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Home My WebLink About2021.0223.TCRET.Agenda.PacketNOTICE OF MEETING COUNCIL RETREAT FOUNTAIN HILLS TOWN COUNCIL Mayor Ginny Dickey Magazine FVice Mayor David S elich Councilmember Alan Ma Y p g Councilmember Gerry Friedel Councilmember Peggy McMahon �I Councilmember Sharron Grzybowski Councilmember Mike Scharnow TIME: 8:30 A.M. — COUNCIL RETREAT WHEN: TUESDAY, FEBRUARY 23, 2021 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. Public Comment is not taken during Council Retreats, but this meeting will be streamed on Channel 11 and also on the Town's website for the public's viewing. COUNCIL RETREAT AGENDA 1. Call to Order and Roll Call. 2. Overview of Town Council Retreat. 3. Update on Town Financials, Proposed FY 2021-22 Budget, and Capital Improvement Program. 4. 2020 CARES Act Funding and Recommended Use of Remaining Fund Balance. Town Council Retreat of February 23, 2021 2of2 5. Strategy Addressing Long -Term Pavement Management Program. 6. Economic Development Initiatives. 7. High Speed Internet Options and Alternatives. 8. Fountain Park Lake and Fountain Improvements Strategy. 10. Proposed Renovations and Other Improvements to the Community Center. 11. Community and Neighborhood Issues. 12. Update on New Residential and Commercial Developments. 13. Public Safety Update. 14. 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 day of 2021. Elizabeth A. Burke, MMC, 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 2. r 4VV Cft PRO7 Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Overview of Town Council Retreat. Staff Summary (Background) Each year the Town Council holds a Council Retreat to review the town's financials and provide policy direction to staff on a number of important issues. The Council Retreat is a one -day planning session that offers an outstanding opportunity for the Mayor and Council to review where the organization is and to help chart where it is going. Past Council Retreats have addressed a number of strategic issues such as the town's financial reserve policies, sustainable revenues, maintaining major town assets like streets, parks, and facilities, and expanding service levels in code enforcement and community relations. On February 23, 2021, the Town Council will meet to receive updates from department directors and provide direction on the following matters: • Financials and Operating/Capital Improvement Budgets • 2020 Cares Act Funding and Recommended Use of Remaining Fund Balance • Strategy Addressing Long -Term Pavement Management Program • Economic Development Initiatives • High Speed Internet Options/Alternatives • Fountain Park Lake and Fountain Improvements Strategy • Proposed Near Term and Long Term Community Center Improvements • Community and Neighborhood Issues - Short -Term Rentals, Noise Ordinance, Sober Living Homes, Proposed Detox Facility, Ordinance on Unfinished Construction, and Homelessness • Update on Public Safety - MCSO Audit and Consideration of Cost of Service Evaluations for Law Enforcement and Fire Services The department directors and I are looking forward to meeting with the Town Council. ITEM 3. r 4VV Cft PRO7 Meeting Date: 02/23/2021 Agenda Type: Council Discussion TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Update on Town Financials, Proposed FY 2021-22 Budget, and Capital Improvement Program. Staff Summary (Background) During the Council Retreat, Finance Director David Pock will provide a presentation to the Town Council on the finances of the town. The presentation will include year-to-date and future revenue and expenditure projections as well as preliminary proposed budget figures for FY 2021-22. The second half of the presentation will include a status report on the FY 2020-21 Capital Improvement Program projects from Public Works Director Justin Weldy. Mr. Weldy and Community Services Director Rachael Goodwin will also present proposed capital improvement projects for FY 2021-22 and for the next five years. Attachments FY 21 Financial Update FY 22 Financial Preview Capital Improvement Program TOWN OF FOUNTAIN HILLS FY2020=21 Financial Update Grady Miller, David Pock, February 23, Town Manager Finance Director 2021 1 WWW.FH.AZ.GOV OWN OF FOUNTAIN,HIL.. 4,46 a N%11- yk 4,:, -•4. :. i, g , -." S, . . •. . . . . . . . ------- ------- ... . . . . . . . . V7 rGener kt Z MOM A IV! WSAAISR K%'% *00 Now - Mill$. Alv fit ;m MR N. ALF- i ATt'. 