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NOTICE OF THE
REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
TIME: 6:30 P.M.
WHEN: THURSDAY, JUNE 18, 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
Vice Mayor Dennis Brown Councilmember Henry Leger
Councilmember Nick DePorter Councilmember Alan Magazine
Councilmember Cassie Hansen Councilmember Cecil A. Yates
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CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh
INVOCATION – Pastor Todd Forest, Fountain Hills Christian Center
ROLL CALL – Mayor Linda M. Kavanagh
MAYOR’S REPORT
i) The Mayor will read a PROCLAMATION recognizing July 2015 as PARK AND
RECREATION MONTH in the Town of Fountain Hills.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The MAYOR may review RECENT EVENTS attended relating to Economic
Development.
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
May 21, 2015, and June 4, 2015.
2. CONSIDERATION of approving an APPLICATION FOR PERMANENT EXTENSION
OF PREMISES/PATIO PERMIT submitted by Heidi Sue Hake, Owner/Agent of VU
Terrace Café located at 14815 E. Shea Boulevard, Suite #101, Fountain Hills, AZ.
3. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION FOR AGENT
CHANGE – ACQUISITION OF CONTROL – RESTRUCTURE, submitted by Andrea
Dahlman Lewkowitz, Owner/Agent of Safeway, Inc #1291, located at 13733 Fountain Hills
Boulevard, Fountain Hills, AZ.
4. CONSIDERATION of approving a CONTRACT with Salt River Project for design of the
Ashbrook Wash Relocations (SRP Work Order #T2015861), having a conceptual design
plus cost estimate of $115,000.
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5. CONSIDERATION of approving RESOLUTION 2015-30, abandoning whatever right,
title, or interest the Town has in the certain 20' public utility and drainage easements located
at the northerly property line of Plat 431, Block 7, Lot 4 (17530 E. Hawley Drive) as
recorded in Book 151 of Maps, Page 43, Records of Maricopa County, Arizona, with
stipulation. EA2015-06 (Perry)
6. CONSIDERATION of approving RESOLUTION 2015-16, abandoning whatever right,
title, or interest it has in the certain public roadway located within the Town of Fountain
Hills, which has been found to be no longer necessary for public use and reserving a public
utility easement and a drainage easement over the same. (ROWA 2015-01; BP2015-58)
7. CONSIDERATION of approving RESOLUTION 2015-35, abandoning whatever right,
title, or interest the Town has in the certain 10' public utility and drainage easements located
at the rear property line of Plat 505A, Block 3, Lot 8 (15671 E. Golden Eagle Boulevard) as
recorded in Book 158 of Maps, Page 40, Records of Maricopa County, Arizona, with
stipulation. EA2015-07 (Blank/Gleisner)
8. CONSIDERATION of approving RESOLUTION 2015-34, an amendment to the
Intergovernmental Agreement with Maricopa County Animal Care and Control (IGA 79-
14-032-3-01), extending the agreement for animal shelter services through June 30, 2018, in
the amount $8,000 (estimated) per year and each subsequent fiscal year totaling $32,000
(estimated).
9. CONSIDERATION of CONFIRMING FY2015-2016 TOWN COUNCIL
SUBCOMMITTEES APPOINTMENTS, as proposed by Mayor Kavanagh, for the purpose
of interviewing and recommending applicants to the Mayor to serve on the Town’s boards
and commissions: (i) Community Services Advisory Commission – Councilmembers:
Henry Leger, Nick DePorter, and Vice Mayor Dennis Brown; (ii) McDowell Mountain
Preservation Commission – Councilmembers: Cassie Hansen, Henry Leger, and Alan
Magazine; (iii) Planning and Zoning Commission – Councilmembers: Nick DePorter,
Cecil Yates, and Vice Mayor Dennis Brown; (iv) Strategic Planning Advisory
Commission – Councilmembers: Cecil Yates, Cassie Hansen, and Vice Mayor Dennis
Brown; and (v) Board of Adjustment –Councilmembers: Alan Magazine, Cecil Yates, and
Cassie Hansen.
10. CONSIDERATION of RESOLUTION 2015-36, abandoning whatever right, title, or
interest it has in the certain Hillside Protection Easement located at Firerock Parcel M-1,
Lot 10, Fountain Hills, Arizona, as recorded in the Office of the Maricopa County
Recorder, and accepting a substitute Hillside Protection Easement of equal size. (Case #
HPE/ABN2015-02)
11. CONSIDERATION of RESOLUTION 2015-37, approving an Intergovernmental
Agreement with the Arizona Department of Revenue, relating to the administration of
Transaction Privilege Tax.
12. CONSIDERATION of the SECOND AMENDMENT to the building lease, between the
Town of Fountain Hills and the Fountain Hills Community Theater, extending the lease for
six months.
13. CONSIDERATION of CONTRACT for legal services between the Town of Fountain
Hills and the Law Office of Mark Iacovino, for FY2015-2016 and FY2016-2017.
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REGULAR AGENDA ITEMS
14. CONSIDERATION of appointing three (3) citizens as commissioners on the Strategic
Planning Advisory Commission (SPAC), each for a term beginning on July 1, 2015 and
expiring on June 30, 2017.
15. CONSIDERATION of the request by the Public Art Committee to ACCEPT a sculpture
titled, “Fountain Spirit” for placement on the Avenue of the Fountain Plaza.
16. CONSIDERATION of the request by the Public Art Committee to accept a donated
painting titled, “Ode to Fountain Hills Fountain” for placement in the Community Center
Lobby.
17. CONSIDERATION of accepting the INVITATION FOR BID from Artistic Land
Management, Inc. in the amount of $308,705.00, for the annual landscaping contract with
the Town of Fountain Hills.
18. CONSIDERATION of the Community Services Advisory Commission’s
RECOMMENDATION regarding the operation of the Dog Park in Desert Vista Park,
which was tabled from the March 19, 2015 Council meeting.
19. CONSIDERATION of RESOLUTION 2015-38, authorizing submission of a GRANT
APPLICATION to the Arizona Sports and Tourism Authority for the replacement of tennis
courts at Golden Eagle Park and Four Peaks Park; and approving the acceptance and
execution of any resulting grant agreement.
20. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to
allow Salt River Project to install a 20’ tall Faux Saguaro Smart Signal Router at “14405 E.
Mourning Dove Drive, located in the “R1-43” zoning district. Case # SU2015-04
21. CONSIDERATION of a proposed SPECIAL USE PERMIT to allow Salt River Project to
install a 20’ tall Faux Saguaro Smart Signal Router at “14405 E. Mourning Dove Drive,
located in the “R1-43” zoning district. Case # SU2015-04
22. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to
allow Salt River Project to install a 20’ tall Faux Saguaro Smart Signal Router antenna at
“Tract K” at the Copperwynd Resort, located in the “R-5” zoning district. Case # SU2015-
05
23. CONSIDERATION of a proposed SPECIAL USE PERMIT to allow Salt River Project to
install a 20’ tall Faux Saguaro Smart Signal Router antenna at “Tract K” at the Copperwynd
Resort, located in the “R-5” zoning district. Case # SU2015-05
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24. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT by
Brian & Deone Bayliss to allow a residential apartment at 11883 N. Saguaro Boulevard.
The property is located within the C-3 Commercial zoning district. (Case #SU 2015-07)
25. CONSIDERATION of a proposed SPECIAL USE PERMIT by Brian & Deone Bayliss to
allow a residential apartment at 11883 N. Saguaro Boulevard. The property is located
within the C-3 Commercial zoning district. (Case #SU 2015-07)
26. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT by
Vladimir Buer to allow The Fountain View Auto Center, a New & Used auto dealership at
13040-13048 N. Verde River Drive. The property is located within the C-2 Commercial
zoning district. (Case #SU 2015-09)
27. CONSIDERATION of a proposed SPECIAL USE PERMIT by Vladimir Buer to allow
The Fountain View Auto Center, a New & Used auto dealership at 13040-13048 N. Verde
River Drive. The property is located within the C-2 Commercial zoning district. (Case #SU
2015-09)
28. PUBLIC HEARING to receive comments on RESOLUTION 2015-31, a proposed Minor
Amendment to the Town of Fountain Hills General Plan 2010 – Town Center Area Specific
Plan. If adopted, the amendment will allow an Assisted Living Facility to be a permitted use
within the “South End District”. (Case #GPA2015 - 03)
29. CONSIDERATION of RESOLUTION 2015-31, a proposed Minor Amendment to the
Town of Fountain Hills General Plan 2010 – Town Center Area Specific Plan. If adopted,
the amendment will allow an Assisted Living Facility to be a permitted use within the
“South End District”. (Case # GPA2015 - 03)
30. PUBLIC HEARING to receive comments on RESOLUTION 2015-32, a proposed Minor
Amendment to the Town of Fountain Hills General Plan 2010. If adopted, the amendment
will allow a maximum residential density increase from 12 dwelling units per acre to 27.25
dwelling units per acre to be permitted within the Town Center area. (Case #GPA2015 –
04)
31. CONSIDERATION of RESOLUTION 2015-32, a proposed Minor Amendment to the
Town of Fountain Hills General Plan 2010. If adopted, the amendment will allow a
maximum residential density increase from 12 dwelling units per acre to 27.25 dwelling
units per acre to be permitted within the Town Center area. (Case # GPA2015 – 04)
32. PUBLIC HEARING to receive comments on ORDINANCE 15-07, a proposed text
amendment to the Town of Fountain Hills Zoning Ordinance, Section 23.06(I). If approved,
the amendment will reduce the minimum lot size requirement for PAD zoning from 5 acres
to 3 acres. (Case #Z2015-04)
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33. CONSIDERATION of ORDINANCE 15-07, a proposed text amendment to the Town of
Fountain Hills Zoning Ordinance, Section 23.06(I). If approved, the amendment will reduce
the minimum lot size requirement for PAD zoning from 5 acres to 3 acres. (Case #Z2015-
04)
34. PUBLIC HEARING to receive comments on ORDINANCE 15-08, a proposed
amendment to the Town of Fountain Hills Zoning Map. If adopted, the amendment would
rezone approximately 3.3 acres at 16750-16820 N. Paul Nordin Parkway, from the “TCCD”
zoning district to the “Morningstar PAD” zoning district. If approved, the rezoning will
allow the construction of a 111 bed Assisted Living Facility. (Case #Z2015-05)
35. CONSIDERATION of ORDINANCE 15-08, a proposed amendment to the Town of
Fountain Hills Zoning Map. If adopted, the amendment would rezone approximately 3.3
acres at 16750-16820 N. Paul Nordin Parkway, from the “TCCD” zoning district to the
“Morningstar PAD” zoning district. If approved, the rezoning will allow the construction of
a 111 bed Assisted Living Facility. (Case #Z2015-05)
36. CONSIDERATION of RESOLUTION 2015-14, levying upon the assessed valuation of
the property within the Town of Fountain Hills, subject to ad valorem taxation, a certain
sum upon each one hundred dollars ($100.00) of valuation sufficient to raise the amount
estimated to be required in the annual budget, specifically for the purpose of paying
principal and interest upon bonded indebtedness; all for the Fiscal Year beginning July 1,
2015, and ending June 30, 2016.
37. 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.
38. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the
Mayor, Individual Councilmembers, and the Town Manager.
39. ADJOURNMENT.
DATED this 11th day of June, 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.
2400432.4
RESOLUTION 2015-16
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE CERTAIN PUBLIC ROADWAY
LOCATED WITHIN THE TOWN OF FOUNTAIN HILLS WHICH HAS BEEN
FOUND TO BE NO LONGER NECESSARY FOR PUBLIC USE AND
RESERVING A PUBLIC UTILITY EASEMENT AND A DRAINAGE
EASEMENT OVER THE SAME.
WHEREAS, The Town of Fountain Hills, Arizona (the “Town”) is the owner of certain
real property located within the Town of Fountain Hills, Arizona, as described and depicted on
Exhibit A, which is incorporated herein by reference (the “Property”); and
WHEREAS, ARIZ. REV. STAT. § 28-7201 et seq. provides that the Town may dispose of
a public roadway or a portion thereof that is no longer necessary for public use; and
WHEREAS, La Vida Buena Property Owner’s Association, an Arizona corporation (“La
Vida”) desires to acquire title to the Property and has asserted compliance with the requirements of ARIZ. REV. STAT. § 28-7206 et seq.; and
WHEREAS, the Mayor and Council of the Town of Fountain Hills have determined that
subject to the requirements, reservations and limitations of this Resolution, the Property has no
public use pursuant to ARIZ. REV. STAT. § 28-7215(B); and WHEREAS, La Vida agrees to assume the cost of maintaining and the liability for the
Property pursuant to ARIZ. REV. STAT. § 28-7215(B).
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. Subject to the reservations below, the Property, described and depicted on Exhibit A, is hereby abandoned by the Town of Fountain Hills.
SECTION 3. The Town reserves to itself and excludes from this abandonment (i) an
public utility easement for all existing utilities, as described and depicted on Exhibit A, (ii) a
drainage easement, as described and depicted on Exhibit A and (iii) such rights and interest, if any, as are required to be reserved by ARIZ. REV. STAT. § 28-7210.
SECTION 4. Upon recordation of this Resolution in the office of the Maricopa County
Recorder, title to the Property shall vest in La Vida, subject to the same encumbrances, liens,
limitations, restrictions and estates as exist on the land to which it accrues and the terms of this Resolution.
2400432.4 2
SECTION 5. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps necessary to carry out the purpose and intent
of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, June 18, 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
2400432.4
EXHIBIT A
TO
RESOLUTION 2015-16
[Legal Descriptions and Maps]
See following pages.
2404136.1
RESOLUTION 2015-34
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT WITH MARICOPA COUNTY FOR
ANIMAL SHELTER SERVICES.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The First Amendment to the Intergovernmental Agreement with Maricopa
County Animal Care and Control for animal shelter services (the “Amendment”) is hereby
approved in substantially the form and substance attached hereto as Exhibit A and incorporated
herein by reference.
SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to cause the execution of the Amendment and to take all steps
necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 18, 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
2404136.1
EXHIBIT A
TO
RESOLUTION 2015-34
[Amendment]
See following page.
AMENDMENT TO INTERGOVERMENTAL AGREEMENT (IGA)
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MARICOPA COUNTY ANIMAL CARE & CONTROL
RECTIALS
A. TOWN and COUNTY are parties to that certain Intergovernmental Agreement dated on or about July 1,
2013 for the provision of contract animal shelter services (the “IGA”).
B. The parties now mutually desire to amend the IGA to extend the expiration date of the original term.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing and other valuable considerations, the parties agree
to amend the IGA as follows:
1. The expiration date of the IGA is hereby modified to June 30, 2018. The effective date of this Amendment
is June 30, 2015. This Amendment is subject to termination pursuant to A.R.S. § 38-511.
2. The foregoing paragraphs contain all the changes made by this Amendment. All other terms and
conditions of the IGA shall remain in full force and effect.
IN WITENESS WHEREOF, the parties have signed this Amendment:
Town of Fountain Hills Maricopa County Board of Supervisors
By: By:
Kenneth Buchanan, Town Manger Chairman
Attest: Attest:
Bevelyn J. Bender, Town Clerk Clerk of the Board
This Amendment has been reviewed pursuant to A.R.S. § 11-952 et seq. by the undersigned attorney, who
has determined that it is in proper form and is within the power and authority granted under the laws of
the State of Arizona.
