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�t �n o� r MW mw - 'yiz,1h8f 18 ve�� �QwJ li! REVISED NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE Councilmember Dennis Brown Vice Mayor Nick DePorter Councilmember Cassie Hansen FOUNTAIN HILLS TOWN COUNCIL Mayor Linda M. Kavanagh Councilmember Henry Leger Councilmember Alan Magazine Councilmember Cecil A. Yates TIME: 5:30 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 3, 2016 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 Councihnembers. 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. z:\council packets\2016\rl61103\161103a.docx Last Printed: 10/31/2016 8:48 AM Page] of 4 EXECUTIVE SESSION AGENDA CALL TO ORDER — Mayor Linda M. Kavanagh ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S. §38-431.03(A)(3), for discussion or consultation for legal advice with the attorney or attorneys of the public body (Specifically, regarding amendments to zoning ordinance). 2. ADJOURNMENT. REGULAR SESSION AGENDA CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Linda M. Kavanagh INVOCATION — Mojgan Talaei, member of the Baha'i Faith Community ROLL CALL — Mayor Linda M. Kavanagh MAYOR'S REPORT i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) Mayor Kavanagh may review RECENT EVENTS attended relating to Economic Development. ii) PRESENTATION of the financial audit reports, including the Comprehensive Annual Financial Report (CAFR), for the year ended June 30, 2016, by Jennifer Shields, Partner, Heinfeld, Meech & Co., P.C. iii) QUARTERLY BUDGET REPORT presented by the Finance Director for the first quarter year ending September 2016. 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. z:\council packets\2016\r161103\161103a.docx Last Printed: 10/31/2016 8:48 AM Page 2 of 4 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from October 20, 2016. 2. CONSIDERATION of approving CONTRACT C2017-066 with The Garden Gnome, LLC dba The Pond Gnome, in the amount of $99,729.00, for emergency repairs and pump replacement for the water feature located at the northeast corner of Shea Boulevard and Palisades Boulevard. 3. CONSIDERATION of RESOLUTION 2016-32, approving an Arizona State Purchasing Cooperative Agreement with the State of Arizona to purchase commodities or services. 4. CONSIDERATION of approving a SPECIAL EVENT LIQUOR LICENSE APPLICATION for the Kiwanis Club of Sunset Fountain Hills (Margaret Ziefert) for the promotion of a fundraiser to be held along the Avenue of the Fountains, in conjunction with the Fountain Hills Art and Wine Affaire, from 10:00 AM to 5:00 PM daily, from Friday, March 24 through Sunday, March 26, 2017. 5. CONSIDERATION of RESOLUTION 2016-35, abandoning whatever right, title, or interest it has in the "No Vehicular Access" easement at a portion of the street side of Plat 203, Block 9, Lot 1. Fountain Hills, Arizona, as recorded in the Office of the County Recorder of Maricopa County, Arizona, recorded in Book 149 of Maps, Page 29. 6. CONSIDERATION of approving BUDGET TRANSFERS of $4,076.14 for the Prop. 202 Fort McDowell Yavapai Nation Grant Award to the Tourism Fund (TOURAD) and for $5,000.00 for the Prop 202 Salt River Pima Indian Community Grant Award to the Tourism Fund from the Special Revenue Fund. REGULAR AGENDA 7. CONSIDERATION of APPOINTING four (4) citizens to serve on the Strategic Planning Advisory Commission for a two-year term beginning on November 6, 2016 and ending on November 5, 2018. 8. CONSIDERATION of RESOLUTION 2016-28, declaring as a public record that certain document filed with the Town Clerk and entitled, "The November 3, 2016 Zoning Ordinance Amendments Relating To Site Plan Approval". 9. PUBLIC HEARING regarding ORDINANCE 16-11, amending the Fountain Hills Zoning Ordinance, Chapters 2 (Procedures), 12 (Commercial Zoning Districts), 13 (Industrial Zoning Districts), 17 (Wireless Telecommunications Towers and Antennas),18 (Town Center Commercial Zoning District), 19 (Architectural Review Guidelines), and 23 (Planned Area Development District) by adopting by reference that certain document known as "The November 3, 2016, Zoning Ordinance Amendments Relating To Administrative Site Plan Approval." Case #Z 2016-07 z:\council packets\2016\r161103\161103a.docx Last Printed: 10/31/2016 8:48 AM Page 3 of 4 10. CONSIDERATION of ORDINANCE 16-11, amending the Fountain Hills Zoning Ordinance, Chapters 2 (Procedures), 12 (Commercial Zoning Districts), 13 (Industrial Zoning Districts), 17 (Wireless Telecommunications Towers and Antennas),18 (Town Center Commercial Zoning District), 19 (Architectural Review Guidelines), and 23 (Planned Area Development District) by adopting by reference that certain document known as "The November 3, 2016, Zoning Ordinance Amendments Relating To Administrative Site Plan Approval." Case #Z 2016-07 11. CONSIDERATION of RESOLUTION 2016-22, declaring as a public record that certain document filed with the Town Clerk and entitled the "Town of Fountain Hills, Zoning Ordinance Amendments relating to Outdoor Lighting, November 3, 2016." 12. PUBLIC HEARING of ORDINANCE 16-03, amending the Fountain Hills Zoning Ordinance, Chapters 1 (Introduction), 6 (Sign Regulations), and 8 (Outdoor Lighting Control) by adopting by reference that certain document know as the "Town of Fountain Hills Zoning Ordinance Amendments Relating To Outdoor Lighting, November 3, 2016." Case #Z2016-01 13. CONSIDERATION of ORDINANCE 16-03, amending the Fountain Hills Zoning Ordinance, Chapters 1 (Introduction), 6 (Sign Regulations), and 8 (Outdoor Lighting Control) by adopting by reference that certain document know as the "Town of Fountain Hills Zoning Ordinance Amendments Relating To Outdoor Lighting, November 3, 2016." Case #Z2016-01 14. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 15. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 16. ADJOURNMENT. DATED this 27th day of October, 2016. Bevelyn J. Sendd, 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\2016\rl61103\161103a.docx Last Printed: 10/31/2016 8:48 AM Page 4 of 4 �t �n o� r MW mw - 'yiz,1h8f 18 ve�� �QwJ li! REVISED NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE Councilmember Dennis Brown Vice Mayor Nick DePorter Councilmember Cassie Hansen FOUNTAIN HILLS TOWN COUNCIL Mayor Linda M. Kavanagh Councilmember Henry Leger Councilmember Alan Magazine Councilmember Cecil A. Yates TIME: 5:30 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 3, 2016 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. zAcouncil packets\2016\rl61103\161103a.docx Last Printed: 10/31/2016 10:33 AM Page] 44 EXECUTIVE SESSION AGENDA CALL TO ORDER — Mayor Linda M. Kavanagh ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S. §38-431.03(A)(3), for discussion or consultation for legal advice with the attorney or attorneys of the public body (Specifically, regarding amendments to zoning ordinance). 2. ADJOURNMENT. REGULAR SESSION AGENDA CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Linda M. Kavanagh INVOCATION — Mojgan Talaei, member of the Baha'i Faith Community ROLL CALL — Mayor Linda M. Kavanagh MAYOR'S REPORT i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) Mayor Kavanagh may review RECENT EVENTS attended relating to Economic Development. ii) PRESENTATION of the financial audit reports, including the Comprehensive Annual Financial Report (CAFR), for the year ended June 30, 2016, by Jennifer Shields, Partner, and Joshua Jumper, Audit Manager, with Heinfeld, Meech & Co., P.C. iii) QUARTERLY BUDGET REPORT presented by the Finance Director for the first quarter year ending September 2016. 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. z:\council packets\2016\r161103\161103a.docx Last Printed: 10/31/2016 10:33 AM Page 2 of 4 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from October 20, 2016. 2. CONSIDERATION of approving CONTRACT C2017-066 with The Garden Gnome, LLC dba The Pond Gnome, in the amount of $99,729.00, for emergency repairs and pump replacement for the water feature located at the northeast corner of Shea Boulevard and Palisades Boulevard. 3. CONSIDERATION of RESOLUTION 2016-32, approving an Arizona State Purchasing Cooperative Agreement with the State of Arizona to purchase commodities or services. 4. CONSIDERATION of approving a SPECIAL EVENT LIQUOR LICENSE APPLICATION for the Kiwanis Club of Sunset Fountain Hills (Margaret Ziefert) for the promotion of a fundraiser to be held along the Avenue of the Fountains, in conjunction with the Fountain Hills Art and Wine Affaire, from 10:00 AM to 5:00 PM daily, from Friday, March 24 through Sunday, March 26, 2017. 5. CONSIDERATION of RESOLUTION 2016-35, abandoning whatever right, title, or interest it has in the "No Vehicular Access" easement at a portion of the street side of Plat 203, Block 9, Lot 1. Fountain Hills, Arizona, as recorded in the Office of the County Recorder of Maricopa County, Arizona, recorded in Book 149 of Maps, Page 29. 6. CONSIDERATION of approving BUDGET TRANSFERS of $4,076.14 for the Prop. 202 Fort McDowell Yavapai Nation Grant Award to the Tourism Fund (TOURAD) and for $5,000.00 for the Prop 202 Salt River Pima Indian Community Grant Award to the Tourism Fund from the Special Revenue Fund. REGULAR AGENDA 7. CONSIDERATION of APPOINTING four (4) citizens to serve on the Strategic Planning Advisory Commission for a two-year term beginning on November 6, 2016 and ending on November 5, 2018. 8. CONSIDERATION of RESOLUTION 2016-28, declaring as a public record that certain document filed with the Town Clerk and entitled, "The November 3, 2016 Zoning Ordinance Amendments Relating To Site Plan Approval". 9. PUBLIC HEARING regarding ORDINANCE 16-11, amending the Fountain Hills Zoning Ordinance, Chapters 2 (Procedures), 12 (Commercial Zoning Districts), 13 (Industrial Zoning Districts), 17 (Wireless Telecommunications Towers and Antennas),18 (Town Center Commercial Zoning District), 19 (Architectural Review Guidelines), and 23 (Planned Area Development District) by adopting by reference that certain document known as "The November 3, 2016, Zoning Ordinance Amendments Relating To Administrative Site Plan Approval." Case #Z 2016-07 zAcouncil packets\2016\r161103\161103a.docx Last Printed: 10/31/2016 10:33 AM Page 3 of 4 10. CONSIDERATION of ORDINANCE 16-11, amending the Fountain Hills Zoning Ordinance, Chapters 2 (Procedures), 12 (Commercial Zoning Districts), 13 (Industrial Zoning Districts), 17 (Wireless Telecommunications Towers and Antennas),18 (Town Center Commercial Zoning District), 19 (Architectural Review Guidelines), and 23 (Planned Area Development District) by adopting by reference that certain document known as "The November 3, 2016, Zoning Ordinance Amendments Relating To Administrative Site Plan Approval." Case #Z 2016-07 11. CONSIDERATION of RESOLUTION 2016-22, declaring as a public record that certain document filed with the Town Clerk and entitled the "Town of Fountain Hills, Zoning Ordinance Amendments relating to Outdoor Lighting, November 3, 2016." 12. PUBLIC HEARING of ORDINANCE 16-03, amending the Fountain Hills Zoning Ordinance, Chapters 1 (Introduction), 6 (Sign Regulations), and 8 (Outdoor Lighting Control) by adopting by reference that certain document know as the "Town of Fountain Hills Zoning Ordinance Amendments Relating To Outdoor Lighting, November 3, 2016." Case #Z2016-01 13. CONSIDERATION of ORDINANCE 16-03, amending the Fountain Hills Zoning Ordinance, Chapters 1 (Introduction), 6 (Sign Regulations), and 8 (Outdoor Lighting Control) by adopting by reference that certain document know as the "Town of Fountain Hills Zoning Ordinance Amendments Relating To Outdoor Lighting, November 3, 2016." Case #Z2016-01 14. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a fixture agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 15. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 16. ADJOURNMENT. DATED this 27th day of October, 2016. Bevelyn J. Sendd, 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. zAcouncil packets\2016\rl61103\161103a.docx Last Printed: 10/31/2016 10:33 AM Page 4 of 4 HeinfeldMeech Tucson • Phoenix • Flagstaff HeinfeldMeech.com Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the Town Council Town of Fountain Hills, Arizona We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated October 17, 2016. Our report included an emphasis of matter paragraph as to comparability because of the implementation of Governmental Accounting Standards Board Statement No. 72. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Town of Fountain Hills, Arizona's internal control over financial reporting (internal control) to determine the 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 Town of Fountain Hills, Arizona's internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Fountain Hills, Arizona's internal control. 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 combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Town of Fountain Hills, Arizona's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 1 �. f T Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 17, 2016 Town of Fountain Hills, Arizona Management Letter Year Ended June 30, 2016 HeinfeldMeech Tucson Phoenix Flagstaff HeinfeldMeech.com Honorable Mayor and Members of the Town Council Town of Fountain Hills, Arizona Members of the Council: In planning and conducting our audit of the financial statements of Town of Fountain Hills, Arizona for the year ended June 30, 2016, we performed the following as required by Government Auditing Standards (GAS): Considered the Town's internal control over financial reporting. Tested compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the Town's financial statements. Any audit findings that are required to be reported by GAS have been included in the Town's Report on Audit of Financial Statements and Report on Internal Control and on Compliance for the year ended June 30, 2016. Our audit disclosed opportunities for strengthening internal controls. Management should address these items to ensure that it fulfills its responsibility to establish and maintain adequate internal controls and comply with laws, regulations, contracts, and grant agreements. Those items and our related recommendations are briefly described in the accompanying summary. This information is intended for the Town of Fountain Hills, Arizona's Council and is not intended to be and should not be used by anyone other than the specified party. However, this information is a matter of public record, and its distribution is not limited. We have already discussed these items and suggestions with Town personnel and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. Sincerely, Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 17, 2016 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT LETTER YEAR ENDED JUNE 30, 2016 BUILDING PERMIT FEES We tested fifteen building permits issued during the fiscal year and found one file where the fees in the computerized system did not agree with the manual building permit file. Although management performs a review of all construction permits for single family, multi -family and commercial properties, the Town does not require a review for smaller transactions related to permits such as fencing, signage, demolition, etc. We recommend the Town develop internal control procedures that require an employee to reconcile all of the manual building permit files to the computerized system to ensure accuracy of the calculations and to determine all required information is included in the computerized records. Management's Response The Town agrees with your recommendation and the Building Safety Division has been directed to do the following: 1. The permit technician will enter data taken from the construction drawings into MUNIS. 2. Building Safety staff will implement the same review procedures as are currently in place for larger projects for all permit transactions; i.e., during the plan review process, the plans examiner will check the data entered into the building permit file against what was entered into MUNIS to ensure the data were entered correctly and matches exactly. 3. There is to be no more rounding of numbers at all. Only actual square footage and length measurements are to be used. 4. The Building Permit records beginning July 1, 2016, through the present are all to be reviewed so that any additional discrepancies that may have been missed may be identified and, if possible, rectified. Page 2 Town of Fountain Hills, Arizona 'Comprehensive Annual Financial Report Foor the Fiscal Year Ended June 30, 2016 -4kow-W Fj' AIO TOWN OF FOUNTAIN HILLS, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 Issued by: Administration Department Finance Division TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS INTRODUCTORY SECTION Page Letters of Transmittal 1 List of Principal Officials 12 GFOA Certificate of Achievement 13 Organizational Chart 14 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 17 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 21 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Position 34 Statement of Activities 35 Fund Financial Statements: Balance Sheet — Governmental Funds 38 Reconciliation of the Balance Sheet — Governmental Funds to the Statement of Net Position 41 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds to the Statement of Activities 44 Notes to Financial Statements 45 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS FINANCIAL SECTION Page REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues Expenditures and Changes in Fund Balances — Budget and Actual: General Fund 68 Highway User Revenue Fund 69 Grants Fund 70 Note to Required Supplementary Information 71 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Special Revenue Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 80 Debt Service Funds: Combining Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 86 Capital Projects Fund: Combining Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 90 STATISTICAL SECTION Financial Trends: Net Position by Component Changes in Net Position 94 •e TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS STATISTICAL SECTION Page Financial Trends: Fund Balances — Governmental Funds 98 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 100 Revenue Capacity: Governmental Activities — Tax Revenues by Source 102 Assessed Value and Estimated Actual Value of Taxable Property 103 Principal Property Taxpayers 104 Property Tax Levies and Collections 105 Taxable Sales by Category 106 Direct and Overlapping Sales Tax Rates 108 Debt Capacity: Ratios of Outstanding Debt by Type 109 Ratios of General Bonded Debt Outstanding 110 Direct and Overlapping Governmental Activities Debt 111 Legal Debt Margin Information 112 Calculation of Legal Debt Margin 114 Revenue Bond Coverage 115 Demographic and Economic Information: Demographic and Economic Statistics 116 Principal Employers 118 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS STATISTICAL SECTION Operating Information: Page Authorized Full -Time Equivalent Government Employees by Function 119 Operating Indicators by Function 120 Capital Assets Statistics by Function 122 (This page intentionally left blank) INTRODUCTORY SECTION (This page intentionally left blank) z Town of FC3LTNTi�IN HILLS October 17, 2016 To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Fountain Hills: State law requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the Town of Fountain Hills (Town) for the fiscal year ended June 30, 2016. This report consists of management's representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Town has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Fountain Hills's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the Town's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town's financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town for the fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town's financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor's report is presented as the first component of the financial section of this report. 16705 E. Avenue of the Bmintains — Fountain H 11 c, Arizom 85268— (480) 816-5100 -Fax (480) 837-3145 Accounting principles generally accepted in the Unites States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Fountain Hills's MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE GOVERNMENT The Town of Fountain Hills is a master planned community established in 1970 by McCulloch Properties (now MCO Properties, Inc.). Prior to 1970, the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. The land was purchased by Robert McCulloch in the late 1960s and the community designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and Scottsdale on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima-Maricopa Indian Community on the south, and by the McDowell Mountain Regional Park on the north. The elevation is 1,520 feet at the fountain, 3,000 feet on Golden Eagle Boulevard, and is approximately 500 feet above Phoenix. Over the past twenty plus years, Fountain Hills has grown from 10,190 residents to a town of 22,489 in 2010. On June 5, 2006, the Town of Fountain Hills became twenty square miles and about ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State Trust Land occurred over a two and one-half year period and development of the land will occur over the next decade. Annexing this property into the Town ensures that its future development will be of the highest quality under such Town standards as the cut -and -fill ordinance and strict zoning regulations. The Town offers a wide range of living accommodations, from small condominium complexes to large custom homes. Fountain Hills also offers recreational and cultural programs and services that contribute to a high quality of life for its residents. The community consists of primarily residential property and open space; of the total 20.32 square miles of land only 0.7% of the total is zoned commercial and/or industrial, 23.3% is preserved as open space and 51.1% is residential. Page 2 The Town's Mission Statement The Town of Fountain Hills' purpose is to serve the best interests of the community by: • providing for its safety and well-being; • respecting its special, small-town character and quality of life; • providing superior public services; • sustaining the public trust through open and responsive government; • and maintaining the stewardship and preservation of its financial and natural resources. To serve, respect, and provide trust and stewardship. Fountain Hills Town Hall The Town of Fountain Hills is an Arizona Municipal Corporation, acting as a general law town as prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989, with the governmental and administrative affairs of the Town operating under the Council - Manager form of government. Legislative authority is vested in a seven member Town Council. The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town Council meetings. The members of the Council are elected at large and serve four year overlapping terms. The Town Council is responsible for the adoption of local ordinances, budget adoption, appointment of residents to citizen advisory committees and hiring the Town Manager. The Town Manager is responsible for implementation of the policies of the Town Council and overall management of the Town through department directors and approximately 52 FTE employees. The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town Council. The Town provides or administers a full range of services including public safety (law enforcement, fire, animal control); development services (code enforcement, planning, building inspection, zoning and public works); construction and maintenance of streets and infrastructure, municipal court, recreational activities, community center, senior services and cultural events. The Town does not maintain utility or other operations that require the establishment of enterprise funds. Page 3 The financial reporting entity (the Town) includes all the funds of the primary government (i.e., the Town of Fountain Hills as legally defined) as well as all of its component units. The component units consist of legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Cottonwoods Maintenance District, the Eagle Mountain Community Facilities District and the Fountain Hills Municipal Property Corporation are included in the financial report of the Town. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town of Fountain Hills operates. Internal Controls. As earlier noted, the management of the Town of Fountain Hills, Arizona, is responsible for establishing and maintaining a system of internal control. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding; 1) Safeguarding of assets against loss from unauthorized use or deposition, and 2) Reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes: 1) The cost of a control should not exceed the benefits likely to be derived, and 2) The valuation of costs and benefits requires estimates and judgments by management. The system of internal control is subject to periodic evaluation by management and is also considered by the independent auditors in connection with the annual audit of the Town's financial statements. All internal control evaluations occur within the above framework. The Town's internal accounting controls are considered to adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Controls. The budget process is a cyclical process and begins each year with the preparation of the base budget by each department head. Each budget is based on expenditures to date and the previous years' experience. The departments' base budgets, along with any requests for new positions, programs or services are reviewed by the Town Manager. The Town Manager then meets with department heads to review their base budgets and requests for new services and/or programs. Once management has reviewed the departments' requests, a tentative budget is presented to the Town Council by the Town Manager. The Town Council formally adopts the budget and appropriates funding from the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Therefore, these funds have appropriated budgets, and budget to actual information is presented. On or before the second Town Council meeting in April, the Town Manager submits to the Town Council a proposed budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them. The Town Council is then required to hold public hearings on the proposed budget and to adopt a final budget by June 30, the close of the Town of Fountain Hills' fiscal year. The budget is legally enacted through passage of a resolution and is prepared by fund and department. The resolution sets the limit for expenditures Page 4 during the fiscal year. The Town Manager may authorize transfers from and within personnel and from operating capital to services or supplies within a department. Additional expenditures may be authorized for expenditures directly necessitated by a natural or man-made disaster as prescribed in the State Constitution, Article IX, Section 20. The Town is subject to the State of Arizona's Spending Limitation Law for Towns and Cities. This law does not permit the Town to spend more than budgeted revenues plus the carry-over of unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the combined funds. All appropriations lapse at year-end requiring actual fund balances to be re - budgeted each fiscal year. To ensure compliance with the state imposed expenditure limitation, a uniform expenditure report must be filed with the state each year. This report reconciles total Town expenditures from the audited financial statements to total expenditures for reporting in accordance with the state's uniform expenditure reporting system (ARS Section 41-1279.07). Public hearings on the budget are held each year in accordance with legal requirements in order to obtain comments from local taxpayers. The appropriated budget is prepared by fund, function/program (e.g., public safety), and department (e.g., police). Department heads may make transfers of appropriations within the department. Transfers of appropriations between departments, however, require Town Council approval. Budget -to -actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Budget -to -actual comparisons for the General Fund and Major Special Revenue Funds are presented in the Required Supplementary Information Other Than MD&A and all other funds are presented in Other Information — Fund Schedules. Local Economy. The Town of Fountain Hills, Arizona, continues to face many issues during these slow growth economic times. Its citizens, governing body, and municipal government are committed to finding solutions for each of the issues. In order to address these issues, the Town has proposed a baseline budget requiring any new positions to be deemed mission critical. All vacancies will be evaluated to access the need for replacement, elimination or modification to the job description. The Town will be closely monitoring its revenue sources and make adjustments accordingly. The Great Recession appears to be recovering modestly in Fountain Hills; this recovery is indicated by the local sales tax receipts in the construction category. Construction activity has increased 3% over the prior year which we interpret as a leading indicator of a recovering economy. The Town of Fountain Hills' local tax revenue base consists of two major tax categories, the most significant being wholesale/retail sales and transportation/ communication/utilities (construction had been a third significant category in prior years). The chart below is a look at the past five years' significant local sales tax activity by sector: Page 5 Fountain F l ills 2.6% Sn lcs Ta x Activity by Scctlw - FV 11-12 thru $4.5 $4.0 $3.5 $3.0 0 52.5 j $2.0 $1.5 -11 $ l.d 50.5 Construction TransportationlU6l Whulesale/Reta Restaurant/liars *FYII-12-IN12-13 FY13-14 1Y14-15uFY15-1 As can be seen in the chart, sales tax collections continue to show signs of moderate growth. Retail sales experienced a 5.8% increase over the prior year; restaurantibar revenues have exceeded any prior year and an increase of 2.1% from FY14-15. Construction sales tax, a one- time revenue source, is driven entirely by development activity in the community and increased 3.4% over the prior year; recent building permit activity indicates that construction sales tax is likely to increase over the next years. Transportation/communication/utilities tax revenues also posted an increase of 4.0%. Construction activity provides revenue to the Town through local sales tax, the proceeds of which are utilized for general operations and capital expenditures. Without the resources to fund capital projects, the Town must find additional funds to pay for necessary infrastructure projects. For operating costs, the Town is dependent upon state shared revenues and local sales tax as a major source of operating revenue, accounting for 84% of total General Fund revenue for fiscal year 2015-16. State shared revenues are derived as a proportionate share of state sales, income and vehicle license taxes which are distributed based on the Town's population compared to all other incorporated cities and towns in Arizona (currently 0.45%). State shared income tax revenue category is based on two years prior personal and corporate earnings; revenue from the State income tax increased by 3.7% in FY15-16. After decreases in State sales tax from FY08-09 through FY11-12, this revenue declined by 0.5% in FY15-16 compared to the prior year. Other local activity has remained fairly level during the recessionary period due to the lack of major retailers (the Town has three grocery stores and one major retailer). Fountain Hills is past the historic period of rapid growth and the long-term economic outlook for the Town must recognize this fact. The opportunity to further expand the retail tax base in Fountain Hills is limited by the lack of available commercial land — over 75% of the currently available commercial lots are already developed. Page 6 Development Activity over the past year: Development Services has been involved with the following development activities during fiscal year 2015-16 (7/1/2015 — 6/30/2016): Four Concept Plans were approved by the Planning & Zoning Commission during the period: Desert Vista storage Park Place Copper Ridge Golf School extension at Sunridge Canyon Golf Course Four Special Use Permits were granted. One Temporary Use Permits were issued during the period. Ten Temporary Visitor Permits were issued. Forty-two new Single -Family Residential Building Permits were issued. There were eight new Commercial Building Permits issued. There were sixteen commercial tenant improvement permits issued during the last fiscal year. A summary of the activity, by month, is shown below: Fiscal year SFR DUPIMULTI T.I. & Comm Pools, Fences & Other Add Ons (Not Garages Garages & Carports MONTH TOTAL Bldgs. Total Units Permits Issued JULY 3 0 0 3 1 21 4 0 29 AUGUST 2 0 0 2 3 20 3 2 30 SEPTEMBER 4 1 2 5 2 23 4 0 34 OCTOBER 2 1 2 3 5 17 3 0 28 NOVEMBER 3 0 0 3 1 15 5 0 24 DECEMBER 1 1 2 2 3 19 5 2 31 JANUARY 5 0 0 5 0 24 0 0 29 FEBRUARY 2 0 0 2 1 18 2 0 23 MARCH 5 0 0 5 2 33 2 1 43 APRIL 4 0 0 4 3 29 5 0 41 MAY 3 0 0 3 1 31 3 2 40 JUNE 5 0 0 5 2 42 3 1 53 YEARLY TOTAL 39 3 6 42 24 292 39 8 405 Page 7 Economic Outlook. Retail Sales — Not having a property tax, the Town of Fountain Hills relies heavily on Town transaction privilege tax (TPT), sometimes called a sales tax. Overall, Town TPT revenues provide over 50% of the General Fund revenues. The Town's TPT rate is currently at 2.6%. The construction TPT is equally divided between the General Fund and the Capital Projects Fund. State Shared Revenues — The Town of Fountain Hills receives significant revenue allocations from the State. These "State Shared Revenues" include allocations of the state -collected income tax, sales tax, fuel tax and motor vehicle -in -lieu taxes. All but the fuel tax is placed in the Town's General Fund, where it is used to sustain a large portion of the Town's day-to-day activities. These revenue sources have improved recently with the economy showing signs of recovery. Highway User Revenue Fund (HURF) — The state shared fuel tax, as it is often called, is placed in this fund to be used specifically for street maintenance and related activity. In recent years, the state legislature has reduced the formula distribution of state -shared revenues to cities. The state shared revenue formulas generally allocate revenues based on official census data. (Last census: Year 2010). Long-term Financial Planning. Fountain Hills' Financial Policies are balanced on sound financial reserves and conservative revenue growth forecasts for the foreseeable future. Potential for State legislative impacts to revenue-sharing or local revenues and additional demands for essential Town services remain. The Town's financial policies set forth guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated. The Town's Financial Policies have helped weather the slow economic recovery. This policy continues to require the Town to internally restrict an amount equal to 20% of the average actual General Fund revenues for the preceding five fiscal years as part of its General Fund balance. This amount is estimated to be about 60 days of expenditures coverage and is considered a "Rainy Day" fund. Additionally, a reserve of 10% of the average actual General Fund revenues for the preceding five fiscal years is set aside for "pay-as-you-go" capital replacement expenditures, vehicle or equipment replacement, capital projects, prepaying or defeasing existing Town debt, or any other expenditure that is non-recurring in nature. The Council also adopted Financial Policies that include guidelines for the issuance of debt for capital expenditures, community facility districts, financing alternatives, expenditure controls and financial planning. The policy was amended during FY 09-10 to reduce the allocation of the local construction sales tax to the Capital Projects Fund from 85% to 50%, reflecting the transition from one-time building activity to ongoing redevelopment activity. The debt policy was prepared with a preference for "pay-as-you-go" financing for capital spending, however, the policy did not anticipate the lack of funding for capital projects and bond funding is being reconsidered. Page 8 In early 2009, the Strategic Planning Advisory Commission began the process of gathering public input to update the Strategic Plan's vision, confirm residents' values, and create a fresh structure for the Strategic Plan revision. Subsequently, Strategic Plan 2010 was built upon the foundation of a clearly defined vision statement and eight key values, with specific indicators to evaluate Council and staff priorities. Based on citizen input, the Strategic Plan is designed to guide our future decisions grounded on these common values: 1. Civility 2. Civic Responsibility 3. Environmental Stewardship 4. Economic Vitality 5. Education, Learning and Culture 6. Maintain and Improve Community Infrastructure 7. Public Safety, Health and Welfare 8. Recreational Opportunities and Amenities These values guide the Town's annual budget process. The Strategic Planning Advisory Commission is currently in the process of preparing an update to the Plan. MAJOR INITIATIVES AND SERVICE EFFORTS AND ACCOMPLISHMENTS The Town of Fountain Hills' adopted FY15-16 budget reflected the continued recession in the local economy, which is also somewhat mirrored at the national and state levels. Due to the challenging current economic conditions, the Town has made significant reductions in staff and service levels. This reduction was accomplished by a thorough assessment of all existing and proposed programs and workload; as a result, Town staffing was reduced from 115 to 54 FTE's (full time equivalents) over the past years. The Town Council established priorities for FY15-16 of which the top two are Economic Development and Pavement Management. In order to implement the Pavement Management program, the Council approved the use of Vehicle License Tax revenues to be dedicated to annual pavement maintenance with an effective date of July 1, 2013. Economic Development initiatives are funded through a new dedicated local sales tax which provides funding for business attraction, retention and expansion. During FY14-15, the Town embarked on two major street reconstruction projects. First was the Shea Boulevard widening project, a Maricopa Association of Governments (MAG) Proposition 400 project which provided 70% of the project funding with a 30% match from the Town. Shea Boulevard is a road of regional significance and has an average traffic volume of 25,000 vehicles per day at Saguaro Boulevard. And the second project was the Saguaro Boulevard Reconstruction. Saguaro Boulevard was one of the first streets constructed in Fountain Hills and is a major truck route. This reconstruction is the first major work performed on the street. Bonds totaling $7,565,000 were issued by the Town to fund this project. Both of these projects are now completed. Page 9 For the Year. The following depicts the continued commitment of the Town of Fountain Hills to make the community a better place to live. Fiscal year 2015-16 goals attained are summarized within this list of accomplishments: • Initiation of Ashbrook Wash channelization improvements — Bayfield to Del Cambre • Approval of Fire Station 2 relocation • Completion of Fountain Park Phase 6 improvements • Completion of Shea Boulevard widening • Completion of Saguaro Boulevard reconstruction • Upgrades to traffic signal at Palisades & Saguaro Boulevards • Added several new monthly and special educational programs, workshops and support groups at the Community Center • New public art installed: Thomas Jefferson, George Washington, Gone But Not Forgotten, and So Good to See You. • East Loop Sonoran Trail in the Preserve was approved by Council and construction has begun. • Rotary Harmony Musical Playground was approved by Council for construction at Fountain Park. • Installation of pathway lighting in Fountain Park • Installation of new tot playground and canopy in conjunction with the Kiwanis Club • APRA (Arizona Parks & Recreation Association) Outstanding Program recognition for Slide the City • Awarded Playful City USA for 6th time • Successfully executed Presidential campaign rally (Donald Trump) • Bronze award for Best Company Image/Logo from IFEA (International Festival and Events Association) • Gold Award for Best Advertising Series from IFEA (International Festival and Events Association) • Secured grant funding from the Arizona Office of Tourism - Proposition 302 • Secured grant funding from Salt River Pima Indian Community - Proposition 202 AWARDS AND ACKNOWLEDGEMENTS Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Fountain Hills for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2015. This was the twentieth consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, the Town published an easily readable and efficiently organized CAFR. This report satisfied both accounting principles generally accepted in the United States of America (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement program's requirements and we are submitting it to the GFOA to determine its eligibility for the fiscal year ended 2016 Certificate. For the fourth year, The Town was also given the Award for Outstanding Achievement in Popular Annual Financial Reporting for the fiscal year ended June 30, 2015. Page 10 In addition, the government received the GFOA's Distinguished Budget Presentation Award for its annual budget for the fiscal year beginning July 1, 2014. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. This is the fourteenth consecutive year that the Town has received the award. An investment policy was adopted and was awarded the Investment Policy Certification from the Association of Public Treasurers of United States and Canada. Acknowledgments. The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of the entire team of the Finance Division. I also wish to extend my appreciation to the Mayor and members of Town Council for their leadership and support in planning and conducting the financial affairs of the Town in a responsible and progressive manner. Each employee of the Town has my sincere appreciation for the contributions made in the preparation of this report. Respectfully submitted, Grady E. Miller Town Manager Page 11 TOWN OF FOUNTAIN HILLS, ARIZONA LIST OF PRINCIPAL OFFICIALS JUNE 30, 2016 ELECTED OFFICIALS Linda M. Kavanagh, Mayor Cecil A. Yates, Vice -Mayor Nick DePorter, Councilmember Cassie Hansen, Councilmember Henry Leger, Councilmember Alan Magazine, Councilmember Dennis Brown, Councilmember DEPARTMENT DIRECTORS Grady Miller, Town Manager Craig Rudolphy, Finance Director Robert Melton, Presiding Judge Mark Mayer, Community Services Director Paul Mood, Development Services Director Captain Dave Ott, Rural Metro Corporation, Fire Chief Captain David Letourneau, Maricopa County Sheriff's Office, District Commander Mark Iacovino, The Law Office of Mark Iacovino, Town Prosecutor Andrew McGuire, Gust Rosenfeld, P.L.C., Town Attorney Page 12 N kk Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Fountain Hills Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 Executive Director/CEO Page 13 Presiding Judge Fire / EMS Citizens of Fountain Hills Mayor and Town Council Executive Assistant Town Prosecutor IIIIIIIIIIIIQi Town Manager Town Attorney Community Development Administration■ Law Enforcement Services Services Parks Streets/ Finance/I.T. Fleet Recreation Engineering/GIS Administrative Services Community Planning/ Center Code Enforcement Senior Town Clerk Services Building Safety Appointed Valunteer Program by Council Facilities Contracted Economic Development FINANCIAL SECTION Page 15 (This page intentionally left blank) Page 16 HeinfeldMeech INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the Town Council Town of Fountain Hills, Arizona Tucson • Phoenix • Flagstaff HeinfeldMeech.com Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Fountain Hills, Arizona, as of June 30, 2016, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 1, the Town implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, for the year ended June 30, 2016, which represents a change in accounting principle. Our opinion is not modified with respect to this matter. Page 17 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2016, on our consideration of Town of Fountain Hills, Arizona's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Fountain Hills, Arizona's internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 17, 2016 Page 18 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) Page 19 (This page intentionally left blank) Page 20 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 As management of the Town of Fountain Hills, Arizona (Town), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2016. This discussion and analysis is intended to be an easily readable breakdown of the Town of Fountain Hills' financial activities based on currently known facts, decisions and conditions. This analysis focuses on current year activities and operations and should be read in combination with the transmittal letter and the financial statements that follow. The management's discussion and analysis is presented as required supplementary information to supplement the basic financial statements. FINANCIAL HIGHLIGHTS • The Town's total net position of governmental activities increased $593.5 thousand to $117.4 million, representing a .5 percent increase of the total net position. • General revenues from governmental activities accounted for $18.4 million in revenue, or 82.1 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $4.0 million or 17.9 percent of total governmental activities revenues. • The Town had $21.8 million in expenses related to governmental activities, an increase of 9.8 percent from the prior fiscal year primarily due to the pavement management program, increased public safety costs and increased expenses for street and park improvements. • Among major governmental funds, the General Fund had $14.7 million in current fiscal year revenues, which primarily consisted of taxes, charges for services and intergovernmental revenues. The total expenditures of the General Fund were $12.9 million. The General Fund's fund balance increased $1.5 million to $10.2 million at the end of the current fiscal year. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Page 21 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 OVERVIEW OF FINANCIAL STATEMENTS - continued Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the Town's finances, in a manner similar to a private -sector business. The accrual basis of accounting is used for the government -wide financial statements. The Statement of Net Position presents information on all of the Town's assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The Statement of Activities presents information showing how the Town's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). The government -wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the Town include general government, development services, public safety, streets and highways, and culture and recreation. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the Town are included in governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Town's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the Town's near-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Page 22 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 OVERVIEW OF FINANCIAL STATEMENTS - continued Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Highway Users Revenue (HURF), Grants, Capital Projects and all Debt Service Funds, all of which are considered to be major funds. Data from other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements and schedules. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town's budget process. The Town adopts an annual budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund and major Special Revenue Funds as required supplementary information. GOVERNMENT -WIDE FINANCIAL ANALYSIS While this document contains information about the funds used by the Town to provide services to our citizens, the Statement of Net Position and the Statement of Activities serve to provide an answer to the question of how the Town, as a whole, did financially throughout the year. These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting used by the private sector. The basis for this accounting takes into account all of the current year's revenues and expenses regardless of when the cash is received or paid. These two statements report the Town's assets and the changes in those assets. The change in assets is important because it tells the reader whether the financial position of the Town as a whole has improved or diminished. However, in evaluating the overall position of the Town, non-financial information such as changes in the Town's tax base and the condition of the Town's capital assets will also need to be evaluated. Analysis of Net Position. Net position may serve over time as a useful indicator of a government's financial position. In the case of the Town, governmental activities assets exceeded liabilities by $117.4 million at the current fiscal year end. Page 23 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 GOVERNMENT -WIDE FINANCIAL ANALYSIS - continued The largest portion of the Town's governmental activities net position reflects its investment in capital assets (e.g., land, infrastructure, buildings and improvements, vehicles, machinery and equipment and construction in progress), less any related outstanding debt used to acquire those assets. The Town uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related outstanding debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the Town's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance is unrestricted and may be used to meet the Town's ongoing obligations to its citizens and creditors. The following tables present a summary of the Town's net position for the fiscal years ended June 30, 2016 and June 30, 2015. Current and other assets Capital assets, net Total assets Current and other liabilities Long-term liabilities Total liabilities Net position Net investment in capital assets Restricted Unrestricted Total net position Governmental Activities As of As of June 30, 2016 June 30, 2015 $ 23,190,907 $ 30,103,343 106,661,659 105,252,111 129,852,566 135,355,454 4,025,377 8,416,454 12,441,831 95,647,990 4,530,239 17,232,506 $117,410,735 2,897,349 15,640,889 18,538,238 95,325,824 6,310,810 15,180,582 $116,817,216 At the end of the current fiscal year the Town reported positive balances in all three categories of net position for governmental activities. The Town reported positive balances in all net position categories in the prior fiscal year. Page 24 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 GOVERNMENT -WIDE FINANCIAL ANALYSIS - continued The Town's financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions that had an impact on the Statement of Net Position. • The addition of $1.4 million of governmental capital assets primarily through construction projects, infrastructure improvements and purchases of vehicles, machinery, and equipment. Changes in net position. The Town's total revenues for the current fiscal year were $22.4 million. The total cost of all programs and services was $21.8 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2016, and June 30, 2015. Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Sales taxes Franchise taxes State Shared revenue Vehicle License taxes Investment earnings Miscellaneous Total revenues Expenses General government Development services Public safety Streets and highways Culture and recreation Interest on long-term debt Total expenses Changes in net position Net position, beginning Net position, ending Governmental Activities Fiscal Year Ended June 30, 2016 $ 2,016,451 1,615,973 381,011 2,569,504 9,395,667 360,320 4,886,238 927,440 219,058 13,826 22,385,488 2,516,966 2,253,208 7,178,890 6,476,688 3,124,523 241,694 21,791,969 593,519 116,817,216 $ 117,410,735 Fiscal Year Ended June 30, 2015 $ 1,693,830 1,431,017 2,874,796 904,660 8,983,049 352,673 4,854,361 858,874 150,358 188,251 22,291,869 2,479,365 2,074,611 6,816,152 4,963,979 2,822,954 698,542 19,855,603 2,436,266 114,380,950 $ 116,817,216 Page 25 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 GOVERNMENT -WIDE FINANCIAL ANALYSIS - continued Sa Capital Conti 2% Governmental Activities Revenues Fiscal Year 2015-16 Property taxes 11% Franchisetaxes _2% contributions Chargesfor services Investment earnings 7% 9% 1% A revenue 9fO nsetaxes 4% The charts below compare the governmental expenses from fiscal years 2015-16 and 2014-15. 33% Fiscal Year 2015-16 Expenses _ _- 30% 12% ■ General government ■ Public safety ■ Culture and recreation ■ Development services Page 26 14"•3 1% ■ Highwaysand streets ■ Interest on long-term debt Fiscal Year 2014-15 Expenses 25% 14% 10% 4. 13% • General government ■ Public safety ■ Highways and streets • Cu[ture and recreation ■ Development services ■ Interest on long-term debt TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 GOVERNMENT -WIDE FINANCIAL ANALYSIS - continued The following items are significant current year transactions that have had an impact on the change of net position. • Fees, Fines and Charges for Services revenue increased 19.0% compared to the prior year due in large part to the collection of the new environmental fee. • Interest on long-term debt decreased 65.4% due to the refunding of old debt and reissuance of new bonds. • Public safety costs include contracts for police and fire; those contracts are multi-year with automatic increases. • Investment income increased in the current year 45.7% over the prior year. This increase was due to the realized gains on the Town's investment portfolio. • Overall expenses increased 9.8% due primarily to the pavement management program, which increased expenses in Highway and streets by 30.5%. The following table presents the cost of the Town's major functional activities. The table also shows each function's net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and Town's taxpayers by each of these functions. • The cost of all governmental activities this year was $21.8 million. • Federal, State, and county governments and charges for services subsidized certain governmental programs with charges for services of $2.0 million. • Net cost of governmental activities of $17.8 million was financed by general revenues, which are made up of primarily sales taxes of $9.4 million and State Shared revenues of $4.9 million. Page 27 Year Ended June 30, 2016 Year Ended June 30, 2015 Net Total (Expense)/ Total Net (Expense)/ Expenses Revenue Expenses Revenue Governmental Activities General government $ 2,516,966 $ (2,068,504) $ 2,479,365 $ 1,818,274 Development services 2,253,208 (995,716) 2,074,611 (2,074,611) Public safety 7,178,890 (7,087,802) 6,816,152 (6,758,976) Streets and highways 6,476,688 (4,816,682) 4,963,979 (3,568,151) Culture and recreation 3,124,523 (2,568,136) 2,822,954 (2,573,954) Interest on long-term debt 241,694 (241,694) 698,542 (698,542) Total expenses $21,791,969 $(17,778,534) $ 19,855,603 $ (13,855,960) • The cost of all governmental activities this year was $21.8 million. • Federal, State, and county governments and charges for services subsidized certain governmental programs with charges for services of $2.0 million. • Net cost of governmental activities of $17.8 million was financed by general revenues, which are made up of primarily sales taxes of $9.4 million and State Shared revenues of $4.9 million. Page 27 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 FINANCIAL ANALYSIS OF THE TOWN'S FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the Town's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town's net resources available for spending at the end of the fiscal year. The financial performance of the Town as a whole is reflected in its governmental funds. As the Town completed the year, its governmental funds reported a combined fund balance of $22.0 million, a decrease of $5.1 million due primarily to the increases in capital outlay expenditures related to reconstruction of Saguaro Boulevard and Shea Boulevard widening projects and Ashbrook Wash improvements. The General Fund comprises 46.4 percent of the total fund balance. Approximately $5.9 million or 57.3 percent of the General Fund's fund balance is unassigned. The General Fund is the principal operating fund of the Town. The fund balance increased by $1.5 million to $10.2 million as of fiscal year end. General Fund revenues increased $617,710 primarily due to increased sales taxes and permit revenues. General Fund expenditures increased $329,454. This increase was a result of increased public safety costs. The Highway User Revenue Fund comprises 7.5 percent of total fund balance. The fund balance decreased $112,048 from the prior year due to the increase in landscaping costs. The Capital Projects Fund comprises 24.8 percent of the total fund balance. All of the fund balance is assigned to capital projects. The fund balance decreased $5.5 million due to ongoing capital projects during the fiscal year. BUDGETARY HIGHLIGHTS Over the course of the year, the Town revised the General Fund annual expenditure budget primarily due to changes in the contingency amount. The difference between the original budget and the final amended budget was a $3,595 decrease, or .03 percent. A schedule showing the budget amounts compared to the Town's actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows: • The favorable variance of $721,209 in overall revenues is primarily due to higher than expected tax revenue, mostly attributable to the improving economy. • The favorable total expenditures variance of $788,946 includes all departments. Page 28 TOWN OF FOUNTAIN HILLS, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of the end of the current fiscal year, the Town had invested $106.7 million in governmental capital assets, including buildings, facilities, vehicles, computers, equipment, infrastructure assets and artwork. These amounts represent net increases prior to depreciation of $6.5 million from the prior fiscal year for governmental activities. The increases were primarily due to park and street improvements. Total depreciation expense for the current fiscal year was $5.1 million for governmental activities. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2016 and June 30, 2015. Capital assets — non -depreciable Capital assets — depreciable, net Total Governmental Activities As of As of June 30, 2016 June 30, 2015 $ 27,522,240 $ 29,930,540 79,139,419 75,321,571 $106,661,659 $105,252,111 The estimated construction commitments amount is $873,945. Additional information on the Town's capital assets can be found in Note 5. Debt Administration. At year-end, the Town had $10.7 million in governmental long-term debt outstanding with $2.7 million due within one year. Long-term debt decreased by $4.3 million for governmental activities. State statutes currently limit the amount of general obligation debt a Town may issue a percentage of its total assessed valuation for water, sewer, lights, open space preserves parks, playgrounds and recreational facilities. The current 20 percent debt limitation for the Town is $80.4 million. State statutes also currently limit the amount of general obligation debt a Town may issue to a percentage of its total assessed valuation for all other purposes. The current six percent debt limitation for the Town is $24.1 million. Additional information on the Town's long-term debt can be found in Notes 7 and 8 in the notes to the financial statements. CONTACTING THE TOWN'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the Town's finances and to demonstrate the Town's accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Division, Town of Fountain Hills, 16705 East Avenue of the Fountains, Fountain Hills, Arizona 85268 or visit our website at: www.fh.az.gov. Page 29 (This page intentionally left blank) Page 30 BASIC FINANCIAL STATEMENTS Page 31 (This page intentionally left blank) Page 32 GOVERNMENT -WIDE FINANCIAL STATEMENTS Page 33 TOWN OF FOUNTAIN HILLS, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2016 LIABILITIES Current liabilities: Accounts payable Governmental Accrued wages and benefits Activities ASSETS 13,829 Current assets: 10,999 Cash and investments $ 22,089,531 Accounts receivable 118,415 Intergovernmental receivable 785,556 Taxes receivable 75,984 Interest receivable 33,975 Inventory, at cost 9,272 Prepaid items 9,178 Cash and investments - restricted 68,996 Total current assets 23,190,907 Noncurrent assets: Capital assets not being depreciated 27,522,240 Capital assets, net of accumulated depreciation 79,139,419 Total noncurrent assets 106,661,659 Total assets 129,852,566 LIABILITIES Current liabilities: Accounts payable 784,899 Accrued wages and benefits 63,163 Other liabilities 13,829 Customer deposits 10,999 Compensated absences payable 244,653 Revenue bonds payable 370,000 General obligation bonds payable 2,305,000 Unearned revenues 232,834 Total current liabilities 4,025,377 Noncurrent liabilities: Non-current portion of long-term liabilities 8,416,454 Total noncurrent liabilities 8,416,454 Total liabilities 12,441,831 NET POSITION Net investment in capital assets 95,647,990 Restricted for: Streets and highways 1,380,800 Capital outlay 2,261,275 Debt service 888,164 Unrestricted 17,232,506 Total net position $ 117,410,735 The notes to the basic financial statements are an integral part of this statement. Page 34 TOWN OF FOUNTAIN HILLS, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 Net (Expense) Revenue and Changes in Net Program Revenues Position Operating Capital Grants Charges for Grants and and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Governmental activities: General government $ 2,516,966 $ 298,737 $ 77,101 $ 72,624 $ (2,068,504) Development services 2,253,208 1,257,492 Franchise taxes (995,716) Public safety 7,178,890 90,345 743 (7,087,802) Streets and highways 6,476,688 48,688 1,451,431 159,887 (4,816,682) Culture and recreation 3,124,523 321,189 86,698 148,500 (2,568,136) Interest on long-term debt 241,694 (241,694) Total governmental activities $ 21,791,969 $ 2,016,451 $ 1,615,973 $ 381,011 (17,778,534) General revenues: Taxes: Property taxes 2,569,504 Sales taxes 9,395,667 Franchise taxes 360,320 State sales & income tax revenue sharing - unrestricted 4,886,238 Vehicle license tax revenue sharing - unrestricted 927,440 Investment earnings 219,058 Miscellaneous 13,826 Total general revenues 18,372,053 Changes in net position 593,519 Net position, beginning of year 116,817,216 Net position, end of year $ 117,410,735 The notes to the basic financial statements are an integral part of this statement. Page 35 (This page intentionally left blank) Page 36 FUND FINANCIAL STATEMENTS Page 37 TOWN OF FOUNTAIN HILLS, ARIZONA BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2016 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and benefits Other liabilities Customer deposits Unearned revenues Total liabilities Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - other Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Page 38 $ 158,983 52,877 10,320 10,999 17,908 ��19113/I 19,799 19.799 13,395 2,652,357 1,701,086 5,853,806 10,220,644 Highway User Revenue $ 1,510,388 12,627 176,778 Grants $ 142,302 72,624 $ 1,699,793 $ 214,926 $ 42,652 $ 6,838 214,926 49,490 214,926 3,989 3,989 1,376,811 269,503 1,646,314 $ 10,491,530 $ 1,699,793 $ 214,926 The notes to the basic financial statements are an integral part of this statement. General ASSETS Cash and investments $ 9,779,326 Accounts receivable 104,888 Intergovernmental receivable 492,818 Taxes receivable 17,728 Interest receivable 14,379 Inventory, at cost 9,272 Prepaid items 4,123 Cash and investments - restricted 68,996 Total assets $ 10,491,530 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and benefits Other liabilities Customer deposits Unearned revenues Total liabilities Deferred inflows of resources: Unavailable revenues - property taxes Unavailable revenues - other Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Page 38 $ 158,983 52,877 10,320 10,999 17,908 ��19113/I 19,799 19.799 13,395 2,652,357 1,701,086 5,853,806 10,220,644 Highway User Revenue $ 1,510,388 12,627 176,778 Grants $ 142,302 72,624 $ 1,699,793 $ 214,926 $ 42,652 $ 6,838 214,926 49,490 214,926 3,989 3,989 1,376,811 269,503 1,646,314 $ 10,491,530 $ 1,699,793 $ 214,926 The notes to the basic financial statements are an integral part of this statement. Page 39 Municipal General Property Non -Major Total Obligation Debt Eagle Mountain Corporation Governmental Governmental Service Debt Service Debt Service Capital Projects Funds Funds $ 445,613 $ 72,412 $ 284,573 $ 5,986,276 $ 3,868,641 $ 22,089,531 900 118,415 27,320 1,815 14,201 785,556 51,079 7,177 75,984 13,238 6,358 33,975 9,272 5,055 9,178 68,996 $ 496,692 $ 79,589 $ 311,893 $ 6,001,329 $ 3,895,155 $ 23,190,907 $ $ $ 10 $ 533,697 $ 49,557 $ 784,899 3,448 63,163 3,349 160 13,829 10,999 232,834 10 537,046 53,165 1,105,724 23,355 2,851 26,206 23,788 23,355 2,851 49,994 5,055 18,450 473,337 76,738 311,883 2,261,273 4,500,042 1,366,083 4,018,440 5,464,283 209,579 7,644,451 5,853,806 473,337 76,738 311,883 5,464,283 3,841,990 22,035,189 $ 496,692 $ 79,589 $ 311,893 $ 6,001,329 $ 3,895,155 $ 23,190,907 Page 39 (This page intentionally left blank) Page 40 TOWN OF FOUNTAIN HILLS, ARIZONA RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2016 Total governmental fund balances Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Governmental capital assets $ 210,423,922 Less accumulated depreciation (103,762,263) Some receivables are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the funds. Property taxes 26,206 Other 23,788 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Compensated absences payable (322,438) Bonds payable (11,013,669) Net position of governmental activities The notes to the basic financial statements are an integral part of this statement. $ 22,035,189 106,661,659 49,994 (11,336,107) $ 117,410,735 Page 41 TOWN OF FOUNTAIN HILLS, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Franchise taxes Licenses and permits Leases and rents Intergovernmental Charges for services Other Fines and forfeitures Investment earnings Total revenues Expenditures: Current - General government Development services Public safety Streets and highways Culture and recreation Capital outlay Debt service - Principal retirement Interest on long-term debt Fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year, as restated Fund balances, end of year Page 42 Highway User General Revenue Grants 7,873,427 360,320 796,330 258,165 4,886,238 2,378,871 122,624 169,396 27,713 83,461 22,670 185,279 95,114 2,412 14,707,730 2,431,666 122,624 2,269,332 50,000 1,492,528 7,034,887 2,498,714 2,045,894 88,644 108,947 12,931,285 2,498,714 158,947 1,776,445 (67,048) (36,323) 36,323 (281,484) (45,000) (281,484) (45,000) 36,323 1,494,961 (112,048) 8,725,683 1,758,362 $ 10,220,644 $ 1,646,314 $ The notes to the basic financial statements are an integral part of this statement. General Obligation Debt Eagle Mountain Service Debt Service Municipal Property Corporation Debt Service Capital Projects Non -Major Total Governmental Governmental Funds Funds $ 2,119,611 $ 418,257 $ $ $ 5,430 $ 2,543,298 708,777 459,075 354,388 9,395,667 360,320 575,715 1,372,045 258,165 118,356 53,347 7,559,436 197,109 41,531 147,662 24,101 209,380 2,514 472 994 82,333 35,219 219,058 2,122,125 418,729 709,771 701,295 1,048,200 22,262,140 1,935 2,759 2,324,026 28,500 696,786 2,217,814 7,034,887 2,498,714 194,971 2,240,865 6,273,791 6,471,382 1,770,000 365,000 2,125,000 4,260,000 231,850 43,516 32,740 308,106 1,000 195 810 2,005 2,002,850 408,711 2,158,550 6,304,226 894,516 27,357,799 119,275 10,018 (1,448,779) (5,602,931) 153,684 (5,095,659) 140,852 384,869 562,044 (36,323) (199,237) (562,044) 104,529 185,632 119,275 10,018 (1,448,779) (5,498,402) 339,316 (5,095,659) 354,062 66,720 1,760,662 10,962,685 3,502,674 27,130,848 $ 473,337 $ 76,738 $ 311,883 $ 5,464,283 $ 3,841,990 $ 22,035,189 Page 43 TOWN OF FOUNTAIN HILLS, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 Changes in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. $ (5,095,659) Expenditures for capitalized assets $ 6,394,346 Less current year depreciation (5,131,605) 1,262,741 Donated artwork is not reported in the governmental funds. However, in the Statement of Activities, the costs of those assets are reported as capital grants and contributions. 148,500 Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes 26,206 Other (51,358) (25,152) Repayments of bond principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 4,260,000 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Loss on disposal of assets (1,693) Amortization of deferred bond items 68,417 Compensated absences (23,635) 43,089 Changes in net position in governmental activities $ 593,519 The notes to the basic financial statements are an integral part of this statement. Page 44 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2016, the Town implemented the provisions of GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and establishes a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also enhances accountability and transparency through revised note disclosures. The more significant of the Town's accounting policies are described below. A. Reporting Entity The Town's major operations include parks and recreation, culture and recreation and general administrative services. The Town is a municipal entity governed by an elected Mayor and Council. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The Town is a primary government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component units combined with the Town for financial statement presentation purposes and the Town are not included in any other governmental reporting entity. Consequently, the Town's financial statements include only the funds of those organizational entities for which its elected governing body is financially accountable. Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the Town. Property owners in the designated areas are assessed taxes for the costs of operating the Districts. The Town Council serves as the Board of Directors; however, the Town has no liability for the Districts' debt, the Districts are responsible for the debt; the debt is therefore not subject to the Town's debt limit. The District cannot be part of another reporting entity. The Districts' governing body is substantially the same as the Town and the Town's management oversees operations, resulting in the Town having the ability to exercise control. As a result, for financial reporting purposes, transactions of the Districts are combined together and included as if they were part of the Town's operations. Page 45 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain Hills, Arizona Municipal Property Corporation's (MPC) Board of Directors consists of three members which are appointed by the Fountain Hills Town Council. The MPC, which is a nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the sole purpose of assisting the Town in obtaining financing for various projects of the Town. The Town has a "moral obligation" for the repayment of the MPC's bonds. The MPC cannot be part of another reporting entity. The MPC provides services exclusively to the Town. As a result, for financial reporting purposes, transactions of the MPC are combined together and included as if they were part of the Town's operations. B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the Town as a whole. The reported information includes all of the nonfiduciary activities of the Town and its component units. For the most part, the effect of internal activity has been removed from these statements. Interfund services provided and used, such as interfund transfers, are not eliminated in the process of consolidation. These statements are to distinguish between the governmental and business -type activities of the Town. Governmental activities normally are supported by taxes and intergovernmental revenues. The Town does not have any business -type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted state shared revenues, investment income and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for the governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Page 46 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government -wide Financial Statements — The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government -wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Fund Financial Statements — Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Property taxes, sales taxes, franchise taxes, state shared revenues, licenses and permits, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible to accrual because generally they are not measurable until received in cash. Unearned revenues arise when resources are received by the Town before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. Page 47 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. The Town reports the following major governmental funds. General Fund — The General Fund is the Town's primary operating fund. This fund accounts for all financial resources of the Town, except those required to be accounted for in other funds. Highway User Revenue Fund (HURF) — This fund accounts for the Town's share of motor vehicle fuel tax revenues. Grants Fund — This fund accounts for the activities of various restricted grants and contributions received by the Town. General Obligation Debt Service Fund — This fund accounts for the Town's property tax revenues received to pay the debt service of the Town's general obligation bonds. Municipal Property Corporation Debt Service Fund — This fund accounts for the revenues received to pay the debt service on MPC revenue bonds. Eagle Mountain Debt Service Fund — This fund accounts for the property tax revenues restricted to pay the debt service of the Eagle Mountain Community Facilities District component unit. Capital Projects Fund — This fund accounts for the capital improvements to various projects and equipment purchases of the Town. D. Cash and Investments Cash and cash equivalents at year end were cash on hand, cash in bank, restricted cash, and cash and investments held by the State Treasurer. Cash and investments are pooled, except for investments that are restricted under provisions of bond indentures or other restrictions that are required to be reported in the individual funds. Page 48 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES State statutes authorize the Town to invest in obligations of the U.S. Treasury and U.S. agencies, certificates of deposit in eligible depositories, repurchase agreements, obligations of the State of Arizona or any of its counties or incorporated cities or duly organized school districts, improvement districts in this state, and the State Treasurer's Local Government Investment Pool. Investments are stated at fair value. Arizona statute requires a pooled collateral program for public deposits and a Statewide Collateral Pool Administrator (Administrator) in the State Treasurer's Office. The purpose of the pooled collateral program is to ensure that governmental entities' public deposits placed in participating depositories are secured with collateral of 102 percent of the public deposits, less any applicable deposit insurance. An eligible depository may not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on each depository's compliance with the program. E. Investment Income Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments. Investment income is a component of revenue in the governmental funds financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). Interfund balances between governmental funds are eliminated on the Statement of Net Position. Property taxes are levied by the Town and collected by the Maricopa County Treasurer. Property taxes are levied no later than the third Monday in August and are payable in two installments due October 1 of the current year and March 1 of the subsequent year. Taxes become delinquent after the first business day of November and May, respectively. Interest attaches on installments after the delinquency date. All receivables are shown net of an allowance for uncollectibles. Page 49 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES G. Inventory All inventories are valued at average cost using the first-in/first-out (FIFO) method. Inventories consist of expendable supplies held for consumption. Inventories are recorded as expenses when consumed in the government -wide financial statements, and as expenditures when consumed in the governmental funds. H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government -wide and fund financial statements. In the government -wide and fund financial statements, prepaids are recognized as expenses/expenditures when goods and/or services are received rather than when purchased. I. Restricted Cash and Investments The Town reported restricted assets in the amount of $68,996 for funds held in an escrow account. The agreement provides that if, prior to July 1, 2017, any future Council fails to ratify this agreement or fails to provide severance when required as set forth in the agreement between the Town Council and Town Manager, the Town Manager shall be permitted to withdraw all funds from the escrow, minus any interest earned, which interest shall be payable to the Town upon the Town Manager's withdrawal of the amounts in escrow. J. Capital Assets Capital assets, which include land and improvements, artwork, buildings and improvements, vehicles, machinery, and equipment, construction in progress, and infrastructure assets, are reported in the government -wide financial statements. Capital assets are defined be the Town as assets with an initial, individual cost in excess of $10,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend the life of the asset are not capitalized. Page 50 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives: Buildings and building improvements 20 - 50 years Improvements other than buildings 20 years Infrastructure 15 - 50 years Vehicles, machinery and equipment 5 - 20 years K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town did not have any items that qualified for reporting in this category. In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. L. Compensated Absences The Town's employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Sick leave and vacation benefits accrue as pay periods are completed at the current rate of pay. All eligible full-time and part-time employees can accrue vacation leave. Full-time employees accrue up to a maximum of 416 hours of vacation through carryover of balances, while part-time employees can accrue up to 208 hours, depending upon their length of service. In the event of termination, employees will be paid for any accrued, but unused, vacation hours. Full-time employees accrue sick leave based on their length of service, up to a maximum of 960 hours. A portion of this balance will be paid upon a satisfactory separation of service. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government -wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences. Page 51 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES M. Long-term Obligations In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Deferred amounts on refunding result from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Interfund Activity Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interf ind transfers in the fund financial statements are reported as other financing sources/uses in governmental funds. O. Net Position Flow Assumption In the government -wide financial statements the Town applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available. P. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Page 52 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 2 — FUND BALANCE CLASSIFICATIONS Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance classifications. Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Town Council, the Town's highest level of decision making authority, by resolution or ordinance. Those committed amounts cannot be used for any other purpose unless the Town Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned. Amounts in the assigned fund balance classification are intended to be used by the Town for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Town Council or a management official delegated that authority by formal Town Council action. The authority to make assignments has been delegated by the Town Council to the Finance Director. Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. Page 53 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 2 — FUND BALANCE CLASSIFICATIONS The Town applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. The Town has established a fund balance policy which states that the combined General Fund operating fund balance should be at least 30 percent of the average actual General Fund revenues for the preceding five fiscal years. The Town has established a stabilization fund (Rainy Day fund) in the Town's fund balance policy. The Rainy Day fund had a balance of $2,649,684, reported as a committed fund balance at June 30, 2016. The Rainy Day fund may only be used for the following: 1) to replace the loss of more than 25 percent of the Town's local share of State shared revenues, 2) for any event that threatens the health, safety or welfare of the Town's citizens, 3) for any event that threatens the fiscal stability of the Town, and lastly 4) to address any matter declared as an emergency by the governor of the State of Arizona or the Mayor of the Town. All withdrawals from the Rainy Day fund shall be subject to the following rules: 1) any appropriation shall require the approval by at least 2/3 vote by the Town Council, and 2) the maximum amount of Rainy Day withdrawal in any fiscal year shall not exceed one-half of the total balance in the fund. Replenishment of the Rainy Day fund when spent by the Town should not exceed a period of more than five years, and should be repaid in equal annual installments of not less than one percent of the previous fiscal year General Fund balance. Repayments shall be appropriated as part of the annual budget adoption. Page 54 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 2 - FUND BALANCE CLASSIFICATIONS The table below provides detail of the major components of the Town's fund balance classifications at year end. Fund Balances: Nonspendable: Inventory Prepaid items Restricted: Capital Projects Debt Service Streets and Highways Development Fees Committed: Rainy Day Public Art Downtown Strategy Economic Development Tourism Local Court Enhancement Assigned: Capital Projects Environmental Vehicle Replacement Facilities Replacement Equipment Replacement Unassigned Total fund balances $ 9,272 $ $ 4,123 1,376,811 2,649,684 2,673 473,337 76,738 311,883 $ $ $ 9,272 5,055 9,178 14,144 14,144 861,958 1,376,811 2,247,129 2,247,129 General Eagle Municipal Highway Obligation Mountain Property User Debt Debt Corporation Capital Non -Major General Revenue Service Service Debt Service Projects Governmental Fund Fund Fund Fund Fund Fund Funds Total $ 9,272 $ $ 4,123 1,376,811 2,649,684 2,673 473,337 76,738 311,883 $ $ $ 9,272 5,055 9,178 14,144 14,144 861,958 1,376,811 2,247,129 2,247,129 794,905 5,355,811 6,150,716 209,579 209,579 376,244 269,503 645,747 108,472 108,472 529,937 529,937 5,853,806 5,853,806 $10,220,644 $ 1,646,314 $ 473,337 $ 76,738 $ 311,883 $ 5,464,283 $ 3,841,990 $22,035,189 Page 55 2,649,684 2,673 939,510 939,510 129,928 129,928 141 141 296,504 296,504 794,905 5,355,811 6,150,716 209,579 209,579 376,244 269,503 645,747 108,472 108,472 529,937 529,937 5,853,806 5,853,806 $10,220,644 $ 1,646,314 $ 473,337 $ 76,738 $ 311,883 $ 5,464,283 $ 3,841,990 $22,035,189 Page 55 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Excess Expenditures Over Budget — At year end, the Town had expenditures in funds that exceeded the budgets, however, this does not constitute a violation of any legal provisions. NOTE 4 — CASH AND INVESTMENTS Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer's local government investment pools, the County Treasurer's investment pool, obligations of the U.S. Government and its agencies, obligations of the state and certain local government subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized repurchase agreements, certain obligations of U.S. corporations, and certain other securities. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the Town's investments. Custodial Credit Risk — Deposits. Custodial credit risk is the risk that in the event of bank failure the Town's deposits may not be returned to the Town. The Town does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the Town's deposits was $518,319 and the bank balance was $660,899. At year end, $166,850 of the Town's deposits were covered by collateral held by the pledging financial institution in the Town's name. The remaining amount is covered by FDIC. Fair Value Measurements. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. • Level 1 inputs are quoted prices in active markets for identical assets • Level 2 inputs are significant other observable inputs • Level 3 inputs are significant unobservable inputs The State Treasurer's pools are external investment pools, the Local Government Investment Pool (Pool 5) and Local Government Investment Pool -Government (Pool 7), with no regulatory oversight. The pools are not required to register (and are not registered) with the Securities and Exchange Commission. The activity and performance of the pools are reviewed monthly by the State Board of Investment. The fair value of each participant's position in the State Treasurer investment pools approximates the value of the participant's shares in the pool and the participants' shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy. Page 56 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 4 — CASH AND INVESTMENTS All investments in which the fair value hierarchy is applicable are measured at fair value on a recurring basis. At year end, cash and investments as of June 30, 2016 are classified in the accompanying financial statements as follows: Carrying amount of investments Carrying amount of cash deposits Cash on hand Restricted cash and investments Total pooled cash and investments $ 21,570,562 518,319 650 68,996 $ 22,158,527 At year end, the Town's investments consisted of the following: Investment U.S. Treasury Notes Federal National Mortgage Association Notes Federal Home Loan Mortgage Corporation Notes Federal Home Loan Bank Notes Tennessee Valley Authority Wells Fargo Money Market Funds State Treasurer's Investment Pool 7 Total Category Level 2 Level 2 Level 2 Level 2 Level 2 Level 2 Investment Maturities (in Years) Credit Rating Fair Value Less than 1 1-5 S&P Moo 's $ 8,857,427 2,861,938 2,410,783 1,077,448 258,898 40,587 $ 1,402,876 414,979 40,587 $ 1,858,442 $13,651,639 $7,454,551 N/A N/A 2,861,938 AA+ Aaa 1,995,804 AA+ Aaa 1,080,448 AA+ Aaa 258,898 AA+ Aaa N/A N/A Not applicable 6,755,484 73 days average maturities (692,003) Withdrawal in transit $21,570,562 Page 57 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 4 — CASH AND INVESTMENTS Interest Rate Risk. Interest rate risk is the risk that changes in interest rates may reduce the market value of Town investments. In accordance with its investment policy, the Town manages its exposure to declines in fair values by the following: • Structuring the investment portfolio so that securities mature concurrent with the anticipated cash requirements for ongoing operations, thereby avoiding, as much as possible, the need to sell securities into an adverse market environment prior to maturity. • Investing funds primarily in shorter -term securities or similar investment pools and limiting the average maturity of the portfolio in accordance with the needs of the Town. • With respect to any firm or individual given responsibility for investments utilizing external research and advice regarding the current interest rate outlook and global economic condition to optimize portfolio duration strategy. Credit Risk. Credit risk is the risk of default of debt by the Town. The Town will limit credit risk by limiting investments in the Town's portfolio to the asset classes designated as acceptable in ARS §35-323. When possible, analysis of the credit worthiness of all individual debt issuers held in the portfolio should be conducted on an annual basis in an effort to guard against investing in weak or deteriorating credit situation. Additionally, the Town will pre - qualify financial institutions, brokers/dealers, and investment advisers with which the Town will do business. Custodial Credit Risk — Investments. Custodial credit risk is the risk that in the event of bank failure, the Town's deposits may not be returned to the Town. The Town's investment in the State Treasurer's investment pool represents a proportionate interest in the pool's portfolio; however the Town's portion is not identified with specific investments and is not subject to custodial credit risk. Page 58 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 4 — CASH AND INVESTMENTS Concentration of Credit Risk. Concentration of credit risk is the risk of loss from over concentration of investments. In accordance with its investment policy, the Town diversifies its investment portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or specific class of securities. With the exception of U.S. Treasury notes and securities and authorized pools, no more than 25 percent of the Town's total investment portfolio will be invested in a single security type or with a single financial institution. At year end, the Town had the following diversification of Town investments: Investment Type U.S. Treasury Notes Federal National Mortgage Association Notes Federal Home Loan Mortgage Corporation Notes Federal Home Loan Bank Notes Tennessee Valley Authority Wells Fargo Money Market Funds State Treasurer's Investment Pool 7 NOTE 5 — RECEIVABLES Percent of Town Fair Value Investments $8,857,427 2,861,938 2,410,783 1,077,448 258,898 40,587 6,755,484 $22,262,565 39.79% 12.86 10.83 4.84 1.16 0.18 30.34 100.00% Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of intergovernmental receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year end for the Town's individual major funds consisted entirely of due from state. Page 59 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 6 — CAPITAL ASSETS A summary of capital asset activity at year end is as follows: Beginning Governmental Activities Balance Increase Capital assets, not being depreciated: Land Artwork Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Infrastructure Buildings and building improvements Improvements other than buildings Vehicles, machinery and equipment Total capital assets being depreciated Less accumulated depreciation for: Infrastructure Buildings and building improvements Improvements other than buildings Vehicles, machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net $ 23,571,668 2,216,500 4,142,372 Ending Decrease Balance 148,500 5,959,330 8,516,130 $ 23,571,668 2,365,000 1,585,572 29,930,540 6,107,830 8,516,130 27,522,240 4,539 Public safety 143,866 137,811,105 8,022,471 145,833,576 18,996,641 Total depreciation expense 18,996,641 13,666,226 840,031 14,506,257 3,530,259 88,644 53,695 3,565,208 174,004,231 8,951,146 53,695 182,901,682 (83,268,194) (3,909,289) (4,794,867) (397,463) (8,354,644) (664,514) (2,264,955) (160,339) (98,682,660) (5,131,605) (87,177,483) (5,192,330) (9,019,158) (52,002) (2,373,292) (52,002) (103,762,263) 75,321,571 3,819,541 1,693 79,139,419 $ 105,252,111 $ 9,927,371 $ 8,517,823 $ 106,661,659 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 183,610 Development services 4,539 Public safety 143,866 Streets and highways 3,904,796 Culture and recreation 894,794 Total depreciation expense $ 5,131,605 Page 60 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 6 — CAPITAL ASSETS Construction Commitments — At June 30, 2016, the Town has the following active construction commitments: Governmental Activities Remaining Project Spent -to -Date Commitment Drainage — Ashbrook Wash Channel $ 1,230,249 $ 198,110 Fire Station #2 Relocation 42,314 290,150 Tennis Court Renovation 108,947 259,558 Adero Canyon TrailHead 43,100 126,127 Total commitments $ 1,424,610 $ 873,945 NOTE 7 — BONDS PAYABLE Bonds payable at year end consisted of the following general obligation and revenue bonds. The bonds are both callable and noncallable with interest payable semiannually. Purpose Governmental activities: General Obligation Bonds: General Obligation Refunding Bonds, Series 2005 General Obligation Bonds, Series 2014 Eagle Mountain Community Facilities District, General Obligation Refunding Bonds, Series 2015 Revenue Bonds: Municipal Facilities Revenue Refunding Bonds, Series 2015 Total Original Outstanding Due Amount Interest Remaining Principal Within Issued Rates Maturities June 30, 2016 One Year $ 7,225,000 7,565,000 2,300,000 ::1 111 4% 7/1/17-19 $ 1,200,000 $ 435,000 4% 7/1/17-20 2.00-3.00% 7/1/17-21 6,205,000 1,495,000 1,935,000 375,000 2% 7/1/17-20 1,400,000 370,000 $ 10,740,000 $ 2,675,000 Page 61 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 7 — BONDS PAYABLE Annual debt service requirements to maturity on the bonds payable at year end are summarized as follows: Governmental Activities Year ending June 30, Principal Interest 2017 $ 2,675,000 $ 244,986 2018 2,720,000 185,092 2019 2,635,000 123,872 2020 2,310,000 67,302 2021 400,000 7,040 Total $10,740,000 $ 628,292 Pledged Revenues The Town has pledged excise tax revenues to repay a total of $1,400,000 in outstanding Municipal Facilities Revenue Refunding Bonds. For the current fiscal year, the net revenues available to service the debt were $16.3 million. For the fiscal year ended June 30, 2016, the debt principal and interest paid on this debt was $512,740 (three percent of pledged revenues). The total principal and interest remaining to be paid on the bonds is $1,455,080. NOTE 8 — CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the current fiscal year was as follows: Governmental activities: Bonds payable: General obligation bonds Revenue bonds Premium Total bonds payable Compensated absences payable Governmental activity long-term liabilities Page 62 Beginning Ending Due Within Balance Additions Reductions Balance One Year $11,475,000 $ $2,135,000 $ 9,340,000 $ 2,305,000 3,525,000 2,125,000 1,400,000 370,000 342,086 68,417 273,669 15,342,086 4,328,417 11,013,669 2,675,000 298,803 256,119 232,484 322,438 244,653 $15,640,889 $ 256,119 $4,560,901 $11,336,107 $ 2,919,653 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 9 — TRANSFERS At year end, interfund transfers were as follows: Transfers out General Fund HURF Fund Capital Projects Fund Non -Major Governmental Funds Total Grants Fund 36,323 $ 36,323 Transfers in Capital Non -Major Projects Governmental Fund Funds Total $ 81,715 $ 199,769 $ 281,484 45,000 45,000 36,323 59,137 140,100 199,237 $ 140,852 $ 384,869 $ 562,044 The Capital Projects Funds transferred $36,323 to the Grants Fund for the Town's portion of grant project G5203 — tennis court replacement. The Non -major Governmental Fund (Economic Development Fund) transferred $140,100 to the Non -major Governmental Fund (Tourism Fund) to provide funding for operating costs of the tourism program. The General Fund transferred $81,715 to the Capital Projects Funds for funding of facilities replacements. The Non -major Governmental Fund (Downtown Strategy) transferred $59,137 to the Capital Projects Fund to cover the costs installing lights at intersection with Avenue of the Fountains which were not part of the original contract for the Saguaro Boulevard Reconstruction project. The General Fund transferred $199,769 to the Non -major Governmental Fund (Economic Development Fund - $50,000) for funding economic development efforts and (Environmental Fund - $194,769) to pay for funding operations of the fund, including the billing of the environmental fee. The Highway User Revenue Fund transferred $45,000 to the Non -major Governmental Fund (Environmental Fund) for the costs of street sweeping. NOTE 10 — CONTINGENT LIABILITIES Compliance — Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if any, to be immaterial. Lawsuits — The Town is a party to a number of various types of lawsuits, many of which normally occur in governmental operations. The ultimate outcome of the actions is not determinable, however, Town management believes that the outcome of these proceedings, either individually or in the aggregate, will not have a materially adverse effect on the accompanying financial statements. Page 63 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 11— RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protection is provided by the Arizona Municipal Risk Pool (Pool). The Pool is made up of various towns and cities within Arizona that operate a common risk management and insurance program. The Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the Pool to meet its expected financial obligations. The Pool has the authority to assess its' members additional premiums should reserves and annual premiums be insufficient to meet the Pool's obligations. The Town joined the Arizona Municipal Workers' Compensation Pool (Pool) together with other governments in the state for risks of loss related to workers' compensation claims. The Pool is a public entity risk pool currently operating as a common risk management and insurance program for towns and cities in the State. The Town is responsible for paying a premium, based on an experience rating formula that allocates pool expenditures and liabilities among members. The Town continues to carry commercial insurance for all other risks of loss, including employee health, dental, and vision insurance. NOTE 12 — RETIREMENT PLANS Defined Contribution Pension Plan All full-time employees of the Town participate in a defined contribution pension plan administered by the ICMA Retirement Corporation as a 401(a) plan. The payroll for the Town employees covered by this plan for the year ended June 30, 2016, was $2,569,070. The Town's total payroll was $2,941,575. A defined contribution pension plan provides benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are to be determined, instead of specifying the amount of benefit the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investment of those contributions, and forfeitures of other participants' benefits that may be allocated to such participant's account. All full-time Town employees must participate in the pension plan from the date they are hired. Contributions made by an employee vest immediately and contributions made by the Town vest after five years of service on a pro rata basis. Page 64 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016 NOTE 12 — RETIREMENT PLANS An employee that leaves the employment of the town is entitled to his or her contributions and the vested portion of the Town's contributions, plus interest earned. Each employee must contribute 11 percent of his or her gross earnings. The Town must match the employee contribution of 11 percent. During the fiscal year, the Town's required and actual contributions amounted to $279,944. The employees' contributions totaled $279,944. Employees may also contribute to the ICMA Retirement Corporation 457 plan on a voluntary basis; there is no employer match for those contributions. During the fiscal year, employees contributed $92,984 to that plan. No pension provision changes occurred during the year that affected the required contributions to be made by the Town or its employees. The ICMA Retirement Corporation held no securities of the Town or other related parties during the fiscal year 2015-16 or as of the close of the fiscal year. NOTE 13 — RECLASSIFICATION FROM PRIOR PERIOD The July 1, 2015 fund balances of the General Fund, Highway User Revenue Fund, and Capital Projects Fund do not agree to the prior year financial statements due to reclassifications of sub -fund activity. The net effect of the adjustments is zero. Governmental Funds General Highway User Fund Revenue Fund Capital Projects Fund Fund balance, June 30, 2015, as previously reported $ 8,894,502 $ 1,692,305 $ 10,859,923 Reclassification of sub -fund activity (168,819) 66,057 102,762 Fund balance, July 1, 2015, as restated $ 8,725,683 $ 1,758,362 $ 10,962,685 Page 65 (This page intentionally left blank) Page 66 REQUIRED SUPPLEMENTARY INFORMATION Page 67 TOWN OF FOUNTAIN HILLS, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL YEAR ENDED JUNE 30, 2016 Budgeted Amounts Variance with Final Budget Positive Original Final Actual (Negative) Revenues: Sales taxes $ 7,317,367 $ 7,317,367 $ 7,873,427 $ 556,060 Franchise taxes 324,310 324,310 360,320 36,010 Licenses and permits 686,428 686,428 796,330 109,902 Leases and rents 280,831 280,831 258,165 (22,666) Intergovernmental 4,892,167 4,892,167 4,886,238 (5,929) Charges for services 151,700 151,700 169,396 17,696 Other 135,207 136,707 83,461 (62,137) Fines and forfeitures 147,011 147,011 185,279 38,268 Investment earnings 50,000 50,000 95,114 54,005 Total revenues 13,985,021 13,986,521 14,707,730 721,209 Expenditures: Current - General government Mayor and council 80,084 80,084 72,094 7,990 Administration 2,218,990 2,063,303 1,895,939 167,364 Municipal court 277,107 302,107 301,299 808 Total general government 2,576,181 2,445,494 2,269,332 176,162 Development services 1,624,529 1,662,249 1,492,528 169,721 Public safety Fire and emergency 3,501,797 3,501,797 3,481,017 20,780 Law enforcement 3,683,970 3,683,970 3,553,870 130,100 Total public safety 7,185,767 7,185,767 7,034,887 150,880 Culture and recreation Community services 2,275,574 2,330,946 2,045,894 285,052 Capital outlay 46,775 80,775 88,644 (7,869) Total expenditures 13,708,826 13,705,231 12,931,285 773,946 Excess (deficiency) of revenues over expenditures 276,195 281,290 1,776,445 1,525,155 Other financing sources (uses): Transfer in 2,000 2,000 (2,000) Transfer out (309,195) (308,195) (281,484) 26,711 Total other financing sources (uses): (307,195) (306,195) (281,484) 24,711 Changes in fund balances (31,000) (54,905) 1,494,961 1,549,866 Fund balances, beginning of year, as restated 8,725,683 8,725,683 8,725,683 Fund balances (deficits), end of year $ 8,694,683 $ 8,670,778 $ 10,220,644 $ 1,549,866 See accompanying notes to this schedule. Page 68 Expenditures: Current - Streets and highways 2,798,026 2,803,121 2,498,714 304,407 Total expenditures 2,798,026 2,803,121 2,498,714 304,407 Excess (deficiency) of revenues over expenditures (487,564) (492,659) (67,048) 425,611 Other financing sources (uses): Transfer out TOWN OF FOUNTAIN HILLS, ARIZONA (45,000) (45,000) Total other financing sources (uses): SCHEDULE OF REVENUES, EXPENDITURES AND (45,000) (45,000) Changes in fund balances CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (537,659) (112,048) 425,611 Fund balances, beginning of year HIGHWAY USER REVENUE 1,758,362 1,758,362 Fund balances, end of year YEAR ENDED JUNE 30, 2016 $ 1,220,703 $ 1,646,314 $ 425,611 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 2,292,162 $ 2,292,162 $ 2,378,871 $ 86,709 Charges for services 12,000 12,000 27,713 15,713 Other 6,000 6,000 22,670 16,670 Investment earnings 300 300 2,412 2,112 Total revenues 2,310,462 2,310,462 2,431,666 121,204 Expenditures: Current - Streets and highways 2,798,026 2,803,121 2,498,714 304,407 Total expenditures 2,798,026 2,803,121 2,498,714 304,407 Excess (deficiency) of revenues over expenditures (487,564) (492,659) (67,048) 425,611 Other financing sources (uses): Transfer out (45,000) (45,000) (45,000) Total other financing sources (uses): (45,000) (45,000) (45,000) Changes in fund balances (532,564) (537,659) (112,048) 425,611 Fund balances, beginning of year 1,758,362 1,758,362 1,758,362 Fund balances, end of year $ 1,225,798 $ 1,220,703 $ 1,646,314 $ 425,611 See accompanying notes to this schedule. Page 69 TOWN OF FOUNTAIN HILLS, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GRANTS YEAR ENDED JUNE 30, 2016 Revenues: Intergovernmental Total revenues Expenditures: Current - General government Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 70 20,000 (20,000) $ $ 20,000 $ $ (20,000) See accompanying notes to this schedule. Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ 1,655,000 $ 1,620,141 $ 122,624 $ (1,497,517) 1,655,000 1,620,141 122,624 (1,497,517) 1,655,000 1,231,636 50,000 1,181,636 368,505 108,947 259,558 1,655,000 1,600,141 158,947 1,441,194 20,000 (36,323) (56,323) 36,323 36,323 36,323 36,323 20,000 (20,000) $ $ 20,000 $ $ (20,000) See accompanying notes to this schedule. TOWN OF FOUNTAIN HILLS, ARIZONA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2015 NOTE 1— BUDGETARY BASIS OF ACCOUNTING The Town Council follows these procedures in establishing the budgetary data reflected in the financial statements: 1. In accordance with Arizona Revised Statutes, the Town Manager submits a proposed budget for the fiscal year commencing the following July 1 to the Town Council. The operating budget includes proposed expenditures and the means of financing them for the upcoming year. 2. Public hearings are conducted to obtain taxpayer comment. 3. Prior to the third Monday in August, the expenditure limitation for the Town is legally enacted through passage of a resolution. To ensure compliance with the expenditure limitation, a uniform expenditure report must be filed with the State each year. This report, issued under a separate cover, reconciles total Town expenditures form the audited basic financial statements to total expenditures for reporting in accordance with the State's uniform expenditure reporting system (A.R.S 41-1379.07). 4. Expenditures may not legally exceed the expenditure limitation described below for all fund types as a whole. For management purposes, the Town adopts a budget by department for the General Fund and in total by fund for other funds. The Town Manager, subject to Town Council approval, may at any time transfer any unencumbered appropriation balance or portion thereof between a department or activity. The adopted budget cannot be amended in any way without Town Council approval. 5. Formal budgetary integration is employed as a management control device during the year for the General, Special Revenue, Debt Service, and Capital Projects Funds on essentially the same modified accrual basis of accounting used to record actual revenues and expenditures. The Town is subject to the State of Arizona's Spending Limitation Law for Towns and Cities. This law does not permit the Town to spend more than budgeted revenues plus the carryover unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the combined funds. The Town complied with this law during the year. Page 71 (This page intentionally left blank) Page 72 COMBINING AND INDIVIDUAL INDIVIDUAL FUND STATEMENTS AND SCHEDULES Page 73 (This page intentionally left blank) Page 74 NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Downtown Strategy Fund — accounts for the portion of Town sales tax committed by the Town Council for the development of downtown. Economic Development Fund — accounts for the portion of Town sales tax committed by the Town Council for economic development and tourism. Tourism Fund — accounts for the portion of Town sales tax committed by the Town Council as well as any grants received for all tourism activities. Local Court Enhancement Fund accounts for a local court surcharge, committed for court enhancement. Environmental Fund — accounts for all funds received from collection of the environmental fee. Cottonwoods Maintenance Fund — accounts for all funds restricted to pay for maintenance of the Cottonwoods Maintenance District. Development Fees Fund — accounts for restricted development fees collected from building permits. Capital Projects Funds Facilities Replacement Fund — accounts for all funds assigned for the maintenance and repair of facilities and equipment. Page 75 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING BALANCE SHEET - NON -MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2016 ASSETS Cash and investments Accounts receivable Intergovernmental receivable Interest receivable Prepaid items Total assets 7JT: 3f11Y VokV.3 i701U0031.3.11W.11 U41 0K Liabilities: Accounts payable Accrued wages and benefits Other liabilities Total liabilities Fund balances: Nonspendable Restricted Committed Assigned Total fund balances Total liabilities and fund balances Page 76 Downtown Economic Strategy Development Tourism $ 934,072 $ 125,993 $ 10,729 2,731 10,928 2,707 5,055 $ 939,510 $ 141,976 $ 10,729 $ $ 4,981 $ 9,375 2,012 1,053 160 6,993 10,588 5,055 939,510 129,928 141 939,510 134,983 141 $ 939,510 $ 141,976 $ 10,729 Local Court Cottonwoods Development Enhancement Environmental Maintenance Fees Totals $ 295,962 $ 244,013 $ 14,394 $ 2,243,478 $ 3,868,641 900 900 542 14,201 3,651 6,358 5,055 $ 296,504 $ 244,913 $ 14,394 $ 2,247,129 $ 3,895,155 $ $ 34,951 $ 250 $ $ 49,557 383 3,448 160 35,334 250 53,165 5,055 14,144 2,247,129 2,261,273 296,504 1,366,083 209,579 209,579 296,504 209,579 14,144 2,247,129 3,841,990 $ 296,504 $ 244,913 $ 14,394 $ 2,247,129 $ 3,895,155 Page 77 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON -MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Licenses and permits Intergovernmental Fines and forfeitures Investment earnings Total revenues Expenditures: Current - General government Development services Culture and recreation Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 78 Downtown Strategy 70,877 11,786 82,663 46,932 46,932 35,731 (59,137) (59,137) (23,406) 962,916 Economic Development 283,511 217 Tourism 53,347 149 283,728 53,496 174,798 174,798 108,930 50,000 (140,100) (90,100) 18,830 116,153 194,435 194,435 (140,939) 140,100 140,100 (839) 980 $ 939,510 $ 134,983 $ 141 Local Court Cottonwoods Development Enhancement Environmental Maintenance Fees Totals $ $ $ 5,430 $ $ 5,430 354,388 486,751 88,964 575,715 53,347 24,101 24,101 127 410 30 22,500 35,219 24,228 487,161 5,460 111,464 1,048,200 2,759 2,759 472,351 2,705 696,786 536 194,971 2,759 472,351 2,705 536 894,516 21,469 14,810 2,755 110,928 153,684 194,769 384,869 (199,237) 194,769 185,632 21,469 209,579 2,755 110,928 339,316 275,035 11,389 2,136,201 3,502,674 $ 296,504 $ 209,579 $ 14,144 $ 2,247,129 $ 3,841,990 Page 79 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NON -MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Licenses and permits Intergovernmental Fines and forfeitures Investment earnings Total revenues Expenditures: Current - General government Development services Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances (deficits), end of year Page 80 Downtown Strate Variance - Positive Budget Actual (Negative) 66,517 70,877 4,360 6,000 11,786 5,786 72,517 82,663 10,146 80,886 80,886 (8,369) (477,000) (477,000) (485,369) 962,916 $ 477,547 46,932 33,954 46,932 35.731 (59,137) (59,137) (23,406) 962,916 $ 939,510 33,954 44.100 417,863 417,863 461,963 $ 461,963 (Continued) Page 81 Economic Development Tourism Variance - Variance - Positive Positive Budget Actual (Negative) Budget Actual (Negative) 266,066 283,511 17,445 53,359 53,347 (12) 217 217 149 149 266,066 283,728 17,662 53,359 53,496 137 177,001 174,798 2,203 195,280 194,435 845 177,001 174,798 2,203 195,280 194,435 845 89,065 108,930 19,865 (141,921) (140,939) 982 50,000 50,000 140,100 140,100 (140,100) (140,100) (90,100) (90,100) 140,100 140,100 (1,035) 18,830 19,865 (1,821) (839) 982 116,153 116,153 980 980 $ 115,118 $ 134,983 $ 19,865 $ (841) $ 141 $ 982 (Continued) Page 81 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NON -MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Licenses and permits Intergovernmental Fines and forfeitures Investment earnings Total revenues Expenditures: Current - General government Development services Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 82 Local Court Enhancement Variance - Positive Budget Actual (Negative) 16,350 24,101 7,751 100 127 27 16,450 24,228 7,778 50,615 2,759 47,856 30,000 30,000 80,615 2,759 77,856 (64,165) 21,469 85,634 (64,165) 21,469 85,634 275,035 275,035 $ 210,870 $ 296,504 $ 85,634 (Continued) Page 83 Environmental Cottonwoods Maintenance Variance - Variance - Positive Positive Budget Actual (Negative) Budget Actual (Negative) $ $ $ $ 5,366 $ 5,430 $ 64 540,000 486,751 (53,249) 410 410 30 30 540,000 487,161 (52,839) 5,366 5,460 94 639,241 472,351 166,890 4,043 2,705 1,338 639,241 472,351 166,890 4,043 2,705 1,338 (99,241) 14,810 114,051 1,323 2,755 1,432 221,480 194,769 (26,711) 221,480 194,769 (26,711) 122,239 209,579 87,340 1,323 2,755 1,432 11,389 11,389 $ 122,239 $ 209,579 $ 87,340 $ 12,712 $ 14,144 $ 1,432 (Continued) Page 83 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NON -MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Licenses and permits Intergovernmental Fines and forfeitures Investment earnings Total revenues Expenditures: Current - General government Development services Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 84 Development Fees Variance - Positive Budget Actual (Negative) 104,640 88,964 (15,676) 6,000 22,500 110,640 111,464 535 535 110.105 (270,686) (270,686) (160,581) 2,136,201 $ 1,975,620 536 536 110,928 110,928 2,136,201 $ 2,247,129 16,500 824 (1) (1) 823 270,686 270,686 271,509 $ 271,509 Budget $ 5,366 332,583 644,640 53,359 16,350 12,100 1,064,398 50,615 901,171 195,815 30,000 1,177,601 (113,203) 411,580 (887,786) (476,206) (589,409) 3,502,674 $ 2,913,265 Totals Actual $ 5,430 354,388 575,715 53,347 24,101 35,219 1,048,200 2,759 696,786 194,971 894,516 153,684 384,869 (199,237) 185,632 339,316 3,502,674 $ 3,841,990 Variance - Positive (Negative) $ 64 21,805 (68,925) (12) 7,751 23,119 (16,198) 47,856 204,385 844 30,000 283,085 266,887 (26,711) 688,549 661,838 928,725 $ 928,725 Page 85 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Investment earnings Total revenues Expenditures: Debt service - Principal retirement Interest on long-term debt Fiscal charges Total expenditures Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 86 General Oblieation Debt Service Variance - Positive Budget Actual (Negative) $ 2,109,477 $ 2,119,611 $ 10,134 210 2.109.687 1,770,000 321,622 3,100 2,094,722 14,965 354,062 $ 369,027 2,514 2,304 2,122,125 12,438 1,770,000 231,850 1,000 2,002,850 119,275 354,062 $ 473,337 89,772 2,100 91,872 104,310 $ 104,310 (Continued) Page 87 Eagle Mountain Debt Service Municipal Property Corporation Debt Service Variance - Variance - Positive Positive Budget Actual (Negative) Budget Actual (Negative) $ 416,686 $ 418,257 $ 1,571 $ $ $ 665,165 708,777 43,612 9 472 463 100 994 894 416,695 418,729 2,034 665,265 709,771 44,506 365,000 365,000 480,000 2,125,000 (1,645,000) 43,516 43,516 32,740 32,740 3,335 195 3,140 8,000 810 7,190 411,851 408,711 3,140 520,740 2,158,550 (1,637,810) 4,844 10,018 5,174 144,525 (1,448,779) (1,593,304) 66,720 66,720 1,760,662 1,760,662 $ 76,738 $ 5,174 $ 1,905,187 $ 311,883 $ (1,593,304) $ 71,564 (Continued) Page 87 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Property taxes Sales taxes Investment earnings Total revenues Expenditures: Debt service - Principal retirement Interest on long-term debt Fiscal charges Total expenditures Changes in fund balances Fund balances, beginning of year Fund balances, end of year Page 88 Budget $ 2,526,163 665,165 319 3,191,647 2,615,000 397,878 14,435 3,027,313 164,334 2,181,444 $ 2,345,778 Totals Actual $ 2,537,868 708,777 3,980 3,250,625 4,260,000 308,106 2,005 4,570,111 (1,319,486) 2,181,444 $ 861,958 Variance - Positive (Negative) $ 11,705 43,612 3,661 58,978 (1,645,000) 89,772 12,430 (1,542,798) (1,483,820) $ (1,483,820) (This page intentionally left blank) Page 89 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Sales taxes Intergovernmental Other Investment earnings Total revenues Expenditures: Current - General government Development services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfer in Transfer out Total other financing sources (uses): Changes in fund balances Fund balances, beginning of year Fund balances (deficits), end of year Page 90 Capital Projects Variance - Non -GAAP Positive Budget Actual (Negative) $ 332,035 1,790,000 154,082 12,000 2,288,117 1,685 14,261,200 14,262,885 (11,974,768) 745,686 745,686 (11,229,082) 10,859,923 $ 459,075 118,356 41,531 82,140 701.102 1,935 6,226,093 6,228,028 (5,526,926) 59,137 (36,323) 22,814 (5,504,112) 10,859,923 $ 127,040 (1,671,644) (112,551) 70,140 (1,587,015) (250) 8,035,107 8,034,857 6,447,842 (686,549) (36,323) (722,872) 5,724,970 $ (369,159) $ 5,355,811 $ 5,724,970 Facilities Replacement Fund Totals Variance - Variance - Non -GAAP Positive Non -GAAP Positive Budget Actual (Negative) Budget Actual (Negative) $ $ $ $ 332,035 $ 459,075 $ 127,040 1,790,000 118,356 (1,671,644) 154,082 41,531 (112,551) 193 193 12,000 82,333 70,333 193 193 2,288,117 701,295 (1,586,822) 1,685 1,935 (250) 130,000 28,500 101,500 130,000 28,500 101,500 47,698 (47,698) 14,261,200 6,273,791 7,987,409 130,000 76,198 53,802 14,392,885 6,304,226 8,088,659 (130,000) (76,005) 53,995 (12,104,768) (5,602,931) 6,501,837 81,715 81,715 827,401 140,852 (686,549) (36,323) (36,323) 81,715 81,715 827,401 104,529 (722,872) (48,285) 5,710 53,995 (11,277,367) (5,498,402) 5,778,965 102,762 102,762 10,962,685 10,962,685 $ 54,477 $ 108,472 $ 53,995 $ (314,682) $ 5,464,283 $ 5,778,965 Page 91 (This page intentionally left blank) Page 92 STATISTICAL SECTION The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader's understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below. Financial Trends These schedules contain information on financial trends to help the reader understand how the Town's financial position and financial activities have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Town's ability to generate revenue. Debt Capacity These schedules present information to help the reader evaluate the Town's current levels of outstanding debt as well as assess the Town's ability to make debt payments and/or issue additional debt in the future. Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the Town's financial activities take place and to help make comparisons with other cities. Operating Information These schedules contain information about the Town's operations and various resources to help the reader draw conclusions as to how the Town's financial information relates to the services provided by the Town. Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to 5 percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits. Page 93 Town of Fountain Hills, Arizona Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) June 30 2007 2008 2009 2010 Governmental activities: Net investment in capital assets $ 92,508,637 $ 94,939,805 $ 94,611,110 $ 95,467,509 Restricted 12,210,966 12,799,502 11,828,137 11,396,116 Unrestricted 14,276,126 13,230,726 13,765,293 12,321,090 Total governmental activities net position $ 118,995,729 $ 120,970,033 $ 120,204,540 $ 119,184,715 Source: The source of this information is the Town's financial records. Page 94 June 30 2011 2012 2013 2014 2015 2016 $ 92,579,483 $ 92,006,103 $ 89,800,560 $ 89,713,260 $ 95,325,824 $ 95,647,990 4,385,595 5,951,416 5,721,744 5,480,867 6,310,810 4,530,239 22,598,669 21,064,267 20,612,758 19,186,823 15,180,582 17,232,506 $ 119,563,747 $ 119,021,786 $ 116,135,062 $ 114,380,950 $ 116,817,216 $ 117,410,735 Page 95 Town of Fountain Hills, Arizona Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Expenses Governmental activities: General government Development services Public safety Streets and highways Culture and recreation Interest on long-term debt Total governmental activities expenses Program Revenues Governmental activities: Fines, fees and charges for services: General government Development Services Public safety Streets and highways Culture and recreation Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Net (Expenses)/Revenues General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes Sales taxes Franchise taxes State shared revenues Investment earnings Miscellaneous Total governmental activities Changes in Net Position Governmental activities Fiscal Year Ended June 30 2007 2008 2009 2010 $ 4,292,515 $ 3,921,588 $ 4,231,529 $ 3,720,236 2,512,170 2,861,653 2,218,994 1,612,287 5,935,742 6,532,292 7,312,415 6,293,323 5,225,835 5,981,347 5,051,294 5,202,285 3,282,160 3,092,661 3,336,616 2,927,848 1,163,370 1,132,947 1,033,536 950,484 22,411,792 23,522,488 23,184,384 20,706,463 910,978 830,963 499,914 474,434 445,028 390,589 455,543 236,377 982,659 746,227 55,042 59,806 28,185 23,700 50,408 266,706 153,218 338,332 427,137 338,357 - 56,802 - 1,666,498 989,100 835,659 1,353,409 632,617 3,509,168 3,222,272 2,841,453 3,674,795 (18,902,624) (20,300,216) (20,342,931) (17,031,668) 1,385,953 1,635,542 1,531,770 1,928,028 11,407,714 10,489,591 8,932,374 7,644,440 324,318 336,290 321,964 285,881 8,444,731 8,848,199 8,456,552 6,000,923 1,094,994 780,935 258,478 22,831 85,418 183,963 76,300 129,740 21,357,175 20,638,978 18,045,668 14,083,815 $ 2,454,551 $ 338,762 $ (2,297,263) $ (2,947,853) Source: The source of this information is the Town's financial records. Page 96 Fiscal Year Ended June 30 2011 2012 2013 2014 2015 2016 $ 2,876,848 $ 3,119,113 $ 2,909,443 $ 2,432,965 $ 2,479,365 $ 2,516,966 1,572,202 1,442,613 1,633,361 1,237,717 2,074,611 2,253,208 5,963,067 5,820,136 6,100,131 6,958,056 6,816,152 7,178,890 51567,973 4,718,047 5,712,817 6,630,875 4,963,979 6,476,688 2,840,154 2,754,731 2,779,294 2,760,690 2,822,954 3,124,523 851,957 779,576 567,043 472,999 698,542 241,694 19,672,201 18,634,216 19,702,089 20,493,302 19,855,603 21,791,969 337,279 272,469 380,926 215,943 337,655 298,737 344,821 322,984 377,483 531,193 693,670 1,257,492 65,568 63,926 63,824 74,887 86,641 90,345 77,409 95,201 112,521 250,421 236,706 48,688 339,341 303,508 288,745 340,353 339,158 321,189 1,614,462 1,285,656 1,266,906 1,307,738 1,431,017 1,615,973 2,273,414 1,392,706 150,535 144,570 2,874,796 381,011 5,052,294 3,736,450 2,640,940 2,865,105 5,999,643 4,013,435 (14,619,907) (14,897,766) (17,061,149) (17,628,197) (13,855,960) (17,778,534) 1,349,079 1,453,405 1,385,147 1,449,646 904,660 2,569,504 8,013,480 7,787,489 7,957,163 8,459,267 8,983,049 9,395,667 322,659 332,130 334,668 349,414 352,673 360,320 5,217,140 4,515,511 4,979,183 5,326,332 5,713,235 5,813,678 28,456 88,877 69,998 123,311 150,358 219,058 68,125 178,393 300,899 166,115 188,251 13,826 13,649,860 12,902,400 13,641,911 14,424,439 15,387,566 18,372,053 $ (970,047) $ (1,995,366) $ (3,419,238) $ (3,203,758) $ 1,531,606 $ 593,519 Page 97 General fund Reserved Unreserved, designated Unreserved, undesignated Total general fund All other governmental funds Unreserved, designated Unreserved, undesignated reported in: Special revenue funds Capital projects funds Debt service funds Total all other governmental funds General fund Nonspendable: Inventory Prepaid items Committed Assigned Unassigned Total general fund All other governmental funds Nonspendable Cash with escrow agent Inventory Prepaid items Restricted Committed Assigned Total all other governmental funds Town of Fountain Hills, Arizona Fund Balances — Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) June 30 2007 2008 2009 2010 $ 2,934,144 $ 3,053,070 $ 3,234,860 $ 3,235,811 - - 127,916 333,796 3,666,005 3,526,738 3,302,373 3,418,799 $ 6,600,149 $ 6,579,808 $ 6,665,149 $ 6,988,406 $ - $ - $ 95,620 $ 159,484 5,305,432 3,876,927 4,198,782 4,498,523 9,916,670 10,764, 857 10,246,395 10,020,336 1,386,674 1,585,740 1,218,971 1,182,834 $ 16,608,776 $ 16,227,524 $ 15,759,768 $ 15,861,177 June 30 2011 2012 2013 2014 2015 2016 $ 13,183 $ 9,332 $ 10,201 $ 14,358 $ 6,975 $ 9,272 29,234 28,245 32,493 18,348 10,655 4,123 - 1,345,200 1,345,200 1,345,200 2,634,923 2,652,357 - 2,190,910 2,191,063 1,647,193 1,872,492 1,701,086 8,263,549 3,656,173 4,117,865 4,972,853 4,369,457 5,853,806 $ 8,305,966 $ 7,229,860 $ 7,696,822 $ 7,997,952 $ 8,894,502 $ 10,220,644 $ - $ 2,623,895 $ 2,301,609 $ 1,973,067 $ 1,645,000 $ - 5,055 6,217 5,474 4,706 997 656 - 4,379,987 3,300,426 3,354,189 3,505,590 10,066,786 4,500,044 11,480,869 2,039,560 2,175,094 2,089,361 1,079,780 1,366,081 - 9,312,168 9,005,276 7,147,586 5,444,124 5,943,365 $ 15,867,073 $ 17,281,523 $ 16,840,874 $ 14,716,601 $ 18,236,346 $ 11,814,545 Source: The source of this information is the Town's financial records. Note: During fiscal year 2011, the Town implemented GAS13 Statement No. 54. Therefore, starting in the fiscal year ended June 30, 2011, governmental fund balances will be presented based on the GAS13 Statement No. 54 hierarchy. Page 98 (This page intentionally left blank) Page 99 Town of Fountain Hills, Arizona Statement of Revenues, Expenditures and Changes in Fund Balances Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Leases and rents Intergovernmental Charges for services Other Fines and forfeitures Special assessments Investment earnings Total revenues Expenditures Current: General government Development services Public safety Streets and highways Culture and recreation Capital outlay Debt service: Principal Interest Other debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Issuance of refunding bonds Issuance of long-term debt Bond Premium Payment to refunded bonds escrow agent Total other financing sources (uses) Net change in fund balances Fiscal Year Ended June 30 2007 2008 2009 2010 $ 13,159,087 $ 12,457,086 $ 10,960,001 $ 9,818,985 1,239,318 1,125,957 541,627 399,094 267,350 296,434 290,083 215,520 8,444,731 9,353,260 9,607,961 7,672,037 898,955 620,300 316,676 464,036 85,418 183,963 43,683 129,740 304,214 287,120 339,658 297,030 4,228 4,337 4,037 - 1,094,994 780,935 258,478 22,831 25,498,295 25,109,392 22,362,204 19,019,273 4,024,551 3,548,295 3,514,249 3,186,368 2,462,643 2,751,740 2,036,295 1,669,449 5,689,020 6,321,669 6,624,141 6,200,227 2,028,397 2,214,557 1,199,850 973,746 2,131,374 2,257,007 2,215,065 2,007,737 2,002,887 5,239,169 3,708,277 1,254,223 1,968,228 2,153,228 2,240,000 2,460,000 1,058,665 1,025,321 925,663 825,988 - - 3,471 16,869 21,365,765 25,510,986 22,467,011 18,594,607 4,132,530 (401,594) (104,807) 424,666 4,383,069 2,756,988 3,759,735 1,127,776 (4,383,069) (2,756,988) (3,950,654) (1,127,776) - (190,919) - - $ 4,132,530 $ (401,594) $ (295,726) $ 424,666 Debt service as a percentage of noncapital expenditures 15.4% 15.3% 15.7% 18.9% Source: The source of this information is the Town's financial records. Page 100 Fiscal Year Ended June 30 2011 2012 2013 2014 2015 2016 $ 9,704,054 $ 9,577,321 $ 9,713,445 $ 10,271,737 $ 10,240,382 $ 12,299,285 312,367 194,976 570,904 891,782 1,043,382 1,372,045 227,195 206,018 213,871 252,584 269,753 258,165 7,165,103 6,035,448 6,323,047 6,677,518 9,770,048 7,559,436 388,635 405,663 162,086 161,376 176,541 197,109 72,125 178,393 300,899 134,114 188,251 147,662 236,221 223,673 187,251 170,995 186,456 209,380 28,456 88,877 69,998 123,311 150,358 219,058 18,134,156 16,910,369 17,541,501 18,683,417 22,025,171 22,262,140 2,575,975 2,887,321 2,699,109 2,194,845 2,275,124 2,324,026 1,564,615 1,421,787 1,643,757 1,774,983 2,073,990 2,217,814 5,772,800 5,869,445 6,022,269 6,890,770 6,675,874 7,034,887 1,123,230 1,054,930 2,058,990 3,085,559 1,275,779 2,498,714 1,871,446 1,794,332 1,791,018 1,921,939 1,962,585 2,240,865 1,043,304 884,323 453,002 1,750,465 8,799,068 6,471,382 2,114,999 1,965,000 2,280,000 2,415,000 1,850,000 4,260,000 729,077 639,135 554,860 460,811 454,957 308,106 15,254 55,752 12,183 12,188 243,585 2,005 16,810,700 16,572,025 17,515,188 20,506,560 25,610,962 27,357,799 1,323,456 338,344 26,313 (1,823,143) (3,585,791) (5,095,659) 431,880 2,470,027 1,279,397 1,838,453 2,519,774 562,044 (431,880) (2,470,027) (1,279,397) (1,838,453) (2,519,774) (562,044) - - - - 4,180,000 - - - - - 71565,000 - - - - - 342,086 - - - - - (4,085,000) - - - - - 81002,086 - $ 1,323,456 $ 338,344 $ 26,313 $ (1,823,143) $ 4,416,295 $ (5,095,659) 19.6% 18.7% 16.7% 16.0% 15.2% 21.9% Page 101 Town of Fountain Hills, Arizona Governmental Activities - Tax Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year Ended June 30 Property Tax Sales Tax Franchise Tax Total 2007 $ 1,427,055 $ 11,407,714 $ 324,318 $ 11,732,032 2008 1,631,205 10,489,591 336,290 10,825,881 2009 1,705,663 8,932,374 321,964 9,254,338 2010 1,888,664 7,644,441 285,881 7,930,322 2011 1,367,915 8,013,480 322,659 8,336,139 2012 1,457,702 7,779,219 332,130 8,111,349 2013 1,421,614 7,957,163 334,668 8,291,831 2014 1,463,056 8,459,267 349,414 8,808,681 2015 904,660 8,983,050 352,673 9,335,723 2016 2,543,298 9,395,667 360,320 9,755,987 Source: The source of this information is the Town's financial records. Page 102 Town of Fountain Hills, Arizona Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Assessed Taxable Value $ 397,380,162 610,73 8,122 684,742,347 651,218,464 576,535,714 451,860,136 377,521,718 366,302,672 402,965,927 402,135,304 * Per $100 of assessed full cash value. Total Direct Tax Rate* $ 0.3012 0.2124 0.1972 0.2273 0.1639 0.2258 0.2657 0.2773 0.1151 0.5246 Estimated Actual Taxable Value $ 3,353,535,254 5,318,424,271 5,867,175,208 5,524,103,469 4,915,512,973 3,971,538,882 3,309,940,258 3,260,087,621 3,616,672,185 4,290,989,150 Net Assessed Taxable Value as a Percentage of Estimated Actual Taxable Value 11.85% 11.48% 11.67% 11.79% 11.73% 11.38% 11.41% 11.24% 11.14% 9.37% Source: The source of this information is the Arizona Department of Revenue's Abstract of the Assessment Roll and the Town's financial records. Page 103 Town of Fountain Hills, Arizona Principal Property Taxpayers June 30, 2016 and 2007 2007 Percentage of Total Net Full Cash Rank Assessed Value 2 0.78% 5 0.61% 7 0.40% 10 034% 4 0.63% 3 0.74% 1 0.81% 6 0.44% 8 0.38% 9 0.34% Totals $ 18,379,029 4.58% $ 21,812,551 5.47% Source: The source of this information is the Maricopa County Assessor's Office. Page 104 2016 Net Limited Percentage of Net Full Cash Assessed Total Net Limited Assessed Taxpayer Value Rank Assessed Value Value Chaparral City Water Company $ 3,207,780 1 0.80% $ 3,114,960 Adero Canyon JI LLC 2,918,983 2 0.73% Hunter Retail LLC 2,516,743 3 0.63% WSL Fountain View Investors V, LLC 1,854,251 4 0.46% 2,425,837 Whitestone Fountain Hills, LLC 1,720,807 5 0.43% Target Corporation 1,496,191 6 0.37% 1,580,692 Smith's Food & Drug Centers Inc. 1,228,266 7 0.31% 1,370,079 EN, LLC 1,224,187 8 0.30% 2,509,538 Qwest Corporation 1,132,473 9 0.28% 2,955,801 29SC Ridgeview LP 1,079,348 10 0.27% Inland Western Fountain Hills Four Peaks LLC 3,216,251 Four Peaks AZ Development LLC 1,752,935 Fountain Hills Hotel Developers LLC 1,516,379 Sun Tech Development, LLC 1,370,079 2007 Percentage of Total Net Full Cash Rank Assessed Value 2 0.78% 5 0.61% 7 0.40% 10 034% 4 0.63% 3 0.74% 1 0.81% 6 0.44% 8 0.38% 9 0.34% Totals $ 18,379,029 4.58% $ 21,812,551 5.47% Source: The source of this information is the Maricopa County Assessor's Office. Page 104 Town of Fountain Hills, Arizona Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Tax Levy Current Tax Collections Percent of Current Taxes Collected Delinquent Tax Collections Total Tax Collections Ratio of Total Tax Collections to Total Tax Levy 2007 $1,391,521 $ 1,353,901 97.3% $ 27,206 $ 1,381,107 99.3% 2008 1,630,534 1,574,505 96.6% 47,833 1,622,338 99.5% 2009 1,719,105 1,656,021 96.3% 53,379 1,709,400 99.4% 2010 1,895,552 1,834,884 96.8% 52,189 1,887,073 99.6% 2011 1,340,544 1,298,832 96.9% 24,924 1,323,756 98.7% 2012 1,446,076 1,403,367 97.0% 20,255 1,423,622 98.4% 2013 1,429,284 1,393,084 97.5% 18,931 1,412,015 98.8% 2014 1,449,884 1,421,918 98.1% 18,546 1,440,464 99.4% 2015 892,104 878,216 98.4% 7,475 885,692 99.3% 2016 2,532,115 2,502,081 98.8% - 2,502,081 98.8% Source: The source of this information is the Maricopa County Treasurer's Office. Page 105 Town of Fountain Hills, Arizona Taxable Sales by Category Last Ten Fiscal Years (modified accrual basis of accounting) Note: Other includes all state and local sales tax audit adjustments. Source: The source of this information is the Town's financial records. Page 106 Fiscal Year Ended June 30 2007 2008 2009 2010 Sales category: Construction $ 2,695,237 $ 2,063,189 $ 1,414,308 $ 538,562 Transportation/utilities 1,330,956 1,422,158 1,311,735 1,424,828 Wholesale/retail 4,144,430 3,912,579 3,687,605 3,556,292 Restaurantsibars 537,596 582,226 493,242 509,624 Real estate, rental & leasing 785,490 983,047 665,153 650,400 Services 280,290 327,411 258,139 241,685 Other 1,633,715 1,198,981 1,102,192 723,050 Total $ 11,407,714 $ 10,489,591 $ 8,932,374 $ 7,644,441 Note: Other includes all state and local sales tax audit adjustments. Source: The source of this information is the Town's financial records. Page 106 Fiscal Year Ended June 30 2011 2012 2013 2014 2015 2016 $ 567,135 $ 600,403 $ 567,589 $ 783,064 $ 888,311 $ 918,150 1,388,075 1,409,349 1,402,734 1,375,623 1,383,464 1,438,191 3,567,986 3,601,904 3,598,895 3,653,181 3,889,874 4,116,630 559,931 575,704 645,258 655,654 695,041 709,787 731,758 678,326 720,023 782,453 816,890 753,570 276,566 274,521 310,303 342,079 340,002 365,924 922,029 639,012 712,360 867,213 969,468 1,093,415 $ 8,013,480 $ 7,779,219 $ 7,957,162 $ 8,459,267 $ 8,983,050 $ 9,395,667 Page 107 Town of Fountain Hills, Arizona Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Fiscal Year Ended June 30 Town Rate Maricopa County State Rate Total Tax Rate 2007 2.60% 0.70% 5.60% 8.90% 2008 2.60% 0.70% 5.60% 8.90% 2009 2.60% 0.70% 5.60% 8.90% 2010 2.60% 0.70% 6.60% 9.90% 2011 2.60% 0.70% 6.60% 9.90% 2012 2.60% 0.70% 6.60% 9.90% 2013 2.60% 0.70% 5.60% 8.90% 2014 2.60% 0.70% 5.60% 8.90% 2015 2.60% 0.70% 5.60% 8.90% 2016 2.60% 0.70% 5.60% 8.90% Source: The source of this information is the Arizona Department of Revenue. Page 108 Town of Fountain Hills, Arizona Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Community Municipal Highway Year General Facilities Property User Special Total Debt Ended Obligation District Corporation Revenue Assessment Outstanding Per June 30 Bonds Bonds Bonds Bonds Bonds Debt Capita 2007 $ 8,620,000 $ 4,255,000 $ 11,595,000 $ 345,000 $ 6,455 $ 24,821,455 $ 1,082 2008 7,570,000 4,070,000 10,790,000 235,000 3,228 22,668,228 986 2009 6,530,000 3,860,000 9,905,000 130,000 - 20,425,000 898 2010 5,415,000 3,630,000 8,920,000 - - 17,965,000 799 2011 4,595,000 3,370,000 7,885,000 - - 15,850,000 703 2012 3,755,000 3,090,000 6,800,000 - - 13,645,000 612 2013 2,900,000 2,800,000 5,650,000 - - 11,350,000 507 2014 2,000,000 2,495,000 4,425,000 - - 8,920,000 389 2015 9,175,000 2,300,000 1,880,000 - - 13,355,000 628 2016 7,405,000 1,935,000 1,400,000 - - 10,740,000 449 Source: The source of this information is the Town's financial records and the U.S. Bureau of Economic Analysis. Note: All amounts presented are net of original issuance discounts and premiums. Population and personal income data can be found in the Schedule of Demographic and Economic Statistics. Personal income for fiscal year 2016 was not available. Page 109 Town of Fountain Hills, Arizona Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Fiscal Year General Obligation Bonds Estimated Actual Taxable Value of Property Percentage of Estimated Actual Taxable Value of Property Net General Obligation Bonded Debt per Capita Municipal Property Corporation Bonds Net Municipal Property Corporation Debt per Capita Total Revenues - All Sources 2007 $ 8,620,000 $ 3,353,535,254 0.26% $ 376 11,595,000 $ 506 $ 25,498,295 2008 7,570,000 5,318,424,271 0.14% 329 10,790,000 469 25,113,211 2009 6,530,000 5,867,175,208 0.11% 287 9,905,000 436 21,331,076 2010 5,415,000 5,524,103,469 0.10% 241 8,920,000 397 18,958,595 2011 4,595,000 4,915,512,973 0.09% 204 7,885,000 350 18,248,326 2012 3,755,000 3,971,538,882 0.09% 165 6,800,000 300 17,184,895 2013 2,900,000 3,309,940,258 0.09% 127 5,650,000 247 17,723,994 2014 2,000,000 3,260,087,621 0.06% 85 4,695,000 199 18,891,967 2015 9,175,000 3,616,672,185 0.25% 384 3,525,000 147 22,161,316 2016 7,405,000 4,290,989,150 0.17% 310 1,400,000 59 22,262,140 Source: The source of this information is the Department of Revenue and the Town's financial records. Note: All bond amounts are net of original issuance discounts and premiums. Population data can be found in the Schedule of Demographic and Economic Statistics. Page 110 Town of Fountain Hills, Arizona Direct and Overlapping Governmental Activities Debt as of June 30, 2016 Governmental Unit Outstanding Debt Estimated Percentage Applicable Estimated Share of Overlapping Debt Overlapping: Maricopa County $ - 1.17% $ - Maricopa County Community College District 534,225,000 1.17% 6,250,433 Maricopa Integrated Health System 73,000,000 1.17% 854,100 East Valley Institute of Technology - 2.64% - Fountain Hills Unified School District 12,975,000 96.18% 12,479,355 Eagle Mountain Community Facilities District 1,935,000 100.00% 1,935,000 21,518,888 Direct: Town of Fountain Hills, Arizona General Obligation Bonds 7,405,000 Revenue Bonds 1,400,000 Total direct and overlapping debt $ 30,323,888 Source: The source of this information is the Town's records, the State and County Abstract of the Assessment Roll, the Arizona Department of Revenue Report of Indebtedness and the applicable governmental unit. Note: The estimated percentage of debt outstanding applicable to the Town is calculated based on the Town's secondary assessed valuation (full cash value) as a percentage of the secondary assessed valuation of the overlapping jurisdiction. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town of Fountain Hills. This schedule further estimates the portion of outstanding debt of those overlapping governments that is borne by residents and businesses of the Town. This process recognizes that, when considering a town's ability to issue and repay long-term debt, the entire debt burden borne by residents should be taken into account. However, this fact does not imply that every taxpayer is a resident, and, therefore, responsible for repaying the debt of each overlapping government. Page III 6% Debt Limit Debt limit Total applicable to limit Legal debt margin Total debt applicable to the limit as a percentage of debt limit 20% Debt Limit Debt limit Total applicable to limit Legal debt margin Total debt applicable to the limit as a percentage of debt limit Town of Fountain Hills, Arizona Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year Ended June 30 Inns )nnQ Inns Inin $ 23,842,810 $ 36,644,287 $ 41,084,541 $ 39,073,108 550,000 275,000 - - $ 23,292,810 $ 36,369,287 $ 41,084,541 $ 39,073,108 2% 1% - $ 79,476,032 $ 122,147,624 $ 136,948,469 $ 130,243,693 8,070,000 7,295,000 6,530,000 5,415,000 $ 71,406,032 $ 114,852,624 $ 130,418,469 $ 124,828,693 10% 6% 5% 4% Source: The source of this information is the Town's financial records. Page 112 Fiscal Year Ended June 30 nnl� nnln nn�� nn7A 1nle �nl� $ 34,592,143 $ 27,111,608 $ 22,651,303 $ 21,978,160 $ 24,177,956 $ 24,128,118 S4,J92,14S �) 2/,111,OUZS Z� 22,0J1,SUS �) 21,9/ZS,10U Z� L4,1 / /,W)O Z� 24,126,116 $115,307,143 $ 90,372,027 $ 75,504,344 $ 73,260,534 $ 80,593,185 $ 80,427,061 4,595,000 3,755,000 2,900,000 2,000,000 9,175,000 7,405,000 $110,712,143 $ 86,617,027 $ 72,604,344 $ 71,260,534 $ 71,418,185 $ 73,022,061 4% 4% 4% 3% 11% 9% Page 113 Town of Fountain Hills, Arizona Calculation of Legal Debt Margin as of June 30, 2016 Net limited assessed valuation Water, Sewer, Artificial Lighting, Parks, Open Space, Public Safety, Law Enforcement, Fire and Emergency Facilities, Street and Transportation Facilities, and Recreational Facility Improvements Debt limit - 20% of net limited assessed valuation Net debt applicable to limit 20% legal debt margin All Other General Obligation Bonds Debt limit - 6% of net limited assessed valuation Net debt applicable to limit 6% legal debt margin Total legal debt margin $402,135,304 $ 80,427,061 7,405,000 73,022,061 24,128,118 24,128,118 $ 97,150,179 Source: The source of this information is the Maricopa County Assessor's Office and the Town's financial records. Page 114 Town of Fountain Hills Revenue Bond Coverage Last Ten Fiscal Years Source: The source of this information is the Town's financial records. Page 115 Municipal Facilities Corporation Revenue Bonds Fiscal Year Ended Pledged June 30 Principal Interest Total Revenues Coverage 2007 $ 715,000 $ 473,349 $1,188,349 $18,408,511 15.5 2008 805,000 498,878 1,303,878 18,362,405 14.1 2009 885,000 458,799 1,343,799 15,930,962 11.9 2010 985,000 416,886 1,401,886 14,008,592 10.0 2011 1,035,000 386,630 1,421,630 13,489,416 9.5 2012 1,085,000 327,312 1,412,312 12,995,685 9.2 2013 1,150,000 285,287 1,435,287 13,397,842 9.3 2014 1,225,000 234,176 1,459,176 14,313,158 9.8 2015 2,545,000 184,500 2,729,500 15,583,484 5.7 2016 480,000 32,740 512,740 16,250,673 31.7 Source: The source of this information is the Town's financial records. Page 115 Town of Fountain Hills, Arizona Demographic and Economic Statistics Last Ten Calendar Years Town of Fountain Hills unemployment rate 1.7% Calendar Year 2.6% 4.5% Land use 2006 2007 2008 2009 2010 Population 22,788 22,932 22,984 22,736 22,489 Per capita personal income $ 32,230 $ 32,230 $ 38,439 $ 38,918 $ 40,672 Median age 46.4 46.4 48.3 48.9 53.9 Public school enrollment 2,425 2,307 2,233 2,203 2,103 Town of Fountain Hills unemployment rate 1.7% 1.5% 2.6% 4.5% Land use Total acres 12,996.0 13,005.7 13,005.7 13,005.7 Total square miles 20.31 20.32 20.32 20.32 Vacant lots N/A 3,355 1,295 1,253 Number of units Housing 12,681 12,850 12,832 12,927 Lodging 4 4 4 4 Restaurants 50 53 47 52 Shopping centers 14 14 19 19 Schools Public 4 4 4 4 Preschool 5 4 4 4 Charter 2 1 1 1 Sources: The source of the "Per Capita Personal Income", "Median Age" and "Unemployment Rate" information is Sites USA. The source of the "Population" is the U.S. Census Bureau. The source of School Enrollment is the Fountain Hills Unified School District No. 98. Other information is from the Town's records. Note: N/A indicates the information is not available. * Information obtained is based on calendar years; therefore, the latest information obtained was from 2015 Page 116 4.8% 13,005.7 20.32 1,226 12,983 4 53 20 4 4 1 Calendar Year 2011 2012 2013 2014 2015* 22,554 22,695 22,893 23,602 23,899 $ 44,660 $ 47,260 $ 48,244 $ 46,619 $ 48,240 53.9 53.9 53.0 53.7 53.8 1,981 1,886 1,820 1,692 1,619 6.7% 5.6% 6.0% 5.4% 2.4% 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 20.32 20.32 20.32 20.32 20.32 1,218 1,209 1,196 1,165 1,247 12,990 12,977 12,991 12,981 13,002 4 4 4 4 4 56 56 54 43 46 20 20 20 20 20 4 3 3 3 3 4 6 7 7 7 1 1 1 1 1 Page 117 Town of Fountain Hills, Arizona Principal Employers Prior Fiscal Year and Nine Years Ago 2015 Monks Construction MCO Properties, Inc. Town of Fountain Hills Totals Total Town employment :106111 4,082 2006 Number of Employees Rank 270 1 130 3 95 5 80 7 70 8 70 10 70 9 190 2 125 4 87 6 24.2% 1,187 Source: The source of this information is the Maricopa Association of Governments. Note: Total Town employment for 2006 was not available. * Data for 2016 was not available. Page 118 Percentage Number of of Total Town Employer Employees Rank Employment Fountain Hills Unified School District No. 98 171 1 4.2% Fountain View Village 140 2 3.4% Rural Metro Corporation 111 3 2.7% Target Stores 101 4 2.5% Firerock Country Club 100 5 2.4% Safeway Stores 88 6 2.2% Fry's Food Stores 80 7 2.0% Bashas 70 8 1.7% Eagle Mountain Golf Club 70 9 1.7% Sunridge Canyon Golf Course 59 10 1.4% Monks Construction MCO Properties, Inc. Town of Fountain Hills Totals Total Town employment :106111 4,082 2006 Number of Employees Rank 270 1 130 3 95 5 80 7 70 8 70 10 70 9 190 2 125 4 87 6 24.2% 1,187 Source: The source of this information is the Maricopa Association of Governments. Note: Total Town employment for 2006 was not available. * Data for 2016 was not available. Page 118 Town of Fountain Hills, Arizona Authorized Full-time Equivalent Government Employees by Function Last Ten Fiscal Years Fiscal Year Ended June 30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Municipal court 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00 3.63 3.63 Administration 13.00 13.50 13.50 13.25 11.25 11.58 11.68 10.56 11.33 11.63 Development services 41.00 40.50 40.00 35.75 23.25 20.25 18.75 16.25 16.30 16.30 Community services 28.00 29.25 29.75 27.10 21.63 21.53 21.18 20.18 21.06 20.76 Total 87.00 88.25 88.25 81.10 61.13 58.36 56.61 50.99 52.32 52.32 Source: The source of this information is the Town's financial records. Page 119 Town of Fountain Hills, Arizona Operating Indicators by Function Last Ten Fiscal years Source: The source of this information is the Town's financial records. Note: N/A indicates that the information is not available. Page 120 Fiscal Year Ended June 30 Function/Program 2007 2008 2009 2010 2011 Municipal Court Cases filed N/A N/A N/A 3,520 2,584 Hearings/Trials held N/A N/A N/A 1,089 738 Administration FTEs per 1,000 residents 3.6 3.5 3.3 3.2 2.7 Registered voters - general election none 14,335 none 15,511 none Voter turnout - general election none 39% none 50% none Development Services Building permits issued 759 716 391 409 354 Building inspections conducted 7,975 5,692 3,189 1,936 1,546 Number of code violation cases N/A N/A N/A 1,024 843 Number of zoning cases N/A N/A N/A 7 14 Community Services Number of Community Center bookings N/A N/A N/A 3,396 3,315 Number of participants in recreational programs N/A N/A N/A 1,960 1,759 Number of Senior Services members N/A N/A N/A 1,105 1,205 Number of home delivered meals N/A N/A N/A 10,169 9,742 Law Enforcement (contracted) Physical arrests 993 524 825 679 645 Traffic violations 2,315 2,504 4,900 2,959 1,909 Fire & Emergency Medical (contracted) Total incident responses 3,069 2,694 2,787 2,875 3,179 Average response time (in minutes) 3:49 3:37 3:44 4:32 3:46 Source: The source of this information is the Town's financial records. Note: N/A indicates that the information is not available. Page 120 Page 121 Fiscal Year Ended June 30 2012 2013 2014 2015 2016 2,173 1,740 1,649 1,738 1,593 731 703 1,665 1,585 1,564 2.6 2.5 2.2 2.2 2.2 16,074 none N/A 16,213 none 34% none N/A 38% none 352 419 566 443 381 1,257 1,395 2,131 2,448 2,129 804 746 716 752 713 7 10 41 65 72 3,236 3,196 3,383 3,439 3,124 1,833 1,789 2,291 2,249 2,910 1,208 1,118 1,189 1,273 1,326 8,419 6,941 4,799 4,035 3,497 522 545 743 445 220 1,366 1,296 1,379 1,539 1,215 3,082 3,136 2,956 3,166 3,191 3:50 3:53 3:37 3:57 3:25 Page 121 Town of Fountain Hills, Arizona Capital Assets Statistics by Function Last Ten Fiscal Years Source: The source of this information is the Town's facilities records. Note: N/A indicates the information is not available. Page 122 Fiscal Year Ended June 30 Function/Program 2007 2008 2009 2010 2011 2012 Public safety Number of fire stations 2 2 2 2 2 2 Other highways and streets Streets (centerline miles) 178.9 178.9 178.9 178.9 178.9 178.9 Streets (lane miles) 390 390 390 390 390 390 Pedestrian lighting 34 34 34 34 34 34 Traffic signals 12 13 13 13 13 13 Parks and recreation Acreage -developed parks 116 116 116 116 116 116 Playgrounds 6 7 7 7 7 7 Baseball/softball diamonds 6 6 6 6 6 6 Soccer/football fields 1 7 7 7 7 7 Community centers 1 1 1 1 1 1 Preserve acreage N/A N/A N/A N/A N/A 740 Miles of trails N/A N/A N/A N/A N/A 4.3 Source: The source of this information is the Town's facilities records. Note: N/A indicates the information is not available. Page 122 Fiscal Year Ended June 30 2013 2014 2015 2016 2 2 2 2 178.9 178.9 178.9 178.9 390 390 390 390.5 34 34 85 91 13 13 13 13 116 116 119 119 7 7 7 7 6 6 6 6 7 7 7 7 1 1 1 1 740 740 807.2 807.2 10.43 10.43 15.8 15.8 Page 123 (This page intentionally left blank) Page 124 AIN 0 � b 9jf that i s AT��'�/ Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 480-816-5100 www.fh.az.gov - facebook.com/TownofFountainHills twitter.com/fhazgov TOWN OF FOUNTAIN HILLS, ARIZONA SCHEDULE OF LTAF II FUNDS REVENUES AND EXPENDITURES YEAR ENDED JUNE 30, 2016 Revenues Expenditures Transit Operating Capital Other Transportation Operating Capital Other Total Expenditures Total unexpended LTAF II funds LTAF II Funds Beginning fund balance, July 1 214,927 Ending fund balance, June 30 $ 214,927 Signature Town of Fountain Hills, Arizona Finance Director Report Date Page 1 See accompanying notes to this schedule TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE SCHEDULE OF LTAF 11 FUNDS JUNE 30, 2016 (1) Revenues and expenditures are reported on the modified accrual basis of accounting. (2) The Town has not yet expended all of the funds received from fiscal year 2011-12, fiscal year 2012-13, fiscal year 2013-14, and fiscal year 2014-15. In addition, the Town has yet received funds related to fiscal year 2015-16. The Town has expended monies to subsidize the Ride Choice program. Project 1: Subsidize the Ride Choice program based on the transit study performed in previous years. $ 214,927 Town of Fountain Hills, Arizona Annual Expenditure Limitation Report Year Ended June 30, 2016 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 CONTENTS Independent Accountant's Report Annual Expenditure Limitation Report - Part I Annual Expenditure Limitation Report - Part II Annual Expenditure Limitation Report - Reconciliation Notes to Annual Expenditure Limitation Report PAGE 2 rd HeinfeldMeech INDEPENDENT ACCOUNTANT'S REPORT The Auditor General of the State of Arizona The Honorable Mayor and Town Council of the Town of Fountain Hills, Arizona Tucson • Phoenix • Flagstaff HeinfeldMeech.com We have examined the accompanying Annual Expenditure Limitation Report of Town of Fountain Hills, Arizona for the year ended June 30, 2016. The Town of Fountain Hills, Arizona's management is responsible for this report. Our responsibility is to express an opinion on this report based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence supporting the amounts and disclosures in the report and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. In our opinion, the Annual Expenditure Limitation Report referred to above presents, in all material respects, the information prescribed by the uniform expenditure reporting system as described in Note 1. <ko�e.�c�,u�c� �co.,��. Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 19, 2016 Page I TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT — PART I YEAR ENDED JUNE 30, 2016 1. Economic Estimates Commission expenditure limitation $ 26,804,069 2. Voter -approved alternative expenditure limitation (approved N/A) 3. Enter applicable amount from line 1 or line 2 4. Amount subject to the expenditure limitation (total amount from Part II, Line C) 5. Amount under the expenditure limitation $ 26,804,069 $ 15,310,762 $ 11,493,307 I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the requirements of the uniform expenditure reporting system. Signature of Chief Fiscal Officer Name and Title: Telephone Number Page 2 Rudolahv. Finance Director 480-816-5162 Date: October 19, 2016 See accompanying notes to report. TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART II YEAR ENDED JUNE 309 2016 Internal Service Fiduciary Funds Funds Total $ $ $ 24,787,833 5,415,799 2,001,850 193,084 75,000 219,327 8,532 1,563,479 14 Total exclusions claimed 9,477,071 9,477,071 C. Amounts subject to expenditure limitation $ 15,310,762 $ $ $ $ 15,310,762 See accompanying notes to report. Governmental Enterprise Description Funds Funds A. Amounts reported on the Reconciliation, Line D $ 24,787,833 $ B. Less exclusions claimed: 1 Bond proceeds 5,415,799 Debt service requirements on bonded indebtedness 2,001,850 Proceeds from other long-term obligations Debt service requirements on other long-term obligations 2 Dividends, interest, and gains on the sale or redemption of investment securities 193,084 3 Trustee or custodian 4 Grants and aid from the federal government 5 Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes 75,000 6 Amounts received from the State of Arizona 219,327 7 Quasi-extemal interfund transactions 8,532 8 Amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements 9 Highway user revenues in excess of those received in fiscal year 1979-80 1,563,479 10 Contracts with other political subdivisions 11 Refunds, reimbursements, and other recoveries 12 Voter -approved exclusions not identified above 13 Prior years carryforward Internal Service Fiduciary Funds Funds Total $ $ $ 24,787,833 5,415,799 2,001,850 193,084 75,000 219,327 8,532 1,563,479 14 Total exclusions claimed 9,477,071 9,477,071 C. Amounts subject to expenditure limitation $ 15,310,762 $ $ $ $ 15,310,762 See accompanying notes to report. TOWN OF FOUNTAIN MLLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED JUNE 30, 2016 Internal Governmental Enterprise Service Fiduciary Description Funds Funds Funds Funds Total A. Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements $ 27,357,799 $ $ $ $ 27,357,799 B. Subtractions: 1. Items not requiring the use of working capital - Depreciation Loss on disposal of capital assets Bad debt expense Other postemployment benefits expense Claims incurred but not reported Pension expense Landfill closure and postclosure care costs 2. Expenditures of separate legal entities established under Arizona - Revised Statues 2,569,966 2,569,966 3. Present value of net minimum capital lease and installment purchase contract payments recorded as expenditures at inception of the agreement: - 4. Involuntary court judgments 5. Total subtractions 2,569,966 2,569,966 C. Additions: 1. Principal payments on long-term debt - 2. Acquisition of capital assets 3. Other postemployment benefits paid in the current year but reported as expenses in previous years 4. Claims paid in the current year but reported as expenses incurred but not reported in previous years 5. Pension contributions paid in the current year 6. Landfill closure and postclosure care costs paid in the current year but reported as expenses in previous years 7. Total additions D. Amounts reported on Part II, Line A $ 24,787,833 $ $ $ $ 24,787,833 See accompanying notes to report. TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07. The AELR excludes expenditures, expenses, or deductions of certain revenues specified in the Arizona Constitution, Article IX, §20, from the total expenditures, expenses, or deductions reported in the fund financial statements. In accordance with the VERS requirements, a note to the AELR is presented below for any exclusion claimed on Part II and each subtraction or addition in the Reconciliation that cannot be traced directly to an amount reported in the fund financial statements. All references to financial statement amounts in the following notes refer to the Statement of Revenues, Expenditures, and Changes in Fund Balances for the Governmental Funds. NOTE 2 - The exclusion claim for expenditures of separate legal entities established under Arizona Revised Statutes in the Governmental Funds consists of expenditures from the Municipal Property Corporation Debt Service Fund, Cottonwoods Maintenance Fund and the Eagle Mountain Debt Service Fund. Governmental Municipal Property Corporation Debt Service Fund $ 2,158,550 Cottonwoods Maintenance Fund 2,705 Eagle Mountain Debt Service Fund 408,711 $ 2,569,966 NOTE 3 - Bond proceeds and interest earnings are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The rollforward of carryforward exclusions is as follows: Governmental Carryforward exclusions as of 6/30/15 $ 5,415,799 Prior year bond proceeds utilized (5,415,799) Carryforward exclusions as of 6/30/16 $ - NOTE 4 - The exclusions claimed for debt service requirements on bonded indebtedness in the Governmental Funds consisted of principal retirement, interest, and fiscal fees in the General Obligation Debt Service Fund. Page 5 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 NOTE 5 - The exclusions claimed for dividends, interest, and gains on the sale or redemption of investment securities in the Governmental Funds consisted of investment earnings. The current year exclusion utilized is a follows: Governmental Carryforward exclusions as of 6/30/15 $ - Investment Earnings 219,058 Current year exclusion utilized (193,084) Carryforward exclusions as of 6/30/16 $ 25,974 NOTE 6 - Grant revenues from private organizations are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year grant exclusion utilized is a follows: Proposition 202 Current year exclusion utilized 75,000 $ 75,000 NOTE 7 - State grant revenues are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year state grant exclusion utilized is a follows: Arizona Sports and Tourism Authority $ 72,624 Proposition 302 28,347 Regional Area Road Fund 118,356 Current year exclusion utilized $ 219,327 NOTE 8 - Quasi -external interfund transactions are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year exclusion is $8,532 related to the Town's environmental fee paid from the General Fund to the Environmental Fee Fund. Page 6 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 NOTE 9 - The highway user revenue (HURF) earned in excess of the amounts received in fiscal year 1979-80 is as follows: HURF Fund Intergovernmental Revenue Less: Vehicle License Tax Revenues Excludable Revenue Carryforward HURF funds as of 6/30/15 HURF Fund Expenditures Less: Expenditures of Vehicle License Tax Less: Expenditures of Non -excludable Revenue Plus: Amounts Transferred to the Environmental Fund for Eligible HURF Expenditures Less: Current year HURF funds utilized Less: Prior Year HURF exclusions utilized Carryforward HURF funds as of 6/30/16 Page 7 $ 2,378,871 (927,440) $ 1,451,431 975,977 2,498,714 (927,440) (52,795) 45,000 (1,451,431) (112,048) $ 863,929 QUARTERLY FINANCIAL REPORT Three Months Ending September 2016 lz tis►' September, 2016 11/03/2016 1 ALL FUNDS REVENUES The General Fund is the Town's main operating fund and is used to fund general government operations including police and fire, parks, Community Center; other funds are restricted for specific purposes. Revenues by Fund Three Months Ending September 30, 2016 Debt Svc G0, capital Projects 6% 2%—\ ExciseTax 2% Special Revenue 1% Total = $4.6M 2 OPERATING FUNDS (Consist of General Fund, Public Art Fund, Internal Service Fund and Equipment Replacement Fund) OPERATING FUND REVENUES BY SOURCE Fountain Hills local sales tax and State shared revenues accounted for 88% of the Operating Funds. Operating Fund revenues are at 94% of budget. Through September 30 TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2016 OPERATING FUND REVENUES Staff Sta Local Sls Tax $1.7M State Inc Tax $03M State Sls Tax $0.5M Other $0.4M TOTAL $3.3M al OPERATING FUNDS REVENUE Local sales tax revenues are at 92% of budget; State Shared revenues are at 97% of budget — permit revenues are lower than projections while other revenues are generally in line with projections. $2.0 $1.8 $0.8 $0.5 $0.3 $0.0 Total = $3.3M TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30 OPERATING FUND REVENUES F4x-,and-Fees I' FY15-16 FY16-17 ■ FY16-17 BUDGET Other 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. TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30 STATE SHARED REVENUES $0.8 TOTAL $1.2M State Income Tax State Sales Tax et 101 Local Sales tax represents 53% of Operating Fund revenue. Increased 5% over prior year LOCAL SALES TAX TOTAL SALES TAX COLLECTIONS BY YEAR FY11 THROUGH FY17* $2,500,000 $2,000,000 $1,500,000 $ I, 00 0,0 00 $500,000 $0 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15-16 FY16-17 Budget 5 Yr *excludes construction activity Average $157745499 = 87.2% OF BUDGET LOCAL SALES TAX - RETAIL Retail Activity July through September FY13 - FY17 $1.5 $1.0 $0.5 $0.0 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Bu dget 5 Yr millions Average $955,745 = Decrease of 0.3% from prior year LOCAL SALES TAX - RESTAURANT $300,000 $200,000 $100,000 $0 Restaurant/Bar Activity July through September FY13 - FY17 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Budget 5 Yr Average $150,808 = Increase of 11.4% over prior year �1 LOCAL SALES TAX - TELECOM $s,000,000 $800,000 $600,000 $400,000 $200,000 Transportation/Telecommunications/Utilities Activity July through September FY13 - FY17 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Bu dget 5 Yr Average $405,208 = Increase of 5.4% from prior year WE LOCAL SALES TAX - CONSTRUCTION $300,000 $200,000 $100,000 $0 Construction Sales Tax Activity July through September FY13 - FY17 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Budget 5 Yr Average $8669045 = Decrease of 8.1 % from prior year 50% of this revenue funds capital projects Compared to the corresponding period of last fiscal year, Operating Fund expenditures increased by 8% from the same period. Mayor & Council $ Administration General Government Municipal Court Public Works Development Services Connnunity Services Fire & Emergency Medical Law Enforcement TOTAL $ 16,310 $ 587.095 66,383 323,210 517,234 847,952 914,851 3,273,035 $ Operating Fund Expenditures by Department Three Months Ending September 30, 2016 Total = $3.5M 18,076 605,655 148,716 67,965 149,314 144,028 562,143 876,777 967,449 3,540,123 LAW bkl ENFOR( 2; FIRE & EMERGENCY MED i�MMUNII MAYOR & COUNCIL 1% ADMINISTRATION 17% GENERAL GOVERNMENT 4% MUNICIPAL COURT 2% PUBLIC WORKS DEVELOPMENT 4% SERVICES 4% 12 OTHER FUNDS G] 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. TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30 HIGHWAY USER REVENUE FUND REVENUES TOTAL $03M $154,687 FY14-15 FY15-16 FY16-17 YTD Budget iIGHWAY USERS TAX ■ VEHICLE LICENSE TAX IN -LIEU FEES SALES TAX $744,606 = Increase of 30.2% from prior year (including Vehicle License Tax and Sales Tax) $.9 $.8 $.7 $.6 $.5 $.4 $.3 $.z $J $.0 14 HURF EXPENDITURES Council priority for FY15-16 is still pavement maintenance. HURF Expenditures Three Months Ending September 30, 2016 VEHICLE MAINTENANCE^ 6% \ TRAFFIC SIGNALS 11% STREET SIGNS 4% PAVEMENT MANAGEMENT 12% Total = $.2M 15 RESTRICTED FUNDS TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2016 OTHER FUNDS REVENUES & EXPENDITURES $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Dev Fees Special Revenue Excise Tax Debt Svc MPC Revenues ■ Expenditures Debt Svc GO Capital Projects Mel FUND BALANCE investment policy. Fiscal Quarter -End Fund Balances (Unaudited) September 30, 2016 Operating Funds Rainy Day Fund $ 2,624,843 General Fund 4,428,221 Fund balance Public Art Fund 38,238 Internal Service Fund (1,289) includes Vehicle Replacement Fund 646,348 $ 7,736,361 Operating Fund Highway User Revenue Fund (HURF) 2,103,994 2,103,994 reserves that are Special Revenue Funds Special Revenue Fund (219,271) not available for Court Enhancement Fund 300,852 appropriation; Environmental Fund Cottonwoods Maintenance District Fund 354,991 14,618 451,190 other funds are Excise Tax Funds Downtown Strategy Fund 937,839 restricted for Economic Development Fund 36,127 Tourism Fund 117,250 1,091,216 specific purposes. Debt Service General Obligation Debt Service Fund 692,413 Eagle Mountain CFD Debt Service Fund 120,980 Funds are MPC Debt Service Fund 561,460 1,374,853 Capital Projects invested only in Capital Projects Fund 6,160,473 government m e nt Replacement Fund 1,054,312 7,214,785 Development FeesFacilities securities Law Enforcement 203,484 Fire & Emergency 108,062 according to the Parks & Recreation 273,194 Town's adopted Open Space 1,681,383 2,266,123 Grand Total $ 22,238,522 investment policy. SUMMARY Note: Comparison of Actual to Budget is only for the current year - not a representation of the future trends. • Operating Fund revenues are 14.3% under budget but 3.6 %higher than last fiscal year • Operating Fund expenditures are 8.1% under budget but 8.2% higher than last fiscal year • Pavement management remains a priority and is funded through HURF and Vehicle License Tax revenues • Fund balances remain acceptable for all funds • Local economic indicators remain stable REVENUES/EXPENDITURES BY $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 YEAR (General Fund only) � Expenditures by Year —m$— Revenues By Year 19 YTD OPERATING FUND REVENUES $3.5 $3.0 $ 2.5 N $2.0 c 0 $1.5 $1.0 $0.5 YTD Operating Fund Revenues FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 YTD OPERATING FUND EXPENDITURES $4.0 $3.5 $3.0 $2.5 c 0 $2.0 $1.5 $1.0 $0.5 YTD Operating Fund Expenditures FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 21 YTD OPERATING FUND YTD Operating Fund Expenditures - By Department $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- —� J� �\ F co 01 co ■ FY12-13 ■ FY13-14 ■ FY14-15 ■ FY15-16 - FY16-17 22 YTD OPERATING FUND $4,000,000.00 $3,500,000.00 $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $500,000.00 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 TOTAL REVENUES TOTAL EXPENDITURES 23 TOWN OF FOUNTAIN HILLS QUARTERLY BUDGET REPORT THREE MONTHS ENDING SEPTEMBER 30, 2016 'b �l�that is Where does the money come from and where does_Mgo? Revenues by Fund Three Months Ending September 30, 2016 Excise 2% Special Revenue 1% Sp HURF 5% Debt Svc GO., capital Projects 6% 2%-1-1 Total = $4.6M Expenditures by Fund Three Months Ending September 30, 2016 FYri CP TiiX Total = $4.3M 2 Operatima Fund Revenues For the fiscal YTD period ending September 30, 2016, total Operating Fund revenues (General Fund, Public Art Fund, Internal Service Funds) were received at 85.7% of budgeted amounts and $114,282 higher than the same time period last fiscal year (an increase of 3.6%). Categories where revenues are higher than the previous year are the local sales tax (up 5.4%), State sales tax (up 3.3%), State income tax (up 8.1%), leases & rents (up 13.7%) as well as charges for services (up 49.3%). Total Operating Fund revenues for this fiscal period are $3,297,992. TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2016 MAJOR REVENUE SOURCES Local Sales Tax $ 2.0 $1.5 TOTAL $2.9M $0.5 $0.0 ❑ FY15-16 FY16-17 ■ Budget The three major revenues in the chart above represent 90.6% 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 (5.4% 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 3.3% higher and State income taxes are 8.1% higher than last year. Overall, these major revenue sources are at 93.9% of the budget for the fiscal year. YTD % YTD YTD YTD FY16-17 FY16-17 FUND FY15-16 FY16-17 Budget Budget Operating Funds $ 3,183,710 $ 3,297,992 $ 3,849,809 85.7% TOWN OF FOUNTAIN HILLS THREE MONTHS ENDING SEPTEMBER 30, 2016 MAJOR REVENUE SOURCES Local Sales Tax $ 2.0 $1.5 TOTAL $2.9M $0.5 $0.0 ❑ FY15-16 FY16-17 ■ Budget The three major revenues in the chart above represent 90.6% 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 (5.4% 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 3.3% higher and State income taxes are 8.1% higher than last year. Overall, these major revenue sources are at 93.9% of the budget for the fiscal year. State Shared Revenues State Shared Revenues include a distribution of the State income and State 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 $1,253,603 which is $71,116 or 6.0% 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. Operating Funds Revenue Report - YTD Ending September 30 YTD FY15-16 YTD FY16-17 YTD FY16-17 Budget % YTD FY16-17 Budget State Sales Tax 505,569 522,168 562,681 92.8% State Income Tax 676,918 731,435 731,363 100.0% Local Sales Tax (2.6%) The fiscal YTD revenue for this category totals $1,954,837 (including all funds), which is 86.8% of projections. Compared to the same time period as last year, the total revenues (all funds) are 0.3% lower. It must be pointed out that the Department of Revenue has changed its reporting method on a monthly basis beginning in June 2016. Consequently, amounts prior to February 2015 are not comparable to current amounts. 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 $955,745 which is 97.0% of projections; compared to last fiscal year, revenues decreased by 0.3%. Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. The revenues for this category total $150,808, which is 78.7% of projections; compared to last fiscal year, revenues are up by 11.4% and higher than any other previous year. Communications/Utilities/Transportation: Utilities, such as EPCOR (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 $405,208, which is 117.9% of what was anticipated; compared to last fiscal year, revenues are up by 5.4%. 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 0 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 $180,338, which is 83.3% of what was budgeted; compared to last fiscal year, revenues are down 8.1%. The Council has dedicated 50% of this revenue to the Capital Projects Fund for future appropriation. Operating Funds Revenue Report - YTD Ending September 30 YTD % YTD YTD YTD FY16-17 FY16-17 FY15-16 FY16-17 Budget Budget Local Sales Tax $ 1,645,165 $ 1,733,591 $ 1,887,764 91.8% $1.2 $1.0 $0.s $0.6 $0.4 $0.2 $0.0 Local Sales Tax Collections by Type (in millions) July - September FY13 through FY17 Trans p/Uti I i ti es/Co MM Construction Resta ura nts/Ba rs Ins/Re I , I Estate Services Other 1 1 _I A-- ■ FY12-13 ■ FY13-14 L_FY14-15 FY15-16 ■ FY16-17 Local sales tax makes up 52.6% of Operating Fund revenues; for the period ending September 30, 2016, collections were $2.OM for all funds ($1.7M in the Operating Fund). Retail and restaurant/bar activities represent 56.6% of total collections; telecommunications and utilities represent another 20.7%. Construction revenues collected this fiscal period total $180,338, which is an 8.1% decrease from last fiscal year. Wholesale/retail sales tax collections decreased 0.3% from the same period last year; restaurant/bar collections are up 11.4% from the same period last year. 9 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 $42,112 or 30.3% of the period budget. New housing permits issued for the fiscal period are 8 single family, 1 multi -family and 1 commercial. 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 $41,189 which is $1,990 (4.6%) less than last year's same fiscal period and 84.2% of the budgeted amount. _ I YTD % YTD YTD YTD FY16-17 FY16-17 FY15-16 FY16-17 Budget Budget Building Permit Fees $27,711 $42,112 $139,128 30.3% 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 $41,189 which is $1,990 (4.6%) less than last year's same fiscal period and 84.2% of the budgeted amount. 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 $29,510 or 82.1 % of the fiscal period budget. YTD % YTD YTD YTD FY16-17 FY16-17 FY15-16 FY16-17 Budget Budget Court Fines & Fees $43,179 $41,189 $48,921 84.2% 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 $29,510 or 82.1 % of the fiscal period budget. 3 YTD % YTD YTD YTD FY16-17 FY16-17 FY15-16 FY16-17 Budget Budget Business License Fees $25,995 $20,740 $25,875 80.2% Animal License Fees 9,478 8,770 10,080 87.0% 3 Operating Fund Expenditures The Operating Fund accounts for most of the day to day operations of the Town, including Police, Fire and Emergency Medical Services, Development Services, Community Services, Court, Council and Administration functions. At the end of the first quarter, 91.9% of the period budget has been expended. Expenditures by Category - YTD Ending September 30 FY15-16 Actual FY16-17 Actual % YTD FY16-17 Budget FY16-17 Budget Wages and Benefits $ 702,935 $ 687,896 81.7% $ 3,366,038 Supplies and Services 148,775 189,069 124.8% 605,982 Contractual Services 2,155,178 2,329,825 102.9% 9,058,022 Maintenance/Utilities 235,780 317,155 104.6% 1,213,036 Capital Expenditures 11,028 - 0.0%1 200,000 Internal Transfers/Contingency 19,340 16,177 6.7% 960,995 TOTAL $ 3,273,036 $ 3,540,122 91.9% $ 15,404,073 • Wages and benefits represent one fifth (19.4%) 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) and the Tourism Coordinator. • Supplies and Services, including Utilities represents 5.3% of the total Operating Fund budget and includes items such as facility maintenance, utilities, office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid expending more than revenues received. • Contractual services represent 65.8% 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 account for the charges associated with maintenance of facilities as well as utilities and represent 9.0% of the total expenditures. • Internal Transfers are charged to the Operating Fund budget by department and transferred to provide monies for future scheduled replacement of vehicles and equipment. Also includes transfers that are made at the end of the fiscal year from the Operating Fund (Community Center) to the Debt Service Fund for the annual bond repayment due in June as well as contingency and other minor expenditures. 7 Department Summary • 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, Administrative Services, Volunteer Program, Economic Development, Information Technology and Customer Service and represents 17.1 % of the Operating Fund budget. The Department is responsible for business recruitment and retention, Town Manager activities, all licensing activity (business, animal, liquor), customer service, audits, public meetings, Channel 11, Town website, elections, Town Attorney, Town Prosecutor, budget and financial reporting, etc. • General Government is a new department and will include costs that are common to the Town as a whole (4.2%). • Municipal Court represents all the costs of the operations of the court (1.9%). • Public Works (4.2% of Operating Fund expenditures) was broken out from Development Services in the prior years. This department includes public works, open space maintenance, stormwater management, and facilities maintenance. • Development Services (4.1% of Operating Fund expenditures) includes programs such as engineering, building safety, and traffic and capital projects. Divisions included in Development Services are Planning, Zoning, Code Enforcement, Building Safety, and Mapping & Graphics. • Community Services (15.9% of Operating Fund expenditures) includes the Town's park system (Fountain Park, Golden Eagle Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for Seniors. This department includes the cost of the annual debt service payment that is transferred to the Debt Service Fund each year to cover the semi- annual payments in December and June. E Expenditures by Department - YTD Ending September 30 FY15-16 Actual FY16-17 Actual % YTD FY16-17 Budget FY16-17 Budget Mayor & Council $ 16,310 $ 18,076 99.7% $ 72,545 Administration 587,095 605,655 106.5% 2,275,280 General Government - 148,716 69.0% 862,532 Municipal Court 66,383 67,965 84.6% 321,254 Public Works - 149,314 64.9% 920,201 Development Services 323,210 144,028 62.1% 927,139 CornnxnityServices 517,234 562,143 94.2% 2,386,294 Fire & Emergency Medical Services 847,952 876,777 94.6% 3,708,717 Law Enforcement 914,851 967,449 98.5% 3,930,111 TOTAL $ 3,273,035 $ 3,540,123 91.9% $ 15,404,073 • 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, Administrative Services, Volunteer Program, Economic Development, Information Technology and Customer Service and represents 17.1 % of the Operating Fund budget. The Department is responsible for business recruitment and retention, Town Manager activities, all licensing activity (business, animal, liquor), customer service, audits, public meetings, Channel 11, Town website, elections, Town Attorney, Town Prosecutor, budget and financial reporting, etc. • General Government is a new department and will include costs that are common to the Town as a whole (4.2%). • Municipal Court represents all the costs of the operations of the court (1.9%). • Public Works (4.2% of Operating Fund expenditures) was broken out from Development Services in the prior years. This department includes public works, open space maintenance, stormwater management, and facilities maintenance. • Development Services (4.1% of Operating Fund expenditures) includes programs such as engineering, building safety, and traffic and capital projects. Divisions included in Development Services are Planning, Zoning, Code Enforcement, Building Safety, and Mapping & Graphics. • Community Services (15.9% of Operating Fund expenditures) includes the Town's park system (Fountain Park, Golden Eagle Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for Seniors. This department includes the cost of the annual debt service payment that is transferred to the Debt Service Fund each year to cover the semi- annual payments in December and June. E • Fire & Emergency Medical Services represents 24.8% 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 27.3% 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. Operating Fund Expenditures by Department Three Months Ending September 30, 2016 LAW FIRI EMERC ME 25' 140 Total = $3.5M MAYOR & I NISTRATI ON 17% GENERAL GOVERNMENT 4% INICIPAL COURT 2% SERVICES 4% PUBLIC WORKS 4% I Other Funds: • Highway User Revenue Fund (Streets) • Excise Tax (Downtown Strategy, Economic Development and Tourism) • Special Revenue (Grants) • Capital Projects (Capital Projects and Facilities Replacement) • Development Fees o"1�1 J A IN 4j�{ 0 il1l z b � b 90,fhat is Xt 10 Highway User Revenue Fund (HURF) - Streets This fund supports most of the Town's street and traffic operations and is managed by the Public Works Department. Less revenues were received than budgeted; however, expenditures did not exceed the anticipated resources. The fund is primarily supported by the State Highway User Revenue Fund (46.7%), Vehicle License Taxes (30.9%) and from a portion of the dedicated sales tax. 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 $10,298 for in lieu fees. Restitution fees are recovered from damage to Town property as a result of vehicle accidents and included in miscellaneous & other. HURF Expenditures by Program - YTD Ending September 30 HURF Revenues - YTD Ending September 30 YTD FYI 6-17 % YTD FY16-17 Budget FY16-17 Budget YTD FY15-16 YTD FY16-17 % YTD FY16-17 Budget FY16-17 Budget Sales Tax Adopt A Street S - $ 154,687 89.3% $ 692,778 State Shared Revenues 4,665 565,137 577,558 97.3% 2,373,986 In Lieu Fees 56,372 5,640 10,298 15.7% 262,000 Miscellaneous & Other 3.9% 1,317 2,063 32.6% 25,300 Grand Total HURF 69,767 $ 572,094 1 $ 744,606 88.8%1 $ 3,354,064 This fund supports most of the Town's street and traffic operations and is managed by the Public Works Department. Less revenues were received than budgeted; however, expenditures did not exceed the anticipated resources. The fund is primarily supported by the State Highway User Revenue Fund (46.7%), Vehicle License Taxes (30.9%) and from a portion of the dedicated sales tax. 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 $10,298 for in lieu fees. Restitution fees are recovered from damage to Town property as a result of vehicle accidents and included in miscellaneous & other. HURF Expenditures by Program - YTD Ending September 30 YTD FY15-16 YTD FYI 6-17 % YTD FY16-17 Budget FY16-17 Budget Admin stration $ 26,377 $ 82,700 99.8% $ 331,598 Adopt A Street 736 - 0.0% 1,010 Legal Services 4,665 - 0.0% - Open Space 51,391 56,372 66.4% 339,583 Pavement Maintenance 38,639 25,310 3.9% 2,618,080 Street Signs 12,434 9,046 51.9% 69,767 Street Sweeping - - 0.0% - Traffic Signals 20,648 22,970 56.2% 163,483 Vehicle Maintenance 14,538 12,387 69.6% 71,175 Grand Total HURF $ 169,428 $ 208,785 23.2% $ 3,594,696 • 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 is the cost of administering and maintaining the Adopt A Street program. 11 • Legal Services represent the allocated portion of the Town attorney 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. • Street Signs program includes personnel and maintenance costs for the Town's 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 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 vehicles and heavy equipment. 12 Excise Tax - All Funds (Downtown Strategy, Economic Development, Tourism) Excise Tax Revenues - All Funds - YTD Ending September 30 Ending September 30 YTD YTD FY15-16 FY16-17 % YTD FY16-17 FY16-17 Budget Budget Revenues $ 87,950 $ 85,713 81.7% $ 419,521 Grand Total Excise Tax Funds $ 87,950 1 $ 85,713 1 81.7%1$ 419,521 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's focus is for infrastructure improvements and development; Economic Development's 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. Excise Tax Funds Expenditures by Category - YTD Ending September 30 YTD FY15-16 YTD FY16-17 % YTD FY16-17 Budget FY16-17 Budget Wages and Benefits $ 38,061 $ 35,942 84.8% $ 169,451 Supplies and Services 15,337 7,734 124.8% 24,792 Contractual Services 67,205 34,621 75.9% 182,530 Maintenance/Utilities 5,284 353 12.5% 11,320 Internal Transfers 637 1,123 71.7%1 6,265 Grand Total all Categories $ 126,524 $ 79,773 80.9% $ 394,358 • Wages and benefits, which represent 45.1% of the total Excise Tax operating budget, is the largest component of expenditures, just ahead of contractual services. • Supplies and Services represents 9.7% 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 and supplies represent 43.4% of the budget and include contracts for downtown holiday lighting, Greater Phoenix Economic Council (GPEC), and planned professional services for marketing strategies. • Maintenance/Utilities include costs for lighting and sign repairs. • Internal/Transfers reflect the expenditures in the Capital Projects Fund for minor costs. 13 Development Fees These fees are placed into restricted funds with revenues paid by developers at the time of new residential and commercial construction permits. The decrease in permit activity over the same time period as last year is related to the development fee study that implemented new fees as of August 1, 2014. The study was presented to the public at a Public Hearing in February, 2014 and resulted in the elimination of several categories of fees and changes in the remaining categories. During the three months of this fiscal year, there have been ten (10) permit applications including development fees. Revenues by Category - YTD Ending September 30 - Development Fees FY15-16 Actual FY16-17 Actual % YTD FY16-17 FY16-17 Budget Budget Law Enforcement $ - $ - 0.0% $ - Fire/Emergency 23,147 3,665 6.3% 58,421 Parks/Rec 14,330 15,776 12.9% 122,414 Open Space 5,396 (430) (7.2%) 6,000 Grand Total All Funds $ 42,873 1 $ 19,011 10.2% $ 186,835 Expenditures by Category - YTD Ending September 30 - Development Fees FY15-16 Actual FY16-17 Actual % YTD FY16-17 FY16-17 Budget Budget Law Enforcement $ - $ - 0.0% $ - Fire/Emergency - - 0.0% - Parks/Rec - - 0.0% - Open Space 135 134 25.0% 535 Grand Total All Funds $ 135 $ 134 25.0% $ 535 14 Capital Proiects 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 year-to-date period ending September 30, 2016. FY16-17 Capital Projects Fund Revenues - YTD Ending September 30 Ending September 30 - Capital Projects YTD FY16-17 Actual % FY16-17 Budget FY16-17 Budget Construction Sales Tax $ 90,520 20.9% $ 433,023 Grants - 0.0% 255,000 Misc. - 0.0% 150,000 Interest Income (513) (8.6%) 6,000 Grand Total Capital Projects $ 90,007 10.7% $ 844,023 The table below summarizes the projects that were included in the current year budget including the original budgeted expenditure, the year to date expenditures and the percentage of fiscal year end expenditures. Some of the projects have not started yet and therefore have no expenditures. FY16-17 Expenditures by Category - YTD Ending September 30 - Capital Projects YTD FY16-17 Actual % FY16-17 Budget FY16-17 Budget D6030 DRAINAGE-ASHBROOK WASH C $ - 0.0% $ 700,000 D6047 MISC DRAINAGE IWROVEMEN - 0.0% 50,000 E8502 DOWNTOWN VISION PLAN -PHA - 0.0% 400,000 E8505 DOWNTOWN LIGHTING - 0.0% 200,000 F4005 FIRE STATION 2 RELOCATIO - 0.0% 3,800,000 F4030 CHILLER INSTALLATION - 0.0% 300,000 P3022 FOUNTAIN LAKE WATER QUAL 2,000 1.0% 205,000 P3025 ADERO CANYON TRAILHEAD 17,513 0.8% 2,285,000 P3026 FOUNTAIN PARK ACCESS IW - 0.0% 375,000 P3027 FOUR PEAKS PARK -PHASES I - 0.0% 75,000 56003 UNPAVED ALLEY PAVING PRO - 0.0% 255,000 56053 FOUNTAIN HILLS BLVD SHOU - 0.0% 500,000 56057 MCDOWELL MOUNTAIN ROAD R 64,387 85.8% 75,000 CONTINGENCY 55,607 11.7% 474,885 Grand Total Capital Projects $ 139,507 1.4% $ 9,694,885 15 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. Fiscal Quarter -End Fund Balances (Unaudited) September 30, 2016 Operating Funds Rainy Day Fund $ 2,624,843 General Fund 4,428,221 Public Art Fund 38,238 Internal Service Fund (1,289) Vehicle Replacement Fund 646,348 $ 7,736,361 Highway User Revenue Fund (HURF) 2,103,994 2,103,994 Special Revenue Funds Special Revenue Fund (219,271) Court Enhancement Fund 300,852 Environmental Fund 354,991 Cottonwoods Maintenance District Fund 14,618 451490 Excise Tax Funds Downtown Strategy Fund 937,839 Economic Development Fund 36,127 Tourism Fund 117,250 1,091,216 Debt Service General Obligation Debt Service Fund 692,413 Eagle Mountain CFD Debt Service Fund 120,980 MPC Debt Service Fund 561,460 1,374,853 Capital Projects Capital Projects Fund 6,160,473 Facilities Replacement Fund 1,054,312 7,214,785 Development Fees Law Enforcement 203,484 Fire & Emergency 108,062 Parks & Recreation 273,194 Open Space 1,681,383 2,266,123 Grand Total $ 22,238,522 16 HeinfeldMeech INDEPENDENT ACCOUNTANT'S REPORT The Honorable Mayor and Members of the Town Council Town of Fountain Hills, Arizona Tucson • Phoenix • Flagstaff HeinfeldMeech.com We have examined the Town of Fountain Hills, Arizona's (Town) compliance as to whether highway user revenue fund monies received by the Town pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues received by the Town, were used solely for authorized transportation purposes during the year ended June 30, 2016. Management is responsible for the Town's compliance with those requirements. Our responsibility is to express an opinion on the Town of Fountain Hills, Arizona's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Town's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Town's compliance with specified requirements. In our opinion, the Town of Fountain Hills, Arizona complied, in all material respects, with the aforementioned requirements for the year ended June 30, 2016. This report is intended solely for the information and use of the members of the Arizona State Legislature, Town Council, and management and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited. Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 17, 2016 Meeting Date: 111312016 Agenda Type: Consent TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type: Regular Session 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 20, 2016. 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: Y r eveyn Bender, Tom Cler, Approved: J iar Andy ir11'lle Grady E. Miller, Town Manager 9/2r�6 Page 1 of t TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date: 111312016 Meeting Type: Regular Session Agenda Type: Consent Submitting Department: Public Works Staff Contact Information: Paul Mood, Public Works Director, pmood@fh.az.gov Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): Consideration of approving contract C2017-066 with The Garden Gnome, LLC dba The Pond Gnome in the amount of $99,729.00 for emergency repairs and pump replacement for the water feature located at the northeast comer of Shea Blvd. and Palisades Blvd. Applicant: NA Applicant Contact Information: NA Owner: NA Owner Contact Information: NA Property Location: Northeast corner of Shea Blvd. and Palisades Blvd. Related Ordinance, Policy or Guiding Principle: NA Staff Summary (background): In May of 1996 the Town Council approved the landscaping plan and water feature to be constructed by MCO Properties at the northeast comer of Shea Blvd. and Palisades Blvd. The Town Council also approved taking over the ownership and maintenance of the landscaping and water feature five years after construction completion. The landscaping and water feature consisting of a three tiered pond system, waterfall and fountain was constructed in 1997 and the Town took over maintenance in 2002. On October 3, 2016 staff was performing routine maintenance at the site when over four feet of water was discovered in the underground pump vault. The upper pond was also completely empty due to a suspected check valve malfunction. The water inside the pump vault completely submerged the pumps for the waterfall and fountain as well as the an electrical outlet for a sump pump. The water feature pumps have electrical power but are no longer operable and are currently not recirculating the water. With the pumps out of service it was discovered that the ponds are losing a significant amount of water due to apparent leaks. Town staff has added a sump pump between the lower and middle ponds to help recirculate water in an attempt to maintain the plants and fish in the middle pond. A new sump pump has also been added to the underground pump vault. Town staff researched companies that design and construct ponds in the Phoenix metropolitan area and contacted The Pond Gnome to assess the Shea and Palisades water feature. It was determined that new pumps for the waterfall and fountain are required as well as new piping and valves inside the pump vault. In order to mitigate the leaking ponds it is also recommended to drain, clean and resurface the ponds. The proposed contract also includes a $10,000 owner's allowance for any unforeseen conditions and to potentially Page 1 a2 modify the pump intake screen areas and underwater lighting which is no longer operational. Upon approval of a contract, the contractor can begin work on the pond repairs and order the new pumps which have a four to six week lead time since they have specific flow rates and total dynamic head requirements. Risk Analysis (options or alternatives with implications): If the emergency repairs are not approved Town staff will need to drain the ponds and await direction as how to proceed with repairs or potentially remove the water feature and re -landscape the area. Fiscal Impact (initial and ongoing costs; budget status): $99,729.00 Budget Reference (page number): 171 PG 171 Funding Source: Multiple Funds If Multiple 'Funds utilized, list here: Budgeted; if No, attach Budget Adjustment Form: No Recommendation(s) by Board(s) or Commission(s): NA Staff Recommendation(s): Staff recommends approval of contract C2017-066 for the emergency repairs to the Shea and Palisdades waterfeature. List Attachment(s): Contract 02017-066 SUGGESTED MOTION (for ct unc i liso: Motion to approve contract C2017-066 with The Garden Gnome, LLC dba The Pond Gnome in the amount of $99,729.00 for emergency repairs and pump replacement for the water feature located at the northeast corner of Shea Blvd. and Palisades Blvd. Prepared by: Paul Mood, PuRc Works Director 10/2412016 Director's r au oo io WoFKsDior 10/24/YO-17- Appro�v/e`J�d: • ,r Grady E. Miller, Town Manager 10/25/2016 Page 2 ot'2 Contract No. C2017-066 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE GARDEN GNOME, L.L.C. D/B/A THE POND GNOME THIS PROFESSIONAL SERVICES AGREEMENT (this "Agreement") is entered into as of November 3, 2016, between the Town of Fountain Hills, an Arizona municipal corporation (the "Town"), and The Garden Gnome, L.L.C., an Arizona limited liability company, d/b/a The Pond Gnome (the "Contractor"). RECITALS A. Pursuant to Section 11.3 of the Town Procurement Policy and 3-3-25 of the Town Code, emergency procurement may be utilized when the delay in receiving needed services would seriously threaten the preservation or protection of property. B. The Contractor possesses the specific skill and experience required to provide emergency repairs to the water feature located at the northeast corner of Shea Boulevard and Palisades Boulevard, which includes (i) replacing the pumps, valves and piping, (ii) draining, cleaning and resealing the lower, middle and upper ponds and (iii) testing the underground piping for leaks and making all necessary repairs (the "Services"). C. The Town desires to enter into an Agreement with the Contractor to perform the Services, as more particularly set forth in Section 2 below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and shall remain in full force and effect until May 2, 2017, unless terminated as otherwise provided in this Agreement. 2. Scope of Work. Contractor shall provide the Services as set forth in the Scope of Work, attached hereto as Exhibit A and incorporated herein by reference. 3. Compensation. The Town shall pay Contractor an amount not to exceed $99,729.00, of which $10,000.00 is an owner's contingency which shall be utilized at the Town's sole discretion, for the Services at the rates set forth in the Fee Proposal, attached hereto as part of Exhibit A. 2805363.1 4. Pam. The Town shall pay the Contractor monthly, based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. The contract number must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Contractor Personnel. Contractor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Contractor agrees to assign specific individuals to key positions. Contractor agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Contractor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Contractor's performance. The Contractor shall provide and maintain a self -inspection system that is acceptable to the Town. 8. Licenses; Materials. Contractor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Contractor. The Town has no obligation to provide Contractor, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Contractor. 9. Performance Warranty. Contractor warrants that the Services rendered will conform to the requirements of this Agreement and to the highest professional standards in the field. 10. Indemnification. To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an "Indemnified Party"), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys' fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever ("Claims") to the extent that such Claims (or actions in respect thereof) are caused by the negligent acts, recklessness or intentional misconduct of the Contractor, its officers, employees, agents, or any tier of subcontractor in connection with Contractor's work or services in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 2805363.1 2 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Contractor, Contractor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARiz. REv. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town's option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Contractor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement, but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Contractor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers' Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. E. Primary Insurance. Contractor's insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a "claims made" basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. G. Waiver. All policies, except for Professional Liability, including Workers' Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and 2805363.1 3 employees for any claims arising out of the work or services of Contractor. Contractor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self -Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self- insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Contractor shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Contractor shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Section and insurance requirements set forth herein protecting the Town and Contractor. Contractor shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Contractor will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Contractor's insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Contractor's responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without a reference to this Agreement. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing this Agreement will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability — Under Insurance Services Office, Inc., ("ISO") Form CG 20 10 03 97 or equivalent. 2805363.1 4 (b) Auto Liability — Under ISO Form CA 20 48 or equivalent. (c) Excess Liability — Follow Form to underlying insurance. (2) Contractor's insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers' Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Contractor under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision "endeavor to" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Contractor shall maintain "occurrence" form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products - completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured's clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read "Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you." If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be "follow form" equal or broader in coverage scope than underlying insurance. B. Vehicle Liability. Contractor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Contractor's owned, hired and non -owned vehicles assigned to or used in the performance of the Contractor's work or services under this Agreement. Coverage will be at least as broad as ISO coverage code "1" "any auto" policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this 2805363.1 5 Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be "follow form" equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Contractor engages in any professional services or work in any way related to performing the work under this Agreement, the Contractor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Contractor, or anyone employed by the Contractor, or anyone for whose negligent acts, mistakes, errors and omissions the Contractor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Contractor's employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days' prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town's Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Contractor of written notice by the Town. Upon termination for convenience, Contractor shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non -defaulting party, such party will be in default. In the event of such default, the non -defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party's nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non -defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Contractor for the undisputed portion of its fee due as of the termination date. 2805363.1 6 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days' written notice to Contractor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Contractor for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARlz. REv. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Contractor to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Contractor, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Contractor or any agent or representative of the Contractor to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Contractor an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town's then current fiscal year. The Town's obligations under this Agreement are current expenses subject to the "budget law" and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then -current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town's obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Contractor acknowledges and agrees that 2805363.1 7 the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Contractor, its employees and subcontractors are not entitled to workers' compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Contractor, its employees or subcontractors. The Contractor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Contractor meets the requirements of its agreed Scope of Work as set forth in Section 2 above. Contractor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Contractor do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in the Maricopa County, Arizona. 13.3 Laws and Regulations. Contractor shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Contractor is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations, (B) existing and future State and Federal laws and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Contractor. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the parry drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 2805363.1 8 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Contractor without prior, written permission of the Town signed by the Town Manager and no delegation of any duty of Contractor shall be made without prior, written permission of the Town signed by the Town Manager. Any attempted assignment or delegation by Contractor in violation of this provision shall be a breach of this Agreement by Contractor. 13.9 Subcontracts. No subcontract shall be entered into by the Contractor with any other parry to furnish any of the material or services specified herein without the prior written approval of the Town. The Contractor is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Contractor. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town's acceptance of and payment for services, shall not release the Contractor from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys' Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing parry shall be entitled to receive from the other parry reasonable attorneys' fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Contractor any amounts Contractor owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Contractor any amounts Contractor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the parry at the address set forth below, (B) deposited in the U.S. 2805363.1 9 Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: GUST ROSENFELD P.L.C. One East Washington Street, Suite 1600 Phoenix, Arizona 85004-2553 Attn: Andrew J. McGuire If to Contractor: The Garden Gnome, L.L.C., d/b/a The Pond Gnome 22767 North 104th Lane Peoria, Arizona 85383 Attn: Grant Smith or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party's counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a parry shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Contractor shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Contractor's duties under this Agreement. Persons requesting such information should be referred to the Town. Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Contractor as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under subsection 13.17 below, Contractor's and its subcontractors' books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor and its subcontractors' employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as "Records"), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Contractor's and its subcontractors' actual costs (including direct and indirect costs and overhead 2805363.1 10 allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Contractor's and its subcontractors' compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Contractor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors' facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E -verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E -verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor's or its subcontractor's failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Contractor certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a "boycott," as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Scope of Work or the Fee Proposal, the documents shall govern in the order listed herein. 13.20 Non -Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. [SIGNATURES ON FOLLOWING PAGES] 2805363.1 11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first set forth above. "Town" TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Grady E. Miller, Town Manager ATTEST: Bevelyn J. Bender, Town Clerk (ACKNOWLEDGMENT) STATE OF ARIZONA ) ss. COUNTY OF MARICOPA ) On , 2016, before me personally appeared Grady E. Miller, the Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document, on behalf of the Town of Fountain Hills. Notary Public (Affix notary seal here) [SIGNATURES CONTINUE ON FOLLOWING PAGE] 2805363.1 12 " COntri kitoe' THE GARIDEN CINOME, L.L1.C1., an Aiizcna Iimitec liability carrFlany, d/t da THE POND G NOME WAY144,401", I—M I M .iT–u M, va (ACKNOWL EDGMEINT) STA TEI OF ARI 210NA ) ) ss. COUNTM OF MARICOPA ) On C e 7-f' 1 , 2016, be afore me pgrsonal ly appeared sir►-i;s3, dzmf thea of THE GAREEN GNOME, U.L.CI., an A.e iaonF limited liabi I'ityj cumpariy, d/b/8 THE PONE GNOME, wtase is antitywas proveri to mel on the basis c salis&ator) evidence to be the person who he /she claims) to be, avid sKiVowlecgad Ihat he/shei signed the above docivirr ant on behalf of the limited liability coin pan) �Notaily P` Elio (Affix notary seial here) FiU1 18 OAF We PUM. kwom Il!roIN" flow . Coma con MIUM 2805363.1 13 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE GARDEN GNOME, L.L.C. D/B/A THE POND GNOME [Scope of Work and Fee Proposal] See following page. 2805363.1 The Garden Gnome, L.L.C. dba The Pond Gnome 22767 N. 10411 Ln. ♦ Peoria, AZ 85383-2762 ♦ 623-572-5607 www.PondGnome.com; PondGnome@cox.net The Pond Gnome psi_ AZ Contractor Lic. #277878 WATER FEATURE LEAK REPAIR AND PUMP REPLACEMENT Name: Town of Fountain Hills Date: 10/17/2016 Mailing Address: 16705 E. Ave of the Fountains City: Fountain Hills Zip: 85268 Office Phone: 480-816-5129 Work Phone: Email: pmood@fh.az.gov Project shall begin: (Dates are approximate and subjenct to change due to weather conditions or supplier delays) Scope of Work: 1 Goulds Pump SHP, 3ph 1 Goulds Pump 15hp (cross over for 7.5hp Weinman) 3ph 2 4" Butterfly Valves 1 10" Butterfly Valve 1 10" Check Valve 1 6" Check Valve 1 PVC Piping 2 Basket Strainers 1 Cast Iron reducing 90 2 Reducers 1 Drain and Clean lower, middle, and upper pond 1 Shotcrete lower, middle, and upper pond 1 Fix all PVC Leaks throughout entire system 1 Refill, replace plants, and fish 1 Labor (Installation of Pumps, electrical, and Equipment) 1 traffic control 1 Fountain Hills Additional Insured 1 Business License 1 Tax TOTAL $89,729.00 1 Owner Allowance $10,000 Payment Schedule: BALANCE OF CONTRACT DUE UPON COMPLETION OF CONSTRUCTION TASK Pumps are special order and non refundable once ordered. TOWN OF FOUNTAIN HILLS TOWN COUNCIL rte' AGENDA ACTION FORM �rdq h A Meeting Date: 111312016 Meeting Type: Regular Session Agenda Type: Consent Submitting Department: Administration Staff Contact Information: Craig Rudolphy, Finance Director; 480-816-5162; cmdolphy@fh.az.gov Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of RESOLUTION 2016-32 approving an Arizona State Purchasing Cooperative Agreement to purchase commodities or services. Applicant: Applicant Contact Information: Owner: Owner Contact Information: Property Location: Related Ordinance, Policy or Guiding Principle: Staff Summary (background): The Town has been a member of the State purchasing cooperative. The original agreement expired on June 30, 2016 and the State Procurement Office (SPO) has requested that the Town complete a new agreement. Risk Analysis (options or alternatives with implications): If not approved, the Town will no longer be able to particpate with the State cooperative purchasing group and will no longer be considered a State Cooperative Member. Not being a Member will increase the costs of procurements made by the Town for which there is an existing cooperative agreement arrangement with the State. 