Loading...
HomeMy WebLinkAbout2019.1217.TCRM.Packet.FINAL       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL *A M E N D E D    Mayor Ginny Dickey  Vice Mayor Sherry Leckrone Councilmember Dennis Brown Councilmember Alan Magazine Councilmember Mike Scharnow Councilmember David Spelich Councilmember Art Tolis      TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, DECEMBER 17, 2019 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.    REQUEST TO COMMENT   The public is welcome to participate in Council meetings. TO SPEAK TO AN AGENDA ITEM , please complete a Request to Comment card, located in the back of the Council Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments should be directed through the Presiding Officer and not to individual Councilmembers. TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town Clerk prior to discussion, if possible.   REGULAR MEETING    REGULAR MEETING NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).        1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Ginny Dickey     A.INVOCATION - Brad Ough, Church of Jesus Christ of Latter-day Saints     2.ROLL CALL – Mayor Dickey     3.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.PROCLAMATION declaring January 2020 as Speak Up, Save a Life Month     B.RECOGNITION of outgoing McDowell Mountain Preservation Commission Chairman Bill Myers     4.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS     A.PRESENTATION by Chamber of Commerce Director Betsy LaVoie     B.PRESENTATION and update on the draft General Plan 2020.    5.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 (iii) ask that the matter be placed on a future Council agenda.     6.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion 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.        Town Council Regular Meeting of December 17, 2019 2 of 4   A.CONSIDERATION OF approving the meeting minutes of the Special Meeting of November 19, 2019; and the Combined Regular Meeting and Work Session of December 3, 2019.     B.CONSIDERATION OF approving a Special Liquor License application submitted by the Fountain Hills Theater for a fundraiser to be held on January 24, 2020.     C.CONSIDERATION OF approving a Special Liquor License application for the Fountain Hills VFW Post No. 7507 Veterans Foundation to host a beer garden in conjunction with the Great Fair on Feb 21-23, 2020.     D.CONSIDERATION OF approving a Special Event Liquor License application for the Fountain Hills VFW Post No. 7507 for a  beer garden in conjunction with the Great Fair on Feb 21-23, 2020.     E.CONSIDERATION OF approving a Special Event Liquor application for Senior Services, Inc., for a fundraiser to be held in the Fountain Hills Community Center on February 13, 2020.     F.CONSIDERATION OF approving a Liquor License Application for Aguamenti, located at 16842 E. Parkview Avenue #2, Fountain Hills, Arizona, for a Series 7 (Wine & Beer) license.      G.CONSIDERATION OF adopting Ordinance 19-17, amending Chapter 7 of the Fountain Hills Zoning Ordinance by removing Sections 7.02 G., Storage and Parking of Commercial Vehicles in Residential Districts; H., Storage and Parking of Unoccupied, Non-commercial, Mobile Homes, Boats, Aircraft, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers; I. 2., Occupied Mobile Homes, Motor Homes, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers; and, J. Storage and Parking of Junk Automobiles and renumbering the remaining sections. Case #Z2019-07       7.REGULAR AGENDA     A.CONSIDERATION OF appointment to the McDowell Mountain Preservation Commission.    B.PUBLIC HEARING ON proposed Development Impact Fee Report.    C.CONSIDERATION OF Contract 2020-11 with Continental Flooring Company for the purchase and installation of flooring in the Fountain Hills Library.     D.CONSIDERATION OF a request for a SPECIAL USE PERMIT to allow new and used automobile sales in the C-2 zoning district on a portion of the property located at 11625 N. Saguaro Boulevard.   Case #SUP2019-02     E.CONSIDERATION OF approving the purchase of a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom for the Streets Division of the Public Works Department.        Town Council Regular Meeting of December 17, 2019 3 of 4   Town Council Regular Meeting of December 17, 2019 4 of 4 F. CONSIDERATION OF adopting Resolution 2019-59 ordering and calling a Special Election to be held in and for the Town on May 19, 2020, to refer to the voters of the Town 1) Ordinance 19-03 rezoning 59.79 acres generally located at the northeast corner of Shea and Palisades Boulevards from L-3 P.U.D. and OSR to Daybreak P.A.D.; and 2) Resolution 2019-39, changing roughly 23 acres near the northeast corner of Shea and Palisades Boulevard from Lodging to Multi-Family/Medium; and other questions which may be ordered by the Town Council as permitted by law. G. CONSIDERATION OF adopting Ordinance 19-19 amending the Town Code Chapter 2, Article 2-1-1, Elected Officials, extending the term of office of the Mayor from two years to four years. 8. 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. 9. ADJOURNMENT CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this rday of ,6-27,t. y;2019. E izabeth A. B rk , MM ,Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities.Please call 480-816-5199(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. ITEM 3. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Reports Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council Staff Contact Information: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council REPORTS (Agenda Language):  PROCLAMATION declaring January 2020 as Speak Up, Save a Life Month Staff Summary (Background) Mayor Dickey will be proclaiming January 2020 as Speak Up, Save a Life Month. Attachments Proclamation  Form Review Inbox Reviewed By Date Finance Director David Pock 11/13/2019 04:49 PM Town Attorney Aaron D. Arnson 11/18/2019 12:51 PM Town Manager Grady E. Miller 11/21/2019 08:19 AM Form Started By: Angela Padgett-Espiritu Started On: 11/13/2019 03:49 PM Final Approval Date: 11/21/2019  ITEM 4. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Public Appearances/Presentations Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language):  PRESENTATION and update on the draft General Plan 2020. Staff Summary (Background) Staff and The Planning Center continue to prepare a new General Plan for Council approval and voter adoption.  A full draft plan was made available to the public for review and comment on November 4, 2019.  A stakeholder meeting and public open house were held on November 20 to receive comments on the draft Plan. A final draft Plan will be completed by February 3, 2020, to begin the formal final review phase.  Staff is working with the consultant over the next two months to prepare that final draft.   During this time we are still taking public comments. Attached is a powerpoint presentation that will be presented at the Town Council meeting.  This presentation provides an overview of the draft General Plan, how the General Plan has responded to input received by the public, how we are responding to comments on the draft Plan, and the next steps that will be followed to prepare the final draft Plan. Attachments Council Presentation  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 11/27/2019 09:40 AM Town Attorney Aaron D. Arnson 12/03/2019 02:11 PM Town Manager Grady E. Miller 12/03/2019 08:37 PM Form Started By: John Wesley Started On: 11/27/2019 09:30 AM Final Approval Date: 12/03/2019  Town Council December 17, 2019 •Gather Community Input/ Public Outreach •Current General Plan Review •Visioning Report •Preparation of Public Participation Plan •Data Gathering & Analysis/Map Preparation •Background and Current Conditions Report •Draft Plan •Public Review and Comment •Prepare revised Draft Plan PLANNING PROCESS MILESTONES Step 1 September-December 2018 (Completed) Step 2 January-July 2019 (Completed) Step 3 August 2019 –February 2020 Step 4 February-November 2020 •60-day Review •P&Z Commission Hearings and Recommendation •Council Hearings and Approval •Voter Approval •Section I: Planning for Our Future•Introduction•Background Information•Vision •Section II: Thriving Neighborhoods •Section III: Thriving Environment•Built Environment•Great Places -Character Areas•Social Environment•Connectivity, Access, Mobility•Public Facilities and Services•Natural Environment •Section IV: Thriving Economy•Economic Development•Cost of Development •Section V: Plan Administration 3 PLAN OUTLINE •Protect residential neighborhoods•Focus on revitalization, redevelopment & Infill•Develop State Trust Land•Preserve and promote “small town” feel•Revitalize the Town Center•Attract and retain retail and services•Define Fountain Hills economic identity•Support & Expand Events•Seek opportunities for tourism•Improve connectivity and wayfinding •Maintain and Improve Bike Lanes, Roads & Sidewalks•Promote safety •Protect natural resources, dark skies and scenic views 4 CITIZEN INPUT Citizen comment: •Protect residential neighborhoods Addressed in the Plan in Thriving Neighborhoods Element: •Goal 1: Continue to develop and maintain thriving neighborhoods •Policy #2: Protect existing neighborhoods from incompatible development that does not support the character of the area. •Goal 3: Maintain the quality of existing neighborhoods. •Policy #1: Protect established single-residential neighborhoods form the transition, intensification, and encroachment of uses that detract and/or change the character of the residential neighborhood. 5 CITIZEN INPUT/PLAN RESPONSE Citizen comment: •Revitalize the Town Center Addressed in the Plan in Thriving Environment Element, Built Environment, Great Places Element:•Goal 4: Allow the Town Center to achieve its full potential •Policy #1: Market the Town Center to attract a variety of employment, office, cultural institutional, mixed-use, lodging, commercial, entertainment and recreational opportunities. •Table 1: Character Area Plan. •Land Use and Development Patter: Continue to develop a highly integrated mix of uses to provide a vibrant town center….Architecture should be consistent with the Town’s small-town feel. 6 CITIZEN INPUT/PLAN RESPONSE Citizen comment: •Define Fountain Hills’ economic identity Addressed in the Plan in Thriving Economy Element: •Goal 1: Maximize economic development opportunities in Fountain Hills. •Policy #1: Create or utilize tools to help market Fountain Hills’ economic development opportunities. •Goal 5: Support strong public/private partnerships to strengthen the community, ensure long-term viability, and improve the Town’s quality of life. •Policy #2: Achieve Fountain Hills’ priorities through the utilization of intergovernmental relationships and continuing to partner with: 7 CITIZEN INPUT/PLAN RESPONSE Citizen comment: •Maintain and Improve Bike Lanes, Roads & Sidewalks Addressed in the Plan in Thriving Environment, Connectivity, Access, and Mobility Element:•Goal 1: Continue to support safe, efficient and sustainable connectivity, access, and mobility throughout the Town •Policy #4: Continue to conduct manual turning movement counts periodically at key intersections, particularly those exhibiting high accident rates or rapidly increasing traffic volumes. •Goal 6. Continue to update traffic count data and monitor intersection service levels and safety to support a safe and efficient roadway system. 8 CITIZEN INPUT/PLAN RESPONSE Stakeholder meeting 11/20 •Approximately 20 citizens attended •Good discussion and input on an number of topics •Need to keep up with advances in technology •Will look at and improve language on page 71•Will modify Goal 4, Policy 3 (page 77) to better address the topic •Need to clarify some statements on the roles and relationship between Town and Fountain Hills School District •Need for chart to show how Plan complies with State Statute requirements 9 PUBLIC INPUT Public Open House 11/20 •Approximately 12 citizens attended •Good discussion regarding overall vision and key goals •Desire to see better reference to health and wellness as part of the Vision that sets Fountain Hills apart. •Desire to see more consistent architectural treatment •Also received an email on this same subject. 10 PUBLIC INPUT Plan Available: •On-line •At Library and Community Center Continuing to Take Comments •E-mail •Letters •Attend meetings Review and Comments by Technical Advisory Committee 11 NEXT STEPS •Staff &consultant working on modifications and refinements •Consultant to provide staff with final draft Plan by February 3 •Staff to send out information and start formal 60-day review period on February 12 •Stakeholder meeting to review final plan mid-February •P&Z review and public input March •P&Z public hearing and action April •Council hearings in May,action in June 12 NEXT STEPS Questions 13 ITEM 6. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving the meeting minutes of the Special Meeting of November 19, 2019; and the Combined Regular Meeting and Work Session of December 3, 2019. Staff Summary (Background) The intent of approving meeting minutes is to ensure an accurate account of the discussion and action that took place at the meeting for archival purposes. Approved minutes are placed on the Town's website and maintained as permanent records in compliance with state law. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approving the minutes of the Special Meeting of November 19, 2019; and the Combined Regular Meeting and Work Session of December 3, 2019. SUGGESTED MOTION MOVE to approve the minutes of the Special Meeting of November 19, 2019; and the Combined Regular Meeting and Work Session of December 3, 2019. Attachments 2019.1119.TCSMES.Minutes  2019.1203.TCCRMWS.Minutes  Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 12/05/2019 09:30 AM Form Started By: Elizabeth A. Burke Started On: 12/05/2019 07:55 AM Final Approval Date: 12/05/2019  TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL HELD NOVEMBER 19, 2019   1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Ginny Dickey    Mayor Dickey called to order the Special Meeting of the Fountain Hills Town Council held November 19, 2019, at 4:30 p.m.   2.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone (telephonically); Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine; Councilmember David Spelich Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Elizabeth A. Burke 3.RECESS INTO EXECUTIVE SESSION    MOVED BY Councilmember Mike Scharnow, SECONDED BY Councilmember Alan Magazine to recess into Executive Session.  Vote: 7 - 0 Passed - Unanimously   4.EXECUTIVE SESSION    The Fountain Hills Town Council recessed into Executive Session at 4:30 p.m.   A.Discussion or consultation for legal advice with the attorney or attorneys of the public body; 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; and discussions or consultations with designated representatives of the public body in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property, pursuant to A.R.S. §38-431.03(A)(3), (4), and (7), respectively.   i.Proposal for Post-Secondary Educational Opportunities   5.ADJOURNMENT    The Fountain Hills Town Council reconvened into Open Session at 4:56 p.m. at which time the Special Meeting held November 19, 2019, adjourned.     _________________________________ Ginny Dickey, Mayor ATTEST: ________________________________ Elizabeth A. Burke, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE COMBINED REGULAR MEETING AND WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL DECEMBER 3, 2019            1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Ginny Dickey    Mayor Dickey called the meeting of December 3, 2019, to order at 5:30 p.m. and led the Council and audience in the Pledge of Allegiance.   2.MOMENT OF SILENCE    Mayor Dickey led the Council and audience in a Moment of Silence.   3.ROLL CALL – Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember David Spelich Absent: Councilmember Alan Magazine Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Elizabeth A. Burke 4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER    Councilmember Tolis said that the Turkey Trot and Thanksgiving Day Parade was a great event and well attended. Mayor Dickey agreed and said that it was nice to have the events in town. Mayor Dickey reported that on November 20, 2019, they held a General Plan 2020 Update Meeting for Stakeholders and then a public meeting on the General Plan was held that evening. Councilmember Scharnow said that as a long-time member of the Noon Kiwanis, he was proud to report that they will be hosting the first activity for the holiday season, Breakfast with Santa, at the Community Center which the Town helps sponsor. Mayor Dickey said that everything they do relies on volunteers, such as with the parade and Turkey Trot, and she thanked all the volunteers, noting that this year they had the most participants they have ever had.          A.PROCLAMATION - Declaring December 5, 2019, through December 15, 2020, as Fountain Hills Celebrates       Mayor Dickey invited Sandra Ursini, Co-Chairman of the 50th for Fountain Hills Committee, and all members of the committee to come forward. She read the proclamation proclaiming December 5, 2019, through December 15, 2020, as Fountain Hills Celebrates. Ms. Ursini then gave a brief update on activities they are planning to help celebrate 30 years of the Town incorporation and 50 years of the fountain.   5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS   A.PRESENTATION - Monthly update by Captain Larry Kratzer of the Maricopa County Sheriff's Office    Captain Kratzer gave a monthly report, highlighting shopping tips with the holiday season upon them. He noted that he also worked with Grace for the Fountain Hills First where they recapped the tips. Below are the shopping tips he reviewed: • If possible, do shopping during the daylight • Don't carry large amounts of cash • Be aware of your surroundings • Park as close to destination as possible • Avoid isolated areas • Don't put packages on seats or where visible; lock in trunk if possible • Have keys ready before exiting the store • Don't place packages on top of vehicle • If there are questionable people lurking, wait or ask for security assistance • When using ATM's, be aware of surroundings • Keep track of credit cards to make sure they are accounted for • Use a credit monitoring service He also reported that they participated in Shop with a Cop (Sheriff), where each patrol district has so many children identified in a community and they transport them to the shopping center with police officers to shop around the store. He said that they have done this for several years, and the great thing is that most times the kids will spend the gift card on other family members. Captain Kratzer also reported that they continue with the prescription drug drop off, where the MCSO, the Fountain Hills Coalition and the Fountain Hills Sanitary District get rid of the unwanted and unused drugs. They weight it and put it into proper evidence and it is then destroyed. Mayor Dickey thanked the Sheriff's Office for all of their work and being so responsive in the community. Councilmember Tolis asked if he could report on the month ticket count. Captain Combined Regular Meeting and Work Session of December 3, 2019 2 of 12 Kratzer said that he has not yet received those stats; they usually come in around the 4th of 5th of each month, but they were still up.   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 (iii) ask that the matter be placed on a future Council agenda. None   7.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion 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.    MOVED BY Vice Mayor Sherry Leckrone, SECONDED BY Councilmember Dennis Brown to approve the Consent Agenda Items 7-A through 7-C.  Vote: 6 - 0 Passed - Unanimously   A.CONSIDERATION OF approving the meeting minutes of the Special Meeting of October 30, 2019; the Special Meeting of November 5, 2019; the Combined Regular Meeting and Work Session of November 5, 2019; and the Regular Meeting of November 19, 2019.      B.CONSIDERATION OF adopting Resolution 2019-54, abandonment of the 10' Public Utility and Drainage Easement at the rear of Plat 603-C, Block 5, Lot 21. (EA 2019-18)      C.CONSIDERATION OF Resolution 2019-58 declaring as a Public Record that certain document filed with the Town Clerk and entitled "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code"; and Ordinance 19-18, adopting the "2019 Amendments to Chapter 13, Cable Communications, of the Fountain Hills Town Code" by reference.      8.REGULAR AGENDA   A.CONSIDERATION OF appointment to the Board of Adjustment.      MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember Mike Combined Regular Meeting and Work Session of December 3, 2019 3 of 12  MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember Mike Scharnow to appoint Jeremy Smith to the Board of Adjustment with his term expiring October 31, 2021.  Vote: 6 - 0 Passed - Unanimously    Mayor Dickey thanked Daniel Halloran for his past service to the Board of Adjustment.   B.PUBLIC HEARING AND CONSIDERATION OF adopting Ordinance#19-16, a text amendment to the Town of Fountain Hills Zoning Ordinance, Chapter 6, Sign Regulations, Sections 6.08 Zoning Districts Table, 6.08. M. and 6.08. Q. The amendments update the Zoning Districts Table with the new language, replace the existing language in Section 6.08 M. regarding Garage Sale Signs with new provisions for Residential Directory Signs and eliminate Section 6.08. Q. regarding Open House Signs.(Case #Z2019-06)       Mayor Dickey noted that the Public Hearing had been opened at the prior meeting (November 19, 2019) and continued to this meeting. Development Services Director John Wesley briefly reviewed the item, noting that a few years ago the U.S. Supreme Court determined that cities/towns can no longer have regulations for signs based on content, which is currently what is included in the Town Code. He said that they are doing a comprehensive update to that code to be compliant, but as they looked at it one of the most problematic sections has to do with temporary signs, such as garage sale and open house signs. These two signs are dealt with by the Town's Code Enforcement Officer on a weekly basis. Mr. Wesley said that the current Code provides regulations for garage sale signs and a separate section provides regulations for open house signs. The regulations are similar but not exactly the same. To properly enforce the requirements of the code for these two signs, they must read the sign. Therefore, these sign types are not in compliance with the Court ruling in Reed v. Town of Gilbert. This creates a challenge to the enforcement of these ordinance provisions. Staff’s proposal is to delete the two current sign designations in the ordinance and replace them with one new sign type – Residential Directional Signs. The new regulations are a combination of the requirements in the code today for the two types of signs. The proposed new language clears up a problem with regards to Shea Boulevard. Currently, garage sales signs may not be posted in the Shea Boulevard right-of-way and open house signs shall not be within 150 feet of the Shea right-of-way. It is difficult for the average person to know where the Shea right-of-way is or be able to then measure the distance from the right-of-way. The proposed code standardizes the distance and measures it from the curb which is easy to locate. There is one issue still remaining with regard to temporary signs along Shea Boulevard. While most subdivisions along Shea take their access from a street other than Shea (e.g. The Villas at Firerock are accessed from Firerock Country Club Dr.; Belera at Firerock is accessed from Belera Dr.) which provides a street Combined Regular Meeting and Work Session of December 3, 2019 4 of 12 other than Shea to place a sign to direct people into the subdivision, there is one subdivision, Palatial Estates, that accesses Shea Blvd. directly. A request has been made to amend the proposed ordinance to allow this as an exception to the current language in the code. Staff has not made any adjustments to the draft ordinance in response to this issue; they prefer to address this topic as part of the larger sign code update so the issue can be considered in context with other changes being made to the ordinance. Mr. Wesley said that as they finalized the Code through the Planning and Zoning Commission, an item came up regarding medians. Currently, they are prohibited, but it was asked if they could be allowed in the frontage road medians, those along the side of Saguaro as an example. Staff thinks it is probably okay, but is not sure what the impact will be.    Councilmember Scharnow asked if the restriction on Shea Blvd. has been there historically, or how it came to be. Mr. Wesley said that his understanding was that since Shea is a main thoroughfare there was some desire to keep it more pristine and uncluttered. Councilmember Scharnow asked if that could allow prohibitions on other boulevards; staff replied that they could. Councilmember Scharnow asked how they came to settle on a maximum of five signs. He asked if they talked about it at all, or just felt it was a good number. Mr. Wesley said that there was some ambiguity the way it was first written. He clarified that it would be one plus five. He said that the Code Enforcement Officer has been doing this for a number of years, and this was a number that worked well. Councilmember Tolis said that the issue with signs on Shea, in working with the real estate community, has been ongoing for 20 years. He said that he believed that Eagle Mountain designed their own open house signs, and same with Firerock. He said that something needs to be done with the entrance to Crestview, and suggested that they permit one sign on the roadway per development. For those developments with security guards, perhaps they could work with them to provide maps, etc. He said that Scottsdale allows them on Shea. Councilmember Brown said that he truly appreciated what Councilmember Tolis came up with. He said that it has been a point of contention for 18 years that he knows of. He said that they should take a look at the recommendation of having a custom sign; he does not think they will be plagued with many other signs and it would be a value to the Town. Mr. Wesley said that right now the Code said they cannot be within 150 feet of Shea; they could change that to 50 or 10 feet. Councilmember Brown suggested that it be from the curb, so it is visible. Vice Mayor Leckrone asked what the Commission's thinking was in wanting to move forward with the changes even though staff was hesitant. Mr. Wesley said that they really gave no detail. Mayor Dickey said that perhaps in the meantime it would be more fair for those to Combined Regular Meeting and Work Session of December 3, 2019 5 of 12 be able to use the service road median. Councilmember Brown said that he did not know how to write it, but would agree with it being permitted. Councilmember Scharnow said that he thought they needed to tread more lightly since the court ruling opened up the floodgates. After further discussion Mayor Dickey said that this is not the first or last of the issue. They are trying to get a handle on the issue and some of this may change before they put it in as part of the sign ordinance. She said that she is prepared to go ahead with the motion as written, adding the Commission recommendation. Mayor Dickey closed the Public Hearing at this time. Upon further deliberation, it was noted that they were trying to address this issue now because of the Code Enforcement Officer is dealing with the issue so frequently.    MOVED BY Councilmember Art Tolis, SECONDED BY Councilmember David Spelich to postpone the item and have it come back with the entire Sign Ordinance revisions.  Vote: 6 - 0 Passed - Unanimously   C.CONSIDERATION OF a Cooperative Purchasing Agreement #2020-045 with Stabilizer Solutions, Inc.       