7 —ww"raww WWW.FH.AZ.GOV • Sales Tax (TPT) • $6.27M Collected • $4.90M Budgeted • Largely due to Retail Sales, Construction, and Utilities/Comm. • Intergovernmental • $3.37M Collected • $3.42M Budgeted • Slightly reduced State Shared Sales and Income Taxes • Other • $700K Collected • $1.01 M Budgeted • Due to User Fees and Lic./Permits $7 $6 $5 o $4 5 $3 General Fund Revenues Six Months Ending December 31 TAXES INTERGOVERNMENTAL A 2019 W 2020 0 2021 OTHER Total = $10.34M 9bt�a�°°° WWW.FH.AZ.GOV • Overall General Fund • $8.15M Budgeted • $5.67M Expended • Public Safety • 4 months of contract invoices paid from CARES Act funding • FD includes $433K in vehicle charges • Community Services, Administration, Public Works and Development Services all within projected budgets • General Government • $300K used for small business grant program AIN �rL 0 'hat is palt' $2.5 ram $1.5 $0.0 General Fund Expenditures by Department Six Months Ending December 31 W 2019 UPI 2020 ■ 2021 Total = $5.67M WWW.FH.AZ.GOV INQ T!" :TOWN at is 'N"VP OF FOUNTAIN,H116". 5. 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AR" ATt'. 7 —ww"raww WWW.FH.AZ.GOV Total Sales Tax (TPT) for All Funds • $7.47M Collected • $5.94M Budgeted Construction • $1.24M Collected • 145% of budget -to -date Utilities/Communications • $912K Collected • 137% of budget -to -date Wholesale/Retail • $4.05M Collected • 136% of budget -to -date Real Estate • $442K Collected • 115% of budget -to -date Restaurant/Bars • $426K Collected • 87% of budget -to -date Services • $398K Collected • 70% of budget -to -date kO�1yT AIN 0 () z 1 c 11 e m 9,that is 0$ $1,600 $1,400 $1, 200 $1,000 M $800 0 t $600 $400 $200 TPT Collections by Fiscal Year & Period All Categories Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1 2 3 4 5 6 7 8 9 10 11 12 201F 2019 2020 — 2021 Accounts for 55% of budgeted revenue in General Fund WWW.FH.AZ.GOV State Shared Sales Tax • $1.39M Collected • $1.41 M Budgeted • $20K short of budget to date • $120K more than FY20 $300 $250 $50 State Shared Revenue - Sales Tax Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2 3 4 5 6 7 �2018 — 2019 'M Accounts for 14% of budgeted revenue in General Fund 9LIt�°9° WWW.FH.AZ.GOV State Shared Income Tax • $1.80M Collected • $1.81 M Budgeted • $1 OK short of budget to date • $180K more than FY20 $350 $325 $300 $275 � $250 0 $225 $200 State Shared Revenue - Income Tax Feb Mar Apr May Jun Accounts for 18% of budgeted revenue in General Fund WWW.FH.AZ.GOV State Shared VLT • $597K Collected • $583K Budgeted • $14K above budget to date • $62K more than FY20 • Revenues are split between General Fund (30%) and the Streets Fund (70%) $150 $125 $100 N $75 0 $50 $25 State Shared Revenue - Vehicle license Tax Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1 2 5 6 7 2020 8 9 10 11 12 Accounts for 2% of budgeted revenue in General Fund and 22% of budgeted revenue in Streets Fund 9LIt�°9° WWW.FH.AZ.GOV Highway User Revenue Fund • $849K Collected • $881 K Budgeted • $32K short of budget to date • $16K more than FY20 after removing one-time payment received in that fiscal year • All revenues are restricted to the Streets Fund $350 $300 $250 $200 N � $150 0 $100 $50 Highway User Revenue Fund (HURF) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1 2 3 4 2018 6i 2019 6 7 8 9 10 11 12 2020 2021 Accounts for 48% of budgeted revenue in Streets Fund 9bt�a�°°° WWW.FH.AZ.GOV All Other