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HomeMy WebLinkAbout151105P z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 1 of 4 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:15 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, NOVEMBER 5, 2015 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived. PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Linda M. Kavanagh Vice Mayor Dennis Brown Councilmember Henry Leger Councilmember Nick DePorter Councilmember Alan Magazine Councilmember Cassie Hansen Councilmember Cecil A. Yates z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 2 of 4 EXECUTIVE SESSION AGENDA  CALL TO ORDER – Mayor Linda M. Kavanagh 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to: A.R.S. § 38-431.03(A)(3), Discussion or consultation for legal advice with the attorney or attorneys of the public body, and A.R.S. § 38-431.03(A)(4), Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically: (i) the Park Place Development Agreement, (ii) a settlement offer on a tax enforcement action, and (iii) the Fountain Hills Theater Lease). 2. ADJOURNMENT. REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Moment of Silence  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) The Mayor will read a PROCLAMATION declaring November 2015 as McDowell Mountain Month in the Town of Fountain Hills. ii) The Mayor will read a PROCLAMATION declaring November 2015 as American Diabetes Month in the Town of Fountain Hills.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) Mayor Kavanagh may review RECENT EVENTS attended relating to Economic Development. ii) RECOGNITION of Robbie Cole for attaining rank of Eagles Scout after completing his Fountain Hills Community project. iii) Presentation of the TOWN OF FOUNTAIN HILLS' COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) and associated reports for the fiscal year ending June 30, 2015, by Dennis Osuch, CPA, Principal with CliftonLarsonAllen LLP iv) Presentation of the QUARTERLY BUDGET REPORT by Finance Director Craig Rudolphy the Town’s for Fiscal Quarter ending September 30, 2015. v) PRESENTATION by Recreation Supervisor Rachael Goodwin regarding the Town’s sponsorship of the CopperWynd Women’s Pro-Challenge Tennis Event scheduled for November 8 through 15, 2015. z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 3 of 4 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 October 13, 2015. 2. CONSIDERATION of RESOLUTION 2015-53, approving the Town of Fountain Hills 2015 Multi-Jurisdictional Hazard Mitigation Plan. 3. CONSIDERATION of approving a Liquor License Application for ACQUISITION OF CONTROL AND AGENT CHANGE submitted by Gwendolyn Wallace, Owner/Agent of Cowboy Spirits LLC DBA Saddle Bronc Grill, located at 11056 N. Saguaro Boulevard, Fountain Hills, AZ. 4. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Merita Kraya, Owner/Agent of Euro Pizza Café located at 12645 N Saguaro Boulevard, Suite 11, Fountain Hills, AZ. This is for a series 7 license (Beer & Wine Bar). 5. CONSIDERATION of a CONTRACT with Salt River Project for the Ashbrook Wash Relocations (SRP Work Order #T2015861 (Construction Services Contract (FCDMC))), having a cost of $114,751.95. REGULAR AGENDA ITEMS 6. CONSIDERATION of approving a SETTLEMENT OFFER relating to a tax enforcement action. 7. CONSIDERATION of accepting a BRONZE SCULPTURE titled, “Gone, but not Forgotten”, and placement in Fountain Park at the request of the Public Art Committee. 8. DISCUSSION WITH POSSIBLE AFFIRMATION of “Fount Rushmore” as the OFFICIAL NAME OF THE PLAZA near the U.S. Presidents statues at Fountain Park. z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 4 of 4 9. CONSIDERATION of a FINAL REPLAT at 16750, 16800 & 16820 E. Paul Nordin Parkway and at 16845 E. Avenue of the Fountains (Plat 208, Block 7, Lots 1, 2, 3 & 5). Case # S2015-08. This item was TABLED at the 10/15/15 Council meeting. 10. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow the installation of a 25’ tall GOLF NET at 17008 E. Jacklin Drive. (APN 176-08- 738). Case # SU2015-14 11. CONSIDERATION of a proposed SPECIAL USE PERMIT to allow the installation of a 25’ tall GOLF NET at 17008 E. Jacklin Drive. (APN 176-08-738). Case # SU2015-14 12. DISCUSSION with POSSIBLE DIRECTION TO THE STRATEGIC PLANNING ADVISORY COMMISSION regarding its project approach and efforts in updating the Town of Fountain Hills Strategic Plan. 13. CONSIDERATION of ORDINANCE 15-09, amending Town Code Chapter 2, Mayor and Council, Article 2-3, by modifying the provisions relating to all-mail ballot elections and by incorporating changes to State Law regarding calculation of the majority of votes cast. 14. CONSIDERATION or ORDINANCE 15-10, approving an amendment to the pavement management program and authorizing the necessary budget transfers to fund the program. 15. 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. 16. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 17. ADJOURNMENT. DATED this 29th day of October, 2015. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816- 5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 1 of 4 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:15 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, NOVEMBER 5, 2015 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived. PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Linda M. Kavanagh Vice Mayor Dennis Brown Councilmember Henry Leger Councilmember Nick DePorter Councilmember Alan Magazine Councilmember Cassie Hansen Councilmember Cecil A. Yates z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 2 of 4 EXECUTIVE SESSION AGENDA  CALL TO ORDER – Mayor Linda M. Kavanagh 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to: A.R.S. § 38-431.03(A)(3), Discussion or consultation for legal advice with the attorney or attorneys of the public body, and A.R.S. § 38-431.03(A)(4), Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically: (i) the Park Place Development Agreement, (ii) a settlement offer on a tax enforcement action, and (iii) the Fountain Hills Theater Lease). 2. ADJOURNMENT. REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Moment of Silence  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) The Mayor will read a PROCLAMATION declaring November 2015 as McDowell Mountain Month in the Town of Fountain Hills. ii) The Mayor will read a PROCLAMATION declaring November 2015 as American Diabetes Month in the Town of Fountain Hills.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) Mayor Kavanagh may review RECENT EVENTS attended relating to Economic Development. ii) RECOGNITION of Robbie Cole for attaining rank of Eagles Scout after completing his Fountain Hills Community project. iii) Presentation of the TOWN OF FOUNTAIN HILLS' COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) and associated reports for the fiscal year ending June 30, 2015, by Dennis Osuch, CPA, Principal with CliftonLarsonAllen LLP iv) Presentation of the QUARTERLY BUDGET REPORT by Finance Director Craig Rudolphy the Town’s for Fiscal Quarter ending September 30, 2015. v) PRESENTATION by Recreation Supervisor Rachael Goodwin regarding the Town’s sponsorship of the CopperWynd Women’s Pro-Challenge Tennis Event scheduled for November 8 through 15, 2015. z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 3 of 4 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 October 13, 2015. 2. CONSIDERATION of RESOLUTION 2015-53, approving the Town of Fountain Hills 2015 Multi-Jurisdictional Hazard Mitigation Plan. 3. CONSIDERATION of approving a Liquor License Application for ACQUISITION OF CONTROL AND AGENT CHANGE submitted by Gwendolyn Wallace, Owner/Agent of Cowboy Spirits LLC DBA Saddle Bronc Grill, located at 11056 N. Saguaro Boulevard, Fountain Hills, AZ. 4. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Merita Kraya, Owner/Agent of Euro Pizza Café located at 12645 N Saguaro Boulevard, Suite 11, Fountain Hills, AZ. This is for a series 7 license (Beer & Wine Bar). 5. CONSIDERATION of a CONTRACT with Salt River Project for the Ashbrook Wash Relocations (SRP Work Order #T2015861 (Construction Services Contract (FCDMC))), having a cost of $114,751.95. REGULAR AGENDA ITEMS 6. CONSIDERATION of approving a SETTLEMENT OFFER relating to a tax enforcement action. 7. CONSIDERATION of accepting a BRONZE SCULPTURE titled, “Gone, but not Forgotten”, and placement in Fountain Park at the request of the Public Art Committee. 8. DISCUSSION WITH POSSIBLE AFFIRMATION of “Fount Rushmore” as the OFFICIAL NAME OF THE PLAZA near the U.S. Presidents statues at Fountain Park. z:\council packets\2015\r151105\151105a.docx Last Printed: 10/29/2015 3:17 PM Page 4 of 4 9. CONSIDERATION of a FINAL REPLAT at 16750, 16800 & 16820 E. Paul Nordin Parkway and at 16845 E. Avenue of the Fountains (Plat 208, Block 7, Lots 1, 2, 3 & 5). Case # S2015-08. This item was TABLED at the 10/15/15 Council meeting. 10. PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow the installation of a 25’ tall GOLF NET at 17008 E. Jacklin Drive. (APN 176-08- 738). Case # SU2015-14 11. CONSIDERATION of a proposed SPECIAL USE PERMIT to allow the installation of a 25’ tall GOLF NET at 17008 E. Jacklin Drive. (APN 176-08-738). Case # SU2015-14 12. DISCUSSION with POSSIBLE DIRECTION TO THE STRATEGIC PLANNING ADVISORY COMMISSION regarding its project approach and efforts in updating the Town of Fountain Hills Strategic Plan. 13. CONSIDERATION of ORDINANCE 15-09, amending Town Code Chapter 2, Mayor and Council, Article 2-3, by modifying the provisions relating to all-mail ballot elections and by incorporating changes to State Law regarding calculation of the majority of votes cast. 14. CONSIDERATION or ORDINANCE 15-10, approving an amendment to the pavement management program and authorizing the necessary budget transfers to fund the program. 15. 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. 16. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 17. ADJOURNMENT. DATED this 29th day of October, 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. '•:o>:•;•>'.•/>>-.••••.•::•:••.•.•'».>/>•>.•:•••/.rviv.v.;./.-.-,-.-,,-....,.-,•;./•:•:•.'.,<>>.••-••.:•>•••<>;-v....,,,;^,....,..•.. Town of Fountain Hills PROCLAMATION WHEREAS,the preservation of the McDowell Mountains and the Sonoran Desert has been established as a high priorityofthe Town ofFountain Hills and its citizens; and WHEREAS,it is the desire of the Town ofFountain Hills to celebrate the unique environment of its Preserve;and WHEREAS,it is also the intent of the Town ofFountain Hills to raise awareness regarding the need to preserve these valuable treasuresforfuture generations; and WHEREAS,the first permanent access trail to the Preserve has been completed that links the McDowell Mountain Regional Park's Dixie Mine Trail to the Preserve's northern boundary via the Sonoran Trail;and NOW,THEREFORE,I,Linda M.Kavanagh,Mayor of the Town ofFountain Hills,Arizona,do hereby declare the month ofNovember2015 as: "Mcdowell mountain month" in Fountain Hills and call upon all citizens to take a moment during the month to appreciate the beauty ofthis community treasure. DatedThis 5th dayof November,2015 AndaM. Kavanagh, Mayor ATTEST: /jUM Bevelyn J.Bender/Town/Clerk •;.g:,v.>•;,;,.;.;,.-....,-,..;.:.„• Town of Fountain Hills PROCLAMATION WHEREAS,in the United States,nearly 30 million people -including 692,311 people in Arizona -have diabetes,a serious disease with potentially life-threatening complications such as heart disease,stroke,blindness,kidney disease and amputation;and WHEREAS,an additional 86 million people in the United States are at risk for developing type 2 diabetes;and WHEREAS,recent estimates project that as many as one in three American adults will have diabetes by 2050 if current trends continue;and WHEREAS,an increase in community awareness is necessary to put a stop to the diabetes epidemic;and WHEREAS,I,Linda M.Kavanagh,Mayor of the Town of Fountain Hills,Arizona,do hereby proclaim November 2015 as AMERICAN DIABETES MONTH in Fountain Hills.I encourage all Americans to recognize American Diabetes Month and be part of the American Diabetes Association's Stop Diabetes movement to confront,fight and,most importantly,change the future ofthis deadly disease. -thDatedThis5 day of November,2015 AndaM.Kavahagh,Mayor ATTEST: fll Bevelyn J.Benajer,Tm/n Clerk tACJvQ Robbie Cole Eagle Scout Project Town of Fountain Hills,Arizona Comprehensive Annual Financial Report For the Fiscal Year Ended June 30,2015 <A Clifton LarsonAllen CliftonLarsonAllen LLP www.CLAconnect.com Town Council and Senior Management Town of Fountain Hills,Arizona Fountain Hills,Arizona In planning and performing our audit of the financial statements of the Town of Fountain Hills,Arizona (Town)as of and for the year ended June 30, 2015, in accordance with auditing standards generally accepted in the United States of America,we considered the Town's internal control over financial reporting (internal control)as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control.Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and,therefore,material weaknesses or significant deficiencies may exist that were not identified.In addition,because of inherent limitations in internal control,including the possibility of management override of controls,misstatements due to fraud or error may occur and not be detected by such controls.However,as discussed below,we identified certain deficiencies in internal control that we consider to be a material weakness and a significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct misstatements on a timely basis.A material weakness is a deficiency,or a combination of deficiencies,in internal control,such that there is a reasonable possibility that a material misstatement of the Town's financial statements will not be prevented,or detected and corrected,on a timely basis. Material Weakness We consider the following deficiency in the Town's internal control to be a material weakness. Grant Revenue During our audit,we noted expenditures incurred during Fiscal 2014-2015 related to a grant through the Maricopa Association of Governments (MAG) in which the Town had not accrued revenue for a reimbursement request that was to be completed subsequent to fiscal year end.We reviewed the related invoices and verified that they should have been requested for reimbursements and as such recommended an adjustment to accrue revenue.The total impact of this entry was $212,953. We recommend the Town review and reconcile all expenditures charged to reimbursable grants to determine whether a year end accrual is necessary.The review and reconciliation should be conducted as part ofthe year-end closing procedures. Management agrees with this recommendation and the proposed adjustment.The Town will review all expenditures that are incurred at or near year-end or invoiced subsequent to year-end to ensure revenues eligible for reimbursement are accrued. MEX-M rf]independent rrerrberof N©aaInternational INTERNATIONAL QUARTERLY FINANCIAL REPORT Three Months Ending September 2015 November 5, 2015 OPERATING FUND (Consists of General Fund, Public Art Fund, Internal Service Fund and Vehicle Replacement Fund) November 5, 2015 2 The Operating Fund is the Town’s main operating fund and is used to fund general government operations including police and fire, parks, Community Center; other funds are restricted for specific purposes. ALL FUNDS REVENUES November 5, 2015 3 Operating 69% HURF 12% Dev Fees 2% Special Revenue 4% Excise Tax 6% Debt Svc GO 10%Capital Projects 0% Revenues by Fund Three Months Ending September 30, 2015 Total OPERATING FUND REVENUES BY SOURCE Through September 30 Fountain Hills local sales tax and State shared revenues accounted for 93% of the Operating Fund. Operating Fund revenues are at 84% of YTD budget. November 5, 2015 4 Local Sales Tax 55% State Income Tax 22% State Sales Tax 16% Other 14% TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2015 OPERATING FUND REVENUE Local Sls Tax $1.6M State Inc Tax $0.7M State Sls Tax $0.5M OPERATING FUND REVENUE Local sales tax revenues are at 90% of YTD budget; State Shared revenues are at 97% of YTD budget – almost all other revenues are slightly higher than projections. November 5, 2015 5 $0.0 $0.3 $0.5 $0.8 $1.0 $1.3 $1.5 $1.8 $2.0 Local Sales Tax State Shared Revenues Permits and Licenses Fines and Fees OtherMillionsTOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30 OPERATING FUND REVENUES FY14-15 FY15-16 FY15-16 BUDGETTOTAL $3.2M STATE SHARED REVENUES State Shared revenues represent 38% of Operating Fund revenue and is distributed to cities/ towns based on population. Income tax is based on two years prior; VLT is now in HURF for pavement management. November 5, 2015 6 $0.0 $0.3 $0.5 $0.8 $1.0 State Income Tax State Sales Tax MillionsTOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30 STATE SHARED REVENUES FY14-15 FY15-16 Budget TOTAL $1.2M November 5, 2015 $1,770,474 = 88.7% OF YTD BUDGET Local Sales tax represents 55% of Operating Fund revenue. Increased 3% over prior year LOCAL SALES TAX – All Funds (excluding construction activity) 7 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15-16 Budget 5 Yr Average TOTAL SALES TAX COLLECTIONS BY YEAR FY11 THROUGH FY16* *excludes construction activity November 5, 2015 $808,920 = Increase of 3.1% over prior year LOCAL SALES TAX - RETAIL 8 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Budget 5 Yr Average Retail Activity July through September FY11 -FY16 millions November 5, 2015 $138,981 = Increase of 7.8% over prior year LOCAL SALES TAX - RESTAURANT 9 $0 $50,000 $100,000 $150,000 $200,000 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Budget 5 Yr Average Restaurant/Bar Activity July through September FY11 -FY16 LOCAL SALES TAX - TELECOM November 5, 2015 $428,975 = Increase of 3.1% over prior year 10 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Budget 5 Yr Average Trans/Telecommunications Activity July through September FY11 -FY16 LOCAL SALES TAX - CONSTRUCTION November 5, 2015 50% of this revenue funds capital projects $190,489 = Decrease of 24.8% from prior year 11 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Budget 5 Yr Average Construction Sales Tax Activity July through September FY11 -FY16 November 5, 2015 Compared to the corresponding period of last fiscal year, Operating Fund expenditures increased by 3% over the same period. 12 MAYOR & COUNCIL 1% ADMINISTRATI ON 18% MUNICIPAL COURT 2%DEVELOPMENT SERVICES 14% COMMUNITY SERVICES 14% FIRE & EMERGENCY MED 25% LAW ENFORCEMENT 26% Operating Fund Expenditures by Department Three Months Ending September 30, 2015 Total $3.5M Department 1st Qtr FY14- 15 Expenditures 1st Qtr FY15- 16 Expenditures Mayor & Council 21,676$ 16,310$ Administration 702,744 637,095 Municipal Court 70,418 66,383 Development Services 361,174 488,950 Community Services 532,656 496,295 Fire & Emergency Medical 831,415 847,952 Law Enforcement 832,551 914,851 TOTAL 3,352,634$ 3,467,836$ OTHER FUNDS November 5, 2015 13 HIGHWAY USER REVENUE FUND HURF revenues are derived from gasoline taxes and distributed based on population; VLT revenues are now included in HURF for pavement maintenance. November 5, 2015 $572,094 = Increase of 6.3% over prior year (including Vehicle License Tax) 14 $284,271 $295,240 $324,066 $336,973 $1,403,324 $205,009 $213,393 $228,164 $888,838 FY12-13 FY13-14 FY14-15 FY15-16 FY15-16 Budget $.0 $.5 $1.0 $1.5 $2.0 $2.5 TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2015 HIGHWAY USER REVENUE FUND REVENUES HIGHWAY USERS TAX VEHICLE LICENSE TAX TOTAL $0.6M HURF EXPENDITURES November 5, 2015 Council priority for FY14-15 was still pavement maintenance. The HURF fund is accumulating money this fiscal year to allow for a project early in FY15-16. 15 ADMINISTRATION 34% LEGAL SERVICES 2% OPEN SPACE 26% PAVEMENT MANAGEMENT 18% STREET SIGNS 6% STREET SWEEPING 0% TRAFFIC SIGNALS 9% VEHICLE MAINTENANCE 7% HURF Expenditures Three Months Ending September 30, 2015 TOTAL $0.2M RESTRICTED FUNDS November 5, 2015 16 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Dev Fees Special Revenue Excise Tax Debt Svc MPC Debt Svc GO Capital Projects 124,588 204,369 277,050 63,682 484,693 (16,104)14,385 (3,843) 265,624 -(25,653) 3,314,456 TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2015 OTHER FUNDS REVENUES & EXPENDITURES Revenues Expenditures FUND BALANCE Fund balance includes Operating Fund reserves that are not available for appropriation; other funds are restricted for specific purposes. Funds are invested only in government securities according to the Town’s adopted investment policy. November 5, 2015 17 Rainy Day Fund ######## General Fund ######## Public Art Fund 5,602 Internal Service Fund (10,555) Vehicle Replacement Fund 457,848 Operating Funds ######### Highway User Revenue Fund (HURF)########1,911,689 Special Revenue Fund 54,643 Court Enhancement Fund 278,517 Environmental Fund 79,378 Cottonwoods Maintenance 12,363 Special Revenue Funds 424,901 Downtown Strategy Fund 964,366 Economic Development Fund 15,258 Tourism Fund 111,854 Excise Tax Funds 1,091,478 General Obligation Debt 785,030 Eagle Mountain CFD Debt 130,401 MPC Debt Service Fund 265,748 Debt Service 1,181,179 Capital Projects Fund ######## Facilities Replacement Fund 170,227 Capital Projects 7,621,153 Law Enforcement 203,484 Fire & Emergency 94,275 Streets - Parks & Recreation 215,294 Open Space ######## Library/Museum - Development Fees 2,178,939 Grand Total ######### Fiscal Quarter-End Fund Balances (Unaudited) September 30, 2015 SUMMARY •Operating Fund revenues and expenditures are trending favorably in the current year •Reserve fund balances remain acceptable for all funds •Operating Fund revenues are 10.3% ($364,661) under budget but 4.4% ($134,226) higher than last fiscal year •Operating Fund expenditures are 1.0% ($36,670) under budget but also 3.4% ($115,202) higher than last fiscal year •Pavement management remains a priority and is funded through HURF and Vehicle License Tax revenues November 5, 2015 18 TOWN OF FOUNTAIN HILLS QUARTERLY BUDGET REPORT THREE MONTHS ENDING SEPTEMBER 30, 2015 2 Where does the money come from and where does it go? Operating 69% HURF 12% Dev Fees 2% Special Revenue 4% Excise Tax 6% Debt Svc GO 10%Capital Projects0% Revenues by Fund Three Months Ending September 30, 2015 Total $4.9M Operating 48% HURF 3% Excise Tax 4% Debt Svc GO 0% Capital Projects 45% Expenditures by Fund Three Months Ending September 30, 2015 Total $7.2M 3 Operating Fund Revenues For the twelve month period ending September 30, 2015, total Operating Fund revenues (General Fund, Public Art Fund, Internal Service Funds) were received at 89.7% of budgeted amounts and $134,226 higher than the same time period last fiscal year (an increase of 4.4%). Categories where revenues are higher than the previous year are the local sales tax (up 2.7%), fines & forfeitures (up 47.8%), investment earnings (up 1386.3%) as well as other revenue (up 436.0%). Total Operating Fund revenues for this fiscal period are $3,183,710. FUND YTD FY14-15 YTD FY15-16 YTD FY15-16 Budget % YTD FY15-16 Budget Operating Funds 3,049,486$ 3,183,710$ 3,548,371$ 89.7% Current Year Revenues - YTD Ending September 30 - All Funds $0.0 $0.3 $0.5 $0.8 $1.0 $1.3 $1.5 $1.8 $2.0 Local Sales Tax State Income Tax State Sales TaxMillionsTOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2015 MAJOR REVENUE SOURCES FY14-15 FY15-16 Budget TOTAL $2.8 The three major revenues in the chart above represent 88.8% of Operating Fund revenues, and, as such, provide key indicators of the Town’s overall economic condition and performance. Local sales tax collections have increased back to FY09 levels (2.7% over the same period last year). This total includes construction activity of which 50% is transferred to the Capital Projects Fund. State sales tax is 5.2% higher and State income taxes are 0.5% lower than last year. Overall, these major revenue sources are at 90.5% of the YTD budget for the fiscal year. 4 State Shared Revenues State Shared Revenues include a distribution of the State income and sales taxes returned to the Town based on its population in relation to the total population of all incorporated cities and towns. The income tax funds are distributed from tax collections from two years prior to the fiscal year in which the Town receives the funds. Sales taxes are distributed to cities and towns three months after the actual sales activity occurs. These revenues are distributed monthly through a distribution from the State Treasurer’s Office. The revenues from these categories total $1,182,487 which is $21,276 or 1.8% higher than the same time period last year – the increase in revenue was anticipated based on projections by the Arizona League of Cities and Towns. YTD FY14-15 YTD FY15-16 YTD FY15-16 Budget % YTD FY15-16 Budget Local Sales Tax 1,601,285$ 1,645,165$ 1,829,342$ 89.9% State Sales Tax 480,603 505,569 537,111 94.1% State Income Tax 680,608 676,918 676,918 100.0% Operating Funds Revenue Report - YTD Ending September 30 Local Sales Tax (2.6%) – All Funds The fiscal year to date revenue for this category totals $1,960,963 (including all funds), which is 90.7% of projections. Compared to the same time period as last year, the total revenues are 0.6% higher. Wholesale/Retail: A retail sales tax of 2.6% is collected for the sale of all tangible personal property including grocery, clothing, home and garden, autos and other related retail activity. This revenue source is sensitive to changes in the economy and can fluctuate from one fiscal year to another. The revenues for this category total $808,920 which is 79.5% of projections; compared to last fiscal year, revenues increased by 3.1%. Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. The revenues for this category total $138,981, which is 77.5% of projections; compared to last fiscal year, revenues are up by 7.8% and higher than any other previous year. Communications/Utilities/Transportation: Utilities, such as Chaparral City Water, cellular telephone companies and Century Link, are taxed at a rate of 2.6% in the Town as well as cellular phone charges. The revenues for this category total $428,975, which is 119.1% of what was anticipated; compared to last fiscal year, revenues are up by 3.1%. Construction Contracting: This revenue is generated from the 2.6% tax on new home and business construction as well as improvements to real property. Like retail sales tax, this revenue 5 source is considered to be volatile as it is strongly impacted by changes in the economy. The largest sources of revenues in this category come from residential homebuilders. The revenues for this category total $190,489, which is 114.7% of what was budgeted; compared to last fiscal year, revenues are down 24.8%. The Council has dedicated 50% of this revenue to the Capital Projects Fund for future appropriation. YTD FY14-15 YTD FY15-16 YTD FY15-16 Budget % YTD FY15-16 Budget Local Sales Tax 1,601,285$ 1,645,165$ 1,829,342$ 89.9% Operating Funds Revenue Report - YTD Ending September 30 Construction Transp/Utilities/Comm Wholesale/Retail Restaurants/Bars Ins/Real Estate Services Other $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 Local Sales Tax Collections by Type (in millions) July -September FY11 through FY16 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Local sales tax makes up 51.7% of Operating Fund revenues; for the period ending September 30, 2015, collections were $2.0M for all funds ($1.6M in the Operating Fund). Retail and restaurant/bar activities represent 48.4% of total collections; telecommunications and utilities represent another 21.9%. Construction revenues collected this fiscal period total $190,489, which is a 24.8% decrease from last fiscal year. Retail sales tax collections increased 3.1% over the same period last year; restaurant/bar collections are up 7.8% from the same period last year. 6 Building Permit Revenue Revenues in this category include both commercial and residential permitting activity with the majority of revenues coming from residential activity. This fiscal period, revenues for this category total $27,711 or 43.0% of the YTD budget. New housing permits issued for the fiscal period are 10 single family, 1 multi-family and no commercial. FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Building Permit Fees $35,248 $27,711 43.0% $257,755 Court Revenue This category summarizes several revenue funds collected by the court. The court generates various revenues through fines, sanctions and court orders. These fines include criminal, civil, Town code violations and diversion fees for defensive driving school attendees. Reimbursement fees for required background checks, incarceration costs, and Public Defender costs are also collected by the court and included in this category. This fiscal period, revenues for this category total $43,179 which is $13,958 (47.8%) more than last year’s same fiscal period and 117.5% of the YTD budget amount. FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Court Fines & Fees $29,221 $43,179 117.5% $147,011 License Revenue Revenues in this category include both business and animal licensing activity with the majority of revenues coming from business licenses. Current fiscal revenues for these two categories total $35,473 or 93.7% of the fiscal period budget. FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Business License Fees $22,683 $25,995 94.9% $109,575 Animal License Fees 10,007 9,478 90.6% 41,932 7 Operating Fund Expenditures The Operating Fund accounts for most of the day to day operations of the Town, including Police, Fire and Emergency Medical Services, Development Services, Community Services, Municipal Court, Town Council and Administration functions. At the end of the period, 99.0% of the annual budget has been expended. FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Wages and Benefits 729,967$ 702,935$ 86.7%3,241,546$ Supplies and Services 207,549 148,775 112.4%529,449 Contractual Services 2,030,608 2,155,178 101.7%8,473,814 Maintenance/Utilities 256,610 201,386 76.2%1,056,985 Capital Expenditures 23,586 11,028 96.4%45,775 Internal Transfers/Contingency 104,315 248,534 148.3%670,452 TOTAL 3,352,635$ 3,467,836$ 99.0%14,018,021$ Expenditures by Category - YTD Ending September 30 • Wages and benefits represent one fifth (20.3%) of the total Operating Fund budget and accounts for all staff with the exception of streets’ employees who are funded through a separate Highway User Revenue Fund (HURF). • Supplies and Services represents 4.3% of the total Operating Fund budget and includes items such as dues and memberships, education and training, office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid expending more than revenues received. • Contractual services represent 62.1% of the Operating Fund budget and include contracts for law enforcement (Maricopa County Sheriff’s Office) and fire and emergency medical services (Rural Metro). The Town utilizes contracts for specialized or one-time services that do not require the addition of full time staff. • Maintenance/Utilities represent 5.8% of the Operating Fund budget and include facility maintenance and utilities. • Capital Expenditures are only 0.3% of the Operating Fund and include those purchases of small items that do not meet the Town’s capitalization threshold. • Internal Transfers/Contingency (7.2%) includes transfers that are made at the end of the fiscal year from the Operating Fund (Community Center) to the Debt Service Fund for the annual bond repayment due in September as well as charges to the Operating Fund budget by department and transfers to provide monies for future scheduled replacement of vehicles and equipment. Also includes contingency funding. 