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HomeMy WebLinkAbout110915PREVISED: 9/12/11 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, SEPTEMBER 15, 2011 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 o r by telephone conference call; a quorum of the Town’s various Commissions or Boards 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 rec eived either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Jay T. Schlum Councilmember Dennis Brown Councilmember Tait D. Elkie Vice Mayor Dennis Contino Councilmember Cassie Hansen Councilmember Ginny Dickey Councilmember Henry Leger Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 2 of 4 EXECUTIVE SESSION AGENDA CALL TO ORDER – Mayor Jay T. Schlum 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to §38- 431.03(A)(4), discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically, related to a proposed amendment to the Final Settlement Agreement with MCO Properties; and related to Pure Medical Marijuana & Wellness Center II, Inc. v. Town of Fountain Hills). 2. ADJOURNMENT. REGULAR SESSION AGENDA CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay T. Schlum INVOCATION – Jim Ricketts, from North Chapel ROLL CALL – Mayor Jay T. Schlum MAYOR’S REPORT i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) PRESENTATION by Rey Valenzuela, Assistant Director of Elections with the Maricopa County, relating to an overview of jurisdictional “ALL MAIL” ELECTIONS AND HOW BALLOTS ARE PROCESSED. ii) The Mayor will read a PROCLAMATION declaring September 17, 2011, as "Constitution Commemoration Day." iii) The Mayor will read a PROCLAMATION declaring September 26, 2011, Family Day. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), 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 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from August 4, 9, and 18, 2011. 2. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Jing Lu, Owner/Agent of K & C Evergreen LLC DBA Ha Ha China located at 11849 N Saguaro Boulevard., Fountain Hills, AZ. This is for a series 12 license (Restaurant). Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 3 of 4 3. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Sarah Lynn Meredith, Owner/Agent of S & C Meredith, LLC DBA Alamo Saloon located at 11807 N Saguaro Blvd., Fountain Hills, AZ. This is for a series 06 license (Bar). 4. CONSIDERATION of approving the ACQUISITION OF CONTROL LIQUOR LICENSE APPLICATION submitted by H. J. Lewkowitz, Agent, for the Sun Tech Development, LLC DBA Club at Copperwynd, located at 13225 N. Eagle Ridge Drive, Fountain Hills, AZ. This is for a series 11 license (Hotel/Motel). 5. CONSIDERATION of SPECIAL EVENTS being coordinated by the Town of Fountain Hills Community Services Department: the MOVIE IN THE PARK (September 17, 2011); BALLET UNDER THE STARS (September 25, 2011); the HOMECOMING PARADE (October 5, 2011); and the HOMECOMING TAILGATE PARTY (October 7, 2010). Saguaro Boulevard will be closed from Avenue of the Fountain to Palisades Boulevard for the Movie in the Park and the Ballet Under the Stars events. Sections of Avenue of the Fountains and Paul Nordin Parkway will be closed for the Homecoming Parade. 6. CONSIDERATION of a SPECIAL EVENT APPLICATION for the Oktoberfest presented by the Town of Fountain Hills, Southwest German Society, Sons of AMVETS, and Fountain Hills Elks Lodge #2846 to be held in Fountain Park on September 30-October 1, 2011. 7. CONSIDERATION of a SPECIAL EVENT APPLICATION submitted by Race Place Events for the Tour de Scottsdale bicycle race scheduled for Sunday, October 2, 2011, from 8-10 a.m. with cyclists travelling through Fountain Hills southbound along Fountain Hills Boulevard and Saguaro Boulevard, and westbound along Shea Boulevard. 8. CONSIDERATION of ACCEPTING the Third Amendment to the Hiking License Agreement between the Town and MCO Properties for access to the McDowell Mountain Preserve for guided hikes. REGULAR AGENDA ITEMS 9. CONSIDERATION of APPOINTING three (3) applicants to the Planning and Zoning Commission, for a two year term beginning October 1, 2011 and ending September 31, 2013. 10. CONSIDERATION of APPOINTING one youth to fill the Youth Commissioner vacancy on the Strategic Planning Advisory Commission (SPAC) for a term expiring on June 30, 2013. 11. CONSIDERATION of accepting a BRONZE SCULPTURE entitled, Shima II, on loan while a fundraising campaign is conducted, and to place the item on public display within the Centennial Circle. 12. UPDATE by Jerry Butler, Chair of the Greening of the Downtown Committee, regarding the NEXT PLANNED PHASE of plantings in Fountain Park, the status of developing vacant downtown landscaped lots, and CONSIDERATION of a request to receive a REFUND of $420 for monies previously paid for a landscape plan review. 13. PRESENTATION by the Fountain Hills Chamber Of Commerce, WITH DISCUSSION AND POSSIBLE DIRECTION TO STAFF regarding the FY 2011/12 funding for TOURISM. 14. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to the annual $25 per unit commercial FIRE INSPECTION FEE as adopted in the FY10-11 fee schedule. Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 4 of 4 15. CONSIDERATION of a CONTRACT with Christmas Light Decorators, in the amount of $34,917.76, for DOWNTOWN HOLIDAY LIGHTS. 16. CONSIDERATION of an EXPENDITURE with Precision Electric Company, in the amount of $41,394.48, for the repair of a motor and pump Fountain Lake. 17. CONSIDERATION of an EXPENDITURE with Berge Ford under the Pima County Contract, in the amount of $37,950.95, for a chassis. 18. CONSIDERATION of an EXPENDITURE with Western Truck Equipment, in the amount of $14,837.36, for a utility body. 19. CONSIDERATION of an EXPENDITURE with Waterous Arizona, in the amount of $33,072.15, for a diesel powered Compressed Air Foam (CAF) pump assembly and tank. 20. CONSIDERATION of RESOLUTION 2011-33, declaring as a public record that certain document filed with the Town Clerk and entitled “The 2010-11 Amendments to the Tax Code of the Town of Fountain Hills”. 21. CONSIDERATION of ORDINANCE 11-12, adopting “The 2010-11 Amendments to the Tax Code of the Town of Fountain Hills” by reference; establishing an effective date; providing for severability and providing penalties for violations. 22. CONSIDERATION of RESOLUTION 2011-17, approving the transfer of investment funds, in the amount of $15M, from the Arizona State Treasurers Local Government Investment Pool (LGIP) to PFM Asset Management for the purpose of investing according to the Town’s adopted investment policy. 23. COUNCIL DISCUSSION/DIRECTION to the Interim Town Manager/Finance Director Julie Ghetti. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. NONE. 24. SUMMARY of Council requests and REPORT ON RECENT ACTIVITIES by the Interim Town Manager/Finance Director Julie Ghetti. 25. ADJOURNMENT. DATED this 8th day of September 2011. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. REVISED: 9/12/11 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, SEPTEMBER 15, 2011 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 Commissions or Boards 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 prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Jay T. Schlum Councilmember Dennis Brown Councilmember Tait D. Elkie Vice Mayor Dennis Contino Councilmember Cassie Hansen Councilmember Ginny Dickey Councilmember Henry Leger Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 2 of 4 EXECUTIVE SESSION AGENDA CALL TO ORDER – Mayor Jay T. Schlum 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to §38- 431.03(A)(4), discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically, related to a proposed amendment to the Final Settlement Agreement with MCO Properties; and related to Pure Medical Marijuana & Wellness Center II, Inc. v. Town of Fountain Hills). 2. ADJOURNMENT. REGULAR SESSION AGENDA CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay T. Schlum INVOCATION – Jim Ricketts, from North Chapel ROLL CALL – Mayor Jay T. Schlum MAYOR’S REPORT i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) PRESENTATION by Rey Valenzuela, Assistant Director of Elections with the Maricopa County, relating to an overview of jurisdictional “ALL MAIL” ELECTIONS AND HOW BALLOTS ARE PROCESSED. ii) The Mayor will read a PROCLAMATION declaring September 17, 2011, as "Constitution Commemoration Day." iii) The Mayor will read a PROCLAMATION declaring September 26, 2011, Family Day. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), 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 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from August 4, 9, and 18, 2011. 2. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Jing Lu, Owner/Agent of K & C Evergreen LLC DBA Ha Ha China located at 11849 N Saguaro Boulevard., Fountain Hills, AZ. This is for a series 12 license (Restaurant). Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 3 of 4 3. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Sarah Lynn Meredith, Owner/Agent of S & C Meredith, LLC DBA Alamo Saloon located at 11807 N Saguaro Blvd., Fountain Hills, AZ. This is for a series 06 license (Bar). 4. CONSIDERATION of approving the ACQUISITION OF CONTROL LIQUOR LICENSE APPLICATION submitted by H. J. Lewkowitz, Agent, for the Sun Tech Development, LLC DBA Club at Copperwynd, located at 13225 N. Eagle Ridge Drive, Fountain Hills, AZ. This is for a series 11 license (Hotel/Motel). 5. CONSIDERATION of SPECIAL EVENTS being coordinated by the Town of Fountain Hills Community Services Department: the MOVIE IN THE PARK (September 17, 2011); BALLET UNDER THE STARS (September 25, 2011); the HOMECOMING PARADE (October 5, 2011); and the HOMECOMING TAILGATE PARTY (October 7, 2010). Saguaro Boulevard will be closed from Avenue of the Fountain to Palisades Boulevard for the Movie in the Park and the Ballet Under the Stars events. Sections of Avenue of the Fountains and Paul Nordin Parkway will be closed for the Homecoming Parade. 6. CONSIDERATION of a SPECIAL EVENT APPLICATION for the Oktoberfest presented by the Town of Fountain Hills, Southwest German Society, Sons of AMVETS, and Fountain Hills Elks Lodge #2846 to be held in Fountain Park on September 30-October 1, 2011. 7. CONSIDERATION of a SPECIAL EVENT APPLICATION submitted by Race Place Events for the Tour de Scottsdale bicycle race scheduled for Sunday, October 2, 2011, from 8-10 a.m. with cyclists travelling through Fountain Hills southbound along Fountain Hills Boulevard and Saguaro Boulevard, and westbound along Shea Boulevard. 8. CONSIDERATION of ACCEPTING the Third Amendment to the Hiking License Agreement between the Town and MCO Properties for access to the McDowell Mountain Preserve for guided hikes. REGULAR AGENDA ITEMS 9. CONSIDERATION of APPOINTING three (3) applicants to the Planning and Zoning Commission, for a two year term beginning October 1, 2011 and ending September 31, 2013. 10. CONSIDERATION of APPOINTING one youth to fill the Youth Commissioner vacancy on the Strategic Planning Advisory Commission (SPAC) for a term expiring on June 30, 2013. 11. CONSIDERATION of accepting a BRONZE SCULPTURE entitled, Shima II, on loan while a fundraising campaign is conducted, and to place the item on public display within the Centennial Circle. 12. UPDATE by Jerry Butler, Chair of the Greening of the Downtown Committee, regarding the NEXT PLANNED PHASE of plantings in Fountain Park, the status of developing vacant downtown landscaped lots, and CONSIDERATION of a request to receive a REFUND of $420 for monies previously paid for a landscape plan review. 13. PRESENTATION by the Fountain Hills Chamber Of Commerce, WITH DISCUSSION AND POSSIBLE DIRECTION TO STAFF regarding the FY 2011/12 funding for TOURISM. 14. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to the annual $25 per unit commercial FIRE INSPECTION FEE as adopted in the FY10-11 fee schedule. Z:\Council Packets\2011\R9-15-11\110915A.docx Last printed 9/12/2011 11:01 AM Page 4 of 4 15. CONSIDERATION of a CONTRACT with Christmas Light Decorators, in the amount of $34,917.76, for DOWNTOWN HOLIDAY LIGHTS. 16. CONSIDERATION of an EXPENDITURE with Precision Electric Company, in the amount of $41,394.48, for the repair of a motor and pump Fountain Lake. 17. CONSIDERATION of an EXPENDITURE with Berge Ford under the Pima County Contract, in the amount of $37,950.95, for a chassis. 18. CONSIDERATION of an EXPENDITURE with Western Truck Equipment, in the amount of $14,837.36, for a utility body. 19. CONSIDERATION of an EXPENDITURE with Waterous Arizona, in the amount of $33,072.15, for a diesel powered Compressed Air Foam (CAF) pump assembly and tank. 20. CONSIDERATION of RESOLUTION 2011-33, declaring as a public record that certain document filed with the Town Clerk and entitled “The 2010-11 Amendments to the Tax Code of the Town of Fountain Hills”. 21. CONSIDERATION of ORDINANCE 11-12, adopting “The 2010-11 Amendments to the Tax Code of the Town of Fountain Hills” by reference; establishing an effective date; providing for severability and providing penalties for violations. 22. CONSIDERATION of RESOLUTION 2011-17, approving the transfer of investment funds, in the amount of $15M, from the Arizona State Treasurers Local Government Investment Pool (LGIP) to PFM Asset Management for the purpose of investing according to the Town’s adopted investment policy. 23. COUNCIL DISCUSSION/DIRECTION to the Interim Town Manager/Finance Director Julie Ghetti. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. NONE. 24. SUMMARY of Council requests and REPORT ON RECENT ACTIVITIES by the Interim Town Manager/Finance Director Julie Ghetti. 25. ADJOURNMENT. DATED this 8th day of September 2011. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. All Mail Balloting How secure is it? It is the most secure form of voting because we check each signature against the registration form. We will send out a mailing prior to sending the ballots to ensure that the voter is still at the same location. We also have new equipment that allows for us to track the packet all the way to the postman’s delivery truck so we can account for all pieces mailed for any given election. How are mail ballots processed/tabulated to ensure the confidentiality of the ballot for each voter? Every mail in ballot is signature verified against the voters’ signatures on file from their voter registration form(s). Voted ballots are secured within a signed and sealed early voting affidavit envelope that remains sealed throughout the verification process until it is received by the citizen processing boards. Ballots that are verified as being signed by the actual voter are batched and sent to these citizen boards whose makeup consists of two citizen board members of differing political parties. The board members are then tasked with validating that all packets received are noted on the batch sheet and then they proceed with verifying that all packets are intact and unopened. They then separate the ballot from the signed affidavit envelope to maintain the secrecy of the voter’s ballot. A final balancing audit is preformed and those ballots are then sent off for tabulation with transmittal slips that designate the citizen boards that processed them. How does it affect Prop 200? It strengthens it. Prop 200 requires that every voter prove citizenship to register to vote and in a polling place setting, that every voter provide identification to prove that they are the individual attempting to cast a ballot. For the early voting process, “proof of identity” also occurs via the signature verification process. We check every signature on every early voting affidavit to ensure that it matches against the signature on the voter’s registration form. How does mail-out (All Mail) election affect the voter? The voter has more time to review the ballot at a time convenient to them. The All Mail ballots are postage paid so voters would not incur any cost to return their ballot, not even the cost of gas to drive to the polls on Election Day. Voters also have the added benefit of not having to rework their schedules to make it to the polls on Election Day - just vote, seal, sign affidavit and drop in the mail, at their convenience OR deliver to any of the 4 office locations (Clerk’s office and our 3 valley wide locations) open throughout the election cycle as a drop- off/replacement ballot site OR drop off at any polling place (special drop -off ballot box is available at all polling places) for any other election being conducted on that November 8th election day. No lines to stand in on Election Day. If you opt to hand deliver your voted All Mail ballot on Election Day or any day prior to the Election Day, then simply enter any re-issue site in Maricopa County and drop off your ballot in its signed and sealed affidavit envelope and you’re done. Begin the Monday (October 17th) following the first day to mail (Thursday, October 13th), the Fountain Hills Town Hall will be a re-issue/replacement ballot station and will provide an on-site ballot box for those voters who do not wish to return their voted ballots through the mail. The voter does not have to initiate a request to have their ballot mailed to them. Instead, the active voter registration, for a particular election, is rolled into the system so to allow for a mailer packet to be generated. This enables ALL eligible voters to receive and subsequently participate in the election process. The All Mail Election process eliminates the issue of potential inaccessibility experienced by some voters. Statistically, the All Mail process increases voter participation amongst voters such as the handicapped, elderly, homebound and student voters. It is statistically proven that voter turnout is increased through the All Mail Election process. This increase in turnout reflects a true showing of the demographics of a community and therefore is a more accurate representation of the people and the community as a whole. How are the Candidates affected? Although elections are primarily designed to service the constituents, it is not without notice that candidates and campaigns have a need to convey to the voters their platform or issues within any given election. Unlike the polling place election, which has voters voting from 26 days out (early voting) all the way through until the day of the election (polling place voting), the All Mail Election has a specific predetermined date as to when a voter will be seeing the ballot and consequently be able to cast their vote . This allows for candidates and campaigns to better focus their resources and provides them with a specific date to do this by rather that than an unknown and variable date. What about those voters who want to vote in-person? There will be re-issue/replacement ballot stations that the voter can go to so that they can vote their ballot in-person, if they so choose. The added benefit is that they do not have to wait until Election Day to do this, it can be done as far out as 26 days in advance (the first day to mail), all the way up to and on Election Day. The Fountain Hills Town Hall will open as a re-issue/replacement ballot station on Monday, October 17th and the County Elections Department will open on the first day to mail (Thursday, October 13th). Moreover, these replacement ballot sites (Clerk’s office and our 3 valley wide locations) will be able to handle any voter from any precinct so the voter can go to a site close to home, close to work or any one that happens to be in their immediate vicinity throughout this voting period or the voter can simply drop off their voted ballot, sealed within their signed affidavit envelope, at any of the sites because an on-site ballot box will be provided for those voters who do not wish to return their voted ballots through the mail. For the Town of Fountain Hills upcoming November election, Ballots begin mailing at 26 days prior (Thursday, October 13th) to the November 8th election day. Voters should be instructed to anticipate this first day to mail and to await their ballot to be received in the mail before coming in to request a replacement ballot. If the ballot is not received then they should come into Town Hall to vote a replacement ballot but this is a rare occurrence and for the most part, if the ballot is not received by mail, it is more than likely an issue with the address we have on file for the voter (e.g. moved without updating their registration, misspelling on address provided or not actual registered to vote). What if the voter spoils the ballot? There will be replacement ballot stations that they can go to for ballot replacement. If it occurs early enough in the cycle we can mail them a replacement ballot. What happens if they mail them both in? Only the first one is counted. Our returning process and equipment only allows for one ballot per voter to be returned. Once a ballot is returned, it systematically locks out any other ballots sent to that voter from being returned. Election Cost Savings For a Town of Fountain Hills election there is a substantial savings for an All Mail election versus a polling place election. In addition to the extra cost for early balloting, for a polling place election board workers have to be hired; staff recruiters have to locate these board workers; board workers have to be trained; supplies have to be delivered to the polling locations and so on. For jurisdictional elections, the savings depends on the current cost of their on-the-ground elections (up to $1.37 per voter) plus the cost for every early ballot that is sent ($2.12). If early voting is h igh in a given election, then the jurisdiction is paying $1.37 plus the $2.12 for that given voter. In an All Mail election, the only cost is the $2.12 per voter, there is no additional per voter cost since there is not on -the-ground or polling place supplies that need to be provided. For the Town of Fountain Hills, the All Mail Election cost savings is: AS OF 7/26/2011 VOTER REGISTRATION TOTALS FOR THE TOWN OF FOUNTAIN HILLS = 16,286 AS OF 8/3/2011 PEVL TOTALS FOR THE TOWN OF FOUNTAIN HILLS = 8,521 ON-THE-GROUND (POLLING PLACE) ELECTION COST ALL-MAIL ELECTION COST 16,286 registered voters X $1.37 per voter = $22,311.82 16,286 registered voters X $2.12 per voter = $34,526.32 8,521 PEVL voters X $2.12 per voter = $18,064.52 ESTIMATED ON THE GROUND TOTAL COST = $40,376.34 Maricopa County’s statistics show that most polling place elections currently see 65% of their elections already being conducted via the mail-out (Early Voting) process and for some, as high as 90% (e.g. City of Phoenix). What this means is that most jurisdictions conducting polling place elections are already expending the cost for at least 65% of the ballots to be mailed out ($2.12 per mail out) in addition to paying for 100% of the polling places to be setup ($1.37 per voter). Will the results be faster? Yes, there are no provisional or conditional ballots to be processed. Unofficial results are released on Election Day exactly at 8pm, no waiting for multiple polling places to close to provide these results. Those ballots dropped off on Election Day or voted at the Replacement Ballot site (Clerk’s office and our 3 valley wide locations) will still need to be processed the following morning. Therefore, “official” final election results will not be provided until this has been completed. However, even when you do account for this post- processing need, the All Mail election results can potential still be released sooner than polling place results since all that is being waited on is the