HomeMy WebLinkAbout100819p
NOTICE OF THE
REGULAR SESSION OF
THE FOUNTAIN HILLS TOWN COUNCIL
TIME: 6:30 P.M.
WHEN: THURSDAY, AUGUST 19, 2010
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
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
Vice Mayor Dennis Brown Councilmember Tait D. Elkie
Councilmember Dennis Contino Councilmember Cassie Hansen
Councilmember Ginny Dickey Councilmember Henry Leger
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CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay T. Schlum
INVOCATION – Leann Gratz from Church of the Ascension
ROLL CALL – Mayor Jay T. Schlum
MAYOR’S REPORT
(i) None.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
(i) Introduction of Paul Mood, the Town’s new Development Services Director.
(ii) Presentation by Deputy Town Manager/Finance Director Julie Ghetti regarding the
Town of Fountain Hills 4th Quarter Budget Report for the period ending June 30,
2010.
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
1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from
August 5, 2010, and the TOWN COUNCIL SUBCOMMITTEE MEETING MINUTES from
August 9, 2010.
2. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Juan Gonzalez Torres, (F.H.I. San Juan LLC, DBA Senor Taco) located at 16948 East Shea Blvd. Ste. 105, Fountain Hills, AZ. This is for a series 12 license (Restaurant).
3. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Carolyn M. Redondo, (Sofrita LLC, DBA Sofrita) located at 16848 Avenue of the Fountains, Fountain Hills, AZ. This is for a series 12 license (Restaurant).
4. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Sharon Elaine Morgan (Fountain Hills Sister Cities Corporation) for the purpose of a
fundraising event (Carnival Costume Ball), located 13001 N. La Montana Drive, Fountain
Hills, AZ, and scheduled to be held on March 5, 2011, from 5:00 p.m. to 10:00 p.m.
5. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of a fundraising event (historical society dinner meeting), located at
13001 N. La Montana Drive, Fountain Hills, AZ, scheduled to be held on January 19, 2011,
from 6:00 p.m. to 10:00 p.m.
6. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of an event (Annual Hall of Fame Induction Dinner), located at 13001
Z:\Council Packets\2010\R8-19-10\100819A.docx Last printed 8/12/2010 8:21 AM Page 3 of 4
N. La Montana Drive, Fountain Hills, AZ, scheduled to be held on March 30, 2011, from 6:00
p.m. to 10:00 p.m.
7. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of an event (historical society dinner meeting), located at 13001 N.
La Montana Drive, Fountain Hills, AZ, scheduled to be held on May 18, 2011, from 6:00 p.m.
to 10:00 p.m.
8. CONSIDERATION of SPECIAL EVENTS being coordinated by the Town of Fountain Hills
Community Services Department: the MOVIE IN THE PARK (September 11, 2010);
BALLET UNDER THE STARS (September 23, 2010); the HOMECOMING PARADE
(October 6, 2010); and the HOMECOMING TAILGATE PARTY (October 8, 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.
9. CONSIDERATION of RESOLUTION 2010-32, granting an 8’ wide POWER
DISTRIBUTION EASEMENT to Salt River Project (SRP), at 17235 E. Rand Drive (the
Town-owned Community Theater property). EAA 2010-02
REGULAR AGENDA
10. CONSIDERATION of APPOINTING three citizens to fill vacancies on the Strategic
Planning Advisory Commission (SPAC), each for a 2-year term expiring on June 30, 2012.
11. PRESENTATION WITH POSSIBLE DIRECTION TO STAFF regarding the River of
Time Museum construction of a 16’ x 25’ x 18’ x 27’ (442 Square feet) trapezoid
configuration cable tension shade structure with an entry height of 9’ on Town property
adjacent to the museum. Costs to be paid for by the River of Time Museum through privately
donated funds and AUTHORIZING the Town Manager to execute any documents necessary
to carry out the Council’s direction.
12. PUBLIC HEARING regarding an endorsement by the Town Council of Fountain Hills for a
BINGO LICENSE for the American Legion Post 58, located at 16837 E. Parkview Avenue,
Fountain Hills, AZ.
13. CONSIDERATION of an endorsement by the Town Council of Fountain Hills for a BINGO
LICENSE for the American Legion Post 58, located at 16837 E. Parkview Avenue, Fountain
Hills, AZ.
14. CONSIDERATION of RESOLUTION 2010-26, an Intergovernmental Agreement with the
Arizona Department of Transportation (ADOT) for a Highway Safety Improvement Program
(HISP) grant for various traffic signal safety upgrades, for $26,580 (100% Federal Aid
funding, for materials).
15. CONSIDERATION of RESOLUTION 2010-29, an Intergovernmental Agreement with the
Arizona Department of Transportation for Project No.: ARRA-CM-FTH-0(006)A; Bike
Lanes/Pavement Preservation, Shea Boulevard: from Fountain Hills Boulevard to Saguaro
Boulevard, funded by ARRA/Recovery Act Funds in the amount of $1,081,614.00, Federal
STP Funds in the amount of $440,000.00, as well as Town matching funds in the amount of
$115,095.72, for an estimated project total of $1,636,709.72; providing for the termination of
Intergovernmental Agreement (IGA)# JPA 02-191, which was approved May 1, 2003; and
transferring the remaining funds to Project No. ARRA-CM-FTH-0(006)A.
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16. CONSIDERATION of RESOLUTION 2010-31, regarding Amendment No. One to the
Town’s existing Intergovernmental Agreement with Arizona Department of Transportation
(ADOT) - IGA/JPA 09-0521, reducing the Federal STP Funds to $1,855,042 and Local Funds
to $112,130 for the Shea Climbing Lane project (Shea Boulevard: from Palisades Boulevard
to Fountain Hills Boulevard).
17. CONSIDERATION of RESOLUTION 2010-27, amending the existing “Village Bazaar
Shared Parking Agreement” for the purpose of allowing an increase of restaurant space within
the plaza now known as Plaza Fountainside/Plaza Waterfront. Case #DA 10-01
18. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to a MUNICIPAL
REGIONAL SUMMIT.
19. CONSIDERATION WITH POSSIBLE DIRECTION to the Town Manager to conduct a
FEASIBILITY STUDY into possible formation of a Fountain Hills Public Safety District.
20. DISCUSSION WITH POSSIBLE ACTION relating to PROPOSED RESOLUTIONS by the 2010 Resolutions Committee to be considered for adoption at their Thursday, August 26, 2010 business meeting, held during the League of Arizona Cities and Towns Annual Conference.
21. COUNCIL DISCUSSION/DIRECTION to the Town Manager.
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.
22. SUMMARY of COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Town Manager.
23. ADJOURNMENT.
DATED this 12th day of August 2010.
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.
NOTICE OF THE
REGULAR SESSION OF
THE FOUNTAIN HILLS TOWN COUNCIL
TIME: 6:30 P.M.