Revenues • Licenses & Permits • $562K Collected • $498K Budgeted • Leases & Rents • $128K Collected • $139K Budgeted • Fines & Forfeitures • $115K Collected • $ 93K Budgeted • Other • $122K Collected • $164K Budgeted • Charges for Services • $56K Collected • $111 K Budgeted $1,000 $800 $600 M o $400 H $200 $0 Other Revenues by Type Six Months Ending December 31 LICENSES & PERMITS I I j LEASES & RENTS Lf i ij FINES & OTHER FORFEITURES W 2018 W 2019 W 2020 W 2021 CHARGES FOR SERVICES Total = $983 K Accounts for 11 % of budgeted revenue in General Fund 9bt�a�°°° WWW.FH.AZ.GOV INQ T!" z. T TOWN f �vai�� •�'Q ' 3 '` y ° 4 k_•. �- iF � "'i. jt1l�a.�pva' • i .. A 1.�,. 1 �rnw KIM FOUNTAIN HII6: .g "n ,! • a r � ram, �; ytv +` t ' r� R , � 14 r ' � �',� � � a- Lei ,� ': ,, •'•' , �: €3.A ..`� `,•c{. t y be•� ,,?�>a. tw,7�yy.- -r �S�ir. i tt ��:f }`'. ,•;y ,V�r. Mill i, flu sk j`• °!: �'°s�'Va7t• hAli �=,t!33� JA Illl WWW.FH.AZ.GOV kO�1yT AIN 0 Restricted Funds (Externally restricted by statute or entity) 6/30/2020 12/31/2021 (actual) (actual) Streets Fund GO Debt Service Fund MPC Debt Service Fund Eagle Mountain CFD Debt Service Fund Cottonwood Maintenance District Fund Fire & EMS Development Fee Fund Streets Development Fee Fund Parks Development Fee Fund Total Restricted Fund Balance $1,426,673 1241219 11,537 26,312 211989 296,533 3,870 7971749 VJ08,882 $1,489,156 10,997 338,266 25,629 338,649 32,535 $3,263,202 6/30/2021 (estimated) $694, 305 ISM 11,486 24,282 350,044 158,920 11026,466 $2,445,477 9bt�a� WWW.FH.AZ.GOV Stabilization Fund (Rainy Day) Capital Projects Fund Downtown Strategy Fund Economic Development Fund Tourism Fund Public Art Fund Court Enhancement Fund Committed Funds (Imposed by Council action) 6/30/2020 (actual) $3, 086, 699 Total Committed Fund Balance kO�1yT AIN 0 9911495 103,546 831261 162,655 401,696 $%318J64 12/31 /2021 (actual) $3,296,434 5,376,566 7345127 54,476 193,815 112,127 413,810 $109181,355 6/30/2021 (estimated) $3,296,434 2,335,913 4661655 1101425 1321238 1321021 $6,862,298 9bt�a�°°° WWW.FH.AZ.GOV Assigned mounds (Imposed by Town policy) 6/30/2020 (actual) Environmental Fund Facilities Reserve Fund Technology Replacement Fund Vehicle Replacement Fund Total Assigned Fund Balance $5651456 1,610,915 C 848,513 $3,024,884 12/31/2021 (actual) $672,850 11439, 788 110,108 iCIE:�:�E:� $3,641,624 Unassigned Funds (Budgeted Operational Expenditures) 6/30/2020 12/31 /2021 (actual) (actual) Total Unassigne( Fund Balance $5,5289744 $7A719926 6/30/2021 (estimated) $446,609 11194,361 104,910 11366,753 $3,112,633 6/30/2021 (estimated) $8,973,351 9bt�a�°°° WWW.FH.AZ.GOV Restricted Committed Assigned Unassigned Total Fund Balance Summary All Funds 6/30/2020 12/31 /2021 (actual) (actual) $25708, 882 9,318,164 370241884 575281744 $2095809674 Stability Metrics $3,263,202 10,181, 355 3,641,624 7,471,926* $2495589107 6/30/2021 (estimated) $2,445,477 6, 862, 298 3,112, 633 8,973,351 * $2153935759 * Includes $2.91VI CARES Act funding As of 12/31 /2020 As of 12/31 /2021 5-Year General Fund Annual Average Revenues 15,4315220 $17,482,916 Unassigned Balance As % of Average Revenues 9.1 % 26.2%** AIN�I Unassigned Balance As # of Months of Average Revenue 1.1 3.1 ** o lzN l ** Excludes $2.91VI CARES Act funding 9bt�a�°°° WWW.FH.AZ.GOV INQ T 11 i� J :TOWN i�11 fir, � ti a life A� �� i1�{�ir►v:3:v Ji:'• ;' . f �vai�� •�'Q ' 3 '` y ° 4 kr �- iF � "'iP jt1l�a.�pva' P i .. 