Mr. Miller said that this vendor provides decomposed granite rock in the rights-of-way for landscaping and also provides infill mix at the ballfields. Whenever the Town has had storms they have been on hand to help. This amount is for a five-year agreement for a maximum amount of $200,000, or approximately $40,000 a year. Community Services Director Goodwin said they have been one of the vendors that have worked through clean-up at Golden Eagle Park removing tons of debris and providing infill and outfield mix along with the laser leveling. They also helped the Town get the Four Peaks fields in good condition. Councilmember Spelich asked if this includes the rocks on the islands in the center. Mr. Weldy said that they are not the primary provider for that service. This contract is more specific to the parks. Councilmember Spelich said that the center medians are looking tired. Mr. Weldy said that they just received a quote back for that and it was ridiculously high for the design so they are going back to the drawing board. He noted, however, that the corner of Shea and Palisades, which they previously discussed will have something done within the next 30 days.   Combined Regular Meeting and Work Session of December 3, 2019 6 of 12    MOVED BY Councilmember Mike Scharnow, SECONDED BY Vice Mayor Sherry Leckrone to approve the Cooperative Purchasing Agreement #2020-045 with Stabilizer Solutions, Inc. in an amount not to exceed $200,000 ($40,000 annually) over the life of the five-year contract.  Vote: 6 - 0 Passed - Unanimously   D.CONSIDERATION OF approving the Town Council Meeting Dates and Summer Break for 2020.       Mr. Miller said that the proposed schedule is something they do each year so that staff and the public can plan accordingly. It was brought to their attention that the Council Retreat shown on the original list was in error; the Retreat will be held on February 25 and a corrected schedule had been placed on the Council dais. Mayor Dickey said that when they have their meeting on June 16, 2019, if they feel they want those minutes to be available sooner than the August 24, 2020, meeting, they will find a way to get those out.    MOVED BY Vice Mayor Sherry Leckrone, SECONDED BY Councilmember Dennis Brown to approve the proposed meeting schedule for 2020, as corrected (Budget Retreat on 02/25/2020).  Vote: 6 - 0 Passed - Unanimously   E.CONSIDERATION AND POSSIBLE DIRECTION to staff regarding the requirements for providing hillside protection easements, the abandonment of existing easements, and the fee for easement abandonments.       Mr. Wesley said that the Council discussed this last year at their retreat. Staff was ready to come back in August for further discussion, but it has continued to be put off for a variety of reasons. He then briefly reviewed the staff report which gave some history on the matter. Councilmember Brown said that it was probably one of the best staff reports he has seen come out of Town Hall. He said that the only concern he has with staff having the ability to make an adjustment is that, although the staff they have today has the ability, in five years they may have other staff that is not willing to work with developers. Mr. Wesley said that this is what he is suggesting. He has not written the wording yet, and there are ways to address specific situations. Mr. Miller said that he thought they could come back and write a procedural type of information that is codified. To the point, if they had turnover they would have some policy guidelines for staff to follow. He said that the other issue discussed during the past Retreat was the consistency in charging the $350 fee. He said that part of this recommendation is that they will charge that fee consistently at the time they apply for the application. Also, the issue of existing easements being abandoned, they tried to find a way to legally Combined Regular Meeting and Work Session of December 3, 2019 7 of 12 give those, but they are individual documents and they really do have to be handled on a case-by-case basis. If the Council is interested, they will see if there is something that can be written into the Code to give staff authority to approve those, to make it easier for the applicant. Councilmember Scharnow asked if the $350 covers the staff time for reviewing and preparing the report. Mr. Wesley said that they are currently undergoing a fee study and it may come back that the fee should be lower or higher. Councilmember Brown said that he believes that the staff should be handling those, and he agrees with the $350 for the time staff puts into it. He has often wondered why they are put on the Council agenda. He has never seen one denied. Mr. Miller said that 90% of the easement abandonments are very routine. Once in a while there may be a neighbor dispute and those may end up coming to Council. He said that the protection of the natural beauty of the hillsides in the Town is one of the important development requirements that helps make Fountain Hills unique and attractive. There are, however, improvements that can be made to the requirements to make the process more flexible for unique development situations, and he then reviewed staff's recommendation.    MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember Mike Scharnow to direct staff to: Explore and bring back recommendations from the Planning and Zoning Commission on modifications to Section 5.04 of the Subdivision Regulations that will allow additional, lot specific adjustments to be made; 1. Continue to process H.P.E. abandonment requests on a lot by lot basis;2. Explore options to allow approval of some hillside easement abandonments administratively; and, 3. Utilize the existing $350 fee for easement abandonment for the processing of these request 4.  Vote: 6 - 0 Passed - Unanimously   F.DISCUSSION AND DIRECTION on calling a Special Election in May 2020 or as part of the Primary Election in August 2020 for the Daybreak development referenda questions.       Mr. Miller said that this item had been placed on the agenda to allow the Council an opportunity to determine whether they wanted to call a special election to place on the ballot the questions which had been referred. He said that there are advantages and disadvantages as indicated in the staff report. Vice Mayor Leckrone said that the cost is a concern to her, but she also does not want to make it more difficult for someone to vote, so she asked for clarification on the issue with an August ballot. Town Clerk Elizabeth Burke replied that if someone is not registered as one of the recognized parties, they would need to contact the County and let them know which primary election ballot they would like Combined Regular Meeting and Work Session of December 3, 2019 8 of 12 to receive. Arizona has open primaries, which means that those known as "independents" may select which party ballot they would like, or they could request just a Town ballot. Regardless, they have to contact the County directly to make that selection when it is done in conjunction with the primary election because those are partisan elections (outside of the nonpartisan Town election). Councilmember Tolis asked if they could hear from someone in the audience that was part of the referenda action, what their preference would be. Pete Brock, Chairman of the Smart Growth referenda efforts, said that he has not seen the report, but would urge the Council schedule a May special election where it would be the only question on the ballot. He said that by moving the vote to August risks disenfranchising the voters. He said that according to the Manager, there are significant indirect costs that the Council would incur if they postponed, such as the continuing public records requests and also disenfranchising the voters. The mail ballot would reach every registered voter and provide for quicker results. Councilmember Spelich said that he realizes that he preaches about not spending money, but it seems like the extra money it would cost to have a May election without disenfranchising the voters might be the thing to do. Mayor Dickey added that the primary turnout in 2018 for partisan elections was good, but for independents it was around 4%. Also, when the questions are on the primary, the local questions would be at the end of the ballot which may be impacted by voter fatigue. She really thought they should hold it in May. Councilmember Scharnow asked Mr. Miller if they could find the extra money to cover the costs. Mr. Miller said that they could find the extra needed money. Councilmember Scharnow said that in the best interest of everyone involved, to settle the issue once and for all, he would agree with the others and support a May election. Councilmember Tolis asked if it would be possible that the Town put other things on the agenda. Mr. Miller said that they could, as long as they are permitted by law. Councilmember Tolis asked if they could also ask the question of whether the residents would support the Town purchasing the property so that no development could occur at that location. Mr. Arnson said that staff would research that further and would bring back a resolution to the December 17, 2019, to formally call the election. After questioned, it was clarified that if the questions did not pass, the property would revert to the prior designation. Councilmember Scharnow said that in light of their topic coming up after this agenda item, with the amount of money they will need to fix the streets, he cannot see any kind of question on the ballot for the Town to purchase the property. Mr. Miller said that he has worked in New England where they would oftentimes include "advisory" language on a ballot, but they could not do that in Arizona. However, it does not mean that a survey could not be done. Combined Regular Meeting and Work Session of December 3, 2019 9 of 12    MOVED BY Vice Mayor Sherry Leckrone, SECONDED BY Councilmember Mike Scharnow to direct staff to bring back a resolution for consideration at the December 17, 2019, Town Council Meeting calling for a Special Election in May of 2020 for the purpose of referring referenda addressing the proposed Daybreak development.  Vote: 6 - 0 Passed - Unanimously   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.   10.ADJOURNMENT    MOVED BY Councilmember Dennis Brown, SECONDED BY Councilmember Mike Scharnow to adjourn the Regular Meeting of December 3, 2019.  Vote: 6 - 0 Passed - Unanimously    The Regular Meeting of December 3, 2019, adjourned at 6:53 p.m. and a short break was held.   WORK SESSION Pursuant to the Council's Rules of Procedure, no public comment is taken at work sessions. Work sessions are held for the purpose of presentations and discussions on such issues that require more in-depth consideration of the Council.   1.CALL TO ORDER    The Fountain Hills Town Council reconvened into the Work Session at 7:01 p.m. at which time Mayor Dickey called to order the Work Session of December 3, 2019.   2.DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding the establishment of pavement condition standards to be used in developing a 10-year Pavement Management Program.       Public Works Director Justin Weldy said that back in September the Council discussed the need for a ten-year plan to address the needs of the community with respect to streets and at that time they directed staff to move forward with development of such a plan. He said that Zach Thomason with IMS is here this evening to review what has been done and provide the Council with various options. Mr. Thomason then came forwarded and reviewed a PowerPoint presentation (Exhibit A attached hereto and made a part hereof) which addressed: Combined Regular Meeting and Work Session of December 3, 2019 10 of 12 SCALE OF INVESTMENT FOUNTAIN HILLS PCI RESULTS FOUNTAIN HILLS RESULTS - 3 METRIC OF HEALTH Mayor Dickey noted that while the Town's overall average is not bad, it is not that great of a measurement because there is a lot of backlog. FUNCTIONAL CLASS COMPARISON PARAMETER UPDATE ENSURING BACKLOG CONTROL IS CRITICAL NETWORK NEEDS & FUNDING Mr. Thomason said that after they achieve a desire letter grade or PCI they can run another model and determine what it will cost to maintain the system. ANALYSIS FINDINGS 1-5 NEXT STEPS Discussion was held on the need to narrow some of the wider streets so the cost of maintenance is not so high. Mr. Miller said that if they could get consensus on the rating conditions, he thinks they could move forward. There will be additional work to come up with the capital costs for some narrowing. He said that he would not want it to be a distraction, but he did want to see a 20-year period of time model, once the 10-year plan is done. Mr. Weldy said that they should keep in mind that the level of service they are asking for tonight and the funding will include a percentage of what will be necessary to use for additional imporvements. They may need to make changes to handicap ramps, minor drainage modifications, etc. While is is an incredible amount of money to take care of this program, there are also other infrastructure needs tied to the roads. Mayor Dickey said that the grades to her do not mean that much, except in looking at what their responsibility is to prevent the backlog. When they come back and talk about money she would like to figure out what the critical point is, how much and when. Other than that, she agrees with the others. To summarize, Mr. Miller said that they will determine what the Pavement Management Plan will consist of the levels presented by staff, run the budget model and provide the amount of funding needed and what they get for it. Mr. Thomason said that they would be looking to keep the backlog below 12%, and build around $5.5 million annually over a ten-year horizon. It is prioritizing by functional class. He said that they will see a map of the roads and the projects to be selected. Mayor Dickey said that another thing they will need to consider is to come up with a plan, if the vote for bonding should fail. Combined Regular Meeting and Work Session of December 3, 2019 11 of 12 Mr. Thomason said that they would generally be doing about $3 million to $5.5 million as a target. They could also run the model at $2.5 million and maybe somewhere in between. He added that it can always be updated as well.   3.ADJOURNMENT    There being no further business to discuss, the Work Session of December 3, 2019, adjourned at 7:51 p.m.     TOWN OF FOUNTAIN HILLS ______________________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: ______________________________ Elizabeth A. Burke, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Combined Regular Meeting and Work Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 3rd day of December, 2019. I further certify that the meeting was duly called and that a quorum was present. DATED this 17th day of December, 2019. _________________________________ Elizabeth A. Burke, Town Clerk Combined Regular Meeting and Work Session of December 3, 2019 12 of 12 ITEM 6. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Community Services Prepared by: Linda Ayres, Recreation Manager Staff Contact Information: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving a Special Liquor License application submitted by the Fountain Hills Theater for a fundraiser to be held on January 24, 2020. Staff Summary (Background) The purpose of this item is to obtain Council's approval regarding the special event liquor license application submitted by Saundra McGee representing the Fountain Hills Theater for submission to the Arizona Department of Liquor.  The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff recommends approval of this special event liquor license application as submitted. Related Ordinance, Policy or Guiding Principle  A.R.S. §4-203.02; 4-244; 4-261 and R19-1-228, R19-1-235, and R19-1-309   Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the Special Event Liquor License.   SUGGESTED MOTION MOVE to approve the Special Event Liquor License. Attachments G:\Special Events\Liquor Apps\2020  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 12/04/2019 11:48 AM Town Attorney Aaron D. Arnson 12/04/2019 12:40 PM Town Manager Grady E. Miller 12/04/2019 12:44 PM Form Started By: Linda Ayres Started On: 11/26/2019 11:08 AM Final Approval Date: 12/04/2019  ITEM 6. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Community Services Prepared by: Linda Ayres, Recreation Manager Staff Contact Information: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving a Special Liquor License application for the Fountain Hills VFW Post No. 7507 Veterans Foundation to host a beer garden in conjunction with the Great Fair on Feb 21-23, 2020. Staff Summary (Background) The purpose of this item is to obtain Council's approval regarding the special event liquor license application submitted by Debra Biloskirka representing the Fountain Hills VFW Post No. 7507 Veterans Foundation for submission to the Arizona Department of Liquor. This special event liquor license is being obtained for the purpose of holding a beer garden in conjunction with the Great Fair. The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. Related Ordinance, Policy or Guiding Principle A.R.S. §4-203.02; 4-244; 4-261 and R19-1-228, R19-1-235, and R19-1-309 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the Special Event Liquor License. SUGGESTED MOTION MOVE to approve the Special Event Liquor License. Attachments G:\Special Events\Liquor Apps\2020  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 12/04/2019 11:48 AM Town Attorney Aaron D. Arnson 12/04/2019 12:40 PM Town Manager Grady E. Miller 12/04/2019 12:42 PM Form Started By: Linda Ayres Started On: 11/25/2019 07:29 AM Final Approval Date: 12/04/2019  ITEM 6. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Community Services Prepared by: Linda Ayres, Recreation Manager Staff Contact Information: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving a Special Event Liquor License application for the Fountain Hills VFW Post No. 7507 for a  beer garden in conjunction with the Great Fair on Feb 21-23, 2020. Staff Summary (Background) The purpose of this item is to obtain Council's approval regarding the special event liquor license application submitted by Boris Biloskirka representing the Fountain Hills VFW Post No. 7507 Veterans for submission to the Arizona Department of Liquor. This special event liquor license is being obtained for the purpose of holding a beer garden in conjunction with the Great Fair. The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. Related Ordinance, Policy or Guiding Principle A.R.S. §4-203.02; 4-244; 4-261 and R19-1-228, R19-1-235, and R19-1-309 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to approve the Special Event Liquor License Attachments lG:\Special Events\Liquor Apps\2020  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 12/05/2019 07:54 AM Town Attorney Aaron D. Arnson 12/05/2019 09:41 AM Town Manager Grady E. Miller 12/05/2019 09:45 AM Form Started By: Linda Ayres Started On: 11/25/2019 07:47 AM Final Approval Date: 12/05/2019  ITEM 6. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Community Services Prepared by: Jennifer Lyons, Senior Services Supervisor Staff Contact Information: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving a Special Event Liquor application for Senior Services, Inc., for a fundraiser to be held in the Fountain Hills Community Center on February 13, 2020. Staff Summary (Background) The purpose of this item is to obtain Council's approval regarding the Special Event Liquor License application submitted by Lynn Strang, representing Senior, Services, Inc., for submission to the Arizona Department of Liquor.  The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of the application as submitted.  All applicants are required to submit a Town alcohol application and submit a $25 fee. Once the fee is paid and the application is approved by Town staff, the applicant submits the Arizona State application for a Special Event Liquor License to Town Council for approval. Once the application is approved by Town Council, the applicant will bring the signed paperwork to the Arizona Department of Liquor, and be issued a physical license to be displayed for the duration of the event.  Related Ordinance, Policy or Guiding Principle A.R.S. §4-203.02; 4-244; 4-261 and R1-1-228, R19-1-235, and R19-1-309. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the Special Event Liquor License.  SUGGESTED MOTION MOVE to approve a Special Event Liquor License for Senior Services Inc. Attachments Application  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 12/04/2019 02:34 PM Town Attorney Aaron D. Arnson 12/04/2019 03:24 PM Town Manager Grady E. Miller 12/04/2019 03:45 PM Form Started By: Jennifer Lyons Started On: 12/04/2019 10:46 AM Final Approval Date: 12/04/2019  ITEM 6. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: Kukkola Sonia, Financial Services Technician Staff Contact Information: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving a Liquor License Application for Aguamenti, located at 16842 E. Parkview Avenue #2, Fountain Hills, Arizona, for a Series 7 (Wine & Beer) license.  Staff Summary (Background) The purpose of this item is to obtain the Town Council's recommendation regarding a liquor license application submitted by Donna Chavez, owner of Aguamenti, for submission to the Arizona Department of Liquor. Staff reviewed the liquor license application and found that it is in full compliance with Town ordinances. Related Ordinance, Policy or Guiding Principle A.R.S.§4-201; 4-202;4-203 &4-205 and R19-1-102 and R19-1-311. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the liquor license application. SUGGESTED MOTION MOVE to approve a #7 liquor license application for Aguamenti. Attachments Dept Recommendation  Application  Form Review Inbox Reviewed By Date Finance Director David Pock 12/04/2019 03:21 PM Town Attorney Aaron D. Arnson 12/04/2019 03:23 PM Town Manager Grady E. Miller 12/04/2019 03:42 PM Form Started By: Kukkola Sonia Started On: 12/04/2019 09:51 AM Final Approval Date: 12/04/2019  TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO: (as applicable) • Streets Division • Fire Department • Building Division • Community Services • Development Services • Law Enforcement • Licensing DATE: 12/2/19 FR: Sonia Kukkola, Financial Services Technician RE: Liquor License Application Attached is a Liquor License Application for staff review. Review the application, then mark or sign, indicating staff’s recommendation for approval (with or without stipulations) or denial. If staff’s recommendation is to deny and/or there are stipulations for approval, please attach a memo that specifies the reasoning and the memo will be forwarded on to the Town Council for their consideration of this application. Name of Organization: Aguamenti, 16842 E. Parkview Avenue #2, Fountain Hills AZ 85268 Applicant: Donna Chavez Date(s) of Event: N/A Date Application Received: 11/04/19 Town Council Agenda Date: 12/17/19 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A P & Z Marissa Moore X Community Services Linda Ayres N/A Peter Johnson Building Safety X Fire Department Jason Payne X Law Enforcement Larry Kratzer X Licensing Sonia Kukkola X Street Department Jeff Pierce X Attach report for denial or any recommendation requiring stipulations. REDACTED REDA CTED REDACTED REDACTED REDACTED REDACTE D REDACTED ITEM 6. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  adopting Ordinance 19-17, amending Chapter 7 of the Fountain Hills Zoning Ordinance by removing Sections 7.02 G., Storage and Parking of Commercial Vehicles in Residential Districts; H., Storage and Parking of Unoccupied, Non-commercial, Mobile Homes, Boats, Aircraft, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers; I. 2., Occupied Mobile Homes, Motor Homes, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers; and, J. Storage and Parking of Junk Automobiles and renumbering the remaining sections. Case #Z2019-07   Staff Summary (background) This ordinance is a simple housekeeping item.  In 2017 staff processed an amendment to the Town Code moving certain provisions found in Chapter 7 of the Zoning Ordinance into Chapter 12 of the Town Code.  The ordinance language added to Chapter 12 of the Town Code included some updates and revisions to the ordinance requirements.   It is not necessary, and can be confusing to have similar provisions in two sections of the Town ordinances.  It is beneficial, therefore, to amend the Zoning Ordinance to remove these provisions.  The attached ordinance is a simple strike-through of the existing provisions of Chapter 7 of the Zoning Ordinance that need to be removed.  Remaining sections have been renumbered.  No new or modified ordinance language is being proposed. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Chapter 7 Town Code Chapter 12 Risk Analysis Approval of the requested amendment will eliminate duplicative and out-of-date language from the Zoning Ordinance which will help with code enforcement.   Denial of the requested amendment will maintain current ordinance provisions. Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission recommends approval of this text amendment as written. Staff Recommendation(s) Staff recommends adoption of Ordinance 19-17. SUGGESTED MOTION MOVE to adopt Ordinance 19-17. Attachments Ord. 19-17  Form Review Inbox Reviewed By Date Town Clerk Elizabeth A. Burke 11/18/2019 12:29 PM Development Services Director (Originator)John Wesley 11/18/2019 12:41 PM Town Attorney Aaron D. Arnson 11/18/2019 12:52 PM Town Manager Grady E. Miller 11/21/2019 08:21 AM Form Started By: John Wesley Started On: 11/18/2019 10:22 AM Final Approval Date: 11/21/2019  ORDINANCE NO. 19-17 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS ZONING ORDINANCE, CHAPTER 7, PARKING AND LOADING REQUIREMENTS, DELETING SECTIONS 7.02 G., STORAGE AND PARKING OF COMMERCIAL VEHICLES IN RESIDENTIAL DISTRICTS; H., STORAGE AND PARKING OF UNOCCUPIED, NON-COMMERCIAL, MOBILE HOMES, BOATS, AIRCRAFT, TRUCK CAMPERS, CAMPING TRAILERS, TRAVEL TRAILERS, AND OTHER TRAILERS; I. 2., OCCUPIED MOBILE HOMES, MOTOR HOMES, TRUCK CAMPERS, CAMPING TRAILERS, TRAVEL TRAILERS, AND OTHER TRAILERS; and, J. STORAGE AND PARKING OF JUNK AUTOMOBILES, AND RENUMBERING THE REMAINING SECTIONS RECITALS: WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) adopted Ordinance No. 93-22 on November 18, 1993, which adopted the Zoning Ordinance for the Town of Fountain Hills (the “Zoning Ordinance”); and WHEREAS, the Town Council desires to amend the Zoning Ordinance to revise Chapter 7, Parking and Loading Requirements, relating to provisions for the storage of various types of vehicles and equipment; and WHEREAS, the Town Council through Ordinance number 17-02 updated and moved these same provisions to Chapter 12 of the Town Code; and WHEREAS, in accordance with the Zoning Ordinance and pursuant to ARIZ. REV. STAT. § 9- 462.04, public hearings regarding this ordinance were advertised in the October 30, 2019 and November 6, 2019 editions of the Fountain Hills Times; and WHEREAS, public hearings were held by the Fountain Hills Planning & Zoning Commission on November 14, 2019 and by the Town Council on December 17, 2019. ENACTMENTS: NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Zoning Ordinance, Chapter 7, (Parking and Loading Requirements), Section 7.02 (General Regulations), is hereby amended as follows: G. Storage and Parking of Commercial Vehicles in Residential Districts: 1. Except while loading, unloading, delivering, or making a service call at a residence, no person shall park or store a commercial vehicle, as defined in Arizona Rev. Stat. 28-2231, and with a chassis rated for more than three and one half tons nor ORDINANCE 19-17 PAGE 2 any vehicle greater than 22-feet in length on streets in residential districts or within the following areas on residential lots. a. Within the front or street side yard. b. Within the side or rear yard unless the vehicle is located behind a six foot high solid masonry, concrete, or earthen product wall. Further, any access gates shall be constructed of view-obscuring materials to provide effective site screening. 