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HomeMy WebLinkAbout2018.10.16.TCRM.Agenda.Packet�ty' f A [N fj1
�p NOTICE OF MEETING
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s— SPECIAL MEETING (EXECUTIVE SESSION)
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FOUNTAIN HILLS TOWN COUNCIL
is
Mayor Linda M. Kavanagh
Vice Mayor Art Tolis
Councilmember Dennis Brown
Councilmember Nick DePorter
Councilmember Henry Leger
Councilmember Alan Magazine
Councilmember - Vacant
TIME: 4:30 P.M. — SPECIAL MEETING (EXECUTIVE SESSION)
WHEN: TUESDAY, OCTOBER 16, 2018
WHERE: FOUNTAIN CONFERENCE ROOM —FOUNTAIN HILLS TOWN HALL
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
NOTICE OF MEETING AND POSSIBLE EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice
is hereby given to the members of the Fountain Hills Town Council and to the general public that the
Town Council will hold a meeting open to the public, for the purpose of deciding whether to go into
Executive Session. If authorized by a majority vote of the Council, the Executive Session will be held
immediately after the vote and will not be open to the public.
1. CALL TO ORDER — Mayor Linda M. Kavanagh
2. ROLL CALL — Mayor Linda M. Kavanagh
3. VOTE TO GO INTO EXECUTIVE SESSION
4. EXECUTIVE SESSION:
5. Discussion or consultation for legal advice with the attorney or attorneys of the public body, and
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 pursuant to A.R.S. §§38-431 03(A)(3) and (4)
respectively.
A. Adero Canyon Parcel 9
ADJOURNMENT
DATED this 9th day of October, 2018.
,- . "Town '.
k��T AIN yltCir
NOTICE OF MEETING
' - REGULAR MEETING
LIAar�r._. `tipo
FOUNTAIN HILLS TOWN COUNCIL
Mayor Linda M. Kavanagh
Vice Mayor Art Tolis Councilmember Sherry Leckrone
Councilmember Dennis Brown Councilmember Henry Leger
Councilmember Nick DePorter Councilmember Alan Magazine
TIME: 5:30 P.M. — REGULAR SESSION
WHEN: TUESDAY, OCTOBER 16, 2018
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of
the Town's various Commission, Committee or Board members may be in attendance at the Council meeting.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have
a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child.
Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are
present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with
the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a
recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights
afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.
PROCEDURE FOR ADDRESSING
Anyone wishing to speak before the Council must fill out a speaker's card and submit it to the Town
Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council
Chamber Lobby and near the Clerk's position on the dais.
Speakers will be called in the order in which the speaker cards were received either by the Clerk or the
Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their
name and whether or not they reside in Fountain Hills (do not provide a home address) prior to
commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers.
Speakers' statements should not be repetitive. If a speaker chooses not to speak when called, the
speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not
(i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another
speaker.
If there is a Public Hearing, please submit the speaker card to speak to that issue during the
Public Hearing.
Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be
waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior
to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a
Meeting. Please be respectful when making your comments. If you do not comply with these rules, you
will be asked to leave.
TOWN COUNCIL REGULAR MEETING AGENDA
OCTOBER 16, 2018
REGULAR MEETING
CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Linda M. Kavanagh
2. INVOCATION — Pastor Steve Bergeson, Shepherd of the Hills Lutheran Church
3. SWEARING IN of Sherry Leckrone as a member of the Fountain Hills Town Council
4. ROLL CALL — Mayor Linda M. Kavanagh
5. MAYOR'S REPORT
Page 1
A. The Mayor will read a proclamation declaring October 21 — 27, 2018, as 2018 Arizona
Cities and Towns Week.
B. The Mayor will read a proclamation declaring October 27, 2018, as Make a Difference
Day in Fountain Hills.
6. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
A. PRESENTATION by auditors, Heinfeld Meech & Co., to present the FY17-18
Comprehensive Annual Financial Report (CAFR) to Council.
B. UPDATE on Tourism and Implementation of the Tourism Strategic Plan.
7. CALL TO THE PUBLIC
Pursuant to A.R.S. 38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda.
Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and
manner restrictions. The Council will not discuss or take legal action on matters raised during "Call to the Public'
unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public,
individual councilmembers may 0 respond to criticism, (H) ask staff to review a matter, or (fill ask that the matter be
placed on a future Council agenda.
8. CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, non -controversial matters and will be enacted
by one motion and one roll call vote of the Council. All motions and subsequent approvals of consent items will
include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these
items unless a councilmember or member of the public so requests. If a councilmember or member of the public
wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent
Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was
scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the
agenda.
A. APPROVAL OF Minutes of the Special Meeting (Executive Session) of October 2,
2018 and the Regular Meeting of October 2, 2018.
B. CONSIDERATION OF Resolution 2018-58, abandonment of the 20' Public Utility and
Drainage Easement on Plat 401-6, Block 3, Lot 11 (10225 N. Nicklaus Drive), as
recorded in Book 155, Page 12 records of Maricopa County, Arizona, with stipulation.
(EA2018-17)
C. CONSIDERATION of approving a Special Event Liquor License Application for the
Fountain Hills and Lower Verde Valley Museum and Historical Society fundraising
dinner and to be held in the Grand Ballroom of the Fountain Hills Community Center,
TOWN COUNCIL REGULAR MEETING AGENDA
OCTOBER 16, 2018
Page 2
13001 N. La Montana Drive, Fountain Hills, AZ from 5:30 PM to 9:00 PM on
Wednesday, March 27, 2019.
9. REGULAR AGENDA
A. CONSIDERATION OF Contract C2019-08, award to Dixie Green Promotions for the
Fountain Hills Farmers Market on the Avenue of the Fountains.
B. CONSIDERATION OF First Amendment of Professional Services Agreement (C2018-
080.01) with Kompan, Inc. in amount of $150,000 for the purchase of playground
equipment in conjunction with the Four Peaks Park improvements.
C. REPORT ON action taken regarding lost pet signs.
10. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER
Item(s) listed below are related only to the propriety of (i) placing such item (s) on a future
agenda for action or (ii) directing staff to conduct further research and report back to the
Council:
11. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the
Mayor, individual Councilmembers, and the Town Manager.
12. ADJOURNMENT.
AGENDA POSTED:
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Date
i
, �
RMBurke, Towr(Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call
480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to
participate in the 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.
S
CITIEs Town of Fountain Hills league RK ctteswork.com PROCLAMATION
WHEREAS, the citizens of the Town of Fountain Hills rely on the Town to experience a high
quality of life in our community; and
WHEREAS, cities and towns in Arizona work 24 hours a day, seven days a week to deliver vital
city and town services such as fire, police, and emergency medical response to ensure safe
communities; and
WHEREAS, cities and towns in Arizona also provide services and programs that enhance the
quality of life for residents such as parks, utilities, street maintenance, sanitation and recycling
services, libraries, community centers, and recreational programs; and
WHEREAS, it is important for the Town of Fountain Hills to continue to provide the excellent
delivery of services and programs that our citizens have come to expect in our community; and
WHEREAS, it is one of the responsibilities of Town officials to ensure open and accessible
government through frequent communication with citizens using various avenues and means;
and
WHEREAS, through participation and cooperation; citizens, community leaders, local businesses
and municipal staff can work together to ensure that services provided by the Town of Fountain
Hills can remain exceptional elements of the quality of life of our community; and
WHEREAS, I, Linda M. Kavanagh, Mayor of the Town of Fountain Hills, Arizona, do hereby
proclaim that the Town of Fountain Hills joins with the League of Arizona Cities and Towns and
fellow municipalities across the state of Arizona in declaring October 21 - 27, 2018, Arizona
Cities and Towns Week.
Dated This 161" day of October, 2018
(,�M -Ca/
Linda M. Kavanagh, Mayor
ATTEST:
Elizabeth A. r e, Town
', �. irk-:_'�-1'�.:; � i'�`__._%`.. ., 1�, \ .L.�.--�� •, .,; 1-�"'/=-` 1 ,� .L� �:. , .�,_``_ �..� .Y'.'. �
Town
of
Fountain
Hills
PROCLAMATION
WHEREAS, serious social problems concern our nation, state, and town, and threaten our
future; and,
WHEREAS, connecting with others and working together through volunteer service can bridge
the differences that separate people and help solve serious social problems; and,
WHEREAS, we, the American people and the residents of Fountain Hills, have a tradition of
philanthropy and volunteerism; and,
WHEREAS, in 2017, almost five million people cared enough about their communities to
volunteer on MAKE DIFFERENCE DAY, accomplishing thousands of projects in hundreds of
cities and towns; and,
WHEREAS, in our community, nonprofit organizations, schools, businesses, houses of worship,
families, neighborhoods, and friends serve together to make a difference; and
WHEREAS, 2018 makes the loth year for Fountain Hills to demonstrate that it is the small town
with a big heart; and
WHEREAS, the Town of Fountain Hills supports a vibrant community to enrich the lives of our
residents;
WHEREAS, I, Linda M. Kavanagh, Mayor of the Town of Fountain Hills, Arizona, do hereby
proclaim October 27, 2018 as MAKE DIFFERENCE DAY in Fountain Hills, and urge all citizens to
participate in volunteer projects as we work together to meet the needs of our neighbors.
Dated This 16' day of October, 2018
o z
z
opo
"'at is Ac�ti,
(�M tI
Linda M. Kavanagh, Mayor
ATTEST:
Town
HeinfeltlMeech Tucson Phoenix Flagstaff
Heinfeltl Meech ech.cocorn
INDEPENDENT ACCOUNTANT'S REPORT
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have examined the Town of Fountain Hills, Arizona's (Town) compliance as to whether
highway user revenue fund monies received by the Town of Fountain Hills, Arizona pursuant to
Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated state
transportation revenues received by the Town of Fountain Hills, Arizona, were used solely for
authorized transportation purposes during the year ended June 30, 2018. Management is
responsible for the Town of Fountain Hills, Arizona's compliance with those requirements. Our
responsibility is to express an opinion on the Town of Fountain Hills, Arizona's compliance based
on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about the Town of Fountain Hills,
Arizona's compliance with the requirements referred to above, in all material respects. An
examination involves performing procedures to obtain evidence about the Town of Fountain Hills,
Arizona's compliance with the requirements referred to above. The nature, timing, and extent of
the procedures selected depend on our judgement, including an assessment of the risks of material
noncompliance of the report, whether due to fraud or error. We believe the evidence we obtained
is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does
not provide a legal determination on the Town of Fountain Hills, Arizona's compliance with
specified requirements.
In our opinion, the Town of Fountain Hills, Arizona complied, in all material respects, with the
aforementioned requirements for the year ended June 30, 2018.
�► �ekd , Vit,p�,r,� �Co,,�°e
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
October 4, 2018
,4 HeinfeldMeech
Tucson • Phoenix • Flagstaff
HeinfeldMeech. corn
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Rep
The Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of Town
of Fountain Hills, Arizona, as of and for the year ended June 30, 2018, and the related notes to the
financial statements, which collectively comprise Town of Fountain Hills, Arizona's basic
financial statements, and have issued our report thereon dated October 4, 2018.
Internal Control Over Financial Renortine
In planning and performing our audit of the financial statements, we considered Town of Fountain
Hills, Arizona's internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
Town of Fountain Hills, Arizona's internal control. Accordingly, we do not express an opinion
on the effectiveness of Town of Fountain Hills, Arizona's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Fountain Hills, Arizona's
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
October 4, 2018
Page 2
Town of Fountain Hills, Arizona
Management Letter
Year Ended June 30, 2018
Heinfelditch Tucson Phoenix Flagstaff
HeinfeldMeech.com
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Members of the Council:
In planning and conducting our audit of the financial statements of Town of Fountain Hills,
Arizona for the year ended June 30, 2018, we performed the following as required by Government
Auditing Standards (GAS):
■ Considered the Town's internal control over financial reporting.
• Tested compliance with certain provisions of laws, regulations, contracts, and grant
agreements that could have a direct and material effect on the Town's financial statements.
Any audit findings that are required to be reported by GAS have been included in the Town's
Report on Audit of Financial Statements and Report on Internal Control and on Compliance for
the year ended June 30, 2018. Our audit disclosed an opportunity for strengthening internal
controls. Management should address this item to ensure that it fulfills its responsibility to
establish and maintain adequate internal controls and comply with laws, regulations, contracts, and
grant agreements. The item and our related recommendation is briefly described in the
accompanying summary.
This information is intended for the Town of Fountain Hills, Arizona's Council and is not intended
to be and should not be used by anyone other than the specified party. However, this information
is a matter of public record, and its distribution is not limited.
We have already discussed this item with Town personnel and we will be pleased to discuss this
in further detail at your convenience, to perform any additional study of the matter, or to assist you
in implementing the recommendation.
Sincerely,
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
October 4, 2018
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT LETTER
YEAR ENDED JUNE 30, 2018
BUILDING PERMIT FEES
We tested fifteen building permits issued during the fiscal year and found one file where the
incorrect fees were charged to the customer because the Town charged a base fee twice.
Specifically, the base fee was pre -loaded into the software system in two areas and one was not
deleted upon issuance of the permit, per the Town's normal practice. As a result of the issue noted,
the customer was issued a refund for the amount.
We recommend the Town enhance internal control procedures that require an employee to
reconcile manual building permit files to the computerized system to ensure accuracy of the
calculations and to ensure customers are charged the correct amounts. This reconciliation should
be documented and reviewed by management.
Management's Response
The Town has reemphasized its policy to verify all manual permit calculations with the computer -
generated permit values. This policy will be explained to each person involved with the process
and will include having one permit tech check the other permit tech's work with a review by the
Chief Building Official who will document his review in writing.
Page 2
Town of Fountain Hills, Arizona
Annual Expenditure Limitation Report
Year Ended June 30, 2018
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2018
CONTENTS
Independent Accountant's Report
Annual Expenditure Limitation Report - Part I
Annual Expenditure Limitation Report - Part II
Annual Expenditure Limitation Report - Reconciliation
Notes to Annual Expenditure Limitation Report
PAGE
*) HeinfeldMeech
INDEPENDENT ACCOUNTANT'S REPORT
The Auditor General of the State of Arizona
The Honorable Mayor and Town Council
of the Town of Fountain Hills, Arizona
Tucson • Phoenix • Flagstaff
Heinfeld Meech.com
We have examined the accompanying Annual Expenditure Limitation Report of Town of Fountain
Hills, Arizona for the year ended June 30, 2018, and the related notes to the report. The Town of
Fountain Hills, Arizona's management is responsible for presenting this report in accordance with
the uniform expenditure reporting system as described in Note 1. Our responsibility is to express
an opinion on this report based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the uniform expenditure reporting system, in all material respects. An
examination involves performing procedures to obtain evidence about the amounts and disclosures
in the report. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material misstatement of the report, whether due to fraud
or error. We believe that the evidence we obtained is sufficient and appropriate to provide
reasonable basis for our opinion.
In our opinion, the Annual Expenditure Limitation Report referred to above is presented, in all
material respects, in accordance with the information prescribed by the uniform expenditure
reporting system as described in Note 1.
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
October 4, 2018
Page I
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT — PART I
YEAR ENDED JUNE 30, 2018
1. Economic Estimates Commission expenditure limitation $ 28,182,002
2. Voter -approved alternative expenditure limitation
(approved N/A)
3. Enter applicable amount from line 1 or line 2 $ 28,182,002
4. Amount subject to the expenditure limitation
(total amount from Part II, Line C) 21,015,023
5. Amount under the expenditure limitation $ 7,166,979
I hereby certify, to the best of my knowledge and belief, that the information contained in this
report is accurate and in accordance with the requirements of the uniform expenditure reporting
Signature of Chief Fiscal Officer
Name and Title: Craig Rudolphy, Finance Director
Telephone Number: 480-816-5162 Date: October 4, 2018
See accompanying notes to report.
Page 2
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - PART II
YEAR ENDED JUNE 30, 2018
Internal
Governmental Enterprise Service Fiduciary
Description
Funds Funds Funds Funds
Total
A. Amounts reported on the
Reconciliation, Line D $
24,175,949 $ - $ - $ - $
24,175,949
B. Less exclusions claimed:
-
I Bond proceeds
-
Debt service requirements on bonded indebtedness
2,121,550
2,121,550
Proceeds from other long-term obligations
-
Debt service requirements on other long-term obligations
-
2 Dividends, interest, and gains on the sale or redemption of investment securiti
135,389
135,389
3 Trustee or custodian
-
4 Grants and aid from the federal government
-
5 Grants, aid, contributions, or gifts from a private agency, organization, or individual,
except amounts received in lieu of taxes
139,499
139,499
6 Amounts received from the State of Arizona
139,500
139,500
7 Quasi -external interfund transactions
8,460
8,460
8 Amounts accumulated for the purchase of land, and the purchase or construction of
buildings or improvement
-
9 Highway user revenues in excess of those received in fiscal year 1979-8
513,148
513,148
10 Contracts with other political subdivisions
-
I1 Refunds, reimbursements, and other recoveries
103,380
103,380
12 Voter -approved exclusions not identified above
-
13 Prior years carryforward
14 Total exclusions claimed
3,160,926
3,160,926
C. Amounts subject to expenditure limitatio $
21,015,023 $ - $ - $ - $
21,015,023
See accompanying notes to report
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION
YEAR ENDED JUNE 30, 2018
Internal
Governmental Enterprise Service Fiduciary
Description
Funds Funds Funds Funds
Total
A.
Total expenditures/expenses/deductions and applicable other financing
uses, special items, and extraordinary items reported within the fond
financial statements $
25,015,670 $ - $ - $ - $
25,015,670
B.
Subtractions:
1.
Items not requiring the use of
working capital -
Depreciation
-
Loss on disposal of capital assets
-
Bad debt expense
-
Other postemployment benefits expense
-
Claims incurred but not reported
-
Pension expense
-
Landfill closure and postclosure care costs
-
2.
Expenditures of separate legal entities established under Arizona
-
Revised Statues
790,115
790,115
3.
Required fees paid to the Arizona Department of Revenue
49,606
49,606
4.
Involuntary courtjudgments
5.
Total subtractions
839,721
839,721
C.
Additions:
1.
Principal payments on long -tern debt
-
2.
Acquisition of capital assets
3.
Other postemployment benefits paid in the current year
but reported as expenses in previous years
-
4.
Claims paid in the current year but reported as
expenses incurred but not reported in previous years
-
5.
Pension contributions paid in the current year
-
6.
Landfill closure and postclosure care costs paid in the current year but
reported as expenses in previous years
7.
Total additions
D.
Amounts reported on Put II, Line A $
24,175,949 $ - $ - $ - $
24,175,949
See accompanying notes to report
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the
Uniform Expenditure Reporting System (UERS), as required by Arizona Revised Statutes
§41-1279.07. The AELR excludes expenditures, expenses, or deductions of certain revenues
specified in the Arizona Constitution, Article DC, §20, from the total expenditures, expenses,
or deductions reported in the fund financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on Part II and each subtraction or addition in the Reconciliation that cannot
be traced directly to an amount reported in the fund financial statements. All references to
financial statement amounts in the following notes refer to the Statement of Revenues,
Expenditures, and Changes in Fund Balances for the Governmental Funds.
NOTE 2 - The exclusion claim for expenditures of separate legal entities established under Arizona
Revised Statutes in the Governmental Funds consists of expenditures from the Municipal
Property Corporation Debt Service Fund, Cottonwoods Maintenance Fund and the Eagle
Mountain Debt Service Fund.
Governmental
Municipal Property Corporation Debt Service Fund $ 377,696
Cottonwoods Maintenance Fund 4,696
Eagle Mountain Debt Service Fund 407,723
$ 790,115
NOTE 3 - The subtraction of $58,971 for required fees paid to Arizona state agencies was paid to the
Arizona Department of Administration pursuant to A.R.S. §42-5041 for administrative,
program, and operating costs incurred in providing administrative and tax collection services
to the Town.
NOTE 4 - The exclusions claimed for debt service requirements on bonded indebtedness in the
Governmental Funds consisted of principal retirement, interest and fiscal fees in the General
Obligation Debt Service Fund.
NOTE 5 - The exclusions claimed for dividends, interest, and gains on the sale or redemption of
investment securities in the Governmental Funds consisted of investment earnings. The
current year exclusion utilized is a follows:
Governmental
Carryforward exclusions as of 6/30/17 $ 37,735
Investment earnings 158,860
Current year exclusion utilized 135,389
Carryforward exclusions as of 6/30/18 $ 61,206
Page 5
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2018
NOTE 6 - Grant revenues, contributions and sponsorships from private organizations are claimed as
exclusions in the year the expenditure occurs and any unused amounts are carried forward for
future years. The current year grant exclusion utilized is a follows:
Proposition 202 $ 91,000
Contributions 42,641
Sponsorships 5,858
Current year exclusion utilized $ 139,499
NOTE 7 - State grant revenues are claimed as exclusions in the year the expenditure occurs and any
unused amounts are carried forward for future years. The current year state grant exclusion
utilized is a follows:
Proposition 302 $ 37,554
Local Transportation Assistance Fund 101,946
Current year exclusion utilized $ 139,500
NOTE 8 - Quasi -external interfund transactions are claimed as exclusions in the year the expenditure
occurs and any unused amounts are carried forward for future years. The current year exclusion
is $8,460 related to the Towds environmental fee paid from the General Fund to the
Environmental Fee Fund.
NOTE 9 - The highway user revenue (HURF) earned in excess of the amounts received in fiscal year
1979-80 is as follows:
HURF Fund Intergovernmental Revenue
Less: Vehicle License Tax Revenues
Excludable revenue
Carryforward HURF funds as of 6/30/17
HURF Fund expenditures
Less: expenditures of Vehicle License Tax
Less: expenditures of non -excludable revenue
Less: amounts transferred from the Capital Projects Fund
HURF eligible expenditures in current year
Less: current year HURF Funds utilized
Carryforward HURF Funds as of 6/30/18
$ 2,605,350
(1,011,836)
$ 1,593,514
$ 1,520,167
2,580,497
(1,011,836)
(855,513)
(200,000)
513,148
(513,148)
$ 2,600,533
NOTE 10 - Refunds, reimbursements, and other recoveries are claimed as exclusions in the year the
expenditure occurs and any unused amounts are carried forward for future years. The current
exclusions utilized was $103,380.
Page 6
Town of Fountain Hills, Arizona
0 Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2018
TOWN OF FOUNTAIN HILLS, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Issued by:
Administration Department
Finance Division
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
IN I RUDUC1'ORY SECTION PaEe
Letter of Transmittal 1
List of Principal Officials 12
GFOA Certificate of Achievement 13
Organizational Chart 14
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
17
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
21
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements:
Statement of Net Position
34
Statement of Activities
35
Fund Financial Statements:
Balance Sheet — Governmental Funds
38
Reconciliation of the Balance Sheet —
Governmental Funds to the Statement of Net Position
41
Statement of Revenues, Expenditures and Changes in Fund Balances —
Governmental Funds
42
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances — Governmental Funds to the
Statement of Activities
44
Notes to Financial Statements
45
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION — continued Page
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual:
General Fund 66
Highway User Revenue Fund 67
Grants Fund 68
Note to Required Supplementary Information 69
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet — All Non -Major Governmental Funds —
By Fund Type 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances — All Non -Major Governmental Funds — By Fund Type 73
Special Revenue Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances — Budget and Actual
Debt Service Funds:
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances — Budget and Actual
76
ul
m
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION — continued Page
Capital Projects Fund:
Combining Balance Sheet 90
Combining Statement of Revenues, Expenditures and Changes in 91
Fund Balances
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances — Budget and Actual 92
STATISTICAL SECTION
Financial Trends:
Net Position by Component 96
Changes in Net Position 98
Financial Trends:
Fund Balances — Governmental Funds 100
Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds 102
Revenue Capacity:
Governmental Activities — Tax Revenues by Source 104
Assessed Value and Estimated Actual Value of Taxable Property 105
Principal Property Taxpayers 106
Property Tax Levies and Collections 107
Taxable Sales by Category 108
Direct and Overlapping Sales Tax Rates 110
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
STATISTICAL SECTION — continued Page
Debt Capacity:
Ratios of Outstanding Debt by Type 111
Ratios of General Bonded Debt Outstanding 112
Direct and Overlapping Governmental Activities Debt 113
Legal Debt Margin Information 114
Calculation of Legal Debt Margin 116
Revenue Bond Coverage 117
Demographic and Economic Information:
Demographic and Economic Statistics 118
Principal Employers 120
Operating Information:
Authorized Full -Time Equivalent Government Employees by Function 121
Operating Indicators by Function 122
Capital Assets Statistics by Function 123
(This page intentionally left blank)
INTRODUCTORY SECTION
,;,v N yI
TOWN OF FOUNTAIN HILLS
_114 � A �o�° 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
480.816.5100 1 Fax:480.837.3145
October 4, 2018
To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Fountain
Hills:
State law requires that all general-purpose local governments publish, within six months of the
close of each fiscal year, a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America and audited in
accordance with auditing standards generally accepted in the United States by a certified public
accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the
Comprehensive Annual Financial Report (CAFR) of the Town of Fountain Hills (Town) for the
fiscal year ended June 30, 2018.
This report consists of management's representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft, or misuse and
to compile sufficient reliable information for the preparation of the Town of Fountain Hills's
financial statements in conformity with accounting principles generally accepted in the United
States of America. Because the cost of internal controls should not outweigh their benefits, the
Town's comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free of material misstatement.
As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The Town's financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified
public accounting firm. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the Town for the fiscal year ended June 30, 2018, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditors concluded, based upon the audit, that
there was a reasonable basis for rendering an unmodified opinion that the Town's financial
statements for the fiscal year ended June 30, 2018, are fairly presented in conformity with
accounting principles generally accepted in the United States of America. The independent
auditor's report is presented as the first component of the financial section of this report.
w .fh.az.gov
(This page intentionally left blank)
Accounting principles generally accepted in the Unites States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Town of Fountain Hills's MD&A can be found immediately following the report of the
independent auditors.
PROFILE OF THE GOVERNMENT
The Town of Fountain Hills overlooks the Verde River Valley and the east valley of the metro
Phoenix area. The Town is a master planned community established in 1970 by McCulloch
Properties (now MCO Properties, Inc.). Prior to 1970, the area was a cattle ranch and was part of
one of the largest land and cattle holdings in Arizona. The land was purchased by Robert
McCulloch in the late 1960s and the community designed by Charles Wood, Jr. (designer of
Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest
man-made fountains, a focal point that attracts thousands of visitors each year.
Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and
Scottsdale on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima-
Maricopa Indian Community on the south, and by the McDowell Mountain Regional Park on the
north. The elevation is 1,520 feet at the fountain, 2,130 feet at the Golden Eagle Trailhead, and is
approximately 500 feet above Phoenix.
Over the past twenty-five plus years, Fountain Hills has grown from 10,190 residents to a town of
23,899 in 2015. On June 5, 2006, the Town of Fountain Hills became twenty square miles and
about ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the
State Trust Land occurred over a two and one-half year period and development of the land will
occur over the next decade. Annexing this property into the Town ensures that its future
development will be of the highest quality under Town standards.
The Town offers a wide range of
living accommodations, from small
condominium complexes to large
custom homes. Fountain Hills also
offers recreational and cultural
programs and services that contribute
to a high quality of life for its
residents. The community consists of
primarily residential property and
open space; of the total 20.32 square
miles of land, only 2.5% of the total
is zoned commercial and/or
industrial, 23.3% is preserved as open
space and 51.0% is residential.
144,
Page 2
The Town's Mission Statement
The Town of Fountain Hills' purpose is to serve the best interests of the community by:
• providing for its safety and well-being;
• respecting its special, small-town character and quality of life;
• providing superior public services;
• sustaining the public trust through open and responsive government;
• and maintaining the stewardship and preservation of its financial and natural resources.
To serve, respect, and provide trust and stewardship.
Fountain Hills Town Hall
The Town of Fountain Hills is an Arizona municipal corporation, acting as a general law town as
prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989,
with the governmental and administrative affairs of the Town operating under the Council -
Manager form of government. Legislative authority is vested in a seven member Town Council.
The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town
Council meetings. The members of the Council are elected at large and serve four year overlapping
terms. The Town Council is responsible for the adoption of local ordinances, budget adoption,
appointment of residents to citizen advisory committees and hiring the Town Manager. The Town
Manager is responsible for implementation of the policies of the Town Council and overall
management of the Town through department directors and approximately 56 FTE employees.
The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town
Council.
The Town provides or administers a full range of
services including public safety (law enforcement, fire
and emergency services); development services (code
enforcement, planning and zoning); public works
(including construction and maintenance of streets and
infrastructure); municipal court; recreational activities;
community center; senior services and cultural events.
The Town does not maintain utility or other operations
that require the establishment of enterprise funds.
Page 3
The financial reporting entity (the Town) includes all the funds of the primary government (i.e.,
the Town of Fountain Hills as legally defined) as well as all of its component units. The component
units consist of legally separate entities for which the primary government is financially
accountable. Blended component units, although legally separate entities, are, in substance, part
of the primary government's operations and are included as part of the primary government.
Accordingly, the Cottonwoods Maintenance District, the Eagle Mountain Community Facilities
District and the Fountain Hills Municipal Property Corporation are included in the financial report
of the Town.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Town of
Fountain Hills operates.
Internal Controls. As earlier noted, the management of the Town of Fountain Hills, Arizona, is
responsible for establishing and maintaining a system of internal control. Internal accounting
controls are designed to provide reasonable, but not absolute, assurance regarding;
1) Safeguarding of assets against loss from unauthorized use or deposition, and
2) Reliability of financial records for preparing financial statements and maintaining
accountability for assets.
The concept of reasonable assurance recognizes:
1) The cost of a control should not exceed the benefits likely to be derived, and
2) The valuation of costs and benefits requires estimates and judgments by management.
The system of internal control is subject to periodic evaluation by management and is also
considered by the independent auditors in connection with the annual audit of the Town's financial
statements. All internal control evaluations occur within the above framework. The Town's internal
accounting controls are considered to adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Budgetary Controls. The budget process is a cyclical process and begins each year with the
preparation of the base budget by each department head. Each budget is based on expenditures to
date and the previous years' experience. The departments' base budgets, along with any requests
for new positions, programs or services are reviewed by the Town Manager. The Town Manager
then meets with department heads to review their base budgets and requests for new services and/or
programs. Once management has reviewed the departments' requests, a tentative budget is
presented to the Town Council by the Town Manager.
The Town Council formally adopts the budget and appropriates funding for the General Fund,
Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Therefore, these funds
have appropriated budgets, and budget to actual information is presented. In April/May, the Town
Manager submits to the Town Council a proposed budget for the fiscal year commencing the
following July 1. The budget includes proposed expenditures and the means of financing them.
The Town Council is then required to hold public hearings on the proposed budget and to adopt a
final budget by June 30, the close of the Town of Fountain Hills' fiscal year. The budget is legally
enacted through passage of a resolution and is prepared by fund and department. The resolution
sets the limit for expenditures during the fiscal year. The Town Manager may authorize transfers
from and within personnel and from operating capital to services or supplies within a department.
Page 4
Additional expenditures may be authorized for expenditures directly necessitated by a natural or
man-made disaster as prescribed in the State Constitution, Article IX, Section 20.
The Town is subject to the State of Arizona's Expenditure Limitation Law for Towns and Cities.
This law does not permit the Town to spend more than budgeted revenues plus the carry-over of
unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the
combined funds. All appropriations lapse at year-end.
To ensure compliance with the state imposed expenditure limitation, a uniform expenditure report
must be filed with the state each year. This report reconciles total Town expenditures from the
audited financial statements to total expenditures for reporting in accordance with the state's
uniform expenditure reporting system (ARS Section 41-1279.07). Public hearings on the budget
are held each year in accordance with legal requirements in order to obtain comments from local
taxpayers.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within the department. Transfers of appropriations between
departments, however, require Town Council approval. Budget -to -actual comparisons are
provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. Budget -to -actual comparisons for the General Fund and Major Special
Revenue Funds are presented in the Required Supplementary Information and all other funds are
presented in Combining and Individual Fund Financial Statements and Schedules.
Local Economy. The Town of Fountain Hills, Arizona, continues to face many issues during these
slow growth economic times. Its citizens, governing body, and municipal government are
committed to finding solutions for each of the issues. In order to address these issues, the Town
has proposed a baseline budget requiring any new positions to be deemed mission critical. All
vacancies will be evaluated to assess the need for replacement, elimination or modification to the
job description. The Town will be closely monitoring its revenue sources and make adjustments
accordingly.
The Great Recession appears to be recovering modestly in Fountain Hills; this recovery is
indicated by the moderate increase of local sales tax receipts. Construction activity has increased
almost 50% from the prior year, due to several commercial and residential developments currently
in progress. The following chart is a look at the past five years' significant local sales tax activity
by sector:
Page 5
Fountain IM 2A% Saks Tas Activily by Serer- FY13-141Yn FY17-18
$5.5
$4 5
KO
$3.5
o $3.0
$ $2.5 j
$2.0
$1.5
$1.0
SO.S
$0.0
Constlwlks Tlastnleleslntl Wboksslelltebil Restsmsb2ars
a FY13-14 MY 15 •FV &N =M&17 FYIt-IM
As can be seen in the chart, sales tax collections continue to show signs of moderate growth. Retail
sales experienced a 5.1 % increase over the prior year; restaurant/bar revenues have exceeded any
prior year and an increase of 2.2% from FYI 6-17. Construction sales tax, a one-time revenue
source, is driven entirely by development activity in the community and increased 92.9% from the
prior year; recent building permit activity indicates that construction sales tax is likely to increase
over the next years. Transportation/communication/utilities tax revenues also posted an increase
of 1.7%.
Construction activity provides revenue to the Town through local sales tax, the proceeds of which
are utilized for general operations and capital expenditures. Without the resources to fund capital
projects, the Town must find additional funds to pay for necessary infrastructure projects. For
operating costs, the Town is dependent upon State -shared revenues and local sales tax as a major
source of operating revenue, accounting for 84% of total General Fund revenue for fiscal year
2017-18.
State -shared revenues are derived as a proportionate share of state sales, income and vehicle
license taxes which are distributed based on the Town's population compared to all other
incorporated cities and towns in Arizona (currently 0.4%). State -shared income tax revenue
category is based on two years prior personal and corporate earnings; revenue from the State
income tax increased by 3.7% in FY17-18. After decreases in State sales tax from FY08-09
through FYI 1-12, this revenue increased by 7.3% in FY17-18 compared to the prior year.
Other local activity has remained fairly level during the period due to the lack of major retailers
(the Town has three grocery stores and one major retailer). Fountain Hills is past the historic period
of rapid growth and the long-term economic outlook for the Town must recognize this fact. The
opportunity to further expand the retail tax base in Fountain Hills is limited by the lack of available
commercial land — over 70% of the currently available commercial lots are already developed.
Page 6
Development Activity over the past year:
Development Services has been involved with the following development activities during fiscal
year 2017-18 (7/1/2017 — 6/30/2018):
Two Development Agreements were approved by Council:
Copperwynd
Adero Canyon Phase II/Eagle Nest
Eight Site Plans were approved during the period.
Two Special Use Permits were granted.
Six Administrative Use Permits were issued.
Fifty new Single -Family Residential Building Permits were issued.
Thirty-two Multi -family permits were issued.
There were three new Commercial Building Permits issued.
There were seventeen commercial tenant improvement permits issued during the last fiscal
year.
A summary of the activity, by month, is shown below:
Fiscal year
SFR
DUP/MULTI
T.I. &
Comm
Pools,
Fences
&
Other
Add
Ons
(Not
Garages
Garages
&
Carports
MONTH
TOTAL
Bldgs.
Total
Units
Permits
Issued
JULY
4
2
2
2
0
27
6
0
39
AUGUST
7
0
0
0
0
23
2
0
32
SEPTEMBER
1 5
2
2
2
1
18
3
2
31
OCTOBER
4
3
3
3
0
17
6
0
1 30
NOVEMBER
3
2
2
2
2
17
1
0
25
DECEMBER
4
2
2
2
1
28
4
1
40
JANUARY
7
2
2
2
2
23
6
0
40
FEBRUARY
0
0
0
0
5
32
0
0
37
MARCH
3
0
0
j 0
2
24
9
0
38
APRIL
5
11
12
11
3
41
5
0
65
MAY
6
4
4
4
1
29
2
1
43
JUNE
2
4
4
4
3
43
8
0
60
YEARLY
TOTAL
50
32
33
32
20
322
52
4
480
Page 7
Economic Outlook.
Retail Sales — Not having a property tax, the Town of Fountain Hills relies heavily on Town
transaction privilege tax (TPT), sometimes called a sales tax. Overall, Town TPT revenues provide
over 50% of the General Fund revenues. The Town's TPT rate is currently at 2.6%. The
construction TPT is equally divided between the General Fund and the Capital Projects Fund.
State -Shared Revenues — The Town of Fountain Hills receives significant revenue allocations
from the State. These "State -Shared Revenues" include allocations of the state -collected income
tax, sales tax, fuel tax and motor vehicle -in -lieu taxes. All but the fuel tax and the vehicle license
tax are placed in the Town's General Fund, where it is used to sustain a large portion of the Town's
day-to-day activities. These revenue sources have improved recently with the economy showing
signs of recovery.
Highway User Revenue Fund (HURF) — The State -shared fuel tax, as it is often called, is placed
in this fund to be used specifically for street maintenance and related activity. Although the State -
shared revenue formula generally allocate revenues based on official census data, in recent years,
the state legislature has reduced the formula distribution of State -shared revenues to cities.