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): Arizona State Purchasing Cooperative Agreement Page 1 of e SU GG ESTER] MC TION I1cm Caurnail use]: Move 11a approve RE SIC LU'RIC N 2016-32. Iloilo SI of 3 Prepared by: Direetoe" App'rovl Lragilfoolpy.-FnaG''00� IZTiiIence re r Ii Approved: y� �-/ /��� -For 6rayr -r rani dy own manager WR52lb Pelle 3 of 3 RESOLUTION NO. 2016-32 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Arizona State Purchasing Cooperative Agreement is hereby approved in substantially the form attached hereto as Exhibit A. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, November 3, 2016. FOR THE TOWN OF FOUNTAIN HILLS: Linda M. Kavanagh, Mayor 17Oki I*111D17: •EI Grady E. Miller, Town Manager 2799241.1 ATTESTED TO: Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney EXHIBIT A TO RESOLUTION NO. 2016-32 [Arizona State Purchasing Cooperative Agreement] See following pages. 2799241.1 v Douglas A. Ducey * Craig C. Brown Governor Director ARIZONA DEPARTMENT OF ADMINISTRATION OFFICE OF THE DIRECTOR 100 NORTH FIFTEENTH AVENUE • SUITE 401 PHOENIX, ARIZONA 85007 (602)542-1500 ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT State of Arizona Procurement Office and Town of Fountain Hills (Organization Name - Eligible Procurement Unit) This Cooperative State Purchasing Agreement ("Agreement") is entered between the parties in accordance with Arizona Revised Statutes §41-2631, et seq., Article 10 Intergovernmental Procurement, which authorizes cooperative purchasing for public procurement units and nonprofit organizations; and the Arizona Administrative Code R2-7-1001, which permits the governing body of any Eligible Procurement Unit to enter into an Agreement with the State for the purpose of utilizing State contracts. The purpose of this Agreement is to permit the Eligible Procurement Unit named above, hereafter known as the State Cooperative Member, to purchase materials and services from State contractors at the prices and terms expressed in contracts between the State and those State contractors. In consideration of the mutual promises contained in this Agreement, and of the mutual benefits to result there from, the State and the State Cooperative Member agree as follows: 1. The State shall conduct the procurement in compliance with the Arizona Procurement Code, A.R.S. Title 41, Chapter 23, and its Rules, A.A.C. Title 2, Chapter 7. 2. The specifications for the materials and services will be determined by the State Procurement Administrator or delegated State agencies. 3. The State will identify the State Cooperative Member as an eligible participant in any solicitation intended for general use by State Cooperative Members. In addition, the State may invite the State Cooperative Member to participate in ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT Page 1 of 5 Updated 12-14-15 certain exclusive solicitations. Only State Cooperative Members indicating an interest in participating in these exclusive solicitations will be eligible to participate in the resulting State contracts. 4. The State Cooperative Member's use of eligible State contracts is discretionary. Participation in the State Purchasing Cooperative shall not restrict or limit member's ability to seek competition as needed. However, the State Cooperative Member shall not use a State contract as a means of coercion to obtain improper concessions, including lower prices, from State contractors or any other suppliers for the same or similar materials or services. The State Cooperative Member is also prohibited from participating in any organization or group that seeks to obtain such concessions from State contractors or other suppliers based on State contracts. 5. The State shall provide the State Cooperative Member with access to listings of all eligible State contracts. The original copy of each State contract is a public record on file with the State. The State's eProcurement System shall provide all contract information available and be used for contract purchases. 6. The State Cooperative Member shall: a. Ensure that purchase orders issued against eligible State contracts are in accordance with the terms and prices established in the State contract. b. Make timely payments to the State contractor for all materials and services received in accordance with the terms and conditions of the State contract. Payment for materials or services and inspection and acceptance of materials or services ordered by the State Cooperative Member shall be the exclusive obligation of such unit. C. Be responsible for the ordering of materials or services under this Agreement. The State shall not be liable in any fashion for any violation by the State Cooperative Member of this Agreement and, with the exception of other Arizona State entities subject to A.R.S. §41-621, the State Cooperative Member shall hold the State harmless from any liability which may arise from action or inaction of the State Cooperative Member relating to this Agreement or its subject matter. d. Cooperate and assist the State when requested to validate transactions reported by vendors on quarterly usage reports filed with the State Procurement Office. 7. The exercise of any rights or remedies by the State Cooperative Member shall be the exclusive obligation of such unit; however, the State, as the contract administrator and without subjecting itself to any liability, may join in the ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT Page 2 of 5 Updated 12-14-15 resolution of any controversy should it choose to do so. 8. The State Cooperative Member shall endeavor to utilize State contracts to the fullest extent possible. That is, the State Cooperative Member is to make an effort to purchase all items covered under exclusive contracts and shall not fracture purchases by means of utilizing line items from alternate contracts. Such practices weaken the State's ability to negotiate lowest possible volume prices. Exclusive contracts are those that offer the State Cooperative member the option to participate exclusively, rather than permissively, and shall be identified as such within the contract documents. 9. Failure of the State Cooperative Member to secure performance from the State contractor in accordance with the terms and conditions of its purchase order does not necessarily require the State to exercise its own rights or remedies. 10. This Agreement shall take effect with execution by both Parties on the date signed by the State Procurement Administrator, and shall remain in effect for a total period of five (5) state fiscal years. The State reserves the right to amend the agreement during the term of the Agreement. 11. This Agreement may be canceled pursuant to the provisions of A.R.S. § 38-511. 12. This Agreement is exempt from the provisions of A.R.S. §§ 11-952(D) and 12-1518. 13. The State Cooperative Member certifies that its organization shall comply with the State and Federal Equal Opportunity and Non -Discrimination requirements and conditions of employment in accordance with A.R.S. Title 41 Chapter 9, Article 4 and Executive Order No. 2009-09 dated October 20, 2009. 14. The State Cooperative Member hereby acknowledges that each State contractor shall be remitting an administrative fee to the State, based upon the member's purchasing volume under the state contracts. 15. The State Cooperative Member authorizes State contractors to release usage information to the State. Usage information shall be limited to the State Cooperative Member's purchasing activity and shall generally consist of, but shall not be limited to, purchase order information including purchase date(s); units purchased, their descriptions and quantities; unit prices and aggregate amounts paid for all materials and services purchased off of the State's contract. 16. The State may terminate this Agreement without notice if the State Cooperative Member fails to comply with the terms of a State contract or this Agreement. 17. Except as provided in Paragraph 15, either of the Parties may terminate this Agreement with at least thirty (30) days written notice to the other party. ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT Page 3 of 5 Updated 12-14-15 IN WITNESS WHEREOF, the Parties of this Agreement, having caused their names to be affixed hereto by their proper officers, hereby execute this Agreement on the dates indicated hereunder. FOR THE STATE COOPERATIVE MEMBER: FOR THE STATE: Signature: Name: Title: Date: Signature: Barbara Corella Title: State Compliance Officer Date: ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT Page 4 of 5 Updated 12-14-15 ARIZONA STATE PURCHASING COOPERATIVE State Cooperative Member Contact Information Name of Organization: Town of Fountain Hills Name of Contact Person: Qualification: (Click on appropriate box) Craig Rudolphy ❑x Political Subdivision ❑ Non -Profit Educational Institution* ❑ Non -Profit Healthcare Institution* ❑ Non -Profit Other* Title of Contact Person: Finance Director Telephone number of contact person: Fax: 480-816-5162 480-837-3145 E-mail address of primary contact person: crudolphy@fh.az.gov E-mail address of secondary contact person: finance@fh.az.gov (If possible, please provide a general email address that can be forwarded to the contact person and that will not change should the contact person leave the organization. The person receiving email from the State Procurement Office at the address above needs to be responsible to forward the information to other interested parties at your organization as needed. Physical Address: 16705 E Avenue of the Fountains, Fountain Hills, AZ 85268 Mailing Address (if different from the physical address): Federal ID Tax Number: 86-0650150 Please send completed agreements and changes in contact information to: State Procurement Office Arizona State Purchasing Cooperative 100 North 15th Avenue, Suite 201 Phoenix, Arizona 85007 Or by e-mail to: spo(-aazdoa.gov *Non-profit entities must attach proof of non-profit status with the agreement Please notify the State Procurement Office of any changes to this information. ARIZONA STATE PURCHASING COOPERATIVE AGREEMENT Page 5 of 5 Updated 12-14-15 Meeting Date: 21412016 Agenda Type: Consent TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type: Regular Session Submitting Department: Community Services Staff Contact Information: Rachael Goodwin, Recreation and Tourism Supervisor, 480-816-5135 Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONS11)FRATION of approving a SPECIAL FIVENT LIQUOR LICENSE APPLICATION for the Kiwanis Club ol' Sunsct Fountain hilly (Margaret Ziefert) tier the promotion or a fundraiser to he Feld along the Avenue of the Fountains, in conjunction with the Fountain hills Art and Wine Affaire, from 10:04 AM to 5:00 PM daily, from Friday, Murch 24 through Sunday, March 26, 2017. Applicant: Margaret Ziefert Applicant Contact Information: Property Location: Avenue of the Fountains, Fountian Hills, Arizona. Related Ordinance, Policy or Guiding Principle: A.R.S. §4-203.02; 4-244; 4-261 and R19-1-228, R19-1- 235, and R19-1-309 Staff Summary (background): The purpose of this item is to obtain Council's approval regarding the special event liquor license application submitted by Margaret Ziefert representing the Kiwanis Club of Sunset Fountain Hills, for submission to the Arizona Department of Liquor. The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. Risk Analysis (options or alternatives with implications): N/A Fiscal Impact (initial and ongoing costs; budget status): N/A Budget Reference (page number); N/A Funding Source: NA If Multiple Funds utilized, list here: Budgeted; if No, attach Budget Adjustment Form: NA Recommendations) by Board(s) or Commission(s): N/A Staff Recommendation(s): Approve List Attachment(s): Applications SUGGESTED MOTION (tor council use): Move to approve the Special Event Liquor License as presented. Page 1 of 2 Prepared by. Rachael Gootl"creabon supemsor lurrormiu Olrectors Appro l: q ommun y ery chs rec or1012412016 APPrpyetl: r/tGWl:�i UUw� R/ fnr G aJy N1111er Gently Miller, Town Manager 10/2 /21116 Page 2 oft Aria o ram De 1pe rtrm a nt c f Liquc r U c elncelsl and Co nNol 800 W Wal: hington 51h floor Phc enbr. A21 85007-1934 www.azliglu ar.gciv (6 02) 542-5141 APRIUCAMON FOR SPECIAL EVEN1 UCEINSIEl Reel= $25.00 per day tom 1-10 dayal (ac nseciulilve] C ash Cheeks on Mciney Orc ers C My Evdrr E*ird time A service fee al $25.001 wi I be charged for all dishonored checks (A.A.S. § 444 852) W_ IPCIRTAM INFORMATION: ihh document must be hOy camoteted ar Hl will be retdmed. THe C apartment of Ucit or Licemesi c nd Cc ntrol rr usi reaeh a this aplpRealim ten (10] business d ays prla to thle ev ent. ti the special ev ent win be held d a location without a permanent Oquor license or R ft ei evert wil be an any podani ai a location tHd is not cwvere:d by the exhft g 1110ar tiaenr e, this appQaalion rr ust W approvec by the loaal gq% eminent beford subnft or i td the Deparfrr lent of Uquar Uc eimers cind Cc ntwl (see Secllan 15). SECTION 1 Name of Ofganb atlon: S i; NS ET V I WA N 15 OF Fc v Q-rA; i tJ r i i LLS SECTION 11 Non-Profit/IRS ice EAerr pt N u mber. U-01441635 SECTION 3 The organi¢aficln is ar. Icheck one boil only, ❑C haritable❑Wr emal Jmu si havie rag lar membership and have been in exisiencei for ovreu five Irl )ears) [3fieligiousi ® Civ c piatary, College ; tat otarship] ❑tlolit'aal Pori). Bdtlol Melasu a an Campaign C lamm itlee SECTION 4 Wil ihN event be held on a currerilty ficensec premise anc Witt it the already apprcmec prelmises?❑Yes (RINo Mamw a sudrww Ucwm Murobed "noddd (rdard o aeai goad) 3ECr ON 5 How is this specllal event going to condu ct all dispersing, servir C. and sell ng of spirittJous tic uorsil Please) head 11-151- 31 El for ext: lanatic n ilook in spec al event plann ng gutdej and ct eek one of ih a fo[lowing bodes. ❑Place liceruie in non-use ❑C Ispensa cl nd se rve di spirits ous liquors under reta'leir s ))cense Milispensei and serve all spirituous liquors under special ev enl ❑; plit premise between spec at event and reiail local Ion (IR Nal USING RETAIL UCEM EI SURMM A LEITER C A A GPM ENI FROM 7FIS AGIEAR/OWNEit OH D E LKIENSEEI ARMSEI TC I SIUSI END THI LK FM- DL JUNG THB EVENT. IF THE SIPECJA 11 E:VEMII IS ONLY USiNG A PORMN Of PRWR E: A GFNT)OWNEA WIU NEU TIO SWfMD THA) PORAONORTHE PREMISIEQ SECTION 4I 'A h at is the purpose of tM event? Odn-stte consumpltlan EIC ff-sitie Ilauction] ❑Elath SECTION 7 Location oil thel Bent. AV � Vt� r CO F lyi itt: Alddessoil Location: Ajh!$ � THE t;tig-rAwS Gymto'IAILLS NAkiwPA AZ $$:abg straat calf claurm state nq SECT CIN 8 Wil this be sl acked wit ai w'ne festiv oVa aft d'Isti les festh all I ❑lijes []No SEQ0 91 A pplicani must be ai rr amber of the quar& ng of gc rimcrtion and outhorb ed tly on Offiaen Direcfia or Chairpe rson of the C oganizatior named in Section 1. IlAuthoddrig signature i:i reqs fired it Section 13.1 1.Appl(claril: 1IIEFEi2T hdAQ AR9-r a tett ftd Mr a la Dated a% 2. Applicant's mailing ac drew. � t'aw ll) DR1V5 GL ui'RIt3 HILLS Az 851269 011 sh to ap 3. A pplicant s home/cell phc ne. A ppi cant's tl u sines: pt one: I_I A.Apppeants eirrlalladdress: SE1n1S>=TSi`C12MAPi Qd COM 3/1=6 Rage 1 of 4 Indiv du all requiring ADA acc ommiac aticrns cc it (6W)44%5027. F 1Q a applicar 1 I: earl clanvicte c oil a felony, or h ad a ligt. on license revoked with in the lash fide 115] years? D§No Itt ya , altaot exptanaflan l 2 How many ipleici e% ent lacer se s h ave been issued to thus location thus year? d Phe -antras cannot exceed 12 evenh pet year; exciept ons Ur der A.R.:I. W20&Q:Ii 311sthe organimitlon uslii * a services of c prorrlotetl or othler person to mor age the elventVl❑YeS *0(UYM a% ch a clan of III agregmaM.; 4. List aB People and of ganh ation l who will te:ceN e1 the proaeec s. Accourd fon 100% of the praceec s. The arganl i'on applying rr w sal seceive :15°"1 oil the gross rev enues of the special evens ligt. ar sales. Attach an addltior al page i1 necessary. Name _ TN Li13DEQ 8191D ARTI STS PeIcentage: 75 % _ Address 10 16649 1� • AGM t\1w Uoug r%yii ('alA} MILLS Az S Sa ro B sized CRY state IIP Name slD 1SPr I41U)A1.1 LS OF 11 t 4111. LS Hercerdage: 0`.6 b% Note: ALL ALCO>FIOU C BEVERAGE SIALES MUST EE FOR CON SUNIPTI C N AME E E:VIENT S11TH ON LII. "NCI ALCC HCIUC BEVERAGM SHAUI LEAVE SRECIAL EVENT UNLESSTIM ARE IN AUCTION SEALED CONTAIN ORS ORTHE SPECIAL EVENT UCENSIE IS STACKED WITH NIINE /CRU F111T SRI LLERY FIESTIVA L UCIENI F c. What tyle of sect. dN and aoriblol mean IM will you tulle 1 o prelverlt violatbns of Ilgt ari laws c t tt is event ? ilUst type avid numb a all pollcie/seat, rtly person a and type 01 for do g or ac ntrol ! am en, a etpplIcc .) Ll Number o1 Holice Nurrili of 5ecudtyl Her ionnel enc Ing ❑Barrer Exiinaiion: l U-( SECTION 11 Clales and Hours of Evens. C crAj mi st be cons ecutive but may not exceed 1(I aonseclutiv a days. See A.M. § 4 244(15) and 11171 for legal hour of seryl ce. PLEASS NU I OUII A SO ARATE APFIUC AT1 C N FOR EACHI "NON -C ONSEC UMT" CI AY Dal a Day of Week Ned start L dense End Tlme AM/PN Time AMI PIN DAAY1: MAecu12� Ia17 'ERIOAY IC:ooAM 6:oo FM �A449 ,_12L11 SAI a RDAV 1,0. 0 A M 5:00 DAYS: OCO 2017 c IJ WOO io:w AM 5; CV _t IV DAY 4: CIA Y 5: CIA Y 6: OAI A: MY Eh DAY 9: — DAY 10: /1/21(11!FIa£Ie S 01 Inc Mdu oU recµ bing ADA aaicclmmodc ittalns ciao (60215 115 1-9021 SPECIAL EVENT LICENSED PREMISES DIAGRAM (This diagram must be completed with this application) Special Event Diagram: (Show dimensions, serving areas, and label type of enclosure and security positions) NOTE: Show nearest cross streets, highway, or road if location doesn't have an address. 0 u AVEHYE OF THE [YI _ REST9*1 ,\ TKauc� C12 Licem e1 puemises c iagi am. The licensed premises fan yot n ! pecial event is Ilh a area ir1 wf iah y ou c ne aulF clrized to sell, dispe nse as serve c1col- alia t eiveuageul L nder the puovisions of youn license. Tt a follow*Nl spacia is to be L sed to preiriane a diagram all your special evert licensed Kperriises. Rlease show dimeru ions, seaming auras, ilencing, barriccides, an oit er corilrol measumes and secu(t posilion. 3611 /2016 Plagle 3 Cif 4 Indhiduch requkirig AM acaommodatic ru cal 1607)Sd2-9(617. AQT ION 1310 be clom lellk c p NY byarlORiceslDkectororCFroirpersorloiiheorgariaafionlnanrec' FnSeclioml. 1, (Prlyd hil Nan*] M ARCIARgr Z P FWRT decllare th at I am art Miceli, Dlincicior oil C ha-Irper. on cil the organk ori filing 1 hh applioafic n a listed in Suction 51. 1 h a% a read th a application arid the corltarlts ar Ic a I slateiments are trlle, conieci and cc mplele. �I s ECRETA eY ITRFa eat �Sn TRlell Poalon I Dade Phoad Numbw Thd foregoiNI instrumelrl'I was act new eeddgec be tone me ' h is State I I T a Clounity of I' IcU�Lvp My Commissic n E)phvs ori: S 7 x01 Dais —1— O "b " — Da11 Akmal Yeal SIECTI ON 14 Thi i sectio n is td bd completed only by the appaciant named In Sectic n I KEITH MCC LOUG Notary Put rsc - S al Antons I►,inorr_OF%C Nilf �►Coirltel� IExyhes 1401E 1.(F tMhamsslMA!?GA2ET 71EFEQS CICIC0e hallIGM1hdARFILCANTflringthisapplicaiian as listed In Section 9. 1 hove read thea p11 Hon and the contents and all statement aIle trde, con sect anc ac mplei e. ]t w SECR�TARY�IRF-ASDP40-916'11 Sh nnfuro / Pawon Dare Phonal h umber The ciregolrig instrl rnerill was aaNnow eddeld bei ore me this 1 - Gay Adordh State i rta+VL Col my c 1 �av�caP� d �;, KSITH MCCUL P1 a 1 dlciP / NoWryPublic-:Irate My Cclrrlmbiion Expired or: S -I�ACC�� MARICOPAC01 Dore sturAkma N. Phum Ple- se clop fad I he lioccll gclverning board for adcWk nal appliiaa, lon require rr enfA and suhnihislon dea dlllnels. AdclThanal Gaeming feed may also be lequtrec before approval may bd granted Earl mae 1rlfumoflarl- please aariacl yaw local lurh d, chon: h tto://www azliQL ar cicly/assets/docL mens s/hcime2cine docs/spec event links odl. SECTION 15 Lacal Gc Melming Bodig /i pproval aeetldn. recc mmelnd ❑ARPROVAL ❑ ENSA RFIROVAL IlGovarnntcxst omcllaq C n behalf till Ic1f I lowrn COMM Slanedrue Daad SFICTIC N 16 For Department of Llqu ar Licenses and Conhoi the anly. ❑AFIFIRIOVAII ❑DISAFFIRCNAL BN: DA TE: A.M. 1141-1030. B. Ar age r icy shall not base c i Icenang decision in whc lel or in par, an a licensing megdrernenl or car dition that is ncli speaifiaaw au thodzec ty staluleL Nile aI state) tribal gaming c(Impcic1l- A is enclral gpn of authority it i stahrl a do ej nai cion I'tutd a basis Josimposing a llc lens ng ret uire mens or aandifier t n ells o nda is m ac cl pursuar d I a that geneiia gear it of auit onty that s pecifiaagy authom els the mqu rerTienl or earrdifian. D. 1HK SECTIOIP MA1I BE Eh FCIRCEC IH A PRIVAITE CML FICTION A h D RELIER MA) 8E AWA FIC ED AICIA INSI TF E STAITE. IHE COL RT MAY AN ARID REAS ah ABLE ATTORNEY FEE, DAIMAGES AN3 All FEE1 ASt CICHATED W TH THE L CIENSE AIPPUCAITIC N 10 A PAIRTY THAI PREVAINA IN Alh AC111C N AICIAIINST THE STATE ICIR Al VIOLATIOP aFTHISSEC1101s. E. A SWE EMFI l OYEE MA) NOT INTE NTICINAU Y ON KN OW IP al Y VIOLATE Th IS ! EUMON. A ViaLA110h CIF It Il SECTION 11 CAUSE FOR 171: CIPL NAR) ACT ON' OR DISH IS1AL PL Rl UA NT 1C1 THI AGINCY'1 AIDOPTED R ERt ON h EL POLICN. F. ThIll : ICITIOP OC IE: NOT AIBR OGA1911 H E IN MUP ITY PRCI'vlOE(I 8) SEcuarI 12.820.01 OIR 124 20.02. 3/1/2816 FlogeA c114 Iridlvlducli regLlrfng MAI cicclorT modal lana call (6021):142.51077. 2, 2C111 TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO: (as applicable) DATE: 10/24/16 Streets Division Denied Fire Department Building Safety Building Division CC.. Community Services x Development Services Rachael Goodwin Law Enforcement Licensing Development Services FR: Rachael Goodwin, RE: Liquor License Application Recreation Supervisor Attached is a Liquor License Application for staff review. Review the application, then sign, indicating staffs recommendation for approval (with or without stipulations) or denial. If staffs recommendation is to deny and/or there are stipulations for approval, please attach a memo that specifies the reasoning and the memo will be forwarded onto the Town Council for their consideration of this application. Name of Organization: Sunset Kiwanis Applicant: Margaret Ziefert Date(s) of Event: March 24-26, 2017 at Saguaro Blvd, in conjunction with the Thunderbird Art Event Date Application Received: 10/11/16 Town Council Agenda Date: 11/3/2016 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A Building Safety Jason Field CC.. x Community Services Rachael Goodwin x Development Services Bob Rodgers K Fire Department Jason Payne Law Enforcement Mark Fisher Licensing Sonia Kukkola x Street Department Justin Weldy Attach report for denial or any recommendation requiring stipulations. TOWN OF FOUNTAIN HILLS V TOWN COUNCIL , AGENDA ACTION FORM Meeting Date: 111312016 Meeting Type: Regular Session Agenda Type: Consent Submitting Department: Development Services Staff Contact Information: Randy Harrel, Town Engineer; rharrel@fh.az.gov; 480-816-5112 Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of RESOLUTION 2016-35, abandoning the northerly 20' of the existing "No Vehicular Access" easement restriction at the Fountain Hills Blvd. frontage of Plat 203, Block 9, Lot 1. Applicant: James Greager Applicant Contact Information: 602-399-0670; GreagerCustomHomes@hotmail.com Owner: Same Owner Contact Information: Same Property Location: 16207 E. Sawik Circle Related Ordinance, Policy or Guiding Principle: N/A Staff Summary (background): James Greager has submitted to administratively replat the existing vacant lot at 16207 E. Sawik Circle (Plat 203, Block 9. Lot 1) into two lots, as "Villa Fiore" (S2016-17). However, the only lot frontage for Lot 1A of that proposed Villa Fiore replat lies along Fountain Hills Blvd., where there is an existing "No Vehicular Access" (NVA) easement restriction along that entire frontage. (The driveway for the proposed Villa Fiore Lot 1A will access onto Sawik Circle, per the proposed replat, through a proposed "20' I.E. [Ingress/Egress Easement] dedicated hereon for the benefit of Lot 1A of this replat".) However, to provide legal lot frontage to a street, Planning has requested that the applicant submit this abandonment request. (Note: The applicant is aware that no actual future driveway access at this proposed abandoned NVA segment is possible, since Zoning Ordinance Section 7.03.A.5.i.i prohibits a single family driveway "Within 11 5'of an intersection street curb .... on an arterial street.") Since this NVA abandonment does not affect either existing nor future placement of utilities, no utility companies have reviewed this easement abandonment request. Risk Analysis (options or altematives with implications): N/A Fiscal Impact (initial and ongoing costs; budget status): None Budget Reference (page number): N/A Funding Source: NA If Multiple Funds utilized, list here: Page 1 df Budgeted; if No, attach Budget Adjustment Form: NA Recommendation(s) by Board(s) or Commission(s): N/A Staff Recommendation(s): Staff recommends approval. List Attachment(s): Vicinity Map, Aerial Photo, Resolution, Exhibit "A" map SUGGESTED MOTION (for Council use): Move to approve RESOLUTION 2016-36. abandoning the northerly 20' of the existing "No Vehicular Access" easement restriction at the Fountain Hills Blvd. frontage of Plat 203, Block 9, Lot 1. V -For &rad'y%l'liy/er re ya . 1. lerr, lova anger 1 l25 016 Page 2 of 2 SCOTTSDALE SCOTTSDALE N IVF s NORTH SGIE: V - 3500' TOWN OF FOUNTAIN HILLS DEVELOPMENT SERVICES DEPARTMENT VICINITY MAP TOWN BOUNDARY McDOWELL MOUNTAIN PARR I t�t 111 ,rye f3 a ' 00 ,I I TOWN HALL"w 16207 E.#w j �AWIK CIR b j �`Q I I ` ' I a SALT RIVER PIMA MARIC'OPA INDIAN COMMUNIII" OJ�TA1A pr Y7�J eye b AA DEVELOPMENT SERVICES AERIAL PHOTO MAP PLAT 203, BLOCK 9, LOT 1 16207 E SAWK CIRCLE LEGEND: LOTUNE ROW EASEMENT ------ FLOODPLAIN SUBJECT SITE • N WE S 0 tw 2W' SC i- _ 2W AERIAL FLIGHT DATE: 10/15 RESOLUIIICIN 2016-35 A REE CIL UTION OF THE MAYOR AND COMMON CIOI. N CIIL OF 11H 8 TOWN OF FOUNTAIN HILLS, AR121CINA, AIBANDCINING WHA119VER RIGHT, TITLE, OR INIIEREEIII IT HAS IN 11H9 NO VEHICULAR ACICUIS EASEMENT All A PORTION OF THE EITREE l SIDE OF FLAT 203, BLOCK 9, LCT , FCIUN'iIAIN I- ILLEI, ARIZONA, AS R SCIORDED IN 'Ill ORRICE OF 11H 9 COU N11Y RECICIRDER OF MARICICIPA CICIU N11Y, AR121CNP, RECORDED IN BOCK '149 OR MA PEI, PAIG9 29 WHEREAS, 1 he Mayan and Clou r ail of the Town of Fou rite iri Fills 11111lia "Tkwvn Cour cif ; , as 1 he c aveuining body of nevi Flnopeul y locadled in Ilia llawri of Rauntain Hills 11he "llowri"), may net 0iie the c adicaliori of public dreads, sewer, water, c nairia5 e, and Ott em L lility assemerils or nighis-af-way within any FhoPclsed SL t division; and WHEREAS, 4he Town Clounail hast lite a0l"orily io aaceFli clii reject offers of cediaaticln of Flnhaite FlroFlarty by easemeni, deeic, sutdivisian, plat orolher lawlul means; anc NCIW 111- EREFORE, BE Ill REEIOLV ED BY 11HE M AYCIR AND COUNCIL OF 11HE TOWN OF ROUNTIAIIN FILLS,asfclllaw;i: SIEICTICIN 1, Thai a pclrticlni o1 ilia aerlain ria %ehicLlan access easemeril, located ai the waslerly sireiet side proplerty line of Plat am, Block 9, Loi 'I, Fau nita in Hills, as necandec the Office oil tt a Coo nit) Reicarc er of lu anicoFla C ICIU nty, Arizaria, Boak 149 till Mapls, Page as, and as move particlularly c esalibec in Exti ibis A I, attach ed t erelo aria incorporated t enein t y nefeneriae, are hereto dealanec io t e at andor ad by 4he Tlawn. Certain lois will hin this sutdivision are sutjecl io lot -to -loll diainade runioff. 11he FlnoFlerly ownan is requirec to plass ilia c ewelopeic flows generated t y the L Flslream lots acnoss It ein Fpiopeirt). SECTION 2. That it is Resole lion is one oil at andorimeinit and c iscdaimen by 1h a Tclwn solely fon the purplose of nemovirig any poienlial alouc ori the title to said property anc that the Town in no way at amFlts to aflleat the rights oil ariy prn ate part) io appose th a ab4lridonmer l or asseirt any nigli i resulting there frbm or a)isling Fine%icws to any actlion by the Town. PASSED AND ADOPTED BIN tt ar Mayor arc Council all it o Towri of Fou slain Hills, Noverr bar 3, 2CI,I S. FOR 1IHE TOWN OF FOU N11AlIN HILLSI: L iric a M. Kavariagh, Ma) ors REVIEWED BY: Glnad) E. Miller, llawn N anager ATTES1190 TiO: Bevel) r � . Beirid er, Town C lark A PPROVED AS TO FORM: Aric new.. M(IGIL ine,llowri Attorney TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" FOUNTAIN HILLS AZ, FINAL PLAT NO. 203, BLOCK 9, LOT 1 I' - --- - A= 90.00'00 R = 20.00' A= 38'56'33" 2 / mL = 31.42' L = 30.59' SAWIK CIR276.57' N Z N N43'45'00"W A= 134'36'23" ----7—R _ R = 45.00' H 38.43' L = 105.72' � i ABANDON 1' NO VEHICULAR o,^' ACCESS EASEMENT I � i ,pp h� G� LOT 1 ^� Q 40 In O Qp`v �4Q- QQ' A= 28'06'00" o R = 350.00' L = 159.64' a i z 0 I .`11�rypN6 i� LAN, SL l/�/V\� �•W, •-Y`jJl 9 Z�F IC4 TF qui 18545 �? a ° RANDY L. � z HARREL ) 0 40' WALE: r - ed I /2gyq U. DATE: 10-24-16 I f}a¢ee 3/3�I�g s irr. ''athar la Auto/ Meeting Date: 1113/2016 Agenda Type: Consent Staff Contact Information: Strategic Planning Goal: Not Applicable (NA) TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type: Regular Session Submitting Department: Community Services Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of approving a BUDGET TRANSFER of $4,076.14 for the Prop 202 Fort McDowell Yavapai Nation Grant Award to the Tourism Fund (TOURAD) and for $5,000.00 for the Prop 202 Salt River Pima Indian Community Grant Award to Tourism Fund from the Special Revenue Fund. Applicant: Grace Rodman-Guetter Applicant Contact Information: 480-816-5165 Property Location: Town Hall Related Ordinance, Policy or Guiding Principle: Staff Summary (background): The Tourism budget received two grant awards from the Prop 202 Grant Awards and we are requesting to transfer those monies to the Tourism Fund (TOURAD) in the total amount not to exceed $9,076.14 Risk Analysis (options or alternatives with implications): Without this budget transfer, the Tourism Division will not be able to implement marketing goals an initiatives as approved in the grant applications to the Prop 202 entities. 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): Staff recommends that the budget transfer be approved. List Attachment(s): Budget Transfer SUGGESTED MOTION (for Council use): Move to approve the BUDGET TRANSFER in the amount not to exceed $9,076.14 from the Special Revenue Fund (SRAD) to the Tourism Fund (TOURAD) Page 1 of 2 Directors Appr I: sye5 rn u e ces Director 10119/2016 Qd✓✓4'1� ,�i � , P� Approved: Mn pbr� rGraay fin,%/e r' GratlyE Miller, Town Manager 1w1wzu16 Page 2 oft 10/13/2016 13;51 TOWN OF FOUNTAIN SILLS 1 BBagdan ( BUDGET AMENDMENTS JOURNAL ENTRY PROOF IP bgamdent LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV pTTTM'r!T AMENDED ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANr-£ BUDGET ERR YEAR -PER JOURNAL EFF -DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND -201'7 0A 61 10/13/2016 TOURISM BUA GRANTS 1 1 Truman en20 r_c20A TOURISM ADMINISTRATION PROP 202/GAMING REV 00 -4,076.14 -4,076.1A 120-50-5^_-505-l00-OTOc-da30-Gm2QA PROP 202-FMYN AWARD 10/13/2016 2 TOURAD 6410 r_SZne TOTTCTem ADmTMTemnaTTON =nuT-RTISING/SIGNAGE .00 4.076.14 4,076.14 320-50-50-506-100-^_106-6aT^_-GS-2Oa PROP 202-FMYN AWARD 10/13/2016 3 SRAD 4401 SPEC REV -ADMIN GRANTS -1.110.000.00 4.076.14 -1-105-923.86 400-10-10-105-000-0710-4401- PROP 202-FMYN mmAnn 10/13/2016 4 SRAD 7010 SPEC REV -ADMIN CONTINrZENCY 1.109.000.00 -A.0.76.1a 1.103.923.86 400-10-10-105-000-0710-7010- PROP 202-FMYN AWARD 10/13/_2OIc 5 TOURAD 4430 G5202 TOURISM ADMINISTRATION PROP 202/GAMING REV -30.000.00 -51000.00 -15.000.00 320-50-50-506-100-0106-4430-G5202 PROP 202 -SALT RIVER AWARD 10/13/2016 c TOLM= ca10 05202 TOURISM ADMINISTRATION ADVERTISING/SIGNAGE 30.000.00 5,000.00 35,000.00 AI-rQ-rQ-S05-100-OIOc-CA10-GSn02 PROP 202 -SALT RIVER AWARD 10/13/2016 7 SRAD aa0i Sprr 02U-ADMTM n2AMMS -1.110.000.00 5.000.00 -1.105.000.00 400-10-10-105-000-0710-4401- PROP 202 -SALT RIVER AWARD 10/13/2016 8 SRAD 7010 SPEC REV -ADMIN ro&rrrMGT,MrV 1.108.000.00 -5.000.00 1.103-000.00 400-10-10-105-000-0710-7010- PROB -20-2-cmT.T RTTrcR hL?A= 10/13/2016 •• JQTTnranT. 3%r T. 0.00 10/13/2016 13,51 (/STOWN OF FOUNTAIN HILLS BBogdA^ O pm AMENDMENT JOURNAL ENTRY CLERK- BBOgAA^ YEAR PER JNL SRC ACCOUNT EFF DATE JNL DESC REF 1 REF 2 Dsg 3 PROOF ACCOUNT DESC LINE DESC T 08 DEBIT IP 2 hgAf}fq- t CREDIT 2017 4 61 BUA TOURAD-4430-G5204 PROP 202/GRMTMM V -VU 5 4.076.14 10/13/2016 GRANTS TOURISM T PROP 201-FMYN Rmnvn BUA TOURAD-6410-GS204 ADVERTISINf-/SIGNAGE 5 x.0'76.14 10/13/2016 GRANTS TOURISM T PROP 202-FMYN AWA= QUA SRAD-4401 GRANTS 5 A.Q-7C.IA 10/13/2016 GRANTS TOURISM T PROP 202-FMYN AWARD anR BRAD -''010 CONTINGENCY 5 A,0 -76.1A 10/13/'019 GvJkmTS TOURISM T PROP 202-FMYN AWARD BUA TOURAD-4430-M5I0I PROP 202/GAMING REV 5 5,000.00 10/13/2016 GRANTS =URTSM T PROP 202 -SALT RIVER AWARD BUA TOURAD-6410-G5202 ADVERTISING/SIGNAGE 5 5.000.00 10/13/2016 GRANTS =r DTSM T PROP 202 -SALT RIVER AWARD BUA SRAD-4401 GRANTS 5 5-000.00 10/13/2016 GRANTS TOURISM T p0_2 101-QAT.T RTVRD Amnon BUA SRAD-7010 CONTINr-ENi"v 5 5.000.00 10/13/2016 GRANTS TOURISM T PROP 202 -SALT RIVER Rmagp JOURNAL 2017/04/61 TOTAL .00 .00 APPROVED: DATE= MAYOR A11y R, TOWN OF FOUNTAIN HILLS A N TOWN COUNCIL 'tlrAer` �,PP AGENDA ACTION FORM Meeting Date: 11/3/20116 Meeting Type: Regular Session Agenda Type: Regular Submitting Department: Administration Staff Contact Information: Grady Miller 480.816.5107 gmiller@fh.az.gov Strategic Planning Goal: Not Applicable (NA) Operational Priority: Nol.Appllcable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of APPOINTING four (4) citizens to serve on the Strategic Planning Advisory Commission for a two-year term beginning on November 6, 2016 and ending on November 5, 2018. Applicant: Applicant Contact Information: Owner: Owner Contact Information: Property Location: Related Ordinance, Policy or Guiding Principle: Town Council Rules of Procedure 2014-9, Resolution 2009-09 SPAC By-laws Staff Summary (background): The terms of four (4) Commissioners expire on November 5, 2016. 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): List Attachment(s): SUGGESTED MOTION (for Council use): Move to APPOINT , and to serve on the Strategic Planning Advisory Commission for a two-year term beginning on November 6, 2016 and ending on November 5, 2018. Page 1 of 2 P cr'y: yraer xe s san 1412016 Dlmclas : Page 2 aft rea�y t. mitier, Ta` Bna r 9/1412016 Page 2 aft Meeting Date: 11/3/2016 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type: Regular Session Agenda Type: Regular Submitting Department: Development Services Staff Contact Information: Robert Rodgers, Director, rrodgers@fh.az.gov, 480-816-5138 Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of RESOLUTION 2016-28, declaring as a public record that certain document filed with the Town Clerk and entitled, 'The October 6, 2016 Zoning Ordinance Amendments Relating To Site Plan Approval'. PUBLIC HEARING regarding ORDINANCE 16-11, TEXT AMENDMENTS to the Fountain Hills Zoning Ordinance, Sections 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05, 13.06, 17.06.13.1.a, 18.11.6, 18.14, 19.02.A, 19.07.A, 23.04.13, 23.05.A, 23.06.C, and 23.07, relating to Administrative Site Plan Approval. Case #Z 2016-07 CONSIDERATION of ORDINANCE 16-11, TEXT AMENDMENTS to the Fountain Hills Zoning Ordinance, Sections 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05, 13.06, 17.06.B.1.a, 18.11.6, 18.14, 19.02.A, 19.07.A, 23.04.13, 23.05.A, 23.06.C, and 23.07, relating to Administrative Site Plan Approval. Case #Z 2016-07 Applicant: Applicant Contact Information: Owner: NA Owner Contact Information: NA Property Location: The Town of Fountain Hills Development Services Department Town Wide Related Ordinance, Policy or Guiding Principle: Fountain Hills Zoning Ordinance Chapter 2 - Procedures Fountain Hills Zoning Ordinance Chapter 12 - Commercial Zoning Districts Fountain Hills Zoning Ordinance Chapter 13 - Industrial Zoning Districts Fountain Hills Zoning Ordinance Chapter 17 - Wireless Telecommunications Towers & Antennas Fountain Hills Zoning Ordinance Chapter 18 - Town Center Commercial District Fountain Hills Zoning Ordinance Chapter 19 - Architectural Review Guidelines Fountain Hills Zoning Ordinance Chapter 23 - Planned Area Development District Regulations P,.104 Ada ieistralive Slilc Alan Review w d Apprc val ORD #1 & l l Ta 11/314(11! Sllafll Summairyl (backg round; : This is a series of text ame ndmients to thea coning Ord inaincie than will re -crg a nice si)i ee ri separate seicticins from seiven difllereirit chapters of the zoining orcinaroe trat relate to the submittal, review, a nt ap prcival reiquire orients lair site plan aipprova I. The reorg anizaitior Wil also allow for at miir istraitive staff review Eine approval cl r ew ccimme rcia 1, intustriail, miixeid-uses, and mull i -family site plains that fully comply with circinance reiquiremeints. This Eimendmieint is designed to aillciw lcir ai cuickeir kmarciunc cif Eipplicaticns by elimiinEitirg the requirement lhait the plains tle submitleid tci the Rlanri% & Zeroing Commission and/air Towr Council lcir final a pp roval prior to e p pllyingl fair building p eirmits.. Slle fll will still bei reiquireic tci Ensure that all Zoning) requireimeints are miet prior to any site plan Eipprove I. There are currently miulliple secticns in the wing ordinance than requires scmie lcirm cil plan reiview End apprc%al foci ccimimeirciail, industriEil, miixeid-Lsei, and mull14amily proposals prioir to allowing an Eplplicanl tai apply for built ing pe rmits. llheiso seclions conlain pkri rei%iew submittal iieqL iremienls that must be miel prior tci the issuance oil RUD, PAD, Ccncept Ran, Site Plan, Temporary Usei, Special L sei, and Ac ministraitive Use Permits. Them Eirei a Isci similar submittal reiquireme nts for applicants seeiH% a rei•zoiringl. Unkrlunatoly, these secticns routinely list applicEilicin submittal requirements than Ere rot the same i Es, cir eivein inccinsistenl with, the oitheir secticins. This has lead tci conlusicn, noedless duplicEiIicn,ant Lnneiceissarytimeideleys. Sile plans ane lhei inlcirmaition they contEiin should bei essentially thea same for most submittals. Currently many applications havei slightly diffement plan submittal requireimienls and IM sa miei plans Ere le be laic diffeirently in many chEipteirs. Plains Ere known as Concept Plans, Elite Plans, Plans of Deveilcipmeint, Eric Development Plans. In an efkrl tci slreamiline the vareiLs processes, Ordinance X1161-11 ccnscilicateis all the submiitilal requiremeinls of the varicius secticns relateid Io scimei form of sitei plan reiview and aipprcival into cnei location undeir the heating of SITE RLAN RBVIBW, with eines gleneirail list of submitle I requirements. Thai crdiriancei iludheir allows staff the aiulhcirityl to revieiw the submitllals lcir ceirripliaricei with lhei Town's cirdinanceis, and if lhei propcsal is found to bei in Hull ccimipliancei, staff may apprcivo thea sites plar without thei neieid for PL blit he aringls bedcire the Planning & Zoning Ccrrimissicn and/or Tewn Cciuricil. Should a Elite Rlan be denied administrative approval, appllicarils are prcivlco� with a twlc-pert appeieil prcoess that allows Eppeal cif the denial to the RIEnning & Zonirg Commission, aint shciulc that aippeial laiil, lhei applicant may lurlheir appeal thea denial tci the Town Cciurcil. llhei PUD process will bei eliminated ais it has beein largely superseded by the RAD process, aind the Ccncept Rlar approval process will tleiccimei an acministrailivei action but will bei re-identified as Silo PIE n Review. App licaticns lcir Speicie I Usei Rermits, RA D's or R&Zcnings will still lcillcw the public t ee ring process It ait is currently USE id. Nage 2 of 4 Administrative Site Plan Rcvim and Appmval ORO#1611 W 11!32016 Risk Analysis (options or alternatives with implications): Approval of these text amendments will allow staff to administratively approve site plan submittals that fully comply with the ordinance requirements. Denial will require that the above -noted plan review processes follow the same approval procedures that are currently in place. Fiscal Impact (initial and ongoing costs; budget status): NA Budget Reference (page number): NA Funding Source: NA If Multiple Funds utilized, list here: NA Budgeted; if No, attach Budget Adjustment Form: NA Recommendation(s) by Board(s) or Commission(s): The Planning & Zoning Commission voted at their regular meeting of October 13, 2016 to forward a recommendation that the Town Council approve Ordinance #16-11, the text amendments to the Zoning Ordinance regarding Site Plan Review and Approval as presented by staff. Staff Recommendation(s): Staff recommends that the Town Council approve Ordinance #16-11, the text amendments to the Zoning Ordinance regarding Site Plan Review and Approval as presented. List Attachment(s): Resolution #2016-28 Ordinance #16-11 11/3/2016 Site Plan Approval Regulations 10/13/2016 P&Z Commission Meeting Minutes SUGGESTED MOTION (for Council use): Move to approve RESOLUTION 2016-28, declaring as a public record that certain document filed with the Town Clerk and entitled, 'The October 6, 2016 Zoning Ordinance Amendments Relating To Site Plan Approval'. Move to approve ORDINANCE #16-11, a series of text amendments to the Fountain Hills Zoning Ordinance that will allow the consolidation and reorganization of multiple ordinance sections, and to authorize the administrative review and approval of commercial, industrial, mixed-use, and multi- family site plans as presented. Page 3 oF4 Prepared by: Wo6ert Worfgers Robert Rodgers, Development Services Director 10/25/2016 Approved: r ✓.N4 YA't '�1:+"'1' T -r (;rd, IWIler• Grady E. Miller, Town Manager 10/26/2016 Adminiaaz&e Site Plaa Review and Al.I ORD #16.11 TC 11/3/2016 Page 4 of4 RESOLUTION 2016-28 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED THE "THE NOVEMBER 3, 2016, ZONING ORDINANCE AMENDMENTS RELATING TO SITE PLAN APPROVAL." BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That certain document entitled "The November 3, 2016, Zoning Ordinance Amendments Related to Site Plan Approval," of which one paper copy and one electronic copy maintained in compliance with Amz. REv. STAT. § 44-7041 are on file in the office of the Town Clerk and open for public inspection during normal business hours, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, November 3, 2016. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor REVIEWED BY: Grady E. Miller, Town Manager 2794567.1 Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney THE NOVEMBER 3, 2016 ZONING ORDINANCE AMENDMENTS RELATING TO SITE PLAN APPROVAL 2756602.6 Amendments to Chapter 2 - Procedures The Town of Fountain Hills Zoning Ordinance, Chapter 2 (Procedures), Section 2.02 (Special Use Permits), Subsection C (Special Use Permit Application), is hereby amended as follows: Section 2.02 Special Use Permits C. Special Use Permit Application: 1. Application for a use permit shall be filed with the CeFnFnunity Development SERVICES Department on a form prescribed by the Gernmoinity Development SERVICES Directe DEPARTMENT. The application shall be forwarded to the Planning and Zeniag Commission by the PLANNING AND Zoning "dministr }^� DIVISION, and when required by the Zoning Administrator, shall be accompanied by a detailed site plan prepared in accordance with Section 2.04 showing all information necessary to demonstrate that the proposed use will comply with all special conditions as well as other regulations and requirements of this ZONING Ordinance. An applicant sb-a-I4 MAY furnish the Commission with any additional information it may consider relevant to e the case. 2756602.6 2 The Town of Fountain Hills Zoning Ordinance, Chapter 2 (Procedures), Section 2.04 (Concept Plan Review), is hereby deleted in its entirety and replaced with a new Section 2.04 (Site Plan Review Regulations) to read as follows: Section 2.04 Site Plan Review Regulations A. Purpose: The purpose of these Site Plan Review regulations is to provide for administrative review and approval of Site Plans for all non-residential developments, multi -family developments having five or more dwelling units, and mixed-use developments, upon making a finding that the proposed development conforms to the intent and provisions of this Zoning Ordinance and all other relevant Town ordinances. These Site Plan Review regulations also provide for a two- step appeal of the Site Plan Review administrative decision first to the Planning & Zoning Commission and second to the Town Council. B. Applicability: All non-residential developments, multi -family developments having five or more dwelling units, and mixed-use developments shall receive Site Plan approval prior to approval of construction plans related to a development. After a Site Plan and construction plans are approved according to this Section 2.04, and all fees have been paid according to the Town's adopted fee schedule, a building permit shall be issued for the development. C. Application for Administrative Site Plan Review & Approval: A request for Site Plan Review & Approval shall be filed with the Planning & Zoning Division on a form prescribed by the Development Services Department. The request for approval shall be accompanied by 1 electronic copy of the Site Plan and 10 identical copies of the Site Plan, as follows: (i) scale of the Site Plan shall be not less than 1 inch equals 20 feet (for large-scale projects, the Development Services Director may allow a different scale); and (ii) the Site Plan copies shall be on one or more sheets of paper measuring not more than 24 by 36 inches, drawn to a scale, prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which show the following: 1. Legal description, property dimensions and heading, along with the name, address and telephone number of the owner, developer and designer. 2. A generalized location map showing surrounding land use, zoning, and traffic circulation patterns within a 300 -foot radius of 2756602.6 3 the property, measured in all directions from the perimeter of the property lines. A north arrow and scale shall be provided. 3. A narrative describing the project in sufficient detail to enable the plan reviewer to understand the scope and complexity of the project. 4. Site conditions information, including: a. A topographic survey extending at least 100 feet beyond the exterior property line of the site. Contour interval shall not exceed 2 feet within 20 feet of any proposed improvement and 5 foot intervals for the remainder of the lot or parcel. b. Location and extent of major vegetative cover (if any). All Saguaro cacti over three feet in height must be identified as well as significant vegetation and rock outcroppings as defined in Article 1 of the Subdivision Ordinance. C. Location and extent of intermittent streams and water ponding areas. d. Existing drainage, including arrows showing direction of flow. Show any areas of ponding. e. Natural features such as mesas, rock outcroppings, or streams and manmade features such as existing roads and structures, with indication as to which are to be retained and which are to be removed or altered. f. A slope analysis map with categories of less than 10 percent, 10 to 20 percent, 20 to 30 percent and 30 percent and above. Identify hillside disturbance areas and Hillside Protection Easement (H.P.E.) areas with areas of each totaled in a table. Demonstrate compliance with the hillside disturbance regulation of the Town's Subdivision Ordinance or specifically identify variations from these requirements. 5. Proposed land use areas and specifications, including use standards of each area: 2756602.6 4 a. Proposed dwelling unit type, total land area and maximum density of residential use areas. b. Proposed uses, total land area and maximum lot coverage. List the individual square footage of all non-residential buildings and disturbance areas. C. Proposed public streetscape and public and private open space improvements and their relationship to the overall development. d. Building heights, minimum lot areas and setbacks. Show the size and dimensions of yards and spaces between buildings and show the location, type and height of walls and fences. e. Building elevations and architectural renderings showing architectural theme colors and type of exterior building materials for each structure or group of structures. f. A graphic representation of the proposed landscaping treatment, plant materials, fences, walls and other site plan and open space improvements, in accordance with the Subdivision Ordinance. g. Proposed location and width of any arterial, collector or local streets. h. Proposed location and use of all lands proposed to be dedicated for public purposes including parks, storm water retention areas and school sites. If structures are proposed, show cross-sections through site and building at 25 foot intervals perpendicular to slope, giving percentage of slope at each, and showing exact heights of structures at each existing contour. j. If structures are proposed, each floor level shall be shown with different shading with a legend giving grade or elevation of each level. k. If a garage(s) is proposed, the proposed elevation or grade at garage floor and at existing street level at drive entry. 2756602.6 5 Give percentage of total average slope, and percent and length of single steepest portion of driveway. I. The individual square footage of buildings, garages, patios, footprint, and disturbance area. M. All disturbed (or graded) areas and the proposed method of final treatment. Indicate all retaining walls, showing the actual heights. n. Existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel and show that the requirements regarding storm water runoff and drainage have been met. o. Location, number of spaces, dimensions, circulation patterns, and surface materials for all off-street parking and loading areas, driveways, access ways, and pedestrian walkways. The acceptability of any proposed shared parking arrangement must be validated in a study prepared by an independent traffic expert approved by the Town and whose services are paid for by the applicant. p. The location, dimensions, area, materials, and lighting of signage. q. A lighting plan in conformance with Chapter 8 of this Zoning Ordinance. r. Street dedications and improvements. S. The size and locations of all existing and proposed public and private utilities. All easements must be shown and given in writing. t. A phasing plan, if the project will be completed in phases, indicating which improvements will be completed in each phase. U. A traffic analysis, unless waived by the Development Services Director. 