2. Except while loading, unloading, delivering or making a service call at a residence, no person shall park or store any commercially registered vehicle with a chassis rated for more than five tons anywhere in residential districts. H. Storage and parking of Unoccupied, Non-commercial, Mobile Homes, Boats, Aircraft, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers: 1. Unoccupied, non-commercial motor homes, camping, travel, and utility trailers and boats shall only be stored, parked, or located as follows: a. Where such vehicle is parked or stored on a residential lot, said vehicle must be behind a six-foot high solid masonry, concrete, or earthen product wall; any access gates shall be constructed of view-obscuring materials to provide site screening. b. Where such vehicle or trailer is in the process of being loaded or unloaded, such vehicles shall not be located in that portion of a lot that is in the front of the primary structure at anytime for more than two (2) consecutive days. c. Where a temporary visitor permit has been issued by the Zoning Administrator and said permit is displayed on the right side of the dashboard of such vehicle or in such location on the trailer as designated and approved by the Zoning Administrator. d. Such vehicles and trailers must not be located on a residentially zoned lot or parcel of land that does not have a residential structure. In planned unit development projects, screened storage yards may be allowed; however, occupancy of any vehicle in the storage yard is prohibited. e. In all non-residential zoning districts, such vehicles must be located behind the rear of the principal building, except where such vehicles are for sale by a business with a valid town business license. 2. If storage or parking, as required by this section, is not feasible, the Zoning Administrator may issue an Administrative Use Permit to park or store vehicles under this section in an alternative manner. IG. Storage and Parking of Occupied Vehicles: 1. Construction Office or Security Personnel Housing. The Zoning Administrator may issue an Administrative Use Permit to park a mobile home, motor home, truck ORDINANCE 19-17 PAGE 3 camper, or trailer in any zone where said vehicle is used to conduct business or provide housing for security personnel during the construction of a permanent building when a valid building permit is in effect. Such a mobile home or trailer shall be removed immediately upon the stoppage of construction. 2. Occupied Mobile Homes, Motor Homes, Truck Campers, Camping Trailers, Travel Trailers, and Other Trailers. For purposes of this subsection, the term "occupied" means a vehicle used for living, sleeping, or housekeeping purposes. Except as otherwise provided in this section. a. Occupied mobile homes shall be located only in approved mobile home parks or subdivisions approved for mobile homes. b. Occupied motor homes, camping trailers, truck campers, and travel trailers may be located only in recreational vehicle parks or recreational vehicle subdivisions. 32. Temporary Sales Offices for Subdivisions. After obtaining a Temporary Use Permit and a Building permit for a model home, a mobile home may be used for temporary real estate sales, subject to the following stipulations: a. An all-weather access route to the mobile home has been approved by the Town Engineer. b. A delineated parking area is provided for customer and sales personnel vehicles that is away from construction activity and traffic, with a minimum of one off-street a space for each person stationed at the mobile home plus two spaces. c. The mobile home must have indoor restroom facilities available to all patrons. d. The mobile home must be removed from the site prior to the opening of the model home. e. On-site sales personnel must be present at least five days a week during normal business hours. In no event shall a mobile home under this section be open before 7:00 A.M. or after 9:00 P.M. f. The business conducted in the mobile home is restricted to sales and marketing associated with tract subdivision within which the mobile home is located. g. The Temporary Use Permit shall not be for more than 120 days. h. The mobile home shall be skirted with material similar to the siding of the mobile home. i. There shall be a landscaped area at least equivalent to the square footage of the mobile home. Landscaping shall consist of at least one five-gallon plant for each ten lineal feet of the longest side of the mobile home. ORDINANCE 19-17 PAGE 4 J. Storage and Parking of Junk Automobiles: 1. Definition. "Junk Automobile" means any vehicle missing one or more body parts; or that is incapable of operating under its own power; or that is missing any wheels; or that is missing or has severely shattered glass which prohibits safe operation; or that has one or more flat tires for a period of seventy-two (72) or more hours. 2. Junk Automobiles. In open space recreational and residential zoning districts, junk automobiles shall be stored in a completely enclosed building. In commercial and industrial zoning districts, junk automobiles shall be stored in an enclosed building or in an area that is screened from neighboring properties and public view. KH. Aircraft: Aircraft may only be located in industrial zones and must be located in an area screened from public view. SECTION 3. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose and intent of this Ordinance. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona , this 17th day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney ITEM 7. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF appointment to the McDowell Mountain Preservation Commission. Staff Summary (Background) With the resignation of Bill Meyers from the McDowell Mountain Preservation Commission, effective December 31, 2019, a vacancy was advertised in the Fountain Hills Times and on the Town's website. The Town received four applications and the Council Subcommittee will be interviewing these applicants on Monday, December 16, 2019, to provide a recommendation to the Mayor for appointment at the December 17, 2019, Regular Council Meeting. This appointment would be for a term expiring October 31, 2020.   Related Ordinance, Policy or Guiding Principle Chapter 2A of the Town Code Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Make one appointment for a term ending October 31, 2020. SUGGESTED MOTION MOVE to appoint _________  to the McDowell Mountain Preservation Commission, with a term ending October 31, 2020. Form Review Inbox Reviewed By Date Finance Director Elizabeth A. Burke 12/11/2019 06:32 AM Town Attorney Elizabeth A. Burke 12/11/2019 06:32 AM Town Manager Grady E. Miller 12/11/2019 10:20 AM Form Started By: Elizabeth A. Burke Started On: 12/11/2019 06:24 AM Final Approval Date: 12/11/2019  ITEM 7. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  PUBLIC HEARING ON proposed Development Impact Fee Report. Staff Summary (Background) The Town of Fountain Hills contracted with TischlerBise to review and update the Town's development impact fee schedule. Development impact fees are charged to developers to recover the cost of critical infrastructure that is required due to the impact of new residential and commercial developments in town. As required by A.R.S. §9-463.05, the Town Council completed the first phase of this process by passing and adopting Resolution 2019-53 during their regular meeting on November 13, 2019. That resolution adopted the Town's Land Use Assumptions (LUA) and Infrastructure Improvements Plan (IIP) and also provided the Town's Notice of Intent to assess development impact fees. The second phase includes a public hearing on the Development Impact Fee Report, which is required at least 30 days after adoption of the LUA and IIP. Based on the analysis done in the LUA and IIP, development impact fees were calculated and included in the Development Fee Report. This report can be found on pages 4-10 of the attached TischlerBise document. At the Town Council meeting on December 17, 2019, the Town Council will hold a public hearing for the purpose of accepting public comments on the proposed fee report.  Following the public comment period, the Mayor will close the public hearing.  The Town Council will have an opportunity to adopt a resolution approving the fee report during its regular meeting on January 21, 2020. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A SUGGESTED MOTION There is no action required at this time. Attachments Development Impact Fee Report  Form Review Inbox Reviewed By Date Finance Director (Originator)David Pock 12/04/2019 03:19 PM Town Attorney Aaron D. Arnson 12/04/2019 03:36 PM Town Manager Grady E. Miller 12/04/2019 03:56 PM Form Started By: David Pock Started On: 12/04/2019 05:24 AM Final Approval Date: 12/04/2019  DRAFT Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report Prepared for: Town of Fountain Hills, Arizona November 5, 2019 4701 Sangamore Road Suite S240 Bethesda, MD 20816 301.320.6900 www.TischlerBise.com DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona [PAGE INTENTIONALLY LEFT BLANK] DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona i TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................................... 1 Arizona Development Fee Enabling Legislation ................................................................................ 1 Necessary Public Services ................................................................................................................................. 1 Infrastructure Improvements Plan ................................................................................................................... 2 Qualified Professionals ...................................................................................................................................... 2 Conceptual Development Fee Calculation ...................................................................................................... 3 Evaluation of Credits/Offsets ............................................................................................................................ 3 DEVELOPMENT FEE REPORT ................................................................................................................ 4 Methodology ........................................................................................................................................... 4 Service Areas ........................................................................................................................................... 6 Current Development Fees ................................................................................................................... 8 Proposed Development Fees ................................................................................................................. 9 Difference between proposed and current development fees ........................................................ 10 PARKS AND RECREATION FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN ............................ 11 Service Area ....................................................................................................................................................... 11 Proportionate Share .......................................................................................................................................... 12 Ratio of Service Units to Development Units ................................................................................... 13 Analysis of Capacity, Usage, and Costs of Existing Public Services ............................................. 13 Developed Park Land – Incremental Expansion .......................................................................................... 14 Park Amenities – Incremental Expansion ..................................................................................................... 15 Development Fee Report – Plan-Based ......................................................................................................... 17 Projected Demand for Services And Costs ........................................................................................ 17 Parks and Recreation Facilities IIP ..................................................................................................... 19 Parks and Recreation Facilities Development Fees .......................................................................... 20 Revenue Credit/Offset ..................................................................................................................................... 20 Proposed Parks and Recreation Facilities Development Fees .................................................................... 20 Forecast of Parks and Recreation Facilities Development Fee Revenues ..................................... 21 FIRE FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN .............................................................. 22 Service Area ....................................................................................................................................................... 22 Proportionate Share .......................................................................................................................................... 23 Ratio of Service Units to development units ..................................................................................... 24 Analysis of Capacity, Usage, and Costs of Existing Public Services ............................................. 24 Fire Apparatus – Incremental Expansion ...................................................................................................... 25 Fire Equipment – Incremental Expansion ..................................................................................................... 26 Development Fee Report – Plan-Based ......................................................................................................... 27 Projected Service Units and Projected Demand for Services .......................................................... 27 Fire Facilities IIP ................................................................................................................................... 29 Fire Facilities Development Fees ........................................................................................................ 30 Revenue Credit/Offset ..................................................................................................................................... 30 Proposed Fire Facilities Development Fees .................................................................................................. 30 Forecast of Fire Facilities Development Fee Revenues .................................................................... 31 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona ii STREET FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN .......................................................... 32 Service Area ....................................................................................................................................................... 32 Proportionate Share .......................................................................................................................................... 32 Ratio of Service Units to Development Units ................................................................................... 33 Service Units ...................................................................................................................................................... 33 Trip Generation Rates ...................................................................................................................................... 33 Adjustment for Commuting Patterns ............................................................................................................ 34 Adjustment for Pass-By Trips ......................................................................................................................... 34 Analysis of Capacity, Usage, and Costs of Existing Public Services ............................................. 35 Travel Demand Model ..................................................................................................................................... 35 Calibrated Travel Demand Model ................................................................................................................. 37 Arterial Improvements – Plan-Based ............................................................................................................... 38 Improved Intersections – Incremental Expansion .......................................................................................... 39 Development Fee Report – Plan-Based ......................................................................................................... 40 Street Facilities Development Fees ..................................................................................................... 41 Revenue Credit/Offset ..................................................................................................................................... 41 Proposed Street Facilities Development Fees ............................................................................................... 41 Projected Street Facilities Development Fee Revenue ..................................................................... 42 APPENDIX A: LAND USE ASSUMPTIONS ........................................................................................... 43 Executive Summary ............................................................................................................................. 43 Service Areas ......................................................................................................................................... 43 Summary of Growth Indicators .......................................................................................................... 46 Residential Development .................................................................................................................... 47 Recent Residential Construction .................................................................................................................... 47 Household Size ................................................................................................................................................... 48 Seasonal Households ......................................................................................................................................... 49 Population Estimates ......................................................................................................................................... 49 Population Projections ...................................................................................................................................... 50 Nonresidential Development .............................................................................................................. 51 Employment Estimates .................................................................................................................................... 51 Nonresidential Square Footage Estimates ..................................................................................................... 52 Employment and Nonresidential Floor Area Projections ........................................................................... 53 Average Weekday Vehicle Trips ........................................................................................................ 54 Trip Rate Adjustments ..................................................................................................................................... 54 Commuter Trip Adjustment ........................................................................................................................... 54 Adjustment for Pass-By Trips ......................................................................................................................... 55 Estimated Residential Vehicle Trip Rates ..................................................................................................... 55 Functional Population ...................................................................................................................................... 56 Development Projections ...................................................................................................................... 57 APPENDIX B: LAND USE DEFINITIONS .............................................................................................. 58 Residential Development ...................................................................................................................... 58 Nonresidential Development ................................................................................................................ 59 APPENDIX C: FORECAST OF REVENUES ............................................................................................. 60 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 1 EXECUTIVE SUMMARY The Town of Fountain Hills hired TischlerBise to document land use assumptions, prepare an Infrastructure Improvements Plan (hereinafter referred to as the “IIP”), and update development fees pursuant to Arizona Revised Statutes (“ARS”) § 9-463.05 (hereinafter referred to as the “Enabling Legislation”). Municipalities in Arizona may assess development fees to offset infrastructure costs to a municipality for necessary public services. The development fees must be based on an Infrastructure Improvements Plan and Land Use Assumptions. The IIPs for each type of infrastructure are located in each infrastructure type’s corresponding section, and the Land Use Assumptions can be found in Appendix A. The proposed development fees are displayed in the Development Fee Report chapter. Development fees are one-time payments used to construct system improvements needed to accommodate new development. The fee represents future development’s proportionate share of infrastructure costs. Development fees may be used for infrastructure improvements or debt service for growth related infrastructure. In contrast to general taxes, development fees may not be used for operations, maintenance, replacement, or correcting existing deficiencies. This update of the Town’s Infrastructure Improvements Plan and associated update to its development fees includes the following necessary public services: • Parks and Recreation Facilities • Fire Facilities • Street Facilities This plan also includes all necessary elements required to be in full compliance with Arizona Revised Statutes (“ARS”) § 9-463.05 (SB 1525). It should be noted that this Infrastructure Improvements Plan and Development Fee study does not include storm water, drainage or flood control facilities. ARIZONA DEVELOPMENT FEE ENABLING LEGISLATION The Enabling Legislation governs how development fees are calculated for municipalities in Arizona. Necessary Public Services Under the requirements of the Enabling Legislation, development fees may only be used for construction, acquisition or expansion of public facilities that are necessary public services. “Necessary public service” means any of the following categories of facilities that have a life expectancy of three or more years and that are owned and operated on behalf of the municipality: water, wastewater, storm water, drainage, flood control, library, streets, fire and police, and neighborhood parks and recreation. Additionally, a necessary public service includes any facility, not included in the aforementioned categories (e.g., general government facilities), that was financed before June 1, 2011 and that meets the following requirements: 1. Development fees were pledged to repay debt service obligations related to the construction of the facility. 2. After August 1, 2014, any development fees collected are used solely for the payment of principal and interest on the portion of the bonds, notes, or other debt service obligations issued before June 1, 2011 to finance construction of the facility. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 2 Infrastructure Improvements Plan Development fees must be calculated pursuant to an IIP. For each necessary public service that is the subject of a development fee, by law, the IIP shall include the following seven elements: • A description of the existing necessary public services in the service area and the costs to update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable. • An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable. • A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved Land Use Assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable. • A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial. • The total number of projected service units necessitated by and attributable to new development in the service area based on the approved Land Use Assumptions and calculated pursuant to generally accepted engineering and planning criteria. • The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed 10 years. • A forecast of revenues generated by new service units other than development fees, which shall include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved Land Use Assumptions and a plan to include these contributions in determining the extent of the burden imposed by the development. Qualified Professionals The IIP must be developed by qualified professionals using generally accepted engineering and planning practices. A qualified professional is defined as “a professional engineer, surveyor, financial analyst or planner providing services within the scope of the person’s license, education, or experience.” TischlerBise is a fiscal, economic, and planning consulting firm specializing in the cost of growth services and is licensed to do business in Arizona. Our services include development fees, fiscal impact analysis, infrastructure financing analyses, user fee/cost of service studies, capital improvement plans, and fiscal software. TischlerBise has prepared over 900 development fee studies over the past 40 years for local governments across the United States. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 3 Conceptual Development Fee Calculation In contrast to project-level improvements, development fees fund growth-related infrastructure that will benefit multiple development projects, or the entire service area (usually referred to as system improvements). The first step is to determine an appropriate demand indicator for the particular type of infrastructure. The demand indicator measures the number of service units for each unit of development. For example, an appropriate indicator of the demand for parks is population growth and the increase in population can be estimated from the average number of persons per housing unit. The second step in the development fee formula is to determine infrastructure improvement units per service unit, typically called Level of Service standards, sometimes referred to as LOS. In keeping with the park example, a common LOS standard is improved park acres per thousand people. The third step in the development fee formula is the cost of various infrastructure units. To complete the park example, this part of the formula would establish a cost per acre for land acquisition and/ or park improvements. Evaluation of Credits/Offsets Regardless of the methodology, a consideration of credits/offsets is integral to the development of a legally defensible development fee. There are two types of credits/offsets that should be addressed in development fee studies and ordinances. The first is a revenue credit/offset due to possible double payment situations, which could occur when other revenues may contribute to the capital costs of infrastructure covered by the development fee. This type of credit/offset is integrated into the fee calculation, thus reducing the fee amount. The second is a site-specific credit or developer reimbursement for dedication of land or construction of system improvements. This type of credit is addressed in the administration and implementation of the development fee program. For ease of administration, TischlerBise normally recommends developer reimbursements for system improvements. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 4 DEVELOPMENT FEE REPORT METHODOLOGY Development fees for the necessary public services made necessary by new development must be based on the same level of service provided to existing development in the service area. There are three basic methodologies used to calculate development fees. They examine the past, present, and future status of infrastructure. The objective of evaluating these different methodologies is to determine the best measure of the demand created by new development for additional infrastructure capacity. Each method has advantages and disadvantages in a particular situation and can be used simultaneously for different cost components. Additionally, development fees for public services can also include the cost of professional services for preparing IIP’s and the related Development Fee report. Reduced to its simplest terms, the process of calculating development fees involves two main steps: (1) determining the cost of development-related capital improvements and (2) allocating those costs equitably to various types of development. In practice, though, the calculation of development fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for facilities within the designated service area. The following paragraphs discuss basic methods for calculating development fees and how those methods can be applied. • Cost Recovery (past improvements) - The rationale for recoupment, often called cost recovery, is that new development is paying for its share of the useful life and remaining capacity of facilities already built, or land already purchased, from which new growth will benefit. This methodology is often used for utility systems that must provide adequate capacity before new development can take place. • Incremental Expansion (concurrent improvements) - The incremental expansion method documents current level of service standards for each type of public facility, using both quantitative and qualitative measures. This approach assumes there are no existing infrastructure deficiencies or surplus capacity in infrastructure. New development is only paying its proportionate share for growth-related infrastructure. Revenue will be used to expand or provide additional facilities, as needed, to accommodate new development. An incremental expansion cost method is best suited for public facilities that will be expanded in regular increments to keep pace with development. • Plan-Based (future improvements) - The plan-based method allocates costs for a specified set of improvements to a specified amount of development. Improvements are typically identified in a long-range facility plan and development potential is identified by a land use plan. There are two basic options for determining the cost per demand unit: (1) total cost of a public facility can be divided by total demand units (average cost), or (2) the growth-share of the public facility cost can be divided by the net increase in demand units over the planning timeframe (marginal cost). DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 5 A summary is provided in Figure 1 showing the methodology for each necessary public service, as well as the service area and cost allocation method used to develop the IIP and calculate the development fees. Due to the present uncertainty of development intensity, timeliness, and conveyance of State Land property in the Fountain Hills service area, it is recommended that growth-related transportation impacts be addressed through both plan-based and incremental expansion methodologies. Figure 1: Recommended Calculation Methodologies Rounding A note on rounding: Calculations throughout this report are based on an analysis conducted using Excel software. Most results are discussed in the report using two, three, and four-digit places, which represent rounded figures. However, the analysis itself uses figures carried to their ultimate decimal places; therefore, the sums and products generated in the analysis may not equal the sum or product if the reader replicates the calculation with the factors shown in the report (due to the rounding of figures shown, not in the analysis). Incremental Expansion Parks and Recreation Townwide Developed Park Land, Park Amenities Development Fee Report N/A Population, Jobs Fire Townwide Fire Apparatus, Fire Equipment Development Fee Report N/A Population, Jobs Street Townwide Improved Intersections Arterial Improvements, Development Fee Report N/A VMT Necessary Public Service Service Area Plan-Based Cost Recovery Cost Allocation DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 6 SERVICE AREAS ARS 9-463.05 defines “service area” as follows: Any specified area within the boundaries of a municipality in which development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the infrastructure improvements plan. The Town’s previous Land Use Assumptions, Infrastructure Improvement Plan, and Development Fee Report recommended one service area, shown below in Figure 2. Figure 2: Current Development Fee Service Area DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 7 Much of the land in Fountain Hills has been developed with approximately 24 percent, or 2,400, of the 9,780 developable acres remaining until the community reaches “build out,” a state of maximum development under the adopted plan. As development of the remaining available land proceeds, it is important to identify any additional demands, and associated costs, for services that will be utilized by future development including the provision of adequate park and recreational space, transportation networks, fire apparatus and equipment. All of the elements incorporated into the study are intended to serve the entire Town with a standard level of service as opposed to bounded districts or subareas. As an example, referring to Figure 3, a new residential development in Section 2 is still likely to utilize regional recreational amenities and transportation infrastructure located throughout Town. Furthermore, fire demands change over time based on migration patterns of people and are not necessarily restricted to specific geographic sub-zones. As such, TischlerBise recommends a townwide service area for all fees. Figure 3: Proposed Development Fee Service Area DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 8 CURRENT DEVELOPMENT FEES Fountain Hills’ current development fees are shown below in Figures 4 and 5. Demand for services (parks and recreation, fire, and streets) is driven by the intensity of the use on those particular services; therefore, fees are assessed based on development type – residential or nonresidential. Current fees are shown in Figure 4 for residential development and in Figure 5 for nonresidential development. It is worth noting there are currently no fees for street improvements. Figure 4: Current Residential Development Fees Figure 5: Current Nonresidential Development Fees Residential Development Development Type Fire Parks and Recreation Street Total Single Family $300 $1,301 $0 $1,601 Multi-Family $300 $1,301 $0 $1,601 Development Fees per Unit Nonresidential Development Development Type Fire Parks and Recreation Street Total Industrial $0.24 $0.00 $0.00 $0.24 Commercial $0.24 $0.00 $0.00 $0.24 Institutional $0.24 $0.00 $0.00 $0.24 Office $0.24 $0.00 $0.00 $0.24 Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 9 PROPOSED DEVELOPMENT FEES The proposed fees are based on a policy-level concept that development fees should fund 100 percent of growth-related infrastructure, therefore the fees shown below represent the maximum allowable fees. Fountain Hills may adopt fees that are less than the amounts shown; however, a reduction in development fee revenue will necessitate an increase in other revenues, a decrease in planned capital improvements, and/or a decrease in Fountain Hills’ level-of-service standards. All costs in the Development Fee Report are in current dollars with no assumed inflation rate over time. If cost estimates change significantly over time, development fees should be recalibrated. Proposed development fees are shown below in Figures 6 and 7. Development fees for residential development are assessed per dwelling unit, based on the type of unit. Nonresidential development fees are assessed per square foot of floor area. Figure 6: Proposed Residential Development Fees Figure 7: Proposed Nonresidential Development Fees Residential Development Development Type Fire Parks and Recreation Street Total Single Family $122 $1,916 $1,935 $3,974 Multi-Family $94 $1,479 $964 $2,537 Development Fees per Unit Nonresidential Development Development Type Fire Parks and Recreation Street Total Industrial $0.10 $0.56 $0.63 $1.29 Commercial $0.14 $0.81 $2.86 $3.82 Institutional $0.06 $0.32 $2.48 $2.86 Office $0.18 $1.03 $1.24 $2.45 Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 10 DIFFERENCE BETWEEN PROPOSED AND CURRENT DEVELOPMENT FEES The differences between the proposed and current development fees are displayed below in Figure 8 for residential development and Figure 9 for nonresidential development. Figure 8: Difference Between Proposed and Current Residential Development Fees Figure 9: Difference Between Proposed and Current Nonresidential Development Fees Residential Development Development Type Fire Parks and Recreation Street Fee Change Single Family ($178)$615 $1,935 $2,373 Multi-Family ($206)$178 $964 $936 Development Fees per Unit Nonresidential Development Development Type Fire Parks and Recreation Street Fee Change Industrial ($0.14)$0.56 $0.63 $1.05 Commercial ($0.10)$0.81 $2.86 $3.58 Institutional ($0.19)$0.32 $2.48 $2.62 Office ($0.06)$1.03 $1.24 $2.21 Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 11 PARKS AND RECREATION FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN ARS § 9-463.05 (T)(7)(g) defines the facilities and assets that can be included in the Parks and Recreational Facilities IIP: “Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the development. Park and recreational facilities do not include vehicles, equipment or that portion of any facility that is used for amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses, community centers greater than three thousand square feet in floor area, environmental education centers, equestrian facilities, golf course facilities, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, zoo facilities or similar recreational facilities, but may include swimming pools.” The Parks and Recreation Facilities IIP includes components for developed park land, park amenities, and the cost of professional services for preparing the Parks and Recreation Facilities IIP and related Development Fee Report. An incremental expansion methodology is used for developed park land, and park amenities. A plan-based methodology is used for the Development Fee Report. Service Area The Town of Fountain Hills plans to provide a uniform level of service and equal access to parks and recreational facilities within the Town limits. The parks and recreation programs are structured and provided to make full use of Fountain Hills’ total inventory of facilities. Therefore, the Parks and Recreation Facilities IIP uses a townwide service area. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 12 Proportionate Share ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost of necessary public services needed to accommodate new development. TischlerBise recommends peak daytime population as a reasonable indicator of the potential demand for Parks and Recreational Facilities from residential and nonresidential development. According to the U.S. Census Bureau web application OnTheMap, there were 2,929 inflow commuters in 2015, which is the number of persons who work in Fountain Hills but live outside the Town. OnTheMap is a web-based mapping and reporting application that shows where workers are employed and where they live. It describes geographic patterns of jobs by their employment locations and residential locations as well as the connections between the two locations. OnTheMap was developed through a unique partnership between the U.S. Census Bureau and its Local Employment Dynamics (LED) partner states. OnTheMap data is used, as shown in Figure PK1, to derive functional population shares for Fountain Hills. The estimated peak population in 2015, which includes seasonal residents, was 28,282 persons. The study uses 2015 data because this the most recent year available for inflow/outflow data. As shown in Figure PK1, the proportionate share is based on cumulative impact days per year with residents potentially impacting parks and recreational facilities 365 days per year. Inflow commuters potentially impact park and recreational facilities 250 days per year, assuming 5 workdays per week multiplied by 50 weeks per year. For parks and recreational facilities, residential development generates 93 percent of demand and nonresidential development generates the remaining seven percent of demand. Figure PK1: Daytime Population in 2015 Fountain Hills Residents Inflow Commuters Residential 1 Nonresidential 2 Total Residential Nonresidential 28,282 2,929 10,322,928 732,250 11,055,178 93%7% 1. Days per Year = 365 365 2. Days per Year = 250 (5 Days per Week x 50 Weeks per Year)250 Cost Allocation for ParksCumulative Impact Days per Year Source: Maricopa Association of Goverments 2015 Population Estimate; TischlerBise Peak Population Analysis; U.S. Census Bureau, OnTheMap 6.1.1 Application, 2015. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 13 RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS ARS § 9-463.05(E)(4) requires: “A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial.” Figure PK2 displays the demand indicators for residential and nonresidential land uses. For residential development, the table displays the persons per household for single-family (or single unit) and multi- family units. For nonresidential development, the table displays the number of employees per thousand square feet of floor area for four different types of nonresidential development. Figure PK2: Parks and Recreational Facilities Ratio of Service Unit to Development Unit ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES ARS § 9-463.05(E)(1) requires: “A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.” ARS § 9-463.05(E)(2) requires: “An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable.” Development Type Persons per Household1 Single Family 2.15 Multi-Family 1.66 Development Type Jobs per 1,000 Sq. Ft1 Industrial 1.63 Commercial 2.34 Institutional 0.93 Office 2.97 1. See Land Use Assumptions Residential Development Nonresidential Development DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 14 Developed Park Land – Incremental Expansion The summary of developed neighborhood and community park land in Fountain Hills is displayed in Figure PK3. Town-owned golf courses, regional parks, retention ponds, and conservation parks were excluded from the inventory. Fountain Hills has a total of 127 acres of developed park land. The level of service for residential development is 0.00410 acres per resident, which is calculated by multiplying the total number of acres (127) by the residential proportionate share (93 percent) and dividing this total by the 2018 peak population (28,840). The nonresidential level of service is 0.00161 acres per job, which is found by multiplying the total number of acres (127) by the nonresidential proportionate share (7 percent) and dividing this total by the number of jobs in 2018 (5,521). The analysis uses a developed cost of $40,000 per acre – this includes infrastructure costs and excludes land acquisition costs. Multiplying the average cost per developed acre of park land ($40,000) by the residential and nonresidential levels of service results in a cost of $163.81 per person and $64.41 per job. Note that while the LOS standards shown are rounded to the fifth decimal place, the analysis does not round these figures. Figure PK3: Developed Park Land Level-of-Service Standards Description Developed Acres Desert Vista Park 12.0 Fountain Park 65.0 Four Peaks Park 14.0 Golden Eagle Park 25.0 Avenue Plaza 3.0 Botanical Garden Preserve 8.0 Total 127.0 Developed Cost per Acre1 $40,000 Existing Developed Acres 127.0 Residential Share 93% 2018 Peak Population 28,840 Developed Acres per Person 0.00410 Cost per Person $163.81 Nonresidential Share 7% 2018 Jobs 5,521 Developed Acres per Job 0.00161 Cost per Job $64.41 1. Includes infrastructure costs but excludes acquisition costs. Cost Allocation Factors Level-of-Service Standards Residential Nonresidential DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 15 Park Amenities – Incremental Expansion Fountain Hills’ park amenities inventory is displayed in Figure PK4. Fountain Hills parks have 70 amenities, which have a total replacement cost of about $22.1 million. Dividing the total replacement cost by the total number of amenities yields an average cost per amenity of $315,757 as shown in Figure PK4. Figure PK4: Park Amenities Inventory Description Units Unit Cost Replacement Cost GE-Softball Fields 3 $725,000 $2,175,000 GE-Baseball Fields 1 $625,000 $625,000 GE-Tennis Courts 4 $108,000 $432,000 GE-Basketball Courts 2 $120,000 $240,000 GE-Vollyball Courts 2 $24,000 $48,000 GE-Playgrounds (0-5 YO)1 $125,000 $125,000 GE-Playgrounds (5-12 YO)1 $230,000 $230,000 GE-Ramada (Saguaro)1 $168,000 $168,000 GE-Ramada (Ocotillo)1 $84,000 $84,000 GE-Ramada (Cottonwood)1 $84,000 $84,000 GE-Restrooms 1 $420,000 $420,000 GE-Parking Lot 3 $525,938 $1,577,814 FP-Splash Pad 1 $480,000 $480,000 FP-Great Lawn 1 $475,000 $475,000 FP-Red Yucca Lawn 1 $475,000 $475,000 FP-Golden Barrel Lawn 1 $475,000 $475,000 FP-Disk Golf 1 $15,284 $15,284 FP-Walking Path 1 $380,284 $380,284 FP-Restrooms 1 $420,000 $420,000 FP-Playground (2-5 YO)1 $125,000 $125,000 FP-Musical Playground 1 $230,000 $230,000 FP-Playground (5-12 YO)1 $230,000 $230,000 FP-Ramada (Kiwanis)1 $168,000 $168,000 FP-Ramada (Red Yucca)1 $84,000 $84,000 FP-Ramada (Chuparosa)1 $84,000 $84,000 FP-Ramada (Golden Barrel)1 $84,000 $84,000 FP-Ramada (Ironwood)1 $84,000 $84,000 FP-Parking Lot 2 $525,938 $1,051,876 4P-Multi Use Field 2 $475,000 $950,000 4P-Parking Lot 2 $525,938 $1,051,876 4P-Playground (5-12 YO)2 $230,000 $460,000 4P-Ramada 1 $84,000 $84,000 4P-Restrooms 1 $420,000 $420,000 4P-Softball Field 2 $825,000 $1,650,000 4P-Foot Bridge 1 $750,000 $750,000 4P-Tennis Court 2 $108,000 $216,000 DV-Dog Park 1 $650,000 $650,000 DV-Multi Use Field 3 $475,000 $1,425,000 DV-Parking Lot 1 $525,938 $525,938 DV-Playground (5-12 YO)1 $230,000 $230,000 DV-Ramada 8 $84,000 $672,000 DV-Restroom 1 $420,000 $420,000 DV-Skate Park 1 $414,000 $414,000 Adero-Restrooom 1 $420,000 $420,000 Adero-Parking Lot 1 $525,938 $525,938 Adero-Ramada 1 $168,000 $168,000 Total 70 $315,757 $22,103,010 1. Parks and Recreation Department, City of Fountain Hills. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 16 The current residential level of service is 0.00226 amenities per resident, which was calculated by multiplying the 70 amenities by the residential proportionate share (93 percent) and dividing this amount by the current population (28,840). Similarly, the nonresidential level of service is 0.00089 units per job (5,521). Multiplying the average cost per amenity ($315,757) by the residential and nonresidential levels of service results in a cost of $712.75 per person and $280.24 per job. Note that while the LOS standards shown are rounded to the fifth decimal place, the analysis does not round these figures. Therefore, the cost analysis calculations may not produce the same result if the reader replicates the calculations using the factors shown (due to the rounding of figures shown, not in the analysis). Figure PK5: Park Amenities Level-of-Service Standards Cost per Amenity $315,757 Existing Amenities 70 Residential Share 93% 2018 Peak Population 28,840 Amenities per Person 0.00226 Cost per Person $712.75 Nonresidential Share 7% 2018 Jobs 5,521 Amenities per Job 0.00089 Cost per Job $280.24 Cost Allocation Factors Level-of-Service Standards Residential Nonresidential DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 17 Development Fee Report – Plan-Based The cost to prepare the Parks and Recreation IIP and Development Fees totals $16,640. Fountain Hills plans to update its report every five years. Based on this cost, proportionate share, and five-year projections of new development from the Land Use Assumptions document, the cost per person is $14.63 and the cost per job is $2.39. Figure PK6: Development Fee Report Cost Allocation PROJECTED DEMAND FOR SERVICES AND COSTS ARS § 9-463.05(E)(5) requires: “The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.” As shown in Figure PK8, the Land Use Assumptions projects an additional 2,163 persons and 872 jobs over the next 10 years. ARS § 9-463.05(E)(6) requires: “The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years.” These projected service units are multiplied by the current levels of service for the IIP components shown in Figures PK7 and PK8. New development will demand an additional 10.3 acres of developed park land, and 5.7 additional park amenities over the next 10 years. The park improvements and recreational facility totals demanded by new development multiplied by the respective costs suggests the Town will need to spend $2.19 million on new park improvements to accommodate projected demand, as shown in the bottom of Figure PK9. Necessary Public Service Cost Demand Unit 5-Year Change Cost per Demand Unit Residential 93%Population 1,058 $14.63 Nonresidential 7%Jobs 487 $2.39 Residential 81%Population 1,058 $12.74 Nonresidential 19%Jobs 487 $6.50 Street $16,640 All Development 100%VMT 11,512 $1.45 Total $49,920 Proportionate Share Fire $16,640 Parks and Recreation $16,640 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 18 Figure PK7: Projected Demand for Developed Park Land Figure PK8: Projected Demand for Park Amenities Demand Unit Cost per Unit 0.00410 Developed Acres per Person 0.00161 Developed Acres per Job Year Population Jobs Residential Acres Nonresidential Acres Total Acres 2018 28,840 5,521 118.1 8.9 127.0 2019 29,048 5,600 119.0 9.0 128.0 2020 29,258 5,789 119.8 9.3 129.1 2021 29,470 5,861 120.7 9.4 130.1 2022 29,683 5,934 121.6 9.6 131.1 2023 29,898 6,008 122.4 9.7 132.1 2024 30,115 6,083 123.3 9.8 133.1 2025 30,334 6,159 124.2 9.9 134.1 2026 30,555 6,236 125.1 10.0 135.2 2027 30,778 6,314 126.0 10.2 136.2 2028 31,003 6,393 127.0 10.3 137.3 10-Yr Increase 2,163 872 8.9 1.4 10.3 $354,274 $56,169 $410,443 Growth-Related Expenditures Level of ServiceType of Infrastructure Need for Developed Park Land $40,000Developed Park Land Demand Unit Cost per Unit 0.00226 Units per Person 0.00089 Units per Job Year Population Jobs Residential Units Nonresidential Units Total Units 2018 28,840 5,521 65.1 4.9 70.0 2019 29,048 5,600 65.6 5.0 70.5 2020 29,258 5,789 66.0 5.1 71.2 2021 29,470 5,861 66.5 5.2 71.7 2022 29,683 5,934 67.0 5.3 72.3 2023 29,898 6,008 67.5 5.3 72.8 2024 30,115 6,083 68.0 5.4 73.4 2025 30,334 6,159 68.5 5.5 73.9 2026 30,555 6,236 69.0 5.5 74.5 2027 30,778 6,314 69.5 5.6 75.1 2028 31,003 6,393 70.0 5.7 75.7 10-Yr Increase 2,163 872 4.9 0.8 5.7 $1,541,442 $244,390 $1,785,832 Growth-Related Expenditures Type of Infrastructure Level of Service Need for Park Amenities Park Amenities $315,757 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 19 PARKS AND RECREATION FACILITIES IIP ARS § 9-463.05(E)(3) requires: “A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.” Potential Parks and Recreation Facilities that Fountain Hills may use development fees for in order to accommodate new development over the next 10 years are shown in Figure PK9. Figure PK9: Parks & Recreation Facilities Infrastructure Improvements Plan Necessary Public Services Timeframe Cost Developed Park Land 2019-2028 $410,443 Park Amenities 2019-2028 $1,785,832 Total $2,196,275 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 20 PARKS AND RECREATION FACILITIES DEVELOPMENT FEES Revenue Credit/Offset A revenue credit/offset is not necessary for the Parks and Recreation Facilities development fees because 10-year growth costs exceed the amount of revenue that is projected to be generated by development fees according to the Land Use Assumptions, as shown in Figure PK11. Proposed Parks and Recreation Facilities Development Fees Infrastructure standards and cost factors for Parks and Recreation Facilities, including developed park land, park amenities, and the professional services cost for the IIP and Development Fee Report are summarized at the top of Figure PK10. The cost per service unit for Parks and Recreation Facilities development fees is $891.19 per person and $347.04 per job. Parks and Recreation Facilities development fees for residential development are assessed according to the number of persons per household. For example, the single-family fee of $1,916 is calculated using a cost per service unit of $891.19 per person multiplied by a demand unit of 2.15 persons per household. Nonresidential development fees are calculated using jobs as the service unit. The fee of $0.81 per square foot of commercial development is derived from a cost per service unit of $347.04 per job multiplied by a demand unit of 2.34 jobs per 1,000 square feet, divided by 1,000 square feet. Figure PK10: Proposed Parks and Recreation Facilities Development Fees Fee Component Cost per Person Cost per Job Developed Park Land $163.81 $64.41 Park Amenities $712.75 $280.24 Development Fee Report $14.63 $2.39 Total $891.19 $347.04 Residential Development Development Type Persons per Household1 Proposed Fees Current Fees Increase / Decrease Single Family 2.15 $1,916 $1,301 $615 Multi-Family 1.66 $1,479 $1,301 $178 Nonresidential Development Development Type Jobs per 1,000 Sq Ft1 Proposed Fees Current Fees Increase / Decrease Industrial 1.63 $0.56 $0.00 $0.56 Commercial 2.34 $0.81 $0.00 $0.81 Institutional 0.93 $0.32 $0.00 $0.32 Office 2.97 $1.03 $0.00 $1.03 1. See Land Use Assumptions Development Fees per Unit Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 21 FORECAST OF PARKS AND RECREATION FACILITIES DEVELOPMENT FEE REVENUES Appendix C contains the forecast of revenues required by Arizona’s Enabling Legislation. The top of Figure PK11 summarizes the growth-related cost of infrastructure in Fountain Hills over the next 10 years ($2.21 million). Fountain Hills should receive approximately $2.21 million in Parks and Recreation Facilities development fee revenue over the next 10 years if actual development matches the Land Use Assumptions. Figure PK11: Projected Parks and Recreation Facilities Development Fee Revenue Growth Share Existing Share Total Developed Park Land $410,443 $0 $410,443 Park Amenities $1,785,832 $0 $1,785,832 Development Fee Report $16,640 $0 $16,640 Total $2,212,915 $0 $2,212,915 Avg Residential Industrial Commercial Institutional Office $1,827 $0.56 $0.81 $0.32 $1.03 per unit per sq. ft.per sq. ft.per sq. ft.per sq. ft. Housing Units KSF KSF KSF KSF Base 2018 13,268 280 1,212 505 593 Year 1 2019 13,369 282 1,226 514 604 Year 2 2020 13,472 284 1,255 540 636 Year 3 2021 13,575 285 1,273 551 642 Year 4 2022 13,679 286 1,291 563 647 Year 5 2023 13,784 288 1,310 575 653 Year 6 2024 13,890 289 1,330 587 659 Year 7 2025 13,997 290 1,349 599 664 Year 8 2026 14,105 291 1,369 611 670 Year 9 2027 14,213 292 1,389 624 676 Year 10 2028 14,323 293 1,409 637 682 1,055 13 197 132 89 $1,911,191 $7,319 $159,645 $42,443 $91,512 $2,212,110 $2,212,915 Fee Component Projected Fee Revenue Total Expenditures 10-Year Increase Year Projected Revenue DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 22 FIRE FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN ARS § 9-463.05 (T)(7)(f) defines the facilities and assets that can be included in the Fire Facilities IIP: “Fire and police facilities, including all appurtenances, equipment and vehicles. Fire and police facilities do not include a facility or portion of a facility that is used to replace services that were once provided elsewhere in the municipality, vehicles and equipment used to provide administrative services, helicopters or airplanes or a facility that is used for training firefighters or officers from more than one station or substation.” The Fire Facilities IIP and Development Fees includes components for fire apparatus, fire equipment, and the cost of professional services for preparing the Fire Facilities IIP and related Development Fee Report. An incremental expansion methodology is used for fire apparatus and fire equipment, and a plan-based methodology is used for the Development Fee Report. Service Area The Town of Fountain Hills’ Fire Department strives to provide a uniform response time townwide, and its fire services operate as an integrated network. Depending on the number and type of calls, apparatus can be dispatched townwide from any of the stations. Therefore, the Fire Facilities IIP uses a townwide service area. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 23 Proportionate Share ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost of necessary public services needed to accommodate new development. TischlerBise recommends functional population to allocate the cost of fire facilities to residential and nonresidential development. Functional population is similar to what the U.S. Census Bureau calls "daytime population," by accounting for people living and working in a jurisdiction, but also considers commuting patterns and time spent at home and at nonresidential locations. OnTheMap is a web-based mapping and reporting application that shows where workers are employed and where they live. It describes geographic patterns of jobs by their employment locations and residential locations as well as the connections between the two locations. OnTheMap was developed through a unique partnership between the U.S. Census Bureau and its Local Employment Dynamics (LED) partner states. OnTheMap data is used, as shown in Figure F1, to derive Functional Population shares for Fountain Hills. Residents that do not work are assigned 20 hours per day to residential development and 4 hours per day to nonresidential development (annualized averages). Residents that work in Fountain Hills are assigned 14 hours to residential development and 10 hours to nonresidential development. Residents that work outside Fountain Hills are assigned 14 hours to residential development. Inflow commuters are assigned 10 hours to nonresidential development. Based on 2015 functional population data for Fountain Hills, the cost allocation for residential development is 81 percent while nonresidential development accounts for 19 percent of the demand for municipal facilities. Figure F1: Fire Proportionate Share Demand Person Proportionate Hours/Day Hours Share Residential Peak Population 28,282 Residents Not Working 19,127 20 382,540 Employed Residents 9,155 Employed in Service Area 1,495 14 20,930 Employed outside Service Area 7,660 14 107,240 Residential Subtotal 510,710 81% Nonresidential Non-working Residents 19,127 4 76,508 Jobs in Service Area 4,424 Residents Employed in Service Area 1,495 10 14,950 Non-Resident Workers (inflow Commuters)2,929 10 29,290 Nonresidential Subtotal 120,748 19% Total 631,458 100% Source: U.S. Census Bureau, OnTheMap 6.5 Application and LEHD Origin-Destination Employment Statistics, 2015. Demand Units in 2015 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 24 RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS ARS § 9-463.05(E)(4) requires: “A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial/retail, industrial, and office/other services.” Figure F2 displays the ratio of service units to various types of land uses for residential and nonresidential development. For residential development, the table displays the persons per household for single-family (or single unit) and multi-family units. For nonresidential development, the table displays the number of employees per thousand square feet of floor area for four different types of nonresidential development. Figure F2: Persons Per Housing Type and Nonresidential Jobs per Demand Unit ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES ARS § 9-463.05(E) (1) requires: “A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.” ARS § 9-463.05(E)(2) requires: “An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable.” Development Type Persons per Household1 Single Family 2.15 Multi-Family 1.66 Development Type Jobs per 1,000 Sq. Ft1 Industrial 1.63 Commercial 2.34 Institutional 0.93 Office 2.97 1. See Land Use Assumptions Residential Development Nonresidential Development DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 25 Fire Apparatus – Incremental Expansion The inventory summary of Fountain Hills’s fire apparatus is displayed in Figure F3. The Fountain Hills Fire Department owns 6 apparatus, which have a total replacement cost of $1.49 million. Dividing the total cost by the total number of units yields an average cost per unit of $248,333. The current residential level of service is 0.00017 apparatus per resident, which was obtained by multiplying the 6 units by the residential proportionate share (81 percent) and dividing this amount by the current population (28,840). Similarly, the nonresidential level of service is 0.00021 units per job. Multiplying the average cost per unit ($248,333) by the residential and nonresidential levels of service results in a cost per person of $41.85 and $51.28 per job. Note that while the LOS standards shown are rounded to the fifth decimal place, the analysis does not round these figures. Therefore, the cost analysis calculations may not produce the same result if the reader replicates the calculations using the factors shown (due to the rounding of figures shown, not in the analysis). Figure F3: Fire Apparatus Level-of-Service Standards Description Units Unit Cost Replacement Cost Engines 2 $500,000 $1,000,000 Brush Truck 2 $200,000 $400,000 Command Vehicle 2 $45,000 $90,000 Total 6 $248,333 $1,490,000 Cost per Apparatus $248,333 Existing Apparatus 6 Residential Share 81% 2018 Peak Population 28,840 Apparatus per Person 0.00017 Cost per Person $41.85 Nonresidential Share 19% 2018 Jobs 5,521 Apparatus per Job 0.00021 Cost per Job $51.28 Cost Allocation Factors Level-of-Service Standards Residential Nonresidential DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 26 Fire Equipment – Incremental Expansion The inventory summary of Fountain Hills’s fire equipment including defibrillators and multi-band radios is displayed in Figure F4. The Fountain Hills Fire Department owns 25 defibrillators, which have a total replacement cost of $23,750 and seven multi-band radio units with a total replacement cost of $56,000. Dividing the total cost by the total number of units yields an average cost of $2,492 per unit. The current residential level of service is 0.0009 units per resident, which was obtained by multiplying the 32 units by the residential proportionate share (81 percent) and dividing this amount by the current population (28,840). Similarly, the nonresidential level of service is 0.0011 units per job. Multiplying the average cost per unit ($2,492) by the residential and nonresidential levels of service results in a cost per person of $2.24 and $2.74 per job. Note that while the LOS standards shown are rounded to the fourth decimal place, the analysis does not round these figures. Therefore, the cost analysis calculations may not produce the same result if the reader replicates the calculations using the factors shown (due to the rounding of figures shown, not in the analysis). Figure F4: Fire Equipment Inventory and Level of Service Standards Description Units Unit Cost Replacement Cost Defibrillators 25 $950 $23,750 Multi-Band Radio 7 $8,000 $56,000 Total 32 $2,492 $79,750 Cost per unit $2,492 Existing units 32 Residential Share 81% 2018 Peak Population 28,840 Units per Person 0.0009 Cost per Person $2.24 Nonresidential Share 19% 2018 Jobs 5,521 Units per Job 0.0011 Cost per Job $2.74 Cost Allocation Factors Level-of-Service Standards Residential Nonresidential DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 27 Development Fee Report – Plan-Based The cost to prepare the Fire Facilities IIP and Development Fee Report totals $16,640. Fountain Hills plans to update its report every five years. Based on this cost, proportionate share, and five-year projections of new residential and nonresidential development from the Land Use Assumptions document, the cost is $12.74 per person and $6.50 per job. Figure F5: Development Fee Report Cost Allocation PROJECTED SERVICE UNITS AND PROJECTED DEMAND FOR SERVICES ARS § 9-463.05(E)(5) requires: “The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.” The Land Use Assumptions projects an additional 2,163 persons and 872 jobs over the next 10 years. ARS § 9-463.05(E)(6) requires: “The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years.” As shown in Figures F6 and F7, new development will demand less than one apparatus, and 2.9 units of equipment. The 10-year total of the projected demand for fire facilities is multiplied by the cost per unit to determine the total cost to accommodate the projected demand over the next 10 years. The cost for the additional apparatus is $135,220, and the cost for the additional equipment is $7,237 – for a total capital cost of $142,458. Necessary Public Service Cost Demand Unit 5-Year Change Cost per Demand Unit Residential 93%Population 1,058 $14.63 Nonresidential 7%Jobs 487 $2.39 Residential 81%Population 1,058 $12.74 Nonresidential 19%Jobs 487 $6.50 Street $16,640 All Development 100%VMT 11,512 $1.45 Total $49,920 Proportionate Share Fire $16,640 Parks and Recreation $16,640 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 28 Figure F6: Projected Demand for Fire Apparatus Figure F7: Projected Demand for Fire Equipment Demand Unit Cost per Unit 0.00017 Units per Person 0.00021 Units per Job Year Peak Population Jobs Residential Nonresidential Total Units 2018 28,840 5,521 4.9 1.1 6.0 2019 29,048 5,600 4.9 1.2 6.1 2020 29,258 5,789 4.9 1.2 6.1 2021 29,470 5,861 5.0 1.2 6.2 2022 29,683 5,934 5.0 1.2 6.2 2023 29,898 6,008 5.0 1.2 6.3 2024 30,115 6,083 5.1 1.3 6.3 2025 30,334 6,159 5.1 1.3 6.4 2026 30,555 6,236 5.1 1.3 6.4 2027 30,778 6,314 5.2 1.3 6.5 2028 31,003 6,393 5.2 1.3 6.5 10-Yr Increase 2,163 872 0.4 0.2 0.5 $90,503 $44,717 $135,220 Level of Service Fire Apparatus $248,333 Need for Fire Apparatus Growth-Related Expenditures Type of Infrastructure Demand Unit Cost per Unit 0.0009 Units per Person 0.0011 Units per Job Year Peak Population Jobs Residential Nonresidential Total Units 2018 28,840 5,521 25.9 6.1 32.0 2019 29,048 5,600 26.1 6.2 32.3 2020 29,258 5,789 26.3 6.4 32.7 2021 29,470 5,861 26.5 6.5 32.9 2022 29,683 5,934 26.7 6.5 33.2 2023 29,898 6,008 26.9 6.6 33.5 2024 30,115 6,083 27.1 6.7 33.8 2025 30,334 6,159 27.3 6.8 34.0 2026 30,555 6,236 27.5 6.9 34.3 2027 30,778 6,314 27.7 7.0 34.6 2028 31,003 6,393 27.9 7.0 34.9 10-Yr Increase 2,163 872 1.9 1.0 2.9 $4,844 $2,393 $7,237 Growth-Related Expenditures Type of Infrastructure Level of Service Fire Equipment $2,492 Need for Fire Equipment DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 29 FIRE FACILITIES IIP ARS § 9-463.05(E)(3) requires: “A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.” Potential Fire Facilities that Fountain Hills may use development fees for in order to accommodate new development over the next 10 years are shown in Figure F8. Additional apparatus and equipment will be procured as necessitated by growth. Figure F8: Necessary Fire Improvements and Expansions (10-Yr Total) Necessary Public Services Timeframe Cost Fire Apparatus & Equipment 2020-2028 $142,458 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 30 FIRE FACILITIES DEVELOPMENT FEES Revenue Credit/Offset A revenue credit/offset is not necessary for the Fire Facilities development fees because 10-year growth costs exceed the amount of revenue that is projected to be generated by development fees according to the Land Use Assumptions, as shown in Figure F10. Proposed Fire Facilities Development Fees Infrastructure standards and cost factors for Fire Facilities are summarized at the top of Figure F9. The cost per service unit for Fire Facilities development fees is $56.83 per person and $60.52 per job. Fire Facilities development fees for residential development are assessed according to the number of persons per household. For example, the single-family fee of $122 is calculated using a cost per service unit of $56.83 per person multiplied by a demand unit of 2.15 persons per household. Nonresidential development fees are calculated using jobs as the service unit. The fee of $0.14 per square foot of commercial development is derived from a cost per service unit of $60.52 per job multiplied by a demand unit of 2.34 jobs per 1,000 square feet, divided by 1,000 square feet. Figure F9: Proposed Fire Facilities Development Fees Fee Component Cost per Person Cost per Job Fire Apparatus $41.85 $51.28 Fire Equipment $2.24 $2.74 Development Fee Report $12.74 $6.50 Total $56.83 $60.52 Residential Development Development Type Persons per Household1 Proposed Fees Current Fees Increase / Decrease Single Family 2.15 $122 $300 ($178) Multi-Family 1.66 $94 $300 ($206) Nonresidential Development Development Type Jobs per 1,000 Sq. Ft1 Proposed Fees Current Fees Increase / Decrease Industrial 1.63 $0.10 $0.24 ($0.14) Commercial 2.34 $0.14 $0.24 ($0.10) Institutional 0.93 $0.06 $0.24 ($0.19) Office 2.97 $0.18 $0.24 ($0.06) 1. See Land Use Assumptions. Development Fees per Unit Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 31 FORECAST OF FIRE FACILITIES DEVELOPMENT FEE REVENUES Appendix C contains the forecast of revenues required by Arizona’s Enabling Legislation. Revenue projections shown below assume implementation of the proposed Fire Facilities development fees and that development over the next 10 years is consistent with the Land Use Assumptions. To the extent the rate of development either accelerates or slows down, there will be a corresponding change in the development fee revenue. As shown in Figure F10, the 10-year projected development fee revenue of $159,012 is approximately equal to the 10-year growth cost of $159,098. Figure F10: Projected Fire Facilities Development Fee Revenue Growth Share Existing Share Total Fire Apparatus $135,220 $0 $135,220 Fire Equipment $7,237 $0 $7,237 Development Fee Report $16,640 $0 $16,640 Total $159,098 $0 $159,098 Avg Residential Industrial Commercial Institutional Office $116 $0.10 $0.14 $0.06 $0.18 per unit per sq. ft.per sq. ft.per sq. ft.per sq. ft. Housing Units KSF KSF KSF KSF Base 2018 13,268 280 1,212 505 593 Year 1 2019 13,369 282 1,226 514 604 Year 2 2020 13,472 284 1,255 540 636 Year 3 2021 13,575 285 1,273 551 642 Year 4 2022 13,679 286 1,291 563 647 Year 5 2023 13,784 288 1,310 575 653 Year 6 2024 13,890 289 1,330 587 659 Year 7 2025 13,997 290 1,349 599 664 Year 8 2026 14,105 291 1,369 611 670 Year 9 2027 14,213 292 1,389 624 676 Year 10 2028 14,323 293 1,409 637 682 1,055 13 197 132 89 $108,826 $1,261 $26,429 $7,051 $15,446 $159,012 $159,098 Fee Component Projected Fee Revenue Total Expenditures 10-Year Increase Projected Revenue Year DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 32 STREET FACILITIES INFRASTRUCTURE IMPROVEMENTS PLAN ARS § 9-463.05 (T)(7)(e) defines the facilities and assets that can be included in the Street Facilities IIP: “Street facilities located in the service area, including arterial or collector streets or roads that have been designated on an officially adopted plan of the municipality, traffic signals and rights-of-way and improvements thereon.” The Street Facilities IIP includes components for arterial street improvements, improved intersections, and the cost of professional services for preparing the Street Facilities IIP and related Development Fee Report. An incremental expansion methodology is used for improved intersections, and a plan-based methodology is used for arterial improvements and the Development Fee Report. Service Area Fountain Hills’ arterial street network is designed to efficiently move traffic throughout the town; therefore, the service area for the Street Facilities IIP and Development Fees is townwide. A traffic analysis or alternative rational method may be used to identify specific off-site improvements as well as mitigation measures for development project impacts (intersections, adjacent roadways, etc.). Such project mitigation measures may be executed by the project, the Town of Fountain Hills, or by in-lieu payment by the project. The means and methods of execution may be identified and provided for by Development agreement, or conditions of approval for development plan review and permitting, or by any other mutually acceptable instrument between the development project and Town of Fountain Hills. Proportionate Share ARS § 9-463.05 (B)(3) states that the development fee shall not exceed a proportionate share of the cost of necessary public services needed to provide necessary public services to the development. Trip length, trip generation rates, and trip adjustment factors are used to determine the proportionate impact of residential, commercial, office, and industrial land uses on the Town’s street network. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 33 RATIO OF SERVICE UNITS TO DEVELOPMENT UNITS ARS § 9-463.05(E)(4) requires: “A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial.” Service Units The appropriate service unit for the Street Facilities development fees is vehicle miles of travel (VMT). VMT creates the link between supply (roadway capacity) and demand (traffic generated by new development). Components used to determine VMT include: trip generation rates, adjustments for commuting patterns and pass-by trips, and trip length weighting factors. Figure S1: Summary of Service Units Trip Generation Rates For nonresidential development, the trip generation rates are from the 10th edition of the reference book Trip Generation published by the Institute of Transportation Engineers (2017). A vehicle trip end represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). As an alternative to using the national average trip generation rate for residential development, the Institute of Transportation Engineers (ITE) publishes regression curve formulas that may be used to derive custom trip generation rates using local demographic data. This is explained in more detail in Appendix A: Land Use Assumptions. Development Type Avg Wkdy Veh Trip Ends1 Trip Rate Adjustment Trip Length Adjustment Average Miles per Trip VMT Single Family 7.29 63%121%2.97 16.50 Multi-Family 3.63 63%121%2.97 8.22 Development Type Avg Wkdy Veh Trip Ends1 Trip Rate Adjustment Trip Length Adjustment Average Miles per Trip VMT Industrial 4.96 50%73%2.97 5.38 Commercial 37.75 33%66%2.97 24.42 Institutional 19.52 50%73%2.97 21.16 Office 9.74 50%73%2.97 10.56 1. TischlerBise Land Use Assumptions Residential Development Nonresidential Development DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 34 Adjustment for Commuting Patterns To calculate Street Facilities Development Fees, trip generation rates require an adjustment factor to avoid double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 50 percent. As discussed further below, the development fee methodology includes additional adjustments to make the fees proportionate to the infrastructure demand for particular types of development. Residential development has a larger trip adjustment factor of 63 percent to account for commuters leaving Fountain Hills for work. According to the 2009 National Household Travel Survey, weekday work trips are typically 31 percent of production trips (i.e., all out-bound trips, which are 50 percent of all trips). As shown in Figure S2, the Census Bureau’s web application OnTheMap indicates that 84 percent of resident workers traveled outside the Town for work in 2015. In combination, these factors (0.31 X 0.50 X 0.84 = .13) support the additional 13 percent allocation of trips to residential development. Figure S2: Inflow/Outflow Analysis Adjustment for Pass-By Trips For commercial development, the trip adjustment factor is less than 50 percent because retail development and some services attract vehicles as they pass by on arterial and collector roads. For example, when someone stops at a convenience store on the way home from work, the convenience store is not the primary destination. For the average shopping center, the ITE data indicates that 34 percent of the vehicles that enter are passing by on their way to some other primary destination. The remaining 66 percent of attraction trips have the commercial site as their primary destination. Because attraction trips are half of all trips, the trip adjustment factor is 66 percent multiplied by 50 percent, or approximately 33 percent of the trips. These factors are shown to derive inbound vehicle trips for each type of nonresidential land use and are detailed in Figure S3. Trip Adjustment Factor for Commuters1 Employed Residents 9,155 Residents Working in Fountain Hills 1,495 Residents Working Outside Fountain Hills (Commuters)7,660 Percent Commuting out of Fountain Hills 84% Additional Production Trips2 13% Residential Trip Adjustment Factor 63% 1. U.S. Census Bureau, OnTheMap Application (version 6.5) and LEHD Origin-Destination Employment Statistics, 2015. 2. According to the National Household Travel Survey (2009)*, published in December 2011 (see Table 30), home-based work trips are typically 30.99 percent of “production” trips, in other words, out-bound trips (which are 50 percent of all trip ends). Also, LED OnTheMap data from 2015 indicate that 84 percent of Fountain Hills' workers travel outside the town for work. In combination, these factors (0.3099 x 0.50 x 0.84 = 0.12964686) account for 13 percent of additional production trips. The total adjustment factor for residential includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (13 percent of production trips) for a total of 63 percent. *http://nhts.ornl.gov/publications.shtml ; Summary of Travel Trends - Table "Daily Travel Statistics by Weekday vs. Weekend" DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 35 ANALYSIS OF CAPACITY, USAGE, AND COSTS OF EXISTING PUBLIC SERVICES ARS § 9-463.05(E)(1) requires: “A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.” Travel Demand Model The travel demand model inputs are used to derive level of service in Vehicle Miles of Travel and future demand for lane miles, improved intersections. A Vehicle Mile of Travel (VMT) is a measurement unit equal to one vehicle traveling one mile. In the aggregate, VMT is the product of vehicle trips multiplied by the average trip length. Based on estimates shown in Figure S3, existing infrastructure standards in Fountain Hills, using the average trip length of 8.97 miles, are 1.02 lane miles of arterials per 10,000 VMT (70 arterial lane miles / (685,788 VMT / 10,000)). As shown on the lower right side of Figure S3, future development generates an additional 68,981 VMT over the next 10 years. To maintain the existing infrastructure standards, Fountain Hills needs 7.0 additional lane miles of arterials, 1.3 additional improved intersections to accommodate projected development over the next 10 years. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 36 Figure S3: Projected Travel Demand Development ITE Weekday Dev Trip Trip Length Type Code VTE Unit Adj Wt Factor Single Family 210 7.29 HU 63%121% Multi-Family 220 3.63 HU 63%121% Industrial 110 4.96 KSF 50%73% Commercial 820 37.75 KSF 33%66% Institutional 730 19.52 KSF 50%73% Office 710 9.74 KSF 50%73% Avg Trip Length (miles)8.97 Vehicle Capacity Per Lane 9,800 Base 1 2 3 4 5 10 10-Year 2018 2019 2020 2021 2022 2023 2028 Increase Single Family Units 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670 Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385 Industrial KSF 280 282 284 285 286 288 293 13 Commercial KSF 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197 Institutional KSF 505 514 540 551 563 575 637 132 Office KSF 593 604 636 642 647 653 682 89 Single Family Trips 38,785 39,081 39,380 39,681 39,985 40,291 41,864 3,078 Multi-Family Trips 11,030 11,114 11,200 11,286 11,373 11,460 11,910 880 Residential Trips 49,815 50,196 50,580 50,967 51,357 51,751 53,773 3,958 Industrial Trips 694 699 704 707 709 714 727 33 Commercial Trips 15,098 15,273 15,634 15,858 16,083 16,319 17,553 2,454 Institutional Trips 4,929 5,017 5,270 5,378 5,495 5,612 6,217 1,288 Office Trips 2,888 2,941 3,097 3,127 3,151 3,180 3,321 434 Nonresidential Trips 23,608 23,930 24,706 25,069 25,438 25,826 27,818 4,209 Total Vehicle Trips 73,423 74,126 75,286 76,036 76,795 77,577 81,591 8,167 Vehicle Miles of Travel 685,788 691,918 700,938 707,379 713,889 720,557 754,769 68,981 Annual Increase 6,130 9,020 6,441 6,510 6,668 6,978 Arterial Lane Miles 70.0 70.6 71.5 72.2 72.8 73.5 77.0 7.0 Annual Increase 0.6 0.9 0.7 0.6 0.7 0.7 0.7 Improved Intersections 13.0 13.1 13.3 13.4 13.5 13.7 14.3 1.3 Annual Increase 0.1 0.2 0.1 0.1 0.2 0.1 0.1VMTDevelopmentAvg Wkday Vehicle TripsDemand DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 37 Calibrated Travel Demand Model Fountain Hills plans to construct 2.3 lane miles of arterials over the next 10 years to serve future development. Since Fountain Hills plans to build fewer than 7.0 lane miles, as shown in Figure S3, the average trip length of 8.97 miles is adjusted until the 10-year demand for arterials equals 2.3 lane miles – resulting in an average trip length of 2.97 miles on the planned arterial improvements. The 10-year increase in VMT on the planned arterial improvements equals 22,840 VMT. Figure S4: Revised Travel Demand Development ITE Weekday Dev Trip Trip Length Type Code VTE Unit Adj Wt Factor Single Family 210 7.29 HU 63%121% Multi-Family 220 3.63 HU 63%121% Industrial 150 4.96 KSF 50%73% Commercial 820 37.75 KSF 33%66% Institutional 730 19.52 KSF 50%73% Office 620 9.74 KSF 50%73% Assisted Living (per bed)254 2.60 Bed 50%73% Hotel (per room)310 8.36 Room 50%73% Avg Trip Length (miles)2.970 Vehicle Capacity Per Lane 9,800 Base 1 2 3 4 5 10 10-Year 2018 2019 2020 2021 2022 2023 2028 Increase Single Family Units 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670 Multi-Family Units 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385 Industrial KSF 280 282 284 285 286 288 293 13 Commercial KSF 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197 Institutional KSF 505 514 540 551 563 575 637 132 Office KSF 593 604 636 642 647 653 682 89 Single Family Trips 38,785 39,081 39,380 39,681 39,985 40,291 41,864 3,078 Multi-Family Trips 11,030 11,114 11,200 11,286 11,373 11,460 11,910 880 Residential Trips 49,815 50,196 50,580 50,967 51,357 51,751 53,773 3,958 Industrial Trips 694 699 704 707 709 714 727 33 Commercial Trips 15,098 15,273 15,634 15,858 16,083 16,319 17,553 2,454 Institutional Trips 4,929 5,017 5,270 5,378 5,495 5,612 6,217 1,288 Office Trips 2,888 2,941 3,097 3,127 3,151 3,180 3,321 434 Nonresidential Trips 23,608 23,930 24,706 25,069 25,438 25,826 27,818 4,209 Total Vehicle Trips 73,423 74,126 75,286 76,036 76,795 77,577 81,591 8,167 Vehicle Miles of Travel 227,067 229,097 232,083 234,216 236,371 238,579 249,907 22,840 Annual Increase 2,030 2,987 2,133 2,155 2,208 2,310 Arterial Lane Miles 23.2 23.4 23.7 23.9 24.1 24.3 25.5 2.3 Annual Increase 0.2 0.3 0.2 0.2 0.2 0.2 0.2 Improved Intersections 13.0 13.1 13.3 13.4 13.5 13.7 14.3 1.3 Annual Increase 0.1 0.2 0.1 0.1 0.2 0.1 0.1VMTDevelopmentAvg Wkday Vehicle TripsDemand DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 38 ARS § 9-463.05(E)(3) requires: “A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.” Arterial Improvements – Plan-Based Fountain Hills plans to construct 2.3 lane miles of arterials over the next 10 years. Shown below in Figure S5, Fountain Hills staff identified the total cost and any other funding for the project – this results in $1,828,000 in eligible costs. Based on the eligible cost of arterial improvements and the 10-year VMT increase, the cost for arterial improvements is $80.04 per VMT ($1,828,000 / 22,840 additional VMT). Figure S5: Planned Arterial Improvements New Lane Miles Total Cost Other Funding DIF Eligible Cost 1W Shea Blvd Widening 2.30 $4,000,000 $2,172,000 $1,828,000 $1,828,000 22,840 $80.04 Arterial Street Improvements DIF Eligible Cost 10-Year VMT Increase Cost per VMT DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 39 Improved Intersections – Incremental Expansion Fountain Hills’ current level of service for improved intersections is 0.57252 improved intersections per 10,000 VMT (13 intersections / (227,067 VMT / 10,000)), and Fountain Hills plans to maintain this level of service over the next 10 years. As shown in Figure S4, Fountain Hills needs to construct 1.3 additional improved intersections to maintain this standard over the next 10 years ((22,840 additional VMT / 10,000) X 0.57252 improved intersections per 10,000 VMT). Based on recent improved