By: By:
Andrew J. McGuire, Town Attorney Attorney to the Board of Supervisors
2405416.1
RESOLUTION 2015-36
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT,
TITLE, OR INTEREST IT HAS IN THE CERTAIN HILLSIDE PROTECTION
EASEMENT LOCATED AT FIREROCK PARCEL M-1, LOT 10, FOUNTAIN
HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE MARICOPA
COUNTY RECORDER, AND ACCEPTING A SUBSTITUTE HILLSIDE
PROTECTION EASEMENT OF EQUAL SIZE.
WHEREAS, pursuant to Section 5.04 of the Town of Fountain Hills Subdivision
Ordinance, portions of hillside property within the Town of Fountain Hills (the “Town”) with
slopes in excess of 20% are required to remain undisturbed; and
WHEREAS, the areas to remain undisturbed are required to be dedicated to the Town in
the form of a Hillside Protection Easement (“HPE”); and
WHEREAS, in conjunction with development of FireRock Parcel M-1, Lot 10, a
residential lot in Fountain Hills, Arizona (the “Property”), the owners dedicated an HPE to the
Town, which HPE was recorded on March 16, 2015, in the office of the Maricopa County
Recorder, document No. 2015-0172368 (the “March 2015 HPE”); and
WHEREAS, improvements on the Property were inadvertently constructed on a portion of
the March 2015 HPE, necessitating a modification to the undisturbed area of the Property; and
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 Town to abandon the March 2015 HPE and to
simultaneously accept dedication of a substitute HPE covering an area of equal size in a
substantially similar location on the Property, in the form of the Grant of Easement dated May 26,
2015, attached hereto as Exhibit 1, and incorporated herein by reference (the “May 2015 HPE”).
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 March 2015 HPE is hereby abandoned.
SECTION 3. Dedication of the May 2015 HPE is hereby accepted.
SECTION 4. The Town Manager or authorized designee is hereby authorized and
directed to cause this Resolution to be recorded in the office of the Maricopa County Recorder,
including the recording of the May 2015 HPE.
SECTION 5. 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.
2405416.1
2
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 18, 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
2405416.1
3
EXHIBIT 1
TO
RESOLUTION 2015-36
[May 2015 HPE]
See following pages.
2405492.1
RESOLUTION 2015-37
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING AN INTERGOVERNMENTAL
AGREEMENT WITH THE ARIZONA DEPARTMENT OF REVENUE
RELATING TO THE ADMINISTRATION OF TRANSACTION PRIVILEGE TAX.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Intergovernmental Agreement with the Arizona Department of
Revenue relating to a uniform method of administration, collection, audit and licensing of
transaction privilege and affiliated excise taxes (the “Agreement”) is hereby approved
substantially in the form and substance attached hereto as Exhibit A and incorporated herein by
reference.
SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to cause the execution of the Agreement and to take all steps
necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, June 18, 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
2405492.1
EXHIBIT A
TO
RESOLUTION NO. 2015-37
[Agreement]
See following pages.
2405600.2 5-20-2015
1
INTERGOVERNMENTAL AGREEMENT BETWEEN
THE STATE OF ARIZONA AND
THE CITY/TOWN OF FOUNTAIN HILLS
THIS AGREEMENT is entered into this 18th day of June, 2015, by and between the
Arizona Department of Revenue, hereinafter referred to as Department, and the City/Town of
Fountain Hills, an Arizona municipal corporation, hereinafter referred to as City/Town. This
Agreement shall supersede and replace all previous intergovernmental agreements, including
amendments thereto, entered into by the Department and City/Town regarding the
administration, collection, audit and/or licensing of transaction privilege tax, use tax, severance
tax, jet fuel excise and use taxes and rental occupancy taxes imposed by the State, cities or
towns.
R E C I T A L S
WHEREAS, Title 11, Chapter 7, Article 3 (A.R.S. § 11-952) authorizes two or more
public agencies to enter into intergovernmental agreements to contract for services, if authorized
by their legislative or governing bodies.
WHEREAS, A.R.S. § 42-6001 et seq. was amended effective January 1, 2015 to provide
that the Department shall collect and administer any transaction privilege and affiliated excise
taxes imposed by any city or town in Arizona and that the Department and each city or town
shall enter into an intergovernmental contract or agreement pursuant to A.R.S. § 11-952 to
provide a uniform method of administration, collection, audit and licensing of transaction
privilege and affiliated excise taxes imposed by the State, cities or towns.
WHEREAS, City/Town has taken appropriate action by ordinance, resolution or
otherwise, pursuant to the laws applicable to the governing body of City/Town, to approve and
authorize City/Town to enter into this Agreement.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing, the Department and City/Town
enter into this intergovernmental agreement as follows:
1. Definitions
1.1 A.R.S. means the Arizona Revised Statutes.
1.2 Adoption of an Ordinance means final approval by majority vote of the
City/Town council.
1.3 Audit means a review to determine the correct amount of tax owed by a taxpayer
and includes, but is not limited to, desk reviews and reviews of claims for refund.
1.4 Closing Agreement means an agreement to compromise or settle a tax liability.
2405600.2 5-20-2015
2
1.5 Confidential Information means all such information as defined in A.R.S. § 42-
2001.
1.6 Confidentiality Standards means the standards set forth in Appendix A or such
other written standards mutually agreed to by the Department and City/Town.
1.7 Federal Tax Information means federal return or return information the
Department receives from the Internal Revenue Service including any information
created by the Department derived from that information. Documents obtained
from a taxpayer or State records are not considered Federal Tax Information.
1.8 Model City Tax Code means the document defined in A.R.S. § 42-6051. The
official copy of the Model City Tax Code is published at modelcitytaxcode.az.gov.
1.9 Modification means a change to an assessment required or authorized by statute.
1.10 Municipal Tax(es) means transaction privilege and affiliated excise taxes,
including use tax, severance tax, jet fuel excise and use tax, and rental occupancy
tax, imposed by City/Town in accordance with the Model City Tax Code. Unless
the context provides otherwise, this definition includes tax, license fees, penalties,
interest and other similar charges.
1.11 State means the State of Arizona.
1.12 State and Local Uniformity Group (“SLUG”) means an advisory group
comprised of four representatives from municipal taxing jurisdictions and four
representatives of the Department as set forth in Section 13 below.
1.13 Taxpayer Information means information protected from disclosure pursuant to
Model City Tax Code § 510.
2. Disclosure of Information by City/Town to Department
2.1 Qualified Recipients of Information: The Department shall provide a list of the
names and job titles of Department employees authorized to request and receive
Taxpayer Information from City/Town. The Department shall inform City/Town of
any additions, deletions or changes to this list within fifteen calendar days after the
change occurs and shall provide an updated list at least annually. This information
shall be sent via email to City/Town at crudolphy@fh.az.gov. The City/Town will
not disclose Taxpayer Information to a Department employee whose name is not
included on this list. City/Town may contact the Department with any questions
related to qualified recipients by contacting the Cities Unit at
CitiesUnit@azdor.gov.
2.2 Use of Information: Any Taxpayer Information released by City/Town to the
Department may only be used by the Department for tax administration and
collection purposes, and may not be disclosed to the public in any manner that does
not comply with the Model City Tax Code. All Taxpayer Information shall be
stored and destroyed in accordance with the Confidentiality Standards.
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2.3 Municipal Ordinance:
(a) City/Town shall provide the Department with a copy of its Municipal Tax code
or any City/Town ordinances imposing the taxes to be collected hereunder
within ten calendar days of a request for such information from the
Department. This information shall be sent via email to the Cities Unit at
CitiesUnit@azdor.gov.
(b) City/Town shall provide the Department with a copy of any ordinance adopted
by City/Town after execution of this Agreement that imposes or modifies the
Municipal Taxes to be collected hereunder, including a new or different tax rate
as defined by A.R.S. § 42-6053(E), within ten calendar days of Adoption of an
Ordinance. This information shall be sent via email to the Cities Unit at
CitiesUnit@azdor.gov. No such ordinance shall take effect on a date other
than the first day of the month that is at least sixty calendar days after
City/Town provides notice to the Department unless City/Town and the
Department agree otherwise. The Department shall add the change to the
official copy of the Model City Tax Code within ten business days of receipt of
notice from City/Town. City/Town is responsible for confirming the change
has been made. Pursuant to A.R.S. § 42-6053(E)(2), changes in tax rates have
no effect unless reflected in the official copy of the Model City Tax Code.
(c) Within fifteen calendar days following the adoption of an annexation ordinance,
one copy of the ordinance and notification of the effective date of such
ordinance shall be sent to the Department via email at GIS@azdor.gov.
City/Town shall also include with the notice a list of businesses City/Town
knows to be located in the annexed area. The Department shall not be
obligated to begin collection of Municipal Tax any sooner than the first day of
the month that is at least sixty calendar days after the date the Department
received notice from City/Town of the annexation.
2.4 Development and Impact Fees: Upon request, City/Town shall provide to the
Department any information regarding development and impact fees to assist the
Department with the auditing of taxpayers and billing and collection of taxes.
2.5 Audits: Upon request by the Department, City/Town shall allow inspections and
copies of any City/Town tax audits.
2.6 Other Information: City/Town shall also provide other relevant information
necessary for tax administration and collection purposes as requested by the
Department.
2.7 Statutory Authority: The disclosure of confidential City/Town tax information is
governed by Model City Tax Code Section 510.
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3. Disclosure of Information by Department to City/Town.
3.1 Qualified Recipients of Information: City/Town shall provide a list of the names
and job titles of City/Town employees and any independent auditors acting on
behalf of City/Town authorized to receive Confidential Information. City/Town
shall inform the Department of any additions, deletions or changes to this list within
fifteen calendar days after the change occurs and shall provide an updated list at
least annually. This information shall be sent via email to the Cities Unit at
CitiesUnit@azdor.gov. The Department will not disclose any Confidential
Information to a City/Town employee or independent auditor whose name is not
included on this list. The Department may contact City/Town with any questions
related to qualified recipients by contacting crudolphy@fh.az.gov.
3.2 Suspension of Information: The Department will not withhold Confidential
Information from City/Town so long as City/Town complies with A.R.S. § 42-2001
et seq. and the Confidentiality Standards.
(a) If the Department has information to suggest City/Town, or any of its duly
authorized representatives, has violated A.R.S. § 42-2001 or the Confidentiality
Standards, the Department will send written notice to City/Town detailing the
alleged breach as understood by the Department and requesting a response to
the allegation within twenty calendar days of the date of the letter.
(b) The Department will review the written response from City/Town and consider
the information contained therein and all relevant circumstances surrounding the
alleged violation before making a written determination as to whether a
suspension of information is warranted and the length of the suspension.
(c) If City/Town is dissatisfied with the Department’s determination it may within
ten calendar days, submit a written request to SLUG requesting the group
review the determination.
(d) If the Department has information to suggest City/Town has violated the
Confidentiality Standards, the Department may inspect City/Town’s records,
facilities, and equipment to confirm whether there has been a violation.
3.3 Information to be Provided: Within the restrictions outlined in this Section, the
Department shall provide all of the information detailed in Appendix B, which may
be modified by the mutal agreement of the parties. The Department shall not
provide Federal Tax Information to City/Town. In addition to the information
detailed in Appendix B, City/Town may obtain upon request:
(a) Inspections and/or copies of Department tax audits, including all information
related to all cities and towns included in the tax audit; and
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(b) Other relevant information necessary for tax administration and collection
purposes, including all information necessary to verify City/Town received all
revenues collected by the Department on behalf of City/Town.
3.4 Storage and Destruction of Confidential Information: All Confidential
Information provided by the Department to City/Town shall be stored, protected,
and destroyed in accordance with the Confidentiality Standards.
3.5 Statutory Authority: The Department may disclose Confidential Information to
City/Town pursuant to A.R.S. § 42-2003(H) if the information relates to a taxpayer
who is or may be taxable by a county, city or town. Any Confidential Information
released to City/Town:
(a) May only be used for internal tax administration purposes as defined in A.R.S.
§ 42-2001(4); and
(b) May not be disclosed to the public in any manner that does not comply with
the Confidentiality Standards.
A.R.S. § 42-2003(H)(2) provides that any release of Confidential Information that
violates the Confidentiality Standards will result in the immediate suspension of any
rights of City/Town to receive taxpayer information pursuant to A.R.S. § 42-
2003(H).
3.6 Specificity of Data: A.R.S. § 42-6001 provides that taxpayers shall file and pay
Municipal Taxes to the Department if the Department has developed the electronic
and nonelectronic tools necessary to capture data with sufficient specificity to meet
the needs of all taxing jurisdictions, including specific data regarding each tax
classification and any corresponding deductions at each business location of the
taxpayer. Pursuant to A.R.S. § 42-5015, the electronic system utilized by the
Department must be able to capture data with sufficient specificity to meet the
needs of the taxing jurisdiction. The Department and City/Town agree that JT2 and
TPT2 (as summarized in Appendix C) are required to meet the specificity needs of
City/Town.
(a) Non-Program City/Town: If City/Town performed its own Municipal Tax
administration, collection, and licensing prior to July 1, 2015, then if the
Department is unable to commit by September 1, 2015 that the data detail
behind the JT2 and TPT2 will be provided to City/Town beginning and from
January 1, 2016, the following shall take place:
(1) The term of the agreement entered into by the Department and City/Town
pertaining to City/Town performing municipal licensing services on behalf
of the Department shall be extended for one (1) year; and
(2) All provisions in this Agreement pertaining to the administration, collection,
and licensing of Municipal Taxes shall not go into effect until such time as
the Department is able to meet the requirements of A.R.S. § 42-6001 and
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A.R.S. § 42-5015, however all language in this Agreement related to audit
functions shall remain in full force and effect.
(b) Program Cities/Towns: If the Department performed Municipal Tax
administration, collection and licensing for City/Town prior to July 1, 2015,
then if the Department is unable to commit by September 1, 2015 that the data
detail behind the JT2 and TPT2 will be provided to City/Town beginning and
from January 1, 2016, the Department will contintinue to perform those
functions. The continued provision of such service, however, shall not be
deemed waiver of any legal rights or remedies afforded to City/Town including,
but not limited to, a failure to meet the requirements of A.R.S. § 42-6001 and
A.R.S. § 42-5015.
4. Audit.
The Department shall administer the audit functions for City/Town in accordance with the
following provisions.
4.1 Training: All auditors and supervisors shall be trained in accordance with the
policies of the Department. Auditors who have not completed the training may
only work in connection with a trained auditor and cannot be the only auditor
assigned to the audit. The Department shall:
(a) Provide audit training at least three times per year, or more frequently if there
is a demonstrated need, and be responsible for its costs of the training and any
associated materials;
(b) Provide additional training when practical;
(c) Notify City/Town of any training sessions at least thirty calendar days before
the date of the training session;
(d) Provide copies of State tax statutes, audit reference materials and audit
procedures and manuals;
(e) Permit City/Town auditors and supervisors to attend any scheduled training as
space permits at designated training location: and
(f) Provide additional training as needed to inform auditors and supervisors
regarding changes in State law or Department policy.
4.2 Conflict of Interest: An auditor or supervisor trained and authorized to conduct an
audit may not conduct any of the following prohibited acts:
(a) Represent a taxpayer in any tax matter against the Department or City/Town
while employed or in an independent contractor relationship with the
Department or City/Town.