final tabulation of these post-processed ballots. There is no need to hold or await conditional provisional ballot validation which, for polling place elections, requires that final election results not be reported until a certain timeframe has passed that allows voters to come in to validate their identity in order for their conditional provisional ballot to count. Only once that timeframe has passed for a polling place election (5 days for a general election and 3 days for all other elections) can the election be closed and finalized. Again, this is not the case for an All Mail election. Redacted Redacted Redacted Redacted Redacted Redacted “An Official Arizona Centennial Legacy Project” State Centennial Celebration -February 14, 2012 Town Council Update September 15, 2011 VISION PLAN The Greening of Downtown Expand Shade Areas and Improve the Ambiance of the Downtown Area and Fountain Park No Money –No Staff Just a Dream Activities Began 2 Years Ago (35 Serve on Volunteer Committee) Raised $166,000 (Donations and In-Kind Services) Fountain Park Enhancements Include 94 Trees Low-Water Demonstration Garden Wildflower Garden Two Island Improvements Three Commemorative Columns Accomplishments to Date Accomplishments to Date 94 TREES 40 Trees near Performance Pad 18 Trees East of Veteran’s Memorial 36 Trees along Interior Walkway in Park Accomplishments to Date 40 near Performance Pad TWO GARDENS Low-Water Demonstration Garden Wildflower Garden Volunteers Made It Happen Maintained by Volunteer Master Gardeners Maintained by Volunteer Botanical Garden Club Accomplishments to Date TWO ISLAND IMPROVEMENTS 18 East of Veterans MemorialShore Bird Island Great Blue Heron Island on West Side of Park A Beneficiary Accomplishments to Date THREE COMMEMORATIVE COLUMNS 18 East of Veteran’s Memorial More Donations can now be Acknowledged In Fountain Park 40 Trees Landscaping at the Commemorative Columns Performance Pad Landscaping Enhancements to Duck Island Refurbishing the Gardens In Downtown Corridor Demonstration Landscape Project on the Avenue of the Fountains (Temporary Landscape 3 Vacant Lots) Assist with Centennial Circle Planned Improvements Fall 2011 Planned Improvements Fall 2011 40 TREES Provide Shade for Interior Sidewalk on West Side of Park Add Shade to 7 Benches Planned Improvements Fall 2011 COLUMN AREA LANDSCAPING Add Pavers and Landscaping Planned Improvements Fall 2011 PERFORMANCE PAD LANDSCAPING Enhance Area Between Sidewalk and Lake Improve Seating Ambiance Planned Improvements Fall 2011 THIRD ISLAND & GARDENS Add More Plants to the Gardens Clean-up Duck Island on North Side of Lake Planned Improvements Fall 2011 DOWNTOWN CORRIDOR VACANT LOT LANDSCAPING Enhance Pedestrian ExperienceDemonstration Project Site Lot Owners: Elizabeth Matej-Horchem and Tom Gatto Design: Four Peaks Landscape Architecture Maintenance: Plat 208 POA Water: Chaparral Water Co. Planned Improvements Fall 2011 DOWNTOWN CORRIDOR CENTENNIAL CIRCLE LANDSCAPING Landscape Partner More to Come … The Greening Committee is only Completing its Second Year We’re not Finished! More Improvements are in the Planning Stage Fountain Park Downtown Corridor Urban Demonstration Garden & Learning Center VISION PLAN Accomplishments Made Possible by these Major Contributors Organized and Promoted by Community Volunteers The Greening of Downtown Allied Waste Arizona Forestry Division Chamber of Commerce Chaparral Water Co. Coates, Carol & Sid Community Foundation Connick Architecture Cultural & Civic Association Dirkse, Rachel FH Times Fresh Ideas Four Peaks Landscape Architecture Four Peaks Rotary Hansen, Barbara & Fred Langston Family Foundation Loisi, Anna & Guy Meridian Bank Miles, Jackie & Jerry Nichols, Shella & Wally Paulsen, Ginny Plat 208 POA Public Art Committee Rotary Club of Fountain Hills SRP Sanitary District Science Center of Inquiry Steel Crest Registers & Grilles Town of Fountain Hills Weinacht, Ellen & Don Fountain Hills & Fort McDowell Visitors Bureau A division of the Fountain Hills Chamber of Commerce A Destination Marketing Organization serving Fountain Hills, Fort McDowell & The Verdes The Value of Visitors 2006 visitor spending in Fountain Hills and Fort McDowell equaled $103 million Visitor Impacts –Fountain Hills: –Spending: $49.1 Million –Earnings: $13.7 Million –Employment: 470 –Town of FH Tax Receipts: $1.3 million Source: Dean Runyan Associates, 2006 Visitor Bureau Objectives Position Fountain Hills as a vibrant, base camp destination featuring diverse assets: –Fountain/Downtown/Vibrant Community –Golf –Sonoran Desert Golf Trail –Desert Experience/Outdoor Adventure –Festivals/Events/Museum/Public Art –Meetings/Weddings –Resorts/Hotels Increase overnight stays Increase non-resident day trip visitors and resident patronage of FH businesses. Build resident understanding and support for tourism as important to economic vitality. 2011/12 Strategy & Tactics Revitalize branding of Fountain Hills Develop new website as a comprehensive destination portal Launch brand positioning with new website Implement integrated digital online marketing strategy Ongoing focus on art/events & golf markets for high- value visitors Further develop the weddings niche market Seek cooperative marketing opportunities to leverage dollars 2011/12 Strategy & Tactics Access meetings/events/group tour markets via industry trade associations Utilize affiliations (AOT, CVBs, CTA Network etc.) to promote the destination Produce & distribute key publications at trade shows, events & area businesses: –Visitors Guide –Dining Guide –Calendar of Events –Wedding Guide Digital Marketing New Website –Provide enhanced content and interactivity –Search Engine Optimization –Blog/news article platform –Simplified targeted navigation –Rich photography & video –Commenting and feedback features for users –Advertising and sponsorship opportunities –Marketing tools and resources for businesses –Mobile website integration –Analytics –measuring ROI Digital Marketing (con’t) E-mail database & integrated marketing platform Social Media enhancements (Facebook, Twitter, LinkedIn, Blog) Travel site affiliations (Trip Advisor, A-Position etc.) Increase reciprocal links Advertising –Print (5,000,000+ Imps) Phoenix Magazine GOLF Magazine AZ Official Visitors Guide The Valley Guide Phoenix Map FH/FM Inset AZ Meetings & Events Inside Golf –Canada AZ Finest Weddings AZ Collectors Guide Key Arizona Visit Phoenix Official Visitors Guide Fulfillment Visitors’ Guide 2012 40,000 Distributed in 400+ locations: –Airports –PHX, private Aviation –Hotels –Car rental –CVBs –Visitor Information centers –Area Businesses Affiliations Town of Fountain Hills Fort McDowell Yavapai Nation Arizona Office of Tourism Western Association of CVBs Greater Phoenix CVB Scottsdale CVB Industry Trade Associations Budget Overview Town Funding $ 103,000 Tribal Grant 45,000 Chamber Funding 50,000 State Grant 8,000 Other/Co-ops 5,000 Total $ 218,000 Principle Deliverables New Website New Destination Brand & Launch Print Advertising and Media Relations/PR Consumer Impressions (20+ Million) THANK YOU! 1541153.2 RESOLUTION NO. 2011-33 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 “2010-11 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS.” BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That certain document entitled the “2010-11 Amendments to the Tax Code of the Town of Fountain Hills” of which three copies each 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. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, September 15, 2011. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Jay T. Schlum, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Julie Ghetti, Interim Town Manager Andrew J. McGuire, Town Attorney 1573302.2 2010-11 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS 1573302.2 2010-2011 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS Section 1. Section 8A-100 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-100. General definitions. For the purposes of this Chapter, the following definitions apply: "Assembler" means a person who unites or combines products, wares, or articles of manufacture so as to produce a change in form or substance of such items without changing or altering component parts. "Broker" means any person engaged or continuing in business who acts for another for a consideration in the conduct of a business activity taxable under this Chapter, and who receives for his principal all or part of the gross income from the taxable activity. "Business" means all activities or acts, personal or corporate, engaged in and caused to be engaged in with the object of gain, benefit, or advantage, either direct or indirect, but not casual activities or sales. "Business Day" means any day of the week when the Tax Collector's office is open for the public to conduct the Tax Collector's business. "Casual Activity or Sale" means a transaction of an isolated nature made by a person who neither represents himself to be nor is engaged in a business subject to a tax imposed by this Chapter. However, no sale, rental, license for use, or lease transaction concerning real property nor any activity entered into by a business taxable by this Chapter shall be treated, or be exempt, as casual. This definition shall include sales of used capital assets, provided that the volume and frequency of such sales do not indicate that the seller regularly engages in selling such property. "Combined Taxes" means the sum of all applicable Arizona Transaction Privilege and Use Taxes; all applicable transportation taxes imposed upon gross income by this County as authorized by Article III, Chapter 6, Title 42, Arizona Revised Statutes; and all applicable taxes imposed by this Chapter. "Commercial Property" is any real property, or portion of such property, used for any purpose other than lodging or lodging space, including structures built for lodging but used otherwise, such as model homes, apartments used as offices, etc. "Communications Channel" means any line, wire, cable, microwave, radio signal, light beam, telephone, telegraph, or any other electromagnetic means of moving a message. 