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HomeMy WebLinkAbout150305P z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 1 of 3 NOTICE OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 6:30 P.M. WHEN: THURSDAY, MARCH 5, 2015 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 Councilmember Henry Leger Councilmember Nick DePorter Councilmember Alan Magazine Councilmember Cassie Hansen Vice Mayor Cecil A. Yates z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 2 of 3  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Mr. Bob Turner, of the Baha’i Faith of Fountain Hills  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) ROTATION OF THE VICE MAYOR position to Councilmember Dennis Brown, pursuant to Section 2-2-2 of the Fountain Hills Town Code, that each member of the Council, except the Mayor, shall serve an eight-month term as Vice Mayor and shall perform the duties of the Mayor during his absence or disability.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor may review RECENT EVENTS attended relating to ECONOMIC DEVELOPMENT. ii) Presentation by Town Manager Ken Buchanan and Finance Director Craig Rudolphy regarding the Town’s Budget Report for all funds for the Quarter ending December 31, 2014. 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 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 February 5 and 19, 2015. 2. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Desert Diamond Distillery (John Patt) to be located along Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13, through Sunday, March 15, 2015. 3. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Arizona Stronghold Vineyards (Justin Ove) to be located along the Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13 through Sunday, March15, 2015. z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 3 of 3 4. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Passion Cellars (Arlene Damonico) to be located along Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13, through Sunday, March 15, 2015. REGULAR AGENDA ITEMS 5. CONSIDERATION of the request by the Public Art Committee to ACCEPT A DONATED BRONZE SCULPTURE titled, "Vigilance" for placement in Fountain Park, and the Public Art Committee’s REQUEST FOR $2,000 from the Public Art Fund to be used towards the cost of the base. 6. CONSIDERATION of the request by the Public Art Committee TO ACCEPT A DONATED BRONZE SCULPTURE titled, "Second Mesa Maiden" for placement in Fountain Park. 7. CONSIDERATION of APPOINTING one (1) citizen to serve on the McDowell Mountain Preservation Commission for a term beginning March 9, 2015 and ending December 31, 2017. 8. CONSIDERATION of RESOLUTION, 2015-07, adopting the Town of Fountain Hills Grant Administration Policy. 9. CONSIDERATION of RESOLUTION 2015-04, designating the islands in the Fountain Park Lake as natural green areas. 10. DISCUSSION AND CONSIDERATION of APPROVING ACTION STEPS RECOMMENDED at the January 29, 2015 Council Retreat. 11. CONSIDERATION of RATIFYING Strategic Planning Goals and Operational Priorities for FY2015-16. 12. SEMI-ANNUAL REPORT on the PROGRESS OF IMPLEMENTING Council’s Strategic Planning Goals and Operational Priorities for FY 2014-15. 13. 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. 14. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 15. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 16. ADJOURNMENT. DATED this 26th day of February, 2015. 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. z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 1 of 3 NOTICE OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 6:30 P.M. WHEN: THURSDAY, MARCH 5, 2015 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 Councilmember Henry Leger Councilmember Nick DePorter Councilmember Alan Magazine Councilmember Cassie Hansen Vice Mayor Cecil A. Yates z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 2 of 3  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Mr. Bob Turner, of the Baha’i Faith of Fountain Hills  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) ROTATION OF THE VICE MAYOR position to Councilmember Dennis Brown, pursuant to Section 2-2-2 of the Fountain Hills Town Code, that each member of the Council, except the Mayor, shall serve an eight-month term as Vice Mayor and shall perform the duties of the Mayor during his absence or disability.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor may review RECENT EVENTS attended relating to ECONOMIC DEVELOPMENT. ii) Presentation by Town Manager Ken Buchanan and Finance Director Craig Rudolphy regarding the Town’s Budget Report for all funds for the Quarter ending December 31, 2014. 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 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 February 5 and 19, 2015. 2. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Desert Diamond Distillery (John Patt) to be located along Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13, through Sunday, March 15, 2015. 3. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Arizona Stronghold Vineyards (Justin Ove) to be located along the Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13 through Sunday, March15, 2015. z:\council packets\2015\r150305\150305a.docx Last Printed: 2/25/2015 1:44 PM Page 3 of 3 4. CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Passion Cellars (Arlene Damonico) to be located along Avenue of the Fountains, in conjunction with the Fountain Hills Fine Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13, through Sunday, March 15, 2015. REGULAR AGENDA ITEMS 5. CONSIDERATION of the request by the Public Art Committee to ACCEPT A DONATED BRONZE SCULPTURE titled, "Vigilance" for placement in Fountain Park, and the Public Art Committee’s REQUEST FOR $2,000 from the Public Art Fund to be used towards the cost of the base. 6. CONSIDERATION of the request by the Public Art Committee TO ACCEPT A DONATED BRONZE SCULPTURE titled, "Second Mesa Maiden" for placement in Fountain Park. 7. CONSIDERATION of APPOINTING one (1) citizen to serve on the McDowell Mountain Preservation Commission for a term beginning March 9, 2015 and ending December 31, 2017. 8. CONSIDERATION of RESOLUTION, 2015-07, adopting the Town of Fountain Hills Grant Administration Policy. 9. CONSIDERATION of RESOLUTION 2015-04, designating the islands in the Fountain Park Lake as natural green areas. 10. DISCUSSION AND CONSIDERATION of APPROVING ACTION STEPS RECOMMENDED at the January 29, 2015 Council Retreat. 11. CONSIDERATION of RATIFYING Strategic Planning Goals and Operational Priorities for FY2015-16. 12. SEMI-ANNUAL REPORT on the PROGRESS OF IMPLEMENTING Council’s Strategic Planning Goals and Operational Priorities for FY 2014-15. 13. 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. 14. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 15. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 16. ADJOURNMENT. DATED this 26th day of February, 2015. 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. QUARTERLY FINANCIAL REPORT 2nd Quarter Ending December 2014 March, 2015 The General Fund is the Town’s main operating fund and is used to fund general government operations including police and fire, parks, Community Center; other funds are restricted for specific purposes. ALL FUNDS REVENUES March 5, 2015 2 Operating 34% HURF 5%Dev Fees 1%Special Revenue 1% Excise Tax 2%Debt Svc MPC 4% Debt Svc GO 4% Capital Projects 49% Revenues by Fund Six Months Ending December 31, 2014 Total $19.7M (includes $7.6M bond proceeds) OPERATING FUND (Consists of General Fund, Public Art Fund, Internal Service Fund and Equipment Replacement Fund) March 5, 2015 3 OPERATING FUND REVENUES BY SOURCE Through December 31 Fountain Hills local sales tax and State shared revenues account for 88% of the Operating Funds. General Fund revenues are at 96.4% of budget. March 5, 2015 4 Local Sales Tax 52%State Income Tax 21% State Sales Tax 15% Other 9% TOWN OF FOUNTAIN HILLS SIX MONTHS ENDING 12/31/2014 OPERATING FUND REVENUE Local Sls Tax $3.5M State Inc Tax $1.4M State Sls Tax $1.0M Other $0.8M TOTAL $6.5M OPERATING FUND REVENUE Local sales tax revenues are at 96.8% of budget; State Shared revenues are at 97.8% of budget –permit revenues are level with projections but court and other revenue are below projections. March 5, 2015 5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0Local Sales Tax State Shared Revenues Permits and Licenses Fines and Fees OtherMillionsTOWN OF FOUNTAIN HILLS SIX MONTHS ENDING 12/31/2014 OPERATING FUND REVENUES FY13-14 FY14-15 FY14-15 BUDGETTOTAL $6.5M STATE SHARED REVENUES State Shared revenues represent 34.8% of General Fund revenue and is distributed to cities/ towns based on population. Income tax is based on two years prior; VLT is now in HURF for pavement management. March 5, 2015 6 $0.0 $0.5 $1.0 $1.5 $2.0 State Income Tax State Sales TaxMillionsTOWN OF FOUNTAIN HILLS SIX MONTHS ENDING 12/31/2014 STATE SHARED REVENUES FY13-14 FY14-15 Budget TOTAL $2.3M March 5, 2015 $3,612,052 = 92.8% OF BUDGET Local Sales tax represents 52% of Operating Fund revenue. Increased 3.3% over prior year LOCAL SALES TAX 7 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 Budget 5 Yr Average TOTAL SALES TAX COLLECTIONS BY YEAR 1Q FY10 THROUGH 2Q FY15* *excludes construction activity March 5, 2015 $1.7M = Increase of 5.1% over prior year LOCAL SALES TAX - RETAIL 8 $0.5 $1.0 $1.5 $2.0 FY10 -11 FY11 -12 FY12-13 FY13-14 FY14-15 Budget 5 Yr Average Retail Activity July through December FY11 thru FY15 millions March 5, 2015 $358,310 = Increase of 8.8% over prior year LOCAL SALES TAX - RESTAURANT 9 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 Budget 5 Yr Average Restaurant/Bar Activity July through December FY11 thru FY15 LOCAL SALES TAX - TELECOM March 5, 2015 $774,749 = Decrease of 0.1% from prior year 10 $250,000 $500,000 $750,000 $1,000,000 FY10-11 FY11 -12 FY12-13 FY13-14 FY14 -15 Budget 5 Yr Average Trans/Telecommunications Activity July through December FY011 thru FY15 LOCAL SALES TAX - CONSTRUCTION March 5, 2015 50% of this revenue funds capital projects $489,195 = Increase of 32.2% over prior year 11 $0 $200,000 $400,000 $600,000 FY10-11 FY11-12 FY12 -13 FY13 -14 FY14-15 Budget 5 Yr Average Construction Sales Tax Activity July through December FY11 thru FY15 March 5, 2015 Compared to last fiscal year, Operating Fund expenditures increased by 11.6% over the same period. 12 MAYOR & COUNCIL 1% ADMINISTRATION 20% MUNICIPAL COURT 2% DEVELOPMENT SERVICES 13% COMMUNITY SERVICES 17% FIRE & EMERGENCY MED 24% LAW ENFORCEMENT 23% Operating Fund Expenditures by Department Six Months Ending December 31, 2014 Total $7.3M DEPARTMENT 2QTR FY13 EXPENDITURES 2QTR FY14 EXPENDITURES Administration $1,128,699 $950,750 Law Enforcement $1,447,954 $1,533,518 Fire & Emergency Medical $1,566,111 $1,781,213 Development Services $744,843 $740,274 Community Services $962,617 $990,584 Municipal Court $198,770 $163,095 Mayor & Council $39,539 $39,705 OTHER FUNDS March 5, 2015 13 HIGHWAY USER REVENUE FUND HURF revenues are derived from gasoline taxes and distributed based on population; VLT revenues are now included in HURF for pavement maintenance. March 5, 2015 $1,059,687 = Increase of 8.4% over prior year (including Vehicle License Tax) 14 $516,272 $565,253 $585,386 $645,969 $597,047 $389,757 $410,986 $433,500 $39,579 FY11-12 FY12-13 FY13 -14 FY14-15 FY14-15 Budget $.0 $.2 $.4 $.6 $.8 $1.0 $1.2 TOWN OF FOUNTAIN HILLS PERIOD ENDING 12/31/2014 HIGHWAY USER REVENUE FUND REVENUES HIGHWAY USERS TAX VEHICLE LICENSE TAX IN-LIEU FEES TOTAL $1.1M IN FY14-15 HURF EXPENDITURES March 5, 2015 Council priority for FY14-15 is still pavement maintenance. The HURF fund is accumulating money this fiscal year to allow for a project early in FY15-16. 15 ADMINISTRATION 17% LEGAL SERVICES 3% OPEN SPACE 22% PAVEMENT MAINTENANCE 24% STREET SIGNS 7% STREET SWEEPING 8% TRAFFIC SIGNALS 12% VEHICLE MAINTENANCE 7% HURF Expenditures Six Months Ending December 31, 2014 TOTAL $0.5M RESTRICTED FUNDS March 5, 2015 16 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Dev Fees Special Revenue Excise Tax Debt Svc MPC Debt Svc GO Capital Projects 90,946 129,420 357,589 815,524 876,708 9,628,495 268 103,855 1,318,544 62,100 92,342 400,607 TOWN OF FOUNTAIN HILLS SIX MONTHS ENDING 12/31/2014 OTHER FUNDS REVENUES & EXPENDITURES Revenues Expenditures FUND BALANCE Fund balance includes Operating Fund reserves that are not available for appropriation; other funds are restricted for specific purpose. Funds are invested only in government securities according to the Town’s adopted investment policy. March 5, 2015 17 Rainy Day Fund 1,345,200$ General Fund 5,730,390 Public Art Fund 17,259 Internal Service Fund (12,114) Vehicle Replacement Fund 456,361 Operating Funds 7,537,096$ Highway User Revenue Fund (HURF)1,111,739 1,111,739 Special Revenue Fund 18,623 Court Enhancement Fund 262,194 Cottonwoods Maintnenance District Fund 11,390 Special Revenue Funds 292,207 Downtown Strategy Fund 1,005,892 Economic Development Fund 70,358 Tourism Fund 52,158 Excise Tax Funds 1,128,408 General Obligation Debt Service Fund 650,340 Eagle Mountain CFD Debt Service Fund 221,976 MPC Debt Service Fund 753,424 Debt Service 1,625,740 Capital Projects Fund 14,540,043 Facilities Replacement Fund 143,772 Capital Projects 14,683,815 Law Enforcement 203,484 Fire & Emergency 63,599 Streets 407,921 Parks & Recreation 168,413 Open Space 1,654,422 Library/Museum 43,445 Development Fees 2,541,284 Grand Total 28,920,289$ Fiscal Quarter Fund Balances 12/31/2014 SUMMARY •Operating Fund revenues and expenditures are facing challenges in the current year •Reserve fund balances remain acceptable for all funds •Operating Fund revenues are 3.6% under budget but higher (6.3%) than last fiscal year •Operating Fund expenditures are 5.7% over budget and 11.6% higher than last fiscal year •Pavement management remains a priority and is funded through HURF and Vehicle License Tax revenues •Local economic indicators remain stable February 19, 2015 18 TOWN OF FOUNTAIN HILLS QUARTERLY BUDGET REPORT DECEMBER 2014 2 Where does the money come from and where does it go? Operating 34% HURF 5%Dev Fees 1%Special Revenue 1%Excise Tax 2%Debt Svc MPC 4% Debt Svc GO 4% Capital Projects 49% Revenues by Fund Six Months Ending December 31, 2014 Total $19.7M (includes $7.6M bond Operating 63% HURF 5% Dev Fees 0% Special Revenue 1% Excise Tax 11% Debt Svc MPC 0% Debt Svc GO 1%Capital Projects 19% Expenditures by Fund Six Months Ending December 31, 2014 Total $11.6M 3 Operating Fund Revenues For the six month period ending December 31, 2014, total Operating Fund revenues (General Fund, Public Art Fund, Internal Service Funds) were received at 96.4% of budgeted amounts and $398,826 higher than the same time period last fiscal year (an increase of 6.3%). Categories where revenues are higher than the previous year are the State income tax (up 8.5%) as well as Licenses & Permits (up 47.9%). Total Operating Fund revenues for this fiscal period are $6,710,180. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Operating Fund $6,311,354 $6,710,180 96.4% $13,925,003 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Local Sales Tax State Income Tax State Sales TaxMillionsTOWN OF FOUNTAIN HILLS SIX MONTHS ENDING 12/31/2014 MAJOR REVENUE SOURCES FY13 -14 FY14 -15 Budget TOTAL $5.9 The three major revenues in the chart above represent 86.5% of Operating Fund revenues, and as such, provide key indicators of the Town’s overall economic condition and performance. Local sales tax collections have increased back to FY09 levels (4.3% over the same period last year). This total includes construction activity of which 50% is transferred to the Capital Projects Fund. State sales tax is 4.6% higher and income taxes are 8.5% higher than last year as projected; vehicle license taxes are 5.4% higher compared to last year (this revenue source is derived from vehicle registrations and is now included in the HURF fund). Overall, these major revenue sources are at 97.8% of the budget for the fiscal year. 4 State Shared Revenues State Shared Revenues include a distribution of the State income and sales taxes returned to the Town based on its population in relation to the total population of all incorporated cities and towns. The income tax funds are distributed from tax collections from two years prior to the fiscal year in which the Town receives the funds. Sales taxes are distributed to cities and towns three months after the actual sales activity occurs. These revenues are distributed monthly through a distribution from the State Treasurer’s Office. The revenues from these categories total $2,333,777 which is $149,755 or 6.9% higher than the same time period last year – the increase in revenue was anticipated based on projections by the Arizona League of Cities and Towns. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate State Income Tax $1,254,495 $1,361,216 100.0% $2,722,248 State Sales Tax 929,527 972,561 94.9% 2,048,760 Fire Insurance Premium Tax 0 0 0.0% 35,000 Local Sales Tax (2.6%) The fiscal quarter revenue for this category totals $4,101,247 (including all funds), which is 96.8% of projections. Compared to the same time period as last year, the total revenues are 6.5% higher. Wholesale/Retail: A retail sales tax of 2.6% is collected for the sale of all tangible personal property including grocery, clothing, home and garden, autos and other related retail activity. This revenue source is sensitive to changes in the economy and can fluctuate from one fiscal year to another. The revenues for this category total $1,726,636 which is 87.7% of projections; compared to last fiscal year, revenues increased by 5.5%. Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. The revenues for this category total $291,748, which is 83.0% of projections; compared to last fiscal year, revenues are up by 8.8% and higher than any other previous year. Communications/Utilities/Transportation: Utilities, such as Chaparral City Water, cellular telephone companies and Century Link, are taxed at a rate of 2.6% in the Town as well as cellular phone charges. The revenues for this category total $774,749, which is 107.0% of what was anticipated; compared to last fiscal year, revenues are down by 1.1%. Construction Contracting: This revenue is generated from the 2.6% tax on new home and business construction as well as improvements to real property. Like retail sales tax, this revenue source is considered to be volatile as it is strongly impacted by changes in the economy. The largest sources of revenues in this category come from residential homebuilders. The revenues 5 for this category total $489,195, which is 148.1% of what was budgeted; compared to last fiscal year, revenues are up 33.9%. The Council has dedicated 50% of this revenue to the Capital Projects Fund for future appropriation. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Local Sales Tax $3,849,400 $4,101,247 96.8% $8,470,980 Construction Transp/Utilities/Comm Wholesale/Retail Restaurants/Bars Ins/Real Estate Services Other $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 Local Sales Tax Collections by Type (in millions) July -December FY11 through FY15 FY10 -11 FY11 -12 FY12 -13 FY13 -14 FY14 -15 Local sales tax makes up 50.5% of Operating Fund revenues; for the period ending December 31, 2014, collections were $4.1M for all funds ($3.4M in the Operating Fund). Retail and restaurant/bar activities represent 49.2% of total collections; telecommunications and utilities represent another 18.9%. Construction revenues collected this fiscal period total $489,195, which is a 33.9% increase over last fiscal year. Retail sales tax collections increased 5.5% over the same period last year; restaurant/bar collections are up 8.8% from the same period last year. 6 Building Permit Revenue Revenues in this category include both commercial and residential permitting activity with the majority of revenues coming from residential activity. This fiscal period, revenues for this category total $83,478 or 63.9% of the period budget. New housing permits issued for the fiscal period are 13 single family, 6 multi-family and 8 commercial. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Building Permit Fees $53,324 $83,478 63.9% $390,900 Court Revenue This category summarizes several revenue funds collected by the court. The court generates various revenues through fines, sanctions and court orders. These fines include criminal, civil, Town code violations and diversion fees for defensive driving school attendees. Reimbursement fees for required background checks, incarceration costs, and Public Defender costs are also collected by the court and included in this category. This fiscal period, revenues for this category total $66,500 which is $20,182 (23.3%) less than last year’s same fiscal period and 88.7% of the budgeted amount. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Court Fines & Fees $86,682 $66,500 88.7% $150,011 License Revenue Revenues in this category include both business and animal licensing activity with the majority of revenues coming from business licenses. Current fiscal revenues for these two categories total $70,164 or 92.1% of the fiscal period budget. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Business License Fees $48,600 $50,905 95.5% $111,305 Animal License Fees 20,625 19,259 107.1% 41,006 7 Operating Fund Expenditures The Operating Fund accounts for most of the day to day operations of the Town, including Police, Fire and Emergency Medical Services, Development Services, Community Services, Court, Council and Administration functions. At the end of the second quarter, 105.7% of the period budget has been expended. YTD FY13-14 YTD FY14-15 % YTD FY14-15 Budget Year End Estimate Salaries and Benefits 1,717,989$ 1,709,224$ 98.2%3,482,633$ Supplies and Services 743,732 663,632 81.7%1,625,389 Contractual Services 3,706,837 3,966,922 100.4%7,898,867 Internal Services 155,410 903,689 281.9%641,187 Other 197,340 33,152 55.7%119,102 Grand Total all Categories 6,521,308$ 7,276,619$ 105.7%13,767,178$ FY14-15 Expenditures by Category - Operating Fund • Salaries and benefits represent one fourth (23.5%) of the total Operating Fund budget and accounts for all staff with the exception of streets employees who are funded through a separate Highway User Revenue Fund (HURF). • Supplies and Services, including Utilities represents 9.1% of the total Operating Fund budget and includes items such as facility maintenance, utilities, office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid expending more than revenues received. • Contractual services represent 54.5% of the Operating Fund budget and include contracts for law enforcement (Maricopa County Sheriff’s Office) and fire and emergency medical services (Rural Metro). The Town utilizes contracts for specialized or one-time services that do not require the addition of full time staff. • Internal Services are charged to the Operating Fund budget by department and transferred to provide monies for future scheduled replacement of vehicles and equipment. • Other includes transfers that are made at the end of the fiscal year from the Operating Fund (Community Center) to the Debt Service Fund for the annual bond repayment due in June as well as contingency and other minor expenditures. 8 Department summary Department FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Mayor & Council 40,112$ 45,797$ 114.0%80,318$ Administration 1,075,166 1,471,610 134.7%2,184,690 Municipal Court 164,898 145,342 105.6%275,165 Development Services 901,159 925,329 91.9%2,014,506 Community Services 1,020,883 1,264,010 106.0%2,385,770 Fire & Emergency Medical 1,783,491 1,757,888 102.0%3,447,099 Law Enforcement 1,535,599 1,666,641 98.6%3,379,630 Grand Total 6,521,308$ 7,276,617$ 105.7%13,767,178$ FY14-15 Expenditures by Department • The Mayor & Council and Municipal Court budgets represent a total 2.6% of the Operating Fund expenditures. • Administration includes the Town Clerk, Town Manager, Finance, Human Resources, Volunteer Program, Economic Development, Information Technology and Customer Service and represents 20.2% of the Operating Fund budget. The Department is responsible for business recruitment and retention, Town Manager activities, all licensing activity (business, animal, liquor), customer service, audits, public meetings, Channel 11, Town website, elections, Town Attorney, Town Prosecutor, budget and financial reporting, etc. • Development Services (12.7% of Operating Fund expenditures) includes programs such as public works, engineering, traffic and capital projects, open space maintenance, stormwater management, and facilities maintenance. Divisions included in Development Services are Planning, Zoning, Code Enforcement, Environmental, Facilities Maintenance, Building Safety, and Mapping & Graphics. • Community Services (17.4% of Operating Fund expenditures) includes the Town’s park system (Fountain Park, Golden Eagle Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for Seniors. This department includes the cost of the annual debt service payment that is transferred to the Debt Service Fund each year to cover the semi- annual payments in December and June. • Fire & Emergency Medical Services represents 24.2% of the Operating Fund budget and includes the contract with Rural Metro for fire and emergency medical services; the budget also includes expenditures for maintenance of the fleet which is Town owned, fire stations and equipment. 