HomeMy WebLinkAboutR2-17-05Document in R2-17-05.obd Page 1 of 3 Last printed 2/12/2005 7:57 AM
NOTICE OF EXECUTIVE AND
REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
Mayor Wally Nichols
Councilman Mike Archambault Councilman Keith McMahan
Councilman John Kavanagh Vice Mayor Kathleen Nicola
Councilman Ed Kehe Councilman Jay Schlum
DATE: THURSDAY, FEBRUARY 17, 2005
TIME: 5:30 P.M. EXECUTIVE SESSION
6:30 P.M. REGULAR SESSION
WHERE: TOWN HALL COUNCIL CHAMBERS, BUILDING B
16836 E. PALISADES BLVD., FOUNTAIN HILLS, AZ
(Executive Session will be held in the Building A Teleconference Room)
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 Council Members. 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.
• CALL TO ORDER – Mayor Nichols
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1. VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S. §38-431-03.A.3, For
discussion or consultation for legal advice with the attorney or attorneys of the public body.
(Specifically, legal advice regarding the Urban Lands Act.)
2. RETURN TO REGULAR SESSION
• CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Nichols
• INVOCATION – Pastoral Assistant Pat Mullen, Church of the Ascension
• ROLL CALL – Mayor Nichols
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 property noticed for discussion and legal action. At the conclusion of the call to the
public, individual Council members 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.
5 min
CONSENT AGENDA
*1.) CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from January
21st, 2005 and February 3rd, 2005.
*2.) CONSIDERATION of RESOLUTION 2005-14, abandoning whatever right, title, or interest
the Town has in certain public utility and drainage easements located at the easterly property
line of Plat 206, Block 1, Lot 14 (16313 E. Segundo Drive) as recorded in Book 147 of Maps,
Page 2, Records of Maricopa County, Arizona. EA05-01 (Aston).
*3.) CONSIDERATION of the PRELIMINARY AND FINAL PLAT for the “Villas of La Montana
Townhouses” a twenty-unit condominium project and lot join, located at 16810 E. La Montana
Drive, aka Lots 1 and 15 Block 4, Plat 102. Case #S2004-29.
*4.) CONSIDERATION of RESOLUTION 2005-12, endorsing the vision, “Arizona is to be one of
the best places in the nation to live a rewarding and productive life”.
REGULAR AGENDA
5 min 5.) CONSIDERATION of reappointing one (1) board member and appointing one (1) citizen to
each serve a two-year term on the BOARD OF ADJUSTMENT.
10 min 6.) QUARTERLY UPDATE by the Fire Department and Law Enforcement.
10 min
7.) CONSIDERATION to approve a TEMPORARY USE PERMIT to allow outdoor retail sales
and events to take place on specified weekends beginning February 25, 2005 through December
11, 2005, located at 12625 and 12645 Saguaro Blvd., aka Plaza Fountainside; Case #TUP2005-
03.
5 min
8.) CONSIDERATION of RESOLUTION 2005-20, a resolution relating to finance; rescinding
resolution No. 2004-58 adopted on November 4, 2004; approving the issuance and sale of the
Town of Fountain Hills, Arizona, Municipal Property Corporation Municipal Facilities Revenue
Refunding Bonds, Series 2005; and declaring an emergency.
10 min
9.) CONSIDERATION of RESOLUTION 2005-19, authorizing and providing for the issuance
and sale of not to exceed $8,500,000 aggregate principal amount of Town of Fountain Hills,
Arizona, General Obligation Refunding Bonds, Series 2005; and declaring an emergency.
5 min 10.) COUNCIL ASSESSMENT AND REVIEW of the meeting to identify procedural strengths
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and weaknesses and discuss possible improvements for future meetings.
11.) 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: NONE
12.) SUMMARY OF COUNCIL REQUESTS by Town Manager.
7:25 PM 13.) ADJOURNMENT.
DATED this 11TH day of February, 2005 ___________________________
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (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.
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: February 17, 2005
Submitting Department: Administration Contact Person: Bender
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other: Draft Meeting Minutes
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development
Regular Agenda Wording: CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES
from January 21st, 2005 and February 3rd, 2005.
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information: Approve the council meeting minutes for archival purposes.
List All Attachments as Follows: Draft minutes from January 21, 2005 and February 3rd, 2005.
Type(s) of Presentation: None
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
Document in R2-17-05.obd
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/05
Submitting Department: Public Works Contact Person: Tom Ward
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development Finance
Regular Agenda Wording: Consideration of RESOLUTION 2005-14 abandoning whatever right, title,
or interest the Town has in the certain public utility and drainage easements located at the easterly
property line of Plat 206, Block 1, Lot 14 (16313 E. Segundo Drive) as recorded in Book 147 of Maps,
Page 2 Records of Maricopa County, Arizona. EA05-01 (Aston)
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information: Request for abandonment submitted January 10, 2005.
List All Attachments as Follows: Staff memo, resolution and abandonment exhibit
Type(s) of Presentation: None
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager
Document in R2-17-05.obd
TOWN OF FOUNTAIN HILLS
PUBLIC WORKS DEPARTMENT
MEMO
TO: Honorable Mayor and Town Council
DT: January 11, 2005
FR: Art Candelaria, Civil Engineer
Randy Harrel, Town Engineer
Reviewed: Tom Ward, Director of Public Works
RE: Easement Abandonment - EA05-01
16313 E. Segundo Drive
Plat 206, Block 1, Lot 14
This item on the Town Council's agenda is a proposal to abandon the ten foot public utility and drainage
easements located at the easterly property line of Plat 206, Block 1, Lot 14, (16313 E. Segundo Drive) as
shown in Exhibit “A”. The property owners desire the assurance that any future improvements made to
the lot will not be infringed upon by the construction of utilities.
All affected utility companies have been notified of this abandonment proposal and have approved the
proposed abandonment of this public utility easement except as noted:
(1) The Sanitary District has an existing sewer line in the easement and is unable to abandon the
easement. The Sanitary District needs to access the existing sewer line in this easement for
maintenance or repair. Any damage done to the building or wall will be the responsibility of the
property owner. Therefore, a 10’ sewer easement will be retained.
(2) Qwest and Cox have requested to retain the front 20’ of the easement for future utility boxes.
The Town’s engineering staff has reviewed the site to ascertain any drainage issues in addition to the
Town's general interest in the easement. It is the professional opinion of the staff that there is no need for
the Town to retain the drainage easement proposed to be abandoned, with the understanding that certain
lots within this subdivision are subject to lot-to-lot drainage runoff. The property owners of Lot 17 are
required to pass the developed flows generated by the upstream lots across their property.
Staff recommends approval of Resolution 2005-14.
Enc: Resolution
Exhibit
C: Loren Aston
Adjacent Property Owners
Document in R2-17-05.obd
RESOLUTION 2005-14
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR
INTEREST IT HAS IN A PORTION OF THE CERTAIN TEN (10’) FOOT PUBLIC
UTILITY AND DRAINAGE EASEMENTS AT THE EASTERLY PROPERTY LINE
OF PLAT 206, BLOCK 1, LOT 14, FOUNTAIN HILLS, ARIZONA, AS RECORDED
IN BOOK 147 OF MAPS, PAGE 2 RECORDS OF MARICOPA COUNTY, ARIZONA.
A TEN (10’) FOOT SEWER EASEMENT WILL BE RETAINED.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the
governing body of real property located in the Town of Fountain Hills (the “Town”), may require the
dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any
proposed subdivision; and
WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private
property by easement, deed, subdivision, plat or other lawful means; and
WHEREAS, all present utility companies have received notification of the proposed
abandonment.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF FOUNTAIN HILLS, as follows:
SECTION 1. That portions of the certain ten (10’) foot public utility and drainage easements,
located at the easterly property lines of Plat 206, Block 1, Lot 14, Fountain Hills, as recorded in Book 147
of Maps, Page 2 records of Maricopa County, and as more particularly described in Exhibit A, attached
hereto and incorporated herein by reference, are hereby declared to be abandoned by the Town, except that
a ten (10’) foot sewer easement will be retained. Certain lots within this subdivision are subject to lot-to-
lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream
lots across their property.
SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for
the purpose of removing any potential cloud on the title to said property and that the Town in no way
attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting
there from or existing previous to any action by the Town.
[SIGNATURES ON FOLLOWING PAGE]
Document in R2-17-05.obd
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, February
17, 2005.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
W. J. Nichols, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Timothy G. Pickering, Town Manager Andrew J. McGuire, Town Attorney
Document in R2-17-05.obd
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 02/17/05
Submitting Department: Public Works Contact Person: Kate Zanon, Planner
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special
Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development
Regular Agenda Wording: CONSIDERATION of the PRELIMINARY AND FINAL PLAT for the,
“Villas of La Montana Townhomes," a twenty-unit condominium project and lot join, located at 16810 E.
La Montana Drive, aka Lots 1 and 15, Block 4, Plat 102. Case #S2004-29.
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information: This agenda item is for a Preliminary and Final Plat
for a Declaration of Condominium and lot join. On Februaruy 10, 2005, the Planning and Zoning
Commission recommended approval of S2004-29, Preliminary Plat, "Villas of La Montana Townhouse,."
by a 4-3 vote. Please see the attached memorandum for additional details.
List All Attachments as Follows: Staff Report Memorandum, Application; Site Plan Reductions
Type(s) of Presentation: None
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
TOWN OF FOUNTAIN HILLS
PLANNING & ZONING
STAFF REPORT
TO: Mayor and Town
MTG DT: February 17, 2005
FR: Kate Zanon, Planner
THR: Richard Turner, AICP
Planning and Zoning Administrator
RE: Case S2004-29; Preliminary and Final
Plat, “The Villas of La Montana Townhomes,”
a 20-unit Condominium Project
LOCATION: 16810 E. La Montana Drive, aka Plat 102, Block 4, Lots 1 and 15.
REQUEST: Consideration of the Preliminary and Final Plat for, "The Villas of La Montana
Townhomes," a 20-unit project.
DESCRIPTION:
APPLICANT: Wade Felkins
OWNER: Fourway Development Ltd. - Villas of La Montana, LLC
EXISTING ZONING: “R-3”
EXISTING CONDITION: Vacant
SURROUNDING LAND USES AND ZONING:
NORTH: La Casitas multi-family complex and a Vacant Lot; zoned “R-3”
SOUTH: Town Offices; zoned “C-2”
EAST: Las Casa Cafetal multi-family complex; zoned “R-3”
WEST: Cambria Court multi-family complex; zoned “R-3”
SUMMARY:
This request is for approval of the Preliminary and Final Plat, "The Villas of La Montana
Townhomes," 1) Declaration of Condominium, which subdivides cubic airspace, and is not a
land sell project and 2) the joining of Lots 1 and 15, in Plat 102, Block 4.
The owner of Villas of La Montana LLC proposes to convert a twenty-unit complex and record a
Declaration of Condominium to sell the units individually. The proposed common amenity
areas, community pool, as well as all other common areas, will be owned and maintained by the
condominium association. This project is in the process of attaining a building permit: BP2004-
862 to 2004-868.
This site will be developed with seven buildings with three units in each of buildings 1-3, and 5-
7, and two units in building 4. The minimum livable area is 2,206 square feet and the maximum
livable area is 2,210 square feet. Each unit also has a private covered patio and an enclosed two-
car garage. The design of all the units is similar, although three slightly different layouts exist.
The lot size for this project is 101,146 square feet and proposes 40% lot coverage when 50% is
allowed.
EVALUATION:
This Preliminary and Final Plat is in conformance with the intent of the underlying zoning
designation and meets all applicable provisions within the Town of Fountain Hills Zoning
Ordinance and Subdivision Ordinance.
All setbacks for this project meet the requirements of an R-3 zoning district. Buildings 2, 4, and
6 all have patios in the setback area, but the portion of the patio in the building setback is
uncovered, which is allowed. The maximum building height measured from natural grade does
not exceed the allowed 30 feet at any location. At the tallest peak the building is 27 feet 6 inches
above finished floor.
There are eight access points to this project, four along the east side of Cambria Drive and four
along the west side of Hamilton Drive. Six of the access points (three on Cambria Drive and
three on Hamilton Drive) are concrete driveways leading directly into the garages of units 01-03
and 18-20. The two primary points of access, one on Cambria Drive and one on Hamilton Drive
create a drive aisle through the property with a minimum of a twenty-six foot wide paved
surface.
The required parking for this site is 45 spaces at 2.25 spaces per unit. Each unit has a two-car
garage making up 40 of the required spaces. 14 additional spaces are provided off of the drive
aisle that bisects the property, of which 2 are ADA compliant (only one ADA compliant space is
required for this project).
Trash pickup service will be individual for each unit, and the container will be stored within each
unit’s private garage.
Sidewalks are being provided along La Montana Drive, Cambria Drive, and Hamilton Drive. A
10-foot Sidewalk Easement (SW.E.) is provided along the La Montana Drive frontage and wraps
around to the drive aisle access points on both Cambria Drive and Hamilton Drive. A 10-foot
Public Utility and Drainage Easement (P.U.E. & D.E.) runs east-west along the north property
line.
The lot join portion of this Preliminary Plat required the abandonment of a 20-foot Public Utility
and Drainage Easement that ran north-south, 10 feet on each side, along the common property
line between lots 1 and 15. The Town Council as Resolution #2005-05 abandoned this easement
on January 20, 2005. Staff attached the following stipulations to the easement abandonment:
That a 10 foot sidewalk easement be granted or platted on the perimeter streets of Lots1 and 15
prior to development of these lots. The Plat shows conformance to this stipulation.
RECOMMENDATION:
The Chairman of the Planning and Zoning Commission voiced opposition to this project. His
concerns primarily revolved around safety as follows: 1) concern that the distance between the
garage entrances and the start of the drive aisle are too close to provide safe ingress and egress
and, 2) concern that the line of site entering the main drive aisle from units 7, 8, 9, 12, 13, and 14
in Buildings three and five is not sufficient. The Chairman also voiced concern with the
individual unit refuse pick up plan. The Planning & Zoning Commission recommended approval
of the Preliminary Plat with Staff’s first four stipulations by a 4-3 vote at the February 10, 2005
meeting.
Staff recommends approval of S2004-29; Preliminary and Final Plat, "The Villas of La
Montana Townhomes," with the following stipulations:
1. Prior to the Final Plat recordation all improvement plans including grading, drainage,
sewer, water, landscape and irrigation plans must be approved by the Town.
2. Prior to the Final Plat recordation a construction assurance bond will be posted.
3. Prior to Final Plat recordation an approved water service agreement will be provided
from the Chaparral City Water Company.
4. There will be a statement placed on the Final Plat referencing that units 7, 8, 9, 12, 13
and 14 in Buildings 3 and 5 will have their garbage removal from the main access
aisle.
Staff also recommends adding the following additional stipulation:
5. A second speed hump is placed across the common drive access aisle between Buildings
4 and 5.