1573302.2 2 "Construction Contracting" refers to the activity of a construction contractor. "Construction Contractor" means a person who undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, project, development, or improvement to real property, or to do any part thereof. "Construction contractor" includes subcontractors, specialty contractors, prime contractors, and any person receiving consideration for the general supervision and/or coordination of such a construction project except for remediation contracting. This definition shall govern without regard to whether or not the construction contractor is acting in fulfillment of a contract. "Delivery (of Notice) by the Tax Collector" means "receipt (of notice) by the taxpayer". "Delivery, Installation, or Other Direct Customer Services" means services or labor, excluding repair labor, provided by a taxpayer to or for his customer at the time of transfer of tangible personal property; provided further that the charge for such labor or service is separately billed to the customer and maintained separately in the taxpayer's books and records. "Engaging", when used with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers. "Equivalent Excise Tax" means either: (1) a Privilege or Use Tax levied by another Arizona municipality upon the transaction in question, and paid either to such Arizona municipality directly or to the vendor; or (2) an excise tax levied by a political subdivision of a state other than Arizona upon the transaction in question, and paid either to such jurisdiction directly or to the vendor; or (3) an excise tax levied by a Native American Government organized under the laws of the federal government upon the transaction in question, and paid either to such jurisdiction directly or to the vendor. "Federal Government" means the United States Government, its departments and agencies; but not including national banks or federally chartered or insured banks, savings and loan institutions, or credit unions. "Food" means any items intended for human consumption as defined by rules and regulations adopted by the Department of Revenue, State of Arizona, pursuant to A.R.S. Section 42-5106. Under no circumstances shall "food" include alcoholic beverages or tobacco, or food items purchased for use in conversion to any form of alcohol by distillation, fermentation, brewing, or other process. UNDER NO CIRCUMSTANCES SHALL “FOOD” INCLUDE AN EDIBLE PRODUCT, BEVERAGE, OR INGREDIENT INFUSED, MIXED, OR IN ANY WAY 1573302.2 3 COMBINED WITH MEDICAL MARIJUANA OR AN ACTIVE INGREDIENT OF MEDICAL MARIJUANA. "Hotel" means any public or private hotel, inn, hostelry, tourist home, house, motel, rooming house, apartment house, trailer, or other lodging place within the Town offering lodging, wherein the owner thereof, for compensation, furnishes lodging to any transient, except foster homes, rest homes, sheltered care homes, nursing homes, or primary health care facilities. "Job Printing" means the activity of copying or reproducing an article by any means, process, or method. "Job printing" includes engraving of printing plates, embossing, copying, micrographics, and photo reproduction. "Lessee" includes the equivalent person in a rental or licensing agreement for all purposes of this Chapter. "Lessor" includes the equivalent person in a rental or licensing agreement for all purposes of this Chapter. "Licensing (for Use)" means any agreement between the user ("licensee") and the owner or the owner's agent ("licensor") for the use of the licensor's property whereby the licensor receives consideration, where such agreement does not qualify as a "sale" or "lease" or "rental" agreement. "Lodging (Lodging Space)" means any room or apartment in a hotel or any other provider of rooms, trailer spaces, or other residential dwelling spaces; or the furnishings or services and accommodations accompanying the use and possession of said dwelling space, including storage or parking space for the property of said tenant. "Manufactured Buildings" means a manufactured home, mobile home or factory built building, as defined in A.R.S. Section 41-2142. "Manufacturer" means a person engaged or continuing in the business of fabricating, producing, or manufacturing products, wares, or articles for use from other forms of tangible personal property, imparting to such new forms, qualities, properties, and combinations. “MEDICAL MARIJUANA” MEANS “MARIJUANA” USED FOR A “MEDICAL USE” AS THOSE TERMS ARE DEFINED IN A.R.S. SECTION 36-2801. "Mining and Metallurgical Supplies" means all tangible personal property acquired by persons engaged in activities defined in Section 8A-432 for such use. This definition shall not include: (1) janitorial equipment and supplies. (2) office equipment, office furniture, and office supplies. 1573302.2 4 (3) motor vehicles licensed for use upon the highways of the State. "Modifier" means a person who reworks, changes, or adds to products, wares, or articles of manufacture. "Nonprofit Entity" means any entity organized and operated exclusively for charitable purposes, or operated by the Federal Government, the State, or any political subdivision of the State. "Occupancy (of Real Property)" means any occupancy or use, or any right to occupy or use, real property including any improvements, rights, or interests in such property. "Out-of-Town Sale" means the sale of tangible personal property and job printing if all of the following occur: (1) transference of title and possession occur without the Town; and (2) the stock from which such personal property was taken was not within the corporate limits of the Town; and (3) the order is received at a permanent business location of the seller located outside the Town; which location is used for the substantial and regular conduct of such business sales activity. In no event shall the place of business of the buyer be determinative of the situs of the receipt of the order. For the purpose of this definition it does not matter that all other indicia of business occur within the Town, including, but not limited to, accounting, invoicing, payments, centralized purchasing, and supply to out-of-Town storehouses and out-of-Town retail branch outlets from a primary storehouse within the Town. "Out-of-State Sale" means the sale of tangible personal property and job printing if all of the following occur: (1) The order is placed from without the State of Arizona; and (2) the property is delivered to the buyer at a location outside the State; and (3) the property is purchased for use outside the State. "Owner-Builder" means an owner or lessor of real property who, by himself or by or through others, constructs or has constructed or reconstructs or has reconstructed any improvement to real property. 1573302.2 5 "Person" means an individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver, syndicate, broker, the Federal Government, this State, or any political subdivision or agency of this State. For the purposes of this Chapter, a person shall be considered a distinct and separate person from any general or limited partnership or joint venture or other association with which such person is affiliated. A subsidiary corporation shall be considered a separate person from its parent corporation for purposes of taxation of transactions with its parent corporation. "Prosthetic" means any of the following tangible personal property if such items are prescribed or recommended by a licensed podiatrist, chiropractor, dentist, physician or surgeon, naturopath, optometrist, osteopathic physician or surgeon, psychologist, hearing aid dispenser, physician assistant, nurse practitioner or veterinarian: (1) any man-made device for support or replacement of a part of the body, or to increase acuity of one of the senses. Such items include: prescription eyeglasses; contact lenses; hearing aids; artificial limbs or teeth; neck, back, arm, leg, or similar braces. (2) insulin, insulin syringes, and glucose test strips sold with or without a prescription. (3) hospital beds, crutches, wheelchairs, similar home health aids, or corrective shoes. (4) drugs or medicine, including oxygen. (5) equipment used to generate, monitor, or provide health support systems, such as respiratory equipment, oxygen concentrator, dialysis machine. (6) durable medical equipment which has a Federal Health Care Financing Administration common procedure code, is designated reimbursable by Medicare, can withstand repeated use, is primarily and customarily used to serve a medical purpose, is generally not useful to a person in the absence of illness or injury and is appropriate for use in the home. (7) UNDER NO CIRCUMSTANCES SHALL “PROSTHETIC” INCLUDE MEDICAL MARIJUANA REGARDLESS OF WHETHER IT IS SOLD OR DISPENSED PURSUANT TO A PRESCRIPTION, RECOMMENDATION, OR WRITTEN CERTIFICATION BY ANY AUTHORIZED PERSON. "Qualifying Community Health Center" (1) means an entity that is recognized as nonprofit under Section 501(c)(3) of the United States Internal Revenue Code, that is a community-based, primary care clinic that has a community-based board of directors and that is either: (a) the sole provider of primary care in the community. 1573302.2 6 (b) a nonhospital affiliated clinic that is located in a federally designated medically underserved area in this State. (2) includes clinics that are being constructed as qualifying community health centers. "Qualifying Health Care Organization" means an entity that is recognized as nonprofit under Section 501(c) of the United States Internal Revenue Code and that uses, saves or invests at least eighty percent (80%) of all monies that it receives from all sources each year only for health and medical related educational and charitable services, as documented by annual financial audits prepared by an independent certified public accountant, performed according to generally accepted accounting standards and filed annually with the Arizona Department of Revenue. Monies that are used, saved or invested to lease, purchase or construct a facility for health and medical related education and charitable services are included in the eighty percent (80%) requirement. "Qualifying Hospital" means any of the following: (1) a licensed hospital which is organized and operated exclusively for charitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual. (2) a licensed nursing care institution or a licensed residential care institution or a residential care facility operated in conjunction with a licensed nursing care institution or a licensed kidney dialysis center, which provides medical services, nursing services or health related services and is not used or held for profit. (3) a hospital, nursing care institution or residential care institution which is operated by the federal government, this State or a political subdivision of this State. (4) a facility that is under construction and that on completion will be a facility under subdivision (1), (2) or (3) of this paragraph. "Receipt (of Notice) by the Taxpayer" means the earlier of actual receipt or the first attempted delivery by certified United States mail to the taxpayer's address of record with the Tax Collector. "Remediation" means those actions that are reasonable, necessary, cost-effective and technically feasible in the event of the release or threat of release of hazardous substances into the environment such that the waters of the State are or may be affected, such actions as may be necessary to monitor, assess and evaluate such release or threat of release, actions of remediation, removal or disposal of hazardous substances or taking such other actions as may be necessary to prevent, minimize or mitigate damage to the public health or welfare or to the waters of the State which may otherwise result from a release or threat of release of a hazardous 1573302.2 7 substance that will or may affect the waters of the State. Remediation activities include the use of biostimulation with indigenous microbes and bioaugmentation using microbes that are nonpathogenic, nonopportunistic and that are naturally occurring. Remediation activities may include community information and participation costs and providing an alternative drinking water supply. "Rental Equipment" means tangible personal property sold, rented, leased, or licensed to customers to the extent that the item is actually used by the customer for rental, lease, or license to others; provided that: (1) the vendee is regularly engaged in the business of renting, leasing, or licensing such property for a consideration; and (2) the item so claimed as "rental equipment" is not used by the person claiming the exemption for any purpose other than rental, lease, or license for compensation, to an extent greater than fifteen percent (15%) of its actual use. "Rental Supply" means an expendable or nonexpendable repair or replacement part sold to become part of "rental equipment", provided that: (1) the documentation relating to each purchased item so claimed specifically itemizes to the vendor the actual item of "rental equipment" to which the purchased item is intended to be attached as a repair or replacement part; and (2) the vendee is regularly engaged in the business of renting, leasing, or licensing such property for a consideration; and (3) the item so claimed as "rental equipment" is not used by the person claiming the exemption for any purpose other than rental, lease, or license for compensation, to an extent greater than fifteen percent (15%) of its actual use. "Repairer" means a person who restores or renews products, wares, or articles of manufacture. "Resides within the Town" means in cases other than individuals, whose legal addresses are determinative of residence, the engaging, continuing, or conducting of regular business activity within the Town. "Restaurant" means any business activity where articles of food, drink, or condiment are customarily prepared or served to patrons for consumption on or off the premises, also including bars, cocktail lounges, the dining rooms of hotels, and all caterers. For the purposes of this Chapter, a "fast food" business, which includes street vendors and mobile vendors selling in public areas or at entertainment or sports or similar events, who prepares or sells food or drink for consumption on or off the premises is considered a "restaurant", and not a "retailer". 