9 • Law Enforcement represents 22.9% of the Operating Fund budget and includes the contract with Maricopa County Sheriff’s Office as well as costs for jail incarceration fees, which are costs for holding individuals at the jails and billed by Maricopa County. The Town also has a contract with Maricopa County for animal control and shelter services that is included within the Law Enforcement budget. MAYOR & COUNCIL 1% ADMINISTRATION 20% MUNICIPAL COURT 2% DEVELOPMENT SERVICES 13% COMMUNITY SERVICES 17% FIRE & EMERGENCY MED 24% LAW ENFORCEMENT 23% Operating Fund Expenditures by Department Six Months Ending December 31, 2014 Total $7.3M 10 Other Funds: • Highway User Revenue Fund (Streets) • Excise Tax (Downtown Strategy, Economic Development and Tourism) • Special Revenue (Grants) • Capital Projects • Development Fees 11 Highway User Revenue Fund (HURF) – Streets FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate State Shared Revenues $975,143 $1,056,955 102.6% $2,061,094 In Lieu Fees 2,222 2,732 45.5% 12,000 Transfers 994,000 562 0.0% 0 Miscellaneous & Other 4,041 7,245 193.2% 7,500 This fund supports most of the Town’s street and traffic operations and is managed by the Development Services Department. Revenues were received less than budgeted therefore expenditures did not exceed the available resources. The fund is primarily supported by the State Highway User Revenue Fund (60.5%), Vehicle License Taxes (38.5%) and from payments for construction in the rights of way (in lieu payments). HURF revenues are distributed partially on a population formula and partially on the county of origin for gasoline sales. There is a State constitutional restriction that these funds be used solely for street and highway purposes. The Town bills contractors when they make cuts in the Town’s rights of way and has recovered $2,732 in lieu fees. Restitution fees are recovered from damage to Town property as a result of vehicle accidents and included in miscellaneous & other. YTD FY13-14 YTD FY14-15 % YTD FY14-15 Budget Year End Estimate Administration 91,363$ 94,608$ 110.8%85,358$ Adopt A Street 2,042 1,647 68.6%2,402 Legal Services 11,301 16,145 134.5%12,000 Open Space 137,069 119,421 86.6%137,932 Pavement Maintenance 1,694,898 130,404 17.5%746,625 Street Signs 46,651 38,999 89.9%43,399 Street Sweeping 37,034 45,806 99.0%46,282 Traffic Signals 52,743 63,546 83.6%76,017 Vehicle Maintenance 39,429 40,959 94.0%43,588 Grand Total HURF 2,112,530$ 551,535$ 46.2%1,193,603$ HURF Expenditures by Program - Quarter Ending 12/31/2014 • The Administration program for the Streets division includes activities that are not directly related to a program, for example, insurance, fuel, utilities, etc.). 12 • Open Space program includes maintenance of the medians; the largest component of this category is the contract for landscaping and water usage. • Pavement Maintenance program includes personnel costs related to road repair and maintenance, such as pot holes and curb replacement. A major expenditure for pavement maintenance has been deferred until the next fiscal year to allow funds to accumulate. • Street Signs program includes personnel and maintenance costs for the Town’s 6,800 street signs. • Street Sweeping program’s major expenditure is the contract costs for street sweeping. Arterial streets are swept every three weeks and residential streets every eight weeks. • Traffic Signals program includes personnel and electric costs for the Town’s 13 Traffic signals. Costs include hardware and programs for maintenance and synchronization of the signals. • Vehicle Maintenance program includes personnel as well as costs to maintain the Town’s fleet of 42 vehicles and heavy equipment. 13 Excise Tax - All Funds (Downtown Strategy, Economic Development, Tourism) FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Revenues $154,278 $357,589 146.9% $486,940 These funds are separate operating funds from the Town’s Operating Fund and they support the Town’s downtown strategy, economic development including business retention program, and tourism. Beginning in FY13-14, the Excise Tax Fund was separated into two separate functions supported by a portion of the local sales (excise) tax (.1% of the 2.6%). Downtown Strategy focus is for infrastructure improvements and development; Economic Development focus is dedicated to Town-wide economic development and the Economic Development Plan implementation. The Economic Development Fund also provides the funding for the Tourism Fund. YTD FY13-14 YTD FY14-15 % YTD FY14-15 Budget Year End Estimate Salaries and Benefits -$ 45,442$ 93.7%97,030$ Supplies and Services 4,469 9,689 17.1%113,190 Contractual Services 86,505 81,136 116.8%138,875 Internal/Transfers - 1,182,277 126.5%1,869,900 Grand Total all Categories 90,974$ 1,318,544$ 118.8%2,218,995$ Excise Tax Funds Expenditures by Category - Quarter Ending 12/31/2014 • Salaries and benefits, which represent 3.4% of the total Excise Tax operating budget, replaced contractual services after the hiring of the Town’s Economic Development Specialist and Tourism Coordinator. • Contractual services and supplies represent 6.9% of the budget and include contracts for downtown holiday lighting, Greater Phoenix Economic Council (GPEC), and planned professional services for marketing strategies. • Internal/Transfers reflect the expenditures in the Capital Projects Fund for the Avenue of the Fountains median project. This project has been completed. 14 Development Fees These fees are placed into restricted funds with revenues paid by developers at the time of new residential and commercial construction permits. The decrease in permit activity over the same time period as last year is related to the development fee study that implemented new fees as of August 1, 2014. The study was presented to the public at a Public Hearing in February, 2014 and resulted in the elimination of several categories of fees and changes in the remaining categories. During the first six months of this fiscal year, there have been twenty seven (27) permit applications including development fees. FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Law Enforcement 2,397$ 730$ 1460.0%100$ Fire/Emergency 4,357 13,021 521.9%4,990 Streets 112,913 33,804 0.0%- Parks/Rec 44,478 36,134 963.6%7,500 Open Space 5,439 6,770 0.0%- Library/Museum 1,669 487 0.0%- Grand Total All Funds 171,253$ 90,946$ 1444.7%12,590$ FY14-15 Revenues by Category - Development Fees FY13-14 Actual FY14-15 Actual % YTD FY14-15 Budget Year End Estimate Law Enforcement 1,707$ -$ 0.0%203,000 Fire/Emergency 1,707 - 0.0%47,000 Streets 8,756 - 0.0%275,000 Parks/Rec 6,832 - 0.0%- Open Space 7,112 268 0.0%- Library/Museum 1,707 - 0.0%42,500 Grand Total All Funds 27,821$ 268$ 0.1%567,500$ FY14-15 Expenditures by Category - Development Fees 15 Capital Projects Fund Capital projects are funded with accumulated reserves that were surplus revenues in the Operating Fund in addition to 50% of sales tax revenues that are derived from construction activity. Some projects are funded with proceeds from grants or developers; the table below is a summary of revenues for the fiscal period ending December 31, 2014. YTD FY14-15 Actual % YTD FY14-15 Budget FY14-15 Budget Construction Sales Tax 244,598$ 75.4%324,600$ Developer Fee 200,000 100.0%200,000 Bond Proceeds 7,907,086 96.4%8,200,000 Grants - 0.0%4,314,000 Misc.32,001 0.0%- Interest Income 23,285 117.6%19,800 Transfers In 1,077,753 46.8%2,302,000 Grand Total CIP Fund 9,484,723$ 61.7%15,360,400$ FY14-15 Capital Projects Fund Revenues 16 The table below summarizes the projects that were included in the current year budget including the original budgeted expenditure, the year to date expenditures and the percentage of fiscal year end expenditures. Some of the projects have not started yet and therefore have no expenditures. YTD FY14-15 Actual % YTD FY14-15 Budget FY14-15 Budget 94$ 0.0%1,640,000$ 9,530 19.1%50,000 835 0.8%100,000 - 0.0%200,000 1,079,308 70.8%1,525,000 486 0.0%- 10,300 0.4%2,510,000 107,607 89.7%120,000 - 0.0%100,000 12,270 0.9%1,394,750 - 0.0%300,000 55 0.3%20,000 233 0.1%325,000 458,351 10.5%4,360,000 - 0.0%40,000 204,029 2.5%8,200,000 - 0.0%296,000 - 0.0%57,000 - 0.0%380,000 5,991 1.5%400,000 320,174 168.4%190,080 2,209,263$ 9.9%22,207,830$ Grand Total Capital Projects CONTINGENCY T5011 TS-PALISADES & SAGUARO S6053 FOUNTAIN HILLS BLVD SHOU S6003 UNPAVED ALLEY PAVING PRO S6005 SHEA BLVD WIDENING S6009 DOWNTOWN SIDEWALK PROGRA S6010 SAGUARO BLVD RECONSTRUCT S6054 HIGHWAY SAFETY IMPROVEME FY14-15 Expenditures by Category - Capital Projects S6056 SHEA BLVD EB BIKE LANE & F4027 ASSISTANCE TO FIREFIGHTE F4029 CIVIC CENTER IMPROVEMENT P3011 FOUNTAIN PARK, PHASE VI P3022 FOUNTAIN LAKE WATER QUAL P3024 URBAN TRAIL IMPROVEMENTS D6030 DRAINAGE-ASHBROOK WASH C D6047 MISC DRAINAGE IMPROVEMEN E8502 DOWNTOWN VISION PLAN-PHA F4002 STREET MAINTENANCE FACIL F4005 FIRE STATION 2 RELOCATIO E8501 DOWNTOWN VISION PLAN-PHA E8504 AOTF MEDIAN & RIGHT-OF-W 17 Fund Balances/Reserves The Town maintains several funds, some of which are restricted for specific purposes; the Operating Fund is the Town’s main operating fund and has sufficient reserves that satisfy the Town’s fund balance policy. Development fees are restricted for projects that are related to growth and the Economic Development/Downtown Strategy Funds are designated for downtown development. Rainy Day Fund 1,345,200$ General Fund 5,730,390 Public Art Fund 17,259 Internal Service Fund (12,114) Vehicle Replacement Fund 456,361 Operating Funds 7,537,096$ Highway User Revenue Fund (HURF)1,111,739 1,111,739 Special Revenue Fund 18,623 Court Enhancement Fund 262,194 Cottonwoods Maintnenance District Fund 11,390 Special Revenue Funds 292,207 Downtown Strategy Fund 1,005,892 Economic Development Fund 70,358 Tourism Fund 52,158 Excise Tax Funds 1,128,408 General Obligation Debt Service Fund 650,340 Eagle Mountain CFD Debt Service Fund 221,976 MPC Debt Service Fund 753,424 Debt Service 1,625,740 Capital Projects Fund 14,540,043 Facilities Replacement Fund 143,772 Capital Projects 14,683,815 Law Enforcement 203,484 Fire & Emergency 63,599 Streets 407,921 Parks & Recreation 168,413 Open Space 1,654,422 Library/Museum 43,445 Development Fees 2,541,284 Grand Total 28,920,289$ Fiscal Quarter Fund Balances 12/31/2014 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 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 February 5 and 19,2015. 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: Bevelyn Bender,Town Clerk 2/23/2015 Ke'n BuchananrTown ManageY 2/24/2015 Page 1 of 1 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Community Services Staff Contact Information:Rachael Goodwin,Supervisor of Recreation,480-816-5135,rgoodwin@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Desert Diamond Distillery (John Patt)to be located along the Avenue of the Fountains,in conjunction with the Fountain Hills Art and Wine Affaire,from 10:00 AM to 6:00 PM daily, from Friday,March 13 through Sunday,March 15,2015. Applicant:John Patt Applicant Contact Information:928-757-7611,4875 Olympic Dr,Kingman,AZ 8640 Property Location:Avenue of the Fountains,Fountian Hills,Arizona Related Ordinance,Policy or Guiding Principle:A.R.S.§4-203.02;4-244;4-261 and R19-1-228,R19-1- 235,and R19-1-309 Staff Summary (background):The purpose of this item is to obtain Council's approval regarding the Fair/Festival liquor license application submitted by John Patt representing Desert Diamond Distillery,for submission to the Arizona Department of Liquor.The special event liquor license application was reviewed by stafffor compliance withTown ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. 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:N/A Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):Approve List Attachment(s):Application; SUGGESTED MOTION (for council use):Move to approve the Special Event Liquor License as presented. Page 1 of 2 Prepared by: /2/54/2015RachaelGoodwin/Re&reation Supervisor Director's Approval: Mark Mayer,Community Services Director V 2/24/2015 Approved:,p proved:—. en BuchananTTown ManagerKenBuchanan,Town Manager 2/24/2015 Page 2 of2 TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO:(as applicable) *Streets Division »Fire Department »Building Division »Community Services •Development Services •Law Enforcement »Licensing DATE:1/13/2015 FR:f 1 tachael Goodwin, Recreation Supervisor RE:Liquor License Application Attached is a Liquor License Application for staff review. Review the application,then sign, indicating staffs recommendation for approval (with or without stipulations) or denial. If staff's recommendation isto deny and/or there are stipulations for approval,please attach a memo that specifies the reasoning and the memo willbe forwarded on to the Town Councilfor their consideration of this application. Name of Organization:Desert Diamond Distillery Applicant:John Patt Date(s)of Event:March 13-15, 2015 at Saguaro Blvd and Ave.of the Fountains,in conjunction with the Fountain Hills Fine Art and Wine Affair. DateApplication Received:1/12/2015 Town Council Agenda Date:2/19/2015 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A Building Safety Jason Field V- Community Services Rachael Goodwin * Development Services Bob Rodgers V- Fire Department Dave Ott vt Law Enforcement Mark Fisher X Licensing Sonia Kukkola £ Street Department Ken Kurth I Attach report for denial or any recommendation requiring stipulations. Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix AZ 85007-2934 www.azliquor.gov (602)542-5141 FAIR/FESTIVAL LICENSE APPLICATION A.R.S.§4-203.03 Farm Winery / A.R.S.§4-205.11 Craft Distillery A.R.S.§4-203.02 At Special Event -'•'V.', Aservice fee of $25 will be charged forall dishonored checks (A.R.S.44-6852).When the days of the fair/festival are not consecutive,a separate license for each uninterrupted period is needed. SECTION 1 Application type: Dwine Fair •Wine Festival •Craft Distillery Fair 0 Craft Distillery Festival 1.Applicant's Name:^JoW VJfc^V _,Daytime Phone #:IclS ~jO I 2.Business name:6£rt\-\G5$££tog -i 7,7 \^W .Liquor license #:i/oOqOQQO farm winery or craft distillery ••Mm 6UA \(y Email: 3.Mailing address L\w;\\i\fry\& SPk.f state 4.Location of fair/festival: zip code street address cily county zip code J SECTION 2 Fees,Date &Hours:$15 per day Winery festival days permitted:50 licenses per winery per calendar year for a total of 150 days per winery per calendar year. Craft Distillery festival davs permitted:25 licenses per craft distillery per calendar year for a total of 75 days per craft distillery per calendar year. DATE DAY OF WEEK fe: "5&T START TIME AM/PM )()^0^^YV^ 0'60 ^yvN. M)£"^W 4. 5. 6. 7. July 25.2014 Please attach an additional sheet if necessary page 1 of 4 END TIME AM/PM 5jM S»do s^m xv\ Redact SECTION 3 Site Owner Information: I.Site owner name:\^M/)feYlr>iacA irMvv^o v->U*t~Daytime Phone# First LastLast -. ....v..address v 2. Site owner mailing address: slreetaddress \ city state zipcode \\^ \ .«k \ 3.Email Address SECTION 4 to complete this application,all questions must be answered: 1.Have you received permission for use of the site for the sale/consumption of liquor from the site owner named inSection3? CjYes D No 2.Will the liquor you sell/serve be products only manufacture/produced at your licensed premises names in Section 1?(3 Yes D No a3.List the number of Fair/Festival licenses you have been issued in the current calendar year \* 4.List the number of days you have held a licensed Fair/Festival in the current calendar year j. 5. What security and control measures will you take to prevent violations of state liquorlaws at this event? #of Police Officers on Site Fencing (3 Yes D No #of Security Personnel on Site Barriers 0 Yes •No 6. I am familiar with and have read statues for Arizona's fair/festival privileges,requirements and penalties? [Farm Winery A.R.S.§4-203.03,Craft Distillery A.R.S.§4-205.11.either being held ata Special Event A.R.S.§4-203.02)S Yes D No 7. I have taken responsible steps to ensure individuals operating the fair/festival licensed premises and employees who serve,sell or furnish liquorat this fair/festival have knowledge of Arizona liquor laws? (R19-1-302)0 Yes D No Juty25.2014 page 2of 4 t ..._|__!,mmm :_;_ _ * r%**.-.--——--i~a2_—•—•-- - —u */r\mr jn rw%"» Sections Ucensed premises diagram.The licensed premises for your far/festival is thearea you are authorized to sell,dispense orserve alcoholic beverages under the provisions of your license identified in Section 1,line #2 of this application.Use this page to draw a diagram of your special event licensed premise.Please include dimensions of the premises,serving areas,fencing,barricades,or other control measures and security positions Fountain Hills Fine Art &Wine Affaire AREA MAP La Montana Drive Entrance #96 *5** d* mi 'J ? «» ? £^#59 s Entrance Verde River Dr #56 #1 \*f Fcod Pavilion Entrance Saguaro Plvd. f#128 Entrance Featured Arttet: £ru«>Taylor #133 *^$ ^ #168 Formoreu^iroStiGii contact: ThunderbirAArti^S @480-837-5637 Nt Section 6 This sections to becompleted only by the applicant named in section #1 l,><joWS l/\j/Q3^i^\declare that Iam the APPLICANT filing this application as listed in (prinl/ullnprjre)/ ;orrect and Complete.ion and the conte/1Ts)and all statements are (signature)Title/Position The foregoing instrument was acknowledge before me this State fi/l(2-VfJ&County of fr\b Wt±J£ Si! Phone U My Day Month \/^^X lANiE^G.PL^TOate '\£/Signature of Notary Public 'ff ffffiTO nata-.YP»Mir-^ofA.^na \ WwE$M.uOWiVF COUNTY\W&M "MOHAVECOUNTY^«. The local ^o^^^&b^^ptf5f^®Spffiorifclpaiity where the fair/festival will take place)may require additional applications to be completed and submitted.Please check with local government as to how far in advance they require these applications to be submitted.Additional licensing fees may also be required before approval may be granted. r Year Section 7 Local Governina Bodv Approval Section 1.recommend •APPROVAL •DISAPPROVAL (government official)(Title) nn behalf of (City. Town.County)Signature Date Phone # FOR DEPARTMENT OF LIQUOR USE ONLY •APPROVAL •DISAPPROVAI BY:DATE: July 25.2014 page 4 of 4 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Community Services Staff Contact Information:Rachael Goodwin,Supervisor of Recreation,480-816-5135,rgoodwin@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Arizona Stronghold Vineyards (Justin Lawrence Ove) to be located along the Avenue of the Fountains, in conjunction with the Fountain Hills Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday,March 13 through Sunday,March 15,2015. Applicant:Justin Lawrence Ove Applicant Contact Information:928-639-2789,4700 Old Hwy 279,Camp Verde AZ 86322 Property Location:Avenue of the Fountains,Fountian Hills,Arizona Related Ordinance,Policy or Guiding Principle:A.R.S.§4-203.02;4-244;4-261 and R19-1-228,R19-1- 235,and R19-1-309 Staff Summary (background):The purpose of this item is to obtain Council's approval regarding the Fair/Festival liquor license application submitted by Justin Lawrence Ove representing Arizona Stronghold Vineyards, for submission to the Arizona Department of Liquor.The special event liquor license application was reviewed by staff for compliance withTown ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. 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:N/A Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):Approve List Attachment(s):Application; SUGGESTED MOTION (for council use):Move to approve the Special Event Liquor License as presented. Page 1 of 2 Rachael GoorMn,Recreation Supervisor Director's Approval: MarkMayer, Community Services Director Approved:*-^ Ken Buchanan,Town Manager /2/24//2015 2/24/2015 2/24/2015 Pa«e2of2 TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO:(as applicable) •Streets Division • Fire Department •Building Division •Community Services •Development Services •Law Enforcement •Licensing DATE:2/17/2015 FR:Rachael Goodwin, Recreation Supervisor RE:Liquor License Application Attached is a Liquor License Application for staff review. Review the application,then sign, indicating staff's recommendation for approval (with or without stipulations)or denial. If staff's recommendation is to deny and/or there are stipulations for approval,please attach a memo that specifies the reasoning and the memo will be forwarded on to the Town Councilfor their consideration of this application. Name of Organization:Arizona Stronghold Vineyards Applicant:Justin Lawrence Ove Date(s)of Event:March 13-15, 2015 at Ave. of the Fountains,from Saguaro Blvd to La Montana conjunction with the 11th Annual Fountain Hills Art and Wine Affair Date Application Received:02/11/15 Town Council Agenda Date:3/5/2015 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A Building Safety Jason Field X Community Services Rachael Goodwin X Development Services Bob Rodgers £ Fire Department Dave Ott X Law Enforcement Mark Fisher X Licensing Sonia Kukkola y Street Department Ken Kurth Y- Attach report for denial or any recommendation requiring stipulations. Arizona Deparfmenf of Liquor Licenses and Control 02-12-15 P03:13 IN 800 WWashington 5th Floor rpx /ft f]rp-v Phoenix AZ 85007-2934 isf^iiTlU)www.azliquor.gov '^7 ^ (602)542-5141 - FAIR/FESTIVAL LICENSE APPLICATION A.R.S.§4-203.03 Farm Winery / A.R.S.§4-205.11 Craft Distillery A.R.S.§4-203.02 At Special Event 1 Aservice fee of$25 will be charged forall dishonored checks (A.R.S.44-6852).When the days of the fair/festival are not consecutive,a separate license for each uninterrupted period is needed. SECTION 1 Application type: •wine Fair 0,Wine Festival •Craft Distillery Fair •Craft Distillery Festival 1.Applicant's Name:^u^UxiJltwc-C c9l^-Daytime Phone #:^1x%'u 5 t'Jli^l 2.Business name:/m2£vm VuOA'jtelol Vtrt£Ug/4.i ,Liquor license #:/SI S S OI3 ^farm winery or craft distillery Email:\O0sVi^<9 QH^D^^^Ai c&y£: 3.Mailing address:H2&Q.Okl/L±\Jl*i &wp U&uk /V2-%63>Q!X street address city state zip code 4.Location of fair/festival:jIK10 £AWVHaL fl£tk mtyMift)\fill >ifa*Hl'lls,Tfaticop*?Qfe* street address city county zip code SECTION 2 Fees,Date &Hours:$15 per day Wineryfestival days permitted:50 licenses per winery per calendar year for a total of 150 days per winery per calendar year. Craft Distillery festival days permitted:25 licenses per craft distillery per calendar year for a total of 75 days per craft distillery per calendar year. DATE DAY OF WEEK STARTTIME AM/PM END TIME AM/PM .ZI IS/if Suyutny lu'ooAv*6ia>P\rr\ Please attach an additional sheet if necessary July25.2014 page 1of 4 Individuals requiring ADA accommodations please call (602)542-9027 SECTION 3 Site Owner Information: 1.Site owner name:'JhlDiA of faumhur Rills Daytime Phone #:H%(y$U~&A> First Last 2.Site owner mailing address:I6~}(?f f?.AI/trtt<i of /Vu#hn»J >rvunhu'"Millsf A*Z.ffiddZ street address city state zip code 3.Email Address: SECTION 4 to complete this application,all questions must be answered: 1.Have you received permissfofi for use of the site for the sale/consumption of liquor from the site owner named in Section 3?Sres D No 2.Will the liquor yoj/sell /serve be products only manufacture/produced at your licensed premises names in Section 1?ElYes • No 3.List the number of Fair/Festival licenses you have been issued in the current calendar year * 4.List the number of days you have held a licensed Fair/Festival in the current calendar year ^« 5.What security and control measures will you take to prevent violations of state liquor laws at this event? # of Police Officers on Site Fencing ETYes D No # of Security Personnel on Site Barriers •Yes •No 6.I am familiar with and have read statues for Arizona's fair/festival privileges,requirements anda^nalties? (Farm Winery A.R.S.§4-203.03,Craft Distillery A.R.S.§4-205.11,either being held at a Special Event A.R.S.§4-203.02)GET Yes D No 7.I have taken responsible steps to ensure individuals operating the fair/festival licensed premises and employees Wno serve,sell or furnish liquor at this fair/festival have knowledge of Arizona liquor laws? (R19-1-302)\3 Yes D No July 25, 2014 page 2 of 4 Individualsrequiring ADA accommodations please call (602)542-9027 founlain hills az-Google Maps htlps://maps.googIe.com/maps?oc=ulf-8&client=firefox-a&q=founta Google Address Fountain Hills,AZ I of l ^10*4* fp3/* Q.- *4i 3- ofth. °t"u**0s !©2014j£obgle ^#/pjrLa9Qf>< s: Or s - "*Ba yeu,4* %/,^o,'<#/) «fe# ^Ha 17,166 Map data ©2014 Google 1/6/2014 10:34 AM Section 6 This sections to be completed only by the applicant named in section #1 ,3u5>VvvA l-(kn)rp\ALQ OV^—declare that Iam the APPLICANT filing this application as listed in (print full name) ve read JT^e-eeptrcattarrand the contents and all statements are true,correct and Complete.Section 8. X State (sic nature)Title/Position The foregoing instrument was acknowledge before me this ^^Q>r\^».County of *y^n()< My Commission Expires on:)CV ^?'^^Q Date Phone # ao\s Year MyComm/ss/onE"'yg The local governing body (city,town or municipality where the fair/festival will take place)may require additional applications to be completed and submitted.Please check with local government as to how far in advance they require these applications to be submitted.Additional licensing fees may also be required before approval may be granted. Section 7 Local Governina Bodv Approval Section I,recommend DaPPROVAL •DISAPPROVAL (government official)(Title) on behalf of (City, Town,County)Signature Date Phone # FOR DEPARTMENT OF LIQUOR USE ONLY DAPPROVAL •DISAPPROVAL BY:DATE: July 25.2014 page 4 of 4 Individuals requiring ADA accommodations please call (602)542-9027 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session : Agenda Type:Consent Submitting Department:Community Services Staff Contact Information:Rachael Goodwin,Supervisor of Recreation,480-816-5135,rgoodwin@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving a FAIR/FESTIVAL LIQUOR LICENSE APPLICATION for Passion Cellars (Arlene Damonico)to be located along the Avenue of the Fountains,in conjunction with the Fountain Hills Art and Wine Affaire, from 10:00 AM to 6:00 PM daily, from Friday, March 13 through Sunday,March 15,2015. Applicant:Arlene Damonico Applicant Contact Information:602-750-7771,PO Box 1205,Jerome,AZ 86331 Property Location:Avenue of the Fountains,Fountian Hills,Arizona Related Ordinance,Policy or Guiding Principle:A.R.S.§4-203.02;4-244;4-261 and R19-1-228,R19-1- 235,andR19-1-309 Staff Summary (background):The purpose of this item is to obtain Council's approval regarding the Fair/Festival liquor license application submitted by Arlene Damonico representing Passion Cellars,for submission to the Arizona Department of Liquor.The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,listhere: N/A Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):Approve List Attachment(s):Application; SUGGESTED MOTION (for council use):Move to approve the Special Event Liquor License as presented. Page 1 of 2 Prepared by: Rachael Goodwin^Reclieation Supervisor *2/24/2015 Director's Approval: Mark Mayer,Community Services Director 2/24/2015 Appmved:^^^~ Ken Buchanan,Town Manager Page 2 of 2 TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO:(as applicable) •Streets Division • Fire Department •Building Division •Community Services •Development Services •Law Enforcement •Licensing DATE:2/17/2015 FR:Rachael Goodwin, Recreation Supervisor RE:Liquor License Application Attached is a Liquor License Application for staff review. Review the application,then sign,indicating staff's recommendation for approval (with or without stipulations)or denial. If staff's recommendation is to deny and/or there are stipulations for approval,please attach a memo that specifies the reasoning and the memo will be forwarded on to the Town Council for their consideration of this application. Name of Organization:Passion Cellars Applicant:Arlene Damonico Date(s)of Event:March 13-15,2015 at Ave.of the Fountains,from Saguaro Blvd to La Montana conjunction with the 11th Annual Fountain HillsArt and Wine Affair Date Application Received:02/11/15 Town Council Agenda Date:3/5/2015 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A Building Safety Jason Field %I Community Services Rachael Goodwin X Development Services Bob Rodgers f Fire Department Dave Ott X Law Enforcement Mark Fisher •< Licensing Sonia Kukkola X Street Department Ken Kurth X Attach report for denial or any recommendation requiring stipulations. r*02-11-15 P05.-29 Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix AZ 85007-2934 www.azliquor.gov (602)542-5141 FAIR/FESTIVAL LICENSE APPLICATION A.R.S.§4-203.03 Farm Winery / A.R.S.§4-205.11 Craft Distillery A.R.S.§4-203.02 At Special Event h $iU <2£.cD A service fee of $25 will be charged for all dishonored checks (A.R.S.44-6852).When the days of the fair/festival are not consecutive,a separate license for each uninterrupted period is needed. SECTION 1 Application type: Dwine Fair JETwine Festival •Craft Distillery Fair •Craft Distillery Festival 1.Applicant's Name:/""l^v^<)>p^!t^Daytime Phone #:.(?^>-"~?$0 --~7~77i 2.Business name:rtc^V^U^cJ^>x)_u~Liquor license #:1 ^>\3^0 3^> O farm winery or craft distillery Email: 3.Mailing address:P,0 A*v \>-^.T-&<^j^EL 1&22i 4.Location of fair/festiva zip codenstreetaddresscitystatezip c street address city county zip«zip code SECTION 2 Fees,Date &Hours:$15 per day Winery festival days permitted:50 licenses per winery per calendar year for a total of 150 days per winery per calendar year. Craft Distillery festival days permitted:25 licenses per craft distillery per calendar year for a total of 75 days per craft distillery per calendar year. 2. 3. 4. 5. 6. 7. DATE July 25,2014 DAY OF WEEK h^ijw^^ -t START TIME ^W/PM /D:oQ D :.oo Please attach an additional sheet if necessary page 1 of 4 Individuals requiring ADA accommodations please call (602)542-9027 END TIME AM/F$ S-oo S±GO SECTION 3 Site Owner Information: 1.Site owner name:1CW-v H i^O0^^H\7'l Daytime Phone #: FFrfet Last 2.Site owner mailing address:jd'JOZ'^Aj^.if ^fe/wfru^;r J^^/i/><>^%X"<££ street address city state zip code 3.Email Address: SECTION4 to complete this application,all questions must be answered: 1.Have you received permission for use of the site for the sale/consumption of liquor from the site owner named in Section 3?IS Yes D No 2.Will the liquor yoLusell/serve be products only manufacture/produced at your licensed premises names in Section 1?PtVes •No 3.List the number of Fair/Festival licenses you have been issued in the current calendar year ,j< 4.List the number of days you have held a licensed Fair/Festival in the current calendar year 3 5.What security and control measures will you take to prevent violations of state liquor laws at this event? # of Police Officers on Site Fencing D Yes .3 No ZP #of Security Personnel on Site Barriers S^Yes D No 6.I am familiar with and have read statues for Arizona's fair/festival privileges,requirements and penalties? (Farm Winery A.R.S.§4-203.03,Craft Distillery A.R.S.§4-205.11.either being held ata Special Event A.R.S.§4-203.02)0 Yes D No 7.I have taken responsible steps to ensure individuals operating the fair/festival licensed premises and employees who serve,sell or furnish liquor at this fair/festival have knowledge of Arizona liquor laws? (R19-1-302)P'Yes •No July 25, 2014 page 2 of 4 Individuals requiring ADA accommodations please call (602)542-9027 Section 5 Licensed premises diagram.Thelicensed premisesforyour fair/festival is the area you are authorized to sell,dispense or serve alcoholic beverages under the provisionsof your license identified in Section 1,line #2 of this application.Use this page to draw a diagram of your special event licensed premise. Please include dimensions ofthe premises,serving areas,fencing,barricades,or other control measures and security positions. Section 6 This sections to be completed only by the applicant named in section # 1 \j\/dliti£:/-/A/t>/l .OMWA/JdO declare that Iam the APPLICANT filing this application as listed in (print full name) Sectiqp,8.1 have readihe application and the contents and all statements are true,correct and Complete. x:W<PM4&&) <=?—7T (signature) The foregoing instrument was acknowledge before me this M\^fm <l-County of 71 IfiAJ-c.op a.State My Commission Expires on:/P '0*9-/^ Date tor//Date7 Phone # UmL Month Year Laureen J Manning NotaryPublic MaricopaCounty,Arizona Comm.Expires 12-09-15 Thelocal governing body (city,town or municipality where the fair/festival will take place)may require additional applications to be completed and submitted.Please check withlocal government as to how far in advance they require these applications to be submitted.Additional licensing fees may also be required before approval may be granted. Section 7 Local Governing Body Approval Section I.recommend DaPPROVAL •DISAPPROVAL (government official)(Title) on behalf of (City,Town,County)Signature Date Phone # FOR DEPARTMENT OF LIQUOR USE ONLY DAPPROVAL •DISAPPROVAL BY:DATE: July 25,2014 page 4 of 4 Individuals requiring ADA accommodations please call (602)542-9027 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Community Services Staff Contact Information:Mark Mayer mmayer@fh.az.gov 480.816.5190 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of the request by the Public Art Committee to accept a donated bronze sculpture titled,"Vigilance"for placement in Fountain Park. The Public Art Committee is also requesting S2000 from the Public Art Fund to be used towards the cost of the base. Applicant: Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:Public Art Master Plan. Staff Summary (background):The Public Art Committee is requesting that the Town accept the sculpture titled "Vigilance" for placement in Fountain Park.The artist is Dave Lamure Jr.and the piece has a value of $78,000 with a negotiated price of $45,000. Risk Analysis (options or alternatives with implications): Fiscal Impact (initial and ongoing costs;budget status):The Public Art Committee is requesting $2000 from the Public Art Fund to be used towards the cost of the base.There will be an annual cost of $335.40 to insure the piece. 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):Staff is recommending acceptance of the sculpture and its placement in Fountain Park as requested and $2000 from the Public Art Fund to be used towards the cost of the base. List Attachment(s):Letter from Public Art Committee Chair Sandi Thompson,picture of the sculpture,and a site map of the proposed location. Page 1 of 2 SUGGESTED MOTION (for council use):Approve the request by the Public Art Committee to accept a donated bronze sculpture titled,"Vigilance"for placement in Fountain Park and $2000 from the Public Art Fund to be used towards the cost of the base. Prepared by: JM££LNancyWaljer,Corrrrnunity Srvcs Exec Asst 2/19/2015 Director's Approval: (v^g ,G, Mark Mayer,CommunityServices Directory 2/19/2015 Approved:approved:*-•% Ken Buchanan.Town Manager 2/24/2015 Page 2 of2 FOUNTAIN HILLS CULTURAL & CIVIC ASSOCIATION Post Office Box 1 8254 Fountain Hills,AZ 85269 February 11,2015 Honorable Mayor Kavanagh Town Council Members Town of Fountain Hills Fountain Hills,AZ 85268 Dear Ladies &Gentlemen, The Public Art Committee of the Fountain Hills Cultural &Civic Association would like to propose the acquisition of a bronze sculpture entitled "Vigilance"by Dave Lamure Jr.The piece is 62" in circumference.The dimensions for the base made of stone are approximately 7 Vi feet long x 30" high x 30"wide.The piece is being donated by resident Dorothy Ware. This piece has a gallery price of $78,000. The negotiated price is $45,000 We are recommending the piece be placed in Fountain Park in the amphitheater area near Infinity Ring. This acquisition has been approved by the Public Art Committee. Photo of this piece has been sent to you in a separate email. Very Truly Yours, Saudi tTffotnpaan Sandi Thompson Chair,Public Art Committee FHCCA •/iTLANCE . ; ,"VIGILANCE"is a male.and female pair of indigenous Red Tailed Hawks,in flight,circling their nest.We are all vigilant, protective and passionate about aspects of our lives,and families.Inspired to keep this piece engaging the natural world it-can be placed in a direction where the sun or moon rise or set precisely in the center.The focus lands on the ever present potential of the nest egg with all the continents of the earth.Notice how uour eues move around through the spiritual essence ofthe circle of life and the triangles it is sitting on,these forms have been apartofthe spiritual quest throughout history.As a botj Iremember dreams of flying and looking back,rny tail feathers were iron red.5uteo jamaicensis is the scientific name translated as,being of this place.Gravity is our greatest natural law through imagination,spirit and dreaming we supersede that law!We are the dreamers...imagine! ' Dave La Mure Jr. UUlUUfcM I,ZUUO FOUNTAIN PARK 12925 N SAGUARO BLVD ACTIVITY ARFA5 PLAYGROUND ACTlViri'AREA ROTARY SPLASH PAD GREAT LAWN SLAND VISTA PERFORMANCE PAD SHADED HILLS REO YUCCA LAWN GOLDEN BARREL LAWN VETERAN'S MEMORIAL RED YUCCA RAMADA - 2 STB.TABLES - 1 HANDICAP TABLE c? GOLDEN BARREL RAMADA - 2 STD TABLES HANDICAP TA8LE 1 B60 Built in 1970,Fountain Hills World Famous Fountain draws from a 33 acre,million gallon lake and reaches a height of 330 ft. with two pumps for 10 minutes on the hour from 9am to 9pm daily. On speciol occasions the fountain can attain 560 ft.with all three pumps running.In the event winds exceed 10 mph the fountain w'rtl automatically shut-down. NOTE: ALL RAMADAS ARE LIT AND HAVE ELECTRICAL OUTLETS Art sites can be added to the new west lake path. TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Community.Services Staff Contact Information:Mark Mayer mmayer@fh.az.gov 480.816.5190 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of the request by the Public Art Committee to accept a donated bronze sculpture titled,"Second Mesa Maiden"for placement in Fountain Park. Applicant: Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:Public Art Master Plan. Staff Summary (background):The Public Art Committee is requesting that the Town accept the bronze sculpture titled "Second Mesa Maiden"for placement in Fountain Park.The artist is Martha Pettigrew and the piece has a value of $12,000. Risk Analysis (options or alternatives with implications): Fiscal Impact (initial and ongoing costs;budget status):There will be an annual cost of $51.60 to insure the piece. 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):Staff is recommending acceptance of the sculpture and its placement in Fountain Park as requested. List Attachment(s):Letter from Public Art Committee Chair Sandi Thompson,picture of the sculpture,and a site map of the proposed location. SUGGESTED MOTION (for council use):Approve the request by the Public Art Committee to accept a donated bronze sculpture titled,"Second Mesa Maiden"for placement in Fountain Park. Page 1 of 2 Prepared by: ... NancyOA/alter,Community Srvcs Exec Asst 2/19/2015 Director's Approval: Mark Mayer,Community Services Directory 2/19/2015 Approved: eiTBiucnKenBuchanan,Town Manager 2/24/2015 Pase2of2 FOUNTAIN HILLS CULTURAL & CIVIC ASSOCIATION Post Office Box 1 8254 Fountain Hills,AZ 85269 February 11,2015 Honorable Mayor Kavanagh Town Council Members Town of Fountain Hills Fountain Hills,AZ 85268 Dear Ladies &Gentlemen, The Public Art Committee of the Fountain Hills Cultural &Civic Association would like to propose the donation of a bronze sculpture entitled "Second Mesa Maiden"by Martha Pettigrew. The dimensions are 5'tall xl 8"wide which includes the limestone bust on which it is sitting. This piece has an insured value of $12,000 but is being donated by the artist for $2000. We are recommending the piece be placed in Fountain Park in the spot that already has a poured base near the amphitheater.This acquisition has been approved by the Public Art Committee. Photo of this piece has been sent to you in a separate email. Very Truly Yours, Sandi tTAampaen Sandi Thompson Chair,Public Art Committee FHCCA FOUNTAIN HILLS BLVD PERFORMANCE PAD COMMUNITY CENTER SHEA BLVD Public Art Sites • Future Paths v*^—-v CCP Concrete Circular Pads uuiuuei i,zuuo FOUNTAIN PARK 12925 N SAGUARO BLVD ACTIVITY ARFAS PLAYGROUND ACTIVITY AREA ROTARY SPLASH PAD GREAT LAWN SLAND VISTA PERFORMANCE PAD SHADED HILLS REO YUCCA LAWN GOLDEN BARREL LAWN VETERAN'S MEMORIAL RED YUCCA RAMADA - 2 STD.TABLES - 1 HANDICAP TABLE - 1 BBO VETERANS MEMORIAL -± -155mrn HOWITZER GOLDEN BARREL RAMADA - 2 5TB TABLES HANDICAP TA8LE --I B9Q Built in 1970,Fountain Hills World Famous Fountain draws from a 33 acre,million gallon lake and reaches a height of 330 ft. with two pumps for 10 minutes on the hour from 9am to 9pm daily. On special occasions the fountain can attain 560 ft.with all three pumps running.In the event winds exceed 10 mph the fountain w'rfl automatically shut—down. NOTE: ALL RAMADAS ARE LIT AND HAVE ELECTRICAL OUTLETS Art sites can be added to the new west lake path. TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Community Services.,• Staff Contact Information:Mark Mayer 480.816.5190 mmayer@fh.az.gov Council Goal: Strategic Values:Civic Responsibility CR2/CR3 Use citizen talent and foster volunteerism REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of APPOINTING one (1)citizen to serve on the McDowell Mountain Preservation Commission for a term beginning March 9,2015 and ending December 31,2017. Applicant: Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:Town Council Rules of Procedure 2014-09,Resolution 2005-53 MMPC By-laws. Staff Summary (background):The term of one (1)member of the McDowell Mountain Preservation Commission expired on December 31,2014. 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):NA Staff Recommendation(s):Staff recommends that the Mayor and Town Council appoint the one (1)applicant interviewed on February 11,2015 to serve on the McDowell Mountain Preservation Commision. List Attachment(s): SUGGESTED MOTION (for Council use):Move to appointment to serve on the McDowell Mountain Preservation Commision for a term beginning March 9,2015 and ending December 31,2017. Page 1 of 2 W^^-Q—CMarkMayer,Community Services Director Approved: PanO*/^ en Buchanan,Town Manager 2/12/2015 2/24/2015 Page 2 of 2 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2014 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Craig Rudolphy,Finance Director,480-816-5162,crudolphy@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of RESOLUTION 2015-07 adopting the Town of Fountain HillsGrantAdministrationPolicy. Applicant: Applicant Contact Information: Property Location: Related Ordinance, Policy or Guiding Principle:New Policy Staff Summary (background):The Town has never hada policy covering the acceptanceand administration of grants received from various entities,such asthe federal government,Arionza Department of Transportation (ADOT),Maricopa Association of Governments (MAG),etc.A formal policy will provide guidance to staff about when and how to request/apply for a grant as well as identifying the persons responsible for the various stages of the grant.A policy will also provide the grantor with written documentation ofthe processthe Town will followin administering their grant. RiskAnalysis (options or alternatives with implications):Without a formal grant administration policy,the Townmay not be cnsidered forthe award ofcertain grants. Fiscal Impact (initial and ongoing costs;budget status):None Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form: na Recommendation(s)by Board(s)or Commission(s): Staff Recommendation(s):Adoptthe Grant Administration Policy List Attachment(s):Grant Administration Policy SUGGESTED MOTION (for council use):Move toapprove RESOLUTION 2015-07 adopting the Town of Fountain Hills Grant Administration Policy dated March 5,2015. Page 1 of 2 Prepared by: NA 8/1/2011 Director's Approval: lACraig"Rudofphy,Finance Director 2/17/2015 Approved: Ken Buchanan/Town Manager 2/24/2015 Pase 2 of 2 2312734.1 RESOLUTION NO. 2015-07 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN OF FOUNTAIN HILLS GRANT ADMINISTRATION POLICY. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) has determined that it is in the best interests of the citizens of the Town of Fountain Hills to establish written policies and procedures to be used when applying for, accepting and administering federal, state, county, private foundation and corporate grants, sponsorships and donations; and WHEREAS, the Town Council desires to adopt the Town of Fountain Hills Grant Administration Policy (the “Grant Administration Policy”). NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Grant Administration Policy is hereby adopted in substantially the form and substance attached hereto as Exhibit A. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Resolution or any part of the Grant Administration Policy adopted herein by reference is for any reason to be held invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps and to execute all documents 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, March 5, 2015. 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 2312734.1 EXHIBIT A TO RESOLUTION NO. 2015-07 [Grant Administration Policy] See following pages. Issued March 5, 2015 2253174.5 Town of Fountain Hills Grant Administration Policy i 2253174.5 TABLE OF CONTENTS INTRODUCTION ......................................................................................................................... 1 SECTION I: PURPOSE AND TOWN RESPONSIBILITIES .................................................. 2 1.1 Purpose for Submitting Grants ................................................................................................. 2 1.2 Fiduciary Responsibilities ........................................................................................................ 2 A. Internal Controls. .............................................................................................................. 2 B. Authority and Sources of Guidance .................................................................................. 3 C. Matching Funds ................................................................................................................ 4 1.3 Administrative Responsibilities ............................................................................................... 5 A. Developing Appropriate Grant Projects............................................................................ 6 B. Grant Application Process ................................................................................................ 7 1. Finding Grant Opportunities. ..................................................................................... 7 2. Logging the Grant. ..................................................................................................... 7 3. Invitation to Pursue Grants. ....................................................................................... 7 4. Filling in the Form (Appendix A) to Pursue a Grant. ................................................ 8 5. Internal Approvals. .................................................................................................... 8 6. Writing the Grant. ...................................................................................................... 8 7. Legal Review. ............................................................................................................ 8 8. Town Council Approval. ........................................................................................... 8 9. Grant Approval Notification. ..................................................................................... 8 10. Implementation of the Grant. ..................................................................................... 9 11. Reporting Documents. ............................................................................................... 9 12. Closing the Grant. ...................................................................................................... 9 SECTION II: INDIVIDUAL ROLES AND RESPONSIBILITIES........................................ 10 2.1 Town Attorney ....................................................................................................................... 10 2.2 Responsible Department ......................................................................................................... 10 2.3 Department Director ............................................................................................................... 10 2.4 Grant Project Manager ........................................................................................................... 11 A. Obligations Prior to Grant Submittal. ............................................................................. 11 ii 2253174.5 B. Financial Obligations after Grant Award. ....................................................................... 14 C. Administration Obligations after Grant Award. ............................................................. 14 2.5 Finance Division ..................................................................................................................... 16 2.6 Information Technology Division .......................................................................................... 17 2.7 Administrative Services Division ........................................................................................... 17 2.8 Other Affected Departments/Divisions .................................................................................. 17 SECTION III: GLOSSARY ....................................................................................................... 18 APPENDIX A: Grant Priority Template ....................................................................................... 25 APPENDIX B: OMB Circular and Publications Descriptions ...................................................... 26 APPENDIX C: Grant Project Profile Worksheet .......................................................................... 29 APPENDIX D: Grant Check List .................................................................................................. 30 1 2253174.5 INTRODUCTION The purpose of this grant administration policy is to establish uniform policies and procedures throughout the Town of Fountain Hills (the “Town”) to be used when applying for, accepting and administering federal, state, county, private foundation and corporate grants, sponsorships and donations. This document describes the grant administration process and identifies the roles and responsibilities of the Department Directors, Risk Management, Information Technology (“IT”), Finance and the Grant Project Manager. Definitions of certain terms can be found in Section III. Although this policy identifies certain departments and employees that are routinely involved in the administration of grants, this policy applies to all department employees who are programmatically or fiscally responsible for developing, implementing, administering, or reporting federal and other grant activity. It is essential for all Town departments and employees to adhere to the applicable provisions of federal, state and local laws, regulations, contracts and grant agreements, as well as the grant policies and procedures outlined in this policy, while administering grant-funded programs. First, noncompliance may result in Town sanctions and liabilities. Second, incorrect or irreconcilable financial activity and account balances recorded in the Town’s financial management system may adversely affect the integrity of Town financial reports and financial information reported to the grantor and the public. Third, it is necessary to help ensure that the Town is receiving the greatest possible economic benefit from the programs it administers. This policy is divided into three sections: Section I outlines the Town’s purpose for submitting grants and the Town’s overall fiduciary and administrative responsibilities including matching funds; Section II highlights the roles and responsibilities for each individual involved in administering grants; Section III contains a glossary of the relevant terms and resources. Appendices of internal forms and resources follow the glossary. Due to the complexity of grants, other documents should be used in tandem with this policy. In most instances, the grantor will provide specific guidance; in some occasions you will need to consult with other members of the management team and/or the Finance Division to research particular information. Grant trainings associated with writing and monitoring grants are optional but highly recommended. 2 2253174.5 SECTION I: PURPOSE AND TOWN RESPONSIBILITIES 1.1 Purpose for Submitting Grants A grant is a contribution or a gift of cash or other assets to be used or expended for a specified purpose, activity, project or facility. Grant agreements usually specify the maximum amount of funding, the scope of work to be done, the grant period (e.g. single or multi-year), and any special conditions applicable to the program. The Town’s purpose for the use of federal, state, county, private foundation and/or corporate grants (including sponsorships and donations) is to maximize external financial resources while protecting the integrity of the Town’s operational budget and long-term financial conditions. Therefore, all Town employees will only apply for grants that further Town Council’s goals and objectives, and support projects and programs that are consistent with the mission and priorities of the Town and its departments. To ensure that this occurs, all departments are required to submit a Grant Priority Form along with their annual budget requests (Appendix A). (Note: This process typically should take place during the Town’s budget process but can occur at any time during the year.) Department Directors are also responsible for approving all grants prior to submission to the Finance Division for Town Manager’s signature or electronic submission to the funding agency. 1.2 Fiduciary Responsibilities A. Internal Controls. When any employee of the Town of Fountain Hills applies for or accepts a grant, Town management assumes the responsibility for administering the grant and the financial assistance in accordance with the provisions of all applicable laws, regulations, contracts and grant agreements. In order to ensure that the Town fulfills its fiduciary and administrative responsibility, the Town management has established a system of internal controls designed to provide reasonable assurances regarding the achievement of Town-wide and program-level objectives in the following categories: 1. Effectiveness and efficiency of operations 2. Reliability of financial and programmatic reporting 3. Town compliance with applicable laws, regulations contracts, grant agreements and other compliance requirements 4. Transactions are properly accounted for and recorded 3 2253174.5 5. Transactions are executed in compliance with all laws, regulations and provisions of contracts and grant agreements that could have a material effect on federal and other programs 6. Funds, property and other assets are safeguarded against loss from unauthorized use or disposition To enhance cash management practices, it is the Town’s preference to receive funding on a cost reimbursement basis, unless specifically prohibited by the grantor. This basis minimizes the Town’s responsibility with respect to monitoring and administering interest earnings from grants. All requests for reimbursement shall be coordinated with the Finance Division. The Town’s preferred method of reimbursement is electronic funds transfers (“EFT”). However if EFT is not available, reimbursement checks shall be made payable to the Town of Fountain Hills and mailed to: Town of Fountain Hills c/o Finance Division 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 In order to minimize foregone interest and to improve the Town’s cash flow, the Grant Project Managers and/or Finance Division shall draw down grant funding at least monthly, when applicable. The Finance Division shall review grant revenues and expenditures at least quarterl y to verify that drawdowns are performed timely. B. Authority and Sources of Guidance This policy supplements the Town’s accounting procedures and serves as the general framework for departments to follow when applying for grants, negotiating the terms and conditions of grant agreements and administering grants. The policy is intended to provide consistent guidelines for grant administration to ensure optimum financial and administrative arrangements for the Town. In addition, the following is a list of federal circulars and publications that provide grant management guidance. Each of these publications is available on the Internet and a brief description of the guidance can be found in the Appendix B of this policy. 1. Single Audit Act of 1984 and Amendments of 1996 2. Grants Management Common Rule http://www.whitehouse.gov/omb/grants_chart/ 4 2253174.5 3. Federal OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments (relocated to 2 CFR, Part 225) http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a87.p df 4. Federal OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institution of Higher Education, Hospitals, and Other Non- Profit Organizations (relocated to 2 CFR, Part 215) http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a110/2cfr215- 0.pdf 5. Federal OMB Circular A-122, Cost Principles for Non-Profit Organizations (relocated to 2 CFR, Part 215) http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a122. pdf 6. Federal OMB Circular A-133, Audits of States, Local Governments, and Organizations http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf 7. Federal OMB Circular A-133, Compliance Supplement http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2012 8. Catalog of Federal Domestic Assistance (CFDA) https://www.cfda.gov/ 9. Code of Federal Regulations (CFR) http://www.gpoaccess.gov/cfr/index.html C. Matching Funds The Town Council established a Grant Fund (special revenue fund, fund 400) to account for unanticipated grant application opportunities. Requests for matching funds (typically General Fund money) required as a condition of the grant application should be sent to the Finance Division for approval of availability prior to the decision to apply is made and as soon as the matching estimate is known. No project will be eligible for matching funds without approval from the Town Manager and, when necessary, the Town Council. If the grant project is assigned to the Grant Fund for Finance Division tracking purposes, matching funds required for future years on an annually renewable grant (e.g. COPS Universal Hiring) must be estimated and budgeted by the initiating department during the annual budgeting process. For example, there are federal, state and county grant programs that typically issue requests for proposals every year. The need for matching funds for these predictable opportunities must be estimated and budgeted by the department. 5 2253174.5 In some cases, future grant opportunities can be predicted because enabling legislation has been passed. Community Oriented Policing Services (COPS), Community Development Block Grant (CDBG), HOME Investment Partnerships, Federal Transit Administration (FTA), Local Transportation Assistance Fund (LTAF) and Homeland Security are examples of enabling legislation that preceded the implementation of these grant programs. Whenever possible, departments should plan for these types of opportunities to ensure that budget appropriation authority is adequate and potential matching funds are addressed during the annual budgeting process. If the department submits a supplemental request for matching funds for the above types of grant opportunities, the department should notify the Finance Division for assistance. If the request is approved, budget authorization for the supplemental amount will be placed in the Grant Fund and will be designated for the respective departments. 1.3 Administrative Responsibilities Grant funding should be considered primarily for one-time or time-limited projects (such as capital improvements) that do not have a significant long-term effect on the ongoing operating budget. Grants also may be appropriate start-up funding mechanisms for priority projects already identified in a department’s Grant Priority Form. Grants should not be used as the primary financing mechanism to create new ongoing programs or services or to add unbudgeted positions unless specifically approved by the Town Manager. Any grant application that requires the guaranteed continuation of grant-funded positions or graduated match resulting in full financial responsibility subsequent to termination of the grant, or that directly increases the Town’s ongoing operating cost, must be reviewed by the Town Manager and the Finance Division. The Town Manager, or Town Council (if the grant award meets or exceeds $30,000), shall have the final say on grant activities. In some instances, the Town Manager may request Town Council input regarding a grant application submittal. If a Town Council meeting is needed, but cannot be scheduled prior to a crucial grant application deadline, the Town Manager may authorize the department to apply for the grant so that it does not miss the crucial deadline. However, the department must withdraw the grant application if the Town Council later decides not to submit the grant. The Town may cosponsor, serve as fiscal agent, or join with multiple sponsored community- based consortia or other jurisdictions when the Town Council determines it will benefit Town residents. The Town shall not act solely as fiscal agent for non-profit entities without consultation with the Finance Division and specific direction and approval from the Town Manager after his consultation with the Town Attorney. 6 2253174.5 A. Developing Appropriate Grant Projects Grant writing and grant management take a considerable investment of time and resources. When considering whether to apply for a particular grant, the initiating department must consider the following: 1. Will the grant help the Town attain an objective and secure infrastructure investments that fit into the Town’s and the department’s priorities? 2. Is the grant-supported service a high priority for the Town Council, the department and the public as evidenced by planning documents, inclusion in the Capital Improvement Plan (“CIP”), local resources commitment, or other documentation that identifies the need and service levels? 3. Can other community agencies be identified that provide or could provide the same or similar services, and can it be articulated why the Town is a more efficient and cost-effective provider? 4. Can this grant obtain sufficient budget appropriations and, if matching funds are required, will that match come from the department’s operating budget, authorized CIP funding or another budget source? 5. If administrative and indirect costs, as well as department resources (Finance, Risk Management, etc.) are involved, have these departments/divisions been consulted and are the costs eligible for grant reimbursement? 6. What is the likely funding source for continuing the project/program or services, or is there a plan for terminating the grant-supported activities? 7. Is the benefit derived from the grant sufficient to justify the cost involved in administering the grant, or will the grant leverage other funding sources and/or foster more creative public-private partnership arrangements? 8. Is this item from a sole source vendor or can other companies supply a competitive price? 9. Does the program have special property, liability or other insurance requirements? If so, has the incremental cost of such requirements been factored into the overall cost-benefit analysis? 7 2253174.5 10. Can the program be housed within existing space? If not, are requirements for additional or renovated space and equipment consistent with the Town’s plans and available funding? 11. Will the program require additional staff? If so, is the staffing increase in conformity with the Town’s plans, budget and available monies? 12. Is the proposed program budget sufficiently detailed (i.e., have all the direct and indirect costs such as salaries, ERE (employee-related expenses), supplies and materials, equipment, travel, computers, consultants, allocated administrative and internal service costs been identified and accounted for)? 13. If the grant is a donation, is it coming from an agency that has already donated to another town? If so, should you wait to request a donation or should you allow another department to apply from this source? Please see the Grant Check List (Appendix D) for more details. B. Grant Application Process The Town has a methodology to help track grants and ensure that programs are managed and meet program compliance. The grant application process consists of 12 steps that require the involvement of various staff members. The following steps are a general outline of the process, with individual responsibilities relating to the process set forth in Section II. 1. Finding Grant Opportunities. The Department Directors and/or staff seek grant opportunities for the Town. This process is done through various search engines to which the Town has access. Town staff also has access to grant opportunities as they often become available in their specific lines of work. Prior to submitting the grant application, the applicant is required to obtain confirmation of the availability of any matching funds from the Finance Division as well as Town Manager approval (and Town Council approval if the grant award meets or exceeds $30,000). 2. Logging the Grant. Once an opportunity has been found, the applicant will notify the Finance Division, which will log the grant into an Excel file. During this step, a grant number will be assigned. 3. Invitation to Pursue Grants. Once the approval is obtained and a grant is logged, the applicant has permission to pursue the grant. 8 2253174.5 4. Filling in the Form (Appendix A) to Pursue a Grant. The person pursuing the grant automatically becomes the “Grant Project Manager” for that grant. The Grant Project Manager fills in information pertaining to the project’s ability to meet Town Council’s goals and the Town’s ability to meet all maintenance and reporting requirements and financial obligations. 5. Internal Approvals. Once the form is complete, the Grant Project Manager will submit it to his/her Department Director. If the Department Director determines the grant meets the requirements of this policy, he/she will approve it and route it to Finance, Risk Management, IT and any other necessary departments/divisions for internal approval. 6. Writing the Grant. The Grant Project Managers should always attempt to fill out the grant application first. They are the experts on the topic and should provide as much information as they can about the project for which they are seeking funding. 7. Legal Review. The Grant Project Manager should prepare and submit to the Town Attorney a Request for Legal Services according to the legal request process established by the Town. The Town Attorney will review the grant application and send it back to the Grant Project Manager with any required changes. The Grant Project Manager will obtain the Town Manager signature on the cover letter before submitting the grant application. 8. Town Council Approval. Town Council approval, by Resolution, is required when (i) the grant requires it, (ii) the grant meets or exceeds $30,000 or (iii) the grant requires a contractual agreement. In those cases, the Grant Project Manager will generate an Agenda Action Form and request updates and approval from the Department Director. The Grant Project Manager, in accordance with Town Council agenda packet deadlines, will take the item to the next available Town Council meeting. The Grant Project Manager also will ensure that all awarded grant contracts, regardless of the amount, are approved by the Town Attorney. The Grant Project Manager must follow all other procurement and grant contract requirements. These requirements include a staff report for bids on grant-funded equipment and carrying over funding and appropriations to the next fiscal year when necessary. 9. Grant Approval Notification. The Grant Project Manager shall be responsible for tracking all awarded and denied grants. Once a letter for approval has been received, the Grant Project Manager will submit all of the necessary documents to the Finance Division who will enter the data into the grant management system. 9 2253174.5 10. Implementation of the Grant. It is the responsibility of the Grant Project Manager to implement the grant in accordance with the contract and all applicable laws and regulations. During this process, the Grant Project Manager should work with the Finance Division and the granting agency. The Grant Project Manager will be responsible for ensuring that all compliance items are met. The Grant Project Manager should be aware of federal laws and regulations as they relate to the grant project and should seek legal advice from the Town Attorney if the Town’s obligations are unclear. 11. Reporting Documents. All reports are to be completed by the Grant Project Manager on time and in conjunction with the Finance Division (when necessary). Copies of reports shall be retained by the Grant Project Manager and Finance Division and retained for the time period specified in the current Town and/or State of Arizona (“State”) approved record retention schedules or as indicated within the grant contract (whichever is longer). 12. Closing the Grant. Grants will be closed only when a letter of completion or compliance has been obtained from the grantor. All grant activity should remain open until the funding has been fully spent down. Grant Project Managers should not close any grants without the written consent from the Finance Division. This process will help safeguard against any programmatic and/or financial discrepancies. Once the grant is closed, the Finance Division will send a hardcopy of all the grant activity to the Grant Project Manager to be retained until the date at which the records can be destroyed according to the current Town and/or State approved record retention schedules or as indicated within the grant contract (whichever is longer). 10 2253174.5 SECTION II: INDIVIDUAL ROLES AND RESPONSIBILITIES In an effort to ensure that all grants are administered in a consistent manner, the following policies have been designed to set forth the role of each staff member that is involved with the grant projects. 2.1 Town Attorney The Town Attorney shall approve all contracts, grant agreements, memoranda of understanding, intergovernmental agreements and any other binding documents prior to signature from the Town Manager or Mayor. The legal request process established by the Town is to be followed. 2.2 Responsible Department The “Responsible Department” is the department of the Grant Project Manager. The Responsible Department shall maintain all hardcopies of grant activities and shall maintain grant information for the time period specified in the current Town and/or State approved record retention schedules or as indicated within the grant contract (whichever is longer). 2.3 Department Director A. Department Directors are responsible for submitting a Grant Priority Form with their budget requests each year, if applicable, or as promptly as possible if their requests do not coincide with the timing of budget requests. The forms shall outline all of the programs and projects that the Directors would like to pursue during the fiscal year. Department Directors shall not approve any grant requests not included in the Grant Priority Form unless they have received the Town Manager’s approval. B. Directors should refer to the Grant Check List (Appendix D) before approving a grant. C. Department Directors are responsible for reviewing and approving grant requests that come from their department’s staff members. This review includes, but is not limited to, the grant requirements, implementation commitments and reporting requirements. Directors should not approve any grants that they do not have the financial and personnel resources to successfully administer. D. Department Directors shall approve or deny a grant request within three Town business days. If the Director is not available to approve a grant, he/she should assign an alternate staff person or his/her supervisor to conduct this duty. 11 2253174.5 E. The Department Director shall forward any approved grant request to Finance, Risk Management, IT and any other necessary departments/divisions, as appropriate, for internal approval. If the grant request is not universally approved by the other departments/divisions, the Department Director, Finance Division and the other approving entity shall attempt to arrive at a resolution. If unsuccessful, the Department Director shall take his/her concerns to the Town Manager. F. Department Directors are responsible for assigning responsible staff members to serve as Grant Project Managers to oversee grants. If a Grant Project Manager leaves his/her employment with the Town, then the duty of the Grant Project Manager will be reassigned to another staff member. The transition of the Grant Project Manager should be conducted through written correspondence that includes the Town Manager and the Finance Division. G. Department Directors will work with the Finance Division when there are issues with the Grant Project Manager’s inability to successfully implement grant activities. 2.4 Grant Project Manager A. Obligations Prior to Grant Submittal. 1. The Grant Project Manager is encouraged to attend at least one grant training program associated with writing and monitoring grants and one Finance Division meeting prior to submitting a grant application. 2. Grant Project Managers should seek out grant opportunities in their lines of work. 3. The Grant Project Manager shall not request to apply for a grant until he/she has reviewed the request for proposal thoroughly and considered the merits of the project as it relates to the Town’s objections and reviewed the requirements related to the potential grant request. 4. The Grant Project Manager shall work with his/her supervisor and/or Department Director by having an informal conversation about the grant prior to submitting a request to pursue a grant. 5. Once the Grant Project Manager decides to apply for a grant, he/she shall notify the Finance Division and complete a Grant Project Profile Worksheet as thoroughly as possible. INCOMPLETE FORMS ARE SUBJECT TO REJECTION. The Finance Division will log the grant into an Excel file as part of 12 2253174.5 the grant management system. The Grant Project Manager should be prepared to provide the following information when requesting to apply for a grant: a. A project description that explains what the funding will be used for and how it will benefit the Town, including a detailed budget by revenue and expenditure. The Grant Project Manager should work with the Finance Division regarding any financial concerns. b. Anticipated project cost, any ongoing or post-grant cost impact or revenues and the source of matching funds. c. The Town Council/department goals the grant supports. d. Identify if the grant will need to be supported by IT, if necessary. e. Identify if the grant requires equipment purchases and/or maintenance. f. Identify if the grant requires additional insurance. g. Identify if other departments will be affected by the grant and include confirmation that the affected departments’ directors support the grant. h. The tentative timeline for the project implementation. i. Identify any partners in the grant, including a support letter/resolution that refers to the partner’s level of commitment. 6. The Grant Project Manager shall contact Risk Management for approval to submit grant applications that involve and/or require equipment training. The following is a list of questions that the Grant Project Manager should be prepared to answer: a. Will you be purchasing any equipment that requires training? b. If so, what type of equipment? c. If so, what type of training is necessary? d. Will the equipment require the Town to purchase additional insurance to fulfill the grant requirements and obligations? If so, forward a copy of those requirements to Risk Management. 13 2253174.5 e. Have you allocated training cost into your grant? f. Will ongoing trainings be necessary? g. If so, who will provide the trainings? 