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HomeMy WebLinkAbout1-5-06NOTICE OF EXECUTIVE AND REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL Mayor Wally Nichols Councilman Mike Archambault Councilman Keith McMahan Councilman John Kavanagh Councilman Ed Kehe Vice Mayor Jay Schlum TIME: 5:00 - 6:25 P.M. - EXECUTIVE SESSION 6:30 P.M. - REGULAR SESSION WHEN: THURSDAY, JANUARY 5, 2006 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ (Executive Session will be held in 2nd floor Conference 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. Z:\Council Packets\2006\R1-5-06\Agenda 1-5-06.doc Page 1of 4 Last printed 1/4/2006 9:18 AM Z:\Council Packets\2006\R1-5-06\Agenda 1-5-06.doc Page 1of 4 Last printed 1/4/2006 9:18 AM • CALL TO ORDER –Mayor Nichols 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S. § 38-431-03.A.1, for discussion or consideration of employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee or employee of any public body, except that, with the exception of salary discussions, an officer, appointee or employee may demand that the discussion or consideration occur at a public meting. The public body shall provide the officer, appointee or employee with written notice of the executive session as is appropriate but not less than twenty-four hours for the officer, appointee or employee to determine whether the discussion or consideration should occur at a public meeting. (Specifically, review of all applications received for the (i) Senior Center Advisory Commission and the (ii) Strategic Planning Advisory Commission; and (iii) two Community Center Advisory Commission applicant interviews will be conducted.) Pursuant to A.R.S. §38-431-03.A.4, discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation. (Specifically, the National Century Financial Enterprises litigation.) 2. RETURN TO REGULAR SESSION • CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Nichols • INVOCATION – Father Robert Hart, Anglican Church of the Atonement • ROLL CALL – Mayor Nichols • MAYOR’S REPORT (i) The Mayor will present “Certificates of Appreciation” to special event sponsors, Fountain Hills Wood Whims and Fun 2B Fit. 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. *CONSENT AGENDA - *1.) CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from November 17, December 1, and December 13, 2005. *2.) CONSIDERATION of approving a LIQUOR LICENSE APPLICATION for Amy Nations (Caroline’s) located at 16872 E. Avenue of the Fountains. This request is for a Series 12 Restaurant license. *3.) CONSIDERATION of RESOLUTION 2006-01, abandoning whatever right, title, or interest the Town has in the certain public utility and drainage easements located at the northerly and easterly property line of Plat 506C, Block 1, Lot 47 (16383 N. Dryad Place) as recorded in Book 159 of Maps, Page 31 Records of Maricopa County, Arizona. EA05-23 (Bosserman) Z:\Council Packets\2006\R1-5-06\Agenda 1-5-06.doc Page 2of 4 Last printed 1/4/2006 9:18 AM *4.) CONSIDERATION of approving the PRELIMINARY and FINAL PLAT for the, "Milo Condominium, A Condominium," located at 15910 Sunflower Drive aka Plat 601, Block 1, Lot 14. Case #S2005-22. *5.) CONSIDERATION of RELEASING FUNDS to Boys & Girls Clubs of Greater Scottsdale - Four Peaks Branch as appropriated in the FY2005-06 Operational Support budget in the amount of $160,000 ($75,000 for on going programs and the final payment of $85,000 for capital funds). *6.) CONSIDERATION of approving the PRELIMINARY AND FINAL PLAT for "Eagles Landing" a 38-unit residential condominium located at 14015 N. Fountain Hills Boulevard, aka Plat 110, Part of Block 3, Lot 1. Case #S2005-23. *7.) CONSIDERATION of approving the Public Art Committee Request To EXTEND THE MURAL on the Pump House Wall at Fountain Park. *8.) CONSIDERATION of approving a partial SETTLEMENT with regard to the National Century Financial Enterprises Litigation. REGULAR AGENDA 9.) CONSIDERATION of APPOINTING three citizens to fill vacancies on the Community Center Advisory Commission. 10.) CONSIDERATION of APPOINTING three adults and one youth to fill vacancies on the Parks and Recreation Commission. 11.) CONSIDERATION of APPOINTING one citizen to fill a vacancy on the Public Safety Advisory Commission. 12.) CONSIDERATION of JOINING the Northeast Valley Coalition Against Methamphetamine with possible direction to staff. 13.) PRESENTATION AND CONSIDERATION of approving the FIRST AMENDMENT to the Rural Metro contract regarding ambulance service and fire engine staffing for the Town of Fountain Hills. 14.) CONSIDERATION of RESOLUTION 2006-04, regarding the amended and restated Alternative Hillside Preservation Agreement with Firerock Commerce Park, LLC, for “Firerock Commerce Park”, a proposed one-lot industrial plat located on Lots 68 and 69, Business Park, Final Plat 414, located at the northwest corner of Technology Drive and Saguaro Boulevard. Case# S2005-25. 15.) CONSIDERATION of the FINAL REPLAT for “Firerock Commerce Park” a replat and jointing of lots 68 and 69, Business Park, Final Plat 414, located at the northwest corner of Technology Drive and Saguaro Boulevard. Case# S2005-25. 16.) CONSIDERATION of approving the SPECIAL USE PERMIT for the Eagles Nest Reservoir – Chaparral City Water Corporation Communication Antenna, a 50-foot high communication antenna located off Coyote Way in the McDowell Mountain Preserve Water Take site. Case #SU2005-08. 17.) CONSIDERATION of approving the SPECIAL USE PERMIT FOR THE Golden Eagle Reservoir – Chaparral City Water Corporation Communication Antenna, a 40-foot high communication antenna located on the Golden Eagle Reservoir site on Mourning Dove Drive in the Eagle Nest, Parcel 8 Subdivision. Case#SU2005-09. 18.) CONSIDERATION of a TEMPORARY USE PERMIT for “Desert Vista Market Arts & Crafts Fair”, located at 11645 N. Saguaro Boulevard, aka Plat 302, Lot 7A. Case #TU2005-18. 19.) CONSIDERATION of ORDINANCE 06-02, amending the Town Code, Chapter 7, Building and Building Regulations, Article 7-10, Development Fees. 20.) Quarterly UPDATE by the Town Manager on progress of implementing the Council’s goals. 21.) COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. Requested by Councilman Kavanagh – Placing the item of discussing outdoor sales in the downtown shopping overlay district on a future agenda. 22.) SUMMARY OF COUNCIL REQUESTS by Town Manager. 23.) ADJOURNMENT. DATED this 30th day of December, 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. Z:\Council Packets\2006\R1-5-06\Agenda 1-5-06.doc Page 1of 4 Last printed 1/4/2006 9:18 AM Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: Jan 5, 2006 Submitting Department: Parks and Recreation Contact Person: Dori Shick 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: Present Award 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: Presentation of Certification of Appreciation to special event sponors, Fountain Hills Wood Whims and Fun 2B Fit. Staff Recommendation: Approve Fiscal Impact: No $0 Purpose of Item and Background Information: In an effort to recover costs for community programs that the Parks and Recreation Department facilitates, we seek sponsorhip from businesses throughout the community. We would like to recognize Fountain Hills Wood Whims for their sponsorship for the Fall 05 Concerts in the Park series in the amount of $2,500 and Fun 2B Fit for their sponsorship in the amount of $2,000. List All Attachments as Follows: 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 / Designee Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 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 November 17, December 1, December 13, 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 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 R1-5-06.obd Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 1/5/06 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 2006-01 abandoning whatever right, title, or interest the Town has in the certain public utility and drainage easements located at the northerly and easterly property line of Plat 506C, Block 1, Lot 47 (16383 N. Dryad Place) as recorded in Book 159 of Maps, Page 31 Records of Maricopa County, Arizona. EA05-23 (Bosserman) Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: Request for abandonment. 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 R1-5-06.obd TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Town Council DT: November 15, 2005 FR: Art Candelaria Randy Harrel Reviewed: Tom Ward RE: Easement Abandonment - EA05-23 16383 N. Dryad Place Plat 506C, Block 1, Lot 47 This item on the Town Council's agenda is a proposal to abandon portions of the ten (10’) foot public utility and drainage easements located at the northerly and easterly property lines of Plat 506C, Block 1, Lot 47, (16383 N. Dryad Place) 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. The Engineering Department 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 Engineering Department 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 47 are required to pass the developed flows generated by the upstream lots across their property. Staff recommends approval of Resolution 2006-01. Enc: Resolution Exhibit c: Robert & Lupe Bosserman Adjacent Property Owners Document in R1-5-06.obd RESOLUTION 2006-01 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN PORTIONS OF THE CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS AT THE NORTHERLY AND EASTERLY PROPERTY LINE OF PLAT 506C, BLOCK 1, LOT 47, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 159 OF MAPS, PAGE 31 RECORDS OF MARICOPA COUNTY, ARIZONA. 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 easement, located at the northerly and easterly property line of Plat 506C, Block 1, Lot 47, Fountain Hills, as recorded in Book 159 of Maps, Page 31 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. 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 R1-5-06.obd PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, January 5, 2006. 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 R1-5-06.obd Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Public Works Contact Person: Bob Rodgers 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 approving the PRELIMINARY AND FINAL PLAT for "Eagles Landing", a 38-unit residential condominium located at 14015 N. Fountain Hills Boulevard. AKA Plat 110, Part of Block 3, Lot 1. Case #S2005-23 Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This is a request by Bison Homes for approval of the preliminary and final condominium plat for the Eagles Landing development, a 38-unit condominium project that is currently under construction. List All Attachments as Follows: Staff Report, Sanitary District memo, Plat (4 pages), Application, Platted Properties information sheet. 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 Town Council Agenda Action Form Meeting Type: Special Session Meeting Date: January 5, 2006 Submitting Department: Park and Recreation Contact Person: Mark C. Mayer 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 Approving the Public Art Committee Request To Extend the Mural on the Pump House Wall at Fountain Park Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: Previously, the Council had approved a request, on behalf of the Public Art Committee, to paint a portion of the wall of the pump house at Fountain Park. This work has been completed. At that time it was stated that in the future the remainder of the wall, to the entrance of the pump house building, might also be painted to complete the mural. The Public Art Committee is now making that request. As previously, the work would be completed by a School District Art group, under the supervision of members of the Committee this spring. The needed paint would be donated by the community. The local veterans were contacted regarding the project, due to the proximity of the mural to the Veterans Memorial, and they do not have concerns with what is being requested. List All Attachments as Follows: Photo of Mural 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 Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Parks and Recreation Contact Person: Mark C. Mayer 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: Community Center Advisory Commission Appointments 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 appointing three citizens to fill vacancies on the Community Center Advisory Commission. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: At the December 1, 2005 Council Work Study, Council interviewed Bill Muehlhauser for one of the three vacant positions on the Community Center Advisory Commission. Jackie Miles and Mark McDermett are scheduled to be interviewed on January 5, 2006. Appointees would serve a two-year term ending in December 2007. List All Attachments as Follows: None Type(s) of Presentation: None Signatures of Submitting Staff: ____________________________ _____________________________________ Mark C. Mayer, Director Budget Review Parks and Recreation Department (if item not budgeted or exceeds budget amount) ____________________________ Timothy G. Pickering, Town Manager Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Parks and Recreation Contact Person: Mark C. Mayer 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: Parks & Recreation Commission Appointments 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 appointing three citizens and one youth to fill vacancies on the Parks and Recreation Commission. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: At the December 1, 2005 Council Work Study, Council interviewed Ernest Cofrances, Sharon Dennis and Tom Barberic for the three vacant positions on the Parks and Recreation Commission. Kira Putterman and Karl Noss were interviewed for the position of Parks and Recreation Youth Commissioner. Appointees would serve for a two-year term ending December of 2007. The Youth Commissioner would serve for a one-year term ending December of 2006. List All Attachments as Follows: None Type(s) of Presentation: None Signatures of Submitting Staff: ____________________________ _____________________________________ Mark C. Mayer, Director Budget Review Parks and Recreation Department (if item not budgeted or exceeds budget amount) ____________________________ Timothy G. Pickering, Town Manager Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 1/5/06 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: Public Safety Advisory Commission Appointment 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 APPOINTING one citizen to fill a vacancy on the Public Safety Advisory Commission. Staff Recommendation: Fiscal Impact: No $_______ Purpose of Item and Background Information: On December 7, 2005, Council interviewed Robert C. Hoffman for reappointment to the Public Safety Advisory Commission. List All Attachments as Follows: Type(s) of Presentation: Verbal Signatures of Submitting Staff: ____________________________ _____________________________________ Department Head Budget Review (if item not budgeted or exceeds budget amount) ____________________________ Town Manager Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Public Works Contact Person: Bob Rodgers 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 approving the SPECIAL USE PERMIT for the Eagles Nest Reservoir - Chaparral City Water Corporation Communication Antenna", a 50-foot high communication antenna located off Coyote Way in the McDowell Mountain Preserve Water Tank site. Case #SU2005-08. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This is a request by the Chaparral City Water Company to erect a communication antenna at their McDowell Mountain Preserve Water Tank site in order to allow their techicians to communicate with the main office during maintenance and monitoring activities. List All Attachments as Follows: Staff Report, Application, Letters of explanation, Sanitary District memo, Locus Map, Site Plan (2 pages) 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 Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Public Works Contact Person: Bob Rodgers 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 approving the SPECIAL USE PERMIT FOR THE Golden Eagle Reservoir - Chaparral City Water Corporation Communication Antenna", a 40-foot high communication antenna located on the Golden Eagle Reservoir site on Mourning Dove Drive. Case #SU2005-09 Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This is a request by the Chaparral City Water Company to erect a communication antenna at their Golden Eagle Reservoir site in order to allow their techicians to communicate with the main office during maintenance and monitoring activities. List All Attachments as Follows: Staff Report, Application, Letters of explanation, Site Plan (2 pages) 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 Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: January 5, 2006 Submitting Department: Public Works Contact Person: Bob Rodgers 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 a TEMPORARY USE PERMIT for "Desert Vista Market Arts & Crafts Fair", located at 11645 N. Saguaro Boulevard, aka Plat 302, Lot 7A. Case #TU2005-18. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This is a request by K. D. Spring, Inc. to operate an on-going Arts and Crafts fair. The proposal is to have up to 60 vendors, in standard vendor tents, selling arts and crafts merchandise every Thursday between January 12, 2006 and April 30, 2006. List All Attachments as Follows: Staff Report, Application, Letters of opposition (5), Site Plan Platted Properties information sheet. Type(s) of Presentation: Powerpoint Signatures of Submitting Staff: ____________________________ _____________________________________ Department Head Budget Review (if item not budgeted or exceeds budget amount) ____________________________ Town Manager z:\council packets\2006\r1-5-06\ord06-02.doc Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 1/5/2006 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 ORDINANCE 06-02, amending the Town Code, Chapter 7, Building and Building Regulations, Article 7-10, Development Fees. Staff Recommendation: Approve Fiscal Impact: Yes $ Purpose of Item and Background Information: The Town conducted a scheduled review of the current development fee schedule as required by ordinance. The review was conducted by Red Oak Consulting and two public hearings were held in October and December to receive public input. As a result of the hearings and adoption of the Town's strategic plan the consultant has recommended changes to the current fee schedule (see Development Fee Study dated December 30, 2005 attached). Ordinance 06-02, if approved, would revise the fees accordingly with an effective date in ninety days. The new fees would apply for all permits applied for after the effective date. List All Attachments as Follows: Ordinance 06-02, Development Fee Study - Final Report Addendum dated December 30, 2005. Type(s) of Presentation: PowerPoint Signatures of Submitting Staff: ____________________________ _____________________________________ Department Head Budget Review (if item not budgeted or exceeds budget amount) ____________________________ Town Manager / Designee z:\council packets\2006\r1-5-06\ord06-02.doc onorable Mayor and Town Council DT: December 30, 2005 TO: H THROUGH Manager : T kering, Town imothy Pic FR: Julie A. Ghetti, Finance Director RE: Development Fee Review Results On June 30, 2004 the Town of Fountain Hills issued an RFQ (Request for Qualifications) for d fee review services; a review of the development fees is required at least once every five years by Town Ordinance 00-21 Section 7-10-3(B). Red Oak Consulting (formerly Rick Giardina & Associates, Inc.) performed an analysis of the current development fee schedule and the growth related capital projects included in the 20-year financial projection. The analysis revealed in t to help jects related to growth the current development fee schedule should be increased. evelopment fees are one-time charges designed to compensate a community for the cost of xtending infrastructure (streets, parks, etc.) as required to support new development and coordinate t be a need for expanding projects. To the extent that the objective of development es is to achieve an equitable distribution of costs, a development fee is designed to ensure that re based on the business use; uses causing higher traffic impacts ay higher development fees. Commercial development does not pay the park development fee, evelopment hat order fund those pro D e new growth with the services demanded. Development fee revenue cannot be used to fund operation and maintenance expenses of a community; they can only be used to fund capital expenditures and debt service. Expectations are that taxpayers should not subsidize new development. Moreover, new development should not impose a reduction in the current level of benefits or increase taxes or user fees for city services. When a community reaches build-out, the level of service existing at that time is expected to be sufficient for the population; without growth there would no fe new development pays its pro rata share in a community that is already paying its pro rata share costs. In the absence of capital cost-shifting devices, the developer reaps windfall profits, since he "sells" his customers the schools, parks, and other city services that are primarily paid for by earlier residents. To shift some newer costs to growth is both equitable and effective in raising the overall level of services available to all. Growth has an impact on demand for government services such as increased street capacity and maintenance, public safety (police and fire), parks and general government. Water and sewer, roads, fire and police protection, schools, parks and libraries are affected by the addition of more homes and/or commercial buildings to the service area. The impact of residential property hits both the capital development budget and the operating budget of the Town, specifically increased street maintenance and park usage. Commercial development generally follows rooftops and contributes or adds to the demand for services. Commercial development fees a p only for roads and general government. Commercial property also hits both the capital development budget and the operating budget of the Town. The lack of a local property tax negatively impacts Town operating funds particularly if commercial property is not developed into an activity that generates sales tax. Commercial and industrial development usually results in new jobs, and additional jobs often create additional traffic. z:\council packets\2006\r1-5-06\ord06-02.doc pacity of arterial and collector roads, which are the ajor roads within the road network in the Town. This may include the addition of lanes to existing ads or the construction of new roads. he attached Development Fee Study, Final Report Addendum Page 2 Development fees can only be used for growth-related capital projects and cannot be used to cover ongoing operational or maintenance costs, nor can they be applied to the cost of repair and replacement or the cost of betterment or improvement of existing infrastructure or facilities. Collected development fees can only be spent on projects that increase the capacity of whatever service for which they are being charged. For example, street development fees are used to help pay the costs associated with increasing the ca m ro T Without State Trust Land is the onsultant’s recommendation for proposed fees based on input from the Council during the the development fees are: c December 9th Public Hearing. The only change between the December 9th recommended fees and the December 30th recommended fees is in the Parks and Recreation fee (Page 5). That fee was reduced by $132 to reflect the removal of $6M in park improvements that would be in the State Trust Land. Based on this addendum staff is recommending approval of Ordinance 06-02, increasing the current fee schedule as shown below. Revenues from these fees will partially offset the cost of the capital projects proposed with the strategic plan; additional funding required to complete the projects will be provided by the General Fund and/or other sources of funds (grants for example). The recommended revisions to Current Recommended Residential per single family dwelling unit $3,495 $5,085 Residential per multi family dwelling unit $3,212 $4,683 Commercial per square foot - streets $0.190 $3.437 Commercial per square foot - general government $0.300 $0.639 Commercial per square foot - law enforcement $0.020 $0.380 Commercial per square foot - fire & emergency $0.000 $0.089 Industrial per square foot - streets $0.190 $0.714 Industrial per square foot - general government $0.300 $0.639 Industrial per square foot - law enforcement $0.020 $0.380 When e in De mber Tow il made a d ndustr l dev that nificantly mmen ed str t com er square n the e of $ omparing e full we d fee 0, res artificial ncr se w be $ The 2000 ent $0.190 t re dation) is fee Industrial per square foot - fire & emergency $0.000 $0.089 the original development fee study was don ce 2000, the n Counc policy decision to adopt fees for commercial an i ia elopment were sig lower than indicated in the analysis. The reco d ee mercial fee was $1.93 p foot based on capital projects, which is ten times higher tha current fe 0.19. C th cost of street non-residential to an artificially lo re from 200 ults in an increase of $0.3247; comparing apples to apples the i ea ould only 1.507. recommended fee for industrial per square foot was $0.560, which is $0.37 higher than the curr . Comparing the 2000 recommended fee of $0.56 to $0.71 (the curren commen only an increase of $0.15 in contrast to the increase of $0.52 that results when the 2000 adopted of $0.19 is compared to the currently recommended fee of $0.71. Staff is recommending approval of Ordinance 06-02 with a ninety-day effective date (April 6, 2006). Pathways to Lasting Solutions Town of Fountain Hills Development Fee Study FINAL REPORT ADDENDUM WITHOUT STATE TRUST LAND December 30, 2005 P A T H W A Y S T O L A S T I N G S O L U T I O N S · 3300 S. PARKER ROAD - SUITE 305 - AURORA, CO 80014 - T 303-369-3535 F 303-369-3540 - WWW.REDOAKCONSULTING.COM December 30, 2005 Mr. Tim Pickering Town Manager Town of Fountain Hills 16836 E. Palisades Boulevard Fountain Hills, AZ 85268 Dear Mr. Pickering: On behalf of Red Oak Consulting, I am pleased to submit this addendum to our September 2005 Final Report on the Development Fee Study prepared for the Town of Fountain Hills. This addendum was prepared at your request based on the results of the recently completed City Council strategic plan and the removal of projects and development associated with the development of the State Trust Land. The result of the strategic planning process eliminated a number of future capital improvement projects previously reflected in the development fees calculated in the September 2005 Final Report. Questions regarding this report should be directed to me at (303) 369-3535. Very truly yours, RED OAK CONSULTING A Division of Malcolm Pirnie, Inc. Richard D. Giardina Vice President Town of Fountain Hills, AZ Page i Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Table of Contents BACKGROUND ...................................................................................................................................................1 GENERAL GOVERNMENT................................................................................................................................1 PARKS AND RECREATION...............................................................................................................................2 STREETS...............................................................................................................................................................4 DEVELOPMENT FEE