6. If the site contains unique features requiring additional analysis, any other information the plan reviewer reasonably determines 2756602.6 6 to be necessary to establish compliance with this Zoning Ordinance. D. Fee: The application for an Administrative Site Plan Review & Approval shall be accompanied by a filing fee, which shall include Town staff review time costs, in an amount established by a schedule adopted by the Town Council either as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the town, county, state, school district, or federal government. E. Review Procedures: For each Site Plan submitted, the Planning & Zoning Division shall determine administrative completeness, determine substantive completeness, review and consider approval within the time periods adopted by resolution of the Town Council in compliance with ARIZ. REV. STAT. § 9-835, as amended. F. Appeals: The application for an appeal of an Administrative Site Plan Review decision shall be made within 30 days of said decision and shall be accompanied by a filing fee in an amount established by the Town Council as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, the federal government or a county, state, school district, or sanitary district. 1. Any applicant for Administrative Site Plan approval who is dissatisfied or aggrieved by the decision of the Planning and Zoning Division may, within 30 days, appeal the decision to the Planning & Zoning Commission. The Planning & Zoning Commission may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. 2. Any applicant who is dissatisfied or aggrieved by the appeal decision of the Planning & Zoning Commission may, within 30 days, appeal their decision to the Town Council. The Town Council may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. G. Expiration of Site Plan Approval: 1. A Site Plan approval becomes void if a building permit has not been issued within one year from the date of the approval. 2756602.6 7 2. If the applicant files for an extension prior to the Site Plan approval becoming void, an extension may be granted by the Planning & Zoning Division. H. Special Use Permits, Temporary Use Permits, Waivers Requests: Administrative Site Plan Review approval shall be permitted for temporary use permits and administrative use permits. Administrative Site Plan Review approval shall not be granted if all Zoning Ordinance provisions are not fully met or if one or more special use permits or waivers are necessary. In such cases, applications must be heard by the Planning & Zoning Commission and Town Council as follows: 1. The Planning & Zoning Commission shall review and consider the Site Plan along with any Special Use Permit or Waiver requests. Applications shall be filed with the Planning & Zoning Division on a form prescribed by the Development Services Department. The application shall be accompanied by a detailed Site Plan prepared in accordance with Subsection 2.04(C) above showing all information necessary to demonstrate that the proposed use will comply with all special conditions as well as other regulations and requirements of this Zoning Ordinance. 2. The Planning & Zoning Commission shall forward a recommendation for approval, conditional approval, or denial to the Town Council. The Town Council shall consider the request within 30 working days of the Planning & Zoning Commission forwarding its recommendation. 2756602.6 8 The Town of Fountain Hills Zoning Ordinance, Chapter 2 (Procedures), Section 2.05 (Plan Review), is hereby deleted in its entirety and replaced with a new Section 2.05 (Violation and Enforcement), to read as follows: Section 2.05 Violation and Enforcement A. Prior to Building Permit: Prior to the issuance of a building permit, the Chief Building Official or designee shall ascertain that the Zoning Administrator and other reviewing agencies have approved the plans which are in conformance with those presented with the building permit application and that the time limitations imposed by this Zoning Ordinance have not elapsed. B. During Construction: The Chief Building Official or designee shall ensure that all matters are undertaken according to the conditions of the approved Site Plan. In the event of a violation, the Building Inspector shall notify the permittee, by mail or written report that he is in violation of the conditions of the approved Site Plan. If the violation is not cured or a cure is not substantially begun, in the opinion of the Chief Building Official or designee, within 10 days after notification, the building permit shall be revoked and shall be null and void. Once commenced, the cure shall be pursued diligently until completion, but in no event shall any cure period exceed 30 days, unless approved in writing by the Chief Building Official. The Town of Fountain Hills Zoning Ordinance, Chapter 2 (Procedures), Section 2.06 (Planned Unit Developments), is hereby deleted in its entirety and replaced with the following: Section 2.06 Planned Unit Developments Planned Unit Developments (PUD) shall not be approved after September 1, 2016. Planned Unit Developments approved prior to September 1, 2016 shall be regulated according to the approved PUD on file with the Town's Development Services Department. 2756602.6 9 Amendments to Chapter 12 — Commercial Zoning Districts The Town of Fountain Hills Zoning Ordinance, Chapter 12 (Commercial Zoning Districts), Section 12.02 (Permitted Uses), Subsection D, is hereby amended as follows: Section 12.02 Permitted Uses D. In C-3 Zoning Districts, the following uses are also permitted: 7. New and used automobileS, boats, golf carts, all -terrain vehicles, motorcycles, travel trailers, recreational vehicle sales and rental, including outside display area, provided all sales and repair activities are conducted within a building and subject to Site Plan approval of PURSUANT TO SECTION 2.04 OF THIS ZONING ORDINANCE. 2756602.6 10 Amendments to Chapter 13 - Industrial Zoning Districts The Town of Fountain Hills Zoning Ordinance, Chapter 13 (Industrial Zoning Districts), Section 13.05 (Procedural Regulations), is hereby deleted in its entirety and reserved for future use. The Town of Fountain Hills Zoning Ordinance, Chapter 13 (Industrial Zoning Districts), Section 13.06 (Expiration of Approval), is hereby deleted in its entirety and reserved for future use. 2756602.6 11 Amendments to Chapter 17 - Wireless Telecommunications Towers and Antennas The Town of Fountain Hills Zoning Ordinance, Chapter 17 (Wireless Telecommunications Towers and Antennas), Section 17.06 (Special Use Permits), Subsection B (Towers), paragraph 1 (Information Required), part "a" is hereby amended as follows: Section 17.06 Special Use Permits B. 2756602.6 Towers: 1. Information required. In addition to any information required for applications for special use permits pursuant to Chapter 2, Section 2.02 of this Zoning Ordinance, applicants for a special use permit for a tower shall submit the following information: a. A SITE Plan of Development as required in Section zoning, General Plan classification of the site and al within the applicable separation distances set forth 17.07(B), adjacent roadways, proposed means elevation drawings of the proposed tower and structures, and other information deemed by the Development SERVICES Director to be necessary compliance with this chapter. 12 1 2.04 plus I properties in Section of access, any other to assess Amendments to Chapter 18 — Town Center Commercial Zoning District The Town of Fountain Hills Zoning Ordinance, Chapter 18 (Town Center Commercial Zoning District), Section 18.11 (Parking and Loading), Subsection B, is hereby amended as follows: Section 18.11 Parking and Loading B. A shared parking plan may be proposed for developments within the TCCD according to the following guidelines: 4. A shared parking plan shall be subject to review and approval by the Planning and Zoning Commission during SITE eeneept Plan review. 5. Shared parking shall conform to the following standards: e. Easements: Owner Affidavit; Parking Association. When shared parking is permitted, the applicant shall ensure that all owner(s) of the property on which the shared parking is located shall, prior to SITE concept Plan approval, (1) record an irrevocable easement over such property for the benefit of the applicant's property and (2) file a parking affidavit with the Planning and Zoning Director indicating the (A) the joint use is acceptable and will not interfere with the owner's current use and (B) owner agrees and understands that future development on the owner's property may be limited due to the shared parking. In cases where parking for a project is to be provided on more than one (1) lot, a parking association shall be formed by the owners of the affected parcels prior to SITE eencep Plan approval. Documentation of the association's recorded conditions, covenants and restrictions shall be provided to the Planning and Zoning Director, or designee, prior to SITE eeneept Plan approval and shall be in a form acceptable to the Town Attorney. 2756602.6 13 The Town of Fountain Hills Zoning Ordinance, Chapter 18 (Town Center Commercial Zoning District), Section 18.14 (Density, Area, Building and Yard Regulations), is hereby amended to delete the reference to 'Concept Plan" in footnote "a" and replace it with 'Site Plan." 2756602.6 14 Amendments to Chapter 19 - Architectural Review Guidelines The Town of Fountain Hills Zoning Ordinance, Chapter 19 (Architectural Review Guidelines), Section 19.02 (Applicability), is hereby amended as follows: Section 19.02 Applicability A. All proposed retail, service, commercial, wholesale, transportation, industrial or multi -family developments, re -developments or expansions, which THAT are subject to Site Plan Review; a Special Permit or a Concept Plan revi pursuant to the provisions of Chapter 2 shall be subject to Design Review and approval by the SAME PERSON OR ENTITY RESPONSIBLE FOR APPROVING THE SITE PLAN prior to the issuance of any Special Use Permit or Building Permit in connection with such development, re- development or expansion. Likewise, prior to the issuance of a Certificate of Occupancy, all conditions of said Design Review and approval must be met. The Town of Fountain Hills Zoning Ordinance, Chapter 19 (Architectural Review Guidelines), Section 19.07 (Administration), is hereby amended as follows: Section 19.07 Administration A. When DESIGN REVIEW OF A SITE PLAN IS REQUIRED TO BE COMPLETED BY section, the Planning & Zoning Commission AND THE TOWN COUNCIL, EACH shall hold concurrent ITS DESIGN REVIEW hearings DURING THE with the Geneept, SITE Plan Review PROCESS CONDUCTED PURSUANT TO SECTION 2.04 OF THIS ZONING ORDINANCE. All DESIGN Reviewer hearings and decisions shall be completed in conjunction with the Gencerpt SITE Plan Review, unless specifically requested otherwise by an applicant. 2756602.6 15 Amendments to CHAPTER 23 - PLANNED AREA DEVELOPMENT (P.A.D.) DISTRICT The Town of Fountain Hills Zoning Ordinance, Chapter 23 (Planned Area Development (P.A.D.) District), Section 23.04 (Intensity of Land Use), Subsection B, is hereby amended as follows: Section 23.04 Intensity of Land Use B. The yard, building setback, building height, lot size, and other requirements within the district shall be those approved in the SITE Plan as provided below in Subsection 23.07(B)f-&). The Town of Fountain Hills Zoning Ordinance, Chapter 23 (Planned Area Development (P.A.D.) District), Section 23.05 (Design Standards), Subsection A (Consistency with Standards), is hereby amended as follows: Section 23.05 Design Standards A. Consistency with Standards: The design of the project shall be consistent with any existing guidelines applicable to the land uses proposed, including, but not limited to, the Town's Commercial/Multi- Family Architectural Design Review Guidelines and Geneept SITE Plan requirements. The Town of Fountain Hills Zoning Ordinance, Chapter 23 (Planned Area Development (P.A.D.) District), Section 23.06 (General Requirements and Standards), Subsection C (Approval of Development Plan), is hereby amended as follows: Section 23.06 General Requirements and Standards C. Approval of Development Plan: No building, subdivision or zoning approval shall be issued for any use under a P.A.D. zoning designation 2756602.6 16 prior to approval of the Development Plan as prescribed herein. FOR THE PURPOSES OF THIS CHAPTER, "DEVELOPMENT PLAN" SHALL COLLECTIVELY MEAN THE TOWN -APPROVED VERSION OF THE SITE PLAN SUBMITTED ACCORDING TO SUBSECTION 23.07(B) BELOW, THE ADDITIONAL REQUIRED STUDIES PROVIDED ACCORDING TO SUBSECTION 23.07(C) BELOW, THE PROJECT NARRATIVE PROVIDED ACCORDING TO SUBSECTION 23.07(D) BELOW 2.04(C) ABOVE AND THE PHASING PLAN SUBMITTED ACCORDING TO SUBSECTION 23.07(E) BE GW 2.04(C) ABOVE. The Town of Fountain Hills Zoning Ordinance, Chapter 23 (Planned Area Development (P.A.D.) District), Section 23.07 (Application and Procedures), is hereby amended as follows: Section 23.07 Application and Procedures A. Pre -application Meeting: Prior to making a P.A.D. application, the applicant shall meet with appropriate Town staff to discuss the development concept, the review and approval process, and the submittal requirements. B. 9evellopment SITE Plan: The P.A.D. zoning district may only be developed in accordance with an approved Develepng SITE Plan PREPARED AND APPROVED ACCORDING TO SECTION 2.04 OF THIS ZONING ORDINANCE. The Deyeleomon+ Plan for the area of the R.A.D.- following: 2756602.6 17 . ' • ' ' G . .. .. . .. .. i lie .. .. . .. .. --a . r 1 2756602.6 17 . .. . . .. .. .. "- 2756602.6 18 C. ADDITIONAL REQUIRED STUDIES: +1. Master water, sewer and drainage plans. The plans shall indicate the approximate alignment and sizing of water lines, sanitary sewers, and storm sewers (if any), as well as easements for utilities, if necessary. Evidence must be submitted that the water company operating in Fountain Hills and the Fountain Hills Sanitary District approve the alignment and sizing of proposed utilities. Show existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel, and how the requirements regarding storm water runoff and drainage have been met. j2. A Traffic Impact Analysis including projected volumes on streets within and adjacent to the site. Indicate off-site improvements necessary to accommodate the increase in traffic at level of service C or better. Indicate any proposed phasing of traffic improvements and relate such traffic improvements to the overall phasing of the project. 2756602.6 19 a' lliillNjil P.M. WINNI-A 'W millop.w' IN NO 1@1W C. ADDITIONAL REQUIRED STUDIES: +1. Master water, sewer and drainage plans. The plans shall indicate the approximate alignment and sizing of water lines, sanitary sewers, and storm sewers (if any), as well as easements for utilities, if necessary. Evidence must be submitted that the water company operating in Fountain Hills and the Fountain Hills Sanitary District approve the alignment and sizing of proposed utilities. Show existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel, and how the requirements regarding storm water runoff and drainage have been met. j2. A Traffic Impact Analysis including projected volumes on streets within and adjacent to the site. Indicate off-site improvements necessary to accommodate the increase in traffic at level of service C or better. Indicate any proposed phasing of traffic improvements and relate such traffic improvements to the overall phasing of the project. 2756602.6 19 -- - -- - - - ---- - -- - - ---- -- - -- - - - - .-: :.: -. -- - - - - --- -- MM- -- - -- NIP -0 -0 - - ---------- - -- • 6D. Project Narrative: 1. The applicant shall submit a statement describing the terms and conditions under which the property will be developed and maintained subsequent to development. Such statements shall include any conditions, performance standards and other reasonable restrictions as may be necessary to ensure the development and maintenance of the property in accordance with the approved Development Plan. The purpose of this narrative is to provide a clear and concise statement for the review process to ensure a better understanding of the proposed development concept. 2. The applicant shall submit a description of the objectives to be achieved by the development concept. The statement shall include, but is not limited to: a. The manner in which the proposed development meets the P.A.D. standards as set forth in the Zoning Ordinance. b. The proposed architectural and site design concepts including style, colors and type of materials, placement of structures to maximize views and take advantage of the site's natural characteristics. C. Specific concepts by which the proposed development will make an orderly transition from existing or planned 2756602.6 20 adjacent development, including varied setbacks and facade treatment, open space elements, screening of parking areas and landscaping of public or private open spaces and recreational facilities. d. Intended design philosophy and environmental quality described by written text, graphics or photography, or a combination thereof. 3. General description of the availability of other community facilities, such as schools, fire protection services and cultural facilities, if any, and how these facilities are affected by this proposal. 4. Evidence that the proposal is compatible with specifically cited goals of the Fountain Hills General Plan and any applicable area specific plan. DE. Phasing of Development (Phasing Plan): 1. Any P.A.D. plan proposed to be constructed in phases shall include full details relating to each phase, including the type of development, density, lot coverage and a map designating the phases and sequence of development. Each phase shall be designed so that it may be developed independently of other, subsequent phases. 2. The Phasing Plan shall include the projected time for beginning and completion of each phase. A modification of the timing of any of the phases of development may be approved by the Town Manager or his designee upon the showing of good cause by the developer. EF. Approval of the Development Plan: The review of a Development Plan shall be in conjunction with the rezoning of the property. The Planning and Zoning Commission shall base its recommendation, and the Town Council shall base its decision, on the conformance of the proposed DEVELOPMENT Plan with the Town's General Plan, any applicable area specific plan and the stated purpose of the P.A.D. district. FG. Recordation of Development Plan: Within (30� days of receiving zoning and Development Plan approval by the Town Council, the applueant TOWN shall, at applicant's expense, record NOTICE OF 2756602.6 21 the Development Ilan and conditions of approval with the Maricopa lan w! County • • Office. Failure to FeeeFd the approved - Mangerthirty 1301 days of approval will render the approval null and void. The Town .of titre ef the FeR',_ 2756602.6 22 ORDINANCE 16-11 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS ZONING ORDINANCE, CHAPTERS 2 (PROCEDURES), 12 (COMMERCIAL ZONING DISTRICTS), 13 (INDUSTRIAL ZONING DISTRICTS), 17 (WIRELESS TELECOMMUNICATIONS TOWERS AND ANTENNAS), 18 (TOWN CENTER COMMERCIAL ZONING DISTRICT), 19 (ARCHITECTURAL REVIEW GUIDELINES) AND 23 (PLANNED AREA DEVELOPMENT DISTRICT) BY ADOPTING BY REFERENCE THAT CERTAIN DOCUMENT KNOWN AS "THE NOVEMBER 3, 2016, ZONING ORDINANCE AMENDMENTS RELATING TO SITE PLAN APPROVAL." WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council") adopted Ordinance No. 93-22, which established the Zoning Ordinance for the Town of Fountain Hills (the "Zoning Ordinance"); and WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter 2 (Procedures), Chapter 12 (Commercial Zoning Districts), Chapter 13 (Industrial Zoning Districts), Chapter 17 (Wireless Telecommunications Towers and Antennas), Chapter 18 (Town Center Commercial Zoning District), Chapter 19 (Architectural Review Guidelines) and Chapter 23 (Planned Area Development (P.A.D.) District) relating to Site Plan Approvals; and WHEREAS, in accordance with the Zoning Ordinance and pursuant to ARIZ. REV. STAT. § 9-462.04, as amended, public hearings regarding this Ordinance were advertised in the September 28, 2016 and October 5, 2016, editions of the Fountain Hills Times; and WHEREAS, public hearings were held by the Fountain Hills Planning and Zoning Commission (the "Commission") on October 13, 2016, and by the Town Council on November 3, 2016. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The document known as the November 3, 2016, Zoning Ordinance Amendments Relating to Site Plan Approval (the "Site Plan Amendments"), of which one paper copy and one electronic copy are on file in the office of the Town Clerk, which document was made a public record by Resolution 2016-28 of the Town of Fountain Hills, Arizona, is hereby referred to, adopted and made a part hereof as if fully set out in this Ordinance. SECTION 3. The text of the Zoning Ordinance is hereby amended for Chapter 2 (Procedures), Chapter 12 (Commercial Zoning Districts), Chapter 13 (Industrial Zoning Districts), Chapter 17 (Wireless Telecommunications Towers and Antennas), Chapter 18 (Town 2794640.1 Center Commercial Zoning District), Chapter 19 (Architectural Review Guidelines) and Chapter 23 (Planned Area Development (P.A.D.) District) as set forth in the Site Plan Amendments. SECTION 4. Any person who fails to comply with any provision of the Site Plan Amendments shall be subject to civil and criminal penalties as set forth in Chapter 1 (Administration), Article 1-8 (Penalty) of the Fountain Hills Town Code, including civil penalties of not more than $250.00 base fine. Criminal penalties shall constitute a class one misdemeanor, punishable by a fine not to exceed $2,500.00 or by imprisonment for a period not to exceed six months, or by both such fine and imprisonment. Each day that a violation continues shall be a separate offense. SECTION 5. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or any part of the Site Plan Amendment adopted herein by reference is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 6. 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 of this Ordinance. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, November 3, 2016. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor REVIEWED BY: Grady E. Miller, Town Manager 2794640.1 2 Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE PLANNING & ZONING COMMISSION October 13, 2016 Vice -Chairman Mikolajczyk opened the meeting at 6:30 p.m. ROLL CALL: The following Commissioners were present: Chairman Michael Archambault, Vice -Chairman Eugene Mikolajczyk. Commissioners: Amberleigh Dabrowski, Susan Dempster, Erik Hansen, and Howie Jones. Also in attendance were Bob Rodgers, Development Services Director and Paula Woodward, Executive Assistant and Recorder of the minutes. Commissioner Roger Owners was absent. Chairman Michael Archambault requested participation in the Pledge of Allegiance and a moment of silent reflection. CALL TO THE PUBLIC No one wished to speak. Chairman Archambault turned the meeting over to Bob Rodgers. AGENDA ITEM #1 ELECTION OF A CHAIRMAN AND VICE-CHAIRMAN FOR A ONE- YEAR TERM BEGINNING OCTOBER 13, 2016 THROUGH SEPTMBER 30, 2017. Mr. Rodgers asked for Chairman Nominations. Commissioner Jones NOMINATED Mike Archambault for the Planning and Zoning Commission Chairman. Vice -Chairman Mikolajczyk SECONDED and a voice vote was taken. Mike Archambault was UNANIMOUSLY approved and Mike Archambault was reappointed to the position of Chairman. Chairman Archambault's term began October 13, 2016 and expires on September 30, 2017. Chairman Archambault asked for Vice -Chairman nominations. Commissioner Jones NOMINATED Gene Mikolajczyk for the Planning and Zoning Commission Vice - Chairman. Commissioner Dempster SECONDED and a voice vote was taken. Gene Mikolajczyk was UNANIMOUSLY approved and Gene Mikolajczyk was appointed to the position of Vice -Chairman. Vice -Chairman Mikolajczyk's term began October 13, 2016 and expires on September 30, 2017. AGENDA ITEM #2 - CONSIDERATION OF APPROVING THE PLANNING AND ZONING COMMISSION MEETING MINUTES DATED SEPTEMBER 8, 2016. Vice -Chairman Mikolajczyk MOVED to APPROVE the meeting minutes dated Thursday, September 8, 2016 as written. Commissioner Jones SECONDED and the MOTION CARRIED UNANIMOUSLY. AGENDA ITEM #3 - PUBLIC HEARING REGARDING ORDINANCE #16-11, TEXT AMENDMENTS TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTIONS 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05, 13.06, 17.06.B.1.A, 18.11.11, 18.14, 19.02.A, 19.07.A, 23.04.11, 23.05.A, 23.06.C, AND 23.07, RELATING TO ADMINISTRATIVE SITE PLAN APPROVAL. CASE #Z2016-07 Commissioner Jones opened the Public Hearing at 6:33 p.m. Pagel of 8 Bob Rodgers addressed the Commission and explained Ordinance#16-11 is a series of amendments to sixteen separate sections from seven different chapters of the Zoning Ordinance. All the amended sections relate to new commercial, industrial, multi -family and/or mixed use project proposals. Mr. Rodgers said this ordinance will re -organize, consolidate and or eliminate sections related to the Application Submittal and Approval requirements for Concept Plans, Site Plans, Special use Permits, PUD's PAD's and Re -Zonings. Each of these Sections have similar submittal requirements, but each is also slightly different from the others. Ordinance #16-11 consolidates these into ONE list of submittal requirements, and puts it in ONE location in the ordinance. Applicants will no longer have to look through multiple ordinance sections in order to figure out what they have to submit when they want to propose a new project. Mr. Rodgers highlighted an outline of changes: Chapter 2 — Procedures will be amended by eliminating the Concept Plan section, the Plan Review Regulations section and the PUD section and replacing them with the new Site Plan Review Regulations section. This is the "meat" of the proposed ordinance amendments. This new section outlines the submittal requirements and also the requirements for administrative review and approval. And it fixes a number of minor housekeeping items such as updating the department's name, fixing typos, etc. Chapter 12 — Commercial Districts is being amended to refer the relevant applications to the new Chapter 2 rules for Site Plan Review. Chapter 13 - Industrial Districts is being amended by eliminating two sections that are no longer relevant. (13.05 allows districts to be created — 13.06 requires A Plan of Development) Chapter 17 — Wireless Towers & Antennas is amended with minor changes that reference Site Plans rather than Plans of Development. Chapter 18 — The TCCD District is amended to change the references from Concept Plan approval to Site Plan approval. Chapter 19 - Architectural Review is also amended to change the references from Concept Plan approval to Site Plan approval. Chapter 23 - PAD's is also amended to change the references from Concept Plan, and Development Plan to Site Plan approval. The submittal requirement section is being eliminated and applicants are pointed to the new consolidated Site Plan submittal requirements back in Chapter 2. The Site Plan Review and Approval procedures are also being amended and consolidated: Ordinance # 16-11 amends the process of approval of these proposals so that "IF" the submittal meets all the requirements of the ordinance, and no Special Use Permits, Variances, Re -zonings or Waivers are necessary, there will be no need to go through the public hearing process for Concept Plans that's currently in place. Staff will now be authorized to approve the Site Plan proposal administratively and the applicant may move straight to applying for building permits. If a SUP, Variance, Re- zoning or Waiver is requested as part of the application then the public hearing process with Planning & Zoning Commission and Council that's currently in effect for those types of applications will still be necessary for approval. Also note that should any applicant be denied administrative approval of their Site Plan, or even if they disagree with one or more stipulations of their approval, there will not be a two-step appeal process included that allows the first appeal to go to P & Z, and if they're not satisfied there, they can appeal Planning & Zoning Commission's decision to Council for a final answer. In Conclusion, Mr. Rodgers said Ordinance #16-11, Administrative Site Plan approval, will consolidate multiple ordinance sections and streamline the Site Plan review and approval process. It will allow for administrative staff approval when all ordinance provisions are being met. It will not change the public Page 2 of 8 hearing process for applications requiring Special Use Permits, Variances, Re -zoning, or Waivers. It creates a two-part appeal process should an applicant be dissatisfied with a denial or the stipulations of an approval. It also performs a much-needed clean up of a number of ordinance sections. Making at least those portions of the ordinance a bit more easily understood. Mr. Rodgers stated that staff recommends that the Planning & Zoning Commission forward a recommendation to Town Council to approve Ordinance #16-11 as presented. Commissioner Jones closed the Public Hearing at 6:37 p.m. AGENDA ITEM #4 - CONSIDERATION OF ORDINANCE #16-11, TEXT AMENDMENTS TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTIONS 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05 13.06 17.06.B.1.A 18.11.11 18.14 19.02.A 19.07.A 23.04.B 23.05.A 23.06.0 AND 23.07 RELATING TO ADMINISTRATIVE SITE PLAN APPROVAL. CASE #Z2016-07 Commissioner Hansen asked why is "Planning & Zoning" shown omitted from page two? Mr. Rodgers said it would go to the department first not the Commission. In response to Chairman Archambault, Mr. Rodgers explained the PAD is a hard zone, that was created by rezoning and the PUD takes the underlying zoning and allow for minor changes, i.e., set backs, etc. Commissioner Dabrowski asked doesn't the public lose the right to be heard if the public -hearing process is eliminated. Mr. Rodgers said if the applicant is meeting the ordinances the public really does not have input. This is not changing the process for items that require public hearings. Vice -Chairman Mikolajczyk MOVED to forward a recommendation to the Town Council to approve Ordinance #16-11, a series of text amendments to the Fountain Hills Zoning Ordinance that will allow the consolidation and reorganization of multiple ordinance sections and to authorize the administrative review and approval of commercial, industrial, mixed-use and multi -family site plans as presented. Commissioner Dabrowski SECONDED and the MOTION CARRIED UNANIMOUSLY 6/0. AGENDA ITEM #5 - PUBLIC HEARING OF ORDINANCE #16-03, A TEXT AMENDMENT TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTION 1.12, SECTION 6.08.CC, AND CHAPTER 8, RELATING TO OUTDOOR LIGHTING CONTROLS. CASE #Z2016-01 Chairman Archambault opened the Public Hearings at 6:43 p.m. Mr. Rodgers stated this was originally proposed by staff in order to update the town's outdoor lighting ordinance (Chapter 8 of the Zoning Ordinance) to bring it up to today's standards. Ordinance #16-03 quickly ballooned into a full re -write of Chapter 8 along with amendments to Chapter 1( Definitions) and Chapter 6 (Signs) as well. Mr. Rodgers said in order to take into account the CFL and LED light equivalents to the Standard incandescent bulbs that are called out in the current ordinance we needed to revise the whole ordinance and change the methodology of testing, and of the enforcement of outdoor lighting in a uniform manner regardless of the type of light fixtures being looked at. Staff received a lot of information and support from the Dark Sky Committee during the process. The committee has been very influential regarding some sections of the revised ordinance you have before you tonight. Page 3 of 8 Mr. Rodgers reviewed some highlights: References to watts were changed to their equivalents in "lumens". Definitions have been updated. Shielding requirements have been modified. The correlated color temperature o flights has been set at a maximum of 3,000 kelvin Prohibits light trespass onto adjoining properties Modifies the sign code as it relates to electronic and LED illuminated signage Provides for some exemptions for municipal uses, emergencies, holiday lighting, and Special Events The ordinance proposal you have before you provides all these things and this is the proposal that staff recommends. However the Dark Sky committee has requested that two provisions be reinserted and the committee's proposal has been included in your packets. The two provisions are: 1. Dark Sky Committee: The non-residential lumen density cap which limits the amount of lumens per net acre. Staff: Staff has not included this in the ordinance proposal for four reasons: 1. Staff is concerned that such a cap only impacts the business community, especially new businesses in the downtown area and larger commercial plazas. Staff does not believe that this is consistent with the stated goals of the Downtown Area Specific Plan Swaback Plan) as adopted into the General Plan by a majority vote of the town residents. 2. Staff believes that such a cap is redundant and unnecessary given that limits on individual lighting fixtures, their shielding, and their brightness, effectively accomplish the same results. Laying an additional level of regulation onto commercial properties is not necessary. 3. Staff can see no way of actually enforcing such a cap with any ongoing consistency once businesses are in operation. 4. Staff believes that any per -acre lumen density cap regulations should only be applied to new development proposals that are already required to provide photometric plans in their application submittals in order to demonstrate compliance with the Town's lighting ordinance. So, in effect this is already in place for new construction. Requiring any kind of on-going verification would be very problematic. However, if deemed to be a good idea, a provision like this can be added later after a more thorough evaluation. 2. Dark Sky Committee: town lighting should be required to comply with the requirements of the outdoor lighting ordinance. Staff. Current legal advice is that the Town facilities and activities are exempt from ordinances adopted by the town. Therefore, staff prefers not to officially adopt an ordinance provision that is known to be unenforceable. Mr. Rodgers concluded that Staff recommends that the Commission forward a recommendation to the Town Council to approve the Outdoor Lighting Ordinance (#16-03) as proposed by staff. Chairman Archambault asked if there was any one from the public who wished to speak. Joe Bill, a Fountain Hills resident and a member of the Dark Sky Committee, said there are two issues to be resolved with the proposed ordinance. They are a provision for lumen density caps and a provision for municipally owned lighting. These need to be resolved in order to pursue the goal of a dark sky designation for Fountain Hills. Mr. Bill stated there are loop holes in the ordinance. He explained in Page 4 of 8 detail why the loop holes should be corrected. Mr. Bill said if Fountain Hills was to receive the prestigious dark sky designation they would be nationally recognized. Mr. Bill thanked the Commission. Nancy Bill, a Fountain Hills resident and Chairman of the Dark Sky Committee addressed the commission stating the two goals of the committee are to update the current lighting ordinance and to help Fountain Hills obtain the Dark Sky designation. Since last July the Committee has focused on the ordinance updates since this is a prerequisite for applying for the Dark Sky Designation. Almost all the criteria set forth by the Dark Sky Association has been included in the updated ordinance and supported by Town staff. However two items need resolution. Ms. Bill focused and explained the need for inclusion for municipally owned lighting. Ms. Bill thanked the Commission. Chairman Archambault closed the public hearing at 6:55 p.m. Commissioner Hansen asked why the definitions are omitted. Mr. Rodgers replied, the definitions are removed from that chapter and are added to chapter one. Vice -Chairman Mikolajczyk asked for clarification on section 6.08 referring to electronic message signs. Mr. Rodgers said there is another section that requires all signs to be on site other than sign spinners. Commissioner Dabrowski asked about enforcement, if the previsions were added to the ordinance. Mr. Rodgers said it would be hard to tell if non compliant lights were used or changed out. If a complaint was received the code enforcement officer would investigate but it would be hard to enforce with his schedule. He would have to go out during the day to investigate. MCSO would not be asked to enforce. The Town reviews the photometric plan required by the Development Services Department for new builds. This would be enforced at plan review. Enforcement against the Town would not happen. Chairman Archambault asked if the provisions would be reviewed in the future and if Sedona & Flagstaff have this in their ordinances. Mr. Rodgers said he would like to review the density cap request further in order to determine how it would affect businesses. Mr. Rodgers confirmed Sedona and Flagstaff have these provisions. Chairman Archambault asked if the new assisted living facility, (The Hemmingway) complies with the new ordinance. Mr. Rodgers said that project already has an approved development agreement and has been pre approved. In response to Chairman Archambault Mr. Rodgers confirmed the Town is exempt from its own ordinance enforcement. Vice -Chairman Mikolajczyk stated that the lumens cap in the ordinance is less than what the Dark Sky Committee is requesting. Why couldn't the Dark Sky Committee's request be put in the ordinance? Mr. Rodgers said he is not convinced there is a need for a second layer of regulation. The purpose of revising ordinances is to clean them up and remove un -enforceable regulations and redundancies. Vice -Chairman Mikolajczyk stated he had a question but it may apply more to the Town Manager & Council Policy. What direction does the Town want to go regarding wanting a dark sky but also wanting a more vibrant downtown with brighter lights & entertainment? Flagstaff and Sedona use the cap when they do the initial review but did not confirm it was used after. Page 5 of 8 Mr. Rodgers said the downtown overlay was recently approved to allow for flexibility with noise created by entertainment and events. It can also allow for more or brighter lights in the future if desired. Commissioner Dempster asked are there any loopholes that have not been mentioned. Mr. Rodgers replied he could not think of any but they can always come up in the future. Commissioner Jones asked if the section on municipal lighting was adopted, would the Town incur any cost? Did the towns you consulted with mention anything regarding the state statue that excludes them from their own ordinances. Mr. Rodgers stated it would not cost the Town any money and he did not ask them about Sedona's or Flagstaff s exclusion from their own ordinances. Commissioner Hansen asked if the Town has any recognition in regards to the Town's lighting or lack of lighting? Mr. Rodgers replied he was unaware of any but Fountain Hills is darker than most communities. We call this a "dark sky" ordinance but it is not officially a dark sky community. Chairman Archambault asked how do you relate what is being done here with the strategic planning poll taken by residents. What would be the harm of adopting the lumens cap. Mr. Rodgers stated this is headed in the right direction. Most of the ordinance is dark sky compliant. There are a few items left to negotiate to include or leave out. This is a very tricky thing because some people like the dark sky and looking at the stars while some businesses may not want to dim lights. Mr. Rodgers asked why have a layer of regulation if it is not used. Mr. Rodgers said the Town either gets the certification or don't. There are not different levels or tiers. Chairman Archambault said he would not be opposed to creating an ad hoc committee to review this further in the future. Commissioner Dabrowski asked Mr. & Mrs. Bill if there are any monetary benefits by becoming a certified dark sky community. Mr. Bill said there are none. It is a prestigious designation and the town would receive national attention. This also ties in with the idea of having an observatory in town. Mr. Bill emphasized there is a major loop hole in the ordinance that does not discuss shielded or partially shielded lighting. No other community in Maricopa County is designated as dark sky. Tucson is working toward becoming a dark sky community. Commissioner Dabrowski asked if the observatory would be prohibited if the dark sky designation was delayed. Mr. Bill said it would not prohibit or delay establishing the observatory. Vice -Chairman Mikolajczyk asked about taking the word unshielded out of the ordinance. He suggested changing it to apply to all outdoor illumination. Mr. Rodgers questioned if changing it would work with parking lot lights. Commissioner Jones asked if the lumen density cap applies only to new construction. Page 6 of 8 Mr. Bill said it does apply to new construction but the problem is existing businesses that change out lighting would not have a lumens cap unless it's mentioned in the ordinance. Lighting that is already in place is grandfathered in. Commissioner Jones stated the observatory location seems counter intuitive to locate it near a vibrant downtown. Mr. Bill said the location is not definite. The idea is for families to visit the observatory and take advantage of the surrounding businesses and downtown such as restaurants, coffee shops and ice cream parlors. Vice -Chairman Mikolajczyk asked why not remove the word unshielded. Mr. Bill said it would be too restrictive and may cause a concern amongst businesses. AGENDA ITEM #6 - CONSIDERATION OF ORDINANCE #16-03, A TEXT AMENDMENT TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTION 1.12, SECTION 6.08.CC, AND CHAPTER 8, RELATING TO OUTDOOR LIGHTING CONTROLS. CASE #Z2016-01 Vice -Chairman Mikolajczyk MOVED to forward a recommendation to the Town Council to approve Ordinance #16-03, the proposed text amendments to the Fountain Hills Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls as presented and recommended by Staff. Chairman Archambault SECONDED and the MOTION CARRIED UNANIMOUSLY 6/0. Commissioner Hansen Aye Commissioner Dempster Aye Commissioner Jones Aye Commissioner Dabrowski Aye Vice-chairman Mikolajczyk Aye Chairman Archambault Aye AGENDA ITEM #7 - COMMISSION DISCUSSION/REQUEST FOR RESEARCH TO STAFF. Items listed below are related only to the propriety of (i) placing items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Commission. Chairman Archambault stated he would like to see an ad hoc Committee created to review the two sections of the lighting ordinance that were left out. Mr. Rodgers said the committee would be created provided the council does not add the two items. Chairman Archambault said the Committee would not be created till after the ordinance was on the Council agenda. AGENDA ITEM #8 - SUMMARY OF COMMISSION REQUESTS FROM SENIOR PLANNER. None AGENDA ITEM #8 - REPORT FROM SENIOR PLANNER AND ZONING ADMINISTRATOR PLANNING AND ZONING DIVISION OF DEVELOPMENT SERVICES. None Page 7 of 8 AGENDA ITEM #8 CHAIRMAN'S DISCUSSION AND EXPECTATIONS. The Chairman would like to have a discussion regarding dress code, motions and amendments, research, seating, possible rotation on handling agenda items for the benefit of commissioners experience and other items deemed important to the Commission. Chairman Archambault discussed in detail his expectations of Commissioners. He reviewed procedural protocol and encouraged the Commission to ask any questions. AGENDA ITEM #10 - ADJOURNMENT. Vice -Chairman Mikolajczyk MOVED to adjourn the meeting at 7:50 p.m. and Commissioner Jones SECONDED and the MOTION CARRIED UNANIMOUSLY. FOUNTAIN HILLS PLANNING & ZONING COMMISSION Chairman Mike Archambault ATTEST: Paula Woodward, Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Fountain Hills Planning and Zoning Commission held on the 13th day of October 2016, in the Town Council Chambers, 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268. I further certify that the meeting was duly called and that a quorum was present. Dated this 20th of October 2016 Paula Woodward, Executive Assistant Page 8 of 8 Meeting Date: 111312016 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Type: Regular Session Agenda Type: Regular Submitting Department: Development Services Staff Contact Information: Robert Rodgers, Director, rrodgers@fh.az.gov, 480-816-5138 Strategic Planning Goal: Not Applicable (NA) Operational Priority: Not Applicable (NA) REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of RESOLUTION 2016-22, declaring as a public record that certain document filed with the Town Clerk and entitled the 'Town of Fountain Hills, Outdoor Lighting Zoning Code Amendments, 2016." PUBLIC HEARING of ORDINANCE #16-03, a TEXT AMENDMENT to the Fountain Hills Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls. Case #Z2016-01 CONSIDERATION of ORDINANCE #16-03, a TEXT AMENDMENT to the Fountain Hills Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls. Case #Z2016-01 Applicant: Applicant Contact Information: Owner: NA Owner Contact Information: NA Property Location: The Town of Fountain Hills Development Services Department Town Wide Related Ordinance, Policy or Guiding Principle: Fountain Hills Zoning Ordinance Chapter 1 — Section 1.12 — Definitions Fountain Hills Zoning Ordinance Chapter 2 — Section 2.01 —Amendments or Zone Changes Fountain Hills Zoning Ordinance Chapter 6 — Section 6.08.CC — Signs Allowed or Required Fountain Hills Zoning Ordinance Chapter 8 — Outdoor Lighting Control Page 1 d Outdoor Ughtinji (IF 110116-03 71C 11/3/201( Staff Surrimary (becikgrc und): Ugldeiles to the Rounlain Hills Outdacr Lliglhting Crdiriance (Zoring Crdinaincei Chapter 81) were initiailed by slaff in En eiflk rl tci updaite lhei terminology and measurement standairds aiccorc ing tc current conditions and techncilcgy. Seclio n 1.12 cf the Zoning Ord inancie contains the definitic ns cif terms 1. seed thrc uglhc ut i hes c rc ina nm. Seclicri 6.0&CC of lhei Zcning Crdinanm contains the Tcwn's reiglulaticns regarding eleictrcnic meissapei signs Bind LED sigr s. Chapteir 8 cf thei Zc ning C rdinaricei ccritairis the Town's c utdc cir lighting regL leilicris. This chapter is carrirricrilyl called thea "Deirk Sky" orcinancei. However, whiles it is mcre restrictive thein many communities in the valley), it is not ai lrm "Dank Sky" ordineince. The proposed text amendments (ORD #1E-0%") will ameind these Zoning Ordinancei seclioins in circeir to updele the Towns ciutdcicir lighting) requirements acccirding to curreint ste ndards and leichncloglieis. A brief oiutline of the revised ouidir ar cei inch CIES: • The acciplicn of updated conversion information betwleein Watils and Lurrieins. • Adopting deifiniliciris for updaiteid terms useid in thea ordineince. • N es suringl the rriaximurri levels cif a lici%eiblei Iiglht in lumeins ratheir than in we tits. • Adcipting standards for shielding) baiseid cin initial lumeins netheir than watts. • Seitiling thea maximum level cif ai light's Correilateid Colcir Teimperatum at 3,000 Kelvin. • Rrohibils light treispe ss. 41 Rrovides for tloliday lighting exeirripticm. 41 Provides far mL nicipal L sei a nd eimeq lency exempticins. di Allows exemptions fc r peirrnitileid special events. Slte fll reicioimmends at oiptioin of Ordinainoe All 6-03 as desciribed a be vei. A DDITIC NALI DISK 1, SSIC N: C uringl this revision proiceiss lhei "Dark Sky Commiilleie7, a sell -appointed aidvcicacy g rCIL p, apprcaiched staff with a nurriber cd reiccirrimendeiIicris for inclusion in the revised ardinaincei. Their stateic intenlicin is than the Town beiccirr* a ceirlifieic Dark Sky Community and potentially construct an cbseirvaitcry in Tc wn. Staff reviewed lhei Dark Sky groLp's reiciomrneindatians and agreieid to iricll.dei and mcirrirriend many of the amendments proposed by the glrciup. Staff ailso considered scirriei of ihei recomrnendaticins tci bei pcileintially detrimeirilail to the local business cioimmunity. Theisei ite ms area as follows: 1. Rropoiseid Seicl ioin 8.02l.D Lumein Deinsity C asps Sfaflt Sllaiff be lieiveis then thea IL mein deinsity for existing propeirlies is eideiquaitely ccnitrcIleid undeir the tlasic regulations reigeirdingl the numbeu, brightness, anc clueintity of lights cin a prcipeuiyl. Including an addilicinail "pear acre" lumen derisity clap that only applieis to cioimmeirciail prcpeir4 would aidc an eidditicnail reidundaint layer cf reiglulaiticins. Additicniailly, stefll Has m way) cf einfbiroing suct a standard against exislingl prcpeirlies. flag le 2 c lM Ot tdoou Lighting ORD A 16-C TO 11/34016 Aftem discussicns with the NO Sky glrciuFl, staff believes that the beatler cpiicin icer a requiremeirii such as this is to include ii willhin the Sitel Plan submittal and apprcval requiremienis for new coinsiructicln. Theirei is an already Existing requirement that new ccimmearcial prcpcisals prcvide an cautdocm lighlinc plan. N4 Skly Grobp: The Dark Sky grcup originally proposed that this section be inclldeld in the lighting ordinaance icor all prclpeiriies. Hciweavein, this requeasl has been mcclified so that the requirement will only a pp ly tc i new cc nsi ructic n p rop asa Is a s describe d a boave . Staff and the Dark Sky group are cl thea and eirsta riding and aagre el that including the lumen density calci piovisioar in wilt ihei existing Elite Rlain slLbmitfaal reaquiremeni that neiw commercial canslructicin propasails pnovidei a phoiolmelric plan world bei morel easily einforced and alsca satisfy lhei Darts Sky cedifdcaalicin requirement. This amiendmeant has beaen included in the cuixent cmc inancei proposal. �. Rropasead Seiation 8.02.17 Muniaina Ilv Owned Uighling StaifJ: Ellaff unc eirstaand s chat municiplail lighting is Exempt f1rcim this cirdine ncei flan practical, as well as public salfellyl reasons. In fact, the aurreant proposed cirdinaincei specifically lists lichting cin government properly as beirg exempt. Staiff dcies not kncaw cit al reasonable way of eanfbicing this prcvisioar acainst the Town and would theirefam reccmmend lhalt this preiereiricei might be aadoapted as al Council pciliay rather than aadciptingl it as another unerit rceaable circ inaincei. Dlarkl Shyl Groin: Tte grbapoasaal is la include a seacticin that requireas municipal lighting io be installeid only when a specific neaead relaiteac tea a hazardous nightlimei situaliein is iceirilifieic by thea Tcawn and is deemed necessary eis as matter cif ensurinc public satiety. Thea group asseiris lhait this seciicin is a requirement for NO Sky ceiriificeiicn as it eiriceiuraces tciwns not to install mares lis htingl than necessary. It is tt ei cipinian of thea Dairk Sky g rc up that this propciseid secliein cues nct prevent the Tciwn ircim instaallinc aan11 lighting deeimeid necessary. 