Lon¢ -term Financial Planning. Fountain Hills' Financial Policies are balanced on sound
financial reserves and conservative revenue growth forecasts for the foreseeable future. Potential
for State legislative impacts to revenue -sharing or local revenues and additional demands for
essential Town services remain. The Town's Financial Policies set forth guidelines against which
current budgetary performance can be measured and proposals for future programs can be
evaluated.
The Town's Financial Policies have helped weather the slow economic recovery. This policy
continues to require the Town to internally restrict an amount equal to 20% of the average actual
General Fund revenues for the preceding five fiscal years as part of its General Fund balance. This
amount is estimated to be about 60 days of expenditures coverage and is considered a "Rainy Day"
fund.
Additionally, a reserve of 10% of the average actual General Fund revenues for the preceding five
fiscal years is set aside for "pay-as-you-go" capital replacement expenditures, vehicle or
equipment replacement, capital projects, prepaying or defeasing existing Town debt, or any other
expenditure that is non -recurring in nature.
The Council also adopted Financial Policies that include guidelines for the issuance of debt for
capital expenditures, community facility districts, financing alternatives, expenditure controls and
financial planning. The policy was amended during FY 09-10 to reduce the allocation of the local
construction sales tax to the Capital Projects Fund from 85% to 50%, reflecting the transition from
one-time building activity to ongoing redevelopment activity. The debt policy was prepared with
a preference for "pay-as-you-go" financing for capital spending, however, the policy did not
anticipate the lack of funding for capital projects and bond funding needs to be reconsidered.
Page 8
In early 2009, the Strategic Planning Advisory Commission (SPAC) began the process of
gathering public input to update the Strategic Plan's vision, confirm residents' values, and create
a fresh structure for the Strategic Plan revision. Subsequently, Strategic Plan 2010 was built upon
the foundation of a clearly defined vision statement and eight key values, with specific indicators
to evaluate Council and staff priorities. In 2017, SPAC again updated the Strategic Plan. Based on
citizen input, the newest Strategic Plan is designed to guide our future decisions grounded on these
common values:
1. Economic Growth
2. Infrastructure Maintenance
3. Demographic Balance
4. Financial Stability and Sustainability
5. Community and Quality of Life
These values guide the Town's annual budget process.
The Mayor and Council on January 30, 2018, approved a resolution to refer a $7.0 million property
tax question to voters on May 15, 2018. The ballot referendum failed which will require the Town
Council to adopt other revenues and possible service level reductions to ensure that future budgets
are balanced.
MAJOR INITIATIVES AND SERVICE EFFORTS AND ACCOMPLISHMENTS
The Town of Fountain Hills' adopted FY17-18 budget reflected the continued slow recovery in
the local economy, which is also somewhat mirrored at the national and state levels. Due to the
challenging economic conditions, the Town had made significant reductions in staff and service
levels. This reduction was accomplished by a thorough assessment of all existing and proposed
programs and workload; as a result, Town staffing has been reduced from 115 to 56 FTE's (full
time equivalents) over the past years.
The Town Council established priorities in FY16-17 of which the top two are Economic
Development and Pavement Management. In order to implement the Pavement Management
program, the Council approved the use of Vehicle License Tax revenues to be dedicated to annual
pavement maintenance with an effective date of July 1, 2013. Also, effective July 1, 2016, 0.2%
of local sales tax revenues that had been allocated to MPC debt service payments were reallocated
to pavement maintenance. Economic Development initiatives are funded through a dedicated
portion of the local sales tax which provides funding for business attraction, retention and
expansion.
Page 9
For the Year. The following list depicts the continued commitment of the Town of Fountain Hills
to make the community a better place to live. Fiscal year 2017-18 goals attained are summarized
within this list of accomplishments:
• Continuation of Fire Station 2 relocation design and construction
• Initiation of design and construction of the Valley Metro Bus Stop
• Construction of the Adem Canyon Trailhead
• Added several new monthly and special educational programs, workshops and support
groups at the Community Center
• New public art installed: Mirth & Melancholy, Orange Sellers, Alignment, and
Southwest Landscape
• Awarded Playful City USA for 7th time
• Secured grant funding from the Arizona Office of Tourism - Proposition 302
• Secured grant funding from Salt River Pima-Maricopa Indian Community - Proposition
202
• Awarded the 2017 Governor's Tourism Award for Outstanding Marketing Campaign
• Named World's 17' International Dark Skies Community, 13' in the United States and
3' in Arizona
• Donation of the 1998 Fire Department's aerial ladder truck to the Helping Hands
Program in Texas
AWARDS AND ACKNOWLEDGEMENTS
Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Town of Fountain Hills for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2017. This
was the twenty-second consecutive year that the Town has received this prestigious award. In order
to be awarded a Certificate of Achievement, the Town published an easily readable and efficiently
organized CAFR. This report satisfied both accounting principles generally accepted in the United
States of America (GAAP) and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement program's requirements and we are
submitting it to the GFOA to determine its eligibility for the fiscal year ended 2018 Certificate.
For the sixth year, the Town was also given the Award for Outstanding Achievement in Popular
Annual Financial Reporting for the fiscal year ended June 30, 2017.
In addition, the government received the GFOA's Distinguished Budget Presentation Award for
its annual budget for the fiscal year beginning July 1, 2017. In order to qualify for the Distinguished
Budget Presentation Award, the government's budget document was judged to be proficient in
several categories, including as a policy document, a financial plan, an operations guide, and a
communications device. This is the sixteenth consecutive year that the Town has received the
award.
Page 10
Acknowledgments. The preparation of this Comprehensive Annual Financial Report could not have
been accomplished without the efficient and dedicated services of the entire team of the Finance
Division. I also wish to extend my appreciation to the Mayor and members of Town Council for their
leadership and support in planning and conducting the financial affairs of the Town in a responsible
and progressive manner. Each employee of the Town has my sincere appreciation for the contributions
made in the preparation of this report.
Respectfully submitted,
Grady E. Miller
Town Manager
Page 11
TOWN OF FOUNTAIN HILLS, ARIZONA
LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2018
ELECTED OFFICIALS
Linda M. Kavanagh, Mayor
Dennis Brown, Vice -Mayor
Nick DePorter, Councilmember
Henry Leger, Councilmember
Alan Magazine, Councilmember
Art Tolis, Councilmember
Vacant, Councilmember
DEPARTMENT DIRECTORS
Grady Miller, Town Manager
Craig Rudolphy, Finance Director
David Trimble, Administrative Services Director
Rachael Goodwin, Community Services Director
Robert Rogers, Development Services Director
Scott Cooper, Economic Development Director
Justin Weldy, Public Works Director
Elizabeth Burke, Town Clerk
Captain Dave Ott, Rural Metro Corporation, Fire Chief
Captain Hank Brandimarte, Maricopa County Sheriffs Office, District Commander
Robert Melton, Presiding Judge
Mark Iacovino, The Law Office of Mark Iacovino, Town Prosecutor
Mitesh Patel, Dickinson Wright PLLC, Interim Town Attorney
Page 12
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Fountain Hills
Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2017
Executive Director/CEO
Page 13
Presiding Judge
Town Prosecutor
Citizens of Fountain Hills
Mayor and Town Council
Town Manager
Town Attorney
■ ServiCommunity . SDevelopment ■ ■ ■ Law
Fire /EMS ces ervices Public Works Administration Enforcement
Parks
Recreation /
Tourism
Community
Center
Senior
Services
Building Safety
Engineering
Finance / I. T.
Administrative
Code
Facilities
Services
Enforcement
Town Clerk
GIs
Inspection
Volunteer
Program
Appointed
Planning
Streets
Economic
by Council
Development
Contracted
Public
Information
FINANCIAL SECTION
Page 15
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Page 16
HeinfeltlMeech
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Tucson • Phoenix • Flagstaff
HeinfeldMeech.com
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and
the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of and for the year
ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Town's
basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information
of the Town of Fountain Hills, Arizona, as of June 30, 2018, and the respective changes in financial position
thereof for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Page 17
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and budgetary comparison information, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town's basic financial statements. The Introductory Section, Combining and Individual Fund
Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is fairly stated in
all material respects in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditine Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 4, 2018, on
our consideration of the Town of Fountain Hills, Arizona's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the Town's internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town of Fountain Hills,
Arizona's internal control over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
October 4, 2018
Page 18
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 19
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Page 20
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
As management of the Town of Fountain Hills, Arizona (Town), we offer readers of the Town's
financial statements this narrative overview and analysis of the financial activities of the Town
for the fiscal year ended June 30, 2018. This discussion and analysis is intended to be an easily
readable breakdown of the Town of Fountain Hills' financial activities based on currently known
facts, decisions and conditions. This analysis focuses on current year activities and operations and
should be read in combination with the transmittal letter and the financial statements that follow.
The management's discussion and analysis is presented as required supplementary information
to supplement the basic financial statements.
FINANCIAL HIGHLIGHTS
• The Town's total net position of governmental activities increased $652.1 thousand to $ 117.6
million, representing a .6 percent increase of the total net position.
• General revenues from governmental activities accounted for $19.6 million in revenue, or
81.8 percent of all revenues from governmental activities. Program specific revenues in the
form of charges for services and grants and contributions accounted for $4.4 million or 18.2
percent of total governmental activities revenues.
• The Town had $23.3 million in expenses related to governmental activities, a decrease of 1
percent from the prior fiscal year primarily due to decreased public works costs.
• Among major governmental funds, the General Fund had $16.0 million in current fiscal year
revenues, which primarily consisted of taxes and intergovernmental revenues. The total
expenditures of the General Fund were $15.0 million. The General Fund's fund balance
decreased $6.3 thousand to remain at $7.2 million at the end of the current fiscal year.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town's basic financial
statements. The Town's basic financial statements comprise three components: 1) government -
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Page 21
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED NNE 30, 2018
OVERVIEW OF FINANCIAL STATEMENTS — continued
Government -wide financial statements. The government -wide financial statements are designed
to provide readers with a broad overview of the Town's finances, in a manner similar to a private -
sector business. The accrual basis of accounting is used for the government -wide financial
statements.
The Statement of Net Position presents information on all of the Town's assets, liabilities, and
deferred inflows/outflows of resources with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating.
The Statement of Activities presents information showing how the Town's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g., earned but unused compensated absences).
The government -wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities). The governmental
activities of the Town include administration, development services, public safety, public works,
and culture and recreation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the Town are included in governmental funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near -term inflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the Town's near -teen financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-term impact of the Town's near -term
financing decision. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
Page 22
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
OVERVIEW OF FINANCIAL STATEMENTS — continued
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Highway User Revenue (HURF), Grants, Capital Projects and all Debt Service Funds, all
of which are considered to be major funds. Data from other governmental funds are combined into
a single, aggregated presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements and schedules.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government -wide and fund financial statements. The
notes to the financial statements can be found immediately following the basic financial
statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town's budget
process. The Town adopts an annual budget for all governmental funds. A schedule of revenues,
expenditures and changes in fund balances - budget and actual has been provided for the General
Fund and major Special Revenue Funds as required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
While this document contains information about the funds used by the Town to provide services
to our citizens, the Statement of Net Position and the Statement of Activities serve to provide an
answer to the question of how the Town, as a whole, did financially throughout the year. These
statements include all assets and liabilities using the accrual basis of accounting similar to the
accounting used by the private sector. The basis for this accounting takes into account all of the
current year's revenues and expenses regardless of when the cash is received or paid.
These two statements report the Town's assets and the changes in those assets. The change in
assets is important because it tells the reader whether the financial position of the Town as a whole
has improved or diminished. However, in evaluating the overall position of the Town, non-
financial information such as changes in the Town's tax base and the condition of the Town's
capital assets will also need to be evaluated.
Analysis of Net Position. Net position may serve over time as a useful indicator of a government's
financial position. In the case of the Town, governmental activities assets exceeded liabilities by
$117.6 million at the current fiscal year end.
Page 23
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
GOVERNMENT -WIDE FINANCIAL ANALYSIS — continued
The largest portion of the Town's governmental activities net position reflects its investment in
capital assets (e.g., land, infrastructure, buildings and improvements, vehicles, machinery and
equipment and construction in progress), less any related outstanding debt used to acquire those
assets. The Town uses these capital assets to provide services to its citizens; consequently, these
assets are not available for future spending. Although the Town's investment in its capital assets
is reported net of related outstanding debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities. In addition, a portion of the Town's net position represents resources
that are subject to external restrictions on how they may be used. The remaining balance is
unrestricted and may be used to meet the Town's ongoing obligations to its citizens and creditors.
The following tables present a summary of the Town's net position for the fiscal years ended
June 30, 2018 and June 30, 2017.
Governmental Activities
As of
As of
June 30, 2018
June 30, 2017
Current and other assets
$ 23,821,565
$ 24,037,642
Capital assets, net
102,259,689
103,179,955
Total assets
126,081,254
127,217,597
Current and other liabilities
5,475,597
4,588,747
Long-term liabilities
2,994,108
5,669,418
Total liabilities
8,469,705
10,258,165
Net position
Net investment in capital assets
96,777,854
94,909,703
Restricted
4,589,526
4,471,661
Unrestricted
16,244,169
17,578,068
Total net position
$ 117,611,549
$ 116,959,432
At the end of the current fiscal year the Town reported positive balances in all three categories of
net position for governmental activities. The Town also reported positive balances in all net
position categories in the prior fiscal year.
Page 24
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
GOVERNMENT -WIDE FINANCIAL ANALYSIS — continued
The Town's financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets.
Changes in net position. The Town's total revenues for the current fiscal year were $23.9 million.
The total cost of all programs and services was $23.3 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2018 and June 30, 2017.
Revenues
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
Sales taxes
Franchise taxes
State -shared revenue
Vehicle License taxes
Investment earnings
Miscellaneous
Total revenues
Expenses
General government
Development services
Public safety
Public works
Culture and recreation
Interest on long-term debt
Total expenses
Changes in net position
Net position, beginning
Net position, ending
Governmental Activities
Fiscal
Fiscal
Year Ended
Year Ended
June 30, 2018
June 30, 2017
$ 2,316,983
$ 2,664,463
1,737,958
1,699,931
304,951
494,328
2,263,623
10,311,577
421,682
5,384,831
1,011,836
158,860
10,410
23,922,711
3,431,752
1,460,967
7,567,012
7,390,663
3,311,648
118,552
23,270,594
652,117
116,959,432
$ 117,611,549
2,296,199
9,415,151
367,119
5,115,914
941,364
55,127
28,839
23,078,435
3,142,722
1,364,378
7,563,898
7,904,577
3,375,414
178,749
23,529,738
(451,303)
117,410,735
$ 116,959,432
Page 25
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
GOVERNMENT -WIDE FINANCIAL ANALYSIS — continued
Governmental Activities Revenues
Fiscal Year 2017-18
Franchise taxes
salestaxes
2%
94% l
Property taxes) State Shared revenue
9% 23%
Capital9%grants and Vehicle License taxes
contributioRIM
ns 4%
1% Operating grants and Investment earnings
contributions Charges for setvkes 1%
7% 10%
The charts below compare the governmental ex enses trom fiscal years 2017-18 and 2016-17.
Flsul Year 2017-28 Expenses Fmid Year 2016-17 Expenses
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Page 26
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
GOVERNMENT -WIDE FINANCIAL ANALYSIS — continued
The following items are significant current year transactions that have had an impact on the change
of net position.
• Fees, Fines and Charges for Services revenue decreased 13.0 percent compared to the prior
year due in large part to the absence of in -lieu fees for encroachment permits.
• Interest on long-term debt decreased 33.7 percent due to lower rates on the reissued bonds.
• Public safety costs include contracts for police and fire; one contract is multi -year with
automatic increases while the other is a cost reimbursement contract.
• Investment income increased in the current year 188.2 percent over the prior year due to
higher overall market returns.
• Overall, expenses decreased 1.1 percent due primarily to cautious spending by the
departments and staffing efficiencies.
The following table presents the cost of the Town's major functional activities. The table also
shows each function's net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden
that was placed on the Town's taxpayers by each of these functions.
Year Ended June 30, 2018 Year Ended June 30, 2017
Total Net (Expense)/ Total Net (Expense)/
Expenses Revenue Expenses Revenue
Governmental Activities
General government $ 3,431,752 $ (2,978,065) $ 3,142,722 $ (2,506,081)
Development services 1,460,967 (146,052) 1,364,378 (298,295)
Public safety 7,567,012 (7,266,692) 7,563,898 (7,186,135)
Public works 7,380,663 (5,725,133) 7,904,577 (6,148,913)
Culture and recreation 3,311,648 (2,676,208) 3,375,414 (2,352,843)
Interest on long-term debt 118,552 (118,552) 178,749 (178,749)
Total expenses $23,270,594 $(18,910,702) $23,529,738 $(18,671,016)
• The cost of all governmental activities this year was $23.3 million.
• Federal, State, and county governments and charges for services subsidized certain
governmental programs with charges for services of $4.4 million.
• Net cost of governmental activities of $18.9 million was financed by general revenues,
which are made up of primarily sales taxes of $10.3 million and State -shared revenues of
$6.4 million.
Page 27
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds. The focus of the Town's governmental funds is to provide information on
near -term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town's financing requirements. In particular, unassigned fund balance may serve as
a useful measure of the Town's net resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds. As the
Town completed the year, its governmental funds reported a decrease of $639,708 in the combined
fund balance from $22.0 million to $21.3 million.
The General Fund comprises 33.6 percent of the total fund balance. Approximately $2.1 million
or 29.9 percent of the General Fund's fund balance is unassigned.
The General Fund is the principal operating fund of the Town. The fund balance decreased by
$6,349 to remain at $7.2 million as of fiscal year end. General Fund revenues increased $1.0
million primarily due to increased sales tax and State -shared revenues. General Fund expenditures
increased $1.1 million. The majority of the increase was a result of purchase of a new fire truck.
The Highway User Revenue Fund comprises 15.9 percent of total fund balance. The fund balance
increased $1.1 million from the prior year as a result of the postponement of some pavement
maintenance due to results of a pavement management analysis and the re-evaluation of the current
process.
The Capital Projects Fund comprises 33.6 percent of the total fund balance. All of the fund balance
is committed or assigned to capital projects. The fund balance decreased $988,023 million due to
the ongoing capital projects during the fiscal year.
BUDGETARY HIGHLIGHTS
Over the course of the year, the Town revised the General Fund annual expenditure budget
primarily due to changes in the contingency amount. The difference between the original budget
and the final amended budget was an $814,378 decrease, or 4.5 percent.
Page 28
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
BUDGETARY HIGHLIGHTS — continued
A schedule showing the budget amounts compared to the Town's actual financial activity for the
General Fund is provided in this report as required supplementary information. The significant
variances are summarized as follows:
• The favorable variance of $1.0 million in overall revenues is primarily due to increased
licenses and permit fees, sales taxes resulting from building activity and State -shared
revenues.
The favorable total expenditures variance of $2.3 million is due primarily to cautious
spending and staffing efficiencies by all departments and by not utilizing third party
contracts for inspection services as originally anticipated.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of the end of the current fiscal year, the Town had invested $102.3 million in
governmental capital assets, including buildings, facilities, vehicles, computers, equipment,
infrastructure assets and artwork. This amount represents a net increase prior to depreciation of
$3.9 million from the prior fiscal year for governmental activities. The increase was primarily due
to building and park improvements and purchase of equipment. Total depreciation expense for the
current fiscal year was $5.2 million for governmental activities.
The following schedule presents a summary of capital asset balances for the fiscal years ended
June 30, 2018 and June 30, 2017.
Capital assets — non -depreciable
Capital assets — depreciable, net
Total
Governmental Activities
As of As of
June 30, 2018 June 30, 2017
$ 30,157,640 $ 27,134,114
72,102,049 76,045,841
$102,259,689 $103,179,955
The estimated construction commitments amount is $3,543,200.
Additional information on the Town's capital assets can be found in Note 5.
Debt Administration. At year-end, the Town had $5.5 million in governmental long-term debt
outstanding with $2.8 million due within one year. Long-term debt decreased by $2.6 million for
governmental activities.
Page 29
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED NNE 30, 2018
CAPITAL ASSETS AND DEBT ADMINISTRATION — continued
State statutes currently limit the amount of general obligation debt a Town may issue to a
percentage of its total assessed valuation for water, sewer, artificial lighting, parks, open space,
recreational facility improvements, public safety, law enforcement, fire and emergency facilities
and street and transportation facilities. The current 20 percent debt limitation for the Town is
$104.9 million. State statutes also currently limit the amount of general obligation debt a Town
may issue to a percentage of its total assessed valuation for all other purposes. The current six
percent debt limitation for the Town is $31.5 million.
Additional information on the Town's long-term debt can be found in Notes 6 and 7 in the notes
to the financial statements.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the Town's finances and to demonstrate the Town's
accountability for the resources it receives. If you have questions about this report or need
additional information, contact the Finance Division, Town of Fountain Hills, 16705 East Avenue
of the Fountains, Fountain Hills, Arizona 85268 or visit our website at: www.fh.az.eov.
Page 30
BASIC FINANCIAL STATEMENTS
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Page 32
GOVERNMENT -WIDE FINANCIAL STATEMENTS
Page 33
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2018
ASSETS
Current assets:
Cash and investments
Accounts receivable
Intergovernmental receivable
Taxes receivable
Interest receivable
Inventory, at cost
Prepaid items
Total current assets
Noncurrent assets:
Capital assets not being depreciated
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Retainage payable
Accrued wages and benefits
Other liabilities
Customer deposits
Compensated absences payable
Revenue bonds payable
General obligation bonds payable
Unearned revenues
Total current liabilities
Noncurrent liabilities:
Non -current portion of long-term liabilities
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Restricted for:
Streets and highways
Capital outlay
Debt service
Unrestricted
Total net position
Governmental
Activities
$ 22,823,317
168,786
691,402
50,230
52,395
13,490
21,945
23,821,565
30,157,640
72,102,049
102,259,689
126,081,254
1,673,496
284,083
114,051
28,231
105,128
373,187
370,000
2,265,000
262,421
5,475,597
2,994,108
2,994,108
8,469,705
96,777,854
3,049,766
1,451,059
88,701
16,244,169
$ 117.611,549
The notes to the basic financial statements are an integral part of this statement.
Page 34
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Net (Expense)
Revenue and
Changes in Net
Program Revenues Position
Operating Capital Grants
Charges for Grants and and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Governmental activities:
General government
$ 3,431,752 $
295,716 $
56,025 $
101,946 $ (2,978,065)
Development services
1,460,967
1,314,915
(146,052)
Public safety
7,567,012
155,973
45,447
98,900 (7,266,692)
Public works
7,380,663
52,465
1,593,514
9,551 (5,725,133)
Culture and recreation
3,311,648
497,914
42,972
94,554 (2,676,208)
Interest on long-term debt
118,552
(118,552)
Total governmental activities
$ 23,270,594 $
2,316,983 $
1,737,958 $
304,951 (18,910,702)
General revenues:
Taxes:
Property taxes
2,263,623
Sales taxes
10,311,578
Franchise taxes
421,682
State sales & income tax revenue sharing - unrestricted
5,384,831
Vehicle license tax revenue sharing - unrestricted
1,011,836
Investment earnings
158,860
Miscellaneous
10,409
Total general revenues
19,562,819
Changes in net position 652,117
Net position, beginning of year 116,959,432
Net position, end of year $ 117,611,549
The notes to the basic financial statements are an integral part of this statement.
Page 35
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Page 36
FUND FINANCIAL STATEMENTS
Page 37
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET- GOVERNMENTAL FUNDS
NNE 30, 2018
Highway User
ASSETS
General
Revenue Grants
Cash and investments
$ 6,942,070
$ 3,781,637 $ 296,474
Accounts receivable
163,026
5,760
Intergovernmental receivable
460,620
213,872
Taxes receivable
Interest receivable
22,254
Due from other funds
Inventory, at cost
13,490
Prepaid items
21,945
Total assets
$ 7,623,405
$ 4,001,269 $ 296,474
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCE
Liabilities:
Accounts payable
$ 196,526 $
605,219 $ 65,949
Retainage payable
Accrued wages and benefits
103,343
7,027
Other liabilities
10,888
345
Customer deposits
105,128
Unearned revenues
31,896
230,525
Due to other funds
568
Total liabilities
449,349
612,591 296,474
Deferred inflows of resources:
Unavailable revenues - property taxes
Unavailable revenues - other
3,763
5,760
Total deferred inflows of resources
3,763
5,760
Fund balances
Nonspendable 35,435
Restricted 3,044,006
Committed 2,893,850
Assigned 2,101,574 338,912
Unassigned 2,140,434
Total fund balances 7,171,293 3,382,918
Total liabilities, deferred inflows of resources
and fund balances $ 7,623,405 $ 4,001,269 $ 296,474
The notes to the basic financial statements are an integral part of this statement.
Page 38
Municipal
General
Property
Non -Major
Total
Obligation Debt
Eagle Mountain
Corporation Debt
Governmental
Governmental
Service
Debt Service
Service
Capital Projects
Funds
Funds
$ 25,400
$ 7,634
$ 5,516
$ 8,207,746
$ 3,556,840
$ 22,823,317
168,786
16,910
691,402
44,072
6,079
79
50,230
22,164
7,977
52,395
568
568
13,490
21,945
$ 69,472
$ 13,713
$ 5,516
$ 8,229,910
$ 3,582,374
$ 23,822,133
$ $ $ $ 770,023 $ 35,779 $ 1,673,496
284,083 284,083
3,681 114,051
16,998 28,231
105,128
262,421
568
1,071,104 39,460 2,467,978
11,190 1,313 12,503
9,523
11,190 1,313 22,026
35,435
58,282 12,400 5,516 1,451,059 4,571,263
5,780,363 1,468,527 10,142,740
1,378,443 623,328 4,442,257
2,140,434
58,282 12,400 5,516 7,158,806 3,542,914 21,332,129
$ 69,472 $ 13,713 $ 5,516 $ 8,229,910 $ 3,582,374 $ 23,822,133
Page 39
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Page 40
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Total governmental fund balances
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Governmental capital assets
Less accumulated depreciation
Some receivables are not available to pay for current period
expenditures and, therefore, are reported as deferred inflows
of resources in the funds.
Property taxes
Other
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the funds.
Compensated absences payable
Bonds payable
Net position of governmental activities
21,332,129
$ 215,630,172
(113,370,483) 102,259,689
12,503
9,523 22,026
(520,460)
(5,481,835) (6,002,295)
The notes to the basic financial statements are an integral part of this statement.
$ 117,611,549
Page 41
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDPFURES AND CHANGES IN FUND BALANCES -
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2018
Highway User
General
Revenue
Revenues:
Property taxes
$
$
Sales taxes
8,417,615
793,198
Franchise taxes
421,682
Licenses and permits
930,768
Leases and rents
282,531
Intergovernmental
5,430,178
2,605,350
Charges for services
233,947
20,175
Other
94,772
2,148
Fines and forfeitures
153,736
Investment earnings
40,940
39,992
Total revenues
16,006,169
3,460,863
Expenditures:
Current -
General government
2,892,222
Development services
866,594
Public safety
7,402,227
Public works
638,111
2,555,562
Culture and recreation
2,168,710
Capital outlay
1,025,632
24,935
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
14,993,496
2,580,497
Excess (deficiency) of revenues over expenditures
1,012,673
880,366
Other financing sources (uses):
Transfer in
1,036,553
200,000
Transfer out
(2,055,575)
Total other financing sources (uses)
(1,019,022)
200,000
Changes in fund balances
(6,349)
1,080,366
Fund balances, beginning of year
7,177,642
2,302,552
Fund balances, end of year
$ 7,171,293
$ 3,382,918
The notes to the basic financial statements are an integral part of this statement.
Grants
157,946
157,946
56,000
101,946
157,946
Page 42
Municipal
General Property Non -Major
Obligation Debt Eagle Mountain Corporation Debt Governmental
Service Debt Service Service Capital Projects Funds
$ 1,909,924 $ 370,686 $ $ $ 5,471
704,166 396,599
109,451
8,494 2,115 3,811 39,831
1,918,418 372,801 3,811 852,448
2,791
221,948
3,164,701
1,980,000 380,000 360,000
140,950 27,528 16,686
600 195 1,010
2,121,550 407,723 377,696 3,389,440
(203,132) (34,922) (373,885) (2,536,992)
209,838 2,748,969
(1,200,000)
209,838 1,548,969
(203,132) (34,922) (164,047) (988,023)
261,414 47,322 169,563 8,146,829
$ 58,282 $ 12,400 $ 5,516 $ 7,158,806
1,073,618
72,554
2,326
29,261
23,677
1,603,506
244,923
530,655
4,696
207,048
987,322
616,184
348,368
(1,288,153)
(939,785)
(323,601)
3,866,515
$ 3,542,914
Total
Governmental
Funds
$ 2,286,081
10,311,578
421,682
2,004,386
282,531
8,266,028
254,122
207,697
182,997
158,860
24,375,962
3,195,936
1,397,249
7,402,227
3,420,317
2,375,758
4,317,214
2,720,000
185,164
1,805
25,015,670
(639,708)
4,543,728
(4,543,728)
(639,708)
21,971,837
$ 21,332,129
Page 43
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Changes in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report the portion of capital outlay for capitalized assets as expenditures.
However, in the Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capitalized assets
Less current year depreciation
Donated items are not reported in the governmental funds. However, in the Statement
of Activities, the costs of those assets are reported as capital grants and contributions.
Some revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes
Other
Repayments of bond principal are expenditures in the governmental
funds, but the repayment reduces long-term liabilities in the Statement of
Net Position.
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
govermnental funds.
Amortization of deferred bond items
Compensated absences
Changes in net position in governmental activities
S (639,708)
$ 4,293,214
(5,235A80) (942,266)
The notes to the basic financial statements are an integral part of this statement.
22,000
(22,458)
(452,793) (475,251)
2,720.000
68,417
(101,075) (32,658)
S 652,117
Page 44
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared
in conformity with accounting principles generally accepted in the United States of America
as applied to government units. The Governmental Accounting Standards Board (GASB) is
the accepted standard -setting body for establishing governmental accounting and financial
reporting principles.
The more significant of the Town's accounting policies are described below.
A. Reporting Entity
The Town's major operations include development services, culture and recreation, public
works, public safety and general administrative services.
The Town is a municipal corporation governed by an elected Mayor and Council. The financial
reporting entity consists of a primary government and its component units. A component unit
is a legally separate entity that must be included in the reporting entity in conformity with
generally accepted accounting principles. The Town is a primary government that has a
separately elected governing body, is legally separate, and is fiscally independent of other state
or local governments. Furthermore, the component units combined with the Town for financial
statement presentation purposes and the Town are not included in any other governmental
reporting entity. Consequently, the Town's financial statements include only the funds of those
organizational entities for which its elected governing body is financially accountable.
Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. As
special purpose districts and separate political subdivisions under the Arizona Constitution, the
Districts can levy taxes and issue bonds independently of the Town. Property owners in the
designated areas are assessed taxes for the costs of operating the Districts. The Town Council
serves as the Board of Directors; however, the Town has no liability for the Districts' debt, the
Districts are responsible for the debt; the debt is therefore not subject to the Town's debt limit.
The Districts cannot be part of another reporting entity. The Districts' governing bodies are
substantially the same as the Town and the Town's management oversees operations, resulting
in the Town having the ability to exercise control. As a result, for financial reporting purposes,
transactions of the Districts are combined together and included as if they were part of the
Town's operations.
Page 45
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain
Hills, Arizona Municipal Property Corporation's (MPC) Board of Directors consists of three
members which are appointed by the Fountain Hills Town Council. The MPC, which is a
nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the
sole purpose of assisting the Town in obtaining financing for various projects of the Town.
The Town has a "moral obligation" for the repayment of the MPC's bonds. The MPC cannot
be part of another reporting entity. The MPC provides services exclusively to the Town. As a
result, for financial reporting purposes, transactions of the MPC are combined together and
included as if they were part of the Town's operations.
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement
of activities) present financial information about the Town as a whole. The reported
information includes all of the Town's component units. For the most part, the effect of internal
activity has been removed from these statements. Interfund services provided and used, such
as interfund transfers, are not eliminated in the process of consolidation. Governmental
activities normally are supported by taxes and intergovernmental revenues. The Town does not
have any fiduciary or business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes, unrestricted state shared revenues, investment income and other items not included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for the governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
Page 46
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government -wide Financial Statements — The government -wide financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. As a general rule, the effect of internal activity has been eliminated from the government -
wide financial statements; however, the effects of interfund services provided and used
between functions are reported as expenses and program revenues at amounts approximating
their external exchange value.
Fund Financial Statements — Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences,
and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, state shared revenues, licenses and permits, charges
for services, and investment earnings associated with the current fiscal period are all
considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not
susceptible to accrual because generally they are not measurable until received in cash.
Unearned revenues arise when resources are received by the Town before it has legal claim to
them, as when grant monies are received prior to meeting all eligibility requirements imposed
by the provider.
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column.
The Town reports the following major governmental funds
General Fund — The General Fund is the Town's primary operating fund. This fund
accounts for all financial resources of the Town, except those required to be accounted for
in other funds.
Highway User Revenue Fund (HURF) — This fund accounts for the Town's share of motor
vehicle fuel tax revenues and sales tax.
Page 47
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Grants Fund — This fund accounts for the activities of various restricted grants and
contributions received by the Town.
General Obligation Debt Service Fund — This fund accounts for the Town's property tax
revenues received to pay the debt service of the Town's general obligation bonds.
Municipal Property Corporation Debt Service Fund — This fund accounts for the revenues
received to pay the debt service on MPC revenue bonds.
Eagle Mountain Debt Service Fund — This fund accounts for the property tax revenues
restricted to pay the debt service of the Eagle Mountain Community Facilities District.
Capital Projects Fund — This fund accounts for the capital improvements to various projects
and equipment purchases of the Town.
D. Cash and Investments
Cash and cash equivalents at year end were cash on hand, cash in bank, restricted cash, and
cash and investments held by the State Treasurer.
Cash and investments are pooled, except for investments that are restricted under provisions
of bond indentures or other restrictions that are required to be reported in the individual funds.
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer's
local government investment pools, the County Treasurer's investment pool, obligations of the
U.S. Government and its agencies, obligations of the state and certain local government
subdivisions, interest -bearing savings accounts and certificates of deposit, collateralized
repurchase agreements, certain obligations of U.S. corporations, and certain other securities.
Investments are stated at fair value.
Arizona statute requires a pooled collateral program for public deposits and a Statewide
Collateral Pool Administrator (Administrator) in the State Treasurer's Office. The purpose of
the pooled collateral program is to ensure that governmental entities' public deposits placed in
participating depositories are secured with collateral of 102 percent of the public deposits, less
any applicable deposit insurance. An eligible depository may not retain or accept any public
deposit unless it has deposited the required collateral with a qualified escrow agent or the
Administrator. The Administrator manages the pooled collateral program, including reporting
on each depository's compliance with the program.
Page 48
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
E. Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments. Investment earnings is a component of revenue in the governmental
funds financial statements.
F. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding
at the end of the fiscal year is referred to as either "due to/from other funds" (i.e., the current
portion of interfund loans) or "advances to/from other funds" (i.e., the non -current portion of
interfund loans). Interfund balances between governmental funds are eliminated on the
statement of net position.
Property taxes are levied by the Town and collected by the Maricopa County Treasurer.
Property taxes are levied no later than the third Monday in August and are payable in two
installments due October 1 of the current year and March 1 of the subsequent year. Taxes
become delinquent after the first business day of November and May, respectively. Interest
attaches on installments after the delinquency date.
All receivables are shown net of an allowance for uncollectibles
G. Inventory
All inventories are valued at average cost using the first-in/first-out (FIFO) method.
Inventories consist of expendable supplies held for consumption. Inventories are recorded as
expenses when consumed in the government -wide financial statements, and as expenditures
when consumed in the governmental funds.
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government -wide and fund financial statements. In the
government -wide and fund financial statements, prepaids are recognized as
expenses/expenditures when goods and/or services are received rather than when purchased.
Page 49
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
I. Capital Assets
Capital assets, which include land and improvements, artwork, buildings and improvements,
vehicles, machinery, and equipment, construction in progress, and infrastructure assets, are
reported in the government -wide financial statements.
Capital assets are defined by the Town as assets with an initial, individual cost in excess of
$10,000 and an estimated useful life in excess of one year. Capital assets are recorded at
historical cost, if purchased or constructed. Donated capital assets are recorded at the
acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the assets or
materially extend the life of the asset are not capitalized.
Capital assets of the Town are depreciated using the straight-line method over the following
estimated useful lives:
Buildings and building improvements 20 - 50 years
Improvements other than buildings 20 years
Infrastructure 15 - 50 years
Vehicles, machinery and equipment 5 - 20 years
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position may report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period and so
will not be recognized as an outflow of resources (expense/expenditure) until then. The Town
did not have any items that qualified for reporting in this category.
In addition to liabilities, the statement of financial position may report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will
not be recognized as an inflow of resources (revenue) until that time.
Page 50
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
K. Compensated Absences
The Town's employee vacation and sick leave policies generally provide for granting vacation
and sick leave with pay. Sick leave and vacation benefits accrue as pay periods are completed
at the current rate of pay.
All eligible full-time and part-time regularly -scheduled employees can accrue vacation leave.