intersection project costs, Fountain Hills staff estimates future improved intersections will have an average cost of $625,000 per intersection. Fountain Hills may use development fees to fund any growth-related improved intersection within the service area. The cost for improved intersections is $35.78 per VMT ($625,000 per improved intersection X 0.57252 improved intersections per 10,000 VMT). Figure S6: Existing Improved Intersection Level-of-Service and Cost Factors Cost per Improved Intersection1 $625,000 Existing Improved Intersections 13.0 2018 VMT 227,067 Improved Int per 10,000 VMT 0.57252 Cost per VMT $35.78 1. Town of Fountain Hills, Arizona Level-of-Service Standards Cost Allocation Factors DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 40 Development Fee Report – Plan-Based The cost to prepare the Street Facilities IIP and Development Fee Report totals $16,640. Fountain Hills plans to update its report every five years. Based on this cost, proportionate share, and five-year projections of new residential and nonresidential development from the Land Use Assumptions document, the cost is $1.45 per VMT. Figure S7: Development Fee Report Cost Allocation Necessary Public Service Cost Demand Unit 5-Year Change Cost per Demand Unit Residential 93%Population 1,058 $14.63 Nonresidential 7%Jobs 487 $2.39 Residential 81%Population 1,058 $12.74 Nonresidential 19%Jobs 487 $6.50 Street $16,640 All Development 100%VMT 11,512 $1.45 Total $49,920 Proportionate Share Fire $16,640 Parks and Recreation $16,640 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 41 STREET FACILITIES DEVELOPMENT FEES Revenue Credit/Offset A revenue credit/offset is not necessary for the Street Facilities development fees because 10-year growth costs do not substantially exceed the amount of revenue that is projected to be generated by development fees according to the Land Use Assumptions, as shown in Figure S10. Proposed Street Facilities Development Fees Infrastructure standards and cost factors for Street Facilities are summarized at the top of Figure S8. The cost per service unit for Street development fees is $117.26 per VMT. Street Facilities development fees for residential development are assessed according to VMT generated per unit. For example, the single-family fee of $1,935 is calculated using a cost per service unit of $117.26 per VMT multiplied by 2.97 miles per trip, multiplied by 7.29 average weekday vehicle trip ends, multiplied by 63 percent trip rate adjustment, multiplied by 121 percent trip length adjustment. Nonresidential development fees are calculated using VMT generated per square foot. The fee of $2.86 per square foot of commercial development is calculated using a cost per service unit of $117.26 per VMT multiplied by 2.97 miles per trip, multiplied by 37.75 average weekday vehicle trip ends, multiplied by 33 percent trip rate adjustment, multiplied by 66 percent trip length adjustment, divided by 1,000 square feet. Figure S8: Proposed Street Facilities Development Fees Fee Component Cost per VMT Arterial Improvements $80.04 Improved Intersections $35.78 Development Fee Report $1.45 Total $117.26 Average Miles per Trip 2.970 Residential Development Development Type Avg Wkdy Veh Trip Ends1 Trip Rate Adjustment Trip Length Adjustment Proposed Fees Current Fees Increase / Decrease Single Family 7.29 63%121%$1,935 $0 $1,935 Multi-Family 3.63 63%121%$964 $0 $964 Nonresidential Development Development Type Avg Wkdy Veh Trip Ends1 Trip Rate Adjustment Trip Length Adjustment Proposed Fees Current Fees Increase / Decrease Industrial 4.96 50%73%$0.63 $0.00 $0.63 Commercial 37.75 33%66%$2.86 $0.00 $2.86 Institutional 19.52 50%73%$2.48 $0.00 $2.48 Office 9.74 50%73%$1.24 $0.00 $1.24 1. TischlerBise Land Use Assumptions Development Fees per Unit Development Fees per Square Foot DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 42 PROJECTED STREET FACILITIES DEVELOPMENT FEE REVENUE Projected fee revenue shown in Figure S9 is based on the development projections in the Land Use Assumptions (see Appendix C) and the updated Street Facilities development fees (see Figure S8). Expenditures on arterial improvements are derived from the anticipated need for approximately 2.3 new lane miles over the next 10 years (see Figure S4) at a cost of $1,828,000 (see Figure S5). Expenditures on improved intersections are derived from the anticipated need for approximately 1.3 new improved intersections over the next 10 years at a cost of $812,500. Anticipated development fee revenue is approximately $2.6 million over the next 10 years, while expenditures are estimated at approximately $2.6 million. Figure S9: Projected Street Facilities Development Fee Revenue Growth Share Existing Share Total $1,828,000 $0 $1,828,000 $812,500 $0 $812,500 $16,640 $0 $16,640 $2,657,140 $0 $2,657,140 Single Family Multi-Family Industrial Commercial Institutional Office $1,935 $964 $0.63 $2.86 $2.48 $1.24 per unit per unit per SF per SF per SF per SF Housing Units Housing Units KSF KSF KSF KSF Base 2018 8,445 4,823 280 1,212 505 593 Year 1 2019 8,509 4,860 282 1,226 514 604 Year 2 2020 8,574 4,897 284 1,255 540 636 Year 3 2021 8,640 4,935 285 1,273 551 642 Year 4 2022 8,706 4,973 286 1,291 563 647 Year 5 2023 8,773 5,011 288 1,310 575 653 Year 6 2024 8,840 5,050 289 1,330 587 659 Year 7 2025 8,908 5,089 290 1,349 599 664 Year 8 2026 8,977 5,128 291 1,369 611 670 Year 9 2027 9,046 5,168 292 1,389 624 676 Year 10 2028 9,115 5,208 293 1,409 637 682 670 385 13 197 132 89 Projected Revenue $1,289,018 $368,429 $8,379 $560,609 $325,643 $109,830 $2,661,909 $2,657,140 10-Year Increase Fee Component Projected Fee Revenue Improved Intersections Total Expenditures Arterial Improvements Development Fee Report Total Year DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 43 APPENDIX A: LAND USE ASSUMPTIONS EXECUTIVE SUMMARY For municipalities in Arizona, the state enabling legislation requires supporting documentation on land use assumptions, a plan for infrastructure improvements, and development fee calculations. This document contains the land use assumptions for the Town of Fountain Hills 2018 development fee update. Development fees must be updated every five years, making short-range projections the critical time frame. The Infrastructure Improvements Plan (IIP) is limited to 10 years for non-utility fees, thus a very long-range “build-out” analysis may not be used to derive development fees. Arizona Revised Statuses (ARS) § 9-463.05 (T)(6) requires the preparation of a Land Use Assumptions document which shows: “Projections of change in land uses, densities, intensities and population for a specified service area over a period of at least 10 years and pursuant to the General Plan of the municipality.” TischlerBise prepared current demographic estimates and future development projections for both residential and nonresidential development that will be used in the Infrastructure Improvement Plan (IIP) and calculation of the development fees. Demographic data for FY 17-18 (beginning July 1, 2017) are used in calculating levels-of-service provided to existing development in the Town of Fountain Hills. Although long-range projections are necessary for planning infrastructure systems, a shorter time frame of five to 10 years is critical for the impact fees analysis. TischlerBise used compound growth rates to produce conservative projections that increase over time. Arizona’s Development Fee Act requires fees to be updated at least every five years and limits the IIP to a maximum of 10 years for non-utility fees. Therefore, the use of a very long-range “build-out” analysis is no longer acceptable for deriving development fees in Arizona municipalities. SERVICE AREAS ARS § 9-463.05 defines “service area” as follows: “Any specified area within the boundaries of a municipality in which development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the infrastructure improvements plan.” The Town’s previous Land Use Assumptions, Infrastructure Improvement Plan and Development Study recommended three services areas, shown below in Figure A1. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 44 Figure A1: Current Development Fee Service Areas DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 45 Figure A2: Proposed Development Fee Service Areas DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 46 Arizona Revised Statutes (ARS) 9-463.05(T)(7) requires the preparation of a Land Use Assumptions document, which shows: “projections of changes in land uses, densities, intensities and population for a specified service area over a period of at least ten years and pursuant to the General Plan of the municipality.” The Town of Fountain Hills, Arizona retained TischlerBise to analyze the impacts of development on its capital facilities and to calculate development impact fees based on that analysis. TischlerBise prepared current demographic estimates and future development projections for both residential and nonresidential development that will be used in the Infrastructure Improvements Plan (IIP) and calculation of the development fees. Current demographic data estimates for 2018 are used in calculating levels of service (LOS) provided to existing development in the Town of Fountain Hills. Although long-range projections are necessary for planning infrastructure systems, a shorter time frame of five to ten years is critical for the development fee analysis. Arizona’s Development Fee Act requires fees to be updated at least every five years and limits the IIP to a maximum of ten years. Therefore, the use of a very long-range “build-out” analysis is no longer acceptable for deriving development fees in Arizona municipalities. SUMMARY OF GROWTH INDICATORS Key land use assumptions for the Town of Fountain Hills development fee study are population, housing units, and employment projections. Based on information provided by staff, including the 2017 Town of Fountain Hills Land Use Analysis & Statistical Report, TischlerBise uses the Maricopa Association of Governments 2020-2030 growth rate of 0.87 percent, which is then converted to annual housing unit increases by using a persons per household factor of 2.05, as shown in Figure A2. For nonresidential development, the base year employment estimate is calculated from ESRI Business Analyst and uses MAG 2015-2030 estimated growth rates for each industry sector applied to the base year employment to project future employment. The employment estimate is converted into floor area based on average square feet per job multipliers. Four nonresidential development prototypes are discussed further below (see Figure A5 and related text). The projections contained in this document provide the foundation for the development impact fee study. These metrics are the service units and demand indicators used in the development impact fee study. Development projections and growth rates are summarized in Figure A11. These projections will be used to estimate development fee revenue and to indicate the anticipated need for growth-related infrastructure. However, development fee methodologies are designed to reduce sensitivity to development projections in the determination of the proportionate-share fee amounts. If actual development is slower than projected, fee revenue will decline, but so will the need for growth-related infrastructure. In contrast, if development is faster than anticipated, Fountain Hills will receive an increase in fee revenue, but will also need to accelerate infrastructure improvements to keep pace with the actual rate of development. During the next 10 years, development projections indicate an average increase of 105 housing units per year, and an average increase of approximately 43,000 square feet of nonresidential floor area per year. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 47 RESIDENTIAL DEVELOPMENT Current estimates and future projections of residential development are detailed in this section including population and housing units by type. Recent Residential Construction Development fees require an analysis of current levels of service. For residential development, current levels of service are determined using estimates of population and housing units. Shown below, Figure A1 indicates the estimated number of housing units added by decade according to data obtained from the U.S. Census Bureau. Fountain Hills experienced strong growth in the 1990s and 2000s. From 2000 to 2010, Fountain Hills’ housing inventory increased by an average of 267 units per year. Figure A1: Housing Units by Decade Census 2010 Population 22,489 Census 2010 Housing Units 13,167 Census 2000 Housing Units 10,491 New Housing Units 2000 to 2010 2,676 Fountain Hills added an average of 267 housing units per year from 2000 to 2010. 0 1,000 2,000 3,000 4,000 5,000 6,000 Before 1970 1970s 1980s 1990s 2000s Housing Units Added by Decade in Fountain Hills Source: U.S. Census Bureau, Census 2010 Summary File 1, Census 2000 Summary File 1, 2013-2017 5-Year American Community Survey (for 1990s and earlier, adjusted to yield total units in 2000). DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 48 Household Size According to the U.S. Census Bureau, a household is a housing unit occupied by year-round residents. Development fees often use per capita standards and persons per housing unit (PPHU) or persons per household (PPH) to derive proportionate share fee amounts. When PPHU is used in the fee calculations, infrastructure standards are derived using year-round population. When PPH is used in the fee calculations, the development fee methodology assumes a higher percentage of housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. To recognize the impacts of seasonal population, Fountain Hills should impose development fees for residential development according to the number of persons per household. This methodology assumes some portion of the housing stock will be vacant during the course of a year. According to the U.S. Census Bureau American Community Survey, Fountain Hills’ vacancy rate was twenty-one percent in 2017. Persons per household (PPH) calculations require data on population and the types of units by structure. The 2010 census did not obtain detailed information using a “long-form” questionnaire. Instead, the U.S. Census Bureau switched to a continuous monthly mailing of surveys, known as the American Community Survey (ACS), which has limitations due to sample-size constraints. For example, data on detached housing units are now combined with attached single units (commonly known as townhouses). For development fees in Fountain Hills, detached stick-built units and attached units (commonly known as townhouses, which share a common sidewall, but are constructed on an individual parcel of land) are included in the “Single-Family Unit” category. The second residential category includes duplexes and all other structures with two or more units on an individual parcel of land. This category is referred to as “Multi-Family Unit.” (Note: housing unit estimates from ACS will not equal decennial census counts of units. These data are used only to derive the custom PPHU factors for each type of unit). Figure A2 below shows the 2013-2017 5-year ACS estimates for Fountain Hills. Single-family units averaged 2.15 persons per household (20,097 persons / 9,339 households) and multi-family units averaged 1.66 persons per household (3,881 persons / 2,338 households). In 2017, Fountain Hills’ housing stock averaged 2.05 persons per household with a townwide vacancy rate of 21 percent. Figure A2: Persons per Housing Unit Single-Family Unit1 20,097 9,339 2.15 11,381 1.77 77.3%18% Multi-Family Unit 2 3,881 2,338 1.66 3,334 1.16 22.7%30% Total 23,978 11,677 2.05 14,715 1.63 21% Source: TischlerBise analysis and calculation based on U.S. Census Bureau, 2013-2017 American Community Survey, 5-Year Estimates. 1. Includes detached, attached (townhouse), and manufactured units. 2. Includes duplexes, structures with two or more units, and all other units. Households Vacancy Rate Housing Mix Persons per Housing Unit Housing Units Persons per HouseholdPersonsUnits in Structure DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 49 Seasonal Households To account for seasonal residents, the analysis includes vacant households used for seasonal, recreational, or occasional use. According to 2017 ACS estimates shown in Figure A3, seasonal units account for 2,343 of Fountain Hills’ 3,038 vacant units. With all seasonal units occupied, Fountain Hills’ peak vacancy rate is 4.72 percent (14,020 peak households / 14,715 housing units). Applying Fountain Hills’ occupancy factor of 2.05 persons per household to seasonal households provides a seasonal population estimate of 4,811 persons. Fountain Hills’ peak population estimate for 2017 is 28,789 (23,978 population in households + 4,811 seasonal population). Figure A3: Seasonal Households Population Estimates To accurately determine current and future population in Fountain Hills, TischlerBise compared population estimates and growth rates from American Community Survey data, Arizona Department of Administration (ADOA), the Fountain Hills 2017 Land Use Analysis Report, and Maricopa Association of Governments (MAG). In 2016 MAG released population projections for jurisdictions through 2050, along with annual updates of housing unit and population estimates. TischlerBise uses MAG’s 2016 Socioeconomic Projections in conjunction with Fountain Hills staff-provided building permit data to derive the base year estimates of population and housing units. The 2017 Fountain Hills Land Use Analysis and Statistical Report details housing by unit count and type current through December 31, 2017 allowing the study to establish 2018 as the base year for related projections. Further analysis of the past 20 years of building permit data shows that Fountain Hills has averaged 125 single family and 76 multi-family units per year over this time period, however growth has slowed substantially since 2010, in part due to a broader national economic condition. The resulting impact on growth in Fountain Hills has reduced average unit construction to 52 single family and 16 multi-family units per year between 2015 and 2018. POPULATION Year-Round Population 23,978 Housing Units 14,715 Vacant Housing Units 3,038 Vacancy Rate 20.65% Households 11,677 Seasonal Households 2,343 Peak Households 14,020 Persons per Household 2.05 Population in Households 23,978 Seasonal Population 4,811 Peak Population in 2017 28,789 Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 50 Population Projections Based on recent building permit trends and review of the 2017 Fountain Hills Land Use Analysis and Statistical Report, TischlerBise projects an average annual increase of 106 housing units (67 single-family and 39 multi-family units) between 2018 and 2028. TischlerBise projects housing growth beyond 2018 using MAG’s 2020-2030 population compound average annual growth rate of 0.87 percent and the 2017 ACS occupancy rate of 2.05 persons per household. Future households are distributed by type based on the existing housing mix detailed in the 2017 Fountain Hill’s Land Use Analysis and Statistical Report, 64 percent single family units and 36 percent multi-family units. The assumption on future housing mix is held constant over the 10-year forecast period, therefore, between 2018 and 2028, 64 percent of projected new units are single-family and 36 percent are multi-family. For this study, it is assumed that the household size and seasonal population will remain constant. TischlerBise projects a 10-year increase of 2,163 persons, or an average of 216 persons annually, and a corresponding 10-year increase of 1,055 housing units, or an average of 106 units annually. The study assumes the total seasonal population of 4,811 will remain constant throughout the 10-year period. Population and housing unit projections are used to illustrate the possible future pace of service demands, revenues, and expenditures. To the extent these factors change, the projected need for infrastructure will also change. If development occurs at a more rapid rate than projected, the demand for infrastructure will increase at a corresponding rate. If development occurs at a slower rate than is projected, the demand for infrastructure will also decrease. Figure A4: Residential Development Projections 2018 2019 2020 2021 2022 2023 2028 Base 1 2 3 4 5 10 Population Household 24,029 24,237 24,447 24,658 24,872 25,087 26,192 2,163 Peak 28,840 29,048 29,258 29,470 29,683 29,898 31,003 2,163 Housing Units Single Family 8,445 8,509 8,574 8,640 8,706 8,773 9,115 670 Multi-Family 4,823 4,860 4,897 4,935 4,973 5,011 5,208 385 Total Housing Units 13,268 13,369 13,472 13,575 13,679 13,784 14,323 1,055 10-Year Increase DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 51 NONRESIDENTIAL DEVELOPMENT Current estimates and future projections of nonresidential development are detailed in this section including jobs and nonresidential floor area. Employment Estimates In addition to data on residential development, the calculation of development impact fees requires data on employment (number of jobs) and nonresidential square footage in Fountain Hills. TischlerBise uses the term “jobs” to refer to employment by place of work. TischlerBise analyzed recent employment trends, reviewed data published by MAG, the U.S. Census Bureau, and ESRI Business Analyst1, and had discussions with Town staff. TischlerBise estimates 2018 employment using 2015 MAG employment data and then applying MAG industry specific growth rates to subsequent years. Shown below in Figure A5, base year employment totals 5,521 jobs. Employment estimates are grouped into four categories: Industrial, Commercial / Retail, Institutional, and Office and Other Services. For the 2018 base year, employment estimates include 455 industrial jobs, 2,838 commercial / retail jobs, 469 institutional jobs, and 1,759 office and other services jobs. Estimated floor area uses square feet multipliers published by the Institute of Transportation Engineers. The conversion from employment to nonresidential floor area is discussed below. Figure A5: Estimated Employment and Distribution by Industry Type 1 ESRI Business Summary Reports provide demographic and business data for geographic areas from sources including directory listings such as Yellow Pages and business white pages; annual reports; 10-K and Securities and Exchange Commission (SEC) information; federal, state, and municipal government data; business magazines; newsletters and newspapers; and information from the US Postal Service. To ensure accurate and complete information, ESRI conducts annual telephone verifications with each business listed in the database. 2018 Percent of Sq. Ft.2018 Estimated Jobs per Jobs1 Total Jobs per Job Floor Area2 1,000 Sq. Ft.2 Industrial3 455 8.2%615 279,649 1.63 Commercial / Retail4 2,838 51.4%427 1,211,769 2.34 Institutional5 469 8.5%1,076 504,700 0.93 Office and Other Services6 1,759 31.9%337 592,937 2.97 Total 5,521 100.0%2,589,055 1. TischlerBise calculation based on Maricopa Association of Governments 2015 and 2020 estimates. 2. Sq. Ft. per Job based on jobs and ITE 10th Edition (2017) multiplier. 3. Major sector is Construction. 4. Major sectors are Food Services and Retail Trade. 5. Major sectors are Educational Services and Public Administration. 6. Major sectors are Health Care and Realestate Rental and Leasing. Nonresidential Category DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 52 Nonresidential Square Footage Estimates To estimate current nonresidential floor area, ITE square feet per employee multipliers (Figure A6) are applied to 2018 employment estimates shown in Figure A5. For industrial development, light industrial (ITE 110) is the prototype for future development, with an average of 615 square feet per job. For future commercial / retail development, an average size shopping center (ITE 820) is a reasonable proxy with an average of 427 square feet per job. For future institutional development, elementary school (ITE 520) is a reasonable proxy with 1,076 square feet per job. The prototype for future office and other services development is a general office (ITE 710). This type of development averages approximately 337 square feet per job. Based on this methodology, TischlerBise estimates Fountain Hills has 2,589,055 square feet of nonresidential floor area. Figure A6: The Institute of Transportation Engineers, Employee and Building Area Ratios ITE Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft Code Unit Per Dmd Unit1 Per Employee1 Dmd Unit Per Emp 110 Light Industrial 1,000 Sq Ft 4.96 3.05 1.63 615 130 Industrial Park 1,000 Sq Ft 3.37 2.91 1.16 864 140 Manufacturing 1,000 Sq Ft 3.93 2.47 1.59 628 150 Warehousing 1,000 Sq Ft 1.74 5.05 0.34 2,902 254 Assisted Living bed 2.60 4.24 0.61 na 310 Hotel room 8.36 14.34 0.58 na 320 Motel room 3.35 25.17 0.13 na 520 Elementary School 1,000 Sq Ft 19.52 21.00 0.93 1,076 530 High School 1,000 Sq Ft 14.07 22.25 0.63 1,581 540 Community College student 1.15 14.61 0.08 na 565 Day Care student 4.09 21.38 0.19 na 610 Hospital 1,000 Sq Ft 10.72 3.79 2.83 354 620 Nursing Home bed 3.06 2.91 1.05 na 710 General Office (average size)1,000 Sq Ft 9.74 3.28 2.97 337 720 Medical-Dental Office 1,000 Sq Ft 34.80 8.70 4.00 250 730 Government Office 1,000 Sq Ft 22.59 7.45 3.03 330 750 Office Park 1,000 Sq Ft 11.07 3.54 3.13 320 760 Research & Dev Center 1,000 Sq Ft 11.26 3.29 3.42 292 770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325 820 Shopping Center (average size)1,000 Sq Ft 37.75 16.11 2.34 427 1. Trip Generation, Institute of Transportation Engineers, 10th Edition (2017). Land Use / Size DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 53 Employment and Nonresidential Floor Area Projections Future employment growth in Fountain Hills is based on Maricopa Association of Governments 2020— 2030 employment projections, by industry. To project growth in nonresidential square footage, TischlerBise applies the previously discussed ITE square feet per employee multipliers to the projected increase in employment. The results of these calculations are shown in Figure A7. Over the next 10 years, Fountain Hills is projected to gain 872 jobs and add an estimated 431,000 square feet of nonresidential development. Figure A7: Nonresidential Development Projections 2018 2019 2020 2021 2022 2023 2028 Base 1 2 3 4 5 10 Employment Industrial 455 458 462 464 466 468 477 22 Commercial 2,838 2,871 2,938 2,981 3,025 3,069 3,300 462 Institutional 469 478 502 512 523 534 592 123 Office 1,759 1,793 1,887 1,904 1,920 1,937 2,024 265 Total Employment 5,521 5,600 5,789 5,861 5,934 6,008 6,393 872 Nonresidential Floor Area (KSF) Industrial 280 282 284 285 286 288 293 13 Commercial 1,212 1,226 1,255 1,273 1,291 1,310 1,409 197 Institutional 505 514 540 551 563 575 637 132 Office 593 604 636 642 647 653 682 89 Total Floor Area 2,590 2,626 2,715 2,751 2,787 2,826 3,021 431 10-Year Increase DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 54 AVERAGE WEEKDAY VEHICLE TRIPS Average Weekday Vehicle Trips are used as a measure of demand by land use. Vehicle trips are estimated using average weekday vehicle trip ends from the reference book, Trip Generation, 10th Edition, published by the Institute of Transportation Engineers (ITE) in 2017. A vehicle trip end represents a vehicle entering or exiting a development (as if a traffic counter were placed across a driveway). Trip Rate Adjustments To calculate street development fees, trip generation rates require an adjustment factor to avoid double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 50 percent. As discussed further below, the development impact fee methodology includes additional adjustments to make the fees proportionate to the infrastructure demand for particular types of development. Commuter Trip Adjustment Residential development has a larger trip adjustment factor of 63 percent to account for commuters leaving Fountain Hills for work. According to the 2009 National Household Travel Survey (see Table 30) weekday work trips are typically 31 percent of production trips (i.e., all out-bound trips, which are 50 percent of all trip ends). As shown in Figure A8, the U.S. Census Bureau’s OnTheMap web application indicates that 84 percent of resident workers traveled outside of Fountain Hills for work in 2015. In combination, these factors (0.31 x 0.50 x 0.84 = 0.13) support the additional 13 percent allocation of trips to residential development. Figure A8: Commuter Trip Adjustment Trip Adjustment Factor for Commuters1 Employed Residents 9,155 Residents Working in Fountain Hills 1,495 Residents Working Outside Fountain Hills (Commuters)7,660 Percent Commuting out of Fountain Hills 84% Additional Production Trips2 13% Residential Trip Adjustment Factor 63% 1. U.S. Census Bureau, OnTheMap Application (version 6.5) and LEHD Origin-Destination Employment Statistics, 2015. 