9196.001\. . . \2005-12 Vision Endorsement.res.doc
2.9.2005-1
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/05
Submitting Department: Administration Contact Person: Tim Pickering
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event
Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development Finance
Regular Agenda Wording: *4.) CONSIDERATION of RESOLUTION 2005-12, endorsing the
vision for Arizona is to be one of the best places in the nation to live a rewarding and productive life.
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information: The Center for the Future of Arizona has proposed a
vision of Arizona’s future that is now being endorsed by elected officials, business groups and
organizations throughout the state. The vision for Arizona is to be one of the best places in the nation to
live a rewarding and productive life. To fulfill that promise, Arizonans must commit to opportunities for
all; quality of life; and a knowledge-based economy. This will take leadership and investment. Staff
recommends Council approval of this resolution.
List All Attachments as Follows: Vision Endorsement Resolution
Type(s) of Presentation: Written
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager
9196.001\. . . \2005-12 Vision Endorsement.res.doc
2.9.2005-1
RESOLUTION NO. 2005-12
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ENDORSING A VISION STATEMENT
DEVELOPED BY THE CENTER FOR THE FUTURE OF ARIZONA.
WHEREAS, the Center for the Future of Arizona, a non-profit corporation (the
“Center”), has developed the following Vision Statement (the “Vision Statement”):
THE VISION FOR ARIZONA IS TO BE ONE OF THE BEST PLACES
IN THE NATION TO LIVE A REWARDING AND PRODUCTIVE LIFE
WHEREAS, to achieve the goals of the Vision Statement, Arizonans must commit to
providing substantial and sustained support for talent of all ages and backgrounds through a top
quality educational system and by enhancing opportunities for Arizonans who work but remain
poor by providing greater access to quality affordable housing, health care, childcare, education
and improved employment opportunities; and
WHEREAS, Arizonans must commit to preserving and enhancing all aspects of
Arizona’s physical and cultural environment by maintaining significant open space, improving
air quality, enhancing arts and culture and establishing recreational spaces throughout the state
and especially within the built environment; as well as providing adequate infrastructure to
support our growing population, including government, education, accessible health care,
communications, transportation and sustainable water and energy; and
WHEREAS, the Vision Statement supports the vigorous pursuit of a competitive
knowledge-based economy that is among the strongest and most successful in the nation and
promoting becoming a sustainable, internationally competitive “innovation” economy, supported
by world class universities and an entrepreneurial environment that advances research, develops
knowledge and generates significant venture capital investment; and
WHEREAS, the Vision Statement identifies the development of citizen engagement and
leadership appropriate to our contemporary society and forges effective collaboration between
the public and private sectors and develops and implements long-term and short-term strategies
for action, including the regular measurement of performance indicators, as an element necessary
to accomplish the above-stated goals; and
WHEREAS, the Vision Statement proposes establishing a tradition of investment, by
public and private sources, in the people and resources required to accomplish and sustain the
goals; and
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town
Council”) desires to acknowledge the goals and ideals of the Vision Statement.
9196.001\. . . \2005-12 Vision Endorsement.res.doc
2.9.2005-1
3
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. That the Town of Fountain Hills, Arizona, hereby officially endorses the
Center’s Vision Statement.
SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town
Attorney are hereby authorized and directed to take all steps and to execute all documents
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, February 17, 2005.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
W. J. Nichols, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Timothy G. Pickering, Town Manager Andrew J. McGuire, Town Attorney
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/2005
Submitting Department: Public Works Contact Person: Richard Turner, A.I.C.P.
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other: Appointment of Members
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development Finance
Regular Agenda Wording: Consideration of reappointing one (1) board member and appointing one (1) citizen
to each serve a two-year term on the Board of Adjustment.
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information:
List All Attachments as Follows: Applications: Samuel Nicholson - reappointment and Richard Gohl -
appointment to fill a vacancy on the Board and Staff Memo
Type(s) of Presentation: None
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager
TOWN OF FOUNTAIN HILLS
OFFICE OF PUBLIC WORKS
INTER OFFICE MEMO
TO: Mayor and Town Council
DATE: February 17, 2005
FR: Richard Turner, A.I.C.P.
Planning & Zoning Administrator
RE: Board of Adjustment Appointments
Article 2-8, Section 2-8-2, Membership, of the Board of Adjustment bylaws states the following:
The board of adjustment shall be composed of a total of five members who shall
be residents of the town. The members of the board shall be appointed by the
mayor, subject to the approval of the council. These appointments shall be for a
period of two years each, with the terms of members so staggered that the terms
of no more than three members shall expire in any one-year.
Staff published a request for applicants in the “Times” newspaper on December 15, 22, 29, 2004, and
January 5, 19, and 26, 2005. Staff also posted on the boards at the Post Office, Community Center, and
on the grounds of Town Hall. The request for applicants was also added to our web site. The Town
Clerk received two applications. Samuel Nicholson is a member whose term has recently expired.
Richard Gohl applied as a new applicant.
On January 31, 2005, Mr. Nicholson’s term expired. Mr. Nicholson has applied for reappointment for
an additional two-year term. The Town Council interviewed Mr. Nicholson on Tuesday, February 8,
2005. Richard Gohl was also interviewed on February 8, 2005, to fill the position vacated by Gene
Peters who recently moved to Prescott and resigned his position on the board.
Recommendation:
Staff is asking for the Mayor and Town council’s consideration for the reappointment of Samuel
Nicholson and the appointment of Richard Gohl to the Board of Adjustment.
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: February 17, 2005
Submitting Department: Law Enforcement/Fire Department Contact Person: Kleinheinz/Zimmerman
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development
Regular Agenda Wording: Quarterly Update by the Fire Department and Law Enforcement.
Staff Recommendation: Fiscal Impact: $
Purpose of Item and Background Information: Status report.
List All Attachments as Follows: Copy of the PowerPoint Presentation
Type(s) of Presentation: PowerPoint Presentations
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
Fountain Hills Rural/Metro Fire Department2nd qtr report2004-2005
2nd Qtr 2004-20059Response volume and type9Response times 9Training hours9Fire Prevention activities9Additional activities
Call Volume Comparison382328381199507193305537611890611010020030040050060070080090010002nd qtr 20031st qtr 04/052nd qtr 04/05Emergency callsNon-emergency callsCancelled prior to arrivalTotal Calls
Call Type Comparison31426731920222310117334222100815915745015811681611185123681002200501001502002503003504004505002nd qtr 03/041st qtr 04/052nd qtr 04/05EMS Life ThreatEMS UrgentEMS NonLife ThreatGrade 1Haz MatCode 3 Special DutyService Call (snakes, etc)StillTraffic AccidentStructure Fire CommStructure Fire ResMountain RescueBrush Fire
Average Response Times3:493:333:353:285:334:460:001:122:243:364:486:001st qtr 04/052nd qtr 04/05Emergency response timesEMS response timesAverage response all calls
4th Quarter Training Hours2851584432842225060100200300400500600822823TotalSkill Knowledge
Average Monthly Training Hours per FH assigned firefighter - 1881001234567891011HoursSkillKnowledge
Fire Prevention Activity19820619129620920799100501001502002503003502nd qtr 03/041st qtr 04/052nd qtr 04/05Plan ReviewInspectionsPermits
Activities for the quarter9Fire Safety School talks to K –3rdgrades 9Trained on and received new Holmatro Tool9Participated in the Fall Festival Halloween Event9Manned First Aid station at Fountain Festival 9Participated in the Thanksgiving Day Parade9Attempted to be Santa’s sleigh9Assisted with luminary lighting9Thank you !
Maricopa County Sheriff’s OfficeMaricopa County Sheriff’s OfficeFountain HillsFountain HillsSecond Quarterly Report ’04Second Quarterly Report ’04--’05’05October 2004October 2004--December 2004December 2004
Calls For ServiceCalls For Service311928733693050010001500200025003000350040002nd Quarter2nd Qtr '031rst Quarter
Reports TakenReports Taken48754242501002003004005006002nd Quarter2nd Qtr '031rst Quarter
Criminal HomicideCriminal Homicide0.9900000.20.40.60.811.22nd Quarter2nd Qtr '031rst QuarterUCR
Sex Crimes (Adult & Minor)Sex Crimes (Adult & Minor)Note: UCR data is for Note: UCR data is for ‘Forcible Rape.’‘Forcible Rape.’M.C.S.O. M.C.S.O. has a much broader definition, but numbers are has a much broader definition, but numbers are shown for consistency.shown for consistency.2.1634100.511.522.533.544.52nd Quarter2nd Qtr '031rst QuarterUCR
RobberyRobbery15.0721002468101214162nd Quarter2nd Qtr '031rst QuarterUCR
Aggravated AssaultAggravated Assault21.6415405101520252nd Quarter2nd Qtr '031rst QuarterUCR
ArsonArson1.7920000.511.522.52nd Quarter2nd Qtr '031rst QuarterUCR
Burglaries Burglaries (Residential, Business, and Vehicle)(Residential, Business, and Vehicle)70.12403139010203040506070802nd Quarter2nd Qtr '031rst QuarterUCR
Stolen VehiclesStolen Vehicles72.641678010203040506070802nd Quarter2nd Qtr '031rst QuarterUCR
TheftsThefts207.676860760501001502002502nd Quarter2nd Qtr '031rst QuarterUCR
Traffic CitationsTraffic Citations65753784901002003004005006007008009002nd Quarter2nd Qtr '031rst Quarter
Traffic AccidentsTraffic Accidents90447801020304050607080901002nd Quarter2nd Qtr '031rst Quarter
Notable EventsNotable Events•A lieutenant was added to the command staff assigned to Fountain Hills. •Speed trailer can now be utilized by MCSO within Fountain Hills.•The Watch Your Car Program conducted a window etching event in which 50-60 citizens participated.
Posse HoursPosse Hours•The Sheriff’s Posse of Fountain Hills volunteered 2935.50 hours this quarter.•The hours were spent on patrolling, crime prevention programs, assisting at crime scenes, training, and other Sheriff’s Office activities. •9665.5 miles driven by the Posse in Fountain Hills.
Note on UCR DataNote on UCR Data•Uniform Crime Report (UCR) data is collected by the FBI from over 17,000 Law Enforcement Agencies.•It is broken down into two main categories: Violent Crimes (Homicide, Sexual Assault, Robbery, Aggravated Assault), and Property Crimes (Burglaries, Stolen Vehicles, and Thefts). •This data is broken down and used to calculate crime rates nationally, and in metro areas. •The UCR figure given here is the one quarter year crime rate average per 22,000 population for the Phoenix Metropolitan area based upon the last full year (2003) available from the FBI.
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/05
Submitting Department: Public Works Contact Person: Dana Burkhardt, AICP, Sr. Planner
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development
Regular Agenda Wording: CONSIDERATION to approve a TEMPORARY USE PERMIT to allow outdoor
retail sales and events to take place on specified weekends beginning February 25, 2005 through December 11,
2005, located at 12625 and 12645 Saguaro Blvd., aka Plaza Fountainside; Case #TUP2005-03.
Staff Recommendation: Approve Fiscal Impact: No $
Purpose of Item and Background Information: The applicants, Tom Young and Karen Reynolds-Dilks,
received a temporary use permit for similar weekend events in 2004. The applicants are proposing a series of
special events to be held on Lot 2 and on the rear patio area of Lot 1 for approximately one weekend a month,
expiring on December 11, 2005. The proposed schedule indicates events on a total of 34 days, where the
temporary use can allow up to 50 one-day events on one permit. Please see the attached site plan and event
schedule for specific information regarding this request.
List All Attachments as Follows: Staff Report; Applications; Narrative; Event Schedule; Site Plan
Type(s) of Presentation: PowerPoint
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
TOWN OF FOUNTAIN HILLS
PLANNING & ZONING DIVISION
STAFF REPORT
TO: Honorable Mayor Nichols and Town
Council
DT: February 9, 2005
FR: Dana Burkhardt, AICP, Senior Planner
THRU: Richard Turner, AICP, Planning and
Zoning Administrator
RE: Case # TU2005-03; Temporary Use
request for Outdoor Weekend Events
LOCATION: 12625 & 12645 N. Saguaro Blvd., aka Lot 1 & 2, Plaza Fountainside Final Plat
REQUEST: Approval of a Temporary Use Permit for temporary weekend events including outdoor
retail sales.
DESCRIPTION:
OWNER: Tom Young and Arlen Richman
APPLICANT: Tom Young and Karen Reynolds-Dilks
EXISTING ZONING: "TCC" Town Center Commercial Zoning District
LOT SIZE: 1.45 Acres
SURROUNDING LAND USES AND ZONING:
NORTH: Fountain Park; zoned “OSR”
SOUTH: El Lago Blvd and vacant parcel; zoned “TCC”
EAST: Town owned parking lot at Fountain Park; zoned “OSR”
WEST: Plaza Fountainside shared parking area; zoned “TCC”
SUMMARY:
This request is for approval of a Temporary Use Permit to allow weekend events, including outdoor retail
sales, to be located at 12625 and 12645 N. Saguaro Blvd. The applicants, Karen Reynolds-Dilks and Tom
Young, are proposing a series of special events to be held on Lot 2 and the rear patio area of Lot 1 for one
weekend a month, expiring on December 11, 2005. The proposed schedule indicates events on a total of
34 days, where the temporary use can allow up to 50 one-day events on one permit. Please see the
attached site plan and event schedule for specific information regarding this request.
EVALUATION:
The proposed site layout of this temporary use request is the same layout previously approved for the
farmers market and other temporary use permits. Staff believes that this layout is conducive to outdoor
events such as the farmer’s market and arts & crafts sales due to the proximity to Town Center and
Fountain Park. The use of Lot 2 may not be necessary for all of the proposed weekend events, such as the
Ice Cream Social or events that do not include outdoor retail sales. Events such as the “Chili Cook-off”
may require additional liquor permits from Council prior to the event being held.
The applicant is aware that a business license is required for each individual vendor at the proposed site,
pursuant to §8-1-10 of the Town Code regulating retail merchants.
Parking for this site has been provided with The Plaza Fountainside Final Plat subdivision improvements
pursuant to the Plaza Fountainside Shared Parking Agreement. Overflow parking is provided to the east of
this site at the Fountain Park parking area. The combined parking should be sufficient due to the limited
schedule of the weekend events, and this request does not propose the temporary elimination of any
existing parking. On-street parking will not be permitted.
Due to the proximity of the proposed events to El Lago Blvd. and the access drive aisle to the west, staff is
proposing to stipulate that pedestrian access be delineated by the use of roping and/or barricades to ensure
safe public access to the site. This should restrict pedestrian access to adjacent drive aisles at centralized
locations.
The location of these events is on a graded lot, where dust control surfacing (2” decomposed granite) has
been provided. The applicant is required to provide on-site trash receptacles and trash maintenance during
each event. Staff recommends a stipulation to require all events operating on Lot 2 must provide a
minimum of four portable restroom facilities, or designate at least two businesses to provide restroom
access to event patrons. Due to the recent closing of “Casual Touch”, these restrooms are no longer
available for events at this location.