Employees accrue up to a maximum of two times the yearly maximum accrual of vacation
through carryover of balances. In the event of termination, employees will be paid for any
accrued, but unused, vacation hours. Full-time and part-time regularly -scheduled employees
accrue sick leave, up to a maximum of 1040 hours. Part-time non -regularly -scheduled,
temporary, or seasonal, and other employees accrue paid sick time for hours worked, not to
exceed 40 hours per calendar year.
The current and long-term liabilities, including related benefits, for accumulated vacation and
sick leave are reported on the government -wide financial statements. A liability for these
amounts is reported in governmental funds only if they have matured, for example, as a result
of employee termination, resignations and retirements. Generally, resources from the General
Fund are used to pay for compensated absences.
L. Long-term Obligations
In the government -wide financial statements, long-term debt and other long-term obligations
are reported as liabilities on the statement of net position. Bond premiums and discounts are
amortized over the life of the bonds using the straight-line method. Deferred amounts on
refunding result from the difference between the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
M. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
statement of activities. Interfund transfers in the fund financial statements are reported as other
financing sources/uses in governmental funds.
Page 51
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
N. Net Position Flow Assumption
In the government -wide financial statements the Town applies restricted resources first when
outlays are incurred for purposes for which either restricted or unrestricted amounts are
available.
O. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
NOTE 2 — FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned
fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot
be spent because they are not in spendable form, or legally or contractually required to be
maintained intact.
Restricted. Fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions or enabling legislation.
Committed. The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by formal action of the Town Council, the Town's highest
level of decision making authority, by resolution or ordinance. Those committed amounts
cannot be used for any other purpose unless the Town Council removes or changes the
specified use by taking the same type of action it employed to previously commit those
amounts.
Page 52
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
NNE 30, 2018
NOTE 2 — FUND BALANCE CLASSIFICATIONS
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
Town for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the General Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Town Council or a management
official delegated that authority by formal Town Council action. The authority to make
assignments has been delegated by the Town Council to the Finance Director.
Unassigned Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed, or
assigned.
The Town applies restricted resources first when outlays are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
The Town has established a fund balance policy which states that the combined General Fund
operating fund balance should be at least 30 percent of the average actual General Fund
revenues for the preceding five fiscal years.
The Town has established a stabilization fund (Rainy Day fund) in the Town's fund balance
policy. The Rainy Day fund had a balance of $2,807,648, reported as a committed fund balance
at June 30, 2018. The Rainy Day fund may only be used for the following: 1) to replace the
loss of more than 25 percent of the Town's local share of state shared revenues, 2) for any
event that threatens the health, safety or welfare of the Town's citizens, 3) for any event that
threatens the fiscal stability of the Town, and lastly 4) to address any matter declared as an
emergency by the governor of the State of Arizona or the Mayor of the Town. All withdrawals
from the Rainy Day fund shall be subject to the following rules: 1) any appropriation shall
require the approval by at least 2/3 vote by the Town Council, and 2) the maximum amount of
Rainy Day withdrawal in any fiscal year shall not exceed one-half of the total balance in the
fund. Replenishment of the Rainy Day fund when spent by the Town should not exceed a
period of more than five years, and should be repaid in annual installments of not less than one
percent of the previous fiscal year General Fund balance. Repayments shall be appropriated as
part of the annual budget adoption.
Page 53
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 2 — FUND BALANCE CLASSIFICATIONS
The table below provides detail of the major components of the Town's fend balance
classifications at year end.
Fund Balances:
Nonspendable:
Inventory
Prepaid items
Restricted:
Capital Projects
Debt Service
Highways and Streets
Development Fees
Committed:
Rainy Day
Public Art
Downtown Strategy
Economic Development
Tourism
Capital Projects
Local Court Enhancement
Assigned:
Capital Projects
Environmental
Vehicle Replacement
Equipment Replacement
Unassigned:
Total fund balances
General Eagle Municipal
Highway Obligation Mountain Property
User Debt Debt Corporation Capital Non -Major
General Revenue Service Service Debt Service Projects Governmental
Fund Fund Fund Fund Fund Fund Funds Total
$ 13,490 $ $ $ $ $ $ $ 13,490
21.945 21,945
17,045 17,045
58,282 12,400 5,516 76,198
3,044,006 3,044,006
L434,014 1,434,014
2,807,648
2,807,648
86.202
86,202
959.920
959,920
137.030
137,030
4,092
4,092
5,780,363
5,780,363
367,485
367,485
842.294
1,378,443
2,220,737
623,328
623,328
697,750 338,912
1,036,662
561,530
561,530
2,140,434
2,140,434
$ 7,171,293 $3,382,918 $ 58.282 $ 12.400 $
5,516 $ 7,158,806 $ 3,542,914 $
21,332,129
Page 54
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 — CASH AND INVESTMENTS
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer's
local government investment pools, the County Treasurer's investment pool, obligations of the
U.S. Government and its agencies, obligations of the state and certain local government
subdivisions, interest -bearing savings accounts and certificates of deposit, collateralized
repurchase agreements, certain obligations of U.S. corporations, and certain other securities.
The statutes do not include any requirements for credit risk, custodial credit risk, concentration
of credit risk, interest rate risk, or foreign currency risk for the Town's investments.
Custodial Credit Risk — Deposits. Custodial credit risk is the risk that in the event of bank
failure the Town's deposits may not be returned to the Town. The Town does not have a
deposit policy for custodial credit risk. At year end, the carrying amount of the Town's
deposits was $835,504 and the bank balance was $1,062,940. At year end, $574,199 of the
Town's deposits were covered by collateral held by the pledging financial institution in the
Town's name. The remaining amount is covered by FDIC.
Fair Value Measurements. The Town categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset.
• Level 1 inputs are quoted prices in active markets for identical assets
• Level 2 inputs are significant other observable inputs
• Level 3 inputs are significant unobservable inputs
Valuation Techniques. Equity securities classified in Level 1 of the fair value hierarchy are
valued using prices quoted in active markets for those securities. Debt securities classified in
Level 2 of the fair value hierarchy are valued using a matrix pricing techniques. Matrix pricing
is used to value securities based on the securities' relationship to benchmark quoted prices.
Real estate assets classified in Level 3 are valued by external appraisals and are generally
obtained at least annually. The appraisals are performed using generally accepted valuation
approaches by an independent appraiser.
The State Treasurer's pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool -Government (Pool 7), with no
regulatory oversight. The pools, as an investment company, are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant's position in the
State Treasurer investment pools approximates the value of the participant's shares in the pool
and the participants' shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
Page 55
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 — CASH AND INVESTMENTS
All investments in which the fair value hierarchy is applicable are measured at fair value on a
recurring basis. At year end, cash and investments as of June 30, 2018, are classified in the
accompanying financial statements as follows:
Carrying amount of investments $ 21,986,963
Carrying amount of cash deposits 835,504
Cash on hand 850
Total pooled cash and investments $ 22,823,317
At year end, the Town's investments consisted of the following:
Investment Maturities
(in Years) Credit Rating
Investment Type
Category
Fair Value
Less than 1 1-5 S&P
Moody's
U.S. Government and Agency Notes
Level 1
$ 6,914,966
$ 1,934,019 $4,980,948 AA+
Aaa
Corporate and Foreign Bonds
Level 2
2,691,880
2,691,879 BBB+ -AAA
A3-Aaa
Commercial Paper
Level
598,049
598,049 A-1
P-1
Certificates of Deposit
Level
1,258,376
399,872 858,504 A
A-1
Wells Fargo Money Market Funds
Level 1
505,331
505,331 N/A
N/A
$ 3,437,271 $8,531,331
State Treasurer's Investment Pool 7
Not applicable
10,018,361
55 days average maturities
Total
$ 21,986,963
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates may reduce the
market value of Town investments. In accordance with its investment policy, the Town
manages its exposure to declines in fair values by the following:
• Structuring the investment portfolio so that securities mature concurrent with the
anticipated cash requirements for ongoing operations, thereby avoiding, as much as
possible, the need to sell securities into an adverse market environment prior to
maturity.
• Investing funds primarily in shorter -term securities or similar investment pools and
limiting the average maturity of the portfolio in accordance with the needs of the Town.
• With respect to any firm or individual given responsibility for investments utilizing
external research and advice regarding the current interest rate outlook and global
economic condition to optimize portfolio duration strategy.
Page 56
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 — CASH AND INVESTMENTS
Credit Risk. Credit risk is the risk of default of debt by an issuer or counterparty to an
investment. The Town will limit credit risk by limiting investments in the Town's portfolio to
the asset classes designated as acceptable in ARS §35-323. When possible, analysis of the
credit worthiness of all individual debt issuers held in the portfolio should be conducted on an
annual basis in an effort to guard against investing in a weak or deteriorating credit situation.
Additionally, the Town will pre -qualify financial institutions, brokers/dealers, and investment
advisers with which the Town will do business.
Custodial Credit Risk — Investments. Custodial credit risk is the risk that in the event of
depository financial institution failure, the Town's deposits may not be returned to the Town.
The Town's investment in the State Treasurer's investment pool represents a proportionate
interest in the pool's portfolio; however the Town's portion is not identified with specific
investments and is not subject to custodial credit risk.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss from over
concentration of investments. In accordance with its investment policy, the Town diversifies
its investment portfolio to minimize the risk of loss resulting from over concentration of assets
in a specific maturity, specific issuer, or specific class of securities. With the exception of U.S.
Treasury notes and securities and authorized pools, the investment policy establishes a
maximum percentage of 30 percent in insured or collateralized certificates of deposit; 20
percent in certificates of deposit registry services; 30 percent in commercial paper; and 30
percent in bonds, debentures, or notes.
Percent of Town
Investment Type
Fair Value
Investments
U.S. Government and Agency Notes
$ 6,914,966
31.5%
Corporate and Foreign Bonds
2,691,880
12.2%
Commercial Paper
598,049
2.7%
Certificates of Deposit
1,258,376
5.7%
Wells Fargo Money Market Funds
505,331
2.3%
State Treasurer's investment pool 7
10,018,361
45.6%
$ 21,986,963
NOTE 4 — RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of intergovernmental
receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year-end
for the Town's individual major funds consisted entirely of receivables due from the State.
Page 57
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 5 — CAPITAL ASSETS
A summary of capital asset activity at year end is as follows:
Beginning
Governmental Activities
Balance
Capital assets, not being depreciated:
Land
$ 23,571,668
Artwork
2,503,900
Construction in progress
1,058,546
Total capital assets, not being depreciated
27,134,114
Capital assets, being depreciated:
Infrastructure
147,196,425
Buildings and building improvements
18,533,141
Improvements other than buildings
15,149,782
Vehicles, machinery and equipment
3,746,023
Total capital assets being depreciated
184,625,371
Less accumulated depreciation for
Infrastructure
Buildings and building improvements
Improvements other than buildings
Vehicles, machinery and equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Ending
Increase Decrease Balance
$ $
$ 23,571,668
22,000
2,525,900
3,266,647
265,121
4,060,072
3,288,647
265,121
30,157,640
147,196,425
241,121
18,774,262
15,149,782
1,050,567
444,527
4,352,063
1,291,688
444.527
185,472,532
(91,167,751) (3,994,842) (95,162,593)
(5,339,415) (397,002) (5,736,417)
(9,646,388) (643,853) (10,290,241)
(2,425,976) (199,783) (444,527) (2,181,232)
(108,579,530) (5,235,480) (444,527) (113,370,483)
76,045,841 (3,943,792) 72,102,049
$ 103,179,955 $ (655,145) $ 265,121 $ 102,259,689
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government
$ 173,852
Development services
16,721
Public safety
164,785
Public works
3,960,346
Culture and recreation
919,776
Total depreciation expense
$ 5,235,480
Page 58
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 5 — CAPITAL ASSETS
Construction Commitments — At June 30, 2018, the Town has the following active
construction commitments:
Governmental Activities
Remaining
Project Spent -to -Date Commitment
Valley Metro Bus Stop — Library $ 67,366
Fire Station #2 Relocation 2,069,481
Adero Canyon Trailhead 1,266,557
Video Surveillance Cameras 32,509
Fountain Hills Boulevard Shoulder Paving 46,524
Wayfinding Sign 49,084
Total commitments $ 3,531,522
NOTE 6 — BONDS PAYABLE
$ 8,711
2,288,716
1,180,118
11,284
7,956
46,416
$ 3,543,200
Bonds payable at year end consisted of the following general obligation and revenue bonds.
The bonds are both callable and noncallable with interest payable semiannually.
Original
Amount
Purpose
Issued
Governmental activities:
General Obligation Bonds:
General Obligation Refunding
Bonds, Series 2005
$ 7,225,000
General Obligation Bonds,
Series 2014
7,565,000
Notes from Private Placements:
Eagle Mountain Community
Facilities District, General
Obligation Refunding Bonds,
Series 2015
2,300,000
Municipal Facilities Revenue
Refunding Bonds, Series 2015 1,880,000
Total
Outstanding
Due
Interest Remaining
Principal
Within
Rates Maturities
June 30, 2018
One Year
4% 7/1/19
$ 310,000
$ 310,000
2-3% 7/1/19-20 3,185,000 1,570,000
1.76% 7/1/19-21 1,180,000 385,000
1.62% 7/1/19-20 670,000 370,000
$ 5,345,000 $ 2,635,000
Page 59
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6—BONDS PAYABLE
Annual debt service requirements to maturity on the bonds payable at year end are summarized
as follows:
Governmental
Activities
Year ending June 30, Principal Interest
2019 $ 2,635,000 $ 123,872
2020 2,310,000 67,302
2021 400,000 7,040
Total $ 5,345,000 $ 198,214
Private Placements
The Town has outstanding bonds from private placements reported as governmental activities
of $670,000. The Municipal Facilities Revenue Refunding Bonds contain a provision that the
Town must maintain excise taxes coverage of two and one-half times debt service. In the event
the Town does not maintain this coverage, the Town will impose additional excise taxes. The
Town does not have a line of credit associated with the bonds.
The Eagle Mountain Community Facilities District has outstanding bonds from private
placements reported as governmental activities of $1,180,000. There are no specific
provisions regarding default on the Eagle Mountain Community Facilities District debt.
Pledged Revenues
The Town has pledged excise tax revenues to repay a total of $670,000 in outstanding
Municipal Facilities Revenue Refunding Bonds. For the current fiscal year, the net revenues
available to service the debt were $18,194,833. For the fiscal year ended June 30, 2018, the
debt principal and interest paid on this debt was $376,686 (two percent of pledged revenues).
The total principal and interest remaining to be paid on the bonds is $685,714.
Page 60
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 — CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Governmental activities:
Bonds payable:
General obligation bonds
Revenue bonds
Premium
Total bonds payable
Compensated absences payable
Governmental activity long-term
Liabilities
Beginning
Balance Additions Reductions
$ 7,035,000 $
$ 2,360,000
1,030,000
360,000
205,252
68,417
8,270,252
2,788,417
419,385
314,692 213,617
Ending Due Within
Balance One Year
$ 4,675,000
670,000
136,835
5,481,835
520,460
$ 2,265,000
370,000
2,635,000
373,187
$ 8,689,637 $ 314,692 $ 3,002,034 $ 6,002,295 $ 3,008,187
NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At year end, interfund balances were as follows:
Due to/from other funds:
Non -Major
Governmental
Funds
General Fund $ 568
Total Due from Other Funds $ 568
The interfand balance was repaid in July 2018.
Interfund transfers:
At year end, interfund transfers were as follows:
Transfers out
Capital
Non -Major
General
Projects
Governmental
Transfers in
Fund
Fund
Funds
Total
General Fund
$
$ 1,000,000
$ 36,553
$ 1,036,553
HURF Fund
200,000
200,000
Municipal Property Corporation Debt
Service Fund
209,838
209,838
Capital Projects Fund
1,645,737
1,103,232
2,748,969
Non -Major Governmental Funds
200,000
148,368
348,368
Total
$ 2,055,575
$ 1,200,000
$ 1,288,153
$ 4,543,728
Page 61
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The General Fund transferred $1,145,737 to Capital Projects Fund for the excess revenues over
expenditures per the Town's Financial Policy; $209,838 to Municipal Property Corporation
Debt Service Fund for debt service costs; $200,000 to Environmental Fund for funding
operations of that fund; and $500,000 to Facilities Replacement Fund for funding facilities
replacement. The Open Space Development Fee Fund transferred $1,103,232 to Capital
Projects Fund for the Adero Canyon Trailhead project. The Tourism Fund transferred $36,553
to the General Fund to provide funding for special events. The Capital Projects Fund
transferred $200,000 to Highway User Fund for pavement maintenance costs and $1,000,000
to the Vehicle Replacement Fund for the purchase of a new fire truck. The Economic
Development Fund transferred $148,368 to the Tourism Fund to provide funding for operating
costs of the tourism program.
NOTE 9 — CONTINGENT LIABILITIES
Compliance — Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the state government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be
determined at this time, although the Town expects such amounts, if any, to be immaterial.
Lawsuits — The Town is a party to a number of various types of lawsuits, many of which
normally occur in governmental operations. The ultimate outcome of the actions is not
determinable; however, Town management believes that the outcome of these proceedings,
either individually or in the aggregate, will not have a materially adverse effect on the
accompanying financial statements.
NOTE 10 — RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; and natural disasters. The Town's insurance protection is
provided by the Arizona Municipal Risk Retention Pool (Pool). The Pool is made up of various
towns and cities within Arizona that operate a common risk management and insurance
program. The Pool is structured such that member premiums are based on an actuarial review
that will provide adequate reserves to allow the Pool to meet its expected financial obligations.
The Pool has the authority to assess its' members additional premiums should reserves and
annual premiums be insufficient to meet the Pool's obligations.
Page 62
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 — RISK MANAGEMENT
The Town joined the Arizona Municipal Workers' Compensation Pool (Pool) together with
other governments in the state for risks of loss related to workers' compensation claims. The
Pool is a public entity risk pool currently operating as a common risk management and
insurance program for towns and cities in the State. The Town is responsible for paying a
premium, based on an experience rating formula that allocates pool expenditures and liabilities
among members.
The Town continues to carry commercial insurance for all other risks of loss, including
employee health, dental, and vision insurance. There were no settlements that exceeded
insurance coverage in any of the past three years.
NOTE 11— RETIREMENT PLANS
Defined Contribution Pension Plan
All full-time employees of the Town participate in a defined contribution pension plan
administered by the ICMA Retirement Corporation as a 401(a) plan. The contribution rates are
11 percent for both the employee and the Town. The payroll for the Town employees covered
by this plan for the year ended June 30, 2018, was $2,764,251. The Town's total payroll was
$3,444,672.
A defined contribution pension plan provides benefits in return for services rendered, provides
an individual account for each participant, and specifies how contributions to the individual's
account are to be determined, instead of specifying the amount of benefit the individual is to
receive. Under a defined contribution pension plan, the benefits a participant will receive
depend solely on the amount contributed to the participant's account and the returns earned on
investment of those contributions. All full-time Town employees must participate in the
pension plan from the date they are hired. Contributions made by an employee vest
immediately and contributions made by the Town vest on a pro rata basis for five years. Town
Council has the authority to establish and amend benefit terms and to establish and amend the
contribution rates.
Page 63
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 11 — RETIREMENT PLANS
An employee that leaves the employment of the Town is entitled to his or her contributions
and the vested portion of the Town's contributions, plus interest earned. During the fiscal year,
the Town's required and actual contributions amounted to $304,068. The employees'
contributions totaled $304,068. Employees may also contribute to the ICMA Retirement
Corporation 457 plan on a voluntary basis (with the exception of one contract employee that
is limited to 11 percent of earnings); there is no employer match for those contributions. During
the fiscal year, employees contributed $164,174 to that plan. The Town contributed $8,386 for
the contract employee's 457 account.
No pension provision changes occurred during the year that affected the required contributions
to be made by the Town or its employees. The ICMA Retirement Corporation held no securities
of the Town or other related parties during the fiscal year 2017-18 or as of the close of the
fiscal year.
Page 64
REQUIRED SUPPLEMENTARY INFORMATION
Page 65
Revenues:
Sales taxes
Franchise taxes
Licenses and permits
Leases and rents
Intergovernmental
Charges for services
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
Geneml government
Mayor and council
Administration
Non departmental
Municipal court
Total general government
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL
YEAR ENDED JUNE 30, 2018
Budgeted Amounts
Original Final Actual
$ 8,481,288
360,000
2,089,675
235,423
5,321,168
198,724
51,785
200,000
12,980
16,951,043
71,849
2,603,146
1,364,057
339,913
4,378,965
$ 8,481,288
360,000
2,089,675
235,423
5,321,168
198,724
66.785
200.000
12,980
16,966,043
81,849
2,603,146
310,879
339,913
�97
$ 8,417,614
421,682
930,768
282,531
5,430,178
233,947
94,773
153,736
40,940
16,006 169
77,779
2,288,481
204,810
321,152
2,892,222
Variance with
Final Budget
Positive
(Negative)
$ (63,674)
61,682
(1,158,907)
47,108
109,010
35,223
27,988
(46,264)
27,960
(959.874)
4,070
314,665
106,069
18,761
443,565
Development services 1.890,482 1,890.482 866,594 1,023,888
Public safety
Fire and emergency
Law enforcement
Total public safety
Public works
Culture and recreation
Capital outlay
Total expenditures
3,881,833 3,881,833 3,626,953 254,880
3,855,626 3,838,581 3,775,274 63,307
7,737,459 7,720AI4 318,187
837,495
2,391,496
836.595
2,421,196
638,111
2,168,710
198,484
252,486
862,000 1,079,045 1,025,632 53,413
18,097,897 17,283,519 14,993,496 2,290,023
Excess (deficiency) of revenues over expenditures (1,146,854) (317,476) 1,012,673 1,330,149
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
1,062,500 1,062,500 1,075,553 13,053
(948,838) (948,838) (2,094,575) (1,145,737)
113,662 113,662 (1,019,022) (1,132,684)
(1,033,192) (203,814) (6,349) 197,465
7,468,718 7,553,998 7,177.642 (376,356)
6,435,526 7,350,184 T 7,171.293 (244,640)
See accompanying notes to this schedule.
Page 66
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
HIGHWAY USER REVENUE
YEAR ENDED JUNE 30, 2018
Variance with
Budgeted Amounts
Final Budget
Positive
Original Final
Actual
(Negative)
Revenues:
Sales taxes
$ 769,512 $ 769,512 $
793,198
$ 23,686
Intergovernmental
2,566,773 2,566,773
2,605,350
38,577
Charges for services
262,000 262,000
20,175
(241,825)
Other
25,000 25,000
2,148
(22,852)
Investment earnings
2,340 2,340
39,992
37,652
Total revenues
3,625,625 3,625,625
3,460,863
(164,762)
Expenditures:
Current -
Public works
3,825,625 3,828,714
2,555,562
1,273,152
Capital outlay
24,935
(24,935)
Total expenditures
3,825,625 3,828,714
2,580,497
1,248,217
Excess (deficiency) of revenues over expenditures (200,000) (203,089)
880,366
1,083,455
Other financing sources (uses):
Transfer in
200,000 200,000
200,000
Total other financing sources (uses)
200,000 200,000
200,000
Changes in fund balances
(3,089)
1,080,366
1,083,455
Fund balances, beginning of year
2,302,552 2,302,552
2,302,552
Fund balances, end of year
$ 2,302,552 $ 2,299,463 $
3,3 8 22,918
$ 1,083,455
See accompanying notes to this schedule.
Page 67
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
Revenues:
Intergovernmental
Total revenues
Expenditures:
Current -
General government
Capital outlay
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
GRANTS
YEAR ENDED JUNE 30, 2018
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
$ 1,344,000 $ 1,329,000 $ 157,946 $ (1,171,054)
1,344,000 1,329,000 157,946 (1,171,054)
1,092,000 1,077,000 56,000 1,021,000
252,000 252,000 101,946 150,054
1,344,000 1,329,000 157,946 1,171,054
See accompanying notes to this schedule.
Page 68
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
NOTE 1— BUDGETARY BASIS OF ACCOUNTING
The Town Council follows these procedures in establishing the budgetary data reflected in the
financial statements:
1. In accordance with Arizona Revised Statutes, the Town Manager submits a proposed
budget for the fiscal year commencing the following July 1 to the Town Council. The
operating budget includes proposed expenditures and the means of financing them for the
upcoming year.
2. Public hearings are conducted to obtain taxpayer comment.
3. Prior to the third Monday in August, the budget for the Town is legally enacted through
passage of a resolution. To ensure compliance with the expenditure limitation, a uniform
expenditure report must be filed with the State each year. This report, issued under a
separate cover, reconciles total Town expenditures from the audited basic financial
statements to total expenditures for reporting in accordance with the State's uniform
expenditure reporting system (A.R.S 41-1279.07).
4. Expenditures may not legally exceed the expenditure limitation described below for all
fund types as a whole. For management purposes, the Town adopts a budget by department
for the General Fund and in total by fund for other funds. The Town Manager, subject to
Town Council approval, may at any time transfer any unencumbered appropriation balance
or portion thereof between a department or activity. The adopted budget cannot be
amended in any way without Town Council approval.
5. Formal budgetary integration is employed as a management control device during the year
for the General, Highway User Revenue, Excise Tax, Special Revenue, Debt Service, and
Capital Projects Funds on essentially the same modified accrual basis of accounting used
to record actual revenues and expenditures.
The Town is subject to the State of Arizona's Spending Limitation Law for Towns and Cities.
This law does not permit the Town to spend more than budgeted revenues plus the carryover
unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the
combined funds. The Town complied with this law during the year.
Page 69
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Page 70
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 71
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - ALL NON -MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2018
Total Non -Major
Governmental
Special Revenue
Capital Projects
Funds
ASSETS
Cash and investments
$ 2,127,311
$ 1,429,529
$ 3,556,840
Intergovernmental receivable
16,910
16,910
Taxes receivable
79
79
Interest receivable
3,492
4,485
7,977
Due from other funds
568
568
Total assets
$ 2,148,360
$ 1,434,014
$ 3,582,374
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ 35,779
$ $ 35,779
Accrued wages and benefits
3,681
3,681
Total liabilities
39,460
39,460
Fund balances:
Restricted
17,045
1,434,014 1,451,059
Committed
1,468,527
1,468,527
Assigned
623,328
623,328
Total fund balances
2,108,900
1,434,014 3,542,914
Total liabilities and fund balances
$ 2,148,360
$ 1,434,014 $ 3,582,374
Page 72
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON -MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2018
Total Non -Major
Governmental
Special Revenue
Capital Projects
Funds
Revenues:
Property taxes
$ 5,471
$
$ 5,471
Sales taxes
396,599
396,599
Licenses and permits
488,474
585,144
1,073,618
Intergovernmental
72,554
72,554
Other
2,326
2,326
Fines and forfeitures
29,261
29,261
Investment earnings
14,288
9,389
23,677
Total revenues
1,008,973
594,533
1,603,506
Expenditures:
Current -
General government
244,923
244,923
Development services
530,655
530,655
Public works
4,696
4,696
Culture and recreation
206,513
535
207,048
Total expenditures
986,787
535
987,322
Excess (deficiency) of revenues over expenditures
22,186
593,998
616,184
Other financing sources (uses):
Transferin
348,368
348,368
Transfer out
(184,921)
(1,103,232)
(1,288,153)
Total other financing sources (uses)
163,447
(1,103,232)
(939,785)
Changes in fund balances
185,633
(509,234)
(323,601)
Fund balances, beginning of year
1,923,267
1,943,248
3,866,515
Fund balances, end of year
$ 2,108,900
$ 1,434,014
$ 3,542,914
Page 73
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Page 74
NON -MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Downtown Strate¢v Fund — accounts for the portion of Town sales tax committed by the Town
Council for the development of the downtown area.
Economic Development Fund — accounts for the portion of Town sales tax committed by the
Town Council for economic development and tourism.
Tourism Fund — accounts for the portion of Town sales tax committed by the Town Council as
well as any grants received for all tourism activities.
Local Court Enhancement Fund — accounts for a local court surcharge, committed for court
enhancement.
Environmental Fund — accounts for all funds received from collection of the environmental fee.
Cottonwoods Maintenance Fund — accounts for all funds restricted to pay for maintenance of
the Cottonwoods Maintenance District.
Capital Projects Funds
Facilities Replacement Fund — accounts for all funds assigned for the maintenance and repair of
facilities and equipment.
Development Fees Fund — accounts for restricted development fees collected from building
permits.
Page 75
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - NON -MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS
Cash and investments
Intergovernmental receivable
Taxes receivable
Interest receivable
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Total liabilities
Fund balances:
Restricted
Committed
Assigned
Total fund balances
Total liabilities and fund balances
Downtown
Strategy
$ 954,283
3,268
3,492
$ 961,043
$ 1,123
1,123
959,920
959,920
$ 961,043
Economic
Development
$ 128,952
13,074
$ 142,026
$ 2,832
2,164
4,996
137,030
137,030
$ 142,026
Tourism
$ 13,023
$ 13,023
$ 7,819
1,112
8,931
4,092
4,092
$ 13,023
Page 76
Local Court Cottonwoods
Enhancement Environmental Maintenance Totals
$ 366,349 $ 647,363 $ 17,341 $ 2,127,311
568 16,910
79 79
3,492
568 568
$ 367,485 $ 647,363 $ 17,420 $ 2,148,360
$ $ 23,630 $ 375 $ 35,779
405 3,681
24,035 375 39,460
17,045 17,045
367,485 1,468,527
623,328 623,328
367,485 623,328 _ 17,045 2108,900
$ 367,485 $ 647,363 $ 17,420 $ 2,148,360
Page 77
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON -MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Development services
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Downtown Economic
Strategy Development
79,320 317,279
3,756 1,151
83,076 318,430
56,044 183,332
56,044 183,332
Tourism
72,554
2,251
932
75,737
206,513
206,513
27,032 135,098 (130,776)
148,368
(158,368) (26,553)
(158,368) 121,815
27,032 (23,270) (8,961)
932,888 160,300 13,053
$ 959,920 $ 137,030 $ 4,092
Page 78
Local Court
Cottonwoods
Enhancement
Environmental
Maintenance
$
$
$ 5,471
488,474
75
29,261
589
7,663
197
29,850
496,212
5,668
5,547
5,547
24,303
24,303
343,182
$ 367,485
530,655
530,655
(34,443)
200,000
200,000
165,557
457,771
$ 623,328
4,696
4,696
972
16,073
$ 17,045
Totals
$ 5,471
396,599
488,474
72,554
2,326
29,261
14,288
1,008,973
244,923
530,655
4,696
206,513
986,787
22,186
348,368
(184,921)
163,447
185,633
1,923,267
$ 2,108,900
Page 79
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON -MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Development services
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Downtown Strategy
Variance -
Positive
Budget Actual (Negative)
76,956 79,320 2,364
3,060
3,756
696
80,016
83,076
3,060
58,796
56,044
2,752
58,796
56,044
2,752
21,220
27,032
5,812
(100,000)
100,000
(100,000)
100,000
(78,780)
27,032
105,812
932,888
932,888
$ 854,108 $
959,920 $
105,812
Page 80
Economic Development
Tourism
Variance -
Variance -
Positive
Positive
Budget
Actual
(Negative)
Budget
Actual
(Negative)
307,800
317,279
9,479
83,000
72,554
(10,446)
10,000
2,251
(7,749)
48
1,151
1,103
180
932
752
307,848
318,430
10,582
93,180
75,737
(17,443)
252,823
183,332
69,491
221,498
206,513
14,985
252,823
183,332
69,491
221,498
206,513
14,985
55,025
135,098
80,073
(128,318)
(130,776)
(2,458)
148,368
148,368
(158,368)
(158,368)
(13,500)
(26,553)
(13,053)
(158,368)
(158,368)
134,868
121,815
(13,053)
(103,343)
(23,270)
80,073
6,550
(8,961)
(15,511)
160,300
160,300
13,053
13,053
$ 56,957
$ 137,030
$ 80,073
$ 19,603
$ 4,092
$ (15,511)
(Continued)
Page 81
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETANDACTUAL
NON -MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
Local Court Enhancement
Variance -
Positive
Budget Actual (Negative)
Revenues:
Property taxes $ $ $
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures 24,600 29,261 4,661
Investment earnings 180 589 409
Total revenues 24,780 29,850 5,070
Expenditures:
Current -
General government
50,265
5,547
44,718
Development services
Public works
Culture and recreation
Capital outlay
30,000
30,000
Total expenditures
80,265
5,547
74,718
Excess (deficiency) of revenues over expenditures
(55,485)
24,303
79,788
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
(55,485)
24,303
79,788
Fund balances, beginning of year
343,182
343,182
Fund balances, end of year
$ 287,697 $
367,485 $
79,788
Page 82
Environmental Cottonwoods Maintenance
Variance - Variance -
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
$ $ $ $ 5,454 $ 5,471 $ 17
492,444 488,474 (3,970)
75 75
540 7,663 7,123 36 197 161
492.984 496,212 3,228 5,490 5,668 178
711,806
530,655
181,151
5,031
4,696
335
335
4,696
5,031
530,655
181,151
711,806
(218,822)
(34,443)
184,379
459
972
513
200,000
200,000
200,000
20Q000
(18,822)
165,557
184,379
459
972
513
457,771
457,771
16,073
16,073
$ 438,949
$ 623,328 $
184,379 $
16,532 $
17,045 $
513
(Continued)
Page 83
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON -MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Development services
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance -
Positive
Budget
Actual
(Negative)
$ 5,454
$ 5,471
$ 17
384,756
396,599
11,843
492,444
488,474
(3,970)
83,000
72,554
(10,446)
10,000
2,326
(7,674)
24,600
29,261
4,661
4,044
14,288
10,244
1,004,298
1,008,973
4,675
361,884
244,923
116,961
711,806
530,655
181,151
5,031
4,696
335
221,498
206,513
14,985
30,000
30,000
1,330,219
986,787
343,432
(325,921)
22,186
348,107
348,368
348,368
(271,868)
(184,921)
86,947
76,500
163,447
86,947
(249,421)
185,633
435,054
1,923,267
1,923,267
$ 1,673,846
$ 2,108,900 $
435,054
Page 84
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Page 85
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETANDACTUAL
ALL DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
General Obligation Debt Service
Variance -
Positive
Budget
Actual
(Negative)
Revenues:
Property taxes
$ 1,893,694
$ 1,909,924
$ 16,230
Investment earnings
720
8,494
7,774
Total revenues
1,894,414
1,918,418
24,004
Expenditures:
Debt service -
Principal retirement
1,980,000
1,980,000
Interest on long-term debt
140,950
140,950
Fiscal charges
600
600
Total expenditures
2,121,550
2,121,550
Excess (deficiency) of revenues over expenditures
(227,136)
(203,132)
24,004
Other financing sources (uses):
Transfer in
Total other financing sources (uses)
Changes in fund balances
(227,136)
(203,132)
24,004
Fund balances, beginning of year
261,414
261,414
Fund balances, end of year
$ 34,278
$ 58,282
$ 24,004
Page 86
Eaele Mountain Debt Service
Variance -
Positive
Budget Actual (Negative)
$ 372,746 $ 370,686 $ (2,060)
120 2,115 1,995
372,866 372,801 (65)
380,075
27,456
200
407,731
(34,865)
(34,865)
47,322
$ 12,457
380,000
27,528
(34,922)
(34,922)
47,322
$ 12,406
75
(72)
5
8
(57)
(57)
$ (57)
Municipal Prouerly Corporation Debt Service
Variance -
Positive
Budget Actual (Negative)
840 3,811 2,971
840 3,811 2,971
360,000
360,000
16,686
16,686
1,010
1,010
377,696
377,696
(376,856)
(373,885) 2,971
209,838
209,838
209,838
209,838
(167,018)
(164,047) 2,971
169,563
169,563
$ 2,545
$ 5,516 $ 2,971
(Continued)
Page 87
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETANDACTUAL
ALL DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Property taxes
Investment earnings
Total revenues
Expenditures:
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Totals
Variance -
Positive
Budget Actual (Negative)
$ 2,266,440 $ 2,280,610 $ 14,170
1,680 14,420 12,740
2,268,120 2,295,030 26,910
2,720,075
2,720,000
75
185,092
185,164
(72)
1,810
1,805
5
2,906,977
2,906,969
8
(638,857)
(611,939)
26,918
209,838
209,838
209,838
209,838
(429,019)
(402,101)
26,918
478,299
478,299
$ 49,280
$ 76,198 $
26,918
Page 88
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Page 89
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - NON -MAJOR CAPITAL PROJECTS FUND
JUNE 30, 2018
ASSETS
Cash and investments
Interest receivable
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Restricted
Total fund balances
Total liabilities and fund balances
Development
Fees
$ 1,429,529
4,485
$ 1,434,014
$ 1,434,014
1,434,014
$ 1,434,014
Page 90
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON -MAJOR CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2018
Development
Fees
Revenues:
Licenses and permits
$ 585,144
Investment earnings
9,389
Total revenues
594,533
Expenditures:
Current -
Culture and recreation
535
Total expenditures
535
Excess (deficiency) of revenues over expenditures
593,998
Other financing sources (uses):
Transfer out
(1,103,232)
Total other financing sources (uses)
(1,103,232)
Changes in fund balances
(509,234)
Fund balances, beginning of year
1,943,248
Fund balances, end of year
$ 1,434,014
Page 91
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETANDACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Capital Projects
Variance -
Non-GAAP Positive
Budget Actual (Negative)
$ 368,124
$ 704,166
$ 336,042
255,000
(255,000)
170,000
103,051
(66,949)
6,024
22,557
16,533
799,148
829,774
30,626
1,940
2,791
(851)
364,800
58,189
306,611
7,285,000
3,164,701
4,120,299
7,651,740
3,225,681
4,426,059
(6,852,592)
(2,395,907)
4,456,685
2,077,024
2,248,969
171,945
(1,200,000)
(1,200,000)
877,024
1,048,969
171,945
(5,975,568)
(1,346,938)
4,628,630
7,127,301
7,127,301
$ 1,151,733
$ 5,780,363
$ 4,628,630
Page 92
Facilities Replacement Fund
Variance -
Non-GAAP Positive
Budget Actual (Negative)
$ $ $
5,400 5,400
1,440 17,274 15,834
1,440 22,674 21,234
906,850 163,759 743,091
906,850 163,759 743,091
(905,410) (141,085) 764,325
500,000 500,000
500,005 500,000
(405,410) 358,915 764,325
1,019,528 1,019,528
$ 614,118 $ 1,378,443 $ 764,325
Development Fees
Variance -
Positive
Budget Actual (Negative)
158,160
585,144
426,984
6,540
9,389
2,849
164,700
594,533
429,833
60,535
535
60,000
60,535
535
60,000
104,165
593,998
489,833
(1,977,024)
(1,103,232)
873,792
(1,977,024)
(1,103,232)
873,792
(1,872,859)
(509,234)
1,363,625
1,943,248
1,943,248
$ 70,389
$ 1,434,014
$ 1,363,625
(Continued)
Page 93
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETANDACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance -
Non-GAAP
Positive
Budget
Actual
(Negative)
$ 368,124
$ 704,166
$ 336,042
158,160
585,144
426,984
255,000
(255,000)
170,000
108,451
(61,549)
14,004
49,220
35,216
965,288
1,446,981
481,693
1,940
2,791
(851)
1,271,650
221,948
1,049,702
60,535
535
60,000
7,285,000
3,164,701
4,120,299
8,619,125
3,389,975
5,229,150
(7,653,837) (1,942,994) 5,710,843
2,577,024
2,748,969
171,945
(3,177,024)
(2,303,232)
873,792
(600,000)
445,737
1,045,737
(8,253,837)
(1,497,257)
6,756,580
10,090,077
10,090,077
$ 1,836,240
$ 8,592,820
$ 6,756,580
Page 94
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended to
enhance the reader's understanding of the information presented in the financial statements, notes
to the financial statements, and other supplementary information presented in this report. The
statistical section is comprised of the five categories of statistical information presented below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town's financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town's ability to generate revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town's current levels of
outstanding debt as well as assess the Town's ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town's financial activities take place and to help
make comparisons with other cities.