WHEN: THURSDAY, AUGUST 19, 2010
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
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
Vice Mayor Dennis Brown Councilmember Tait D. Elkie
Councilmember Dennis Contino Councilmember Cassie Hansen
Councilmember Ginny Dickey Councilmember Henry Leger
Z:\Council Packets\2010\R8-19-10\100819A.docx Last printed 8/12/2010 8:21 AM Page 2 of 4
CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay T. Schlum
INVOCATION – Leann Gratz from Church of the Ascension
ROLL CALL – Mayor Jay T. Schlum
MAYOR’S REPORT
(i) None.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
(i) Introduction of Paul Mood, the Town’s new Development Services Director.
(ii) Presentation by Deputy Town Manager/Finance Director Julie Ghetti regarding the
Town of Fountain Hills 4th Quarter Budget Report for the period ending June 30,
2010.
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
1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from
August 5, 2010, and the TOWN COUNCIL SUBCOMMITTEE MEETING MINUTES from
August 9, 2010.
2. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Juan Gonzalez Torres, (F.H.I. San Juan LLC, DBA Senor Taco) located at 16948 East Shea Blvd. Ste. 105, Fountain Hills, AZ. This is for a series 12 license (Restaurant).
3. CONSIDERATION of approving a LIQUOR LICENSE APPLICATION submitted by Carolyn M. Redondo, (Sofrita LLC, DBA Sofrita) located at 16848 Avenue of the Fountains, Fountain Hills, AZ. This is for a series 12 license (Restaurant).
4. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Sharon Elaine Morgan (Fountain Hills Sister Cities Corporation) for the purpose of a
fundraising event (Carnival Costume Ball), located 13001 N. La Montana Drive, Fountain
Hills, AZ, and scheduled to be held on March 5, 2011, from 5:00 p.m. to 10:00 p.m.
5. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of a fundraising event (historical society dinner meeting), located at
13001 N. La Montana Drive, Fountain Hills, AZ, scheduled to be held on January 19, 2011,
from 6:00 p.m. to 10:00 p.m.
6. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of an event (Annual Hall of Fame Induction Dinner), located at 13001
Z:\Council Packets\2010\R8-19-10\100819A.docx Last printed 8/12/2010 8:21 AM Page 3 of 4
N. La Montana Drive, Fountain Hills, AZ, scheduled to be held on March 30, 2011, from 6:00
p.m. to 10:00 p.m.
7. CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE APPLICATION submitted
by Jerold Lane Miles (Fountain Hills and Lower Verde Valley Museum and Historical
Society) for the purpose of an event (historical society dinner meeting), located at 13001 N.
La Montana Drive, Fountain Hills, AZ, scheduled to be held on May 18, 2011, from 6:00 p.m.
to 10:00 p.m.
8. CONSIDERATION of SPECIAL EVENTS being coordinated by the Town of Fountain Hills
Community Services Department: the MOVIE IN THE PARK (September 11, 2010);
BALLET UNDER THE STARS (September 23, 2010); the HOMECOMING PARADE
(October 6, 2010); and the HOMECOMING TAILGATE PARTY (October 8, 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.
9. CONSIDERATION of RESOLUTION 2010-32, granting an 8’ wide POWER
DISTRIBUTION EASEMENT to Salt River Project (SRP), at 17235 E. Rand Drive (the
Town-owned Community Theater property). EAA 2010-02
REGULAR AGENDA
10. CONSIDERATION of APPOINTING three citizens to fill vacancies on the Strategic
Planning Advisory Commission (SPAC), each for a 2-year term expiring on June 30, 2012.
11. PRESENTATION WITH POSSIBLE DIRECTION TO STAFF regarding the River of
Time Museum construction of a 16’ x 25’ x 18’ x 27’ (442 Square feet) trapezoid
configuration cable tension shade structure with an entry height of 9’ on Town property
adjacent to the museum. Costs to be paid for by the River of Time Museum through privately
donated funds and AUTHORIZING the Town Manager to execute any documents necessary
to carry out the Council’s direction.
12. PUBLIC HEARING regarding an endorsement by the Town Council of Fountain Hills for a
BINGO LICENSE for the American Legion Post 58, located at 16837 E. Parkview Avenue,
Fountain Hills, AZ.
13. CONSIDERATION of an endorsement by the Town Council of Fountain Hills for a BINGO
LICENSE for the American Legion Post 58, located at 16837 E. Parkview Avenue, Fountain
Hills, AZ.
14. CONSIDERATION of RESOLUTION 2010-26, an Intergovernmental Agreement with the
Arizona Department of Transportation (ADOT) for a Highway Safety Improvement Program
(HISP) grant for various traffic signal safety upgrades, for $26,580 (100% Federal Aid
funding, for materials).
15. CONSIDERATION of RESOLUTION 2010-29, an Intergovernmental Agreement with the
Arizona Department of Transportation for Project No.: ARRA-CM-FTH-0(006)A; Bike
Lanes/Pavement Preservation, Shea Boulevard: from Fountain Hills Boulevard to Saguaro
Boulevard, funded by ARRA/Recovery Act Funds in the amount of $1,081,614.00, Federal
STP Funds in the amount of $440,000.00, as well as Town matching funds in the amount of
$115,095.72, for an estimated project total of $1,636,709.72; providing for the termination of
Intergovernmental Agreement (IGA)# JPA 02-191, which was approved May 1, 2003; and
transferring the remaining funds to Project No. ARRA-CM-FTH-0(006)A.
Z:\Council Packets\2010\R8-19-10\100819A.docx Last printed 8/12/2010 8:21 AM Page 4 of 4
16. CONSIDERATION of RESOLUTION 2010-31, regarding Amendment No. One to the
Town’s existing Intergovernmental Agreement with Arizona Department of Transportation
(ADOT) - IGA/JPA 09-0521, reducing the Federal STP Funds to $1,855,042 and Local Funds
to $112,130 for the Shea Climbing Lane project (Shea Boulevard: from Palisades Boulevard
to Fountain Hills Boulevard).
17. CONSIDERATION of RESOLUTION 2010-27, amending the existing “Village Bazaar
Shared Parking Agreement” for the purpose of allowing an increase of restaurant space within
the plaza now known as Plaza Fountainside/Plaza Waterfront. Case #DA 10-01
18. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to a MUNICIPAL
REGIONAL SUMMIT.
19. CONSIDERATION WITH POSSIBLE DIRECTION to the Town Manager to conduct a
FEASIBILITY STUDY into possible formation of a Fountain Hills Public Safety District.
20. DISCUSSION WITH POSSIBLE ACTION relating to PROPOSED RESOLUTIONS by the 2010 Resolutions Committee to be considered for adoption at their Thursday, August 26, 2010 business meeting, held during the League of Arizona Cities and Towns Annual Conference.
21. COUNCIL DISCUSSION/DIRECTION to the Town Manager.
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.
22. SUMMARY of COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Town Manager.
23. ADJOURNMENT.
DATED this 12th day of August 2010.
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.