In the event that vertical structures, such as canopies or membrane type structures over 200 square feet are
requested, future administrative approval will be required. All temporary structures must conform to the
minimum required building setbacks and all other applicable regulations of the “TCC” Zoning District in
which it is located.
The Town has not been made aware of any adverse impacts from this activity. No complaints from
weekend outdoor activities at this location have been received in the past or during the posting period.
The Plaza Fountainside may be subject to Covenants, Conditions, and Restrictions that require approval
from the property owners association as well. The application, as presented, conforms to the temporary
use regulations of the Zoning Ordinance.
RECOMMENDATION:
Staff recommends approval of this Temporary Use Permit with the following stipulations:
1) The applicant shall provide designated pedestrian access by the use of roping, signage, and
barricades or similar methods, prior to public access.
2) All events that take place on Lot 2 are required to have a minimum of four portable restroom
facilities on-site, or the applicant shall provide consent from at least two businesses on Lot 1 to
provide restroom access to event patrons.
3) These events shall be open to the public between the hours of 9 A.M. and 6 P.M. All items and
equipment for the event activities shall be removed within 24 hours of the end of the event.
4) All vertical structures, such as canopies or membrane type structures over 200 square feet require
administrative approval from the Town. All temporary structures must conform to the minimum
required building setbacks and all other applicable regulations of the “TCC” Zoning District.
5) Obtain all necessary approvals and permits from Maricopa County Health Department prior to
operation.
6) This temporary use permit is non-transferable and shall become null and void for activities on Lot
2 when a permit for grading or construction is issued for development of the site.
7) The applicant shall provide a complete listing of those participating vendors at the close of
business on the first day of the event. If the event begins on a day the Town offices are closed, the
applicant shall submit the list on the last business day prior to the day of the event. The list is to
include: contact name, address, phone number, Fountain Hills’ Business License number, and their
Arizona Sales tax Number.
8) All vendor business license applications shall be submitted a minimum of five business days prior
to the start date of the event to allow time for processing of the business license applications. The
applicant is responsible for ensuring that participating vendors obtain a Fountain Hills’ business
license and Arizona State Sales Tax Number prior to the date of the event. Pursuant to Town
Code Section 8-1-5.C, Code Enforcement Officers will enforce the business license requirement
and request to see those Fountain Hills’ Business Licenses that are not displayed during the event.
9) All temporary event activities must be located within the areas designated on the approved event
site plan.
10) Events involving the distribution or sale of alcoholic beverages will require a separate Extension of
Premises (for liquor sales and consumption) permit from the Town.
11) Participants of this event are required to follow the standard Fountain Hills Fire Department event
requirements (See attached). A separated permit for individual tents and cooking equipment is not
required, but onsite inspections will be performed by the Fire Department to determine
compliance.
SITE
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/2005
Submitting Department: Admin Contact Person: Julie Ghetti
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development Finance
Regular Agenda Wording: CONSIDERATION of RESOLUTION 2005-20, relating to finance;
rescinding Resolution No. 2004-58 adopted on November 4, 2004; approving the issuance and sale of the
Town of Fountain Hills, Arizona, Municipal Property Corporation Municipal Facilities Revenue
Refunding Bonds, Series 2005; approving the form of and authorizing the execution and delivery of a
refunding supplement to the indenture, a refunding amendment to the Lease-Purchase Agreement, a
Depository Trust Agreement and a Continuing Disclosure Undertaking, authorizing the preparation,
execution and approval of Preliminary and Final Official Statements; approving the pledge of excise taxes
as security for rental payments; setting conditions and parameters with respect to such sale; authorizing
the taking of all other actions necessary to the consummation of the transactions contemplated by this
resolution including the execution and delivery of documents required by any provider of credit
enhancement; delegating certain duties; and declaring an emergency.
Staff Recommendation: Approve Fiscal Impact: Yes $367,105 Savings
Purpose of Item and Background Information: The latest market conditions indicate that net present
value savings of $367,105 can be realized from refunding a portion of the Municipal Property
Corporation bonds, Series 2000 and Series 2001. Refunding the bonds meets the Town's debt policy of
debt service savings exceeding 3% of the principal amount of the bonds. Municipal Facilities Revenue
Refunding bonds are repaid through excise taxes.
List All Attachments as Follows: Interoffice Memorandum, Savings Report from Peacock, Hislop,
Staley & Given, Inc., Resolution 2005-20.
Type(s) of Presentation: Oral
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
-2-
TOWN OF FOUNTAIN HILLS
FINANCE DEPARTMENT
INTER OFFICE MEMO
TO: Honorable Mayor and Town Council DT: February 12, 2005
THROUGH: Timothy Pickering, Town
Manager
FR: Julie A. Ghetti, MPA,CPA,CGFM RE: Resolutions 2005-19 and 2005-20
The Town of Fountain Hills has four voter-approved General Obligation (GO) bond issues
outstanding that were issued between 1995 and 2001 (street paving, open space on the ridge
behind fountain lake, library/museum and open space in the McDowell mountains). The Town’s
financial advisors from Peacock, Hislop, Staley & Given have been monitoring the municipal
bond market for opportunities to provide savings on the annual debt service payments which are
repaid through property taxes. The Town’s debt policy requires that refunding bonds be
measured against a standard of the net present value debt service savings exceeding 3% of the
principal amount of the bonds being refunded. The current analysis, provided by the Financial
Advisors, has indicated that current market conditions are such that refunding (refinancing) a
portion of the bonds would provide debt service savings to the taxpayers. A savings summary is
attached indicating total present value savings, net of all costs of issuance, of $268,877 (3.77%
of principal amount of prior bonds) under current bond market conditions.
The Town of Fountain Hills has three Municipal Facilities Revenue (MPC) bond issues
outstanding that were issued for the Community Center (Series 2000), McDowell mountain open
space (Series 2001) and Civic Center Phase II (Series 2004). The annual debt service for the
MPC bonds is paid from local sales tax revenue. Refunding a portion of the first two issues
would provide total present value savings, net of all costs of issuance, of $367,105 (5.75% of
principal amount of prior bonds) under current bond market conditions; a savings summary is
attached. The MPC board met on Thursday, February 10 and approved Resolution MPC2005-01
authorizing the sale of the refunding bonds.
The Town issued a Request for Proposal (RFP) for the bond underwriting firms; after review and
evaluation of the proposals, RBC Dain Rauscher was selected as Senior Manager and Piper
Jaffray was selected as Co-Manager.
Resolution 2005-19 authorizes the refunding of the GO bonds and Resolution 2005-20 authorizes
the refunding of the MPC bonds. Staff is recommending approval of both resolutions.
TOWN OF FOUNTAIN HILLS, ARIZONA
MUNICIPAL PROPERTY CORPORATION
$5,500,000
MUNICIPAL FACILITIES REVENUE
REFUNDING BONDS, SERIES 2005
(Dated: 3/1/05; Delivered: 3/24/05)
Estimated Sources and Uses of Funds
SOURCES
Refunded MPC Issue
2000 2001 Combined
Principal Amount of Bonds $2,775,000.00 $2,725,000.00 $5,500,000.00
Net Premium on the Bonds 43,784.45 29,653.35 73,437.80
Accrued Interest on the Bonds 6,802.89 6,077.43 12,880.32
Debt Service Fund Transfer 0.00 1,500,000.00 1,500,000.00
Total $2,825,587.34 $4,260,730.78 $7,086,318.12
USES
Estimated Cost of Refunding Escrow* $2,738,582.73 $4,175,695.89 $6,914,278.62
Bond Insurance Premium (FSA @ 0.47%) 18,792.60 16,632.34 35,424.94
Reserve Fund Surety Premium (FSA @ 2.25%)** 0.00 1,935.58 1,935.58
Estimated Costs of Issuance 41,000.00 41,000.00 82,000.00
Underwriting Fee (Est. @ 0.625%) 17,343.75 17,031.25 34,375.00
Debt Service Fund Deposit 9,868.26 8,435.72 18,303.98
Total $2,825,587.34 $4,260,730.78 $7,086,318.12
** Assumes no negative arbitrage, using SLGS yields as of 1/28/05.
** Assumes $86,026 is the neccessary additional reserve fund requirement.
Savings Summary
Nominal Savings: $169,646 $1,435,099 $1,604,745
Present Value Savings: $108,360 $258,744 $367,105
Par Amount of Bonds Refunded: $2,475,000 $3,910,000 $6,385,000
as % of Prior Bonds: 4.38% 6.62% 5.75%
Prepared by: Peacock Hislop
2/9/2005
TOWN OF FOUNTAIN HILLS, ARIZONA
MUNICIPAL PROPERTY CORPORATION
$5,500,000
MUNICIPAL FACILITIES REVENUE
REFUNDING BONDS, SERIES 2005
(Dated: 3/1/05; Delivered: 3/24/05)
Estimated Costs of Issuance
(1) Bond Counsel $30,750.00
(2) Financial Advisor 30,000.00
(3) Credit Rating 6,500.00
(4) Official Statement Printing 5,500.00
(5) Trustee / Registrar / Paying Agent 2,250.00
(6) Verification Agent 4,000.00
(7) Miscellaneous 3,000.00
$82,000.00
(1) Gust Rosenfeld
(2) Peacock Hislop
(3) Moody's Investors Service
(4) Peacock Hislop & i-Deal Prospectus
(5) Zion's First National Bank
(6) Causey, Demgen & Moore
(7) Deposited to District's P&I Account
Prepared by: Peacock Hislop
2/9/2005
TOWN OF FOUNTAIN HILLS, ARIZONA
Municipal Property Corporation Bonds Outstanding by Issue*
$4,680,000 $7,750,000 $3,645,000
Municipal Facilities Municipal Facilities Municipal Facilities
Revenue Bonds Revenue Bonds Revenue Bonds
Series 2000 Series 2001 Series 2004
Maturity Dated: 7/1/00 Dated: 12/1/01 Dated: 12/1/04
Date
(July 1) Principal Coupon Principal Coupon Principal Coupon Total
2005 $175,000 4.900% $275,000 3.500% $170,000 3.000% $620,000
2006 175,000 5.000% 300,000 3.500% 125,000 3.000% 600,000
2007 175,000 5.000% 315,000 3.750% 145,000 3.000% 635,000
2008 200,000 5.000% 325,000 4.000% 165,000 3.000% 690,000
2009 200,000 5.000% 325,000 4.000% 190,000 3.500% 715,000
2010 225,000 5.125% 340,000 4.125% 215,000 3.500% 780,000
2011 225,000 5.250% 360,000 4.300% 225,000 4.000% 810,000
2012 230,000 5.250% 375,000 4.400% 240,000 4.000% 845,000
2013 250,000 5.250% 400,000 4.500% 255,000 4.250% 905,000
2014 275,000 5.375% 410,000 4.500% 270,000 4.250% 955,000
2015 275,000 5.500% 425,000 4.750% 290,000 4.250% 990,000
2016 300,000 5.500% 455,000 4.750% 305,000 4.500% 1,060,000
2017 325,000 5.500% 475,000 4.750% 325,000 4.500% 1,125,000
2018 325,000 5.625% 500,000 5.000% 350,000 4.500% 1,175,000
2019 350,000 5.625% 520,000 5.000% 375,000 4.500% 1,245,000
2020 375,000 5.625% 550,000 5.125% 925,000
2021 575,000 5.125% 575,000
$4,080,000 $6,925,000 $3,645,000 $14,650,000
FIRST 7/1/11 and after 7/1/11 and after 7/1/16 and after
CALL: callable on 7/1/10 callable on 7/1/10 callable on 7/1/15
@ 101% @ 100% @ 100%
* All MPC Bonds are secured by a pledge of Town Excise Taxes.
Bonds identified for refunding.