SUMMARY.....................................................................................................................4 DEVELOPMENT FEE SURVEY.........................................................................................................................6 List of Tables TABLE 1 – GENERAL GOVERNMENT, CALCULATION OF REVISED DEVELOPMENT FEES.......................................................2 TABLE 2 – PARKS AND RECREATION, CALCULATION OF REVISED DEVELOPMENT FEE........................3 TABLE 3 – STREETS, CALCULATION OF REVISED DEVELOPMENT FEES.......................................................4 TABLE 4 – COMPARISON OF CURRENT AND RECOMMENDED DEVELOPMENT FEES...............................5 TABLE 5 – RESIDENTIAL DEVELOPMENT FEE SURVEY – SINGLE FAMILY DETACHED............................6 TABLE 6 – COMMERCIAL DEVELOPMENT FEE SURVEY – 3,000 SF RESTAURANT WITH 1” METER......8 TABLE 7 – COMMERCIAL DEVELOPMENT FEE SURVEY – RESTAURANT (PER SF)...................................10 List of Figures FIGURE 1 – RESIDENTIAL DEVELOPMENT FEE SURVEY – SINGLE FAMILY DETACHED...........................................................7 FIGURE 2 – COMMERCIAL DEVELOPMENT FEE SURVEY – 3,000 SF RESTAURANT WITH 1" METER.....9 FIGURE 3 – COMMERCIAL DEVELOPMENT FEE SURVEY – RESTAURANT (PER SF)..................................11 Town of Fountain Hills, AZ Page 1 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Background Following the completion and delivery of the 2005 Development Fee Study Report, the Town of Fountain Hills (the Town) approved a new strategic plan which resulted in a revision to the 20-year Capital Improvement Plan (CIP). Per the November 15, 2005 letter from Julie Ghetti, Finance Director, the following projects were removed from the CIP. Project 20-Year Total No. Project Name Cost* Fee Area F4004 Senior Center $ 1,500,000 Gen Govt F4008 Performing Arts Building 5,000,000 Gen Govt F4010 Public Aquatic and Fitness Facility 2,500,000 Parks & Rec P3013 Acquisition/Development of Park 9,000,000 Parks & Rec P3014 Purchase Community Park in State Trust 18,000,000 Parks & Rec P3016 Acquisition/Development of Park 9,000,000 Parks & Rec S6015 Fountain Hills Blvd. Road Widening 4,375,000 Streets Total $ 49,375,000 * 2005 dollars As a result of these changes, the Town requested that Red Oak revise the proposed development fees as contained in the September 2005 Development Fee Study Report. The revised fee calculations are described in the balance of this report. A complete listing of capital improvement programs is contained in Appendix A of this Addendum Report. General Government As noted above, the Town has removed the Senior Center and the Performing Arts Building, totaling $6,500,000, from the General Government Fund CIP. However, at the request of the Town, the Performing Arts Building project had been removed from the CIP for the calculation of the general government development fee in the September 2005 Report. Therefore, only the removal of the Senior Center factored into the fee revision in this report addendum, reducing the growth-related CIP from $2,181,891 to $1,805,000 (25.1% of the Senior Center is considered to be growth-related). Red Oak used the hybrid approach, the same fee approach used in the September 2005 Report, to calculate the revised general government development fee. Table 1 presents a calculation of general government development fees based on the infrastructure costs and revised CIP provided by the Town. This resulted in recommended fees of $1,000 per unit of residential development and $0.639 per square foot of non-residential development. Town of Fountain Hills, AZ Page 2 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Table 1 General Government Calculation of Revised Development Fees Amount General Government Infrastructure Costs Replacement Cost of Existing Assets $ 17,586,463 Less Outstanding Principal (3,560,000) Beginning Fund Balance 69,121 FY 2005-06 CIP 135,000 Growth-Related CIP 1,805,000 Development Fee Study Cost 6,924 Financing Costs 2,484,313 Net Costs $ 18,526,821 Allocation for Development Fees Residential 90.9% Non-residential 9.1% Allocated Costs by Category Residential $ 16,840,880 Non-residential $ 1,685,941 Build-out Development Residential (dwelling units) 16,855 Non-residential (square feet) 2,624,599 Cost by Unit of Development (rounded) Residential (per dwelling unit) $ 1,000 Non-residential (per square foot) $ 0.639 Parks and Recreation The following projects were removed from the Parks and Recreation Fund CIP: § Public Aquatic and Fitness Center - $2.5 million (25.1% growth-related); § Acquisition and Development of two Community Parks - $18.0 million (0% growth- related); § Acquisition and Development of a Community Park in the State Trust Land - $18.0 million (100% growth-related). Town of Fountain Hills, AZ Page 3 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 The removal of these projects reduces the growth-related CIP from $19,431,010 to $802,859. Red Oak used the cash flow approach for the September 2005 Report because the buy-in and hybrid approaches resulted in development fees that were not sufficient to meet future cash needs. However, with the reduced CIP, the buy-in approach will produce a revised fee that is sufficient to meet future cash requirements. Therefore, the buy-in approach was used to determine the revised parks and recreation development fee. Table 2 presents the calculation of the revised parks and recreation development fee based on the infrastructure costs provided by the Town. This method would result in a fee of $1,345 per residential dwelling unit. Table 2 Parks and Recreation Calculation of Revised Development Fee Amount Parks and Recreation Infrastructure Costs Replacement Cost of Existing Assets $ 16,254,426 Beginning Fund Balance 708,246 Development Fee Study Cost 6,924 Net Costs $ 16,969,596 Allocation for Development Fees Residential 100.0% Non-residential 0.0% Allocated Costs by Category Residential $ 16,969,596 Non-residential $ 0 Existing Development Residential (dwelling units) 12,620 Cost by Unit of Development (rounded): Residential (per dwelling unit) $ 1,345 Town of Fountain Hills, AZ Page 4 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Streets The removal of the Fountain Hills Boulevard Road Widening project reduced the growth- related Streets Fund CIP from $11,857,731 to $6,993,726 (100% of the project is considered to be growth-related). In the September 2005 Report, Red Oak used the cash flow approach to calculate the revised streets development fee. This same approach is used for this update. Table 3 presents a calculation of streets development fees based on the revenue requirements projected for the 20-year study period and the PM trip generation figures from the study. This resulted in recommended fees of $988 per unit of single family residential development, $586 per unit of multi-family residential development, $3.437 per square foot of commercial development, and $0.714 per square foot of industrial development. Table 3 Streets Calculation of Revised Development Fees Assessment Category Unit Cost per Trip End /Unit PM Peak Trip Ends (1) Cost per Unit Single-family Residential dwelling $968 1.02 $988 Multi-family Residential dwelling $968 0.60 $586 General Commercial s.f. $0.968 3.55 $3.437 Industrial s.f. $0.968 0.74 $0.714 (1) Trip Generation, Institute of Transportation Engineers, 1997. Development Fee Summary The recommended development fees are shown in Table 4 compared to the Town’s current fees. As indicated at the bottom of Table 4, the total fees for a single family residence would increase 45% compared to the Town’s current fees. Town of Fountain Hills, AZ Page 5 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Table 4 Comparison of Current and Recommended Development Fees Fee Area Unit Current Recommended Difference General Government Residential (1) dwelling $ 466 $ 1,000 $ 534 Non-Residential (2) s.f. $ 0.300 $ 0.639 $ 0.339 Law Enforcement Residential (1) dwelling $ 32 $ 594 $ 562 Non-Residential (2) s.f. $ 0.020 $ 0.380 $ 0.360 Open Space Residential (1) dwelling $ 1,258 $ 856 ($ 402) Parks and Recreation Residential (1) dwelling $ 1,130 $ 1,345 $ 215 Streets SF-Residential dwelling $ 609 $ 988 $ 374 MF-Residential dwelling $ 326 $ 586 $ 260 Commercial s.f. $ 0.190 $ 3.437 $ 3.247 Industrial s.f. $ 0.190 $ 0.714 $ 0.524 Fire & Emergency Residential (1) dwelling na $ 139 Non-Residential (2) s.f. na $ 0.089 Library and Museum Residential (1) dwelling na $163 Total SF-Residential dwelling $ 3,495 $ 5,085 $ 1,590 MF-Residential dwelling $ 3,212 $ 4,683 $ 1,471 Commercial s.f. $ 0.510 $ 4.545 $ 4.035 Industrial s.f. $ 0.510 $ 1.822 $ 1.312 (1) Residential includes single and multi-family dwelling units. na = not applicable. (2) Non-residential includes commercial and industrial square footage. na = not applicable. Town of Fountain Hills, AZ Page 6 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Development Fee Survey Red Oak compiled information and prepared a comparison of development fees for Fountain Hills and other Arizona communities – see Table 5 and Figure 1. Survey communities were selected generally based on geographic proximity to the Town and represent communities the Town often uses in comparisons. The Fountain Hills fees include the fee assessed by the Fountain Hills Sanitation District. The District’s fee varies and an average of the minimum and maximum fee was used for the comparison - $5,700 per single family equivalent. The average of the survey group (excluding the Town) is $8,976. Table 5 Residential Development Fee Survey Single Family Detached City/Town Gen. Govt. Law Enforcement Streets Open Space Parks/ Rec. Fire Library Utility (1) Total Apache Junction (2) $83 $133 $1,485 $564 $262 $2,921 $5,448 Avondale $585 $187 $873 $791 $489 $264 $6,810 $9,999 Carefree $963 $237 $1,255 $2,455 Cave Creek $736 $911 $3,230 $798 $3,570 $9,245 Fountain Hills (3) Current $466 $32 $609 $1,258 $1,130 $5,700 $9,195 Proposed $1,000 $594 $988 $856 $1,345 $139 $163 $5,700 $10,785 Gilbert $595 $586 $280 $2,449 $663 $9,003 $13,576 Mesa (4) $446 $226 $1,199 $145 $424 $2,458 $4,898 Paradise Valley $18,532 $18,532 Queen Creek (2) $600 $279 $166 $3,814 $656 $4,366 $9,881 Scottsdale (5) $6,754 $6,754 w/o FH Average Median $573 $595 $282 $226 $659 $577 $2,216 $2,243 $1,309 $999 $432 $489 $402 $344 $6,802 $5,560 $8,976 $9,245 (1) Wastewater, water, sanitation, and storm water. (2) Open Space includes Parks & Recreation. (3) Bolded fees are not charged by the Town of Fountain Hills; charged by the Fountain Hills Sanitation District. (4) Parks & Recreation includes Cultural Facility fee. (5) Assumed ¼ acre lot, Zones B-E fees. Zone A fees are lower. Town of Fountain Hills, AZ Page 7 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Figure 1 - Residential Development Fee Survey Single Family Detached $18,532 $13,576 $10,785 $9,999 $9,881 $9,245 $9,245 $9,195 $8,976 $6,754 $5,448 $4,898 $2,455 $0 $5,000 $10,000 $15,000 $20,000 Paradise Valley Gilbert Fountain Hills PROPOSED Avondale Queen Creek Cave Creek Median (Excluding FH) Fountain Hills CURRENT Average (Excluding FH) Scottsdale Apache Junction Mesa Carefree Note: All amounts include applicable water, wastewater development and storm water fees; average fees were used when more than one fee could apply to a fee category. For Fountain Hills, an average wastewater fee of $5,700 was used assuming the average of two fee levels: a $5,100 fee would apply as a base capacity fee, and an additional Capacity Fee Surcharge of $1,200 (for a total fee lf $6,300) would apply for homes located in the Shea Corridor utilizing the Shea Outfall Sewer. Table 6 and Figure 2 show the total proposed commercial development fees for Fountain Hills and the other Arizona communities. In order to make the comparison valid or useful, all fees were calculated for a 3,000 square foot restaurant with a 1-inch water service line/meter. Table 7 and Figure 3 show the proposed commercial non-utility development fees per square foot for a restaurant. Town of Fountain Hills, AZ Page 8 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Table 6 Commercial Development Fee Survey 3,000 SF Restaurant w/1" Meter City/Town Gen. Govt. Law Enforcement Streets Fire Utility (1) Total Apache Junction $609 $975 $11,577 $13,161 Avondale $1,641 $1,647 $10,860 $1,371 $16,195 $31,714 Carefree $4,314 $3,372 $7,686 Cave Creek $11,361 $3,741 $6,067 $21,169 Fountain Hills (3) Current $900 $60 $570 $5,700 $7,230 Proposed $1,917 $1,140 $10,311 $267 $5,700 $19,335 Gilbert $945 $936 $3,162 $993 $15,431 $21,467 Mesa (2) $750 $4,412 $2,829 $6,051 $14,042 Paradise Valley $18,532 $18,532 Queen Creek $1,767 $333 $4,923 $7,417 $14,440 Scottsdale (4) $48,272 $48,272 w/o FH Average Median $3,055 $1,641 $1,661 $975 $6,273 $4,332 $1,731 $1,371 $10,360 $15,431 $21,165 $18,532 (1) Wastewater, water, sanitation, and storm water. (2) Law enforcement and fire fees are based on an average of fast food and sit-down restaurant fees. (3) Bolded fees are not charged by the Town of Fountain Hills; charged by the Fountain Hills Sanitation District. (4) Assumed Zones B-E fee of $38.19 per gallon of estimated average daily usage (assumed to be 24,500 gpd for 1-inch meter). Zone A fees are lower. The significant increase in the Town's commercial fees is largely the result of the change in the streets fee. This increase is compounded by the fact that the Town did not adopt the calculated streets fee based on the last study. The streets fee as recommended in the last comprehensive study was not adopted by the Town; the Town adopted a streets fee for commercial development that was only 10% of the recommended fee ($0.19 was adopted and the recommended fee was $1.90). Furthermore, the use of the cash flow method (instead of a historic investment approach) also contributed to the increase in the streets fee. Increases in the other fee areas, general government and law