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WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS FY 2021 =22 Financial Preview Grady Miller, David Pock, February 23, ko��T AIN y� l� l 0 1 0 that is Nllt' Town Manager Financ( 2021 r -MA WWW.FH.AZ.GOV Assumptions • Existing level of service maintained throughout all departments • Slight increase in Transaction Privilege (Sales) Tax, including a modest occupancy rate expectation at the recently expanded Adero Scottsdale • Slight decrease in State Shared Income Tax and Sales Tax • Development Services revenue includes continued activity in Adero Canyon and Keystone y y • Estimated annual inflation of 2.5% included in future years • 3.0% Rural Metro increase (per contract) • 10% MCSO increase included (estimate only) • Supplemental requests are not included 9bt�a�°°° WWW.FH.AZ.GOV Economic Conditir • Eectation that economy will continue to recover throughout thEx calendar year • Statewide unemployment numbers continue to improve; however, hospitalitysector remains the hardest hit • No indication from the Federal Reserve that interest rates will increase throughout the fiscal year • Additional pandemic relief packa e, which could include aid to state and local governments, sill being discussed b Congress g g y g • Uncertainty around possible changes to income tax structure at both Federal and State levels 9bt�a�°°° WWW.FH.AZ.GOV FY22 Transaction Privilege Tax (All ids) • Based on 10-year trend analysis of Construction $11808,326 $11958,511 taxable activity Trans/Uti I/Comm 11417,809 1/431/483 • Town rate of 2.9% / Exceptions: wholesale Retail 61349,785 61700,853 853 • • Res. Restaurant Bar 1 042 366 1 101 604 Rental / > 1.6% Real Estate 813,628 835 082 • Bed Tax > 4.0% Services 1/201/295 11309,177 Total $12,p633,0209 $13,r336,p7lO WWW.FH.AZ.GOV FY22 General Fund Revenue Forecast kO'1�1VAIN 0 Loca I Taxes State Shared Revenue Permits, Licenses, Fees Building Revenue Total $1018571100 6, 8241700 1,167, 700 841,600 $19,691,100 $1114121700 6, 534, 200 934,600 822.1400 $19,703,900 9bt�a�°°° WWW.FH.AZ.GOV FY22 General Fund Expenditure Forecast /V AIN Ifj` 0 Town Council General Government Administration Municipal Court Public Works Development Services Community Services Public Safety (Police &Fire) Total $74,900 2,4541900 2,3391700 4021600 1,120.1900 9461500 21#942, 000 91226,800 $19,508,300 $74,900 2.1425,100 2.1275,800 3811400 1.1155,900 1.1008,500 2, 900, 300 9,3411100 $19, 563,000 9bt�a�°°° WWW.FH.AZ.GOV Personnel o�1yT AIN Flj�r 0 120 110 108 100 90 80 70 60 50 40 FY01 115 106 Number of Full -Time Equivalent Employees 87 88 87 77 77 82 80 i FY05 FY10 61 61 62 58 57 56 56 51 52 52 54 FY15 FY21 9bt�a�°°° WWW.FH.AZ.GOV Financial Forecast General Fund Revenues and Expenditures $30 Fiscal Years 2021 through 2027 (in millions) $25 $20 V) Mr $15 $10 $5 w��Al�rtt FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 FY26-27 Revenues Expenditures e O e 91.11 1har 1s INVYWQ WWW.FH.AZ.GOV Financial Headwinds • Uncertainty of continued pandemic effects on revenue collections • Possible changes to Federal and State income tax policy • Other Arizona communities are growing at a faster pace, which results in smaller proportionate share of State Shared revenues • Fewer development opportunities throughout the Town • Cost of maintaining Town infrastructure, including streets and buildings, continue to increase • Public opinion surrounding bond financing of infrastructure projects 9bt�a�°°° WWW.FH.AZ.GOV Financial TF"Iwinds • Relatively stable Transaction Privilege Tax (TPT) base • Ability to collect TPT from online purchases delivered to residents of the Town • Increased number of hotel rooms and short-term vacation rentals • Implementation of new user fee schedule will help offset costs of providing those services that benefit the individual or group • Conservative approach to revenue projections and continuous oversight of expenditures has led to budget savings at the end of each fiscal year 9bt�a�°°° WWW.FH.AZ.GOV INQ T 11 i� J :TOWN i�11 fir, � ti a life A� �� i1�{�ir►v:3:v Ji:'• ;' . f �vai�� •�'Q ' 3 '` y ° 4 kr �- iF � "'iP jt1l�a.�pva' P i .. A f�'� 1�r� s k1 �"A s S .�• „ 1' i -�i 1 ��'. R i •'� \S T� R r �j�'jj4,g.�+f 3�� r; a i •f :ter. �, a. r �i- t F i�y,R .. OF FOUNTAIN.,HI �R;.' •sir) -,,, r% k� 1 ' 1 i4 "vwx ..� v a'4 a '� a 4 : '�_ ' ... 3. ,k Vx t `. � ��` •�'�''+ ',7; A, 41 y-.iisx7:i •fy '•c{s • t.�? �• ,ape fit- •• • L w,r7rq '� : '� •.