Prepared by: Peacock Hislop
2/9/2005
TOWN OF FOUNTAIN HILLS, ARIZONAMUNICIPAL PROPERTY CORPORATIONProjected Post-RefundingPayments for Civic Center Phase I Bonds(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)Less:Plus:OutstandingRefundedRefunding Bonds (Civic Center I Portion Only)ProjectedProjected 2000 MPC 2000 MPCBonds Dated: March 1, 2005CombinedLocal(Civic Center I)(Civic Center I)Estimated(Civic Center I)ProjectedFiscal Sales Bond Bond InterestEstimatedEstimatedBond Debt ServiceYear Taxes (a)Payments Payments Principal Rate (b)Interest (b)Total Payments Coverage (c)2004/05 $7,136,885 $392,963 $68,234 $40,000 2.000% $35,493 $75,493 $400,221 17.83x2005/06 7,467,262 384,388 136,469 30,000 2.500% 105,680 135,680 383,599 19.46x2006/07 7,902,928 375,638 136,469 30,000 2.500% 104,930 134,930 374,099 21.12x2007/08 8,337,263 391,888 136,469 30,000 2.750% 104,180 134,180 389,599 21.39x2008/09 8,870,444 381,888 136,469 30,000 3.000% 103,355 133,355 378,774 23.41x2009/10 9,319,134 396,888 136,469 30,000 3.000% 102,455 132,455 392,874 23.72x2010/11 9,459,395 385,356 136,469 30,000 3.250% 101,555 131,555 380,443 24.86x2011/12 9,599,117 378,544 136,469 35,000 3.500% 100,580 135,580 377,655 25.41x2012/13 9,658,462 386,469 386,469 285,000 3.500% 99,355 384,355 384,355 25.12x2013/14 9,810,867 398,344 398,344 305,000 3.600% 89,380 394,380 394,380 24.87x2014/15 10,038,699 383,563 383,563 305,000 3.750% 78,400 383,400 383,400 26.18x2015/16 10,117,954 393,438 393,438 325,000 4.000% 66,963 391,963 391,963 25.81x2016/17 10,359,668 401,938 401,938 345,000 4.000% 53,963 398,963 398,963 25.96x2017/18 10,608,620 384,063 384,063 340,000 4.125% 40,163 380,163 380,163 27.90x2018/19 10,865,041 390,781 390,781 360,000 4.250% 26,138 386,138 386,138 28.13x2019/20 10,973,754 396,094 396,094 255,000 4.250% 10,838 265,838 265,838 41.27x$6,222,238 $4,158,203 $2,775,000 $1,223,426 $3,998,426 $6,062,460(a) Excludes the 0.2% portion dedicated to the Preserve Bonds and the 0.1% portion dedicated to the Civic Center Phase II Bonds.(b) Interest estimated at current AAA insured rates.(c) Represents column (2) divided by column (9) Prepared by: Peacock Hislop2/10/2005
TOWN OF FOUNTAIN HILLS, ARIZONAMUNICIPAL PROPERTY CORPORATIONProjected Post-Refunding Coverage Analysis for Mountain Preserve Bonds(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)Less:Plus:OutstandingRefundedRefunding Bonds (Preserve Portion Only)ProjectedProjected 2001 MPC 2001 MPCBonds Dated: March 1, 2005CombinedDedicated(Preserve)(Preserve)Estimated(Preserve)ProjectedFiscal Sales Bond Bond Interest EstimatedEstimatedBond Debt ServiceYear Taxes (a)Payments Payments Principal Rate (b)Interest (b)Total Payments Coverage (c)2004/05 $648,808 $588,411 $95,734 2.000% $31,708 $31,708 $524,385 1.23x2005/06 678,842 603,786 191,469 $35,000 2.500% 95,125 130,125 542,443 1.25x2006/07 718,448 608,286 191,469 60,000 2.500% 94,250 154,250 571,068 1.25x2007/08 757,933 606,474 191,469 95,000 2.750% 92,750 187,750 602,755 1.25x2008/09 806,404 593,474 191,469 150,000 3.000% 90,138 240,138 642,143 1.25x2009/10 847,194 595,474 191,469 185,000 3.000% 85,638 270,638 674,643 1.25x2010/11 859,945 601,449 191,469 195,000 3.250% 80,088 275,088 685,068 1.25x2011/12 872,647 600,969 191,469 210,000 3.500% 73,750 283,750 693,250 1.25x2012/13 878,042 609,469 191,469 215,000 3.500% 66,400 281,400 699,400 1.25x2013/14 891,897 601,469 601,469 650,000 3.600% 58,875 708,875 708,875 1.25x2014/15 912,609 598,019 598,019 690,000 3.750% 35,475 725,475 725,475 1.25x2015/16 919,814 607,831 607,831 240,000 4.000% 9,600 249,600 249,600 3.68x2016/17 941,788 606,219 606,2194.000% 0 00#DIV/0!2017/18 964,420 608,656 608,6564.125% 0 00#DIV/0!2018/19 987,731 603,656 603,6564.250% 0 00#DIV/0!2019/20 997,614 607,656 607,6564.250% 0 00#DIV/0!2020/21 997,614 604,469 604,4690.000% 0 00#DIV/0!$10,245,766 $6,465,459 $2,725,000 $813,796 $3,538,796 $7,319,103(a) Represents projected collections of the 0.2% sales tax dedicated for the Preserve Project.(b) Interest estimated at current AAA insured rates.(c) Represents projected coverage of the 0.2% dedicated sales tax (column 2) over annual payments (column 9).Prepared by: Peacock Hislop2/10/2005
-3-
RESOLUTION NO. 2005-20
RESOLUTION RELATING TO FINANCE; RESCINDING RESOLUTION NO. 2004-58
ADOPTED ON NOVEMBER 4, 2004; APROVING THE ISSUANCE AND SALE OF THE
TOWN OF FOUNTAIN HILLS, ARIZONA, MUNICIPAL PROPERTY CORPORATION
MUNICIPAL FACILITIES REVENUE REFUNDING BONDS, SERIES 2005;
DELEGATING THE AUTHORITY TO APPROVE CERTAIN MATTERS WITH RESPECT
TO THE BONDS AND THE BONDS BEING REFUNDED; APPROVING THE FORM OF
AND AUTHORIZING THE EXECUTION AND DELIVERY OF A REFUNDING
SUPPLEMENT TO THE INDENTURE, A REFUNDING AMENDMENT TO THE LEASE-
PURCHASE AGREEMENT, A DEPOSITORY TRUST AGREEMENT AND A
CONTINUING DISCLOSURE UNDERTAKING; AUTHORIZING THE PREPARATION,
EXECUTION AND APPROVAL OF PRELIMINARY AND FINAL OFFICIAL
STATEMENTS; APPROVING THE PLEDGE OF EXCISE TAXES AS SECURITY FOR
RENTAL PAYMENTS; SETTING CONDITIONS AND PARAMETERS WITH RESPECT
TO SUCH SALE; AUTHORIZING THE TAKING OF ALL OTHER ACTIONS
NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED
BY THIS RESOLUTION INCLUDING THE EXECUTION AND DELIVERY OF
DOCUMENTS REQUIRED BY ANY PROVIDER OF CREDIT ENHANCEMENT;
DELEGATING CERTAIN DUTIES; AND DECLARING AN EMERGENCY.
WHEREAS, as of July 1, 2000, the Town of Fountain Hills, Arizona (the "Town")
and the Town of Fountain Hills, Arizona Municipal Property Corporation (the "Corporation")
entered into a Lease-Purchase Agreement recorded as Document Number 2000-0545783 in the office
of the Maricopa County Recorder's Office (the "Lease-Purchase Agreement"); and
WHEREAS, as of July 1, 2001, the Town and the Corporation entered into a First
Amendment to Lease-Purchase Agreement recorded as Document Number 2001-1205691 in the
Office of the Maricopa County Recorder's Office (the "First Amendment"); and
WHEREAS, as of December 1, 2004, the Corporation and the Town entered into a
Second Amendment to Lease-Purchase Agreement (the "Second Amendment") pertaining to the
lease-purchase of the Phase II expansion of the Civic Center by the Town from the Corporation; and
WHEREAS, the Corporation and Zions First National Bank (successor to National
Bank of Arizona, which was successor trustee to BNY Western Trust Company), as trustee, entered
into a Trust Indenture dated as of July 1, 2000 (the "2000 Indenture"); providing for the issuance of
$4,680,000 of The Town of Fountain Hills, Arizona, Municipal Property Corporation Municipal
Facilities Revenue Bonds, Series 2000 (the "Series 2000 Bonds"); and
WHEREAS, the Corporation and the Trustee entered into a First Supplement to
Trust Indenture dated as of July 1, 2001 (the "First Supplement") providing for the issuance of
$7,750,000 of The Town of Fountain Hills, Arizona, Municipal Property Corporation Municipal
Facilities Revenue Bonds, Series 2001 (the "Series 2001 Bonds"); and
WHEREAS, the Corporation and the Trustee have entered into a Second Supplement
to Trust Indenture dated as of December 1, 2004 (the "Second Supplement") providing for the
issuance of $3,645,000 of The Town of Fountain Hills, Arizona, Municipal Property Corporation
Municipal Facilities Revenue Bonds, Series 2004 (the "Series 2004 Bonds") to finance the Phase II
expansion of the Civic Center; and
WHEREAS, the Town deems it in the best interests of the Town and the Corporation
to refinance certain of the Corporation's outstanding Series 2000 Bonds, Series 2001 Bonds and the
Series 2004 Bonds (the "Bonds Being Refunded"); and
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WHEREAS, the Bonds Being Refunded shall be refinanced pursuant to the terms of
a Refunding Supplement to Trust Indenture, dated as of March 1, 2005 (the "Refunding Supplement")
which provides for the issuance of not to exceed $10,000,000 aggregate principal amount of the
Corporation's Municipal Facilities Revenue Refunding Bonds, Series 2005 (the "Refunding Bonds"
or the "Bonds") and the revision of the schedule of rental payments due under the Lease (the "Rental
Payments") by the Town to reflect the decreased debt service and corresponding Rental Payments,
caused by the issuance of the Refunding Bonds; and
WHEREAS, the Mayor and Council will receive a proposal for the purchase of the
Refunding Bonds from RBC Dain Rauscher Inc. (as senior book-running manager) and Piper Jaffray &
Co. (as co-managing underwriter) (collectively, the "Underwriter") in the form of bond purchase
agreement now on file with the Town (the "Purchase Agreement") and the Town desires that the
Refunding Bonds be sold through negotiation to the Underwriter on such terms as may hereafter be
approved by the Town Manager or the Accounting Supervisor and agreed to by the Underwriter; and
WHEREAS, the firm of Peacock, Hislop, Staley & Given, Inc. will serve as the
Town's financial advisor (the "Financial Advisor") with respect to the Refunding Bonds sold to the
Underwriter; and
WHEREAS, by this resolution the Mayor and Council will approve a form of
Purchase Agreement now on file and order the Purchase Agreement to be completed with the final terms
of the Refunding Bonds and entered into among the Town, the Corporation and the Underwriter when
the final terms have been determined for the sale of the Refunding Bonds; and
WHEREAS, by this resolution the Mayor and Council will authorize the execution,
issuance and sale of the Refunding Bonds to the Underwriter in accordance with the Purchase
Agreement and at such prices, interest rates, maturities and redemption features as may be hereafter
determined by the Town Manager or the Accounting Supervisor, with the advice of the Financial
Advisor, and agreed to by the Underwriter; and
WHEREAS, the Town and the Corporation now wish to and deem it necessary to:
(1) enter into a Refunding Amendment to Lease-Purchase Agreement to be dated as of March 1,
2005 or the date of the Refunding Bonds (the "Refunding Amendment") (the Lease-Purchase
Agreement as amended by the First Amendment, the Second Amendment and the Refunding
Amendment shall be referred to as the "Lease"), in order to provide for the refunding of the Bonds
Being Refunded; (2) approve the sale by the Corporation of its Refunding Bonds in a manner that is
in the best interests of the Corporation and the Town, to be secured by Rental Payments made
pursuant to the terms of the Lease, and issued pursuant to the 2000 Indenture, as supplemented by the
First Supplement, the Second Supplement and the Refunding Supplement to Trust Indenture, dated as
of March 1, 2005 or the date of the Refunding Bonds (the "Refunding Supplement") (collectively, the
2000 Indenture as supplemented by the First Supplement, the Second Supplement and the Refunding
Supplement shall be referred to as the "Indenture"); and
WHEREAS, there have been placed on file with the Town and presented to the
Town Clerk at this meeting the forms containing substantially the final terms and provisions of the
following documents: (i) the Refunding Amendment; (ii) the Refunding Supplement; (iii) the
Continuing Disclosure Undertaking dated the date of the Refunding Bonds (the "Undertaking");
(iv) the proposed form of a Depository Trust Agreement to be dated March 1, 2005 or the dated date
of the Refunding Bonds (the "Depository Trust Agreement") by and among Zions First National
Bank, as depository trustee (the "Depository Trustee"), the Town and the Corporation; (v) a form of
Purchase Agreement; and (vi) a preliminary official statement (the "Preliminary Official Statement")
pertaining to the Refunding Bonds; and
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WHEREAS, the Town hereby adopts this Resolution and authorizes the Town
Manager or Accounting Supervisor for the Town to complete the terms of the Refunding
Amendment, the Refunding Supplement, the Depository Trust Agreement, the Undertaking and all
other documents and certificates necessary for the issuance and sale of the Refunding Bonds in
accordance with the provisions of the Official Statement relative to the Refunding Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, THAT:
Section 1. Rescission of Resolution No. 2004-58. Resolution No. 2004-58 of
this Mayor and Council is hereby rescinded in its entirety.
Section 2. Findings and Determinations. The Mayor and Council find and
determine that the refinancing of certain of the Corporation's Series 2000 Bonds, the Series 2001
Bonds and the Series 2004 Bonds and the issuance of the Refunding Bonds pursuant to the terms of
the Lease, the Indenture, the entry into the Refunding Amendment, the Refunding Supplement, the
Depository Trust Agreement and the Undertaking are all in furtherance of the Corporation and the
Town's purposes, in the public interest and will decrease the amount of Rental Payments paid by the
Town.
Section 3. Authorization of the Refunding Bonds. The Mayor and Council
hereby approves the sale, issuance and delivery of the Refunding Bonds by the Corporation. The
Refunding Bonds shall be designated "Town of Fountain Hills, Arizona, Municipal Property
Corporation Municipal Facilities Revenue Refunding Bonds, Series 2005" and shall be issued in a
principal amount of not to exceed $10,000,000. The series designation of the Refunding Bonds may
change if the Refunding Bonds are not issued in calendar year 2005. The Refunding Bonds will be
dated such date as set forth in the Indenture and in the Purchase Agreement as completed, will
mature on July 1 in some or all of the years 2005 through 2021, inclusive, and will bear interest from
their date to the maturity or earlier redemption date of each of the Refunding Bonds provided that the
Refunding Bonds, in the aggregate, shall have a yield (as determined for federal tax law purposes)
not exceeding 4.5%. The present value savings (net of all costs of issuance of the Refunding Bonds)
caused by the refinancing of the Bonds Being Refunded shall not be less than three percent (3%) of
the aggregate principal amount of the Bonds Being Refunded.
The Refunding Bonds shall be in the denomination of $5,000 or any integral
multiples thereof; all Refunding Bonds shall be dated March 1, 2005, or such later date as is set forth
in the official statement pertaining to the Refunding Bonds, and shall bear interest from such date
payable on January 1 and July 1 of each year, commencing July 1, 2005 and shall be fully registered
Bonds without coupons initially issued in book-entry form as provided in the Indenture. A blanket
letter of representations relating to The Depository Trust Company's book-entry program and any
contract required to implement such book-entry program has been signed on behalf of the
Corporation.
The forms, terms and provisions of the Refunding Bonds and the provisions for the
signatures, authentication, payment, registration, transfer, exchange, redemption and number shall be
as set forth in the Indenture and as such, are hereby approved. The Town Manager or Accounting
Supervisor is authorized to modify any terms or provisions of the Refunding Bonds, provided such
terms and provisions are within the parameters of this Resolution.
The Refunding Bonds shall be delivered to or upon the order of the Underwriter upon
receipt of payment therefor. The officers, employees and attorneys of the Town and the Corporation
are hereby vested with all power and authority to issue, sell and deliver the Refunding Bonds in
accordance herewith and with the provisions of the Purchase Agreement.
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Section 4. Authorization of Documents. The form, terms and provisions of the
Refunding Amendment, the Refunding Supplement, the Undertaking, the Purchase Agreement and
the Depository Trust Agreement (including all exhibits thereto) are hereby approved in substantially
the form of such documents presented at the meeting at which this Resolution was adopted or on file
with the Town, with such insertions, deletions and changes as shall be approved by the Town
Manager or the Accounting Supervisor of the Town, with the concurrence of the President of the
Corporation. The Mayor, Vice Mayor, Town Manager or Accounting Supervisor of the Town, are
each specifically authorized to insert the final terms and conditions of the Refunding Bonds in any of
the foregoing documents, so long as such term and conditions are within the parameters of this
Resolution. The Mayor, Vice Mayor, Town Manager or Accounting Supervisor of the Town, are
each hereby authorized and directed to execute and deliver the documents approved by this
Resolution which are to be executed by or for the Town and such other documents and instruments
and make such certifications and declarations as are necessary to complete the transaction and the
execution and delivery of such documents shall be conclusive evidence of such approval.
Section 5. Refunding of Bonds Being Refunded. The refunding of the Bonds
Being Refunded is hereby authorized. With the advice of the Financial Advisor, the Accounting
Supervisor of the Town shall determine and identify the principal amounts and maturity dates of the
Series 2000 Bonds, the Series 2001 Bonds and the Series 2004 Bonds which will constitute the
Bonds Being Refunded, and the dates on which they shall be redeemed in advance of maturity.
Proceeds of the Refunding Bonds will be deposited with the Depository Trustee, pursuant to the
Depository Trust Agreement and invested in U.S. Government securities, the maturing principal and
interest of which will provide for the payment of the debt service on the Bonds Being Refunded and
the redemption of the Bonds Being Refunded on the dates set therefor. The Depository Trustee is
authorized and directed, as provided in the Depository Trust Agreement, to transfer to the Depository
Trustee such amounts at such times as necessary to make such payments.