Fiscal Year 2009-
10 Report*
Prepared by:
Julie A. Ghetti, MPA, CPA
August 19, 2010*unaudited
August 19, 2010
Fund Budget Actual
Overage/
(Under)
General $14,696,229 $13,437,135 $(1,259,094)
HURF $1,600,545 $1,557,823 $(42,722)
Downtown/Excise $295,859 $292,000 $(3,859)
Grants $2,595,850 $224,688 $(2,352,162)
Debt Service $3,214,041 $3,281,048 $67,007
Development Fees $145,470 $245,806 $100,336
Capital Projects $10,528,907 $804,919 $(9,723,988)
TOTAL $33,076,901 $19,843,419 $(13,214,482)
General Fund variance due to:
Local sales tax revenues $584K
Vehicle license tax $132K
Building permit fees $151K
State sales tax $97K
Construction grants not received $2.3M
Capital Projects variance due to:
Saguaro mill & overlay $4.5M
Stimulus funding not rec’d $5.2M
August 19, 2010
August 19, 2010
August 19, 2010
57% of
General
Fund
Revenues
August 19, 2010
Fund Budget*Actual
Overage/
(Under)
General $13,652,394 $13,289,032 $(363,362)
HURF $1,600,545 $1,334,461 $(266,084)
Downtown/Excise $382,675 $112,792 $(269,883)
Grants $2,629,350 $252,306 $(2,377,044)
Debt Service $3,278,613 $3,306,698 $28,085
Development Fees $142,400 $133,794 $(8,606)
Capital Projects $12,725,434 $1,515,761 $(11,209,673)
TOTAL $34,411,411 $19,944,844 $(14,466,567)
*As revised
General Fund variance due to:
budget reductions, including layoffs
Construction grants not received $2.3M
Capital Projects variance due to:
Saguaro mill & overlay $4.5M
Shea climbing lane paid
with stimulus funds $4.3M
Fire station relocation grant
declined $1.5M
August 19, 2010
August 19, 2010
TOTAL $13.3M
August 19, 2010
Expenditures by
Department
FY2009-10
Budget*
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
Police $2.8M $2.8M 99.6% $2.8M
Fire & Emergency
Medical Services
$3.1M $3.0M 99.6% $3.0M
Development Services $2.2M $2.1M 97.0% $2.1M
Community Services $2.5M $2.4M 94.5% $2.4M
Mayor & Town
Council
$0.07M $0.06M 92.3% $0.06M
Administrative
Services
$2.5M $2.5M 96.9% $2.5M
TOTAL $13.7M $13.3M 97.8% $13.3M
August 19, 2010
FY2009-10
Budget
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
Revenues $1,600,545 $1,557,823 97.3% $1,557,823
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Administration $442,380 $403,758 92% $404,000
Open Space $154,295 $99,922 65% $100,000
Pavement Management $409,308 $299,382 73% $300,000
Street Signs $91,670 $77,382 84% $77,500
Street Sweeping $119,696 $147,181 123% $147,181
Traffic Signals $195,843 $167,188 85% $167,188
Vehicle Maintenance $147,780 $144,813 98% $144,813
TOTAL $1,560,972 $1,339,737 86% $1,340,682
August 19, 2010
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Revenues $295,859 $292,000 99% $292,000
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Salaries & Benefits $45,739 $47,541 104% $47,541
Contractual Services $79,035 $45,424 57% $45,424
Services & Supplies $7,901 $6,060 77% $6,060
Transfers $250,000 $0 0% $15,000
TOTAL $382,675 $99,025 26% $114,025
August 19, 2010
Category FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Law Enforcement $13,767 $8,805 64% $8,805
Fire & Emergency $3,153 $2,009 64% $2,009
Streets $74,316 $181,564 29% $181,564
Parks & Recreation $14,664 $22,011 151% $22,011
Open Space $9,390 $11,285 121% $11,285
Library & Museum $1,740 $3,284 189% $3,284
General Government $28,440 $16,619 59% $16,619
TOTAL $145,470 $245,577 169% $245,577
August 19, 2010
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Law Enforcement $0 $384 % $384
Fire & Emergency $0 $85 % $85
Streets (transfer to
CIP)
$142,400 $143,466 101% $143,466
Parks & Recreation $0 $1,151 % $1,151
Open Space $0 $682 % $682
Library & Museum $0 $128 % $128
General Government $0 $767 % $767
TOTAL $142,400 $146,663 101% $146,663
August 19, 2010
Revenue FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Construction Sales Tax $510,000 $475,866 94% $475,866
Stimulus Funding $2,537,717 $0 0% $0
Bond Proceeds $4,500,000 $0 0% $0
Transfers $2,981,190 $309,321 11% $309,321
TOTAL $10,528,907 $785,187 8% $785,187
Expenditures FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Downtown Improvements $250,000 $15,000 6% $15,000
Street Projects $10,177,221 $1,018,559 10% $1,018,559
Traffic Signals $142,400 $129,531 91% $129,531
Drainage $86,000 $37 0% $37
General Government $100,000 $15,692 16% $15,692
Fire & Emergency $1,536,103 $145,850 10% $145,850
Contingency $433,710 $255,269 59% $255,269
TOTAL $12,725,434 $1,579,938 13% $1,579,938
August 19, 2010
General Fund $6,639,088
HURF $393,024
Special Revenue Funds $0
Economic Dev/Downtown Fund $1,690,517
Public Art $1,507
Development Fees:
Law Enforcement $195,343
Fire & Emergency $38,323
Streets $17,669
Parks & Recreation ($9,719)
Open Space $1,640,246
Library/Museum $39,876
General Government $515,463
Debt Service $1,200,858
Capital Projects $9,897,857
Vehicle Replacement Fund $482,938
Total $22,742,990
GF surplus of $100K transferred to Capital Project Fund
August 19, 2010
1
TOWN OF FOUNTAIN HILLS
BUDGET REPORT – JUNE 2010
2
General Fund Revenues
3
General Fund Revenues
For the Fiscal Year ending June 30, 2010, General Fund Revenues ended up at 92% of budget as
summarized below:
FY2009-10
Budget
FY2009-10
YTD
YTD to
Budget
Revised
Estimate
General Fund $14,696,229 $13,546,600 92% $13,546,600
The first four revenues in the chart below represent 91% of General Fund revenues, and as such, provide key
indicators of the Town’s overall economic condition and performance. Sales tax collections, both local and
state, were received $570,400 less than budgeted due to the protracted economic recession. The recession
has affected residential construction with building permit revenues $150,776 less than projected. In addition,
vehicle license taxes and interest income combine for a total of $250,674 shortfall. Recreation, Community
Center rental and franchise fees were also down by $165,000; these shortfalls resulted in significant
decreases in expenditures including staff reductions. The proactive measures and support of the Town
Council have resulted in a positive fund balance in the General Fund for FY09-10 between $100,000 to
$200,000 (subject to the final audit in September). Per the Town’s financial policies this surplus will be
transferred to the Capital Projects Fund.
4
State Shared Revenues
State Shared Revenues represent a distribution of the State income, sales and vehicle licenses taxes returned
to the Town based on its population in relation to the total population of all incorporated cities and towns.
The income tax funds are distributed from tax collections from two years prior to the fiscal year in which the
Town receives the funds. Sales taxes are distributed to cities and towns three months after the actual sales
activity occurs. These revenues are distributed monthly through a distribution from the State Treasurer’s
Office. The fiscal year revenues from these categories total $5,777,159 which is $721,292 or 11% less than
last year’s distribution.