(b) Attempt to use his/her official position to secure any valuable thing or
valuable benefit for himself/herself or his/her family members.
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(c) Represent a taxpayer before the Department or City/Town concerning any
matter in which he/she personally participated for a period of one year after
he/she ends employment or the independent contractor relationship with the
Department or City/Town.
(d) Use information he/she acquires in the course of the official duties as an
auditor or supervisor in a manner inconsistent with his/her official duties
without prior written approval from the Department.
(e) For a period of one year after he/she ends employment or an independent
contractor relationship with the Department or City/Town, work in the same
firm as a person who represents a taxpayer against the Department or
City/Town unless the firm institutes formal barriers to prevent any sharing of
information between the trained auditor or supervisor and the remainder of the
firm.
The Department may revoke an individual’s authority to audit and prohibit the use
of any auditor or supervisor who violates this provision.
4.3 Audits and Refunds:
(a) City/Town may conduct an audit of a taxpayer engaged in business only in
City/Town. Before commencing such audit, City/Town shall notify the
Department to ensure the taxpayer is not already scheduled for an audit. The
Department will provide City/Town with a written response within fifteen
calendar days of the notice from City/Town.
(b) Except as permitted below, the Department shall conduct all audits of
taxpayers having locations in two or more cities or towns. A City/Town
auditor may participate in any audit City/Town requested the Department to
perform.
(c) City/Town shall notify the Department if it wants an audit of a taxpayer
having locations in two or more Arizona cities or towns and whose primary
business activity is in the following business classifications taxable by
City/Town, but not a taxable activity under State law:
1. Residential rentals;
2. Commercial rentals;
3. Speculative Builders; or
4. Advertising.
The Department will authorize such audits, to be overseen by the Department,
unless there is already an audit of the taxpayer scheduled, or the Department
determines the audit selection is discriminatory, an abuse of process or poses
other similar defects. The Department will notify City/Town of its
determination within thirty calendar days. No initial audit contact may occur
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between City/Town and a taxpayer until the Department approves the audit
notice.
(d) City/Town may request the Department conduct an audit of a taxpayer having
locations in two or more Arizona cities or towns and whose primary business
is subject to both city and state tax. The request must be made using the
Department’s audit request form. Copies of the form can be obtained from the
Department’s TPT Hub Unit at HubUnit@azdor.gov. The Department shall
notify City/Town of the decision regarding the request within thirty calendar
days of receipt of the request.
(e) The Department may deny a request for an audit for the following reasons:
1. An audit is already scheduled or planned for the taxpayer within six
months of the request;
2. The requested audit would interfere with strategic tax administration
planning;
3. The audit selection is discriminatory, an abuse of process or poses other
similar defects;
4. The request lacks sufficient information for the Department to determine
whether it is appropriate;
5. The Taxpayer was audited within the previous two years;
6. The Department lacks sufficient resources to conduct the audit; or
7. The scope or subject of the audit does not justify the use of Department
resources.
(f) If the Department denies a request to conduct an audit because it either lacks
resources to conduct the audit itself or the scope or subject of the audit does
not justify the use of Department resources then City/Town shall notify the
Department if it wants to conduct the audit under the supervision of the
Department. No initial audit contact may occur between City/Town and a
taxpayer until the Department appoints someone to supervise the audit.
(g) Any decision by the Department denying City/Town’s request to conduct any
audit may be referred to SLUG in accordance with Section 13 of this
Agreement.
(h) All audits conducted by City/Town shall be in accordance with standard audit
procedures defined in the Department audit manual. All auditors shall be
trained in accordance with Section 4.1 above.
(i) The Department may appoint a manager to supervise any audit conducted by
City/Town.
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(j) All audits shall include all taxing jurisdictions in the State regardless of which
jurisdiction’s auditors participate in the audit. All desk reviews must include
all taxing jurisdictions for which there is information available.
(k) The Department shall issue all audit assessments on behalf of all taxing
jurisdictions in a single notice to the taxpayer.
(l) The Department shall issue Modifications to audit assessments on behalf of all
taxing jurisdictions in a single notice to the taxpayer.
4.4 Claims for Refund:
(a) When a taxpayer files a request for refund, including refunds requested by
filing amended returns, the Department shall process the request and review it
for mathematical errors or for the failure of the taxpayer to properly compute
the tax based on the taxable income reported on the return or refund request.
(b) The Department will notify City/Town of all refund requests that are
processed involving City/Town’s Municipal Taxes within thirty calendar days
of processing the refund. City/Town may request an audit of the taxpayer as
set forth in Section 4.3 above. .
(c) The Department may assign an auditor to review requests for refunds. The
Department will notify City/Town, within thirty calendar days of initiating a
review, of all refunds under review by an auditor pertaining to a taxpayer who
engages in business within City/Town’s taxing jurisdiction and may request
that City/Town assign an auditor to assist with such reviews.
(d) City/Town is responsible for payment of all amounts to be refunded to
taxpayers for Municipal Tax incorrectly paid to City/Town. The Department
may offset a remittance to City/Town under this Agreement to cover the
amounts of allowed refunds. If there are insufficient funds available to pay
the refund, City/Town must pay the Department within sixty days of written
demand from the Department.
(e) The Department shall issue refund approvals/denials on behalf of all taxing
jurisdictions in a single notice to the taxpayer. City/Town may request copies
of such determinations.
4.5 Protests: Taxpayer protests of audit assessments and desk review assessments and
refund denials shall be directed to the Department. Appeals of audit assessments,
desk review assessments and refund denials shall be administered pursuant to Title
42, Chapter 1, Article 6, Arizona Revised Statues. Upon request, the Department
shall notify City/Town of any appeals within 30 days of receipt of the protest.
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4.6 Notice of Resolution: The Department shall notify City/Town when a protest is
resolved, including information concerning the resolution of the protest, within 30
days after the resolution of a protest.
4.7 Status Reports: The Department shall keep SLUG apprised of the status of each
protested matter involving the imposition of Municipal Taxes. City/Town may
request to be on a distribution list for monthly status reports by contacting the
Department’s Cities Unit.
5. Voluntary Disclosure Agreements
The Department may enter into a voluntary disclosure agreement with a taxpayer. A voluntary
disclosure agreement may limit the years subject to audit and waive penalties. City/Town may
request to be kept informed of voluntary disclosure agreements involving City/Town Municipal
Tax. If City/Town makes that request, the Department will notify City/Town of the Department’s
intent to enter into an agreement and the Department will provide the taxpayer’s identity within
thirty calendar days of disclosure. City/Town may request an audit of a taxpayer subject to a
voluntary disclosure agreement pursuant to Section 4.3 above.
6. License Compliance
6.1 License Issuance and Renewal: The Department shall issue new Municipal Tax
licenses and renew such licenses for City/Town Municipal Tax. The Department of Revenue
shall provide City/Town with information about all persons obtaining and renewing tax licenses
as set forth in Appendix B.
6.2 License Checks: The Department and City/Town shall coordinate efforts to
conduct tax license compliance checks through canvassing and other compliance methods.
6.3 Confidentiality: Any tax license information City/Town obtains from the
Department is considered Confidential Information and may only be disclosed as authorized by
A.R.S. § 42-2003. Any tax license information City/Town obtains through its own efforts may
be disclosed as allowed by applicable City/Town laws.
6.4 Changes to License Fees: Within fifteen calendar days following the Adoption of
an Ordinance (or official acknowledgment of approval of an ordinance by voters in an election of
a charter city) issuing or modifying a tax license fee, one copy of the ordinance and notification
of the effective date of such ordinance shall be sent to the Department via email at
CitiesUnit@azdor.gov. The Department shall not be obligated to begin collection of the new or
modified fee any sooner than sixty calendar days after the date the Department received the
ordinance from City/Town. Notice of an ordinance concerning a renewal tax license fee must be
received by the Department by July 31 in order to be collected the following calendar year.
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7. Closing Agreements
7.1 Approval - The Department shall notify City/Town before entering into a Closing
Agreement related to the tax levied and imposed by City/Town. The Department
shall seek approval from either City/Town or SLUG before entering into such
Closing Agreement. If the Closing Agreement concerns only City/Town, then the
Department will attempt to obtain approval from City/Town first, and will only seek
approval from SLUG if City/Town is unresponsive or the Department and
City/Town cannot reach an agreement. Approval and notice is not required for
Modifications of assessments.
7.2 Litigation - During the course of litigation, the Department shall seek a range of
settlement authority from City/Town or SLUG, unless the circumstances prevent
such action. The Department may also request a telephonic meeting of SLUG if
time and circumstances require immediate action.
8. Responsibility for Representation in Litigation.
8.1 Administrative Proceedings: The Department shall be responsible for
coordinating the litigation and defending the assessment or refund denial in any
administrative appeals before the Office of Administrative Hearings or the Director
of the Department regardless of who conducted the audit. The Department shall be
reasonably diligent in defending the interests of City/Town and City/Town shall
assist in such representation as may be requested by the Department.
8.2 Further Appeals: The Arizona Attorney General is responsible for defending the
assessment or refund denial at the Board of Tax Appeals, the Arizona Tax Court
and all higher courts. City/Town shall assist the Attorney General in such
representation and litigation as requested by the Attorney General’s Office.
8.3 Mutual Cooperation: The Department and City/Town agree they shall cooperate
in the appeal and litigation processes and shall ensure their auditors, supervisors,
and other necessary employees are available to assist the Department and the
Attorney General for informal interviews, providing documents and computer
records, preparing for depositions, attending depositions and trial as witnesses, and
assisting in trial/hearing preparation as needed.
8.4 Administrative Decisions: The Department shall provide a copy of any and all
administrative hearing level decisions, including Director’s decisions issued by the
Department to all jurisdictions on a distribution list. City/Town may request to be
on the distribution list by contacting the Department’s Cities Unit. Administrative
decisions are Confidential Information and must be stored and destroyed in
accordance with the Confidentiality Standards.
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9. Collection of Municipal Taxes
9.1 Tax Returns: Taxpayers who are subject to City/Town Municipal Taxes shall pay
such taxes to the Department. Tax payments shall be accompanied by a return
prepared by taxpayer on a form prescribed by the Department.
9.2 Collection: The Department shall collect any Municipal Tax imposed by
City/Town recorded on the Department’s tax accounting system. Amounts the
Department collects for delinquent City/Town Municipal Tax accounts after the
termination of this Agreement shall be forwarded to City/Town.
9.3 Remittance: All amounts collected by the Department for Municipal Taxes under
this Agreement shall be remitted to City/Town weekly on the basis of actual
collections. The Department shall initiate the electronic payment by noon on the
Monday after the end of the week in which the collections were made. Remittance
shall be made in the form of immediately available funds transferred electronically
to the bank account designated by City/Town.
9.4 Abatement: The Department, with the approval of the Attorney General, may
abate tax under certain circumstances. During the ordinary course of business, the
Department may determine for various reasons that certain accounts shall be
closed or cancelled. The Department shall seek input from City/Town or SLUG
before abating tax or closing accounts. The Department may request a telephonic
meeting of SLUG if time and circumstances require immediate action.
9.5 Funds Owed to City/Town: At all times and under all circumstances payments
remitted by a taxpayer to the Department for City/Town Municipal Taxes will be
considered property of City/Town. The Department may not retain or fail to remit
such funds to City/Town for any reason not specifically set forth in this Agreement
including, but not limited to, during the course of a dispute between City/Town
and the Department.
10. Financing Collection of Taxes.
The costs incurred by the Department in administering this Agreement shall be financed through
the State general fund appropriation to the Department.
11. Inter-Jurisdictional Transfers.
All inter-jurisdictional transfers of Municipal Tax monies by the Department shall be handled in
the following manner:
11.1 Requests: Requests for inter-jurisdictional transfers shall be made to the
Department. The Department will review the request and will not automatically
accept the request.
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11.2 Notice: The Department shall notify City/Town and any other city or town
implicated in the requested transfer a minimum of thirty calendar days prior to any
inter-jurisdictional transfer of money.
11.3 Dispute Resolution: Any city or town subject to an inter-jurisdictional transfer
shall resolve any dispute over the allocation of the tax in accordance with A.R.S.
§ 42-6003 and the Department shall transfer the funds subject to an inter-
jurisdictional transfer in accordance with the agreed upon allocation in a timely
manner.
12. Educational Outreach.
City/Town may conduct, at its own expense, educational outreach to taxpayers who are
conducting business activities within City/Town’s taxing jurisdiction concerning the Model City
Tax Code and the collection and administration of Municipal Taxes. Educational outreach shall
be consistent with applicable law and Department written guidance. Upon request, City/Town
shall provide information to the Department concerning such educational outreach efforts.
13. SLUG.
The Department shall create an advisory group to help resolve issues
13.1 Members: The members shall consist of four seats representing municipal taxing
jurisdictions and four seats representing the Department. Member seats may be
split so some people fill the position for only certain issues, such as audit
selection or collection abatement. There shall also be a list of alternate members,
who may be asked by a regular member who is unable to attend a meeting to take
that member's place at a SLUG meeting.
13.2 Selection: The Director of the Department shall appoint people to serve as
members of SLUG. Municipal taxing jurisdictions shall nominate members from
municipal taxing jurisdictions. All members shall serve for a period of one year
unless they resign at an earlier date. Members may be appointed to serve
consecutive terms. Members appointed to fill vacancies shall serve for the time
remaining on the term.
13.3 Meetings: SLUG shall meet on a regular basis and at least monthly unless the
members agree to cancel the meetings due to a lack of agenda items. It can
schedule additional meetings as necessary to timely discuss issues presented.
Alternate members may attend meetings, but cannot participate in any discussion
or voting, unless filling the seat of a regular member.
13.4 Issues: City/Town may refer issues to SLUG involving the following:
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(a) Decisions by the Department to not audit a taxpayer;
(b) Amendments to Department audit procedures or manuals;
(c) Closing Agreements or a range of settlement authority;
(d) Abatement or account closure in collections;
(e) Suspension of disclosure of information from the Department; and
(f) Other issues as authorized by the Director of the Department or agreed upon
by the parties.
13.5 Recommendations: SLUG shall make recommendations to the Director of the
Department. If the recommendation is approved by at least five members of
SLUG, the Director will accept the recommendation of SLUG. If SLUG cannot
reach a recommendation agreeable to at least five members of the group, the
Director may act as he deems to be in the best interests of all parties.
13.6 Voting: Voting shall be by secret ballot.
13.7 Procedures: SLUG may develop procedures concerning the operation of the
group as long as they are not inconsistent with this Agreement.
14. Funding of Additional Auditors by City/Town.
14.1 Funding: At the sole discretion of City/Town, City/Town may contribute funding
to the Department to pay for additional auditors to assist the Department in the
performance of audits of Municipal Tax owed to City/Town. Such additional
auditors funded by City/Town shall at all times be deemed to be employees of the
Department and under no circumstances shall be deemed to be employees or
agents of City/Town. It is the parties’ intention that City/Town funding be used to
increase the capabilities of the Department to perform Municipal Tax audits and
not to subsidize or replace State funding required for audit and collection of taxes.
14.2 Use of Funds: City/Town funding for additional auditors under this Section shall
be used to fund the auditors’ salaries and employee related expenses and shall not
be used to pay for Department office space, utilities, equipment, supplies, or
similar kinds of overhead.