The Town Manager or Accounting Supervisor is hereby authorized and directed to
transfer moneys on deposit with the Town that are to be used to pay Rental Payments due pursuant to
the First Amendment, to the Depository Trustee to be used for the refinancing of the Series 2001
Bonds. The Town Manager or the Accounting Supervisor shall determine the amount of money to
transfer in order to complete the refinancing authorized by this Resolution.
Section 6. The Official Statement. The Preliminary Official Statement in
substantially the form presented at the meeting at which this Resolution was adopted and on file
with the Town Clerk is hereby approved for use with respect to the sale of the Refunding Bonds.
The Town Manager or Accounting Supervisors shall oversee the final preparation of the
Preliminary Official Statement. The Town Manager or Accounting Supervisor is hereby
authorized to deem such preliminary official statement "final" for all purposes of Section
240.15c2-12, General Rules and Regulations, Securities Exchange Act of 1934 (the "Rule"), and
its circulation and distribution by the Town and the Corporation are hereby approved. The Town
and the Corporation are hereby authorized and directed to cause the final official statement (the
"Official Statement") in substantially the form of the Preliminary Official Statement referred to
above to be prepared and distributed with the initial issuance of the Refunding Bonds. The
Mayor, Town Manager or Accounting Supervisor are hereby authorized to deem the Official
Statement "final" for all purposes of the Rule and to approve, execute and deliver the Official
Statement on behalf of the Town. Such execution shall be deemed conclusive evidence of
approval of the Official Statement.
Section 7. Continuing Disclosure. The Town hereby acknowledges that it is
the "obligated person" (as defined in the Rule) with respect to the Refunding Bonds and agrees to
comply with the requirements of the Rule as set forth in the Undertaking. The Town Manager,
the Accounting Supervisor and other employees, agents and contractors of the Town are
-7-
authorized to comply with the terms and provisions of the Undertaking. The Undertaking shall
be for the benefit of the beneficial holders of the Refunding Bonds. To the extent now or
hereafter permitted by law, the cost of compliance with the Rule and other terms and provisions
of the Undertaking shall be paid from Town Excise Taxes (as defined in the Lease). The failure
to provide therefor shall be a default under this section of this Resolution only and shall not be a
default for purposes of the Lease or the Indenture.
Section 8. Request for Trustee and Corporation Action. The Town hereby
requests the Corporation and the Trustee to take any and all actions necessary to cause the
issuance, sale and delivery of the Refunding Bonds and the refinancing of the Bonds Being
Refunded. The Town hereby requests the Corporation and the Trustee to take any and all action
necessary in connection with the execution and delivery of the Refunding Amendment, the
Refunding Supplement, the Undertaking, the Depository Trust Agreement and, if applicable, a
debt service reserve fund policy agreement.
The Trustee for the Series 2000, Series 2001 Bonds and the Series 2004 Bonds is
authorized and directed to take all actions necessary to refund the Bonds Being Refunded, in
accordance with instructions from the Town Manager or Accounting Supervisor of the Town.
Section 9. Security for the Refunding Bonds. For the payment of the
principal of, premium, if any, and interest on the Refunding Bonds and any other amounts due
under the Lease or Indenture, the Town shall pay and transfer to the Trustee the Rental Payments
provided for in the Lease and the other amounts required to be paid by the Town pursuant to the
provisions of the Lease.
In addition to other security provided for in the Indenture, the Town hereby
absolutely and unconditionally pledges, on a first lien basis, the Town's Excise Taxes as security
for the payment of all Rental Payments due under the Lease; provided, however, such lien shall
be on a parity basis with the lien on Excise Taxes securing the Series 2000 Bonds, the Series
2001 Bonds and the Series 2004 Bonds.
The obligation to make Rental Payments will not constitute an obligation of the
Town for which the Town is obligated to levy or pledge any form of ad valorem taxation nor
does the obligation to make Rental Payments under the Lease constitute an indebtedness of the
Town or of the State of Arizona or any of its political subdivisions within the meaning of the
Constitution of the State of Arizona or otherwise.
For all purposes of this Resolution the term "Excise Taxes" shall mean all
unrestricted fines and forfeitures, licenses and permit fees, transaction privilege (sales) taxes,
other transaction privilege, excise and business taxes, franchise fees and taxes, bed and rental
taxes and income taxes which the Town now or in the future imposes and collects, and all state
shared sales and income taxes and State revenue sharing collected and allocated or apportioned
to the Town by the State or any political subdivision thereof, which are not required by State
law, rule or regulation to be expended for other purposes. This Resolution and the execution and
delivery of the Refunding Amendment shall be deemed an amendment to all assigned
agreements (as defined in the Indenture) to include in the pledge of excise taxes all franchise
fees, fines and forfeitures collected by the Town.
The Town may, but is not obligated to, pay the Rental Payments from any other
source of funds lawfully available therefore, including (a) for Rental Payments associated with
refunding of the Series 2001 Bonds, the 0.2% Town sales tax which is dedicated to open space
-8-
purposes, or open space development fees, and (b) for Rental payments associated with
refunding of the Series 2000 Bonds or the Series 2004 Bonds, or development fees.
Section 10. Resolution a Contract. Upon delivery of the Refunding Bonds to
the initial purchaser thereof upon receipt of payment therefor, this Resolution shall be and
remain irrepealable until the Refunding Bonds and the interest thereon shall have been fully paid,
cancelled and discharged.
Section 11. Approving Insurance. The Town Manager or Accounting
Supervisor is authorized to aid the Corporation in acquiring for the Refunding Bonds a financial
guaranty insurance policy and to pay the Initial Insurance Premium (as defined in the Indenture),
if the Town Manager or the Accounting Supervisor determines such policy is in the best interests
of the Town and the Corporation. The Town Manager or the Accounting Supervisor may expend
or provide for the reimbursement from Refunding Bond proceeds the amount required to
purchase bond insurance or other credit enhancements for all or part of the Refunding Bonds.
The Town Manager or the Accounting Supervisor and the Trustee are authorized and directed to
pay or cause to be paid such premiums, fees or costs, together with all other fees, costs and
expenses of issuance, from Refunding Bond proceeds. The Town Manager or the Accounting
Supervisor is authorized to make such changes to the Refunding Amendment, Refunding
Supplement and other agreements as may be requested by any provider of credit enhancement or
the rating agencies if such changes are determined by the Town Manager or the Accounting
Supervisor to be in the best interests of the Town and the Corporation.
Section 12. Qualified Surety Obligation. The Town Manager or the
Accounting Supervisor of the Town is hereby authorized and directed, if it is in the best interest
of the Town and the Corporation, to obtain a Qualified Surety Obligation conforming to the
requirements of the Indenture or provide cash in order to meet the Reserve Requirement. The
Trustee is authorized and directed to accept the Qualified Surety Obligation or cash if such
deposit complies with the Indenture. The Corporation and the Town and the officers thereof are
further authorized and directed to take such action and execute such documents and agreements,
including the debt service reserve fund policy agreement or such other agreement for repayment
of draws under the Qualified Surety Obligation, as may be necessary to obtain the Qualified
Surety Obligation.
Section 13. Issuance in One or More Series. If it is advantageous to the
Corporation and the Town, as determined by the Town Manager or the Accounting Supervisor of
the Town, the Refunding Bonds may be issued in more than one series from time to time,
without further action of the Board or the Council, provided that the aggregate principal amount
of all such series not exceed $10,000,000. If issued in more than one series, each series shall be
designated to distinguish it from the others, and shall have such dated date, interest rates,
maturity dates, principal amounts, redemption provisions and other terms as are determined
pursuant to the provisions hereof, and all references herein to the Refunding Bonds, the
Refunding Amendment, the Refunding Supplement and other documents shall also refer to the
bonds and corresponding similar documents entered into from time to time for each separate
series with such titles, dated date and other designations as may be appropriate to distinguish the
documents of each series. The sale and issuance of the Refunding Bonds may be combined with
the issuance and sale by the Corporation of any series of its bonds.
Section 14. Redemption of Certain Bonds Being Refunded. Some or all of the
maturities of the Bonds Being Refunded may be refunded. The Mayor and Council hereby
determine that the maturities of the Bonds Being Refunded and the times that the Bonds Being
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Refunded will be redeemed will be determined by the Town Manager or the Accounting Supervisor
and will be as set forth in the Official Statement.
Section 15. Authorization and Ratification. All actions of the officers and
agents of the Corporation, the Town which conform to the purposes and intent of this Resolution
and which further the issuance and sale of the Refunding Bonds as contemplated by this
Resolution, whether heretofore or hereafter taken are ratified, confirmed and approved. The
proper officers and agents of the Town are authorized and directed to do all such acts and things
and to execute and deliver all such documents on behalf of the Town as may be necessary to
carry out the terms and intent of this Resolution.
Section 16. Severability. If any section, paragraph, clause or phrase of this
Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause or phrase shall not affect any of the remaining
provisions of this Resolution.
Section 17. Emergency. In light of the sensitivity of the refinancing to a
change in interest rates and other reasons, the immediate operation of the provisions of this
Resolution is necessary for the preservation of the public peace, health, life and property of the
Town of Fountain Hills, an emergency is hereby declared to exist, and this Resolution shall be in
full force and effect from and after its passage, adoption and approval by the Mayor and Council
of the Town of Fountain Hills, and it is hereby exempt from the referendum provisions of the
Constitution and laws of the State of Arizona.
PASSED, ADOPTED AND APPROVED on February 17, 2005.
____________________________________
Mayor, Town of Fountain Hills, Arizona
ATTEST:
Clerk, Town of Fountain Hills, Arizona,
APPROVED AS TO FORM:
GUST ROSENFELD P.L.C.
Bond Counsel
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CERTIFICATION
I, Bev Bender, the duly appointed and acting Clerk of the Town of Fountain Hills,
Arizona, do hereby certify that the above and foregoing Resolution No. _____ was duly passed
by the Mayor and Council of the Town of Fountain Hills, Arizona, at a regularly scheduled
meeting held on February 17, 2005 and the vote was ____ aye's, ____ nay's and ____ absent, that
the Mayor and ____ Council Members were present thereat.
DATED: _______________, 2005.
Clerk, Town of Fountain Hills, Arizona
SWR:gmh 565002 02/01/05
Town of Fountain Hills
Town Council Agenda Action Form
Meeting Type: Regular Meeting Meeting Date: 2/17/2005
Submitting Department: Admin Contact Person: Julie Ghetti
Consent: Regular: Requesting Action: Report Only:
Type of Document Needing Approval (Check all that apply):
Public Hearing Resolution Ordinance
Agreement Emergency Clause Special Event Permit
Special Consideration Intergovernmental Agreement Acceptance
Grant Submission Liquor/Bingo License Application Plat
Special Event Permit Special/Temp Use Permit
Other:
Council Priority (Check Appropriate Areas):
Education Public Fitness Library Services
Public Safety Community Activities Economic Development
Public Works Human Service Needs Parks & Recreation
Town Elections Community Development Finance
Regular Agenda Wording: CONSIDERATION of RESOLUTION 2005-19, relating to finance;
authorizing and providing for the issuance and sale of not to exceed $8,500,000 aggregate principal amount
of Town of Fountain Hills, Arizona, General Obligation refunding bonds, series 2005; delegating the
authority to approve certain matters with respect to the bonds and the bonds being refunded; providing for
the annual levy of a tax for the payment of the bonds; authorizing the appointment of a registrar, transfer
agent and paying agent and a depository trustee; approving the form of certain documents and authorizing
completion, execution and delivery thereof; delegating the authority to approve and deem final a form of
official statement; ratifying all actions taken and to be taken with respect to the bonds in furtherance of this
resolution; and declaring an emergency.
Staff Recommendation: Approve Fiscal Impact: Yes $268,877 Savings
Purpose of Item and Background Information: The latest market conditions indicate that net present
value savings of $268,877 can be realized from refunding a portion of the General Obligation bonds, Series
1995, Series 1999, Series 2000 and Series 2001. Refunding the bonds meets the Town's debt policy of debt
service savings exceeding 3% of the principal amount of the bonds. General Obligation bonds are voter
approved and repaid through ad valorem property taxes.
List All Attachments as Follows: Interoffice Memorandum, Savings Report from Peacock, Hislop, Staley
& Given, Inc., Resolution 2005-19.
Type(s) of Presentation: Oral
Signatures of Submitting Staff:
____________________________ _____________________________________
Department Head Budget Review
(if item not budgeted or exceeds budget amount)
____________________________
Town Manager / Designee
TOWN OF FOUNTAIN HILLS
FINANCE DEPARTMENT
INTER OFFICE MEMO
TO: Honorable Mayor and Town Council DT: February 12, 2005
THROUGH: Timothy Pickering, Town
Manager
FR: Julie A. Ghetti, MPA,CPA,CGFM RE: Resolutions 2005-19 and 2005-20
The Town of Fountain Hills has four voter-approved General Obligation (GO) bond issues
outstanding that were issued between 1995 and 2001 (street paving, open space on the ridge behind
fountain lake, library/museum and open space in the McDowell mountains). The Town’s financial
advisors from Peacock, Hislop, Staley & Given have been monitoring the municipal bond market
for opportunities to provide savings on the annual debt service payments which are repaid through
property taxes. The Town’s debt policy requires that refunding bonds be measured against a
standard of the net present value debt service savings exceeding 3% of the principal amount of the
bonds being refunded. The current analysis, provided by the Financial Advisors, has indicated that
current market conditions are such that refunding (refinancing) a portion of the bonds would
provide debt service savings to the taxpayers. A savings summary is attached indicating total
present value savings, net of all costs of issuance, of $268,877 (3.77% of principal amount of prior
bonds) under current bond market conditions.
The Town of Fountain Hills has three Municipal Facilities Revenue (MPC) bond issues outstanding
that were issued for the Community Center (Series 2000), McDowell mountain open space (Series
2001) and Civic Center Phase II (Series 2004). The annual debt service for the MPC bonds is paid
from local sales tax revenue. Refunding a portion of the first two issues would provide total present
value savings, net of all costs of issuance, of $367,105 (5.75% of principal amount of prior bonds)
under current bond market conditions; a savings summary is attached. The MPC board met on
Thursday, February 10 and approved Resolution MPC2005-01 authorizing the sale of the refunding
bonds.
The Town issued a Request for Proposal (RFP) for the bond underwriting firms; after review and
evaluation of the proposals, RBC Dain Rauscher was selected as Senior Manager and Piper Jaffray
was selected as Co-Manager.
Resolution 2005-19 authorizes the refunding of the GO bonds and Resolution 2005-20 authorizes
the refunding of the MPC bonds. Staff is recommending approval of both resolutions.