FY2009-10
Budget
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
State Income Tax $3,163,367 $3,162,174 100% $3,162,174
State Sales Tax $1,894,032 $1,797,355 94.7% $1,797,355
Vehicle License Fees $953,455 $821,321 86.1% $821,321
Local Sales Tax (2.6%)
Retail: A retail sales tax of 2.6% is collected for the sale of all tangible personal property including grocery,
clothing, home and garden, autos and other related retail activity. This revenue source is sensitive to changes
in the economy and can fluctuate from one fiscal year to another. This fiscal year revenues for this category
total $3,555,974, which is $131,435 or 3.6% less than the same time period last fiscal year.
Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. This fiscal year revenues
for this category total $509,624, which is slightly more than the same time period last fiscal year (3.3%).
Communication/Utilities/Transportation: Utilities such as Chaparral City Water and Qwest are taxed at a
rate of 2.6% in the Town as well as cellular phone charges. Through the end of this fiscal year revenues for
this category total $1,424,827, which is $113,092 or 8.6% more than the same time period last fiscal year.
Construction Contracting: This revenue is generated from the 2.6% tax on new home and business
construction as well as improvements to real property. Like retail sales tax, this revenue source is considered
to be volatile as it is strongly impacted by changes in the economy. The largest sources of revenues in this
category come from residential homebuilders. This fiscal year revenues for this category total $538,551,
which is $875,689 or 38% less than the same time period last fiscal year (this includes refunds to a
developer). 85% of this revenue is dedicated to the Capital Projects Fund for future appropriation.
FY2009-10
Budget
FY2009-10
YTD
YTD to
Budget
Year End
Estimate
Local Sales Tax $6,628,911 $6,158,880 92.9% $6,158,880
5
Local sales tax makes up 47% of General Fund
revenues; for the year ending June 30, 2010
collections were $7.6M for all funds ($6.2 in the
General Fund). Retail and restaurant/bar activities
represent 54% of total collections;
telecommunications and utilities represent another
19%. Construction revenues collected so far this
fiscal year total $538K, which is 38% less than
last fiscal year. Retail sales tax collections
decreased by 3.6% over the same period last year;
restaurant/bar collections are at the same level as
the same period last year.
Building Permit Revenue
Revenues in this category include both commercial and residential permitting activity with the majority of
revenues coming from residential activity. This fiscal year, revenues for this category total $178,944 or
54.2% of the annual budget, which is $115,512 or 40% less than the same time period last fiscal year.
Housing starts for the fiscal period (XX single family, X multi family and XX commercial) remained level
with the prior fiscal period with one less commercial permit issued.
FY2009-10
Budget
FY2009-10
YTD
YTD to
Budget
Year End
Estimate
Building Permit Fees $330,120 $178,944 54.2% $178,944
Court Revenue
This category summarizes several revenue funds collected by the court. The court generates various revenues
through fines, sanctions and court orders. These fines include criminal, civil, Town code violations and
diversion fees for defensive driving school attendees. Reimbursement fees for required background checks,
incarceration costs, and Public Defender costs are also collected by the court and included in this category.
This fiscal year, revenues for this category total $260,140, which is $59,627 less than last year’s same fiscal
period.
FY2009-10
Budget
FY2009-10
YTD
YTD to
Budget
Year End
Estimate
Court Fines & Fees $239,292 $260,140 108.7% $260,140
6
License Revenue
Revenues in this category include both business and animal licensing activity with the majority of revenues
coming from business licenses. This fiscal year, revenues for this category total $149,052 or 92% of the
annual budget and $4,611 or 3.0% less than the same time period last fiscal year. While business license
renewals and new applications are down, the number of animal licenses has increased by 9% over the last
year.
FY2009-10
Budget
FY2009-10
YTD
YTD to
Budget
Year End
Estimate
Business License Fees $122,715 $99,870 81.4% $99,870
Animal License Fees $39,505 $49,182 124.5% $49,182
7
General Fund Expenditures
8
General Fund Expenditures
The General Fund accounts for most of the day to day operations of the Town, including Fire Department,
Law Enforcement, Public Works, Community Services, Development Services, Court, Council and
Administrative functions. At year end 97.8% of the revised budget was expended (estimated expenditures
was revised downward October 2009 to reflect lower revenues).
Expenditures by
Category
FY2009-10
Budget*
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
Salaries & Benefits $4.5M $4.4M 98.8% $4.4M
Contractual Services $7.3M $7.1M 98.3% $7.1M
Services & Supplies $1.3M $1.2M 90.1% $1.2M
Transfers to Other
Funds
$0.6M $0.6M 98.7% $0.6M
TOTAL $13.7M $13.3M 97.2% $13.3M
*revised budget
Salaries and benefits, which represent 33% of the total General Fund operating budget ended the fiscal
year at 99% of the revised budget. A cumulative savings in personnel costs is estimated at $150,000 as
a result of significant changes in personnel that were made in November and April. The personnel
changes were both a result of decreased workload and a restructuring of the organization. Two
department directors retired (Public Works and Planning & Zoning); as a result the two departments
have now been combined into the Development Services Department and recruitment has begun for a
Professional Engineer to head up the new department. Additionally, the Community Center and Parks
& Recreation Departments were combined into the Community Services Department under the direction
of the Parks & Recreation Director (the Community Center Director position was eliminated).
Contractual services represents 54% of the General Fund budget and includes contracts for law
enforcement (Maricopa County Sheriff’s Office) and fire and emergency medical services (Rural
Metro). The Town utilizes contracts for specialized or one-time services that do not require the addition
of full time staff. The savings realized include a reduction in the scope for sales tax auditing services,
cancellation of the bond election for Saguaro Boulevard and savings on median maintenance.
Services and Supplies, which represents 9% of the total General Fund operating budget, ended at 90%
of the revised budget and includes items such as utilities, maintenance and repair, office supplies,
insurance, software, etc. The savings realized includes the deferment of any additional software until at
least next fiscal year as long as the economy recovers.
Transfers include debt service payment for the Community Center that is transferred to the Debt Service
Fund for the semi-annual payment and transfers to the Vehicle Replacement Fund (VRF) for future
scheduled replacement of vehicles and contingency.
All of the cuts implemented this year were aimed at bringing into balance the revenues and expenditures
with the goal of having a surplus at the end of the fiscal year; subject to any year-end audit adjustments
the General Fund surplus is projected to be between $100,000 and $200,000, which will be transferred
to the Capital Projects Fund.
9
Department highlights:
Expenditures by
Department
FY2009-10
Budget*
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
Police $2.8M $2.8M 99.6% $2.8M
Fire & Emergency
Medical Services
$3.1M $3.0M 99.6% $3.0M
Development Services $2.2M $2.1M 97.0% $2.1M
Community Services $2.5M $2.4M 94.5% $2.4M
Mayor & Town
Council
$0.07M $0.06M 92.3% $0.06M
Administrative
Services
$2.5M $2.5M 96.9% $2.5M
TOTAL $13.7M $13.3M 97.8% $13.3M
*Revised budget
Law Enforcement represents 21% of the General Fund operating budget and is at 100% of the budget at
the end of the year. Law Enforcement also includes costs for jails incarcerate fees, which are costs for
holding individuals at the jails and billed by Maricopa County. The Town has a contract with Maricopa
County for animal control and shelter services that is included within the Law Enforcement budget.