1573302.2 8 "Retail Sale (Sale at Retail)" means the sale of tangible personal property, except the sale of tangible personal property to a person regularly engaged in the business of selling such property. "Retailer" means any person engaged or continuing in the business of sales of tangible personal property at retail. "Sale" means any transfer of title or possession, or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever, including consignment transactions and auctions, of property for a consideration. "Sale" includes any transaction whereby the possession of such property is transferred but the seller retains the title as security for the payment of the price. "Sale" also includes the fabrication of tangible personal property for consumers who, in whole or in part, furnish either directly or indirectly the materials used in such fabrication work. "Solar Daylighting" means a device that is specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting. "Solar Energy Device" means a system or series of mechanisms designed primarily to provide heating, to provide cooling, to produce electrical power, to produce mechanical power, to provide solar daylighting or to provide any combination of the foregoing by means of collecting and transferring solar generated energy into such uses either by active or passive means, including wind generator systems that produce electricity. Solar energy systems may also have the capability of storing solar energy for future use. Passive systems shall clearly be designed as a solar energy device, such as a trombe wall, and not merely as a part of a normal structure, such as a window. "Speculative Builder" means either: (1) an owner-builder who sells or contracts to sell, at any time, improved real property (as provided in Section 8A-416) consisting of: A)(a) custom, model, or inventory homes, regardless of the stage of completion of such homes; or B)(b) improved residential or commercial lots without a structure; or (2) an owner-builder who sells or contracts to sell improved real property, other than improved real property specified in subsection (1) above: A)(a) prior to completion; or B)(b) before the expiration of twenty-four (24) months after the improvements of the real property sold are substantially complete. 1573302.2 9 "Substantially Complete" means the construction contracting or reconstruction contracting: 1. has passed final inspection or its equivalent; or 2. certificate of occupancy or its equivalent has been issued; or 3. is ready for immediate occupancy or use. "Supplier" means any person who rents, leases, licenses, or makes sales of tangible personal property within the Town, either directly to the consumer or customer or to wholesalers, jobbers, fabricators, manufacturers, modifiers, assemblers, repairers, or those engaged in the business of providing services which involve the use, sale, rental, lease, or license of tangible personal property. "Tax Collector" means the Town Manager or his designee or agent for all purposes under this Chapter. "Taxpayer" means any person liable for any tax under this Chapter. "Taxpayer Problem Resolution Officer" means the individual designated by the Town to perform the duties identified in Sections 8A-515 and 8A-516. In cities with a population of 50,000 or more, the Taxpayer Problem Resolution Officer shall be an employee of the Town. In cities with a population of less than 50,000, the Taxpayer Problem Resolution Officer need not be an employee of the Town. Regardless of whether the Taxpayer Problem Resolution Officer is or is not an employee of the Town, the Taxpayer Problem Resolution Officer shall have substantive knowledge of taxation. The identity of and telephone number for the Taxpayer Problem Resolution Officer can be obtained from the Tax Collector. "Telecommunication Service" means any service or activity connected with the transmission or relay of sound, visual image, data, information, images, or material over a communications channel or any combination of communications channels. "Transient" means any person who either at the person's own expense or at the expense of another obtains lodging space or the use of lodging space on a daily or weekly basis, or on any other basis for less than thirty (30) consecutive days. "Utility Service" means the producing, providing, or furnishing of electricity, electric lights, current, power, gas (natural or artificial), or water to consumers or ratepayers Section 2. Section 8A-415 of the Tax Code of the Town of Fountain Hills is amended to read: 1573302.2 10 Sec. 8A-415. Construction contracting: construction contractors. (a) The tax rate shall be at an amount equal to two and sixth tenths percent (2.6%) of the gross income from the business upon every construction contractor engaging or continuing in the business activity of construction contracting within the Town. (1) However, gross income from construction contracting shall not include charges related to groundwater measuring devices required by A.R.S. Section 45- 604. (2) (Reserved) (3) gross income from construction contracting shall not include gross income from the sale of manufactured buildings taxable under Section 8A-427. (4) For taxable periods beginning from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural or engineering services that are incorporated in a contract is not subject to tax under this Section. For the purposes of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. (b) Deductions and exemptions. (1) Gross income derived from acting as a "subcontractor" shall be exempt from the tax imposed by this Section. (2) All construction contracting gross income subject to the tax and not deductible herein shall be allowed a deduction of thirty-five percent (35%). (3) The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: (A) Section 8A-465, subsections (g) and (p) (B) Section 8A-660, subsections (g) and (p) shall be exempt or deductible, respectively, from the tax imposed by this Section. (4) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation, assembly, repair or maintenance of income- producing capital equipment, as defined in Section 8A-110, that is deducted from the retail classification pursuant to Section 8A-465(g), that does not become a permanent attachment to a building, highway, road, railroad, excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section. If the ownership of the realty is separate from the ownership of the income-producing capital equipment, the determination as to permanent attachment shall be made as if the ownership was the same. The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of, or modification to, real property in order to facilitate the installation, assembly, repair, maintenance or removal of the income- producing capital equipment. For purposes of this paragraph, "permanent attachment" means at least one of the following: (A) to be incorporated into real property. (B) to become so affixed to real property that it becomes part of the real 1573302.2 11 property. (C) to be so attached to real property that removal would cause substantial damage to the real property from which it is removed. (5) The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (6) The gross proceeds of sales or gross income that is derived from the installation, assembly, repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A-465, subsection (g) shall be exempt from the tax imposed under this Section. (7) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products in this State for the construction, alteration, repair, improvement, movement, wrecking or demolition or addition to or subtraction from any building, highway, road, excavation, manufactured building or other structure, project, development or improvement used directly and primarily to prevent, monitor, control or reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (8) The gross proceeds of sales or gross income received from a post construction contract to perform post-construction treatment of real property for termite and general pest control, including wood destroying organisms, shall be exempt from tax imposed under this section. (9) Through December 31, 2009, the gross proceeds of sales or gross income received from a contract for constructing any lake facility development in a commercial enhancement reuse district that is designated pursuant to A.R.S. § 9- 499.08 if the contractor maintains the following records in a form satisfactory to the Arizona Department of Revenue and to the Town: (A) The certificate of qualification of the lake facility development issued by the Town pursuant to A.R.S. § 9-499.08, subsection D. (B) All state and local transaction privilege tax returns for the period of time during which the contractor received gross proceeds of sales or gross income from a contract to construct a lake facility development in a designated commercial enhancement reuse district, showing the amount exempted from state and local taxation. (C) Any other information considered to be necessary. (10) Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the model city tax code or by a contractor providing services to the taxpayer. For the purposes of this paragraph: (A) the attributable amount shall not exceed the value of the development fees actually imposed. (B) the attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the 1573302.2 12 taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees. (C) "development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to A.R.S. Section 9-463.05, A.R.S. Section 11-1102 or A.R.S. Title 48 regardless of the jurisdiction to which the fees are paid. (11) For taxable periods beginning from and after July 1, 2008 and ending before January 1, 20112017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the department of revenue as a solar energy contractor. By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the department of revenue and the Town, as applicable, for examination. (c) "Subcontractor" means a construction contractor performing work for either: (1) a construction contractor who has provided the subcontractor with a written declaration that he is liable for the tax for the project and has provided the subcontractor his Town Privilege License number. (2) an owner-builder who has provided the subcontractor with a written declaration that: (A) the owner-builder is improving the property for sale; and (B) the owner-builder is liable for the tax for such construction contracting activity; and (C) the owner-builder has provided the contractor his Town Privilege License number. (3) a person selling new manufactured buildings who has provided the subcontractor with a written declaration that he is liable for the tax for the site preparation and set-up; and provided the subcontractor his Town Privilege License number. Subcontractor