TOWN OF FOUNTAIN HILLS, ARIZONA
MUNICIPAL PROPERTY CORPORATION
General Obligation Refunding Bond Analysis
January 20, 2005
TOWN OF FOUNTAIN HILLS, ARIZONA
$7,690,000
GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2005
(Dated: 4/1/05; Delivered: 4/05/05)
Estimated Sources and Uses of Funds
SOURCES
Principal Amount of Refunding Bonds $7,690,000.00
Net Premium on the Bonds 56,857.20
Debt Service Fund Transfer 575,920.00
Accrued Interest 2,927.85
Total $8,325,705.05
USES
Estimated Cost of Refunding Escrow* $7,603,102.91
Defeased July 1, 2005, Debt Service** 575,920.00
Bond Insurance Premium (Est. @ 0.200%) 19,741.40
Estimated Costs of Issuance 67,000.00
Underwriting Fee (Est. @ 0.700%) 53,830.00
Debt Service Fund Deposit 6,110.74
Total $8,325,705.05
** Assumes no negative arbitrage using SLGs as of 1/13/05.
** Assumes $560,000 principal amount of bonds maturiong on July 1, 2005, is defeased
** to assist with meeting par-to-par requirement.
Savings Summary
Nominal Savings: $432,079
Present Value Savings: $268,877
Par Amount of Bonds Refunded: $7,130,000
as % of Prior Bonds: 3.77%
Prepared by: Peacock Hislop
1/20/2005
TOWN OF FOUNTAIN HILLS, ARIZONA
$7,690,000
GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2005
(Dated: 4/1/05; Delivered: 4/05/05)
Estimated Costs of Issuance
(1) Bond Counsel $25,750.00
(2) Financial Advisor 15,000.00
(3) Underwriter's Counsel 7,500.00
(4) Credit Rating 5,000.00
(5) Official Statement Printing 5,500.00
(6) Trustee / Registrar / Paying Agent 2,250.00
(7) Verification Agent 4,000.00
(8) Miscellaneous 2,000.00
$67,000.00
(1) Gust Rosenfeld
(2) Peacock Hislop
(3) to come
(4) Moody's Investors Service
(5) Peacock Hislop & I-Deal
(6) to come
(7) Causey, Demgen & Moore
(8) remaining amounts are returned to the debt service fund
Prepared by: Peacock Hislop
1/20/2005
TOWN OF FOUNTAIN HILLS, ARIZONAGeneral Obligation Bonds Outstanding by Issue (000's omitted)$2,455,000 $1,400,000 $3,700,000 $6,000,000General Obligation General Obligation General Obligation General ObligationRefunding Bonds, Bonds, Bonds, Prj. of 99 Bonds, Prj. of 97Series 1995 Series 1999 Series B (2000)Series 2001Dated: 11/1/95 Dated: 8/1/99 Dated: 6/1/00 Dated: 12/1/01July 1stPrincipal Coupon Principal Coupon Principal Coupon Principal Coupon Total2005 $255 4.900% $75 6.500% $225 5.100% $250 6.000% $8052006 275 5.000% 75 4.500% 250 5.150% 250 6.000% 8502007 295 5.000% 100 4.600% 250 5.200% 250 6.000% 8952008 315 5.200% 100 4.700% 275 5.250% 275 4.125% 9652009 310 5.250% 100 4.800% 275 5.250% 275 4.250% 9602010 335 5.300% 100 4.900% 300 5.300% 300 4.300% 1,0352011 125 5.000% 325 5.400% 300 4.400% 7502012 125 5.000% 325 5.500% 325 4.500% 7752013 125 5.000% 350 5.500% 325 4.650% 8002014 125 5.100% 375 5.500% 350 4.750% 8502015350 4.875% 3502016375 5.000% 3752017400 5.000% 4002018425 5.000% 4252019425 5.000% 4252020450 5.000% 450$1,785 $1,050 $2,950 $5,325 $11,110CALL: 7/1/06 and after 7/1/10 and after 7/1/09 and after 7/1/11 and afteron 7/1/05 @ 101.0% on 7/1/09 @ 101.0% on 7/1/08 @ 102.0% on 7/1/10 @ 100.0%Maturities identified for refinancing.Prepared By: Peacock Hislop1/13/2005
TOWN OF FOUNTAIN HILLS, ARIZONAProjected Secondary Tax Rate, Levy Capacity and Bonding Capacity(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)$11,110,000ProjectedGeneral Obligation Levy CapacityGeneral ObligationSecondarySRP In-LieuBonds Outstanding@ $0.42 (4)Bonding CapacityFiscal AssessedAssessedSecondarySecondarySecondaryYear Value (1)Value (2)Principal InterestTotal Tax Rate (3)LevyTax Rate (3)6% 20%2004/05 $349,398,334 $5,714,409 $805,000 $562,511 $1,367,511 $0.42 $16,228,900 $63,504,6672005/06 377,350,201 5,714,409 850,000 518,666 1,368,666 0.36 $221,052 $0.06 18,386,012 69,420,0402006/07 407,538,217 5,714,409 895,000 473,666 1,368,666 0.33 346,332 0.08 20,722,293 75,782,6432007/08 440,141,274 5,714,409 965,000 426,316 1,391,316 0.31 458,985 0.10 23,223,476 82,653,2552008/09 475,352,576 5,714,409 960,000 379,455 1,339,455 0.28 656,973 0.14 25,926,155 90,070,5152009/10 513,380,782 5,714,409 1,035,000 332,255 1,367,255 0.26 786,990 0.15 28,792,847 98,051,1562010/11 523,648,398 5,714,409 750,000 280,800 1,030,800 0.19 1,166,056 0.22 30,043,904 100,504,6802011/12 534,121,366 5,714,409 775,000 243,800 1,018,800 0.19 1,221,518 0.23 30,997,282 103,024,2732012/13 544,803,793 5,714,409 800,000 205,050 1,005,050 0.18 1,279,601 0.23 31,963,228 105,610,7592013/14 555,699,869 5,714,409 850,000 164,438 1,014,438 0.18 1,315,432 0.23 32,966,992 108,239,9742014/15 566,813,866 5,714,409 350,000 120,813 470,813 0.08 1,905,180 0.33 34,008,832 110,937,7732015/16 578,150,144 5,714,409 375,000 103,750 478,750 0.08 1,944,288 0.33 34,689,009 113,555,0292016/17 589,713,146 5,714,409 400,000 85,000 485,000 0.08 1,986,024 0.33 35,382,789 116,242,6292017/18 601,507,409 5,714,409 425,000 65,000 490,000 0.08 2,029,971 0.33 36,090,445 119,001,4822018/19 613,537,558 5,714,409 425,000 43,750 468,750 0.08 2,101,146 0.34 36,812,253 121,832,5122019/20 625,808,309 5,714,409 450,000 22,500 472,500 0.07 2,148,319 0.34 37,548,499 124,711,662$11,110,000(1) 2004/05 is actual. 2005/06 - 2009/10 assume 8.0% annual growth. Future years thereafter assume no growth or decline.(2) 2004/05 is actual. Future years thereafter assume no growth or decline.(3) 2004/05 is actual tax rate for bonds. All tax rates are per $100 of assessed value. Projected tax rates are not adjusted for interest earnings or delinquent taxes.(4) Projects the amount of unused levy and tax rate assuming the 2004/05 secondary bond tax rate is maintained.Prepared By: Peacock Hislop1/20/2005
RESOLUTION NO. 2005-19
RESOLUTION RELATING TO FINANCE; AUTHORIZING AND PROVIDING FOR THE
ISSUANCE AND SALE OF NOT TO EXCEED $8,500,000 AGGREGATE PRINCIPAL
AMOUNT OF TOWN OF FOUNTAIN HILLS, ARIZONA, GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2005; DELEGATING THE AUTHORITY TO APPROVE
CERTAIN MATTERS WITH RESPECT TO THE BONDS AND THE BONDS BEING
REFUNDED; PROVIDING FOR THE ANNUAL LEVY OF A TAX FOR THE PAYMENT OF
THE BONDS; AUTHORIZING THE APPOINTMENT OF A REGISTRAR, TRANSFER
AGENT AND PAYING AGENT AND A DEPOSITORY TRUSTEE; APPROVING THE FORM
OF CERTAIN DOCUMENTS AND AUTHORIZING COMPLETION, EXECUTION AND
DELIVERY THEREOF; DELEGATING THE AUTHORITY TO APPROVE AND DEEM
FINAL A FORM OF OFFICIAL STATEMENT; RATIFYING ALL ACTIONS TAKEN AND
TO BE TAKEN WITH RESPECT TO THE BONDS IN FURTHERANCE OF THIS
RESOLUTION; AND DECLARING AN EMERGENCY.
WHEREAS, the following bonds have been issued and are outstanding:
1. Town of Fountain Hills, Arizona, General Obligation Bonds, Series 1995
2. Town of Fountain Hills, Arizona, General Obligation Bonds, Project of 1997, Series 2001
3. Town of Fountain Hills, Arizona, General Obligation Bonds, Project of 1999, Series 1999
4. Town of Fountain Hills, Arizona, General Obligation Bonds, Project of 1999, Series B (2000)
(the "Prior Bonds"); and
WHEREAS, the Mayor and Council of the Town of Fountain Hills, Arizona (the
"Town"), find that the issuance of not to exceed $8,500,000 principal amount of General Obligation
Refunding Bonds, Series 2005 (the "Bonds") for the purpose of refunding all or a portion of the Prior
Bonds (the "Bonds Being Refunded") is necessary and advisable and is in the best interests of the Town
to lower the debt service payments due on its general obligation debt and consequently lower the tax
rate required to pay such debt; and
WHEREAS, in accordance with applicable law, the aggregate amounts of principal of
and interest on the Bonds shall not exceed the aggregate principal of and interest on the Bonds Being
Refunded which will become due from the date of issuance of the Bonds to the final maturity date of the
Bonds Being Refunded; and
WHEREAS, the Mayor and Council will receive a proposal for the purchase of the
Bonds from RBC Dain Rauscher Inc. (as senior book-running manager) and Piper Jaffray & Co. (as co-
managing underwriter) (collectively, the "Underwriter") in the form of bond purchase agreement now on
file with the Town (the "Purchase Agreement") and the Town desires that the Bonds be sold through
negotiation to the Underwriter on such terms as may hereafter be approved by the Town Manager or the
Accounting Supervisor and agreed to by the Underwriter; and
WHEREAS, the firm of Peacock, Hislop, Staley & Given, Inc. will serve as the Town's
financial advisor (the "Financial Advisor") with respect to the Bonds sold to the Underwriter; and
WHEREAS, by this resolution the Mayor and Council will approve a form of Purchase
Agreement now on file and order the Purchase Agreement to be completed with the final terms of the
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Bonds and entered into between the Town and the Underwriter when the final terms have been determined
for the sale of the Bonds; and
WHEREAS, by this resolution the Mayor and Council will authorize the execution,
issuance and sale of the Bonds to the Underwriter in accordance with the Purchase Agreement and at such
prices, interest rates, maturities and redemption features as may be hereafter determined by the Town
Manager or the Accounting Supervisor, with the advice of the Financial Advisor, and agreed to by the
Underwriter; and
WHEREAS, all acts, conditions and things required by the constitution and laws of the
State of Arizona to happen, exist and be performed precedent to and in the enactment of this resolution
have happened, exist and have been performed as so required in order to make this resolution a valid
and binding instrument for the security of the Bonds authorized herein;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
TOWN OF FOUNTAIN HILLS, ARIZONA, as follows:
Section 1. Authorization. For purposes of providing funds to refund all or a portion
of the Prior Bonds, Town of Fountain Hills, Arizona, General Obligation Refunding Bonds, Series 2005,
in an aggregate principal amount of not to exceed $8,500,000 are hereby authorized to be issued and
sold in one or more series in accordance with the provisions of this resolution and delivered against
payment therefor by the Underwriter. The series designation of the Bonds may change if the Bonds are
not sold in calendar year 2005. The Bonds will be issued to provide funds to refund all or a portion of
the Prior Bonds as selected by the Town Manager or Accounting Supervisor, and to pay the costs of
issuance of the Bonds. The Mayor and Council find and determine that it is expedient, necessary and
advisable for the Town to restructure a portion of its outstanding bonded debt to lower the aggregate tax
burden for the Town's taxpayers. It is estimated and hereby required by the terms of this resolution that
the present value of the debt service savings that will occur, net of all costs associated with the Bonds,
shall be not less than 3% of the principal amount of the Bonds Being Refunded.
Section 2. Terms.
A. Bonds. The Bonds will be dated such date as set forth in the Purchase Agreement,
will mature on July 1 in some or all of the years 2005 through 2020, inclusive, and will bear interest
from their date to the maturity or earlier redemption date of each of the Bonds provided that the bond
yield for the entire series of the Bonds shall not exceed 4.5%.
The principal amount maturing in each year, the interest rates applicable to each
maturity, the optional and mandatory redemption provisions and any other final terms of the Bonds shall
be as set forth in the Purchase Agreement and approved by the Town Manager or the Accounting
Supervisor and such approval shall be evidenced by the execution and delivery of the Purchase
Agreement. The Bonds are expected to be initially issued in fully registered book-entry-only form in
denominations equal to the respective year's maturity amount. If the book-entry-only system is
discontinued, the Bonds will be in the denominations of $5,000 each or integral multiples thereof.
Interest on the Bonds shall be payable semiannually on each January 1 and July 1 (each an Interest
Payment Date) during the term of the Bonds, commencing July 1, 2005 (or on a later date as set forth in
the Purchase Agreement).
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B. Book-Entry-Only System. So long as the Bonds are administered under the book-
entry-only system described herein, interest payments and principal payments that are part of periodic
principal and interest payments shall be paid to Cede & Co. or its registered assigns in same-day funds
no later than the time established by DTC on each interest or principal payment date (or in accordance
with then-existing arrangements between the Town and DTC). The Town Manager or the Accounting
Supervisor is hereby authorized to enter into an agreement (the "Letter of Representations") with DTC
in connection with the issuance of bonds of the Town, including the Bonds and, while the Letter of
Representations is in effect, the procedures established therein shall apply to the Bonds.
C. Registration. If the book-entry-only system is discontinued, the Registrar's (as
defined hereafter) registration books shall show the registered owners of the Bonds (the owner or
owners of the Bonds as shown on the Registrar's registration books shall be referred to as "Owner" or
"Owners"). While the Bonds are subject to the book-entry-only system, the Bonds shall be registered in
the name of Cede & Co., or its registered assigns. The Bonds will be administered by the Registrar in a
manner which assures against double issuance and provides a system of transfer of ownership on the
books of the Registrar in the manner set forth in the Bonds.
D. Payment. If the book-entry-only system is discontinued, interest on the Bonds will
be payable on each Interest Payment Date by the Paying Agent (as hereafter defined) by check mailed to
the Owner thereof at such Owner's address as shown on the registration books maintained by the
Registrar as of the close of business of the Registrar on the Record Date (as such term is defined in
Section 10 hereof.