2. According to the National Household Travel Survey (2009)*, published in December 2011 (see Table 30), home-based work trips are typically 30.99 percent of “production” trips, in other words, out-bound trips (which are 50 percent of all trip ends). Also, LED OnTheMap data from 2015 indicate that 84 percent of Fountain Hills' workers travel outside the town for work. In combination, these factors (0.3099 x 0.50 x 0.84 = 0.12964686) account for 13 percent of additional production trips. The total adjustment factor for residential includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (13 percent of production trips) for a total of 63 percent. *http://nhts.ornl.gov/publications.shtml ; Summary of Travel Trends - Table "Daily Travel Statistics by Weekday vs. Weekend" DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 55 Adjustment for Pass-By Trips For commercial development, the trip adjustment factor is less than 50 percent because retail development attracts vehicles as they pass by on arterial and collector roads. For example, when someone stops at a convenience store on the way home from work, the convenience store is not the primary destination. For the average shopping center, ITE data indicate 34 percent of the vehicles that enter are passing by on their way to some other primary destination. The remaining 66 percent of attraction trips have the commercial site as their primary destination. Because attraction trips are half of all trips, the trip adjustment factor is 66 percent multiplied by 50 percent, or approximately 33 percent of the trip ends. Estimated Residential Vehicle Trip Rates As an alternative to simply using the national average trip generation rate for residential development, the Institute of Transportation Engineers (ITE) publishes regression curve formulas that may be used to derive custom trip generation rates, using local demographic data. Key independent variables needed for the analysis (i.e. vehicles available, housing units, households, and persons) are available from American Community Survey data. Shown in Figure A9, custom trip generation rates for Fountain Hills vary slightly from the national averages. For example, single-family residential development is expected to generate 7.29 average weekday vehicle trip ends per dwelling – compared to the national average of 9.44 (ITE 210). Multi-family residential development is expected to generate 3.63 average weekday vehicle trip ends per dwelling, which is lower than the national average of 5.44 (ITE 221). Figure A9: Average Weekday Vehicle Trip Ends by Housing Type Owner-occupied 17,046 8,252 968 9,220 1.85 Renter-occupied 3,664 1,087 1,370 2,457 1.49 Total 20,710 9,339 2,338 11,677 1.77 Persons in Trip Vehicles by Trip Average Housing Households3 Ends4 Type of Unit Ends5 Trip Ends Units6 Fountain Hills U.S. Avg7 Single-Family 20,097 55,971 16,877 110,006 82,989 11,381 7.29 9.44 Multi-Family 3,881 8,806 3,833 15,394 12,100 3,334 3.63 5.44 Total 23,978 64,778 20,710 125,400 95,089 14,715 6.46 1. Vehicles available by tenure from Table B25046, American Community Survey, 2013-2017 5-Year Estimates. 2. Households by tenure and units in structure from Table B25032, American Community Survey, 2013-2017 5-Year Estimates. 3. Total population in households from Table B25033, American Community Survey, 2013-2017 5-Year Estimates. 6. Housing units American Community Survey, 2013-2017 5-Year Estimates. 7. Trip Generation , Institute of Transportation Engineers, 10th Edition (2017). Trip Ends per Unit 4. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2017). For single-family housing (ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the ITE studies, persons were divided by 36 and the equation result multiplied by 36. For multi- family housing (ITE 221), the fitted curve equation is (2.29*persons)-81.02. 5. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2017). For single-family housing (ITE 210), the fitted curve equation is EXP(0.99*LN(vehicles)+1.93). To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 66 and the equation result multiplied by 66. For multi-family housing (ITE 221), the fitted curve equation is (3.94*vehicles)+293.58. Households by Structure Type2 Vehicles Available1 Single-Family Multi-Family Total Vehicles per HH by TenureTenure of Unit Type of Unit DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 56 Functional Population TischlerBise recommends functional population to allocate the cost of certain facilities to residential and nonresidential development. As shown in Figure A10, functional population accounts for people living and working in a jurisdiction. OnTheMap is a web-based mapping and reporting application that shows where workers are employed and where they live. It describes geographic patterns of jobs by their employment locations and residential locations as well as the connections between the two locations. OnTheMap was developed through a unique partnership between the U.S. Census Bureau and its Local Employment Dynamics (LED) partner states. Residents that do not work are assigned 20 hours per day to residential development and four hours per day to nonresidential development (annualized averages). Residents that work in Fountain Hills are assigned 14 hours to residential development and 10 hours to nonresidential development. Residents that work outside Fountain Hills are assigned 14 hours to residential development. Inflow commuters are assigned 10 hours to nonresidential development. Based on 2015 functional population data for Fountain Hills, the proportionate share is 81 percent for residential development and 19 percent for nonresidential development. Figure A10: Functional Population Demand Person Proportionate Hours/Day Hours Share Residential Peak Population 28,282 Residents Not Working 19,127 20 382,540 Employed Residents 9,155 Employed in Service Area 1,495 14 20,930 Employed outside Service Area 7,660 14 107,240 Residential Subtotal 510,710 81% Nonresidential Non-working Residents 19,127 4 76,508 Jobs in Service Area 4,424 Residents Employed in Service Area 1,495 10 14,950 Non-Resident Workers (inflow Commuters)2,929 10 29,290 Nonresidential Subtotal 120,748 19% TOTAL 631,458 100% Source: Maricopa Association of Governments 2015 Population Estimate, Fountain Hills; U.S. Census Bureau, OnTheMap 6.5 Application, 2015. Demand Units in 2015 DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 57 Development Projections Provided below is a summary of cumulative development projections used in the development impact fee study. Base year estimates for 2018 are used in the development impact fee calculations. Development projections are used to illustrate a possible future pace of demand for service units and cash flows resulting from revenues and expenditures associated with those demands. Figure A11: Development Projections Summary 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Base 1 2 3 4 5 6 7 8 9 10 Population Peak 28,840 29,048 29,258 29,470 29,683 29,898 30,115 30,334 30,555 30,778 31,003 2,163 Housing Units Single Family 8,445 8,509 8,574 8,640 8,706 8,773 8,840 8,908 8,977 9,046 9,115 670 Multi-Family 4,823 4,860 4,897 4,935 4,973 5,011 5,050 5,089 5,128 5,168 5,208 385 Total Housing Units 13,268 13,369 13,472 13,575 13,679 13,784 13,890 13,997 14,105 14,213 14,323 1,055 Employment Industrial 455 458 462 464 466 468 470 471 473 475 477 22 Commercial 2,838 2,871 2,938 2,981 3,025 3,069 3,114 3,159 3,205 3,252 3,300 462 Institutional 469 478 502 512 523 534 545 557 568 580 592 123 Office 1,759 1,793 1,887 1,904 1,920 1,937 1,954 1,972 1,989 2,006 2,024 265 Total Employment 5,521 5,600 5,789 5,861 5,934 6,008 6,083 6,159 6,236 6,314 6,393 872 Nonresidential Floor Area (KSF) Industrial 280 282 284 285 286 288 289 290 291 292 293 13 Commercial 1,212 1,226 1,255 1,273 1,291 1,310 1,330 1,349 1,369 1,389 1,409 197 Institutional 505 514 540 551 563 575 587 599 611 624 637 132 Office 593 604 636 642 647 653 659 664 670 676 682 89 Total Floor Area 2,590 2,626 2,715 2,751 2,787 2,826 2,865 2,902 2,941 2,981 3,021 431 10-Year Increase DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 58 APPENDIX B: LAND USE DEFINITIONS Residential Development As discussed below, residential development categories are based on data from the U.S. Census Bureau, American Community Survey. Fountain Hills will collect development fees from all new residential units. One-time development fees are determined by site capacity (i.e. number of residential units). Single-Family: 1. Single-family detached is a one-unit structure detached from any other house, that is, with open space on all four sides. Such structures are considered detached even if they have an adjoining shed or garage. A one-family house that contains a business is considered detached as long as the building has open space on all four sides. 2. Single-family attached (townhouse) is a one-unit structure that has one or more walls extending from ground to roof separating it from adjoining structures. In row houses (sometimes called townhouses), double houses, or houses attached to nonresidential structures, each house is a separate, attached structure if the dividing or common wall goes from ground to roof. 3. Mobile home includes both occupied and vacant mobile homes, to which no permanent rooms have been added, are counted in this category. Mobile homes used only for business purposes or for extra sleeping space and mobile homes for sale on a dealer's lot, at the factory, or in storage are not counted in the housing inventory. Multi-Family: 1. 2+ units (duplexes and apartments) are units in structures containing two or more housing units, further categorized as units in structures with “2, 3 or 4, 5 to 9, 10 to 19, 20 to 49, and 50 or more apartments.” 2. Boat, RV, Van, Etc. includes any living quarters occupied as a housing unit that does not fit the other categories (e.g., houseboats, railroad cars, campers, and vans). Recreational vehicles, boats, vans, railroad cars, and the like are included only if they are occupied as a current place of residence. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 59 Nonresidential Development The proposed general nonresidential development categories (defined below) can be used for all new construction within Fountain Hills. Nonresidential development categories represent general groups of land uses that share similar average weekday vehicle trip generation rates and employment densities (i.e., jobs per thousand square feet of floor area). Commercial / Retail: Establishments primarily selling merchandise, eating/drinking places, and entertainment uses. By way of example, Commercial / Retail includes shopping centers, supermarkets, pharmacies, restaurants, bars, nightclubs, automobile dealerships, and movie theaters, hotels, and motels. Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies, utility substations, power generation facilities, and telecommunications buildings. Institutional: Establishments including public and quasi-public buildings providing educational, social assistance, or religious services. By way of example, Institutional includes schools, universities, churches, daycare facilities, government buildings, and prisons. Office and Other Services: Establishments providing management, administrative, professional, or business services; personal and health care services. By way of example, Office and Other Services includes banks, business offices, assisted living facilities, nursing homes, hospitals, medical offices, and veterinarian clinics. DRAFT Land Use Assumptions, IIP, and Development Fee Report Fountain Hills, Arizona 60 APPENDIX C: FORECAST OF REVENUES The “Required Offset” percentage reduction is a placeholder that will be discussed in more detail at a later date. Arizona’s Enabling Legislation requires municipalities to forecast the revenue contribution to be made in the future towards capital costs and shall include these contributions in determining the extent of burden imposed by development. TischlerBise sometimes recommends a small percentage reduction in development fees to satisfy the “required offset,” which is a phrase taken directly from the enabling legislation (quoted below). 9-463.05.E.7. “A forecast of revenues generated by new service units other than development fees, which shall include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions, and a plan to include these contributions in determining the extent of the burden imposed by the development as required in subsection B, paragraph 12 of this section.” 9-463.05.B.12. “The municipality shall forecast the contribution to be made in the future in cash or by taxes, fees, assessments or other sources of revenue derived from the property owner towards the capital costs of the necessary public service covered by the development fee and shall include these contributions in determining the extent of the burden imposed by the development. Beginning August 1, 2014, for purposes of calculating the required offset to development fees pursuant to this subsection, if a municipality imposes a construction contracting or similar excise tax rate in excess of the percentage amount of the transaction privilege tax rate imposed on the majority of other transaction privilege tax classifications, the entire excess portion of the construction contracting or similar excise tax shall be treated as a contribution to the capital costs of necessary public services provided to development for which development fees are assessed, unless the excess portion was already taken into account for such purpose pursuant to this subsection.” Fountain Hills does not have a higher than normal construction excise tax rate, so the required offset described above is not applicable. The required forecast of non-development fee revenue that might be used for growth-related capital costs is shown in Figure C1. The forecast of revenues was provided by the Town of Fountain Hills. Projected population plus jobs, for the entire Municipal Planning Area, are documented in the land use assumptions. Figure C1: Five-Year Revenue Projections Source FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Intergovermental 5,485,747$ 5,510,550$ 5,535,610$ 5,560,903$ 5,586,457$ Permits, Licenses, Fees 1,161,061$ 1,080,158$ 1,122,024$ 1,116,202$ 1,153,139$ Building Revenue 556,662$ 588,802$ 554,104$ 576,366$ 793,042$ Local Taxes 9,067,725$ 9,103,363$ 9,442,027$ 9,758,534$ 10,097,493$ Total General Fund 16,271,195$ 16,282,873$ 16,653,765$ 17,012,005$ 17,630,131$ Source: Town of Fountain Hills 2018-2023 Revenue Projections. ITEM 7. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Public Works Prepared by: Raymond Rees, Facillities/Environmental Supervisor Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  Contract 2020-11 with Continental Flooring Company for the purchase and installation of flooring in the Fountain Hills Library. Staff Summary (Background) Carpeting at the library is in need of replacement.  The carpeting is carpet tile type and glued down to the subfloor.  The carpeting is coming up on the edges and causing a trip hazard.  Staff has been taping the edges down to reduce the hazard.  Upon inspection of the carpet, it was determined that the glue is not adhering to the carpet and concrete subfloor.  Moisture is coming up through the subfloor and inhibiting the glue from providing proper adhesion for the carpeting.  In reviewing the construction drawings for the library, it was noted that a vapor barrier was never installed underneath the concrete subfloor.  Changes in the carpeting industry from petroleum based glues to water based glue has caused this type of reaction in other locations.  The town experienced this in the classrooms at the community center.  The concrete subfloor was tested and the moisture reading would not allow the use of the water-based adhesive for the new flooring. The proposed contract will provide remediation of the moisture in the concrete by providing a moisture barrier between the concrete subfloor and the carpeting. The cost for purchasing and installing carpeting and a vapor barrier in the library will be approximately $127,790.  The funding for the replacement of carpeting will be paid from the Capital Facilities Replacement Fund.  While adding a vapor barrier will be costly, it will also reduce potential tripping hazards in the library and extend the life of the new carpeting. The request for an additional $242,210.20 on the contract is for the carpeting at the Community Center and Town Hall.  Recarpeting the Community Center and Town Hall will not take place until additional funding in the Capital Facilities Replacement Fund budget becomes available. But by approving this, it will allow the town to lock in a substantial discount due to volume savings from the vendor.   Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approve contract 2020-011 as stated. SUGGESTED MOTION MOVE to approve Contract 2020-11 with Continental Flooring Company for the purchase and installation of flooring in the amount not to exceed $127,789.80 with a total aggregate amount of $370,000 Fiscal Impact Fiscal Impact:$127,789.80 Budget Reference: Funding Source:Capital Facilities Replacement Fund If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments Contract  Form Review Inbox Reviewed By Date Public Works Director Justin Weldy 12/05/2019 05:50 AM Town Attorney Aaron D. Arnson 12/05/2019 09:45 AM Town Manager Grady E. Miller 12/05/2019 09:46 AM Form Started By: Raymond Rees Started On: 12/04/2019 03:39 PM Final Approval Date: 12/05/2019  ITEM 7. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  a request for a SPECIAL USE PERMIT to allow new and used automobile sales in the C-2 zoning district on a portion of the property located at 11625 N. Saguaro Boulevard.   Case #SUP2019-02 Staff Summary (Background) The property at 11625 N. Saguaro Boulevard is a 1.14 acre lot that has historically contained several different businesses.  The building along the north side of the property adjacent to Desert Vista has been developed and used as a service station with gas pumps. The tanks for the service station are still in place on the eastern side of the property.   A current tenant of the former service station portion of the property is Fountain Hills Offroad.  This business sells and installs aftermarket accessories for Jeeps.  The current use is allowed by right in the C-2 zoning district.  The business owners would like to expand their business by also offering used Jeeps for sale on the property.  Section 12.05 of the Zoning Ordinance allows new and used automobile sales in the C-2 zoning district with approval of a Special Use Permit.   The site plan and narrative submitted with this application indicate the owner will close the driveway access from the frontage road and only use the driveway from Desert Vista.  There is an existing customer parking area to the east side of the entry drive.  The applicant has committed to repaving and restriping this parking area.  The number of customer parking spaces meets the code requirement.   The area under the canopy will be for the display of the vehicles for sale.  There is an ordinance requirement that prohibits display of vehicles within 20’ of the property line along the frontage road.  This requirement will be met by keeping the vehicles under the canopy.   The applicant has also stated their intention to repair and repaint the existing building.  This will include fixing the broken glass window along the frontage road side of the building.   Review and Analysis Section 2.02. D. 5. of the Zoning Ordinance states: “In order to recommend approval of any use permit, the findings of the Commission must be that the establishment, maintenance, or operation of the use or building applied for will not be detrimental to the public health, safety, peace, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use, nor shall it be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the town.”     The proposed use is consistent with historic use of the property and does not pose any identified adverse impacts on the surrounding properties.  There are two other vehicle sales operations along this stretch of Saguaro Boulevard.  There is some concern for the existing underground storage tanks on the property, but the property owner needs to work with the Arizona Department of Environmental Quality on that issue; it is not being made worse by the proposed use.   Driveway The applicant is proposing to use a chain to block the driveway from the frontage road.  They are proposing this option due to the fact they are tenants and are not in position to make substantial changes to the property.  They also felt that a chain would be easy to remove in the event the Fire Department needed alternative access to the site.  It would be too costly at this point to fully remove the existing driveway.   Staff has some concerns with this approach.  Chapter 19 of the Zoning Ordinance provides Architectural Review Guidelines.  These guidelines are in place to help continually upgrade commercial development.  One site plan objective is to create an attractive appearance.  Because of the visibility along Saguaro, a main entry into the Town and the Town Center, it seems that another choice, such as using pots with plants, would be more attractive.      Property Improvements The applicant has stated in their project description their intention to make improvements to the property if the SUP is approved.  The landscaping on the property should also be enhanced.  These commitments should be tied to a specific schedule to ensure they are done.    Section 2.02. D.6. of the Zoning Ordinance states:  “The Commission may recommend to the Town Council such conditions in connection with the use permit as it deems appropriate to secure the intent and purposes of this ordinance and may recommend such guarantees and evidence that such conditions are being or will be followed.”  Staff would suggest that the Commission recommend to the Council a solution other than the chain to block the driveway and that the applicant be given six months to make all the site improvements. Related Ordinance, Policy or Guiding Principle Zoning Ordinance                  Section 2.02 Zoning Ordinance                  Section 12.05   Risk Analysis Approving the request for the Special Use Permit will allow for active use of this property with a use that is compatible with the area.  Active use of the property will lead to making needed building and site improvements.   Denying the Special Use Permit will keep the property as it is.   Recommendation(s) by Board(s) or Commission(s) At its regular meeting on November 14, 2019, the Planning and Zoning Commission discussed concerns with the existing underground storage tanks.  The commissioners encouraged staff to follow up with ADEQ to see what the current status is regarding the underground tanks.  The commissioners also expressed a desire that a solution be found to having a chain used to block access to the site from the frontage road and encouraged a more creative solution.  The Commission recommended approval of the SUP with a 5-0 vote. Staff Recommendation(s) Staff recommends approval of the Special Use Permit with the conditions described in the report to make improvements to the property within six months. SUGGESTED MOTION MOVE to APPROVE Special Use Permit 19-02 subject to compliance with the property improvements defined in this report. Attachments Case Details Map  Site Plan  Application  Applicant Letters  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 12/03/2019 01:20 PM Town Attorney Aaron D. Arnson 12/03/2019 02:04 PM Town Manager Grady E. Miller 12/03/2019 08:28 PM Form Started By: John Wesley Started On: 11/19/2019 12:57 PM Final Approval Date: 12/03/2019  CASE: SUP2019-02 SITE / ADDRESS: 11625 N Saguaro APN #176-08-466A REQUEST: A Special Use Permit to allow new and used automobile sales. Site Location ITEM 7. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Public Works Prepared by: Jeff Pierce, Streets Superintendent Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  approving the purchase of a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom for the Streets Division of the Public Works Department. Staff Summary (Background) Over the past two (2) years, severe monsoon storms have created many hazards throughout the Town of Fountain Hills. Impassable roads covered in rock and mud, over-topped sediment basins with debris from upstream flows and unwanted gravel/rock in right-of-way traffic lanes are just a few examples of what staff has had to respond to at all hours of the day and night. Unfortunately, long wait times and unavailability of rental equipment from vendors and conflicting contractor obligations have put prolonged time delays with town-wide cleanup efforts.   Currently, for the Fiscal Year 2019/20, the Street Department has requested two new pieces of equipment to help with the preparation and clean-up during monsoon season events and other town-wide maintenance projects (drainage, wash and road maintenance) as part of the day-to-day operations. A 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom will allow staff to respond to any potential hazard (dirt, mud & debris) in a timely manner during monsoon season. Related Ordinance, Policy or Guiding Principle New Vehicle Request Risk Analysis Without this heavy equipment, significant delays for storm debris can occur due to time restrictions and availability of rental equipment. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approval to purchase a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom Approval to purchase a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom in the amount of $169,676.97 SUGGESTED MOTION MOVE to approve the purchase of a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom in the amount of $169,676.97.   Fiscal Impact Fiscal Impact:$169,676.97 Budget Reference:Page 408 Funding Source:VRHURF-8010 If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form:Yes Attachments CPA Empire Southwest  Contract Cover Sheet Empire Southwest  RFLS Empire Southwest  Form Review Inbox Reviewed By Date Public Works Director Jeff Pierce 12/02/2019 06:52 AM Streets Superintendent (Originator)Jeff Pierce 12/02/2019 12:18 PM Public Works Director Jeff Pierce 12/02/2019 12:37 PM Streets Superintendent (Originator)Jeff Pierce 12/02/2019 12:39 PM Public Works Director Justin Weldy 12/02/2019 01:24 PM Town Attorney Aaron D. Arnson 12/03/2019 02:11 PM Town Manager Grady E. Miller 12/03/2019 08:43 PM Form Started By: Jeff Pierce Started On: 12/02/2019 05:35 AM Final Approval Date: 12/03/2019  1 Contract No. C2020-013 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND EMPIRE SOUTHWEST, LLC D/B/A EMPIRE POWER SYSTEMS THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into as of September 3, 2019, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and Empire Southwest, LLC, a Delaware limited liability company d/b/a Empire Power Systems (the “Contractor”). RECITALS A. After a competitive procurement process, Sourcewell entered into Contract No. 032119-CAT, dated May 13, 2019, with Caterpillar Inc., a Delaware corporation (“Caterpillar”), for the procurement of heavy construction equipment with related accessories, attachments, and supplies (the “Sourcewell Contract”). A copy of the Sourcewell Contract is attached hereto as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. Contractor is an authorized dealer for Caterpillar. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the Sourcewell Contract, at its discretion and with the agreement of the awarded Contractor, and the Sourcewell Contract permits its cooperative use by other public entities, including the Town. C. The Town and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging the cooperative contractual relationship under the Sourcewell Contract and this Agreement, (ii) establishing the terms and conditions by which the Town will purchase a CAT 415F2 Industrial Loader and a Broce CRT350 Power Broom and related equipment (the “Materials”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials. 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 Agreement. This Agreement shall be effective as of the date first set forth above and shall remain in full force and effect until September 2, 2020 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the Sourcewell Contract. 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 2 availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the Sourcewell Contract has not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any price adjustments approved as part of the Sourcewell Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’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 Contractor, 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. Scope of Work. Contractor shall provide the Town with the Materials under the terms and conditions of the Sourcewell Contract and as more particularly set forth in the Contractor Proposals attached hereto as Exhibit B and incorporated herein by reference. 2.1 Inspection; Acceptance. The Materials are subject to final inspection and acceptance by the Town. If the Materials fail to conform to the requirements of this Agreement and/or the Sourcewell Contract, they will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of a non-conforming product, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring the Materials into compliance and withhold the cost of same from any payments due to the Contractor. 3. Compensation. The Town shall pay Contractor an aggregate amount not to exceed $169,676.97 for the Materials at the rates set forth in the Sourcewell Contract and as more particularly set forth in the Contractor Proposals. 4. Payments. The Town shall pay the Contractor upon delivery and acceptance of the Materials, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the Sourcewell Contract and (ii) document and itemize all products delivered to date. The invoice statement shall include sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the Sourcewell Contract will be subject to rejection and may be returned. 5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor 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 evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or 3 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 Contractor pursuant to this Agreement. Contractor 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 Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor 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). Contractor’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. 7. 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. 8. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 9. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona, and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 10. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 11. Conflicting Terms. In the event of any inconsistency, conflict, or ambiguity among the terms of this Agreement, the Contractor Proposals, the Sourcewell Contract, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in 4 conformity with Section 2 above, unauthorized exceptions, conditions, limitations, or provisions in conflict with the terms of this Agreement or the Sourcewell Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the Sourcewell Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed as or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 12. Rights and Privileges. To the extent provided under the Sourcewell Contract, the Town shall be afforded all of the rights and privileges afforded to Sourcewell and shall be “Sourcewell” (as defined in the Sourcewell Contract) for the purposes of the portions of the Sourcewell Contract that are incorporated herein by reference. 13. Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to Sourcewell to the extent provided under the Sourcewell Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor shall indemnify, defend, and hold harmless the Town and each council member, officer, employee, and 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, in connection with the products or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 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 (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below, or (iii) 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 E. Falcon Drive, Suite 111 Mesa, Arizona 85215 Attn: Aaron D. Arnson, Town Attorney If to Contractor: Empire Southwest, LLC d/b/a Empire Power Systems 5 1725 S. Country Club Drive Mesa, AZ 85210 Attn: Doug Calvet 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: (i) when delivered to the party, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage, or (iii) 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. [SIGNATURES APPEAR ON FOLLOWING PAGES] 6 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 (ACKNOWLEDGEMENT) STATE OF ARIZONA ) ) ss. COUNTY OF MARICOPA ) On ________________, 2019, 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] EXHIBIT A TO COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND EMPIRE SOUTHWEST, LLC D/B/A EMPIRE POWER SYSTEMS [Sourcewell Contract] See following pages. EXHIBIT B TO COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND EMPIRE SOUTHWEST, LLC D/B/A EMPIRE POWER SYSTEMS [Contractor Proposals] See following pages. 01/30/19 Town of Fountain Hills Attention: Jeff Pierce Office: 480-816-5129 Jpierce@fh.az.gov Re: NIPA Quotation Contract #161534 2019 Broce CRT350 Broom BROCE RCT 4 CYL 3.3L Cummins Turbo Diesel Tier 4 Final WITH Blade 4 CYL 3.3L Cummins T4 Final 51,965.00$ Tilt steering 675.00$ Turbo II precleaner 275.00$ 150 gal. water system 1,250.00$ Cab with wiper 5,095.00$ heater/defroster system 665.00$ Pressurized air conditioner 3,400.00$ Light group 670.00$ Amber beacon 400.00$ West Coast mirrors 135.00$ Rear wiper 365.00$ Windshield washers - F/R 380.00$ 7 1/2 ft Front Scraper Blade Attachment 3,965.00$ Safety engine shutdown -$ Audible engine alarm 305.00$ Air stack extension -$ Suspension seat 355.00$ Heavy duty rear axle 1,375.00$ Hydraulic temp gauge 210.00$ Work light - side 195.00$ Work light - rear 195.00$ Block heater 190.00$ AM/FM/CD radio 565.00$ Broce List Price:72,630.00$ NIPA Contract #161534 Discount 9%6,536.70$ Broce Quoted Freight 1,800.00$ Net Total 67,893.30$ Sales Tax 8.05%5,465.41$ Total 73,358.71$ Warranty Standard Manufacturer’s Warranty 12 months *Includes delivery to Fountain Hills yard and extensive operator and safety training from one of our CAT certified instructors. If you have any questions regarding this information please let me know. Thank you for allowing Empire Machinery to assist with your Caterpillar equipment needs. Sincerely, Doug Calvet Account Manager 602-622-4917 Doug.Calvet@empire-cat.com 12/6/2018 Town of Fountain Hills Attention: Jeff Pierce Office: 480-816-5129 Jpierce@fh.az.gov Re: NIPA Quotation Contract #161534 2018 New Caterpillar 415F2IL 415F2 Industrial Loader – Cab with AC/Heater Standard Equipment POWERTRAIN Stop and tail lights Cat C3.4B, 55KW (Net 68HP/51kW) Audible system fault alarm - Direct Injection Turbo Charged Engine, Key start/stop system - US EPA Tier4 Final Emissions Compliant 880 CCA maintenance free battery Water separator Battery disconnect switch Thermal starting aid system External Power Receptacle (12v) A dry type axial seal air cleaner with Remote jump start connector - integral precleaner - automatic dust ejection system OPERATOR ENVIRONMENT - filter condition indicator Lighted gauge group Hydraulically boosted multi-plate wet Interior rearview mirror disk brake with Rear fenders - dual pedals & interlock ROPS canopy Differential lock Foot throttle Drive-line parking brake Mechanical suspension seat Torque converter Coat Strap Four Wheel Drive Transmission-four speed manual shift APPLICATION SPECIFIC COMPONENTS - neutral safety switch Bucket level indicator Spin-on filters for Lift cylinder brace - fuel Return-to-dig - engine oil (automatic bucket positioner) - transmission oil Self-leveling loader with single lever Outboard Planetary Rear Axles control Diesel Particulate Filter Transmission neutralizer switch Single Tilt Loader HYDRAULICS Load sensing, variable flow system with FLUIDS - 35 gpm axial piston pump Antifreeze - Extended Life Coolant 6 micron hydraulic filter -30C (-20F) O-ring face seal hydraulic fittings Caterpillar XT-3 hose OTHER STANDARD EQUIPMENT Hydraulic oil cooler Hydrostatic power steering Flow-Sharing Hydraulic Valves Standard Storage Box Hydraulic suction strainer Transport tie-down points Ground line fill fuel tank with ELECTRICAL - 44 gallon capacity 12 volt electrical start Rubber impact strips on radiator guards 150 ampere alternator Bumper Horn CD-ROM Parts Manual Backup alarm Safety Manual Hazard flashers/turn signals Operations and Maintenance Manual Halogen head lights (2) Lockable hood Halogen rear flood lights (2) Tire Valve Stem Protection Configured as Follows Ref # Description Price 4625265 415F2IL $83,940 0P9002 LANE 2 ORDER $0 4625273 HYDRAULICS, GP, 3FCN/5BNK $5,580 4470049 PRODUCT LINK, CELLULAR, PL641I $0 4625276 CAB, STANDARD, A/C $10,080 4916734 WORKLIGHTS (8) HALOGEN LAMPS $0 2061748 SEAT BELT, 3" SUSPENSION $107 4649639 TIRES,12.5 80/16.9-24, GY/TI $1,510 3379695 COUNTERWEIGHT, 530 LBS $875 4625281 HITCH 3 POINT $0 3377382 BUCKET-GP, 1.0 CYD $2,699 9R5321 CUTTING EDGE, TWO PIECE $331 4627172 INSTRUCTIONS ANSI $0 4218926 SERIALIZED TECHNICAL MEDIA KIT $0 4572797 BATTERY, HEAVY DUTY $223 4636939 COUNTERWEIGHT, 198 LBS $565 4619717 BOX, BLADE/SCARIFIER $6,042 4705247 KIT, DUAL TILT CYLINDER $2,028 0P0210 PACK, DOMESTIC TRUCK $0 4616839 SHIPPING/STORAGE PROTECTION $199 4621033 RUST PREVENTATIVE APPLICATOR $106 Warranty Standard Manufacturer’s Warranty 12 months / unlimited hours. Includes travel time and mileage for warrantable repairs. Pricing Summary Caterpillar List Price: $114,285.00 City of Tucson NIPA Contract #161534 Discount 22%: (25,142.70) Sub Total: $89,142.30 Sales Tax 8.05%: 7,175.96 Total: $96,318.26 *Includes delivery to Fountain Hills yard and extensive operator and safety training from one of our CAT certified instructors. If you have any questions regarding this information please let me know. Thank you for allowing Empire Machinery to assist with your Caterpillar equipment needs. Sincerely, Doug Calvet Account Manager 602-622-4917 Doug.Calvet@empire-cat.com Revised 12/21/16 CONTRACT/GRANT INFORMATION SHEET - NEW CONTRACT Date: 8/6/2019 Staff’s Name: Justin T. Weldy Department: Public Works Vendor’s Name: Empire Southwest LLC Vendor Number: 246 Address: 1725 S Country Club Drive Mesa, AZ 85210 Phone: 602-633-4917 Received W9: Y N ALREADY IN SYSTEM Business License #: Pending Exp. Date: ACCOUNTING SUMMARY Org Object Project/# $ Accounting Code: VRHURF 8010 Accounting Code: Accounting Code: TBD(used for variety of different things/departments /funds): Choose an item. CONTRACT SUMMARY Contract Number Assigned: C2020-013 Current Contract Total: $169,676.97 Total Contract Amount with Renewals: Brief Description of Service: Equipment Purchase If Renewable: Total # of Renewals Max: 0 FY Cumulative Vendor Totals: Does this Contract put it over $50,000 Yes No Contract Beginning Date: 9/3/2019 Contract Expiration Date: 9/2/2020 Budgeted Expenditure: Yes No Budget Page #: 414 Approved by Council: Yes; Date: SEPTEMBER 3, 2019 No N/A Insurance Certificate provided: Yes No N/A Warranty Period: Yes No If Yes, expires 48 months Estimate d Start Date: 9/4/2019 Estimate d Completion Date: 9/2/2020 GRANT SUMMARY Paid for by Grant: Yes No Name of Grantee: Grant Number Assigned: Resolution Number: Date Council Approved: c:\windows\temp\bcl technologies\easypdf 7\@bcl@1834a36d\@bcl@1834a36d.docx Rev. 12/2016 REQUEST FOR LEGAL SERVICES Name/Phone Number/E-mail of Requestor: Justin T. Weldy 480-816-5133 jweldy@fh.az.gov Date of Request:6/27/2019 Date Director Approved Request: 6/27/2019 Procurement Approval by: Craig Rudolphy 6/27/2019 Yes No: - Contact Finance Director Due Date (From Town Attorney’s office): 7/12/2019 • Deadline for return of request from Legal is 10 business days after Procurement Approval. Council Meeting Date : 8/13/2019 Item does not require Council approval • Deadline for completed packet item s submitted to the Town Clerk - 12 PM the Wednesday 2 weeks prior to the date of the Council meeting. Request for Legal staff: Prepare cooperative purchasing agreement in the amount of $169,676.97 using the attached State of Arizona documents. This agreement is for the vehicle replacement purchase of a 2018 Caterpillar 415F2 Industrial Loader and a 2019 Broce CRT350 Power Broom . Proposed Agenda Language (if applicable): Consent Agenda Item Regular Agenda Item CONSIDERATION of approving the purchase a 201 8 Caterpillar 4 15F2 Industrial Loader and a 2019 Broce CRT350 Power Broom approved in the fiscal year 2019/20 budget utilizing the vehicle replacement fund. Vendor/Consultant/Agreement/Agency Information : Contact Name: Doug Calvet Entity Name: Empire Southwest LLC Entity Address: 1725 S Country Club Drive Mesa, AZ 85210 Entity Phone , Fax and E-mail address: 602-633-4917; 480-633-4626 (F); rena.mcdonald@empire -cat.com Town of Fountain Hills Business License Number: N/A Arizona Corporation Commission File Number: R08238673 Documents Requested: Ordinance # (Draft attached Y/ / N) Publication Dates for Zoning Actions: Resolution # (Draft attached Y/ / N) Easement (Specify Type) Deed (Specify Type) IGA / Amendment (Corresponding Resolution Required) PSA / Amendment PA (Purchase) / Amendment IFB (Invitation for Bid) RFQ (Request for Qualifications) RFP (Request for Proposals) CSA (Construction) / Amendment QSP Cooperative Purchasing Agreement Approval 2020-013 Other Required Contract/Agreement Information: Method of Vendor Selection:National Joint Powers Alliance (Sourcewell) Coop Term of Contract/Agreement:May 13, 202 3 Contract Amount (this contract):$169,676.97 Cumulative Contract Amount:$169,676.97 Brief description of services/goods being sought: Vehicle Replacment Purchase of a 201 8 CAT 415F2 Industrial Loader and 2019 Broce CRT350 Power Broom Contract # assigned: C2020-013 Funding Source: VRAD Project No. Budget Transfer Required: ; if yes, attach appropriate documentation ------------------------------------------------------------------------------------------------------------------------------------ -- Staff Check List: A “request for legal services form” will be returned if submitted without the necessary information and attachments. *Scope of Work or Specifications Attached *QSP Document Attached *Fee Proposal or Price Sheet Attached *Underlying Cooperative Purchasing Agreement Attached *Proposal or Statement of Qualifications from Vendor Attached c:\windows\temp\bcl technologies\easypdf 7\@bcl@1834a36d\@bcl@1834a36d.docx Rev. 12/2016 *Bid/RFQ/RFP Schedule Attached Finance requires a “contract cover sheet” prior to processing the approved/signed contract/agreement for payment(s). ITEM 7. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  adopting Resolution 2019-59 ordering and calling a Special Election to be held in and for the Town on May 19, 2020, to refer to the voters of the Town 1) Ordinance 19-03 rezoning 59.79 acres generally located at the northeast corner of Shea and Palisades Boulevards from L-3 P.U.D. and OSR to Daybreak P.A.D.; and 2) Resolution 2019-39, changing roughly 23 acres near the northeast corner of Shea and Palisades Boulevard from Lodging to Multi-Family/Medium; and other questions which may be ordered by the Town Council as permitted by law. Staff Summary (Background) At the December 3, 2019, Regular Council Meeting, the Town Council unanimously (6-0) moved to direct staff to bring back a resolution to the December 17, 2019 Council Meeting ordering and calling a Special Election for May 19, 2020, for referring the two referenda questions regarding the Daybreak development to the voters. With another issue being discussed after this item on the agenda, wording has been included that would permit other questions to be added to the Special Election ballot should the Town Council wish to do so, and as permitted by state law.   Related Ordinance, Policy or Guiding Principle Resolution 2019-59 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A  Staff Recommendation(s) Should the Council wish to move forward with a Special Election for May 19, 2020, staff recommends adopting Resolution 2019-59. SUGGESTED MOTION MOVE to adopt Resolution 2019-59. Fiscal Impact Fiscal Impact:$50,000 Budget Reference:- Funding Source:- If Multiple Funds utilized, list here:- Budgeted: if No, attach Budget Adjustment Form:- Attachments Res 2019-59  Form Review Inbox Reviewed By Date Finance Director David Pock 12/05/2019 07:34 AM Town Attorney Aaron D. Arnson 12/05/2019 09:46 AM Town Manager Grady E. Miller 12/05/2019 09:47 AM Form Started By: Elizabeth A. Burke Started On: 12/05/2019 07:06 AM Final Approval Date: 12/05/2019  RESOLUTION NO. 2019-59 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ORDERING AND CALLING A SPECIAL ELECTION TO BE HELD IN AND FOR THE TOWN OF FOUNTAIN HILLS, ON MAY 19, 2020, TO REFER TO THE VOTERS OF THE TOWN 1) ORDINANCE 19-03 REZONING 59.79 ACRES GENERALLY LOCATED AT THE NORTHEAST CORNER OF SHEA AND PALISADES BOULEVARDS FROM L-3 P.U.D. AND OSR TO DAYBREAK PAD; AND 2) RESOLUTION 2019-39, CHANGING ROUGHLY 23 ACRES NEAR THE NORTHEAST CORNER OF SHEA AND PALISADES BOULEVARDS FROM LODGING TO MULTI- FAMILY/MEDIUM RECITALS: WHEREAS, on October 10, 2019, two applications for referenda petition serial numbers REF2019-01 and REF2019-02 were filed with the Town Clerk; and WHEREAS, on October 31, 2019, petitions for each of the referenda questions were filed with the Office of the Town Clerk within the deadline established by Arizona Revised Statutes; and WHEREAS, after review and procedures conducted by the Fountain Hills Town Clerk and subsequent random sampling voter registration verification by the Maricopa County Recorder’s Office, it was determined that said petitions contained adequate numbers of signatures to place each item on the ballot; and WHEREAS, the Fountain Hills Town Council believes it to be in the best interest of the Town to order and call a special election to be held on May 19, 2020. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. Order and Call of Election. A special election in the Town of Fountain Hills, Arizona, is hereby ordered and called to be held on May 19, 2020, to refer to the qualified electors of the Town Ordinance No. 19-03 (Daybreak Rezone) and Resolution 2019-39 (Daybreak General Plan Amendment), and other questions which may be ordered by the Town Council to be placed on said ballot after adoption of this resolution, as permitted by law. SECTION 2. Conduct of Election. The election will be conducted by mail ballot according to A.R.S. 16-409, as amended, and the Town Clerk is hereby authorized to sign Maricopa County’s Menu of Services Agreement for the conduct of the May 19, 2020 Special Election. SECTION 3. Informational Pamphlet. The Town Clerk is hereby directed to cause the preparation and distribution of an informational pamphlet, which shall include the sample ballot for the Town; and, if the Town Clerk determines it to be in the Town’s best interests, combine such informational pamphlet and sample ballot with any other informational pamphlet being RESOLUTION 2019-59 PAGE 2 prepared for the May 19, 2020 Special Election. The Informational Pamphlet is to be mailed by April 20, 2020 to the residence of each registered voter of the Town as shown on the general county register. SECTION 4. Submitting Arguments. The Town hereby sets the date of February 19, 2020, at the hour of 6:00 p.m., as the deadline to submit arguments FOR or AGAINST each of the questions. The Town Clerk is authorized to publish in a newspaper of general circulation within the Town a notice stating the deadline for the filing with the Town of arguments FOR or AGAINST, for inclusion in the informational pamphlet. A form of the notice requesting arguments FOR and AGAINST, including the deadline for submitting arguments, is attached hereto as Exhibit A. The Town Clerk is authorized to revise the form of notice hereto as necessary to comply with all applicable laws. Each argument shall not exceed 300 words in length and shall contained the sworn statement of each person sponsoring it. If the argument is sponsored by an organization, it shall contain the sworn statement of two executive officers of the organization, or if sponsored by a political committee, it shall contain the sworn statement of the committee’s chairman or treasurer. Each argument shall also be submitted to the Town Clerk in electronic format. Persons signing shall also identify themselves by giving their residence or post office address and a telephone number, which shall not appear in the pamphlet. With each argument supporting or opposing the questions, one hundred dollars ($100.00) shall be deposited with the Town Clerk, for a proportionate cost of paper and printing the argument. SECTION 5. Deadline for Voter Registration and Mailing of Ballots. Maricopa County registration and voting lists will be used for the special election. To be qualified to vote in the special election, a Town resident must be registered to vote by April 20, 2020. In an all-mail ballot election, all qualified electors who were registered by the registration deadline will receive a mail ballot. Official ballots for the special election will be mailed by Maricopa County Electio ns to qualified electors three to four weeks prior to the election date. The following locations will open as ballot replacement locations as noted: Fountain Hills Community Center 05/11/20 – 05/19/20 13001 North La Montana Drive Fountain Hills, Arizona 85268 Maricopa County Elections Department – MCTEC 04/22/20 – 05/19/20 510 South 3rd Avenue Phoenix Arizona 85003 Maricopa County Recorder/Elections Department – MESA 04/22/20 – 05/19/20 222 East Javelina Mesa, Arizona 85210 SECTION 6. Ballots. The Town Clerk is hereby authorized and directed to cause ballots to be printed and mailed to the qualified electors offering to vote at the election. The Mayor and the Town Clerk, or either of them, are authorized and directed to enter into one or more contracts or agreements with the Maricopa County Recorder and with the Maricopa County Elections Department for election services. RESOLUTION 2019-59 PAGE 3 PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 17th day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney RESOLUTION 2019-59 PAGE 4 EXHIBIT A TOWN OF FOUNTAIN HILLS MAY 19, 2020 SPECIAL ELECTION REQUEST FOR STATEMENTS FOR OR AGAINST The Town of Fountain Hills, Arizona will hold a Special Election on Tuesday, May 19, 2020, to refer to the qualified electors of the Town Ordinance 19-03 (Daybreak Rezone) and Resolution 2019-39 (Daybreak General Plan Amendment), and other questions which may be ordered by the Town Council to be placed on said ballot after adoption of this resolution, as permitted by law. Ballot language will be available in the Town Clerk’s Office and on the Town’s webpage by January 5, 2020. Questions will be presented to the qualified voters of the Town of Fountain Hills in an informational pamphlet. The pamphlet will be mailed to the households of all registered voters prior to the start of early voting. Any person(s) wishing to submit a statement FOR or AGAINST the questions may be submitted for publication in the informational pamphlet. Each argument cannot exceed 300 words in length and must contain the sworn statement of each person sponsoring it. If the argument is sponsored by an organization, it shall contain the sworn statement of two executive officers of the organization, or if sponsored by a political committee, it shall contain the sworn statement of the committee’s chairman or treasurer. Each argument shall also be submitted to the Town Clerk in electronic format. A payment of one hundred dollars ($100.00), to offset a portion of the cost of paper and printing the pamphlet, must accompany the filing of each argument. Arguments must be submitted by 6:00 p.m. on February 19, 2020, at the following location: Fountain Hills Town Clerk’s Office 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 For more information, please call the Fountain Hills Town Clerk Elizabeth Burke at 480.816.5115. ITEM 7. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/17/2019 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Elizabeth A. Burke, Town Clerk Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF  adopting Ordinance 19-19 amending the Town Code Chapter 2, Article 2-1-1, Elected Officials, extending the term of office of the Mayor from two years to four years. Staff Summary (Background) The Town Manager has received a request from some Councilmembers to include this item on the agenda to provide an opportunity to consider referring to the voters an amendment to the Town Code changing the term of the office of the Mayor from two (2) years to four (4) years.  This proposed change would make the term of the Mayor consistent with the terms of the other members of the Town Council.  A number of cities and towns in the Valley and elsewhere in Arizona have four-year terms for their Mayors.   On July 2, 1992, an ordinance was adopted to refer to the voters a question to provide for direct election of the Mayor. That ordinance included that the term of the office of Mayor be for two (2) years. Since this original ordinance was adopted and the question was referred to the voters, and approved, it has been determined that to change the term from two years to four years would require that question be referred to the voters. It has been suggested by some that if the majority of Council wished to refer this question, it could be added to the ballot of the Special Election called for May 19, 2020. The resolution calling the Special Election does include wording that would allow other questions to be added to the ballot, as permitted by law. Related Ordinance, Policy or Guiding Principle Ordinance 19-19; Resolution 2019-58 calling a Special Election Risk Analysis N/A  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Should the Town Council wish to refer this question to the voters, staff would recommend that Ordinance 19-19 be adopted and that the question be added to the May 19, 2020, Special Election ballot. SUGGESTED MOTION MOVE to adopt Ordinance 19-19. Attachments Ord 19-19  Form Review Inbox Reviewed By Date Finance Director David Pock 12/05/2019 09:38 AM Town Attorney Aaron D. Arnson 12/05/2019 09:48 AM Town Manager Grady E. Miller 12/05/2019 03:07 PM Form Started By: Elizabeth A. Burke Started On: 12/05/2019 07:26 AM Final Approval Date: 12/05/2019  ORDINANCE 19-19 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN CODE CHAPTER 2 BY AMENDING SECTION 2-2-1, ELECTED OFFICERS, DEALING WITH THE TERM OF THE OFFICE OF MAYOR AND PROVIDING FOR A VOTE OF THE QUALIFIED ELECTORS OF THE TOWN APPROVING SAID CHANGE ENACTMENTS: NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. THAT Chapter 2, Article 2-1, Elected Officers, Section 2-1-1 is hereby amended as follows: Section 2-1-1 Elected Officers A. The elected officers of the Town shall be a Mayor and six Councilmembers. The Mayor and Councilmembers shall constitute the Council and shall continue in office until assumption of duties of office by their duly elected or appointed successors, as set forth in Sections 2-1-3 and 2-1-4 of this Article. B. The term of the office of Mayor shall be for two FOUR years. C. Councilmembers shall serve four-year, overlapping terms. SECTION 2. THAT the provisions of this ordinance shall not become effective until after the question of changing the term of the office of Mayor has been presented to the qualified electors of the Town of Fountain Hills and the question shall have received a majority of the votes cast. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 17th day of December, 2019. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Elizabeth A. Burke, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney