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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
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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.
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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
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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
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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.
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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).
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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.
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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
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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.
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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.
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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
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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
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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.
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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.
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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-
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.