enforcement, and the new fire fee are also responsible for the increase in the total commercial fee (industrial fees as well). Town of Fountain Hills, AZ Page 9 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Figure 2 - Commercial Development Fee Survey 3,000 SF Restaurant with 1" Meter $48,272 $31,714 $21,467 $21,169 $21,165 $19,335 $18,532 $18,532 $14,440 $14,042 $13,161 $7,686 $7,230 $1,000 $10,000 $100,000 Scottsdale Avondale Gilbert Cave Creek Average (Excluding FH) Fountain Hills PROPOSED Paradise Valley Median (Excluding FH) Queen Creek Mesa Apache Junction Carefree Fountain Hills CURRENT Note: All amounts include applicable water, wastewater and storm water development fees; average fees were used when more than one fee could apply to a fee category. For Fountain Hills, an average wastewater fee of $5,700 was used assuming the average of two fee levels: a $5,100 fee would apply as a base capacity fee, and an additional Capacity Fee Surcharge of $1,200 (for a total fee lf $6,300) would apply for businesses located in the Shea Corridor utilizing the Shea Outfall Sewer. Town of Fountain Hills, AZ Page 10 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Table 7 Commercial Development Fee Survey Restaurant (per SF) City/Town Gen. Govt. Law Enforcement Streets Fire Total Apache Junction $0.203 $0.325 $3.859 $4.387 Avondale $0.547 $0.549 $3.620 $0.457 $5.173 Carefree $1.438 $1.124 $2.562 Cave Creek $3.787 $1.247 $5.034 Fountain Hills Current $0.300 $0.020 $0.190 $0.510 Proposed $0.639 $0.380 $3.437 $0.089 $4.545 Gilbert $0.315 $0.312 $1.054 $0.331 $2.012 Mesa (1) $0.250 $1.471 $0.943 $2.664 Paradise Valley Queen Creek $0.589 $0.111 $1.641 $2.341 Scottsdale w/o FH Average $1.018 $0.554 $2.091 $0.577 $3.453 Median $0.547 $0.325 $1.444 $0.457 $2.664 (1) Law enforcement and fire fees are based on an average of fast food and sit-down restaurant fees. Town of Fountain Hills, AZ Page 11 Development Fee Study – Report Addendum without State Trust Land December 30, 2005 Figure 3 - Commercial Development Fees Restaurant (per SF) $5.173 $5.034 $4.545 $4.387 $3.453 $2.664 $2.664 $2.562 $2.341 $2.012 $0.510 $0.000 $1.000 $2.000 $3.000 $4.000 $5.000 $6.000 Avondale Cave Creek Fountain Hills Proposed Apache Junction Average (Excluding FH) Median (Excluding FH) Mesa Carefree Queen Creek Gilbert Fountain Hills Current TO: Honorable Mayor and Town Council DT: December 30, 2005 THROUGH: Timothy Pickering, Town Manager FR: Julie A. Ghetti, Finance Director RE: Development Fee Supplemental Report During the December 9, 2005 Public Hearing on the proposed revisions to the Town Development Fees the Council requested that Red Oak Consultants prepare a supplemental report of proposed lude growth related to the annexation of the State Trust Land. The attached report, evelopment Fee Study, Final Report Addendum fees that inc D with State Trust Land is hereby provided for the ouncil’s review. The difference between this report and the Final Report AddendumC without State rust Land is the calculation of fees that include improvements to parkland and McDowell Mountain Road. I nd another review of the Development Fees be prepared when the State Trust Land is annexed into the Town. The attached Addendum T t is recomme ed that is a summary of the proposed fees that would currently be recommended if the State Trust Land was annexed into the Town borders. z:\council packets\2006\r1-5-06\ord06-02.doc Pathways to Lasting Solutions Town of Fountain Hills Development Fee Study FINAL REPORT ADDENDUM WITH STATE TRUST LAND December 30, 2005 P A T H W A Y S T O L A S T I N G S O L U T I O N S · 3300 S. PARKER ROAD - SUITE 305 - AURORA, CO 80014 - T 303-369-3535 F 303-369-3540 - WWW.REDOAKCONSULTING.COM December 30, 2005 Mr. Tim Pickering Town Manager Town of Fountain Hills 16836 E. Palisades Boulevard Fountain Hills, AZ 85268 Dear Mr. Pickering: On behalf of Red Oak Consulting, I am pleased to submit this addendum to our September 2005 Final Report on the Development Fee Study prepared for the Town of Fountain Hills. This addendum was prepared at your request based on the results of the recently completed City Council strategic plan and the addition of projects and development associated with the development of the State Trust Land. The result of the strategic planning process eliminated a number of future capital improvement projects previously reflected in the development fees calculated in the September 2005 Final Report. Questions regarding this report should be directed to me at (303) 369-3535. Very truly yours, RED OAK CONSULTING A Division of Malcolm Pirnie, Inc. Richard D. Giardina Vice President Town of Fountain Hills, AZ Page i Development Fee Study – Report Addendum December 30, 2005 Table of Contents BACKGROUND ...................................................................................................................................................1 GENERAL GOVERNMENT................................................................................................................................1 LAW ENFORCEMENT........................................................................................................................................2 OPEN SPACE........................................................................................................................................................3 PARKS AND RECREATION...............................................................................................................................4 STREETS...............................................................................................................................................................6 FIRE AND EMERGENCY SERVICES................................................................................................................7 LIBRARY AND MUSEUM..................................................................................................................................8 DEVELOPMENT FEE SUMMARY.....................................................................................................................8 DEVELOPMENT FEE SURVEY.......................................................................................................................10 List of Tables TABLE 1 – GENERAL GOVERNMENT, CALCULATION OF REVISED DEVELOPMENT FEES.......................................................2 TABLE 2 – LAW ENFORCEMENT DEVELOPMENT FEE, CASH FLOW PARAMETERS....................................3 TABLE 3 – OPEN SPACE, CALCULATION OF REVISED DEVELOPMENT FEE..................................................4 TABLE 4 – PARKS AND RECREATION, CALCULATION OF REVISED DEVELOPMENT FEE........................6 TABLE 5 – STREETS, CALCULATION OF REVISED DEVELOPMENT FEES.......................................................7 TABLE 6 – FIRE AND EMERGENCY SERVICES, CASH FLOW PARAMETERS...................................................8 TABLE 7 – COMPARISON OF CURRENT AND RECOMMENDED DEVELOPMENT FEES...............................9 TABLE 8 – RESIDENTIAL DEVELOPMENT FEE SURVEY – SINGLE FAMILY DETACHED..........................10 TABLE 9 – COMMERCIAL DEVELOPMENT FEE SURVEY – 3,000 SF RESTAURANT WITH 1” METER....12 TABLE 10 – COMMERCIAL DEVELOPMENT FEE SURVEY – RESTAURANT (PER SF).................................14 Town of Fountain Hills, AZ Page ii Development Fee Study – Report Addendum December 30, 2005 List of Figures FIGURE 1 – RESIDENTIAL DEVELOPMENT FEE SURVEY – SINGLE FAMILY DETACHED.........................................................11 FIGURE 2 – COMMERCIAL DEVELOPMENT FEE SURVEY – 3,000 SF RESTAURANT WITH 1" METER...13 FIGURE 3 – COMMERCIAL DEVELOPMENT FEE SURVEY – RESTAURANT (PER SF)..................................15 Town of Fountain Hills, AZ Page 1 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Background Following the completion and delivery of the 2005 Development Fee Study Report, the Town of Fountain Hills (the Town) approved a new strategic plan which resulted in a revision to the 20-year Capital Improvement Plan (CIP). Per the November 15, 2005 letter from Julie Ghetti, Finance Director, the following projects were removed from the CIP. Project 20-Year Total No. Project Name Cost* Fee Area F4004 Senior Center $ 1,500,000 Gen Govt F4008 Performing Arts Building 5,000,000 Gen Govt F4010 Public Aquatic and Fitness Facility 2,500,000 Parks & Rec P3013 Acquisition/Development of Park 9,000,000 Parks & Rec P3014 Purchase Community Park in State Trust 12,000,000 Parks & Rec P3016 Acquisition/Development of Park 9,000,000 Parks & Rec S6015 Fountain Hills Blvd. Road Widening 4,375,000 Streets Total $ 43,375,000 * 2005 dollars In addition, the widening of McDowell Mountain Road was added to the CIP ($3,088,800), and proposed dwelling units for the State Trust Land were included in the buildout values used for the hybrid approach and cash flow approach calculations. As a result of these changes, the Town requested that Red Oak revise the proposed development fees as contained in the September 2005 Development Fee Study Report. The revised fee calculations are described in the balance of this report. A complete listing of capital improvement programs is contained in Appendix A of this Addendum Report. General Government As noted above, the Town has removed the Senior Center and the Performing Arts Building, totaling $6,500,000, from the General Government Fund CIP. However, at the request of the Town, the Performing Arts Building project had been removed from the CIP for the calculation of the general government development fee in the September 2005 Report. Therefore, only the removal of the Senior Center factored into the fee revision in this report addendum, reducing the growth-related CIP from $2,181,891 to $1,805,000 (25.1% of the Senior Center is considered to be growth-related). Red Oak used the hybrid approach, the same fee approach used in the September 2005 Report, to calculate the revised general government development fee. Table 1 presents a calculation of general government development fees based on the infrastructure costs and revised CIP provided by the Town. This resulted in recommended fees of $928 per unit of residential development and $0.581 per square foot of non-residential development. Town of Fountain Hills, AZ Page 2 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 1 General Government Calculation of Revised Development Fees Amount General Government Infrastructure Costs Replacement Cost of Existing Assets $ 17,586,463 Less Outstanding Principal (3,560,000) Beginning Fund Balance 69,121 FY 2005-06 CIP 135,000 Growth-Related CIP 1,805,000 Development Fee Study Cost 6,924 Financing Costs 2,749,924 Net Costs $ 18,792,432 Allocation for Development Fees Residential 91.9% Non-residential 8.1% Allocated Costs by Category Residential $ 17,267,860 Non-residential $ 1,524,572 Build-out Development Residential (dwelling units) 18,605 Non-residential (square feet) 2,624,599 Cost by Unit of Development (rounded) Residential (per dwelling unit) $ 928 Non-residential (per square foot) $ 0.581 Law Enforcement Although the CIP changes do not include any law enforcement CIP projects, the addition of the proposed State Trust Land dwelling units affects the fee calculation by increasing the number of units by which the costs are divided, therefore reducing the fees as contained in the September 2005 Report. Red Oak used the cash flow approach, the same fee approach used in the September 2005 Report, to calculate the revised law enforcement development fee. Table 2 presents the Town of Fountain Hills, AZ Page 3 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 parameters that were used to determine the law enforcement development fees. This resulted in recommended fees of $441 per unit of residential development and $0.276 per square foot of non-residential development. Table 2 Law Enforcement Development Fee Cash Flow Parameters Description Amount Buildout Residential Development: Dwelling Units 18,605 Square Feet 29,727,170 Buildout Non-Residential Development (Square Feet) 2,624,769 Total Square Feet 32,351,769 Residential Cost Allocation % 91.9% Non-residential Cost Allocation % 8.1% CIP Costs, Total Outlays $4,344,894 Annual Fee Index 2.5% Cash Flow Results FY 2005-06 Fee Residential $/dwelling unit $441 Non-Residential $/s.f. $0.276 Open Space Although the CIP changes do not include any open space CIP projects, the addition of the proposed State Trust Land dwelling units affects the fee calculation by increasing the number of units by which the costs are divided, therefore reducing the fees as contained in the September 2005 Report. Red Oak used the hybrid approach, the same fee approach used in the September 2005 Report, to calculate the revised open space development fee. Table 3 presents a calculation of the open space development fee based on the infrastructure costs and revised CIP provided by the Town. This resulted in a recommended fee of $810 per residential unit. Town of Fountain Hills, AZ Page 4 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 3 Open Space Calculation of Revised Development Fee Amount Open Space Infrastructure Costs Replacement Cost of Existing Assets $ 15,233,621 Less Outstanding Principal (6,325,000) Beginning Fund Balance 1,115,995 FY 2005-06 CIP 67,069 Growth-Related CIP 1,538,262 Development Fee Study Cost 6,924 Financing Costs 3,430,115 Net Costs $ 15,066,986 Allocation for Development Fees Residential 100.0% Non-residential 0.0% Allocated Costs by Category Residential $15,066,986 Non-residential $ 0 Build-out Development Residential (dwelling units) 18,605 Cost by Unit of Development (rounded): Residential (per dwelling unit) $ 810 Parks and Recreation The following projects were removed from the Parks and Recreation Fund CIP: § Public Aquatic and Fitness Center - $2.5 million (25.1% growth-related); § Acquisition and Development of two Community Parks - $18.0 million (0% growth- related); § Purchase of a Community Park in