14.3 Pool of Funds: The Department may pool any City/Town funding with any other
similar funding provided by other municipal taxing jurisdictions to pay for
additional auditors. The Department shall separately account for such funds in its
annual budget.
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14.4 Accounting: The Department shall provide an annual accounting to City/Town,
by August 31 each year describing how City/Town funding was used during the
prior fiscal year.
15. Satellite Offices for Department Auditors.
15.1 Funding: City/Town, at its own expense and at its sole discretion, may provide
one or more satellite offices and associated amenities for use by Department
employees to provide audit and/or customer service to taxpayers. Use of such
facilities by Department employees shall be at the sole discretion of the
Department. Nothing in this section shall require the Department to make use of
such facilities provided by City/Town.
15.2 Requirements: Any Department employee using a City/Town satellite office
must meet reasonable requirements of City/Town related to the use of the facility.
City/Town shall be responsible for notifying the Department of any concerns, and
the Department shall be responsible for taking appropriate actions to resolve those
concerns.
15.3 Termination: Once a satellite office is established, City/Town shall provide at
least 180 calendar days written notice to the Department prior to the termination
or relocation of a satellite office. The Department may discontinue the use of a
satellite office at any time upon notice to City/Town and shall promptly remove
all Department property.
15.4 License: All requirements of City/Town and the Department related to the
satellite office shall be outlined in a mutually acceptable form of license and
subject to separate approval.
16. Non-availability of Funds.
Every payment obligation of the Department and the City/Town pursuant to this Agreement is
conditioned upon the availability of funds appropriated or allocated for the payment of such
obligation, except for the rendering of funds to City/Town paid by a taxpayer for Municipal
Taxes or tax license fees of City/Town. If funds are not appropriated, allocated and available or
if the appropriation is changed resulting in funds no longer being available for the continuance of
this Agreement, this Agreement may be terminated at the end of the period for which funds are
available. No liability shall accrue to the State in the event this provision is exercised, and the
State shall not be obligated or liable for any future payments or for any damages as a result of
termination under this Section. The termination of this Agreement shall not entitle the
Department to retain any Municipal Tax collected on behalf of City/Town pursuant to this
Agreement.
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17. Waiver.
Nothing in this Agreement should be interpreted as City/Town relinquishing its legal rights under
the Arizona Constitution or other applicable law, nor that City/Town is conceding the
administration and collection of its Municipal Tax is not of a local interest or should not be under
local control.
18. Cancellation
The requirements of A.R.S. § 38-511 apply to this Agreement. The Department or City/Town
may cancel this Agreement, without penalty or further obligation, if any person significantly
involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the
Department or City/Town is, at any time while this Agreement or any extension is in effect, an
employee, agent or consultant of the other party with respect to the subject matter of this
Agreement.
19. Notice.
(a) When any Notice to City/Town is required under the terms of this Agreement, such
Notice shall be mailed to City/Town at the following address, directed to the attention of:
Town of Fountain Hills
Attn: Finance Director
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
(b) When any Notice to the Department is required under the terms of this Agreement, such
Notice shall be mailed to:
Arizona Department of Revenue
Attn: Director, Division Code 20
1600 W. Monroe
Phoenix, AZ 85007
Notice to the Department’s Hub Unit or City Unit may be mailed to:
Arizona Department of Revenue
Division Code 16
1600 W. Monroe
Phoenix, AZ 85007
2405600.2 5-20-2015
17
20. Non-discrimination.
The Department and City/Town shall comply with Executive Order 2009-9, which mandates all
persons, regardless of race, color, religion, sex, age, or national origin, shall have equal access to
employment opportunities, and all other applicable State and Federal employment laws, rules,
and regulations, including the Americans with Disabilities Act. The Department and City/Town
shall take affirmative action to ensure applicants for employment and employees are not
discriminated against due to race, creed, color, religion, sex, national origin or disability.
21. Compliance with Immigration Laws and A.R.S. § 41-4401.
21.1 The Department and City/Town shall comply with all Federal immigration laws
and regulations relating to employees and warrants compliance with A.R.S. § 23-
214(A) which reads in part: “After December 31, 2007, every employer, after
hiring an employee, shall verify the employment eligibility of the employee
through the e-verify program.”
21.2 A breach of compliance with immigration laws and regulations shall be deemed a
material breach of this Agreement and may be grounds for the immediate
termination of this Agreement.
21.3 The Department and City/Town retain the legal right to inspect the papers of any
employee who works on the Agreement to ensure the Department and City/Town
is complying with the applicable Federal immigration laws and regulations and
State statutes as set forth above.
22. Audit of Records.
City/Town and the Department shall retain all data, books, and other records (“Records”) relating
to this Agreement for at least six (6) years (a) after termination of this Agreement, and (b)
following each annual renewal thereof. All Records shall be subject to inspection by audit by the
State at reasonable times. Upon request, the Department and City/Town shall produce any or all
such records. This Agreement is subject to A.R.S. §§ 35-214 and -215.
23. Amendments.
Any amendments to or modifications of this Agreement must be executed in writing in
accordance with the provisions of this Agreement.
24. Mutual Cooperation.
In the event of a disagreement between the parties with regard to the terms, provisions and
requirements of this Agreement or in the event of the occurrence of any circumstances bearing
2405600.2 5-20-2015
18
upon or affecting this Agreement, parties hereby agree to mutually cooperate in order to resolve
the said disagreement or deal with the said circumstance.
25. Arbitration.
To the extent required by A.R.S. § 12-1518(B) and as provided for in A.R.S. § 12-133, the parties
agree to resolve any dispute arising out of this Agreement by arbitration. The parties agree that
any lawsuit filed by City/Town relating to the issues outlined in Section 17 of this Agreement is
not considered to be a dispute arising out of this Agreement.
26. Implementation.
The implementation and execution of the provisions of this Agreement shall be the responsibility
of the Director of the Department or his representative and the Mayor his/her designee, or
another party with designated authority pursuant to applicable law or City/Town charter on
behalf of City/Town.
27. Limitations.
Nothing in this Agreement shall be construed as limiting or expanding the statutory
responsibilities of the parties in performing functions beyond those granted to them by law, or as
requiring the parties to expend any sum in excess of their appropriations.
28. Duration.
28.1 The term of this Agreement shall be from July 1, 2015 through June 30, 2016.
This Agreement shall automatically be renewed for successive one year terms
thereafter unless either party shall terminate this Agreement by notice, in writing,
no later than sixty calendar days prior to the expiration of the term then in effect.
28.2 If State legislation enacted subsequent to the date of this Agreement substantially
affects the performance of this Agreement by either party or substantially
diminishes the benefits either party would receive under this Agreement, either
party may then terminate this Agreement by giving at least thirty calendar days’
notice to the other party. The termination will become effective immediately
upon the expiration of the notice period unless otherwise agreed to by the parties.
28.3 Notwithstanding any provision to the contrary herein, both parties may by mutual
agreement provide for the termination of this contract upon such terms and at
such time as is mutually agreeable to them.
28.4 Any notice of termination shall be mailed and served on the other party in
accordance with Section 19 of this Agreement.
2405600.2 5-20-2015
19
28.5 During the term of this Agreement, the terms and conditions of this Agreement
will undergo an annual review to be completed no later than March 1st of each
year. The review will be performed by a committee made up of equal parts
representatives of the Department and representatives of the municipal taxing
jurisdictions entering into an IGA with the Department for the administration and
collection of Municipal Taxes.
29. Choice of Law.
The laws and regulations of the State of Arizona shall govern the rights of the parties, the
performance of this Agreement, and any disputes arising from this Agreement.
30. Entire Agreement.
This document, including other documents referred herein, and any approved subcontracts,
amendments and modifications made thereto, shall constitute the entire Agreement between the
parties and shall supersede all other understandings, oral or written.
31. Signature Authority.
31.1 By signing below, the signer certifies he or she has the authority to enter into this
Agreement on behalf of his or her respective party, and he or she has read the
foregoing and agrees to accept the provisions herein on said party’s behalf.
2405600.2 5-20-2015
20
31.2 This Intergovernmental Agreement may be executed in counterpart.
Signature Date
Signature Date
Linda M. Kavanagh, Mayor
Typed Name and Title Typed Name and Title
Town of Fountain Hills
Entity Name Entity Name
16705 E. Avenue of the Fountains
Address Address
Fountain Hills AZ 85268
City State Zip City State Zip
RESERVED FOR THE ATTORNEY GENERAL: RESERVED FOR CITY/TOWN ATTORNEY:
This agreement between public agencies has been
reviewed pursuant to A.R.S. § 11-952 by the
undersigned Assistant Attorney General who has
determined that it is in proper form and is within the
powers and authority granted under the laws of the
State of Arizona to the Arizona Department of
Revenue represented by the Attorney General.
MARK BRNOVICH
The Attorney General
___________________________________________
Signature
Assistant Attorney General
Date: __________________________
This agreement between public agencies has been reviewed
pursuant to A.R.S. § 11-952 by the undersigned Town
Attorney who has determined that it is in proper form and is
within the powers and authority granted under the laws of
the State of Arizona to the Town of Fountain Hills.
APPROVED AS TO FORM AND AUTHORITY:
BY:________________________________
CITY/TOWN ATTORNEY
Date: ______________________________
ATTEST:
Bevelyn J. Bender, Town Clerk
APPENDIX A
ARIZONA DEPARTMENT OF REVENUE
CONFIDENTIALITY REQUIREMENTS 1. Confidential Information
1.1 Confidential Information is defined in A.R.S § 42-2001. Confidential Information may
not be disclosed except as provided by statute. A.R.S. § 42-2001(B).
1.2 License information obtained from the Department of Revenue is Confidential
Information and may only be disclosed as authorized by A.R.S. § 42-2003. License
information obtained from other sources is not Confidential Information.
1.3 Information about a taxpayer’s identity obtained from the Department of Revenue is
Confidential information and may only be disclosed as authorized by A.R.S. § 42-2003.
Identity information obtained from other sources is not Confidential Information.
1.4 Confidential Information includes information about a single taxpayer and also aggregated information about a group of identified or identifiable taxpayers. Aggregated
information from fewer than three taxpayers in a grouping on a statewide basis or fewer
than ten taxpayers in a grouping for an area that is less than state level (city or town) may
be Confidential Information. Such information may not be released unless the City/Town
Administrator reviews the relevant information concerning the aggregate data and makes a determination in writing that the aggregate data does not reveal information about any
specific taxpayer. Such determination should take into consideration the following:
a. The proportionality of the tax information applicable to individual members of the
group of taxpayers; no individual taxpayer’s information should be discernable due to its relative size/taxable sales, compared to other members of the group;
b. The total aggregated tax information; the aggregate information cannot allow
viewers to draw conclusions about individual taxpayers (e.g., there are 6 car
dealers in the city and the total aggregate sales were $900,000 and none of them
reported individual sales above the $20,000 mark, which would have qualified for the lower tax rate on large purchases)
c. Any other factor that could cause the aggregate data to be used to determine
information specific to a single taxpayer.
2. Protecting Information
2.1 City/Town must identify all places, both physical and logical, where Confidential
Information is received, processed and stored and create a plan to adequately secure those
areas.
2.2 Confidential Information must be protected during transmission, storage, use, and
destruction. City/Town must have policies and procedures to document how it protects
its information systems, including Confidential Information contained therein. An
example of appropriate protection standards is set forth in National Institute of Standards and Technology Special Publication 800-53. The publication may be found at
http://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-53r4.pdf
2.3 Employees are prohibited from inspecting information unless they have a business reason
for the information. Browsing information concerning friends, neighbors, family members, or people in the news is strictly prohibited.
2.4 All removable media, including paper and CDs, containing Confidential Information
must be secured when not in use and after normal business hours by placing all materials
in a locked drawer or cabinet. During use, Confidential Information must be protected so that it is not visible to members of the public or anyone without a business need for the
information.
2.5 All individuals accessing or storing Confidential Information from an alternative work
site must enter into a signed agreement that specifies how the Confidential Information will be protected while at that site. Only trusted employees shall be permitted to access
Confidential Information from alternative sites. Confidential Information may not be
accessed while in public places such as restaurants, lounges, or pools.
2.6 Confidential Information may not be sent outside the local area network by unencrypted email. City/Town is responsible for ensuring in-flight email communications containing
Confidential Information are sent through a secure process. This may include encryption
of the email message, a secure mailbox controlled by City/Town, an encrypted point-to-
point tunnel between the correspondents or use of Transport Layer Security (TLS)
between correspondents. The acceptable encryption algorithms are set forth in the standards attached as Exhibit 1, which may be updated to accommodate changed
technology.
2.7 Confidential Information may not be discussed in elevators, restrooms, the cafeteria, or
other public areas. Terminals should be placed in such a manner that prohibits public viewing of Confidential Information.
2.8 When transporting confidential materials the materials should be covered so that others
cannot see the Confidential Information. When sending Confidential Information by fax
a cover sheet should always be used.
2.9 Any person with unsupervised access to Confidential Information shall receive training
on the confidentiality laws and requirements to protect such information before being
given access to such Information and annually thereafter. They must sign certificates
after the training acknowledging that they understand their responsibilities. City/Town must keep records to document this training and certification.
3. Disclosure of Information
3.1 Confidential Information may only be disclosed as permitted by A.R.S. § 42-2003.
3.2 Confidential Information is confidential by statute and, therefore, does not have to be
disclosed in response to a public records request. A state agency may deny inspection of
public records if the records are confidential by statute. Berry v. State, 145 Ariz. 12, 13
699 P.2d 387, 388 (App. 1985).
3.3 A taxpayer may designate a person to whom Confidential Information may be disclosed
by completing a Department of Revenue Form 285, or such other form that contains the
information included in the Form 285. City/Town may contact the Department of
Revenue’s Disclosure Officer if there are any questions concerning this requirement.
Disposal of Information
4.1 All removable media containing Confidential Information must be returned to the
Department of Revenue or sanitized before disposal or release from the control of
City/Town.
4.2 Confidential Information may be destroyed by shredding or burning the materials when
no longer needed. Confidential Information may not be disposed of by placing the
materials in the garbage or recycle bins. Destruction of Confidential Information may be
performed by a third party vendor. City/Town must take appropriate actions to protect the Confidential Information in transit and storage before it is destroyed, such as periodic
inspections of the vendor.
4.3 Computer system components and devices such as copiers and scanners that have been
used to store or process Confidential Information may not be repurposed for non-tax administration uses unless the memory or hard drive of the device is sanitized to ensure
under no circumstances Confidential Information can be restored or recovered.
EXHIBIT 1
ENCRYPTION STANDARDS 1.0 Acceptable Encryption Algorithms – The following encryption algorithms are
considered acceptable for use in information systems to protect the transmission or
storage of Confidential Information and system access.
1.1.1 Acceptable Security Strength – the security strength of an encryption algorithm is a projection of the time frame during which the algorithm and the key length can be expected to provide adequate security. The security strength of encryption
algorithms is measured in bits, a measure of the difficulty of discovering the key.
a. The current minimum key strength for Confidential Information is 112 bits.