Operating Information
These schedules contain information about the Town's operations and various resources to
help the reader draw conclusions as to how the Town's financial information relates to the
services provided by the Town.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved
by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal
year 2014-15 be based upon property values limited to five percent in annual growth. The
aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying
assessment ratios based on the use of a property), including property values with a growth limit,
is currently referred to as net limited assessed value and formerly as primary assessed value. In
accordance with Proposition 117, this value is used for all taxing purposes beginning with fiscal
year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full
cash assessed value and formerly as secondary assessed value. This value remains the value
utilized for determining debt capacity limits.
Page 95
Town of Fountain Hills, Arizona
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year ended June 30
2009
2010
2011
2012
Governmental activities;
Net investment in capital assets
$ 94,611,110
$ 95,467,509
$ 92,579,483
$ 92,006,103
Restricted
11,828,137
11,396,116
4,385,595
5,951,416
Unrestricted
13,765,293
12,321,090
22,598,669
21,064,267
Total governmental activities net position
$ 120,204,540
$ 119,184,715
$ 119,563,747
$ 119,021,786
Source: The source of this information is the Town's financial records.
Page 96
Fiscal Year ended June 30
2013 2014 2015 2016 2017 2018
$ 89,800,560 $ 89,713,260 $ 95,325,824 $ 95,647,990 $ 94,909,703 $ 96,777,854
5,721,744 5,480,867 6,310,810 4,530,239 4,471,661 4,589,526
20,612,758 19,186,823 15,180,582 17,232,506 17,578,068 16,244,169
$ 116,135,062 $ 114,380,950 $ 116,817,216 $ 117,410,735 $ 116,959,432 $ 117,611,549
Page 97
Town of Fountain Hills, Arizona
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities:
General government
Development services
Public works
Public safety
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Program Revenues
Governmental activities:
Fines, fees and charges for services:
General government
Development services
Public works
Public safety
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net(Expenses)/Revenues
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes
Sales taxes
Franchise taxes
State shared revenues
Investment earnings
Miscellaneous
Total governmental activities
Changes in Net Position
Governmental activities
Fiscal Year Ended June 30
2009 2010 2011 2012 2013
$ 4,231,529 $ 3,720,236 $ 2,876,848 $ 3,119,113 $ 2,909,443
2,218,994
1,611287
1,572,202
1,442,613
1,633,361
5,051,294
5,202,285
5,567,973
4,718,047
5,712,817
7,312,415
6.293,323
5,961067
5,820,136
6,100,131
3,336,616
2,927,848
2,840,154
2,754,731
2,779,294
1,033,536
950,484
851,957
779.576
567,043
23,184,384
20,706,463
19,672,201
18,634,216
19,702,089
499,914
474,434
337,279
272,469
380,926
455,543
236,377
344,821
322,984
377,483
50,408
266,706
77,409
95,201
112,521
55,042
59,806
65,568
63,926
63,824
427,137
338,357
339,341
303,508
288,745
-
1,666,498
1,614,462
1,285,656
1,266,906
1.353,409
632,617
2,273,414
1,392.706
150,535
2,841,453
3,674,795
5,052,294
3,736,450
2,640,940
(20,342,931) (17,031,668) (14,619,907) (14,897,766) (17,061,149)
1.531,770
1,928,028
1,349,079
8,932,374
7,644,440
8,013,480
321,964
285,881
322,659
8,456.552
6.000.923
5,217,140
258,478
22,831
28,456
76,300
129,740
68,125
19,577,438
16,011, 843
14,998, 939
1,453.405
7.787.489
332,130
4,515,511
88,877
178.393
14,355,805
1,385,147
7,957,163
334,668
4,979,183
69,998
300.899
15,027.058
$ (765,493) $ 1,019,825) $ 379,032 $ (541.961) $ (2,034,091)
Source: The source of this information is the Town's financial records.
Page 98
Fiscal Year Ended June 30
2014 2015 2016 2017 2018
$ 2,432,965 $ 2,479,365 $ 2,516,966 $ 3,142,722 $ 3,431,752
1,237,717
2,074,611
2,253,208
1,364,378
1,460,967
6,630,875
4,963,979
6,476,688
7,904,577
7,567,012
6,958,056
6,816,152
7,178,890
7,563,898
7,380,663
2,760,690
2,822,954
3,124,523
3,375,414
3,311,648
472,999
698,542
241,694
178,749
118,552
20,493,302
19,855,603
21,791,969
23,529,738
23,270,594
215,943
337,655
298,737
837,163
295,716
531,193
693,670
1,257,492
1,062,094
1,314,915
250,421
236,706
48,688
216,724
155,973
74,887
86,641
90,345
155,454
52.465
340,353
339.158
321.189
393,028
497,914
1,307,738
1,431,017
1,615,973
L699.931
1,737.958
144,570
2,874,796
381,011
494,328
304,951
2,865,105
5,999,643
4,013,435
4,858,722
4,359,892
(17,628,197) (13,855,960) (17,778,534) (M671,016) (18,910,702)
1,449,646
904,660
2,569,504
2,296,199
2,263,623
8,459,267
8,981049
9,395,667
9,415,151
10,311,577
349,414
352,673
360,320
367,119
421.682
5,326,332
5,713,235
5,813,678
6,057,278
6,396,667
123,311
150,358
219.058
55,127
158,860
166.115
188,251
13,826
28,839
10,410
15,874,085
16,292,226
18,372,053
18,219,713
19,562,819
$ (1,754,112) $ 2.436,266 $ 593,519 $ (451,303) $ 652,117
Page 99
General fund
Reserved
Unreserved, designated
Unreserved, undesignated
Total general fund
All other governmental funds
Unreserved, designated
Unreserved, undesignated reported in:
Special revenue funds
Capital projects funds
Debt service funds
Total all other governmental funds
General fund
Nonspendable
Inventory
Prepaid items
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Cash with escrow agent
Prepaid items
Restricted
Committed
Assigned
Total all other governmental funds
Town of Fountain Hills, Arizona
Fund Balances — Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year ended June 30
2009 2010
$ 3,234,860 $ 3,235,811
127,916 333,796
3,302,373 3,418.799
$ 6.665,149 $ 6,988,406
$ 95.620 $ 159,484
4.198,782 4,498,523
10,246,395 10,020,336
1,218,971 1,182,834
$ 15,759,768 $ 15,861,177
Fiscal Year ended June 30
2011 2012 2013 2014
$ 13,183 $ 9,332 $ 10,201 $ 14,358
29,234 28,245 32,493 18,348
- 1,345.200 1,345,200 L345.200
- 2,190,910 2,191,063 1.647,193
8.263,549 3,656,173 4,117,865 4,972.853
S 8.305.966 $ 7,229,860 $ 7.696,822 $ 7,997.952
$ - $ 2,623,895 $ 2,301,609 $ 1,973,067
6,217 5,474 4,706 997
4,379,987 3,300.426 3,354,189 3.505.590
11,480,869 2,039,560 2,175,094 2,089,361
- 9,312,168 9,005,276 7,147,586
$ 15,867,073 $ 17,281,523 $ 16,840,874 $ 14,716,601
Source: The source of this information is the Town's financial records.
Note: During fiscal year 2011, the Town implemented GASB Statement No. 54. Therefore, starting
in the fiscal year ended June 30, 2011, governmental fund balances will be presented based on the
GASB Statement No. 54 hierarchy.
Page 100
Fiscal Year ended June 30
2015 2016 2017 2018
$ 6,975 $ 9,272 $ 5,872 $ 13,490
10,655 4,123 16,868 21,945
2,634,923 2,652,357 2,714,135 2,893,850
1,872,492 1,701,086 1,743,768 2,101,574
4,369.457 5,853,806 2,696,999 2,140,434
$ 8,894,502 $ 10,220,644 $ 7,177,642 $ 7,171,293
$ 1,645,000 $ - $ - $ -
656 5,055 474 -
10,066,786 4,500,044 4,432,710 4,571,263
1,079,780 1,366,081 8,576,250 7,248,890
5,444,124 5,943,364 1,784,761 2,340,683
$ 18,236,346 $ 11.814,544 $14,794,195 $14,160,836
Page 101
Town of Fountain Hills, Arizona
Statement of Revenues, Expenditures and Changes in Fund Balances
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Taxes
Licenses and permits
Leases and rents
Intergovernmental
Charges for services
Other
Fines and forfeitures
Special assessments
Investment earnings
Total revenues
Expenditures
Current:
General government
Development services
Public works
Public safety
Culture and recreation
Capital outlay
Debt service:
Principal
Interest
Other debt service
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of refunding bonds
Issuance of long-term debt
Bond Premium
Payment to refunded bonds escrow agent
Total other financing sources (uses)
Net change in fund balances
Expenditures for capitalized assets
Fiscal Year Ended June 30
2009 2010 2011 2012 2013
$ 10,960,001 $
9,818,985 $
9,704,054 $
9,577,321 $
9,713,445
541,627
399,094
312367
194,976
5M904
290,083
215,520
227,195
206,018
213,871
9,607,961
7,672,037
7,165,103
6,035,448
6,323,047
316,676
464,036
388,635
405,663
162.086
43,683
129,740
72,125
178,393
300,899
339,658
297,030
236,221
223,673
187,251
4,037
-
-
-
258,478
22,831
28,456
88,877
W998
22,362,204
19,019,273
18,134,156
16,910,369
17,541,501
3,514,249
3,186,368
2,575,975
2,887,321
2,699,109
2.036,295
1,669,449
1,564.615
1,421,787
1,643,757
1,199,850
973,746
1,123,230
1,054,930
2,058,990
6,624,141
6,200,227
5,772,800
5,869,445
6,022,269
2,215,065
2,007,737
1,871,446
1,794,332
1,791,018
3,708,277
1,254,223
L043,304
884,323
453.002
2,240,000
2,460,000
2,114,999
1,965,000
2,280,000
925,663.00
825,988
729,077
639,135
554,860
3,47L00
16,869
15,254
55,752
12.183
22,467,011
18 594,607
16,810,700
16,572,025
17,515,188
(104,807) 424,666
3,759,735 1,127,776
(3,950,654) (1,127,776)
(190,919)
1,323,456
338,344
26,313
431,880
2,470,027
1,279,397
(431,880)
(2,470,027)
(1,279,397)
$ (295,726) $ 424,666 $ 1323.456 $ 338,344 $ 26313
$ 2,528.881 $ 532,461 $ 389,082 $ 1,333,785 $ 467,691
Debt service as a percentage of noncapital expenditures 15.9% 183% 17.4 % 17.5% 16.7%
Source: The source of this information is the Town's financial records.
Page 102
Fiscal Year Ended June 30
2014 2015 2016 2017 2018
$ 10,271,737 $ 10,240,382 $ 12,299,285 $ 12,069.714 $ 13,019,341
891,782
1,043,382
1,372,045
1.3 M973
2,004,386
252,584
269,753
258,165
284,090
282,531
6,677,518
9,770,048
7,559,436
7,917,651
8,266,028
161,376
176,541
197,109
351476
254,122
134,114
188,251
147,662
153,438
207,697
170,995
186,456
209,380
257,727
182,997
123,311
150,358
219,058
55,127
15&860
18,683,417
22,025,171
22,262,140
22400196
24,375,962
2,194,845
2,275,124
2,324,026
2,711548
1195.936
1,774,983
2,073,990
2,217,814
1,275,147
1397,249
3,085,559
1,275,779
2,498,714
3,954,450
7 402,227
6,890,770
6,675,874
7,034,887
7,420,032
3,420,317
1,921,939
1,962,585
2,240,865
2,484,940
2,375,758
1,750,465
8,799,068
6,471,382
1,693,265
4,317,214
2,415,000
1,850,000
4,260,000
2,675,000
2,720,000
460,811
454,957
308,106
244,986
185,164
12,188
243,585
2,005
2,180
1,805
20,506,560
25,610,962
27,357,799
22,463,548
25,015,670
(1,823,143)
(3,585,791)
(5,095,659)
(63,352)
(639,708)
1,838,453 2,519,774
(1,838,453) (2,519,774)
- 4,180,000
- 7,565,000
- 342,086
(4,085,000)
8,002,086
562,044 5,194,138 4,543,728
(562,044) (5,194,138) (4,543,728)
$ (1,823,143) $ 4,416,295 $ (5,095,659) $ (63,352) $ (639,708)
$ 2,385,168 $ 9,067,254 $ 6,394,346 $ 1,696,612 $ 4,293,214
15.9% 15.40/ 21.8% 14.1% 14.0%
Page 103
Town of Fountain Hills, Arizona
Governmental Activities - Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Ended June 30
Property Tax
Sales Tax
Franchise Tax
Total
2009
$ 1,705,663
$ 8,932,374
$ 321,964 $
10,960,001
2010
1,888,664
7,644,441
285,881
9,818,986
2011
1,367,915
8,013,480
322,659
9,704,054
2012
1,457,702
7,779,219
332,130
9,569,051
2013
1,421,615
7,957,162
334,668
9,713,445
2014
1,463,056
8,459,267
349,414
10,271,737
2015
904,660
8,983,050
352,673
10,240,383
2016
2,543,298
9,395,667
360,320
12,299,285
2017
2,287,444
9,415,151
367,119
12,069,714
2018
2,286,081
10,311,578
421,682
13,019,341
Source: The source of this information is the Town's financial records.
Page 104
Town of Fountain Hills, Arizona
Assessed Value and Estimated Actual Value of Taxable Property
Fiscal Year
2009 $
2010
2011
2012
2013
2014
2015
2016
2017
2018
Last Ten Fiscal Years
Net
Assessed
Taxable
Value*
Total
Direct
Tax
Rate**
Estimated
Actual
Taxable
Value*
683,827,567
$ 0.1972 $
6,086,032,196
651,694,135
0.2273
5,729,894,491
576,401,885
0.1639
5,068,665,363
452,236,007
0.2258
4,096,551,487
377,816,392
0.2657
3,422,463,416
365,963,182
0.2773
3,359,684,579
403,330,477
0.1151
3,722,794,676
402,223,763
0.5246
3,744,585,506
423,688,665
0.4472
3,965,824,715
444,639,625
0.4259
4,166,589,970
Net Assessed
Taxable Value as a
Percentage of
Estimated Actual
Taxable Value
Source: The source of this information is the Arizona Department of Revenue's
Abstract of the Assessment Roll and the Town's financial records.
11.24%
11.37%
11.37%
11.04%
11.04%
10.89%
10.83%
10.74%
10.68%
10.67%
*Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town's bonding capacity and as the ceiling for net limited
assessed value.
** Per $100 of assessed taxable value.
Page 105
Taxpayer
Toll Brothers AZ Construction Company
EPCOR - Chaparral City Water Company
Hunter Retail LLC
WSL Fountain View Investors V, LLC
Whitestone Fountain Hills, LLC
Smith's Food & Drug Centers Inc.
MJFFH7 LLC
Palisades Resorts LLC
Fountain Hills Invest Co., LLC
Target Corporation
EN LLC
Inland Western Fountain Hills Four Peaks LLC
Adero Canyon LLC
Pacific FH Resort LLC
Qwest Corporation
Sun Tech Development, LLC
Totals
Town of Fountain Hills, Arizona
Principal Property Taxpayers
June 30, 2018 and 2009
Net Limited
Assessed
Value
$ 4,406,088
3,737,160
2,574,292
2,044,311
1,897,190
1,300,356
1,265,132
1,225,428
1,215,236
1,214,812
$ 20,880,005
2018
Rank
1
2
3
4
5
6
7
8
9
10
Source: The source of this information is the Maricopa County Assessor's Office.
2009
Percentage of
Net Full Cash Percentage of
Total Net Limited
Assessed Total Net Full Cash
Assessed Value
Value Rank Assessed Value
0.99%
0.84%
0.58%
0.46%
0.43%
0.29%
0.28%
0.28%
0.27%
0.27%
3,249,180 4 0.48%
3,196,512 5 0.47%
1,987,058 10 0.29%
2,558,638
6
0.37%
5,768,595
1
0.84%
4,500,754
2
0.66%
3,542,320
3
0.52%
2,522,720
7
0.37%
2,320,477
8
0.34%
2,301,963
9
0.34%
4.69% $ 31,948,217
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net assessed limited property valuation. The net assessed full cash
property valuation is used for determining the Town's bonding capacity and as the ceiling for net limited
assessed property valuation.
4.68%
Town of Fountain Hills, Arizona
Property Tax Levies and Collections
Last Ten Fiscal Years
Current
Fiscal Total Tax
Year Tax Levy Collections
2009 $1,719,105 $ 1,660,820
2010 1,895,552 1,838,909
2011 1,340,544 1,307,092
2012 1,446, 076 1,414,482
2013 1,429,285 1,401,654
2014 1,449,884 1,426,612
2015 892,104 881,170
2016 2,532,115 2,502,995
2017 2,278,728 2,241,482
2018 2,272,027 2,230,328
Percent of
Current Taxes
Collected
Delinquent
Tax
Collections
Total Tax
Collections
Ratio of Total
Tax Collections
to Total Tax Levy
96.6%
$ 53,379
$ 1,714,199
99.7%
97.0%
52,188
1,891,097
99.8%
97.5%
24,924
1,332,016
99.4%
97.8%
20,255
1,434,737
99.2%
98.1%
18,833
1,420,487
99.4%
98.4%
18,448
1,445,060
99.7%
98.8%
6,995
888,165
99.6%
98.8%
19,374
2,522,369
99.6%
98.4%
29,637
2,271,119
99.7%
98.2%
-
2,230,328
98.2%
Source: The source of this information is the Maricopa County Treasurer's Office.
Page 107
Town of Fountain Hills, Arizona
Taxable Sales by Category
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30
2009 2010 2011 2012 2013
Sales category
Construction
$ 1,414,308 $
538,562
Transportation/utilities
1,311,735
1,424,828
Wholesale/retail
3,687,605
3,556,292
Restaurants/bars
493,242
509,624
Real estate, rental & leasing
665,153
650,400
Services
258,139
241,685
Other
1,102,192
723,050
Total
$ 8,932,374 $
7,644,441
Note: Other includes all state and local sales tax audit adjustments.
Source: The source of this information is the Town's financial records.
$ 567,135
1,388,075
3,567,986
559,931
731,758
276,566
922,029
$ 8,013,480
$ 600,403
1,409,349
3,601,904
575,704
678,326
274,521
639,012
$ 7,779,219
$ 567,589
1,402,734
3,598,895
645,258
720,023
310,303
712,360
$ 7,957,162
Page 108
Fiscal Year Ended June 30
2014 2015 2016 2017 2018
$ 783,064
$ 935,694
$ 918,717
$ 730,164
$ 1,408,332
1,375,623
1,405,768
1,327,441
1,288,153
1,309,928
3,653,181
4,214,119
4,815,582
4,982,218
5,235,992
655,654
682,180
742,540
811,985
829,857
782,453
617,348
552,856
636,834
745,171
342,079
604,618
779,753
852,675
747,834
867,213
523,323
258,779
113,122
34,464
$ 8,459,267
$ 8,983,050
$ 9,395,667
$ 9,415,151
$10,311,578
Page 109
Town of Fountain Hills, Arizona
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Fiscal
Year
Ended
Town
Maricopa
State
Total
June 30
Rate
County
Rate
Tax Rate
2009
2.60%
0.70%
5.60%
8.90%
2010
2.60%
0.70%
6.60%
9.90%
2011
2.60%
0.70%
6.60%
9.90%
2012
2.60%
0.70%
6.60%
9.90%
2013
2.60%
0.70%
5.60%
8.90%
2014
2.60%
0.70%
5.60%
8.90%
2015
2.60%
0.70%
5.60%
8.90%
2016
2.60%
0.70%
5.60%
8.90%
2017
2.60%
0.70%
5.60%
8.90%
2018
2.60%
0.70%
5.60%
8.90%
Source: The source of this information is the Arizona Department of Revenue.
Page 110
Town of Fountain Hills, Arizona
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Community
Municipal
Highway
Fiscal Year
General
Facilities
Property
User Special
Total
Debt
Ended
Obligation
District
Corporation
Revenue Assessment
Outstanding
Per
June30
Bonds*
Bonds**
Bonds*
Bonds Bonds
Debt
Capita
2009
$ 6,530,000
$ 3,860,000
$ 9,905,000
$ 130,000 $ -
$ 20,425,000
$ 898
2010
5,415,000
3,630,000
8,920,000
- -
17,965,000
799
2011
4,595,000
3,370,000
7,885,000
- -
15,850,000
697
2012
3,755,000
3,090,000
7,040,000
- -
13,885,000
602
2013
2,900,000
2,800,000
5,905,000
- -
11,605,000
498
2014
2,000,000
2,495,000
4,695,000
- -
9,190,000
390
2015
9,517,086
2,300,000
3,525,000
- -
15,342,086
642
2016
7,678,669
1,935,000
1,400,000
- -
11,013,669
450
2017
5,680,252
1,560,000
1,030,000
- -
8,270,252
336
2018
3,631,835
1,180,000
670,000
- -
5,481,835
223
Source: The source of this information is the Town's financial records and the U.S. Bureau of Economic Analysis.
* All bond amounts presented are net of original issuance discounts and premiums.
** All bond amounts presented are net of original issuance discounts and premiums.
The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general obligation bonds.
b
Population data can be found in the Schedule of Demographic and Economic Statistics.
'1
Town of Fountain Hills, Arizona
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Net General
Net General
Municipal
Net Municipal
General
Less: Amounts
Net General
Estimated Actual
Estimated Actual
Obligation
Obligation Bonded
Property
Property
Total
Fiscal
Obligation
Restricted for
Obligation
Taxable Value of
Taxable Value of
Bonded Debt Debt per Net Limited
Corporation
Corporation
Revenues -All
Year
Bonds*
Principal
Bonds
Property
Property
per Capita
Assessed Valuation
Bonds*
Debt per Capita
Sources
2009
$ 10,390,000
$ 9,952
$ 10,380,048
S 6,086,032,196
0.17%
$ 452
1.52%
$ 8,652,918
$ 376
$ 21,331,076
2010
9,045,000
177,751
8,867,249
5,729,894,491
0.15%
390
1.36%
7,878,646
347
18,958,595
2011
7,965.000
83,081
7.881,919
5,068,665,363
0.16%
350
1.37%
6,993,694
311
18,248,326
2012
6,845,000
94,380
6350,620
4,096,551,487
0.16%
297
1.49%
4,300,489
189
17,184,895
2013
5,700,000
82,184
5,617,816
3,422,463,416
0.16%
244
L49%
3,561,814
154
17,723,994
2014
4,495,000
87,949
4,407,051
3,359,684,579
0.13%
189
1.20%
2,721,933
117
18,891,967
2015
11,81T086
420,782
1L396,304
3,722,794,676
0.31%
483
2,83%
1,764,338
75
22,161,316
2016
9.613,669
576,281
9,037,388
3,744,585,506
0.24%
378
2.25%
1,088,117
46
22,262,139
2017
7,240,252
343,697
6,896,555
3,965,824,715
0.17%
282
1.63%
860,437
35
22,400,196
2018
4,811,835
83,185
4,728,650
4,166,589,970
0.11%
192
1.06%
664,484
27
24,375,962
Source: The source of this information is the Department of Revenue and the Town's financial records.
* All bond amounts presented are net of original issuance discounts and premiums. The Town is not obligated
for repayment of the Eagle Mountain Community Facilities District general obligation bonds
Population data can be found in the Schedule of Demographic and Economic Statistics.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal
Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for
determining the Town's bonding capacity and as the ceiling for net limited assessed value.
Town of Fountain Hills, Arizona
Direct and Overlapping Governmental Activities Debt
as of June 30, 2018
Estimated
Estimated
Share of
Percentage
Overlapping
Governmental Unit
Outstanding Debt
Applicable
Debt
Overlapping:
Maricopa County
$ -
1.15%
$ -
Maricopa County Community College District
380,740,000
1.15%
4,378,510
Maricopa Integrated Health System
75,000,000
1.15%
862,500
East Valley Institute of Technology
2.59%
Fountain Hills Unified School District
10,270,000
96,22%
9,881,794
Total Overlapping Debt
15,122,804
Direct:
Town of Fountain Hills, Arizona*
General Obligation Bonds 3,631,835
Revenue Bonds 670,000
Eagle Mountain Community Facilities District** 1,180,000
Total Direct Debt 5,481,835
Total direct and overlapping debt $ 20,604,639
Source: The source of this information is the Town's records, the State and County Abstract of the
Assessment Roll, the Arizona Department of Revenue Report of Indebtedness and the applicable
governmental unit.
* All bond amounts are net of original issuance discounts and premiums.
** The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general
obligation bonds.
Note: The estimated percentage of debt outstanding applicable to the Town is calculated based on the Town's
net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping
jurisdiction.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town
of Fountain Hills. This schedule further estimates the portion of outstanding debt of those overlapping
governments that is borne by residents and businesses of the Town. This process recognizes that, when
considering a town's ability to issue and repay long-term debt, the entire debt burden borne by residents
should be taken into account. However, this fact does not imply that every taxpayer is a resident, and,
therefore, responsible for repaying the debt of each overlapping government.
Page 113
6% Debt Limit
Debt limit
Total net debt applicable to limit
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
20% Debt Limit
Debt limit
Total net debt applicable to limit
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
Town of Fountain Hills, Arizona
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year Ended June 30
2009 2010 2011 2012 2013
$ 41,029,654
$
39,101,648
$
34,584,113
$
27,134,160
$ 22,668,984
$ 41,029.654
$
39,101,648
$
34,584,113
$
27,134,160
$ 22,668,984
$ 136.765.513 $ 130.338,827 $ 115.280,377 $ 90,447,201 $ 75,563,278
6.530.000 5.415,000 4.595,000 3.755,000 2,900.000
$ 130.235.513 $ 124,923,827 $ 110,685,377 $ 86,692,201 $ 72,663,278
5% 4% 4% 4% 4%
Source: The source of this information is the Town's financial records.
Note: All amounts presented are net of original issuance discounts and premiums.
Note: On November 6, 2012. voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town's bonding capacity and as the ceiling for net limited
assessed value.
Page 114
Fiscal Year Ended June 30
2014 2015 2016 2017 2018
$ 21,957,791
$
24,199,829
$
28,325,296
$
30.651.126
$
31,459,192
$ 21,957,791
$
24,199,829
$
28,325,296
$
30,651,126
$
31,459,192
$ 73.192,636 $ 80,666,095 $ 94,417,653 $ 102,170,422 $ 104.863,974
2,000,000 9,175,000 7,405.000 5,475,000 3.495,000
$ 71.192,636 $ 71,491,095 $ 87,012,653 $ 96.695,422 $ 101.368,974
3% 11% 8% 5% 3%
Page 115
Town of Fountain Hills, Arizona
Calculation of Legal Debt Margin
as of June 30, 2018
Net full cash assessed valuation
Water, Sewer, Artificial Lighting, Parks, Open Space, Recreational Facility
Improvements, Public Safety, Law Enforcement, Fire and Emergency
Facilities, and Street and Transportation Facilities
Debt limit - 20% of net full cash assessed valuation
Net debt applicable to limit
20% legal debt margin
All Other General Obligation Bonds
Debt limit - 6% of net full cash assessed valuation
Net debt applicable to limit
6% legal debt margin
Total legal debt margin
524.319,870
$ 104,863,974
3,495,000
101,368,974
31,459,192
31,459,192
$ 132,828.166
Source: The source of this information is the Maricopa County Assessor's Office and the
Town's financial records.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town's bonding capacity and as the ceiling for net limited
assessed value.
Page 116
Town of Fountain Hills
Revenue Bond Coverage
Last Ten Fiscal Years
Municipal Facilities Corporation Revenue Bonds
Fiscal
Year
Ended
P►edged
June 30
Principal
Interest
Total
Revenues
Coverage
2009
$ 885,000
$ 458,799
$1,343,799
$15,930,962
11.9
2010
985,000
416,886
1,401,886
14,008,592
10.0
2011
1,035,000
386,630
1,421,630
13,489,416
9.5
2012
1,085,000
327,312
1,412,312
12,995,685
9.2
2013
1,150,000
285,287
1,435,287
13,397,842
9.3
2014
1,225,000
234,176
1,459,176
14,313,158
9.8
2015
2,545,000
184,500
2,729,500
15,583,484
5.7
2016
480,000
32,740
512,740
16,250,673
31.7
2017
370,000
22,680
392,680
16,815,224
42.8
2018
360,000
16,686
376,686
18,194,833
48.3
Source: The source of this information is the Town's financial records.
Page 117
Town of Fountain Hills, Arizona
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Year
2008
2009 2010
2011
2012
Population
22,984
22,736 22,489
22,741
23,070
Per capita personal income
$ 38,439 $
38,918 $ 40,672 $
44,660 $
47,260
Median age
48.3
48.9 53.9
53.9
53.9
Public school enrollment
2,233
2,203 2,103
1,981
1,886
Town of Fountain Hills
unemployment rate 2.6%
4.5%
4.8% 6.7%
Land use
Total acres 13,005.7
13,005.7
13,005.7 13,005.7
Total square miles 20.32
20.32
20.32 20.32
Vacant lots 1,295
1,253
1,226 1,218
Number of units
Housing 12,832
12,927
12,983 12,990
Lodging 4
4
4 4
Restaurants 47
52
53 56
Shopping centers 19
19
20 20
Schools
Public 4
4
4 4
Preschool 4
4
4 4
Charter 1
1
I 1
Vocational
Sources: The source of the "Per Capita Personal Income",
"Median Age"
and "Unemployment Rate"
information is Sites USA. The source of the "Population" is the U.S. Census Bureau July 1, 2017
estimate. The source of School Enrollment is the Fountain Hills Unified School District No. 98.
Other information is from the Town's records.
Note: N/A indicates the information is not available.
* Information obtained is based on calendar years; therefore,
the latest information obtained was
from 2017.
5.6%
13,005.7
20.32
1,209
12,977
4
56
20
3
6
1
Page 118
Calendar Year
2013
2014
2015
2016
2017*
23,318
23,573
23,899
24,482
24,583
$ 48,244 $
46,619 $
48,240 $
50,162 $
60,531
53.0
53.7
53.8
53.7
53.5
1,820
1,692
1,619
1,506
1,444
6.0%
5.4%
2.4%
1.9%
1.6%
13,005.7
13,005.7
13,005.7
13,005.7
13,005.7
20.32
20.32
20.32
20.32
20.32
1,196
1,165
1,247
1,209
1,175
12,991
12,981
13,002
13,130
13,176
4
4
4
4
4
54
43
46
50
52
20
20
20
20
20
3
3
3
3
3
7
7
7
7
7
1
1
1
1
1
-
-
-
-
1
Page 119
Town of Fountain Hills, Arizona
Principal Employers
Prior Fiscal Year and Nine Years Ago
20>7•
2008
Percentage
Number of
of Total Town
Number of
Employer
Employees
Rank
Employment
Employees
Rank
Fountain Hills Unified School District No. 98
149
1
3.3%
285
1
Fountain View Village
120
2
2.7%
Rural Metro Corporation
111
3
2.5%
Firerock Country Club
100
4
2.2%
Target Stores
98
5
2.2%
130
3
Safeway Stores
95
6
2.1%
110
5
Fry's Food Stores
85
7
1.9%
80
7
Bashas
75
8
1.7%
70
8
Eagle Mountain Golf Club
70
9
1.6%
70
10
Sunrise Senior Living
69
10
1.5%
Monks Construction
190
2
MCO Properties, Inc.
125
4
Town of Fountain Hills
87
6
Sunridge Canyon Golf Course
70
9
Totals
972
21.7%
1,217
Total Town employment
4,474
Source: The source of this information is the Maricopa Association of Governments.
Note: Total Town employment for 2008 was not available.
* Data for 2018 was not available.
Page 120
Town of Fountain Hills, Arizona
Authorized Full-time Equivalent Government Employees by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Municipal court
5.00
5.00
5.00
5.00
5.00
4.00
3.63
3.63
3.63
3.63
Administration
13.50
13.25
11.25
11.58
11.68
10.56
11.33
11.63
12.25
13.45
Public works
9.80
9.80
Development services
40.00
35.75
23.25
20.25
18.75
16.25
16.30
16.30
7.50
8.50
Community services
29.75
27.10
21.63
21.53
21.18
20.18
21.06
20.76
20.76
20.56
Total
88.25
81.10
61.13
58.36
56.61
50.99
52.32
52.32
53.94
55.94
Source: The source of this information is the Town's financial records.
N
w Town of Fountain Hills, Arizona
a Operating Indicators by Function
N Last Ten Fiscal years
Fiscal Year Ended June 30
Function/Program
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Municipal Court
Cases filed
N/A
3,520
2,584
2.173
1,740
1,649
1,738
1,593
2,014
1,277
Hearings/Trials held
N/A
1,089
738
731
703
1,665
1,585
1,564
1,844
676
Administration
FTEs per 1,000 residents
3.8
3.6
2.7
2.6
2.5
2.2
2.2
2.2
2.2
2.3
Registered voters - general election
none
15,511
none
16,074
none
N/A
16113
none
16,387
none
Voter turnout - general election
none
50%
none
34%
none
N/A
38%
none
41%
none
Development Services
Building permits issued
376
411
350
346
457
445
443
410
509
Building inspections conducted
3,189
1,936
1,546
1,257
1,395
2,131
2,448
2,129
2,704
Number of code violation cases
N/A
1,024
843
804
746
716
752
713
669
Number of zoning cases
N/A
7
14
7
10
41
65
72
50
Community Services
Number of Community Center bookings
N/A
3.396
3,315
3,236
3,196
3,383
3.439
3,124
3,764
Number of participants in recreational programs
N/A
I,960
1,759
1,833
1,789
2,291
2.249
2,910
3,773
Number of Senior Services members
N/A
1,105
1,205
1,208
1,118
1,189
1,273
1,326
1,335
Number of home delivered meals
N/A
10,169
9.742
8,419
6,941
4,799
4,035
3,497
3,920
Law Enforcement (contracted)
Physical arrests
825
679
645
522
545
743
445
220
220
Traffic violations
4,900
- 2,959
1,909
1,366
1,296
1,379
1,539
1,215
1,803
Fire & Emergency Medical (contracted)
Total incident responses
2,787
2,875
3,179
3,082
3,136
2,956
3,166
3,191
3,425
Average response time (in minutes)
3:44
4:32
3:46
3:50
3:53
3:37
3:57
3:25
3:33
Source: The source of this information is the Town's financial records
Note: N/A indicates that the information is not available.
468
3,707
654
41
4,395
3,794
1,220
3.093
214
1.053
3,659
3:32
Town of Fountain Hills, Arizona
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Public works
Streets (centerline miles)
Streets (lane miles)
Pedestrian lighting
Traffic signals
Parks and recreation
Acreage -developed parks
Playgrounds
Baseball/softball diamonds
Soccer/football fields
Community centers
Preserve acreage
Miles of trails
178.9
178.9
178.9
178.9
178.9
178.9
178.9
178.9
178.9
180.0
390
390
390
390
390
390
390
390.5
390.5
391.5
34
34
34
34
34
34
85
91
91
91
13
13
13
13
13
13
13
13
13
13
116
116
116
116
116
116
119
119
119
119
7
7
7
7
7
7
7
7
7
7
6
6
6
6
6
6
6
6
6
6
7
7
7
7
7
7
7
7
7
7
1
1
1
1
1
1
1
1
1
1
N/A
N/A
N/A
740
740
740
807.2
807.2
807.2
807.2
N/A
N/A
N/A
4.3
10.43
10.43
15.8
15.8
18.5
18.5
Source: The source of this information is the Town's facilities records.
