the Town of
Fountain Hills.
(Affix notary seal here)
2183770.1
Notary Public
"Contractor"
LOW MOUNTAIN CONSTRUCTION,INC.,
an Arizona corporation
By:
Name:
Title:
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
)ss.
COUNTY OF MARICOPA )
On , 2014, before me personally appeared
, the of LOW MOUNTAINCONSTRUCTION,
INC.,an Arizona corporation,whoseidentitywas provento meon the basis of satisfactoryevidence
to be the person who he/she claims to be, and acknowledged that he/she signed the above document
on behalf of the corporation.
Notary Public
(Affix notary seal here)
2183770.1
2183770.1
EXHIBIT 1
TO
FIRST AMENDMENT
TO
CONTRACT NO.C2014-143
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
LOW MOUNTAIN CONSTRUCTION,INC.
[Fee Proposal]
See following pages.
JL LOW MOUNTAIN
CONSTRUCTION,INC.
June 13,2014
Mr.Wade Felkins
LANDMARK DESIGN
2318 South McClintock Drive
Suite 3
Tempe,Arizona 85282
RE:Avenue Of The Fountains Project
Fountain Hills,Arizona
Dear Wade,
Please accept the following price proposal for the work entailed on the SRP Drawings dated May
29,2014.Our pricing is as follows:
Continental Lighting (electrical)$44,005.00
Pro-Low JV (haul off &paving)13,698.00
Insurance &Bond (3%)1,731.00
Fee (10%)5,943.00
Tax (5.785%)3,782.00
Note:
Subtotal $69,159.00
Included In Bid (line item #4)<6,182.00>
Total Change Order Amount $62,977.00
We have planned fora hard dig inour numbers and priced out a Backhoe with a
hammer on it. Ifwe runinto hard dig that it takes a bigger piece of equipment we
will have to negotiate a different price for that work.
Please review this price proposal and let us know how you would like us to proceed.Please
contact me ifyou have any questions or concerns.
Sincerely,
LOW MOUNTAIN CONSTRUCTION,INC.
Wayne Hatch
Vice President
LOW MOUNTAIN CONSTRUCTION,INC.#4105 NORTH 20TH STREET,SUITE 205 i>PHOENIX,ARIZONA 85016
(602) 265-2201 <>FAX (602) 265-7883 #WWW.LOWMOUNTAIN.COM
CHANGE ORDER #01
SUBMITTED TO:Low Mountain Construction,Inc.
ADDRESS:4105 N.20th Street,Ste.205
CITY:Phoenix STATE:AZ ZIP CODE:85016
PROJECT NAME:Avenue of the Fountains Median Improvements
JOB NO.:DATE:June 6.2014
Description Otv./Hrs.
Complete installation of SRP,as per
Work Order 3T2012218,Sheets 1
through 4,dated May 29,2014.
Materials:
Conduit (Misc.)IL.S.
Concrete,Slurry 270 Yds
Pad,etc.IL.S.
Sawcutting IL.S.
Misc.,Muletape,etc.*1 L.S.
Subtotal -
Add Overhead /Margin (15%)-
Total for Materials -
Labor:
Foreman 36Hrs.
Operator 36Hrs.
Laborers 72Hrs.
Subtotal -
Labor Burden (50%)-
Total for Labor -
Equipment:
Service Truck 72Hrs.
Dump Truck 36Hrs.
Backhoe w/Hammer 36Hrs.
Unit Price
$2,005.00
$65.00
$675.00
$1,580.00
$1,115.00
$55.96
$52.52
$38.14
$25.77
$40.19
$79.50
Total
$2,005.00
$17,550.00
$675.00
$1,580.00
$1.115.00
$22,925.00
$3,438.75
$26^63.75
$2,014.56
$1,890.72
$2.746.08
$6,65136
$3325.68
$9,977.04
$1,855.44
$ 1,446.84
$2,862.00
512 East Chicago Circle, Chandler, AZ 85225 • (480) 966-4628 »FAX(480) 966-4689
Arizona Contractors License Nos.-ROC140469,ROC139488
Barricading
Total for Equipment
SUBTOTAL
Approved By:
1L.S.$1,500.00
Date:
$1.500.00
$7.664.28
$44,005.07
-512 East ChicagoCircle, Chandler,AZ 85225• (480) 966-4628• FAX(480)966-4689
Arizona Contractors License Nos.-ROC140469,ROC139488
PRO i>LOW
JOIN
PRO ENTERPRISES SRPMIC,LLC
LOW MOUNTAIN CONSTRUCTION,INC.
CHANGE ORDER REQUEST
PROJECT:Ave of the Fountains
Low Mountain Construction
4105 N 20th Street Suite 205
Phoenix,AZ 85016
CHANGE ORDER NO:One (1 )
DATE:June 13,2014
PRO-LOW JOB NO:14090
PRO-LOW CONTRACT NO:
Area:SRP Trench on Verde River Drive
Description:Patch Back328 SYofTrench &HaulOffAsphalt ( Excludes RemovalOfAsphalt &Milling ofAsphalt)
ITEM DESCRIPTION
16 Hours Skiploader &Operator @ $65.00 Per Hour
Mobilization of Skiploader
16 Hours Laborer @ $18.00 Per Hour
5 Hours Trucking @ $85.00 Per Hour
Asphalt Dump Fees 4 Loads @ 80.00 Per Load
10 Hours Patch Crew @ $550.00 Per Hour
60 Tons of Asphalt @ $70.00 Tons Per Hour
8 Hours Supervision @ $60.00 Per Hour
10%0&P
PleaseSign And Return One Copy To PRO-LOW Qffice||
Low Mountain Construction
Accepted 20
By
Original Contract Amount:
Net of Previous Changes:
Previous Contract Amount:
Net Changes by this CO.:
Adjusted Contract Amount:
PRO-LOW JOINT VENTURE
By
COST
1,040.00
200.00
288.00
425.00
320.00
5,500.00
4,200.00
480.00
1,245.30
13,698.30
13,698.30
PRO-LOW JOINT VENTURE 4105 NORTH 20TH STREET,SUITE 205
(602)265-2201 *FAX(602)265-7883
PHOENIX,ARIZONA 85016
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Development Services
Staff Contact Information:Paul Mood,Dev.Services Director,480-816-5129
Council Goal:
Strategic Values:Not Applicable (NA)Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):Discussion with possible direction to staff regarding possible changes to
the Avenue of the Fountains Median Project tree selection,Public Address System, Wi-Fi System and Roundabout at the
intersection of La Montana and Avenue of the Fountains.
Applicant:NA
Applicant Contact Information:NA
Property Location:NA
Related Ordinance,Policy or Guiding Principle:NA
Staff Summary (background):Staff has been asked to provide information regarding the tree selection for the
Avenue Median project as well as the potential addition of a public address system and wireless internet.
1.Trees Selection:
The Avenue Median project was designed around the approved Downtown Vision Plan and Downtown Area
Specific Plan which calls for a "green mall",walkways,connectivity,shade,updated water features,amenities
(art walk), etc. The Avenue Median concept plan was presented to Council on January 17,2013. This
included overall hardscape and landscape plans with tree species,photos,etc.The trees at that time included
the Sissoo,Mondel (Afghan) Pine,Chitalpa,Swan Hill Olive, Rio Grande Ash and Red Gum Eucalyptus.
During the first phase of design the Rio Grande Ash was removed since it does not appear on the low water
use list. The Eucalyptus was also removed due to issues with roots and shedding of bark and branches.The
Evergreen Elmwas added to the tree pallet. The new trees will be a combination of 36" box trees and 48" box
trees.
The main issue with the existing Avenue Median is that when it was developed the only irrigation to the trees
was from surface irrigation.Over the years the shallow root systems that developed have severely damaged
the fountains,irrigation and electrical systems.Many of the original trees have either blown over or have been
removed for safety or tree health reasons.The current median design includes proper deep root irrigation to
existingand new trees. There will also be a bio-rootbarrierfabric placed around hardscape inthe area ofany
trees to reduce the risk of root intrusion.
Native trees such as Palo Verde, Mesquite, Acacia,Ironwood,Desert Willow and Xeroscape do not conform to
the DowntownVision Plan of a "green mall".The Landscape Architect selected trees for the Median Project
Page 1 of 3
which are designed to provide shade and color while conforming to Low Water Use Landscaping per
Subdivision Ordinance Section 6.09,the Arizona Department of Water Resources Low Water Plant Use List
and keeping with the Town's strategic goal (ES4)to promote water conservation.
The Jacaranda was adopted as the Town tree by Council on 3/20/97.A botanist had suggested the Ironwood
tree per the meeting minutes.On 5/15/97 the Town council added the Jacaranda tree to the Town's approved
planting list.The Jacaranda tree is native to tropical and sub-tropical countries and is not on the ADWR low
water plant use list so it was not considered.
2.Public Address System:
The scope and budget for the Avenue Median Project does not include a PA System.Any events on the
median that require a PA System currently rent a portable system from a third party.The Public Address
system was discussed at an early design review meeting on 1/23/13 and per the meeting minute notes the "PA
system was not to be included in the scope of work.Median user groups can provide a portable PA system if
desired."
Ifa PA System is desired itwould require a specialty consultant to design and construct.It is unknown if the
system would be a portable system or a permanent system and what power requirements are needed.It is
assumed that the Community Services Department would rent the PA System and equipment for events.Ifit
is a permanent system to be included in the median it will pose challenges as the trenching and conduit on the
median is complete on the west end and nearing completion on the east end of the Avenue Median project.
Mounting locations for PA System speakers will also pose a challenge.
3.Wireless Internet:
The Scope and budget for the Avenue median Project does not include wireless internet.Staff met internally
to discuss the possibility of wireless internet along the Avenue of the Fountains but it never went anywhere.If
wireless internet is desired it will require a specialty contractor to work with the Town's IT staff to determine
equipment compatibility,power requirements and ongoing maintenance and provider costs.Any equipment
necessary to be installed inthe median may pose challenges as wellto provide necessarry power and
equipment mounting locations.
4.Roundabout:In June of 2007 Wick Engineers,Inc.completed a roundabout feasibility study for the
intersection of La Montana and Avenue of the Fountains.This report was presented at the August 14,2007
Councilwork study. The 2007 study estimated the project cost at $1,535,000.Some key design issues will
be:
a. Maintaining drainage flow along the Avenue of the Fountains
b.Maintaining drainage flow from the Post Officewhich flows onto La Montana south ofthe intersection
c.Street light requirements at roundabout
d. Additional sidewalks (approx.2,000 linear feet) to the north and west of the intersection
e.Relocation of Post Office drop off further south on La Montana
f.Median construction on La Montana north and south of intersection
g. Loss of parking on Avenue of the Fountains (north and south sides)
h.Reduced median width on Ave.of the Fountains and removal of Avenue Median project improvements
The Town currently does not have any improvements or funding programmed in its 10 year Capital
Improvement Planfora roundaboutat this intersection.Overthe last 24 monthsthere have been three vehicle
collisions and one single car accident at La Montana and Avenue of the Fountains.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs;budget status):
Page 2 of3
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):
List Attachment(s):Tree Selection Presentation &2007 Roundabout Feasibility Study
SUGGESTED MOTION (for Council use):
Prepared by:
6/9/2014
•Paul Motfd,Development Services Director 6/9/2014
Approved:
*L
Ken Buchanan,Town Manager 6/10/2014
>proyed:.\
Page 3 of 3
for the
Town of
Fountain
Hills
AVENUE OF THE
FOUNTAINS
MEDIAN
IMPROVEMENTS
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
On January 17, 2013 Council was presented with the Avenue
Median concept plan by Landmark Design which included the
following:
Hardscape Plans
Fountain & Plaza Concepts
Art Nodes & Picnic Areas
Shade Canopies & Site Furnishings
Landscape Plans & Tree Species
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
The original hardscape and landscape plans were modeled
around the Downtown Vision Plan and Downtown Area Specific
Plan to provide a “green mall”, shade, amenities (art walk),
upgraded fountains and to fit within the project budget.
The original landscape concept consisted of 62 trees:
19 Sissoo
11 Mondel (Afghan) Pine
4 Chitalpa
9 Swan Hill Olive
3 Eucalyptus
16 Rio Grande Ash
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
During the design phase of the project staff directed the architect to
remove the Eucalyptus trees due to “shedding” and safety concerns
with falling branches over time.
The Rio Grand Ash was also removed since it is not the Town’s
approved planting list. The Architect was directed to use low water use
plants on the Town approved plant list and ADWR low water use plant
list.
The median design includes proper deep root irrigation to existing and
new trees. There will also be a bio -root barrier fabric placed around
hardscape in the area of any trees to prevent root intrusion.
The final landscape plan consists of 61 trees:
22 Sissoo
16 Mondel (Afghan) Pine
4 Chitalpa
8 Swan Hill Olive
11 Evergreen Elm
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
Swan Hill Olive Mondel Pine
Chitalpa
Sissoo
Evergreen Elm
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
The Jacaranda Tree was approved in 1997 as
the Town tree.
The Jacaranda is native to tropical and
subtropical regions of Central America, South
America, Cuba and the Bahamas. It will grow
in the Southwestern United States if provided
with enough water.
The Jacaranda is not on the ADWR low water
use plant list and was not considered for the
Avenue Median Project.
Cactus Wren Court, Fountain Hills
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
Native Arizona trees which occur below an elevation of
4,500' such as Palo Verde, Mesquite, Acacia, Ironwood,
Desert Willow and Xeroscape do not conform to the
Downtown Vision Plan of a "green mall“ and were not
considered for the project.
A typical desert landscaped
median can be seen on the
Avenue of the Fountains across
from the Post Office.
AVENUE OF THE FOUNTAINS
MEDIAN IMPROVEMENTS
QUESTIONS?
LA MONTANA AND
AVENUE OF THE
FOUNTAINS
ROUNDABOUT FEASIBILITY STUDY
Prepared for the Town of Fountain Hills
June 27, 2007
D. WICK ENGINEERS, INC
Engineers Inc.
| EXPIRES 02/13/08 \
LA MONTANA AND
AVENUE OF THE
FOUNTAINS
ROUNDABOUT FEASIBILITY STUDY
Prepared for the Town of Fountain Hills
June 27, 2007
D. WICK ENGINEERS, INC
Engineers Inc.
| EXPIRES 02/13/08
TABLE OF CONTENTS
1. Executive Summary 1
2. Introduction 2
3. General Roundabout Information 2
General: 2
Safety Aspects: J
4. Existing Conditions 4
Traffic Volumes 4
Existing Intersections 5
Crash History 5
5. Future Conditions 6
Surrounding Area Conditions 6
Trip Generation -6
Traffic Volumes 7
6. Development of Alternatives 7
Intersection Design Objectives 7
Final Roundabout Design Considerations 10
7. Traffic Analysis 13
Level of Service 13
Traffic Signal Analysis 14
Roundabout Analysis. //
8. Cost Estimates 17
9. Recommendations 17
10. Summary 19
Appendix A -Traffic Counts, and Crash Information
Appendix B -Roundabout Technical Design Data
Appendix C — Roundabout Alternatives
Appendix D -Traffic Signal Analysis Output
Appendix E — Roundabout Analysis Output
Appendix F -Itemized Cost Estimate
Town of Fountain HHk
Roundabout PessihSty Study
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 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 2014-31,declaring the 2014
Development Impact Fee Ordinance as a public record.
CONSIDERATION OF ORDINANCE 14-06,adopting the 2014 Development Impact Fee Ordinance by reference and
amending the Town Code,Article 7-10,by replacing it with the 2014 Development Impact Fee Ordinance.
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):
On April 26,2011,Senate Bill 1525 (SB1525)was signed into law by the Governor,which significantly
changed the development fee enabling legislation in A.R.S.§9-463.05.As a result,in order for the Town to
continue to assess development fees,it was required to make a number of changes to its development impact
fee program by August 1,2014.
The Town has already adopted the new development impact fee program in accordance with SB1525.The
only remaining necessary task is to amend the related provisions of the Town Code to match the new statutory
scheme.Resolution 2014-31 declares the 2014 Development Impact Fee Ordinance as a public record,and
Ordinance 14-16 both adopts it by reference and incorporates it into the Town Code as Article 7-10.
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,list here:
Budgeted;if No,attach Budget Adjustment Form:NA
2182474.1 Page 1 of 2
Recommendation(s)by Board(s)or Commission(s):
Staff Recommendation(s):
List Attachment(s):Resolution 2014-31;Ordinance 14-16
SUGGESTED MOTION (for council use):Two separate motions:(i) Move to approve Resolution 2014-31 and (ii)
Move to approve Ordinance 14-16.
Prepared by:
NA
Director's Approval:
NA
Approved:
NA
4^G>Ur^fiA^OAJ^
2182474.1 Page 2 of 2
2179994.1
RESOLUTION NO. 2014-31
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT
CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED
THE “2014 DEVELOPMENT IMPACT FEE ORDINANCE OF THE TOWN OF
FOUNTAIN HILLS.”
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. That certain document entitled the “2014 Development Impact Fee
Ordinance of the Town of Fountain Hills” of which three copies each are on file in the office of
the Town Clerk and open for public inspection during normal business hours, is hereby declared
to be a public record, and said copies are ordered to remain on file with the Town Clerk.
SECTION 2. 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.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 19, 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
2178664.3
2014 DEVELOPMENT IMPACT FEE ORDINANCE
TOWN OF FOUNTAIN HILLS
Adopted June 19, 2014
2178664.3 2
Article 7-10
DEVELOPMENT FEES
Sections:
7-10-1 Legislative intent and purpose
7-10-2 Definitions
7-10-3 Applicability
7-10-4 Authority for Development Impact Fees
7-10-5 Administration of Development Impact Fees
7-10-6 Land Use Assumptions
7-10-7 Infrastructure Improvements Plan
7-10-8 Adoption and Modification Procedures
7-10-9 Timing for the Renewal and Updating of the Infrastructure Improvements Plan and
the Land Use Assumptions
7-10-10 Collection of Development Impact Fees
7-10-11 Development Impact Fee Credits and Credit Agreements
7-10-12 Development Agreements
7-10-13 Appeals
7-10-14 Refunds of Development Impact Fees
7-10-15 Oversight of Development Impact Fee Program
7-10-1 Legislative Intent and Purpose
This Article is adopted for the purpose of promoting the health, safety and general welfare of the
residents of the Town by:
A. Requiring new development to pay its proportionate share of the costs incurred by the
Town that are associated with providing Necessary Public Services to new development.