Fire & Emergency Medical Services represents 23% of the General Fund operating budget and is at
100% of the budget at the end of the fiscal year. In addition to the contract with Rural Metro the
department is also responsible for maintenance of the fleet, fire stations and equipment.
Development Services includes programs such as engineering associated with public works,
engineering, traffic and capital projects, open space maintenance, stormwater management, and facilities
maintenance. Savings in this department was due to reduction in staff and level of service in custodial
services and general maintenance. Other programs included in Development Services are Planning,
Zoning, Code Enforcement, Planning, Environmental, Building Safety, and Mapping & Graphics.
10
Community Services includes the Town’s park system (Fountain Park, Golden Eagle Park, Four Peaks
Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and
seniors. The Community Center serves the community as a meeting or special event location as well as
daytime activities for Seniors. This department is at 94.5% of the annual budget including the annual
debt service payment ($387,000) transferred to the Debt Service Fund in July, 2009 to cover the semi-
annual payment in December.
Administrative includes the Town Council, Municipal Court, Town Clerk, Town Manager, Finance,
Human Resources, Volunteer Program, Economic Development, Information Technology and Customer
Service and represents 19% of the General Fund operating budget. Savings in this department was
realized through reduction in staff, deferral of software enhancement programs, reduced scope of work
for sales tax audits, reduction in intergovernmental relations, Community Center marketing, elections
and legal fees.
11
Other Funds:
Streets
Excise Tax (Economic
Development)
Special Revenue (Grants)
Development Fees
Capital Projects
12
Highway User Revenue Fund (HURF) – Streets
FY2009-10
Budget
FY2009-10
YTD
YTD to
Annual Budget
Year End
Estimate
Revenues $1,600,545 $1,557,823 97.3% $1,557,823
This fund supports most of the Town’s street and traffic operations and is managed by the Development
Services Department. The fund is primarily supported by the State Highway User Revenue Fund (93%)
and from payments for construction in the rights of way (in lieu payments). HURF revenues are
distributed partially on a population formula and partially on the county of origin for gasoline sales. There
is a State constitutional restriction that these funds be used solely for street and highway purposes. Year
end revenues in the HURF fund are $1,557,823, which is 5.8% less than last fiscal year. However, there
will be a surplus in this fund due to vacancy and maintenance savings (approximately $200,000).
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Administration $442,380 $403,758 92% $404,000
Open Space $154,295 $99,922 65% $100,000
Pavement Management $409,308 $299,382 73% $300,000
Street Signs $91,670 $77,382 84% $77,500
Street Sweeping $119,696 $147,181 123% $147,181
Traffic Signals $195,843 $167,188 85% $167,188
Vehicle Maintenance $147,780 $144,813 98% $144,813
TOTAL $1,560,972 $1,339,737 86% $1,340,682
The Administrative program for the Streets division includes activities that are not directly related to a
program, for example overhead items such as insurance, fuel, utilities, etc.)
Open Space program includes maintenance of the medians; the largest component of this category is the
contract for landscaping ($87,000).
Pavement Management program includes personnel costs related to road maintenance in addition to the
contribution to the Capital Projects Fund for major road projects such as slurry seal ($170,800).
Street Signs program includes personnel and maintenance costs for the Town’s 6,800 street signs.
Street Sweeping program major expenditures are for personnel costs and maintenance/fuel for operating
the Town’s two street sweepers. Arterial streets are swept every two weeks and residential streets every
eight weeks.
Traffic Signals program includes personnel and electric costs for the Town’s 13 Traffic signals. Costs
include hardware and programs for maintenance and synchronization of the signals.
13
Vehicle Maintenance program includes personnel as well as costs to maintain the Town’s fleet of XXX
vehicles and heavy equipment. The largest cost is for the transfer of annual depreciation to the Vehicle
Replacement Fund ($61,000).
Excise Tax Fund – Economic Development
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Revenues $295,859 $292,000 99% $292,000
This is a separate operating fund from the General Fund and supports the Town’s downtown economic
development and business retention programs. This fund is supported by a portion of the local sales
(excise) tax (.1% of the 2.6%).
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Salaries & Benefits $45,739 $47,541 104% $47,541
Contractual Services $79,035 $45,424 57% $45,424
Services & Supplies $7,901 $6,060 77% $6,060
Transfers $250,000 $0 0% $15,000
TOTAL $382,675 $99,025 26% $114,025
Salaries and benefits, which represent 7% of the total Economic Development operating budget, are at
104% of budget. A percentage of the Economic Development Administrator’s salary and benefits are
allocated to this fund; the remainder is paid through the General Fund. The overage in this category is
due to the increase in the cost of health insurance benefit
Contractual services represent 21% of the budget and include contracts for downtown holiday lighting,
marketing, town center advertising and trade analysis for potential economic development opportunities.
Services and Supplies, which represents 2% of the total operating budget, are at 77% of budget and
include items such as training, publications, and office supplies.
Transfers included a transfer to the Capital Projects Fund for a project committed through a
development agreement that has since expired. The Council approved an expenditure of $15,000 from
this transfer to contribute to the Greening of the Downtown project.
14
Development Fees
Category FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Law Enforcement $13,767 $8,805 64% $8,805
Fire & Emergency $3,153 $2,009 64% $2,009
Streets $74,316 $21,564 29% $21,564
Parks & Recreation $14,664 $22,011 151% $22,011
Open Space $9,390 $11,285 121% $11,285
Library & Museum $1,740 $3,284 189% $3,284
General Government $28,440 $16,619 59% $16,619
TOTAL $145,470 $85,577 59% $85,577
This is a restricted fund with revenues paid by developers at the time of new residential and commercial
construction permits. The lack of permit activity results in less development fees collected. Each category
had an incurred expenditure due to additional work requested for the development fee analysis.
Expenditures by
Category
FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Law Enforcement $0 $384 % $384
Fire & Emergency $0 $85 % $85
Streets (transfer to
CIP)
$142,400 $143,466 101% $143,466
Parks & Recreation $0 $1,151 % $1,151
Open Space $0 $682 % $682
Library & Museum $0 $128 % $128
General Government $0 $767 % $767
TOTAL $142,400 $146,663 101% $146,663
15
Capital Projects
Revenue FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Construction Sales Tax $510,000 $475,866 94% $475,866
Stimulus Funding $2,537,717 $0 0% $0
Bond Proceeds $4,500,000 $0 0% $0
Transfers $2,981,190 $309,321 11% $309,321
TOTAL $10,528,907 $785,187 8% $785,187
Expenditures FY2009-10
Budget
FY2009-10
YTD*
YTD to
Annual Budget
Year End
Estimate
Downtown Improvements $250,000 $15,000 6% $15,000
Street Projects $10,177,221 $1,018,559 10% $1,018,559
Traffic Signals $142,400 $129,531 91% $129,531
Drainage $86,000 $37 0% $37
General Government $100,000 $15,692 16% $15,692
Fire & Emergency $1,536,103 $145,850 10% $145,850
Contingency $433,710 $255,269 59% $255,269
TOTAL $12,725,434 $1,579,938 13% $1,579,938
Fund Balance as of June 30, 2010
The Town has adopted financial policies that establish a level of reserves (fund balance) that provide
future financial stability for the Town. The policy requires that the Town set aside designated unreserved
funds of a minimum 10% of average revenues, reserved funds of 20% of average revenues and a Rainy
Day Fund of $1.3M. The reserved funds are not available for appropriation. When reserves exceed policy
requirements the surplus is transferred at year-end to the Capital Projects Fund for future appropriation
(approximately $100,000 for FY10).