Note: N/A indicates the information is not available.
(This page intentionally left blank)
Page 124
Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, Arizona 85268
480-816-5100
www.fh.az.gov
m- facebook.com/TownofFountainHills
© - twitter.com/fhazgov
Town of Fountain Hills
Tourism Division
Council Update — October 16, 2018
fountain1hills
www.experiencefountainhilis.org
AND
FY18 ADVERTISING
CAMPAIGN PERFORMANCE
ARIA NA
O F F I C E O i u R I S M
0
6
r
•
i 3lE
y.IRW7
wYla4sa;
SPENDING BY
COMMODITY PURCHASED
SPENDING (BILLIONS)
$5
$4
Z $3 --
O RETAIL SALES
m$2 - . .. ■ ARTS. ENT. & RM
$1
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Dean Runyan Associates, 2017p ARIZONA
°�" �'�"'^'"^"'^�'^'�""'•�^�+ O F F I C E OF TO U R I S M
NORTH CENTRAL
REGION
12,340
$1.14 BILLION
$322 MILLION
$50 MILLION
$51 MILLION
JOBS
DIRECT SPENDING
EARNINGS
LOCAL TAX REVENUE
STATE TAX REVENUE
Source: Dean Runyan Associates, 2017p ARIZONA
0FC 11L 01 TO RISM
DOMESTIC
VISITOR
PROFILE
NIGHTS SPENT IN ARIZONA 3.6 NIGHTS
TOTAL NIGHTS AWAY 4.8 NIGHTS
AVERAGE PARTY SIZE 2.8 PEOPLE
AVERAGE AGE 45 YEARS
AVERAGE HOUSEHOLD INCOME $66,000
PER PARTY EXPENDITURES $645
Marketing Buys
How has our marketing plan reached
the outside community/valley?
fountziri .S
•Cubs Spring Training
Advertisements
• The Cubs set a new Spring
Training Attendance record
for the 2018 season:
• Total attendance at Sloan Field
for the season was 222,023
• Crowds saw our full page ad in
the Cubs Spring Training
program
• Fountain Hills sponsored all
Home Runs for the entire Cubs
Spring Training season!
Spring TrainingRO1
Cost per ad: $6,500.00
from $9,000.0
Cost per audience member Oz $0.02
• Paid for by Salt River Pima Mancopa indil - 9 —
Prop 20' grant monies
Marketing Buys
Now has our marketing plan reached
the outside community/valley?
fountainhills
g".( VAv t' a II&te MW
• Waste Management Phoenix
Open Golf Tournament
• 2018 Attendance broke
records with a weekly total of
719,179
• Crowds saw our full page ad in
the event program
• We were the Proud Sponsor of
hole #4
Phoenix Open ROI
Cost p:_ $6,300.00
* Cost per audience } ernber -, $0.008
• Paid for by Arizona Office of Tourism Prop 302 grant
monies
First Time • Half -page ads in Phoenix
Marketing Magazine
Endeavors • Cost - $3,100 x 3 = 9,300
How did we perform with our new • Distribution Rate — 350,000
initiatives of Fiscal Year 17 — 18 • CPC — $0.008
• An Amplified Story
Campaign with Madden
Media
• Cost - $10,000
• Distribution Rate - 9,496,331
• CPC — $0.001
• Expanded Digital Retargetir-.
First Time Campaign to drive traffic
Marketing • Cost - $16,000
Endeavors • Distribution Rate - 617.9074
How dia we perform with our new • CPC — $0.02
initiatives of Fiscal Year 17 — 18
• Paid for by grant monies
• The Terminal 4 Escalator a
spot in Sky Harbor
International Airport
• Cost - $25,000
• Distribution Rate — 8 million
• CPC — $0.003
First Time • Cactus League Insert
Marketing • Cost - $5,280
Endeavors • Distribution Rate — 500,000
How did we perform with our new • CPC — $0.01
initiatives of Fiscal Year 17 — 18 • Paid for by grant monies
• Diar-nondbacks Spring
Training
• Cost - $3,500
• Distribution Rate—166,063
• CPC — $0.02
0 Paid for by grant monies
FY 17 —18 Campaign Performance
• Total dollars spent $75,680.00
Dollars from municipai budget - $19,300.00
• $124 ROI ,`3nerated from Gross motel Room Sales tax
collected per $1 of advertising monies spent
The Town of Fountain Hills
saw an 22.6% increase in
Growth in 2017 gross hotel room sales tax
How has the tourism industry grown in calendar year 2017 as
in the past year and what kind of compared to calendar
impact does it leave in Town?
year 2016
Gross Hotel Room Sales Tax YOY
average Growth of 25% Each Year
G ra nts
The Division is proud to announce
the honor of being awarded grant
MOMles this gear
//`//\
Fort McDowell
Resort Destination
NEVER GIVE UP. ALWAYS GIVE BACK.
'9
APIZONA
GRAND CANYON STATE
• Grant monies awarded by
the Fort McDowell Yavapai
Nation & the Arizona Office
of Tourism
• In the amount of $101000
— FMD
• in the amount of $33,436.03
- AOT
Online Rules the
World!
Where do we currently stand?
Audience Reach/Engagement in Fiscal
year 17-18
Pa" Pe s
BY AGE
JP,,
People Reached
nv cEnoeP
11T
People Engaged
wwnen xbrce. +ne .ees al assn .,< mos. nteH w e<.a.e +.an rou, w.n<m.
24%
76%
Facebook
• "Likes" up 7.5%
• Impressions: 570,300 impressions
with an average of 7,811 user
engagements per post
ExperiencefountainhiIIs.org
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Meeting Date: 10116/2018
Agenda Type: Consent
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Type: Regular Session
Submitting Department: Administration
Staff Contact Information: Elizabeth A. Burke, Town Clerk, 480-816-5115; eburke@fh.az.gov
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF approving the Town Council Meeting Minutes from
the Special Meeting (Executive Session) of October 2, 2018; and the Regular Meeting of October 2, 2018.
Applicant: NA
Applicant Contact Information: NA
Owner: N/A
Owner Contact Information: NA
Property Location: NA
Related Ordinance, Policy or Guiding Principle: A.R.S. §38-431.01
Staff Summary (background): The intent of approving previous meeting minutes is to ensure an accurate account of the
discussion and action that took place at that meeting for archival purposes. Approved minutes are placed on the Town's
website and maintained as permanent records in compliance with state law.
Risk Analysis (options or alternatives with implications): NA
Fiscal Impact (initial and ongoing costs; budget status): NA
Budget Reference (page number): NA
Funding Source: NA
If Multiple Funds utilized, list here:
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendation(s) by Board(s) or Comm ission(s): NA
Staff Recommendation(s): Approve
List Attachment(s): Minutes of the Special Meeting of October 2, 2018, and Regular Meeting of October 2, 2018.
SUGGESTED MOTION (for Council use): MOVE to approve the consent agenda as listed.
Prepared by:
Approved:
Eli lalffith A rk 10 Grady E. Miller, T anager 10/9/2018
Page 1 of 1
TOWN OF FOUNTAIN HILLS
MINUTES OF THE SPECIAL MEETING OF THE
FOUNTAIN HILLS TOWN COUNCIL
OCTOBER 2, 2018
CALL TO ORDER — Mayor Linda M. Kavanagh
Mayor Kavanagh called the meeting to order at 3:03 p.m. in the Fountain Conference Room.
ROLL CALL — Mayor Linda M. Kavanagh
COUNCILMEMBERS PRESENT: Mayor Linda Kavanagh, Vice Mayor Dennis Brown,
Councilmember Henry Leger, Councilmember Alan Magazine, Councilmember Nick DePorter,
and Councilmember Art Tolis.
COUNCILMEMBERS ABSENT: None.
STAFF PRESENT: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; and Town
Clerk Elizabeth A. Burke.
3. VOTE TO GO INTO EXECUTIVE SESSION
Councilmember DePorter MOVED to recess into Executive Session; SECONDED by
Councilmember Magazine; passed unanimously.
The Fountain Hills Town Council recessed into Executive Session at 3:03 p.m.
4. EXECUTIVE SESSION:
A. 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 meeting. 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, pursuant to A.R.S. §38-431.03(A)(1).
Interview of Council Vacancy Applicants
5. ADJOURNMENT
The Fountain Hills Town Council reconvened into Open Session at 5:20 p.m. at which time the
Special Meeting of October 2, 2018, was adjourned.
TOWN OF FOUNTAIN HILLS
Linda M. Kavanagh, Mayor
ATTEST AND PREPARED BY:
Elizabeth A. Burke, Town
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR MEETING OF THE
FOUNTAIN HILLS TOWN COUNCIL
OCTOBER 2, 2018
1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Linda M. Kavanagh
Mayor Kavanagh called the Regular Meeting of October 2, 2018, to order at 5:32 p.m.
2. INVOCATION — Pastor Tony Pierce, First Baptist Church of Fountain Hills
Pastor Pierce gave the invocation.
3. ROLL CALL — Mayor Linda M. Kavanagh
Mayor Kavanagh thanked Councilmember Brown for his service as Vice Mayor, stating
that he had done an extraordinary job. She then recognized Councilmember Art Tolis as
the new Vice Mayor. Vice Mayor Tolis said that it was an honor to serve.
COUNCILMEMBERS PRESENT: Mayor Linda Kavanagh; Vice Mayor Art Tolis;
Councilmembers Dennis Brown, Nick DePorter, Henry Leger and Alan Magazine.
COUNCILMEMBERS ABSENT: None.
STAFF PRESENT: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson;
and Town Clerk Elizabeth A. Burke.
4. MAYOR'S REPORT
A. The Mayor will read a proclamation declaring October 2018 as Domestic
Violence Awareness Month in the Town of Fountain Hills.
Mayor Kavanagh read the proclamation declaring October 2018 as Domestic
Violence Awareness Month in the Town of Fountain Hills, noting that Council had
worn purple and Town Hall's dome was lit purple for the month.
B. The Mayor will read a proclamation declaring October 2018 as Fire Prevention
Month in the Town of Fountain Hills.
Mayor Kavanagh read the proclamation declaring October 2018 as Fire
Prevention Month in the Town of Fountain Hills and recognized members of the
Fire Department.
5. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
None
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 2
6. CALL TO THE PUBLIC
Pursuant to A.R.S. 38-431.01(H), public comment is permitted (not required) on matters NOT listed on the
agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable
time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised
during "Call to the Public" unless the matters are properly noticed for discussion and legal action. At the
conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to
review a matter, or (N) ask that the matter be placed on a future Council agenda.
None
CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, non -controversial matters and will be
enacted by one motion and one roll call vote of the Council. All motions and subsequent approvals of
consent items will include all recommended staff stipulations unless otherwise stated. There will be no
separate discussion of these items unless a councilmember or member of the public so requests. If a
councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may
request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or
Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the
Consent Agenda and considered in its normal sequence on the agenda.
A. APPROVAL OF Minutes of the Special Meeting of September 11, 2018; the
Special Meeting (Executive Session) of September 18, 2018; and the Regular
Meeting of September 18, 2018.
B. CONSIDERATION OF Resolution 2018-55, abandonment of the 10' Public Utility
and Drainage Easement on Plat 602B, Block 2, Lot 24 (15928 E. Lantana Lane),
as recorded in Book 166, Page 32, records of Maricopa County, Arizona; with
stipulation. (EA 2018-15).
C. CONSIDERATION OF approving a Special Event Liquor License application for
the Veterans of Foreign Wars Post 7507 Foundation (Debra Biloskirka) to be
held in conjunction with the Fountain Hills Fair, being held on the Avenue of the
Fountains, from 9:00 AM to 7:00 PM, November 9 —11, 2018.
D. CONSIDERATION OF approving a Special Event Liquor License application for
the Veterans of Foreign Wars Post 7507 (Boris Biloskirka) to be held in
conjunction with the Fountain Hills Fair, being held on the Avenue of the
Fountains, from 9:00 AM to 7:00 PM, November 9 —11, 2018
Counciklmember Magazine MOVED to approve the Consent Agenda Items 7-A through
7-D; SECONDED by Councilmember Leger; passed with a roll call vote:
VICE MAYOR TOLIS
AYE
COUNCILMEMBER LEGER
AYE
COUNCILMEMBER BROWN
AYE
COUNCILMEMBER DEPORTER
AYE
COUNCILMEMBER MAGAZINE
AYE
MAYOR KAVANAGH
AYE
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 3
8. REGULAR AGENDA
A. CONSIDERATION OF reappointment of Youth Commissioner to Community
Service Advisory Commission.
Community Services Director Rachael Goodwin said that when she first joined
the Town they did not have a youth representative on the Community Services
Advisory Commission.
Mayor Kavanagh MOVED to nominate and reappoint Hayden Arnold as the
Youth Commissioner to the Community Services Advisory Commission with a
term beginning October 1, 2018, and ending May 31, 2019; SECONDED by
Councilmember DePorter; passed unanimously.
B. PUBLIC HEARING to receive comments on Ordinance 18-11, a proposed text
amendment to Section 1.12, Section 5.10.A, Section 5.10.6, Section 10.09, and
the addition of Section 5.10.0 in the Town of Fountain Hills Zoning Ordinance to
provide development standards for utilizing cantilevers on single-family
residential lots or parcels with slopes equal to or greater than 30%. (Case
#Z2018-03)
Mayor Kavanagh noted that items 8-13 and 8-C will have one presentation so
public comment for either should be taken under 8-B. She then opened the
Public Hearing.
Town Attorney Grady Miller said that about 18 months ago, the Council had a
retreat and had public policy discussions. At that time, Councilmember Brown
had brought up an issue and after discussion, staff was directed to research the
issue further and bring back something for consideration.
He said that a year ago the item on Hillside Development Standards was
adopted, but it did not reach the goal of what Council was trying to achieve. Staff
then took an additional item before the Planning and Zoning Commission and it
was coming before Council tonight for consideration with a recommendation for
approval.
Senior Planner Marissa Moore said that staff had previously brought before
Council, at the September 5, 2017, meeting, an amendment to the Zoning
Ordinance to create provisions that allowed single-family development on steep
(greater than 30% grade) lots to reduce the front yard setback to 10 feet.
She said that staff was then requested by the Town Manager to investigate
development options for cantilever structures on canyon side lots. Staff reviewed
hillside development standards throughout the US, and found that a great
majority of municipalities actually prohibit this type of development in a number of
ways, and instead require residential structures to be constructed so that they sit
close to the hillside and terrace down.
In an effort to create regulations that allow for creative ways to develop on steep
slopes, staff analyzed a number of cantilever structures from the United States
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2. 2018
PAGE 4
and other areas. One of the concerns is that the aesthetics of Fountain Hills
should be maintained, and the ordinances should be drafted accordingly.
She said that Paradise Valley has some regulations on cantilever development
and has a committee that reviews the designs of homes. Fountain Hills does not
have a committee for such review, so the ordinance had to be written to take into
account both the desire for flexibility in design and consideration of the
neighborhood character, which may at times contradict each other.
She said that there had been a request by Council for numbers related to the
existing lots in Fountain Hills to which this would apply. There were 895 total
single family residential vacant lots left in Fountain Hills. They took out the State
Trust Land and also Adero Canyon because they have product models and have
never done cantilever homes. Of the 895, 52 of them are not within any HOA or
under NPOA. Out of those 52, less than 10 have a 30% or greater slope.
She thanked the Maricopa Association of Governments (MAG) for their
assistance in compiling the numbers.
She said that when it went to the Planning and Zoning Commission, they
recommended approval with the following considerations:
1. Design Review Criteria
2. Limiting Visual Mass
3. Eliminate to just one story building
4. Requiring soffits to be finished
5. Possible legal issues with engineering design (to go through building and
engineering in their review)
6. Landscaping
At this time, Mayor Kavanagh introduced the new Town Attorney, Aaron Arnson,
and apologized for not introducing him at the beginning of the meeting.
Mr. Arnson said that it was a pleasure to be serving the Town and he was happy
to be there.
Councilmember Brown gave some history of how the issue had came about,
stating that a local builder in town, John Pontain, had come to him with the idea
of being able to build on what was now nonbuildable lots. These were lots
originally sold under the County ordinances. When they became a town they
brought in their own ordinances, and these lots then became nonbuildable.
He said that since this all started, Steve Argo with MCO Realty and part owner of
Eagles Nest, called him to say they at their last meeting the Board was rewriting
the guidelines to allow terraced retaining walls.
It was noted that the Town could write some basic guidelines and probably hire
the NPOA to do the review. They are asking their reviewing committee to look at
that option.
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 5
In response to a question, Ms. Moore said that she could not find anything
spelled out in other communities; most require what the Town currently does,
building into the mountainside.
Concern was voiced with infill lots having homes on either side that built to Code
and whether it would raise the issue of compatibility. Discussion was held and it
was suggested that the recommendations from the Planning and Zoning
Commission be part of the architectural guidelines.
Staff was commended for all of the work they had done on addressing this issue.
Bob Shelstrom, Fountain Hills resident, said that he had no objection to
cantilever homes; it can be engineered properly. He suggested that they require
a geotechnical engineer to design the home.
Mayor Kavanagh closed the Public Hearing at this time.
C. CONSIDERATION OF Ordinance 18-11, a proposed text amendment to Section
1.12, Section 5.10.A, Section 5.10.B, Section 10.09, and the addition of Section
5.10.0 in the Town of Fountain Hills Zoning Ordinance to provide development
standards for utilizing cantilevers on single-family residential lots or parcels with
slopes equal to or greater than 30%. (Case #Z2018-03)
Councilmember Brown MOVED to adopt Ordinance 18-11 with the stipulation
that no permits be released until they have a set of guidelines in place for
cantilever residences and they have the NPOA in place for their review;
SECONDED by Vice Mayor Tolis; passed unanimously.
Councilmembers and staff were thanked for the amount of work put into making
this happen.
D. PUBLIC HEARING to receive comments on Ordinance 18-12, a proposed text
amendment to the town of fountain hills subdivision ordinance, article 5, section
5.02 and section 5.04 to remove the requirements for 6-foot tall chain link fencing
to delineate the disturbance limit boundaries and to allow rope and flag to be
used to delineate the disturbance limit boundaries. (Case #S2018-04)
Mayor Kavanagh noted that items 8-D and 8-E would have one presentation and
comments would be received under item 8-D. At this time she opened the Public
Hearing.
Ms. Moore said that she had no presentation, other than what had been
explained in the agenda action form. She said that currently builders are required
to install a 6' tall chain link fence, which is very difficult to do at times with the
Town's terrain. This change would allow for stakes to be installed with rope and
flags to delineate disturbance limit boundaries.
Mayor Kavanagh closed the Public Hearing.
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 6
E. CONSIDERATION OF Ordinance 18-12, a proposed text amendment to the town
of fountain hills subdivision ordinance, article 5, section 5.02 and section 5.04 to
remove the requirements for 6-foot tall chain link fencing to delineate the
disturbance limit boundaries and to allow rope and flag to be used to delineate
the disturbance limit boundaries. (Case #S2018-04)
Brief discussion was held on this proposed change and how difficult it is to try
and stand up 6' fences on hillsides.
Councilmember Brown MOVED to adopt Ordinance 18-12; SECONDED by Vice
Mayor Tolls; passed unanimously.
F. CONSIDERATION OF authorization to the Town Manager to sign a Cooperative
Purchase Agreement (CPA #2019-028) with Game Time in the amount of
$100,000 for purchase of play ground equipment in conjunction with the Four
Peaks Park improvements.
Mr. Miller said that in this year's Capital Improvements Plan, the Council
authorized funding for the rehabilitation of Four Peaks Park improvements.
Community Services Director Rachael Goodwin said that they have been
awarded a matching grant. They are looking to purchase $106,000 worth of
equipment for $86,000.
Ms. Goodwin said that since they are under a time constraint, staff is requesting
authorization for the Town Manager to sign an agreement once it has been
finalized by the Town Attorney. She then reviewed the proposed equipment. She
said that if they should find savings through the process down the road, or
another funding source, they would like to add additional elements.
Staff was congratulated for their work in obtaining grants, and Council agreed
that they were excited to see renovations taking place at Four Peaks Park.
Ms. Goodwin said that they hope to have the equipment purchased by the end of
October, received by the end of the year, and the site ready for installation
around mid -spring.
Councilmember DePorter MOVED to authorize the Town Manager to sign a
Cooperative Purchase Agreement (#2019-028) with Game Time in the amount of
$100,000 for purchase of play ground equipment in conjunction with the Four
Peaks Park improvements; SECONDED by Councilmember Leger; passed
unanimously.
G. CONSIDERATION OF approving an amendment to the Professional Services
Agreement with Brown & Associates, to increase the FY18-19 contract (C2019-
002.1) by $45,000 to cover the cost of on -call plan review and inspections
through June 30, 2019.
Mr. Miller said that the item before Council is a contract amendment to increase
funding for Brown & Associates, who does a lot of the Town's outside plan review
and inspections. This is to increase the amount from $15,000 to $60,000, a
$45,000 increase, which has been budgeted.
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 7
Mr. Miller said that staff has brought to his attention that this may need to come
back again before the end of the year; it is dependent on the amount of work. He
said that he has asked staff to produce a report that shows the work load, and,
additionally, it may be time to look at a permit fee study to see how much is being
recuperated from permits.
Bob Shelstrom, Fountain Hills resident, said that in his past professional life he
was certified as a code reviewer and conservation engineer. He said that they
need to determine what their actual costs are for the services and decide how
much will be recovered through the permits.
Councilmember Brown MOVED to approve the contract amendment in the
amount of $45,000 (total $60,600) to Brown & Associates; SECONDED by
Councilmember Leger; passed unanimously.
H. CONSIDERATION OF appointment to fill the vacancy on Council.
Mayor Kavanagh thanked all of the eleven applicants, including the five chosen
for interviews.
Councilmember Brown MOVED to appoint Sherry Leckrone to fill the unexpired
term of Cecil Yates on the Fountain Hills Town Council; SECONDED by Vice
Mayor Tolis; passed unanimously.
Ms. Leckrone came forward and said that she appreciated the Council's faith in
her. She said that she enjoyed service when she was on the Planning and
Zoning Commission and she now finds herself able to devote a lot more time.
She feels privileged to be appointed and looks forward to serving the residents.
9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER.
Item(s) listed below are related only to the propriety of (i) placing such item (s) on a
future agenda for action or (ii) directing staff to conduct further research and report back
to the Council:
None
10. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the
Mayor, individual Councilmembers, and the Town Manager.
None
FOUNTAIN HILLS TOWN COUNCIL
REGULAR MEETING OF OCTOBER 2, 2018
PAGE 8
11. ADJOURNMENT.
Councilmember Magazine MOVED to adjourn; SECONDED by Councilmember
DePorter; passed unanimously. The Regular Meeting of the Fountain Hills Town Council
held October 2, 2018, adjourned at 6:52 p.m.
ATTEST AND PREPARED BY:
Elizabeth A. Burke, Town Clerk
TOWN OF FOUNTAIN HILLS
CERTIFICATION
M. Kavanagh, Mayor
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers
on the 2nd day of October, 2018. 1 further certify that the meeting was duly called and that a
quorum was present.
DATED this 16th day of October, 2018.
Elizabeth A. Burke, Town Clerk
Meeting Date: 10/16/2018
Agenda Type: Consent
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Type: Regular Session
Submitting Department: Development Services
Staff Contact Information: Randy Harrel; Town Engineer; rharrel(cDfh.az.00v ; 480-816-5112
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF Resolution 2018-59, abandonment of the 20' Public
Utility and Drainage Easement on Plat 401-B, Block 3, Lot 11 (10225 N. Nicklaus Drive), as recorded in Book 155, Page
12 records of Maricopa County, Arizona, with stipulation. (EA 2018-17)
Applicant: Melinda Stanton, agent (MCO Realty)
Applicant Contact Information: Tele. 480-688-9191; E-mail: melindaanddiane.com
Owner: Brent Donis
Owner Contact Information: 705046 Range Road 62, County of Grand Prairie; AL CA; TBW 5133; Tele. 780-814-4411
Property Location: 10225 N. Nicklaus Drive
Related Ordinance, Policy or Guiding Principle: N/A
Staff Summary (background): This item on the Town Council's agenda is a proposal to abandon the pre -incorporation
20' Public Utility and Drainage Easement at the rear of Plat 401-B, Block 3, Lot 11 (10225 N. Nicklaus Drive). (Note:
Because this action will abandon the entirety of the existing easement on this lot without any stipulation, no map exhibit
has been attached to the Resolution for this item.)
All of the public utilities have approved of abandonment of this easement. A 10'x10' Public Utility Easement should be
granted by the applicant at the northwesterly corner of the lot, for existing and potential future utility boxes on and
adjacent to the lot there.
Staff has reviewed the site to determine any on -site drainage issues in addition to the Town's general interest in the
easement. There is no need for the Town to retain the drainage easement proposed to be abandoned, with the
understanding that the owners of Lot 11 are required to pass the developed flows generated by the upstream lots across
their property.
Risk Analysis (options or alternatives with implications): N/A
Fiscal Impact (initial and ongoing costs; budget status): N/A
Budget Reference (page number): N/A
Funding Source: NA
If Multiple Funds utilized, list here: N/A
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendations) by Board(s) or Commission(s): N/A
Staff Recommendation(s): Staff recommends approval of Resolution 2018-59, abandonment of the 20' Public Utility
and Drainage Easement on Plat 401-B, Block 3, Lot 11, subject to the following stipulation:
. Grant a 10'x10' Public Utility Easement at the northwesterly corner of the lot.
Page 7 of 2
List Attachment(s): Aerial Photo Map; Resolution 2018-59
SUGGESTED MOTION (for council use): Move to approve Resolution 2018-59, abandonment of the 20' Public Utility and
Drainage Easement on Plat 401-B, Block 3, Lot 11, with stipulation.
Prepared b�l `' � � � Approved:
Randy Harrel, Town Engineer 9/25/2018 urady E. Miller, Tpvvff manager 10/2/2018
Director's [oval: 4
Robeft Rodgers, 7
opment Services Director 9/25/2018
Page 2 of 2
RESOLUTION 2018-59
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE,
OR INTEREST IT HAS IN THE PUBLIC UTILITY AND DRAINAGE
EASEMENTS AT THE REAR PROPERTY LINE OF PLAT 401-B, BLOCK 3,
LOT 11, (10225 N. NICKLAUS DRIVE) FOUNTAIN HILLS, ARIZONA, AS
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA
COUNTY, ARIZONA, RECORDED IN BOOK 155 OF MAPS, PAGE 12. (EA
2018-17)
RECITALS:
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.
ENACTMENTS:
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, as follows:
SECTION 1. That the certain public utility and drainage easement, located at the rear property
line of Plat 401-B, Block 3 Lot 11, Fountain Hills, as recorded the Office of the County Recorder of
Maricopa County, Arizona, Book 155 of Maps, Page 12, 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.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, this 16'h day
of October. 2018.
FOR THE TOWN OF FOUNTAIN HILLS:
Linda M. Kavanagh, Mayor
ATTESTED TO:
Elizabeth A. Burke, Town Clerk
RESOLUTION 2018-59
PAGE
REVIEWED BY:
Grady E. Miller, Town Manager
APPROVED AS TO FORM:
Aaron D. Arnson, Town Attorney
10225 N. NICKLAUS DRIVE
PLAT 401-B, BLOCK 3, LOT 11
-0 'A fAIN9`
tr
0
1
z n
� s 9j''aat� A toc0,
Meeting Date: 10/16/2018
Agenda Type: Consent
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Type: Regular Session
Submitting Department: Community Services
Staff Contact Information: Mike Fenzel, Community Center Manager, (480) 816-5116, mfenzel@fh.az.gov
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF approving a Special Event Liquor License
Application for the Fountain Hills and Lower Verde Valley Museum and Historical Society fundraising
dinner and to be held in the Grand Ballroom of the Fountain Hills Community Center, 13001 N. La
Montana Drive, Fountain Hills, AZ from 5:30 PM to 9:00 PM on Wednesday, March 27, 2019.
Applicant: Jean Linzer
Applicant Contact Information: (480) 837-0762
Owner: N/A
Owner Contact Information: N/A
Property Location: Fountain Hills Community Center, 13001 N. La Montana Drive, Fountain Hills, AZ
Related Ordinance, Policy or Guiding Principle: A.R.S.§4-203.02; 4-261 and R19-1-228, R19-1-235, and R19-
1-309, Community Center Operating Policy (Section 15-G).
Staff Summary (background): The purpose of this item is to obtain Council's recommendation regarding the
special event liquor license application submitted by Jean Linzer, representing the Fountain Hills and Lower
Verde Valley Museum and Historical Society, for submission to the Arizona Department of Liquor. Security will
be provided for the duration of the event through MCSO per Community Center operating policy (Section 16-
E).
Risk Analysis (options or alternatives with implications): N/A
Fiscal Impact (initial and ongoing costs; budget status): N/A
Budget Reference (page number): N/A
Funding Source: NA
If Multiple Funds utilized, list here: N/A
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendation(s) by Board(s) or Commission(s): N/A
Staff Recommendation(s): Approve
List Attachment(s): Application
SUGGESTED MOTION (for council use): Move to approve the Consent Agenda.
Prepared by:
Page 1 of 2
P�2� - �)
ike Fenzel, Commury Center anager 10/2/2018
Director's Approval:
Rachael Goodwin, Com unity S Nices Director 10/3/2018
Approved:
Grady E. Miller, wn M ager 10/3/2018
Page 2 of 2
Arizona Department of Liquor Licenses and Control
800 W Washington 5th Floor
Phoenix, AZ 85007-2934
www.azliquor.gov
(602)542-5141
APPLICATION FOR SPECIAL EVENT LICENSE
Fee= $25.00 per day for 1-10 days (consecutive)
Cash Checks or Money Orders Only
1`UK ULLG USE ONLY
Event Date(s):
Event time start/end:
CSR:
Job #:
A service fee of $25.00 will be charged for all dishonored checks (A.R.S § 44-6852)
IMPORTANT INFORMATION: This document must be fully com leted or it will be returned.
The Department of liquor Licenses and Control must receive this application fen (10) business days prior to the event. If the special
event will be held at a location without a permanent liquor license or If the event will be on any portion of a location that is not covered
by the existing liquor license, this application must be approved by the local government before submission to the Department of
Liquor Licenses and Control (see Section 12).
SECTION T Name of Organization, Candidate or Political Party/Govt: Fountain Hills and Lower Verde Valley Museum and Historical Society
Name of Licensed Contractor only (if any): None
SECTION Non-Profit/IRS Tax Exempt Number: 86-0670640
SECTIQN 3 Event Location: Fountain Hills Community Center, a town owned facility
Event Address: 13001 N. La Montana Blvd., Fountain Hills, AZ 85268
SECTION 44 Applicant must be a member of a qualifying nonprofit organization, political party, or Government entity and
authorized by an Officer, Director, or Chairperson of the Organization.
1. Applicant: Linter, Jean
Last t Middle
Date of Birch
2. Applicant's mailing addres lenpoint Drive, Fountain Hills, AZ 85258
Sheet
3. Applicant's home/cell phone: (4$0) 837-0762
4. Applicant's email address:
NOTARY
I,(Print Full Name ) Jean Linter
and verify the contents and all stolemen s are true
I
X (Signature) `
plicant Signature I,
My commission expires on: / A
City
Applicant's business phone: (N/A)
state lip
_, hereby declare that I am the APPLICANT, I have read this document
correct and complete to the best of my knowledge.
State of °� ' 'Ulm County of
the foregoing instrument was acknowledged before me this
ofC'
{ C0C1 AAarlh Year
ub/ie ,
Ayy Con R/ 1 o� --tale pfvl r vCi
/., I7' -Sin allure of NO Lic
r9 2n._
7/12/2018
Page 1 of 4
Individuals requiring ADA accommodations call (602)542-2999
SECTION 5 Will this event be held on a currently licensed premise and within the already approved premises?❑Yes❑✓ No
(If yes, Local Governing Body Signature not required)
of Business License Number Phone (Include Area Code)
SECTION 6 How is this special event going to conduct all dispensing, serving, and selling of spirituous liquors? Please read R-19-
318 for explanation and check one of the following boxes.
❑Place license in non-use
❑Dispense and serve all spirituous liquors under retailer's license
❑✓ Dispense and serve all spirituous liquors under special event
❑Split premise between special event and retail location
OF USING RETAIL LICENSE, PLEASE SUBMIT LETTER OF AGREEMENT FROM THE AGENT/OWNER OF THE LICENSED PREMISES TO SUSPEND OR
RUN CONCURRENT WITH THE PERMANENT LICENSE DURING THE EVENT. IF THE SPECIAL EVENT IS ONLY USING A PORTION OF THE PREMISES,
AGENT/OWNER WILL NEED TO SUSPEND THAT PORTION OF THE PREMISES.)
SECTION 7 What is the purpose of this event?
❑✓ On -site consumption ❑Oft -site (auction/wine/distilled spirits pull) Fhoth
SECTION A
1. Has the applicant been convicted of a felony, or had a liquor license revoked within the last five (5) years?
❑Yes❑✓ No (It yes, attach explanation.)
2. How many special event days have been issued to this organization during the calendar year?
(The number cannot exceed 10 days per year.)
3. Is the organization using the services of a licensed contractor or other person to manage the sale or service of alcohol?
LJ i es ❑✓ No (It yes, must be a licensed contractor or licensee of series 6, 7, 11, or 12)
4. List all people and organizations who will receive the proceeds. Account for 100% of the proceeds. The organization
applying must receive 25% of the gross revenues of the special event liquor sales. Attach an additional page if necessary.
Name Fountain Hills and Lower Verde Valley Museum and Hisorical Society
Address P.O. Box 17445, Fountain Hill
Name
Address
street
Percentage: 1 00%
AZ 85269
Percentage:
city
State Tip
Please read A.R.S. § 4-203.02 Special event license: rules and R19-1-205 Requirements for a Special Event License.
Note: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY.
7/12/2018 Page 2 of 4
Individuals requiring ADA occommodations call (602)542-2999
5. What type of security and control measures will you take to prevent violations of liquor laws at this event?
(List type and number of poRce/security personnel and type of fencing or control barriers, if applicable.)
Number of Police Number of Security Personnel Fencing
Explanation:
SECTION 9 Dates and Hours of Event. Days must be consecutive but may not exceed 10 consecutive days.
See A.R.S. § 4-244(15) and (17) for legal hours of service.
DAY 1:
DAY 2:
DAY 3:
DAY 4:
DAY 5:
DAY 6:
DAY 7:
DAY 8:
DAY 9:
DAY 10:
PLEASE FILL OUTA SEPARATE APPLICATION FOR EACH "NON-CONSECUTIVE" DAY
Date
03/27/2019
Day of Week
Wednesday
Event Start
Time AM/PM
5:30 p.m.
License End
Time AM/PM
9:00 P.M.
Barriers
SECTION 11 License premises diagram. The licensed premises for your special event is the area in which you are
authorized to sell, dispense or serve alcoholic beverages under the provisions of your license. Please attach a diagram
of your special event licensed premises. Please show dimensions, serving areas, fencing, barricades, or other control
measures and security position.
ATTACH DIAGRAM
7/12/2018 Page 3 of 4
Individuals requiring ADA accommodations call (602)542-2999
SPECIAL EVENT LICENSED PREMISES DIAGRAM
(This diagram must be completed with this application)
Special Event Diagram: (Show dimensions, serving areas, and label type of enclosure and security positions.
NOTE: Show nearest cross streets, highway, or road if location doesn't have an address.
NWth
mtea Par"
81 Arm
t:C.2jc Yeet ; F.wn
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Fountain Hills Community Center,13001 N. LaMontana, Fountain Hills, AZ. Liquor service
will be in Ballroom 1, 2, 3, or 4 as designated by the Community Center staff. Security will be
posted in the lobby of the Community Center.
Fa
Please contact the local governing board for additional application requirements and submission deadlines. Additional
licensing fees may also be required before approval may be granted. For more information, please contact your local
jurisdiction.
LOCAL GOVERNING BOARD
Date Received:
M�Xur recommend ❑APPROVAL ❑ DISAPPROVAL
(Government o lclal) I
(rye)
On behalf of tow dam', l4,ik5
(CNy. Town, County) signature
DLLC USE ONLY
❑APPROVAL ❑DISAPPROVAL BY:
A.R.S. § 41-1030.
Gate Phone
DATE:
B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is
not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not
constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of
authority that specifically authorizes the requirement or condition.
D. THIS SECTION MAY BE ENFORCED IN A PRIVATE CIVIL ACTION AND RELIEF MAY BE AWARDED AGAINST THE STATE.
THE COURT MAY AWARD REASONABLE ATTORNEY FEES, DAMAGES AND ALL FEES ASSOCIATED WITH THE LICENSE
APPLICATION TO A PARTY THAT PREVAILS IN AN ACTION AGAINST THE STATE FOR A VIOLATION OF THIS SECTION.
E. A STATE EMPLOYEE MAY NOT INTENTIONALLY OR KNOWINGLY VIOLATE THIS SECTION. A VIOLATION OF THIS
SECTION IS CAUSE FOR DISCIPLINARY ACTION OR DISMISSAL PURSUANT TO THE AGENCY'S ADOPTED PERSONNEL POLICY.