B. Setting forth standards and procedures for creating and assessing development impact
fees consistent with the requirements of Arizona Revised Statutes (“A.R.S.”) § 9-463.05,
as amended, including requirements pursuant to A.R.S. § 9-463.05, Subsection K that, on
or before August 1, 2014, the Town replace its development impact fees that were
adopted prior to January 1, 2012, with development impact fees adopted pursuant to the
requirements of A.R.S. § 9-463.05 as amended by the state legislature in SB 1525,
Fiftieth Legislature, First Regular Session.
C. Providing for the temporary continuation of certain development impact fees adopted
prior to January 1, 2012, until otherwise replaced pursuant to this Article, or longer where
such development impact fees were Pledged to support Financing or Debt for a
Grandfathered Facility as permitted by A.R.S. § 9-463.05, Subsections K, R, and S.
D. Setting forth procedures for administering the development impact fee program,
including Offsets, Credits, and refunds of development impact fees. All development
2178664.3 3
impact fee assessments, Offsets, Credits, or refunds must be administered in accordance
with the provisions of this Article.
This Article shall not affect the Town’s zoning authority or its authority to adopt or amend its
General Plan, provided that planning and zoning activities by the Town may require amendments
to development impact fees as provided in Section 7-10-6 of this Article.
7-10-2 Definitions
When used in this Article, the terms listed below shall have the following meanings unless the
context requires otherwise. Singular terms shall include their plural.
Applicant: A person who applies to the Town for a Building Permit.
Appurtenance: Any fixed machinery or Equipment, structure or other fixture, including
integrated hardware, software or other components, associated with a Capital Facility that are
necessary or convenient to the operation, use, or maintenance of a Capital Facility, but excluding
replacement of the same after initial installation.
Aquatic Center: A facility primarily designed to host non-recreational competitive
functions generally occurring within water, including, but not limited to, water polo games,
swimming meets, and diving events. Such facility may be indoors, outdoors, or any combination
thereof, and includes all necessary supporting amenities, including but not limited to, locker
rooms, offices, snack bars, bleacher seating, and shade structures.
Building Permit: Any permit issued by the Town that authorizes vertical construction,
increases square footage, authorizes changes to land use, or provides for the addition of a
residential or non-residential point of demand to a Water or Wastewater system.
Capital Facility: An asset having a Useful Life of three or more years that is a
component of one or more Categories of Necessary Public Service provided by the Town. A
Capital Facility may include any associated purchase of real property, architectural and
engineering services leading to the design and construction of buildings and facilities,
improvements to existing facilities, improvements to or expansions of existing facilities, and
associated financing and professional services. Wherever used herein, “infrastructure” shall
have the same meaning as “Capital Facilities.”
Category of Necessary Public Service: A class of Necessary Public Services for which
the Town is authorized to assess development impact fees, as further defined in
Subsection 7-10-7(a)(1) of this Article.
Category of Development: A specific class of residential, commercial, or industrial
development against which a development impact fee is calculated and assessed. The Town
assesses development impact fees against commercial, residential, and industrial categories.
2178664.3 4
Commercial Land Use: A use allowed within the zones designated in Chapters 12, 16,
17, 18 and 21 of the Town’s Zoning Ordinance and those portions of Planned Area Districts as
determined by the Town’s Zoning Administrator.
Credit: A reduction in an assessed development impact fee resulting from Developer
contributions to, payments for, construction of, or dedications for Capital Facilities included in
an Infrastructure Improvements Plan pursuant to Section 7-10-11 of this Article (or as otherwise
permitted by this Article).
Credit Agreement: A written agreement between the Town and the Developer(s) of a
Subject Development that allocates Credits to the Subject Development pursuant to Section 7-
10-11 of this Article. A Credit Agreement may be included as part of a Development Agreement
pursuant to Section 7-10-12 of this Article.
Credit Allocation: A term used to describe when Credits are distributed, but are not yet
issued, to a particular development or parcel of land after execution of a Credit Agreement.
Credit Issuance: A term used to describe when the amount of an assessed development
impact fee attributable to a particular development or parcel of land is reduced by applying a
Credit Allocation.
Developer: An individual, group of individuals, partnership, corporation, limited liability
company, association, municipal corporation or other political subdivision of the state, state
agency, or other person or entity undertaking land development activity, and their respective
successors and assigns.
Development Agreement: An agreement prepared in accordance with the requirements of
Section 7-10-12 of this Article, A.R.S. § 9-500.05, and any applicable requirements of the Town
Code.
Direct Benefit: A benefit to a Service Unit resulting from a Capital Facility that: (a)
addresses the need for a Necessary Public Service created in whole or in part by the Service Unit;
and (b) meets either of the following criteria: (i) the Capital Facility is located in the immediate
area of the Service Unit and is needed in the immediate area of the Service Unit to maintain the
Level of Service, or (ii) the Capital Facility substitutes for, or eliminates the need for a Capital
Facility that would have otherwise have been needed in the immediate area of the Service Unit to
maintain the Town’s Level of Service.
Dwelling Unit: A house, building or portion of a building, apartment, mobile home or
trailer, group of rooms, or single room occupied as separate living quarters for residential
purpose or, if vacant, intended for occupancy as separate living quarters for residential purpose.
Equipment: Machinery, tools, materials, and other supplies, not including Vehicles, that
are needed by a Capital Facility to provide the Level of Service specified by the Infrastructure
Improvement Plan, but excluding replacement of the same after initial development of the
Capital Facility.
2178664.3 5
Excluded Library Facility: Library facilities for which development impact fees may not
be charged pursuant to A.R.S. § 9-463.05, including that portion of any Library facility that
exceeds 10,000 square feet, and Equipment, Vehicles or Appurtenances associated with Library
operations.
Excluded Park Facility: Parks and Recreational Facilities for which development impact
fees may not be charged pursuant to A.R.S. § 9-463.05, including amusement parks, aquariums,
Aquatic Centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra
facilities, bathhouses, boathouses, clubhouses, community centers greater than three thousand
square feet in floor area, environmental education centers, equestrian facilities, golf course
facilities, greenhouses, lakes, museums, theme parks, Water reclamation or riparian areas,
wetlands, or zoo facilities.
Fee Report: A written report developed pursuant to Section 7-10-8 of this Article that
identifies the methodology for calculating the amount of each development impact fee, explains
the relationship between the development impact fee to be assessed and the Infrastructure
Improvements Plan, and which meets other requirements set forth in A.R.S. § 9-463.05.
Financing or Debt: Any debt, bond, note, loan, interfund loan, fund transfer, or other
debt service obligation used to finance the development or expansion of a Capital Facility.
Fire and Police Facilities: A Category of Necessary Public Services that includes fire
and police stations, Equipment, Vehicles and all Appurtenances for fire and police stations.
“Fire and Police Facilities” does not include Vehicles or Equipment used to provide
administrative services, helicopters, airplanes or any facility that is used for training firefighters
or officers from more than one station or substation.
General Plan: Refers to the overall land-use plan for the Town establishing areas of the
Town for different purposes, zones and activities adopted pursuant to Town Resolution 2009-43
on January 7, 2010, and ratified by the Fountain Hills voters on May 18, 2010, as amended,
which includes the Town Center Area Specific Plan adopted pursuant to Town
Resolution 2009-40.
Grandfathered Facilities: Capital Facilities provided through Financing or Debt incurred
before June 1, 2011 for which a development impact fee has been Pledged towards repayment as
described in Section 7-10-4(C) of this Article.
Gross Impact Fee: The total development impact fee to be assessed against a Subject
Development, prior to subtraction of any Credits.
Industrial Land Use: A use allowed within the zones designated in Chapters 13 and 14 of
the Town’s Zoning Ordinance and those portions of Planned Area Development Zoning District
as determined by the Town’s Zoning Administrator.
2178664.3 6
Infrastructure Improvements Plan: A document or series of documents that meet the
requirements set forth in A.R.S. § 9-463.05, including those adopted pursuant to Section 7-10-8
of this Article to cover any Category or combination of Categories of Necessary Public Services.
Land Use Assumptions: Projections of changes in land uses, densities, intensities and
population for a Service Area over a period of at least ten years, as specified in Section 7-10-6 of
this Article.
Level of Service: A quantitative and/or qualitative measure of a Necessary Public Service
that is to be provided by the Town to development in a particular Service Area, defined in terms
of the relationship between service capacity and service demand, accessibility, response times,
comfort or convenience of use, or other similar measures or combinations of measures. Level of
Service may be measured differently for different Categories of Necessary Public Services, as
identified in the applicable Infrastructure Improvements Plan.
Library Facilities: A Category of Necessary Public Services in which literary, musical,
artistic, or reference materials are kept (materials may be kept in any form of media such as
electronic, magnetic, or paper) for use by the public in a facility providing a Direct Benefit to
development. Libraries do not include Excluded Library Facilities, although a Library may
contain, provide access to, or otherwise support an Excluded Library Facility.
Necessary Public Services: “Necessary Public Services” shall have the meaning
prescribed in A.R.S. § 9-463.05(T)(7).
Offset: An amount that is subtracted from the overall costs of providing Necessary Public
Services to account for those capital components of infrastructure or associated debt that have
been or will be paid for by a development through taxes, fees (except for development impact
fees), and other revenue sources, as determined by the Town pursuant to Section 7-10-7 of this
Article.
Parks and Recreational Facilities: A Category of Necessary Public Services including
but not limited to parks, swimming pools and related facilities and Equipment located on real
property not larger than 30 acres in area, as well as park facilities larger than 30 acres where such
facilities provide a Direct Benefit. Parks and Recreational Facilities do not include Excluded
Park Facilities, although Parks and Recreational Facilities may contain, provide access to, or
otherwise support an Excluded Park Facility.
Pledged: Where used with reference to a development impact fee, a development impact
fee shall be considered “Pledged” where it was identified by the Town as a source of payment or
repayment for Financing or Debt that was identified as the source of financing for a Necessary
Public Service for which a development impact fee was assessed pursuant to the then-applicable
provisions of A.R.S. § 9-463.05.
2178664.3 7
Qualified Professional: Any one of the following: (a) a professional engineer, surveyor,
financial analyst or planner, or other licensed professional providing services within the scope of
that person’s education or experience related to Town planning, zoning, or impact development
fees and holding a license issued by an agency or political subdivision of the State of Arizona; (b)
a financial analyst, planner, or other non-licensed professional who is providing services within
the scope of the person’s education or experience related to Town planning, zoning, or impact
development fees; or (c) any other person operating under the supervision of one or more of the
above.
Residential Land Use: A use allowed within the zones designated in Chapters 10 and 11
of the Town’s Zoning Ordinance or those portions of uses allowed in Chapters 18 and 23 as
determined by the Town’s Zoning Administrator.
Service Area: Any specified area within the boundaries of the Town within which: (a)
the Town will provide a Category of Necessary Public Services to development at a planned
Level of Service; and (b) within which (i) a Substantial Nexus exists between the Capital
Facilities to be provided and the development to be served, or (ii) in the case of Library Facilities
or a Park Facility larger than 30 acres, a Direct Benefit exists between the Library Facilities or
Park Facilities and the development to be served, each as prescribed in the Infrastructure
Improvements Plan. Some or all of the Capital Facilities providing service to a Service Area
may be physically located outside of that Service Area provided that the required Substantial
Nexus or Direct Benefit is demonstrated to exist.
Service Unit: A standardized measure of consumption, use, generation or discharge
attributable to an individual unit of development calculated pursuant to generally accepted
engineering or planning standards for a particular category of Necessary Public Services or
facility expansion.
Street Facilities: A Category of Necessary Public Services including arterial or collector
streets or roads, traffic signals, rights-of-way, and improvements thereon, and other necessary
included facilities such as bridges, culverts, irrigation tiling, storm drains, and regional
transportation facilities.
Storm Water, Drainage and Flood Control Facilities: A Category of Necessary Public
Services including but not limited to storm sewers constructed in sizes needed to provide for
stormwater management for areas beyond major street projects and stormwater
detention/retention basins, tanks, pump stations and channels necessary to provide for proper
stormwater management, including any Appurtenances for those facilities.
Subject Development: A land area linked by a unified plan of development, which must
be contiguous unless the land area is part of a Development Agreement executed in accordance
with Section 7-10-12 of this Article.
2178664.3 8
Substantial Nexus: A substantial nexus exists where the demand for Necessary Public
Services that will be generated by a Service Unit can be reasonably quantified in terms of the
burden it will impose on the available capacity of existing Capital Facilities, the need it will
create for new or expanded Capital Facilities, and/or the benefit to the development from those
Capital Facilities.
Swimming Pool: A public facility primarily designed and/or utilized for recreational non-
competitive functions generally occurring within water, including, but not limited to, swimming
classes, open public swimming sessions, and recreational league swimming/diving events. The
facility may be indoors, outdoors, or any combination thereof, and includes all necessary
supporting amenities.
Town: The Town of Fountain Hills, Arizona.
Useful Life: The period of time during which an asset can reasonably be expected to be
used under normal conditions, whether or not the asset will continue to be owned and operated
by the Town over the entirety of such period.
Vehicle: Any device, structure, or conveyance utilized for transportation in the course of
providing a particular Category of Necessary Public Services at a specified Level of Service,
excluding helicopters and other aircraft.
Wastewater Facilities: A Category of Necessary Public Services including, but not
limited to, sewers, lift stations, reclamation plants, wastewater treatment plants, and all other
facilities for the collection, interception, transportation, treatment and disposal of wastewater,
and any Appurtenances for those facilities.
Water Facilities: A Category of Necessary Public Services including, but not limited to,
those facilities necessary to provide for water services to development, including the acquisition,
supply, transportation, treatment, purification and distribution of water, and any Appurtenances
to those facilities.
7-10-3 Applicability
A. Except as otherwise provided herein, from and after August 1, 2014, this Article shall
apply to all new development within any Service Area.
B. The provisions of this Article shall apply to all of the territory within the corporate limits
of the Town and/or within any Town Service Area that extends beyond the corporate
limits.
C. The Town Manager or his/her designee is authorized to make determinations regarding
the application, administration and enforcement of the provisions of this Article.
2178664.3 9
7-10-4 Authority for Development Impact Fees
A. Fee Report and Implementation. The Town may assess and collect a development impact
fee for costs of Necessary Public Services, including all professional services required for
the preparation or revision of an Infrastructure Improvements Plan, Fee Report,
development impact fee, and required reports or audits conducted pursuant to this Article.
Development impact fees shall be subject to the following requirements:
1. The Town shall develop and adopt a Fee Report that analyzes and defines the
development impact fees to be charged in each Service Area for each Capital
Facility Category, based on the Infrastructure Improvements Plan, pursuant to
Subsection 7-10-7(A) below.
2. Development impact fees shall be assessed against all new commercial,
residential, and industrial developments, provided that the Town may assess
different amounts of development impact fees against specific Categories of
Development based on the actual burdens and costs that are associated with
providing Necessary Public Services to that Category of Development.
3. No development impact fees shall be charged, or Credits issued, for any Capital
Facility that does not fall within one of the Categories of Necessary Public
Services for which development impact fees may be assessed as identified in
Subsection 7-10-7(A)(1) below.
4. Costs for Necessary Public Services made necessary by new development shall be
based on the same Level of Service provided to existing development in the same
Service Area. Development impact fees may not be used to provide a higher
Level of Service to existing development or to meet stricter safety, efficiency,
environmental, or other regulatory standards to the extent that these are applied to
existing Capital Facilities that are serving existing development.
5. Development impact fees may not be used to pay the Town’s administrative,
maintenance, or other operating costs.
6. Projected interest charges and financing costs can only be included in
development impact fees to the extent they represent principal and/or interest on
the portion of any Financing or Debt used to finance the construction or
expansion of a Capital Facility identified in the Infrastructure Improvements Plan.
7. All development impact fees charged by the Town must be included in a “Fee
Schedule” prepared pursuant to this Article and included in the Fee Report, which
Fee Schedule may be adopted by the Town Council by resolution or as part of the
Town’s annual budget.
8. All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
2178664.3 10
B. Costs per Service Unit. The Fee Report shall summarize the costs of Capital Facilities
necessary to serve new development on a per Service Unit basis as defined and calculated
in the Infrastructure Improvements Plan, including all required Offsets, and shall
recommend a development impact fee structure for adoption by the Town.
C. Carry-over of Previously-Established Development Impact Fees and Grandfathered
Facilities. Notwithstanding the requirements of this Article, certain development impact
fees adopted by the Town prior to the effective date of this Article shall continue in effect
as follows:
1. Until August 1, 2014, or the date a new development impact fee is effective for
the applicable Category of Necessary Public Services in a Service Area pursuant
to this Article, whichever occurs first, development impact fees established prior
to January 1, 2012, shall continue in full force and effect to the extent that the
development impact fee is used to provide a Category of Necessary Public
Services that is authorized by Section 7-10-7 below. Development impact fees
collected prior to January 1, 2012, shall be expended on Capital Facilities within
the same Category of Necessary Public Services for which they were collected.
2. The Town may continue to collect and use any development impact fee
established before January 1, 2012, even if the development impact fee would not
otherwise be permitted to be collected and spent pursuant to A.R.S. § 9-463.05, as
amended by the state legislature in SB 1525, Fiftieth Legislature, First Regular
Session, if either of the following apply:
a. Both of the following conditions are met:
i. Prior to June 1, 2011, the development impact fee was Pledged
towards the repayment of Financing or Debt incurred by the Town
to provide a Capital Facility.
ii. The applicable Capital Facility was included in the Town’s
Infrastructure Improvements Plan, or other Town planning
document prepared pursuant to applicable law, prior to June 1,
2011.
b. Before August 1, 2014, the Town uses the development impact fee to
finance a Capital Facility in accordance with A.R.S. § 9-463.05(S).