7. The Grant Project Manager shall contact IT for approval to submit any grants that will involve computer equipment and/or server space. The Grant Project Manager shall meet with IT to ensure that the budget allocations are appropriate and that computer technology is compatible. This contact must be done in person while pursuing the grant. The Grant Project Manager shall put detailed information in the form so that IT can make an informed decision. Upon the receipt of the computer equipment, the Grant Project Manager shall follow up with IT to ensure that they are aware of any programmatic requirements associated with the grant. The following is a list of questions that the Grant Project Manager should be prepared to answer: a. Will any technology equipment be purchased with the grant? b. If so, what type of equipment? c. What is the life expectancy of the equipment? d. How do you intend to pay for the replacement and repairs associated with the equipment? 8. The Grant Program Manager shall submit the grant request to the Administrative Services Division and the Town Attorney prior to submittal and prior to any required Town Council approval. 9. If Town Council approval is necessary for the submittal/approval of the grant, the Grant Project Manager will work with the Town Clerk to prepare a Town Council report, in accordance with the legal request process and Town Council agenda packet deadlines. Town Council packets are prepared one week prior to the first and third Thursday of the month. 14 2253174.5 B. Financial Obligations after Grant Award. 1. The Grant Project Manager shall notify the Finance Division about any grant awards and shall provide all documents associated with the grant to the Finance Division so that it may be recorded and entered. 2. The Grant Project Manager shall request revenue and expenditure budget costs for the grant award and anticipated expenditures from the Finance Division to ensure that the financial obligations of the grants are being accurately administered. 3. The Grant Project Manager is responsible for providing annual revenue and expenditure projections to the Finance Division to ensure that such projections are integrated into the Town’s formal, annual budget process. Such projections must be submitted within the required budget process timelines. 4. If the Grant Project Manager receives a check, he/she must hand-carry it to the Finance Division on the same business day. If the check cannot be transported in the same day, it must be safely locked up and delivered to the Finance Division on the next business day. C. Administration Obligations after Grant Award. 1. All purchases with grant funding must be in accordance with the Town’s procurement procedures, which include purchases using the Town’s Procurement Card. 2. All purchases also shall be in accordance with the grant agreement. If any questions regarding purchasing arise, the Grant Project Manager shall contact the Finance Division to clarify the proper procedure. 3. The Grant Project Manager is responsible for ensuring that any in-kind match is documented and that grant documentation is retained with other grant-related records for the time period specified in the current Town and/or State approved record retention schedules or as indicated within the grant contract (whichever is longer). Program income, including revenue and earned interest as well as in-kind match, must be handled according to grant guidelines and OMB Circulars A-87 and A-102, if applicable. 4. The Grant Project Manager shall request to expend funds by the termination date noted on the grant agreement. Expenditures encumbered prior to the award date or 15 2253174.5 after the termination date may not be eligible for reimbursement. An extension of the grant may be requested in the event that the programmatic goals have not been met or funding remains. The request for extension should be coordinated with the Finance Division. 5. The Grant Project Manager shall be familiar with the programmatic and administrative requirements of the grant and shall comply with these requirements including the cost principles and administrative guidelines. Many grantors will provide this information in the application packet instruction and/or the award documents. 6. The Grant Project Manager is responsible for reporting requirements. Submissions of programmatic and financial reports shall be accomplished in accordance with the guidelines specified in the grant contract or agreement. The Grant Project Manager is responsible for program implementation, management, evaluation, documentation and ensuring compliance with contract financial and narrative and reporting requirements. a. The Grant Project Manager shall be responsible for providing financial information to the Finance Division. This information must be provided as soon as possible and not less than one week prior to the reporting deadline. The Grant Project Manager shall review with the Finance Division the grant financial report due dates as soon as possible after the grant/project has been awarded. The Grant Project Manager also shall notify the Finance Division of upcoming reporting deadlines at least one week prior to the due date(s). The Grant Project Manager is responsible for reviewing the financial reports that are prepared by the Finance Division. If there are any discrepancies in the report, it should be brought to the attention of the Finance Division. b. If the Grant Project Manager submits a financial or programmatic report, copies of that report shall be sent to the Finance Division within one week. 7. The Grant Project Manager shall notify the Finance Division about any scheduled audits or site visits as soon as the Town or Grant Project Manager is notified of such audits and site visits. 8. The Grant Project Manager shall work closely with the Finance Division when closing out grants. Project closeout activities shall include completion of the final programmatic and financial reports, determination of obligated and unobligated cash balances and completion of necessary accounting entries. All project files 16 2253174.5 shall be combined and retained by the Grant Project Manager. The Grant Project Manager shall not certify that a grant is closed without written consent from the Finance Division. 9. The Grant Project Manager shall inventory equipment purchased for his/her area of control and submit inventory records to the Finance Division. Records for equipment, non-expendable personal property and real property shall be retained for the time period specified in the current Town and/or State approved record retention schedules or as indicated within the grant contract (whichever is longer). 2.5 Finance Division A. The Finance Division shall use the itemized budget prepared by the Grant Project Manager to support general ledger account and budget set up for the grant. B. The Finance Division shall be available to assist with setting up detailed budget plans when necessary. C. The Finance Division shall work with the Grant Project Manager to determine the budget and account code for the respective grants. D. The Finance Division will base all requested funds on the expenditures already incurred or amounts required for immediate disbursement. E. The Finance Division shall maintain records of revenues requested and received by the Town and reconcile the grant receivable accounts. F. If the Finance Division receives a check from a grantor, it shall notify the Grant Project Manager promptly. G. The Finance Division shall not commingle grant funding even if there are multiple grants for the same project. The Finance Division will establish separate records for each project to avoid commingling of project funds. H. The Finance Division shall be responsible for coordinating the financial reporting of all grants and preparing a majority of financial reports submitted to grantor agencies by the Grant Project Manager. I. The Town’s Finance Director shall schedule, monitor and ensure timely completion of all required audits in conformity with guidelines required by the Single Audit Act as amended, if applicable. 17 2253174.5 J. The Finance Division shall have primary oversight responsibility for stewardship of Town capital assets, but individual departments shall assist the Finance Division. In addition, the individual departments shall be responsible for stewardship for all noncapital Town assets that are determined to be high-risk-of-loss assets. K. The Procurement Agent as designated in the Town’s Procurement Policy will work with the Grant Project Manager to ensure that procurement procedures have been properly followed. 2.6 Information Technology Division A. IT shall approve or deny a grant request promptly. B. IT shall work with the Grant Project Manager when requesting computer and/or technology equipment. 2.7 Administrative Services Division A. The Administrative Services Division shall assist the Grant Project Manager with grant funded positions. B. All grant funded positions will be defined as limited appointments. C. The Administrative Services Division will update the Town’s Policies and Procedures relating to grant-funded positions as necessary to comply with federal grant requirements. D. The Administration Services Division shall work with the Grant Project Manager to ensure that all insurance requests are appropriate for the Town. E. The Administration Services Division shall work with the Grant Project Manager to determine appropriate training for equipment purchases, if applicable. 2.8 Other Affected Departments/Divisions Other departments/divisions shall make themselves available to consult with the department seeking grant funding. This consultation will be coordinated by the Grant Project Manager when necessary. 18 2253174.5 SECTION III: GLOSSARY Accounts Payable Check Processing: Accounts Payable processes vendor payments and prepares checks for signature. The general ledger is automatically updated by the Accounts Payable module of the general ledger accounting system at the time of entry. Accounts Payable checks are signed electronically. Accounts Payable sends the checks to the vendor. The electronic record copy of each purchase order is maintained in the Accounts Payable system . Advanced Funding: A funding technique where program monies are received in advance of expenditures. Common forms of advance funding include checks and electronic fund transfers. Auditee: Any nonfederal entity that expends federal awards which must be audited under the Single Audit Act, as amended. Auditor: A public accountant or a federal, state or local government audit organization that meets the general standards specified in generally accepted government auditing standards (GAGAS). Audit Finding: Deficiencies the auditor is required to report in the Schedule of Findings and Questioned Costs. Block Grant: Grants which combine funding for a broad purpose such as community development or energy efficiency. Community Development Block Grants are one of the most famous block grants. Categorical Grants: Grants awarded for a specific, limited purpose such as a library grant or a construction grant. Catalog of Federal Domestic Assistance (CFDA) Number: The number assigned to a federal program in the CFDA. If a grant award includes federal funds, then the CFDA number for those funds must be determined for proper disclosure on the federal Schedule of Expenditures of Federal Awards. Visit: https://www.cfda.gov/ Town Council Action: The process by which Town Council members review projects to determine if they will approve or deny the Town’s involvement. All grants that require a Resolution (as noted in the application/approval package) shall go to Town Council. All grants that are equal to or in excess of $30,000 also are required to have Town Council action. Commingling of Funds: The Town is prohibited from commingling its funds with grant/project awards of federal or other agencies. Each award must be accounted for separately. The Town is also prohibited from commingling funds on either a program-by-program basis or a project-by- 19 2253174.5 project basis. Funds specifically budgeted and/or received for one program or project may not be used to support another. The Town’s financial management system and supporting records must demonstrate that such funds were not commingled. Common Rule: On March 12, 1987, the President directed the federal grant making agencies to issue a grants management common rule to adopt government wide terms and conditions for grants to states and local governments. In 1988, OMB revised Circular A-102 to include guidance to federal agencies on matters not covered by the grants management common rule. The attachments to Circular A-102 were replaced by the grants management common rule. OMB maintains a chart which includes the locations of federal agency codifications of the grants management common rule. It is important for a grantee to review the regulations of their federal awarding agency. Visit: http://www.whitehouse.gov/omb/grants_chart/ Competitive Bidding Proposal: Purchases of $30,000 or more require a competitive bidding procedure. To begin this process, departmental personnel shall write a scope of work and/or specifications and provide to Procurement for preparation of the Request for Proposals/Request for Statements of Qualifications and/or Invitation for Bids, as applicable. Procurement sends these documents to the Town Attorney for the final solicitation documentation through the legal request process established by the Town. The bids are then given to the appropriate department for review. Proposals and Statement of Qualifications go through an alternative process. Upon selection of the successful vendor, the bid/proposal/statements of qualifications are provided to the Town Clerk’s Office together with a Contract Submittal Form. The contract documents are provided to and prepared by the Town Attorney for submittal to the Town Council for approval. The Town Clerk’s Office processes and distributes the executed contract documents. The Finance Division maintains the electronic contract documents. Once approved by the Town Council, department personnel issue the requisition for purchase order. Procurement issues the purchase order. Cooperative Agreement: Similar to grants except that the awarding agency is usually substantially involved in the activity funding by the program. Cost Reimbursement: A funding technique where the Town must submit periodic claims or draws down funding under letter(s) of credit for allowable program expenditures already incurred. The awarding agency reimburses the Town for eligible expenditures up to the maximum amount specified in the grant agreement. Cognizant Agency: The federal agency responsible for reviewing, negotiating and approving cost allocation plans or indirect cost proposals developed under federal OMB Circular A-87 on behalf of all federal agencies. 20 2253174.5 Extensions: A request from the grantor for more time to spend down funding and or complete programmatic goals. Requests for extensions are normally required prior to the grant ending date. Federal Award: Federal financial assistance and federal cost-reimbursement contracts that non- federal entities receive directly from the federal awarding agencies or indirectly from pass- through entities. Federal Awarding Agency: The federal agency that provides an award directly to the recipient. Federal Financial Assistance: Assistance that nonfederal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations and other assistance. Federal Funding Percentage: The percentage of grant award that is federally funded. Federal OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments (relocated to 2 CFR, Part 225): This circular establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts and other agreements with state and local governments and federally-recognized Indian Tribal governments. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a87.pdf Federal OMB Circular A-102, Grants and Cooperative Agreements with State and Local Governments Common Rule: This circular establishes consistency and uniformity among federal agencies and federal grantees and sub-grantees (sub-recipients) in the management of grants and cooperative agreements with state, local and federally-recognized Indian Tribal governments. (Please be aware that the federal awarding agency’s Implementing Rules may have administrative requirements that differ from the Common Rule requirements. Therefore, it is imperative that the Grant Project Manager review the federal agency’s Implementing Rules to ensure that the Town is in compliance with the applicable administrative requirements. The Implementing Rules are outlined in the applicable Code of Federal Regulations.) Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a102/a102.pdf Federal OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (relocated to 2 CFR, Part 215): This circular sets forth standards for obtaining consistency and uniformity among grantees and sub-grantees (sub-recipients) in the management of grants and cooperative agreements with institutions of higher education, hospitals and other non-profit organizations. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a110/2cfr215-0.pdf 21 2253174.5 Federal OMB A-122, Cost Principles for Non-Profit Organization (relocated to 2 CFR, Part 215): This circular establishes principles and standards for determining the costs of federal grants, contract and other agreements with non-profit organizations. The principles are designed to provide that the federal government bears its fair share of costs except where restricted or prohibited by law. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a122.pdf Federal OMB A-133, Audits of State, Local Governments, and Non-Profit Organizations: This circular is issued pursuant to the Single Audit Act of 1984, P.L. 98502, and the Single Audit Act Amendment of 1996 P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among federal agencies for the audit of states, local governments and non-profit organizations expending federal awards. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf Federal OMB A-133 Compliance Supplement: The Compliance Supplement is based on the requirements of the Single Audit Act Amendments of 1996, as amended, and 1997 revisions to OMB Circular A-133, which provided for the issuance of a Compliance Supplement to assist auditors in performing the required audits. (While the Supplement is intended to provide a tool to both federal grantor agencies and auditors in setting forth the important provisions of federal assistance programs, it also provides guidance to recipients of federal assisted programs. It includes program objectives, procedures, and compliance requirements.) Visit: http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2012 Grant Fund: A fund created by the Town Council (Special Revenue Fund – Fund 400) to provide accounting for grant opportunities that arise during each fiscal year. Grantor Agency: The federal, state, local or private agency or organization that provided the grant funding and/or grant funding oversight. Grant Award Budget: The budget for the awarded grant that is based on the amount and breakdown of the award. The budget may be for less than, equal to, or greater than one year. Grant Award Period: The period of time for which the grant is awarded. Grant Contract: A contract that defines the grant’s requirements and restrictions. The Grant Project Manager shall provide the Finance Division a complete, approved signed copy of each grant contract. Grant Description: Description of the grant or contracted services. 22 2253174.5 Grantee: The organization that receives a grant directly from the grantor agency and assumes legal and financial responsibility and accountability both for the awarded funds and for the performance of the grant-supported activity. Grant Management System: The Town’s data collection system for grants that provides information about grants utilized by the Town, from the initial information stage during the grant application process to the tracking of proceeds and expenditures after the grant is awarded and accepted. The system might consist of an integrated solution or a combination of an Excel file for the initial stage and MUNIS for tracking after the grant award. Grant Number: At least one grant number must be assigned to uniquely identify and track each grant award except for federal grants. All federal grants must be identified and tracked using two external grant numbers: (1) CFDA number assigned by the federal awarding agency and (2) grant/contract/IGA number assigned by the grantor or pass-through agency. The Town also uses an internal numbering system for grants. Grant Priority Form: An internal form that accompanies each department’s budget request at the beginning of each fiscal year or whenever a grant becomes available. Departments must follow their priority list when considering the submittal of grants. Grant Project Manager: The person managing the grant and responsible for compliance with the terms of the applicable grant including the appropriate records retention. Grants: A grant is a contribution or gift of cash or other assets to be used or expended for a specified purpose, activity, project or facility. Grant agreements usually specify the maximum amount of funding, the scope of work to be done, the grant period (e.g., single or multi-year) and any special conditions applicable to the program. Indirect Costs: Those costs incurred for a common or Town-wide objective that benefits more than one grant program or project. Such costs are not readily assignable to the cost objective specifically benefited. In-Kind Contributions: Contributions in the form of goods and/or services rather than in cash. Invoice Process: Original invoices are sent directly to Accounts Payable. Copies of invoices are sent to the respective department for approval of payment. The payment request is accomplished based on the purchase order number that was previously approved by the general ledger accounting system. Copies of the check register reports are maintained in Accounts Payable and are submitted for approval to the Finance Director, Town Manager, Town Clerk and Mayor. Lead Agency: The agency that will be responsible for assuring that compliance of grant requirements when multiple agencies are involved in a grant. 23 2253174.5 MUNIS: The Town-wide financial management and accounting software system administered by the Finance Division. The MUNIS general ledger and related records represent the Town’s official financial records and, therefore, all program financial activity and related account balances must be recorded in the general ledger. (If the Grant Project Manager maintains program financial activity and account balances information outside of MUNIS, the Grant Project Manager must ensure that the supplemental records reconcile to MUNIS.) One-time Grants: Funding from a grantor agency that is provided for a limited duration for a specified project and/or program. Ongoing Grants: The funding from a grantor agency which is expected to be provided year after year for a specified program or project. Partnership Grants: Grants which require a binding agreement with another agency for the purpose of implementing a comprehensive program. The Town may co-sponsor, serve as fiscal agent or join with multiple sponsored community-based consortia or other jurisdictions when clear public benefit to Town residents can be demonstrated. The Town shall not act solely as fiscal agent for non-profit entities without specific direction and approval from the Town Manager and Town Attorney and in consultation with the Finance Division. Pass-Through Grantor: An entity that provides awards to a sub-recipient in order to carry out a program. Retention Period: Project records must be maintained for the required period after the awarding agency determined that the grantee has met all the project requirements and the project has been accepted for closeout. Records shall be maintained for a minimum of three years depending on the grant. All grant and project records shall be uploaded into the Town’s system and hardcopies of the grant shall be maintained and retained according to the State’s records retention schedules. All financial records will be housed in the Finance Division. Shared Revenues: Revenues levied by another governmental entity and shared with the Town. They are generally distributed on a predetermined basis, often in proportion of the amount collected from within the state or county. Signature of Authority: The Town Manager is the signature authority for all grant submittals and expenditures. Single Audit Act of 1984 and Amendments of 1996: Requires governmental entities that spend over $300,000 a year in federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA), which is audited annually. (OMB Circular A-l33 revised this threshold to $750,000 beginning in 2015.) This schedule is the responsibility of the Town Finance Division. OMB 24 2253174.5 Circular A-133 incorporates the requirements of the Single Audit Act. Copies of the Town’s most recent Single Audit Reporting Package are available upon request from the Finance Division. The Single Audit Act was enacted to ensure the accurate accounting of federal grant funds are in compliance with program standards. Material noncompliance findings cited in the Town’s Single Audit Reporting Package, including failure to accurately report federal expenditures on the Schedule of Expenditures of Federal Awards, could result in loss of grant funding. Grantors are required to monitor their sub-recipient’s single audit findings to help ensure that findings are corrected. The Finance Division and the department administering the grant ensures that grant activity is accurately reported on both the grantor financial reports filed with the grantor agencies and the Schedule of Expenditures of Federal Awards prepared by the Finance Division for the Town’s Single Audit Reporting Package. Supplanting: Under federal and state requirements, the Town may use federal or state funds to supplement and/or increase the level of funds associated with a project. A Town may not use federal or state funds to offset the cost of a project that has funding appropriation within the Town’s budget. If a federal or state grant has supplanting requirements, the Town shall not deliberately use the federal/state funds to reduce federal, state or local funds already appropriated for the same purpose. If for some reason, a reduction in the program level of effort for funding occurs, the Town may be required to provide documentation that the reduction did not occur as a result of supplanting. 