F. THIS SECTION DOES NOT ABROGATE THE IMMUNITY PROVIDED BY SECTION 12-820.01 OR 12-820.02.
7/12/2018 Page 4 of 4
Individuals requiring ADA accommodations call (602)542-2999
Meeting Date: 10/16/2018
Agenda Type: Regular
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Type: Regular Session
Submitting Department: Community Services
Staff Contact Information: Corey Povar, Recreation Manager, 480-816-5170, cpovar@fh.az.gov
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF CONTRACT C2019-08, award to Dixie Green
Promotions for the Fountain Hills Farmers Market on the Avenue of the Fountains.
Applicant: Dixie Green
Applicant Contact Information: 602-789-7222
Owner: Dixie Green (Owner) Dixie Green Promotions
Owner Contact Information: 602-789-7222
Property Location: Christy Drive Phoenix, AZ 85029
Related Ordinance, Policy or Guiding Principle:
Staff Summary (background): The Farmers Market was previously held by several organizers and at the end of the 2017
season, the Town decided to operate this market on a contractual basis. Staff published a Request for Proposals and
received one response for running a weekly Farmers Market on the Avenue of the Fountains. The Town of Fountain Hills
will collect approximately $2000 of revenue each year from this market. The Farmers Market is held almost every
Thursday from 11:00 AM to 5:00 PM between the months of October and April in conjunction with Art on the Avenue. Staff
recommends that Town Council award the contract to Dixie Green Promotions for the weekly Farmers Market along the
Avenue of the Fountains.
Risk Analysis (options or alternatives with implications): If rejected, staff would have to re -publish the RFP and this
would cause major delays in the Farmers Market season for the 2018-2019 season.
Fiscal Impact (initial and ongoing costs; budget status): NIA
Budget Reference (page number): NIA
Funding Source: NA
If Multiple Funds utilized, list here:
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendation(s) by Board(s) or Commission(s): NIA
Staff Recommendation(s): Approve
List Attachment(s): RFP C2019-08; Dixie Green Promotions Proposal and Fee Proposal; one (1) Addendum to the Fee
Proposal in the form of a letter signed by Dixie Green; Contract C2018-09
SUGGESTED MOTION (for Council use): Move to approve the Farmers Market Contract as presented.
Page 1 of 2
Prepared by:,
Core- Recreation Manager 10/3/2018
Director's Approval:
Rachael Goodwin, Comm Services Director 10/3/2018
Approved:
ra . Miller, 1 wn Ma ager • 10/3/2018
Page 2 of 2
*
TOWN OF FOUNTAIN HILLS
COMMUNITY SERVICES DEPARTMENT
REQUEST FOR PROPOSALS
Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
SOLICITATION INFORMATION AND SELECTION SCHEDULE
Solicitation Title:
Solicitation Number:
Release Date:
Advertisement Dates:
Final Date for Inquires
Proposal Due Date and Time:
Target Town Council Award Date:
Anticipated Agreement Start Date:
Town Representative:
Farmers Market
C2019-08
August 21, 2018
August 22 and 29, 2018 — Fountain Hills Times
August 23 and 30, 2018 — Arizona Business Gazette
September 4, 2018
September 11, 2018
3:00 p.m. (local time, Phoenix, Arizona)
October 16, 2018
October 23, 2018
Corey Povar ccvovarAfh.az.gov
480-816-5170
In the event that a Vendor cannot be selected based solely on Proposals submitted, Oral
Interviews may be conducted at the Town's sole discretion.
** The Town of Fountain Hills reserves the right to amend the solicitation schedule as necessary.
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
TABLE OF CONTENTS
Section A Page
I. RFP Process, Award of Agreement A-1
II. Proposal Format; Scoring A-6
III. Oral Interviews; Scoring A-9
IV. Vendor Information Form A-10
Section B
Sample Professional Services Agreement B-1
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
PART I. RFP PROCESS; AWARD OF AGREEMENT
1.1 Purpose; Scone of Work. The Town of Fountain Hills (the "Town") is issuing
this Request For Proposals (this "RFP") seeking proposals ("Proposals") from qualified, licensed
firms ("Vendors") interested in providing professional services consisting of the provision of a
Farmers Market (the "Services"), as more particularly described in the Scope of Work attached
to the sample Professional Services Agreement as Exhibit B, and incorporated herein by
reference. In accordance with the Town's Procurement Code, the Town will accept sealed
Proposals for the Services specified in the Scope of Work.
1.2 Preparation/Submission of Proposal. Vendors are invited to participate in the
competitive selection process for the Services outlined in this RFP. Responding parties shall
review their Proposal submissions to ensure the following requirements are met.
A. Irregular or Non -responsive Proposals. The Town shall consider as
"irregular" or "non -responsive" and may reject any Proposal not prepared and submitted in
accordance with this RFP, or any Proposal lacking sufficient information to enable the Town to
make a reasonable determination of compliance to the minimum qualifications. Unauthorized
conditions, limitations, or provisions shall be cause for rejection. Proposals may be deemed non-
responsive at any time during the evaluation process, without limitation, if, in the sole opinion
of the Town Manager or authorized designee, any of the following are true:
(1) Vendor does not meet the minimum required skill, experience or
requirements to perform or provide the Services.
(2) Vendor has a past record of failing to fully perform or fulfill
contractual obligations.
(3) Vendor cannot demonstrate financial stability.
(4) Vendor's Proposal contains false, inaccurate or misleading
statements that, in the opinion of the Town Manager or authorized designee, are intended
to mislead the Town in its evaluation of the Proposal.
B. Submittal Quantities. Interested Vendors must submit one original and
four copies (five total submittals) of the Proposal. In addition, interested parties must submit
one original copy of the Proposal on a CD-ROM (or electronic media pre -approved in writing
by the Town) in printable Adobe or Microsoft Word format (or other format pre -approved in
writing by the Town). Failure to adhere to the submittal quantity criteria may result in the
Proposal being considered non -responsive.
C. Required Submittal. The Proposal shall be submitted with a cover letter
with an original ink signature by a person authorized to bind the Vendor. Proposals submitted
without a cover letter with an original ink signature by a person authorized to bind the Vendor
may be considered non -responsive. The Proposal shall be a maximum of fifteen pages to
address the Proposal criteria (excluding resumes and the Vendor Information Form, but
including the materials necessary to address project understanding, general information,
FEW
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
organizational chart, photos, tables, graphs, and diagrams). Each page side (maximum 8 1/2" x
11") with criteria information shall be counted. However, one page may be substituted with an
11" x 17" sheet of paper, folded to 8 1/2" x 11", showing a proposed project schedule or
organizational chart and only having information on one side. Cover, back, table of contents and
tabs may be used and shall not be included in the page count, unless they include additional
project -specific information or Proposal criteria responses. The minimum allowable font for the
Proposal is 11 pt, Arial or Times New Roman. Failure to adhere to the page limit, size and font
criteria may result in the Proposal being considered non -responsive. Telegraphic (facsimile),
electronic (e-mail) or mailgram Proposals will not be considered.
D. Vendor Responsibilities. All Vendors shall (1) examine the entire RFP,
(2) seek clarification of any item or requirement that may not be clear, (3) check all responses for
accuracy before submitting a Proposal and (4) submit the entire Proposal by the Proposal Due
Date and Time. Late Proposals will not be considered. A Vendor submitting a late Proposal
shall be so notified. Negligence in preparing a Proposal shall not be good cause for withdrawal
after the Proposal Due Date and Time.
E. Sealed Submittals. All Proposals shall be sealed and clearly marked with
the RFP number and title, (CS3022) Fountain Lake Aeration and Circulation Upgrades, on the
lower left hand corner of the mailing envelope. A return address must also appear on the outside
of the sealed Proposal. The Town is not responsible for the pre -opening of, post -opening of, or
the failure to open, any Proposals not properly addressed or identified.
F. Pricing. The Vendor shall submit the same number of copies of the Fee
Proposal as described in Subsection 1.2(B) (Submittal Quantities) in a separate, sealed envelope
enclosed with the Vendor's Proposal. Pricing shall be inclusive of all of the Services in the
Scope of Work as described in the Professional Services Agreement in Exhibit B.
G. Address. All Proposals shall be directed to the following address: Town
Clerk, 16705 East Avenue of the Fountains, Fountain Hills, Arizona 85268, or hand -delivered to
the Town Clerk's office by the Proposal Due Date and Time indicated on the cover page of this
RFP.
H. Pricing Errors. If price is a consideration and in case of error in the
extension of prices in the Proposal, the unit price shall govern. Periods of time, stated as number
of days, shall be calendar days.
I. Proposal Irrevocable. In order to allow for an adequate evaluation, the
Town requires the Proposal to be valid and irrevocable for 90 days after the Proposal Due Date
and Time indicated on the cover of this RFP.
J. Amendment/Withdrawal of Proposal. At any time prior to the specified
Proposal Due Date and Time, a Vendor (or designated representative) may amend or withdraw
its Proposal. Any erasures, interlineations, or other modifications in the Proposal shall be
initialed in original ink by the authorized person signing the Proposal. Facsimile, electronic (e-
mail) or mailgram Proposal amendments or withdrawals will not be considered. No Proposal
shall be altered, amended or withdrawn after the specified Proposal Due Date and Time.
A-2
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
1.3 Cost of Proposal Preparation. The Town does not reimburse the cost of
developing, presenting or providing any response to this solicitation. Proposals submitted for
consideration should be prepared simply and economically, providing adequate information in a
straightforward and concise manner. The Vendor is responsible for all costs incurred in
responding to this RFP. All materials and documents submitted in response to this RFP become
the property of the Town and will not be returned.
1.4 Inquiries.
A. Written Inquiries. Any question related to the RFP, including any part of
the Scope of Work, shall be directed to the Town Representative whose name appears on the
cover page of this RFP. Questions shall be submitted in writing by the date indicated on the
cover page of this RFP. In the event the Town offices are closed on the Final Date for Inquiries,
the Vendor may submit the question(s) to the Town Representative via e-mail or voicemail. Any
correspondence related to the RFP shall refer to the title and number, page and paragraph.
However, the Vendor shall not place the RFP number and title on the outside of any envelope
containing questions, because such an envelope may be identified as a sealed Proposal and may
not be opened until the Proposal Due Date and Time.
B. Inquiries Answered. Verbal or telephone inquiries directed to Town staff
will not be answered. Prior to the Proposal Due Date listed on the cover page of this RFP,
answers to properly and timely submitted questions received in writing or via e-mail will be
mailed, sent via facsimile and/or e-mailed to all parties who obtained an RFP package from the
Town and who legibly provided a mailing address, facsimile and/or e-mail address to the Town.
No questions, submitted in any form, will be answered after the Final Date for Inquiries.
C. Pre -Submittal Conference. A Pre -Submittal Conference may be held. If
scheduled, the date and time of this conference will be indicated on the cover page of this RFP.
This conference may be designated as mandatory or non -mandatory on the cover page of this
RFP. Additionally, if the Pre -Submittal Conference is designated as mandatory, failure to attend
may render that Vendor's Proposal non -responsive. Vendors are strongly encouraged to attend
those Pre -Submittal Conferences designated as non -mandatory. The purpose of this conference
will be to clarify the contents of this RFP in order to prevent any misunderstanding of the
Town's requirements. Any doubt as to the requirements of this RFP or any apparent omission or
discrepancy should be presented to the Town at this conference. The Town will then determine
if any action is necessary and may issue a written amendment or addendum to the RFP. Oral
statements or instructions will not constitute amendments or addenda to this RFP.
1.5 Addenda. Any addendum issued as a result of any change in this RFP shall
become part of the RFP and must be acknowledged in the Proposal submittal. Failure to indicate
receipt of the addendum may result in the Proposal being rejected as non -responsive. It shall be
the Vendor's responsibility to check for addenda issued to this RFP. Any addendum issued by the
Town with respect to this RFP will be available at:
Town of Fountain Hills Town Hall,
16705 East Avenue of the Fountains, Fountain Hills, Arizona 85268
Town of Fountain Hills website at: www.Ih.az.gov/bids.aspx
A-3
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
1.6 Payment Requirements; Payment Discounts. Any Proposal that requires payment
in less than 30 calendar days shall not be considered. Payment discounts of 30 calendar days or
less will not be deducted from the Proposal Price in determining the low Proposal. The Town
shall be entitled to take advantage of any payment discount offered, provided payment is made
within the discount period. Payment discounts shall be indicated on Price Sheet.
1.7 Federal Excise Tax, Transaction Privilege Tax. The Town is exempt from
Federal Excise Tax, including the Federal Transportation Tax. Transaction privilege tax, if any,
shall be included in the unit price for each line item. It shall not be considered a lump sum
payment item.
1.8 Public Record. All Proposals shall become the property of the Town and shall
become a matter of public record available for review, subsequent to the award notification, in
accordance with the Town's Procurement Code.
1.9 Confidential Information. If a Vendor believes that a Proposal or protest contains
information that should be withheld from the public record, a statement advising the RFP
Administrator of this fact shall accompany the submission and the information shall be clearly
identified. The information identified by the Vendor as confidential shall not be disclosed until
the Procurement Agent makes a written determination. The Procurement Agent shall review the
statement and information with the Town Attorney and shall determine in writing whether the
information shall be withheld. If the Town Attorney determines that it is proper to disclose the
information, the RFP Administrator shall inform the Vendor in writing of such determination.
1.10 Vendor Licensing and Registration. Prior to the award of the Agreement, the
successful Vendor shall be registered with the Arizona Corporation Commission and authorized
to do business in Arizona. The Vendor shall provide licensure information with the Proposal.
Corporations and partnerships shall be able to provide a Certificate of Good Standing from the
Arizona Corporation Commission. A Town of Fountain Hills business license is also required.
1.11 Certification. By submitting a Proposal, the Vendor certifies:
A. No Collusion. The submission of the Proposal did not involve collusion
or other anti -competitive practices.
B. No Discrimination. It shall not discriminate against any employee or
applicant for employment in violation of Federal Executive Order 11246.
C. No Gratuity. It has not given, offered to give, nor intends to give at any
time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special
discount, trip favor or service to a Town employee, officer or agent in connection with the
submitted Proposal. It (including the Vendor's employees, representatives, agents, lobbyists,
attorneys, and subcontractors) has refrained, under penalty of disqualification, from direct or
indirect contact for the purpose of influencing the selection or creating bias in the selection
process with any person who may play a part in the selection process, including the Selection
Committee, elected officials, the Town Manager, Assistant Town Managers, Department Heads,
and other Town staff. All contact must be addressed to the Town's Procurement Agent, except
for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to
W1
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
influence the selection process by any means shall void the submitted Proposal and any resulting
Agreement.
D. Financial Stability. It is financially stable, solvent and has adequate cash
reserves to meet all financial obligations including any potential costs resulting from an award of
the Agreement.
E. No Signature/False or Misleading Statement. The signature on the cover
letter of the Proposal and the Vendor Information Form is genuine and the person signing has the
authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or
signing either with a false or misleading statement, shall void the submitted Proposal and any
resulting Agreement.
F. Professional Services Agreement. In addition to reviewing and
understanding the submittal requirements, it has reviewed the attached sample Professional
Services Agreement including the Scope of Work and other Exhibits.
1.12 Award of Agreement.
A. Selection. A Selection Committee composed of representatives from the
Town will conduct the selection process according to the schedule listed on the cover page of
this RFP. Proposals shall be opened at the time and place designated on the cover page of this
RFP. The name of each Vendor and the identity of the RFP for which the Proposal was
submitted shall be publicly read and recorded in the presence of witnesses. PRICES SHALL
NOT BE READ. The Selection Committee shall award the agreement to the responsible and
responsive Vendor whose Proposal is determined, in writing, to be the most advantageous to the
Town and best meets the overall needs of the Town taking into consideration the evaluation
criteria set forth in this RFP. The amount of applicable transaction privilege or use tax of the
Town shall not be a factor in determining the most advantageous Proposal. After the Town has
entered into an Agreement with the successful Vendor, the successful Proposal and the scoring
documentation shall be open for public inspection.
B. Line Item Option. Unless the Proposal states otherwise, or unless
otherwise provided within this RFP, the Town reserves the right to award by individual line item,
by group of line items, or as a total, whichever is deemed most advantageous to the Town.
C. Multiple Award. The Town, at its sole discretion, may elect to enter into
Agreements with multiple Vendors who are qualified to provide the Services. The final terms
and conditions of the proposed Agreement will be negotiated by the Town with the successful
offerors.
D. Form of Agreement. The selected Vendor will be required to execute the
Town's standard Professional Services Agreement in a form acceptable to the Town Attorney. A
sample of the standard agreement is included with this RFP. If the Town is unsuccessful in
negotiating an Agreement with the highest -scoring Vendor, the Town may then negotiate with
the second, then third, highest -scoring Vendor until an Agreement is executed. Town Council
approval may be required. The Town reserves the right to terminate the selection process at any
time.
A-5
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
E. Waiver; Rejection; Reissuance. Notwithstanding any other provision of
this RFP, the Town expressly reserves the right to: (1) waive any immaterial defect or
informality, (2) reject any or all Proposals or portions thereof and (3) cancel or reissue an RFP.
F. Protests. Any Vendor may protest this RFP, the proposed award of an
Agreement, or the actual award of an Agreement. All protests will be considered in accordance
with the Town Procurement Code.
1.13 Offer. A Proposal is an offer to contract with the Town based upon the terms,
conditions and specifications contained in this RFP and the Vendor's responsive Proposal, unless
any of the terms, conditions, or specifications are modified by a written addendum or agreement
amendment. Provided, however, that no contractual relationship shall be established until the
Vendor has signed, and the Town has approved (including approval by Town Council, where
applicable) and properly executed, a professional services agreement between the Town and the
Vendor in the form acceptable to the Town Attorney. A sample Professional Services
Agreement is included herein.
PART IL PROPOSAL FORMAT; SCORING
2.1 Evaluation Process. Each submittal will be reviewed for compliance with the
Proposal requirements by the Selection Committee. If necessary, the Selection Committee may
conduct oral interviews with up to three of the highest ranked Vendors based upon the Proposal
submittal scoring.
2.2 Proposal Format and Scoring. Proposals shall be organized and submitted in the
format as outlined below. Failure to conform to the designated format, standards and minimum
requirements may result in a determination that the Proposal is non -responsive. Additionally, the
Selection Committee will evaluate and award points to each Proposal based upon the evaluation
criteria as outlined in this document. Points listed below are the maximum number of points
possible for each criteria; there is no minimum number that the Selection Committee must
award.
A. General Information - 15 pts.
(1) One page cover letter as described in Subsection 1.2(C) (Required
Submittal).
(2) Provide Vendor identification information. Explain the Vendor's
legal organization including the legal name, address, identification number and legal
form of the Vendor (e.g., partnership, corporation, joint venture, limited liability
company, sole proprietorship). If a joint venture, identify the members of the joint
venture and provide all of the information required under this section for each member.
If a limited liability company, provide the name of the member or members authorized to
act on the company's behalf. If the Vendor is a wholly owned subsidiary of another
company, identify the parent company. If the corporation is a nonprofit corporation,
provide nonprofit documentation. Provide the name, address and telephone number of
the person to contact concerning the Proposal.
SECTION A
TOWN OF FOUNTAIN HILLS
COMMUNITY SERVICES DEPARTMENT
(3) Identify the location of the Vendor's principal office and the local
work office, if different. Include any documentation that supports the Vendor's authority
to provide services in Arizona.
(4) Provide a general description of the Vendor's organization,
including years in business.
(5) Identify any contract or subcontract held by the Vendor or officers
of the Vendor that have been terminated within the last five years. Briefly describe the
circumstances and the outcome.
(6) Identify any claims arising from a contract which resulted in
litigation or arbitration within the last five years. Briefly describe the circumstances and
the outcome.
(7) Vendor Information Form (may be attached as separate appendix).
B. Experience and Qualifications of the Vendor - 30 pts.
(1) Provide a detailed description of the Vendor's experience in
providing similar services to municipalities or other entities of a similar size to the Town,
specifically relating experience with respect to the provision of a reoccurring Farmers
Market.
(2) Vendor must demonstrate successful completion of at least two
similar projects within the past 5 years. For the purpose of this Solicitation, "successful
completion" means completion of a project within the established schedule and budget
and "similar projects" resemble this project in size, nature and scope. Provide a list of at
least three organizations for which you successfully completed a similar project. This list
shall include, at a minimum, the following information:
(a) Name of company or organization.
(b) Contact name.
(c) Contact address, telephone number and e-mail address.
(d) Type of services provided.
(e) Dates of contract initiation and expiration.
These references will be checked, and it is Vendor's responsibility to
ensure that all information is accurate and current. Vendor authorizes the Town's
representative to verify all information from these references and releases all those
concerned from any liability in connection with the information they provide. Inability of
the Town to verify references shall result in the Proposal being considered non-
responsive.
(3) The Town's representative may conduct any investigation deemed
necessary to determine the Vendor's ability to perform the project. Vendors may be
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SECTION A
TOWN OF FOUNTAIN HILLS
COMMUNITY SERVICES DEPARTMENT
requested to submit additional documentation within 72 hours (or as specified) to assist
the Town in its evaluation.
C. Key Positions — 5 pts.
(1) Identify each key personnel member that will render services to the
Town including title and relevant experience required, including the proposed project
manager and project staff.
(2) Indicate the roles and responsibilities of each key position. Include
senior members of the Vendor only from the perspective of what their role will be in
providing services to the Town.
(3) If a subcontractor will be used for all work of a certain type,
include information on this subcontractor. A detailed plan for providing supervision
must be included.
(4) Attach a resume and evidence of certification, if any, for each key
personnel member and/or subcontractor to be involved in this project. Resumes should
be attached together as a single appendix at the end of the Proposal and will not count
toward the Proposal page limit. However, each resume shall not exceed two pages in
length.
D. Project Approach - 30 pts.
(1) Describe the Vendor's approach to performing the required
Services in the Scope of Work described in the Professional Services Agreement in
Exhibit B, and its approach to contract management, including its perspective and
experience on partnering, customer service, quality control, scheduling and staff.
(2) Describe any alternate approaches if it is believed that such an
approach would best suit the needs of the Town. Include rationale for alternate
approaches, and indicate how the Vendor will ensure that all efforts are coordinated with
the Town's Representatives.
E. Pricing - 20 pts.
Vendor shall submit the same number of copies of the Fee Proposal as described
in Subsection 1.2(F) (Pricing) with the Vendor's Proposal, with the signature of the
representative of the Vendor who is authorized to make such an offer. The Fee Proposal must
include what the Master Vendor (Organizer) is going to pay the Town to hold the Market from
October through April. The payment to the Town can be displayed as a percentage of the vendor
space fees or a flat fee to be paid. The Fee Proposal must also include what the Master Vendor is
going to charge for the vendor spaces in the Market.
Total Possible Points for Proposal: 100
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SECTION A
TOWN OF FOUNTAIN HILLS
COMMUNITY SERVICES DEPARTMENT
PART III. ORAL INTERVIEWS: SCORING
In the event that a Vendor cannot be selected based solely on the Proposals submitted, up to three
Vendors may be selected for oral interviews. The selected Vendors will be invited to participate
in discussions with the Selection Committee on the date indicated on the cover page of this RFP
and awarded points based upon the criteria as outlined below. Vendors may be given additional
information for these oral interviews. These discussions will relate less to the past experience
and qualifications already detailed in the Proposals and relate more to identification of the
Vendor's project approach and to an appraisal of the people who would be directly involved in
this Services for this RFP.
Oral Interview
50 Experience and Qualifications of the Vendor
10 Key Positions
40 Project Approach
100 Total Possible Points for Oral Interview
Total Points Possible for this RFP: 200
A-9
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
W. VENDOR INFORMATION FORM
By submitting a Proposal, the submitting Vendor certifies that it has reviewed the administrative
information and draft of the Professional Services Agreement's terms and conditions and, if
awarded the Agreement, agrees to be bound thereto.
VENDOR SUBMITTING PROPOSAL
PRINTED NAME AND TITLE
ADDRESS
CITY STATE ZIP
WEB SITE:
FEDERAL TAX ID NUMBER
AUTHORIZED SIGNATURE
TELEPHONE
DATE
E-MAIL ADDRESS:
FAX #
SMALL, MINORITY, DISADVANTAGED AND WOMEN -OWNED BUSINESS
ENTERPRISES (check appropriate item(s):
Small Business Enterprise (SBE)
Minority Business Enterprise (MBE)
Disadvantaged Business Enterprise (DBE)
Women -Owned Business Enterprise (WBE)
Has the Vendor been certified by any jurisdiction in Arizona as a minority or woman -owned
business enterprise?
If yes, please provide details and documentation of the certification.
A-10
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
THIS PROFESSIONAL SERVICES AGREEMENT (this "Agreement") is entered into
as of 2018, between the Town of Fountain Hills, an Arizona municipal
corporation (the "Town") and a(n)
(the "Consultant").
RECITALS
A. The Town issued a Request for Proposals, C2019-08 "Farmers Market" (the
"RFP"), a copy of which is on file in the Town Clerk's Office and incorporated herein by
reference, seeking proposals from vendors for the provision of a recurring Farmers Market (the
"Services").
B. The Consultant responded to the RFP by submitting a proposal (the "Proposal"),
attached hereto as Exhibit A and incorporated herein by reference, and the Town desires to enter
into an Agreement with the Consultant for the Services.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Town and the Consultant hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set
forth above and shall remain in full force and effect until October 22, 2019 (the "Initial Term"),
unless terminated as otherwise provided in this Agreement. After the expiration of the Initial
Term, this Agreement may be renewed for up to four successive one-year terms (each, a
"Renewal Term") if (i) it is deemed in the best interests of the Town, subject to availability and
appropriation of funds for renewal in each subsequent year, (ii) at least 30 days prior to the end
of the then -current term of this Agreement, the Consultant requests, in writing, to extend this
Agreement for an additional one-year term and (iii) the Town approves the additional one-year
term in writing (including any price adjustments approved as part of this Agreement), as
evidenced by the Town Manager's signature thereon, which approval may be withheld by the
Town for any reason. The Consultant's failure to seek a renewal of this Agreement shall cause
this Agreement to terminate at the end of the then -current term of this Agreement; provided,
however, that the Town may, at its discretion and with the agreement of the Consultant, elect to
waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s)
are collectively referred to herein as the "Term." Upon renewal, the terms and conditions of this
Agreement shall remain in full force and effect.
11341111111
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
2. Scope of Work. Consultant shall provide the Services as set forth in the Scope of
Work, attached hereto as Exhibit B and incorporated herein by reference.
3. Compensation. The Consultant shall pay the Town as set forth in the Fee
Proposal, attached hereto as Exhibit C and incorporated herein by reference.
4. Payments. The Consultant shall make payment to the Town within days of
each event and provide to the Town such documentation as the Town may require in sufficient
detail to justify the amount of the payment. Payments not timely remitted shall bear interest at
the rate of one percent (1 %) per month until paid.
5. Documents. All documents, including any intellectual property rights thereto,
prepared and submitted to the Town pursuant to this Agreement shall be the property of the
Town.
6. Consultant Personnel. Consultant shall provide adequate, experienced personnel,
capable of and devoted to the successful performance of the Services under this Agreement.
Consultant agrees to assign specific individuals to key positions. If deemed qualified, the
Consultant is encouraged to hire Town residents to fill vacant positions at all levels. Consultant
agrees that, upon commencement of the Services to be performed under this Agreement, key
personnel shall not be removed or replaced without prior written notice to the Town. If key
personnel are not available to perform the Services for a continuous period exceeding 30
calendar days, or are expected to devote substantially less effort to the Services than initially
anticipated, Consultant shall immediately notify the Town of same and shall, subject to the
concurrence of the Town, replace such personnel with personnel possessing substantially equal
ability and qualifications.
7. Inspection; Acceptance. All work shall be subject to inspection and acceptance
by the Town at reasonable times during Consultant's performance. The Consultant shall provide
and maintain a self -inspection system that is acceptable to the Town.
8. Licenses; Materials. Consultant shall maintain in current status all federal, state
and local licenses and permits required for the operation of the business conducted by the
Consultant. The Town has no obligation to provide Consultant, its employees or subcontractors
any business registrations or licenses required to perform the specific services set forth in this
Agreement. The Town has no obligation to provide tools, equipment or material to Consultant.
9. Performance Warranty. Consultant warrants that the Services rendered will
conform to the requirements of this Agreement and with the care and skill ordinarily used by
members of the same profession practicing under similar circumstances at the same time and in
the same locality.
10. Indemnification. To the fullest extent permitted by law, the Consultant shall
indemnify, defend and hold harmless the Town and each council member, officer, employee or
agent thereof (the Town and any such person being herein called an "Indemnified Party"), for,
from and against any and all losses, claims, damages, liabilities, costs and expenses (including,
lim
SECTION B
TOWN OF FOUNTAIN HILLS
DEPARTMENT
but not limited to, reasonable attorneys' fees, court costs and the costs of appellate proceedings)
to which any such Indemnified Party may become subject, under any theory of liability
whatsoever ("Claims"), insofar as such Claims (or actions in respect thereof) relate to, arise out
of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or
omissions, breach of contract, in connection with the work or services of the Consultant, its
officers, employees, agents, or any tier of subcontractor in the performance of this Agreement.
The amount and type of insurance coverage requirements set forth below will in no way be
construed as limiting the scope of the indemnity in this Section.
11. Insurance.
11.1 General.
A. Insurer Oualifications. Without limiting any obligations or
liabilities of Consultant, Consultant shall purchase and maintain, at its own expense,
hereinafter stipulated minimum insurance with insurance companies authorized to do
business in the State of Arizona pursuant to ARiz. REV. STAT. § 20-206, as amended, with
an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town.
Failure to maintain insurance as specified herein may result in termination of this
Agreement at the Town's option.
B. No Representation of Coverage Adequacy. By requiring insurance
herein, the Town does not represent that coverage and limits will be adequate to protect
Consultant. The Town reserves the right to review any and all of the insurance policies
and/or endorsements cited in this Agreement but has no obligation to do so. Failure to
demand such evidence of full compliance with the insurance requirements set forth in this
Agreement or failure to identify any insurance deficiency shall not relieve Consultant
from, nor be construed or deemed a waiver of, its obligation to maintain the required
insurance at all times during the performance of this Agreement.
C. Additional Insured. All insurance coverage, except Workers'
Compensation insurance and Professional Liability insurance, if applicable, shall name,
to the fullest extent permitted by law for claims arising out of the performance of this
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees as Additional Insured as specified under the respective coverage sections of
this Agreement.
D. Coverage Term. All insurance required herein shall be maintained
in full force and effect until all work or services required to be performed under the terms
of this Agreement are satisfactorily performed, completed and formally accepted by the
Town, unless specified otherwise in this Agreement.
E. Primary Insurance. Consultant's insurance shall be primary
insurance with respect to performance of this Agreement and in the protection of the
Town as an Additional Insured.
N.N
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
F. Claims Made. In the event any insurance policies required by this
Agreement are written on a "claims made" basis, coverage shall extend, either by keeping
coverage in force or purchasing an extended reporting option, for three years past
completion and acceptance of the services. Such continuing coverage shall be. evidenced
by submission of annual Certificates of Insurance citing applicable coverage is in force
and contains the provisions as required herein for the three-year period.
G. Waiver. All policies, except for Professional Liability, including
Workers' Compensation insurance, shall contain a waiver of rights of recovery
(subrogation) against the Town, its agents, representatives, officials, officers and
employees for any claims arising out of the work or services of Consultant. Consultant
shall arrange to have such subrogation waivers incorporated into each policy via formal
written endorsement thereto.
H. Policy Deductibles and/or Self -Insured Retentions. The policies
set forth in these requirements may provide coverage that contains deductibles or self -
insured retention amounts. Such deductibles or self -insured retention shall not be
applicable with respect to the policy limits provided to the Town. Consultant shall be
solely responsible for any such deductible or self -insured retention amount.
I. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Consultant shall execute written agreements with its
subcontractors containing the indemnification provisions set forth in this Agreement and
insurance requirements set forth herein protecting the Town and Consultant. Consultant
shall be responsible for executing any agreements with its subcontractors and obtaining
certificates of insurance verifying the insurance requirements.
J. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Consultant will provide the Town with suitable evidence of
insurance in the form of certificates of insurance and a copy of the declaration page(s) of
the insurance policies as required by this Agreement, issued by Consultant's insurance
insurer(s) as evidence that policies are placed with acceptable insurers as specified herein
and provide the required coverages, conditions and limits of coverage specified in this
Agreement and that such coverage and provisions are in full force and effect.
Confidential information such as the policy premium may be redacted from the
declaration page(s) of each insurance policy, provided that such redactions do not alter
any of the information required by this Agreement. The Town shall reasonably rely upon
the certificates of insurance and declaration page(s) of the insurance policies as evidence
of coverage but such acceptance and reliance shall not waive or alter in any way the
insurance requirements or obligations of this Agreement. If any of the policies required
by this Agreement expire during the life of this Agreement, it shall be Consultant's
responsibility to forward renewal certificates and declaration page(s) to the Town 30 days
prior to the expiration date. All certificates of insurance and declarations required by this
Agreement shall be identified by referencing the RFP number and title or this Agreement.
A $25.00 administrative fee shall be assessed for all certificates or declarations received
without the appropriate RFP number and title or a reference to this Agreement, as
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
applicable. Additionally, certificates of insurance and declaration page(s) of the
insurance policies submitted without referencing the appropriate RFP number and title or
a reference to this Agreement, as applicable, will be subject to rejection and may be
returned or discarded. Certificates of insurance and declaration page(s) shall specifically
include the following provisions:
(1) The Town, its agents, representatives, officers, directors,
officials and employees are Additional Insureds as follows:
(a) Commercial General Liability — Under Insurance
Services Office, Inc., ("ISO") Form CG 20 10 03 97 or equivalent.
(b) Auto Liability — Under ISO Form CA 20 48 or
equivalent.
(c) Excess Liability — Follow Form to underlying
insurance.
(2) Consultant's insurance shall be primary insurance with
respect to performance of this Agreement.
(3) All policies, except for Professional Liability, including
Workers' Compensation, waive rights of recovery (subrogation) against Town, its
agents, representatives, officers, officials and employees for any claims arising
out of work or services performed by Consultant under this Agreement.
(4) ACORD certificate of insurance form 25 (2014/01) is
preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the
phrases in the cancellation provision "endeavor to" and "but failure to mail such
notice shall impose no obligation or liability of any kind upon the company, its
agents or representatives" shall be deleted. Certificate forms other than ACORD
form shall have similar restrictive language deleted.
11.2 Required Insurance Coverage.
A. Commercial General Liability. Consultant shall maintain
"occurrence" form Commercial General Liability insurance with an unimpaired limit of
not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed
Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy
shall cover liability arising from premises, operations, independent contractors, products -
completed operations, personal injury and advertising injury. Coverage under the policy
will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof,
including but not limited to, separation of insured's clause. To the fullest extent allowed
by law, for claims arising out of the performance of this Agreement, the Town, its agents,
representatives, officers, officials and employees shall be cited as an Additional Insured
under ISO, Commercial General Liability Additional Insured Endorsement form CG 20
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
10 03 97, or equivalent, which shall read "Who is an Insured (Section II) is amended to
include as an insured the person or organization shown in the Schedule, but only with
respect to liability arising out of "your work" for that insured by or for you." If any
Excess insurance is utilized to fulfill the requirements of this subsection, such Excess
insurance shall be "follow form" equal or broader in coverage scope than underlying
insurance.
B. Vehicle Liability. Consultant shall maintain Business Automobile
Liability insurance with a limit of $1,000,000 each occurrence on Consultant's owned,
hired and non -owned vehicles assigned to or used in the performance of the Consultant's
work or services under this Agreement. Coverage will be at least as broad as ISO
coverage code "1" "any auto" policy form CA 00 01 12 93 or equivalent thereof. To the
fullest extent allowed by law, for claims arising out of the performance of this
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees shall be cited as an Additional Insured under ISO Business Auto policy
Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance
is utilized to fulfill the requirements of this subsection, such Excess insurance shall be
"follow form" equal or broader in coverage scope than underlying insurance.
C. Professional Liability. If this Agreement is the subject of any
professional services or work, or if the Consultant engages in any professional services or
work in any way related to performing the work under this Agreement, the Consultant
shall maintain Professional Liability insurance covering negligent errors and omissions
arising out of the Services performed by the Consultant, or anyone employed by the
Consultant, or anyone for whose negligent acts, mistakes, errors and omissions the
Consultant is legally liable, with an unimpaired liability insurance limit of $2,000,000
each claim and $2,000,000 annual aggregate.
D. Workers' Compensation Insurance. Consultant shall maintain
Workers' Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Consultant's employees engaged in the performance of
work or services under this Agreement and shall also maintain Employers Liability
Insurance of not less than $500,000 for each accident, $500,000 disease for each
employee and $1,000,000 disease policy limit.
11.3 Cancellation and Expiration Notice. Insurance required herein shall not
expire, be canceled, or be materially changed without 30 days' prior written notice to the Town.
12. Termination; Cancellation.
12.1 For Town's Convenience. This Agreement is for the convenience of the
Town and, as such, may be terminated without cause after receipt by Consultant of written notice
by the Town. Upon termination for convenience, Consultant shall be paid for all undisputed
services performed to the termination date.