3. Defined terms in any previously established fee schedule shall be interpreted
according to the ordinance in effect at the time of their adoption.
2178664.3 11
7-10-5 Administration of Development Impact Fees
A. Separate Funds. Development impact fees collected pursuant to this Article shall be
placed in separate funds (for each Capital Facility category within each Service Area)
within the City’s interest-bearing account.
B. Limitations on Use of Fees. Development impact fees and any interest thereon collected
pursuant to this Article shall be spent to provide Capital Facilities associated with the
same Category of Necessary Public Services in the same Service Area for which they
were collected, including costs of Financing or Debt used by the Town to finance such
Capital Facilities, and other costs authorized by this Article, that are included in the
Infrastructure Improvements Plan.
C. Time Limit. Development impact fees collected after July 31, 2014, shall be used within
ten years of the date upon which they were collected for all Categories of Necessary
Public Services except for Water and Wastewater Facilities. For Water Facilities or
Wastewater Facilities collected after July 31, 2014, development impact fees must be
used within 15 years of the date upon which they were collected.
7-10-6 Land Use Assumptions
The Infrastructure Improvements Plan shall be consistent with the Town’s current Land Use
Assumptions for each Service Area and each Category of Necessary Public Services as adopted
by the Town pursuant to A.R.S. § 9-463.05.
A. Reviewing the Land Use Assumptions. Prior to the adoption or amendment of an
Infrastructure Improvements Plan, the Town shall review and evaluate the Land Use
Assumptions on which the Infrastructure Improvements Plan is to be based to ensure that
the Land Use Assumptions within each Service Area are consistent with the General Plan.
B. Evaluating Necessary Changes. If the Land Use Assumptions upon which an
Infrastructure Improvements Plan is based have not been updated within the last five
years, the Town shall evaluate the Land Use Assumptions to determine whether changes
are necessary. If, after general evaluation, the Town determines that the Land Use
Assumptions are still valid, the Town shall issue the report required in Section 7-10-9
below.
C. Required Modifications to Land Use Assumptions. If the Town determines that changes
to the Land Use Assumptions are necessary in order to adopt or amend an Infrastructure
Improvements Plan, it shall make such changes as necessary to the Land Use
Assumptions prior to or in conjunction with the review and approval of the Infrastructure
Improvements Plan pursuant to Section 7-10-9 below.
2178664.3 12
7-10-7 Infrastructure Improvements Plan
A. Infrastructure Improvements Plan Contents. The Infrastructure Improvements Plan shall
be developed by Qualified Professionals and may be based upon or incorporated within
the Town’s Capital Improvements Plan. The Infrastructure Improvements Plan shall:
1. Specify the Categories of Necessary Public Services for which the Town will
impose a development impact fee, which may include any or all of the following:
a. Water Facilities
b. Wastewater Facilities
c. Stormwater, Drainage, and Flood Control Facilities
d. Library Facilities
e. Street Facilities
f. Fire and Police Facilities
g. Park and Recreations Facilities
2. Define and provide a map of one or more Service Areas within which the Town
will provide each Category of Necessary Public Services for which development
impact fees will be charged. Each Service Area must be defined in a manner that
demonstrates a Substantial Nexus between the Capital Facilities to be provided in
the Service Area and the Service Units to be served by those Capital Facilities.
The Town may cover more than one category of Capital Facilities in the same
Service Area provided that there is an independent Substantial Nexus or Direct
Benefit, as applicable, between each Category of Necessary Public Services and
the Service Units to be served.
3. Identify and describe the Land Use Assumptions upon which the Infrastructure
Improvements Plan is based in each Service Area.
4. Analyze and identify the existing Level of Service provided by the Town to
existing Service Units for each Category of Necessary Public Services in each
Service Area.
5. Identify the Level of Service to be provided by the Town for each Category of
Necessary Public Services in each Service Area based on the relevant Land Use
Assumptions and any established Town standards or policies related to required
Levels of Service.
6. For each Category of Necessary Public Services, analyze and identify the existing
capacity of the Capital Facilities in each Service Area, the utilization of those
Capital Facilities by existing Service Units, and the available excess capacity of
those Capital Facilities to serve new Service Units including any existing or
planned commitments or agreements for the usage of such capacity. The
Infrastructure Improvements Plan shall additionally identify any changes or
upgrades to existing Capital Facilities that will be needed to achieve or maintain
2178664.3 13
the planned Level of Service to existing Service Units, or to meet new safety,
efficiency, environmental, or other regulatory requirements for services provided
to existing Service Units.
7. Identify any Grandfathered Facilities and the impact thereof on the need for
Necessary Public Services in each affected Service Area.
8. Estimate the total number of existing and future Service Units within each Service
Area based on the Town’s Land Use Assumptions.
9. Based on the analysis in Subsection 7-10-7(A)(3)-(6) above, provide a summary
table or tables describing the Level of Service for each Category of Necessary
Public Services by relating the required Capital Facilities to Service Units in each
Service Area, and identifying the applicable Service Unit factor associated with
each Category of Development.
10. For each Category of Necessary Public Services, analyze and identify the
projected utilization of any available excess capacity in existing Capital Facilities,
and all new or expanded Capital Facilities that will be required to provide and
maintain the planned Level of Service in each Service Area as a result of the new
projected Service Units in that Service Area, for a period not to exceed ten years.
Nothing in this Subsection shall prohibit the Town from additionally including in
its Infrastructure Improvements Plan projected utilization of, or needs for, Capital
Facilities for a period longer than ten years, provided that the costs of such
Capital Facilities are excluded from the development fee calculation.
11. For each Category of Necessary Public Services, estimate the total cost of any
available excess capacity and/or new or expanded Capital Facilities that will be
required to serve new Service Units, including costs of land acquisition,
improvements, engineering and architectural services, studies leading to design,
design, construction, financing, and administrative costs, as well as projected
costs of inflation. Such total costs shall not include costs for ongoing operation
and maintenance of Capital Facilities, nor for replacement of Capital Facilities to
the extent that such replacement is necessary to serve existing Service Units. If
the Infrastructure Improvements Plan includes changes or upgrades to existing
Capital Facilities that will be needed to achieve or maintain the planned Level of
Service to existing Service Units, or to meet new regulatory requirements for
services provided to existing Service Units, such costs shall be identified and
distinguished in the Infrastructure Improvements Plan.
12. Forecast the revenues from taxes, fees, assessments or other sources that will be
available to fund the new or expanded Capital Facilities identified in the
Infrastructure Improvements Plan, which shall include estimated state-shared
revenue, highway users revenue, federal revenue, ad valorem property taxes,
construction contracting or similar excise taxes and the capital recovery portion of
utility fees attributable to development based on the approved Land Use
2178664.3 14
Assumptions. The Infrastructure Improvements Plan shall additionally estimate
the time required to finance, construct and implement the new or expanded
Capital Facilities.
13. Calculate required Offsets as follows:
a. From the forecasted revenues in Subsection 7-10-7(A)(12) above, identify
those sources of revenue that: (i) are attributable to new development, and
(ii) will contribute to paying for the capital costs of Necessary Public
Services.
b. For each source and amount of revenue identified pursuant to
Subsection 7-10-7(A)(13)(a) above, calculate the relative contribution of
each Category of Development to paying for the capital costs of Necessary
Public Services in each Service Area.
c. Based on the relative contributions identified pursuant to
Subsection 7-10-7(A)(13)(b) above, for each Category of Necessary
Public Services, calculate the total Offset to be provided to each Category
of Development in each Service Area.
d. For each Category of Necessary Public Services, convert the total Offset
to be provided to each Category of Development in each Service Area into
an Offset amount per Service Unit by dividing the total Offset for each
Category of Development by the number of Service Units associated with
that Category of Development.
e. Beginning August 1, 2014, for purposes of calculating the required Offset,
if the Town imposes a construction, contracting, or similar excise tax rate
in excess of the percentage amount of the transaction privilege tax rate that
is imposed on the majority of other transaction privilege tax classifications
in the Town, the entire excess portion of the construction, contracting, or
similar excise tax shall be treated as a contribution to the capital costs of
Necessary Public Services provided to new development unless the excess
portion is already taken into account for such purpose pursuant to this
Section.
f. In determining the amount of required Offset for land included in a
community facilities district established under A.R.S. Title 48, Chapter 4,
Article 6, the Town shall take into account any Capital Facilities provided
by the district that are included in the Infrastructure Improvements Plan
and the capital costs paid by the district for such Capital Facilities, and
shall Offset impact fees assessed within the community facilities district
proportionally.
2178664.3 15
B. Multiple Plans. An Infrastructure Improvements Plan adopted pursuant to this
Subsection may address one or more of the Town’s Categories of Necessary Public
Services in any or all of the Town’s Service Areas. Each Capital Facility shall be subject
to no more than one Infrastructure Improvements Plan at any given time.
C. Reserved Capacity. The Town may reserve capacity in an Infrastructure Improvements
Plan to serve one or more planned future developments, including capacity reserved
through a Development Agreement pursuant to Section 7-10-12 below. All reservations
of existing capacity must be disclosed in the Infrastructure Improvements Plan at the time
it is adopted.
7-10-8 Adoption and Modification Procedures
A. Adopting or Amending the Infrastructure Improvements Plan. The Infrastructure
Improvements Plan shall be adopted or amended subject to the following procedures:
1. Major Amendments to the Infrastructure Improvements Plan. Except as provided
in Paragraph 2 of this Subsection, the adoption or amendment of an Infrastructure
Improvement Plan shall occur at one or more public hearings according to the
following schedule, and may occur concurrently with the adoption of an update of
the Town’s Land Use Assumptions as provided in Section 7-10-6 above:
a. Sixty days before the first public hearing regarding a new or updated
Infrastructure Improvements Plan, the Town shall provide public notice of
the hearing and post the Infrastructure Improvements Plan and the
underlying Land Use Assumptions on its website; the Town shall
additionally make available to the public the documents used to prepare
the Infrastructure Improvements Plan and underlying Land Use
Assumptions and any proposed changes to Capital Facilities.
b. The Town shall conduct a public hearing on the Infrastructure
Improvements Plan and underlying Land Use Assumptions at least 30
days, but no more than 60 days, before approving or disapproving the
Infrastructure Improvements Plan.
2. Minor Amendments to the Infrastructure Improvements Plan. Notwithstanding
the other requirements of this Section, the Town may update the Infrastructure
Improvements Plan and/or its underlying Land Use Assumptions without a public
hearing if all of the following apply:
a. The changes in the Infrastructure Improvements Plan and/or the
underlying Land Use Assumptions will not add any new Category of
Necessary Public Services to any Service Area.
2178664.3 16
b. The changes in the Infrastructure Improvements Plan and/or the
underlying Land Use Assumptions will not increase the Level of Service
to be provided in any Service Area.
c. Based on an analysis of the Fee Report and the Town’s adopted
development impact fee schedules, the changes in the Infrastructure
Improvements Plan and/or the underlying Land Use Assumptions would
not, individually or cumulatively with other amendments undertaken
pursuant to this Subsection, have caused a development impact fee in any
Service Area to have been increased by more than five per cent above the
development impact fee that is provided in the current development
impact fee schedule.
d. At least 30 days prior to the date that the any amendment pursuant to this
Section is adopted, the Town shall post the proposed amendments on the
Town website.
B. Amendments to the Fee Report. Any adoption or amendment of a Fee Report and fee
schedule shall occur at one or more public hearings according to the following schedule:
1. The first public hearing on the Fee Report must be held at least 30 days after the
adoption or approval of and Infrastructure Improvements Plan as provided in
Subsection A of this Section. The Town must give at least 30 days notice prior to
the hearing, provided that this notice may be given on the same day as the
approval or disapproval of the Infrastructure Improvements Plan.
2. The Town shall make the Infrastructure Improvements Plan and underlying Land
Use Assumptions available to the public on the Town’s website 30 days prior to
the public hearing described in Paragraph (1) of this Subsection.
3. The Fee Report may be adopted by the Town no sooner than 30 days, and no later
than 60 days, after the hearing described in Paragraph (1) of this Subsection.
4. The development fee schedules in the Fee Report adopted pursuant to this
Subsection shall become effective as set forth in A.R.S. § 9-463.05.
7-10-9 Timing for the Renewal and Updating of the Infrastructure Improvements Plan
and the Land Use Assumptions
A. Renewing the Infrastructure Improvements Plan. Except as provided in Subsection B of
this Section, not later than every five years the Town shall update the applicable
Infrastructure Improvements Plan and Fee Report related to each Category of Necessary
Public Services pursuant to Section 7-10-8 above. Such five-year period shall be
calculated from the date of the adoption of the Infrastructure Improvements Plan or the
date of the adoption of the Fee Report, whichever occurs later.
2178664.3 17
B. Determination of No Changes. Notwithstanding Subsection 7-10-9(A) above, if the
Town determines that no changes to an Infrastructure Improvements Plan, underlying
Land Use Assumptions, or Fee Report are needed, the Town may elect to continue the
existing Infrastructure Improvements Plan and Fee Report without amendment by
providing notice as follows:
1. Notice of the determination shall be published at least 90 days prior to the end of
the five-year period described in Subsection 7-10-9(A) above.
2. The notice shall identify the Infrastructure Improvements Plan and Fee Report
that shall continue in force without amendment.
3. The notice shall provide a map and description of the Service Area(s) covered by
such Infrastructure Improvements Plan and Fee Report.
4. The notice shall identify an address to which any resident of the Town may
submit, within 60 days, a written request that the Town update the Infrastructure
Improvements Plan, underlying Land Use Assumptions, and/or Fee Report and
the reasons and basis for the request.
C. Response to Comments. The Town shall consider and respond to any timely requests
submitted pursuant to Subsection 7-10-9(B)(4) above.
7-10-10 Collection of Development Impact Fees
A. Collection. Development impact fees, together with administrative charges assessed
pursuant to Subsection 7-10-10(A)(5) below, shall be calculated and collected prior to
issuance of permission to commence development; specifically:
1. Unless otherwise specified pursuant to a Development Agreement adopted
pursuant to Section 7-10-12 below, development impact fees shall be paid prior to
issuance of a Building Permit according to the current development impact fee
schedule for the applicable Service Area(s) as adopted pursuant to this Article, or
according to any other development impact fee schedule as authorized in this
Article.
2. If the development is located in a Service Area with a Stormwater, Drainage, and
Flood Control development impact fee, and neither a Building Permit, Water, or
sewer service connection is required, the Storm Drainage development impact fee
due shall be paid at the time any permit is issued for the development.
3. No Building Permit, Water or sewer connection, or certificate of occupancy shall
be issued if a development impact fee is not paid as directed in the previous
Subsections.
2178664.3 18
4. If the Building Permit is for a change in the type of building use, an increase in
square footage, a change to land use, or an addition to a residential or non-
residential point of demand to the Water or Wastewater system, the development
impact fee shall be assessed on the additional service units resulting from the
expansion or change, and following the development impact fee schedule
applicable to any new use type.
5. For issued permits that expire or are voided, development impact fees and
administrative charges shall be as follows:
a. If the original permittee is seeking to renew an expired or voided permit,
and the development impact fees paid for such development have not been
refunded, then the permittee shall pay the difference between any
development impact fees paid at the time the permit was issued and those
in the fee schedule at the time the permit is reissued or renewed.
b. If a new or renewed permit for the same development is being sought by
someone other than the original permittee, the new permit Applicant shall
pay the full development impact fees specified in the fee schedule in effect
at the time that the permits are reissued or renewed. If the original
permittee has assigned its rights under the permits to the new permit
Applicant, the new permit Applicant shall pay development impact fees as
if it were the original permittee.
B. Exceptions. Development impact fees shall not be owed under either of the following
conditions:
1. Development impact fees have been paid for the development and the permit(s)
which triggered the collection of the development impact fees have not expired or
been voided.
2. The approval(s) that trigger the collection of development impact fees involve
modifications to existing residential or non-residential development that do not: (a)
add new Service Units, (b) increase the impact of existing Service Units on
existing or future Capital Facilities, or (c) change the land-use type of the existing
development to a different Category of Development for which a higher
development impact fee would have been due. To the extent that any
modification does not meet the requirements of this Paragraph, the development
impact fee due shall be the difference between the development impact fee that
was or would have been due on the existing development and the development
impact fee that is due on the development as modified.
C. Temporary Freezing of Development Impact Fee Schedules. New developments in the
Town shall be temporarily exempt from increases in development impact fees that result
from the adoption of new or modified development impact fee schedules as follows:
2178664.3 19
1. On or after the day that the first Building Permit is issued for a single-family
residential development, the Town shall, at the permittee’s request, provide the
permittee with an applicable development impact fee schedule that shall be in
force for a period of 24 months beginning on the day that the first Building Permit
is issued, and which shall expire at the end of the first business day of the 25th
month thereafter. During the effective period of the applicable development
impact fee schedule, the Developer shall pay the fees on that schedule, and any
Building Permit issued for the same single-family residential development shall
not be subject to any new or modified development impact fee schedule.
2. On or after the day that the final approval, as defined in A.R.S. § 9-463.05(T)(4),
is issued for a commercial, industrial or multifamily development, the Town shall
provide an applicable development impact fee schedule that shall be in force for a
period of 24 months beginning on the day that final development approval of a
site plan or final subdivision plat is given, and which shall expire at the end of the
first business day of the 25th month thereafter. During the effective period of the
applicable development impact fee schedule, any Building Permit issued for the
same development shall not be subject to any new or modified development
impact fee schedule.
3. Any Category of Development not covered under Subsections 7-10-10(C)(1) and
(2) above shall pay development impact fees according to the fee schedule that is
current at the time of collection as specified in Subsection 7-10-10(A) above.
4. Notwithstanding the other requirements of this Subsection, if changes are made to
a development’s final site plan or subdivision plat that will increase the number of
service units after the issuance of a development impact fee schedule issued
pursuant to this Subsection 7-10-10(C), the Town may assess any new or
modified development impact fees against the additional service units. If the
Town reduces the amount of an applicable development impact fee during the
period that a development impact fee schedule issued pursuant to this
Subsection 7-10-10(C) of this Section is in force, the Town shall assess the lower
development impact fee.