also includes a construction contractor performing work for another subcontractor as defined above. Section 3. Section 8A-416 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-416. Construction contracting: speculative builders. (a) The tax shall be equal to two and six-tenths percent (2.6%) of the gross income from the business activity upon every person engaging or continuing in business as a speculative builder within the Town. 1573302.2 13 (1) The gross income of a speculative builder considered taxable shall include the total selling price from the sale of improved real property at the time of closing of escrow or transfer of title. (2) "Improved Real Property" means any real property: (A) upon which a structure has been constructed; or (B) where improvements have been made to land containing no structure (such as paving or landscaping); or (C) which has been reconstructed as provided by Regulation; or (D) where water, power, and streets have been constructed to the property line. (3) "Sale of Improved Real Property" includes any form of transaction, whether characterized as a lease or otherwise, which in substance is a transfer of title of, or equitable ownership in, improved real property and includes any lease of the property for a term of thirty (30) years or more (with all options for renewal being included as a part of the term). In the case of multiple unit projects, "sale" refers to the sale of the entire project or to the sale of any individual parcel or unit. (4) "Partially Improved Residential Real Property", as used in this Section, means any improved real property, as defined in subsection (a)(2) above, being developed for sale to individual homeowners, where the construction of the residence upon such property is not substantially complete at the time of the sale. (b) Exclusions. (1) In cases involving reconstruction contracting, the speculative builder may exclude from gross income the prior value allowed for reconstruction contracting in determining his taxable gross income, as provided by Regulation. (2) Neither the cost nor the fair market value of the land which constitutes part of the improved real property sold may be excluded or deducted from gross income subject to the tax imposed by this Section. (3) (Reserved) (4) A speculative builder may exclude gross income from the sale of partially improved residential real property as defined in (a)(4) above to another speculative builder only if all of the following conditions are satisfied: (A) The speculative builder purchasing the partially improved residential real property has a valid Town privilege license for construction contracting as a speculative builder; and (B) At the time of the transaction, the purchaser provides the seller with a properly completed written declaration that the purchaser assumes liability for and will pay all privilege taxes which would otherwise be due the Town at the time of sale of the partially improved residential real property; and (C) The seller also: (i) maintains proper records of such transactions in a manner similar to the requirements provided in this chapter relating to sales for resale; and (ii) retains a copy of the written declaration provided by the buyer for the transaction; and 1573302.2 14 (iii) is properly licensed with the Town as a speculative builder and provides the Town with the written declaration attached to the Town privilege tax return where he claims the exclusion. (5) For taxable periods beginning from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural or engineering services that are incorporated in a contract is not subject to tax under this section. For the purposes of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. (c) Tax liability for speculative builders occurs at close of escrow or transfer of title, whichever occurs earlier, and is subject to the following provisions, relating to exemptions, deductions and tax credits: (1) Exemptions. (A) The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: (i) Section 8A-465, subsections (g) and (p) (ii) Section 8A-660, subsections (g) and (p) shall be exempt or deductible, respectively, from the tax imposed by this Section. (B) The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (C) The gross proceeds of sales or gross income that is derived from the installation, assembly, repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A-465, subsection (g) shall be exempt from the tax imposed under this section. (D) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products in this state for the construction, alteration, repair, improvement, movement, wrecking or demolition or addition to or subtraction from any building, highway, road, excavation, manufactured building or other structure, project, development or improvement used directly and primarily to prevent, monitor, control or reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (E) any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the model city tax code or by a contractor providing services to the taxpayer shall be exempt from the tax imposed under this section. For the purposes of this paragraph: 1573302.2 15 (i) the attributable amount shall not exceed the value of the development fees actually imposed. (ii) the attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees. (iii) "development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to A.R.S. Section 9-463.05, A.R.S. Section 11-1102 or A.R.S. Title 48 regardless of the jurisdiction to which the fees are paid. (2) Deductions. (A) All amounts subject to the tax shall be allowed a deduction in the amount of thirty-five percent (35%). (B) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation, assembly, repair or maintenance of income-producing capital equipment, as defined in Section 8A-110, that is deducted from the retail classification pursuant to Section 8A- 465(g), that does not become a permanent attachment to a building, highway, road, railroad, excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section. If the ownership of the realty is separate from the ownership of the income-producing capital equipment, the determination as to permanent attachment shall be made as if the ownership was the same. The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of, or modification to, real property in order to facilitate the installation, assembly, repair, maintenance or removal of the income-producing capital equipment. For purposes of this paragraph, "permanent attachment" means at least one of the following: (i) to be incorporated into real property. (ii) to become so affixed to real property that it becomes part of the real property. (iii) to be so attached to real property that removal would cause substantial damage to the real property from which it is removed. (C) For taxable periods beginning from and after July 1, 2008 and ending before January 1, 20112017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the department of revenue as a solar energy contractor. By registering, the contractor acknowledges that it will make 1573302.2 16 its books and records relating to sales of solar energy devices available to the department of revenue and the Town, as applicable, for examination. (3) Tax credits. The following tax credits are available to owner-builders or speculative builders, not to exceed the tax liability against which such credits apply, provided such credits are documented to the satisfaction of the tax collector: (A) A tax credit equal to the amount of Town privilege or use tax, or the equivalent excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge paid directly to the vendor with respect to the tangible personal property incorporated into the said structure or improvement to real property undertaken by the owner-builder or speculative builder. (B) A tax credit equal to the amount of privilege taxes paid to this Town, or charged separately to the speculative builder, by a construction contractor, on the gross income derived by said person from the construction of any improvement to the real property. (C) No credits provided herein may be claimed until such time that the gross income against which said credits apply is reported. Section 4. Section 8A-417 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-417. Construction contracting: owner-builders who are not speculative builders. (a) At the expiration of twenty-four (24) months after improvement to the property is substantially complete, the tax liability for an owner-builder who is not a speculative builder shall be at an amount equal to two and six-tenths percent (2.6%) of: (1) the gross income from the activity of construction contracting upon the real property in question which was realized by those construction contractors to whom the owner-builder provided written declaration that they were not responsible for the taxes as prescribed in subsection 8A-415(c)(2); and (2) the purchase of tangible personal property for incorporation into any improvement to real property, computed on the sales price. (b) For taxable periods beginning from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural or engineering services that are incorporated in a contract is not subject to tax under this section. For the purposes of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. (c) The tax liability of this Section is subject to the following provisions, relating to exemptions, deductions and tax credits: (1) Exemptions. (A) The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: 1573302.2 17 (i) Section 8A-465, subsections (g) and (p) (ii) Section 8A-660, subsections (g) and (p) shall be exempt or deductible, respectively, from the tax imposed by this Section. (B) The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (C) The gross proceeds of sales or gross income that is derived from the installation, assembly, repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A-465, subsection (g) shall be exempt from the tax imposed under this Section. (D) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products in this state for the construction, alteration, repair, improvement, movement, wrecking or demolition or addition to or subtraction from any building, highway, road, excavation, manufactured building or other structure, project, development or improvement used directly and primarily to prevent, monitor, control or reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (E) Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the model city tax code or by a contractor providing services to the taxpayer shall be exempt from the tax imposed under this section. For the purposes of this paragraph: (i) the attributable amount shall not exceed the value of the development fees actually imposed. (ii) the attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees. (iii) "development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to A.R.S. Section 9-463.05, A.R.S. Section 11-1102 or A.R.S. Title 48 regardless of the jurisdiction to which the fees are paid. (2) Deductions. 