the State Trust Land - $12.0 million (100% growth- related). Town of Fountain Hills, AZ Page 5 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 The removal of these projects reduces the growth-related CIP from $19,431,010 to $7,073,471. The land for the Community Park in the State Trust Land is anticipated to be donated to the Town. Therefore, the $12.0 million that was allocated in the CIP to purchase the land was removed. However, the $6.0 million that is planned in Fiscal Years 2010-11 and 2013-14 remains in the CIP. The Town will use the $6.0 million to develop the park. Even though this property is located outside the current boundaries of the Town, it is an asset of the Town and when developed (the $6.0 million of planned improvements) will serve the residents of Fountain Hills. As such, it is appropriate to include the $6.0 million of improvements in the fee calculation. Red Oak used the cash flow approach for the September 2005 Report because the hybrid approach resulted in a development fee that was not sufficient to meet future cash needs. However, with the reduced CIP, the hybrid approach will produce a revised fee that is sufficient to meet future cash requirements and was therefore used to determine the revised parks and recreation development fee. Table 4 presents the calculation of the revised parks and recreation development fee based on the infrastructure costs and revised CIP provided by the Town. This method would result in a fee of $1,382 per residential dwelling unit. Town of Fountain Hills, AZ Page 6 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 4 Parks and Recreation Calculation of Revised Development Fee Amount Parks and Recreation Infrastructure Costs Replacement Cost of Existing Assets $ 16,254,426 Beginning Fund Balance 708,246 Growth-Related CIP 7,073,471 Development Fee Study Cost 6,924 Financing Costs 1,661,528 Net Costs $ 25,704,594 Allocation for Development Fees Residential 100.0% Non-residential 0.0% Allocated Costs by Category Residential $ 25,704,594 Non-residential $ 0 Build-out Development Residential (dwelling units) 18,605 Cost by Unit of Development (rounded): Residential (per dwelling unit) $ 1,382 Streets The removal of the Fountain Hills Boulevard Road Widening project and the addition of the McDowell Mountain Road Widening project reduced the growth-related Streets Fund CIP from $11,857,731 to $10,912,461. In the September 2005 Report, Red Oak used the cash flow approach to calculate the revised streets development fee. This same approach is used for this update. Table 5 presents a calculation of streets development fees based on the revenue requirements projected for the 20-year study period and the PM trip generation figures from the study. This resulted in recommended fees of $1,291 per unit of single family residential development, $765 per unit of multi-family residential development, $4.488 per square foot of commercial development, and $0.933 per square foot of industrial development. Town of Fountain Hills, AZ Page 7 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 5 Streets Calculation of Revised Development Fees Assessment Category Unit Cost per Trip End /Unit PM Peak Trip Ends (1) Cost per Unit Single-family Residential dwelling $1,265 1.02 $1,291 Multi-family Residential dwelling $1,265 0.60 $765 General Commercial s.f. $1.265 3.55 $4.488 Industrial s.f. $1.265 0.74 $0.933 (1) Trip Generation, Institute of Transportation Engineers, 1997. Fire and Emergency Services Although the CIP changes do not include any fire and emergency services CIP projects, the addition of the proposed State Trust Land dwelling units affects the fee calculation by increasing the number of units by which the costs are divided, therefore reducing the fees as contained in the September 2005 Report. Red Oak used the cash flow approach, the same fee approach used in the September 2005 Report, to calculate the revised fire and emergency services development fee. Table 6 presents the parameters that were used to determine the fire and emergency services development fees. This resulted in recommended fees of $99 per unit of residential development and $0.062 per square foot of non-residential development. Town of Fountain Hills, AZ Page 8 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 6 Fire and Emergency Services Development Fee Cash Flow Parameters Description Amount Buildout Residential Development: Dwelling Units 18,605 Square Feet 29,727,170 Buildout Non-Residential Development (Square Feet) 2,624,769 Total Square Feet 32,351,769 Residential Cost Allocation % 91.9% Non-residential Cost Allocation % 8.1% CIP Costs, Total Outlays $592,290 Annual Fee Index 2.5% Cash Flow Results FY 2005-06 Fee Residential $/dwelling unit $99 Non-Residential $/s.f. $0.062 Library and Museum The addition of the proposed State Trust Land dwelling units did not affect the library and museum development fee calculation because the buy-in approach, which was used in the September 2005 Report, divides the current infrastructure costs by the number of existing dwelling units. Therefore, the recommended library and museum development fee remains at $163 per residential unit. Development Fee Summary The recommended development fees are shown in Table 7 compared to the Town’s current fees. As indicated at the bottom of Table 7, the total fees for a single family residence would increase 46% compared to the Town’s current fees. Town of Fountain Hills, AZ Page 9 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 7 Comparison of Current and Recommended Development Fees Fee Area Unit Current Recommended Difference General Government Residential (1) dwelling $ 466 $ 928 $ 462 Non-Residential (2) s.f. $ 0.300 $ 0.581 $ 0.281 Law Enforcement Residential (1) dwelling $ 32 $ 441 $ 409 Non-Residential (2) s.f. $ 0.020 $ 0.276 $ 0.256 Open Space Residential (1) dwelling $ 1,258 $ 810 ($ 448) Parks and Recreation Residential (1) dwelling $ 1,130 $ 1,382 $ 252 Streets SF-Residential dwelling $ 609 $ 1,291 $ 682 MF-Residential dwelling $ 326 $ 765 $ 439 Commercial s.f. $ 0.190 $ 4.488 $ 4.298 Industrial s.f. $ 0.190 $ 0.933 $ 0.743 Fire & Emergency Residential (1) dwelling na $ 99 Non-Residential (2) s.f. na $ 0.062 Library and Museum Residential (1) dwelling na $163 Total SF-Residential dwelling $ 3,495 $ 5,114 $ 1,619 MF-Residential dwelling $ 3,212 $ 4,588 $ 1,376 Commercial s.f. $ 0.510 $ 5.407 $ 4.897 Industrial s.f. $ 0.510 $ 1.852 $ 1.342 (1) Residential includes single and multi-family dwelling units. na = not applicable. (2) Non-residential includes commercial and industrial square footage. na = not applicable. Town of Fountain Hills, AZ Page 10 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Development Fee Survey Red Oak compiled information and prepared a comparison of development fees for Fountain Hills and other Arizona communities – see Table 8 and Figure 1. Survey communities were selected generally based on geographic proximity to the Town and represent communities the Town often uses in comparisons. The Fountain Hills fees include the fee assessed by the Fountain Hills Sanitation District. The District’s fee varies and an average of the minimum and maximum fee was used for the comparison - $5,700 per single family equivalent. The average of the survey group (excluding the Town) is $8,976. Table 8 Residential Development Fee Survey Single Family Detached City/Town Gen. Govt. Law Enforcement Streets Open Space Parks/ Rec. Fire Library Utility (1) Total Apache Junction (2) $83 $133 $1,485 $564 $262 $2,921 $5,448 Avondale $585 $187 $873 $791 $489 $264 $6,810 $9,999 Carefree $963 $237 $1,255 $2,455 Cave Creek $736 $911 $3,230 $798 $3,570 $9,245 Fountain Hills (3) Current $466 $32 $609 $1,258 $1,130 $5,700 $9,195 Proposed $928 $441 $1,291 $810 $1,382 $99 $163 $5,700 $10,814 Gilbert $595 $586 $280 $2,449 $663 $9,003 $13,576 Mesa (4) $446 $226 $1,199 $145 $424 $2,458 $4,898 Paradise Valley $18,532 $18,532 Queen Creek (2) $600 $279 $166 $3,814 $656 $4,366 $9,881 Scottsdale (5) $6,754 $6,754 w/o FH Average Median $573 $595 $282 $226 $659 $577 $2,216 $2,243 $1,309 $999 $432 $489 $402 $344 $6,802 $5,560 $8,976 $9,245 (1) Wastewater, water, sanitation, and storm water. (2) Open Space includes Parks & Recreation. (3) Bolded fees are not charged by the Town of Fountain Hills; charged by the Fountain Hills Sanitation District. (4) Parks & Recreation includes Cultural Facility fee. (5) Assumed ¼ acre lot, Zones B-E fees. Zone A fees are lower. Town of Fountain Hills, AZ Page 11 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Figure 1 - Residential Development Fee Survey Single Family Detached $18,532 $13,576 $10,814 $9,999 $9,881 $9,245 $9,245 $9,195 $8,976 $6,754 $5,448 $4,898 $2,455 $0 $5,000 $10,000 $15,000 $20,000 Paradise Valley Gilbert Fountain Hills PROPOSED Avondale Queen Creek Cave Creek Median (Excluding FH) Fountain Hills CURRENT Average (Excluding FH) Scottsdale Apache Junction Mesa Carefree Note: All amounts include applicable water, wastewater development and storm water fees; average fees were used when more than one fee could apply to a fee category. For Fountain Hills, an average wastewater fee of $5,700 was used assuming the average of two fee levels: a $5,100 fee would apply as a base capacity fee, and an additional Capacity Fee Surcharge of $1,200 (for a total fee lf $6,300) would apply for homes located in the Shea Corridor utilizing the Shea Outfall Sewer. Table 9 and Figure 2 show the total proposed commercial development fees for Fountain Hills and the other Arizona communities. In order to make the comparison valid or useful, all fees were calculated for a 3,000 square foot restaurant with a 1-inch water service line/meter. Table 10 and Figure 3 show the proposed commercial non-utility development fees per square foot for a restaurant. Town of Fountain Hills, AZ Page 12 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 9 Commercial Development Fee Survey 3,000 SF Restaurant w/1" Meter City/Town Gen. Govt. Law Enforcement Streets Fire Utility (1) Total Apache Junction $609 $975 $11,577 $13,161 Avondale $1,641 $1,647 $10,860 $1,371 $16,195 $31,714 Carefree $4,314 $3,372 $7,686 Cave Creek $11,361 $3,741 $6,067 $21,169 Fountain Hills (3) Current $900 $60 $570 $5,700 $7,230 Proposed $1,743 $828 $13,464 $186 $5,700 $21,921 Gilbert $945 $936 $3,162 $993 $15,431 $21,467 Mesa (2) $750 $4,412 $2,829 $6,051 $14,042 Paradise Valley $18,532 $18,532 Queen Creek $1,767 $333 $4,923 $7,417 $14,440 Scottsdale (4) $48,272 $48,272 w/o FH Average Median $3,055 $1,641 $1,661 $975 $6,273 $4,332 $1,731 $1,371 $10,360 $15,431 $21,165 $18,532 (1) Wastewater, water, sanitation, and storm water. (2) Law enforcement and fire fees are based on an average of fast food and sit-down restaurant fees. (3) Bolded fees are not charged by the Town of Fountain Hills; charged by the Fountain Hills Sanitation District. (4) Assumed Zones B-E fee of $38.19 per gallon of estimated average daily usage (assumed to be 24,500 gpd for 1-inch meter). Zone A fees are lower. The significant increase in the Town's commercial fees is largely the result of the change in the streets fee. This increase is compounded by the fact that the Town did not adopt the calculated streets fee based on the last study. The streets fee as recommended in the last comprehensive study was not adopted by the Town; the Town adopted a streets fee for commercial development that was only 10% of the recommended fee ($0.19 was adopted and the recommended fee was $1.90). Furthermore, the use of the cash flow method (instead of a historic investment approach) also contributed to the increase in the streets fee. Increases in the other fee areas, general government and law enforcement, and the new fire fee are also responsible for the increase in the total commercial fee (industrial fees as well). Town of Fountain Hills, AZ Page 13 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Figure 2 - Commercial Development Fee Survey 3,000 SF Restaurant with 1" Meter $48,272 $31,714 $21,921 $21,467 $21,169 $21,165 $18,532 $18,532 $14,440 $14,042 $13,161 $7,686 $7,230 $1,000 $10,000 $100,000 Scottsdale Avondale Fountain Hills PROPOSED Gilbert Cave Creek Average (Excluding FH) Paradise Valley Median (Excluding FH) Queen Creek Mesa Apache Junction Carefree Fountain Hills CURRENT Note: All amounts include applicable water, wastewater and storm water development fees; average fees were used when more than one fee could apply to a fee category. For Fountain Hills, an average wastewater fee of $5,700 was used assuming the average of two fee levels: a $5,100 fee would apply as a base capacity fee, and an additional Capacity Fee Surcharge of $1,200 (for a total fee lf $6,300) would apply for businesses located in the Shea Corridor utilizing the Shea Outfall Sewer. Town of Fountain Hills, AZ Page 14 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Table 10 Commercial Development Fee Survey Restaurant (per SF) City/Town Gen. Govt. Law Enforcement Streets Fire Total Apache Junction $0.203 $0.325 $3.859 $4.387 Avondale $0.547 $0.549 $3.620 $0.457 $5.173 Carefree $1.438 $1.124 $2.562 Cave Creek $3.787 $1.247 $5.034 Fountain Hills Current $0.300 $0.020 $0.190 $0.510 Proposed $0.581 $0.276 $4.488 $0.062 $5.407 Gilbert $0.315 $0.312 $1.054 $0.331 $2.012 Mesa (1) $0.250 $1.471 $0.943 $2.664 Paradise Valley Queen Creek $0.589 $0.111 $1.641 $2.341 Scottsdale w/o FH Average $1.018 $0.554 $2.091 $0.577 $3.453 Median $0.547 $0.325 $1.444 $0.457 $2.664 (1) Law enforcement and fire fees are based on an average of fast food and sit-down restaurant fees. Town of Fountain Hills, AZ Page 15 Development Fee Study – Report Addendum with State Trust Land December 30, 2005 Figure 3 - Commercial Development Fees Restaurant (per SF) $5.407 $5.173 $5.034 $4.387 $3.453 $2.664 $2.664 $2.562 $2.341 $2.012 $0.510 $0.000 $1.000 $2.000 $3.000 $4.000 $5.000 $6.000 Fountain Hills PROPOSED Avondale Cave Creek Apache Junction Average (Excluding FH) Median (Excluding FH) Mesa Carefree Queen Creek Gilbert Fountain Hills CURRENT ORDINANCE NO. 06-02 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS TOWN CODE, CHAPTER 7, BUILDINGS AND BUILDING REGULATIONS, ARTICLE 7-10, DEVELOPMENT FEES, AND ADOPTING NEW DEVELOPMENT FEES FOR GENERAL GOVERNMENT, LAW ENFORCEMENT, OPEN SPACE, PARKS AND RECREATION, STREETS, FIRE AND EMERGENCY, AND LIBRARY AND MUSEUM SERVICES, FOR THE TOWN OF FOUNTAIN HILLS, ARIZONA. WHEREAS, the Town received from Red Oak Consulting a written report dated September, 2005, entitled “Town of Fountain Hills Development Fee Study, Final Report” and two written addenda to the report dated December 30, 2005, entitled “Town of Fountain Hills Development Fee Study, Final Report Addendum With State Trust Land” and “Town of Fountain Hills Development Fee Study, Final Report Addendum Without State Trust Land” (collectively the “Development Fee Study”) containing the studies and analysis required by ARIZ. REV. STAT. § 9-463.05, as amended, for the adoption of new development fees for general government, law enforcement, open space, parks and recreation, streets, fire and emergency, and library and museum services, which Development Fee Study has been released to the public; and WHEREAS, a notice of intention to assess new development fees was given as required by ARIZ. REV. STAT. § 9-463.05(C); and WHEREAS, a public hearing concerning the adoption of the new impact fees was held in accordance with ARIZ. REV. STAT. § 9-463.05(C) on December 13, 2005; and WHEREAS, the Mayor and Council find that the Development Fee Study fully supports the conclusion that the new development fees for general government, law enforcement, open space, parks and recreation, streets, fire and emergency, and library and museum services, fully and fairly offset costs to the Town associated with providing these necessary public services to new development in the Town. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That the Fountain Hills Town Code, Chapter 7, Buildings and Building Regulations, Article 7-10, Development Fees, Section 7-10-2, is hereby amended as follows: Section 7-10-2 Definitions The words or phrases used herein shall have the meaning prescribed in the current Fountain Hills Town Code except as otherwise indicated herein: A. Applicant – any person who files an application with the Town for a building permit. 622338.3 B. Appropriation or to appropriate – an action by the Town to identify specific public facilities for which development fee funds may be utilized. Appropriation shall include, but shall not necessarily be limited to: inclusion of a public facility in the adopted Town budget or capital improvements program; execution of a contract or other legal encumbrance for construction of a public facility using development fee funds in whole or in part; and/or actual expenditure of development fee funds through payments made from a development fee account. C. Commercial or industrial use – means any use or establishment not defined as a dwelling unit. D. Connection – means the physical tie-in of a developer’ s water, effluent or sewer service to a water, effluent or sewer main. E. Director – the Director of Community Development THE TOWN MANAGER OR AUTHORIZED DESIGNEE. F. Developer – means the individual, firm, corporation, partnership, association, syndication, trust or other legal entity that is responsible for creating a demand for Town facilities and services. G. Development Fee – a fee adopted pursuant to Arizona Revised Statutes § 9-463.05 which is imposed on new development on a pro rata basis in connection with and as a condition of the issuance of a building permit and which is calculated to defray all or a portion of the costs of the public facilities required to accommodate new development at Town- designated level of service (LOS) standards and which reasonably benefits new development. H. Development Fee Adoption and Imposition – this Ordinance establishes procedures and requirements for all development fees which may be adopted by the Town; provided, however, that in order to impose a development fee for a particular public facility, the Town shall prepare a written report, notice, schedule and hold a public hearing; and otherwise comply with all applicable requirements of Arizona Revised Statutes § 9- 463.05 and this Ordinance. I. Development Fee Calculation Methodology Report – that report entitled “ Town of Fountain Hills, Arizona Development Fee Study Final Report” dated September 26, 2000 that was prepared by Rick Giardina & Associates in association with BBC Research and Consulting “TOWN OF FOUNTAIN HILLS DEVELOPMENT FEE STUDY, FINAL REPORT” DATED SEPTEMBER, 2005, AND TWO WRITTEN ADDENDA DATED DECEMBER 30, 2005, ENTITLED “TOWN OF FOUNTAIN HILLS DEVELOPMENT FEE STUDY, FINAL REPORT ADDENDUM WITH STATE TRUST LAND” AND “TOWN OF FOUNTAIN HILLS DEVELOPMENT FEE STUDY, FINAL REPORT ADDENDUM WITHOUT STATE TRUST LAND”, THAT WERE ALL PREPARED BY RED OAK CONSULTING. 622338.3 2 J. Development Fee District Maps – the map(s) defining the geographical extent of development fee districts, if any, for each adopted development fee, as may be necessary. K. District or Development Fee District – a defined geographical area or sub-area of the Town and/or its planning area within which particular public facilities are provided and in which development fees will be collected, appropriated, and expended for public facilities serving new development within such area or sub-area. L. Dwelling Unit – means a room or group of rooms within a building containing cooking accommodations and designed to be used for living purposes. Each apartment unit, mobile home, mobile home space, travel trailer or travel trailer space shall be considered a dwelling unit. Dwelling unit shall not include those units designed primarily for transient occupant purposes, nor shall they include rooms in hospitals or nursing homes. 1. Single-Family Detached Dwelling Unit – means a dwelling unit designed and used by only one family and which unit is physically separated from any other dwelling unit. 2. All Other Dwelling Units – means a dwelling unit typically designed and used for only a single family, but which is either attached to another dwelling unit, such as an apartment, duplex, townhouse or single-family attached dwelling unit such as a guest house, or which is a mobile home or travel trailer. M. FIRE AND EMERGENCY DEVELOPMENT FEE – A FEE IMPOSED ON ALL NEW RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT TO FUND THE PROPORTIONATE SHARE OF THE COSTS OF: FIRE AND EMERGENCY BUILDINGS AND FACILITIES, COMMUNICATION SYSTEMS AND VEHICLES AND MAJOR CAPITAL EQUIPMENT. MN. General Government Development Fee – a fee imposed on all new residential and non- residential development to fund the proportionate share of the costs of: municipal office space and Town owned and operated vehicles and major capital equipment. NO. Governing Body – the Mayor and Common Council of the Town of Fountain Hills, Arizona. P. LAW ENFORCEMENT DEVELOPMENT FEE – A FEE IMPOSED ON ALL NEW RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT TO FUND THE PROPORTIONATE SHARE OF THE COSTS OF: LAW ENFORCEMENT BUILDINGS AND FACILITIES, COMMUNICATION SYSTEMS AND VEHICLES AND MAJOR CAPITAL EQUIPMENT. Q. LIBRARY AND MUSEUM DEVELOPMENT FEE – A FEE IMPOSED ONLY ON NEW RESIDENTIAL DEVELOPMENT TO FUND THE PROPORTIONATE SHARE OF THE COSTS OF: PUBLIC LIBRARY AND MUSEUM BUILDINGS AND FACILITIES AND MAJOR CAPITAL EQUIPMENT. 622338.3 3 OR. Multiple Uses – a new development consisting of both residential and non-residential uses, or one (1) or more different types of non-residential use, on the same site or part of the same new development. PS. Municipal Planning Area – an area outside of the present Fountain Hills Town limits, but in which the Town may provide public facilities and services. QT. New Development – any new construction, reconstruction, redevelopment, rehabilitation, structural alteration, structural enlargement, structural extension, or new use which requires a building permit; any change in use of an existing non-residential building, structure or lot requiring any form of Town building permit or approval, and which increases the demand for one (1) or more public facilities or services as herein defined; or, any change in use of an existing residential or non-residential building or structure or change in the use of land, which requires an increase in water meter size or installation of a larger water meter, except as otherwise provided in Section 3.E hereof. RU. Open Space Development Fee – a fee imposed only on new residential development to fund the proportionate share of the costs of: open space, including but not necessarily limited to, open space lands, hillside slope preservation, development rights, desert mountain preserves, trails, trailheads, and vehicular access rights of way. SV. Parks and Recreation Development Fee – a fee imposed only on new residential development to fund the proportionate share of the costs of: community parks, including but not limited to, development rights and/or construction easements and recreation facilities and improvements (but expressly excluding private neighborhood parks). TW. Public Facility or Service – public improvements, facilities or services necessitated by new development, including, but not limited to, police/Town Marshal LAW ENFORCEMENT facilities, streets, parks and recreation, open space, libraries, general government, public works, community facilities, municipal facilities, flood control and drainage, utilities and educational facilities. UX. Public Facility Expenditures – include amounts appropriated in connection with the planning, design, engineering and construction of public facilities; planning, legal, appraisal and other costs related to the acquisition of land, financing and development costs; the costs of compliance with purchasing procedures and applicable administrative and legal requirements; and all other costs necessarily incident to provision of the public safety. VY. Street Development Fee – a fee imposed on all new residential and non-residential development to fund the proportionate share of the costs of: transportation improvements and the widening of existing roads designed to solve congestion-related problems that are anticipated from increased traffic demands resulting from new development, and including improvements to principal and minor arterials and/or collectors needed for access and traffic mobility, but excluding project-specific traffic and transportation 622338.3 4 improvements such as turn lanes, individual traffic signals for the benefit of a specific development project and the like. W. Town Marshal Development Fee – a fee imposed on all new residential and non- residential development to fund the proportionate share of the costs of: Town Marshal buildings and facilities, communication systems and vehicles and major capital equipment. SECTION 2. That, except as set forth in Section 3 below, the Fountain Hills Town Code, Chapter 7, Buildings and Building Regulations, Article 7-10, Development Fees, Section 7-10-8, Town Marshal Development Fee, Section 7-10-9, Street Development Fee, Section 7-10-10, Parks and Recreation Development Fee, Section 7-10-11, Open Space Development Fee and Section 7-10-12, General Government Development Fee, are hereby deleted in their entirety and replaced with a new Section 7-10-8, Fees, to read as follows: Section 7-10-8 Fees All new residential and non-residential development in the Town shall be subject to payment of the following development fees: Town Service Unit Fee General Government Residential (1) Non-Residential (2) dwelling s.f. $1,000 $0.639 Law Enforcement Residential (1) Non-Residential (2) dwelling s.f. $594 $0.380 Open Space Residential (1) dwelling $856 Parks and Recreation Residential (1) dwelling $1,345 Streets Single Family Residential Multi-Family Residential Commercial Industrial dwelling dwelling s.f. s.f. $988 $586 $3.437 $0.714 622338.3 5 Fire & Emergency Residential (1) Non-Residential (2) dwelling s.f. $139 $0.089 Library and Museum Residential (1) dwelling $163 (1) Residential includes single and multi-family dwelling units. (2) Non-Residential includes commercial and industrial square footage. SECTION 3. That, if prior to July 1, 2006, the Town annexes into its corporate limits that certain 1,320 acres of real property located immediately north of the current northern boundary of the Town, presently owned by the State of Arizona and commonly referred to as the “State Trust Land”, the Fountain Hills Town Code, Chapter 7, Buildings and Building Regulations, Article 7-10, Development Fees, Section 7-10-8, Town Marshal Development Fee, Section 7-10-9, Street Development Fee, Section 7-10-10, Parks and Recreation Development Fee, Section 7-10-11, Open Space Development Fee and Section 7-10-12, General Government Development Fee, are hereby deleted in their entirety and replaced with a new Section 7-10-8, Fees, to read as follows: Section 7-10-8 Fees All new residential and non-residential development in the Town shall be subject to payment of the following development fees: Town Service Unit Fee General Government Residential (1) Non-Residential (2) dwelling s.f. $928 $0.581 Law Enforcement Residential (1) Non-Residential (2) dwelling s.f. $441 $0.276 Open Space Residential (1) dwelling $810 622338.3 6 Parks and Recreation Residential (1) dwelling $1,382 Streets Single Family Residential Multi-Family Residential Commercial Industrial dwelling dwelling s.f. s.f. $1,291 $765 $4.488 $0.933 Fire & Emergency Residential (1) Non-Residential (2) dwelling s.f. $99 $0.062 Library and Museum Residential (1) dwelling $163 (1) Residential includes single and multi-family dwelling units. (2) Non-Residential includes commercial and industrial square footage. SECTION 4: That the Fountain Hills Town Code, Chapter 7, Buildings and Building Regulations, Article 7-10, Development Fees, Section 7-10-13, Permits Issuance, is hereby renumbered 7-10-9. SECTION 5: That the new development fees for general government, law enforcement, open space, parks and recreation, streets, fire and emergency, and library and museum services, adopted pursuant to this Ordinance, shall become effective ninety (90) days after the date of adoption of this Ordinance, in accordance with ARIZ. REV. STAT. § 9-463.05(C). SECTION 6. That if any provision or any portion of any provision of this Ordinance is for any reason held to be unconstitutional or otherwise unenforceable by a court of competent jurisdiction, such provision or portion thereof shall be deemed separate, distinct and independent of the remaining provisions of this Ordinance and shall be severed therefrom without affecting the validity of the remaining portions of this Ordinance. [SIGNATURES ON FOLLOWING PAGE] 622338.3 7 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, January 5, 2006. 