3. Prciipc sed ameind mieir i tai Seca icin 8.04.8 Peirrnair er t and Teamipcaraary ExEe mptians Staff: Siaff doles net beilievei theii this amendment coin be enfcirceid even if it is adapted. (Sleet iteim 21 above) Dlark Sky Graup: Ttei Dark Sky group proposes tca remcive the Town's eixemglicin while leaving lhei cilheir levels el gcivemnmeint eixemiptic ns in places. RisN Anailysls I1opliaars or ailteimaliveis with imiplicatioirs): Aceiption of thei proposed ordinance amendments will update the cumeini cutdcor lighting standards einc in line with cunent teichncilocieis. Ii will also bring the Town cicisertoi Dark Sky ceiriificatior. N of aidaaptinGl the aimiendments will maintain the cuixent arc iriancei stainde rds fair c utdcaaali lighting. Aiscal Impact Qinitiail and cinglciing coasts; budget staiius): NA Halle 3 oil Outdam Lighting ORD #16-03 TC IUM016 Budget Reference (page number): NA Funding Source: NA If Multiple Funds utilized, list here: NA Budgeted; If No, attach Budget Adjustment Form: NA Recommendation(s) by Board(s) or Commission(s): The Planning & Zoning Commission voted at their regular meeting of October 13, 2016 to forward a recommendation that the Town Council approve the proposed Outdoor Lighting zoning ordinance text amendments as presented by staff. Staff Recommendation(s): Staff recommends that the Town Council approve Ordinance #16-03, the proposed text amendments to the Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls as presented. List Attachment(s): Resolution #2016-22 Ordinance #16-03 11/3/2016 Outdoor Lighting Regulations Dark Sky Committee Information Packet Correspondence 10/13/2016 DRAFT P&Z Commission Meeting Minutes SUGGESTED MOTION (for Council use): Move to approve RESOLUTION 2016-22, declaring as a public record that certain document filed with the Town Clerk and entitled the "Town of Fountain Hills, Outdoor Lighting Zoning Code Amendments, 2016." Move to approve ORDINANCE #16-03, the proposed text amendments to the Fountain Hills Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls as presented. Prepared by: 4to6ert <itodgers Robert Rodgers, Development Services Director 10/25/2016 Approved: nn��, ©'o,Z Yi tly* -ror Grady MlWar Grady E. Miller, Town Manager 10/26/2016 Page 4 of4 11OWN OF FOUNTAIN HIDES 23ONING ORDINANCE AMENDMBN 1S REBATING TO OU 1DIOOR IJIGHInING NOVEMBER 3, 21016 2715993.'2119993.8 Amendments to Chapter 1 - Introduction The Town of Fountain Hills Zoning Ordinance, Chapter 1 (Introduction), Section 1.12 (Definitions) is hereby amended by adding the following definitions: Adaptive Lighting Controls: Devices such as motion sensors, timers and dimmers used in concert with outdoor light fixtures to vary the intensity or duration of operation of lighting. Correlated Color Temperature (CCT): The temperature, in Kelvin, of a black body whose spectrum approximates the spectral power distribution of a given light source. Correlated color temperature is a measure of the quality of "warmness" or "coolness" of a lamp. Fully Shielded: Providing internal and/or external shields and louvers so that light rays emitted by the fixture, either directly from the lamp or indirectly from the fixture, are projected only below a horizontal plane running through the lowest point on the fixture where light is emitted or reflected. Glare: The sensation produced by luminance within the visual field that is sufficiently greater than the luminance to which the eyes are adapted to cause annoyance, discomfort, or loss in visual performance and visibility. The magnitude of glare depends upon such factors as the size, position, and luminance of the source and the luminance of to which the eyes are adapted. Initial Lumens: The lumens rating of a lamp when new, not including any age-related depreciation of light output. Installed. Set up and fixed in position for use. Lumen: The SI (International System of Units) unit of light output. A lumen is approximately the amount of light that falls on a one—square—foot surface one foot away from a candle flame. Luminaire: A body that gives light. Nit: A unit of measurement of luminance, or the intensity of visible light, where one nit is equal to one candela per square meter. Nits are used to describe the brightness of display devices such as televisions, computers, and electronic message boards. Outdoor Light Fixture: An artificial illuminating fixture, lamp, or other device, located in the open air, not within an enclosed structure, that is permanent or portable, and is used for illumination or advertisement. Such devices shall include, but are not limited to, search, spot or floodlights for: 1. Buildings and structures 2. Recreation areas 3. Parking lot lighting 4. Landscape lighting 5. Billboards and other signage (advertising or other) 6. Street lighting. Partially shielded: As applied to outdoor lighting fixtures, means a fixture that is shielded so that the bottom edge of the shield is below the plane centerline of the light source (lamp), minimizing the emission of light above the horizontal plane. Amendments to Chapter 6 — Sign Regulations The Town of Fountain Hills Zoning Ordinance, Chapter 6 (Sign Regulations), Section 6.08 (Signs Allowed or Required), Subsection CC (Electronic Message Center), is hereby amended as follows: Section 6.08 Signs Allowed or Required CC. Electronic Message Center: Signs with intermittent, scrolling or flashing illumination, including electronic message center signs, are permitted in Commercial and Industrial zoning districts only, provided, however, that churches and schools may display such signs in residential districts. All electronic message center signs are subject to the following: 21. There shall be no moving or flashing green or red features that could be mistaken as traffic control devices. 32. Intermittent Changes: a. Any changes to the face or copy of the sign must have a minimum of eight (8) second interval between changes. b. BETWEEN THE HOURS OF 10:00 p.m. — 6:00 A.M., except for time and temperature,: (1) THERE SHALL BE NO CHANGES TO THE FACE OR COPY OF THE SIGN; AND s (2) " "-�a.�.—, ^�-E,T , The background must be darker than the text. 3. LED SIGNS / ELECTRONIC MESSAGE DISPLAYS ARE SUBJECT TO ALL OF THE FOLLOWING: a. BETWEEN THE HOURS OF 10:00 P.M. AND 6:00 A.M.: (1) LED SIGNS SHALL NOT EXCEED THE MAXIMUM LUMINATION LEVEL OF 100 NITS; AND (2) SIGNS LOCATED ADJACENT TO RESIDENTIAL ZONING DISTRICTS SHALL BE TURNED OFF. b. SIGNS SHALL BE EQUIPPED WITH PHOTO CELL SENSORS THAT ARE FACTORY LOCKED TO: (1) ADJUST THE SIGN TO AN APPROPRIATE LIGHT LEVEL DURING DAYLIGHT HOURS; AND (2) DIM THE SIGN AT NIGHT TO THE REQUIRED NIT LEVEL AS STATED IN THIS SECTION. AN AFFIDAVIT FROM THE MANUFACTURER OR OTHER EVIDENCE OF COMPLIANCE SATISFACTORY TO THE TOWN, ATTESTING TO THE PHOTO CELL SENSOR EQUIPMENT LOCK AS REQUIRED ABOVE SHALL BE SUBMITTED WITH THE SIGN PERMIT APPLICATION. d. THE ELECTRONIC MESSAGE CENTER PORTION OF THE SIGN SHALL NOT HAVE A WHITE BACKGROUND AND SHALL BE TURNED OFF WHEN THE BUSINESS IS CLOSED. SIGNS SHALL INCLUDE TIMERS THAT AUTOMATICALLY TURN OFF THE DIGITAL DISPLAY. Amendments to Chapter 8 — Outdoor Lighting Control The Town of Fountain Hills Zoning Ordinance, Chapter 8 (Outdoor Lighting Control) is hereby amended as follows: Sections: 8.01 Administration. 8.032 General Requirements. 8.0403 Prohibitions. 8.034 Permanent and Temporary Exemptions. 8.065 Procedures for Compliance. Section 8.01 Administration A. Purpose: IT IS THE INTENT OF THIS CHAPTER TO REQUIRE LIGHTING PRACTICES AND SYSTEMS THAT MINIMIZE LIGHT POLLUTION, GLARE, AND LIGHT TRESPASS, AND CONSERVE ENERGY WHILE MAINTAINING ADEQUATE LIGHT FOR NIGHTTIME SAFETY, UTILITY, SECURITY AND PRODUCTIVITY. GOOD MODERN LIGHTING PRACTICES CAN ACHIEVE THESE GOALS AND AT THE SAME TIME PRESERVE THE SCENIC VIEW OF THE NIGHT SKY, MINIMIZE LIGHTING THAT WOULD HAVE A DETRIMENTAL EFFECT ON ASTRONOMICAL OBSERVATIONS, AND PREVENT LIGHTING THAT WOULD BE OFFENSIVE TO NEIGHBORING AND NEAR -BY PROPERTIES T"' s..,_t,._ : ,._,l,.d . fagtriet the _ tted age of autz..._ ...w:{:..:.d and Reff by PFOPeFties. B. Conformance with Applicable Code AND ZONING ORDINANCE Provisions: All outdoor artificial illuminating devices shall be installed in conformance with the provisions of this attieleCHAPTER, any other applicable provisions of the Zoning Ordinance of the Town of Fountain d any -building erdinmeesCODES of the Town of Fountain Hills, which may hereafter be enacted, as applicable. Where m---o-Asio«., a°..«-. ,.f.6.. Afizena state statutes of of the federal law, ef any companion efdinanee eamparatively «A:e4 with the FeEjuiFememsof this ehapte.. the m8Fe. festmetiveshall.. C. Approved Material and Methods of Installation: The provisions of this chapter are not intended to prevent the use of any material or method of installation not specifically prescribed by this chapter, provided any such alternate has been approved in writing by the Town of Fountain Hills Gemmunity Develepment Direete ZONING ADMINISTRATOR upon CONSULTATION WITH THE CHIEF BUILDING OFFICIAL AND a -finding that the proposed design, material or method: 1. Provides approximate equivalence to the applicable requirements of this chapter AND APPLICABLE BUILDING CODES; or 2. Is otherwise satisfactory and complies with the intent of this chapter. Fer purposes of this ehalnen, the fellewing s shall he. a the feue..._a definitions: Fossil Fuel Light; Light pFedneed difeetly ef indifectly by the eembustien ef nafand gas of ath �Ifihty type s-mors Fally Shielded; Means the fixan�e ghall hnshipdded se that ligk+ Fays emitted by the eith .. d:.._. wetl. Athe lampmp .. ind:....etly Fem the 6..w.«.. ...d below a heFizental plan.. g tL..eugh the lowest pointn the fixn...e .. he..e light is e.«ated ladhzidual: Any private indiNci"al, tenant, lessee, I I a! entity ineluding, b aua Latalled.. tial installation of outdee.. light C..n..as a eF a fief the a ffe..t:... date of tins w Luminary. A bedy that gives li& PaFtially Shieldedi � 4sanq ths, fixtilre, gluill 1;e. shielded so that the bottom edge ef the shield is heFizeRnd plane. Outdoor Light Fixtures: Outdoor artife:al illuminating devices o.ddoe.. fiNn...ea lamps and pernianent of . eleda bee oa not ted to af ..eh' apet of lleedligMs Ce... i. Btnidifigs and stfeenires 2. ReePeatien-afea3 3. Parking !at lighfing 4. Landseape lighting $J. Dlllhaanda and atL eF signage /ad. e.a:e:..e Of ethe..\ 6 Section 8.0.32 General Requirements A. ShieldingandFiltration: 1. ALL OUTDOOR LIGHT FIXTURES WITH LIGHT OUTPUT GREATER THAN 2250 INITIAL LUMENS SHALL BE FULLY SHIELDED. FIXTURES WITH LIGHT OUTPUT RANGES FROM 1125 TO 2250 INITIAL LUMENS SHALL BE AT LEAST PARTIALLY SHIELDED. , 2113993. ZZLUM Fe"I..,a in e.....:.._ o 03 n 2. OUTDOOR ADVERTISING SIGNS CONSTRUCTED OF TRANSLUCENT MATERIALS AND WHOLLY ILLUMINATED FROM WITHIN DO NOT REQUIRE SHIELDING. It is recommended that existing mercury vapor fixtures either be replaced or be equipped with a filter whose transmission is less than ten (10) percent total emergent flux at wavelengths less than forty-four hundred (4400) angstroms. "Total emergent flux" is defined as that between three thousand (3000) and seven thousand (7000) -angstrom units. ;3 Low 1............._.. the __..feffea light ......_.... f _ minimizing ..a...«... B. RequiFements feir ShieldingCORRELATED COLOR TEMPERATURE (CCT): IN ORDER TO MINIMIZE THE DETRIMENTAL EFFECTS OF BLUE LIGHT, THE CORRELATED COLOR TEMPERATURE (CCT) OF ANY OUTDOOR LIGHTING FIXTURE SHALL NOT EXCEED 3000K. g4ie Fequifements f f shielding ho --ission- table* .. .. _ ... ..- --. . .... C. LIGHT TRESPASS: OUTDOOR LIGHTING FIXTURES SHALL BE SUFFICIENTLY SHIELDED AND AIMED SUCH THAT SPILLAGE OF LIGHT ONTO ADJACENT PROPERTIES IS MINIMIZED AND GLARE FROM THE LIGHT EMITTING AND/OR REFLECTING PARTS OF A LUMINAIRE IS NOT VISIBLE FROM ANY ADJACENT PROPERTY. D. HOLIDAY LIGHTING DECORATIONS: TEMPORARY OUTDOOR HOLIDAY LIGHTING DECORATIONS ARE PERMITTED FOR A REASONABLE PERIOD BEFORE A HOLIDAY AND ARE NOT SUBJECT TO THE REQUIREMENTS IN THIS SECTION 8.02. HOLIDAY LIGHTING IN RESIDENTIAL NEIGHBORHOODS SHALL BE MINIMIZED AFTER 11:00 P.M. SUNDAY THROUGH THURSDAY AND 11:00 P.M. FRIDAY AND SATURDAY AND SHALL BE REMOVED WITHIN TWO WEEKS AFTER THE HOLIDAY. Section 8.0403 Prohibitions A. Searchlights: The operation of searchlights r - a&ei4isiag puTeses is prohibited. B. Recreational Facilities: No outdoor recreational facility, public or private, shall be illuminated by aeneenfi3ffniag _,......, after 11:00 P.M. except to conclude a specific recreational, sporting or other activity that began prior to 10:00 P.M. RECREATIONAL FACILITY LIGHTING SHALL MAKE APPROPRIATE USE OF ADAPTIVE CONTROLS WHEN POSSIBLE. C. Outdoor Building or Landscaping Illumination: The unshielded outdoor illumination of any building, landscaping, signing- SIGNAGE or other purpose, is prohibited except with inemW ----` LIGHT fixtures deawing- less -th OF LESS THAN seen y, five (75) waHsl 125 LUMENS. _F with eempaet n..,._..,....w a.........,. a......:_g no _..-...x,._ eighteen o The combined outdoor unshielded lighting shall not exceed seventy five (75) watts with anile... ent C.. r.-......_ eighteen (1 o) ...acts when using ea ffi_aet fl ................. €rxtures1125 LUMENS within a 25 -foot radius. ^"--'o.,.�, 11:00 p.m. All illumination shall be so arranged as not to shine upon or reflect onto adjoining properties. D. Exterior Lighting: All lighting for off-street puking or loading areas or for the external illumination of buildings or signs shall be directed away from and shielded from any adjacent residential property and shall not detract from driver visibility on adjacent streets. E. Mercury Vapor: All mercury vapor fixtures me prohibited. F. Signage: All outdoor signage, with its lighting; shall conform to Section 8.032 and shall be of such size and color as not to interfere with traffic or limit visibility of adjoining property. llluminatietrLIGHTING on any sign not wholly illuminated from within mus SHALL conform to Section 8.032 and be directed towards the ground. REGULATIONS RELATING TO SIGNS WITH INTERMITTENT, SCROLLING OR FLASHING ILLUMINATION ARE IN CHAPTER 6, SECTION -' 6.08.CC.Signs �,-„all not h • e lights( ) G, Metal Halide, Lonapsi Metal halide display lighting shall Ret be used fef secuFA5' lighting Section 8.054 Permanent and Temporary Exemptions A. Nonconforming Fixtures: All outdoor light fixtures existing and fully installed prior to the effective date of this chapter are nonconforming indefinitely; provided, however, that no change in use, replacement, structural alteration, or restoration (after abandonment of outdoor light fixtures) shall be made unless it thereafter conforms to the provisions of this chapter. B. Fedepal-imd-gtoteGOVERNMENTAL Facilities: Those facilities and lands owned, operated or protected by the U.S. federal government, the State of Arizona, erMaricopa County, AND THE TOWN are exempted from all requirements of this chapter. Voluntary compliance with the intent of this chapter at those facilities is urged. C. Special Exemption: The Zoning Administrator may grant a special exemption from the requirements of Section 8.032 only upon a written finding that there are extreme geographic or geometric conditions warranting the exemption and that there are no conforming fixtures that would suffice. D. Utility Exemption: Utility companies entering into a duly approved contract with the Town of Fountain Hills in which they agree to comply with the provisions of these regulations, shall be exempt from applying for and obtaining a permit for the installation of outdoor light fixtures, E. Temporary Exemptions: Request: Any individual may submit a written request (on a form approved by the Zoning Administrator) for a temporary exemption to the requirements of this chapter, such exemption to be valid for thirty -(30) days, renewable at the discretion of the Zoning Administrator. 10 2. The request for temporary exemption(s) shall provide: a. Specific exemptions(s) requested. b. Type and use of outdoor light fixture for which exemption is sought. C. Duration of the requested exemption. d. Type of lamp(s) and calculated lumens. e. Total wattage of lamp(s). f. Proposed location. g. Previous temporary exemptions, if any. h. Physical size of outdoor light fixture and type of shielding to be provided. 3. In addition to the above data, the Zoning Administrator may request any additional information, which would assist his -IN evaluatienG e€ the request. 4. THE ZONING ADMINISTRATOR SHALL MAKE A DECISION ON THE APPLICATION AND SHALL NOTIFY THE APPLICANT OF THE DECISION WITHIN 10 DAYS OF RECEIPT OF A COMPLETE APPLICATION. THE EXEMPTION SHALL BE GRANTED UPON A DETERMINATION THAT THE TYPE AND USE OF THE OUTDOOR LIGHT FIXTURE IS THE FOR THE SHORTEST PERIOD OF TIME AND THE MINIMUM LUMENS NEEDED FOR THE INTENDED PURPOSE AND SHALL NOT BE DETRIMENTAL TO PERSONS RESIDING OR BUSINESSES OPERATING WITHIN A REASONABLE DISTANCE FROM THE USE LOCATION. SPECIAL EVENTS: EVENTS THAT ARE APPROVED THROUGH THE SPECIAL EVENT PERMIT, SPECIAL USE PERMIT, TEMPORARY USE PERMIT, OR ADMINISTRATIVE USE PERMIT PROCESSES MAY INCLUDE SPECIFIED EXEMPTIONS FROM THIS CHAPTER FOR THE DURATION OF THE EVENT, BUT ONLY IF THEY SATISFY THE CRITERIA SET FORTH ABOVE IN SUBSECTION (E)(4). Section 5.065 Procedures for Compliance A. Application: Any individual applying for a building PERMIT or use permit ander —thezening „_an_.,___ of the T^--^ ,.v Feunlain 1441- WHO intendSing to install outdoor 11 lighting fixtures shall, as a part of saidTHE PERMIT application, submit evidence that the proposed werk LIGHT FIXTURES will comply with this chapter. 2. All other individuals intending to install outdoor lighting fixtwes shall submit will eamply with this . Landscape lighting or decorative lighting consisting of light fixtures a fine.._d�een �..db,. under twenty five (26) wa#s 375 LUMENS we exempt from the requirements of this paeagW SECTION. B. Contents of Application: The application FOR BUILDING PERMIT OR USE PERMIT shall contain, but shall not necessarily be limited to the following, all or a portion of which may be part of or in addition to the information required elsewhere in the -THIS Zoning Ordinan . 1. Plans indicating the location on the premises, and the type of illuminating devices, fixtures, lamps, supports, etc. 2. Description of the illuminating devices, fixtures, lamps, supports, etc. This dessaptien SHALL INCLUDE AT LEAST THE INITIAL LUMEN OUTPUT, SHIELDING PLANNED, AND may inelud- but is net lim4ed to, manufacturer's catalog cuts, and drawings (including Sections where required). ADDITIONAL INFORMATION MAY BE REQUIRED, AS DEEMED NECESSARY BY THE ZONING ADMINISTRATOR. IF AN APPLICANT DESIRES TO USE AN OUTDOOR LIGHT FIXTURE THAT IS DIFFERENT FROM WHAT IS IN THE APPLICATION, THE APPLICANT SHALL SUBMIT THE REQUESTED CHANGE TO THE ZONING ADMINISTRATOR WITH ADEQUATE INFORMATION TO ALLOW A DETERMINATION IN COMPLIANCE WITH THIS CHAPTER. The above required plans and descriptions shall be sufficiently complete to enable the PREVIEWING DEPARTMENT to readily determine compliance with the requirements of this chapter. If such plans and descriptions do not readily enable this determination, the applicant shall submit evidence of compliance by certified test reports as performed by a recognized testing lab. Should the applicant d....:_e ts iise diff ........... eef light l:..w.....s eF lamps the appl:e....t 2313993: 2nlgm 12 000 01 2313993: 2nlgm 12 1111 u I R M 0 9 q M. I, 0 k d • 2. O PREVENT OVER -LIGHTING IN COMMERCIAL INDUSTRIAL LODGING AND MULTI -FAMILY ZONING DISTRICTS THE TOTAL AMOUNT OF LIGHTING ON A PROPERTY BOTH SHIELDED AND UNSHIELDED, SHALL NOT EXCEED: 100.000 LUMENS PER NET ACRE IN COMMERCIAL. INDUSTRIAL. AND LODGING ZONING DISTRICTS. 1. fjDMllfjl 11111.51MAli I il _;.MEAN;_ • 1. • M: 3. IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICTS AND FOR SINGLE-FAMILY RESIDENTIAL USES, OUTDOOR LIGHTING IS NOT SUBJECT TO A LUMEN DENSITY CAP. BUT IS SUBJECT TO SHIELDING REQUIREMENTS AS SET FORTH IN SECTION 8.02lA1 13 Document comparison by Workshare Compare on Tuesday, October 25, 2016 9:27:24 AM Input: Document 1 ID interwovenSite://GRPHX SQL/Phoenix/2715993/7 Description #2715993v7<Phoenix> - CODE - ZO Outdoor Lighting Deletions Amendments 11.3.16 v7 (AJM 10.5.16) Document 2 ID interwovenSite://GRPHX SQUPhoenix/2715993/8 Description 2715993v8<Phoenix> - CODE - ZO Outdoor Lighting Style change Amendments 11.3.16 v8 (P&Z 10.20.16) Rendering set Standard Statistics: Count Insertions 10 Deletions 2 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 1 12 RESOLUTION 2016-22 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED THE "TOWN OF FOUNTAIN HILLS ZONING ORDINANCE AMENDMENTS RELATING TO OUTDOOR LIGHTING, NOVEMBER 3, 2016." BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That certain document entitled the "Town of Fountain Hills Zoning Ordinance Amendments relating to Outdoor Lighting, November 3, 2016," of which one paper copy and one electronic copy maintained in compliance with ARiz. REV. STAT. § 44-7041 are on file in the office of the Town Clerk and open for public inspection during normal business hours, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, November 3, 2016. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor REVIEWED BY: Grady E. Miller, Town Manager 2773952.1 Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney TOWN OF FOUNTAIN HILLS ZONING ORDINANCE AMENDMENTS RELATING TO OUTDOOR LIGHTING NOVEMBER 3, 2016 2715993.8 Amendments to Chapter 1 - Introduction The Town of Fountain Hills Zoning Ordinance, Chapter 1 (Introduction), Section 1.12 (Definitions) is hereby amended by adding the following definitions: Adaptive Lighting Controls: Devices such as motion sensors, timers and dimmers used in concert with outdoor light fixtures to vary the intensity or duration of operation of lighting. Correlated Color Temperature (CCT): The temperature, in Kelvin, of a black body whose spectrum approximates the spectral power distribution of a given light source. Correlated color temperature is a measure of the quality of "warmness" or "coolness" of a lamp. Fully Shielded: Providing internal and/or external shields and louvers so that light rays emitted by the fixture, either directly from the lamp or indirectly from the fixture, are projected only below a horizontal plane running through the lowest point on the fixture where light is emitted or reflected. Glare: The sensation produced by luminance within the visual field that is sufficiently greater than the luminance to which the eyes are adapted to cause annoyance, discomfort, or loss in visual performance and visibility. The magnitude of glare depends upon such factors as the size, position, and luminance of the source and the luminance of to which the eyes are adapted. Initial Lumens: The lumens rating of a lamp when new, not including any age-related depreciation of light output. Installed. Set up and fixed in position for use. Lumen: The SI (International System of Units) unit of light output. A lumen is approximately the amount of light that falls on a one—square—foot surface one foot away from a candle flame. Luminaire: A body that gives light. Nit: A unit of measurement of luminance, or the intensity of visible light, where one nit is equal to one candela per square meter. Nits are used to describe the brightness of display devices such as televisions, computers, and electronic message boards. Outdoor Light Fixture: An artificial illuminating fixture, lamp, or other device, located in the open air, not within an enclosed structure, that is permanent or portable, and is used for illumination or advertisement. Such devices shall include, but are not limited to, search, spot or floodlights for: 1. Buildings and structures 2. Recreation areas 3. Parking lot lighting 4. Landscape lighting 5. Billboards and other signage (advertising or other) 2715993.8 2 6. Street lighting. Partially shielded: As applied to outdoor lighting fixtures, means a fixture that is shielded so that the bottom edge of the shield is below the plane centerline of the light source (lamp), minimizing the emission of light above the horizontal plane. 2715993.8 Amendments to Chapter 6 — Sign Regulations The Town of Fountain Hills Zoning Ordinance, Chapter 6 (Sign Regulations), Section 6.08 (Signs Allowed or Required), Subsection CC (Electronic Message Center), is hereby amended as follows: Section 6.08 Signs Allowed or Required CC. Electronic Message Center: Signs with intermittent, scrolling or flashing illumination, including electronic message center signs, are permitted in Commercial and Industrial zoning districts only; provided, however, that churches and schools may display such signs in residential districts. All electronic message center signs are subject to the following: 21. There shall be no moving or flashing green or red features that could be mistaken as traffic control devices. 32. Intermittent Changes: a. Any changes to the face or copy of the sign must have a minimum of eight (8) second interval between changes. b. BETWEEN THE HOURS OF 10:00 p.m. — 6:00 A.M., except for time and temperature...: (1) THERE SHALL BE NO CHANGES TO THE FACE OR COPY OF THE SIGN AND E (2) ., The background must be darker than the text. 3. LED SIGNS / ELECTRONIC MESSAGE DISPLAYS ARE SUBJECT TO ALL OF THE FOLLOWING: a. BETWEEN THE HOURS OF 10:00 P.M. AND 6:00 A.M.: (1) LED SIGNS SHALL NOT EXCEED THE MAXIMUM LUMINATION LEVEL OF 100 NITS; AND (2) SIGNS LOCATED ADJACENT TO RESIDENTIAL ZONING DISTRICTS SHALL BE TURNED OFF. 2715993.8 4 b. SIGNS SHALL BE EQUIPPED WITH PHOTO CELL SENSORS THAT ARE FACTORY LOCKED TO: (1) ADJUST THE SIGN TO AN APPROPRIATE LIGHT LEVEL DURING DAYLIGHT HOURS; AND (2) DIM THE SIGN AT NIGHT TO THE REQUIRED NIT LEVEL AS STATED IN THIS SECTION. c. AN AFFIDAVIT FROM THE MANUFACTURER OR OTHER EVIDENCE OF COMPLIANCE SATISFACTORY TO THE TOWN, ATTESTING TO THE PHOTO CELL SENSOR EQUIPMENT LOCK AS REQUIRED ABOVE SHALL BE SUBMITTED WITH THE SIGN PERMIT APPLICATION. d. THE ELECTRONIC MESSAGE CENTER PORTION OF THE SIGN SHALL NOT HAVE A WHITE BACKGROUND AND SHALL BE TURNED OFF WHEN THE BUSINESS IS CLOSED. e. SIGNS SHALL INCLUDE TIMERS THAT AUTOMATICALLY TURN OFF THE DIGITAL DISPLAY. 2715993.8 5 Amendments to Chapter 8 — Outdoor Lighting Control The Town of Fountain Hills Zoning Ordinance, Chapter 8 (Outdoor Lighting Control) is hereby amended as follows: Sections: 8.01 Administration. 8.032 General Requirements. 8.9403 Prohibitions. 8.054 Permanent and Temporary Exemptions. 8.065 Procedures for Compliance. Section 8.01 Administration A. Purpose: IT IS THE INTENT OF THIS CHAPTER TO REQUIRE LIGHTING PRACTICES AND SYSTEMS THAT MINIMIZE LIGHT POLLUTION, GLARE, AND LIGHT TRESPASS, AND CONSERVE ENERGY WHILE MAINTAINING ADEQUATE LIGHT FOR NIGHTTIME SAFETY, UTILITY, SECURITY AND PRODUCTIVITY. GOOD MODERN LIGHTING PRACTICES CAN ACHIEVE THESE GOALS AND AT THE SAME TIME PRESERVE THE SCENIC VIEW OF THE NIGHT SKY, MINIMIZE LIGHTING THAT WOULD HAVE A DETRIMENTAL EFFECT ON ASTRONOMICAL OBSERVATIONS, AND PREVENT LIGHTING THAT WOULD BE OFFENSIVE TO NEIGHBORING AND NEAR -BY PROPERTIES.pis-ehaeter- is intended to r-estriet the i3efmittede B. Conformance with Applicable Code AND ZONING ORDINANCE Provisions: All outdoor artificial illuminating devices shall be installed in conformance with the provisions of this affieleCHAPTER, any other applicable provisions of the Zoning Ordinance of the Town of Foun4ain Hills and a*5--building ^CODES of the Town of Fountain Hills, which may hereafter be enacted, as applicable. Where any P, f any of the Afizena state statutes or- of the federal law, or- any eompafflo emj. aratively eonfliets with the requirements of this ehapter, the more ostr-i tive shall g C. Approved Material and Methods of Installation: The provisions of this chapter are not intended to prevent the use of any material or method of installation not specifically prescribed by this chapter, provided any such alternate has been approved in writing by the Town of Fountain Hills ZONING ADMINISTRATOR upon CONSULTATION WITH THE CHIEF BUILDING OFFICIAL AND a -finding that the proposed design, material or method: 2715993.8 6 I. Provides approximate equivalence to the applicable requirements of this chapter AND APPLICABLE BUILDING CODES; or 2. Is otherwise satisfactory and complies with the intent of this chapter. sse+ssees;�s!s::�:��seer::r:n:�rsse�siers .i:e�s '1 11-1 1101IIIAMMMEA1111, !. ,,. i. Section 8.032 General Requirements A. Shielding and Filtratio : 1. ALL OUTDOOR LIGHT FIXTURES WITH LIGHT OUTPUT GREATER THAN 2250 INITIAL LUMENS SHALL BE FULLY SHIELDED. FIXTURES WITH LIGHT OUTPUT RANGES FROM 1125 TO 2250 INITIAL LUMENS SHALL BE AT LEAST PARTIALLY SHIELDED. All atit oor- light fixti ,-es 2715993.8 7 2. OUTDOOR ADVERTISING SIGNS CONSTRUCTED OF TRANSLUCENT MATERIALS AND WHOLLY ILLUMINATED FROM WITHIN DO NOT REQUIRE SHIELDING. It is recommended that existing mercury vapor fixtures either be replaced or be equipped with a filter whose transmission is less than ten (10) percent total emergent flux at wavelengths less than forty-four hundred (4400) angstroms. "Total emergent flux" is defined as that between three thousand (3000) and seven thousand (7000) -angstrom units. B. CORRELATED COLOR TEMPERATURE (CCT): IN ORDER TO MINIMIZE THE DETRIMENTAL EFFECTS OF BLUE LIGHT, THE CORRELATED COLOR TEMPERATURE (CCT) OF ANY OUTDOOR LIGHTING FIXTURE SHALL NOT EXCEED 3000K. The requirements for- shielding i& following table - MA IIII MM M-- _ • �. 2715993.8 8 9i5!!r� E!!!T_!S!ESfl7ti�fRaf C. LIGHT TRESPASS: OUTDOOR LIGHTING FIXTURES SHALL BE SUFFICIENTLY SHIELDED AND AIMED SUCH THAT SPILLAGE OF LIGHT ONTO ADJACENT PROPERTIES IS MINIMIZED AND GLARE FROM THE LIGHT EMITTING AND/OR REFLECTING PARTS OF A LUMINAIRE IS NOT VISIBLE FROM ANY ADJACENT PROPERTY. D. HOLIDAY LIGHTING DECORATIONS: TEMPORARY OUTDOOR HOLIDAY LIGHTING DECORATIONS ARE PERMITTED FOR A REASONABLE PERIOD BEFORE A HOLIDAY AND ARE NOT SUBJECT TO THE REQUIREMENTS IN THIS SECTION 8.02. HOLIDAY LIGHTING IN RESIDENTIAL NEIGHBORHOODS SHALL BE MINIMIZED AFTER 11:00 P.M. SUNDAY THROUGH THURSDAY AND 11:00 P.M. FRIDAY AND SATURDAY AND SHALL BE REMOVED WITHIN TWO WEEKS AFTER THE HOLIDAY. Section 8.8403 Prohibitions A. Searchlights: The operation of searchlights f r advei4isi g r,,fposes is prohibited. B. Recreational Facilities: No outdoor recreational facility, public or private, shall be illuminated by noneo f rmiag means after 11:00 P.M. except to conclude a specific recreational, sporting or other activity that began prior to 10:00 P.M. RECREATIONAL FACILITY LIGHTING SHALL MAKE APPROPRIATE USE OF ADAPTIVE CONTROLS WHEN POSSIBLE. C. Outdoor Building or Landscaping Illumination: The unshielded outdoor illumination of any building, landscaping, signing SIGNAGE or other purpose, is prohibited except with „awes„* LIGHT fixtures drawing loss th OF LESS THAN seventy five (75) watts1125 LUMENS.with Eempaet fluer-eseent fixtur-es drawing He more th eighteen (18) waRs. The combined outdoor unshielded lighting shall not exceed seventy- five (75) watts with ineandeseent fixtur-es or- eighteen (18) wa4ts when i -. ac4 nuer-eseentfixture-1125 LUMENS within a 25 -foot radius. . All illumination shall be so arranged as not to shine upon or reflect onto adjoining properties. D. Exterior Lighting: All lighting for off-street parking or loading areas or for the external illumination of buildings or signs shall be directed away from and shielded from any 2715993.8 9 adjacent residential property and shall not detract from driver visibility on adjacent streets. E. Mercury Vapor: All mercury vapor fixtures are prohibited. F. Signage: All outdoor signage, with its lighting; shall conform to Section 8.032 and shall be of such size and color as not to interfere with traffic or limit visibility of adjoining property. LIGHTING on any sign not wholly illuminated from within mus SHALL conform to Section 8.032 and be directed towards the ground. REGULATIONS RELATING TO SIGNS WITH INTERMITTENT, SCROLLING OR FLASHING ILLUMINATION ARE IN CHAPTER 6, SECTION 6.08.CC.Signs shall not have ifAefmittenl illumination or- f4ashing lights (see Seetion 6.03.C.6)-. Section 8.054 Permanent and Temporary Exemptions A. Nonconforming Fixtures: All outdoor light fixtures existing and fully installed prior to the effective date of this chapter are nonconforming indefinitely; provided, however, that no change in use, replacement, structural alteration, or restoration (after abandonment of outdoor light fixtures) shall be made unless it thereafter conforms to the provisions of this chapter. B. FedeF ,i and StateGOVERNMENTAL Facilities: Those facilities and lands owned, operated or protected by the U.S. federal government, the State of Arizona, erMaricopa County, AND THE TOWN are exempted from all requirements of this chapter. Voluntary compliance with the intent of this chapter at those facilities is urged. C. Special Exemption: The Zoning Administrator may grant a special exemption from the requirements of Section 8.032 only upon a written finding that there are extreme geographic or geometric conditions warranting the exemption and that there are no conforming fixtures that would suffice. D. Utility Exemption: Utility companies entering into a duly approved contract with the Town of Fountain Hills in which they agree to comply with the provisions of these regulations, shall be exempt from applying for and obtaining a permit for the installation of outdoor light fixtures, ineluding residential seeufky lighting. E. Temporary Exemptions: 1. Request: Any individual may submit a written request (on a form approved by the Zoning Administrator) for a temporary exemption to the requirements of this chapter, such exemption to be valid for this -(30) days, renewable at the discretion of the Zoning Administrator. 2715993.8 10 2. The request for temporary exemption(s) shall provide: a. Specific exemptions(s) requested. b. Type and use of outdoor light fixture for which exemption is sought. C. Duration of the requested exemption. d. Type of lamp(s) and calculated lumens. e. Total wattage of lamp(s). f. Proposed location. g. Previous temporary exemptions, if any. h. Physical size of outdoor light fixture and type of shielding to be provided. 3. In addition to the above data, the Zoning Administrator may request any additional information, which would assist his --IN evaluationG of the request. 4. THE ZONING ADMINISTRATOR SHALL MAKE A DECISION ON THE APPLICATION AND SHALL NOTIFY THE APPLICANT OF THE DECISION WITHIN 10 DAYS OF RECEIPT OF A COMPLETE APPLICATION. THE EXEMPTION SHALL BE GRANTED UPON A DETERMINATION THAT THE TYPE AND USE OF THE OUTDOOR LIGHT FIXTURE IS THE FOR THE SHORTEST PERIOD OF TIME AND THE MINIMUM LUMENS NEEDED FOR THE INTENDED PURPOSE AND SHALL NOT BE DETRIMENTAL TO PERSONS RESIDING OR BUSINESSES OPERATING WITHIN A REASONABLE DISTANCE FROM THE USE LOCATION. F. SPECIAL EVENTS: EVENTS THAT ARE APPROVED THROUGH THE SPECIAL EVENT PERMIT, SPECIAL USE PERMIT, TEMPORARY USE PERMIT, OR ADMINISTRATIVE USE PERMIT PROCESSES MAY INCLUDE SPECIFIED EXEMPTIONS FROM THIS CHAPTER FOR THE DURATION OF THE EVENT, BUT ONLY IF THEY SATISFY THE CRITERIA SET FORTH ABOVE IN SUBSECTION (E)(4). Section 8.065 Procedures for Compliance A. Application: 1. Any individual applying for a building PERMIT or use permit uncle,. the z ordina-nceof the Tew- of Fountain Hills -WHO intendSing to install outdoor 2715993.8 11 lighting fixtures shall, as a part of saidTHE PERMIT application, submit evidence that the proposed wed LIGHT FIXTURES will comply with this chapter. 2. All other individuals intending to install outdoor lighting fixt r -es shall submit �r appheation to the Zoning Administrator pr-eviding evidence that the propos _,,,,� mill-eem with this ehapten Landscape lighting or decorative lighting consisting of light fixtures of:,,, ...ween- �under 375 LUMENS are exempt from the requirements of this par-agr-ap SECTION. B. Contents of Application: The application FOR BUILDING PERMIT OR USE PERMIT shall contain, but shall not necessarily be limited to the following, all or a portion of which may be part of or in addition to the information required elsewhere in th-THIS Zoning Ordinance of the T,..t.n of Fountain Hills 1. Plans indicating the location on the premises, and the type of illuminating devices, fixtures, lamps, supports, etc. 2. Description of the illuminating devices, fixtures, lamps, supports, etc. his deser-ipt SHALL INCLUDE AT LEAST THE INITIAL LUMEN OUTPUT, SHIELDING PLANNED, AND may ineltide, butisnot limited to, manufacturer's catalog cuts, and drawings (including Sections where required). ADDITIONAL INFORMATION MAY BE REQUIRED, AS DEEMED NECESSARY BY THE ZONING ADMINISTRATOR. 3. IF AN APPLICANT DESIRES TO USE AN OUTDOOR LIGHT FIXTURE THAT IS DIFFERENT FROM WHAT IS IN THE APPLICATION, THE APPLICANT SHALL SUBMIT THE REQUESTED CHANGE TO THE ZONING ADMINISTRATOR WITH ADEQUATE INFORMATION TO ALLOW A DETERMINATION IN COMPLIANCE WITH THIS CHAPTER. The above required plans and descriptions shall be sufficiently complete to enable the Zoning ^ aministr- *erREVIEWING DEPARTMENT to readily determine compliance with the requirements of this chapter. If such plans and descriptions do not readily enable this determination, the applicant shall submit evidence of compliance by certified test reports as performed by a recognized testing lab. Should the appliean4 desire to tise different eu4door- light fixtur-es or- lamps the applie must submit all ehanges to the Zoning Administrator- with adequate information to a 1110 WIN 111 01 -011 PI 2715993.8 12 �. C. ADDITIONAL REQUIREMENTS FOR SITE PLAN APPLICATION: FOR ALL SITE PLANS FILED ON OR AFTER DECEMBER 5, 2016, THE FOLLOWING LUMEN DENSITY CAPS SHALL APPLY: 1. IN COMMERCIAL, INDUSTRIAL, LODGING, AND MULTI -FAMILY ZONING DISTRICTS, UNSHIELDED LIGHTING ON A PROPERTY SHALL NOT EXCEED: a. 50,000 LUMENS PER NET ACRE IN COMMERCIAL, INDUSTRIAL, AND LODGING ZONING DISTRICTS. b. 20,000 LUMENS PER NET ACRE IN MULTI -FAMILY ZONING DISTRICTS. 2. TO PREVENT OVER -LIGHTING IN COMMERCIAL, INDUSTRIAL, LODGING, AND MULTI -FAMILY ZONING DISTRICTS, THE TOTAL AMOUNT OF LIGHTING ON A PROPERTY, BOTH SHIELDED AND UNSHIELDED, SHALL NOT EXCEED: a. 100,000 LUMENS PER NET ACRE IN COMMERCIAL, INDUSTRIAL, AND LODGING ZONING DISTRICTS. b. 50,000 LUMENS PER NET ACRE IN MULTI -FAMILY ZONING DISTRICTS. 3. IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICTS AND FOR SINGLE-FAMILY RESIDENTIAL USES, OUTDOOR LIGHTING IS NOT SUBJECT TO A LUMEN DENSITY CAP, BUT IS SUBJECT TO SHIELDING REQUIREMENTS AS SET FORTH IN SECTION 8.02(A). 2715993.8 13 C. ADDITIONAL REQUIREMENTS FOR SITE PLAN APPLICATION: FOR ALL SITE PLANS FILED ON OR AFTER DECEMBER 5, 2016, THE FOLLOWING LUMEN DENSITY CAPS SHALL APPLY: 1. IN COMMERCIAL, INDUSTRIAL, LODGING, AND MULTI -FAMILY ZONING DISTRICTS, UNSHIELDED LIGHTING ON A PROPERTY SHALL NOT EXCEED: a. 50,000 LUMENS PER NET ACRE IN COMMERCIAL, INDUSTRIAL, AND LODGING ZONING DISTRICTS. b. 20,000 LUMENS PER NET ACRE IN MULTI -FAMILY ZONING DISTRICTS. 2. TO PREVENT OVER -LIGHTING IN COMMERCIAL, INDUSTRIAL, LODGING, AND MULTI -FAMILY ZONING DISTRICTS, THE TOTAL AMOUNT OF LIGHTING ON A PROPERTY, BOTH SHIELDED AND UNSHIELDED, SHALL NOT EXCEED: a. 100,000 LUMENS PER NET ACRE IN COMMERCIAL, INDUSTRIAL, AND LODGING ZONING DISTRICTS. b. 50,000 LUMENS PER NET ACRE IN MULTI -FAMILY ZONING DISTRICTS. 3. IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICTS AND FOR SINGLE-FAMILY RESIDENTIAL USES, OUTDOOR LIGHTING IS NOT SUBJECT TO A LUMEN DENSITY CAP, BUT IS SUBJECT TO SHIELDING REQUIREMENTS AS SET FORTH IN SECTION 8.02(A). 2715993.8 13 ORDINANCE 16-03 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS ZONING ORDINANCE, CHAPTERS 1 (INTRODUCTION) 6 (SIGN REGULATIONS) AND 8 (OUTDOOR LIGHTING CONTROL) BY ADOPTING BY REFERENCE THAT CERTAIN DOCUMENT KNOWN AS THE "TOWN OF FOUNTAIN HILLS ZONING ORDINANCE AMENDMENTS RELATING TO OUTDOOR LIGHTING, NOVEMBER 3, 2016." WHEREAS, the Mayor and the Council of the Town of Fountain Hills (the "Town Council") adopted Ordinance No. 93-22, which established the Zoning Ordinance for the Town of Fountain Hills (the "Zoning Ordinance"); and WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter 1 (Introduction), Chapter 6 (Sign Regulations) and Chapter 8 (Outdoor Lighting Control) relating to the outdoor lighting standards; and WHEREAS, in accordance with the Zoning Ordinance and pursuant to Aiuz. REV. STAT. § 9-462.04, as amended, public hearings regarding this ordinance were advertised in the September 28, 2016 and October 5, 2016, editions of the Fountain Hills Times; and WHEREAS, public hearings were held by the Fountain Hills Planning and Zoning Commission on October 13, 2016, and by the Town Council on November 3, 2016. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The document known as the Town of Fountain Hills Zoning Ordinance Amendments Relating to Outdoor Lighting, November 3, 2016 (the "Outdoor Lighting Amendments"), of which one paper copy and one electronic copy are on file in the office of the Town Clerk, which document was made a public record by Resolution 2016-22 of the Town of Fountain Hills, Arizona, is hereby referred to, adopted and made a part hereof as if fully set out in this Ordinance. SECTION 3. The text of the Zoning Ordinance is hereby amended for Chapter 1 (Introduction), Chapter 6 (Sign Regulations) and Chapter 8 (Outdoor Lighting Control) as set forth in the Outdoor Lighting Amendments. SECTION 4. Any person who fails to comply with any provision of the Outdoor Lighting Amendments shall be subject to civil and criminal penalties as set forth in Chapter 1 (Administration), Article 1-8 (Penalty) of the Fountain Hills Town Code, including civil penalties of not more than $250.00 base fine. Criminal penalties shall constitute a class one misdemeanor, punishable by a fine not to exceed $2,500.00 or by imprisonment for a period not 2638705.2 to exceed six months, or by both such fine and imprisonment. Each day that a violation continues shall be a separate offense. SECTION 5. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or any part of the Outdoor Lighting Amendment adopted herein by reference is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 6. 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 of this Ordinance. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, November 3, 2016. FOR THE TOWN OF FOUNTAIN HILLS: Linda M. Kavanagh, Mayor REVIEWED BY: Grady E. Miller, Town Manager 2638705.2 2 ATTESTED TO: Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney I Mayor Kavanagh, Council Members, Town Manager, For the November 3 Town Council meeting, the proposed lighting ordinance is supported by Town staff and our Dark Sky Committee. Only one provision remains to be resolved — Municipally Owned Lighting. This provision, appended below, does not prevent the Town from installing any lighting deemed necessary. We hope you will consider an amendment in support of this provision. Fountain Hills Dark Sky Committee Section 8.04 Permanent and Temporary Exemptions G. Municipally Owned Lighting: 1. All outdoor lighting owned by the Town of Fountain Hills shall adhere to the following requirements: a. When new publicly -owned buildings and other facilities are constructed, or new public rights-of-way are established, the installation of new outdoor lighting fixtures shall be allowed only when (1) a specific need related to a hazardous nighttime situation is identified by the Town and (2) lighting is deemed necessary as a matter of ensuring public safety. b. When existing, publicly owned buildings, other facilities and public rights-of-way are modified by physical alterations and/or by a change of use, the installation of new outdoor lighting fixtures beyond existing installations shall be allowed only when (1) a specific need related to a hazardous nighttime situation is identified by the Town and (2) lighting is deemed necessary as a matter of ensuring public safety. c. With the establishment of any new subdivision development where street rights-of-way will be dedicated to the Town, the Town shall not allow the installation of streetlights. However, in cases where it is determined that street lighting is deemed necessary in public rights-of-way for safety of pedestrians, bicyclists and/or motorists, the installation of street lighting shall be permitted. All lighting so installed shall be fully shielded, meet correlated color temperature requirements, make use of appropriate adaptive controls, and be subject to curfews as directed by the Town Council. Adoption of this provision should include removal of the words "and the Town" from 8.04 B. P/-Z;,A.p s.4 e- Tltc 7 own of ('ountain I (ill, /.omng Ordinance. Chapter 8 Q) itdogr ljubtine Cq1-yroi is ttcreb\ amended b\ deleting Section 8.0'_' Definition and b� renumbering and amending Sections 8.01 administr tigit. 8.fi Genc_ral Reut irements. 8.04 prohibitions. 8.05 Permanent a»<1_and 8.06 Procedures tor Uonirhan v. to read as fbilo\vs: Chapter 8 Ot'TDOOR LIGIIT1\G CONT Sections: 8.01 Administration. 8.02 General Requirements. 8.03 Prohibitions. 8.04 Permanent and Temporary F xemptions. 8.05 Procedures for Compliance. Section 8.01 Administration A. Purpose: it is the intent of this chapter to require lighting practices and s\stems that minimize light poliution. glare, and light trespass. and conser\e enerp altilc maintaining adequate light tier nighttime safety, utilit\. securit\ and producti\ it\. Ciood modern fighting practices can achieve these .:oils and at the same time preserNe the scenic vie\\ of file night sk\. minimize lighting that \\ould have a deu•intental el'fcct on astronomical obser\rations. and prevent lighting that %kotdd be offensive to neighboring and near-bN properties. B. Contbrmance with .applicable Code and Zoning Ordinance Provisions: All otndoor artilicial illuminating devices ;hall he installed in contbrntance \\ith the pro\isions ol'this chapter, am other applicahle pro\inions of the 7.onin_ Ordinance or codes of the fo\\n of Fountain l tills. which nta\ hereafter be enacted.:u applicable. C. Approv ed Material and :Methods of Installation: File pro\ isions of this chapter arc not intended to prevent the use of am material or method of installation not specifically prescribed h\ this chapter, provided any such alternate has been approvcd in writing by the Town of Fountain i )ills toning administrator upon consultation with the chicf'building ollicial and lindin;'l that the proposed design. material or method: Pro\ ides approximate ecµai\alence to the applicable requirements of this chapter and applicable building codes: or 2. Is other\%ise satid',actory and complies \\ith the intent ofthis chapter. Section 8.02 General Requirements A. Shielding: ,All outdoor- light fixtures with light output greater than 2250 initial lumens shall be firlk shielded. Fixtures \\ith light output ranger from 11_'S to 2250 initial lumens shall be at least partialis shielded. 2. Outdoor advertising signs constructed of transluccm materials and \\hull\ illuminated from \\ ithin do not require shicidin4g. 13. Correlated Color Temperature (CCT): in carder to minimize the detrimental effects of blue light, the correlated color temperature (C( f) ol'an\ outdoor lighting fixture shalt not exceed 30000. C. Light 'trespass: Outdoor lighting fixtures shall be sufficiently shielded and aimed such that spillage of light onto adjacent properties is minimized and glare from the light emitting and/or reflecting parts of a luminaire is not visible from any adjacent property. D. Lumen Density Caps: In commercial, industrial, lodging, and multi -family zoning districts, unshielded lighting on a property shall not exceed: A. 50,000 lumens per net acre in commercial, industrial, and lodging zoning districts. B. 20,000 lumens per net acre in multi -family zoning districts. 2. To prevent over -lighting in commercial, industrial, lodging, and multi -family zoning districts„ the total amount of lighting on a property, both shielded and unshielded, shall not exceed: A. 100,000 lumens per net acre in commercial, industrial, and lodging zoning districts. B. 50,000 lumens per net acre in multi -family zoning districts. 3. In single-family residential zoning districts and for single-family residential uses, outdoor lighting is not subject to a lumen density cap, but is subject to shielding requirements as set forth in section 8.02(A). E. Holiday Lighting Decorations: Temporary outdoor holiday lighting decorations are permitted for a reasonable period before a holiday and are not subject to the requirements in this section 8.03. Holiday lighting in residential neighborhoods shall be minimized after 11:00 p.m. Sunday through Thursday and 11:00 p.m. Friday and Saturday and shall be removed within two weeks after the holiday. Municipally (tined Lighting: I . All 0111(1001- Iii -1111111L, oMrned hN the limn ()C I uuntain I lills shall udherc to the 11111oc(ing rc(luirrmrnts: 4l`hert rrCc+ puhlicly-oc(ned building?, and tiller I'acililics are cow truc•tcd, trr ncc( public ri0w_ol-(cay .ire established. the installation ol'rac(c outdoor liglitinp fixture,. ,hall he allo(ccd onlc c\hell t I t a "liccific need related to a haiardou, niphttiuic ,ituation is i(lclltilic(i by the io(+n and (2) IwIllin_ i, decilled nccc.S;I?A a1, a m(itter of rn,urin� public sttlilc. t+. dk lwn c°si1,titwpubliti IN (m nkx1 hl.10011)�S, oth(r lacilitics <and public, riL!l is-oJ' yv ,iv ,lre lllodi#icd ht, ph'Nmcal aIle ralitms and -or ht a chan,Ie Of u,e, the iIII aIIa160n 14110N outdoor lightinw fixtures hckond (=xr ul w imtalkltions ~hail hr all(metl only \\lien ( I ) a specific nee(I rclalcd to a h,}rardous ni_ 11tinic siru:uion i, identified h\ the I'mil :111(1 (-') lightim_+ i, deemed ncccssar\ n, ,I nr,iucr of cn,tnrin(, pilMil,,nl(tr. c. ith tl+e c.,tah'tishmritt trfan) nice ,ttt7dic inion deiclol7meilt cchcre str(xt ri�hls-ul-cc,t� (( ill hr dolica;cd to the Ikmil, the hmil 3lttli n,+l alba+ the installaillon ui'<aret�tiiE�llts. ltoccc(er, in cases (%Ilvrc it i, determined Mat ;lIvcl tightirnu. i, deemed nrce,1,ary in public ,ileiV of pe(Ic1,trian,. hicy(tist, and�ot mi>toris,. the iust(tllatiun of sut•el li,_'IIIIIw shall he hemline(I AIf lightillu,o insialied shall he Iulh shielded. mcci correlated coi+)r lemperaitne iequiicniem,, make use +1l appropriate :1d:ipti\ c controls. incl he ,Uhlec[ to cturletX, as (IirccIed h" the beta ('ounci1. Section 8.03 Prohibitions A. Searchlights: The operation of searchlights is prohibited. B. Recreational Facilities: No outdoor recreational facility, public or private, shall be illuminated after 11:00 [ .M. except to conclude a specific recreational, sporting or other activity that began prior to 10:00 p.m. Recreational facility lighting shall make appropriate use of adaptive controls when possible. C Outdoor Ruilding or. Land eiipiii Illumination: f� I inshielded outdoor illumination Pari*i:+ 444-g-,-lana<t,cala+ prohibited except with light fixtures of less than 1,125 lumens. The combined outdoor unshielded Iiehting shall not exceed 1,125 lumens within a 25 -foot radius. a4t�a�t�r.