The following table is a summary by fund of all fund balances as of June 30, 2010; each fund should be
viewed individually and balances cannot be transferred between the funds. The fund balances will change
each month as revenues and expenditures are recorded.
millions
16
General Fund $6,639,088
HURF $387,668
Special Revenue Funds $258,814
Economic Dev/Downtown Fund $1,704,200
Public Art $1,507
Development Fees:
Law Enforcement $195,343
Fire & Emergency $38,323
Streets ($155,199)
Parks & Recreation ($9,719)
Open Space $1,640,246
Library/Museum $39,876
General Government $515,463
Debt Service $1,200,858
Capital Projects $9,897,857
Vehicle Replacement Fund $482,938
Total $22,837,263
Fund Balances
as of 6/30/2010
Intermodal Transportation Division
205 South Seventeenth Avenue Phoenix, Arizona 85007
Janice K. Brewer
Governor
John Halikowski
Director
July 30, 2010
Floyd Roehrich Jr.
State Engineer
Town of Fountain Hills
Attn: Randy Harrel, Town Engineer
1607 E. Avenue of the Fountains
Fountain Hills, AZ 85268
Reference:
A. G. Contract No.: KR03-0389TRN
ADOT ECS File No.: JPA 02-191
Project: Shea Boulevard Bike Path
TRACS No: SS451 01C
Budget Source Item No.: City Funding
Re: Termination of Intergovernmental Agreement (IGA)# JPA 02-191
Dear Randy,
On April 12, 2005, the construction contractor (Combs Construction Company, Inc.) for the above-referenced
project was notified the Arizona Department of Transportation (ADOT) was terminating its contract for
convenience pursuant to subsection 108.11 of the Standard Specifications. Federal Highway Administration
(FHWA) also determined funding for these cancellation costs was ineligible for federal aid, for which the Town
paid for said costs, providing additional funding in excess of the required match to federal funds under the above-
referenced IGA.
Due to the construction contract being terminated, ADOT is notifying the Town of Fountain Hills regarding related
reimbursement of remaining project funds and cancelling the above IGA. Therefore, ADOT will terminate the
resulting IGA No. JPA 02-191 filed with the Arizona Secretary of State under No. 26075, pursuant to the Arizona
Revised Statutes § 11-951 through 11-954, as amended, between the STATE OF ARIZONA, acting by and
through its DEPARTMENT OF TRANSPORTATION (the “State”) and Town of Fountain Hills, acting by and
through its MAYOR and TOWN COUNCIL (the “Town”).
This termination shall be effective upon both parties’ signatures and shall subsequently be reported to the Arizona
Secretary of State. The cost breakdown is as follows:
Total Town deposit with ADOT $205,342.18 (construction)
Total costs incurred by ADOT $ 90,246.46 (incl. payment to contractor)
Construction subtotal $115,095.72 (remaining funds from construction)
Total Town deposit with ADOT $ 20,804.74 (design)
Total costs incurred by ADOT $ 19,351.50
Design subtotal $ 1,453.24(remaining funds from design effort)
Total refund due Town $116,548.96
Termination of IGA# JPA 02-191 Page 2
By ______________________________ By ______________________________
Jay T. Schlum SAM MAROUFKHANI, P.E.
Mayor Deputy State Engineer, Development
Attest:
______________________________
Town Clerk
Should you have further questions, please do not hesitate to call me at (602) 712-7344.
Sincerely,
Gail H. Chimel
1324135.1
RESOLUTION NO. 2010-29
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING AN INTERGOVERNMENTAL
AGREEMENT WITH THE STATE OF ARIZONA RELATING TO THE BIKE
LANES/PAVEMENT PRESERVATION.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Intergovernmental Agreement between the Town of Fountain Hills
and the State of Arizona relating to the Bike Lanes/Pavement Preservation Program along Shea
Boulevard, west of Technology Drive to east of Fountain Hills Boulevard, (the “Agreement”) is
hereby approved in substantially the form attached hereto as Exhibit A and incorporated herein
by reference.
SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to cause the execution of the Agreement and to take all steps
necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
August 19, 2010.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Jay T. Schlum, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Richard L. Davis, Town Manager Andrew J. McGuire, Town Attorney
1324135.1
EXHIBIT A
TO
RESOLUTION NO. 2010-29
[Intergovernmental Agreement]
See following pages.
1316828.3
ADOT File No.: IGA/JPA 10-169-I
AG Contract No.: P001 2010 002643
Project No.: ARRA-CM-FTH-0(006)A
Project: Bike Lanes/Pavement
Preservation
Section: Shea Blvd., from Fountain Hills
Blvd to Saguaro Blvd.
TRACS No.: SS451 02C
COG/MPO TIP ID No.: FTH11-101ABS
Budget Source Item No.: ARRA/
Recovery Act Funds, $1,081,614; STP
funds, $440k; Town contributions
$115,095.72
INTERGOVERNMENTAL AGREEMENT
BETWEEN
THE STATE OF ARIZONA
AND
TOWN OF FOUNTAIN HILLS
THIS AGREEMENT is entered into this date ________________________________, 2010, pursuant to
the Arizona Revised Statutes § 11-951 through 11-954, as amended, between the STATE OF ARIZONA,
acting by and through its DEPARTMENT OF TRANSPORTATION (the “State”) and theTOWN OF
FOUNTAIN HILLS, acting by and through its MAYOR and TOWN COUNCIL (the “Town”). The State and
the Town are collectively referred to as “Parties”.
I. RECITALS
1. The State is empowered by Arizona Revised Statutes § 28-401 to enter into this Agreement and
has delegated to the undersigned the authority to execute this Agreement on behalf of the State.
2. The Town is empowered by Arizona Revised Statutes §9-240 to enter into this Agreement and
has by resolution, a copy of which is attached hereto and made a part hereof, resolved to enter into this
Agreement and has authorized the undersigned to execute this Agreement on behalf of the Town.
3. Congress has authorized appropriations for the American Recovery and Reinvestment Act of
2009 (ARRA 2009) for the disbursement of funds and investment in certain projects, including but not
limited to, roads, bridges, mass transit, energy efficient buildings, flood control, clean water and other
infrastructure projects to save and create jobs for long term growth and stability
4. The work contemplated under this Agreement is for the State to construct, and the Town to
maintain, bicycle lanes, median curbs, install landscaping and pavement preservation, including
pavements marking and signing, hereinafter referred to as the “Project”. The State shall advertise, bid
and award the Project.