1.1.2 Symmetric Encryption Algorithms – The following symmetric encryption algorithms are considered acceptable for use.
Algorithm Reference Acceptable Key Strengths
Advanced Encryption Standard (AES) FIPS 197 128, 192 or 256 bits
Triple Data Encryption Algorithm (TDEA) (three key 3DES) SP 800-67 168 bits
1.1.3 Key Agreement Schemes – The following key agreement schemes are
considered acceptable for use
Key Agreement
Scheme
Reference Acceptable Key Strengths
Finite Fields Elliptical Curves
Diffie-Hellman
(DH) or MOV
SP 800-56A
SP 800-135
P = 2048
Q = 224 or 256
N: 224-255 and H=14
N: 256-383 and H=16
N: 384-511 and H=24 N: 512+ and H=32
RSA – based
SP 800-131A N = 2048
1.1.4 Hash Functions – The following hash functions are considered acceptable for use
Digital Signature Generation Digital Signature Verification Non-digital signature generation applications
SHA-224
SHA-256
SHA-384
SHA-224
SHA-256
SHA-384
SHA-1
SHA-224
SHA-256
SHA-512
SHA-512
SHA-384
SHA-512
1.1.5 Digital Signature Algorithms – The following digital signature algorithms are
considered acceptable for use.
Digital Signature
Algorithm
FIPS Publication Digital Signature
Generation
Settings
Digital Signature
Verification
Settings
Relative Strengths
Digital
Signature
Standard
(DSA)
FIPS 186-4 p>= 2048
q = 224
p>= 2048
q = 224
>= 112 bits
RSA Digital
Signature
FIPS 186-4 2048 2048 >= 112 bits
ECDSA FIPS 186-4 224 224 >= 112 bits
1.1.6 Message Signature Algorithms – The following digital signature algorithms are
considered acceptable for use.
Hash Algorithms Hash Generation Hash Verification
HMAC >= 112 bits >= 112 bits
CMAC AES, 3DES AES, 3DES
CCM and GCM/GMAC AES AES
APPENDIX B
From the effective date of this Agreement until the new functionalities set forth below are
implemented, the Department of Revenue will provide the following reports: City Payment Journal Detail;
City Payment Journal Summary;
New License Report
Within 30 days after the first month’s implementation of the JT2, the Department of Revenue will provide a new License Report and License Update Report containing at least the following
fields:
NEW LICENSE REPORT AND LICENSE UPDATE REPORT
Fields displayed:
o Region Code
o Run Date
o Report Start Date o Report End Date o Update Date o ID Type
o ID
o Account ID o Entity Name o Ownership Type o License ID
o OTO/Applied For indicator
o Bankruptcy Indicator o Filing Frequency o Issue Date o Account Start Date
o Business Start Date
o Arizona Start Date o Doc Loc Nbr o Accounting Method o Close Date
o Close Code
o Business Description o NAICS1 o NAICS2 o NAICS3
o NAICS4
o Mailing Street1 o Mailing Street2 o Mailing Street3 o Mailing City
o Mailing State
o Mailing ZIP
o Mailing Country o Mailing Phone Number o Mailing Address Add date
o Mailing Address End Date
o Audit Street1
o Audit Street 2 o Audit Street 3 o Audit City
o Audit State
o Audit Zip
o Audit Country o Audit Phone Number o Audit Address Add Date
o Audit Address End Date
o Location Code
o Business Codes o Location Name (DBA) o Number of Units
o Location Street 1
o Location Street 2
o Location Street 3 o Location City o Location State
o Location Zip
o Location Country
o Location Phone Number o Location Start Date o Location End Date
o Primary Location Street 1
o Primary Location Street 2
o Primary Location Street 3 o Primary Location City o Primary Location State
o Primary Location Zip Code
o Primary Location Country
o Primary Location Phone Number o Primary Location Start Date o Primary Location End Date
o Owner Name
o Owner Title
o Owner Name 2 o Owner Title 2 o Owner Name 3
o Owner Title 3
Within 30 days of the implementation of the TPT2, the Department of Revenue will provide the
following reports with at least the fields indicated below:
CITY PAYMENT JOURNAL
o Run Date
o Report Start Date
o Report End Date
o GL Accounting Period o Period End Date o Payment received date
o Return received date
o Payment process date
o Return process date o Filing Frequency o License ID
o Entity Name
o Location Code
o Location Name (DBA) o Location Street 1 o Location Street 2
o Location Street 3
o Location City
o Location State o Location Zip o Location Country
o NAICS
o Business Code
o Doc Loc Nbr o Pmt Loc Nbr o Gross Receipts
o Total Deductions
o Tax or Fee Collected
o P & I Collected o Audit Collections o Tran Type
o Tran Subtype
o Rev Type
CITY PAYMENT JOURNAL SUMMARY
o Region Code
o Run Date
o Report Start Date
o Report End Date o GL Accounting Period o Business Code
o Number of Accounts
o Collections
Within 30 days after the first month’s implementation of the TPT2, the following reports with at
least the fields indicated below:
NO MONEY REPORT
o Region Code
o GL Accounting Period o Period End Date o Payment received date
o Return received date
o Payment process date
o Return process date o Filing Frequency o License ID
o Entity Name
o Location Code
o Location Name (DBA) o Location Street 1 o Location Street 2
o Location Street 3
o Location City
o Location State o Location Zip o Location Country
o NAICS
o Business Code
o Doc Loc Nbr o Pmt Loc Nbr o Gross Receipts
o Total Deductions
o Tax or Fee Collected
o P & I Collected o Audit Collections o Tran Type
o Tran Subtype
DEDUCTION REPORT
o Region Code o Run Date
o Report Start Date
o Report End Date
o GL Accounting Period o Period End Date o License ID
o Entity Name
o Location Code
o Location Name (DBA)
o Business Code o Doc Loc Nbr o Deduction Code
o Deduction Amount
o Tran Type
o Tran Subtype o Rev Type
Within 30 days after taxes (subject to fund distributions) are collected, the Department of
Revenue will provide the following report with at least the fields indicated below:
FUND DISTRIBUTION REPORT
o Region Code
o Run Date
o Report Start Date
o Report End Date o GL Accounting Period o Period End Date
o Payment Received Date
o Return Received Date
o Payment Processed Date o Return Processed Date o License ID
o Entity Name
o Location Code
o Location Name (DBA) o Business Code o Doc Loc Nbr
o Fund Allocation Code
o Amount Distributed
FUND DISTRIBUTION SUMMARY REPORT
o Region Code
o Run Date
o Report Start Date
o Report End Date o GL Accounting Period o Fund Allocation Code
o Amount Distributed
FINALADOR 10196 (7/15)
JT-2/UC-001 (7/15)
IMPORTANT! Incomplete applications WILL NOT BE PROCESSED. • Please read form instructions while completing the application.
Additional information and forms available at www.azdor.gov
• Required information is designated with an asterisk (*). • Return completed application AND applicable license fee(s) to
address shown at left.• For licensing questions regarding transaction privilege tax, call
Taxpayer Information & Assistance: (602) 542-4576
License & RegistrationARIZONA DEPARTMENT OF REVENUE
PO BOX 29032Phoenix, AZ 85038-9032
SECTION A: Business Information
1* Federal Employer Identification No. or Social Security No. if sole proprietor without employees
2* License Type – Check all that apply:
Transaction Privilege Tax (TPT) Withholding/Unemployment Tax (if hiring employees)
Use Tax
TPT for Cities ONLY
3* Type of Organization/Ownership – Tax exempt organizations must attach a copy of the Internal Revenue Service’s letter of determination.
Individual/Sole Proprietorship Subchapter S Corporation Government Joint Venture
Corporation Association Estate Receivership
State of Inc. Partnership Trust
Date of Inc. M M D D Y Y Y Y Limited Liability Company Limited Liability Partnership
4* Legal Business Name
5* Mailing Address – number and street City
|
State
|
ZIP Code
|County/Region Country
6* Business Phone No. (with area code)7 Email Address 8 Fax Number (with area code)
9* Description of Business: Describe merchandise sold or taxable activity.
10* NAICS Codes: Available at www.azdor.gov
11* Did you acquire or change the legal form of an existing business?
No Yes You must complete Section F.
12* Are you a construction contractor?
No Yes (see bonding requirements)
BONDING REQUIREMENTS: Prior to the issuance of a Transaction Privilege Tax license, new or out-of-state contractors are required to post a Taxpayer Bond for Contractors unless the contractor qualifies for an exemption from the bonding requirement. The primary type of contracting being performed determines the amount of bond to be posted. Bonds may also be required from applicants who are delinquent in paying Arizona taxes or have a history of delinquencies. Refer to the publication, Taxpayer Bonds, available online at www.azdor.gov or in Arizona Department of Revenue offices.
WITHHOLDING LICENSE ONLY
13* Withholding Physical Location Number and street (Do not use PO Box, PMB or route numbers)City
|
State
|
ZIP Code
|
County/Region Country
Continued on page 2
FOR AGENCY USE ONLY CASHIER’S STAMP ONLY. DO NOT MARK IN THIS AREA.
New
Change
Revise
Reopen
ACCOUNT NUMBER DLN
START TRANSACTION PRIVILEGE TAX
S/E DATE WITHHOLDING / SSN / EIN
COMPLETED DATE EMPLOYEE’S NAME
LIABILITY LIABILITY ESTABLISHED
You can file and pay forthis application onlineat www.AZTaxes.gov. It is fast and secure.
ARIZONA JOINT TAX APPLICATION (JT-2)
FINALADOR 10196 (7/15)
JT-2/UC-001 (7/15)
ARIZONA JOINT TAX APPLICATION (JT-2)
Name (as shown on page 1)FEIN or SSN (as shown on page 1)
SECTION B: Identification of Owners, Partners, Corporate Officers Members/Managing Members or Officials of this Employing Unit
If you need more space, attach Additional Owner, Partner, Corporate Officer(s) form available at www.azdor.gov. If the owner, partners, corporate officers or combination of partners or corporate officers, members and/or managing members own more than 50% of or control another business in Arizona, attach a list of the businesses, percentages owned and unemployment insurance account numbers or provide a Power of Attorney (Form 285) which must be filled out and signed by an authorized corporate officer.Owner 1*Social Security No. *Title *Last Name First Name Middle Intl.
| |
*Street Address *City *State * % Owned
*ZIP Code *County *Phone Number (with area code)*Country
Owner 2*Social Security No.*Title *Last Name First Name Middle Intl.
| |
*Street Address *City *State * % Owned
*ZIP Code *County *Phone Number (with area code)*Country
Owner 3*Social Security No.*Title *Last Name First Name Middle Intl.
| |
*Street Address *City *State * % Owned
*ZIP Code *County *Phone Number (with area code)*Country
SECTION C: Transaction Privilege Tax (TPT)
1* Date Business Started in Arizona
M M D D Y Y Y Y
2* Date Sales Began
M M D D Y Y Y Y
3 What is your anticipated annual income for your first twelve months of business?
4 Filing Frequency Monthly Quarterly Seasonal Annual If seasonal filer, check the months for which you intend to do business:
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
5 Does your business sell tobacco products?
Yes Retailer OR Distributor
6 TPT Filing Method
Cash Receipts
Accrual
7 Does your business sell new motor vehicle tires or vehicles?
Yes You will have to file Motor Vehicle Tire Fee form
available at www.azdor.gov
8* Tax Records Physical Location – number and street (Do not use PO Box, PMB or route numbers)
City State ZIP Code
| | |
County Country
|
9* Name of Contact * Phone Number (with area code)Extension
|
SECTION D: Transaction Privilege Tax (TPT) Physical Location
1* Business Name, “Doing Business As” or Trade Name at this Physical Location
2* Physical Location of Business or Commercial/Residential Rental Number and street (Do not use PO Box, PMB or route numbers)City
|
State
|
ZIP Code
|
County/Region Country
Residential Rental Only – Number of Units Reporting City (if different than the physical location city)
3* Additional County/Region Indian Reservation: County/Region and Indian Reservation Codes available at www.azdor.gov
County/Region City
Business Codes (Include all codes that apply): See instructions. Complete list available at www.azdor.gov
State/ County CityIf you need more space, attach Additional Business Locations form available at www.azdor.gov
FINALADOR 10196 (7/15)
JT-2/UC-001 (7/15)
ARIZONA JOINT TAX APPLICATION (JT-2)
Name (as shown on page 1)FEIN or SSN (as shown on page 1)
SECTION E: Withholding & Unemployment Tax Applicants
1* Regarding THIS application, Date Employees First Hired in Arizona
M M D D Y Y Y Y
2 Are you liable for Federal Unemployment Tax?
Yes First year of liability: YYYY3 Are individuals performing services that are excluded from withholding or unemployment tax?
Yes Describe services:
4 Do you have an IRS ruling that grants an exclusion from Federal Unemployment Tax?
Yes Attach a copy of the Ruling Letter.
5 Do you have, or have you previously had, an Arizona unemployment tax number?
No Unemployment Tax Number:
Yes Business Name:
6 First calendar quarter Arizona employees were/will be hired and paid (indicate quarter as 1, 2, 3, 4):Hired Year Hired Quarter Paid Year Paid Quarter
YYYY Q YYYY Q
7 When did/will you first pay a total of $1,500 or more gross wages in a calendar quarter? (indicate quarter as 1, 2, 3, 4)
Exceptions: $20,000 gross cash wages Agricultural: $1,000 gross cash wages Domestic/Household: not applicable to 501(c)(3) Non-Profit.
Year Quarter
YYYY Q
8 When did/will you first reach the 20th week of employing 1 or more individuals for some portion of a day in each of 20 different weeks in the same calendar year? (indicate quarter as 1, 2, 3, 4)
Exceptions: 10 or more individuals Agricultural; 4 or more individuals 501(c)(3) Non-Profit; not applicable to Domestic/Household.
Year Quarter
YYYY Q
SECTION F: Acquired Business Information
If you answered “Yes” to Section A, question 11, you must complete Section F.
1* Did you acquire or change all or part of an existing business?
All
Part
2* Date of Acquisition
M M D D Y Y Y Y
3* EIN of Business Under Previous Owner
4* Previous Owner’s Telephone Number 5* Name of Business Under Previous Owner 6* Name of Previous Owner
7* Did you change the legal form of all or part of the Arizona operations of your existing business? (e.g., change from sole proprietor to corporation or etc.)
All
Part
8* Date of Change
M M D D Y Y Y Y
9* EIN of Previous Legal Form
SECTION G: AZTaxes.gov Security Administrator (authorized users)
By electing to register for www.AZTaxes.gov, you can have online access to account information, file and pay Arizona transaction privilege, use, and
withholding taxes. You may also designate authorized users to access these services. Please provide the name of the authorized user for AZTaxes.gov.
Name of Authorized User
Title
Email Address
Phone Number (with area code)
SECTION H: Required Signatures
This application must be signed by either a sole owner, at least two partners, managing member or corporate officer legally responsible for the business, trustee or receiver or representative of an estate that has been listed in Section B.
Under penalty of perjury I (we), the applicant, declare that the information provided on this application is true and correct. I (we) hereby authorize the security administrator, if one is listed in Section G, to access the AZTaxes.gov site for the business identified in Section A. This authority is to remain in full force and effect until the Arizona Department of Revenue has received written termination notification from an authorized officer.
1 Print or Type Name 2 Print or Type Name
Title Title
Date Date
Signature Signature
This application must be completed, signed, and returned as provided by A.R.S. § 23-722.
Equal Opportunity Employer/ProgramThis application available in alternative formats at Unemployment Insurance Tax Office.