�}�t�'•y 5'V ,. ��►C'\ .L� r r' ° i ! /:. >7 ;a � �� "; '`:ezf;?'P':� •:� #.y ♦ dd I � Aa: {�\s,•'�Wr ��.. ♦.. 4a ., .�. � fdf4'f��It�I�' # Jim^a� �R �I�'�9_��y,y t i _rr1L'411 na. TQuest kO J�yT AIN �I�t� 0 •A at is lx"vp YJ tall y � ♦. � µ Ap � Ali i ..�•S!�`� S\d.144i6 .rf/�.• } �`1� ��Tw •.a C+%t �' a � ^ � �_; 1 ( yy ��r 4.il *'11i� Wis®v'n." i 's � �• w fir•. _ N 1M J p A . WWW.FH.AZ.GOV Update on Capital Improvement Program Justin T. Weldy, Public Works Director Rachael Goodwin, Community Services Director February 23, 2021 Capital Improvement Program Today's presentation will cover the following: • Completed FY2020-2021 Capital Projects • Progress on remaining FY 2020-2021 Capital Projects • Review proposed Capital Projects within a 5 year planning horizon Capital Improvement Program Completed Projects • Ave. of the Fountains/La Montana Roundabout • AOTF and Verde River Intersection Improvements • Fountain Lighting Replacement • Fountain Hills Blvd. Shoulder Paving Phase II • Shea Blvd. Widening Design Concept Report • HVAC Controllers for Community Center, Library, and Town Hall Capital Improvement Program Update on remaining FY 2020-2021 Capital Improvement Projects D6047 — Miscellaneous Drainage Improvements Project Cost: $50,000 CIP t •f .mac- _ � Sim yy -- :,py.y f 4��ir ^_ ��iT .. -�' i•' .Y� �} i �']�+- err C•K � �}'+�� c ,� 44 .Fl`._ . ikjti.= .k - D6057 —Golden Eagle Impoundment Area Improvements $500,000 Hvmeiown 51 u ate.$;;- t. AYE f!� i ` 1' •,� �. �. 1 'Parkview is House do °,�'"•� f' .� p r yam ' tit • A ''.O t }- w Phil's Fillin a�.n�'. A 4. - - �i $ meri aq I ute ntailii�ad *� ahlnte�r n A sign y _! o-+ e Ca k 9'ian.1 �.a _ �• S�f •34''¢�Lr re .i SbFRIT7� 'All ports Grill -b �y+lForintai .I g. .. �f ArtistG�allery--� Foumain Park /�I!'� • 2 World's Famous Fountain InteJl & Su Maln View ' tIlk a et •y uro'Piiza Cafe E. - o ntain�Hills Lake F y a 'rr -OdIc, ing�001� s / y' inaltaiiana aferan'a Memorial r v' Rosat i's,Pizza ti... �* .�- _ i� .�-�q _EFILay e. emu" .•Y_'J �� ±L'alie'1, Res .. v�► �`; ` D6059 — Pollina Brantley Dr Detention Basin $1001000 CIP F4036 — Fire Alarm Control Panel Replacement $80,000 CIP .vwN _ miiiiiuifiiu�i�uiuu�uii�uiummi,ui,umuummiiu„�h,m,u,uu � P3033 — Video Surveillance Cameras - "_-., •'-"-¢._.- �. �. _ ^- -- �- - - .r '.r - •� ...- fir_ -�ti-..-,.-„Cif'.. ` V - `��R � �-. �� ~ �i } � . '�'��j`"'1� �"^�� L �r� • •fir• .� _ P3045 — Four Peaks Park Playground Parking lot $65,000 CIP S6003 Alley Paving Phase V $308,000 CIP �a 0 ALLEcn m i _ 4� z z �o Q GLENBRpOK BLV o D C S6061 —Sidewalk Infill Program $2001000 CIP S6064 — Desert Vista Park Crosswalk Sidewalk Program $100,000 CIP 77 T ,/, Ilk o� Jti y r SKATE PARK CROSSWALK 6kl, PROPOSED SIDEWALKf, ,�=' ems\ . i '' � � r.• ,oik:. P DESERT VISTA PARK Qe � LO ,`P T5005 — Palisades Blvd, Eagle Ridge Dr/Palomino Blvd Traffic Signal $491000 CIP FY20/21 Capital Projects Total for remaining projects $3,1852,1058 Wayfinding Signs Proposed new signs design Existing signs I IV Wayfinding Signs • 25 the 33 original signs installed remain in place • Signs are constructed of wood/steel and are over 20 years old • Staff seeks Council direction on disposition of current signs • Town has new sign design from study two years ago • Council direction needed on including wayfinding signs in CIP • Staff will further research costs and include proposed a proposed project in CIP Proposed FY 2021m2022 Capital Improvement Projects D6047 — Miscellaneous Drainage Improvements $501000 CI P . �rk '�+�_.��ti✓fir- _� � •� - '`��.' � '•`••-vary �� _ }.. .}a.. L.' � �y.