5. Such Project lies within the boundary of the Town and has been selected by the Town; the survey
of the Project has been completed; and the plans, estimates and specifications will be prepared and, as
required, submitted by the State to the Federal Highway Administration (FHWA) for its approval.
6. The interest of the State in this project is the acquisition and distribution of ARRA/Recovery Act
Funds and STP funds for the use and benefit of the Town and to authorize such ARRA/Recovery Act
Funds for the project pursuant to Federal law and regulations. The State shall be the designated agent
for the Town.
Page 2 IGA/JPA 10-169-I
1316828.3
7. Pursuant to a prior agreement, JPA 02-191 and filed with the Secretary of State on June 13, 2003
under No. 26075 (“JPA 02-191”), the Parties agree the Town’s remaining funds ($115,095.72) deposited
under that prior agreement are to be transferred by the State to this Project for use by the Town as its
contribution under this new Agreement.
8. The ARRA/Recovery Act Funds and STP funds will be used for the construction of the project,
including the construction engineering, administration cost (CE), and contingencies.
The current Project costs are as follows:
TRACS No. SS451 02C:
ARRA/Recovery Act Funds $1,081,614.00
Federal STP Funds @ 94.3% $ 440,000.00
Estimated Town funds (match to STP) @ 5.7% ** $ 26,596.00
Estimated Town funds (other) @100% (source **) $ 88,499.72
Total Estimated Town funds (5.7% and 100%) $ 115,095.72
*TOTAL Estimated Project Costs $1,636,709.72
*(Includes CE and project contingencies)
**(Source is remaining Town funds deposited with the State under Agreement JPA 02-191)
The Parties acknowledge that the eventual actual cost may exceed the estimate, and in such case, the
Town is responsible for any and all costs exceeding the estimate. Actual costs may be less than the
estimate and not needed for the Project, at which time any excess federal funding will be de-obligated
from the Project.
THEREFORE, in consideration of the mutual Agreements expressed herein, it is agreed as follows:
II. SCOPE OF WORK
1. The State will:
a. Review design plans, specifications and other such documents and services required for the
construction bidding and construction of the Project and provide comments to the Town as appropriate.
b. On behalf of the Town, perform work and prepare documents required by the FHWA to
qualify certain projects for and to receive ARRA/Recovery Act Funds. Such work may consist of, but is
not specifically limited to, the review and approval of the prepared environmental documents; the
preparation of the analysis requirements for documentation of environmental categorical exclusion
determinations; review of reports, design plans, maps, and specifications; geologic materials testing and
analysis; right-of-way related activities and such other related tasks essential to the achievement of the
objectives of this Agreement.
c. Upon approval by FHWA, and with the aid and consent of the Town and FHWA, proceed to
advertise for, receive and open bids subject to the concurrence of FHWA and theTown. The State will
enter into a contract(s) with a firm(s) to whom the award is made for the construction of the Project;
administer contracts(s) for the Project and make all payments to the contractor(s).
d. Enter into a Project Agreement with FHWA on behalf of the Town covering the work
encompassed in said construction contract and will request the maximum ARRA/Recovery Act Funds
available, including construction engineering and administration costs. Should costs exceed the maximum
Page 3 IGA/JPA 10-169-I
1316828.3
ARRA/Recovery Act Funds and STP funds available, it is understood and agreed that the Town will be
responsible for any excess cost not covered by federal funds.
e. Upon Execution of this Agreement and prior to Advertisement of the Project, transfer the
Town’s remaining funds of $115,095.72 from the prior project related to JPA 02-191 into this Project for
the Town’s current share of the Project costs for use by ADOT for Project construction. Also terminate
said prior JPA 02-191 per a separate termination letter. Invoice the Town for any excess costs not
covered by ARRA/Recovery Act or STP funds or reimburse the Town for its excess funds on deposit with
the State upon Project completion.
f. Not be obligated to maintain said Project, should the Town fail to budget or provide for proper
and perpetual maintenance as set forth in this Agreement.
2. The Town will:
a. Upon execution of this Agreement, designate the State as authorized agent for the Town.
b. Prepare and provide to the State the design plans and documents required for construction
bidding and construction of the Project, incorporating comments from the State as appropriate.
c. Upon execution of this Agreement and prior to bid advertising authorize the State to transfer
remaining Town funds of $115,095.72 from the prior project into the Town’s share of the current Project
costs. Remit any costs exceeding the maximum ARRA/Recovery Act and STP funds allocated for this
Project within thirty (30) days of receipt of invoice from the State.
d. Certify that all necessary rights-of-way have been or will be acquired prior to advertisement
for bid and also certify that all obstructions or unauthorized encroachments of whatever nature, either
above or below the surface of the Project area, shall be removed from the proposed right-of-way, or will
be removed prior to the start of construction.
e. Not permit or allow any encroachments upon or private use of the right-of-way, except those
authorized by permit. In the event of any unauthorized encroachment or improper use, the Town shall
take all necessary steps to remove or prevent any such encroachment or use.
f. Grant the State, without charge, cost or additional documents and agreements, permission to
enter Town lands as required to conduct all construction and pre-construction activities related to the
Project, including and without limitation, temporary construction easements, or temporary right-of-entry.
g. Be responsible for any and all costs attributable to any engineering change orders requested
by the Town not covered by ARRA/Recovery Act Funds. The Town will also be responsible for
contractor claims for additional compensation caused by Project delays attributable to the Town.
h. Provide for cost and, as an annual item in the Town’s budget, proper maintenance of the
Project, including all of the Project components, including but not limited to bicycle lanes, median curbs,
landscaping, pavement preservation with marking and signing.
i. Be required to maintain all roadway and pedestrian improvements within the Project,
including keeping them free of debris and continued safe access to all pedestrians and motorists.
j. Agree that maintenance shall include care of all landscaping within the Project in accordance
with accepted horticultural practices. This includes keeping all areas free of weeds, undesirable grasses
and litter, furnishing irrigation water, furnishing and applying insecticide/herbicide sprays and dust to
combat diseases and other pests, pruning and replanting as required to maintain the landscaping as it
was designed and established at the completion of the Project. Be responsible for all testing, adjusting,
repairing and operation of the irrigation system, including the electricity to power the irrigation controller.
Page 4 IGA/JPA 10-169-I
1316828.3
k. Pay the State full compensation for all penalties, assessments or sanctions of any kind
resulting from any failure to comply with any ARRA/Recovery Act requirement, including but not limited to,
auditing, reporting and monitoring the project and its costs.
l. Enter into an agreement with the design consultant which states that the design consultant
shall provide professional post-design services as required and requested throughout and upon
completion of the construction phase of the Project.
m. Provide a set of as-built plans upon completion of the construction phase of the Project. An
electronic version of the as-built plans shall be forwarded to Arizona Department of Transportation Local
Government Section.
n. Upon completion of the Project, agree to accept, maintain and assume full responsibility of
said Project in writing.
III. MISCELLANEOUS PROVISIONS
1. The terms, conditions and provisions of this Agreement shall remain in full force and effect until
completion of said Project, except any provisions for maintenance/electrical power and/or landscaping
maintenance shall be perpetual by the Town. Further, this Agreement may be cancelled at any time prior
to advertisement of the project construction contract, upon thirty days (30) written notice to the other
party. It is understood and agreed that, in the event the Town terminates this Agreement, the State shall
in no way be obligated to maintain said Project. Promptly after termination of this Agreement, the Town
will return to the State all property belonging to the State which is in the Town’s possession, and the State
will return tot eh Town all property belonging to the Town which is in the State’s possession.
2. The State assumes no financial obligation or liability under this Agreement, or for any resulting
construction of the Project. The Town, in regard to the Town’s relationship with the State only, assumes
full responsibility for the design, plans, specifications, reports, the engineering in connection therewith and
the construction of the improvements contemplated, cost over-runs and construction claims. It is
understood and agreed that the State's participation is confined solely to securing federal aid on behalf of
the Town and the fulfillment of any other responsibilities of the State as specifically set forth herein; that
any damages arising from carrying out, in any respect, the terms of this Agreement or any modification
thereof shall be the liability of the Town and that to the extent permitted by law, the Town hereby agrees
to save and hold harmless and indemnify from loss the State, any of its departments, agencies, officers or
employees from any and all costs and/or damage incurred by any of the above and from any other
damage to any person or property whatsoever, which is caused by any activity, condition,
misrepresentation, directives, instruction or event arising out of the performance or non performance of
any provisions of this Agreement by the State, any of its departments, agencies, officers and employees,
or its independent contractors, the Town, any of its agents, officers and employees, or its independent
contractors. Costs incurred by the State, any of its departments, agencies, officers or employees shall
include in the event of any action, court costs, and expenses of litigation and attorneys’ fees.
3. The cost of construction and construction engineering work under this Agreement is to be
covered by the ARRA/Recovery Act and STP funds set aside for this Project, up to the maximum
available. The Town acknowledges that the eventual actual costs may exceed the maximum available
amount of ARRA/Recovery Act and STP funds, or that certain costs may not be accepted by the federal
government as eligible for ARRA/Recovery Act funds. Therefore, the Town agrees to furnish and provide
the difference between actual costs and the ARRA/Recovery Act Funds and STP funds received.
4. The State will follow reporting requirements in accordance with Section 1201and Section 1512 of
the American Recovery and Reinvestment Act of 2009.
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1316828.3
5. This Agreement shall become effective upon signing and dating of the Determination Letter by
the State’s Attorney General.
6. The cost of the Project under this Agreement includes applicable indirect costs approved by the
Federal Highway Administration (FHWA).
7. This Agreement may be cancelled in accordance with Arizona Revised Statutes § 38-511.
8. All books, accounts, reports, files and other records of any Party relating to the Agreement or the
work done under this Agreement shall be subject at all reasonable times to inspection and audit by the
other Party until five years after the Project is completed. Such records shall be available for inspection
upon five business days’ notice at the offices of the Party in possession of the records.
9. This Agreement is subject to all applicable provisions of the Americans with Disabilities Act
(Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable Federal regulations under the Act,
including 28 CFR Parts 35 and 36. The parties to this Agreement shall comply with Executive Order
Number 99-4 issued by the Governor of the State of Arizona and incorporated herein by reference
regarding “Non-Discrimination”.
10. Non-Availability of Funds: Every payment obligation of the State or the Town under this
Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such
obligations. If funds are not allocated and available for the continuance of this Agreement, this Agreement
may be terminated by the State or the Town at the end of the period for which the funds are available. No
liability shall accrue to the State or the Town in the event this provision is exercised, and the State or the
Town shall not be obligated or liable for any future payments as a result of termination under this
paragraph. Each Party is responsible for funding its respective obligations under this Agreement whether
from general funds or from other revenue.
11. In the event of any controversy, which may arise out of this Agreement, the Parties hereto agree
to abide by required arbitration as is set forth for public works contracts in Arizona Revised Statutes § 12-
1518.
12. All notices or demands upon any party to this Agreement shall be in writing and shall be delivered
in person or sent by mail, addressed as follows:
Arizona Department of Transportation
Joint Project Administration
205 S. 17th Avenue, Mail Drop 637E
Phoenix, Arizona 85007
(602) 712-7124
(602) 712-3132 Fax
Town of Fountain Hills
Attn: Randy Harrel, Town Engineer
16705 E. Avenue of the Fountains
Fountain Hills, Arizona 85268
(480) 816-5112
(480) 837-1404 Fax
13. To the extent applicable under Arizona Revised Statutes Section 41-4401, each Party and its
subcontractors warrants their compliance with all federal immigration laws and regulations that relate to
their employees and their compliance with the E-verify requirements under Arizona Revised Statutes
Section 23-214(A). A breach of the above-mentioned warranty by any Party or its subcontractors shall be
deemed a material breach of the Agreement and may result in the termination of the Agreement by the
non-breaching Party. Each Party retains the legal right to randomly inspect the papers and records of the
other Party’s or its subcontractors' employees who work on the Project to ensure that the other Party or
its subcontractors are complying with the above-mentioned warranty.
14. Pursuant to Arizona Revised Statutes § 35-391.06 and § 35-393.06, each Party certifies that it
does not have a scrutinized business operation in Sudan or Iran. For the purpose of this Section the term
“scrutinized business operations” shall have the meanings set forth in Arizona Revised Statutes § 35-391
Page 6 IGA/JPA 10-169-I
1316828.3
and/or § 35-393, as applicable. If any Party determines that another Party submitted a false certification,
that Party may impose remedies as provided by law including terminating this Agreement.
15. In accordance with Arizona Revised Statutes § 11-952 (D) attached hereto and incorporated
herein is the written determination of each party’s legal counsel and that the parties are authorized under
the laws of this State to enter into this Agreement and that the Agreement is in proper form.
IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first above written.
TOWN OF FOUNTAIN HILLS
By ______________________________
JAY SCHLUM
Mayor
STATE OF ARIZONA
Department of Transportation
By ______________________________
SAM MAROUFKHANI, P.E.
Deputy State Engineer, Development
ATTEST:
By ______________________________
BEV BENDER
Town
Initial Draft 7/20/10 ghc
Town comments 7/26/10
AG approved 7/27/10
1316828.3
IGA/JPA 10-169-I
ATTORNEY APPROVAL FORM FOR THE TOWN OF FOUNTAIN HILLS
I have reviewed the above referenced Intergovernmental Agreement between the State of
Arizona, acting by and through its DEPARTMENT OF TRANSPORTATION, and the TOWN OF
FOUNTAIN HILLS, an Agreement among public agencies which, has been reviewed pursuant to Arizona
Revised Statutes § 11-951 through § 11-954 and declare this Agreement to be in proper form and within
the powers and authority granted to the Town under the laws of the State of Arizona.
No opinion is expressed as to the authority of the State to enter into this Agreement.
DATED this __________________ day of __________________, 2010.
___________________________
Town Attorney