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
12.2 For Cause. If either party fails to perform any obligation pursuant to this
Agreement and such party fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the non -defaulting party, such party will be in default. hi the event
of such default, the non -defaulting party may terminate this Agreement immediately for cause
and will have all remedies that are available to it at law or in equity including, without limitation,
the remedy of specific performance. If the nature of the defaulting party's nonperformance is
such that it cannot reasonably be cured within 30 days, then the defaulting party will have such
additional periods of time as may be reasonably necessary under the circumstances, provided the
defaulting party immediately (A) provides written notice to the non -defaulting party and (B)
commences to cure its nonperformance and thereafter diligently continues to completion the cure
of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of
such termination for cause, payment shall be made by the Town to the Consultant for the
undisputed portion of its fee due as of the termination date.
12.3 Due to Work Stoppaee. This Agreement may be terminated by the Town
upon 30 days' written notice to Consultant in the event that the Services are permanently
abandoned. In the event of such termination due to work stoppage, payment shall be made by
the Town to the Consultant for the undisputed portion of its fee due as of the termination date.
12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ.
REv. STAT. § 38-511. The Town may cancel this Agreement without penalty or further
obligations by the Town or any of its departments or agencies if any person significantly
involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the
Town or any of its departments or agencies is, at any time while this Agreement or any extension
of this Agreement is in effect, an employee of any other party to this Agreement in any capacity
or a consultant to any other party of this Agreement with respect to the subject matter of this
Agreement.
12.5 Gratuities. The Town may, by written notice to the Consultant, cancel this
Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future
employment, entertainment, gifts or otherwise, were offered or given by the Consultant or any
agent or representative of the Consultant to any officer, agent or employee of the Town for the
purpose of securing this Agreement. In the event this Agreement is canceled by the Town
pursuant to this provision, the Town shall be entitled, in addition to any other rights and
remedies, to recover and withhold from the Consultant an amount equal to 150% of the gratuity.
12.6 Agreement Subject to Appropriation. This Agreement is subject to the
provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REv. STAT. § 42-17106. The provisions of
this Agreement for payment of funds by the Town shall be effective when funds are appropriated
for purposes of this Agreement and are actually available for payment. The Town shall be the
sole judge and authority in determining the availability of funds under this Agreement and the
Town shall keep the Consultant fully informed as to the availability of funds for this Agreement.
The obligation of the Town to make any payment pursuant to this Agreement is a current
expense of the Town, payable exclusively from such annual appropriations, and is not a general
obligation or indebtedness of the Town. If the Town Council fails to appropriate money
sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding
MW
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
fiscal year, this Agreement shall terminate at the end of then -current fiscal year and the Town
and the Consultant shall be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. It is clearly understood that each party will act in
its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the
other. An employee or agent of one party shall not be deemed or construed to be the employee
or agent of the other for any purpose whatsoever. The Consultant acknowledges and agrees that
the Services provided under this Agreement are being provided as an independent contractor, not
as an employee or agent of the Town. Consultant, its employees and subcontractors are not
entitled to workers' compensation benefits from the Town. The Town does not have the
authority to supervise or control the actual work of Consultant, its employees or subcontractors.
The Consultant, and not the Town, shall determine the time of its performance of the services
provided under this Agreement so long as Consultant meets the requirements of its agreed Scope
of Work as set forth in Section 2 above and Exhibit B. Consultant is neither prohibited from
entering into other contracts nor prohibited from practicing its profession elsewhere. Town and
Consultant do not intend to nor will they combine business operations under this Agreement.
13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of
the State of Arizona and suit pertaining to this Agreement may be brought only in courts in
Maricopa County, Arizona.
13.3 Laws and Regulations. Consultant shall keep fully informed and shall at
all times during the performance of its duties under this Agreement ensure that it and any person
for whom the Consultant is responsible abides by, and remains in compliance with, all rules,
regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the
following: (A) existing and future Town and County ordinances and regulations; (B) existing and
future State and Federal laws; and (C) existing and future Occupational Safety and Health
Administration standards.
13.4 Amendments. This Agreement may be modified only by a written
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Consultant.
13.5 Provisions Required by Law. Each and every provision of law and any
clause required by law to be in this Agreement will be read and enforced as though it were
included herein and, if through mistake or otherwise any such provision is not inserted, or is not
correctly inserted, then upon the application of either party, this Agreement will promptly be
physically amended to make such insertion or correction.
13.6 Severability. The provisions of this Agreement are severable to the extent
that any provision or application held to be invalid by a Court of competent jurisdiction shall not
affect any other provision or application of this Agreement which may remain in effect without
the invalid provision or application.
RE
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
13.7 Entire Agreement; Intemretation; Parol Evidence. This Agreement
represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and
superseded by this Agreement. No representations, warranties, inducements or oral agreements
have been made by any of the parties except as expressly set forth herein, or in any other
contemporaneous written agreement executed for the purposes of carrying out the provisions of
this Agreement. This Agreement shall be construed and interpreted according to its plain
meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting
this Agreement. The parties acknowledge and agree that each has had the opportunity to seek
and utilize legal counsel in the drafting of, review of, and entry into this Agreement.
13.8 Assignment; Delegation. No right or interest in this Agreement shall be
assigned or delegated by Consultant without prior, written permission of the Town, signed by the
Town Manager. Any attempted assignment or delegation by Consultant in violation of this
provision shall be a breach of this Agreement by Consultant.
13.9 Subcontracts. No subcontract shall be entered into by the Consultant with
any other party to furnish any of the material or services specified herein without the prior
written approval of the Town. The Consultant is responsible for performance under this
Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely
manner pursuant to any subcontract shall be a material breach of this Agreement by Consultant.
13.10 Rights and Remedies. No provision in this Agreement shall be construed,
expressly or by implication, as waiver by the Town of any existing or future right and/or remedy
available by law in the event of any claim of default or breach of this Agreement. The failure of
the Town to insist upon the strict performance of any term or condition of this Agreement or to
exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or
the Town's acceptance of and payment for services, shall not release the Consultant from any
responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a
waiver of any right of the Town to insist upon the strict performance of this Agreement.
13.11 Attorneys' Fees. hi the event either party brings any action for any relief,
declaratory or otherwise, arising out of this Agreement or on account of any breach or default
hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys'
fees and reasonable costs and expenses, determined by the court sitting without a jury, which
shall be deemed to have accrued on the commencement of such action and shall be enforced
whether or not such action is prosecuted through judgment.
13.12 Liens. All materials or services shall be free of all liens and, if the Town
requests, a formal release of all liens shall be delivered to the Town.
13.13 Offset.
A. Offset for Damages. In addition to all other remedies at law or
equity, the Town may offset from any money due to the Consultant any amounts
Consultant owes to the Town for damages resulting from breach or deficiencies in
performance or breach of any obligation under this Agreement.
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
B. Offset for Delinquent Fees or Taxes. The Town may offset from
any money due to the Consultant any amounts Consultant owes to the Town for
delinquent fees, transaction privilege taxes and property taxes, including any interest or
penalties.
13.14 Notices and Requests. Any notice or other communication required or
permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S.
Mail, registered or certified, return receipt requested, to the address set forth below or (C) given
to a recognized and reputable overnight delivery service, to the address set forth below:
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: DICKENSON WRIGHT
CIO Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
Attn: Town Attorney
If to Consultant:
Attn:
or at such other address, and to the attention of such other person or officer, as any party may
designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed
received (A) when delivered to the party, (B) three business days after being placed in the U.S.
Mail, properly addressed, with sufficient postage or (C) the following business day after being
given to a recognized overnight delivery service, with the person giving the notice paying all
required charges and instructing the delivery service to deliver on the following business day. If
a copy of a notice is also given to a party's counsel or other recipient, the provisions above
governing the date on which a notice is deemed to have been received by a party shall mean and
refer to the date on which the party, and not its counsel or other recipient to which a copy of the
notice may be sent, is deemed to have received the notice.
13.15 Confidentiality of Records. The Consultant shall establish and maintain
procedures and controls that are acceptable to the Town for the purpose of ensuring that
information contained in its records or obtained from the Town or from others in carrying out its
obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or
employees, except as required to perform Consultant's duties under this Agreement. Persons
requesting such information should be referred to the Town. Consultant also agrees that any
09
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
information pertaining to individual persons shall not be divulged other than to employees or
officers of Consultant as needed for the performance of duties under this Agreement.
13.16 Records and Audit Rights. To ensure that the Consultant and its
subcontractors are complying with the warranty under subsection 13.17 below, Consultant's and
its subcontractor's books, records, correspondence, accounting procedures and practices, and any
other supporting evidence relating to this Agreement, including the papers of any Consultant and
its subcontractors' employees who perform any work or services pursuant to this Agreement (all
of the foregoing hereinafter referred to as "Records"), shall be open to inspection and subject to
audit and/or reproduction during normal working hours by the Town, to the extent necessary to
adequately pen -nit (A) evaluation and verification of any invoices, payments or claims based on
Consultant's and its subcontractors' actual costs (including direct and indirect costs and overhead
allocations) incurred, or units expended directly in the performance of work under this
Agreement and (B) evaluation of the Consultant's and its subcontractors' compliance with the
Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary
for the Town to audit Records as set forth in this subsection, Consultant and its subcontractors
hereby waive any rights to keep such Records confidential. For the purpose of evaluating or
verifying such actual or claimed costs or units expended, the Town shall have access to said
Records, even if located at its subcontractors' facilities, from the effective date of this Agreement
for the duration of the work and until three years after the date of final payment by the Town to
Consultant pursuant to this Agreement. Consultant and its subcontractors shall provide the Town
with adequate and appropriate workspace so that the Town can conduct audits in compliance
with the provisions of this subsection. The Town shall give Consultant or its subcontractors
reasonable advance notice of intended audits. Consultant shall require its subcontractors to
comply with the provisions of this subsection by insertion of the requirements hereof in any
subcontract pursuant to this Agreement.
13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT.
§ 41-4401, the Consultant and its subcontractors warrant compliance with all federal
immigration laws and regulations that relate to their employees and their compliance with the E-
verify requirements under ARIZ. REV. STAT. § 23-214(A). Consultant's or its subcontractors'
failure to comply with such warranty shall be deemed a material breach of this Agreement and
may result in the termination of this Agreement by the Town.
13.18 Israel. Consultant certifies that it is not currently engaged in, and agrees
for the duration of this Agreement that it will not engage in a "boycott," as that term is defined in
ARIZ. REV. STAT. § 35-393, of Israel.
13.19 Conflicting Terms. In the event of any inconsistency, conflict or
ambiguity among the terms of this Agreement, the Scope of Work, any Town -approved Purchase
Order, the Fee Proposal, the RFP and the Consultant's Proposal, the documents shall govern in
the order listed herein.
13.20 Non -Exclusive Contract. This Agreement is entered into with the
understanding and agreement that it is for the sole convenience of the Town. The Town reserves
the right to obtain like goods and services from another source when necessary.
B-11
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
13.21 Cooperative Purchasing. Specific eligible political subdivisions and
nonprofit educational or public health institutions ("Eligible Procurement Unit(s)") are permitted
to utilize procurement agreements developed by the Town, at their discretion and with the
agreement of the awarded Consultant. Consultant may, at its sole discretion, accept orders from
Eligible Procurement Unit(s) for the purchase of the Materials and/or Services at the prices and
under the terms and conditions of this Agreement, in such quantities and configurations as may
be agreed upon between the parties. All cooperative procurements under this Agreement shall be
transacted solely between the requesting Eligible Procurement Unit and Consultant. Payment for
such purchases will be the sole responsibility of the Eligible Procurement Unit. The exercise of
any rights, responsibilities or remedies by the Eligible Procurement Unit shall be the exclusive
obligation of such unit. The Town assumes no responsibility for payment, performance or any
liability or obligation associated with any cooperative procurement under this Agreement. The
Town shall not be responsible for any disputes arising out of transactions made by others.
[SIGNATURES ON FOLLOWING PAGES]
wj
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year first set forth above.
"Town"
TOWN OF FOUNTAIN HILLS,
an Arizona municipal corporation
Grady E. Miller, Town Manager
ATTEST:
Bevelyn J. Bender, Town Clerk
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
ss.
COUNTY OF MARICOPA )
On , 2017, before me personally appeared Grady E. Miller, the
Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose
identity was proven to me on the basis of satisfactory evidence to be the person who he claims to
be, and acknowledged that he signed the above document, on behalf of the Town of Fountain
Hills.
(Affix notary seal here)
Notary Public
B-13
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
ml
TOWN OF FOUNTAIN HILLS
SECTION B DEPARTMENT
"Consultant"
a(n)
M
N
Title:
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On , 2017, before me personally appeared
the of
a(n) whose identity was proven to me on the basis of
satisfactory evidence to be the person who he/she claims to be, and acknowledged that he/she
signed the above document on behalf of the
(Affix notary seal here)
Notary Public
B-15
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
[Consultant's Proposal]
See following pages.
16
EXHIBIT B
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
[Scope of Work]
See following page(s).
SCOPE OF WORK
C2019-08
Farmers Market
1. Farmers Market will be held every Thursday between the months of October and April,
with the exception of dates that conflict with currently scheduled events or programs,
including but not limited to, the second Thursday in November, Thanksgiving, and the
last Thursday in February.
2. Vendors within the Farmers Market must include as many locally grown ingredients as
possible and/or demonstrate a linkage to the Greater Phoenix region's evolving culture
and heritage.
3. Items allowed for sale, as Arizona law permits, shall include raw vegetables and fruits;
edible plants; eggs; honey; shelled peas and beans; cut, washed and unwashed, bagged
vegetables; nuts; garlic; spices; grains; herbs; bedding plants; herbal vinegars, pastries,
cookies, cakes, cheesecakes, chocolates, fruit syrups, jellies, jams, herbal and vegetable
spreads, pies, stuffed breads, fresh pasta, fresh juice and cider; raw and frozen meats
(beef, lamb, mutton, pork, goat); raw and frozen small poultry; raw and frozen game bird
and rabbit; raw and frozen fin fish and seafood (crustaceans, fish, turtle, alligator); live
seafood (shellfish, crustaceans, oysters); fluid milk and fresh dairy products; cheese;
canned and pickled products; cured sausage and meat are eligible.
4. Products within the Farmers Market may also include prepared foods that contain meat
and/or seafood and, nonfood value-added items (i.e., soaps, candles, cosmetics and
household products). Vendors are only permitted to sell items within their approved
category/categories.
5. All vendors shall allow The Town of Fountain Hills to inspect their booth at any time,
with or without notice, so as to maintain the integrity of the market.
6. Market organizer must provide a list of all vendors and their Fountain Hills business
license numbers along with expiration dates to the Town prior to the start of the Market.
This listing must be kept up-to-date throughout the market season.
7. The Farmers Market will be held on Thursdays during the months of October — April
from 11:00 am — 5:00 pm. Vendors will have 1.5 hours prior to start time to set up and
1.5 hours after the close of the market to break down their booths. The event areas is not
to be occupied by vendors before the allotted times.
8. Vendors are not permitted to park on the Avenue of the Fountains. The parking along the
avenue is for visitors of the market, local businesses, and surrounding amenities.
9. There is no clean up service provided, so please leave the park as you found it.
10. Staking in the park is not permitted; tents and tables must be held down with weights.
11. Advertising of the Farmers Market can be in the form of signs; the market organizer must
provide the Town with a signage map and description of the signs themselves. Signs are
only allowed to be installed during the event hours.
12. The Town of Fountain Hills will support the Farmers Market by allowing advertising
within park kiosks, online via Facebook and the town website, as well as the "In the
Loop" magazine.
13. The Farmers Market will have access to power along the Avenue as well as limited water
access.
14. Organizer of the market will provide the Town with a copy of the vendor contract that is
issued to all vendors within the market.
EXHIBIT C
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
[Fee Proposal]
See following page(s).
PHOENIX 77018-1 486865v1
Sept. 10, 2018
Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
RE: RFP proposal for Oct. -April, Every Thursday Farmers Market
CS3022 Fountain Lake Aeration and Circulation Upgrades
TO: Corey Povar, Town Representative
Introduction: Dixie Green of Dixie Green Promotions, sole
i
etorship. AZ. Tax License #21034156.
6hristy Dr., Phoenix, AZ. 85029.
I have lived at this address since 1972, original owner. My office
is out of my home and has been since 1978.
I have been self-employed full time as a promoter since 1978... doing Art
and Craft Shows, New Car Shows, RV -Boat and Manufactured Home
shows. Also the previous Farmers Market at Plaza Fountainside in Fountain
Hills.
Background: Over the decades, I've been promotion director of 4
shopping centers for many years, all at the same time, in Sun City/Sun City
West area ... when they were all owned and managed by Del Webb.
Designed flyers and advertising layouts for shopping center pages; placed
radio, TV and print adv. for promoting of events; did direct mail, coupon
flyers and brochures. About 16 years ago, I produced the "paid gate" RV &
Boat Show at Tucson Convention Center (100,000 sq.ft. building) for 14
years. Have also done shows in other states.
REFERENCES:
1. City of Flagstaff, AZ. Current contact is Claire Harper, Community
Events Supervisor 928-213-2311. email: charpergflagstaffaz.gov
I've done the Art and Craft show on May -Memorial weekend for over 20
years at The City park (Wheeler Park), located at Aspen and Humphrey
(Hwyl80 to Grand Canyon) in downtown Flagstaff. Park is right across
from City Hall. I also did an Aug. show for 20 years, but dropped it this
past year due to all the heavy rain & tough weather we always get in Aug.
in Flagstaff.
2. Town of Cave Creek, AZ. Town Permit person is Bambi Muller.
480-488-6609. email: bmullerna cave creek.ora
For over 20 years, I do many Art and Craft shows each year at Frontier
Town in Cave Creek. Bambi is the only Town permit person I've worked
with these past 20+ years.
3. Town of Fountain Hills, AZ. Current contact is Corey Povar.
480-816-5170 email: cpovargfh.az.gov Before Corey, I worked
with Rachael Goodwin. email: rgoodwinkfh.az.gov
The past 12 years, I do 3 Art and Craft shows at Plaza Fountainside...
one in Nov. and Feb, same time as Fountain Hills Great Fair and one
in Mar.,when they dye the fountain water green. I now also rent the
Town of Fountain Hills property next to Plaza Fountainside for more
exhibit space for the Nov. and Feb. shows, since The Plaza is mostly
full with regular exhibitors.
Last fall, 2017, I had to end the Farmers Market I was doing every Wed.
at The Plaza. The Market was into it's 3rd year, but not enough customers
came to support the vendors, even with all the advertising I did to promote
it. The Farmers Market was all food related with No art or craft. We were
up to 20 vendors at one time.
2of3 Az
Section A, page A-S, Project Approach:
If given approval to do the Fountain Hills Farmers Market, I will
immediately contact previous market exhibitors, get the word out
to others by phone/email, and hand distribute Farmers Market show
applications to other Farmers Markets.
Insurance: Dixie Green Promotions requires all exhibitors, for any
show, to provide a one million dollar liability insurance certificate,
naming Dixie Green Promotions as additional insured. This is on my
website, red insurance box, upper left hand corner.
Thank you for your time and consideration.
signature
Dixie Green
Dixie Green Promotions
-Christy Dr.
Phoenix, AZ. 85029
602-789-7222
www.dixiegreenpromotions.com
3of3 -P475
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FOUNTAIN HILLS FARMERS MARKET SHOW APPLICATON
Every Wed. (Nov -April)
Plaza Foantainside (located by the "Fountain')
12645 N. Saguaro Blvd, near Fountain Hills Blvd., 85268
Send completed BOTTOM HALF of application with photographs (if required) and all fees to:
Dixie Green Promotions, 3141 W. CHRISTy Drive Phoenix, AZ 85029 602-789-7222
More information and applications at www.dixiegreenpmmotions.com; e-mail inquiries to dixie@dixiegreeupromotions.eom
Show Information & Application Guidelines
1. Show Dates: Every WED. NO AUTOMATIC ROTATING OF BOOTH SPACES.
2017- Nov. 1, 8,15, 22, 29; Dec. 6,13, 20 (No Show Dec. 27)
2018: Jan. 3,10,1.7, 24, 31; Feb. 7,14, 21, 28; Mar. 7,14, 21, 28; Apr. 4,11,18, 25
2. Show Hours: Wed.: 9a.m. — 2p.m.
3. Booth Fee: 10x10 cost for each Wed. (only ONE application needed for the season, unless changes).
$20. - live perishable produce, foods and baked goods.
$25. — homemade canned foods, homemade soaps & lotions.
$30. — commercial accessory exhibits related to food / kitchen / health
4. Setup: 7a.m: 9a.m. Teardown: after 2pm
S. Local checks only if paid 7 days before show. Otherwise cashiers check or money orders 6. All exhibitors are required to have
a Fountain Hills Business license & it must be posted in booth. Applications are available at our website or call 480-816-5100:
vendors are responsible for obtaining their license and must show it at registration in order to setup. HEALTH LICENSE
MUST BE POSTED IN BOOTH. 7. In order to preserve the quality appearance of shows... All tents must be professionally made
(EZUp or better quality). All tables must be covered or draped to the ground. All booth areas must be kept neat and clean. Stored
items must be neatly put away, covered and not detract from the appearance of the show. No clearance or sale signs. 8: Vendors are
expected to keep all products, display items and booth materials within the area assigned to them. This includes umbrellas, racks,
chairs, tables, signs and anything else associated with the booth. 9. Bring dollies/carts: no driving into show area. Weights required
(No Stakes) to secure your tent. 10. No water or electricity available. 11. Unacceptable behavior, not fol lowing the Hiles &
misrepresentation of product may result in loss of space and all fees. Swearing, cursing & foul language will not be tolerated. 12. NO
PETS or CHILDREN. 13. Shows are smoke free: Smoking is not allowed in booths or in show area at any time including during show
hours and during setup/ teardown. Smokers go outside show area to smoke. No exceptions. 14. NO OUT OF STATE CHECKS.
LOCAL PHOENIX CHECKS ONLY. NO CHECKS ACCEPTED WITHIN 7 DAYS OF SHOW DATE: only cashiers check
or money orders ... NO EXCEPTIONS. 15. All shows are alcohol free and drug free, including during setup and,teardown.
Violations will result in loss of space and removal from show.16. INSURANCE: All exhibitors must provide a one million dollar
liability certificate naming Dixie Green Promotions as additional insured. (FAX 602-375-0696) or email.
here
cntnere---- ---....—_--------�.............
FOUNTAIN HILLS Farmers Market
WED:
Name (required):
Company. Name:
Address (required):
City, State, Zip (required):
Phone Number (required): ( )
w/message service
E-mail address:
Certificate of insurance 13
Arizona Tax License Number (required):
Fountain Hills license # :
Description of products (required):
Booth Fee:
Late Fee
if paid after 7 day deadline: $5
TOTAL ENCLOSED:
Make payable to DIXIE GREEN
(NOT Dixie Green Promotions)
I have read the Show Intormanon sna Appncarton ......... ------ __ ,
be responsible for any injuries or losses to you
Dixie Green Promotions & event workers, Playa Fountainside, property owners and managers & their members, will not
m your property for any reason
Exhibitor's Signature
2017-2018 Fountain Hills Farmers Market rev. 09/19/17
d? 5
TOWN OF FOUNTAIN HILLS
SECTION A COMMUNITY SERVICES DEPARTMENT
IV. VENDOR INFORMATION Ih ORIN
'By submitting a Proposal, the submitting Vendor certifies that it has reviewed the administrative
information and draft of the Professional Services Agreement's terms and conditions and, if
awarded the Agreement, agrees to be botuid thereto.
/tA/dam 6P�
-41
St1BMITTING PROPOSAL ice.
PRINTED NAME AND "ITLE
CITY STATE ZIP
WEB SITE:
TELFPI-IONE
c
DATE
E-MAII, .ADDRESS:
OCaX►e �-�JCt��ie� � �i�' Sa��rr1
SMALL, MINORITY, DISADVANTAGED AND WOMEN -OWNED BUSINESS
ENTERPRISES (check appropriate item(s)-
Small Business Enterprise (SBE) e ppoo ilefok—J
Minority Business Enterprise (MBE)
Disadvantaged Business Enterprise (DBE)
Women -Owned Business Enterprise (WBE)
Has the Vender been certified by any jurisdiction in Arizona as a minority or woman -owned
business enterprise?
If yes, please provide details and documentation of the certification.
A-10
Subject: Re: Town Business Licenses
From: Dixie Green <dgpromotions@cox.net>
Date: 11/19/2015 10:44 AM
To: Linda Kavanagh <Iavanagh@fh.az.gov>
Hi Mayor Linda,
Thank you for your kind email of appreciation. I've been in business 40 years and have a
clean reputation. No amount of money or talk will sway me into doing something wrong.
That would
put a black mark on my name and jeopardize the excellent working relationship and trust I
have
with any Town, business or exhibitor.
The exhibitor (Marsha Darre) did show up on Fri. a.m. to setup. I told her that The Town
did not have her down as getting a license and she could not setup. She did not respond to
my two phone calls and one email sent to her on Wed., reminding her to get license. She
said she mailed her
license money in and I told her they did not have it. So she left without incident.
It's a real pleasure doing shows in Fountain Hills!
Thank you,
Dixie
On 11/16/2015 4:29 PM, Linda Kavanagh wrote:
Dixie
On behalf of the town, thank you for the extra effort to ensure that every participant at your
market had secured a business license during the Chamber fair. We were told that one vendor
who refused to get a license was told that they could not participate.
The town very much appreciates your diligence and assistance in making sure that everyone
complied. It's a great partnership when we can work together like this.
Kindest regards,
Linda
Mayor Linda M Kavanagh
Town of Fountain Hills
-PV 07
Sept. 10, 2018
TO: Town of Fountain Hills
RE: PRICING: Oct. -April Every Thursday Farmers .Market for RFP Proposal
CS3022 Fountain Lake Aeration and Circulation Upgrades
Dixie Green of Dixie Green Promotions will pay the Town of Fountain Hills a flat fee of three
dollars ($3.00) per vendor, per weekly market, for vendors who exhibit at the Farmers Market.
Fees will be paid to The Town each week. Dixie Green Promotions will be charging each
vendor a $30, fee (thirty dollars) each time they exhibit at the Farmers Market. No taxes shall be
added to the $3_ fee paid to The Town of Fountain Hills. Each month, I file my tax report with
AZDOR and pay taxes for the town and county where the event took place.
r
signature
Dixie Green
Dixie Green Promotions
_Christy Dr.
Phoenix, AZ. 85029
602-789-7222
www. dixiegreeiipromotions. cam
�T.a1Ny!
TOWN OF FOUNTAIN HILLS
n� 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
r 480.816.5100 1 Fax 480.837.3145
r �r
Tuesday, October 2, 2018
Dear Dixie Green,
Based on our meeting on September 25u' we discussed the terms of your RFP for the
Farmers Market in Fountain Hills. Per our meeting, we discussed pricing, specifically what
you would pay the town to hold the market weekly during the months of October — April. The
Farmers Market will not take place if there is bad weather, Thanksgiving, and the weeks that
the Chamber Fair is going to be held and will not be responsible for the fee if the market is
not held.
Dates for 2018-19 include:
'L 1. October 25
2. November 1, 15, 29
3. December 6, 13, 20. 27
4. January 3, 10, 17, 24, 31
5. February 7, 14, 28
6. March 7, 28
7. April 4, 11
The proposed fees are as follows:
• Year 1 — Dixie Green shall pay the town $48 per weeks to hold the Farmers Market
• Year 2 and after — Dixie Green shall pay the town $93.75 per week to hold the
Farmers Market.
If you agree to the prop se fees ed bove, please sign here:
is fzJ/3��
Please return this signed document to a as soon as possible.
Thanks.
Sincerely,
Corey Povar, Recreation Manager
www.fh.az.gov
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
DIXIE GREEN PROMOTIONS
THIS PROFESSIONAL SERVICES AGREEMENT (this "Agreement") is entered into
as of October 25, 2018, between the Town of Fountain Hills, an Arizona municipal corporation
(the "Town") and Dixie Green Promotions, a(n) Arizona sole proprietorship (the "Vendor").
RECITALS
A. The Town issued a Request for Proposals, C2019-08 "Farmers Market" (the
"RFP"), a copy of which is on file in the Town Clerk's Office and incorporated herein by
reference, seeking proposals from vendors for the provision of a recurring Farmers Market (the
"Services").
B. The Vendor responded to the RFP by submitting a proposal (the "Proposal"),
attached hereto as Exhibit A and incorporated herein by reference, and the Town desires to enter
into an Agreement with the Vendor for the Services.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Town and the Vendor hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set
forth above and shall remain in full force and effect until October 25, 2019 (the "Initial Term"),
unless terminated as otherwise provided in this Agreement. After the expiration of the Initial
Term, this Agreement may be renewed for up to four successive one-year terms (each, a
"Renewal Term") if (i) it is deemed in the best interests of the Town, subject to availability and
appropriation of funds for renewal in each subsequent year, (ii) at least 30 days prior to the end
of the then -current term of this Agreement, the Vendor requests, in writing, to extend this
Agreement for an additional one-year term and (iii) the Town approves the additional one-year
term in writing (including any price adjustments approved as part of this Agreement), as
evidenced by the Town Manager's signature thereon, which approval may be withheld by the
Town for any reason. The Vendor's failure to seek a renewal of this Agreement shall cause this
Agreement to terminate at the end of the then -current term of this Agreement; provided,
however, that the Town may, at its discretion and with the agreement of the Vendor, elect to
waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s)
are collectively referred to herein as the "Term." Upon renewal, the terms and conditions of this
Agreement shall remain in full force and effect.
2. Scone of Work. Vendor shall provide the Services as set forth in the Scope of
Work, attached hereto as Exhibit B and incorporated herein by reference.
3. Compensation. The Vendor shall pay the Town as set forth in the Fee Proposal,
attached hereto as Exhibit C and incorporated herein by reference.
4. Payments. The Vendor shall make payment to the Town within 5 days before
each event and provide to the Town such documentation as the Town may require in sufficient
detail to justify the amount of the payment. Payments not timely remitted shall bear interest at
the rate of one percent (1%) per month until paid.
5. Documents. All documents, including any intellectual property rights thereto,
prepared and submitted to the Town pursuant to this Agreement shall be the property of the
Town.
6. Vendor Personnel. Vendor shall provide adequate, experienced personnel,
capable of and devoted to the successful performance of the Services under this Agreement.
Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is
encouraged to hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon
commencement of the Services to be performed under this Agreement, key personnel shall not
be removed or replaced without prior written notice to the Town. If key personnel are not
available to perform the Services for a continuous period exceeding 30 calendar days, or are
expected to devote substantially less effort to the Services than initially anticipated, Vendor shall
immediately notify the Town of same and shall, subject to the concurrence of the Town, replace
such personnel with personnel possessing substantially equal ability and qualifications.
7. Inspection; Acceptance. All work shall be subject to inspection and acceptance
by the Town at reasonable times during Vendor's performance. The Vendor shall provide and
maintain a self -inspection system that is acceptable to the Town.
8. Licenses; Materials. Vendor shall maintain in current status all federal, state and
local licenses and permits required for the operation of the business conducted by the Vendor.
The Town has no obligation tp provide Vendor, its employees or subcontractors any business
registrations or licenses required to perform the specific services set forth in this Agreement.
The Town has no obligation to provide tools, equipment or material to Vendor.
9. Performance Warranty. Vendor warrants that the Services rendered will conform
to the requirements of this Agreement and with the care and skill ordinarily used by members of
the same profession practicing under similar circumstances at the same time and in the same
locality.
10. Indemnification. To the fullest extent permitted by law, the Vendor shall
indemnify, defend and hold harmless the Town and each council member, officer, employee or
agent thereof (the Town and any such person being herein called an "Indemnified Party"), for,
from and against any and all losses, claims, damages, liabilities, costs and expenses (including,
but not limited to, reasonable attorneys' fees, court costs and the costs of appellate proceedings)
to which any such Indemnified Party may become subject, under any theory of liability
whatsoever ("Claims"), insofar as such Claims (or actions in respect thereof) relate to, arise out
of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or
omissions, breach of contract, in connection with the work or services of the Vendor, its officers,
employees, agents, or any tier of subcontractor in the performance of this Agreement. The
amount and type of insurance coverage requirements set forth below will in no way be construed
as limiting the scope of the indemnity in this Section.
11. Insurance.
11.1 General.
A. Insurer Qualifications. Without limiting any obligations or
liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter
stipulated minimum insurance with insurance companies authorized to do business in the
State of Arizona pursuant to ARtz. REv. STAT. § 20-206, as amended, with an AM Best,
Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to
maintain insurance as specified herein may result in termination of this Agreement at the
Town's option.
B. No Representation of Coverage Adequacy. By requiring insurance
herein, the Town does not represent that coverage and limits will be adequate to protect
Vendor. The Town reserves the right to review any and all of the insurance policies
and/or endorsements cited in this Agreement but has no obligation to do so. Failure to
demand such evidence of full compliance with the insurance requirements set forth in this
Agreement or failure to identify any insurance deficiency shall not relieve Vendor from,
nor be construed or deemed a waiver of, its obligation to maintain the required insurance
at all times during the performance of this Agreement.
C. Additional Insured. All insurance coverage, except Workers'
Compensation insurance and Professional Liability insurance, if applicable, shall name,
to the fullest extent permitted by law for claims arising out of the performance of this
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees as Additional Insured as specified under the respective coverage sections of
this Agreement.
D. Coverage Term. All insurance required herein shall be maintained
in full force and effect until all work or services required to be performed under the terms
of this Agreement are satisfactorily performed, completed and formally accepted by the
Town, unless specified otherwise in this Agreement.
E. Primary Insurance. Vendor's insurance shall be primary insurance
with respect to performance of this Agreement and in the protection of the Town as an
Additional Insured.
F. Claims Made. In the event any insurance policies required by this
Agreement are written on a "claims made" basis, coverage shall extend, either by keeping
coverage in force or purchasing an extended reporting option, for three years past
completion and acceptance of the services. Such continuing coverage shall be evidenced
by submission of annual Certificates of Insurance citing applicable coverage is in force
and contains the provisions as required herein for the three-year period.
G. Waiver. All policies, except for Professional Liability, including
Workers' Compensation insurance, shall contain a waiver of rights of recovery
(subrogation) against the Town, its agents, representatives, officials, officers and
employees for any claims arising out of the work or services of Vendor. Vendor shall
arrange to have such subrogation waivers incorporated into each policy via formal written
endorsement thereto.
H. Policy Deductibles and/or Self -Insured Retentions. The policies
set forth in these requirements may provide coverage that contains deductibles or self -
insured retention amounts. Such deductibles or self -insured retention shall not be
applicable with respect to the policy limits provided to the Town. Vendor shall be solely
responsible for any such deductible or self -insured retention amount.
I. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Vendor shall execute written agreements with its
subcontractors containing the indemnification provisions set forth in this Agreement and
insurance requirements set forth herein protecting the Town and Vendor. Vendor shall be
responsible for executing any agreements with its subcontractors and obtaining
certificates of insurance verifying the insurance requirements.
J. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Vendor will provide the Town with suitable evidence of insurance
in the form of certificates of insurance and a copy of the declaration page(s) of the
insurance policies as required by this Agreement, issued by Vendor's insurance insurer(s)
as evidence that policies are placed with acceptable insurers as specified herein and
provide the required coverages, conditions and limits of coverage specified in this
Agreement and that such coverage and provisions are in full force and effect.
Confidential information such as the policy premium may be redacted from the
declaration page(s) of each insurance policy, provided that such redactions do not alter
any of the information required by this Agreement. The Town shall reasonably rely upon
the certificates of insurance and declaration page(s) of the insurance policies as evidence
of coverage but such acceptance and reliance shall not waive or alter in any way the
insurance requirements or obligations of this Agreement. If any of the policies required
by this Agreement expire during the life of this Agreement, it shall be Vendor's
responsibility to forward renewal certificates and declaration page(s) to the Town 30 days
prior to the expiration date. All certificates of insurance and declarations required by this
Agreement shall be identified by referencing the RFP number and title or this Agreement.
A $25.00 administrative fee shall be assessed for all certificates or declarations received
without the appropriate RFP number and title or a reference to this Agreement, as
applicable. Additionally, certificates of insurance and declaration page(s) of the
insurance policies submitted without referencing the appropriate RFP number and title or
a reference to this Agreement, as applicable, will be subject to rejection and may be
returned or discarded. Certificates of insurance and declaration page(s) shall specifically
include the following provisions:
(1) The Town, its agents, representatives, officers, directors,
officials and employees are Additional Insureds as follows:
(a) Commercial General Liability — Under Insurance
Services Office, Inc., ("ISO") Form CG 20 10 03 97 or equivalent.
(b) Auto Liability — Under ISO Form CA 20 48 or
equivalent.
(c) Excess Liability — Follow Form to underlying
insurance.
(2) Vendor's insurance shall be primary insurance with respect
to performance of this Agreement.
(3) All policies, except for Professional Liability, including
Workers' Compensation, waive rights of recovery (subrogation) against Town, its
agents, representatives, officers, officials and employees for any claims arising
out of work or services performed by Vendor under this Agreement.
(4) ACORD certificate of insurance form 25 (2014/01) is
preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the
phrases in the cancellation provision "endeavor to" and "but failure to mail such
notice shall impose no obligation or liability of any kind upon the company, its
agents or representatives" shall be deleted. Certificate forms other than ACORD
form shall have similar restrictive language deleted.