1573302.2 18 (A) All amounts subject to the tax shall be allowed a deduction in the amount of thirty-five percent (35%). (B) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation, assembly, repair or maintenance of income-producing capital equipment, as defined in Section 8A-110, that is deducted from the retail classification pursuant to Section 8A-465(g), that does not become a permanent attachment to a building, highway, road, railroad, excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section. If the ownership of the realty is separate from the ownership of the income-producing capital equipment, the determination as to permanent attachment shall be made as if the ownership was the same. The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of, or modification to, real property in order to facilitate the installation, assembly, repair, maintenance or removal of the income-producing capital equipment. For purposes of this paragraph, "permanent attachment" means at least one of the following: (i) to be incorporated into real property. (ii) to become so affixed to real property that it becomes part of the real property. (iii) to be so attached to real property that removal would cause substantial damage to the real property from which it is removed. (C) For taxable periods beginning from and after July 1, 2008 and ending before January 1, 20112017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the department of revenue as a solar energy contractor. By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the department of revenue and the Town, as applicable, for examination. (3) Tax credits. The following tax credits are available to owner-builders and speculative builders, not to exceed the tax liability against which such credits apply, provided such credits are documented to the satisfaction of the tax collector: (A) A tax credit equal to the amount of Town privilege or use tax, or the equivalent excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge paid directly to the vendor with respect to the tangible personal property incorporated into the said structure or improvement to real property undertaken by the owner-builder or speculative builder. (B) A tax credit equal to the amount of privilege taxes paid to this Town, or charged separately to the speculative builder, by a construction contractor, on the gross income derived by said person from the construction of any improvement to the real property. 1573302.2 19 (C) No credits provided herein may be claimed until such time that the gross income against which said credits apply is reported. (d) The limitation period for the assessment of taxes imposed by this Section is measured based upon when such liability is reportable, that is, in the reporting period that encompasses the twenty-fifth (25th) month after said unit or project was substantially complete. Interest and penalties, as provided in Section 8A-540, will be based on reportable date. (e) (Reserved) Section 5. Section 8A-445 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-445. Rental, leasing, and licensing for use of real property. (a) The tax rate shall be at an amount equal to one and six-tenths percent (1.6%) of the gross income from the business activity upon every person engaging or continuing in the business of leasing or renting real property located within the Town for a consideration, to the tenant in actual possession, or the licensing for use of real property to the final licensee located within the Town for a consideration including any improvements, rights, or interest in such property; provided further that: (1) Payments made by the lessee to, or on behalf of, the lessor for property taxes, repairs, or improvements are considered to be part of the taxable gross income. (2) Charges for such items as telecommunications, utilities, pet fees, or maintenance are considered to be part of the taxable gross income. (3) However, if the lessor engages in telecommunication activity, as evidenced by installing individual metering equipment and by billing each tenant based upon actual usage, such activity is taxable under Section 8A-470. (b) If individual utility meters have been installed for each tenant and the lessor separately charges each single tenant for the exact billing from the utility company, such charges are exempt. (c) Charges by a qualifying hospital, qualifying community health center or a qualifying health care organization to patients of such facilities for use of rooms or other real property during the course of their treatment by such facilities are exempt. (d) Charges for joint pole usage by a person engaged in the business of providing or furnishing utility or telecommunication services to another person engaged in the business of providing or furnishing utility or telecommunication services are exempt from the tax imposed by this Section. (e) Exempt from the tax imposed by this Section is gross income derived from the rental, leasing, or licensing for use of real property to a qualifying hospital, qualifying community health center or a qualifying health care organization, except when the property so rented, leased, or licensed is for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512. (f) (Reserved) (g) (Reserved) 1573302.2 20 (h) (Reserved) (i) (Reserved) (j) Exempt from the tax imposed by this Section is gross income derived from the activities taxable under Section 8A-444 of this code. (k) (Reserved) (l) (Reserved) (m) (Reserved) (n) Notwithstanding the provisions of Section 8A-200(b), the fair market value of one (1) apartment, in an apartment complex provided rent free to an employee of the apartment complex is not subject to the tax imposed by this Section. For an apartment complex with more than fifty (50) units, an additional apartment provided rent free to an employee for every additional fifty (50) units is not subject to the tax imposed by this Section. (o) Income derived from incarcerating or detaining prisoners who are under the jurisdiction of the United States, this State or any other state or a political subdivision of this State or of any other state in a privately operated prison, jail or detention facility is exempt from the tax imposed by this Section. (p) Charges by any hospital, any licensed nursing care institution, or any kidney dialysis facility to patients of such facilities for the use of rooms or other real property during the course of their treatment by such facilities are exempt. (q) Charges to patients receiving "personal care" or "directed care", by any licensed assisted living facility, licensed assisted living center or licensed assisted living home as defined and licensed pursuant to Chapter 4 Title 36 Arizona Revised Statutes and Title 9 of the Arizona Administrative Code are exempt. (r) Income received from the rental of any "low-income unit" as established under Section 42 of the Internal Revenue Code, including the low-income housing credit provided by IRC Section 42, to the extent that the collection of tax on rental income causes the "gross rent" defined by IRC Section 42 to exceed the income limitation for the low-income unit is exempt. This exemption also applies to income received from the rental of individual rental units subject to statutory or regulatory "low-income unit" rent restrictions similar to IRC Section 42 to the extent that the collection of tax from the tenant causes the rental receipts to exceed a rent restriction for the low-income unit. This subsection also applies to rent received by a person other than the owner or lessor of the low-income unit, including a broker. This subsection does not apply unless a taxpayer maintains the documentation to support the qualification of a unit as a low-income unit, the "gross rent" limitation for the unit and the rent received from that unit. (S) THE GROSS PROCEEDS OF SALES OR GROSS INCOME DERIVED FROM A COMMERCIAL LEASE IN WHICH A RECIPROCAL INSURER OR A CORPORATION LEASES REAL PROPERTY TO AN AFFILIATED CORPORATION. FOR THE PURPOSES OF THIS PARAGRAPH: (1) “AFFILIATED CORPORATION” MEANS A CORPORATION THAT MEETS ONE OF THE FOLLOWING CONDITIONS: (A) THE CORPORATION OWNS OR CONTROLS AT LEAST EIGHTY PER CENT OF THE LESSOR. (B) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED OR CONTROLLED BY THE LESSOR. 1573302.2 21 (C) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED OR CONTROLLED BY A CORPORATION THAT ALSO OWNS OR CONTROLS AT LEAST EIGHTY PER CENT OF THE LESSOR. (D) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED OR CONTROLLED BY A CORPORATION THAT IS AT LEAST EIGHTY PER CENT OWNED OR CONTROLLED BY A RECIPROCAL INSURER. (2) FOR THE PURPOSES OF SUBSECTION (1), OWNERSHIP AND CONTROL ARE DETERMINED BY REFERENCE TO THE VOTING SHARES OF A CORPORATION. (3) “RECIPROCAL INSURER” HAS THE SAME MEANING AS PRESCRIBED IN A.R.S. SECTION 20-762. Section 6. Section 8A-595 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-595. Collection of taxes when there is succession in and/or cessation of business. (a) In addition to any remedy provided elsewhere in this Town Code that may apply, the Tax Collector may apply the provisions of subsections (b) through (d) below concerning the collection of taxes when there is succession in and/or cessation of business. (b) The taxes imposed by this Chapter are a lien on the property of any person subject to this Chapter who sells his business or stock of goods, or quits his business, if the person fails to make a final return and payment of the tax within fifteen (15) days after selling or quitting his business. (c) Any person who purchases, or who acquires by foreclosure, by sale under trust deed or warranty deed in lieu of foreclosure, or by any other method, improved real property or a portion of improved real property for which the Privilege Tax imposed by this Chapter has not been paid shall be responsible for payment of such tax as a speculative builder or owner builder, as provided in Sections 8A-416 and 8A-417. (1) ANY PERSON WHO IS A CREDITOR OR AN AFFILIATE OF CREDITOR, WHO ACQUIRES IMPROVED REAL PROPERTY DIRECTLY OR INDIRECTLY FROM THE CREDITOR’S DEBTOR BY ANY MEANS SET FORTH IN THIS SUBSECTION, SHALL PAY THE TAX BASED ON THE AMOUNT RECEIVED BY THE CREDITOR OR ITS AFFILIATE IN A SUBSEQUENT SALE OF SUCH IMPROVED REAL PROPERTY TO A PARTY UNRELATED TO THE CREDITOR, REGARDLESS OF WHEN SUCH SUBSEQUENT SALE TAKES PLACE. SUCH TAX SHALL BE DUE IN THE MONTH FOLLOWING THE MONTH IN WHICH THE SALE OF THE IMPROVED REAL PROPERTY BY THE CREDITOR OR ITS AFFILIATE OCCURS. NOTWITHSTANDING THE FOREGOING, IF THE REAL PROPERTY MEETS THE DEFINITION OF PARTIALLY IMPROVED RESIDENTIAL REAL PROPERTY IN SECTION 8A-416(A)(4) AND ALL OF THE REQUIREMENTS OF SECTION 8A-416(B)(4) ARE MET BY THE 1573302.2 22 PARTIES TO THE SUBSEQUENT SALE TRANSACTION, THEN THE TAX SHALL NOT APPLY TO THE SUBSEQUENT SALE. (2) IN THE EVENT A CREDITOR OR ITS AFFILIATE USES THE ACQUIRED IMPROVED REAL PROPERTY FOR ANY BUSINESS PURPOSE, OTHER THAN OPERATING THE PROPERTY IN THE MANNER IN WHICH IT WAS OPERATED, OR WAS INTENDED TO BE OPERATED, BEFORE THE ACQUISITION OR IN ANY OTHER MANNER UNRELATED TO SELLING THE PROPERTY, THE TAX SHALL BE DUE. THE GROSS INCOME UPON WHICH THE TAX SHALL BE DETERMINED PURSUANT TO SECTIONS 8A-416 AND 8A-417 SHALL BE THE FAIR MARKET VALUE OF THE IMPROVED REAL PROPERTY AS OF THE DATE OF ACQUISITION. THE TAX SHALL BE DUE IN THE MONTH FOLLOWING THE MONTH IN WHICH SUCH FIRST BUSINESS USE OCCURS. WHEN APPLICABLE, THE CREDIT BID SHALL BE DEEMED TO BE THE FAIR MARKET VALUE OF THE PROPERTY AS OF THE DATE OF ACQUISITION. (3) ONCE THE SUBSEQUENT SALE BY THE CREDITOR OR ITS AFFILIATE HAS OCCURRED AND THE CREDITOR OR ITS AFFILIATE HAS PAID THE TAX DUE FROM IT PURSUANT TO THIS SUBSECTION, NEITHER THE CREDITOR NOR ITS AFFILIATE, NOR ANY FUTURE OWNER, SHALL BE LIABLE FOR ANY OUTSTANDING TAX, PENALTIES OR INTEREST THAT MAY CONTINUE TO BE DUE FROM THE DEBTOR BASED ON THE TRANSFER FROM THE DEBTOR TO THE CREDITOR OR ITS AFFILIATE. (4) IF THE TAX LIABILITY IMPOSED BY EITHER SECTION 8A-416 OR SECTION 8A-417 ON THE TRANSFER OF THE IMPROVED REAL PROPERTY TO THE CREDITOR OR ITS AFFILIATE, OR ANY PART THEREOF, IS PAID TO THE TAX COLLECTOR BY THE DEBTOR SUBSEQUENT TO PAYMENT OF THE TAX BY THE CREDITOR OR ITS AFFILIATE, THE AMOUNT SO PAID MAY CONSTITUTE A CREDIT, AS EQUITABLY DETERMINED BY THE TAX COLLECTOR IN GOOD FAITH, AGAINST THE TAX IMPOSED ON THE CREDITOR OR ITS AFFILIATE BY EITHER PARAGRAPH 1 OR PARAGRAPH 2 OF THIS SUBSECTION. (5) NOTWITHSTANDING ANYTHING IN THIS CHAPTER TO THE CONTRARY, IF