If the book-entry-only system is discontinued, principal of the Bonds will be payable,
when due, only upon presentation and surrender of the Bond at the designated corporate trust office of
the Paying Agent (as defined hereafter). Upon written request made twenty days prior to an interest
payment date by an Owner of at least $1,000,000 in principal amount of Bonds outstanding all payments
of interest and, if adequate provision for surrender is made, principal and premium, if any, shall be paid
by wire transfer in immediately available funds to an account within the United States of America
designated by such Owner.
Notwithstanding any other provision of this resolution, payment of principal of and
interest on any Bond that is held by a securities depository or Bonds subject to a book-entry-only system
may be paid by the Paying Agent by wire transfer in "same day funds".
F. Other Terms. The Bonds shall have such other terms and provisions as are set
forth in Exhibit A hereto and shall be sold under the terms and conditions set forth in the Purchase
Agreement.
Section 3. Prior Redemption.
A. Optional Redemption. The Bonds may be subject to redemption as determined by
the Town Manager or the Accounting Supervisor and set forth in the Purchase Agreement.
B. Mandatory Redemption. The Bonds may be subject to mandatory redemption as
determined by the Town Manager or the Accounting Supervisor and set forth in the Purchase Agreement.
Whenever Bonds subject to mandatory redemption are purchased, redeemed (other than
pursuant to mandatory redemption) or delivered by the Town to the Registrar for cancellation, the
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principal amount of the Bonds so retired shall satisfy and be credited against the mandatory redemption
requirements for such Bonds for such years as the Town may direct.
C. Notice of Redemption. Notice of redemption of any Bond will be filed with the
Paying Agent and mailed to the registered owner thereof at the address shown on the books of the
Registrar not more than sixty (60) nor less than thirty (30) days prior to the redemption date. Notice of
redemption may be given to any securities depository by mail, facsimile, wire or other generally
accepted means of transmission of such notices. Failure to properly give notice of redemption shall not
affect the redemption of any bond for which notice was properly given.
D. Effect of Call for Redemption. On the date designated for redemption by notice
given as herein provided, the Bonds so called for redemption shall become and be due and payable at
the redemption price provided for redemption of such Bonds on such date, and, if moneys for payment
of the redemption price are held in separate accounts by the Paying Agent, interest on such Bonds or
portions of Bonds so called for redemption shall cease to accrue, such Bonds shall cease to be entitled to
any benefit or security hereunder and the Owners of such Bonds shall have no rights in respect thereof
except to receive payment of the redemption price thereof and such Bonds shall be deemed paid and no
longer outstanding.
E. Redemption of Less Than All of a Bond. The Town may redeem an amount which
is included in a Bond in the denomination in excess of, but divisible by, $5,000. In that event, the
registered owner shall submit the Bond for partial redemption and the Paying Agent shall make such
partial payment and the Registrar shall cause to be issued a new Bond in a principal amount equal to the
unpaid amount remaining on such Bond after the redemption to be authenticated and delivered to the
registered owner thereof.
Section 4. Security. For the purpose of paying the principal and premium (if any) of,
interest on and costs of administration of the registration and payment of the Bonds, there shall be levied
on all the taxable property in the Town a continuing, direct, annual, ad valorem tax sufficient to pay all
such principal, interest and administration costs as the same becomes due, such taxes to be levied,
assessed and collected at the same time and in the same manner as other taxes are levied, assessed and
collected. Taxes levied with respect to the payment of principal of and interest on the Bonds shall be
limited as follows: the total aggregate of taxes levied to pay principal of and interest on the Bonds in the
aggregate shall not exceed the total aggregate principal and interest to become due on the Bonds Being
Refunded, calculated from the date of issuance of the Bonds to the final maturity date of the Bonds Being
Refunded; and further, if the trust created to pay principal of and premium and interest on the Bonds Being
Refunded is insufficient to make such payments when due, any taxes levied to pay principal and interest on
the Bonds shall first be applied to the payments of amounts due on the Bonds Being Refunded. The
proceeds of the taxes shall be kept in a special fund of the Town entitled the "Debt Service Fund" and shall
be used only for the payment of principal, interest, premium, if any, or costs as above-stated.
Upon creation of the trust for payment of the Bonds Being Refunded, all moneys
collected during the current fiscal year which would otherwise have been credited to the Interest and
Redemption Funds for the Bonds Being Refunded shall be credited to the Interest and Redemption
Funds created to service the Bonds.
Section 5. Use of Proceeds. Upon the delivery of and payment for the Bonds in
accordance with the terms of their sale, the net proceeds from the sale of the Bonds, after payment of the
costs and expenses of issuance, shall be set aside, together with certain funds of the Town, if any, required
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to pay the Bonds Being Refunded, in a special trust fund maintained by a bank or trust company selected by
the Town Manager or the Accounting Supervisor as depository trustee (the "Depository Trustee") and shall
be used to pay, when due, principal of and interest and premium on the Bonds Being Refunded, all as more
fully described in that certain Depository Trust Agreement dated the date of the Bonds (the "Depository
Trust Agreement"), by and between the Town and the Depository Trustee. Amounts credited to the trust,
other than any beginning cash balance, shall be invested immediately in obligations issued by or guaranteed
by the United States of America the maturing principal of and interest on which, together with any
beginning cash balance, shall be sufficient to pay the principal of and premium and interest on the Bonds
Being Refunded as the same becomes due at maturity or prior redemption as provided herein.
Any balance of the net proceeds of the Bonds remaining after creation of the trust for the
Bonds Being Refunded shall be transferred to the Debt Service Fund for the Bonds.
Section 6. Form of Bonds. The Bonds shall be issued in book-entry-only form and,
so long as the book-entry-only system is in effect, the Bonds shall be in substantially the form of Exhibit A
attached hereto and incorporated by reference herein, with such necessary and appropriate omissions,
insertions and variations as are permitted or required hereby or by the Purchase Agreement and are
approved by those officers executing the Bonds; execution thereof by such officers shall constitute
conclusive evidence of such approval. If the book-entry-only system is discontinued, the forms of the
Bonds shall be adjusted to accommodate the requirements of non-book-entry bonds.
The Bonds may have notations, legends or endorsements required by law, securities
exchange rule or usage. Each Bond shall show both the date of the issue and the date of such Bond's
authentication and registration. The Bonds are prohibited from being converted to coupon or bearer form
without the consent of the Mayor and Council and approval of bond counsel.
Section 7. Execution of Bonds and Other Documents.
A. The Bonds. The Bonds shall be executed for and on behalf of the Town by the
Mayor, attested by the Clerk and countersigned by the Accounting Supervisor by their manual or
facsimile signatures and the Town seal will be either photographically, mechanically or manually
imprinted, affixed or reproduced on the Bonds. If an officer whose signature is on a Bond no longer
holds that office at the time the Bond is authenticated and registered, such Bond shall nevertheless be
valid. A Bond shall not be valid or binding until authenticated by the manual signature of an authorized
representative of the Registrar. The signature of the authorized representative of the Registrar shall be
conclusive evidence that such Bond has been authenticated and issued pursuant to this resolution.
B. Purchase Agreement. The form of the Purchase Agreement, as presented to the
Council, is hereby approved and the Mayor, any member of the Council, the Town Manager or the
Accounting Supervisor is hereby authorized to execute the Purchase Agreement on behalf of the Town.
The Town Manager or the Accounting Supervisor shall cause the Purchase Agreement to be completed
to reflect the terms of the Bonds, including the price at which the Bonds are sold and provisions for
original issue premium or original issue discount with respect thereto. The execution and delivery of the
Purchase Agreement, as completed, by the Mayor, any member of the Council, the Town Manager or
the Accounting Supervisor shall be conclusive evidence of approval of such final terms and provisions.
C. Registrar Contract. The form of Registrar's contract presented to the Mayor and
Council and on file with the Town Clerk concerning duties of the Registrar, Transfer Agent and Paying
Agent for the Bonds is hereby approved and the Mayor, the Clerk, the Town Manager or the Accounting
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Supervisor is hereby directed to execute such contract on behalf of the Town with such necessary and
appropriate omissions, insertions and variations as are permitted or required hereby and are approved by
those officers executing the documents and cause such respective contract to be delivered. Execution by
such officers shall constitute conclusive evidence of such approval.
D. Depository Trust Agreement. The form of Depository Trust Agreement, as
presented to Mayor and Council and on file with the Town, concerning the refunding of the Bonds
Being Refunded is hereby approved and the Mayor, the Clerk, the Town Manager or the Accounting
Supervisor is hereby directed to execute such contract on behalf of the Town with such necessary and
appropriate omissions, insertions and variations as are permitted or required hereby and are approved by
those officers executing the documents. Execution by such officers shall constitute conclusive evidence
of such approval and cause such respective contract to be delivered.
E. Continuing Disclosure Certificate. In order to comply with the provisions of the
Rule (as hereafter defined), unless an exemption from the terms and provisions of the Rule is applicable
to the Bonds, the Mayor, the Clerk, the Town Manager or the Accounting Supervisor is hereby
authorized and directed to prepare, execute and deliver on behalf of the Town a written agreement or
undertaking for the benefit of the Owners (including beneficial owners) of the Bonds. The written
agreement or undertaking shall contain such terms and provisions as are necessary to comply with the
Rule including, but not limited to (i) an agreement to provide to each nationally recognized municipal
securities information repository and to the Arizona state information depository, if one shall be so
designated by the State of Arizona, the financial information or operating data presented in the final
official statement as determined by mutual agreement between the Town and the underwriter and
audited financial statements of the Town and (ii) an agreement to provide material events disclosure to
national recognized municipal securities information repositories or to the state information depository
hereinafter designated and the Municipal Securities Rulemaking Board.
F. Official Statement. The preparation of a preliminary official statement in a form
that is deemed "final", as hereafter described, is hereby authorized and approved and its distribution by
the Underwriter is hereby authorized and approved. Such preliminary official statement shall be in a
form that is approved and deemed "final" for all purposes of Section 240.15c2-12, General Rules and
Regulations, Securities Exchange Act of 1934 (the "Rule"), by the Mayor, the Town Manager or the
Accounting Supervisor. The Town will cause a final official statement (the "Official Statement") in
substantially the form of the preliminary official statement referred to above to be prepared and
distributed with the Bonds upon initial issuance. The Mayor, the Town Manager or the Accounting
Supervisor are authorized to approve, execute and deliver the Official Statement on behalf of the Town
and the execution by such officer shall be deemed conclusive evidence of such approval. The
preliminary official statement and the Official Statement may be prepared in conjunction with, and may
be part of the same document, the preliminary official statement and the Official Statement for any other
bonds which may be issued by the Town.
Section 8. Mutilated, Lost or Destroyed Bonds. In case any Bond becomes
mutilated or destroyed or lost, the Registrar shall cause to be executed and delivered a new Bond of like
date and tenor in exchange and substitution for and upon the cancellation of the mutilated Bond or in
lieu of and in substitution for the Bond destroyed or lost, upon the owner's paying the reasonable
expenses and charges of the Town in connection therewith and, in the case of the Bond destroyed or
lost, filing with the Registrar of evidence satisfactory to the Registrar that such Bond was destroyed or
lost, and furnishing the Registrar with a sufficient indemnity bond pursuant to § 47-8405, Arizona
Revised Statutes.
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Section 9. Acceptance of Offer; Sale of Bonds; Purchase Agreement Approval.
The Underwriter proposes to purchase the Bonds pursuant to the Purchase Agreement submitted to and on
file with the Town and such proposal as supplemented by the final terms as contemplated by this resolution
is hereby accepted. When the final terms of the Bonds are known, the Purchase Agreement shall be
finalized. The Mayor, any member of the Council, the Town Manager or the Accounting Supervisor are
authorized and directed to cause the Purchase Agreement to be completed and executed; provided,
however, that the parameters of this resolution shall govern the Purchase Agreement and neither the Mayor,
any member of the Council, the Town Manager or the Accounting Supervisor is authorized to insert in the
Purchase Agreement any terms or conditions which would be contrary to this resolution. Upon the
completion, execution and delivery of the Purchase Agreement, the Bonds are ordered sold to the
Underwriter pursuant to the Purchase Agreement.
The Town Manager or the Accounting Supervisor is hereby authorized and directed to
cause the Bonds to be delivered to or upon the order of the Purchaser upon receipt of payment therefor
and satisfaction of the other conditions for delivery thereof in accordance with the terms of the Purchase
Agreement.
Section 10. Registrar and Paying Agent. The Town will maintain an office or
agency where Bonds may be presented for registration or transfer and an office or agency where Bonds
may be presented for payment (the "Paying Agent"). The Town Manager or the Accounting Supervisor
may appoint one or more co-registrars or one or more additional Paying Agents. The Registrar and
Paying Agent may make reasonable rules and set reasonable requirements for their respective functions
with respect to the owners of the Bonds.
Initially, Zions First National Bank shall act as Registrar and Paying Agent with respect to
the Bonds. The Town may change the Registrar or Paying Agent without notice to or consent of Owners of
the Bonds and the Town may act in any such capacity.
Each Paying Agent shall be required to agree in writing that the Paying Agent will hold
in trust for the benefit of the Owners of the Bonds all moneys held by the Paying Agent for the payment
of principal of and interest and any premium on the Bonds.
The Registrar may appoint an authenticating agent acceptable to the Town to
authenticate Bonds. An authenticating agent may authenticate Bonds whenever the Registrar may do so.
Each reference in this resolution to authentication by the Registrar includes authentication by an
authenticating agent acting on behalf and in the name of the Registrar and subject to the Registrar's
direction.
The Registrar shall keep a separate register for the Bonds, which will show the Owners
of the Bonds and any transfer of the Bonds. When Bonds are presented to the Registrar or a co-registrar
with a request to register transfer, the Registrar shall register the transfer on the registration books if its
requirements for transfer are met and shall authenticate and deliver one or more Bonds registered in the
name of the transferee of the same principal amount, maturity and rate of interest as the surrendered
Bonds. All transfer fees and costs shall be paid by the transferor. The "Record Date" for the Bonds
shall be the close of business of the Registrar on the fifteenth day of the month preceding an interest
payment date or principal payment date, as applicable. The Registrar may, but shall not be required to,
transfer or exchange any Bonds during the period commencing on the Record Date to and including the
respective interest payment date. If the Registrar transfers or exchanges Bonds within the period
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referred to above, interest on such Bonds shall be paid to the person who was the Owner at the close of
business of the Registrar on the Record Date as if such transfer or exchange had not occurred.
The Registrar shall authenticate Bonds for original issue up to the original principal
amount of the Bonds upon the written request of the Town Manager or the Accounting Supervisor. The
aggregate principal amount of Bonds outstanding at any time may not exceed those amounts except for
replacement Bonds as to which the requirements of the Registrar and the Town are met.
Section 11. Resolution a Contract. This resolution shall constitute a contract between
the Town and the Owners and shall not be repealed or amended in any manner which would impair,
impede or lessen the rights of the Owners of the Bonds then outstanding. The performance by the
Mayor and Council and the officers of the Town of the obligations in this resolution, the Bonds and the
other agreements listed in Section 7 of this resolution is hereby authorized and approved.