25 2253174.5 APPENDIX A: Grant Priority Template Department: Grant Request Project List for FY __-__ Project Name Council Goal/CIP Relation Brief Description Target Dates Priority Funding Amounts Grant Opportunities Alternative Plan if not funded by grants Potential Project Manager This form can be found on the Intranet under Document Library. 26 2253174.5 APPENDIX B: OMB Circular and Publications Descriptions Catalog of Federal Domestic Assistance: This site provides a full listing of all federal programs available to state and local governments (including the District of Columbia); federally- recognized Indian tribal governments; territories (and possessions) of the United States; domestic public, quasi- public, and private profit and non-profit organizations and institutions; specialized groups; and individuals. Visit: https://www.cfda.gov/ Code of Federal Regulations (CFR): This site provides the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the federal government. Visit: http://www.gpoaccess.gov/cfr/index.html Federal OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments (relocated to 2 CFR, Part 225): This circular establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments and federally-recognized Indian Tribal governments. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a87.pdf Federal OMB Circular A-102, Grants and Cooperative Agreements with State and Local Governments Common Rule: This circular establishes consistency and uniformity among federal agencies and federal grantees and sub-grantees (sub-recipients) in the management of grants and cooperative agreements with state, local, and federally recognized Indian Tribal governments. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a102/a102.pdf Federal OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (relocated to 2 CFR, Part 215): This circular sets forth standards for obtaining consistency and uniformity among grantees and sub-grantees (sub-recipients) in the management of grants and cooperative agreements with institutions of higher education, hospitals and other non-profit organizations. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a110/2cfr215-0.pdf Federal OMB A-122, Cost Principles for Non-Profit Organization (relocated to 2 CFR, Part 215): This circular establishes principles and standards for determine cost of federal grants, contract and other agreements with non-profit organization. The principles are designed to provide that the federal government bears its fair share of costs except where restricted or prohibited by law. Visit http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105_a122.pdf 27 2253174.5 Federal OMB A-133, Audits of State, Local Governments, and Non-Profit Organizations: This circular is issued pursuant to the Single Audit Act of 1984, P.L. 98502, and the Single Audit Act Amendment of 1996 P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among federal agencies for the audit of states, local governments and non-profit organizations expending federal awards. Visit: http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf Federal OMB A-133 Compliance Supplement: The compliance supplement is based on the requirements of the Single Audit Act Amendments of 1996 and 1997 revisions to OMB Circular A-133, which provided for the issuance of a compliance supplement to assist auditors in performing the required audits. While supplement is intended to provide a tool to both federal grantor agencies and auditors in setting forth the important provisions of federal assistance programs, it also provides guidance to recipients of federal assisted programs. It includes program objectives, procedures, and compliance requirements. Visit: http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2012 Grants Management Common Rule: On March 12, 1987, the President directed the federal grant making agencies to issue a grants management common rule to adopt government wide terms and conditions for grants to states and local governments. In 1988, OMB revised Circular A-102 to include guidance to federal agencies on matters not covered by the grants management common rule. The attachments to Circular A-102 were replaced by the grants management common rule. OMB maintains a chart which includes the locations of federal agency codifications of the grants management common rule. It is important for a grantee to review the regulations of their federal awarding agency. Visit: http://www.whitehouse.gov/omb/grants_chart/ Single Audit Act of 1984 and Amendments of 1996: The Act requires governmental entities that spend over $300,000 a year in federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA), which is audited annually. (OMB Circular A-l33 revised this threshold to $750,000 beginning in 2015.) This is the responsibility of the Town Finance Division. OMB Circular A-133 incorporates the requirements of the Single Audit Act. Copies of the Town’s most recent Single Audit Reporting Package are available upon request from the Finance Division. The Single Audit Act was enacted to ensure the accurate accounting of federal grant funds are in compliance with program standards. Material non-compliance findings cited in the Town’s Single Audit Reporting Package, including failure to accurately report federal expenditures on the Schedule of Expenditures of Federal Awards, could result in loss of grant funding. Grantors are required to monitor their sub-recipient’s single audit findings to help ensure that findings are corrected. The Finance Division and the department administering the grant ensures that grant activity is accurately reported on both the grantor financial reports filed with the grantor agencies 28 2253174.5 and the Schedule of Expenditures of Federal Awards prepared by the Finance Division for the Town’s Single Audit Reporting Package. 29 2253174.5 APPENDIX C: Grant Project Profile Worksheet GRANT PROJECT PROFILE WORKSHEET 1. In one sentence, describe your project idea. What will you do? Where? With whom? When? And why? 2. What broad categories of Town needs or opportunities does your project address? (Think in terms of general labels or frames.) 3. Describe the specific need or issue in the Town that your project will address. In our Town, the current situation is this: 4. What specific changes or outcomes do you intend to achieve in the Town as a result of your project? We intend to achieve the following specific outcomes: 5. What are the major steps you will need to take to make these changes happen? 6. What resources will you need to accomplish these steps? (people, equipment, materials, training, supplies, services, other Town departments, etc.) 7. Approximate total cost: $_____________ Match $_____________ 8. Who else has a vested interest in working with you as partners on this problem or opportunity? 9. What information, tools, data, etc., will you use to decide whether your project succeeded? 10. Who will be the grant project manager? Submitted By: Date:: Telephone: This form can be found on the Intranet under Document Library. 30 2253174.5 APPENDIX D: Grant Check List Project Name: App. Due Date: / / Department: Contact Name: Ext. # _ I. Procedures for Developing and Submitting Grant Applications • Confirm purpose of the grant project meets Town Council Strategic Plan Goals and Operational Priorities/department goals. • Read and understand entire grant application to ensure that your department has the appropriate resources to comply with the grantor’s requirements. • Develop grant concept including estimated budget and expected funding sources approved by Department Director. • Grant entered into the grant management system. This system includes project description, total cost, grant amount requested, source of funding, match, ongoing cost implications including additional staff, if any, special conditions and application due date. • Consult with other affected departments (e.g. engineering if it is a construction project) who will support or have the capacity to implement your project. • Town Attorney to review if Resolution is required prior to grant submittals. • Obtain Town Manager’s signature prior to grant application submittal. • Prepare draft Council communication requesting authorization to apply and accept grant if necessary. • Complete final review and editing (a pair of fresh eyes are best), making sure to check the application against the grantor’s instructions or the RFP. • Send copy of the signed application to the Grant Project Manager for archiving and distribution. II. Procedures for Accepting Grant Awards and Post-Award Procedures Congratulations! Now you need to: • Whoever receives an award notice/notification should send a copy of the award notice/notification to Grant Project Manager for archiving and distribution to Finance. Grant Project Manager will forward a copy of the award agreement to the Finance Division with a completed contract/grant information sheet for tracking purposes. • Set up a meeting with the Grant Project Manager and the Finance Division to reconcile the accounts associated with the grant. During this meeting, you will review the grant requirements and you will be responsible for meeting all of the grant requirements and the current Town and/or State approved record retention schedules. TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Community Services Staff Contact Information:Mark Mayer - (480)816-5190 /mmayer@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of Resolution 2015-04, establishing the Fountain Lake islands as natural areas Applicant:N/A Applicant Contact Information:N/A Property Location:N/A Related Ordinance,Policy or Guiding Principle:N/A Staff Summary (background):The three islands in Fountain Park lake had been maintained for years first by MCO and later by the Town.The Town's role consisted of having the landscape contractor visit the islands twice annually to remove weeds and trim the islands back to give them a more landscaped look. Several years ago local resident Bill Schmitt approached the prior Park and Recreation Commission to request that the islands be maintained more as natural areas due to their attractiveness in a desert environment for wildlife. Mr.Schmitt also agreed to assume the responsibility along with other volunteers to maintain the islands by removing weeds and replanting some native vegetation on the islands. Over the last several years Mr.Schmitt and his volunteers have continued to maintain the islands as natural areas.Mr.Schmitt's request is to have the Council officially designate the islands as natural areas. Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):Maintenance of the islands is no longer being done under the current landcape contract for Fountain Park 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):The newly created Community Services Advisory Commission supports the request Staff Recommendation(s):Staff supports the request Page 1 of 2 List Attachment(s):Mapof the park showing the islands / Resolution No.2015-04 SUGGESTED MOTION (for council use):Motion to Approve Resolution No. -2015-04,designating the islands in Fountain Park as natural areas Prepared by: NA 2/12/2015 Director's Approval: W_Q.,C <\^ NA V 2/12/2015 Appipved: C^UX^QanOa^^ Keri^uchanan,Town Manager 2/26/2015 Pa«e2of2 FountainLakeIslandsFountainHills,ArizonaGreatBlueHeronIsland FOUNTAIN HILLS BLVD PERFORMANCE PAD COMMUNITY CENTER SHEA BLVD Public Art Sites Future Paths->-" CCP Concrete Circular Pads Built in 1970,Fountain Hills World Famous Fountain draws from a 33 acre,million gallon lake and reaches a height of 330 ft. with two pumps for 10 minutes on the hour from Sam to 9pm daily. On specie occasions the fountain can attain 560 ft.with all three pumps running.In the event winds exceed 10 mph the fountain will automatically shut-down. NOTE:ALL RAMADAS ARE LIT AND HAVE ELECTRICAL OUTLETS Art sites can be added to the new west lake path. uuiuuei i,zuuo FOUNTAIN PARK 12925 N SAGUARO BLVD ACTIVITY ARFAS PLAYGROUND ACTIVITY AREA ROTARY SPLASH PAD GREAT LAWN SLAND VISTA PERFORMANCE PAD SHADED HILLS REO YUCCA LAWN GOLDEN BARREL LAWN VETERAN'S MEMORIAL RED YUCCA RAMADA - 2 STD.TABLES - 1 HANDICAP TABLE - 1 BBO GOLDEN BARREL RAMADA - 2 STB TABLES HANDICAP TABLE - 1 B6Q RESOLUTION NO.2015-04 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,DESIGNATING THE ISLANDS IN THE FOUNTAIN PARK LAKE AS NATURAL GREEN AREAS. WHEREAS,the islands (the "Islands")in Fountain Park Lake (the "Lake")serve the birds on the Lake by providing not only shade, but nesting habitat for some species; and WHEREAS,the Lake and Islands serve as a unique resource to the community in our desert environment by providing a natural sanctuary without extensive human pressure; and WHEREAS,the Lake and the Islands serve as an oasis in the desert that attracts and serves a great diversity of plants and wildlife;and WHEREAS,the Islands are currently being maintained as natural areas by local volunteers;and WHEREAS,the Mayor and Council of the Town of Fountain Hills (the "Town Council")desire to designate the Islands as natural green areas. NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2.The Town Council hereby designates the Islands as natural green areas and directs that the Islands shall continue to be maintained as natural areas to help protect the Islands from human impact. SECTION 3. 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, March 5,2015. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: Linda M.Kavanagh,Mayor REVIEWED BY: Kenneth W.Buchanan,Town Manager 2311438.1 Bevelyn J.Bender,Town Clerk APPROVED AS TO FORM: Andrew J.McGuire,Town Attorney TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type:Regular Session Meeting Date:3/5/2014 Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Ken Buchanan,Town Manager;480-816-5130;kbuchanan@fh.az.gov Strategic Planning Goal:All Operational Priority:All REQUEST TO COUNCIL:DISCUSSION AND CONSIDERATION OF APPROVING action steps recommended at the January 29,2015 Council Retreat. Applicant: Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle: Staff Summary (background):At the Council Retreat held on January 29,2015,Council made recommendations regarding action steps related to agenda items.Staff is seeking approval of the action steps recommended,as delineated in a memorandum from Town Manager Ken Buchanan to the Mayor &Town Council dated March 2,2015. 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):Memorandum from Town Manager Ken Buchanan to the Mayor &Town Council dated March 2,2015. SUGGESTED MOTION (for Council use):MOVE TO APPROVE actions steps recommended at the January 29, 2015 as delineated in the memorandum from Town Manager Ken Buchanan to the Mayor &Town Council dated March 2,2015. Approved:>provea:—> in Buchanan,Town ManagerKenBuctiananTTownManager 2/10/2015 Page 1 of 1 MEMORANDUM DATE: FROM: TO: SUBJECT: March 2,2015 Ken Buchanan,Town Manager Mayor &Town Council 2015 Town Council Retreat Based on our discussions at the Town Council Retreat,staff will begin to develop an action plan and incorporate the items from the action plan in the operating budget for the coming FY2015/16 for Town Council consideration. Note:In the report below,action steps are indicated in bold,underlined text.Action steps are also summarized in the attached spreadsheet. Town Council Worksession The Town Code specifies the times and dates for the regular meetings of the Town Council.It also sets the time and date for a monthly Town Council worksession.Staff presented the possible removal of Work Study requirements for consideration by the Town Council. There was no consensus to change the current Work Study Session process. Financial Forecast/Fiscal Management/Annual Budget The financial forecast portrays yet another 5-years of modestly increased revenues. However, due to fixed increased costs,primarily in public safety,there is a projected shortfall in annual budgets. The Town has maintained adherence to the Town Council Financial Policies adopted in 2012 that establish the framework for overall fiscal planning and management as shown in the Finance Director's memorandum in Appendix (A).Currently,the Town of Fountain Hills maintains a cash balance of $20 million.Approximately,$7.7 million of the cash balance is in the General Fund. The other funds are mostly restricted funds and can only be used for their intended purpose,project or program. Staff reported that the current bonded indebtedness stands at $8,920,000.This includes a General Obligation Bond Refunding for the Library/Museum and McDowell Mountain Preserve, Municipal Property Corporation Bonds for the Community Center and McDowell Mountain Preserve, as well as a Special Assessment Bond for Eagle Mountain Community Facilities District. The Saguaro Boulevard General Obligation Bond in the amount of $7.5 million will be added at the end of 2015. Page 1 of 12 The current Annual Budget assumptions were presented tothe Council.Itis unknown at this point in time how the Governor's Proposed/Final Adopted Budget or any bill passed by the Arizona Legislature will impact the Town of Fountain Hills.Public Safety contracts increase 3% -4.5%annually through 2020.Existing levels of service are projected tobe maintained although they remain very tight.No change in State Shared Revenues distributed on "headcount"could affect Fountain Hills by a mid-decennial census. Total Personnel currently standsat 42 full-time employees and 21 part-time employees,equaling a 52.32 Full Time Equivalents. In summary,the consensus of Council atthe retreat was that further belt tightening will be required to ensure balanced budgets as required by state statute.Some Council members voiced their continued concerns about the need for a property tax, although no consensus/direction regarding the subject was reached. Core Services The Town Council reaffirmed the core services of Public Safety (Law Enforcement,Fire Services and Courts),Administration,Community Services and Development Services inthe Town of Fountain Hills.Currently,the Administrative Services Director is conducting an informal review of staffing levels in relation to the current workloads of the respective services due to a changing economy. Operational Priorities 2014/15 Operational Priorities Review/Status Operational Priorities F/14-lS\lm Facilities Replacement Fund Pavement Management Program Economic Development Plan Fire Station #2 Fountain Lake IGA Page 2 of 12 The Town Council reviewed the status of the 2014/15 Operational Priorities. • The Pavement Management Program is on-going. • The Economic Development Plan priorities are being implemented by a full-time Economic Development Specialist. • The Facilities Replacement Fund has been created and was funded with $147,000. • The Fountain Lake IGA with the Sanitary District is no longer a priority but an effort is underway to implement the Fountain Lake Water Quality Project. • FireStationNo. 2 project is proceedingwith the due diligencephase of acquiringone of the propertiesas requested by the Town Council. 2015/16 Operational Priorities •groaajujujULitUUJUPm Operational Priorities FY15-16 Recommended TheTown Manager presented recommended operational priorities forthe 2015/16 fiscal year. Four new items for consideration were added and consisted of the Rural/Metro Fire Services Contract,Solid WasteServicesContract, implementation of the Environmental Fee,andthe Saguaro Boulevard Project.Fountain Lake IGAand Facilities Replacement were removed as they are currentlyinthe process of being implemented. A business item will be placed on a future Town Council Agenda for ratification of FY15- 16 Operational Priorities. Pase 3 of 12 Strategic Planning Goals Review of 2014/15 Strategic Planning Goals Strategic Planning Goals FY2014-15 Current strategic planning goals were discussed in relation to the updates being recommended by the Strategic Planning Advisory Commission. SPAC recommended Strategic Planning Goals for FY2015-16 SPAC'S Recommended Strategic Planning Goals FY2015-16 Adequate Infmstruttureand arren.iiesfor downtown develcpment 7 Develop reliable funding sourcefor infrastructure maintena EVf Identifyslat*of economk development tooliandttrattcies Promoteret«nton..• and relocation of Quality Businesses Pass 4 of 12 The Strategic Planning Advisory Commission (SPAC)recommended that Council place emphasis onthe following Strategic Planning Goalsinthe coming fiscal year: •16.Adequate infrastructure andamenitiesfor downtown development •12.Develop reliable funding source for infrastructure maintenance • EV6. Identifyslate of economicdevelopmenttoolsand strategies • EV4. Promote retention,expansion and relocation of quality businesses •EV3.Promote a mixed use core in the Downtown OtherSPAC recommended StrategicPlanningGoalsforthe upcomingfiscalyearare: •C3.Solicit Public/Stakeholder Feedback •CR4.Implement Communications Plan of Civic Involvement •CR6.Evaluate Customer Satisfaction on Regular Basis •CR7.Communicate the Role of Local Government A business item will be placed on a future Town Council Agenda for ratification of the Strategic Planning Goals, SPAC Update of the Strategic Plan SPAC is deliberating the required 5-year overall update to Strategic Plan 2010.Staff reported after SPAC finalizes their recommendations,a joint meeting between SPAC and the Town Council will help ensure a mutually agreeable direction concerning a possible 5-year Strategic Plan Update. Capital Improvement Plan/Projects Review of current Capital Projects The Town Manager reported that the current Capital Improvement Plan is in need of updating to develop a more realistic plan. Many projects remain on the books as priorities that were developed under the premise of a 20-year planning horizon.Many of the projects will not come to fruition and should be decommissioned in favor of a more realistic Capital Improvement Plan that is matched to the needs of the community and is commensurate with available funding sources.Town Council Work Study Session(s)were discussed as a means to update and prioritize the projects contained in the CIP. Page 5 of 12 Transportation Capital Road Projects Status Staff provided a report concerning capital road projects currently initiated or recently completed. Major projects are: Saguaro Boulevard $7.1 million Shea Boulevard $4.3 million Zone #1 Asphalt Management Project $1.0 million AOTF Plaza $1.5 million Ashbrook Wash Project $1.4 million Palisades Traffic Signal $400,000 Pavement Management Program Historically, Fountain Hills'pavement management practices have consisted of crack sealing, surface seal and slurry seals by maintenance zone once every seven years that were funded through a combination of HURF,General Funds and CIP Funds. The Pavement Management Plan is comprised of two plans: 1)Pavement Maintenance Plan which was implemented in 2013;and 2) the Asphalt Replacement Plan which is currently under consideration for Town Council Policy and implementation in 2015. The January 2009 Pavement ManagementSummaryPresent Status Report completed by Stantec Consulting recommended an appropriation of $1.2M annually for pavement maintenance projects. Stantec Engineering estimated that $2.8M annually will be required to provide asphalt mill &overlays to 20%of the Town's streets as well as slurry seal or surface seal treatments to the remaining streets.This is a long-term Pavement Management Program that will target one of seven pavement management zones each year and will replace the entire public street network over a 35-year period. The Town Council approved a budget of approximately $1M toward an annual Pavement Maintenance Plan to maintain an acceptable asphalt condition to the street system. While the Pavement Maintenance Plan will provide benefit to prolonging the lifespan of the streets,it is not a long-term,sustainable program without an accompanying Asphalt Replacement Plan. The Pavement Maintenance Plan is perpetual in nature but will not address reconstruction of poorly rated roads, such as Saguaro Boulevard, for which the voters of Fountain Hills recently provided a much needed road bond to address replacement of this 40-year-old arterial street. Additionally, Surface Maintenance Seals are no longer an option for 40-year or older streets. It will be necessary that other similarly aged arterial streets in need of replacement be approached in the same manner as the Saguaro Road Bond Project in the future. Page 6 of 12 Asphalt Maintenance Plan Zone #1 2015/16 Pavement Management Capital Expenditures $1,000,000 accumulated over a 12-month period of both Highway User Fund and Vehicle License Tax. Zone #1-1st Phase is slated as the next pavement maintenance project: - 712,026sq. yd.of asphalt - 3 -year project - Mill&Overlay Glennbrook,EI Pueblo , Grande,Fayette,Pepperwood,and Del Cambre -5o(+)pavement replacement locations -17,500(4-)square yards Town of Fountain Hills ZONE 1 PAVEMENT MANAGEMENT AREA: ASPHALT REPLACEMENT -*-* Asphalt Replacement Plan All asphalt eventually needs to be removed and replaced.In order to create a sustainable Asphalt Replacement Program, the Town of Fountain Hills will need to invest a minimum of $2M annually to begin replacement of asphalt. This will be undertaken through a combination of future CIP Annual Planning and future Road Bonding. In order to adequately fund an Asphalt Replacement Program,the following four recommendations must be implemented together: Maintain the current $1 million annual asphalt maintenance plan from the Vehicle License Tax (VLT)and a portion of the HURF funds. •Consider future Arterial/Major Collector Road General Obligation Bonds for roads with asphalt for 40-year or older streets that have reached their useful life and are beyond useful maintenance efforts. •Reprioritize a portion ofannual Capital Improvement Plan (CIP)funds,where feasible,from the annual one-time construction sales tax to add to a portion of the required annual funding on the Asphalt Replacement Program. •Utilize the available general funds currently used to complete the debt service for the McDowell Mountain Preserve in FY2016/17 and the .2%Sales Tax for the bond repayment for the Community Center and dedicate these funds to an annual Asphalt Replacement Plan in combination with additional reprioritized CIP annual funding, where feasible. Pa«e7of 12 Planned Street Revenue &Road Maintenance and Asphalt Replacement Fiscal Year HURF/VLT Revenue Excise Tax/ General Fund* 2014 $1,000,000 $-0- 2015 $1,000,000 $-0- 2016 $1,000,000 $-0- 2017 $1,000,000 $600,000 2018 $1,000,000 $600,000 2019 $1,000,000 $600,000 2020 $1,000,000 $700,000* 2021 $1,000,000 $1,000,000* 2022 $1,000,000 $1,000,000* 2023 $1,000,000 $1,000,000* 2024 $1,000,000 $1,000,000* 2025 $1,000,000 $1,000,000* Total (est.)