8 Department summary FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Mayor & Council $ 21,676 $ 16,310 81.5% $ 80,084 Administration 702,744 637,095 106.4% 2,395,765 Municipal Court 70,418 66,383 95.8% 277,107 Development Services 361,174 488,950 108.4% 1,803,724 Community Services 532,656 496,295 87.2% 2,275,574 Fire & Emergency Medical Services 831,415 847,952 96.9% 3,501,797 Law Enforcement 832,551 914,851 99.3% 3,683,970 TOTAL 3,352,634$ 3,467,836$ 99.0%14,018,021$ Expenditures by Department - YTD Ending September 30 • The Mayor & Council and Municipal Court budgets represent a total 0.5% of the Operating Fund expenditures. • Administration includes the Town Clerk, Town Manager, Finance, Human Resources, Volunteer Program, Economic Development, Information Technology and Customer Service and represents 18.4% of the Operating Fund budget. The Department is responsible for business recruitment and retention, Town Manager activities, all licensing activity (business, animal, and liquor), customer service, audits, public meetings, Channel 11, Town website, elections, Town Attorney, Town Prosecutor, budget and financial reporting, etc. • Development Services (14.1% of Operating Fund expenditures) includes programs such as public works, engineering, traffic and capital projects, open space maintenance, stormwater management, and facilities maintenance. Divisions included in Development Services are Planning, Zoning, Code Enforcement, Environmental, Facilities Maintenance, Building Safety, and Mapping & Graphics. • Community Services (14.3% of Operating Fund expenditures) includes the Town’s park system (Fountain Park, Golden Eagle Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for Seniors. This department includes the cost of the annual debt service payment that is transferred to the Debt Service Fund each year to cover the semi- annual payments in December and September. • Fire & Emergency Medical Services represents 24.5% of the Operating Fund budget and includes the contract with Rural Metro for fire and emergency medical services; the budget also includes expenditures for maintenance of the fleet which is Town owned, fire stations and equipment. • Law Enforcement represents 26.4% of the Operating Fund budget and includes the contract with Maricopa County Sheriff’s Office as well as costs for jail incarceration fees, which are costs for holding individuals at the jails and billed by Maricopa County. The Town also has a contract with Maricopa County for animal control and shelter services that is included within the Law Enforcement budget. 9 MAYOR & COUNCIL 1% ADMINISTRATION 18% MUNICIPAL COURT 2% DEVELOPMENT SERVICES 14% COMMUNITY SERVICES 14% FIRE & EMERGENCY MED 25% LAW ENFORCEMENT 26% Operating Fund Expenditures by Department Three Months Ending September 30, 2015 Total $3.5M 10 Other Funds: • Highway User Revenue Fund (Streets) • Excise Tax (Downtown Strategy, Economic Development and Tourism) • Special Revenue (Grants) • Capital Projects • Development Fees 11 Highway User Revenue Fund (HURF) – Streets YTD FY14-15 YTD FY15-16 % YTD FY15-16 Budget FY15-16 Budget State Shared Revenues 537,459$ 565,137$ 98.6%2,292,162$ In Lieu Fees 800 5,640 188.0%12,000 Transfers - - 0.0%- Miscellaneous & Other (132) 1,317 83.6%6,300 Grand Total HURF 538,127$ 572,094$ 99.0%2,310,462$ HURF Revenues by Program - YTD Ending September 30 This fund supports most of the Town’s street and traffic operations and is managed by the Development Services Department. Revenues were received more than budgeted. The fund is primarily supported by the State Highway User Revenue Fund (58.9%), Vehicle License Taxes (39.9%) and from payments for construction in the rights of way (in lieu payments). HURF revenues are distributed partially on a population formula and partially on the county of origin for gasoline sales. There is a State constitutional restriction that these funds be used solely for street and highway purposes. The Town bills contractors when they make cuts in the Town’s rights of way and has recovered $5,640 in lieu fees. Restitution fees are recovered from damage to Town property as a result of vehicle accidents and included in miscellaneous & other. YTD FY14-15 YTD FY15-16 % YTD FY15-16 Budget FY15-16 Budget Administration 57,377$ 70,743$ 128.1%220,860$ Adopt A Street 720 736 69.6%4,227 Legal Services 8,296 4,665 58.1%32,136 Open Space 55,006 50,457 57.6%350,309 Pavement Maintenance 51,659 38,639 8.8%1,761,276 Street Signs 16,181 12,434 55.3%90,003 Street Sweeping 22,338 - 0.0%- Traffic Signals 34,332 19,063 27.4%278,145 Vehicle Maintenance 16,391 14,629 55.2%106,070 Grand Total HURF 262,300$ 211,366$ 29.7%2,843,026$ HURF Expenditures by Program - YTD Ending September 30 12 • The Administration program for the Streets division includes activities that are not directly related to a program (for example, insurance, fuel, utilities, etc.). • Adopt A Street includes expenses incurred to support the program by the same name. • Legal Services represent an allocation of the Town Attorney’s fees. • Open Space program includes maintenance of the medians; the largest component of this category is the contract for landscaping and water usage. • Pavement Maintenance program includes personnel costs related to road repair and maintenance, such as pot holes and curb replacement. A major expenditure for pavement maintenance has been deferred until the next fiscal year to allow funds to accumulate. • Street Signs program includes personnel and maintenance costs for the Town’s 8,500 street signs. • Street Sweeping program’s major expenditure is the contract costs for street sweeping. Arterial streets are swept every three weeks and residential streets every eight weeks. • Traffic Signals program includes personnel and electric costs for the Town’s 13 Traffic signals. Costs include hardware and programs for maintenance and synchronization of the signals. • Vehicle Maintenance program includes personnel as well as costs to maintain the Town’s fleet of 40 vehicles and heavy equipment. 13 Excise Tax - All Funds (Downtown Strategy, Economic Development, Tourism) YTD FY14-15 YTD FY15-16 % YTD FY15-16 Budget FY15-16 Budget Revenues 268,634$ 277,050$ 197.5%561,000$ Grand Total Excise Tax Funds 268,634$ 277,050$ 197.5%561,000$ Excise Tax Revenues - All Funds - YTD Ending September 30 These funds are separate operating funds from the Town’s Operating Fund and they support the Town’s downtown strategy, economic development including business retention program, and tourism. Beginning in FY14-15, the Excise Tax Fund was separated into two separate functions supported by a portion of the local sales (excise) tax (.1% of the 2.6%). Downtown Strategy focus is for infrastructure improvements and development; Economic Development focus is dedicated to Town-wide economic development and the Economic Development Plan implementation. The Economic Development Fund also provides the funding for the Tourism Fund. YTD FY14-15 YTD FY15-16 % YTD FY15-16 Budget FY15-16 Budget Wages and Benefits 21,014$ 38,061$ 90.0%169,218$ Supplies and Services 4,138 15,337 170.1%36,076 Contractual Services 36,305 67,205 153.6%175,055 Maintenance/Utilities 247 5,284 41.4%51,050 Internal Transfers 836,871 139,737 90.5%617,826 Grand Total all Categories 898,575$ 265,624$ 101.3%1,049,225$ Excise Tax Funds Expenditures by Category - YTD Ending September 30 • Wages and benefits, which represent 14.3% of the total Excise Tax operating budget, replaced contractual services after the hiring of the Town’s Economic Development Specialist and Tourism Coordinator. • Supplies and Services represents 5.8% of the total Excise Tax budget and includes items such as office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid expending more than revenues received. • Contractual services represent 25.3% of the budget and include contracts for downtown holiday lighting, Greater Phoenix Economic Council (GPEC), and planned professional services for marketing strategies. • Maintenance/Utilities (2.0%) include sign repair and replacement in addition to telecommunication charges. • Internal Transfers (52.6) reflect the transfer of funds to the Tourism Fund. 14 Development Fees These fees are placed into restricted funds with revenues paid by developers at the time of new residential and commercial construction permits. The decrease in permit activity over the same time period as last year is related to the development fee study that implemented new fees as of August 1, 2014. The study was presented to the public at a Public Hearing in February, 2014 and resulted in the elimination of several categories of fees and changes in the remaining categories. During this fiscal year, there have been eleven (11) permit applications including development fees. FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Law Enforcement 698$ -$ 0.0%-$ Fire/Emergency 3,537 23,147 174.2%26,580 Streets 33,734 - 0.0%- Parks/Rec 17,912 14,330 36.7%78,060 Open Space 596 5,396 179.9%6,000 Library/Museum 480 - 0.0%- General Government - - 0.0%- Grand Total All Funds 56,957$ 42,873$ 77.5%110,640$ FY15-16 Revenues by Category - YTD Ending September 30 - Development Fees FY15-16 Expenditures by Category - YTD Ending September 30 - Development Fees FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Law Enforcement $ - $ - 0.0% $ 203,484 Fire/Emergency - - 0.0% 67,202 Streets - - 0.0% - Parks/Rec - - 0.0% - Open Space 134 135 50.5% 535 Library/Museum - - 0.0% - Grand Total All Funds $ 134 $ 135 0.1% $ 271,221 15 FY14-15 Actual FY15-16 Actual % YTD FY15-16 Budget FY15-16 Budget Law Enforcement -$ -$ 0.0%203,484$ Fire/Emergency - - 0.0%67,202 Streets - - 0.0%- Parks/Rec - - 0.0%- Open Space 134 135 50.5%535 Library/Museum - - 0.0%- Grand Total All Funds 134$ 135$ 0.1%271,221$ FY15-16 Expenditures by Category - YTD Ending September 30 - Development Fees 16 Capital Projects Fund Capital projects are funded with accumulated reserves that were surplus revenues in the Operating Fund in addition to 50% of sales tax revenues that are derived from construction activity. Some projects are funded with proceeds from grants or developers; the table below is a summary of revenues for the fiscal year ending September 30, 2015. YTD FY15-16 Actual % FY15-16 Budget FY15-16 Budget Construction Sales Tax 95,245$ 28.7%332,035$ Developer Fee - 0.0%- Bond Proceeds - 0.0%- Grants (212,953) (11.9%)1,790,000 Misc.78,876 51.2%154,082 Interest Income 21,752 181.3%12,000 Transfers In 81,715 9.9%827,401 Grand Total CIP Fund 64,635$ 2.1%3,115,518$ FY15-16 Capital Projects Fund Revenues - YTD Ending September 30 17 The table below summarizes the projects that were included in the current year budget including the original budgeted expenditure, the year to date expenditures and the percentage of fiscal year expenditures to date. Some of the projects have not started yet and therefore have no expenditures. YTD FY15-16 Actual % FY15-16 Budget FY15-16 Budget -$ 0.0%2,145,000$ - 0.0%50,000 - 0.0%200,000 - 0.0%3,650,000 239,826 26.4%910,000 - 0.0%200,000 - 0.0%20,000 85,713 8.6%1,000,000 2,781,354 55.6%5,000,000 - 0.0%500,000 - 0.0%65,000 207,050 54.5%380,000 14,761 5.4%272,885 3,328,704$ 23.1%14,392,885$ Grand Total Capital Projects CONTINGENCY P3022 FOUNTAIN LAKE WATER QUAL P3025 ADERO CANYON TRAILHEAD E8502 DOWNTOWN VISION PLAN-PHA P3011 FOUNTAIN PARK, PHASE VI S6057 MCDOWELL MOUNTAIN ROAD R T5011 TS-PALISADES & SAGUARO D6030 DRAINAGE-ASHBROOK WASH C D6047 MISC DRAINAGE IMPROVEMEN F4005 FIRE STATION 2 RELOCATIO FY15-16 Expenditures by Category - YTD Ending September 30 - Capital Projects S6005 SHEA BLVD WIDENING S6010 SAGUARO BLVD RECONSTRUCT S6053 FOUNTAIN HILLS BLVD SHOU 18 Fund Balances/Reserves The Town maintains several funds, some of which are restricted for specific purposes; the Operating Fund is the Town’s main operating fund and has sufficient reserves that satisfy the Town’s fund balance policy. Development fees are restricted for projects that are related to growth and the Economic Development/Downtown Strategy Funds are designated for downtown development. Rainy Day Fund 2,624,843$ General Fund 5,571,220 Public Art Fund 5,602 Internal Service Fund (10,555) Vehicle Replacement Fund 457,848 Operating Funds 8,648,958$ Highway User Revenue Fund (HURF)1,911,689 1,911,689 Special Revenue Fund 54,643 Court Enhancement Fund 278,517 Environmental Fund 79,378 Cottonwoods Maintenance District Fund 12,363 Special Revenue Funds 424,901 Downtown Strategy Fund 964,366 Economic Development Fund 15,258 Tourism Fund 111,854 Excise Tax Funds 1,091,478 General Obligation Debt Service Fund 785,030 Eagle Mountain CFD Debt Service Fund 130,401 MPC Debt Service Fund 265,748 Debt Service 1,181,179 Capital Projects Fund 7,450,926 Facilities Replacement Fund 170,227 Capital Projects 7,621,153 Law Enforcement 203,484 Fire & Emergency 94,275 Streets - Parks & Recreation 215,294 Open Space 1,665,886 Library/Museum - Development Fees 2,178,939 Grand Total 23,058,297$ Fiscal Quarter-End Fund Balances (Unaudited)September 30, 2015 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Administration Staff Contact Information:Bevelyn J.Bender,Town Clerk;480-816-5115;bbender@fh.az.gov Council Goal: Strategic Values:Civic Responsibility C3 Solicit feedback in decision-making REQUEST TO COUNCIL (Agenda language):CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from October 13,2015. Applicant:NA Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:A.R.S.