Section 12. Ratification of Actions. All actions of the officers and agents of the
Town which conform to the purposes and intent of this resolution and which further the issuance and
sale of the Bonds as contemplated by this resolution whether heretofore or hereafter taken are hereby
ratified, confirmed and approved. The proper officers and agents of the Town are hereby authorized and
directed to do all such acts and things and to execute and deliver all such documents on behalf of the
Town as may be necessary to carry out the terms and intent of this resolution.
Section 13. Bond Insurance or Credit Enhancement. The Town Manager or the
Accounting Supervisor is hereby authorized to expend or cause to be expended Bond proceeds to
purchase bond insurance or other credit enhancements for the Bonds if deemed to be in the Town's best
interest.
Section 14. Qualified Tax-Exempt Obligations. The Bonds may be determined to be
"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code by the Town Manager
or the Accounting Supervisor and such designation will appear in the closing certificates for the Bonds
and in the final Official Statement for the Bonds.
Section 15. Tax Covenant. In consideration of the purchase and acceptance of the
Bonds by the Owners thereof and, as authorized by Arizona Revised Statutes, Title 35, Chapter 3,
Article 7, and in consideration of retaining the exclusion of interest income on the Bonds from gross
income for federal income tax purposes, the Town covenants with the Owners from time to time of the
Bonds to neither take nor fail to take any action which action or failure to act is within its power and
authority and would result in interest income on the Bonds becoming subject to inclusion as gross
income for federal income tax purposes under either laws existing on the date of issuance of the Bonds
or such laws as they may be modified or amended.
With respect to the Bonds herein authorized to be sold, the Town or a partner of Gust
Rosenfeld P.L.C., bond counsel to the Town ("bond counsel"), is authorized to execute and file on behalf
of the Town information reporting returns and to file or deliver such other information as may be
required by Section 149(e) of the Code.
The Mayor and Council hereby agree that the Town will comply with such requirements
and will take any such actions as in the opinion of bond counsel are necessary to prevent interest income
on the Bonds from becoming subject to inclusion in gross income for federal income tax purposes. Such
requirements may include but are not limited to making further specific covenants; making truthful
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certifications and representations and giving necessary assurances; complying with all representations,
covenants and assurances contained in certificates or agreements to be prepared by bond counsel; to pay
to the United States of America any required amounts representing yield reduction payments or rebates
of arbitrage profits relating to the Bonds; filing forms, statements and supporting documents as may be
required under the federal tax laws; and limiting the term of and yield on investments made with
moneys relating to the Bonds.
Section 16. Redemption of Certain Prior Bonds. Some or all of the maturities of
the Prior Bonds may be refunded. Those selected for refunding are referred to herein as the Bonds
Being Refunded. The Mayor and Council hereby order that the maturities of the Bonds Being Refunded
and the times that the Bonds Being Refunded will be redeemed will be determined by the Town
Manager or the Accounting Supervisor and will be as set forth in the Official Statement.
Section 17. Severability. If any section, paragraph, subdivision, sentence, clause or
phrase of this resolution is for any reason held to be illegal, invalid or unenforceable, such decision will
not affect the validity of the remaining portions of this resolution. The Mayor and Council hereby
declare that this resolution would have been adopted and each and every other section, paragraph,
subdivision, sentence, clause or phrase hereof and authorized the issuance of the Bonds pursuant hereto
irrespective of the fact that any one or more sections, paragraphs, subdivisions, sentences, clauses or
phrases of this resolution may be held illegal, invalid or unenforceable.
Section 18. Emergency. The immediate operation of the provisions of this resolution
is necessary for the preservation of the public peace, health and safety and an emergency is hereby
declared to exist, and this resolution will be in full force and effect from and after its passage by the
Mayor and Council and it is hereby excepted from the referendum provisions of the Constitution.
PASSED, ADOPTED AND APPROVED by the Council of Town of Fountain Hills,
Arizona, on February 17, 2005.
_______________________________________
Mayor
ATTEST:
_____________________________________
Town Clerk
APPROVED AS TO FORM:
_____________________________________
Bond Counsel
Exhibit A: Bond Form
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SWR:gmh 565002 02/01/05
CERTIFICATION
I, Bev Bender, the duly appointed and acting Town Clerk of the Town of Fountain Hills,
Arizona, do hereby certify that the above and foregoing Resolution No. ____ was duly passed by the
Town Council of the Town of Fountain Hills, Arizona, at a regular meeting held on February 17, 2005,
and the vote was ____ aye's and ___ nay's and that the Mayor and ___ Council Members were present
thereat.
DATED: _________________, 2005.
______________________________________
Town Clerk
SWR:gmh 565002 02/01/05
A-1
EXHIBIT A
(Form of Book-Entry-Only Bond)
Number: ________ Denomination: ___________
Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the
Registrar (or any successor registrar) for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of
Cede & Co. or in such other name as is requested by an authorized representative of DTC, (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), any transfer, pledge, or other use hereof for value or otherwise by
or to any person is wrongful inasmuch as the registered owner hereof, Cede & Co., has an interest herein.
TOWN OF FOUNTAIN HILLS, ARIZONA
GENERAL OBLIGATION REFUNDING BOND
SERIES 2005
Interest Maturity Original
Rate Date Dated Date CUSIP
____% July 1, 20__ _______ 1, 2005 ________ ___
Registered Owner: Cede & Co.
Principal Amount: ________________ AND NO/100 DOLLARS ($__________)
TOWN OF FOUNTAIN HILLS, ARIZONA (the "Town"), for value received, hereby
promises to pay to the registered owner identified above, or registered assigns as provided herein, on the
maturity date set forth above, the principal amount set forth above, and to pay interest on the unpaid principal
amount at the interest rate shown above.
INSERT CALL FEATURE HERE, IF APPLICABLE
Interest is payable on January 1 and July 1 of each year commencing January 1, 2006, and
will accrue from the most recent date to which interest has been paid, or, if no interest has been paid, from
the original dated date set forth above. Interest will be computed on the basis of a year comprised of 360
days consisting of twelve (12) months of thirty (30) days each.
Principal of and interest on this bond are payable in lawful money of the United States of
America. Interest payments and principal payments that are part of periodic principal and interest payments
shall be received by Cede & Co., as nominee of DTC, or its registered assigns in same-day funds no later
than the time established by DTC on each interest or principal payment date in accordance with existing
arrangements between the City and DTC.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution and laws of the State of Arizona to exist, to occur and to be performed precedent to and in the
issuance of this bond exist, have occurred and have been performed and that the series of bonds of which this
is one, together with all other indebtedness of the Town, is within every debt and other limit prescribed by
the Constitution and laws of the State of Arizona, and that due provision has been made for the levy and
SWR:gmh 565002 02/01/05
A-2
collection of a direct, annual, ad valorem tax upon all of the taxable property in the Town for the payment of
this bond and of the interest hereon as each becomes due, as limited as described herein.
This bond is one of an issue of general obligation refunding bonds in the aggregate principal
amount of $___________ of like tenor except as to amount, maturity date, redemption provisions, interest
rate and number, issued by the Town to provide funds to refund certain previously issued and outstanding
bonds of the Town, pursuant to a resolution of the Mayor and Council of the Town duly adopted prior to the
issuance hereof (the "Resolution"), and pursuant to the Constitution and laws of the State of Arizona relative
to the issuance and sale of general obligation refunding bonds, and all amendments thereto, and all other laws
of the State of Arizona thereunto enabling.
For the punctual payment of this bond and the interest hereon and for the levy and collection
of ad valorem taxes on all taxable property within the Town sufficient for that purpose, the full faith and
credit of the Town are hereby irrevocably pledged; provided, however, that the total aggregate of taxes levied
to pay principal and interest on the issue of bonds of which this bond is one, in the aggregate shall not exceed the
total aggregate principal and interest to become due on the bonds being refunded from the date of issuance of the
issue of bonds of which this bond is a part to the final date of maturity of the bonds being refunded; and subject,
further, to the rights vested in the owners of the bonds being refunded by the bonds of this issue to the payment
of such bonds being refunded from the same tax source in the event of a deficiency in the moneys and
obligations issued by or guaranteed by the United States of America purchased from the proceeds of the sale of
the bonds of this issue and placed in trust for the purpose of providing for payment of principal of and interest on
the bonds being refunded. The owner of this bond must rely on the sufficiency of the moneys and obligations
placed irrevocably in trust for payment of the bonds being refunded.
The registrar or paying agent may be changed by the Town without notice.
So long as the book-entry-only system is in effect, this bond is non-transferable. If the book-
entry-only system is discontinued, this bond is transferable by the registered owner in person or by attorney
duly authorized in writing at the designated office of the registrar, which on the original issue date is the
corporate trust office of _____________________________ upon surrender and cancellation of this bond.
Bonds of this issue will be issued only in fully registered form in the denomination of $5,000 of principal or
integral multiples thereof.
The Town, the registrar and the paying agent may treat the registered owner of this bond as
the absolute owner for the purpose of receiving principal and interest and for all other purposes and none of
them shall be affected by any notice to the contrary.
The Town has caused this bond to be executed by the Mayor, attested by the Clerk and
countersigned by the Accounting Supervisor, which signatures may be facsimile signatures and the Town
seal has been impressed on this bond. This bond is not valid or binding upon the Town without the manually
affixed signature of an authorized representative of the registrar. This bond is prohibited from being issued
in coupon or bearer form without the consent of the Town and the occurrence of certain other conditions.
SWR:gmh 565002 02/01/05
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TOWN OF FOUNTAIN HILLS, ARIZONA
Mayor
ATTEST:
Clerk
COUNTERSIGNED:
Accounting Supervisor
DATE OF AUTHENTICATION AND REGISTRATION: _______________
AUTHENTICATION CERTIFICATE
This bond is one of the Town of Fountain Hills, Arizona, General Obligation Refunding
Bonds, Series 2005, described in the resolution mentioned herein.
_____________________________, as Registrar
________________________________________
Authorized Representative
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(INSERT INSURANCE STATEMENT HERE, IF APPLICABLE)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FORM OF ASSIGNMENT
The following abbreviations, when used in the inscription on the face of this bond, shall be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT/TRANS MIN ACT-_______Custodian_______
TEN ENT - as tenants by the entireties (Cust) (Minor)
JT TEN - as joint tenants with right of survivorship under Uniform Gifts/Transfers to Minors Act (State)
and not as tenants in common
Additional abbreviations may also be used though not in list above
SWR:gmh 565002 02/01/05
A-4
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
(Name and Address of Transferee)
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints ____________
______________________________________________, attorney to transfer the within bond on the books
kept for registration thereof, with full power of substitution in the premises.
Dated _______________________
__________________________________________
Note: The signature(s) on this assignment must correspond with the
name(s) as written on the within registered bond in every particular
without alteration or enlargement or any change whatsoever.
Signature Guaranteed:
_________________________________________________
Firm or Bank
_________________________________________________
Authorized Signature
Signature guarantee should be made by a guarantor institution
participating in the Securities Transfer Agents Medallion Program
or in such other program acceptable to the Registrar
ALL FEES AND TRANSFER COSTS SHALL BE PAID BY THE TRANSFEROR
Document in R2-17-05.obd Page 1 of 3 Last printed 2/12/2005 7:57 AM
NOTICE OF EXECUTIVE AND
REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
Mayor Wally Nichols
Councilman Mike Archambault Councilman Keith McMahan
Councilman John Kavanagh Vice Mayor Kathleen Nicola
Councilman Ed Kehe Councilman Jay Schlum
DATE: THURSDAY, FEBRUARY 17, 2005
TIME: 5:30 P.M. EXECUTIVE SESSION
6:30 P.M. REGULAR SESSION
WHERE: TOWN HALL COUNCIL CHAMBERS, BUILDING B
16836 E. PALISADES BLVD., FOUNTAIN HILLS, AZ
(Executive Session will be held in the Building A Teleconference Room)
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 Council Members. 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.
• CALL TO ORDER – Mayor Nichols
Document in R2-17-05.obd Page 2 of 3 Last printed 2/12/2005 7:57 AM
1. VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S. §38-431-03.A.3, For
discussion or consultation for legal advice with the attorney or attorneys of the public body.
(Specifically, legal advice regarding the Urban Lands Act.)
2. RETURN TO REGULAR SESSION
• CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Nichols
• INVOCATION – Pastoral Assistant Pat Mullen, Church of the Ascension
• ROLL CALL – Mayor Nichols
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 property noticed for discussion and legal action. At the conclusion of the call to the
public, individual Council members 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.
5 min
CONSENT AGENDA
*1.) CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from January
21st, 2005 and February 3rd, 2005.
*2.) CONSIDERATION of RESOLUTION 2005-14, abandoning whatever right, title, or interest
the Town has in certain public utility and drainage easements located at the easterly property
line of Plat 206, Block 1, Lot 14 (16313 E. Segundo Drive) as recorded in Book 147 of Maps,
Page 2, Records of Maricopa County, Arizona. EA05-01 (Aston).
*3.) CONSIDERATION of the PRELIMINARY AND FINAL PLAT for the “Villas of La Montana
Townhouses” a twenty-unit condominium project and lot join, located at 16810 E. La Montana
Drive, aka Lots 1 and 15 Block 4, Plat 102. Case #S2004-29.
*4.) CONSIDERATION of RESOLUTION 2005-12, endorsing the vision, “Arizona is to be one of
the best places in the nation to live a rewarding and productive life”.
REGULAR AGENDA
5 min 5.) CONSIDERATION of reappointing one (1) board member and appointing one (1) citizen to
each serve a two-year term on the BOARD OF ADJUSTMENT.
10 min 6.) QUARTERLY UPDATE by the Fire Department and Law Enforcement.
10 min
7.) CONSIDERATION to approve a TEMPORARY USE PERMIT to allow outdoor retail sales
and events to take place on specified weekends beginning February 25, 2005 through December
11, 2005, located at 12625 and 12645 Saguaro Blvd., aka Plaza Fountainside; Case #TUP2005-
03.
5 min
8.) CONSIDERATION of RESOLUTION 2005-20, a resolution relating to finance; rescinding
resolution No. 2004-58 adopted on November 4, 2004; approving the issuance and sale of the
Town of Fountain Hills, Arizona, Municipal Property Corporation Municipal Facilities Revenue
Refunding Bonds, Series 2005; and declaring an emergency.
10 min
9.) CONSIDERATION of RESOLUTION 2005-19, authorizing and providing for the issuance
and sale of not to exceed $8,500,000 aggregate principal amount of Town of Fountain Hills,
Arizona, General Obligation Refunding Bonds, Series 2005; and declaring an emergency.
5 min 10.) COUNCIL ASSESSMENT AND REVIEW of the meeting to identify procedural strengths
Document in R2-17-05.obd Page 3 of 3 Last printed 2/12/2005 7:57 AM
and weaknesses and discuss possible improvements for future meetings.
11.) 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: NONE
12.) SUMMARY OF COUNCIL REQUESTS by Town Manager.
7:25 PM 13.) ADJOURNMENT.
DATED this 11TH day of February, 2005 ___________________________
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (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.