PLEASE COMPLETE SECTION I: STATE/COUNTY & CITY LICENSE FEE WORKSHEET TO CALCULATE AND REMIT TOTAL AMOUNT DUE WITH THIS APPLICATION.
FINALADOR 10196 (7/15)
JT-2/UC-001 (7/15)
ARIZONA JOINT TAX APPLICATION (JT-2)
Name (as shown on page 1)FEIN or SSN (as shown on page 1)
SECTION I: State/County & City License Fee Worksheet
ALL FEES ARE SUBJECT TO CHANGE. Check for updates at azdor.gov.
To calculate CITY FEE: Multiply No. of Locations by the License Fee and enter sum in License Subtotal.
City/Town Code
No. of
Loc’s
License
Fee
License
Subtotal City/Town Code
No. of
Loc’s
License
Fee
License
Subtotal City/Town Code
No. of
Loc’s
License
Fee
License
Subtotal
Apache Junction AJ $50.00 Goodyear GY $5.00 Sahuarita SA $5.00
Avondale AV $40.00 Guadalupe GU $2.00 San Luis SU $2.00
Benson BS $5.00 Hayden HY $5.00 Scottsdale SC $50.00
Bisbee BB $1.00 Holbrook HB $1.00 Sedona SE $2.00
Buckeye BE $2.00 Huachuca City HC $2.00 Show Low SL $2.00
Bullhead City BH $2.00 Jerome JO $2.00 Sierra Vista SR $1.00
Camp Verde CE $2.00 Kearny KN $2.00 Snowflake SN $2.00
Carefree CA $10.00 Kingman KM $2.00 Somerton SO $2.00
Casa Grande CG $2.00 Lake Havasu LH $5.00 South Tucson ST $2.00
Cave Creek CK $20.00 Litchfield Park LP $2.00 Springerville SV $5.00
Chandler CH $50.00 Mammoth MH $2.00 St. Johns SJ $2.00
Chino Valley CV $2.00 Marana MA $5.00 Star Valley SY $2.00
Clarkdale CD $2.00 Maricopa MP $2.00 Superior SI $2.00
Clifton CF $2.00 Mesa ME $30.00 Surprise SP $10.00
Colorado City CC $2.00 Miami MM $2.00 Taylor TL $2.00
Coolidge CL $2.00 Nogales NO $25.00 Tempe TE $50.00
Cottonwood CW $2.00 Oro Valley OR $12.00 Thatcher TC $2.00
Dewey/Humboldt DH $2.00 Page PG $2.00 Tolleson TN $2.00
Douglas DL $5.00 Paradise Valley PV $2.00 Tombstone TS $1.00
Duncan DC $2.00 Parker PK $2.00 Tucson TU $45.00
Eagar EG $10.00 Patagonia PA $25.00 Tusayan TY $2.00
El Mirage EM $15.00 Payson PS $2.00 Wellton WT $2.00
Eloy EL $10.00 Peoria PE $50.00 Wickenburg WB $2.00
Flagstaff FS $46.00 Phoenix PX $50.00 Willcox WC $25.00
Florence FL $2.00 Pima PM $2.00 Williams WL $2.00
Fountain Hills FH $2.00 Pinetop/Lakeside PP $2.00 Winkelman WM $2.00
Fredonia FD $10.00 Prescott PR $25.00 Winslow WS $10.00
Gila Bend GI $2.00 Prescott Valley PL $2.00 Youngtown YT $10.00
Gilbert GB $2.00 Quartzsite QZ $2.00 Yuma YM $2.00
Glendale GE 50.00 Queen Creek QC $2.00
Globe GL $2.00 Safford SF $2.00
Subtotal City License Fees
(column 1)$Subtotal City License Fees
(column 2)$Subtotal City License Fees
(column 3)$
AA TOTAL City License Fee(s) (column 1 + 2 + 3) ..........................................................................................................................$
No. of Loc’s Fee per Location TOTAL
BB TOTAL State License Fee(s): Calculate by multiplying number of business locations by $12.00 $12.00 $
Residential Rental License Fees - Multiply the number of units per locations by $2.00
($50.00 Annual Cap per license). No. of Units No. of Loc’s City Fee
Residential Rental License-Chandler $ONLY CHANDLER, PHOENIX, and SCOTTSDALE
need to use this section, and NOT the fee chart above, to calculate license fee(s).The amount for each city CANNOT EXCEED $50.00
Residential Rental License-Phoenix $
Residential Rental License-Scottsdale $
CC TOTAL City Residential Rental License Fees (Add Chandler, Phoenix, & Scottsdale) .............................................................$
DD TOTAL DUE (Add lines AA + BB + CC) ......................................................................................................................................$
• Make check payable to Arizona Department of Revenue.• Include FEIN or SSN on payment.• Do not send cash.• License will not be issued without full payment of fee.
FINALADOR 10872 (5/15)
TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX RETURN - (TPT-2)
Arizona Department of RevenuePO Box 29010 - Phoenix, AZ 85038-9010For assistance out of state or in the Phoenix area: (602) 255-2060 orStatewide, toll free area codes 520 and 928: (800) 843-7196
TAXPAYER INFORMATION AMENDED RETURN FINAL RETURN CHECK HERE AND SIGN BELOW IF YOU (Cancel License) HAVE NO GROSS RECEIPTS TO REPORT
BUSINESS NAME
C/O
MAILING ADDRESS
CITY STATE ZIP CODE
ADDRESS CHANGED (MAILING ADDRESS ONLY)BUSINESS PHONE NUMBER
TPT-2 return is due the 20th day of the month following the month in which the transactions were conducted
TAXPAYER IDENTIFICATION NUMBER SSN EIN
LICENSE NUMBER
PERIOD BEGINNING
M D D Y Y Y YM
PERIOD ENDING
M D D Y Y Y YM
REVENUE USE ONLY. DO NOT MARK IN THIS AREA
POSTMARK DATE RECEIVED DATE
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
TAXPAYER PRINTED NAME
The taxpayer designates the individual listed below as the person to contact to schedule an audit of this return and authorize the disclosure of confidential information to this individual.
TAXPAYER SIGNATURE DATE PAID PREPARER’S SIGNATURE (OTHER THAN TAXPAYER)
TAXPAYER PHONE NO. TITLE PAID PREPARER’S TIN PAID PREPARER’S PHONE NO.
PLEASE MAKE CHECK PAYABLE TO ARIZONA DEPARTMENT OF REVENUE
NOTE: A TRANSACTION DETAIL PAGE IS REQUIRED OR THE RETURN WILL NOT PROCESS CORRECTLY AND PENALTIES MAY APPLY.
PAGE 1 OF
AA NET AZ/COUNTY TAX (PAGE 2, LINE MM, COLUMN (M)) ............................................................................................................................................................................................................
BB NET CITY TAX (PAGE 3, LINE RR, COLUMN (M)) .........................................................................................................................................................................................................................
CC NET TAX DUE ON THIS RETURN (LINE AA + LINE BB = LINE CC) .............................................................................................................................................................................................
DD TPT ESTIMATED PAYMENTS TO BE USED ON THIS RETURN (JUNE RETURN ONLY, DUE IN JULY) ....................................................................................................................................
EE TAX DUE NET OF TPT ESTIMATED PAYMENTS (LINE CC - LINE DD = LINE EE) ......................................................................................................................................................................
FF TOTAL AMOUNT REMITTED WITH THIS RETURN........................................................................................................................................................................................................................$
FINALADOR 10872 (5/15)
PAGE 2 OF TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX RETURN - (TPT-2) LICENSE NUMBER:
STATE (AZ) /COUNTY TRANSACTION DETAIL (See Table 1 on the Tax Rate Table, www.azdor.gov)
(A)(B)
REG. CODE
(C)
NAME OF REGION
(D)
BUS. CODE
(E)
DESC. OF BUS. ACTIVITY
(F)
GROSS RECEIPTS
(G)
DEDUCTIONS FROM SCHEDULE A
(H)
(F) - (G) = (H)NET TAXABLE
(I)
AZ / COUNTY TAX RATE
(J)
(H) X (I) = (J)TOTAL TAX
(K)
ACCTNGCREDIT RATE
(L)
(H) X (K) = (L)ACCOUNTING CREDIT
(M)
(J) - (L) = (M)AZ/COUNTY TAX DUE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
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23
24
25
GG SUBTOTAL ..........................................................................
HH TOTALS FROM ADDITIONAL AZ/COUNTY PAGE(S) .......
II TOTAL (LINE GG + LINE HH = LINE II) ..............................
JJ EXCESS TAX COLLECTED ..............................................................................................................................................................................................................................................................................................
KK EXCESS TAX ACCOUNTING CREDIT: (SEE INSTRUCTIONS) .....................................................................................................................................................................................................................................
LL NET AZ/COUNTY EXCESS TAX COLLECTED (LINE JJ, COLUMN (M) - LINE KK, COLUMN (M)) .............................................................................................................................................................................
MM NET AZ/COUNTY TAX (LINE II, COLUMN (M) + LINE LL, COLUMN (M)) ......................................................................................................................................................................................................................
FINALADOR 10872 (5/15)
PAGE 3 OF TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX RETURN - (TPT-2) LICENSE NUMBER:
CITY TRANSACTION DETAIL (See Table 2 on the Tax Rate Table, www.azdor.gov)
(A)
LOC.
CODE
(B)
CITY
CODE
(C)
NAME OF CITY
(D)
BUS.
CODE
(E)
DESC. OF
BUS. ACTIVITY
(F)
GROSS RECEIPTS
(G)
DEDUCTIONS FROM SCHEDULE A
(H)
(F) - (G) = (H)
NET TAXABLE
(I)
CITY TAX
RATE
(J)
(H) X (I) = (J)
TOTAL TAX
(K)(L)
CITY
CREDIT
(M)
(J) - (L) = (M)CITY
TAX DUE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
NN CITY SUBTOTAL ..................................................................................
OO CITY SUBTOTALS FROM ADDITIONAL CITY PAGE(S) ....................
PP CITY TOTAL (LINE NN + LINE OO = LINE PP) ...................................
QQ CITY EXCESS TAX COLLECTED .....................................................................................................................................................................................................................................................................................
RR NET CITY TAX (LINE PP, COLUMN (M) + LINE QQ, COLUMN (M)) ...............................................................................................................................................................................................................................
FINALADOR 10872 (5/15)
TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX RETURN - (TPT-2) LICENSE NUMBER: PAGE 2A OF ADDITIONAL TRANSACTIONS
STATE (AZ) /COUNTY TRANSACTION DETAIL (See Table 1 on the Tax Rate Table, www.azdor.gov)
(A)(B)
REG.
CODE
(C)
NAME OF
REGION
(D)
BUS.
CODE
(E)
DESC. OF
BUS. ACTIVITY
(F)
GROSS
RECEIPTS
(G) DEDUCTIONS FROM
SCHEDULE A
(H) (F) - (G) = (H)
NET TAXABLE
(I)AZ / COUNTY
TAX RATE
(J)
(H) X (I) = (J)
TOTAL TAX
(K)ACCTNGCREDIT
RATE
(L) (H) X (K) = (L)ACCOUNTING
CREDIT
(M)(J) - (L) = (M)AZ/COUNTY
TAX DUE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AZ/COUNTY SUBTOTAL ..................................................$$$$
ADD SUBTOTALS OF AZ/COUNTY ADDITIONAL TRANSACTIONS TO THE 2ND PAGE OF RETURN
FINALADOR 10872 (5/15)
TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX RETURN - (TPT-2) LICENSE NUMBER: PAGE 3A OF ADDITIONAL TRANSACTIONS
CITY TRANSACTION DETAIL (See Table 2 on the Tax Rate Table, www.azdor.gov)
(A) LOC.
CODE
(B)
CITY
CODE
(C)
NAME OF CITY
(D)
BUS.
CODE
(E)
DESC. OF
BUS. ACTIVITY
(F)
GROSS RECEIPTS
(G) DEDUCTIONS FROM
SCHEDULE A
(H)
(F) - (G) = (H)
NET TAXABLE
(I)CITY TAX
RATE
(J)
(H) X (I) = (J)
TOTAL TAX
(K)(L)
CITY
CREDIT
(M)(J) - (L) = (M)CITY
TAX DUE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
CITY SUBTOTAL ..................................................................................$$$$
ADD SUBTOTALS OF CITY ADDITIONAL TRANSACTIONS TO THE 3RD PAGE OF RETURN
FINALADOR 10872 (5/15)
TPT-2 – SCHEDULE A DEDUCTIONS – STATE/COUNTY LICENSE NUMBER: Page of TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX
STATE (AZ) /COUNTY DEDUCTIONS DETAIL
(A)(B)
REGION
CODE
(C)
BUSINESS
CODE
(D)
DEDUCTION
CODE
(E)
DEDUCTION AMOUNT
(F)
DESCRIPTION OF
DEDUCTION CODE
1 $
2 $
3 $
4 $
5 $
6 $
7 $
8 $
9 $
10 $
11 $
12 $
13 $
14 $
15 $
16 $
17 $
18 $
19 $
20 $
21 $
22 $
23 $
24 $
25 $
26 $
27 $
28 $
29 $
30 $
31 $
32 $
33 $
34 $
35 $
AA SUBTOTAL OF DEDUCTIONS ...............................................................$
BB DEDUCTION TOTALS FROM ADDITIONAL AZ/COUNTY PAGE(S) ...$
CC TOTAL DEDUCTIONS (LINE AA + LINE BB = LINE CC) ......................$
TOTAL MUST EQUAL TOTAL ON PAGE 2, LINE II, COLUMN G
FINALADOR 10872 (5/15)
TPT-2 – SCHEDULE A DEDUCTIONS – CITY LICENSE NUMBER: Page of TRANSACTION PRIVILEGE, USE, AND SEVERANCE TAX
CITY DEDUCTIONS DETAIL
(A)
LOCATION
CODE
(B)
CITY
CODE
(C)
BUSINESS
CODE
(D)
DEDUCTION
CODE
(E)
DEDUCTION AMOUNT
(F)
DESCRIPTION OF
DEDUCTION CODE
1 $
2 $
3 $
4 $
5 $
6 $
7 $
8 $
9 $
10 $
11 $
12 $
13 $
14 $
15 $
16 $
17 $
18 $
19 $
20 $
21 $
22 $
23 $
24 $
25 $
26 $
27 $
28 $
29 $
30 $
31 $
32 $
33 $
34 $
35 $
AA SUBTOTAL OF DEDUCTIONS ...............................................................$
BB DEDUCTION TOTALS FROM ADDITIONAL CITY PAGE(S) .................$
CC TOTAL DEDUCTIONS (LINE AA + LINE BB = LINE CC) ......................$
TOTAL MUST EQUAL TOTAL ON PAGE 3, LINE PP, COLUMN G
2401716.1
RESOLUTION NO. 2015-31
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING, IN ACCORDANCE WITH THE
TOWN OF FOUNTAIN HILLS GENERAL PLAN 2010, THE DOWNTOWN
AREA SPECIFIC PLAN TO ALLOW FOR ASSISTED LIVING FACILITIES
IN THE SOUTH END DISTRICT AS SHOWN IN CASE NO. GPA2015-03.