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 622338.3 8 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 1/05/06 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: Report 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: Quarterly UPDATE by Town Manager on progress of implementing the Council’s goals. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: List All Attachments as Follows: Written report. Type(s) of Presentation: Verbal Signatures of Submitting Staff: ____________________________ _____________________________________ Department Head Budget Review (if item not budgeted or exceeds budget amount) ____________________________ Town Manager REPORT TO FOUNTAIN HILLS TOWN COUNCIL 2nd QUARTER PROGRESS TOWARD GOALS ESTABLISHED BY COUNCIL Presented by Timothy G. Pickering, Town Manager January 5, 2006 OVERVIEW During a goal-setting retreat in January 2005, the Town Council identified primary goals for the FY2005-06 budget. A second retreat was held with management staff to develop specific implementation plans and identify resources necessary to carry out the goals established by the Council. The following graph depicts progress the staff has made toward achieving all goals. 0 102030405060708090100 BUSINESS RELATIONS / RETENTION INTERGOVERNMENTAL RELATIONS PROGRAM EXPLORE ADDITIONAL PARKS / AMENITIES STRATEGIC PLAN PUBLIC INFORMATION / GRANT WRITING STATE TRUST LAND PROGRESS TO GOALS 1st Quarter 2nd Quarter Percent Complete The Town Manager and management team are readily available to answer questions regarding this report. Goals Report Page 1 January 5, 2006 STATE TRUST LAND GOAL: In an active and timely manner, participate in the planning and annexation of the State Trust Land. In the last three months, the Town’s State Trust land team has met eight separate times to discuss and examine various issues surrounding the goal of annexing the State Trust Land north of the Town. These meetings occurred on October 6, October 13, October 24, November 10, November 17, December 1, December 7 and December 19, 2005. Town staff met with the State Land Commissioner, Mark Winkleman, and his staff on three occasions since October 1, 2005. These meetings occurred on October 20, November 21 and December 2, 2005. Mayor Nichols and Councilman Kehe also attended most of these meetings. Discussion at these meetings focused on a possible General Plan amendment and associated land use and density issues. Also discussed was the timing of the steps in the land disposal process and the availability of infrastructure. The Land Commissioner indicated that he wanted to sell the land before the end of the current fiscal year, or June 30, 2006. Staff has also actively supported an application by the Chaparral City Water Company for approval by the Arizona Corporation Commission of an Order Preliminary. An Order Preliminary is an initial indication of approval to provide domestic water service to a new area. After a public hearing on October 19, 2005, the Corporation Commission approved the Order Preliminary on October 25, 2005. The planning expert that was retained by the Town, LVA Urban Design Studio, L.L.C., has been busy preparing a draft of a proposed General Plan Amendment. A key component of this document is the draft land use map, which we are reviewing with the State Land Department. We have also been involved in the preparation of a draft pre- annexation agreement that the State is actively reviewing. We are also exploring the desirability of zoning the property consistent with the proposed General Plan Amendment before it is sold. We have also contracted with outside counsel who specialize in State Trust land dealings. Staff has provided input to the Maricopa County Department of Transportation regarding their plans to provide shoulders along McDowell Mountain Road. In a letter dated November 29, 2005, the Town Engineer communicated our comments. In October, the Town received notice that the State Land Commissioner had reclassified the State Trust Land north of the Town as suitable for development. The Mayor Goals Report Page 2 January 5, 2006 acknowledged the Town’s support for the Commissioner’s decision in a letter dated November 1, 2005. Our State Trust land team believes traffic generated by the development of the State Trust Land development should be examined closely. To address this topic, we have retained the services of a traffic engineer who will provide estimates of trips generated by the future use of this property. Finally, as the Council is aware, the Strategic Plan has validated the importance of our efforts. The annexation of the State Trust Land is identified as a key strategic focus area. Goals Report Page 3 January 5, 2006 PUBLIC INFORMATION/GRANT-WRITING GOAL: Develop a public information and grant-writing program. The Council elected to include this program in the duties of an Assistant Town Manager and Ellen Pence assumed that position on December 15, 2005. Ellen has extensive experience as a public information officer and with a government television channel. The Town received 77 applicants for the position, which began advertising in August. One of her first priorities is to develop the Town’s public information and grant-writing program. Below is the portion of the first year action plan for the Assistant Town Manager pertaining to public information and grant-writing programs: Develop and implement a comprehensive and proactive Public Information program • Inventory the current publications being produced targeted to employees and to the community. Evaluate content, design and effectiveness and ensure consistency among mediums and develop tools to measure effectiveness of communication program. Be responsible for distribution, electronic and/or hard copy, of Compass newsletter. • Become the central contact for the media and all departments should coordinate media responses through her office, i.e., developing talking points for media requests, relationships between the Assistant Town Manager and the media should be built, and review and update guidelines on working with the news media. Provide specialized training for potential spokespersons and individual training for the Mayor and Council. Review the "Newsroom" email list for issuing and distributing news releases for inclusiveness. • Strengthen the communication with the news media, including representatives of print, radio, TV. Strengthen the relationships with editorial boards of print media. Writing press releases, public service announcements and articles to distribute to media on positive Town government activities. • Improve programming on Channel 11. • Develop crisis communication plan. Produce basic information, such as how to contact key Town officials, gather facts, and determine solution and a plan of action. Provide training. Determine spokesperson throughout the duration of a crisis. • Write and publish articles by the Town Manager on major issues and opportunities. Consider "My Turn" columns, letters to the editor and articles in neighborhood newsletters on selected topics and issues. • On a bi-weekly basis, prepare and distribute on time the Town Manager’s activity report so that the Council is kept abreast of major activities of interest. Note the Goals Report Page 4 January 5, 2006 distribution of this report is to all employees and the press. • Be the Town’s official photographer. • Be the staff liaison for the public safety advisory commission. As this commission’s responsibility is one of promotion and awareness, this task fits under the proactive public information responsibilities of the position. • Review and expand the content of the Town's Web site through working with IT coordinator. Ensure that the site is comprehensive and easy to navigate. Keep accurate and current. • Write speeches for Town functions. Grant-writing program • Make recommendation, draft policies and suggest structure for a grant-writing program. • Coordinate departments in the grant-searching role. • Manage expectations of what this position, especially as it pertains to grant functions, can actually accomplish. • Create an inventory of existing grants, and identify gaps in funding for programs that could be eligible for grants. Determine the priorities that need funding. • Coordinate the statement of need and funding plan. Make sure that the Town can manage and monitor the funding. • Ensure that there are matching funds available before applying for grant. Goals Report Page 5 January 5, 2006 STRATEGIC PLAN Goal: Facilitate and complete the Town’s citizen-driven Strategic Planning Process. During the 2nd quarter of the fiscal year, much work was done on the Strategic Plan. A four-page, 20-question survey was mailed to 2,400 households in Fountain Hills, with over 50% of the recipients responding. One in eight households were heard from. The survey showed that most residents (97%) think Fountain Hills is a good place to live. Another 75% of residents knew the Town was in the process of developing a Strategic Plan. The Town’s Strategic Plan was adopted by the Council on December 1, 2005. A celebration of the plan’s completion was held on December 15, 2005 in conjunction with the 35th anniversary of the fountain. Bound copies of the Strategic Plan and all appendices have been provided to the Council. The plan is also available on the Town’s website. A subcommittee of the Technical Advisory Committee has been formed to act as a Speakers’ Bureau to relay information to the community about key components of the plan. The next step is for the Council to appoint commissioners to the Strategic Planning Advisory Commission. The application deadline was January 3 and interviews will be scheduled in the near future, with appointments to the commission scheduled to occur on February 2. The chart on the next page indicates those initiatives the residents desired and the Council adopted as strategic priorities for years 1-2 and years 3-5. Goals Report Page 6 January 5, 2006 Goals Report Page 7 January 5, 2006 EXPLORE ADDITIONAL PARKS AND AMENITIES GOAL: Explore opportunities for meeting the community’s expanding need for additional parks and amenities. Implementation Steps to Achieve the Objectives Outlined in Council Goal #4 • Research and develop analysis on national park standards The guidelines are based on the National Recreation and Park Association’s minimum standard of 2.5 acres per 1,000 population for both neighborhood and community parks. It was determined that the Town was currently deficient in acreage for existing neighborhood parks, but was meeting the guidelines for acreage of existing community parks. Notwithstanding the potential acquisition of the State Trust Land, Fountain Hills is expected to continue growing. Therefore, according to national guidelines, the Town would need to acquire an additional 46 acres for neighborhood park development. This would bring the total neighborhood park land inventory to 73 acres. Additionally, it is recommended adding approximately 15 acres for community park development for a total of 73 acres for community parks. Currently, there are 85 acres of neighborhood and community parks in Town. At build-out with an estimated population of 29,256, there will be a need based on the minimum national guidelines for an additional 61 acres. These numbers do not include the potential annexation of the State Trust Land to the north and the additional population that would bring. National Park Guidelines Neighborhood Park Needs Analysis 2.5 acres per 1,000 population - minimum Year Population Current Acres Acres/1,000 Population Add’l Acres Needed Total Needed 2000 20,235 27 1.35 23 50 2010 24,746 27 1.13 33 60 2020 29,256 27 .93 46 73 Goals Report Page 8 January 5, 2006 Community Park Needs Analysis 2.5 acres per 1,000 population - minimum Year Population Current Acres Acres/1,000 Population Add’l Acres Needed Total Needed 2000 20,235 58* 2.90 0 50 2010 24,746 58 2.42 2 60 2020 29,256 58 2.00 15 73 *Includes 33 acres of land in Fountain Park • Inventory all vacant land to determine ownership, usability and viability for park use A map of publicly owned, underdeveloped property was produced. In addition, an aerial map showing potential park sites with topographic overlays was also developed for considering usable and viable park sites. • Develop systems to access public opinion on park and amenity needs The final Strategic Plan document has been accepted and support for park amenities including trails was considered a priority. Additional neighborhood park land was not considered a high priority for the next few years by the public that responded to the survey. Several discussions have taken place with the staff of the School District to determine the willingness to buy, lease and/or share school property for parks. In December Town staff met again with School District officials to discuss specific pieces of property and the School District’s and Town's long-term plans. The next meeting, to be held in January, would bring Town