- _y y .'4v�:. D6057 —Golden Eagle Impoundment Area Improvements $900,000 CIP D6058 — Phase II Panorama Drive Storm Drain Improvements $ 801000 CIP 0 Illifillelim D6060 —Town wide stormwater Infrastructure Rehabilitation $100,000 ENV/CIP J S6064 — Desert Vista Park Crosswalk Sidewalk Program $200,000 CIP <<Fy DESERT VISTA PARK 4�7 SKATE aQ �o PARK �o Z CROSSWALK PROPOSED oFR ' SIDEWALK fix.. 71, ,�- �; D6068 —Town wide Guardrail replacement $50,000 CIP F4037— Community Center Improvements $550,000 Cl P F4038 Community Garden Driveway Relocation $1751000 CIP '8❑� ❑��BB�J meow wsu�xv Proposed new $- Driveway - location Existing Driveway to be removed / 00Q0� / H F4039 Park Place Town Hall shared Parkina Driveway v access $90,000 CIP P3033 —Video Surveillance Cameras $751000 CIP P3035 — Four Peaks Park Upgrades $2001000 CIP k. r P3040 —Splash Pad Renovation $860,000 CIP rIA P3047 —Avenue Linear Park event receptacles and paver rehabilitation $1001000 CIP P3048 — Fountain Park Playground Replacement $360,000 CIP T - T f •- PAVL-ATI�A7V" ESTATTwf"S w r Y 4 r � Llot.. dew FE lip L A' L N1 A �► .++ M A� k: i r i rt r C' 1�� r _O � ..iwww�rt.!vu Ic T5005 — Palisades Blvd, Eagle Ridge Dr/Palomino Blvd Traffic Signal $50,000 CI P FY21/22 Capital Projects Funding Needed $4,,432,,571 Future Capital Improvement Projects Beyond FY 2022-23 FY 2022-23 Future Capital Projects • D6047 — Miscellaneous Drainage Improvements (ongoing multi- year) $50,,000 CIP • D6057 — Golden Eagle Impoundment Area Improvements (Ongoing multi -year) $574,,000 CIP • D6058 — Phase II Panorama Drive Storm Drain Improvements (Ongoing multi -year) $850,000 CIP FY 2022-23 Future Capital Projects • D6060 —Town wide stormwater Infrastructure Rehabilitation (ongoing multiyear) $150,,000 ENV/CIP • F4037 — Community Center Improvements (ongoing multiyear) $150.9000 CIP • P3032 —Sport Field Lighting $883,000 Unfunded • P3033 — Video Surveillance Cameras (ongoing multiyear) $75,?000 CIP FY 2022-23 Future Capital Projects •P3035 Four Peaks Park Playground Upgrades $100,000 CIP • P3041 Sun ridge Park $200,000 Development Fees • T5005 Palisades Boulevard & Eagle Ridge/Palomino Drives Traffic Signal $850,,000 FY22/23 Capital Projects Funding Needed $3,,882,,000 FY 2023m24 Future Capital Projects • D6047 — Miscellaneous Drainage Improvements (ongoing multi -year) $50,,000 CIP • D6060 — Town wide stormwater Infrastructure Rehabilitation $150,000 ENVAD/CIP • F4037 — Community Center Improvements $150,000 • P3032 — Sport Field Lighting $850,000 Unfunded • P3033 — Video Surveillance Cameras (ongoing multiyear) $75,000 CIP FY 2023-24 Future Capital Projects •P3035 Four Peaks Park Playground Upgrades $100,Y000 CIP • P 3 0 4 1 S u n r i d g e Park $500,,000 Development Fees •56068-Guardrail replacement Town wide $800,000 Grant/CIP FY23/24 Capital Projects Funding Needed $2,,675,,000 FY 2024-25 Future Capital Projects • D6047 — Miscellaneous Drainage Improvements (ongoing multi -year) $50,,000 CIP • D6060 — Town wide stormwater Infrastructure Rehabilitation $150,,000 ENV/CIP • F4037 — Community Center Improvements $490,,000 • P3033 — Video Surveillance Cameras (ongoing multiyear) $75,000 CIP FY 2024-25 Future Capital Projects • S6068-Guardrail replacement Town wide $100,,000 Grant/CIP • D6060 — Town wide stormwater Infrastructure Rehabilitation $150,,000 (ongoing multi -year) ENV/CIP FY24/25 Capital Projects Funding Needed $1,,015,,000 FY 2025-26 Future Capital Projects • D6047 — Miscellaneous Drainage Improvements (ongoing multi -year) $50,000 CIP • D6060 — Town wide stormwater Infrastructure Rehabilitation $150,000 ENV/CIP • F4037 — Community Center Improvements $150,000 FY25/26 Capital Projects Funding Needed $350,000 FY 2026m27 Future Capital Projects • D6047 —Miscellaneous Drainage Improvements (ongoing multi -year) $50,000 CIP • D6060 — Town wide stormwater Infrastructure Rehabilitation $150,000 ENV/CIP FY26/27 Capital Projects Funding Needed $200,000 ITEM 4. Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): 2020 CARES Act Funding and Recommended Use of Remaining Fund Balance. Staff Summary (Background) Last March Congress passed the 2020 CARES Act in response to the COVID-19 pandemic. The 2020 CARES Act appropriated $2.2 trillion to help bolster the economy and earmarked $340 billion to states and local governments. Arizona's allocation from the CARES Act consisted of $4 billion which was to cover state agency expenses tied to the pandemic and a portion for local governments. Under direction from Governor Ducey's Office and the League of Arizona Cities and Towns, municipalities were instructed to expend the funding on public safety costs. After expending the funds on public safety costs, municipalities could determine how to best utilize freed up budget resources on pandemic -related costs and other municipal needs. Last July the Town of Fountain Hills received $2.89 million in CARES Act funding from the State of Arizona. After expending the $2.89 million on public safety costs, an additional $2.89 million became available for use by the town on pandemic -related costs and other town needs. The town expended $300,000 for a small business assistance grant program to help out local businesses and $100,000 on pandemic -related expenses. Based on concerns about potential lost revenues due to the pandemic, the finance director and I were extremely cautious in expending the funds to ensure that they were available to stabilize any loss of revenues. Fortunately, the town's operating revenues have been minimally impacted by the pandemic. As a result, there is a remaining balance of $2.5 million. Staff recommends utilizing the remaining funds as one time expenditures as follows: • $2 million for the Streets Fund; and • $500,000 for the Facilities Reserve Staff believes that directing these funds to these areas will have a lasting impact and benefit the most residents. The Streets Fund is the source of funding for the annual street maintenance and reconstruction projects and is underfunded by about $3 million annually. The Facilities Reserve funds major capital replacement items in the Community Center, Library and Museum Building, Town Hall, and parks. Attachments 2020 CARES Act TOWN OF FOUNTAIN HILLS 2020 CARES Act Update Grady Miller, David Pock, February 23, Town Manager Finance Director 2021 1 . . . . . . . . . . k- . . . . . . . . . . N,0:1r!v 71w, 46 WWW.FH.AZ.GOV Background • Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020 • $2.2 trillion dollar stimulus bill that included: • Assistance to medical and hospital industries • Direct payments to individuals • Increased unemployment benefits • Forgivable loans to small businesses through the Paycheck Protection Program (PPP) • Loans to Corporations • State & local government assistance 9bt�a�°°° WWW.FH.AZ.GOV Distributions in Arizona • $4 billion allocated to Arizona by CARES Act • Direct distributions to the State, Maricopa County, Pima County, City of Mesa, City of Phoenix, and City of Tucson • State distributed $440.7M to counties, cities, and towns that did not receive direct distributions • Town received $2,893,126 on July 5, 2020 9bt�a�°°° WWW.FH.AZ.GOV Town of Fountain I ON-11 • Grant agreement between the State and all grantees required that entire allocation be spent on public safety expenditures • $2,893,126 received by the Town was used for: 0 4 monthly invoices for Rural Metro = $1.28M 0 3.9 monthly invoices for MCSO = $1.61 M • These expenses would have normally been paid from the General Fund 9bt�a�°°° WWW.FH.AZ.GOV General Fund • When funds were received in July, it was still uncertain how the pandemic would affect Town revenue collections • Town planned to utilize funds to stabilize anticipated revenue loss • Council approved $300K in local business grants • Approximately $100K used for sanitizing services and supplies, and to install safety equipment in Town facilities • Remainder was left unallocated to offset any revenue shortfalls 9bt�a�°°° WWW.FH.AZ.GOV Recommended Uses • It is recommended that General Fund savings only be used for one-time expenditures and not for on- going expenditures • Since projected revenues are meeting overall budget expectations, staff recommends utilizing the balance of CARES Act funding as follows: o $2.OM to Streets Fund for Pavement Maint. o $500K to Facilities Reserve Fund 9bt�a�°°° WWW.FH.AZ.GOV INQ T 11 i� J :TOWN i�11 fir, � ti a life A� �� i1�{�ir►v:3:v Ji:'• ;' . f �vai�� •�'Q ' 3 '` y ° 4 kr �- iF � "'iP jt1l�a.