WHEREAS, the Town of Fountain Hills General Plan 2010 (the “General Plan”) was
adopted by the Mayor and Council of the Town of Fountain Hills (the “Town Council”) on
January 7, 2010, and ratified by the qualified electors of the Town of Fountain Hills (the
“Town”) on May 18, 2010; and
WHEREAS, in accordance with the General Plan, the Town Council adopted the
Downtown Vision Plan as an Area Specific Plan as provided in ARIZ. REV. STAT. § 9-461.09, as
amended, to be known as the “Downtown Fountain Hills Area Specific Plan” (the “Downtown
Specific Plan”) on December 17, 2009; and
WHEREAS, the Downtown Specific Plan divided the downtown area into nine
“districts,” each with a different intended character; and
WHEREAS, the Downtown Specific Plan does not allow for assisted living facilities
within the “South End District” as currently described; and
WHEREAS, the Town Council desires to amend the text of the Downtown Specific Plan
to allow for assisted living facilities in the South End District in order to accommodate a
proposed development within the area (the “Specific Plan Amendment”); and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.09 and the General Plan, the Town
has consulted with, advised and provided the opportunity for public comment on the Specific
Plan Amendment; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.09 and the General Plan, the Town
Planning and Zoning Commission (i) held a public hearing on the proposed Specific Plan
Amendment on June 11, 2015, and (ii) provided notice of such hearing by publication in the
Fountain Hills Times on May 27, 2015, and June 3, 2015; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.09 and the General Plan, the Town
Council (i) held a public hearing on the proposed Specific Plan Amendment on June 18, 2015
and (ii) provided notice of such hearing by publication in the Fountain Hills Times on May 27,
2015, and June 3, 2015; and
WHEREAS, the Town Council finds and determines that (i) proper notice of the
proposed Specific Plan Amendment has been given in a manner required by ARIZ. REV. STAT. §
9-461.09 et seq. and (ii) each of the required publications have been made.
2401716.1
2
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 Downtown Specific Plan is hereby amended to change the narrative
text for the South End District (p. 13) as follows:
South End District: The South End District is envisioned as a mixed-use
downtown neighborhood with a predominance of residential living opportunities. These
residential uses should be complimented by small-scale neighborhood-oriented
commercial, second story offices, and other specialty shops and businesses. The Area
Specific Plan calls for The South End District to be anchored by an iconic village square
that will provide a civic presence for the downtown and a prominent park for neighboring
residents.
Residential development is intended to incorporate an active street front with parking and
garages strategically located to the rear of lots with access from alleys. The range of
residential products may include single-family detached homes, townhomes,
brownstones, row homes, condominiums and apartments, AND ASSISTED LIVING
FACILITIES. The fabric of the neighborhood should be complimented with small
streets, comfortable sidewalks, and generous street trees for shade, on-street parking, and
pocket parks that provide strategic open space for adjacent development.
SECTION 3. If any provision of this Resolution is for any reason held by any court of
competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed
separate, distinct and independent of all other provision and such holding shall not affect the
validity of the remaining portions of this Resolution.
SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps necessary to carry out the purpose and intent
of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 18, 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
2401720.1
RESOLUTION NO. 2015-32
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN
HILLS GENERAL PLAN 2010 REGARDING ALLOWABLE RESIDENTIAL
DENSITIES IN MIXED USE DEVELOPMENTS WITHIN THE
BOUNDARIES OF THE DOWNTOWN SPECIFIC AREA PLAN, AS SHOWN
IN CASE NO. GPA2015-04.
WHEREAS, the Town of Fountain Hills General Plan 2010 (the “General Plan”) was
adopted by the Mayor and Council of the Town of Fountain Hills (the “Town Council”) on
January 7, 2010, and ratified by the qualified electors of the Town of Fountain Hills (the
“Town”) on May 18, 2010; and
WHEREAS, Figure 11 in Chapter 3 of the General Plan (the “Land Use Plan”) sets forth
the land-use designations for all real property within the corporate limits of the Town; and
WHEREAS, the Land Use Plan designates the area of downtown that is included in the
Downtown Area Specific Plan; and
WHEREAS, the Land Use Definitions set forth in Chapter 3 (Land Use Element) of the
General Plan include residential densities for multifamily uses, but do not specifically address
the residential densities allowed in mixed use developments; and
WHEREAS, the General Plan establishes the authority and procedures for amendments
to the General Plan land-use designations; and
WHEREAS, the Town Council desires to amend the General Plan to provide for a range
of residential densities in mixed use areas (the “General Plan Amendment”); and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.06 and the General Plan, the Town
has consulted with, advised and provided the opportunity for public comment on the General
Plan Amendment; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.06 and the General Plan, the Town
Planning and Zoning Commission (i) held a public hearing on the proposed General Plan
Amendment on June 11, 2015, and (ii) provided notice of such hearing by publication in the
Fountain Hills Times on May 27, 2015, and June 3, 2015; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-461.09 and the General Plan, the Town
Council (i) held a public hearing on the proposed General Plan Amendment on June 18, 2015
and (ii) provided notice of such hearing by publication in the Fountain Hills Times on May 27,
2015, and June 3, 2015; and
WHEREAS, the Town Council finds and determines that (i) proper notice of the
proposed General Plan Amendment has been given in a manner required by ARIZ. REV. STAT. §
9-461.09 et seq. and (ii) each of the required publications have been made.
2401720.1
2
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 General Plan is hereby amended to modify the narrative text for the
definition of the Mixed Use land-use category (p. 37) as follows:
Mixed-Use
The Mixed Use category denotes the Town Center area where a mix of commercial,
retail, office, high density residential, municipal, civic, recreational, cultural, institutional,
parking, lodging and religious facilities are to be located. Several uses can be
accommodated within a single project if the mix of uses is carefully designed to be
mutually supportive and the project as a whole will reinforce the viability and vision of
the Town Center. NOTWITHSTANDING MAXIMUM RESIDENTIAL DENSITIES
DESIGNATED FOR OTHER LAND-USE CATEGORIES, HIGH-DENSITY
RESIDENTIAL USES IN THE MIXED USE CATEGORY MAY BE UP TO 28
DU/ACRE WITHIN THE BOUNDARIES OF THE DOWNTOWN AREA SPECIFIC
PLAN.
SECTION 3. If any provision of this Resolution is for any reason held by any court of
competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed
separate, distinct and independent of all other provision and such holding shall not affect the
validity of the remaining portions of this Resolution.
SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps necessary to carry out the purpose and intent
of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 18, 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
2401630.1
ORDINANCE 15-07
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS ZONING ORDINANCE, CHAPTER 23, PLANNED AREA
DEVELOPMENT (P.A.D.) DISTRICT, RELATING TO A REDUCTION IN
THE MINIMUM SIZE FOR PAD REZONING IN THE DOWNTOWN AREA.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) adopted Ordinance 93-22 on November 18, 1993, which adopted the Zoning
Ordinance for the Town of Fountain Hills (the “Zoning Ordinance”); and
WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter
23, Planned Area Development (P.A.D.) District, Section 23.06, General Requirements and Standards, to reduce the minimum size for a parcel of land to be zoned PAD from five acres to
three acres when the land is within the Downtown Area Boundary; and
WHEREAS, in accordance with the Zoning Ordinance and pursuant to ARIZ. REV. STAT.
§ 9-462.04, public hearings regarding this ordinance were advertised in the May 27, 2015, and June 3, 2015, editions of the Fountain Hills Times; and
WHEREAS, public hearings were held by the Fountain Hills Planning & Zoning
Commission (the “Commission”) on June 11, 2015, and by the Town Council on June 18, 2015;
and
WHEREAS, the Commission recommended approval of this Ordinance.
NOW, THEREFORE, BE IT ORDAINED 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 Chapter 23 (Planned Area Development (P.A.D.) District), Section
23.06 (General Requirements and Standards), Subsection I (Size and Use Restrictions) is hereby amended as follows:
I. Size and Use Restrictions. P.A.D. zoning shall not be approved for one (1) single
family home on one single family lot or for a parcel of land less than five (5)
acres in size, UNLESS THE PARCEL OF LAND IS WITHIN THE DOWNTOWN AREA BOUNDARY DEPICTED IN SECTION 23.05, IN WHICH CASE P.A.D. ZONING SHALL NOT BE APPROVED FOR A
PARCEL OF LAND LESS THAN THREE (3) ACRES.
SECTION 3. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance.
2401630.1 2
SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to execute all documents and take all steps necessary to carry
out the purpose and intent of this Ordinance.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, June 18, 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
2401721.3
ORDINANCE 15-08
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS OFFICIAL ZONING DISTRICT MAP FOR APPROXIMATELY 3.3
ACRES GENERALLY LOCATED AT THE NORTHWEST CORNER OF
VERDE RIVER DRIVE AND PAUL NORDIN PARKWAY AS SHOWN IN
CASE NO. Z2015-05, FROM TCCD (TOWN CENTER COMMERCIAL
DISTRICT) TO MORNINGSTAR PAD.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town
Council”) desires to amend the Town of Fountain Hills Official Zoning District Map (the
“Zoning Map”) pursuant to ARIZ. REV. STAT. § 9-462.04, to change the zoning description for a
3.3 acre parcel of real property from TCCD (Town Center Commercial District) to Morningstar PAD (the “Zoning District Map Amendment”); and WHEREAS, the Zoning District Map Amendment proposed by this ordinance is
consistent with the Fountain Hills General Plan 2010, as amended; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-462.04 the Town of Fountain Hills
Planning and Zoning Commission (the “Commission”) (i) held a public hearing on the proposed
Zoning District Map Amendment on June 11, 2015, and (ii) provided notice of such hearing by
publication in the Fountain Hills Times on May 27, 2015, and June 3, 2015; and
WHEREAS, pursuant to ARIZ. REV. STAT. § 9-462.04 the Town Council (i) held a public
hearing on the proposed Zoning District Map Amendment on June 18, 2015, and (ii) provided
notice of such hearing by publication in the Fountain Hills Times on May 27, 2015, and
June 3, 2015; and
WHEREAS, the Commission recommended approval of this Ordinance.
NOW, THEREFORE, BE IT ORDAINED 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 3.3 acre parcel of real property generally located at the northwest
corner of Verde River Drive and Paul Nordin Parkway, as more particularly described and
depicted on Exhibit A, attached hereto and incorporated herein by reference, is hereby rezoned from TCCD (Town Center Commercial District) to Morningstar PAD, subject to (i) the Town’s
adopted codes, requirements, standards and regulations for property zoned TCCD, except as
specifically modified by the Morningstar PAD document file stamped 2402109.2, as included in
case no. Z2015-05 and (ii) the time condition set forth in Section 3 below.
2401721.3 2
SECTION 3. Approval of the Morningstar PAD zoning is conditioned on development
of the project commencing within three years of the effective date of this Ordinance, subject to
the following:
1. Prior to the expiration of the three-year time condition, the property owner or authorized representative may submit an application for an extension to the Town.
Submittal of an application for extension of the three-year time condition does not
toll the running of the time condition. Should the three-year time condition expire
between the submittal of an application for a time extension and the public hearing on the requested extension, the Morningstar PAD shall be subject to reversion as set forth below. Upon receipt of a request for extension, the Town’s
Zoning Administrator shall submit the request to the Town Council for
consideration at a public hearing held as set forth below.
2. The Town Council shall, after notices via certified mail to the property owner and authorized representative have been provided at least 15 days prior to the date of
the scheduled hearing, hold a public hearing on the extension request. The Town
Council may, in its sole discretion, grant an extension of the time condition,
subject to the limitation on the number of extensions set forth below. If the public hearing is held after expiration of the time condition, the Town Council may also, at that public hearing, take action to revert the zoning on the property to its prior
zoning classification.
3. In the event the project has not commenced within the three-year time period and no request for time extension has been received as provided above, the Zoning Administrator may submit the Morningstar PAD to the Town Council for
consideration of reversion, pursuant to the hearing procedure set forth below.
4. The Zoning Administrator shall notify the property owner and authorized representative by certified mail of the Town Council’s intention to hold a hearing to determine compliance with the three-year time condition, and to revert the
zoning on the property to its former classification if the condition is determined
by the Town Council to have not been met. All such notices shall be made at least
15 days prior to the date of the scheduled hearing. The Town Council may, in its sole discretion, either grant an extension of the time condition, subject to the limitation on the number of extensions set forth below, or revert the zoning on the
property to its prior zoning classification.
5. The Town Council may grant up to four one-year extensions of the time condition.
6. Following the commencement of the project, the Zoning Administrator shall
monitor the project to ensure it continues to completion. Upon the Zoning
Administrator’s initial determination that the project is not being actively pursued, no further review or approval of any project site plan or plat shall occur until it is determined that good cause exists for delay in the construction of the project.
2401721.3 3
Should the project fail to proceed, a public hearing shall be held by the Town
Council to determine the cause of the delay. At the public hearing on the matter, if
the Town Council determines that there is not good cause for the delay, it may
impose additional conditions on the Morningstar PAD to ensure compliance. If such additional conditions are not met, the Zoning Administrator may set the
matter for public hearing, according to the process set forth in subsection above,
on a possible reversion of the Morningstar PAD zoning. If the Town Council
determines that good cause exists, it may amend the Morningstar PAD
development schedule.
7. For purposes of this Section, the terms “commence,” “commencing” and
“commencement” shall mean physical vertical construction activity in accordance
with a valid building permit issued by the Town.
SECTION 4. If any provision of this Ordinance is for any reason held by any court of
competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed
separate, distinct and independent of all other provisions and such holding shall not affect the
validity of the remaining portions of this Ordinance.
SECTION 5. 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 Ordinance.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, June 18, 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
2401721.3
EXHIBIT A
TO
ORDINANCE No. 15-08
(Legal Description and Map)
See following pages.
LEGAL DESCRIPTION
LOTS 1, 2 AND 3 OF A FINAL REPLAT OF BLOCK 7, PLAT 208
Lots 1, 2, and 3, of a Final Replat of Block 7, Plat No. 208, Fountain Hills, Arizona, Book 144 of
Maps, Page 4, according to the Plat of record in the office of the County Recorder of Maricopa
County, Arizona, as recorded on December 10, 2002 in Book 615, Page 49, of the records of Maricopa County Arizona, and being a part of Sections 14 and 15, Township 3 North, Range 6
East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona.
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
ORD#15-08
Page 1 of 11
2402109.2
MORNINGSTAR – PLANNED AREA DEVELOPMENT (PAD)
Section 1 – Purpose
The Morningstar PAD zoning district is located on approximately 3.34 acres and is
established to (i) create a modified set of regulations based upon the existing TCCD
zoning and (ii) approve certain uses that would otherwise require a special use permit
under TCCD, including the following:
1. Rezone approx. 3.34 acres TCCD zoning to Morningstar PAD (the TCCD
regulations, with the modifications described herein).
2. Include “Assisted Living Facility” as permitted use rather than requiring a Special
Use Permit use.
3. Allow greater than the 50% limit of residential square footage in a mixed-use
project.
4. Reduction of required number of dumpsters from 4 to 1.
5. Re-configure parking space size from 9’ wide x 19’ deep, to 9’ wide x 17’ deep
with a 2’ overhang.
Morningstar PAD hereby establishes the 3.34 acre PAD zone subject to the design
guidelines and standards set forth below and the Town of Fountain Hills Zoning
Ordinance. In the event of a conflict between the Zoning Ordinance and this PAD, the
provisions of this PAD shall prevail. Unless specifically modified herein, all of the
provisions of the Town of Fountain Hills Zoning Ordinance and Town of Fountain Hills
Subdivision Ordinance shall apply to the Morningstar PAD district.