$12,000,000 $7,500,000 Total $19,500,000 "Additional monies after Community Center Bond Redemption Economic Development •Tourism Initiative •Business Attraction Initiative Downtown Initiative The Town Manager gave an update on Economic Development.The Business Attraction Initiative continues to be a major area of focus for Fountain Hills.Marketing and promotion of the town and its assets will be a major focus this year as the town reaches out to targeted industries. The Business Retention &Expansion Program will continue its outreach and work with nine targeted local businesses.Social media and the economic development website will continue to grow in importance as economic development tools. Since taking over tourism responsibilities from the Fountain Hills Chamber in 2014, the Town has implemented a comprehensive tourism and recreation program. This program continues to grow through promotion, branding and marketing special events. The push will continue to make Fountain Hills a destination choice in the region. The Downtown Initiative was discussed as an area for opportunity which will involve evaluating previousdowntownstrategiesand focusing on activitiesto implementdowntowninitiativeaction items. Page 8 of 12 The Town Council recently approved a plan to bring the Economic Development Specialist and Tourism Coordinator to full-time status. This required a policy change that was implemented on January1,2015. Inthe FY2014/15 AnnualBudget,the TownCouncilrequireda 60%/40%split of available excise tax revenue to be dedicated to economic development between the Business Attraction/Tourism Initiative and the Downtown Development Fund. The recently approved policy splittheexcisetax revenue,with80%goingtothe Business Attraction/Tourism Initiative and the 20% to the Downtown Development Fund, which will assist in adequately funding the two full-time positions. Public Safety TheTown Manager provided an update onthecurrent issues surrounding public safety. Law Enforcement The current contract with MCSO is for a 5-year period which will come to fruition June 2017. The Town Manager reiterated thattheTownof Fountain Hillshasthemostcost-effective and best law enforcement service in Arizona. Fire/EMS The Town Manager discussed two issues with the Town Council that will require further discussion in regular council meetings.The first isthe need for further discussion ofthe Rural/Metro Contract for Fire Services which comes to fruition on June 30,2016 but requires consideration for renegotiations a yearin advance.TheTown Manager recommended that Council consider a two-year extension ofthecurrent contract.Thiswillallowthe Rural/Metro bankruptcy reorganization to play out before a 5-year contract is again considered by the Town. The Town Manager also stated that Rural/Metro is moving forward with a proposal to change its emergency medical transport ambulances to fire rescue units.There will not be any increased costtothe Town,andthis will provide four extra firefighters pershift under the direct command oftheFireChiefratherthana separate ambulance service supervisor.Adraft agreement is currently under review by staff.Agenda items concerning thesetwo Rural/Metro contractual issues will be brought to the Town Council in the near future. Citizen Advisory Commissions Status of Commissions Consolidation The Community Services Director gave a status report to Council regarding the consolidation of the Community Center Advisory Commission,Senior Services Advisory Commission,and the Parks& RecreationCommissionintothe CommunityServicesAdvisory Commission.The director reported that one of the positive outcomes is that there are more substantial meeting agenda items and discussions at the Community Services Advisory Commission,whereas some ofthe other commissions had difficulty having enough business to justify holding meetings.The director reported that commissioners have observed that they have a better understanding about Pase9of 12 the operations of the departmentand a "big picture"perspectiveon issues. He also reportedthat through attrition the commission membership is now down to 13 members. Consideration of Elimination of Public Safety Advisory Commission The Town Manager recommended that the Council consider the elimination of the Public Safety Advisory Commission.He stated that the Public Safety Advisory Commission was established around the time that the Town eliminated the Marshal's Department and began contracting out public safety services to the Maricopa County Sheriffs Office.Mayor Kavanagh and a number of Councilmembers echoed that while in the early years the commission was very active in addressing the Town's public safety issues,but the issues no longer exist.There was a Council consensus for staff to bring an agenda item before Council to decommission or abolish the Public Safety Advisory Commission. Strategic Planning Advisory Commission There was a discussion about the Strategic Planning Advisory Commission (SPAC).The Town Manager pointed out that it is important for the Council and SPAC to be on the same page early on in the strategic planning process and prioritization,ensuring that when SPAC comes forward with recommendations the Council better understands the background.There was consensus by Council to provide direction to SPAC about its charge/goals and mission.It was agreed that a joint meeting between Council and SPAC or a possible Work Study Session would help facilitate this. Town Council Items for Discussion and Prioritization Capital Improvement Plan Review The Capital Improvement Plan was presented to the Council, which included a presentation on the status of the following capital improvement projects initiated in FY2014-15: Drainage—Ashbrook Wash $1,394,906 Fire Station 2 Relocation 3,620,140 Fountain Park,Phase VI 952,149 Shea Blvd.Widening 1,111,336 Saguaro Blvd.Reconstruction 7,050183 Traffic Signal - Palisades & Saguaro 461,867 The Finance Director indicated that the fund balance as of December 31,2014 was $14,615,507. Aftertakingintoaccountthe projectsundertakenin FY 2014-15,the availablebalancewas $356,906(not reflecting funding to be received from grants or development fees). The Town Manager indicated that staff will be seeking Council direction and guidance at a future Council meeting on a number of projects contained in the Capital Improvement Plan that may no longer be viable or relevant for the Town of Fountain Hills.Several of the projects donothave dedicated funding sources or goback several yearswhen Council priorities and ability to fund were substantially different. Downtown Decorative Lights The Council discussed the holiday lights on Avenue of the Fountains. While there was consensus in supportof lightingAvenue of the Fountainsyearround,a numberof Page 10 of 12 Councilmembers expressedconcernaboutthe ongoingcost and whetherit wasa highpriorityfor the Town. Councilmember Magazine suggested civic organizations in town might raise money tohelp fund the lighting.Mayor Kavanagh recommended thatthecivic organizations seekgrant funding from Republic Services to helppayforthecostof the lighting.Another suggestion was businesses located along the Avenue could sponsor the lighting much like the town's Adopt-A- Street Program.Vice Mayor Yates and Councilmember Magazine agreed to co-chair and bring back a proposal for Council consideration that would fully fund and pay for year round lighting on Avenue of the Fountains. Modifying Fountain Time of Operation Vice Mayor Yates recommended thatthe operation timesof the fountain be changed to be more impactful and predictable for visitors.The consensus of the Council was forVice Mayor Yates to work with Community Services Director Mark Mayer in developing a proposed fountain schedule based on a variety of factors such as water quality/aeration needs, electric costs,minimizing wear and tear on the water pumps,and other factors.After thoroughly researching the optimal fountain run times,the Vice Mayor and Community Services Director will present their findings and recommendations tothe Town Council for consideration. Zoning/Prepping Town-owned 15Acresof Property(FourPeaks Plaza,Tract A) Vice Mayor Yates recommended thatthe Council change the zoning and prepare the Town- owned property at Four Peaks Plaza,Tract A,for development.He indicated that the property was underutilized andcouldbringadditionalrevenueto the Town if developed.The consensus was for Vice Mayor Yates to work with ED Specialist Scott Cooper to bring back to Council a more fully-developed concept for Council consideration. AccelerateDevelopment of the Ellman Companies Master Planned Development The Council discussed the possibility of accelerating development ofthe Ellman Companies proposed master planned development in Fountain Hills.However,Town Attorney Andrew McGuire indicated that there were a number of financial hurdles that had to be addressed first on the part of Ellman to initiate the project before the Council could work with Ellman in accelerating the project.The consensus of the Council was to take no action at this time. Way-Finding Signs Therewasa discussionaboutthe differentway-findingsigns locatedin locationsintown. A number of different designs and materials,as well as some signs with business names,were provided in the Council Retreat packet.The consensus ofthe Council was for Vice Mayor Yates and Brown to work with ED Specialist Scott Cooper and Director of Development Services Paul Mood to come back with a proposal that includes the number of signs, proposed locations,and total cost for Council consideration. Circulation,Lighting,Safety Issues on Avenue of the Fountains Councilmember Hansen expressed concerns about circulation,lighting,and safety issues on Avenue of the Fountains.The Town Manager stated that staff will bring a concept of lights at the intersection of Saguaro at a future Council meeting.Development Services Director Paul Mood stated that the Town Engineer will review Verde River Drive to determine if it meets warrants for a stop sign. Page 11 of 12 Traffic Issues Councilmember Hansen shared her concerns about traffic issues she has observed throughout town. There was no Council consensus on traffic improvements due to need to follow established standards.The Public Works Director will report back to Council at a later date on statistics for pedestrian traffic, traffic,and fatalities at the top 10 intersections over past five years.He stated that the statistics will assist in determining if a traffic study is warranted. Digital Sign on Shea Mayor Kavanagh discussed the concept of a digital on Shea to promote special events in Fountain Hills. She thought a digital sign would be easy to update and help direct visitors to town events.The consensus was to further review feasibility of location on Shea and costs before bringing back to the Council for consideration.ED Specialist Scott Cooper will also work with Recreation Supervisor Rachael Goodwin in researching grants that might be available to fund a digital sign. Collection of Non-Resident Taxes Mayor Kavanagh gave an update on a proposed bill that would require businesses to collect sales tax from non-residents who make purchases and send the items out of state. Since this was only a reportfromthe Mayoraboutthe proposedlegislationanddid not presentan actionitem,no further action was recommended. Business Licenses for All Shows/Events MayorKavanaghexpressedconcernthatthere are a numberof businessesthat participateinthe fairsandspecialeventswithoutbusinesslicenses. FinanceDirectorCraigRudolphyreported thattheTownstaffis doingall it canto ensurethat all businesses,includingthoseparticipatingat shows and events, have business licenses. He stated that staff has even reached out to the Fountain Hills Chamber of Commerce with a proposal of including the business license fee in thetotaleventregistrationfee for the fairsorganizedby the Chamber. Re-Zoning Commercial Property to Residential Councilmember Magazinerecommendedthatthe Townof FountainHillsrezone commercial property to residential property inthe downtown and other areas of town with vacant parcels. Scott Cooper will review further for logical lot assemblages and will bring back a report for Council review and discussion.Letters will also be sent to property owners of commercial property to ascertain interest in rezoning.Senior Planner Bob Rodgers will also assist with this. Establishing Council Liaisons for Select Fountain HillsOrganizations Councilmember Magazine recommended that Councilmembers be assigned to serve as Council liaisonsto variousFountainHills organizations to help improveworkingrelationswiththese organizations.The Town Attorney stated that formally assigningCouncilmembers to attend meetings might cause Open Meeting law concerns.He suggested that individual Councilmembers may informally attend meetings of these organizations and report back under Reports from Council on the Town Council agenda at meetings.It was Council's consensus that this was a good idea. Attachment Page 12 of 12 COUNCIL RETREAT -January 29,2015 Council Retreat Agenda Item Action Step Assigned to Projected Council Date Core Services Informal review of staffing levels in relation to current workloads Ken Buchanan/Grady Miller FY15-16 Operational Priorities Ratification by Council Ken Buchanan March 5,2015 Priority -Rural/Metro contract negotiations Negotiate with Rural/Metro for 2-year contract extension beginning in June 2015 Ken Buchanan/Randy Roberts/ Andrew McGuire Priority -Solidwaste services negotiations/RFP Negotiate with Republic Services and/or issue RFP Ken Buchanan/Paul Mood/ Raymond Rees/Andrew McGuire Priority -Saguaro Blvd.project Monitor construction Ken Buchanan/Paul Mood Priority -Environmental Fee Implement billing process Ken Buchanan/Craig Rudolphy/Paul Mood/ Raymond Rees/Andrew McGuire Pavement Management Program Approve Asphalt Replacement Plan;Continue to implement Pavement Maintenance Plan Ken Buchanan/Paul Mood Economic Development Plan Implementation of priorities Ken Buchanan/Scott Cooper Fire Station #2 Policy,determination of site,and funding Ken Buchanan/Craig Rudolphy/Paul Mood/Randy Roberts/Andrew McGuire FY15-16 Strategic Planning Goals Ratification by Council Ken Buchanan March 5,2015 Priority -EV3 Promote a mixed use core Implement Downtown Area Specific Plan (Downtown Vision Master Plan)Ken Buchanan/Scott Cooper/ Paul Mood/Bob Rodgers Priority -EV4 Promote retention,expansion and relocation of quality businesses Implement Economic Development Plan priorities Ken Buchanan/Scott Cooper Priority - EV6 Identify slate of economic development tools and strategies Stimulate economic growh with potential use of tax incentives,fee abatements, etc. Ken Buchanan/Scott Cooper Priority -12 Develop reliable funding source for infrastructure maintenance Continue to build the Facilities Maintenance Fund and Capital Improvement Program Ken Buchanan/Paul Mood/ Craig Rudolphy Priority -16 Adequate infrastructure and amenities for downtown development Careful review of development plans and implementation of Downtown Area Specific Plan Ken Buchanan/Paul Mood/ Craig Rudolphy/Scott Cooper C3 Solicit Public/Stakeholder Feedback Obtain recommendations from Board and Commissions;hold public meetings regarding specific issues or projects Ken Buchanan/Grady Miller CR4 Implement communications plan for civic involvement Update Town website regularly;provide information to media,e.g.,Channel 11, social and print media;hold public meetings;speaker's bureau Ken Buchanan/Grady Miller CR6 Evaluate customer satisfaction on regular basis Listen to citizen input on a regular basis and adjust service as necessary.Ken Buchanan/Grady Miller C7 Communicate the role of local government Make Town policies,resolutions and ordinances available to the public;hold Citizens'Academy All Town Staff SPAC Update of Strategic Plan Joint Council-SPAC Meeting to determine path forward Ken Buchanan Review Current Capital Projects Special Session to review and update CIP Ken Buchanan/Craig Rudolphy/ Paul Mood/Mark Mayer March 10,2015 lof3 COUNCIL RETREAT -January 29,2015 Council Retreat Agenda Item Action Step Assigned to Projected Council Date Asphalt Replacement Program Maintain the current $1 million annual asphalt maintenance program from the Vehicle License Tax and a portion of the HURF funds. Ken Buchanan/Craig Rudolphy/Paul Mood Consider future Arterial/Major Collector Road Bonds for roads with asphalt 40- year or older that have reached their useful life and are beyond useful maintenance efforts. Ken Buchanan/Paul Mood/Bev Bender/ Craig Rudolphy/Andrew McGuire Reprioritize a portion of annual Capital Improvement Plan (CIP)funds,where feasible,from the annual one-time construction sales tax to add to a portion of the required annual funding on the Asphalt Replacement Program. Ken Buchanan/Craig Rudolphy/Paul Mood Utilize the .2%Sales Tax in FY2016/17 after paying for the McDowell Mountain Preserve and dedicate this funding to an annual Asphalt Replacement Program in combination with additional reprioritized CIP annual funding,when feasible. Ken Buchanan/Craig Rudolphy/Paul Mood Public Safety Consider 5-year renewal of MCSO Contract expiring June2017 Negotiate with MSCO beginning June 2016 Ken Buchanan/Dave Letourneau/ Andrew McGuire/Grady Miller May 2017 Consider 2-yr extension to Rural/Metro contract expiring June 30,2016 Negotiate with Rural/Metro beginning June 2015 Ken Buchanan/Randy Roberts/ Andrew McGuire/Grady Miller May 2016 Consider changing EMS to fire rescue units Negotiate contract with Rural/Metro Ken Buchanan/Randy Roberts/Grady Miller Public Safety Commission Consider commission sunset Ken Buchanan February 19,2015 Downtown Decorative Lights Proposal to fully fund year round lighting on Avenue of the Fountains ViceMayor Yates/Councilmember Magazine Modifying Fountain Time of Operation Develop proposed fountain schedule based on a variety of factors,such as water quality/aeration needs,electric costs,and minimizing wear and tear on pumps Vice Mayor Yates/Mark Mayer Zoning/Prepping Town-owned 15 Acres of Property (Four Peaks Plaza,Tract A) Develop concept to change zoning and prepare the land for development.Vice Mayor Yates/Scott Cooper/ Bob Rodgers Way-finding Signs Develop proposal that includes the number of signs,proposed locations,and total cost. Vice Mayor Yates/Councilmember Brown Scott Cooper/Paul Mood Circulation,Lighting,Safety Issues on Avenue of the Fountains Develop lighting concept for intersection of Saguaro Blvd.and Avenue of the Fountains Councilmember Hansen/Paul Mood Review Verde River Drive to determine if it meets warrants for a stop sign Councilmember Hansen/Paul Mood Traffic Issues Report to Council on statistics for pedestrian traffic,traffic,and fatalities at the top 10 intersections over the past five years. Councilmember Hansen/ Paul Mood/Randy Harrel 2 of 3 COUNCIL RETREAT -January 29,2015 Council Retreat Agenda Item Action Step Assigned to Projected Council Date Digital Sign on Shea Scott Cooper/ Mark Mayer/Rachael Goodwin Review feasibility of location on Shea and costs Mayor Kavanagh/Paul Mood Research grants that might be available to fund a digital sign Mayor Kavanagh/Scott Cooper/ Mark Mayer/Rachael Goodwin Rezoning Commercial Property to Residential Report to Council on logical lot assemblages.Send letters to property owners of commercial property to ascertain interest in rezoning. Councilmember Magazine/ Scott Cooper/Paul Mood/Bob Rodgers 3 of 3 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/15 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Ken Buchanan,Town Manager,480-816-5130,kbuchanan(5)fh.az.gov Strategic Priority:All Council Goal:All REPORT TO COUNCIL (Agenda Language):CONSIDERATION of ratifying STRATEGIC PLANNING GOALS and OPERATIONAL PRIORITIES for FY2015-16. Applicant:NA Applicant Contact Information:NA Property Location:NA Related Ordinance,Policy or Guiding Principle: Staff Summary (background):At the Council Retreat held on January 29,2015,Strategic Planning Goals and Operational Priorities for FY2015-16 were recommended by Council.Staff is requesting ratification of those Strategic Planning Goals and Operational Priorities for FY2015-16,as shown on the attached slides,so they may be taken into consideration in developing the budget for the upcoming fiscal year. Risk Analysis (options or alternatives with implications):NA Fiscal Impact (initial and ongoing costs;budget status):NA Budget Reference (page number):NA Recommendation(s)by Board(s)or Commission(s):NA Staff Recommendation(s):Approve. Attachment(s):Slides entitled Strategic Planning Goals FY2015-16 and Operational Priorities FY2015-16. SUGGESTED MOTION (for council):MOVE to ratify Strategic Planning Goals and Operational Priorities for FY2015-16 as recommended at the January 29,2015 Council Retreat. Approved: Ken Buchanan,Town Manager Date lofl Operational Priorities Operational Priorities FY14-15 Pavement Management Program Economic Development Plan Fountain Lake IGA Fire Station #2 Facilities Replacement Fund Pavement Management Program Economic Development Plan Rural/Metro Contract Negotiations Solid Waste Services Negotiations/RFP Saguaro Blvd Project Fire Station #2 Environmental Fee Operational Priorities FY15-16 Recommended Strategic Planning Goals Strategic Planning Goals FY2014-15 C3 Solicit Public/Stakeholder Feedback EV4 Promote retention, expansion and relocation of Quality Businesses I2 Develop reliable funding source for infrastructure maintenance CR7 Communicate the Role of Local Government I3 Pavement Management Index Program EV3 Promote a mixed use core CR4 Implement communications plan for civic involvement EV1 Develop Economic Development Plan CR6 Evaluate Customer Satisfaction on regular basis SPAC’S Recommended Strategic Planning Goals FY2015-16 C3 Solicit Public/Stakeholder Feedback EV4 Promote retention, expansion and relocation of Quality Businesses I2 Develop reliable funding source for infrastructure maintenance CR7 Communicate the Role of Local Government I6 Adequate infrastructure and amenities for downtown development CR4 Implement communications plan for civic involvement EV3 Promote a mixed use core EV6 Identify slate of economic development tools and strategies CR6 Evaluate Customer Satisfaction on regular basis SPAC recommended emphasis „_-_OperationalPrioritiesFY15-16EnvironmentalFeeFireStation#2PavementManagementProgramEconomicDevelopmentPlanRural/MetroContractNegotiationsSolidWasteServicesNegotiations/RFPA1JV&>•<,IP<fe<6a*isM*1Emphasize StrategicPlanningGoalsFY2015-16SolicitPublic/StakeholderFeedback16Adequateinfrastructureandamenitiesfordowntowndevelopmentz12DevelopreliablefundingsourceforinfrastructuremaintenanceEV6IdentifyslateofeconomicdevelopmenttoolsandstrategiesEV4Promoteretention,expansionandrelocationofQualityBusinessesImplementcommunicationsplan forcivicinvolvementEV3Promoteamixedusecore TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/5/15 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Ken Buchanan,Town Manager,480-816-5130,kbuchanan@fh.az.gov Strategic Priority:All Council Goal:All REPORT TO COUNCIL (Agenda Language):SEMI-ANNUAL REPORT on progress of implementing Council's Strategic Planning Goals and Operational Priorities for FY2014-15. Applicant:NA Applicant Contact Information:NA Property Location:NA Related Ordinance,Policy or Guiding Principle:Fountain Hills Strategic Plan2010 and Strategic Plan Goals and Operational Priorities established at FY2014-15 Council retreat. Staff Summary (background):Anin-depth report is providedto Councilsemi-annually on progress toward implementing Strategic Plan Goals and Operational Priorities for the fiscal year. This is the report for the first half of FY14-15. Risk Analysis (options or alternatives with implications):NA Fiscal Impact (initial and ongoing costs;budget status):NA Budget Reference (page number):NA Recommendation(s)by Board(s)or Commission(s):NA Staff Recommendation(s):NA Attachment(s):Report entitled Semi-AnnualReport- Strategic PlanningGoals and Operational Priorities FY14-15,dated March 5,2015. SUGGESTED MOTION (forcouncil):NA Approved: Ken Buchanan,Town Manager Date Page 1 of 1 SEMI-ANNUAL REPORT STRATEGIC PLANNING GOALS AND OPERATIONAL PRIORITIES FY2014-15 March 5, 2015 Page 1 of 5 At a Goal Setting Retreat held on January 8, 2014, the Council established Strategic Planning Goals for FY14-15 based on Strategic Plan 2010. The Council also established Operational Priorities for FY14-15. An in-depth report is provided to Council semi-annually on progress toward implementing Strategic Planning Goals and Operational Priorities for the fiscal year. The foundation of Strategic Plan 2010 is the citizen-crafted, long-range Vision for the Town and its eight Strategic Values. Strategic Directions are enumerated in the plan as guiding principles to fulfill the Vision and Values of the Strategic Plan. There are inherent difficulties in reporting metrics on Strategic Planning Goals that are based on long-range, “build out” visions for the Town that must necessarily be achieved incrementally; some may take literally decades to achieve. The metrics (percentages) that have in the past been reported to indicate progress toward achieving these long-range goals are inconsistent with actual accomplishment of the over- arching goals. Therefore, this report will use narrative to describe progress toward Strategic Planning Goals. Operational Priorities are accomplished by utilizing action plans and action steps based on budget allocations. Each Operational Priority can be tied back into the Strategic Plan. In this report, when reporting on a common Strategic Direction and Operational Priority, progress will be reported in narrative under the applicable Operational Priority. This reporting method will more accurately reflect accomplishment of actions steps and the benefits obtained by the expenditure of budgeted funds. OVERVIEW Page 2 of 5 I. STRATEGIC PLANNING GOALS STRATEGIC VALUE: CIVILITY Strategic Direction C 3: Genuinely solicit and consider public and stakeholder feedback as part of the decision- making process. (Ken Buchanan) See Strategic Direction CR4. STRATEGIC VALUE: CIVIC RESPONSIBILITY Strategic Direction CR 4: Implement a comprehensive communications plan to encourage informed citizen participation in civic life. (Ken Buchanan)  Routinely seek feedback The Town regularly receives recommendation from Council appointed advisory boards and commissions.  Network with various groups and organizations Members of the Town Council and staff regularly participate (informally) in meetings and activities sponsored by a variety of Town organizations; some of this interaction is reported at Town Council meetings.  Speakers Bureau The Mayor, Town Manager and Town staff speak frequently at meetings of clubs and organizations and at special events in Fountain Hills. Strategic Direction CR 6: Evaluate customer satisfaction with Town services on a regular basis and implement appropriate service improvements. (Ken Buchanan)  Consider a Customer Service Survey in conjunction with the next Strategic Plan Update No activity to date. Strategic Direction CR 7: Communicate the role of local government and clearly define the trade-offs between service levels and amenities and the associated costs so residents can make informed choices. (Ken Buchanan/ Mark Mayer)  Continue Citizens Academy The next Citizens Academy will be held in 2016. The academy is held in even numbered (election) years.  Utilize the Town website, Economic Development website, Channel 11, social media, and publications The communication methods listed are routinely used to enhance citizen understanding of local government and the relationship between available revenues and Town services/amenities provided. STRATEGIC VALUE: ECONOMIC VITALITY Strategic Direction EV 1: Develop a comprehensive economic development strategy for the Town’s future and work with our partners to forward economic growth and awareness. (Ken Buchanan/Scott Cooper) See Operational Priority: Economic Development Plan Page 3 of 5 Strategic Direction EV 3: Promote a mixed use core where residents can live, work, learn and play in an urban village setting, as depicted in the Downtown Area Specific Plan (Downtown Vision Master Plan). (Ken Buchanan, Paul Mood, Mark Mayer)  Implement General Plan/Specific Area Plan  Impact Fees reduced  Downtown Initiative  Working with property owners  Work was completed on the newly named Avenue of the Fountains Plaza (Avenue of the Fountains Median Improvements). The Town now offers three, downtown outdoor venues: Fountain Park, Centennial Circle, and the Plaza.  Work on the Legacy Plaza and the final phase of the improvements to Fountain Park will begin shortly. Strategic Direction EV 4: Promote retention, expansion and relocation of quality businesses. (Ken Buchanan, Scott Cooper) See Operational Priority: Economic Development Plan STRATEGIC VALUE: MAINTAIN AND IMPROVE COMMMUNITY INFRASTRUCTURE Strategic Direction I 2: Lower the reliance on state revenues by developing a locally controlled, reliable funding source for infrastructure maintenance. (Ken, Buchanan, Craig Rudolphy)  Implement a storm water/environmental fee Council adopted an environmental fee of $3.00 per month. Staff has met and concluded the most cost effective method for billing this fee will be to outsource the process to a third party. Finance is currently drafting an RFP to accomplish that task. Details are still being i nvestigated. The goal is to bill the fee in January 2016.  Revise cell tower leases/increase rent No action has taken place.  Sustainable CIP fiscal policy Options are being explored to designate monies to fund sub-sets of projects, such as normal maintenance, operating capital, and long-term projects. A Council Work Study Session will be requested to explore options. Strategic Direction I 3: Maintain a current condition assessment of all roadways and sidewalks and prioritize and implement maintenance efforts to minimize costly reconstruction. (Ken Buchanan, Paul Mood)  Continue to implement the 2009 Stantec Report recommendations We do not maintain an indexed condition assessment for roads or sidewalks. Roads are done by Zone and sidewalks are repaired as needed. Page 4 of 5 II. OPERATIONAL PRIORITIES OPERATIONAL PRIORITY: PAVEMENT MANAGEMENT PROGRAM (Ken Buchanan, Paul Mood) Strategic Value: Maintain and Improve Community Infrastructure  Continue to Implement the Pavement Management Plan No activity in this reporting period.  Develop Asphalt Replacement Plan A concept for funding the Asphalt Replacement Plan was presented at the Council Retreat in January 2014. OPERATIONAL PRIORITY: ECONOMIC DEVELOPMENT PLAN (Ken Buchanan, Scott Cooper) Strategic Value: Economic Vitality  Strengthen economic development brand and awareness of local successes in partnership with regional and statewide organizations Staff has been actively involved with our economic development partners (Fountain Hills Chamber of Commerce, GPEC, ACA, APS, SRP, site selectors and realtors). Keeping them apprised of the Town’s economic development plan and activities has been vital to some of our recent successes. A push to reach out beyond the state’s boundaries is underway. Staff has also been actively involved in committees with the AAED and nationally with IEDC.  Market and recruit targeted employers and support targeted existing businesses in order to provide sustainable employment opportunities in Fountain Hills Staff worked to begin creating an economic development brand for Fountain Hills. The ED website was completed, social media sites were launched, and ED logos were created to give Fountain Hills Economic Development a foundation for new media marketing. A plan to develop ED marketing videos and designing traditional and digital postcard mailers, as well as an economic development brochure, are underway and will be used in our targeted recruitment efforts. A targeted direct mail campaign and an email marketing campaign will follow. Staff scheduled monthly meetings with GPEC regarding our marketing efforts as they are assisting with our targeted marketing and communication platforms. Staff also meets regularly with business development professionals within our targeted industry sectors. These people are direct pipelines to our targeted sectors. They know companies that are growing and looking to expand, and also other valuable resources.  Elevate Fountain Hills’ social media engagement in the national and international economic development arena A social media presence was started on Facebook and Twitter with plans to relaunch a busines s page on LinkedIn and expand into a YouTube channel. Page 5 of 5 OPERATIONAL PRIORITY: FOUNTAIN LAKE PROJECT (Ken Buchanan, Mark Mayer) Strategic Value: Maintain and Improve Community Infrastructure  Hire consultant A revised report has been presented which recommends additional aeration and circulation that would move water out of coves into the lake where the aerators are mixing the water. In addition to mixing the water, the plan would also reduce or eliminate the nighttime running of the fountain, which is costly.  Determine appropriate system Staff is working to develop the necessary construction documents to make the improvements.  Implement to increase water quality OPERATIONAL PRIORITY: FIRE STATION #2 (Ken Buchanan, Cf. Randy Roberts, Paul Mood) Strategic Value: Maintain and Improve Community Infrastructure  Respond to the Council’s request for information on comparison of potential sites Due diligence is currently in process. Completed architectural and civil site analysis of potential locations, environmental assessment of the Fountain Hills Blvd. and Muskrat site, and initiated property transfer of the Fountain Hills Blvd. and Muskrat property with MCO. Waiting for land transfer.  Determine funding scenarios OPERATIONAL PRIORITY: FACILITIES REPLACEMENT FUND (Ken Buchanan, Paul Mood, Craig Rudolphy) Strategic Value: Maintain and Improve Community Infrastructure  Transfer excess General Fund revenues Current Financial Policy requires any excess General Fund revenues to be transferred to the Capital Improvement Fund. Fiscal policy designates 50% of construction sales tax to the CIP. Council action would be required to change the policy. The FY15-16 budget will include a line item transferring $100,000 to the Facilities Replacement Fund.  Allocate part of construction sales tax The current allocation of construction sales tax is 50% to the General Fund and 50% to the Capital Improvement Fund. This allocation can be changed but no action has been taken.  Use excise tax after MPC bonds are retired The mountain preserve portion of the MPC bonds will be fully paid on July 1, 2016. Subsequent to that date, the .2% excise tax dedicated to that bond payment could be redirected to Pavement Replacement or Facilities Replacement. No decision has yet been made.  Use General Fund/CIP Fund reserves A change to the Financial Policy would not be needed because the current policy allows for ‘pay - as-you-go’ costs to be paid from the reserves. At the current time, approximately $1 million is available for that purpose. However, the reserve would then need to be replenished according to the policy.  Sell property, e.g., Kiwanis building No action taken.   Issue 6 ‐ February 20, 2015 Legislative Overview Th is wee k was the last wee k to h ol d hearin gs on bills in the ir chamber of origin. Committe e age ndas were jam packe d an d strike‐e veryth ing amendmen ts we re rampant. Man y committees had agendas with mor e th an 20 bil ls. Th ere was also consid e r able floor activity and bil ls are now bein g tran smitted to the othe r ch amber. The ne xt major de adl in e is M arch 20th wh en committe e work, with the exce ption of Appropriations, wil l conclu de. TPT Reform On Mon day, HB 2590: TPT reform; contr actors, spon sored by Re p. Kar e n Fan n (R‐Pre scott), was h e ar d in Ways & M ean s and passe d u n animously, 9‐0. On Th u r sday, its comp an ion bill , SB 1446, passe d out of the Se n ate by a vote of 28‐1‐1. SB 1446 was the n su bstituted in pl ace of HB 2590, and passed out of the House by a vote of 57‐0‐3. Base d on these vote total s, th e bil l's e mergen cy cl ause wil l be e ffe ctive , so the change s go into effect imme diatel y on th e signature of the Governor, with a re troactive date of Janu ary 1, 2015. SB 1446 clarifie s the defin ition s of the terms "replace men t" and "alteration"; provides bright‐l ine tests for both reside n tial and n on‐reside ntial alteration proje cts to de te r mine whe n th e y are su bje ct to tax on mate rial s as oppose d to be in g con sidered prime con tracting; and, clarifie s wh ich contractors sh ould ke ep the ir TPT lice nse goin g forward . The bill al lows lice n se d con tractors who are doin g alteration projects to con tin ue buying al l materials with out tax, provide d they pay re tail TPT on th e material s to the jurisdiction wh ere th e p roje ct is be in g d on e. Th e bil l n ow goe s to the Governor for sign atu r e . The Leagu e appr e ciate s th e le ade rship of Sen ator Le sko (SB 1446) an d Re presen tative Karen Fan n, sponsor of th e ide ntical House bil l (HB 2590), on this importan t issue . Other TPT Bills of Note A strike ‐e ve r yth ing ame ndmen t to Sen ator De bbie Lesko's (R‐Pe or ia) SB 1120: n ow fine art; TPT; e xe mption passe d Sen ate Finance on a 3‐2 vote. The strike r creates an exe mption for sale s of fine art to non r e siden ts who are ph ysical ly in th e store comple tin g a purchase wh e n the se l le r ships the artwork out of State to the buye r for their use at an out‐of‐state location. This p artiall y u nd oe s a tax uniformity ch ange agree d upon as part of HB 2111 in 2013. Th at bill e liminated th e State exemption for sale s to n onresiden ts who are ph ysical ly in the store comple tin g a pu rch ase wh e n th e item was sh ippe d by the se ll e r out of state to th e bu yer. This e ssen tial ly re in states that exe mp tion , but onl y for sale s of "fine art" as defin ed in A.R.S. 44‐1771. Althou gh th is wil l have a ne gative impact on shared re venu e, th e bil l does not incl ude pree mption against mun icipal tax. The bil l goes on to th e Ru le s Committe e. An oth er of Sen ator Le sko's bil ls, SB 1133: TPT; mu nicip al itie s; cu stome r r e fu nd claims, passe d Se nate Fin an ce by a 4‐1 vote. Th is bil l al lows a custome r to make a direct cl aim for refund to DOR or a n on‐program City when the y belie ve they p aid tax to a ve n dor (taxpayer) on a tran saction that could h ave be e n exe mp t if th e bu yer h ad presen te d an exe mp tion certificate at th e time of th e sale . The bil l provides the customer with th e first op tion of re que sting an assign me n t an d waive r from the ve ndor. If the ven dor fails or re fuses to assign the ir rights to the refund, th e custome r can file a claim directly with DOR or a Non ‐program city. This b il l open s the door to a sign ificant risk of fraudul e nt re fun d claims by custome rs of compan ies th at have gon e out of busine ss. It al so raise s troubl ing theore tical issu es, particularly re lated to th e fun dame ntal definition of who is a taxpaye r in Arizona. Th is e ffe ctive ly pl aces th e cu stome r in th e role of th e u l timate taxpaye r, which l eads to our tax system being mor e align ed with a sales tax th an a tru e tran saction privil ege tax, an d th e nu me rou s adve rse impacts th at wou l d h ave on our curren t syste m. The bil l goe s on to th e Rule s Committe e. Recovery Homes HB 2563: he al th facil itie s; sub stance abu se re covery, spon sored by Re p. Noel Campbe l l (R‐Pre scott), passed th e House Chil dren an d Family Affair s Committe e by a vote of 7‐1. Th e bill atte mp ts to provide more regu lation on sobe r livin g facil itie s located in citie s an d town s, as man y of the m n ow have no l ocal governme ntal ove r sigh t or siting requ ir e me nts. Th e Le ague supports the bil l . It now goe s onto the Ru le s Committee . Recovery Homes On Th u r sday, th e Hou se Gove rn men t an d High er Education Committe e passe d HB 2008: S/E fireworks, by a vote of 6‐ 3. Al though th e bil l was spon sored by Rep. T.J. Shope (R‐Cool idge), th e strike e veryth ing ame nd men t was sponsore d by the committe e Ch air, Re p. Bob Th orpe (R‐Flagstaff). A major portion of th e Leagu e 's opposition is th at there are nu me rou s areas in th e state th at in te r face with wil d lan ds or pre serves, b u t th e bil l onl y add re sses a particular carve ou t rel ate d to p re se rve s of a certain size. The r e are al so stipul ation s on signage wh e re fire wor ks are sold. Th e Leagu e had n o opportu nity to me e t on the bill b e fore it showe d up as a strike‐everythin g amen dme nt and bel ieve s that since th e re has been fireworks le gisl ation se veral ye ar s in a row, it is time for a moratoriu m. Th e bil l goes on to the Ru l es Committee . Plant Control HB 2570: mu nicipal itie s; ve getation r e qu ire men ts; p roh ibition, spon sore d by Re p. Darin M itch ell (R‐Litch fie l d Park) passed the House Gove rn me n t an d High e r Edu cation Committee on Th ursday by a vote of 6‐3. Th e measure prohibits cities and town s from pl acing specific r e strictions on property own ers re garding the instal lation or re moval of vege tation . Th e Le ague opposed this me asu re sayin g such decision s shou ld be l eft u p to l ocal commun itie s to de te r mine the best p ractices for aesthetics, dr ou ght resistan ce and erosion con trol . The bill n ow move s on to th e Ru le s Committee . Legislative Bill Monitoring (All bil l s be ing active l y monitore d by the Leagu e can b e found he re .) HB 2590: TPT re form; contractors HB 2008: S/E fireworks HB 2563: h e alth facil itie s; substance abu se recovery HB 2570: municipalities; ve getation re quirements; pr oh ibition SB 1120: n ow fine art; TPT; e xemption SB 1133: TPT; municipalities; customer refu nd claims Legislative Bulletin is published b y the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org.   Issue 7 ‐ February 27, 2015 Legislative Overview Today marks the 47th day of session . Five bills h ave bee n signe d, incl u din g SB 1446, TPT reform; con tractors (se e story be l ow). There was an inte n se amou n t of fl oor activity as both ch ambers are transferring bil ls to the opposite side. Committe e activity was mild, bu t wil l pick u p in th e n ext few wee ks as they ne ar the committee h earing de adl in e of March 20th . Residential Rental HB 2254, mun icipal tax e xemption; residen tial l ease, was sche du l ed for Committe e of the Wh ole Wedn esday aftern oon . Th e b il l was re tain ed on th e cal e ndar an d did n ot move forward wh e n it be came cl e ar th at the measure doe s n ot have e nou gh support, in an y form, to pass the Hou se of Repre se ntative s. If al lowe d to go into l aw, th is bil l woul d erase ne ar l y $90 mil l ion from city an d town budgets wh en ful l y impl eme nted. Th ank you for registering you r opposition with you r le gisl ative de legation . Body Cameras SB 1300, l aw e nforce men t officers; body came ras passe d both of its committe es an d is moving forwar d to the Ru le s Committe e. The me asu r e , sponsored by Se n. John Kavanagh (R‐Fou ntain Hil ls) sets forth various pr oce du re s for th e use of such cameras and the storage and vie win g of the footage . The Le ague was ne utr al on the bil l, bu t did expre ss the concern th at th ere is more work to be don e an d that l ocal law enfor ce me nt ne e ds to be in vol ved in the furthe r de vel opme nt of su ch proced u r e s. Sen. Kavanagh h as state d th at h e will con tin ue to work with the inte re sted partie s to fin d th e best practice s possible . Neutrality Agreement On Th ursday, the Hou se Governme nt and High er Edu cation Committe e passed SB 1090 n eutrality agre eme nt; appr e nticeship agre eme nt; proh ibition, by a vote of 6‐3. Sponsored by Se n. Kavan agh (R‐Foun tain Hil l s), the bil l proh ibits n e utrality agr e ements and appren tice sh ip program participation from be ing requ ire d in public works contracts. The Leagu e oppose d th e bil l as it pre empts local decision makin g. Th e bill n ow moves to the Ru le s Committe e. Fire Access Roads On Th ursday, SB 1335 fire acce ss r oads; l imitation; e n forcement was substitu te d for HB 2005 in the Hou se and, subse que n tl y passed the House 34‐25‐1. Th e bill now proceeds to th e Gove rn or 's office. Cu rre n t l aw prohibits mu nicipal itie s from re quiring fire sprinkl ers in singl e famil y r e siden tial homes and prohibits the m from usin g fire acce ss roads as a way to dir e ctl y or indir e ctl y re quire fire sprinkl ers. Sponsored by Se n. Farnsworth (R‐M e sa), the bil l expr e ssl y state s th at viol ating this statu te can be e nforced by private civil action . It also spe cifie s that statu tory requ ir e me nts superse de and pre empt an y r e gul ation adopted by a local governme nt r e garding an approved fire appar atu s acce ss road, fire ap par atu s access road exte n sion, approve d rou te or rou te e xte nsion. The Leagu e oppose s this bil l and will ask Gove rn or Ducey to ve to it as it lowe rs th e thresh ol d at wh ich appl icants can su e thu s increasing the p robability of frivolou s lawsuits an d increasing l iability to cities, town s, fire districts, and th e State for ignoring acce pte d n ational fire standards. TPT Reform On Tue sday Governor Du cey sign ed SB 1446: TPT reform; contractors, spon sore d by Sen ator Debbie Le sko (R‐Pe oria). Th is bil l inclu de d an e me rge ncy cl ause so it is effective immediate l y, with a retr oactive date of Jan uary 1, 2015. Base d on th is sign in g date, the bill 's "h ol d h arml ess" clau se cove r s any bid, con tract or commitmen t that is date d on or be fore April 30, 2015. Simil ar l y, contr actors that ch oose to cancel the ir lice nse on or befor e April 30, 2015 can take advan tage of th e te mporary Use Tax e xclu sion on th e first $10,000 worth of inven tory, an d may choose on e of th e three state d methods for de aling with th e ir e xisting tax‐free in ventory that e xcee ds $10,000 in val u e. SB 1446 clarifie s th e definitions of the te rms "repl acement" an d "al te ration"; provide s brigh t‐l ine tests for both reside ntial and non ‐r e siden tial alteration proje cts to de te rmine wh en the y are su bje ct to tax on mate rial s as opposed to be ing consid e r e d prime contractin g; and, cl arifie s which con tractor s sh ould ke e p th e ir TPT lice nse goin g forward. Th e bil l all ows l icense d contr actors wh o are doing al te ration projects to continu e bu ying all mate rial s withou t tax, provide d they pay retail TPT on the mate rial s to the ju risdiction whe r e the project is bein g done. Th e Leagu e appreciates th e suppor t of the Governor an d the le ade rship of Senator Le sko (SB 1446) an d Repre se ntative Kare n Fan n, sponsor of th e ide ntical Hou se bil l (HB 2590), on this importan t issue . More TPT A strike‐e verything ame n dment to HB 2447: (now) real prope rty managers; con sol idated returns, sponsore d by Re presen tative Justin Olson (R‐M esa), un animousl y passe d House Appropriation s on Wedne sday, 14‐0. The strike r creates A.R.S. Section 42‐6009, wh ich r e qu ire s cities and town s th at impose a tax on r e al property ren tal to al low a Prop e r ty Man ager to el e ctron ically fil e a single tax return that inclu de s de tail ed in formation abou t al l of their clie nts an d the ir u nde r l ying separate property locations. Given th e coming administration by DOR due to TPT Simplification , th e bil l effectivel y requires DOR to make th e nece ssary chan ges to their syste m to ad d this capability. Th e Le ague is pl e ased to be workin g with th e spon sor an d in du str y r e presen tative s on an ame nd men t that wil l clarify th e obje ctive s and te rms to e n su r e that the b il l accompl ish es its inten ded goal s. Business Licenses SB 1368: mu nicip al itie s; additional business l icen se s; p roh ibition spon sore d by Se nator Gail Griffin (R‐Ben son ), passe d Th ird Re ad in th e Sen ate on Thursday. This bil l adds A.R.S. Se ction 9‐491.01, wh ich proh ibits a city or town from requ ir in g a bu siness l icense for a re al e state agen t that h olds a valid bu sin ess l ice nse in anothe r city or town wh ere their bu sin ess office is locate d. Base d on the testimon y, it is our un derstan din g th at some mun icipalitie s have bee n requ ir in g Re altor s to ge t a local busin e ss l icen se in orde r to sh ow prope rties in th eir city or town . This bil l pre empts that p ractice and limits the authority to requ ire a busine ss l icen se for a licen se d re al e state profession al to only th e city or town where th eir office is located. Legislative Bill Monitoring (All bil l s be ing active l y monitore d by the Leagu e can b e found he re .) SB 1090: n eu trality agre e me nt; appren tice sh ip agree me n t; proh ibition SB 1169: fire code re quireme nts; fire watch SB 1300: l aw e nforce men t office rs; bod y came ras SB 1335: fire acce ss roads; limitation; e n forcement SB 1368: mun icipalitie s; addition al busine ss l icenses; prohibition SB 1446: TPT reform; con tractors HB 2129: municipal tax code commission; continu ation HB 2142: water in frastructure finan ce au th ority; prepayme nt HB 2410: municipalities; traffic citation qu ota; proh ibition HB 2447: (n ow) re al pr operty man agers; con sol idated r e tu rns Legislative Bulletin is published b y the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org.