staff together with District staff to discuss several specific pieces of School District property. A number of possible schematics on how various athletic fields might be configured on several of the more promising sites has been developed for discussion at the meeting. It is anticipated that these discussions will lead to a potential written agreement between the parties before the end of the current fiscal year on the long-term use of the sites, once developed, by both the Town and the District for athletic facilities. Once an agreement is approved landscape design plans would need to be developed and the projects budgeted for and bid, before the work on the site could begin. Including construction the process is likely to take several years to complete. Given that there are only two small sites under discussion, it is likely that the sites Goals Report Page 9 January 5, 2006 will yield a limited number of athletic fields that would likely be practice sites, not the larger complexes with multiples of either soccer or combination multipurpose baseball/softball fields. It is anticipated that these additional school-owned areas will help ease the issue of current limited space in Town for practice facilities, but will not resolve the more long-term issue of space for games as the Town continues to grow in size. • Contact major park users/stakeholders to determine their long-term needs Staff researched park and facility user patterns and met with the Park and Recreation Commission’s Facilities Planning Subcommittee to review the information. Additionally, Staff and the Facilities Planning Subcommittee met this fall with some organizations and user groups to discuss long-term community needs as the Town approaches build-out. One more meeting is being considered in January with the remaining youth athletic associations to finalize their long-term athletic field needs for both practices and games. • Use Parks and Recreation Commission as a resource to get public information out as well as being an advocate for new park lands and amenities During the strategic planning process, in which several members of the Commission were involved, staff continued to update the group regarding the progress of the task. An orientation of new incoming Commissioners is being planned for early 2006. Goals Report Page 10 January 5, 2006 INTERGOVERNMENTAL RELATIONS PROGRAM GOAL: Develop and carry out an intergovernmental relations and cooperation program with neighboring communities. Ellen Pence, the Town’s new Assistant Town Manager, will assume the goal. Her energies will be directed toward this goal in the coming months. Below is the Assistant Town Manager’s first year action plan regarding development of better relations with our neighbors and officials who represent us: Intergovernmental relations • Assist the Town in strengthening the relationships with the organizations providing services in the Town, including the Fountain Hills Unified School District, Fountain Hills Chamber of Commerce, Fountain Hills Sanitary District and Chaparral Water. • Communicate frequently with all these organizations. • Assist the Town Council and Manager in strengthening the relationships with regional and state organizations, including the surrounding neighboring cities, representatives at the state and federal legislatures, Maricopa County, the League of Arizona Cities and Towns, Maricopa Association of Governments, the Native American communities and other groups. Establish meetings between Town officials and these groups. • Identify partnerships on projects. • Track legislative activities and analyze impact on Town services; and communicate directly with legislators. Goals Report Page 11 January 5, 2006 BUSINESS RELATIONS / RETENTION GOAL: Continue enhancing business relations and retention. Since June 2005, when the new Economic Development Specialist was hired, several steps have been taken to continue enhancing business relations and retention, including the establishment of a 12-18 month work plan that coordinated with the 2005- 2006 Economic Development Strategic Plan. The Economic Development Specialist has been highly productive, completing the Economic Development Work Plan in just 6 months as detailed below: DESIGN 1) Assist the Assistant Public Works Director as the project manager on the Avenue of the Fountains project. a) Assumed responsibility of the project in October and created a one-year construction mitigation plan for the project. b) Worked closely with WLB Group to finalize the details (lighting, electrical, sewage, sidewalk, amenities) of the construction plans. 2) Coordinate with Planning to create guidelines/checklist for new construction/infill a) Identified how Economic Development could play a more active role in the process by writing guidelines for Planning and Zoning and by including Economic Development in the Building flow chart. 3) Review and become familiar with the Town Center Commercial Zoning District and be prepared to move forward with changes after receiving the final Strategic Plan; work with Planning staff on this. 4) Familiarized myself with the Town’s Zoning Ordinances and General Plan. ORGANIZATION 1) Meet informally with merchants and walk Main Street monthly. a) Responded to an average of 15 calls, emails, and/or letters per month from the business community. 2) Host Downtown Business Connection, a mixer and networking event for people with an interest in downtown Fountain Hills, as needed a) Hosted two Downtown Business Connection meetings to date; will continue to plan them as a quarterly event. b) Hosted two educational workshops for businesses, Media Training 101 and Promotions 101. 3) Work with Parks and Recreation to create/implement a year-round sponsorship package. Goals Report Page 12 January 5, 2006 a) Downtown Business Connection meeting helped to secure $6,000 in funds for Parks and Recreation concerts. 4) Develop a matching grant program, after receiving the final Strategic Plan. 5) Maintain inquiry database. a) Maintained hard files and database of correspondence with key investors such as the doctors groups interested in former Town Hall, the developer and property owner of the south side of the Avenue, and the resident interested in bringing a satellite college campus to Town. 6) Act as a liaison between business merchants and the Town. a) Expressed the business communities concerns as needed (temporary use permits, special events, signage). 7) Foster/develop relationships with investors and non-profit groups by being highly visible in the downtown and at events. a) Active membership with Arizona Association for Economic Development as part of the Public Relations Committee; Greater Phoenix Economic Council as a member of the Economic Development Director’s Team; Fountain Hills Chamber of Commerce as part of the Tourism Bureau/Communications Committee/Major Events Steering Committee; and as a member with ICSC and the National Main Street Program. PROMOTION 1) Write, publish, and distribute quarterly newsletter. a) Have published two, 4-page e-newsletters and distributed them to over 90 business leaders. 2) Establish/develop web page for downtown. a) Created and launched the Economic Development section of the Town’s web page in July. 3) Develop collateral piece/mailer; customize for different uses. a) Created a folder mailer with maps, a commercial property database, and traffic counts. b) Distributed the mailer to prospects and commercial realtors. 4) Create Power Point Presentation promoting the Town of Fountain Hills and downtown. a) Created and used presentation in November at Arizona Association for Economic Development luncheon as part of the “Community Spotlight” on Fountain Hills. 5) Re-evaluate impact in existing publications and rewrite if necessary. a) Helped accomplish this through active participation with the Tourism Bureau. 6) Submit press releases or stories, as appropriate. a) Sent six press releases in six months. b) Received a dozen positive articles in the local newspapers regarding Fountain Hills Economic Development. c) Helped secure a 30-minute radio spot. 7) Publicize new construction and renovation. Goals Report Page 13 January 5, 2006 a) Sent one press release to the media regarding the Town’s economic health that included data on new construction and increases in other types of businesses. 8) Coordinated Greater Phoenix Economic Council visit to Fountain Hills. The Economic Development Specialist hosted four members from the Greater Phoenix Economic Council (GPEC) on a community visit of Fountain Hills. The visit included an hour-long tour with stops at top properties in Town that were for sale. They included the former town hall, a vacant parcel along the south side of Avenue of the Fountains, an office building in the industrial area of Town, and several developed and undeveloped lots in the Colony business district. The tour also included a detailed tour of the downtown, state trust land, and residential developments. The tour was followed by a meeting at Desert Canyon Golf Course in which invited business leaders and Town staff joined GPEC. Town staff led three lunchtime presentations that provided GPEC information on the Town's demographics, land use, development process, current projects, and the Avenue of the Fountains Enhancement Project. The visit concluded at Fountain Park where GPEC was able to turn the fountain on and was given a tour of the pump house. ECONOMIC VITALITY 1) Provide assistance with “the process” to new and existing businesses. a) Identified how Economic Development could play a more active role in the process by writing guidelines for Planning and Zoning and by including Economic Development in the building flow chart. b) Made initial contact with the owners of CopperWynd and Fountain Hills Resort and Spa to discuss their future plans. 2) Identify the current business mix and proactively recruit new businesses to fill business gaps. a) Distributed a mailer to prospects and commercial realtors. 3) Create a database of available property and make available to the public. a) Created a database and property map of commercial property which is developed, undeveloped, for lease or for sale in July 2005 and updated it in November 2005. b) Distributed this information in a mailer to 115 total prospects and commercial realtors. 4) Work with Planning staff on the south Avenue of the Fountains development. a) Worked with Planning staff on the conceptual plan for the mixed-use development as proposed by Mr. Olmschied. Have worked extensively with Mr. Olmschied and the property owner to close escrow on the property and to express the Town’s wishes for the development/property. Goals Report Page 14 January 5, 2006 SPECIAL EVENTS 1) Talk to business merchants to generate ideas for special events. Some ideas include: Fountain Hills Fun Run; The Dog Days of Summer; A Celebration of Business; Music in the Park; Music on the Avenue. a) Created a mitigation plan that includes promotion as an element of the plan. b) Researched the statistics required to have a successful movie theater. SIX MONTH OVERVIEW • Developed the 12-18 month Economic Development work plan. • Grew professionally through attendance at three conferences geared towards economic development. • Was the guest speaker regarding the Avenue of the Fountains Enhancement Project to a local realtors group and for two local Rotary Clubs. • Staffed a booth on behalf of the Town at the Scottsdale Realtors Expo (1,000+ attendees) and the Fountain Hills Business Showcase (4,000-5,000 attendees). • Since June 2005, 400+ new businesses licenses have been distributed, of which 152 businesses have physical addresses within Fountain Hills. • Worked extensively with the business community regarding the Farmers’ Market and Fall Festival. The Economic Development Specialist has outlined her goals for the remainder of the fiscal year, which include completing the remaining activity on the work plan, further implementing the Construction Mitigation Plan, continuing to act as Project Manager of the Avenue of the Fountains Enhancement Project, and proactively recruiting/retaining business in Fountain Hills. Goals Report Page 15 January 5, 2006 SUMMARY Staff has been working diligently to accomplish the goals of the Council. The Strategic Plan was completed ahead of schedule. Significant progress was made during this quarter on the goal to explore additional parks and amenities. The Town is engaged in discussions with the State Land Department and has been making progress toward the goal of annexing the State Trust land. Our new Assistant Town Manager will focus on developing a public information and grant-writing program, as well as on establishing an intergovernmental relations program, in the coming months. Extensive work has been done on enhancing business relations and retention, as evidenced by 99% completion of the Economic Development Work Plan in just six months. C:\ SWilliams on 'Earth' E:\My Documents\Word\Council\Reports to Council\Goals 2005-06\2nd Qtr Progress on Goals 010506 w-Action Form REV.doc Goals Report Page 16 January 5, 2006 18.) CONSIDERATION of a TEMPORARY USE PERMIT for “Desert Vista Market Arts & Crafts Fair”, located at 11645 N. Saguaro Boulevard, aka Plat 302, Lot 7A. Case #TU2005-18. 19.) CONSIDERATION of ORDINANCE 06-02, amending the Town Code, Chapter 7, Building and Building Regulations, Article 7-10, Development Fees. 20.) Quarterly UPDATE by the Town Manager on progress of implementing the Council’s goals. 21.) COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. Requested by Councilman Kavanagh – Placing the item of discussing outdoor sales in the downtown shopping overlay district on a future agenda. 22.) SUMMARY OF COUNCIL REQUESTS by Town Manager. 23.) ADJOURNMENT. DATED this 30th day of December, 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. Z:\Council Packets\2006\R1-5-06\Agenda 1-5-06.doc Page 1of 4 Last printed 12/30/2005 10:26 AM