Section 2 – Development Plan
Upon the Fountain Hills Town Council’s approval of the ordinance adopting the
Morningstar PAD, development of the property shall be governed as set forth in this
Development Plan. The Morningstar PAD shall include uses identified as Permitted
Uses and Special Permit Uses in the Town’s TCCD zoning district; provided, separate
Special Use Permits shall be required for any special use other than the Assisted Living
Facility use granted as part of this PAD. Incorporated by reference into this
Development Plan are the following documents, which are attached in the appendix
hereto (collectively, the “Concept Plan”):
(i) Concept Civil Plan (plan sheets C1 of C6 - C6 of C6), prepared by DNA Inc,
Civil Engineering, date stamped May 20, 2015;
(ii) Preliminary Landscape Plan (plan sheets L1.0 - L4.0), prepared by Campbell
Collaborative, Landscape Architects, date stamped May 20, 2015;
(iii) Lighting Plan (plan sheets E1.1 - E1.2), prepared by NP Engineering Inc, date
stamped May 11, 2015;
(iv) Lighting Cut Sheets and Specs (plan sheet E1.3), prepared by NP
Engineering Inc, date stamped May 11, 2015;
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
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2402109.2
(v) Architectural Elevations and Floor plans (plan sheets EBE, ASP, FP1 & FP2),
prepared by Landmark Design, date stamped May 19, 2015.
Pursuant to the Fountain Hills Zoning Ordinance Section 23.07.B, the Morningstar
PAD DEVELOPMENT PLAN contains the following components:
1. Name of Development: Morningstar of Fountain Hills
16750-16820 N. Paul Nordin Parkway
Fountain Hills, AZ 85268
2. Developer: N-Shea Group, LLC
14555 N. Scottsdale Road
Scottsdale, AZ 85254
(480) 315-0154
3. Legal Description:
LOTS 1, 2 AND 3 OF A FINAL REPLAT OF BLOCK 7, PLAT 208
Lots 1, 2, and 3, of a Final Replat of Block 7, Plat No. 208, Fountain Hills, Arizona,
Book 144 of Maps, Page 4, according to the Plat of record in the office of the County
Recorder of Maricopa County, Arizona, as recorded on December 10, 2002 in Book
615, Page 49, of the records of Maricopa County Arizona, and being a part of
Sections 14 and 15, Township 3 North, Range 6, East of the Gila and Salt River
Base and Meridian, Maricopa County, Arizona.
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
ORD#15-08
Page 3 of 11
2402109.2
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
ORD#15-08
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2402109.2
4. Location Map:
5. Site Conditions:
The “Morningstar of Fountain Hills” is planned as a two-story Assisted Living Facility at
the northeast corner of Paul Nordin Parkway and Verde River Drive. The land is
generally sloping from west to east and bordered by vacant commercial property to the
north, The Lexington Inn Hotel to the east, vacant lots across Verde River Drive to the
west and The Village at Town Center condominiums to the south across Paul Nordin
Parkway.
Existing drainage flows will remain or be modified per engineering design guidelines.
Structures will be designed to ensure adequate setbacks from all drainage channels.
Adequate detention channels will be designed: The preliminary grading and drainage
plan (included as part of the Concept Plan and incorporated into this PAD) is shown on
page C4 of C6, including the following information:
a. Topographic contours.
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
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Page 5 of 11
2402109.2
b. Location and extent of major vegetative cover. All Saguaro cacti as well
as other significant vegetation will be identified. All salvageable plants
within the project and will be incorporated into the overall design.
c. Existing drainage.
d. Location of all retaining walls, which are between 1’ and 6’ in height.
e. Natural features and manmade features such as existing roads and
structures are shown on the Concept Plan.
f. A slope analysis map is not included; commercial property is exempt from
the Town’s hillside protection easement requirements.
g. There are no known existing agreements applicable to the site.
6. Proposed land use areas and specifications, including use standards of each
area:
a. Proposed dwelling unit type, total land area and maximum density of
residential use areas are shown on the Concept Plan.
b. Proposed uses, total land area and maximum lot coverage are as follows:
SITE INFORMATION:
Address: 16750-16820 N. Paul Nordin Parkway
Fountain Hills, AZ 85268
APNs: 176-25-557, 176-25-558, 176-25-559
Gross Lot Area: 3.34 Acres
Project Data:
Current Zoning: TCCD
Proposed Zoning: Morningstar PAD
Lot Size: 3.34 Acres
Usage Allowed: 100%
Actual Usage: 56% +
Assisted Living: 81,550 SF
Excess: 63,940 + SF
c. Proposed public streetscape and public and private open space
improvements and their relationship to the overall development are shown
on the Concept Plan.
Morningstar PAD
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2402109.2
d. Building heights, minimum lot areas and setbacks are shown on the
Concept Plan according to the following:
Minimum
Setbacks
District
Lot
Area
(Sq Ft)
Bldg
Height Front Side Rear Lot
Coverage
Distance
Between Bldgs
Morningstar
PAD 145,490 31’-3” 0’* 0’* 0’* 101,577 20’
* When adjacent to a residential district, there shall be a setback
equal to the greater of 10 feet or a distance equal to the height
of the adjacent building wall plane.
e. Building elevations and architectural renderings showing architectural
theme colors and type of exterior building materials for the structure are
shown on the Concept Plan and Morningstar Color Palette.
f. A graphic representation of the proposed landscaping treatment, plant
materials, fences, walls and other site plan and open space improvements
are shown on the Concept Plan.
g. Proposed location and use of all lands proposed to be dedicated for public
purposes are shown on the Concept Plan.
h. Master water, sewer and drainage plans are shown on the Concept Plan.
Water Service will be provided by the Chaparral City Water Company
(EPCOR). All water service requirements shall be pursuant to the rules
and regulations of EPCOR. Sewer service has been confined to be
provided by the Fountain Hills Sanitary District. All sewer service
requirements shall be pursuant to the rules and regulations of the
Fountain Hills Sanitary District. Existing and proposed grades and
drainage systems and how drainage is altered, how it is redirected to
original channel, and how the requirements regarding storm water runoff
and drainage have been met are shown on the Concept Plan.
i. When the Morningstar site is developed and operational, it is forecast to
generate approximately ______ trips in a 24 hour period. A Traffic Impact
Analysis including projected volumes on streets within and adjacent to the
site has been completed. The analysis indicated limited off-site
improvements are necessary to accommodate the increase in traffic at
level of service C or better.
7. The location, number of spaces, dimensions, circulation patterns, and surface
materials for all off-street parking areas, driveways, access way and pedestrian
walkways are shown on the Concept Plan. The Morningstar PAD parking ratio
has been increased from the Town’s zoning requirements: 111 beds would
Morningstar PAD
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2402109.2
typically require 28 spaces, but 92 spaces (modified per Section 1, Item 5 above)
will be provided.
8. The location, dimensions, height, area, materials and lighting of signage are
preliminarily shown on the Concept Plan. On-site signage will be located Paul
Nordin Parkway and Verde River Drive. All signage will be by separate permit
and shall conform to the Fountain Hills Zoning ordinance.
9. The location, height and type of outdoor lighting are shown on the Concept Plan.
Exterior site lighting shall conform to the illumination results shown on the lighting
design plan. At no time shall the amount of light leaving the property be greater
than zero lumens. On-site exterior lighting shall also conform to the Fountain
Hills Dark Sky Zoning ordinance.
Section 3 – Project Narrative
Project Summary- MorningStar of Fountain Hills
MorningStar of Fountain Hills is planned as a new class-A, institutional Assisted
Living and Memory Care community located in Fountain Hills, Arizona to provide a
high- quality senior living option to the established, growing, and underserved
areas of Fountain Hills, Scottsdale, Tempe, Mesa, and the n orth and eastern areas of
Phoenix. The project will be developed (along with NSG) and managed by
MorningStar Senior Living ("MorningStar"), a highly experienced and successful
owner, operator and developer of similar communities. The two-story, wood-
construction community will be comprised of approximately 81,550 gross square
feet in 91 total units, of which 63 will be Assisted Living ("AL") rental units (76
licensed beds) and 28 will be Memory Care rental units (35 licensed beds) designed
specifically for residents needing special care for Alzheimer's and other memory
impairments ("Memory Care" or "MC"). The Community will include state-of-the-
art design and significant amenity space and will be well positioned from a location
and pricing perspective to meet the substantial demand for senior housing and care
in the area.
Services & Amenities
Assisted Living services are intended for seniors who need assistance with the
activities of daily living, including eating, bathing, dressing and medication
management, but do not require 24-hour care. Working closely with residents, their
family members and physicians, MorningStar staff members create individualized
personalized care plans intended to meet each resident's specific needs and
preferences.
Residents enjoy amenities like salons, spa baths, theaters and libraries as well as
meals, social activities, housekeeping and other services. Memory Care will be
provided in a secure home-like environment by staff members who are specifically
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
ORD#15-08
Page 8 of 11
2402109.2
trained to understand and meet the unique needs of residents suffering from
Alzheimer's and other dementia-related diseases.
Both Assisted Living and Memory Care residents may select private or companion
suites from a variety of floorplans and may select from a menu of services including
meals, housekeeping, transportation and others. The MorningStar resident units are
not like a typical dwelling unit found in a senior apartment building. Since all meals
are served restaurant style in the common dining room, the units are designed as
bedroom suites without cooking facilities. The commercial kitchen which serves the
community is centrally located.
In addition to the common dining area, the building offers residents a variety of
common living spaces that complement the residents' individual bedroom suites,
such as a parlor, library, bistro, theater and other activity areas. MorningStar of
Fountain Hills will employ approximately 70 full- time and part-time staff, but the
maximum number of staff on site at any one time will be approximately 25, which
occurs between the hours of 10:00 a.m. and 3:00p.m. when meal service and a
number of activities are being offered.
The exterior amenities provided at MorningStar of Fountain Hills will include:
• Large community porches for year-round use
• Secured courtyard and walking path for Memory Care residents
• Grand lobby entrance and lounge area
• Bistro, as well as full dining room facility
• High quality exterior building elements
• Beautiful professionally-maintained landscaping
• On-grade parking for immediate use of visitors and staff
The interior amenities of the building will include common spaces and finish details
such as:
• Elegant sitting rooms
• A private dining room for family gatherings and celebrations
• Several specially-designed activity/programming areas
• Large community activities room
• Massage parlor
Morningstar PAD
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2402109.2
• Fitness and wellness center with physical therapy room
• Barber and beauty salon
• Convenience shop
• Theater/chapel
Unit amenities will include the following:
• 9' Ceilings
• Large windows allowing significant natural lighting
• Sink and Full-Size Refrigerator
• Interior spaces finished by high-caliber interior design firm specializing
exclusively in senior living
• Cable and internet wiring for each unit
• Individually controlled air conditioning/heating
• 24-hour emergency response system will utilize a state-of-the-art resident call
system that allows residents to alert staff that help is needed 24 hours a day
from any location on the premises.
• Large roll-in shower with seat
Services:
• Individualized direct care based on each resident's assessed needs
• Full-time wellness and activities directors providing social, cultural and
educational programs
• Scheduled transportation
• Nursing coverage by RNs and/or LPNs seven days/week
• 24-hour caregiver staff
• Basic cable TV and utilities
• Weekly housekeeping, laundry and flat linen service
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
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2402109.2
• Reception and message service
• Three daily meals and snacks
• Reminders for meals and activities
• Maintenance staff to ensure the building and grounds are attractive, clean
and safe
The following optional services will be made available for a nominal charge:
• Concierge service
• Personal transportation
• Massage therapy
• Short-term respite care
• Barber and beauty salon service
• Guest meals
Morningstar PAD
16750 – 16820 N. Paul Nordin Parkway
ORD#15-08
Page 11 of 11
2402109.2
APPENDIX
Concept Plan Documents
Concept Grading and Drainage Plan
Preliminary Landscape Plan
Lighting Plan
Lighting Cut Sheets and Specs
Architectural Elevations and Floorplans
2404405.1
RESOLUTION 2015-14
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, LEVYING UPON THE ASSESSED
VALUATION OF THE PROPERTY WITHIN THE TOWN OF FOUNTAIN
HILLS SUBJECT TO AD VALOREM TAXATION, A CERTAIN SUM UPON
EACH ONE HUNDRED DOLLARS ($100.00) OF VALUATION SUFFICIENT
TO RAISE THE AMOUNT ESTIMATED TO BE REQUIRED IN THE
ANNUAL BUDGET, SPECIFICALLY FOR THE PURPOSE OF PAYING
PRINCIPAL AND INTEREST UPON BONDED INDEBTEDNESS; ALL FOR
THE FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30,
2016.
WHEREAS, the Mayor and Town Council of the Town of Fountain Hills (the “Town
Council”) is required by ARIZ. REV. STAT §§ 42-17151 and 42-17253 to adopt an annual tax levy
based upon the rate to be assessed per each one hundred dollars ($100.00) of valuation of real and
personal property within the corporate limits of the Town of Fountain Hills (the “Town”); and
WHEREAS, by the provisions of State Law, a resolution levying the property taxes for
fiscal year 2015-16 is required to be finally adopted on or before the third Monday in August and
not less than 14 days after a hearing on the tax levy is held; and
WHEREAS, the Town Council held a public hearing on the tax levy and adopted the
Town’s annual budget by Resolution 2015-13 on June 4, 2015, at least 14 days prior to the
adoption of this Resolution 2015-14; and
WHEREAS, Maricopa County is assessing and collecting authority for the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, as follows:
SECTION 1. The foregoing recitals are incorporated as if fully set forth herein.
SECTION 2. There is hereby levied on each one hundred dollars ($100.00) of assessed
valuation of all property, both real and personal, within the corporate limits of the Town of
Fountain Hills, except such property as may be by law exempt from taxation, a secondary property
tax rate of $0.5246, or such other rate as determined by the Maricopa County Treasurer to be
sufficient to raise the sum of $2,109,477, for the purpose of paying principal and interest on
bonded indebtedness for the fiscal year ending June 30, 2016.
SECTION 3. Failure by the officials of Maricopa County, Arizona, to properly return the
delinquent list, any irregularity in assessments or omissions in the same, or any irregularity in any
proceedings shall not invalidate such proceedings or invalidate any title conveyed by any tax deed;
failure or neglect of any officer or officers to timely perform any of the duties assigned to him or to
them shall not invalidate any proceedings or any deed or sale pursuant thereto, the validity of the
assessment or levy of taxes or of the judgment or sale by which the collection of the same may be
2404405.1
2
enforced shall not affect the lien of the Town of Fountain Hills upon such property for the
delinquent taxes unpaid thereon, and no overcharge as to part of the taxes or of costs shall
invalidate any proceedings for the collection of taxes or the foreclosure; and all acts of officers de
facto shall be valid as if performed by officers de jure.
SECTION 4. The Town Clerk is hereby authorized and directed to transmit a certified
copy of this Resolution to the Maricopa County Assessor and the Maricopa County Board of
Supervisors.
SECTION 5. If any provision of this Resolution is for any reason held by any court of
competent jurisdiction to be unenforceable, such provision of portion hereof shall be deemed
separate, distinct, and independent of all other provisions and such holding shall not affect the
validity of the remaining portions of this Resolution.
SECTION 6. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps necessary to carry out the purpose and intent
of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
June 18, 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