�rr. All illumination shall be so arranged as not to shine upon or reflect onto adjoining properties. D. Exterior Lighting: All lighting for off-street parking or loading areas or for the external illumination of buildings or signs shall be directed away from and shielded from any adjacent residential property and shall not detract from driver visibility on adjacent streets. E. Mercury Vapor: All mercury vapor fixtures are prohibited. F. Signage: All outdoor signage lighting; shall conform to Section 8.02 and shall be of such size and color as not to interfere with traffic or limit visibility of adjoining property. lighting on any sign not wholly illuminated from within shall conform to Section 8.02 and be directed towards the ground. Regulations relating to signs with intermittent, scrolling or flashing illumination are in chapter 6, section 6.08.CC. Section 8.04 Permanent and Temporary Exemptions A. Nonconforming Fixtures: All outdoor light fixtures existing and fully installed prior to the effective date of this chapter are nonconforming indefinitely; provided, however, that no change in use, replacement, structural alteration, or restoration (after abandonment of outdoor light fixtures) shall be made unless it thereafter conforms to the provisions of this chapter. B. Governmental Facilities: Those facilities and lands wned, o rated or protected by the U.S. federal government, the State of Arizona, anti Maricopa County +�f-t� e exempted from all requirements of this chapter. Voluntary compliance with the intent of this c apter at tho facilities is urged. C. Special Exemption: The Zoning Administrator may grant a special exemption from the requirements of Section 8.02 only upon a written finding that there are extreme geographic or geometric conditions warranting the exemption and that there are no conforming fixtures that would suffice. D. Utility Exemption: Utility companies entering into a duly approved contract with the Town of Fountain Hills in which they agree to comply with the provisions of these regulations, shall be exempt from applying for and obtaining a permit for the installation of outdoor light fixtures. E. Temporary Exemptions: 1. Request: Any individual may submit a written request (on a form approved by the Zoning Administrator) for a temporary exemption to the requirements of this chapter, such exemption to be valid for 30 days, renewable at the discretion of the Zoning Administrator. 2. The request for temporary exemption(s) shall provide: a. Specific exemptions(s) requested. b. 'Type and use of outdoor light fixture for which exemption is sought. C. [duration of the requested exemption. d. 'Type of lamp(s) and calculated lumens. e. Total wattage of lamp(s). f. Proposed location. g. Previous temporary exemptions, if any. h. Physical size of outdoor light fixture and type of shielding to be provided. 3. In addition to the above data, the Toning Administrator may request any additional information, which would assist in evaluating the request. 4. The zoning administrator shall make a decision on the application and shall notify the applicant of the decision within 10 days of receipt of a complete application. The exemption shall be granted upon a determination that the type and use of the outdoor light fixture is the for the shortest period of time and the minimum lumens needed for the intended purpose and shall not be detrimental to persons residing or businesses operating within a reasonable distance from the use location. F. Special Events: Events that are approved through the special event permit, special use permit, temporary use permit, or administrative use permit processes may include specified exemptions from this chapter for the duration of tite event, but only if they satisfy the criteria set forth above in subsection (E)(4). Section 8.05 Procedures for Compliance A. Application: 1. Any individual applying for a building, permit or use permit who intends to install outdoor light fixtures shall, as a part of the permit application, submit evidence that the proposed light fixtures will comply with this chapter. 2. All other individuals intending to install outdoor landscape lighting or decorative lighting consisting of light fixtures under 375 lumens are exempt from the requirements of this section. B. Contents of Application: The application for building permit or use permit shall contain, but shall not necessarily be limited to the foilowing. all or a portion ofwhich may be part of or in addition to the: information required elsewhere in this Toeing Ordinance. 1. flans indicating the location on the premises, and tilt: type of illuminating devices, fixtures, lamps, supports, etc. 2. Description of the illuminating devices, fixtures, lamps, supports, etc. shall include at least the initial lumen output, shielding, planned, and manufacturer's catalog cuts, and drawings (including Sections where required). Additional information may be required, as deemed tiecessary by the zoning administrator. 3. if an applicant desires to use an outdoor light fixture that is different from what is in the application, the applicant shall submit the requested change to the zoning administrator with adequate information to allow a determination in compliance with this chapter. The above required plans and descriptions shall be sufficiently complete to enable the reviewing department to readilv determine compliance with the requirements of this chapter. 11' such plans and descriptions do not readily enable this determination, the applicant shall submit evidence of compliance by certified test reports as performed by a recognized testing, lab. REGARDING U111%YING ORDINANCE AGENDA ITEM FICIR NOV9M819R 3, 2016 TOWN COUNCIL MEETING Oct ober 25, 20116 Mayor Kavariagh aric Council Memibers erowri, DePorter, Harisieri, Leger, Magaairie, and Yatesi: We are very h appy tt at after all the timie and resaearat we irivesitec iri ne%ieiwirig lighting ordiriariciesi from arou nd the aou ntryl and obtaininig valuat le inrlut faomi the International Dark Sky Assicuiiatiori 1113A)„ w ei were able to preisienit to Tbw ri Staff a propwieid a rldated ligt ting orc inaracae that ac dressie:i neiw teicihriologie:i anc miairitains tt a intent of 0 a curnerit ordiriancia. Tlow ri Stafflsuppomi Ney cit ange:i in the lighting anc sign ordinancie inclu din@l: 1. Conversions fromi watu to IL mieimi to defirie lighting levels, 2. An L ppea limit of 3000K for th ei correlated cialor temiperature of OL tdoor lighting jas recommenc ed I: y the A mierican M edictal A9-iociiation for h ealth reasorisi], anc 3. New guidelines for electroriic message boards inciu dini@I a brightniew Iirrlit of 1100 nits. This miaximiu mi nit lei%al is caonflsiterat with w h at most aomimiu riitieisi are adopting. Ahio, above tt a leveil of 1Q0 nitsi was determiinec by a research study conducted by Arizona Statei Universiil y to be L nsiafe for drip erg. Town Staff alsio supports with caontirigencieas 0 a neimiaining two rlrovisiorisi required for L si to pursue Dank Sy Community deasillraaticiri. Tlh ose pro%inions are L u mien Density Caps and M uniciipally Owned L igt tirig. The Lu men Clerisiity Carl pro%isiion is basically iritendec to siel an uprler limit for the amiou nt of lighting rlermiittec iri commercial, inc usi rial, lod8ing,, anc multi -homily 2ionirig distnicl9. It does nol aprlly to resideritial distnicl s. Tlh a limil 9 are generous anc are appna) imiately 1 wine the lu mien c en9lty iristalled by Traci air Supply and M orriing5tan. -no @live you a specifics e) ample,, leii'si asisume you hac a one -acre propeirl y and you wanted to irisitall approrlriately-it lidded outc oon Hot t fiat u reg that emitted 111129 IL mien< -i (simiilar to 75 -watt 4 ielded iriaanc escent fllooc ligt u]. lit a lumen denisity caarl would allow you to install K MAI` osea fat a res. Glivean tt at th ea bu ilc ing it9eH would ocaaupy sipaae„ it" -i qu ite obvious how generous th a cap is. It shop Id again be emiphasiiaec th al thea IL miein c ensity cap will not harm tt e t usinesis community. Hlagstafflanc Sedana are already Dark Sky Commurilties with vibrant aric well -lit dawntowri areas inaludirig stririgead lightl9 aarosisi the sitneetsi and alon8 building topsi. The pnovisiion is orily intent ed to prevent Fountain hills fnomi I: eacaomiing Brosisly o% Grill, It us destroying th ei asset of ou r night sky that cit rreral ly wets usa apart fromi 1 h e nest oft the V alley. Becamie the Tlowri Staff jM r. Roc gem] has a concaern about Griforcemienll of situallions where owriers retraflit fi)llu resi with k righter lamip% he insiteac supporu havirig thea lu miEiri dearisity cap provision Incluc ed with in the Conaept Plan) Site plan siuk miittal and approval requirements fon riew aari!l1rucl Tori. Fortu mately, even though all other Dark Sky Communities have this provision in the E igk tirig Ordina rise, tF a ICIAI program dine cicir E E lie v E s tk ere is a nE a soria ble aF a riciei the IDA Dark Sky II 9 Ccimmittee woiulc accept ilk a approach prciiI by Mr. F odgens. Tk a second issw E than is !u pparted by M r. Reic EIEirs with a aontirigency is M t niciipally Owried LiFlk tirig. Thisi provision shows) than 1 he Town is sit ppartive of good Iiglh ting practicie!.i and u!.leis those praicl iceis where irisilalling lightirig nicie c ed for k a aaiic ous nightilimie situai ions a ric isi c eemed nece!.isa ry as a matter of ensu ring pt blici sal6ty. It is the opinion oiff ilh E Dark Sky Committee Ilk at iii' hi pnav isiioin does nat pre veint tF a Town firom installing any lighting c eem ed rieceima ryl and the prciviNon has been adcIF 1 ed k y all th a oilt er a a rN 9N y CC III m u riitiesi. Mr. Rodgersi suFlpcirts iii' hi pnav isioin ciaritiri@leint t pein review k y the flown Attorriey to ensure ac equallel IF EiNibility hi a vi ilat le toe lit a 1kiwn where irisitalling lighlling. Ski oulc the appropriate lighting ordiriance t e Flas!.iEu „ of r cieim m ittee will there wcirk hard to put FCII nilairi Hills on the miarl wiilh the prestigiou!.i Dark Sky Commuriity c esiiElriatiori. Vis achieveim evil woulc give us national atterition; it wot IC a ttracit fbmilies aria busirieissieis,; arid it would !.IL ppcirt the effort to ciamillrt Cl are observatory in oun community. AI nu m ber of people F av a already m oived tai Rot ritain H ills beciat see cif alt r dark skies. Sheat Id ilhei ciWierviailory come to flruiticin,, thea tie- in with a Clark Sky Com m t pity c e0gnation will in of r opinion draw ilh oiusia ric s 110 of r tom m t riity every year — Ilk ci!.ie w ith iniileiresit iri astronioim y, parents whit childnEin, sift devil grcit psi, conventieiri visilor!.i, etc. Then im aginei as bu!.iinessies develop alcirig the Avenue of the RCIt ntairisi than vi!.iitons to th ei cibsenvailory, are givein aot pains for a discourited suric ae cir E t rger or whaile veir. We E elie v ei whale h eiairtedly in iii' i!.i pole ril ial fit WHO amd th al the E einefits that woulc accrue fair CIL tweigh anN cioinae rrm Qt a stions are weloeim a and we hope wei have thea opportuniily to addnEisli any cioincermi that you m ighi have. 11hariN you for y aur 1 !me and all einticin. We also w arit ilo aciN rioiw ledge and thank M r. Grady arid Mr. RodBEirs for tk eir help as we worked i hrot gk tF hi pncici M. Dark Sky Committeiei Ck aiir: Nancy Bill Me m t em: Joe Bill,, Ted Blank, Craig Gim Ir el,, Paul M aBlligot,, Jaak ie M ileisi,, Jerry) Miles, Jay Schlum, Bab Wlhiori Information Packet COMMITTEE MEMBERS Nancy Bill, Chair Craig Gimbel Jerry Miles Ted Blank Paul McElligott Jay Schlum Joe Bill Jackie Miles Bob Wilson OUTLINE Part 1 Why do the Lighting and Sign Ordinances Need to be Updated Part 2 What are the Key Updates Part 3 Explanation of Correlated Color Temperature Part 4 Questions and Answers Part 5 Summary PART 1 Why do the Lighting and Sign Ordinances Need to be Updated Maintain Original Intent The proposed ordinances seek to maintain the general intent of the current lighting ordinance. That general intent is specified in the following introduction in the current lighting ordinance: "This chapter Is Intended to restrict the permitted use of outdoor artificial Illuminating devices emitting undesirable rays into the night sky which have a detrimental effect on astronomical observations, or which would otherwise be offensive to neighboring and nearby properties." Address New Technologies New lighting options, particularly LEDs, produce more light at lower wattage and lower cost than ever before. Using watts to define brightness, as is done in the current lighting ordinance, is no longer relevant. Rather, definitions using Initial Lumens must be adopted. Furthermore, LEDs can produce a bright white glare that is not only annoying to neighbors, but can also be a hazard to nighttime driving. People who have seen oncoming cars with bright white xenon headlights understand the kind of glare that bright white LEDs produce. A new technical term, Correlated Color Temperature (CCT), is needed to adequately control the type of light emitted by LEDs. A second emerging technology is electronic message boards. Each year, they are becoming more affordable and the current ordinances have no guidelines for brightness and inadequate guidelines relating to usage. Here again, a new technical term, Nits, is needed so that maximum brightness of a Flat panel display can be specified. Note: The definitions of Initial Lumens, Correlated Color Temperature (CCT) and Nits are given on the first page of the Outdoor Lighting Zoning Code Amendments. Close Loopholes While the current lighting ordinance has guidelines related to shielding and light output per fixture, there is no guideline for how many fixtures can be installed on a given property (thus no limit on the total light output in a given area). For that reason, a lumen density cap per acre is needed for commercial and multi -family residential areas. PART 2 What Are the Key Updates BRIGHTNESS DEFINED BY LUMENS, NOT WATTS The proposed lighting ordinance uses lumens rather than watts to define the light brightness limits. Lumens defines the brightness of light emitted while watts designate the amount of power used. Using lumens to define brightness is essential as new lighting technologies emerge. The lumens allowed are consistent with the lumens allowed under current policy. MAXIMUM CORRELATED COLOR TEMPERATURE (CCT) OF 3000K (KELVIN) IS SPECIFIED The current lighting ordinance already suggests this guideline in General Requirements (8.03 B 4) with the statement: "Warm white and natural lamps are preferred to minimize detrimental effects." The Intent is to minimize lighting that emits light focused on the blue end of the color spectrum. Cool white unfiltered LED lights are the worst offenders for obscuring vision of the night sky because of how blue light scatters in the atmosphere. Examples of appropriate lighting with a CCT below 3000K are incandescent lights, warm white fluorescents, warm white filtered LEDs, amber LEDs, and high and low pressure sodium lights. See the next section for further explanation of Correlated Color Temperature (CCT). LIGHT DENSITY The current lighting ordinance limits the brightness of individual fixtures, but does not limit the total light output in a given area. This loophole is closed by specifying maximum lumens per acre in commercial and multi -family residential areas. No guideline is proposed for single family residential. ELECTRONIC MESSAGE BOARDS A maximum brightness of 100 nits (a measure of brightness per unit area emitted from a flat screen) during nighttime hours is specified. This brightness level is a common standard used by communities around the country that have adopted brightness limits. This is supported by the following abstract from a study conducted by ASU: "Careful and sensible control of the nighttime brightness of digital LED signage Is critical. Unlike previous technologies, these signs are designed to produce brightness levels that are visible during the daytime; should too large a fraction of this brightness be used at night serious consequences for driver visibility and safety are possible. A review of the lighting professional literature Indicates that drivers should be subjected to brightness levels of no greater than 10 to 40 times the brightness level to which their eyes are adapted for the critical driving task. As roadway lighting and automobile headlights provide lighting levels of about one nit, this implies signage should appear no brighter than about 40 nits. Standard Industry practice with previous technologies for floodlit billboards averages less than 60 nits, and rarely exceeds 100 nits. It Is recommended that the new technologies should not exceed 100 nits." I Important elements of current lighting ordinance I that are NOT chanced: Since our current lighting ordinance already promotes dark skies, far fewer changes are needed compared to other communities that have gone through this process. Therefore: 1. No changes regarding the brightness of individual lights. 2. No change to the shielding requirements for light fixtures. 3. No changes required for existing fixtures that do not conform to the proposed ordinance. (Section 8.05.A - Nonconforming Fixtures - has not changed.) — (grandfather clause) PART 3 Explanation of Correlated Color Temperature CORRELATED COLOR TEMPERATURE (CCT) To address the available new lighting technologies in the proposed lighting ordinance, an upper limit to the color temperature of the lighting source is specified as 3000K (Kelvin) in Section 8.02 B of the proposed ordinance. Basically, this specifies that light sources should emit light primarily from the warmer end of the color spectrum. From the chart below, you can see that for example, any incandescent light meets the guideline, as does warm white Fluorescent and warm white (filtered) LED. However, cool white Fluorescent and particularly cool white (unfiltered) LED, do not. The primary reason for limiting the Correlated Color Temperature (CCT) of bulbs is that light that is mostly blue or bright white is the primary cause of light pollution and glare because those wavelengths generate much more light scattering in the atmosphere as illustrated on the next page. Also, the American Medical Association (AMA) has just published a policy statement that all municipalities should use 3000K or lower CCT for municipal lighting for health reasons. 9000k Northlighv0lue sky 8500k 8000k 75001k = Cool wlme LED lunnlwredl 7000k 6500k 6000k 5500k High neon 5000k 4500k 4000k 3500k 30001k 2500k. Natural while metal halide z:zClear metal halide Natural white LED Halogen Warm metal helida Warm white fluorescent Warm white LED Imm-dl $unnsa20001; f o-- High pressure sodium WARMER o --Law pressure sodium 1500 k. THE PROBLEM Light scattering caused by 51ue and bright white lights Even fully shielded fixtures that emit blue or bright white light cannot stop "Rayleigh Scattering' which Lncontrollably brightens the night sky. Blue Light \49ZW x High torr tempera- ture light (blue and bright white) escapes via scattering in the atmosphere resulting at brighter sky at night everywhere light Red long a f Aft (miasmal ai IiR+n noow;auenng) THE SOLUTION U Light sources emitting at color temperatures below 3000K, which means no blue or bright white lights. PART 4 Questions and Answers 1. Is it necessary for the Town to update the current ordinances now? Most certainly, yes. The emerging technologies are rapidly being adopted. The only way to protect the intent of our current ordinances Is to adopt updates that address the changes in lighting technology that would otherwise significantly increase glare and light trespass and are known to be detrimental to dark skies. 2. Will there be a possible negative effect on town development — businesses are already asking for more lighting along the Avenue of the Fountains to make it more of a "vibrant" Town Center? No. With the right kind of lighting, the Town Center can have a "vibrant" look without polluting the night sky. To witness how this can be done, one only has to visit Flagstaff or Sedona, both of which have already been designated as Dark Sky Communities. 3. Are there potential economic benefits to preserving our night sky? Yes. The recently formed Fountain Hills Astronomy Club already has over 400 members and has begun to offer talks, viewing nights, and other programs related to astronomy. This, along with Fountain Hills Library's telescope loaner program, has attracted people from beyond Fountain Hills and will only increase as the program matures. The goal of the Astronomy Club is to develop an observatory and develop astro-tourism as an additional reason for people to visit Fountain Hills. Second, people who prefer dark skies might choose to live in Fountain Hills rather than an overlit community. Third, there are potential unforeseen economic opportunities. Flagstaff, the world's first officially -designated Dark Sky Community now has the Dark Sky Brewing Company. Fourth, Fountain Hills restaurants might develop unique promotional ideas. The following is an excerpt from a June 30, 2016 article in USA Today: "Guided starlight excursions are an enchanting way to marvel at the Milky Way and galaxies beyond, and evening al fresco meals are often made more magical when accompanied by the glistening night sky. Featuring premier stargazing experiences, restaurants in prime constellation -viewing locations now offer celestial -inspired dinners, accompanied by on-site astronomers, high-powered telescopes — and even glow -in -the -dark desserts. From places like Tanque Verde Ranch in Tucson and Scottsdale's Four Seasons Resort at Troon North, resorts are pairing stellar dining experiences with packages that look to the sky for stellar guest experiences." 4. Will the prepcsed IigIHIing ordinance preweint adeigluate lighling? ]In no way is the Dark Sky Committee ac vocatling no on mac ecluatlei lighting. Rather, it is smarter lightling It at's being advocated„ i.e., lighting in the amber color range (CCT of 3CCCK on belew, and the right density per acne cifl lighting, Also, it sheLlc be emphasizeid that the new ordinance prcposes ne changes in the brightness oil inc ividual bulbs and shielding rec uine me nils. In add itlie n, the Town can ovenric a the anc inance any time it is c eieimed necessary) florsaflelly and otlheir reasons. S. Will 1hei new Iiiglhling ordinance affect the lightilrSI of the fountain air restrict holiday lighting for the Tlciwn or indiMiduals?i Nc . L igr tling cc ntlreilled by timers or L sed fb r special events,, such as tlr e lighiling of ilhe fbl. ntain, ball f elds, etc. is not affeictleid by the new ordinance. Also,, the new Ord inancie cc ntlains a claL sei exempting he lid ay lighting. 6. Is there a 91rowingl trend to restnicir the use of higlh tailor temperature (briight whites) lighting? Nees. There is a natlicinal movement tic either limit or elirninalle high CICTI lighting. Duet to harmful effects to human healllh, ilhe American Medical Associallie n (PIMA) ac optle d in :lune 2C 16 a grounc breaking re pc rt that aff nrris kriewn and SL specteid impacts ila human health and the envircinrneint caused by LEDs thall emitl eiXceissive arrieunts of blue light. Below is a sync psis oil tlr a report: "Thea AMA reporl plresur.its significant implieaticanis for thei cangoir.ig, wofkm idea transil ion ica IJEDsi as thea cautdocui ligt ling iecihrolog)l aflcahoiae. The reporl ceiaik findings from an increasing body of saaieni ifia evidence that implicarteas erplaswe to h1uei-rich while Fet a1 night is increases risk: forcamcer, diabeateas and carciovaasaulandisemie. "Nol only isi bluei-rich whit ei IJBI] street light ing f %ei timcis mare d isruplive to aur sleepl cycle than cacirivenliorial sitreel ligt ling, aciaorc ing to the report, but reeeirt lavage siurvcysa have docaumeanted that bnightei residential niightlime lighling is asscaaiated with recuced sleep, impairer daytime funcatianiing amd a grleateua incidence of obesity. "As as reisult afa poi einlial rW to plub'lic healuh from eamceass tluci Iigh expasure, the AMA reporl enaoura ges attend i on 1 a optimal design arid er igi ne ienirig features w t en aonvear t irig from exi sl it g lighting technologies to LED. Theise include requiring prorlem) sihielred outdoor lighting, considering adaptive contiols that can dim car eixtiniguish light al night, and limiting thea aorrelatec color lempeiratrire (CCTI) oflcautdoor light ing to =10(1(1 Kedvir (K) or Iowan" PART 5 Summary Fountain Hills stands apart from other communities for a number of reasons; its signature fountain, its geography and scenery, its small-town feel in the corner of a major metropolitan area, Its adjacency to parks, preserves, and national forest, and Its dark skies. Unfortunately, our dark sky asset is in danger. The current lighting and sign ordinances do not address emerging lighting technologies and have loopholes that can easily be exploited to the detriment of everyone. Bright white LED lights and no limits on lumen density per acre are just two examples that can create annoying glare, overlit areas, and a graying of our dark sky. Furthermore, the graying of our dark sky will not only adversely Impact our opportunity to grow an astro-tourism industry but also our library's telescope loaner program (one of a few such programs in the U.S) which is enjoyed by many of our town's families. For this reason, the Fountain Hills Dark Sky Committee was formed. The two goals established are: 1. Obtain Town Council support for updating the current lighting and sign ordinances 2. Have Fountain Hills become designated as a Dark Sky Community Goal 2 can only be considered if Goal 1 is achieved; hence updating the ordinances Is the initial focus. If that effort is successful, the committee will then, and only then, seek approval from the Town Council to pursue Dark Sky Community designation by the International Dark Sky Association to give Fountain Hills this prestigious certification. Therefore, we, the Fountain Hills Dark Sky Committee, respectfully request your support and recommendation that the lighting and sign ordinances be updated. IF �� Supporting Letters We have become aware that, through relatively minor amendments to Chapter 8 of our Town Zoning Code pertaining to outdoor lighting control, the Town of Fountain Hills may qualify as a "Dark Skies" community pursuant to the International Dark -Sky Association, headquartered in Tucson, which is dedicated to reducing outdoor light pollution. Such a designation would provide one more step in our objective to make our community a desirable location for new residents and new businesses. If we receive such a designation we would become the only Dark Sky Community in Maricopa County. We would join the Arizona towns/cities of Sedona and Flagstaff who have sought and obtained such a designation. The changes, substantially all technical reworkings of our current outdoor lighting ordinance, are designed to reflect modifications in the types of lighting permitted in yards and on the outside of homes or other buildings in our community. New light bulb technology and types of lighting are providing new standards in lighting. For the most part, it would have no retroactive Impact on existing homes or developments. We understand that the Historical Society and its L. Alan Cruikshank River of Time Museum are contemplating the future construction of a public observatory in Fountain Hills. The Dark Skies designation would be virtually Indispensable for such a project. JJ§Upporting Letter from Ted Blank Co -Founder Fountain Hills AstronomClub As a result of the foresight of previous administrations and the support of the people of Fountain Hills, our town is blessed with some of the darkest skies of any community this close to a major metropolitan area. Our dark skies are a resource that we may pass down to our children and to future residents of Fountain Hills, but only If we are vigilant about maintaining them, since once gone they cannot be recovered. Our dark skies provide another reason to distinguish Fountain Hills as a destination town. New technologies like LED lighting are changing the game. Their attractive economics are well publicized, but their deleterious effects on the night sky are not as well known. LEDs are rich In light at the blue end of the spectrum, and it Is well-established science that blue light is much more strongly scattered by the atmosphere than other colors. This results In "discomfort glare" (which affects drivers', and especially older drivers', ability to see the road) and sky -glow (which pollutes and hides the night sky.) Currently, the Fountain Hills sky Is relatively unpolluted by light in the blue portion of the spectrum, but dumping large amounts of blue light Into the atmosphere would Increase sky glow and reduce the effectiveness of astronomical observatories. (As is well known, both Flagstaff and Tucson have taken extraordinary measures to control light pollution.) Warmer lighting or "reduced -blue" LEDs are one key to minimizing the effects of this new technology on our community. Another is limiting the total amount of light permitted per acre, and a third is controlling "light trespass" of unwanted light onto neighboring properties. Together, these three can control and guide development in a way that protects our night skies from being overwhelmed by man-made lighting. An example of good and bad lighting and Downtown Flagstaff lighting — the world's first designated Dark Sky Community. Recessed lighting done badly --- --- and done well. WE GOOD FLAGSTAFF NIGHT SCENE Sufficient lighting for street performers and for people to mill about K s sj r- „� is r FLAGSTAFF NIGHT SCENE Outdoor dining and lighting down the street from businesses Juu; s _ 2 • 6 ilb� to f �- � !r FLAGSTAFF NIGHT SCENE Lighting edging the top of a building to create an effect Jai 410 - 10 T �CL.J 410 FLAGSTAFF NIGHT SCENE Another street scene showing a vibrant vibe but with soft lighting rE I Scene showing strings of lights and lighting in trees FLAGSTAFF NIGHT SCENE .•.Y FLAGSTAFF NIGHT SCENE Great idea: DARK SKY BREWING r } y� If i� love To rey�, for the city tlta{ 1 to drink,.A.' BARK SKY BREWIN TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE PLANNING & ZONING COMMISSION October 13, 2016 Vice -Chairman Mikolajczyk opened the meeting at 6:30 p.m. ROLL CALL: The following Commissioners were present: Chairman Michael Archambault, Vice -Chairman Eugene Mikolajczyk. Commissioners: Amberleigh Dabrowski, Susan Dempster, Erik Hansen, and Howie Jones. Also in attendance were Bob Rodgers, Development Services Director and Paula Woodward, Executive Assistant and Recorder of the minutes. Commissioner Roger Owners was absent. Chairman Michael Archambault requested participation in the Pledge of Allegiance and a moment of silent reflection. CALL TO THE PUBLIC No one wished to speak. Chairman Archambault turned the meeting over to Bob Rodgers. AGENDA ITEM #1 ELECTION OF A CHAIRMAN AND VICE-CHAIRMAN FOR A ONE- YEAR TERM BEGINNING OCTOBER 13, 2016 THROUGH SEPTMBER 30, 2017. Mr. Rodgers asked for Chairman Nominations. Commissioner Jones NOMINATED Mike Archambault for the Planning and Zoning Commission Chairman. Vice -Chairman Mikolajczyk SECONDED and a voice vote was taken. Mike Archambault was UNANIMOUSLY approved and Mike Archambault was reappointed to the position of Chairman. Chairman Archambault's term began October 13, 2016 and expires on September 30, 2017. Chairman Archambault asked for Vice -Chairman nominations. Commissioner Jones NOMINATED Gene Mikolajczyk for the Planning and Zoning Commission Vice - Chairman. Commissioner Dempster SECONDED and a voice vote was taken. Gene Mikolajczyk was UNANIMOUSLY approved and Gene Mikolajczyk was appointed to the position of Vice -Chairman. Vice -Chairman Mikolajczyk's term began October 13, 2016 and expires on September 30, 2017. AGENDA ITEM #2 - CONSIDERATION OF APPROVING THE PLANNING AND ZONING COMMISSION MEETING MINUTES DATED SEPTEMBER 8, 2016. Vice -Chairman Mikolajczyk MOVED to APPROVE the meeting minutes dated Thursday, September 8, 2016 as written. Commissioner Jones SECONDED and the MOTION CARRIED UNANIMOUSLY. AGENDA ITEM #3 - PUBLIC HEARING REGARDING ORDINANCE #16-11, TEXT AMENDMENTS TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTIONS 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05, 13.06, 17.06.B.1.A, 18.11.11, 18.14, 19.02.A, 19.07.A, 23.04.11, 23.05.A, 23.06.C, AND 23.07, RELATING TO ADMINISTRATIVE SITE PLAN APPROVAL. CASE #Z2016-07 Commissioner Jones opened the Public Hearing at 6:33 p.m. Pagel of 8 Bob Rodgers addressed the Commission and explained Ordinance#16-11 is a series of amendments to sixteen separate sections from seven different chapters of the Zoning Ordinance. All the amended sections relate to new commercial, industrial, multi -family and/or mixed use project proposals. Mr. Rodgers said this ordinance will re -organize, consolidate and or eliminate sections related to the Application Submittal and Approval requirements for Concept Plans, Site Plans, Special use Permits, PUD's PAD's and Re -Zonings. Each of these Sections have similar submittal requirements, but each is also slightly different from the others. Ordinance #16-11 consolidates these into ONE list of submittal requirements, and puts it in ONE location in the ordinance. Applicants will no longer have to look through multiple ordinance sections in order to figure out what they have to submit when they want to propose a new project. Mr. Rodgers highlighted an outline of changes: Chapter 2 — Procedures will be amended by eliminating the Concept Plan section, the Plan Review Regulations section and the PUD section and replacing them with the new Site Plan Review Regulations section. This is the "meat" of the proposed ordinance amendments. This new section outlines the submittal requirements and also the requirements for administrative review and approval. And it fixes a number of minor housekeeping items such as updating the department's name, fixing typos, etc. Chapter 12 — Commercial Districts is being amended to refer the relevant applications to the new Chapter 2 rules for Site Plan Review. Chapter 13 - Industrial Districts is being amended by eliminating two sections that are no longer relevant. (13.05 allows districts to be created — 13.06 requires A Plan of Development) Chapter 17 — Wireless Towers & Antennas is amended with minor changes that reference Site Plans rather than Plans of Development. Chapter 18 — The TCCD District is amended to change the references from Concept Plan approval to Site Plan approval. Chapter 19 - Architectural Review is also amended to change the references from Concept Plan approval to Site Plan approval. Chapter 23 - PAD's is also amended to change the references from Concept Plan, and Development Plan to Site Plan approval. The submittal requirement section is being eliminated and applicants are pointed to the new consolidated Site Plan submittal requirements back in Chapter 2. The Site Plan Review and Approval procedures are also being amended and consolidated: Ordinance # 16-11 amends the process of approval of these proposals so that "IF" the submittal meets all the requirements of the ordinance, and no Special Use Permits, Variances, Re -zonings or Waivers are necessary, there will be no need to go through the public hearing process for Concept Plans that's currently in place. Staff will now be authorized to approve the Site Plan proposal administratively and the applicant may move straight to applying for building permits. If a SUP, Variance, Re- zoning or Waiver is requested as part of the application then the public hearing process with Planning & Zoning Commission and Council that's currently in effect for those types of applications will still be necessary for approval. Also note that should any applicant be denied administrative approval of their Site Plan, or even if they disagree with one or more stipulations of their approval, there will not be a two-step appeal process included that allows the first appeal to go to P & Z, and if they're not satisfied there, they can appeal Planning & Zoning Commission's decision to Council for a final answer. In Conclusion, Mr. Rodgers said Ordinance #16-11, Administrative Site Plan approval, will consolidate multiple ordinance sections and streamline the Site Plan review and approval process. It will allow for administrative staff approval when all ordinance provisions are being met. It will not change the public Page 2 of 8 hearing process for applications requiring Special Use Permits, Variances, Re -zoning, or Waivers. It creates a two-part appeal process should an applicant be dissatisfied with a denial or the stipulations of an approval. It also performs a much-needed clean up of a number of ordinance sections. Making at least those portions of the ordinance a bit more easily understood. Mr. Rodgers stated that staff recommends that the Planning & Zoning Commission forward a recommendation to Town Council to approve Ordinance #16-11 as presented. Commissioner Jones closed the Public Hearing at 6:37 p.m. AGENDA ITEM #4 - CONSIDERATION OF ORDINANCE #16-11, TEXT AMENDMENTS TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTIONS 2.02.C.1, 2.04, 2.05, 2.06, 12.02.D.7, 13.05 13.06 17.06.B.1.A 18.11.11 18.14 19.02.A 19.07.A 23.04.B 23.05.A 23.06.0 AND 23.07 RELATING TO ADMINISTRATIVE SITE PLAN APPROVAL. CASE #Z2016-07 Commissioner Hansen asked why is "Planning & Zoning" shown omitted from page two? Mr. Rodgers said it would go to the department first not the Commission. In response to Chairman Archambault, Mr. Rodgers explained the PAD is a hard zone, that was created by rezoning and the PUD takes the underlying zoning and allow for minor changes, i.e., set backs, etc. Commissioner Dabrowski asked doesn't the public lose the right to be heard if the public -hearing process is eliminated. Mr. Rodgers said if the applicant is meeting the ordinances the public really does not have input. This is not changing the process for items that require public hearings. Vice -Chairman Mikolajczyk MOVED to forward a recommendation to the Town Council to approve Ordinance #16-11, a series of text amendments to the Fountain Hills Zoning Ordinance that will allow the consolidation and reorganization of multiple ordinance sections and to authorize the administrative review and approval of commercial, industrial, mixed-use and multi -family site plans as presented. Commissioner Dabrowski SECONDED and the MOTION CARRIED UNANIMOUSLY 6/0. AGENDA ITEM #5 - PUBLIC HEARING OF ORDINANCE #16-03, A TEXT AMENDMENT TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTION 1.12, SECTION 6.08.CC, AND CHAPTER 8, RELATING TO OUTDOOR LIGHTING CONTROLS. CASE #Z2016-01 Chairman Archambault opened the Public Hearings at 6:43 p.m. Mr. Rodgers stated this was originally proposed by staff in order to update the town's outdoor lighting ordinance (Chapter 8 of the Zoning Ordinance) to bring it up to today's standards. Ordinance #16-03 quickly ballooned into a full re -write of Chapter 8 along with amendments to Chapter 1( Definitions) and Chapter 6 (Signs) as well. Mr. Rodgers said in order to take into account the CFL and LED light equivalents to the Standard incandescent bulbs that are called out in the current ordinance we needed to revise the whole ordinance and change the methodology of testing, and of the enforcement of outdoor lighting in a uniform manner regardless of the type of light fixtures being looked at. Staff received a lot of information and support from the Dark Sky Committee during the process. The committee has been very influential regarding some sections of the revised ordinance you have before you tonight. Page 3 of 8 Mr. Rodgers reviewed some highlights: References to watts were changed to their equivalents in "lumens". Definitions have been updated. Shielding requirements have been modified. The correlated color temperature o flights has been set at a maximum of 3,000 kelvin Prohibits light trespass onto adjoining properties Modifies the sign code as it relates to electronic and LED illuminated signage Provides for some exemptions for municipal uses, emergencies, holiday lighting, and Special Events The ordinance proposal you have before you provides all these things and this is the proposal that staff recommends. However the Dark Sky committee has requested that two provisions be reinserted and the committee's proposal has been included in your packets. The two provisions are: 1. Dark Sky Committee: The non-residential lumen density cap which limits the amount of lumens per net acre. Staff: Staff has not included this in the ordinance proposal for four reasons: 1. Staff is concerned that such a cap only impacts the business community, especially new businesses in the downtown area and larger commercial plazas. Staff does not believe that this is consistent with the stated goals of the Downtown Area Specific Plan Swaback Plan) as adopted into the General Plan by a majority vote of the town residents. 2. Staff believes that such a cap is redundant and unnecessary given that limits on individual lighting fixtures, their shielding, and their brightness, effectively accomplish the same results. Laying an additional level of regulation onto commercial properties is not necessary. 3. Staff can see no way of actually enforcing such a cap with any ongoing consistency once businesses are in operation. 4. Staff believes that any per -acre lumen density cap regulations should only be applied to new development proposals that are already required to provide photometric plans in their application submittals in order to demonstrate compliance with the Town's lighting ordinance. So, in effect this is already in place for new construction. Requiring any kind of on-going verification would be very problematic. However, if deemed to be a good idea, a provision like this can be added later after a more thorough evaluation. 2. Dark Sky Committee: town lighting should be required to comply with the requirements of the outdoor lighting ordinance. Staff. Current legal advice is that the Town facilities and activities are exempt from ordinances adopted by the town. Therefore, staff prefers not to officially adopt an ordinance provision that is known to be unenforceable. Mr. Rodgers concluded that Staff recommends that the Commission forward a recommendation to the Town Council to approve the Outdoor Lighting Ordinance (#16-03) as proposed by staff. Chairman Archambault asked if there was any one from the public who wished to speak. Joe Bill, a Fountain Hills resident and a member of the Dark Sky Committee, said there are two issues to be resolved with the proposed ordinance. They are a provision for lumen density caps and a provision for municipally owned lighting. These need to be resolved in order to pursue the goal of a dark sky designation for Fountain Hills. Mr. Bill stated there are loop holes in the ordinance. He explained in Page 4 of 8 detail why the loop holes should be corrected. Mr. Bill said if Fountain Hills was to receive the prestigious dark sky designation they would be nationally recognized. Mr. Bill thanked the Commission. Nancy Bill, a Fountain Hills resident and Chairman of the Dark Sky Committee addressed the commission stating the two goals of the committee are to update the current lighting ordinance and to help Fountain Hills obtain the Dark Sky designation. Since last July the Committee has focused on the ordinance updates since this is a prerequisite for applying for the Dark Sky Designation. Almost all the criteria set forth by the Dark Sky Association has been included in the updated ordinance and supported by Town staff. However two items need resolution. Ms. Bill focused and explained the need for inclusion for municipally owned lighting. Ms. Bill thanked the Commission. Chairman Archambault closed the public hearing at 6:55 p.m. Commissioner Hansen asked why the definitions are omitted. Mr. Rodgers replied, the definitions are removed from that chapter and are added to chapter one. Vice -Chairman Mikolajczyk asked for clarification on section 6.08 referring to electronic message signs. Mr. Rodgers said there is another section that requires all signs to be on site other than sign spinners. Commissioner Dabrowski asked about enforcement, if the previsions were added to the ordinance. Mr. Rodgers said it would be hard to tell if non compliant lights were used or changed out. If a complaint was received the code enforcement officer would investigate but it would be hard to enforce with his schedule. He would have to go out during the day to investigate. MCSO would not be asked to enforce. The Town reviews the photometric plan required by the Development Services Department for new builds. This would be enforced at plan review. Enforcement against the Town would not happen. Chairman Archambault asked if the provisions would be reviewed in the future and if Sedona & Flagstaff have this in their ordinances. Mr. Rodgers said he would like to review the density cap request further in order to determine how it would affect businesses. Mr. Rodgers confirmed Sedona and Flagstaff have these provisions. Chairman Archambault asked if the new assisted living facility, (The Hemmingway) complies with the new ordinance. Mr. Rodgers said that project already has an approved development agreement and has been pre approved. In response to Chairman Archambault Mr. Rodgers confirmed the Town is exempt from its own ordinance enforcement. Vice -Chairman Mikolajczyk stated that the lumens cap in the ordinance is less than what the Dark Sky Committee is requesting. Why couldn't the Dark Sky Committee's request be put in the ordinance? Mr. Rodgers said he is not convinced there is a need for a second layer of regulation. The purpose of revising ordinances is to clean them up and remove un -enforceable regulations and redundancies. Vice -Chairman Mikolajczyk stated he had a question but it may apply more to the Town Manager & Council Policy. What direction does the Town want to go regarding wanting a dark sky but also wanting a more vibrant downtown with brighter lights & entertainment? Flagstaff and Sedona use the cap when they do the initial review but did not confirm it was used after. Page 5 of 8 Mr. Rodgers said the downtown overlay was recently approved to allow for flexibility with noise created by entertainment and events. It can also allow for more or brighter lights in the future if desired. Commissioner Dempster asked are there any loopholes that have not been mentioned. Mr. Rodgers replied he could not think of any but they can always come up in the future. Commissioner Jones asked if the section on municipal lighting was adopted, would the Town incur any cost? Did the towns you consulted with mention anything regarding the state statue that excludes them from their own ordinances. Mr. Rodgers stated it would not cost the Town any money and he did not ask them about Sedona's or Flagstaff s exclusion from their own ordinances. Commissioner Hansen asked if the Town has any recognition in regards to the Town's lighting or lack of lighting? Mr. Rodgers replied he was unaware of any but Fountain Hills is darker than most communities. We call this a "dark sky" ordinance but it is not officially a dark sky community. Chairman Archambault asked how do you relate what is being done here with the strategic planning poll taken by residents. What would be the harm of adopting the lumens cap. Mr. Rodgers stated this is headed in the right direction. Most of the ordinance is dark sky compliant. There are a few items left to negotiate to include or leave out. This is a very tricky thing because some people like the dark sky and looking at the stars while some businesses may not want to dim lights. Mr. Rodgers asked why have a layer of regulation if it is not used. Mr. Rodgers said the Town either gets the certification or don't. There are not different levels or tiers. Chairman Archambault said he would not be opposed to creating an ad hoc committee to review this further in the future. Commissioner Dabrowski asked Mr. & Mrs. Bill if there are any monetary benefits by becoming a certified dark sky community. Mr. Bill said there are none. It is a prestigious designation and the town would receive national attention. This also ties in with the idea of having an observatory in town. Mr. Bill emphasized there is a major loop hole in the ordinance that does not discuss shielded or partially shielded lighting. No other community in Maricopa County is designated as dark sky. Tucson is working toward becoming a dark sky community. Commissioner Dabrowski asked if the observatory would be prohibited if the dark sky designation was delayed. Mr. Bill said it would not prohibit or delay establishing the observatory. Vice -Chairman Mikolajczyk asked about taking the word unshielded out of the ordinance. He suggested changing it to apply to all outdoor illumination. Mr. Rodgers questioned if changing it would work with parking lot lights. Commissioner Jones asked if the lumen density cap applies only to new construction. Page 6 of 8 Mr. Bill said it does apply to new construction but the problem is existing businesses that change out lighting would not have a lumens cap unless it's mentioned in the ordinance. Lighting that is already in place is grandfathered in. Commissioner Jones stated the observatory location seems counter intuitive to locate it near a vibrant downtown. Mr. Bill said the location is not definite. The idea is for families to visit the observatory and take advantage of the surrounding businesses and downtown such as restaurants, coffee shops and ice cream parlors. Vice -Chairman Mikolajczyk asked why not remove the word unshielded. Mr. Bill said it would be too restrictive and may cause a concern amongst businesses. AGENDA ITEM #6 - CONSIDERATION OF ORDINANCE #16-03, A TEXT AMENDMENT TO THE FOUNTAIN HILLS ZONING ORDINANCE, SECTION 1.12, SECTION 6.08.CC, AND CHAPTER 8, RELATING TO OUTDOOR LIGHTING CONTROLS. CASE #Z2016-01 Vice -Chairman Mikolajczyk MOVED to forward a recommendation to the Town Council to approve Ordinance #16-03, the proposed text amendments to the Fountain Hills Zoning Ordinance, Section 1.12, Section 6.08.CC, and Chapter 8, relating to Outdoor Lighting controls as presented and recommended by Staff. Chairman Archambault SECONDED and the MOTION CARRIED UNANIMOUSLY 6/0. Commissioner Hansen Aye Commissioner Dempster Aye Commissioner Jones Aye Commissioner Dabrowski Aye Vice-chairman Mikolajczyk Aye Chairman Archambault Aye AGENDA ITEM #7 - COMMISSION DISCUSSION/REQUEST FOR RESEARCH TO STAFF. Items listed below are related only to the propriety of (i) placing items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Commission. Chairman Archambault stated he would like to see an ad hoc Committee created to review the two sections of the lighting ordinance that were left out. Mr. Rodgers said the committee would be created provided the council does not add the two items. Chairman Archambault said the Committee would not be created till after the ordinance was on the Council agenda. AGENDA ITEM #8 - SUMMARY OF COMMISSION REQUESTS FROM SENIOR PLANNER. None AGENDA ITEM #8 - REPORT FROM SENIOR PLANNER AND ZONING ADMINISTRATOR PLANNING AND ZONING DIVISION OF DEVELOPMENT SERVICES. None Page 7 of 8 AGENDA ITEM #8 CHAIRMAN'S DISCUSSION AND EXPECTATIONS. The Chairman would like to have a discussion regarding dress code, motions and amendments, research, seating, possible rotation on handling agenda items for the benefit of commissioners experience and other items deemed important to the Commission. Chairman Archambault discussed in detail his expectations of Commissioners. He reviewed procedural protocol and encouraged the Commission to ask any questions. AGENDA ITEM #10 - ADJOURNMENT. Vice -Chairman Mikolajczyk MOVED to adjourn the meeting at 7:50 p.m. and Commissioner Jones SECONDED and the MOTION CARRIED UNANIMOUSLY. FOUNTAIN HILLS PLANNING & ZONING COMMISSION Chairman Mike Archambault ATTEST: Paula Woodward, Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Fountain Hills Planning and Zoning Commission held on the 13th day of October 2016, in the Town Council Chambers, 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268. I further certify that the meeting was duly called and that a quorum was present. Dated this 20th of October 2016 Paula Woodward, Executive Assistant Page 8 of 8