A CREDITOR OR ITS AFFILIATE IS SUBJECT TO TAX AS DESCRIBED IN PARAGRAPH 1 OR PARAGRAPH 2 OF THIS SUBSECTION AND SUCH CREDITOR OR AFFILIATE HAS NOT PREVIOUSLY BEEN REQUIRED TO BE LICENSED, SUCH CREDITOR OR AFFILIATE SHALL BECOME LICENSED NO LATER THAN THE DATE ON WHICH THE TAX IS DUE. (d) A person's successors or assignees shall withhold from the purchase money an amount sufficient to cover the taxes required to be paid, and interest or penalties due and payable, until the former owner produces a receipt from the Tax Collector showing that all Town tax has been paid or a certificate stating that no amount is due as then shown by the records of the Tax Collector. The Tax Collector shall respond to a request from the 1573302.2 23 seller for a certificate within fifteen (15) days by either providing the certificate or a written notice stating why the certificate cannot be issued. (1) If a subsequent audit shows a deficiency arising before the sale of the business, the deficiency is an obligation of the seller and does not constitute a liability against a buyer who has received a certificate from the Tax Collector. (2) If the purchaser of a business or stock of goods fails to obtain a certificate as provided by this Section, he is personally liable for payment of the amount of taxes required to be paid by the former owner on account of the business so purchased, with interest and penalties accrued by the former owner or assignees. Section 7. Section 8A-660 of the Tax Code of the Town of Fountain Hills is amended to read: Sec. 8A-660. Use tax: exemptions. The storage or use in this Town of the following tangible personal property is exempt from the Use Tax imposed by this Article: (a) tangible personal property brought into the Town by an individual who was not a resident of the Town at the time the property was acquired for his own use, if the first actual use of such property was outside the Town, unless such property is used in conducting a business in this Town. (b) tangible personal property, the value of which does not exceed the amount of one thousand dollars ($1,000) per item, acquired by an individual outside the limits of the Town for his personal use and enjoyment. (c) charges for delivery, installation, or other customer services, as prescribed by Regulation. (d) charges for repair services, as prescribed by Regulation. (e) separately itemized charges for warranty, maintenance, and service contracts. (f) prosthetics. (g) income-producing capital equipment. (h) rental equipment and rental supplies. (i) mining and metallurgical supplies. (j) motor vehicle fuel and use fuel which are used upon the highways of this State and upon which a tax has been imposed under the provisions of Article I or II, Chapter 16, Title 28, Arizona Revised Statutes. (k) tangible personal property purchased by a construction contractor, but not an owner- builder, when such person holds a valid Privilege License for engaging or continuing in the business of construction contracting, and where the property acquired is incorporated into any structure or improvement to real property in fulfillment of a construction contract. (l) sales of motor vehicles to nonresidents of this State for use outside this State if the vendor ships or delivers the motor vehicle to a destination outside this State. (m) tangible personal property which directly enters into and becomes an ingredient or component part of a product sold in the regular course of the business of job printing, manufacturing, or publication of newspapers, magazines or other periodicals. Tangible personal property which is consumed or used up in a manufacturing, job printing, 1573302.2 24 publishing, or production process is not an ingredient nor component part of a product. (n) rental, leasing, or licensing for use of film, tape, or slides by a theater or other person taxed under Section 8A-410, or by a radio station, television station, or subscription television system. (o) food served to patrons for a consideration by any person engaged in a business properly licensed and taxed under Section 8A-455, but not food consumed by owners, agents, or employees of such business. (p) tangible personal property acquired by a qualifying hospital, qualifying community health center or a qualifying health care organization, except when the property is in fact used in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512. (q) food purchased with food stamps provided through the food stamp program established by the Food Stamp Act of 1977 (P.L. 95-113; 91 Stat. 958.7 U.S.C. Section 2011 et seq.) or purchased with food instruments issued under Section 17 of the Child Nutrition Act (P.L. 95-627; 92 Stat. 3603; and P.L. 99-669; Section 4302; 42 United States Code Section 1786). (r) (Reserved) (1) (Reserved) (2) (Reserved) (3) (Reserved) (4) (Reserved) (s) groundwater measuring devices required by A.R.S. Section 45-604. (t) (Reserved) (u) aircraft acquired for use outside the State, as prescribed by Regulation. (v) sales of food products by producers as provided for by A.R.S. Sections 3-561, 3-562 and 3-563. (w) (Reserved) (x) (Reserved) (y) (Reserved) (z) tangible personal property used or stored by this Town. (aa) tangible personal property used in remediation contracting as defined in Section 8A- 100 and Regulation 8S-100.5. (bb) materials that are purchased by or for publicly funded libraries including school district libraries, charter school libraries, community college libraries, state university libraries or federal, state, county or municipal libraries for use by the public as follows: (1) printed or photographic materials. (2) electronic or digital media materials. (cc) food, beverages, condiments and accessories used for serving food and beverages by a commercial airline, as defined in A.R.S. § 42-5061(A)(49), that serves the food and beverages to its passengers, without additional charge, for consumption in flight. For the purposes of this subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (dd) wireless telecommunication equipment that is held for sale or transfer to a customer 1573302.2 25 as an inducement to enter into or continue a contract for telecommunication services that are taxable under Section 8A-470. (ee) (Reserved) (ff) alternative fuel as defined in A.R.S. § 1-215, by a used oil fuel burner who has received a Department of Environmental Quality permit to burn used oil or used oil fuel under A.R.S. § 49-426 or § 49-480. (gg) food, beverages, condiments and accessories purchased by or for a public educational entity, pursuant to any of the provisions of Title 15, Arizona Revised Statutes; to the extent such items are to be prepared or served to individuals for consumption on the premises of a public educational entity during school hours. For the purposes of this subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (hh) personal hygiene items purchased by a person engaged in the business of and subject to tax under Section 8A-444 of this code if the tangible personal property is furnished without additional charge to and intended to be consumed by the person during his occupancy. (ii) the diversion of gas from a pipeline by a person engaged in the business of operating a natural or artificial gas pipeline, for the sole purpose of fueling compressor equipment to pressurize the pipeline, is not a sale of the gas to the operator of the pipeline. (jj) food, beverages, condiments and accessories purchased by or for a nonprofit charitable organization that has qualified as an exempt organization under 26 U.S.C Section 501(c)(3) and regularly serves meals to the needy and indigent on a continuing basis at no cost. For the purposes of this subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (kk) sales of motor vehicles that use alternative fuel if such vehicle was manufactured as a diesel fuel vehicle and converted to operate on alternative fuel and sales of equipment that is installed in a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel, as defined in A.R.S. § 1-215. (LL) THE STORAGE, USE OR CONSUMPTION OF TANGIBLE PERSONAL PROPERTY IN THE CITY OR TOWN BY A SCHOOL DISTRICT OR CHARTER SCHOOL. 1541146.2 ORDINANCE NO. 11-12 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING THE “2010-11 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS” BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE; PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR VIOLATIONS. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That certain document known as the “2010-11 Amendments to the Tax Code of the Town of Fountain Hills” (the “2010-11 Amendments”), three copies of which are on file in the office of the Town Clerk of the Town of Fountain Hills, Arizona, which document was made a public record by Resolution No. 2011-33 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 2. Any person found guilty of violating any provision of the 2010-11 Amendments shall be guilty of a class one misdemeanor. Each day that a violation continues shall be a separate offense punishable as herein above described. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or the 2010-11 Amendments 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 of this Ordinance or the 2010-11 Amendments. SECTION 4. The provisions of Sections 1 of the 2010-11 Amendments shall be effective from and after June 1, 2011. The provisions of Sections 2 through 5 of the 2010-11 Amendments shall be effective from and after July 29, 2010. The provisions of Section 6 of the 2010-11 Amendments shall be effective from and after May 1, 2010. The provisions of Section 7 of the 2010-11 Amendments shall be effective from and after September 30, 2009. SECTION 5. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Ordinance. [SIGNATURES ON FOLLOWING PAGE] 1541146.2 PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, September 15, 2011. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Jay T. Schlum, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Julie Ghetti, Interim Town Manager Andrew J. McGuire, Town Attorney 1569676.1 RESOLUTION NO. 2011-17 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE TRANSFER OF INVESTMENT FUNDS FROM THE ARIZONA STATE TREASURER’S LOCAL GOVERNMENT INVESTMENT POOL TO PFM ASSET MANAGEMENT. WHEREAS, pursuant to the Town of Fountain Hills Investment/Cash Management Policy, Amended and Restated December 2, 2010 (the “Investment Policy”), the Mayor and Town Council (the “Town Council”) may invest reserve funds of the Town of Fountain Hills (the “Town”) in certain eligible investments, as set forth in Subsection 8-2 of the Investment Policy (“Eligible Investments”); and WHEREAS, the Town has historically invested certain reserve funds with the Arizona State Treasurer’s Local Government Investment Pool (“LGIP”); and WHEREAS, on May 19, 2011, the Town entered into a professional services agreement with PFM Asset Management, LLC (“PFM”) to provide the Town with professional investment management services; and WHEREAS, the Town Council desires to approve the transfer of $15,000,000 from the LGIP to PFM for the purpose of investing in Eligible Investments at an improved rate of return over the LGIP. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The transfer of $15,000,000 from the Arizona State Treasurer’s Local Government Investment Pool to PFM Asset Management for the purpose of investment in Eligible Investments is hereby approved. SECTION 3. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. [SIGNATURES ON FOLLOWING PAGE] 1548706.1 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, September 15, 2011. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Jay T. Schlum, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Julie Ghetti, Interim Town Manager Andrew J. McGuire, Town Attorney