11.2 Required Insurance Coverage
A. Commercial General Liability. Vendor shall maintain
"occurrence" form Commercial General Liability insurance with an unimpaired limit of
not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed
Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy
shall cover liability arising from premises, operations, independent contractors, products -
completed operations, personal injury and advertising injury. Coverage under the policy
will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof,
including but not limited to, separation of insured's clause. To the fullest extent allowed
by law, for claims arising out of the performance of this Agreement, the Town, its agents,
representatives, officers, officials and employees shall be cited as an Additional Insured
under ISO, Commercial General Liability Additional Insured Endorsement form CG 20
10 03 97, or equivalent, which shall read "Who is an Insured (Section II) is amended to
include as an insured the person or organization shown in the Schedule, but only with
respect to liability arising out of "your work" for that insured by or for you." If any
Excess insurance is utilized to fulfill the requirements of this subsection, such Excess
insurance shall be "follow form" equal or broader in coverage scope than underlying
insurance.
B. Vehicle Liability. Vendor shall maintain Business Automobile
Liability insurance with a limit of $1,000,000 each occurrence on Vendor's owned, hired
and non -owned vehicles assigned to or used in the performance of the Vendor's work or
services under this Agreement. Coverage will be at least as broad as ISO coverage code
"1" "any auto" policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent
allowed by law, for claims arising out of the performance of this Agreement, the Town,
its agents, representatives, officers, directors, officials and employees shall be cited as an
Additional hisured under ISO Business Auto policy Designated hnsured Endorsement
form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the
requirements of this subsection, such Excess insurance shall be "follow form" equal or
broader in coverage scope than underlying insurance.
C. Professional Liability. If this Agreement is the subject of any
professional services or work, or if the Vendor engages in any professional services or
work in any way related to performing the work under this Agreement, the Vendor shall
maintain Professional Liability insurance covering negligent errors and omissions arising
out of the Services performed by the Vendor, or anyone employed by the Vendor, or
anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally
liable, with an unimpaired liability insurance limit of $2,000,000 each claim and
$2,000,000 annual aggregate.
D. Workers' Compensation Insurance. Vendor shall maintain
Workers' Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Vendor's employees engaged in the performance of
work or services under this Agreement and shall also maintain Employers Liability
Insurance of not less than $500,000 for each accident, $500,000 disease for each
employee and $1,000,000 disease policy limit.
11.3 Cancellation and Expiration Notice. Insurance required herein shall not
expire, be canceled, or be materially changed without 30 days' prior written notice to the Town.
12. Termination; Cancellation.
12.1 For Town's Convenience. This Agreement is for the convenience of the
Town and, as such, may be terminated without cause after receipt by Vendor of written notice by
the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services
performed to the termination date.
12.2 For Cause. If either party fails to perform any obligation pursuant to this
Agreement and such party fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the non -defaulting party, such party will be in default. In the event
of such default, the non -defaulting party may terminate this Agreement immediately for cause
and will have all remedies that are available to it at law or in equity including, without limitation,
the remedy of specific performance. If the nature of the defaulting party's nonperformance is
such that it cannot reasonably be cured within 30 days, then the defaulting party will have such
additional periods of time as may be reasonably necessary under the circumstances, provided the
defaulting party immediately (A) provides written notice to the non -defaulting party and (B)
commences to cure its nonperformance and thereafter diligently continues to completion the cure
of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of
such termination for cause, payment shall be made by the Town to the Vendor for the undisputed
portion of its fee due as of the termination date.
12.3 Due to Work Stonnaee. This Agreement may be terminated by the Town
upon 30 days' written notice to Vendor in the event that the Services are permanently
abandoned. In the event of such termination due to work stoppage, payment shall be made by
the Town to the Vendor for the undisputed portion of its fee due as of the termination date.
12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ.
REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further
obligations by the Town or any of its departments or agencies if any person significantly
involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the
Town or any of its departments or agencies is, at any time while this Agreement or any extension
of this Agreement is in effect, an employee of any other party to this Agreement in any capacity
or a Vendor to any other party of this Agreement with respect to the subject matter of this
Agreement.
12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this
Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future
employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent
or representative of the Vendor to any officer, agent or employee of the Town for the purpose of
securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this
provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and
withhold from the Vendor an amount equal to 150% of the gratuity.
12.6 Agreement Subject to Annronriation. This Agreement is subject to the
provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REv. STAT. § 42-17106. The provisions of
this Agreement for payment of funds by the Town shall be effective when funds are appropriated
for purposes of this Agreement and are actually available for payment. The Town shall be the
sole judge and authority in determining the availability of funds under this Agreement and the
Town shall keep the Vendor fully informed as to the availability of funds for this Agreement.
The obligation of the Town to make any payment pursuant to this Agreement is a current
expense of the Town, payable exclusively from such annual appropriations, and is not a general
obligation or indebtedness of the Town. If the Town Council fails to appropriate money
sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding
fiscal year, this Agreement shall terminate at the end of then -current fiscal year and the Town
and the Vendor shall be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. It is clearly understood that each party will act in
its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the
other. An employee or agent of one party shall not be deemed or construed to be the employee
or agent of the other for any purpose whatsoever. The Vendor acknowledges and agrees that the
Services provided under this Agreement are being provided as an independent contractor, not as
an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to
workers' compensation benefits from the Town. The Town does not have the authority to
supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor,
and not the Town, shall determine the time of its performance of the services provided under this
Agreement so long as Vendor meets the requirements of its agreed Scope of Work as set forth in
Section 2 above and Exhibit B. Vendor is neither prohibited from entering into other contracts
nor prohibited from practicing its profession elsewhere. Town and Vendor do not intend to nor
will they combine business operations under this Agreement.
13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of
the State of Arizona and suit pertaining to this Agreement may be brought only in courts in
Maricopa County, Arizona.
13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all
times during the performance of its duties under this Agreement ensure that it and any person for
whom the Vendor is responsible abides by, and remains in compliance with, all rules,
regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the
following: (A) existing and future Town and County ordinances and regulations; (B) existing and
future State and Federal laws; and (C) existing and future Occupational Safety and Health
Administration standards.
13.4 Amendments. This Agreement may be modified only by a written
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Vendor.
13.5 Provisions Required by Law. Each and every provision of law and any
clause required by law to be in this Agreement will be read and enforced as though it were
included herein and, if through mistake or otherwise any such provision is not inserted, or is not
correctly inserted, then upon the application of either party, this Agreement will promptly be
physically amended to make such insertion or correction.
13.6 Severabilitv. The provisions of this Agreement are severable to the extent
that any provision or application held to be invalid by a Court of competent jurisdiction shall not
affect any other provision or application of this Agreement which may remain in effect without
the invalid provision or application.
13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement
represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and
superseded by this Agreement. No representations, warranties, inducements or oral agreements
have been made by any of the parties except as expressly set forth herein, or in any other
contemporaneous written agreement executed for the purposes of carrying out the provisions of
this Agreement. This Agreement shall be construed and interpreted according to its plain
meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting
this Agreement. The parties acknowledge and agree that each has had the opportunity to seek
and utilize legal counsel in the drafting of, review of, and entry into this Agreement.
13.8 Assignment; Delegation. No right or interest in this Agreement shall be
assigned or delegated by Vendor without prior, written permission of the Town, signed by the
Town Manager. Any attempted assignment or delegation by Vendor in violation of this
provision shall be a breach of this Agreement by Vendor.
13.9 Subcontracts. No subcontract shall be entered into by the Vendor with
any other party to furnish any of the material or services specified herein without the prior
written approval of the Town. The Vendor is responsible for performance under this Agreement
whether or not subcontractors are used. Failure to pay subcontractors in a timely manner
pursuant to any subcontract shall be a material breach of this Agreement by Vendor.
13.10 Rights and Remedies. No provision in this Agreement shall be construed,
expressly or by implication, as waiver by the Town of any existing or future right and/or remedy
available by law in the event of any claim of default or breach of this Agreement. The failure of
the Town to insist upon the strict performance of any term or condition of this Agreement or to
exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or
the Town's acceptance of and payment for services, shall not release the Vendor from any
responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a
waiver of any right of the Town to insist upon the strict performance of this Agreement.
13.11 Attorneys' Fees. In the event either party brings any action for any relief,
declaratory or otherwise, arising out of this Agreement or on account of any breach or default
hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys'
fees and reasonable costs and expenses, determined by the court sitting without a jury, which
shall be deemed to have accrued on the commencement of such action and shall be enforced
whether or not such action is prosecuted through judgment.
13.12 Liens. All materials or services shall be free of all liens and, if the Town
requests, a formal release of all liens shall be delivered to the Town.
13.13 Offset.
A. Offset for Damages. In addition to all other remedies at law or
equity, the Town may offset from any money due to the Vendor any amounts Vendor
owes to the Town for damages resulting from breach or deficiencies in performance or
breach of any obligation under this Agreement.
B. Offset for Delinciuent Fees or Taxes. The Town may offset from
any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees,
transaction privilege taxes and property taxes, including any interest or penalties.
13.14 Notices and Requests. Any notice or other communication required or
permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S.
Mail, registered or certified, return receipt requested, to the address set forth below or (C) given
to a recognized and reputable overnight delivery service, to the address set forth below:
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: Pierce Coleman PLLC
4711 East Falcon Drive, Suite 1 I 1
Mesa, Arizona 85215
Attn: Aaron D. Arnson, Town Attorney
If to Vendor: Dixie Green Promotions
-Christy Drive
Phoenix, Arizona 85029
Attn: Dixie Green, Owner
or at such other address, and to the attention of such other person or officer, as any party may
designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed
received (A) when delivered to the party, (B) three business days after being placed in the U.S.
Mail, properly addressed, with sufficient postage or (C) the following business day after being
given to a recognized overnight delivery service, with the person giving the notice paying all
required charges and instructing the delivery service to deliver on the following business day. If
a copy of a notice is also given to a party's counsel or other recipient, the provisions above
governing the date on which a notice is deemed to have been received by a party shall mean and
refer to the date on which the party, and not its counsel or other recipient to which a copy of the
notice may be sent, is deemed to have received the notice.
13.15 Confidentiality of Records. The Vendor shall establish and maintain
procedures and controls that are acceptable to the Town for the purpose of ensuring that
information contained in its retards or obtained from the Town or from others in carrying out its
obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or
employees, except as required to perform Vendor's duties under this Agreement. Persons
requesting such information should be referred to the Town. Vendor also agrees that any
information pertaining to individual persons shall not be divulged other than to employees or
officers of Vendor as needed for the performance of duties under this Agreement.
13.16 Records and Audit Rights. To ensure that the Vendor and its
subcontractors are complying with the warranty under subsection 13.17 below, Vendor's and its
subcontractor's books, records, correspondence, accounting procedures and practices, and any
other supporting evidence relating to this Agreement, including the papers of any Vendor and its
subcontractors' employees who perform any work or services pursuant to this Agreement (all of
the foregoing hereinafter referred to as "Records"), shall be open to inspection and subject to
audit and/or reproduction during normal working hours by the Town, to the extent necessary to
adequately permit (A) evaluation and verification of any invoices, payments or claims based on
Vendor's and its subcontractors' actual costs (including direct and indirect costs and overhead
allocations) incurred, or units expended directly in the performance of work under this
Agreement and (B) evaluation of the Vendor's and its subcontractors' compliance with the
Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary
for the Town to audit Records as set forth in this subsection, Vendor and its subcontractors
hereby waive any rights to keep such Records confidential. For the purpose of evaluating or
verifying such actual or claimed costs or units expended, the Town shall have access to said
Records, even if located at its subcontractors' facilities, from the effective date of this Agreement
for the duration of the work and until three years after the date of final payment by the Town to
Vendor pursuant to this Agreement. Vendor and its subcontractors shall provide the Town with
adequate and appropriate workspace so that the Town can conduct audits in compliance with the
provisions of this subsection. The Town shall give Vendor or its subcontractors reasonable
advance notice of intended audits. Vendor shall require its subcontractors to comply with the
provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant
to this Agreement.
13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT.
§ 41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration
laws and regulations that relate to their employees and their compliance with the E-verify
requirements under ARIZ. REV. STAT. § 23-214(A). Vendor's or its subcontractors' failure to
comply with such warranty shall be deemed a material breach of this Agreement and may result
in the termination of this Agreement by the Town.
13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for
the duration of this Agreement that it will not engage in a "boycott," as that term is defined in
ARIZ. REV. STAT. § 35-393, of Israel.
13.19 Conflicting Terms. In the event of any inconsistency, conflict or
ambiguity among the terms of this Agreement, the Scope of Work, any Town -approved Purchase
Order, the Fee Proposal, the RFP and the Vendor's Proposal, the documents shall govern in the
order listed herein.
13.20 Non -Exclusive Contract. This Agreement is entered into with the
understanding and agreement that it is for the sole convenience of the Town. The Town reserves
the right to obtain like goods and services from another source when necessary.
13.21 Cooperative Purchasing. Specific eligible political subdivisions and
nonprofit educational or public health institutions ("Eligible Procurement Unit(s)") are permitted
to utilize procurement agreements developed by the Town, at their discretion and with the
agreement of the awarded Vendor. Vendor may, at its sole discretion, accept orders from
Eligible Procurement Unit(s) for the purchase of the Materials and/or Services at the prices and
under the terms and conditions of this Agreement, in such quantities and configurations as may
be agreed upon between the parties. All cooperative procurements under this Agreement shall be
transacted solely between the requesting Eligible Procurement Unit and Vendor. Payment for
such purchases will be the sole responsibility of the Eligible Procurement Unit. The exercise of
any rights, responsibilities or remedies by the Eligible Procurement Unit shall be the exclusive
obligation of such unit. The Town assumes no responsibility for payment, performance or any
liability or obligation associated with any cooperative procurement under this Agreement. The
Town shall not be responsible for any disputes arising out of transactions made by others.
[SIGNATURES ON FOLLOWING PAGES]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year first set forth above.
"Town"
TOWN OF FOUNTAIN HILLS,
an Arizona municipal corporation
Grady E. Miller, Town Manager
ATTEST:
Elizabeth A. Burke, Town Clerk
APPROVED AS TO FORM:
Aaron D. Arnson, Town Attorney
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On , 2018, before me personally appeared Grady E. Miller, the
Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose
identity was proven to me on the basis of satisfactory evidence to be the person who he claims to
be, and acknowledged that he signed the above document, on behalf of the Town of Fountain
Hills.
Notary Public
(Affix notary seal here)
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
"Vendor"
Dixie Green Promotions,
a(n) Arizona sole proprietorship
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On 2018, before me personally appeared
the of
a(n) , whose identity was proven to me on the basis of
satisfactory evidence to be the person who he/she claims to be, and acknowledged that he/she
signed the above document on behalf of the
Notary Public
(Affix notary seal here)
4830-4376-0246v.2
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
DIXIE GREEN PROMOTIONS
[Vendor's Proposal]
See following pages.
Sept. 10, 2018
Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
RE: RF'P proposal for Oct. -April, Every Thursday Farmers Market
CS302), Fountain Lake Aeration and Circulation Upgrades
TO: Corey Povar, Town Representative
l nntroduc6ana Dixie Green of Dixie Green Promotions, sole
proprietorship. AZ. Tax License #21034156.
Horne address i Christy Dr., Phoenix, AZ. 85029.
I have lived at this address since 1972, original owner. My office
is out of my home and has been since 1978.
I have been self-employed full time as a promoter since 1978...doing Art
and Craft Shows, New Car Shoves, RV -Boat and Manufactured Horne
shows. Also the previous Farmers Market at Plaza Fountainside in Fountain
Hills.
Bac do Over the decades, I've been promotion director of 4
shopping centers for many years, all at the same time, in Sun City/Sun City
Test area ... when they were all owned and managed by Del Webb.
Designed flyers and advertising layouts for shopping center pages; placed
radio, TV and print adv. for promoting of events; did direct mail, coupon
flyers and brochures. About 16 years ago, I produced the "paid gate" RAT &
Boat Show at Tucson Convention Center (100,000 sq.ft. building) for 14
years. Have also done shows in other states.
REFERENCES:
1. City of Flagstaff, AZ. Current contact is Claire Harper, Community
Events Supervisor 928-213-2311. email: charpernflagstaffaz.gov
I've done the Art and Craft show on May -Memorial weekend for over 20
years at The City park (Wheeler Park), located at Aspen and Humphrey
(Hwy180 to Grand Canyon) in downtown Flagstaff. Park is right across
from City Hall. I also did an Aug. show for 20 years, but dropped it this
past year due to all the heavy rain & tough weather we always get in Aug.
in Flagstaff.
2. Town of Cave Creek, AZ. Town Permit person is Bambi Muller.
480-488-6609. email: bmuller(a-)cave creek.org
For over 20 years, I do many Art and Craft shows each year at Frontier
Town in Cave Creek. Bambi is the only Town permit person I've worked
with these past 20+ years.
3. Town of Fountain HiIls, AZ. Current contact is Corey Povar.
480-816-5170 email: cpovar(a,fh.az.gov Before Corey, I worked
with Rachael Goodwin. email: rgoodwin(iUh.az.gov
The past 12 years, I do 3 Art and Craft shows at Plaza Fountainside...
one in Nov. and Feb, same time as Fountain Hills Great Fair and one
in Mar.,when they dye the fountain water green. I now also rent the
Town of Fountain Hills property next to Plaza Fountainside for more
exhibit space for the Nov. and Feb. shows, since The Plaza is mostly
full with regular exhibitors.
Last fall, 2017, I had to end the Farmers Market I was doing every Wed.
at The Plaza. The Market was into it's 3rd year, but not enough customers
came to support the vendors, even with all the advertising I did to promote
it. The Farmers Market was all food related with No art or craft. We were
up to 20 vendors at one time.
2of3 T42
Section A, page A-8, Project Approach:
If given approval to do the Fountain Hills Farmers Market, I will
immediately contact previous market exhibitors, get the word out
to others by phone/email, and hand distribute Farmers Market show
applications to other Farmers Markets.
Insurance: Dixie Green Promotions requires all exhibitors, for any
show, to provide a one million dollar liability insurance certificate,
naming Dixie Green Promotions as additional insured. This is on my
website, red insurance box, upper left hand corner.
Thank you for your time and consideration.
�1
r'� r
SI ature
Dixie Green
Dixie Green Promotions
hristy Dr.
Phoenix, AZ. 85029
602-789-7222
www.dixiegeeULomotions.com
romotions.com
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FOUNTARV mmLS FARMERS MARIE ET SHOW APPLICATON i��
Every Wed. (Nov -April) !� -
Plaza Fountainside (located by the "Fotmtain")
12645 N. Saguaro Blvd. near Fountain Hills Blvd., 85268 p" i
Send completed BOTTOM HALF of application with phomgraphs (if required) and all fees m. s
Dixie Green Promotions, 3141 W. CMSTy Drive Phoenix, AZ 85029 602-789-7222
Mom information and applications at www.dixiegreenpromotions.com; e-mail inquiries to dixic@dixiegmempromotions.com
Show Information & Application Guidelines
1. Show Dates: Every WED. NO AUTOMATIC ROTATING OF BOOTH SPACES.
2017: Nov. 1, 8,15, 22, 29; Dec. 6,13, 20 (No Show Dec. 27)
2018: Jan.3,10,17,24,31; Feb.7,14,21,28; Mar.7,14,21,28; Apr.4,11,18,25
2. Show Hours: Wed.: 9a.m. — 2p.m.
3. Booth Fee: loxl0 cost for each Wed. (only ONE application needed forthe season, unless changes).
S20. — live perishable produce, foods and baked goods.
$25. — homemade canned foods, homemade soaps & ]Orions.
$30. — commercial accessory exhibits related to food / kitchen I health
4. Setup: lam: 9a.m. Teardown: after 2pm
5. Local checks only if paid 7 days before show. Otherwise cashiers check or money orders 6. Ail exhibitors ate required to have
a Fountain Hills Business license & it must be posted in booth. Applications are available at our website or call 4W816-5100:
vendors are responsible for obtaining their license and mast show it at registration in order to setup. HEALTH LICENSE
MUST BE POSTED IN BOOTH. 7. In order to preserve the quality appearance of shows... All tents must be Professionally made
(EZUp or better quality). All tables must be covered or draped to the ground. All booth areas must be kept neat and clean. Stored
hems must be neatly put away, covered and not detract from the appearance of the show. No clearance or sale signs. S. Vendors are
expected to keep all products, display hems and booth materials within the area assigned to them. This includes umbrellas, racks,
chairs, tables, signs and anything else associated with the booth. 9. Bring dollies/carts: no driving into show area. Weights required
(No Stakes) to secure your tent. 10. No water or electricity avai lab]e.11. Unacceptable behavior, not following the rules &
misrepresentation of product may result in loss of space and all fees. Swearing, cursing & foul language will not be tolerated. 12. NO
PETS or CHILDREN. 13. Shows are smoke free: Smoking is not allowed in booths or in show area at any time including during show
hours and during setup/ teardown. Smokers go outside show area to smoke. No exceptions. 14. NO OUT OF STATE CHECKS.
LOCAL PHOENIX CHECKS ONLY. NO CHECKS ACCEPTED WITHIN 7 DAYS OF SHOW DATE: only cashiers cheek
or money orders ... NO EXCEPTIONS. 15. All shows are alcohol time and drug free, including during setup and teardown.
Violations will result in loss of space and removal from show. 16. INSURANCE: All exhibitors must provide a one million dollar
liability certificate naming Dixie Green Promotions as additional insured. (FAX 602-375-0696) or email.
___rot here
Cut here
FOUNTAIN HILLS Farmers Market
WED:
Name (required):
Company Name:
Address (required):
City, State, Zip (required):
Phone Number (required): ( )
wlmessage service
E-mail address:
Certificate of insurance 13
Arizona Tax License Number (required):
^� Fountain Hills license # :
Description of products (required):
Booth Fee:
Late Fee If paid a(ta 7 day deadline SS
TOTAL ENCLOSED: Make payable t
en rGREEN _
een Promotions)
(NOT Dixfe Green
_..0 '._ e,d,d, r �.,, annlvma for 1 understand
+
end emcee to ali die terms they contain.
1 hem reed me Snow mmmtanon and nppuen...............W
Dixie Green Promotions & event workers, Plain Fauntainsidc, prop rn owneand mar mason
i members, will not be responsible for any injuries or losses t you
Youproperty
5xhibitor's Signature
2017-2018 Fountain Hills Farmers Market rev 09/19/17
r4o 5
SECTION A
TOWN OF FOUNTAIN HILLS
COMMUNITY SERVICES DEPARTMENT
CV. VENDOR INFORMATION FORM
By submitting a Proposal. the submitting Vendor certifies that it has reviewed the administrative
inforniation and draft of die Professional Services Agreement's terms and conditions and, if
awarded the Agreement, agrees to be bound thereto
�V)d'
VR4"@R SUBMITTING PROPOSAL.
PRINTED NAME AND fITLE
ADDRESS
CITY STATE ZIP
WEB SITE:
'TOM
A
GNA
60- 2- ---
TELEPHONE
DATE
P-MAIL ADDRESS:
.j)(i C'_ vTla Sa
SMALL, MINORITY, DISADVANTAGED AND WOMEN -OWNED BUSINESS
ENTERPRISES (check appropriate itern(s):
Small Business Enterprise (SBE) 6'got' ppgaJetor-J
Minority Business Enterprise (MBE)
Disadvantaged Business Enterprise (DBE)
Women -Owned Business Enterprise (WBE)
Has the Vendor been certified by any jurisdiction in Arizona as a minority or woman -owned
business enterprise7#0
If'yes, please provide details and documentation of the certification.
A-10
Subjedo Re: Town Business Licenses
From-, Dixie Green <dgpromotions@cox.net>
Detee 11/19/2015 10:44 AM
-
To.- Linda Kavanagh <Iavanagh@fh.az.gov>
Hi Mayor Linda,
Thank you for your kind email of appreciation. I've been in business 40 years and have a
clean reputation. No amount of money or talk will sway me into doing something wrong.
That would
put a black mark on my name and jeopardize the excellent working relationship and trust g
have
with any Town, business or exhibitor.
The exhibitor (Marsha Barre) did show up on Fri. a.m. to setup. I told her that The Town
did not have her down as getting a license and she could not setup. She did not respond to
my two phone calls and one email sent to her on Wed., reminding her to get license. she
said she mailed her
license money in and I told her they did not have it. so she left without incident.
It's a real pleasure doing shows in Fountain Hills!
Thank you,
Dixie
on 11/16/2015 4:29 PM, Linda Kavanagh wrote:
Dixie
On behalf of the town, thank you for the extra effort to ensure that every participant at your
market had secured a business license during the Chamber fair. We were told that one vendor
who refused to get a license was told that they could not participate.
The town very much appreciates your diligence and assistance in making sure that everyone
complied. It's a great partnership when we can work together like this.
Kindest regards,
Linda
Mayor Linda M Kavanagh
Town of Fountain Hills
EXHIBIT B
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
DIXIE GREEN PROMOTIONS
[Scope of Work]
See following page(s).
SCOPE OF WORK
C2019-08
Farmers Market
1. Farmers Market will be held every Thursday between the months of October and April,
with the exception of dates that conflict with currently scheduled events or programs,
including but not limited to, the second Thursday in November, Thanksgiving, and the
last Thursday in February.
2. Vendors within the Farmers Market must include as many locally grown ingredients as
possible and/or demonstrate a linkage to the Greater Phoenix region's evolving culture
and heritage.
3. Items allowed for sale, as Arizona law permits, shall include raw vegetables and fruits;
edible plants; eggs; honey; shelled peas and beans; cut, washed and unwashed, bagged
vegetables; nuts; garlic; spices; grains; herbs; bedding plants; herbal vinegars, pastries,
cookies, cakes, cheesecakes, chocolates, fruit syrups, jellies, jams, herbal and vegetable
spreads, pies, stuffed breads, fresh pasta, fresh juice and cider; raw and frozen meats
(beef, lamb, mutton, pork, goat); raw and frozen small poultry; raw and frozen game bird
and rabbit; raw and frozen fin fish and seafood (crustaceans, fish, turtle, alligator); live
seafood (shellfish, crustaceans, oysters); fluid milk and fresh dairy products; cheese;
canned and pickled products; cured sausage and meat are eligible.
4. Products within the Farmers Market may also include prepared foods that contain meat
and/or seafood and, nonfood value-added items (i.e., soaps, candles, cosmetics and
household products). Vendors are only permitted to sell items within their approved
category/categories.
5. All vendors shall allow The Town of Fountain Hills to inspect their booth at any time,
with or without notice, so as to maintain the integrity of the market.
6. Market organizer must provide a list of all vendors and their Fountain Hills business
license numbers along with expiration dates to the Town prior to the start of the Market.
This listing must be kept up-to-date throughout the market season.
7. The Farmers Market will be held on Thursdays during the months of October — April
from 11:00 am — 5:00 pm. Vendors will have 1.5 hours prior to start time to set up and
1.5 hours after the close of the market to break down their booths. The event areas is not
to be occupied by vendors before the allotted times.
8. Vendors are not permitted to park on the Avenue of the Fountains. The parking along the
avenue is for visitors of the market, local businesses, and surrounding amenities.
9. There is no clean up service provided, so please leave the park as you found it.
10. Staking in the park is not permitted; tents and tables must be held down with weights.
11. Advertising of the Farmers Market can be in the form of signs; the market organizer must
provide the Town with a signage map and description of the signs themselves. Signs are
only allowed to be installed during the event hours.
12. The Town of Fountain Hills will support the Farmers Market by allowing advertising
within park kiosks, online via Facebook and the town website, as well as the "In the
Loop" magazine.
13. The Farmers Market will have access to power along the Avenue as well as limited water
access.
14. Organizer of the market will provide the Town with a copy of the vendor contract that is
issued to all vendors within the market.
EXHIBIT C
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
DIXIE GREEN PROMOTIONS
[Fee Proposal]
See following page(s).
�M1 A1N 6
�6° `� TOWN OF FOUNTAIN HILLS
e16705 E. Avenue of the Fountains. Fountain Hills, AZ 85268
sev, J 460.$16. 5100 1 Fax 480 837.3145
�4's,r~ •°'� Tuesday, October 2, 2018
Dear Dixie Green,
Based on our meeting on September 250 we discussed the terms of your RFP for the
Farmers Market in Fountain Hills. Per our meeting, we discussed pricing, specifically what
you would pay the town to hold the market weekly during the months of October — April. The
Farmers Market will not take place if there is bad weather, Thanksgiving, and the weeks that
the Chamber Fair is going to be held and will not be responsible for the fee 9 the market Is
not held.
Dates for 2018-19 include:
992 1. October 25
2. November 1, 15, 29
3. December 6, 13, 20, 27
4. January 3, 10, 17. 24, 31
5. February 7, 14, 28
6. March 7, 28
7. April 4, 11
The proposed fees are as follows.
• Year 1 —Dixie Green shell pay the town $48 per weeks to hold the Farmers Market
• Year 2 and after — Dixie Green shall pay the town $93.75 per week to hold the
Farmers Market.
It you agree to the prologsep fees ad bove, please sign here
Please return this signed document to a as soon as possible.
Thanks
Sincerely,
Corey Povar, Recreation Manager
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Meeting Date: 10/16/2018
Agenda Type: Regular
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Type: Regular Session
Submitting Department: Community Services
Staff Contact Information: Rachael Goodwin, Community Services Director, 480-816-5135
REQUEST TO COUNCIL (Agenda Language): CONSIDERATION OF First Amendment of Professional Services
Agreement (C2018-080.01) with Kompan Inc. in the amount of $150,000 for the purchase of playground equipment in
conjunction with the Four Peak Park improvements.
Applicant:
Applicant Contact Information:
Owner:
Owner Contact Information:
Property Location:
Related Ordinance, Policy or Guiding Principle: NA
Staff Summary (background): The Community Services staff has been working to develop a phased approach to the
Four Peak Park playground redevelopment. With this approach, staff is looking to purchase play structures, equipment,
site accessories and related products as a continuation of the Four Peak Park improvements.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs; budget status): $150,000
Budget Reference (page number):
Funding Source: Facilities Replacement Fund
If Multiple Funds utilized, list here:
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendation(s) by Board(s) or Commission(s):
Staff Recommendation(s): NA
List Attachment(s): NA
SUGGESTED MOTION (for council use): MOVE to approve First Amendment of Professional Services Agreement
(C2018-080.01) with Kompan, Inc. in the amount of $150,000.
Page 1 of 2
Approved:
Grady E. Miller, Town an 10/g/2018
Page 2 of 2
Contract No. C2018-080.01
FIRST AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
KOMPAN INC.
THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this
"First Amendment") is entered into as of October 16, 2018, between the Town of Fountain Hills,
an Arizona municipal corporation (the "Town"), and Kompan, Inc., a Delaware corporation (the
"Contractor").
RECITALS
A. The Town and the Contractor entered into a Professional Services Agreement
dated December 20, 2017, as amended by Change Order No. 1, dated August 15, 2018
(collectively, "Agreement") for the Contractor to provide the Town with playground equipment,
outdoor fitness equipment, surfacing, site accessories and related products (the "Materials and
Services").
B. All capitalized terms not otherwise defined in this First Amendment have the
same meanings as contained in the Agreement.
C. The Town has determined that additional Materials and Services from the
Contractor are necessary (the "Additional Services").
D. The Town and the Contractor desire to enter into this First Amendment to extend
the term of the Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Town and the Contractor hereby agree as follows:
1. Term of the Agreement. Notwithstanding any provision to the contrary, the
Agreement shall remain in full force and effect for one year until October 15, 2019 unless
terminated as otherwise provided pursuant to the terms and conditions of the Agreement.
2. Compensation. The Town shall pay Contractor $150,000.00 for the Additional
Services at the rates set forth in the Agreement, resulting in an increase of the aggregate not -to -
exceed compensation from $ 91,053.51 to $ 241,053.51.
3. Effect of Amendment. In all other respects, the Agreement is affirmed and
ratified and, except as expressly modified herein, all terms and conditions of the Agreement shall
remain in full force and effect.
4. Non -Default. By executing this First Amendment, the Contractor affirmatively
asserts that (i) the Town is not currently in default, nor has been in default at any time prior to
this First Amendment, under any of the terms or conditions of the Agreement and (ii) any and
all claims, known and unknown, relating to the Agreement and existing on or before the date of
this First Amendment are forever waived.
5. Israel. Contractor certifies that it is not currently engaged in, and agrees for the
duration of this Agreement that it will not engage in a "boycott," as that term is defined in ARIZ.
REV. STAT. § 35-393, of Israel.
6. Conflict of Interest. This First Amendment and the Agreement may be canceled
by the Town pursuant to ARIZ. REV. STAT. § 38-511.
7. Notices and Requests. Communications directed to the Town pursuant to Section
14 of the Agreement shall be sent to the Town at the addresses listed below.
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Town Attorney
8. Public Records. Consultant acknowledges that the Town is a public entity, subject
to Arizona's public records law (A.R.S. § 39-121 et seq.) and that any documents related to this
Agreement may be subject to disclosure pursuant to state law in response to a public records
request, subpoena, or other judicial process.
8.01 Trade Secrets Statement. If Consultant believes documents related to its
work pursuant to the Agreement contain trade secrets or other proprietary data,
Consultant must provide notice to the Town at the time the documents are provided to the
Town, and include with the notification a statement that explains and supports
Consultant's claim. Consultant also must specifically identify the trade secrets or other
proprietary data that Contractor believes should remain confidential.
8.02 Notice of Records Request. In the event the Town determines it is legally
required to disclose any documents subject to a Trade Secrets Statement as defined in
section 8.01, the Town, to the extent possible in its sole and absolute discretion, will
provide Consultant with prompt written notice by fax, email, or certified mail so that
Consultant may seek a protective order from a court having jurisdiction over the matter or
obtain other appropriate remedies. The written notice will include a time period for
Consultant to seek court ordered protection or other legal remedies. If Consultant does
not obtain such court ordered protection by the expiration of the time period, the Town
may release the documents subject to the Trade Secrets Statement without further notice
to Consultant.
[SIGNATURES ON FOLLOWING PAGES]
IN WITNESS WHEREOF, the parties hereto have executed and caused to be signed by
their duly authorized representatives, this instrument on the date first written above.
"Town"
TOWN OF FOUNTAIN HILLS,
an Arizona Municipal Corporation
Grady E. Miller, Town Manager
ATTEST:
Elizabeth A. Burke, Town Clerk
(ACKNOWLEDGEMENT)
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On , 2018, before me personally appeared Grady E. Miller, the Town Manager
of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was
proven to me on the basis of satisfactory evidence to be the person who he claims to be, and
acknowledged that he signed the above document, on behalf of the Town of Fountain Hills.
Notary Public
(Affix notary seal here)
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
"Contractor"
KOMPAN INC.
By:
Name:
Its:
(ACKNOWLEDGEMENT)
STATE OF
) ss.
COUNTY OF )
On , 2018, before me personally appeared the
of Kompan Inc., a Delaware corporation, whose identity was proven to me
on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged
that he signed the above document, on behalf of Kompan Inc.
Notary Public
(Affix notary seal here)
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date: 10/16/2018
Agenda Type: Regular
Staff Contact Information: Grady.E. Miller, Town Manager
Meeting Type: Regular Session
Submitting Department: Administration
REQUEST TO COUNCIL (Agenda Language): DISCUSSION and UPDATE to the Mayor and Council regarding follow up
from the September 4, 2018, Town Council meeting relating to pet rescue signs.
Applicant: N/A
Applicant Contact Information: N/A
Owner: Town of Fountain Hills
Owner Contact Information: N/A
Property Location: Various Locations in Town
Related Ordinance, Policy or Guiding Principle:
Staff Summary (background): At the Town Council meeting on September 4, 2018, a number of residents
expressed concern about the enforcement of the Town's sign ordinance as it related to signs placed on stop
signs, street signs, town -owned poles, and other Town -owned property. Despite the signs helping residents in
their efforts to help find lost dogs and cats, the signs violated the Town Code and State law which would result
in Code Enforcement and Public Works staff removing the pet rescue other signs from these surfaces.
Based on Council direction, the staff and I met with Chris Pinna and a member of the rescue team on
September 17, 2018, to assist the pet rescue group with sign alternatives that would still enable the group to
make residents aware of missing pets. Staff provided Ms. Pinna with a prototype of a wire sign (see attached
photo) that can be placed in the right-of-way. The benefits of the sign design are that it could easily be
updated as pets were found and/or allow new information to be easily added to the signs. Staff also provided
Ms. Pinna and her team with excess wire signs that could be modified for this purpose.
In addition, staff provided Ms. Pinna with an aerial map of the Town showing some key locations to place the
missing pet signs and sign guidelines to help the group better understand how to post temporary signs and be
in compliance with the sign ordinance.
The next step is for the Town to update its sign ordinance and Town Code to ensure that they are compliant
with the recent ruling by the U.S. Supreme Court case involving signs and the Town of Gilbert. Due to the fact
that this is a major undertaking, staff will be working closely with the Town Attorney and Planning and Zoning
before coming back to the Town Council for future action on this item.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs; budget status): N/A
Budget Reference (page number): N/A
Page 1 of 2
Funding Source: NA
If Multiple Funds utilized, list here: N/A
Budgeted; if No, attach Budget Adjustment Form: NA
Recommendations) by Board(s) or Commission(s): N/A
Staff Recommendation(s): Information Report
List Attachment(s): Photograph of Prototype Sign
SUGGESTED MOTION (for Council use): No motion is necessary as this is a report.
Prepared by:
NA Date
Director's Approval:
NA 9/10/2018
Approved:
Grady E. Miller, T anager 10/9/2018
Page 2 of 2
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