§38-431.01 Staff Summary (background):The intent of approving previous meeting minutes is to ensure an accurate account of the discussion and action that took place at that meeting for archival purposes.Approved minutes are placed on the Town's website in compliance with state law. Risk Analysis (options or alternatives with implications): Fiscal Impact (initial and ongoing costs;budget status): Budget Reference (page number): Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s): Staff Recommendation(s):Approve List Attachment(s):None SUGGESTED MOTION (for Council use):Move to approve the consent agenda as listed Prepared by:Approved: Bevelyn Bender,Town Clerk 10/26/2015 GradyE.MilleKTbviNo Manager 10/27/2015 Page 1 of 1 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Administration Staff Contact Information:Sonia Kukkola/Financial Services Technician (480)-816-5136 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):Consideration of a LIQUOR LICENSE APPLICATION FOR ACQUISITION OF CONTROL AND AGENT CHANGE submitted by Gwendolyn J.Wallace,Owner/Agent ofCowboy Spirits LLC DBA Saddle Bronc Grill,located at 11056 N Saguaro Blvd Fountain Hills,AZ. Applicant:Gwendolyn J.Wallace Applicant Contact Information:480-816-5900 Owner:Gwendolyn J.Wallace Owner Contact Information:480-816-5900 Property Location:11056 N Saguaro Blvd Fountain Hills, AZ Related Ordinance,Policy or Guiding Principle:A.R.S.§4-201;4-202;4-203 &4-205 and R19-1-102 and R19-1-311. Staff Summary (background):CONSIDERATION of approving a LIQUOR LICENSE APPLICATION FOR ACQUISITION OF CONTROL AND AGENT CHANGE submitted by Gwendolyn J.Wallace,Owner/Agent of Cowboy Spirits LLC DBA Saddle Bronc Grill,located at 11056 N Saguaro Blvd Fountain Hills, AZ. Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):N/A List Attachment(s):Front page of the application and staffs'recommendation SUGGESTED MOTION (for Council use): Move to approve the LIQUOR LICENSE APPLICATION FOR ACQUISITION OF CONTROL AND AGENT CHANGE submitted by Gwendolyn J.Wallace,Owner/Agent of Cowboy Spirits LLC DBA Saddle Bronc Grill,located at 11056 N Saauaro Blvd Fountain Hills.AZ. Page 1 of 2 redact TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Administration Staff Contact Information:Sonia Kukkola/Financial Services Technician (480)-816-5136 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):Consideration of a LIQUOR LICENSE APPLICATION submitted by Merita Kraya, Owner/Agent of Euro Pizza Cafe Inc, located at 12645 N Saguaro Blvd#l 1 Fountain Hills, AZ. This is for a series 7 (Beer &Wine Bar). Applicant:Merita Kraya Applicant Contact Information:480-836-0208 Owner:Merita Kraya Owner Contact Information:480-836-0208 Property Location:12645 N Saguaro Blvd#11 Fountain Hills,AZ Related Ordinance,Policy or Guiding Principle:A.R.S.§4-201;4-202;4-203 &4-205 and R19-1-102 and R19-1-311. Staff Summary (background):CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by,Merita Kraya Owner/Agentof Euro Pizza Cafe Inc,located at 12645 N Saguaro Blvd #11 Fountain Hills, AZ.This is for a series Series #7 (Beer &Wine Bar). Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s):N/A Staff Recommendation(s):N/A List Attachment(s):Front page of the application and staffs'recommendation SUGGESTED MOTION (for Council use):Move to approve the LIQUOR LICENSE APPLICATION submitted by Merita Kraya,Owner/Agent of Euro Pizza Cafe Inc,located at 12645 N Saguaro Blvd #11 Fountain Hills,AZ. Page 1 of 2 redact TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Development Services Staff Contact Information:Randy Harrel,PE,SE,RLS,CFM;480-816-5112,rharrel@fh.az.gov Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language):CONSIDERATION ofa Contract with Salt River Project for the Ashbrook Wash Relocations (SRP Work Order #T2015861 (Construction Services Contract (FCDMC))),having a cost of $114,751.95. Applicant:N/A Applicant Contact Information:N/A Owner:N/A Owner Contact Information:N/A Property Location:Saguaro Blvd.and Bayfield Drive,both at Ashbrook Wash Related Ordinance,Policy or Guiding Principle:N/A Staff Summary (background):On June 18,2015,the Town Council approved a "Design Services Contract" with Salt River Project for the above project.The "Conceptual Cost Estimate"for SRP's design plus construction work in that project was estimated at $115,000.SRP has now provided the "Construction Services Contract"for that project,for the Town Council's consideration and the Town's signature,with the cost given for the work of $114,754.95 (slightly lower than the original conceptual cost estimate). Background:The Flood Control District of Maricopa County (together with the Town)designed and bid the Ashbrook Wash Channelization Improvements project - Bayfield to Del Cambre (CIP Project D6030).CS Construction was the low bidder for that project,and is currently in the process of commencing its construction. The FCD project will primarily construct new, very large concrete box culverts crossing Ashbrook Wash at Saguaro Blvd.and at Bayfield Drive. A number of SRP conduits need to be relocated under those box culverts during that project's construction. This "Construction Services Contract"will authorize SRP to construct these SRP relocations.The conduit for these SRP relocations will actually be constructed by the Ashbrook Wash project's construction contractor (using SRP's design plans),with SRP's crews then pullingthe wiring and setting/connecting the electrical boxes.This "Construction Services Contract"authorizes the actual SRP construction of these SRP relocations (and the cost includes the design cost). Funding for these SRP relocations (as well as for the trenching and conduit work being done as a part of MCFCD's Ashbrook Wash construction project) is currently contained within CIP project D6030,in the Town's budget. Risk Analysis (options or alternatives with implications):N/A Page 1 of 2 Page 1 of 3 CUSTOMER IMPROVEMENTSXCT 341 P.O. Box 52025 Phoenix, AZ 85072-2025 SRP Contact:Contact Phone: Contact Fax: Date: Kirk Gyllenskog (602) 236-4145 Paul Mood Town of Fountain Hills 16705 E Avenue of the Fountains Phoenix, AZ 85268 Job Name: Location: SRP Job #: SRP Work Order #: CUS UE ASHBROOK WASH RELO Saguaro Blvd & Bayfield Dr T2015861 Description Amount Survey CIAC fee:Customer 10/27/2015 $114,754.95 ATTN: This Contract includes the attached Terms and Conditions, and describes the general obligations of SRP and the Customer. Any changes, amendments or modifications to this Contract shall be in writing and shall be signed by both parties. In consideration of the work to be performed by SRP, Customer shall pay SRP the following non-refundable fees: SRP shall not be required to perform inspections or begin any construction or installation work on the Project until Customer (i) signs and returns this Contract, (ii) accepts the completed design drawings by signing them, (iii) pays SRP the fees set forth above, (iv) provides SRP the approved City permit(s) and (v) provides to SRP a copy of a deed or deeds evidencing ownership of all of the real property that is encompassed within or will be affected by the Project or other written documentation acceptable to SRP that establishes Customer’s authority in connection with the Project. If Customer is unable to provide such documentation, and as a result SRP is required to modify its designs for the Project, Customer shall be responsible for paying additional costs of the redesign work. If Customer changes the Project, or if there is any change to the information regarding the Project provided by Customer and relied upon by SRP, SRP will charge Customer and Customer shall pay for any additional costs incurred by SRP, including but not limited to redesign and engineering costs. The Salt River Project Agricultural Improvement and Power District, an agricultural improvement district organized and existing under the laws of the State of Arizona (SRP), and Town of Fountain Hills (Customer) enter into this contract (Contract) for the construction of electrical facilities for the following Customer project (Project): Customer acknowledges that it previously entered into a design services contract with SRP for the Project. Customer now desires SRP to proceed with construction of the Project in accordance with the design drawings delivered by SRP pursuant to the design services contract. Invoice Due Date: 01/20/2016 Trench, Conduit Customer Ashbrook Wash Improvements SRP to lower existing facilities as necessary under Bayfield Dr and Saguaro Blvd to support the construction of box culverts on Ashbrook Wash for the Town of Fountain Hills and the Flood District of Maricopa County. SRP will remove & install 1800' of 3-750MCM feeder wire, 800' of 1-#2 primary wire, along with associated terminations and splices. No equipment will be relocated or replaced. Trench and conduit to be installed by customer. Agreement #: Construction Services Contract (FCDMC) SRP’s delivery of this Contract to Customer constitutes an offer to perform the construction services on the terms and conditions set forth in this Contract. Customer may accept this offer by signing this Contract (with no additions, deletions or modifications) and returning it to SRP. This offer shall expire if Customer has not signed and returned this Contract to SRP within 120 day of the date first set forth above. Scope: REV DATE: 11-02-09 Page 2 of 3 Construction Services Contract (FCDMC) (Continued) Customer's Legal Business Signature: Printed Name: SRP Authorized Signature: Printed Name: Title: Date: Phone: Ryan Earwood Customer understands and agrees to the terms and conditions of this Contract. The undersigned represents and warrants that he or she has the authority to enter into this Contract on behalf of Customer. Company Name: Address:Phone: Date: REV DATE: 11-02-09 Page 3 of 3 1. 2. 3. 4. 5. 6. 7. 8. The existing applicable SRP Rules and Regulations, and all terms and conditions therein are adopted and incorporated herein by reference as part of this contract except as specifically modified herein. The Rules and Regulations can be found at http://www.srpnet.com and are on file at the principal offices of SRP. SRP shall construct all electric facilities, in accordance with the SRP Rules and Regulations and SRP construction specifications and practices. CUSTOMER shall provide SRP all drawings and data requested by SRP that are pertinent to the design of CUSTOMER Project. SRP shall review such drawings and data for compatibility with SRP facilities. CUSTOMER shall provide SRP all requested rights –of-way for the relocated electric facilities. CUSTOMER, at all times, shall permit SRP to access and maintain any SRP electric facility on CUSTOMER lands CUSTOMER, upon demand, shall reimburse SRP for the costs of relocation of facilities found to be installed at the wrong location or grade due to CUSTOMER request changes in property lines, easement grade, and/or errors in staking or trenching. Unless otherwise provided in this agreement, the liabilities of CUSTOMER and SRP shall be in accordance with the applicable laws of the State of Arizona as amended from time to time. CUSTOMER shall release SRP from any loss, damage, liability, cost, or expense incurred by CUSTOMER arising out of any delay by SRP in performing, completing, or inspecting any work. The title to all work performed by SRP shall remain with SRP at all times. CUSTOMER shall be billed no more than once per month for actual costs incurred by SRP for the subject facilities. Payments are due within 60 days of the invoice date. CUSTOMER hereby recognizes and acknowledges SRP’s EASEMENT RIGHTS in connection with the existing facilities and the RELOCATED FACILITIES. By acknowledging SRP’S EASEMENT RIGHTS, CUSTOMER agrees that if SRP is required by CUSTOMER at any time to move RELOCATED FACILITIES, CUSTOMER shall reimburse SRP for costs associated with moving the RELOCATED FACILITIES and acquiring any necessary rights to land. Terms and Conditions REV DATE: 11-02-09 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type: RegularSession Agenda Type: Regular Submitting Department:Administration Staff Contact Information:Grady E.Miller,Town Manager Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUESTTO COUNCIL (Agenda Language):CONSIDERATION of approving a SETTLEMENT OFFER relating to a tax enforcement action. Applicant:N/A Applicant Contact Information:N/A Owner:N/A Owner Contact Information:N/A Property Location:N/A Related Ordinance,Policy or Guiding Principle:N/A Staff Summary (background): For the past several months, the Town Attorney has been negotiating with attorneys representing a taxpayer whose company owes the Town of Fountain Hills several thousands of dollars in construction sales tax.The town has a tentative agreement that will be discussed with the Town Council in executive session on November 5 prior to the Town Council taking possible action on a settlement offer relating to the tax enforcement action. Risk Analysis (options or alternatives with implications):N/A Fiscal Impact (initial and ongoing costs;budget status):N/A Budget Reference (page number):N/A Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s):NA Staff Recommendation(s):That the Town Council consider taking action accepting the settlement offer. List Attachment(s): Page 1 of 2 RESOLUTION NO.2014-36 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,ADOPTING THE TOWN OF FOUNTAIN HILLS MUNICIPAL SPONSORSHIP AND NAMING RIGHTS POLICY, AMENDED AND RESTATED AUGUST 7,2014. WHEREAS,the Mayor and Council of the Town of Fountain Hills (the "Town Council")has determined that it is in the best interests of the citizens of Fountain Hills to establish a formal procedure and criteria for the receipt or solicitation of, selection of, and agreements with persons or entities for municipal sponsorships,co-sponsorships,sole sponsorships and marketing arrangements (including facility naming rights); and WHEREAS,the Town Council approved Resolution No. 2013-16 on August 15, 2013, adopting the Town of Fountain Hills Municipal Sponsorship and Naming Rights Policy (the "Existing Naming Policy");and '• ' - WHEREAS,the Town Council desires to amend and restate the Existing Naming Policy to amend the procedures for municipal sponsorships. NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Town of Fountain Hills Municipal Sponsorship and Naming Rights Policy,Amended and Restated August 7, 2014, is hereby adopted in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 3.If any section,subsection,sentence,clause,phrase or portion of this Resolution or any part of the policy adopted herein by reference is for any reason to be held invalid or unconstitutional by the decision of any court of competent jurisdiction,such decision shall not affect the validity ofthe remaining portions thereof. SECTION 4. The Mayor, the Town Manager,the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps and execute all documents necessary to carry out the purpose and intent ofthis Resolution. [SIGNATURES ON FOLLOWING PAGE] 2191429.1 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona,August 7,2014. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: U//^mQ,g/^^dc^- Bevelyn J.Bfihder/Town Clerk REVIEWED BY:APPROVED AS TO FORM: Kenneth W.Buchanan,Town Manager Andrew J.McGuire,Town Attorney 2191429.1 EXHIBIT A TO RESOLUTION NO.2014-36 [Municipal Sponsorship and Naming Rights Policy,Amended and Restated August 7,2014] See following pages. 2191429.1 TOWN OF FOUNTAIN HILLS MUNICIPAL SPONSORSHIP AND NAMING RIGHTS POLICY Amended and Restated August 7, 2014 1.Purpose.To establish for the Town of Fountain Hills,Arizona (the "Town") a formal procedure and criteria for the receipt orsolicitation of,selection of,and agreements with, persons or entities for Municipal Sponsorships,Co-Sponsorships,Sole Sponsorships and Marketing Arrangements,(including Facility Naming Rights),the following Municipal Sponsorships and Naming Rights Policy (this "Policy")is hereby adopted by the Mayor and Council of the Town (the "Town Council").This Policy is intended toset forth the process for the Town to participate in Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship and Marketing Arrangement programs to give valuable support to important Town programs, facilities and services for public benefit by (i)providing funding for Town events from private businesses and (ii) allowingtheTown to partner with activities provided by outside entities.In doing so, the Town must ensure its actions are consistent and appropriate to the Town's vision, mission and values.This Policy is not intended to apply to Bequests or Donations (each as defined below). This Policy shall: A.Establish Procedures.Establish consistent procedures and practices for receipt or solicitation of Municipal Sponsorships (as defined below),Co-Sponsorships (as defined below), Sole Sponsorships (as defined below)and Marketing Arrangements (as defined below)by Town staff. B.Encourage Sponsorships.Encourage solicitation of Municipal Sponsorship opportunities such as Facility Naming Rights,Sole Sponsorships,Co-Sponsorships, Marketing Arrangements and similar agreements that generate revenue (financial or in-kind) in support of existing and new Town facilities, projects, programsor services. C.Encourage Partnerships.Develop public/private alliances to provide programs,events,venues and services within the Town. D. Encourage Staff Innovation. Empower Town departments to seek Municipal Sponsorship, Co-Sponsorship, Sole Sponsorship and Marketing Arrangement opportunities to provide funds for programs,events, venues or services they might not otherwise be able to provide to Town residents and visitors. E. Safeguard Town Interests and Goals. Ensure that Municipal Sponsorship, Co-Sponsorship, Sole Sponsorship and Marketing Arrangement activities (1) safeguard the Town's assets and interests, (2) support the Town's goals of service to the community and (3) remain responsive to the public's needs and values. F.Establish Naming Framework.Provide a framework within which requests to name public facilities are considered and evaluated. 2189798.3 2.Scope.This Policy shall govern all Town departments regarding the solicitation of,and the unsolicited offers/requests from third parties related to,Municipal Sponsorships, Co-Sponsorships,Sole Sponsorships and Marketing Arrangements for Town programs,projects, events,venues,facilities and services.Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship and Marketing Arrangement solicitations shall be in furtherance of the Town's needs and conducted in accordance with the provisions in this Policy.All Town staffresponsible for,or otherwise involved in,Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship and Marketing Arrangement activities on behalf of the Town or their respective departments shall adhere to the policies, procedures and guidelines set forth herein. A.Third Party Solicitation.Subject to the conditions of this Policy,Town staff may solicit or respond to solicitations from third parties for such Municipal Sponsorships, Co-Sponsorships,Sole Sponsorships or Marketing Arrangements fortheTown. B.Fair Compensation.At all times,recognition for Municipal Sponsorships or Marketing Arrangements must be evaluated to ensure the Town is receiving fair and competitive compensation and that such recognition is consistent with the scale ofeach Sponsor or Marketing Arrangement's contribution. C Outside the Scope of this Policy.This Policy shall not apply to: (1)Funding obtained through formal grant programs or through intergovernmental agreements with otherpolitical subdivisions ofthe State. (2)Town support of external projects where the Town provides funds to an outside organization (examples include,but are not limited to,grants to Nonprofit Organizations). (3)Gifts,Bequests,or unsolicited Donations to a Town department or the Town where no reciprocal commercial benefit is given or expected and no business relationship exists. 3.Definitions. Bequest.A gift or contribution of cash,goods or services given voluntarily and expressed in writing through a willorothertestamentary document. Co-Sponsorship.Participation by the Town (via direct funding,waived fees,staff coordination or technical assistance)in an event that is provided by an outside entity and that is closely aligned with or furthers a core Town program or service. Donation.Agift or contribution of cash,goods or services given voluntarily toward an event, project,program or corporate asset where no reciprocal commercial benefit is given or expected. If reciprocal commercial benefits are given or a business relationship exists with a corporate donor,the contribution will be a Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangement,as applicable,and the principles ofthis Policy will apply. 2189798.3 Facility Naming Rights.The naming of Town-owned and/or operated buildings,structures, natural features and recreational facilities,whether in whole or portions thereof (hereafter referred to individually asa "Facility"or collectively as "Facilities"),and streets,roads or any public rights-of-way (hereafter referred to individually as a "Street"or collectively as the "Streets")within the corporate limits ofthe Town.Portions of a Facility may have names other than that of the entire Facility and features may be dedicated toor in honor of a person such as "Smith Beach"or"Jones'Amphitheater,"subject to the provisions of this Policy. In-Kind Contribution.A contribution received in the form of goodsand/orservices rather than cash as part of a Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangement. Marketing Arrangement.A mutually beneficial business arrangement between theTownanda third party, wherein the third party provides cash and/or in-kind services to the Town in return for access to the commercial marketing potential associated with the Town.Marketing Arrangements may include Municipal Sponsorship or Sole Sponsorship of one or more of the Town's programs,projects,events,Facilities or activities. Municipal Sponsorship.A business relationship in which the Town and another entity exchange things of value, including a public display of support. This value can be financial, in- kind or benefits related to visibility/exposures, publicity or market reach. It should not be confused with Donations (as defined above),the saleof advertising or innovative approaches to purchasing goods or services.Municipal Sponsorships include funds, products or services provided by a company or individual to the Town, in consideration of the opportunity for the company or individual to promote its name, product or service in conjunction with a Town program,project,event, venue or activity. Nonprofit Organizations.Organizationsdesignatedas tax-exemptunderthe FederalTax Code. Sister Agency.Local government entities that are traditional partners with the Town (i.e. FountainHills Unified School District and Fountain Hills Sanitary District). Request for Proposals ("RFP").An open and competitive process whereby the Town invites companies, subsidiaries or individuals to express their interest in participating, and submit proposals to participate, in Municipal Sponsorship, Co-Sponsorship, Sole Sponsorship or Marketing Arrangement opportunities with the Town. Sole Sponsorship.A business relationship in which a company, subsidiary or individual has paid to be the only Sponsor of a Town program, project, event, venue or activity. Sponsor.A company or individual that provides the Town with a Municipal Sponsorship and that enters into a Municipal Sponsorship agreement with the Town to promote itself and/or its products or services. 2189798.3 Standards of Responsibility.The requisite standards to enter into a Municipal Sponsorship, Co-Sponsorship,Sole Sponsorship or Marketing Arrangement with the Town.Factors to be considered in determining whether the standards have been met include,butare not limited to, whether a prospective Sponsor:(i)has available (or the ability to obtain)the appropriate financial,material,equipment,Facility,personnel resources and expertise necessary to indicate its capability to meet all contractual requirements;(ii)is able to comply with required or proposed delivery or performance scheduling;(iii)has a satisfactory record of performance;(iv) has a satisfactory record of integrity and business ethics;and (v)is qualified legally to contract with the Town. 4.Restrictions.In general,the following industries and products are not eligible for Municipal Sponsorships,Co-Sponsorships,Sole Sponsorships or Marketing Arrangements, including Facility Naming Rights,with the Town,but the Town may elect to enter into Municipal Sponsorships,Co-Sponsorships,Sole Sponsorships or Marketing Arrangements with these restricted industries or products when it is deemed appropriate by the Town Council acting in its sole discretion. A-Prohibited or Restricted Products.A company,subsidiary and association with products or services that are prohibited or restricted by Town Code or other governing laws and policies. B.Adult Products.A company or subsidiary whose business is substantially derived from the sale or manufacture oftobacco products,products prohibited under federal law or sexual/adult-oriented products. C Alcohol Sponsor at Youth-Related Events.Alcoholic beverages when the intended audience of or participants in the Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangement are youth under the legal drinking age. D-Parties not Deemed Responsible.Parties that are not deemed responsible under theStandards of Responsibility. E-Parties to Litigation. Parties involved in a lawsuit with the Town. F-Separate Contracts.Parties involved in any stage of negotiations for a Town contract unless the contract is directly linked to a Municipal Sponsorship,Co-Sponsorship, Sole Sponsorship,Marketing Arrangement or Facility Naming Rights opportunity. G-Conflicts of Interest.Individuals or commercial enterprises having past, present or pending business agreements or associations with the Town,if a Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangement Agreement would create an appearance of impropriety. H-Pending Land-Use Approval.Parties with an active case for any land-use approval before the Town. 2189798.3 I-Religious or Political Entities.Religious or political associations or candidatesrunning for any politicaloffice. 5. Roles and Responsibilities. A. Responsibilities of Town Departments. (1)Initiating Town Department.The initiating Town department shall (a)ensure adherence to the principles and guidelines outlined in this Policy,(b)prepare a proposal setting forth the scope of the program or project as provided in Subsection 6(A) below and (c)work with the Town Finance Division to ensure appropriate budgeting of revenues and expenditures and with theTown Attorney's Office to ensure the integrity of the procurement process and the legal sufficiency of contractual obligations. (2)Finance and Budget.The Finance Division shall provide general guidance,cost/benefit analysis,and direction relating to the appropriate budgeting of revenues and expenditures in a manner that maximizes the benefits of each Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship,Marketing Arrangement or Facility Naming Rights arrangement for the initiating Town department,the Town and the Sponsor. (3)Procurement.When applicable,the Town Manager or authorized designee shall oversee the preparation of the RFP or other competitive solicitation for Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship,Marketing Arrangement and Facility Naming Rights opportunities. (4) Town Attorney.The Town Attorney's Office shall provide legal review of any RFP or other competitive solicitation for Municipal Sponsorship,Co- Sponsorship, Sole Sponsorship,Marketing Arrangement and Facility Naming Rights opportunitiesand oversee the preparation of all Municipal Sponsorship,Co-Sponsorship, Sole Sponsorship, MarketingArrangement and FacilityNaming Rights agreements. (5) Town Manager.The Town Manager shall review all Municipal Sponsorship, Co-Sponsorship, Sole Sponsorship and Marketing Arrangement activities, including interim reports provided from time to time by Town departments.The Town Manager also shall be responsible for determining the frequency of reports by Town departments. 6. Procedures. The Town's participation in Municipal Sponsorship, Co- Sponsorship,Sole Sponsorship,Marketing Arrangement and/or Facility Naming Rights activities shall be according to the procedures set forth below.For Municipal Sponsorships,Co- Sponsorships,Sole Sponsorships,Marketing Arrangements and/or Facility Naming Rights arrangements initiated by the Town,Subsections 6(A)- (G) shall apply; for Municipal Sponsorships,Co-Sponsorships,Sole Sponsorships,Marketing Arrangements and/or Facility Naming Rights arrangements initiated by another person or entity,Subsections 6(B),(D), (E), (F) and (G) shall apply. 2189798.3 A.Prepare a Proposal.A Town department considering a potential Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship,Marketing Arrangement or Facility Naming Rights arrangement shall prepare a proposal setting forth the scope of the program or project,including a description of the community benefit,financial goals,means of recognition, potential interested Sponsors,and general marketing strategy if a Marketing Arrangement is involved.The proposal shall be submitted to the Department Director for review and approval. If Facility Naming Rights are involved and will result in a name change to an existing Facility, the history and legacy ofthe current municipal Facility should be considered and/or incorporated within the new proposed name.All Facility or Street naming shall be in accordance with the additional procedures set forth in Sections 8 and 9 below. B-Estimate Value.If the proposed Municipal Sponsorship or Marketing Arrangement includes Facility Naming Rights or granting Sole Sponsorship,the Department Director shall provide areasonable basis for determining the value ofthe Municipal Sponsorship, Marketing Arrangement or Facility Naming Rights opportunity.At the Town Manager's discretion,a qualified third party maybe used to establish value. c-.Develop and Implement Solicitation.The applicable Town department, working with the Town Attorney,shall develop an RFP for each Municipal Sponsorship, Co-Sponsorship,Sole Sponsorship or Marketing Arrangement opportunity valued greater than $10,000 and all Facility Naming Rights opportunities and the most beneficial,qualified response shall be submitted to Town Council with a recommendation for approval.Town-originated Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangements valued at $10,000 or below and revenue producing or "no-cost"Municipal Sponsorship, Co-Sponsorship,Sole Sponsorship or Marketing Arrangement opportunities that involve the provision of commodities or services provided either to the Town or the Fountain Hills community in support of Town operations,functions or programs through which the provider will benefit monetarily,must be awarded using a competitive process that is appropriate to the value,complexity and profile of the business opportunity.Municipal Sponsorship, Co-Sponsorship,Sole Sponsorship or Marketing Arrangement proposals forwarded to the Town are not subject to competitive solicitations if the proposed Municipal Sponsorship, Co-Sponsorship,Sole Sponsorship,Marketing Arrangement or Facility Naming Rights opportunity is determined through a good faith effort to be unique and without interested competitors. D-Evaluate Submissions.The applicable Town department shall review andanalyzeallresponsivesubmittalsreceivedandshallprovidearecommendationofapprovalor denial to the Town Manager.The submittals shall be reviewed against selection criteria that may include,but are not limited to: (1)Consistency of the prospective entity's products,customers and promotional goals with the Town's character,values and service priorities,including the most recently adopted Town Council goals. (2)The ability for the Town to retain its identity as owner/operator of the Facility or principal provider of the service. 2189798.3 (3) The prospective entity's historical participation and association with community projects,events andcontinuedwillingness to participate. (4) The operating and maintenance costs to the Town associated with the proposed sponsorship. (5) Anticipated public perception of the associationwith the Town and the prospective entity and community support for,or objection to, the prospective entity. (6) The prospective entity's regard for and demonstrated success in valuing diversity. (7) The prospective entity's regard for and demonstrated success in environmental stewardship. E. Develop Agreement.In the event a Municipal Sponsorship,Co- Sponsorship, Sole Sponsorship, Marketing Arrangement or Facility Naming Rights proposal is recommended for approval, the Town department will work with the Town Attorney's Office to prepare an agreement consistent with all applicable Town Codes, policies and ordinances. The agreement shall contain a provision granting the Town the right to suspend or terminate the Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship,Marketing Arrangement or Facility Naming Rights agreement if, in the sole discretion of the Town Manager or the Town Council (whichever approved the agreement), the continued arrangement would no longer satisfy the selection criteria by which the arrangement was initially approved. F. Manager Review:Council Approval.The Town Manager shall review all Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship and Marketing Arrangement proposals and shall submit to the Town Council for approval all Municipal Sponsorship,Co- Sponsorship,Sole Sponsorship or Marketing Arrangement Agreements (1)with an aggregate value greater than $10,000,(2)involving Town contributions,whether in cash or as an In-Kind Contribution greater than $10,000, (3)involving a request to close public access to a Town- owned facility for more than one day, (4)involving events lasting longer than one week (including set-up and take-down)and (5) all agreements involving Facility Naming Rights. Municipal Sponsorship,Co-Sponsorship,Sole Sponsorship or Marketing Arrangement Agreements not identified in clauses (F)(l)-(5)above may be approved by the Town Manager. G. Record Financial Transaction. In the event a Municipal Sponsorship is received as an In-Kind Contribution of goods or services, the Finance Division shall create and retain a record of that donation and any associated revenue or expense to the Town to document the financial transaction to the Town. 7. Co-Sponsorship Requests. The Town actively supports the efforts of Nonprofit Organizations, other governmental agencies and Sister Agencies whose events are (i) held in Town parks and Facilities and (ii) furtherTown core program goals and services. Such support may include fee waivers, reduced fees, reduced rental chargesand Co-Sponsorship. All permit fee waivers and reductions,reduced Facility rentals and Co-Sponsorship agreements must comply with the guidelines and procedures set forth below. 2189798.3 A.Fees.The Town charges everyone a fee to permit and have priority useof any park,amenity,stage or recreation Facility.This fee is to cover extra operational expenses associated with the use or event and to guarantee the space for the permittee.Fees are based upon the purpose and size of the event.Additional fees are charged as a damage deposit.Fees may be modified as follows: (1) Any Nonprofit Organization that meets the guidelines set forth below may receive a 50%reduction in fees or rentals. (2) The Town may further reduce or waive an outside organization's permit or rental fees for an eventonTown property that (a)has close association withthe Town's core program goals and services and (b)provides the Town with positive marketing exposure.The determination as to further waivers shall be made by the Town Manager or the Town Council,with the authority for such review determined according to the limitations set forth in Subsection 6(F)above. B.Requirements for Reduced Fees.Any Nonprofit Organization applying for a Town permit or Facility rental may be granted a 50%reduction in fees if the following criteria are met: (1)At the time of the request for reduced fees,the Nonprofit Organization provides a copy of the determination letter from the IRS granting the Nonprofit Organization tax-exempt status. (2)The mission of the Nonprofit Organization does not conflictwith the Town's regulations,mission or policies. (3)No fundraising activities are involved as a part of the program or event.Any exceptions must be approved by the Town Manager or Town Council pursuant tothe process set forth in Subsection 7(A)(2)above. (4)The Nonprofit Organization permit-holder must remain responsible for damage fees and other costs,including,but not limited to,general liability insurance, police coverage,player/team fees,electrical fees,lights,overnight security,concessions, toilet/trash service agreements,fencing and any other additional needs and agreements pertaining to the event.Damage deposits are never waived for events conducted by organizations from outside of Fountain Hills. Events at the Desert Vista Skate Park require an additional damage deposit in addition to the regular park permit procedure. (5)Except for Municipal Sponsorship Agreements,any fee reductions for athletic field permits should be limited to youth tournaments and events only.Youth programs must be based in Fountain Hills and primarily serve Fountain Hills residents. The permit-holder is responsible for the damage deposit and any athletic field light fees. 2189798.3 C.Requests for Co-Sponsorships of Non-Governmental Entities. The Town has a limited In-Kind Contribution budget each year to actively co-sponsor events.Primarily, the Town can provide limited staff coordination and technical assistance. Organizations still must fund other associated costs, including, but not limited to, the cost of additional dumpsters, portable toilets, lighting, etc. When evaluating proposals from organizations, the following criteria are used: (1) The event/program should promote beneficial use of the park, Facility,or program. (2) The event/program should be open to the public. (3)The event/program should support the Town's core recreation programs,mission and goals. (4) The event/program should demonstrate community pride and involvement. (5) The event/program should not have a religious or political purpose. (6) Priority should be given to events/programs that support or positively impact youth. (7) The sponsoring organization should clearly recognize the Town as a co-sponsor (including logo) on all materials and announcements associated with the event or program, subject to the Town's prior, written approval of the use of the Town logo or trademarks.The Town may display its banners at all co-sponsored events. D.Requests for Co-Sponsorship of Other Governments and Sister Agencies. (1) If another governmental entity or Sister Agency (i.e. Fountain Hills Unified School District or Fountain Hills Sanitary District)is only a supporting sponsor foranother outside organization, that other outside organizationstill must apply forTown Co-Sponsorship. (2) If another governmental entity or Sister Agency is the primary organizer for a public program or event, generally the Town will grant a request to be a co-sponsor.Like sponsorship of outside organizations,the governmental entity or Sister Agency still is responsible forall other costs associatedwith the program or event. (3) The governmental entity or Sister Agency holding the program or event must clearly acknowledge the Town as a co-sponsor on all written materials associated with the event, subject to the Town's prior,written approval of any use of the Town logo or trademarks. 2189798.3 8.Facility Naming General Policies. A.Recommendations to Other Bodies.This Policy should be followed in reviewing or preparing the Town's official comments or recommendations to State,Federal, and/or intergovernmental boards taking actions regarding geographic names,naming or renaming of Facilities or Streets. B.Town Request:Town Council Consideration.The Mayor,three members ofthe Town Council,or the Town Manager may request the naming or renaming ofa Facility or a Street.Thereafter,the Town Council shall discuss the requested renaming at a public meeting. C.Bond-Financed Facilities orStreets.Ifa bond-financed Facility or Street is proposed or requested to be named or renamed,bond counsel must review and approve the request or proposal before consideration ata Town Council meeting. D.Public Notice.The Town Council shall provide appropriate public notice of any Street or Facility naming actions in conjunction with other agenda items for regularly- scheduled meetings. E-Changes to Approved Names.Once a name has been officially approved by the Town Council,changes should be strongly resisted. F-Town Council Discretion.In all cases, the Town Council reserves the right to accept or reject any proposal to name or rename a Street or Facility,in its sole discretion. G-Town Manager Duties.The Town Manager,upon approval ofthe naming or renaming action by the Town Council,shall implement names or name changes of Facilities or Streets.The Town Manager shall notify those who have submitted the suggestion as well as other appropriate offices and agencies.Upon Town Council denial of a name or name change, the Town Manager shall notify those who requested the name change. 9. Facility Naming Criteria. A-For Facilities and Streets Generally.Recognizing that the naming or renaming of a Facility or Street should be approached cautiously with forethought and deliberation,the following criteria are hereby established: (1)To avoid duplication,confusing similarity or inappropriateness,the Town Council,in considering name suggestions,shall review existing Facility and/or Street names, as applicable. (2)In naming Facilities and Streets,consideration shall be given to geographic location,historical or cultural significance and natural or geological features. In the construction of a Facility,the address designation shall be used until the formal naming of the Facility.Whenever possible,naming shall be made prior to the completion of constructionof a Facilityor Street. 2189798.3 10 (3)Facilities and Streets maybe named only for a deceased individual or individuals if (i)the individual or individuals has/have enhanced the quality of life within the Town and (ii)two years or more has elapsed between the consideration for naming and the time of death of the individual or,in the case of related individuals,two years after the death of one of the individuals.The deceased individual shall have performed outstanding service in one ormore of the following categories: (a)Maintained involvement in a leadership role in civic organizations that are devotedto community improvement. (b)Provided assistance to the underprivileged,economically disadvantaged or physically and/or mentally handicapped. (c)Actively promoted and directed community events and activities that have clearly added to the enrichment of the quality and quantity of cultural life within the community. (d)Actively promoted and implemented effective programs andactivitieswithin the community for the Town's youth. (e) Actively promoted and implemented effective programs and activities within the community for the Town's senior citizens. (f) Assumed an active leadership role in developing and implementing programs directed totheimprovement of the visual aesthetic appearance of the community at the commercial, public or residential level. (g) Assumed an active leadership role in developing programs and Facilities directed toward the improvement of community socialand health needs as well as programs directed toward humanitarian purposes. B.Additional Criteria Applicable to Streets.In considering the renaming or namingof aStreet, theTown Council shall considerthe following: (1) Street names, plats, specific sites and places and natural features indicated on general usage maps for 50 years or more (age criteria applied by the National Register of Historic Places)should be changed only under exceptional circumstances.Street names shall not be similar in spelling or pronunciation to a presently-existing major collectoror arterial road in the Phoenix Metropolitan area.No Street shall be named by number only according to the street numbering grid (i.e. 150th Street) unless the Street follows a straight north-south alignment. (2) Attention should be paid to maintaining sequential, numerical and alphabetical naming patterns when considering any Street name changes or additions. All Streets shall be named and numbered consistently with the County-wide street numbering system and no such name or change of name shall take effect until (a) the affected public safety agencies have been notified and (b) all impacted public safety 2189798.3 11 dispatch maps have been amended.Any extensions of presently-existing Streets within orinto theTown shallbearthe same name asthe existing roadway.No Street name shall contain a homonym. (3) New Streets shall be named according tothe following guidelines: (a)In most cases,the Street name will be proposed by the property owner,reviewed bytheTown staff and approved by theTown Council aspart of its consideration of a final plat for adevelopment within theTown. (b) If an unnamed private Street is dedicated to the Town, the name may be suggested by the property owners thereon, but the Town Council shall make the final determination. (4) No Street shall be renamed unless: (a)The new Street name is notone already well-known in the Phoenix metropolitan area. (b)There are no (or very few)buildings or other addressed Facilities presently existing alongthe Street. (c)The new Street name will not be confused with other existing Streets in the Town. (d)The new Street name shall not be the same as a specific livingperson within the Phoenix Metropolitan area. C Historical Reference.Changes of names for Facilities or Streets should be approved only when they do not violate historical or common usage names.Facilities and Streets may be named after research reveals that the area around the Facility or Street has been commonly, yet unofficially, namedby the residents in the area. D-Donor Naming.Facilities and Streets may be permanently named for an individual (alive or deceased),organization,or business if that individual,organization or business has made adonation ofmoney,land or other goods and/or services to the Town equal to at least half the full cost of the Facility or Street,either for purposes of developing a particular Facility or Street or for the Town's Capital Fund.Such arrangements will be called "Permanent Naming."Permanent Naming proposals that are not in accordance with Section 4of this Policy shall not be considered. 2189798.3 12 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Development Services Staff Contact Information:Robert Rodgers,Senior Planner rrodgers@fh.az.com 480-816-5138 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of a FINAL REPLAT at 16750,16800 &16820 E.Paul Nordin Parkway and at 16845 E. Avenue of the Fountains (Plat 208,Block 7,Lots 1, 2, 3 & 5). Case #S2015-08 Applicant:Fountain Hills Developer,LLC Applicant Contact Information:14555 N.Scottsdale Rd.#240 Scottsdale,AZ 85254 480-315-9090 Owner:MS-RCS Fountain Hills, LLC Owner Contact Information:371 Centennial Pkwy #200 Louisville,CO 80027 303-466-2500 Owner:Park Place Properties,LLC Owner Contact Information:1221 Cleveland Wilmette,IL 60091 C/O Sam Gambacorta,Managing Partner Property Location:16750,16800 &16820 E.Paul Nordin Pkwy and, 16845 E.Avenue of the Fountains Fountain Hills,AZ 85268 Related Ordinance,Policy or Guiding Principle: Fountain Hills Subdivision Ordinance ,Section 2.07 Replats Staff Summary (background): The Property owner,Fountain Hills Developer,LLC (Morningstar),currently owns the property located at 16750,16800 &16820 E.Paul Nordin Pkwy.The property is currently divided into three lots and contains approximately 3.34 acres in total. Page 1 of 2 \f TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Development Services Staff Contact Information:Robert Rodgers,Senior Planner rrodgers(a)flxaz.gov 480-816-5138 Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): PUBLIC HEARING to receive comments on a proposed SPECIAL USE PERMIT to allow the installation of a 25'tall GOLF NET at 17008 E.Jacklin Drive. (APN 176-08-738).Case #SU2015-14 CONSIDERATION of a proposed SPECIAL USE PERMIT to allow the installation of a 25'tall GOLF NET at 17008 E.Jacklin Drive. (APN 176-08-738).Case #SU2015-14 Applicant: Applicant Contact Information: Property Location: Lisa Denny 11488 E.Paradise Lane Scottsdale,AZ 85255 480-258-3606 17008 E.Jacklin Drive Fountain Hills,AZ 85268 Related Ordinance,Policy or Guiding Principle: Fountain Hills Zoning Ordinance Chapter 5,Section 5.09 A.1. Staff Summary (background): The site, plat 401A,Block 1, Lot 13B, is 10,018 square feet (0.3 acres)and is located in an R1-10 RUPD zoning district.The properties adjacent to the site are: North Desert Canyon Golf Club-4th Fairway-Zoned R1-10 RUPD West Desert Canyon Golf Club -4th Fairway -Zoned R1-10 RUPD South Single Family Residence -Zoned R1-10 RUPD East Single Family Residence -Zoned R1-10 RUPD As a result of continued property damage and the tenant's personal safety concerns due to errant golf balls from the Desert Canyon GolfClub, the property owner is requesting to be permitted to install a golf ball fence along the rear and west side of the back yard. The fence is approximately 25' tall and is a black net mesh design. Such nets may only be installed after receipt of a Special Use Permit. redact redact redact Location Map Fence Location Criteria  “Golf ball fences may only be developed on lots that directly abut a golf course or driving range, however, they may not be developed within any front or street-side yard setback.”  “Golf ball fences should only be developed within Six-Hundred (600) feet of the forward-most golf course tee box or driving range position. Golf course fences to protect against errant secondary golf shots may be approved due to unusual site or course layout circumstances.”  “Golf ball fences shall be set back from any abutting residential property at a distance not less than the height of the fence. Golf ball fences may be located nearer to such a property line with the prior written consent of the abutting residential property owner.”  “The maximum height of a golf ball fence shall not exceed twenty-five (25) feet.”  “Pole color must blend in with background features as viewed from neighboring properties to minimize its visibility. Net color shall be black.”  “Landscaping should be used where appropriate to obscure the poles from the neighboring properties.” Recommendation P&Z – Forwarded a recommendation to Town Council to Approve Staff – Recommends Approval Subject to the stipulations outlined in the staff report. Case #SU2015-14 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date: 11/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Grady E.Miller,Town Manager Strategic Planning Goal:NotApplicable (NA)Operational Priority:NotApplicable(NA) REQUEST TO COUNCIL (Agenda Language):DISCUSSION and POSSIBLE DIRECTION TO THE STRATEGIC PLANNING ADVISORY COMMISSION regarding its project approach and efforts in updating the Town of Fountain Hills Strategic Plan. Applicant:N/A Applicant Contact Information:N/A Owner:Town of Fountain Hills Owner Contact Information:N/A Property Location:N/A Related Ordinance,Policy or Guiding Principle:Fountain Hills Strategic Plan Staff Summary (background): Dana Saar,the Chair of the Strategic Planning Advisory Commission (SPAC),will be at the Town Council meeting on November 5,2015 addressing the commission's efforts in updating the Fountain HillsStrategic Plan.As part of his presentation,Mr.Saar will be discussing the project approach that the commission will be taking to update the strategic plan. A work group of SPAC recently reviewed the 2005 Town of Fountain HillsStrategic Plan including the SWOT analysis that was utilized as part of the 2005 strategic plan. Following the discussion of the SWOT analysis from 2005,the SPAC work group assessed the strengths,weaknesses,opportunities,and challenges that were still relevant to the town ten years later.After taking the updated SWOT analysis to the full SPAC for its review and discussion,commissioners confirmed that a number of the strengths,weaknesses,opportunities, and challenges were still relevant and added additional key items to the SWOT analysis.Attached is the updated SWOT analysis that SPAC reviewed and approved at its meeting on September. As had been discussed previously with the Town Council back in the spring,SPAC will also be partnering with Vision Fountain Hills on its visioning process.The visioning process will complement the planning efforts of SPAC and will allow both SPAC and the Fountain Hills Civic and Cultural Association to leverage their resources in achieving their outcomes. Page 1 of 2 Consolidated Elections Presented by: Kristi Passarelli, Assistant Director Maricopa County Elections Department Why “Consolidated” ? In 2012 the Legislature amended A.R.S. § 16-204 City/Town candidate elections must be held on the same day as the Primary or General election in even-numbered years. effectively banning all cities/towns from holding candidate elections on any other statutory election date City of Tucson and City of Phoenix filed a lawsuit seeking declaratory and injunctive relief against the State arguing that the Arizona Constitution did not grant the legislature authority to preempt their charters, which mandated candidate election dates conflicted with the new law Trial Court granted judgment to the cities The State appealed Why “Consolidated” ? (continued) Court of Appeals affirmed the Trial Court’s grant of a permanent injunction enjoining the State from requiring the City of Tucson and City of Phoenix to comply with the candidate election scheduling requirements in A.R.S. § 16-204, as amended. The Court found that the legislation affected the method and manner of selecting the cities’ governing officers, which is a matter of local concern and the State did not provide evidence to demonstrate that the statute implicated a statewide interest. Therefore the law was preempted by the charters. The State appealed. On April 7, 2015, the Arizona Supreme Court denied the State’s petition for review. Therefore the permanent injunction remains in effect. What does that mean for Cities & Towns? What the final decision means: It means Charter Cities can choose to hold their candidate elections in March/May or Aug/Nov of the “off cycle” or any cycle date they want. Example: City of Tempe & City of Goodyear hold their candidate elections in March. City of Phoenix holds their candidate elections in August & November of ODD numbered years. It means Non-Charter Cities/Towns must still hold their candidate elections during EVEN numbered years in August & November. Non-Charter Cities/Towns can CONSOLIDATE onto County ballot or hold their own separate election – Polling Place or All Mail. Maricopa County will NOT assist or conduct a separate election held in EVEN years during a countywide August Primary or November General the city/town would have to conduct this separate election themselves. Non Partisan - “Independent” Voters A.R.S. § 16-467 A. At primary elections there shall be provided a separate ballot for each party entitled to participate in the primary. B. For a voter who is registered as independent, or no party preference or as a member of a political party that is not entitled to continued representation on the ballot pursuant to section 16-804, the voter shall designate the ballot of only one of the political parties that is entitled to continued representation on the ballot and the judge of election shall give the elector only that political party's ballot. Notification to “Independent” Voters 90 Day Notice (REQUIRED by statute) Mailed to ALL “IND” voters on the Permanent Early Voting List 90 Day Notice – Ballot Choice Additional Notification by MCED 33 Day Notice In 2014, MCED mailed to ALL “IND” voters on the Permanent Early Voting List that had not responded to the statutory 90 day notice. This secondary notice is NOT REQUIRED by statute. This secondary notice is being considered again for the 2016 cycle. Mail Ballot Request Information Early Ballot Requests FIRST day to request is 93 days prior to each election May 29, 2016 – for the August 30, 2016 Primary Election Voters can request for BOTH Primary & General elections on this date August 7, 2016 – for the November 8, 2016 General Election This is the earliest date a GENERAL ELECTION ONLY request can be made LAST day to request a ballot to be mailed is 11 days prior to each election August 19, 2016 – for the August 30, 2016 Primary Election October 28, 2016 – for the November 8, 2016 General Election Mail Ballot Request Information How to request an early ballot **Independent Voters can make their Primary Ballot choice via any of the below methods** Online at: www.recorder.maricopa.gov/EVRequest By Phone - (602) 506-1511 or for TDD at (602) 506-2348 In Writing – must include the following information: Name, Residence Address, Mailing Address (for “forwarding” of a ballot to a temporary address), Date of Birth, Which Election (Voters who request an early ballot for the Primary Election will automatically be sent an early ballot for the General Election if not otherwise indicated), for Primary ONLY: Ballot choice (Party or City only) for INDEPENDENT Voters, and Signature Written requests for early ballots should be mailed to: Maricopa County Elections, Attn: Early Voting, 510 S. 3rd Ave, Phoenix AZ, 85003 Why not “All Mail” Ballot ? MCED cannot conduct an ALL Mail election for a City or Town if the election is held on the same day as the Primary and General State/County Elections. Is this “new” ? 2014 was the first time this was attempted the consolidated election law did not prohibit as it had in years past MCED received numerous complaints Voters & Elected Officials Confusion Frustration Why?..... 0179 Desert Oasis – Polling Location 2014 Desert Oasis School ALL non city voters - shown in white areas knowns as “county islands” were assigned to this polling location as required by law. ALL city voters - shown in the shaded area were automatically mailed a ballot (including IND voters that responded to the notice(s) with their ballot choice – either Partisan or City Only) City voters that either a.) didn’t receive their mail ballot, b.) received their mail ballot but chose not to vote it, c.) were “IND” and did not respond to the notices, on election day were required to vote at City Hall. They could not be assigned to the polling place. For any election held by ALL Mail Ballot, polling locations are not assigned because every qualified elector is mailed a ballot or can vote a the designated replacement ballot offices (City/Town Clerk or MCED locations) Confusing? Yes….. as of Oct 1, 2015 Total City voters = 1,951 “IND” City voters = 762 Total Non-City voters = 1,208 “IND” Non-City voters = 460 City of Buckeye City votes are shown in the Green shaded areas Replacement ballot location: City Hall Voters from as far away as Wickenburg had to travel several miles to City Hall to vote. This was true in areas all over the county. The following Cities / Towns held their election by mail in the Primary 2014: Buckeye El Mirage Fountain Hills Litchfield Park Paradise Valley Queen Creek Wickenburg For the General Election several school districts were added plus 2 additional cities: Goodyear & Carefree - Buckeye Union, Dysart Unified, Fountain Hills Unified, Litchfield Elem, Palo Verde Elem, Queen Creek Unified, Saddle Mountain Unified, Scottsdale Unified What is the cost for holding an election? County ballot $0.50 per registered voter No Additional Charge for mail ballots Non-county ballot – Mail Ballot Only $2.12 per registered voter Non-county ballot – Polling Locations $1.37 per registered voter PLUS $2.12 per mail ballot Questions 2490743.2 ORDINANCE 15-09 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA,AMENDING THE TOWN CODE, CHAPTER 2, MAYOR AND COUNCIL, ARTICLE 2-3, COUNCIL ELECTION, BY MODIFYING THE PROVISIONS RELATING TO ALL-MAIL BALLOT ELECTIONS AND BY INCORPORATING CHANGES TO STATE LAW REGARDING CALCULATION OF THE MAJORITY OF VOTES CAST. WHEREAS,the Fountain Hills Town Code (the “Town Code”) provides that all Town of Fountain Hills (“Town”) elections shall be exclusively by mail; and WHEREAS,the Town contracts with Maricopa County to conduct elections on the Town’s behalf; and WHEREAS, many of the Town’s elections are, due to State Law, held on the same dates as county-wide and state-wide elections; and WHEREAS, Maricopa County recently informed the Town that, for Town elections falling on the same day as county-wide and state-wide elections, the County would no longer be accommodating all-mail election procedures, and would instead be conducting all such elections by traditional “ground” polling stations; and WHEREAS, during the 2015 Legislative Session, the Arizona Legislature revised the provisions in State Law regarding how the majority of votes cast is calculated, causing the Town Code to be out of conformance; and WHEREAS, the Mayor and Council of the Town desires to amend the Town Code to modify the provisions requiring all-mail elections and to revise the procedures for calculating a majority of votes cast at an election to conform with State Law. NOW, THEREFORE, BE IT ORDAINED 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.The Town Code Chapter 2 (Mayor and Council), Article 2-6 (Initiative and Referendum), Section 2-6-5 (Mail Ballot Election), is hereby amended as follows: Section 2-6-5 Mail Ballot Election The Town Clerk shall MAY conduct all initiative and referendum elections whether on the date of primary, general or special elections, exclusively using mail ballots in accordance with ARIZ. REV. STAT. § 16-409, as amended, IF SUCH ELECTIONS ARE NOT CONSOLIDATED WITH COUNTY-WIDE OR STATE-WIDE ELECTIONS. SECTION 3.The Town Code Chapter 2 (Mayor and Council), Article 2-3 (Council Election), is hereby deleted in its entirety and replaced with the following: 2490743.2 2 Article 2-3 COUNCIL ELECTIONS Sections: 2-3-1 Consolidated Election Dates 2-3-2 Non-Partisan Ballot 2-3-3 Primary Election 2-3-4 General Election Nomination 2-3-5 Candidate Financial Disclosure 2-3-6 Mail Ballot Election Section 2-3-1 Consolidated Election Dates All elections shall be held as pursuant to ARIZ.REV.STAT. § 16-204, as amended. Section 2-3-2 Non-Partisan Ballot Elections shall be non-partisan and nothing on the ballot in any election shall be indicative of the support of a candidate. Candidates’ names shall appear on the ballot pursuant to the procedure set forth in ARIZ.REV.STAT. § 16-464, as amended. Section 2-3-3 Primary Election Any candidate who shall receive at the primary election a majority of all the votes cast at that election for the office shall be declared to be elected to the office for which the person is a candidate,effective as of the date of the general election, and no further election shall be held as to such candidate. If more candidates receive a majority of votes cast than there are seats to be filled for the office, from among those candidates who receive a majority of votes cast, the candidates who receive the highest number of votes equal to the number of seats to be filled for the office shall be declared elected to that office. The majority of votes cast is determined by: A.Calculating the total number of actual votes cast for all candidates for an office whose names were lawfully on the ballot for that office. B.Dividing the sum reached pursuant to paragraph A of this section by the number of seats to be filled for the office. C. Dividing the number reached pursuant to paragraph B of this section by two and rounding that number to the highest whole number. Section 2-3-4 General Election Nomination Unless otherwise proscribed by State Law, if at the primary election no candidate receives the majority of the votes cast or the number of seats to be filled for the office is more than the 2490743.2 3 number of candidates who receive a majority of votes cast, of the candidates who did not receive a majority of votes cast, the number of candidates who advance to the general election shall be equal in number to twice the number of seats to be filled for the office and the candidates who received the highest number of votes for the office shall be the only candidates at the general election. If more than one candidate received an equal number of votes and that number was the highest number of votes for the office, then all candidates receiving the equal number of votes shall be candidates at the general election.The candidates equal in number to the seats to be filled for the office who receive the highest number of votes at the general election shall be declared elected to that office.If two or more candidates receive an equal number of votes cast for the same office, and a higher number than any other candidate, the candidate who shall be declared elected shall be determined by lot in the presence of the candidates. Section 2-3-5 Candidate Financial Disclosure Pursuant to ARIZ. REV. STAT. § 38-543, as amended, each candidate for the office of Councilmember shall file a financial disclosure statement on a form prescribed by law when such candidate files a nomination paper. The statement shall contain such information as required by law. Section 2-3-6 Mail Ballot Election The Town Clerk may conduct primary, general and special elections using mail ballots in accordance with ARIZ.REV.STAT. § 16-409, as amended, if such elections are not consolidated with county-wide or state-wide elections. 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, Arizona, November 5,2015. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY:APPROVED AS TO FORM: Grady E. Miller, Town Manager Andrew J. McGuire, Town Attorney TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:11/5/2015 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Administration Staff Contact Information:Craig Rudolphy,Finance Director,480-816-5162,crudolphy@fh.az.gov Strategic Planning Goal: 12 Reliable funding for infrastucture maintenance Operational Priority:Pavement Management Program REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of ORDINANCE 15-10 approving an amendment to the Pavement Management Program and authorizing the necessary budget transfers to fund the Program. Applicant:N/A Applicant Contact Information:N/A Property Location:N/A Related Ordinance,Policy or Guiding Principle:Financial Policy Staff Summary (background):During FY12-13,Council made establishment of a Pavement Management Program a top priority to be addressed.This Program was adopted by Resolution 2013-02.Funding was established at $1 million annually for asphalt maintenance consisting of crack sealing,slurry and chip sealing, mill and overlay,manhole and valve adjustment and signing and striping.A Special Session of Council was held March 10,2015,and a motion was approved to amend the Pavement Management Program regarding the asphalt replacement plan. In order to implement the asphalt replacement plan,staff is recommending the reallocation of the portion of the excise tax that was dedicated to the repayment of the mountain preserve bonds (see Ordinance 00-12 -0.3%of the Town's 2.6%sales tax rate -0.1%was used for repayment of the MPC bonds for Town Hall and 0.2%was used for the MPC bonds for the mountain preserve.The 0.1% stopped when the Town Hall MPC bonds were retired.)The last of the mountain preserve bonds will be repaid on July 1,2016.Staff recommends redirecting the 0.2%excise tax for the mountain preserve bonds to fund the asphalt replacement plan. Risk Analysis (options or alternatives with implications):Failure to reallocate the portion of the excise tax dedicted to repayment of the mountain preserve bonds will preclude funding for the asphalt replacement portion of the Pavement Management Program. Fiscal Impact (initial and ongoing costs;budget status):$8,500,000 over 10 years Budget Reference (page number): Funding Source:Multiple Funds ifMultiple Funds utilized,list here:MPC Debt Service Fund,General Fund Budgeted;if No,attach Budget Adjustment Form:na Recommendation(s)by Board(s)or Commission(s): Page 1 of 2 2483605.4 ORDINANCE 15-10 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AN AMENDMENT TO THE PAVEMENT MANAGEMENT PROGRAM AND AUTHORIZING THE NECESSARY BUDGET TRANSFERS TO FUND THE PROGRAM. WHEREAS, the Town of Fountain Hills (the “Town”)street system is estimated at $150,000,000 replacement value, making preservation of existing streets essential to the fiscal health of the Town; and WHEREAS, the 2009 Stantec Engineering Report indicated that the Town’s pavement earned a rating 67.1 out of 100, which indicated that the Town’s pavement ranged from good to excellent, but noted that, due to the age of the pavement, degradation could accelerate without a proper annual pavement maintenance program; and WHEREAS, at the August 23, 2012,Town Council/Staff Retreat, the Mayor and Council of the Town (the “Town Council”)made establishment of a Pavement Management Program (the “Program”) a top priority to be addressed; and WHEREAS, the Town Council desires to establish an Asphalt Replacement Plan (the “Replacement Plan”)to be included within the Program; and WHEREAS, the Town Council desires to annually fund the Program with existing revenues,with $1 Million allocated annually for asphalt maintenance consisting of crack sealing, slurry and chip sealing,mill and overlay,manhole and valve adjustment and signing and striping (the “Maintenance Plan”)and $800,000 -$1,200,000 allocated annually to the Replacement Plan; and WHEREAS, on August 3, 2000, the Town Council adopted Ordinance 00-12, increasing the Town’s transaction privilege tax rate from 1.2% to 1.6%. The 0.4% increase was subsequently distributed:0.2% for payment of debt service for mountain preservation land purchases (the “Mountain Preserve Tax”);0.1% for payment of debt service for Civic Center construction (the “Civic Center Tax”);and 0.1% for downtown development; and WHEREAS, in 2011 the Civic Center bonds were retired, and the Civic Center Tax was redirected to General Fund uses; and WHEREAS, the mountain preserve bonds will be retired on July 1, 2016, and thereafter the Town Council desires to redirect the Mountain Preserve Tax to the Program; and WHEREAS, the Town Council finds and determines that it is in the best interest of the Town that funding for the Program be generated from existing sources, including: (i) transferring certain Highway User Revenue Fund (“HURF”) and Vehicle License Tax (“VLT”)amounts; (ii) cancelling certain projects in the Town’s Capital Improvement Plan (“CIP”); (iii) outsourcing certain functions;and (iv) appropriating the Mountain Preserve Tax to the Replacement Plan. 2483605.4 2 NOW, THEREFORE, BE IT ORDAINED 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.In order to provide funding for a portion of the Replacement Plan,starting in fiscal year 2016/17 and continuing each fiscal year thereafter, the Town Council hereby authorizes allocating the following amounts,if available,from the General Fund and the CIP Fund: Asphalt Replacment Plan CIP Fiscal Year General Fund/Sales Tax Fund 2016/17 $650,000 $200,000 2017/18 $700,000 $200,000 2018/19 $700,000 $200,000 2019/20 $700,000 $200,000 2020/21 $1,000,000 $200,000 2021/22 $850,000 $200,000 2022/23 $900,000 $200,000 2023/24 $1,000,000 $200,000 2024/25 $1,000,000 $200,000 2025/26 $1,000,000 $200,000 $8,500,000 $2,000,000 TOTAL $10,500,000 SECTION 3.Beginning in fiscal year 2015/16 and continuing annually thereafter, $750,000 of the VLT revenues received shall be designated as a Special Revenue Fund for the Maintenance Plan. These funds will be added to the minimum of $250,000 apportioned from the HURF revenues that have, since fiscal year 2013/14, been allocated for the Program, as follows: Pavement Maintenance Plan Fiscal Year Zone VLT HURF 2016/17 Zone 1 $ 750,000 $ 250,000 2017/18 Zone 1 $ 750,000 $ 250,000 2018/19 Zone 2 $ 750,000 $ 250,000 2019/20 Zone 2 $ 750,000 $ 250,000 2020/21 Zone 3 $ 750,000 $ 250,000 2021/22 Zone 4 $ 750,000 $ 250,000 2022/23 Zone 5 $ 750,000 $ 250,000 2023/24 Zone 6 $ 750,000 $ 250,000 2024/25 Zone 7 $ 750,000 $ 250,000 2025/26 Zone 1 $ 750,000 $ 250,000 TOTAL $7,500,000 $2,500,000 2483605.4 3 SECTION 4.The Fountain Hills Pavement Management Program is hereby designated the same Priority Level in the Town budget as Public Safety. SECTION 5.By approving and amending the Program to include the Replacement Plan, the Town Council understands that,commencing in March 2016, the Town Manager intends to undertake certain actions in order to fund the Program, and the Town Council hereby authorizes and directs the Town Manager to utilize the Mountain Preserve Tax to achieve the funding priority. 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, Arizona, November 5,2015. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY:APPROVED AS TO FORM: Grady E. Miller, Town Manager Andrew J. McGuire, Town Attorney