D. Option to Pursue Special Fee Determination. Where a development is of a type that does
not closely fit within a particular Category of Development appearing on an adopted
development impact fee schedule, or where a development has unique characteristics
such that the actual burdens and costs associated with providing Necessary Public
Services to that development will differ substantially from that associated with other
developments in a specified Category of Development, the Town may require the
Applicant to provide the Town Manager or authorized designee with an alternative
development impact fee analysis. Based on a projection of the actual burdens and costs
that will be associated with the development, the alternative development impact fee
analysis may propose a unique fee for the development based on the application of an
appropriate Service Unit factor, or may propose that the development be covered under
the development impact fee schedule governing a different and more analogous Category
2178664.3 20
of Development. The Town Manager or authorized designee shall review the alternative
impact fee analysis and shall make a determination as to the development impact fee to
be charged. Such decision shall be appealable pursuant to Section 7-10-13 below. The
Town Manager or authorized designee may require the Applicant to pay an
administrative fee to cover the actual costs of reviewing the special fee determination
application.
7-10-11 Development Impact Fee Credits and Credit Agreements
A. Eligibility of Capital Facility. All development impact fee Credits must meet the
following requirements:
1. One of the following is true:
a. The Capital Facility, or the financial contribution toward a Capital Facility
that will be provided by the Developer and for which a Credit will be
issued, must be identified in an adopted Infrastructure Improvements Plan
and Fee Report as a Capital Facility for which a development impact fee
was assessed; or
b. The Applicant must demonstrate to the satisfaction of the Town that, given
the class and type of improvement, the subject Capital Facility should
have been included in the Infrastructure Improvements Plan in lieu of a
different Capital Facility that was included in the Infrastructure
Improvements Plan and for which a development impact fee was assessed.
If the subject Capital Facility is determined to be eligible for a Credit in
this manner, the Town shall amend the Infrastructure Improvements Plan
to (i) include the subject replacement facility and (ii) delete the Capital
Facility that will be replaced.
2. Credits shall not be available for any infrastructure provided by a Developer if the
cost of such infrastructure will be repaid to the Developer by the Town through
another agreement or mechanism. To the extent that the Developer will be paid
or reimbursed by the Town for any contribution, payment, construction, or
dedication from any Town funding source including an agreement to reimburse
the Developer with future-collected development impact fees pursuant to
Section 7-10-12 below, any Credits claimed by the Developer shall be: (a)
deducted from any amounts to be paid or reimbursed by the Town; or (b) reduced
by the amount of such payment or reimbursement.
B. Eligibility of Subject Development. To be eligible for a Credit, the Subject Development
must be located within the Service Area of the eligible Capital Facility.
2178664.3 21
C. Calculation of Credits. Credits will be based on that portion of the costs for an eligible
Capital Facility identified in the adopted Infrastructure Improvements Plan for which a
development fee was assessed pursuant to the Fee Report. If the Gross Impact Fee for a
particular category of Necessary Public Service is adopted at an amount lower than the
maximum amount justified by the Fee Report, the amount of any Credit shall be reduced
in proportion to the difference between the maximum amount justified by the Fee Report,
and the Gross Impact Fee adopted. A Credit shall not exceed the actual costs the
Applicant incurred in providing the eligible Capital Facility.
D. Credit Allocation. Before any Credit can be issued to a Subject Development (or portion
thereof), the Credit must be allocated to that development as follows:
1. The Developer and the Town must execute a Credit Agreement including all of
the following:
a. The total amount of the Credits resulting from provision of an eligible
Capital Facility.
b. The estimated number of Service Units to be served within the Subject
Development.
c. The method by which the Credit values will be distributed within the
Subject Development.
2. It is the responsibility of the Developer to request allocation of development
impact fee Credits through an application for a Credit Agreement (which may be
part of a Development Agreement entered into pursuant to Section 7-10-12
below).
3. If a Building Permit is issued or a Water/sewer connection is purchased, and a
development impact fee is paid prior to execution of a Credit Agreement for the
Subject Development, no Credits may be allocated retroactively to that permit or
connection. Credits may be allocated to any remaining permits for the Subject
Development in accordance with this Article.
4. If the entity that provides an eligible Capital Facility sells or relinquishes a
development (or portion thereof) that it owns or controls prior to execution of a
Credit Agreement or Development Agreement, Credits resulting from the eligible
Capital Facility will only be allocated to the development if the entity legally
assigns such rights and responsibilities to its successor(s) in interest for the
Subject Development.
5. If multiple entities jointly provide an eligible Capital Facility, all entities must
enter into a single Credit Agreement with the Town, and any request for the
allocation of Credit within the Subject Development(s) must be made jointly by
the entities that provided the eligible Capital Facility.
2178664.3 22
6. Credits may only be reallocated from or within a Subject Development with the
Town’s approval of an amendment to an executed Credit Agreement, subject to
the following conditions:
a. The entity that executed the original agreement with the Town, or its legal
successor in interest and the entity that currently controls the Subject
Development are parties to the request for reallocation.
b. The reallocation proposal does not change the value of any Credits already
issued for the Subject Development.
7. A Credit Agreement may authorize the allocation of Credits to a non-contiguous
parcel only if all of the following conditions are met:
a. The entity that executed the original agreement with the Town or its legal
successor in interest, the entity that currently controls the Subject
Development, and the entity that controls the non-contiguous parcel are
parties to the request for reallocation.
b. The reallocation proposal does not change the value of any Credits already
issued for the Subject Development.
c. The non-contiguous parcel is in the same Service Area as that served by
the eligible Capital Facility.
d. The non-contiguous parcel receives a Necessary Public Service from the
eligible Capital Facility.
e. The Credit Agreement specifically states the value of the Credits to be
allocated to each parcel and/or Service Unit, or establishes a mechanism
for future determination of the Credit values.
f. The Credit Agreement does not involve the transfer of Credits to or from
any property subject to a Development Agreement.
E. Credit Agreement. Credits shall only be issued pursuant to a Credit Agreement executed
in accordance with Subsection D of this Section. The Town Manager is authorized by
this Article to enter into a Credit Agreement with the controlling entity of a Subject
Development, subject to the following:
1. The Developer requesting the Credit Agreement shall provide all information
requested by the Town to allow it to determine the value of the Credit to be
applied.
2178664.3 23
2. An application for a Credit Agreement shall be submitted to the Town by the
Developer within one year of the date on which ownership or control of the
Capital Facility passes to the Town.
3. The Developer shall submit a draft Credit Agreement to the Town Manager or
authorized designee(s) for review in the form provided to the Applicant by the
Town. The draft Credit Agreement shall include, at a minimum, all of the
following information and supporting documentation:
a. A legal description and map depicting the location of the Subject
Development for which Credit is being applied. The map shall depict the
location of the Capital Facilities that have been or will be provided.
b. An estimate of the total Service Units that will be developed within the
Subject Development depicted on the map and described in the legal
description.
c. A list of the Capital Facilities, associated physical attributes, and the
related costs as stated in the Infrastructure Improvements Plan.
d. Documentation showing the date(s) of acceptance by the Town, if the
Capital Facilities have already been provided.
e. The total amount of Credit to be applied within the Subject Development
and the calculations leading to the total amount of Credit.
f. The Credit amount to be applied to each Service Unit within the Subject
Development for each Category of Necessary Public Services.
4. The Town’s determination of the Credit to be allocated is final.
5. Upon execution of the Credit Agreement by the Town and the Applicant, Credits
shall be deemed allocated to the Subject Development.
6. Any amendment to a previously-approved Credit Agreement must be initiated
within two years of the Town’s final acceptance of the eligible Capital Facility for
which the amendment is requested.
7. Any Credit Agreement approved as part of a Development Agreement shall be
amended in accordance with the terms of the Development Agreement and
Section 7-10-12 below.
F. Credit Issuance. Credits allocated pursuant to Subsection 7-10-11(D) above may be
issued and applied toward the Gross Impact Fees due from a development, subject to the
following conditions:
2178664.3 24
1. Credits issued for an eligible Capital Facility may only be applied to the
development impact fee due for the applicable Category of Necessary Public
Services, and may not be applied to any fee due for another Category of
Necessary Public Services.
2. Credits shall only be issued when the eligible Capital Facility from which the
Credits were derived has been accepted by the Town or when adequate security
for the completion of the eligible Capital Facility has been provided in accordance
with all terms of an executed Development Agreement.
3. Where Credits have been issued pursuant to Subsection 7-10-11(F)(2), an impact
fee due at the time a Building Permit is issued shall be reduced by the Credit
amount stated in or calculated from the executed Credit Agreement. Where
Credits have not yet been issued, the Gross Impact Fee shall be paid in full, and a
refund of the Credit amount shall be due when the Developer demonstrates
compliance with Subsection 7-10-11(F)(2) in a written request to the Town.
4. Credits, once issued, may not be rescinded or reallocated to another permit or
parcel, except that Credits may be released for reuse on the same Subject
Development if a Building Permit for which the Credits were issued has expired
or been voided and is otherwise eligible for a refund under
Subsection 7-10-14(A)(2)(a) below.
5. Notwithstanding the other provisions of this Section 7-10-11, Credits issued prior
to January 1, 2012, may only be used for the Subject Development for which they
were issued. Such Credits may be transferred to a new owner of all or part of the
Subject Development in proportion to the percentage of ownership in the Subject
Development to be held by the new owner.
7-10-12 Development Agreements
Development Agreements containing provisions regarding development impact fees,
development impact fee Credits, and/or disbursement of revenues from development impact fee
accounts shall comply with the following:
A. Development Agreement Required. A Development Agreement is required to authorize
any of the following:
1. To issue Credits prior to the Town’s acceptance of an eligible Capital Facility.
2. To allocate Credits to a parcel that is not contiguous with the Subject
Development and that does not meet the requirements of Subsection 7-10-11(D)(7)
above.
3. To reimburse the Developer of an eligible Capital Facility using funds from
development impact fee accounts.
2178664.3 25
4. To allocate different Credit amounts per Service Unit to different parcels within a
Subject Development.
5. For a single family residential Dwelling Unit, to allow development impact fees
to be paid at a later time than the issuance of a Building Permit as provided in this
Section.
B. General Requirements. All Development Agreements shall be prepared and executed in
accordance with A.R.S. § 9-500.05 and any applicable requirements of the Town Code.
Except where specifically modified by this Section, all provisions of Section 7-10-11
above shall apply to any Credit Agreement that is authorized as part of a Development
Agreement.
C. Early Credit Issuance. A Development Agreement may authorize Credit Issuance prior
to acceptance of an eligible Capital Facility by the Town when the Development
Agreement specifically states the form and value of the security (i.e. bond, letter of Credit,
etc.) to be provided to the Town prior to Credit Issuance. The Town Attorney shall
determine the acceptable form and value of the security to be provided.
D. Non-Contiguous Credit Allocation. A Development Agreement may authorize the
allocation of Credits to a non-contiguous parcel only if all of the following conditions are
met:
1. The non-contiguous parcel is in the same Service Area as that served by the
eligible Capital Facility.
2. The non-contiguous parcel receives a Necessary Public Service from the eligible
Capital Facility.
3. The Development Agreement specifically states the value of the Credits to be
allocated to each parcel and/or Service Unit, or establishes a mechanism for future
determination of the Credit values.
E. Uneven Credit Allocation. If the Credits are not to be allocated evenly, the Development
Agreement must specify how Credits will be allocated amongst different parcels on a per
Service Unit basis. If the Development Agreement is silent on this topic, all Credits will
be allocated evenly amongst all parcels on a per Service Unit basis.
F. Use of Reimbursements. Funds reimbursed to Developers from impact fee accounts for
construction of an eligible Capital Facility must be utilized in accordance with applicable
law for the use of Town funds in construction or acquisition of Capital Facilities,
including A.R.S. § 34-201, et seq.
2178664.3 26
G. Deferral of Fees. A Development Agreement may provide for the deferral of payment of
development impact fees for a single-family residential development beyond the issuance
of a Building Permit; provided that a development impact fee may not be paid later than
15 days after the issuance of the certificate of occupancy for that Dwelling Unit. The
Development Agreement shall provide for the value of any deferred development impact
fees to be supported by appropriate security, including a surety bond, letter of credit, or
cash bond.
H. Waiver of Fees. If the Town agrees to waive any development impact fees assessed on
development in a Development Agreement, the Town shall reimburse the appropriate
development impact fee account for the amount that was waived.
I. No Obligation. Nothing in this Section obligates the Town to enter into any
Development Agreement or to authorize any type of Credit Agreement permitted by this
Section.
7-10-13 Appeals
A development impact fee determination by Town staff may be appealed in accordance with the
following procedures:
A. Limited Scope. An appeal shall be limited to disputes regarding the calculation of the
development impact fees for a specific development and/or permit and calculation of
Service Unit’s for the development.
B. Form of Appeal. An appeal shall be initiated in such written form as the Town may
prescribe, and submitted to the Town Manager or authorized designee.
C. Timing of Appeal to Manager. The Applicant may appeal the calculation to the Town
Manager or authorized designee within 30 calendar days of the calculation.
D. Action by Manager. The Town Manager or authorized designee shall act upon the appeal
within 14 calendar days of receipt of the appeal, and the Applicant shall be notified of the
Town Manager or authorized designee’s decision in writing.
E. Final Decision. The Town Manager or authorized designee’s decision regarding the
appeal is final.
F. Fees During Pendency. Building permits may be issued during the pendency of an
appeal if the Applicant (1) pays the full impact fee calculated by the Town at the time the
appeal is filed or (2) provides the Town with financial assurances in the form acceptable
to the Town Attorney equal to the full amount of the impact fee. Upon final disposition
of an appeal, the fee shall be adjusted in accordance with the decision rendered, and a
refund paid if warranted. If the appeal is denied by the Town Manager or authorized
designee, and the Applicant has provided the Town with financial assurances as set forth
in clause (2) of this paragraph, the Applicant shall deliver the full amount of the impact
2178664.3 27
fee to the Town within ten days of the Town Manager or designee’s final decision on the
appeal. If the Applicant fails to deliver the full amount of the impact fees when required
by this Subsection, the Town may draw upon such financial assurance instrument(s) as
necessary to recover the full amount of the impact fees due from the Applicant.
7-10-14 Refunds of Development Impact Fees
A. Refunds. A refund (or partial refund) will be paid to any current owner of property
within the Town who submits a written request to the Town and demonstrates that:
1. The permit(s) that triggered the collection of the development impact fee have
expired or been voided prior to the commencement of the development for which
the permits were issued and the development impact fees collected have not been
expended, encumbered, or Pledged for the repayment of Financing or Debt; or
2. The owner of the subject real property or its predecessor in interest paid a
development impact fee for the applicable Capital Facility on or after August 1,
2014, and one of the following conditions exists:
a. The Capital Facility designed to serve the subject real property has been
constructed, has the capacity to serve the subject real property and any
development for which there is reserved capacity, and the service which
was to be provided by that Capital Facility has not been provided to the
subject real property from that Capital Facility or from any other
infrastructure.
b. After collecting the fee to construct a Capital Facility the Town fails to
complete construction of the Capital Facility within the time period
identified in the Infrastructure Improvements Plan, as it may be amended,
and the corresponding service is otherwise unavailable to the subject real
property from that Capital Facility or any other infrastructure.
c. For a Category of Necessary Public Services other than Water or
Wastewater Facilities, any part of a development impact fee is not spent
within ten years of the Town’s receipt of the development impact fee.
Any part of a development impact fee for Water or Wastewater Facilities
is not spent within 15 years of the Town’s receipt of the development
impact fee. For the purpose of determining whether fees have been spent,
the Town shall use a first-in, first-out process.
d. Any part of a development impact fee for Water or Wastewater Facilities
is not spent within 15 years of the Town’s receipt of the development
impact fee. For the purpose of determining whether fees have been spent,
the Town shall use a first-in, first-out process.
2178664.3 28
e. The development impact fee was calculated and collected for the
construction cost to provide all or a portion of a specific Capital Facility
serving the subject real property and the actual construction costs for the
Capital Facility are less than the construction costs projected in the
Infrastructure Improvements Plan by a factor of 10% or more. In such
event, the current owner of the subject real property shall, upon request as
set forth in this Section A, be entitled to a refund for the difference
between the amounts of the development impact fee charged for and
attributable to such construction cost and the amount the development
impact fee would have been calculated to be if the actual construction cost
had been included in the Fee Report. The refund contemplated by this
Subsection shall relate only to the costs specific to the construction of the
applicable Capital Facility and shall not include any related design,
administrative, or other costs not directly incurred for construction of the
Capital Facility that are included in the development impact fee as
permitted by A.R.S. § 9-463.05.
B. Earned Interest. A refund of a development impact fee shall include any interest actually
earned on the refunded portion of the development impact fee by the Town from the date
of collection to the date of refund; provided, however that interest is not required to be
paid if the refund is requested by the Developer or property owner due to voluntary
cessation or abandonment of work. All refunds shall be made to the record owner of the
property at the time the refund is paid.
C. Refund to Government. If a development impact fee was paid by a governmental entity,
any refund shall be paid to that governmental entity.
D. Time Limitation. Any refund request must be made not later than 180 days following the
occurrence of any event described in Subsections 7-10-14(A)(2)(a)-(e) above.
7-10-15 Oversight of Development Impact Fee Program
A. Annual Report. Within 90 days of the end of each fiscal year, the Town shall file with
the Town Clerk an unaudited annual report accounting for the collection and use of the
fees for each Service Area and shall post the report on its website in accordance with
A.R.S. § 9-463.05(N) and (O), as amended.
B. Biennial Audit. In addition to the Annual Report described in Subsection 7-10-15(A)
above, the Town shall provide for a biennial, certified audit of the Town’s Land Use
Assumptions, Infrastructure Improvements Plan and development impact fees.
1. An audit pursuant to this Subsection shall be conducted by one or more Qualified
Professionals who are not employees or officials of the Town and who did not
prepare the Infrastructure Improvements Plan.
2178664.3 29
2. The audit shall review the collection and expenditures of development fees for
each project in the plan and provide written comments describing the amount of
development impact fees assessed, collected, and spent on capital facilities.
3. The audit shall describe the Level of Service in each Service Area, and evaluate
any inequities in implementing the Infrastructure Improvements Plan or imposing
the development impact fee.
4. The Town shall post the findings of the audit on the Town's website and shall
conduct a public hearing on the audit within 60 days of the release of the audit to
the public.
5. For purposes of this Section, a certified audit shall mean any audit authenticated
by one or more of the Qualified Professionals conducting the audit pursuant to
Subsection 7-10-15(B)(1) above.
2180184.1
ORDINANCE NO. 14-06
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ADOPTING THE “2014 DEVELOPMENT
IMPACT FEE ORDINANCE OF THE TOWN OF FOUNTAIN HILLS” BY
REFERENCE AND AMENDING THE TOWN OF FOUNTAIN HILLS TOWN
CODE, CHAPTER 7 (BUILDINGS AND BUILDING REGULATIONS),
ARTICLE 7-10 (DEVELOPMENT FEES), BY DELETING IT IN ITS
ENTIRETY AND REPLACING IT WITH THE 2014 DEVELOPMENT
IMPACT FEE ORDINANCE OF THE TOWN OF FOUNTAIN HILLS.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The document known as the “2014 Development Impact Fee Ordinance of
the Town of Fountain Hills” (the “2014 Impact Fee Ordinance”), three copies of which are on
file in the office of the Town Clerk, which document was made a public record by Resolution
No. 2014-31 of the Town of Fountain Hills, Arizona, is hereby referred to, adopted and made a
part hereof as if fully set out in this Ordinance.
SECTION 2. The Fountain Hills Town Code, Chapter 7 (Buildings and Building
Regulations), Article 7-10 (Development Fees), is hereby deleted in its entirety and replaced
with the 2014 Impact Fee Ordinance.
SECTION 3. Any person who fails to comply with any provision of the 2014 Impact Fee
Ordinance shall be subject to civil and criminal penalties as set forth in Article 1-8 of the
Fountain Hills Town Code, including civil penalties of not more than $500 base fine. Criminal
penalties shall constitute a class one misdemeanor, punishable by a fine not to exceed $2,500.00
or by imprisonment for a period not to exceed six months, or by both such fine and
imprisonment. Each day that a violation continues shall be a separate offense.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this
Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions of
this Ordinance.
SECTION 5. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to execute all documents and take all steps necessary to carry
out the purpose and intent of this Ordinance.
2180184.1 2
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, June 19, 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
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:6/19/2014 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Administration
Staff Contact Information:Craig Rudolphy,Finance Director,480-816-5162,crudolphy@fh.az.gov
Council Goal:
Strategic Values:Not Applicable (NA)Not Applicable (NA)
EST TO COUNCIL (Agenda Language):CONSIDERATION of RESOLUTION 2014-22 levying upon the assessed
valuation of the property within the Town of Fountain Hills subject to taxation,a certain sum upon each one hundred
dollars ($100.00)of valuation sufficient to raise the amount estimated to be required in the annual budget,specifically for
the purpose of paying principal and interest upon bonded indebtedness;all for the Fiscal Year ending June 30,2015.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:
Staff Summary (background):Since 1991,the voters of Fountain Hills have approved four bond issues for
paving roads,construction of the Library/Museum buildings and purchase of open space.The annual payment
onthe bonds (debt service)is repaid through an ad valorem property taxon all property owners in Fountain
Hills.The FY2014-15 debt service payment is $463,622 which will be submitted to Maricopa County to
calculatethe rate. Based on the 2014 secondary assessed valuation of $402,965,927,the tax rate is
estimated to be $0.1151 per $100 of assessed valuation.
RiskAnalysis (options or alternatives with implications):The annual costtoa homeowner with a secondary
assessed valuation of $300,000 would be approximately $34.52.
Fiscal Impact (initial and ongoing costs;budget status):$463,622
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):
Page 1 of 2
SUGGESTED MOTION (for council use):Move to approve Resolution 2014-22 levying a property tax upon the
property owners of the Town of Fountain Hills a levy of $0.1151 per $100 of assessed valuation for the
purpose of payment of principal and interest on bonded indebtedness.
Prepared by:
FI7T 8/1/2011
Director^Approval:/].»t
Craig Hudolphy/HnaTice Director /7 6/10/2014
Approved:*•—vApproved:
iW
Ken Buchanan,Town Manager 6/10/2014
Page 2 of 2
2177284.1
RESOLUTION NO. 2014-22
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, LEVYING UPON THE ASSESSED
VALUATION OF THE PROPERTY WITHIN THE TOWN OF FOUNTAIN
HILLS SUBJECT TO TAXATION, A CERTAIN SUM UPON EACH ONE
HUNDRED DOLLARS ($100.00) OF VALUATION SUFFICIENT TO RAISE
THE AMOUNT ESTIMATED TO BE REQUIRED IN THE ANNUAL BUDGET,
SPECIFICALLY FOR THE PURPOSE OF PAYING PRINCIPAL AND
INTEREST UPON BONDED INDEBTEDNESS; ALL FOR THE FISCAL YEAR
ENDING JUNE 30, 2015.
WHEREAS, the Mayor and Town Council of the Town of Fountain Hills (the “Town
Council”) is required by ARIZ. REV. STAT §§ 42-17151 and 42-17253 to adopt an annual tax levy
based upon the rate to be assessed per each one hundred dollars ($100.00) of valuation of real and
personal property within the corporate limits of the Town of Fountain Hills (the “Town”); and
WHEREAS, by the provisions of State Law, a resolution levying the property taxes for
fiscal year 2014-15 is required to be finally adopted on or before the third Monday in August and
not less than 14 days after a hearing on the tax levy is held; and
WHEREAS, the Town Council held a public hearing on the tax levy and adopted the
Town’s annual budget by Resolution 2014-20 on June 5, 2014, at least 14 days prior to the
adoption of this Resolution 2014-22; and
WHEREAS, Maricopa County is assessing and collecting authority for the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, as follows:
SECTION 1. The foregoing recitals are incorporated as if fully set forth herein.
SECTION 2. There is hereby levied on each one hundred dollars ($100.00) of assessed
valuation of all property, both real and personal, within the corporate limits of the Town of
Fountain Hills, except such property as may be by law exempt from taxation, a secondary property
tax rate of $0.1151, or such other rate as determined by the Maricopa County Treasurer to be
sufficient to raise the sum of $463,622, for the purpose of providing a bond interest and redemption
fund for General Obligation Bond debt service for the fiscal year ending June 30, 2015.
SECTION 3. Failure by the officials of Maricopa County, Arizona, to properly return the
delinquent list, any irregularity in assessments or omissions in the same, or any irregularity in any
proceedings shall not invalidate such proceedings or invalidate any title conveyed by any tax deed;
failure or neglect of any officer or officers to timely perform any of the duties assigned to him or to
them shall not invalidate any proceedings or any deed or sale pursuant thereto, the validity of the
assessment or levy of taxes or of the judgment or sale by which the collection of the same may be
enforced shall not affect the lien of the Town of Fountain Hills upon such property for the
2177284.1
2
delinquent taxes unpaid thereon, and no overcharge as to part of the taxes or of costs shall
invalidate any proceedings for the collection of taxes or the foreclosure; and all acts of officers de
facto shall be valid as if performed by officers de jure.
SECTION 4. The Town Clerk is hereby authorized and directed to transmit a certified
copy of this Resolution to the Maricopa County Assessor and the Maricopa County Board of
Supervisors.
SECTION 5. If any provision of this Resolution is for any reason held by any court of
competent jurisdiction to be unenforceable, such provision of portion hereof shall be deemed
separate, distinct, and independent of all other provisions and such holding shall not affect the
validity of the remaining portions of this Resolution.
SECTION 6. 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.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 19, 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
1
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #1
Amend ARS 48-575 to allow an Enhanced Municipal Services District (District) to be formed anywhere
within a city or town’s jurisdiction and make additional changes to guarantee that all participants in the
district voluntarily join.
Submitted by: Lake Havasu City, Kingman, Bullhead City, City of Winslow, City of Tucson, City of Page
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
An Enhanced Municipal Services District is a type of municipal improvement district that is authorized “to
provide public service within the district at a higher level or greater degree than provided in the remainder of
the community, including such services as public safety, fire protection, refuse collection, street or sidewalk
cleaning or landscape maintenance in public areas, planning, promotion, transportation and public parking.” A
District can be useful providing a mechanism for providing additional cities services to businesses, such as
more frequent trash service or landscaping of rights-of-way, without forcing the other taxpayers to subsidize
those costs. Additionally, a District may be used to promote the members of the District, which helps ensure
their continued success.
Current law requires Districts to be formed in designated areas, which are defined as areas of the municipality
that are either designated as a slum or blighted area or as a pocket of poverty or a neighborhood strategy area by
the United States Department of Housing and Urban Development.” Because of this requirement, many
property owners are unwilling to participate in the formation of these districts, even though such a district
would greatly aid in promoting and maintaining key retail areas in cities in towns like downtown areas and
historic neighborhoods. Additionally, there may be areas within a city or town that are not a slum or blighted
area, but would simply like the ability to pay their jurisdiction for additional services.
B. Relevance to Municipal Policy
This resolution will provide all cities and towns with an opportunity to aide, retain, promote and attract local
business owners, which keeps jobs in their community and provides revenue to the city or town.
C. Fiscal Impact to Cities and Towns
Being a voluntary District, only the property owners that participate in the formation of these districts would be
impacted by them. Participating property/business owners would likely experience increased revenue as the
purpose of the District is to foster economic activity and help promote and preserve existing businesses.
D. Fiscal Impact to the State
There is no direct fiscal impact to the state. The state may see an increase in revenue, as the District would help
foster increased economic activity and jobs, leading to increased tax revenue.
2
E. Contact Information
Name: Charlie Cassens Title: City Manager, Lake Havasu City
Phone: 928-453-4141 Email: cassensc@lhcaz.gov
3
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #2
Assist the legislature and Governor in the passage of a bill that enables Arizona cities and towns to invest
future revenues in economic development projects through the formation of REVENUE ALLOCATION
DISTRICTS.
Submitted by: Lake Havasu City, Bullhead City, Kingman, City of Winslow, City of Page
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Large-scale economic development projects are a tremendous catalyst for job creation and economic growth in
Arizona cities and towns. When large projects are constructed, they generate increased TPT and new property
tax receipts. In some cases, a halo effect is created when property values and economic activity in adjacent
areas of the city also increase as a result of their proximity to the new development.
However, in today’s financial environment, financing the upfront costs of large projects, which often include
substantial public components, can often be difficult, if not daunting. Creating a Revenue Allocation District
may help solve this dilemma by allowing anticipated revenues from a completed project to be used to finance
key components of the project itself.
For example, if Lake Havasu City wanted to encourage redevelopment of the English Village area around the
London Bridge, the city could form a Revenue Allocation District around the area with the consent of 51
percent of the landowners within the District. The pre-construction dollar amount of TPT and property tax
collections from within the English Village District would establish the base on the date that district was
formed. In future years, any incremental increase in either of these revenue streams above the base could be
used by the District to fund public improvements within the district. Most importantly, the District would have
the authority to issue bonds to help finance the project and those bonds would be repaid by new revenue
generated within that District.
B. Relevance to Municipal Policy
Promoting economic development and job creation is important to every city in the state of Arizona. Revenue
Allocation Districts would give cities another option for supporting these projects. For those cities’ proposals or
projects that are pending financing, this legislation could serve as a catalyst for economic development. For
cities that choose not to use this tool, this legislation would have no impact.
C. Fiscal Impact to Cities and Towns
The legislation calls for districts to capture only the city portion of NEW revenue that is generated as a result of
a project being built. Other taxing jurisdictions such as schools and community colleges would not be affected.
Municipal taxpayers located outside the District would be held harmless.
D. Fiscal Impact to the State
No state funds would be involved in the funding of a District because the legislation pertains only to the city
portion of the TPT and property tax. However, the state would receive increased income tax collections from
the new employees that work within the District in addition to increased corporate income tax receipts from
the companies that move into the District.
4
E. Contact Information
Name: Charlie Cassens Title: City Manager, Lake Havasu City
Phone: 928-453-4141 Email: cassensc@lhcaz.gov
5
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #3
Promote state legislation that provides Cities and Towns with tools to encourage the development of
commercial and industrial zoned parcels primarily through property tax incentives that support speculative
development.
Submitted by: Tri-City Council of Mohave County: Bullhead City, Lake Havasu City, City of Kingman
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Many Arizona communities suffer from a lack of standing inventory of ready-to-occupy commercial buildings
that businesses looking to relocate to the state are seeking. This legislation would seek to incentivize
speculative commercial building by removing the property tax-related financial pressure of investing in a
commercial parcel that may stand vacant for an unpredictable period of time.
B. Relevance to Municipal Policy
Supporting the development of speculative construction allows municipalities to increase the inventory of
ready-to-occupy structures that many businesses looking to locate to Arizona are asking for. Relieving the tax-
related financial stress associated with speculative building, communities will increase the offering of available
structures for immediate commercial use and the communities, builders and the state will enjoy the economic
benefits of the added construction and related jobs, as well as the long-term economic benefits related to the
business enterprises it will attract.
C. Fiscal Impact to Cities and Towns
Any proposal developed by this resolution will be option, meaning that there will be no fiscal impact to Cities
and Towns that do not choose to participate. Those that are successful in inducing speculative commercial
construction will experience positive fiscal results from the construction. Those communities will also be better
positioned to attract a business that is looking to relocate, but not ready or willing to build.
D. Fiscal Impact to the State
The state will benefit from the construction-related tax revenues and the subsequent commercial and/or
industrial enterprise that is later generated by the availability of real inventory. There are no fiscal impacts to
the state related to the reduction of property taxes because such taxes are only assessed at the local level.
E. Contact Information
Name: Toby Cotter Title: City Manager, City of Bullhead City
Phone: 928-763-0122 Email: tcotter@bullheadcity.com
6
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #4
Amends A.R.S. § 48-574 to authorize retention and detention basin improvement districts to levy and expend
money to operate, maintain, repair and improve retention and detention basins within a municipality.
Submitted by: City of Yuma, City of Apache Junction
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
A.R.S. § 48-574 currently authorizes improvement districts for the operation, maintenance, repair and
improvement of pedestrian malls, off-street parking facilities and parking and parkways. The proposed statutory
change makes retention and detention basins eligible for operation and maintenance cost payment through an
improvement district.
Under current state law, improvement districts are not specifically authorized to maintain retention and
detention basins. As a result, off-site retention, which benefits only a small, localized area, is often subsidized
by landowners outside of the area receiving the benefit (and who may already bear the burden of on-site
retention on their parcel). Alternatively, under current law, a municipality could require the formation of a
homeowner’s or neighborhood association to maintain basins. Permitting a developer the flexibility to form an
improvement district would allocate such costs directly to and in proportion to the benefit without the
requirement of a homeowner’s or neighborhood association.
The proposed legislation would allow operation, maintenance, improvement and repair costs for retention and
detention basins to be included in the tax levy as part of a property owner’s tax bill in accordance with assessed
value or assessment of each lot within the improvement district in proportion to the benefit to each lot. The
district would not have the authority to issue improvement bonds or to engage in any activity other than
operation, maintenance, repair and improvement of the retention and/or detention basin.
B. Relevance to Municipal Policy
Improvement districts are prevalent across the state. A uniform process that allows cities and towns to more
fairly distribute the perpetual maintenance costs of retention and detention basins will provide long-term
cumulative savings to municipalities, provide developers with an alternative to homeowner’s or neighborhood
associations, and facilitate ease of payment for homeowners.
C. Fiscal Impact to Cities and Towns
Cities and towns that approve retention and detention basin improvement districts would realize savings that
could be spent for other improvements or services.
D. Fiscal Impact to the State
There is no fiscal impact to the state.
7
E. Contact Information
Name: Steven W. Moore Title: City Attorney
Phone: (928) 373-5050 Email: Steve.Moore@YumaAZ.gov
8
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #5
Request and encourage the Arizona State Legislature to establish a mechanism enabling local government to
establish renewable energy and conservation financing districts. In addition, encourage the Arizona State
Legislature to identify and define energy efficiency, renewable energy and water conservation as a public
benefit that enhances the public good and promotes the health, safety, prosperity, security, and general
welfare of the community.
Submitted by: City of Flagstaff, City of Tucson
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Renewable energy and conservation financing district authority enables local government to create a financing
mechanism to provide up front funds to commercial property owners for energy efficiency, renewable energy,
and water conservation improvements. Property owners can opt in to finance energy efficiency improvements,
renewable energy installation, and water conservation improvements on their property and repay financing
through a property assessment.
Energy efficiency, renewable energy and water conservation create an opportunity to utilize our nation’s
resources wisely and secure reliable, clean, and safe energy. In the current economic climate the upfront
financial commitment necessary to implement energy efficiency, renewable energy, and water conservation
improvements is often a barrier for property owners. A voluntary renewable energy and conservation
financing district can remove these barriers.
In Arizona, energy efficiency, water conservation and renewable energy financing programs have significant
potential to stimulate the state’s economy, create jobs and transition residents to sustainable energy use and
production. Such programs can deliver benefits beyond energy independence, including new sources of
workforce stabilization and development, increase value and comfort of buildings, provide protection from
increasing energy costs and enhance community awareness.
Energy efficiency, water conservation and renewable energy financing programs have been developed in
numerous communities across the nation. At least 30 states have passed enabling legislation that allows local
government to establish property assessed energy efficiency, water conservation and renewable energy
financing districts, defines energy efficiency, water conservation and renewable energy as a public benefit, and
grants the authority to issue bonds.
The federal government currently encourages the installation and use of renewable energy through a series of
federal tax incentives and credits. Arizona also has several tax incentive-based programs to encourage the
production of renewable energy. These incentives collectively make renewable energy projects more
affordable only after installation but do little to address the upfront financial commitment.
Improving the energy efficiency of existing structures and deploying renewable energy installations supports
adopted Arizona House Bill 2638 (2007), which requires towns, cities, and counties with a population greater
than 150,000 to adopt an energy element to their planning policies that will encourage and provide incentives
for the efficient use of energy and requires that community general plans contain an assessment that identifies
policies and practices that will provide for the greater use of renewable energy sources.
9
This resolution also supports Arizona regulated utilities’ efforts to meet the Arizona Corporation
Commission’s Renewable Energy Standard that requires 15% of their energy generation to come from
renewable resources by 2025.
B. Relevance to Municipal Policy
This resolution would support municipalities that choose to promote energy efficiency, renewable energy and
water conservation practices within their communities. Many Arizona communities are working to improve
the efficiency of existing building stock in the residential and commercial sectors to promote sustainability and
help protect community members from rising energy costs.
C. Fiscal Impact to Cities and Towns
Renewable energy and conservation financing district authority would allow local governments to proactively
provide a mechanism for property owners to decrease their fossil fuel use and increase energy cost savings.
Energy efficiency, renewable energy and water conservation financing programs can remove upfront financial
barriers for property owners that would like to develop energy efficiency, renewable energy and water
conservation projects. With enabling legislation, local governments could voluntarily elect to establish energy
efficiency, renewable energy and water conservation financing program and participation in the program
would be completely voluntary for interested property owners. There would be no fiscal impact on the city or
town.
D. Fiscal Impact to the State
There are no fiscal impacts to the State. Energy district authority would allow for opt-in energy efficiency and
renewable energy financing programs at the fiscal responsibility of the property owner.
E. Contact Information
Name: Nicole Woodman / Jerene Watson Title: Sustainability Manager / Deputy City Manager
Phone: 928-213-2149 / 98-213-2073 Email: jerenewatson@flagstaffaz.gov
10
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #6
Urges the Legislature to stop future sweeps of Highway User Revenue Funds (HURF) allocated to Arizona
cities and towns, and to restore HURF funding to FY2008 levels.
Submitted by: City of Yuma, City of Sedona, City of Apache Junction, City of Winslow
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
HURF funds come from a number of sources including use fuel taxes, motor carrier fees, vehicle license taxes
and motor vehicle registration fees. Statutes provide a method of distributing these funds among the state,
counties, and cities for the purpose of construction, improvements and maintenance of streets and roadways
within their jurisdictions. The State has swept portions of these revenues each year since FY2008, mainly to
support Arizona Department of Public Safety (DPS). These sweeps affect every municipality and county in the
state. As a result of these sweeps, more than 38% of Yuma’s major roadways are in poor or below average
condition. Delayed maintenance on streets has caused many streets to now need total replacement, at a much
greater cost. The poor condition of transportation infrastructure is a detriment to attracting new commerce and
industry.
In addition to the direct impact on cities’ streets and roadways, this slowdown and halt of street construction
and maintenance has cost jobs. The Arizona chapter of the Associated General Contractors estimated in 2011
that an estimated 42,000 jobs have been lost due to the lack of highway construction. This loss has had a
negative impact on the economic viability of the State.
B. Relevance to Municipal Policy
The longer the attention to street maintenance is neglected, the more costly it becomes to bring streets up to
even average condition. Many Arizona counties, cities, and towns experience a significant rise in population
during the winter months. The declining street infrastructure negatively affects the states’ tourism industry and
makes other warm states more attractive to these visitors.
C. Fiscal Impact to Cities and Towns
The sweeps have touched every county, city and town in Arizona. There are no replacement revenues for cities
to tap. As maintenance is delayed, the cost rises. Restoring full HURF funding to local jurisdictions will allow
much needed street replacement, repair, and maintenance.
D. Fiscal Impact to the State
Reinstating the statutory distribution of HURF monies, including the funds to be allocated to DPS pursuant to
statutes, may require the State find other sources or revenue for DPS.
E. Contact Information
Name: Steven W. Moore Title: City Attorney
Phone: (928) 373-5050 Email: Steve.Moore@YumaAZ.gov
11
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #7
Urges the Legislature to find a sustainable revenue collection system that will increase revenue into the
Highway User Revenue Fund. The purpose of this Resolution is to recommend the formation of a HURF
revenue study committee to work together to analyze transportation funding challenges, explore revenue
options and make recommendations for an up to date alternative revenue collection system necessary to
expand and maintain Arizona’s transportation network now and into the future.
Submitted by: City of Kingman, City of Apache Junction, City of Bullhead City, Town of Camp Verde, Town
of Clifton, City of Lake Havasu City, City of Somerton, City of Page, Town of Payson, City of Sierra Vista,
City of Winslow
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Investment in our transportation system is absolutely vital for Arizona’s economic expansion and the safety of
our traveling public. The quality of Arizona’s transportation infrastructure directly affects the quality of life of
Arizonans through mobility, safety, and jobs. To be successful, commerce, economic development and
international trade depend on quality transportation systems. Good quality roads are an integral part of tourism,
one of Arizona’s top economic drivers. Infrastructure enhances accessibility of tourists to different parts of our
state, more specifically transportation is an essential component of successful tourism development in that in
creates in impression of our state, induces the creation of attractions and the growth of existing ones.
The quality of Arizona’s transportation infrastructure continues to deteriorate. Revenue going into the Highway
User Revenue Fund (HURF) has decreased substantially and over the past several years, hundreds of millions of
dollars have been diverted from the already declining HURF fund. Arizona’s transportation funding levels,
while once average, now ranks 42nd in the nation. Modernization of how we pay for infrastructure needs to be
reviewed to secure adequate and sustainable funding. Transferring of HURF revenues to pay for other
government programs needs to stop. Arizona cannot afford to slip further behind.
Transportation revenue collection continues to decline. Gasoline tax has lost its value over the past
decade. And gas and fuel tax revenues will continue to decrease over time due to the increased fuel
efficiency of the fleet. With more fuel efficient fleet, increasing the gasoline tax may not be a viable
solution to sustain our current and future infrastructure needs. HURF revenues for 2013 of nearly $1.2
billion were $200 million less than 2007 and even less when compared to 2004.
According to ADOT’s numbers, fuel tax revenues collected in FY 2013 totaled $647.9 million. In FY
2004 $642.5 million in fuel taxes were collected – that’s less than a percent difference over a span of 10
years, yet the rate of inflation over this period of time is 23.9%.
Due to our state’s critical transportation funding gap, highway construction has become increasing
reliant on Washington. However, federal transportation dollars are drying up as well; it is expected that
there will be no federal funding for new projects in fiscal year 2015 and beyond. Arizona currently
receives roughly $675 million in federal highway funding, continuation of receiving federal assistance
remains highly volatile.
Americans pump less gas these days, have a greater dependence on mass transit, and live in walkable
communities where they walk to services, schools, and jobs. With continued high gas prices, fuel
efficient cars like hybrids and electric cars are important factors for consumers. According to the
University of Michigan, vehicles manufactured in the month of February 2014 averaged 25.2 mpg, a
12
drastic improvement compared to 16.9 mpg in 1991 – the last time AZ gas taxes were addressed.
The 2013 ASCE report card for Arizona’s infrastructure reflects 52% of Arizona roads were rated in
poor to mediocre condition, and driving on these poor roads costs Arizona motorists almost $887 million
per year in vehicle repair and operating costs. Additionally the report reflects 3.2% of Arizona bridges
are structurally deficient and 9.2% are functionally obsolete.
Arizona’s HURF revenue collection system is clearly out dated, running a budget based on a 1991 tax. The
purpose of this Resolution is to recommend the formation of a HURF revenue study committee to work together
to analyze transportation funding challenges, explore revenue options and make recommendations for an up to
date alternative revenue collection system necessary to expand and maintain Arizona’s transportation network
now and into the future. Examples of possible alternative revenue sources the committee can explore include,
but are not limited to:
Increase to the current taxing rates.
Implementing some sort of indexing mechanism.
Move to a vehicle miles traveled tax.
Implement a transportation-targeted state and local sales tax.
Permit cities and towns to collect their own gas tax
Example of possible study committee composition can include a 19 member team representing all regions of
Arizona and from the following groups: state, county and local government officials, League staff, business,
labor, and advocates for motorists to name a few.
Our recommended time line is for the study committee be appointed in the 2015 legislative session, with a
report of its findings and recommendations to the Governor and the legislature on or before December 1, 2015.
B. Relevance to Municipal Policy
Arizona is at a crucial decision point for transportation funding; our transportation system is in trouble.
Allowing our roads to crumble, losing jobs and tourists and endangering the public is a disastrous plan, when
we could secure adequate, sustainable transportation funding. Cities and towns across our state are struggling
with a backlog of pavement preservation projects and dwindling transportation revenues.
Arizona's gasoline tax has stood at 18 cents per gallon for nearly 23 years. Over those years, the average rate of
inflation is 2.63 percent making that 18 cents now worth what a dime was in 1991. Had the rate of inflation
been kept up, that 18 cents tax would be .33 cents today. The buying power to construct new transportation
improvements and maintain the existing transportation infrastructure has diminished due to inflation. Growth,
changes to fuel saving automotive technology and driving habits are resulting in less revenue to repair our
crumbling transportation infrastructure. Infrastructure is deteriorating on a yearly basis resulting in escalating
and unaffordable costs for repair; it’s reached a tipping point!
Fundamental responsibility for transportation decision-making should be at the local level. Municipalities
should have the ability to set their own priorities in transportation investment that satisfy local needs and
objectives. Maintaining and expanding our vital transportation infrastructure is critical for economic growth in
our communities. With the overwhelming amount of economic activity that occurs in cities and towns, investing
in infrastructure at the local level will create jobs, encourage tourism, and attract out-of-state businesses and to
keep local businesses in our communities.
13
C. Fiscal Impact to Cities and Towns
Streets, roads and bridges are critical assets for local government. HURF revenues are our primary source of
street funding.
While we appreciate the inclusion of some restored HURF revenue in the recently adopted state budget, over
the past decade, more than $200 million in city and town HURF funds have been transferred to DPS. These
legislative sweeps have been devastating to local governments. Sweeps need to stop and be redirected back to
their intended use.
Local roads comprise over 75% of the nation’s pavement. Roughly half of all HURF revenues are directed to
county and municipal road programs. Mohave County alone has seen its HURF dollars reduced by 20%, losing
$5.9 million which has contributed to 80% of its road network reaching or surpassing its pavement service life.
Declining revenues and HURF sweeps have greatly affected the City of Kingman’s transportation infrastructure
program:
Kingman has an increasing backlog of annual maintenance needs with a current estimated shortfall of
approximately $11 million.
A funding gap of $26.5 million is required to complete Kingman’s much needed short term
transportation projects.
Kingman’s 20 year Long Range Transportation Projects, which considers such factors as pavement
conditions, congestion levels and safety performance, are estimated to have a $365.9 million funding
gap between needs and revenues.
Appointment of a HURF revenue study committee can review approaches to implement a set of revenue
measures that address the transportation infrastructure funding shortfalls experienced by cities and towns across
Arizona.
D. Fiscal Impact to the State
Economic development and job growth continue to be cited as top priorities of public, local and state
government officials, legislators and the Governor. Both are dependent on quality and capacity of our
transportation infrastructure.
Infrastructure investment means higher economic activity for the construction industry. During the recession,
Arizona construction jobs were slashed from 250, 000 to 120,000.
Maintenance in the state’s transportation infrastructure already in place is not being adequately addressed. Last
year’s five-year program update provided $150 million per year for maintenance while ADOT’s pavement
preservation staff estimate they need roughly $260 million. ADOT estimates its system has $18.4 billion worth
of assets that would cost over $100 billion to replace.
Due to declining transportation revenues, last year’s ADOT five-year plan update required $350 million in
previously planned highway construction and maintenance activity. ADOT has had to cut or defer $537 million
in needed infrastructure projects, current revenue collection is woefully deficient.
The state’s 25-year Long Range Transportation Plan, which considers such factors as pavement conditions,
congestion levels and safety performance, projects a $63 billion gap between needs and revenues.
Appointment of a HURF revenue study committee can review approaches to implement a set of revenue
measures that address the transportation infrastructure funding shortfalls experienced by the state to properly
fund vital infrastructure.
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E. Contact Information
Name: Jackie Walker Title: Intergov & Human Resources/Risk Mgt
Phone: 928-753-8107 Email: jwalker@cityofkingman.gov
15
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #8
Authorize municipalities to use a sampling method to determine population estimates and housing vacancy
rates for mid-decennial population updates.
Submitted by: Town of Prescott Valley, City of Page, Town of Chino Valley
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
The 2010 census was conducted in the midst of the worst economy this country has seen since the great
depression. It was a time of high foreclosures and residents abandoning their homes because they were upside
down on their mortgage. This resulted in the census reporting dramatically higher vacancy rates, and lower
population numbers, for many cities.
The effect of this resolution would allow municipalities to use a sampling method to determine 2015 population
estimates instead of conducting a very costly door-to-door count, similar to legislation that was approved for
2005 (ARS §42-5033.01). It would also allow municipalities to hire a third party to use a sampling method to
determine current vacancy rates.
B. Relevance to Municipal Policy
Cities and Towns have the option mid-decade to conduct a special census or to utilize numbers provided by the
Arizona Department of Administration to update population estimates used to distribute state shared revenues.
The updates from ADOA, however, utilize the 2010 census as the baseline and adjust that number by examining
annexations, building permits and demolition data. The 2010 census was skewed due to abnormally high
vacancy rates and this problem is being perpetuated in annual updates.
C. Fiscal Impact to Cities and Towns
Cities and Towns with abnormally high vacancy rates in 2010 are being negatively impacted by inaccurate
population estimates used to determine state shared revenues. Enabling municipalities to correct vacancy rates
from 2010 and use a sampling methodology for population estimates in 2015 would more accurately portray
municipal population estimates.
D. Fiscal Impact to the State
There is no fiscal impact to the state. Any population changes made would simply re-allocate the distribution of
state shared revenues between municipalities to reflect a more accurate population estimate.
E. Contact Information
Name: Larry Tarkowski Title: Town Manager
Phone: 928-759-3100 Email: ltarkowski@pvaz.net
16
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #9
Support the restoration of funding to the Arizona Housing Trust Fund.
Submitted by: City of Flagstaff, Town of Chino Valley, City of Prescott Valley
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Created in 1988 to provide a flexible funding source to assist in meeting the needs of low-income households in
Arizona , the Housing Trust fund is funded from the sale of unclaimed property, such as stocks or savings
accounts abandoned by the owner, often due to a death without a will. The Housing Trust Fund was initially
funded by 35% of unclaimed property proceeds, and then increased over time to 55% to better address rural
housing needs. Prior to the Great Recession, the Housing Trust Fund received over $30 million annually. Due to
state budgetary constraints, in 2010 the Housing Trust Fund was capped at $2.5 million.
B. Relevance to Municipal Policy
Cities and towns, as well as non-profits, are eligible to apply to receive an allocation of the Housing Trust Fund
to further housing objectives within their communities. Restoration of funding to the Trust Fund will enable a
greater number of grant applications to be funded and other funding to be leveraged.
C. Fiscal Impact to Cities and Towns
Funding from the Housing Trust Fund has the potential to bring much needed funding to communities to
address housing needs, either through the city, town or a non-profit application for use to further local housing
objectives.
D. Fiscal Impact to the State
When the Housing Trust Fund was capped at $2.5 million in 2010, the funding from the sale of unclaimed
property was reallocated to other areas. Restoration of funding to the Trust Fund will potentially pull funding
away from the areas to which it was reallocated.
E. Contact Information
Name: Sarah Darr Title: Housing Manager
Phone: 928-213-2745 Email: saradarr@flagstaffaz.gov
17
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #10
Urges the authorization of expenditure and full appropriations through the reenactment of repealed ARS 41 -
501, 503 and 504 to restore the Arizona State Park Heritage Funds.
Submitted by: City of Sedona, City of Kingman, Bullhead City, Town of Camp Verde, City of Cottonwood,
Lake Havasu City, City of Globe, City of Winslow, City of Page, City of Flagstaff
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
The Arizona State Parks (ASP) Board Heritage Fund was established in November 1990 by voter initiative,
provides up to $10 million annually to Arizona State Parks from Arizona Lottery proceeds (A.R.S. §41-503).
There were three competitive grant programs offered annually from the Heritage Fund dollars to provide
opportunities for the public to enjoy parks and outdoor recreation, and to help preserve natural and cultural
resources. Seventeen percent of the State Parks Heritage Fund revenues were available annually (up to $1.7
million) through the Historic Preservation (HP) Grant Program. Thirty-five percent of the revenues (up to $3.5
million) were available through the Local, Regional and State Parks (LRSP) Grant Program, and five percent of
the revenues (up to $500,000) went to the Trails Heritage Fund, of which 95% was available through the
competitive grant program.
Since 2009, sweeps of the Heritage Fund resulted in the discontinuation of the Heritage Fund Grant Programs
due to lack of funding. The Heritage Fund Grant Programs were an important source of funding, through the
LRSP in particular, to Cities and Towns for their ability to enhance and expand local park sites. The sweep of
Heritage Funds directly impacts the ability of Cities and Towns to provide funds to conserve our state’s natural,
cultural, and historic resources and shifts costs to Cities and Towns that are the burden of the State, and which
benefit the state.
Not only were the remaining Heritage Funds eliminated – funds that were used for Capital Improvements to the
Arizona State Parks – but the Legislature fully repealed the funding mechanism for Heritage Funds through the
repeal of authorizing statutes A.R.S. 41-501, 41-503, and 41-504 effective on July 1, 2011. The FY 12 State
Budget swept the remaining $2,090,000 of the Enhancement Fund, which eliminated the amount available for
Capital Programs and left ASP with no capital funds available to repair structural emergencies. Without
reauthorization of the related statutes, there is no vehicle to appropriate funds, and the future of not only local
funding but the entirety of Arizona State Parks hangs in the balance. The inability to fund needed Capital
Improvements, and even emergency repairs puts ASP at a dangerous financial precipice.
B. Relevance to Municipal Policy
Approval of this resolution and resulting policy changes would provide a vehicle for funding to continue
municipalities and the states’ ability to provide and enhance the conservation of our state’s natural, cultural, and
historic resources. It would shift the responsibility for these programs back to the State and reinforce the voter
approved initiative that originally placed the burden on the State
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C. Fiscal Impact to Cities and Towns
Reenactment of Arizona Heritage Fund appropriations would have a significant positive impact on recreational
opportunities, environmental education for the K-12 curriculum and enrichment for educators, grants and
research, and response to and help with ameliorating human-wildlife conflicts in urban areas. It also positively
impacts the viability of State Parks as the sweep of funds has left ASP without funds for capital improvements
or for any structural emergency. The loss of Heritage Funds has a direct impact on Cities and Towns due to the
economic impact of State Parks as evidenced in the “The Economic Impact of Arizona State Parks 2007” study
prepared by The Arizona Hospitality Research & Resource Center, Center for Business Outreach and The W.
A. Franke College of Business, Northern Arizona University in February 2009.
D. Fiscal Impact to the State
The restoration of Arizona Heritage Fund dollars to pre-2009 levels would require $10 million, which
previously had been authorized from Arizona Lottery proceeds per A.R.S. §41-503.
E. Contact Information
Name: Nicholas R Gioello Title: Assistant to the City Manager & Government
Relations Manager
Phone: 928-203-5100 Email: ngioello@sedonaaz.gov
19
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #11
Requests the Legislature appropriate $20 million to the Greater Arizona Development Authority (GADA)
infrastructure fund, restoring its original statutory mandate and pre-FY2008 funding level. Further requests
the Legislature insulate the GADA fund from future sweeps.
Submitted by: City of Apache Junction, Town of Chino Valley, Town of Queen Creek, Town of Sahuarita
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Adoption of this resolution will:
Support economic development in small, rural and tribal communities through infrastructure investment
Address an urgent need to upgrade deteriorating infrastructure
Provide affordable financing for smaller municipalities
Create a sustainable source of funding for Arizona’s infrastructure needs
In FY1997, the State created the Greater Arizona Development Authority to fund the infrastructure needs of
small, rural and tribal communities across the State of Arizona. Since that time, GADA has leveraged an initial
State appropriation of $20 million to successfully finance 84 projects, totaling $575 million.
Since FY2008, the State has swept unrestricted GADA fund balances into the General Fund. This has
significantly diminished the ability of small cities and towns to plan and execute capital improvement projects.
The practice has negatively impacted every municipality with a population of fewer than 50,000 residents and
every county with a population of fewer than 200,000 residents. Infrastructure investment plays a critical role in
the economic viability of our communities, not only in terms of future development, but also in terms of
retaining existing employers and industry.
B. Relevance to Municipal Policy
Infrastructure investment creates jobs, builds better communities and makes the State of Arizona a safer and
more productive place to live. The GADA fund has provided financing for a wide variety of infrastructure
projects, including public safety, road improvements, wastewater system improvements, community centers,
libraries, parks and recreation facilities and municipal service buildings. The projects are as unique and varied
as the communities themselves. The projects have included new initiatives, as well as renovations to dangerous
and outdated infrastructure. Maintaining and improving infrastructure creates viable communities where people
want to live, work and visit.
C. Fiscal Impact to Cities and Towns
Not only has GADA been able to provide access to bond markets for municipalities with unproven and weaker
credits, but GADA’s strong bond rating has resulted in lower interest rates for the borrower. Further, GADA has
provided for significantly lower issuance costs for municipalities. The lower costs have been accomplished
through direct subsidies, as well as cost allocation across a pool of participants. To date these lower interest
rates, subsidies and allocations have totaled almost $18.5 million, or an average of approximately $250k in
20
savings per financing. These savings are significant for small, rural and tribal communities.
Failure to pass this resolution will drive up the cost of infrastructure financing for many of our small
municipalities.
D. Fiscal Impact to the State
To date, GADA has leveraged an initial $20 million in appropriations from the State into $575 million in
infrastructure projects. This represents a net cost avoidance to the State and its taxpayers of $555 million in
direct capital investment. This also represents an effective leverage rate of almost 30:1. That is to say, for
every $1 of State appropriation, GADA has successfully provided almost $30 of infrastructure investment in
our communities.
Reinstatement of the GADA fund, with statutory insulation from future sweeps, will allow GADA to provide
future infrastructure loans from cash flow.
E. Contact Information
Name: Matt Busby Title: Asst. to the City Manager
Phone: 480-474-5096 Email: mbusby@AJCity.Net
21
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #12
Urge the Governor and State Legislature to amend A.R.S §38-848.3 and A.R.S §38-713a1b to include one
representative from a large city along with one representative from a small non-metropolitan city on the
Public Safety Retirement System Board of Trustees and the Arizona State Retirement System Board.
Submitted by: City of Sierra Vista, Town of Apache Junction
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
This resolution seeks to add more balanced representation of local government to both the Public Safety
Personnel Retirement System Board of Trustees as well as the Arizona State Retirement System Board.
Currently, small municipalities in the state are being impacted by the decisions being made to reform the public
safety retirement system. Including members from a large and small city will allow a boarder perspective on
discussions as it relates to proposed changes to the system.
B. Relevance to Municipal Policy
Cities and towns across the state are being significantly impacted by the pension issue, particularly the PSPRS
system decisions. Small communities with smaller police and fire departments are particularly hard hit with
major increases, and several smaller rural communities are among the highest percentage of contributions in the
state. The City of Bisbee pays 64.7% and Prescott 59.66% of their respective public safety payroll toward
PSPRS. Making sure small rural communities have a voice at the table is important.
C. Fiscal Impact to Cities and Towns
This resolution has no fiscal impact to the Cities and Towns directly. However, Arizona Cities and Towns are
keenly affected by the decisions of both retirement bodies, therefore, it is essential that the perspective of
municipalities be considered in system-wide decisions.
D. Fiscal Impact to the State
This resolution has no fiscal impact to the State.
E. Contact Information
Name: Mary Jacobs Title: Assistant City Manager
Phone: 520-439-2147 Email: Mary.Jacobs@SierraVistaAZ.gov
22
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #13
Adopt further improvements to Arizona’s public safety retirement system that will promote affordability for
taxpayers while providing for the benefit promised to workers. These improvements should include a plan to
effectively deal with the problem of unfunded liability, bringing a balance within a reasonable period of time
while ensuring that Arizona remains competitive in its ability recruit and retain talented public safety
employees.
Submitted by: City of Flagstaff, Town of Paradise Valley
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Explore mechanisms to improve public safety pensions for both employer and employees that creates an
economically sustainable retirement system that protects taxpayers.
B. Relevance to Municipal Policy
Need for sound financial planning and budgeting and use of the taxpayer dollars. How cities spend the
taxpayers’ money is one of its most important responsibilities and a significant factor in garnering the trust of
our citizens.
C. Fiscal Impact to Cities and Towns
The disparate fiscal impact on each of the municipalities varies widely and creates challenges in budgeting and
planning for the future. The current unfunded liability and increasing contribution rates for the public employee
retirement systems are not financially sustainable and create a heavy burden on local governments to continue
to fund pensions.
D. Fiscal Impact to the State
Level the state contribution with a more uniform and therefore could be an impact to the State budget. The
anticipated costs associated with decreasing unfunded liability will have a big impact on state and local budgets
for years to come and is an essential component of any pension reform measure.
E. Contact Information
Name: Michelle D’Andrea/Jerene Watson Title: City Attorney/Deputy City Manager
Phone: 928-213-2044/928-213-2073 Email: jerenewatson@flagstaffaz.gov
23
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #14
Develop and pass legislation to make the requirements for annexation a more simple and flexible process.
Submitted by: City of Yuma, Town of Oro Valley, City of Bullhead City, Town of Marana,
Town of Wickenburg
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
The annexation process is cumbersome and needs examination. This resolution proposes to advocate for
reasonable solutions to the annexation dilemma.
Excessive signature requirements are a deterrent to annexation. Cities and towns are required to obtain
signatures from utility companies, and other entities, that do not own real property in the proposed annexation
area. Cities and towns are also required to meet an assessed valuation threshold; but when the city or town does
not levy a property tax, the value of the property is irrelevant.
Over time, cities created county islands by annexing around the areas that did not meet the statutory signature
requirements for annexation. This has resulted in pockets of non-incorporated areas dotted throughout cities.
These county islands do not receive the same level of public services, such as improved infrastructure, water
and sewer services, sanitation, and public safety and emergency services, as the property as close as next door.
An unintended consequence is that when an emergency arises in an unincorporated area that is wholly within or
adjoining a city’s boundaries, there is often confusion over which agency should respond. For example, when
emergency assistance calls from an unincorporated area are received by a city, there may be delays in
responding while the call is routed to the county. Or, both jurisdictions may respond to a public safety event
when the boundaries are not readily known, and in the worst case neither may respond.
The irony is that unincorporated areas contribute to a city’s economy, but cannot participate in decisions
affecting their community, and, at the same time, create burdens on cities that adjoin or surround them, and on
the counties they look to for services. This resolution seeks to alleviate this situation and will benefit all
property owners within a city’s annexation area and county islands.
The League, interested members, and other stakeholders should convene to discuss these problematic areas and
design legislation that will enhance the annexation process without undue burden to any one party.
B. Relevance to Municipal Policy
Statutes regarding municipal annexation have become more complicated over time. Simplifying the annexation
process to allow cities and towns to provide important urban services within their boundaries is good policy.
Annexation also fosters civic engagement in the democratic process and a sense of shared responsibility for our
communities.
C. Fiscal Impact to Cities and Towns
Residents living in unincorporated areas are affected by decisions made by cities and towns, yet they have no
voice in the governing process. Reducing the unincorporated population is a key strategy for cities and counties
24
to maintain fiscal stability. Annexation allows cities and towns a way to expand their retail sales tax base,
providing greater fiscal stability. This increased governance capacity ensures that cities and towns are able to
provide adequate services to all Arizona citizens. If legislation moves forward that allows greater flexibility in
annexing county islands, it would be up to cities and towns themselves to determine when and if they annex
these areas. Those communities that choose to move forward will need to extend their services to newly
annexed areas. Those costs would be different for each community. But nothing in the legislation should require
a city or town to annex county islands if they feel they cannot provide services.
D. Fiscal Impact to the State
There is no fiscal impact to the state when it comes to which local government provides local services. Minor
adjustments in state-shared revenues would be made based on population changes, but it would be a reshuffling
of the total allocation, not an increase in state revenues to local government. Eliminating barriers to annexation
would also encourage economic development, which would ultimately result in increased revenue to the state.
E. Contact Information
Name: Steven W. Moore Title: City Attorney
Phone: (928) 373-5050 Email: Steve.Moore@YumaAZ.gov
25
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution # 15
Urges the Legislature to amend A.R.S. § 39-121.01 to allow cities and towns to place reasonable balances on
public record requests that are overbroad or abusive and on the frequency on requests. Such limitations may
include placing reasonable limitations on the number of requests from individuals or groups within a
specified, reasonable period of time.
Submitted by: City of Yuma, City of Apache Junction
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
This Resolution seeks amendments to public records access laws that will allow cities and towns to facilitate
and maintain timely and complete citizen’s access to public records while discouraging frequent, overbroad, or
abusive requests.1
Municipalities receive and process thousands of requests for public records each year. Most of these requests
are reasonable, coming from the media and persons who may or may not make other requests but who seek
specific and limited information. However, there are times when filling these requests is delayed because of
frequent, extensive, or excessive numbers of requests of other persons. Requests from these few individuals
require a significant and disproportionate amount of staff time to locate, review, redact, and prepare voluminous
amounts of documents or materials from multiple departments for inspection and/or copying. In some cases the
requesting party doesn’t review the records after having been notified they are available for inspection. This
creates unnecessary work for employees, delays other important work (including filling public records requests
from other persons), and drains the public coffers.
Some requests by these individuals are overbroad, such as requests for “All documents, e-mail, memoranda, etc.
pertaining to the city action ……..” These documents can cover many years, require production of hundreds or
thousands of documents, and involve research and review by several City departments. Again, after spending
many hours locating, assembling, redacting, and copying these records, so me are never inspected by the
requestor.
Municipalities also receive and process numerous requests for public records from only a few individuals. As an
example, Yuma received 46 requests in 44 business days from a single individual, including nine filed in one
day, while 25 other filled requests of the same individual waited to be reviewed. A single individual is
responsible for the following statistics:
Year Number of requests
2008 114
2009 120
2010 85
1 Nothing in this Resolution is intended to limit media access to public records.
26
2011 155
2012 81
2013 163
2014 (as of May 7) 36
This resolution requests amendment of Title 39 to give municipalities the ability, in limited instances, to place
reasonable restrictions on the number or frequency of requests made by a single individual and to limit certain
requests such as those with a broad scope or that cover an extensive time period, and where the individual is
unwilling to narrow the request. Such restrictions will allow cities to both comply with the spirit and intent of
public records laws while discouraging the frequent, numerous, overbroad, or abusive requests. These limited
restrictions will discourage abusive requests while maintaining public records access for all citizens. Those
individuals making frequent, numerous or overbroad requests may be limited in the number of requests
accepted within a specified time and have new requests held until all previous requests have been inspected.
Additional requests beyond these numbers would still be filled, however the taxpayer would not have to
continue bear costs of over-burdensome requests.
B. Relevance to Municipal Policy
Transparency is an essential component of a responsive, representative government. Cities endeavor at all times
to be open, accessible and responsive to their citizens. Making records available for inspection by the public and
the media is important to maintaining transparency and trust in government. Most citizens and the media are
conscientious and purposeful in their requests. However, requests by a few individuals that are overbroad or
abusive and require disproportionate amounts of city-wide staff time do not further the goal of transparency and
will hurt citizen access to, and the availability of, public records.
C. Fiscal Impact to Cities and Towns
Cities will still respond to public records requests in the spirit of transparen cy and openness in government.
Allowing cities some relief from abusive public records requests or to identify potentially abusive practices will
free staff to perform other governmental functions.
D. Fiscal Impact to the State
There will be no fiscal impact to the State. However an amendment could include public records requests of the
State, which will result in savings.
E. Contact Information
Name: Steven W. Moore Title: City Attorney
Phone: (928) 373-5050 ____________ Email: Steve.Moore@YumaAZ.gov
27
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #16
Urges the Legislature to pass legislation that bans the use of cell phones, smart phones or similar data devices
with one or both hands, particularly texting, while in control as the driver of a motorized vehicle.
Submitted by: City of Sedona, Bullhead City, City of Kingman
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
The purpose of this legislation is to ban the unsafe practice of using a cell phone, smart phone or similar data
devices with one or both hands while in control as the driver of a motorized vehicle, except in the case of an
emergency. The effect would be to limit the distraction of the vehicle driver, thereby improving public safety
while driving on public and private roads, thoroughfares and highways.
According to the National Highway Transportation Safety Administration (NHTSA), 43 states including D.C.
Puerto Rico, Guam and the U.S. Virgin Islands ban text messaging for all drivers. 12 states including D.C.,
Puerto Rico, Guam and the U.S. Virgin Islands prohibit all drivers from using handheld cell phones while
driving.
In 2009, several large scale naturalistic driving studies conducted by Virginia Tech Transportation Institute
concluded the following concerning the use of cell phones and texting while driving:
For light vehicles or cars:
Dialing a cell phone made the risk of crash or near-crash event 2.8 times as high as non-distracted
driving;
Talking or listening to a cell phone made the risk of crash or near-crash event 1.3 times as high as non-
distracted driving; and
Reaching for an object such as an electronic device made the risk of crash or near-crash event 1.4 times
as high as non-distracted driving.
For heavy vehicles or trucks:
Dialing a cell phone made the risk of crash or near-crash event 5.9 times as high as non-distracted
driving;
Talking or listening to a cell phone made the risk of crash or near-crash event 1.0 times as high as non-
distracted driving;
Use of, or reach for, an electronic device made the risk of crash or near-crash event 6.7 times as high as
non-distracted driving; and
Text messaging made the risk of crash or near-crash event 23.2 times as high as non-distracted driving.
Virginia Tech Transportation Institute also found that when a driver of a vehicle is texting, five seconds is the
average time your eyes are off the road. When traveling at 55mph, five seconds is enough time to cover the
length of a football field.
The NHTSA states the following facts (February 2014, Traffic Safety Facts Research Note DOT HS 811 884):
The percentage of drivers holding cell phones to their ears while driving stood at 5 percent in 2012. This
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rate translates into an estimated 660,000 vehicles driven by people using hand-held cell phones at a
typical daylight moment in 2012. It also translates into an estimated 9 percent of the vehicles whose
drivers were using some type of phone (either hand-held or hands-free) at a typical daylight moment in
2012.
Hand-held cell phone use continued to be highest among 16- to 24-year-olds.
The percentage of drivers visibly manipulating handheld devices while driving increased from 1.3
percent in 2011 to 1.5 percent in 2012.
Since 2007, the percentages of drivers’ visibly manipulating hand-held devices while driving has been
significantly higher among drivers age 16 to 24 than those of other age groups.
Multiple studies have concluded that using cell/smart phone or similar data devices with one or both hands
while in control as the driver of a motorized vehicle, and especially the practice of texting, dramatically
escalates the distraction rate of a driver and leads to statistically higher rates of injuries and fatalities in
motorized vehicle accidents. Studies have also shown that young drivers, ages 16 to 24 have the highest rates of
cell phone usage while driving a vehicle compared to all other age groups.
B. Relevance to Municipal Policy
A comprehensive statewide ban on the use of cell/smart phones with one or both hands including texting while
driving a motorized vehicle would be easy for all municipalities across the state to consistently enforce a law
that would improve public safety and save lives. It will also give citizens greater comfort in knowing that hands-
on cell/smart phone usage is prohibited everywhere at all times instead of learning which towns/cities/counties
have bans in place and the differences of the laws in each jurisdiction. Having one consistent policy across the
state should improve the chance for voluntary compliance among citizens.
C. Fiscal Impact to Cities and Towns
The fiscal impacts are unknown, however the decline in serious vehicular accidents, injury and death as a result
of such legislation should have a positive impact on the need for emergency response personnel and municipal
services, freeing up emergency personnel and equipment for other emergencies.
D. Fiscal Impact to the State
It is anticipated there would be little if any fiscal impact to the state from such a ban.
E. Contact Information
Name: Nicholas Gioello Title: Assistant to the City Manager & Government
Relations Manager
Phone: 928-203-5100 Email: ngioello@sedonaaz.gov__________________
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LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #17
Requests that the Legislature amend statute (A.R.S. § 9-821.01) to allow cities and towns to calculate the
majority of votes cast for a municipal office based on the total number of votes cast for that office.
Submitted by: Town of Gilbert, Town of Queen Creek, Lake Havasu City, Town of Clifton, Town of Oro
Valley, Bullhead City, Town of Snowflake, City of St. Johns
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
During the 2010 Legislative session, the Legislature amended A.R.S. § 9-821.01 to allow cities and towns to
adopt an ordinance to provide that the total of all votes tabulated for mayoral candidates constitutes the total
number of votes cast at the election for purposes of calculating whether a candidate for Mayor or City Council
has received the majority of votes. This amendment was necessary in order to ensure that the majority vote
threshold was based off only those voters who chose to vote on the local portion of the ballot when state offices
were also included.
In the 2012 Legislative Session, the Legislature passed HB 2826 Consolidated Election Dates; Political
Subdivisions, which required municipal elections to occur at the same time as the election of state officials.
Unfortunately, HB 2826 did not address the issue of the majority vote threshold in races for Council in
municipalities which have Mayors who serve a four-year term or those that do not directly elect their Mayor.
Therefore; at these elections, the majority threshold to win outright in the primary for Council candidates would
be based on the total number of votes cast in the election, regardless of whether those votes were cast for state
or local office. Since this vote threshold would likely be unachievable for a Council candidate and the winner(s)
would not be determined at the primary, it could force cities and towns the unnecessary expense of having to
fund a run-off/general election to determine the winner(s).
During the 2014 Legislative Session, the Legislature passed HB 2126 which recalculated the majority vote
threshold for Council candidates to be based off the total number of votes cast in the local election, divided by
the number of seats and then by two, but this was only a temporary fix for the 2014 election. This resolution
would seek to codify the same methodology used in HB 2126, permanently, making the majority vote
calculation threshold consistent for all cities and towns.
B. Relevance to Municipal Policy
The proposed resolution would affect non-charter cities and towns throughout the State that have four-year
Mayoral terms or do not directly elect their Mayor. The resolution would establish a consistent method that
would be applied to all municipal candidates for office at every election, rather than requiring a higher number
of votes to achieve a majority for elections when the office of Mayor is not included on the ballot. Without the
new calculation method and in years when the office of Mayor is not included on the ballot, cities and towns
could be required to hold a run-off/general election as they will likely not have any candidate achieve the
existing majority vote threshold.
C. Fiscal Impact to Cities and Towns
Without this resolution, affected cities and towns could be required to go to the additional expense of holding a
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general election. If adopted, this expense could be avoided if candidates receive a majority of votes and are
declared elected to municipal office in a primary election.
D. Fiscal Impact to the State
The proposed resolution does not have a fiscal impact to the State.
E. Contact Information
Name: Leah Hubbard Rhineheimer Title: Intergovernmental Relations Director
Phone: (480) 503-6773 ___ Email: leah.hubbard@gilbertaz.gov
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LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #18
Urges the Legislature and the Governor to partner with cities and towns for the operation and maintenance
of Arizona State Parks (ASP) under long term leases, for a nominal amount, and to participate financially by
providing for a dedicated funding mechanism to share a portion of the costs.
Submitted by: City of Yuma, City of Apache Junction, City of Flagstaff, City of Sierra Vista
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
When the State became unable to continue full support of its parks, local governments and non-profit groups in
Arizona stepped up to the plate and entered into short term agreements to operate and maintain the parks in or
near their jurisdictions (Alamo Lake, Boyce Thompson Arboretum, Fort Verde, Homolovi, Jerome, Lost
Dutchman, Lyman Lake, McFarland, Picacho Peak, Red Rock, Riordan Mansion, Roper Lake, Tombstone
Courthouse, Tonto Natural Bridge, Tubac Presidio, Yuma Territorial Prison State Historic Park, Yuma
Quartermaster Depot State Historic Park) so Arizona residents and visitors alike could continue to enjoy the rich
recreational experiences that state parks provide. These Agreements have proven to be successful. However,
the State has been reluctant to enter into leases for longer than three years. In order to make the current
partnerships between the State and local governments more viable over time and to encourage partnerships with
both public and private non-profit organizations, longer term leases (such as 10 years) and a continuing,
dedicated, and reliable funding stream from the State, local governments and non-profits will be needed.
Longer term leases and a dedicated funding stream will assure that Arizona’s State Parks remain open to the
public as a recreational, environmental, and cultural benefit that supports and generates tourism, and provides
important revenue to not only local, but also to the regional and statewide, economies. In addition, the
availability of the State Parks System will continue to provide a high quality of life for Arizona residents and
serve as an attraction to new residents.
B. Relevance to Municipal Policy
State Parks are essential to the rural economies and people of Arizona, and the continued threat to their
operation leaves a continued threat to the weakened local economies in rural Arizona. In addition, Arizona’s
natural environment, including access to the environment through availability of State Parks across the state
draws millions of tourists to Arizona, benefiting every entity that relies on tourism as part of its economy.
Increasingly, ASP is reliant on partnerships with local governments to make its state parks viable. This comes at
a time when local resources are shrinking.
C. Fiscal Impact to Cities and Towns (Newer statistics are not available.)
Visitors’ expenditures combined with their direct and induced impacts resulted in $21,171,627 in Federal
Government taxes and $22,762,326 in state and local government taxes. The total tax impact of Arizona State
Park visitors in 2007 was $43,933,953.
D. Fiscal Impact to the State
The economic benefit of the State Park System is statewide. Calculated at the state level for FY07, the total
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economic impact of Arizona State Parks (direct, indirect and induced) on the state was $266,436,582. This total
state income resulted in 2,397 direct jobs and 950 indirect jobs for a total of 3,347 jobs statewide. The jobs
provided were generated directly, through State Parks employment, but also indirectly, for the tourism industry
that is supported and enhanced by the existence of State Parks.
Visitors’ expenditures combined with their direct and induced impacts resulted in $21,171,627 in Federal
Government taxes and $22,762,326 in state and local government taxes. The total tax impact of Arizona State
Park visitors in 2007 was $43,933,953.
(Economic figures cited are from “The Economic Impact of Arizona State Parks 2007” study prepared by The
Arizona Hospitality Research & Resource Center, Center for Business Outreach and The W. A. Franke College
of Business, Northern Arizona University in February 2009.)
E. Contact Information
Name: Steven W. Moore Title: City Attorney
Phone: (928) 373-5050 Email: Steve.Moore@YumaAZ.gov
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LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #19
Urges the Governor and the State Legislature to develop and pass legislation that supports efforts to reduce
the shortage of health care professionals in the State of Arizona. The League encourages the Legislature to
consider: expanding the level of Graduate Medical Education (GME) funding; expanding medical school
capacity within the state universities; addressing issues affecting the attraction and retention of physicians,
and other health care professionals, from out-of-state; reducing obstacles to medical practice in Arizona;
and addressing any other major issues that affect a physician’s, and other health care professionals, decision
to locate or remain in Arizona to practice.
Submitted by: City of Sierra Vista, Town of Wickenburg, City of Bisbee
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Part II of the 2005 Arizona Physician Workforce Study, conducted by specialists from the University of
Arizona and Arizona State University, identified that since 1992 to 2004, Arizona’s physician supply is not
keeping up with its population growth. The situation has not gotten any better. Arizona has 219 physicians per
100,000 population, well below the national average of 293 per 100,000. Rural communities in the state are
affected by the shortage even more, with one county at under 60 physicians per 100,000. Specialty physicians
are particularly difficult to recruit and retain. By way of example, the City of Sierra Vista’s regional hospital is
now the only location in all of Cochise County in which a woman can deliver a baby outside of a setting in
which emergency services are available. In addition, as the Baby Boomer population ages, more of the older
doctors in rural communities will retire, potentially exacerbating the situation.
Since approximately 60% of physicians who complete their training in Arizona teaching hospitals remain to
practice within the state, enhancing the Graduate Medical Education (GME) program is a critical component to
addressing this shortfall, and has been identified by previous gubernatorial task forces. Also recommended were
efforts to reduce obstacles to medical practice in Arizona. Recruitment and retention of physicians is hampered
throughout the state by higher professional liability premiums as compared to other states, and this is certainly
an obstacle needing attention. Recent actions to reduce funding to the State’s Medicaid program will only
exacerbate the issue statewide. Now, more than ever, action is needed to retain existing physicians, and insure
Arizona is a desirable place to practice for others.
B. Relevance to Municipal Policy
Health care is a key component of the overall quality of life for any community. It is an attraction and retention
component for both business and military activities, both of which are the backbone of the state’s economy. An
adequate supply of physicians is the foundation of quality healthcare, and although most barriers to physician
recruitment and retention are beyond the direct control of local government, the health of our citizens should be
a strong consideration for local legislative input and advocacy. The National League of Cities has incorporated
citizen health in its overall federal legislative platform by developing and advocating for health programs for
children and youth.
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C. Fiscal Impact to Cities and Towns
There should be no negative fiscal impact on Cities and Towns. To the contrary, not only will there be an
intrinsic gain to Cities and Towns in overall quality of life of their residents if accessibility to health care is
improved, but all communities in the state can use improved health care as an economic development tool in the
future.
D. Fiscal Impact to the State
There are some solutions, such as investing in the graduate medical program that will require additional
investment by the state in medical education. However, some recommendations can be implemented with little
to no effect on state finances. But like the cities and towns, improvement in access to health care results in an
improvement in the ability of the State to attract corporations who value health care access as a major factor in
relocation to Arizona. In addition, more physicians in the rural areas of the state will reduce the number of trips
on already overcrowded roadways those residents from those areas make to the Phoenix or Tucson metropolitan
areas to seek treatment.
E. Contact Information
Name: Mary Jacobs Title: Assistant City Manager
Phone: 520-458-3315 Email: Mary.Jacobs@SierraVistaAZ.gov
35
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #20
The City of Douglas along with the co-sponsor cities urge the Governor and the State Legislature to develop
and pass legislation or engage in other activities that supports and advocates for the dedication of resources
to improve Arizona’s ports of entry with Mexico and related infrastructure, and will enhance international
trade and improve the global competitiveness for Arizona with Mexico.
Submitted by: City of Douglas, City of Bisbee, City of Sierra Vista, City of Marana, City of Marana,
City of Yuma
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution:
Mexico is Arizona’s top trading partner. Our shared border is the gateway for $26 billion worth of imports and
exports and 44 million people (crossings) each year. Mexican visitors spend approximately $7.3 million each
day in Arizona, which provides an annual impact of $2.3 billion. Trade with Mexico supports six million jobs in
the U.S. and tens of thousands jobs in Arizona. In addition, Mexico is now the third-ranked commercial partner
of the U.S. and the second largest market for U.S. exports.
Despite this wealth of opportunity, recent studies show that competing Border States such as Texas are far
outpacing Arizona when it comes to developing trade relations with Mexico. While Arizona exports to Mexico
totaled about $5.7 billion in 2011, in Texas the total was $87 billion. Mexico is the 13th largest economy in the
world, and in 2010, Mexico invested an unprecedented five percent of its Gross Domestic Product (GDP) in
infrastructure.
Arizona’s ports of entry face significant challenges, including aging infrastructure and an often inadequate
number of customs and border protection agents needed to staff these facilities. A heavy focus on security has
impacted the tourism industry by diverting investments from needed improvements and leaving a multibillion
dollar deficit in border infrastructure.
With 23 million northbound visitor border crossings and 373,000 northbound truck crossings, long waits at the
border and congestion north of our ports of entry suppress economic development. In addition, greater emphasis
is needed to upgrading southbound passenger vehicle and pedestrian crossings. According to the Arizona State
University North American Center for Transborder Studies, needed enhancements include staffing, technology,
infrastructure and communications.
Through the Arizona League of Cities and Towns, Arizona’s cities and towns should unite in support of
legislation or other policy measures that will enhance international trade and improve the global
competitiveness for Arizona with Mexico, the 13th largest economy in the world and this State’s number one
trading partner.
B. Relevance to Municipal Policy:
The vast majority of the economic benefit generated by trade passing through Arizona’s ports of entry is
realized within the State’s cities and towns.
The logistics centers, warehousing and distribution facilities, and value-added manufacturing centers for these
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commodities are located primarily within the State’s cities and towns, along with the associated sustainable
wage jobs that are created as a result of this economic activity. The economic multiplier effect that these jobs
create adds to the prosperity in these communities and enhances tax revenue at a time when every dollar of local
revenue is precious to the sustainability of cities and towns. Enhancing trade opportunities with Mexico will
only further stimulate the economies in Arizona’s cities and towns.
C. Fiscal Impact to Cities and Town:
As described above, enhancing international trade and improving the global competitiveness for Arizona with
Mexico will have a positive fiscal impact to cities and towns. Border communities bore the burden of well over
900 million legal crossings every year. Recognizing the desperate need to improve our ports and witnessing the
significant delays by the federal government to dedicate resources to these projects will mean that state, local
agencies and municipalities will need to step-in and contribute resources to prevent further harm to the
straggling state economy.
D. Fiscal Impact to the State:
Similarly, supporting the requested legislation and policies will have a positive fiscal impact to the State and
will further diversify our economic base. Failure to do so will sustain the advantage that other border states
currently enjoy over Arizona.
The border is clearly a dynamic region that attracts all aspects of social, economic, commercial and cultural like
of our state and in many ways the entire nation. Without the allocation of federal funding towards POEs and the
continuing dramatic reduction in border crossing traffic and increase in border wait times, Arizona will be at a
physical and economic security disadvantage.
E. Contact Information
Name: Ana Urquijo Title: Deputy City Manager
Phone: 520-458-3315 Email: Ana.Urquijo@douglasaz.gov
37
LEAGUE OF ARIZONA CITIES & TOWNS
Resolution #21
Urges the Governor and the State Legislature to develop and pass legislation that supports the long-term
retention of Arizona’s military installations, and provides opportunities to use the synergies connected to the
military operations in the attraction of new or expanded governmental and non-governmental missions or
businesses.
Submitted by: City of Sierra Vista, City of Bisbee, Town of Marana, City of Peoria, City of Yuma, City of
Peoria
* * * * * * * * * * * * *
A. Purpose and Effect of Resolution
Arizona’s military sector is an essential component of the state economy, and most local economies within the
state. There are five major military installations in Arizona, plus four principal National Guard operations.
According to a 2008 report by The Maguire Group, commissioned by the Arizona Department of Commerce at
the time, it is conservatively estimated that this sector produces over 96,000 direct, indirect and induced jobs in
the state, with over $9.1 billion in economic impact.
The Maguire report further quantified the amount of revenue Arizona’s military installations contribute directly
to state and local governments at just over $400 million annually, split nearly evenly between the two. In
general, jobs connected to the military are especially valuable to the Arizona economy because they are largely
unaffected by routine economic cycles, which means revenues associated with their presence are more stable.
The Maguire report noted “Arizona would do well to guard this economic asset and pres erve its viability.” It
further stated “Maintaining these operations and the jobs and economic output they support should be a priority
of state and local government.”
Support from Arizona’s local governments, through the Arizona League of Cities and Towns, for legislation
that could enhance military effectiveness or protect against efforts to erode military missions is critical in the
state’s long term success retaining Luke AFB, Davis-Monthan AFB, Fort Huachuca, Marine Corp Air Station
Yuma and the Yuma Army Proving Ground. As federal budget reductions continue, each of the existing
installations and their supporting contractors remain at risk of potential impacts, both small and large.
Arizona’s cities and towns must be unified in our support for the military, working together to identify
opportunities to demonstrate that support through such things as: encouraging officials from state and local
government to elevate needs identified by military installations for legislative action; supporting the continued
activity and existence of the Governor’s Military Affairs Commission; supporting funding for economic
development efforts at the state level to attract new/expanded military and military-connected missions and
businesses; encouraging the use and continued funding of the Military Installation Funds (MIF) to help mitigate
encroachment; and supporting legislative proposals regarding state land transfers to reduce potential
encroachment around military installations.
B. Relevance to Municipal Policy
At a time in which every dollar of local revenue is even more precious to cities and towns, we must guard
against inadvertent or blatant measures that could jeopardize existing military installations and the over $200
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million it directly contributes to local government. Encroachment is a major issue across the state, and is not
only associated with new subdivisions. Water use, electromagnetic interference, lighting, airspace and other
issues can ultimately affect military missions, or could result in the state’s five major bases not being considered
for realigned missions in the future.
The Maguire study excluded military-related businesses such as Raytheon, Boeing and those associated with the
redeveloped Williams Center in Gilbert, which take advantage of synergies with the state’s military community
but separately add hundreds of millions more in economic impact to the state and local economies. But if the
military missions are not retained, then opportunities to grow or expand these types of businesses, and the
resulting impact on the state and local economy, could be missed.
C. Fiscal Impact to Cities and Towns
Failure to protect such a valuable asset to the state will have a direct and potentially devastating effect on local
government. The military industry directly contributes approximately $200 million in tax revenues annually to
local government alone.
D. Fiscal Impact to the State
Similarly, Arizona’s military installations contribute about $200 million in revenue annually to the state
government. Any loss of missions could erode that revenue, as well as impact future expansion opportunities for
both military and non-military missions.
E. Contact Information
Name: Mary Jacobs Title: Assistant City Manager
Phone: 520-458-3315 Email: Mary.Jacobs@SierraVistaAZ.gov