�pva' P i .. A f�'� 1�r� s k1 �"A s S .�• „ 1' i -�i 1 ��'. R i •'� \S T� R r �j�'jj4,g.�+f 3�� r; a i •f :ter. �, a. r �i- t F i�y,R .. OF FOUNTAIN.,HI �R;.' •sir) -,,, r% k� 1 ' 1 i4 "vwx ..� v a'4 a '� a 4 : '�_ ' ... 3. ,k Vx t `. � ��` •�'�''+ ',7; A, 41 y-.iisx7:i •fy '•c{s • t.�? �• ,ape fit- •• • L w,r7rq '� : '� •.�}�t�'•y 5'V ,. ��►C'\ .L� r r' ° i ! /:. >7 ;a � �� "; '`:ezf;?'P':� •:� #.y ♦ dd I � Aa: {�\s,•'�Wr ��.. ♦.. 4a ., .�. � fdf4'f��It�I�' # Jim^a� �R �I�'�9_��y,y t i _rr1L'411 na. TQuest kO J�yT AIN �I�t� 0 •A at is lx"vp YJ tall y � ♦. � µ Ap � Ali i ..�•S!�`� S\d.144i6 .rf/�.• } �`1� ��Tw •.a C+%t �' a � ^ � �_; 1 ( yy ��r 4.il *'11i� Wis®v'n." i 's � �• w fir•. _ N 1M J p A . WWW.FH.AZ.GOV ITEM 5. Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language) Strategy Addressing Long -Term Pavement Management Program. Staff Summary (Background) After conducting an assessment of town street conditions in 2017, the firm IMS helped staff develop a pavement management plan based on the condition of streets and emphasizing a high priority on maintaining a higher level of standards for arterial and collector streets. This was a major change from the previous zone approach which focused on street projects by geographic zones. Unfortunately, as part of the assessment of town streets, IMS identified a funding shortfall of $3 million annually or $30 million over the next ten years to maintain streets at a good, acceptable level and minimizing a backlog of street repairs. Last June the Town Council approved the 10-Year Pavement Management Program and directed staff to come back to the Town Council at a later date with funding options. At the Council Retreat on February 23, Public Works Director Justin Weldy, Finance Director David Pock, and Town Manager Grady Miller will provide background information on this matter and seek direction from the Town Council on staff recommendations regarding financing and citizen involvement process. Attachments Long -Term Pavement Mgmt. Prog. TOWN OF FOUNTAIN HILLS Strategy Addressing Long -Ter Pavement Management Program Grady Miller, Town Manager Justin Weldy, Public Works Director WWW.FH.AZ.GOV Pavement Management Program Background • Town consists of 390 lane miles of paved streets • Asset value of streets is approximately $216 million • Town expends $2.5 million annually on streets maintenance activities • Town allocates revenue from Gas Tax, Vehicle License Tax, and TPT (State Shared Revenue) to Streets Fund • Gas Tax ($1.7 million), hasn't increased in over 30 years and revenues will likely decline in the future due to other cities growing, electric vehicles, hybrids, and fuel efficient vehicles • While remaining stable, these revenue sources have declined relative to street maintenance costs and needs Evaluation of Town Street Conditions • Due to staff concerns about current revenue sources maintaining the street system, the town had an evaluation/rating of the street conditions, overall asset value, and cost of maintaining the town street system • In 2017 IMS evaluated all segments of arterials, collector streets, and neighborhood streets in Fountain Hills • Based on the IMS evaluation of streets, the street ratings were as follows: • Arterials • Collector Streets • Neighborhood Streets 72 PCI "B" Grade 62 PCI "C" Grade 60 PCI "C" Grade Evaluation of Town Street Conditions • In June of 2020 the Town Council provided direction on the desired level of service for streets as follows: • Arterials 60-70 PCI • Collector Streets 50-60 PCI • Neighborhood Streets 50-55 PCI "B" Grade or Better "C" Grade or Better "C-" Grade or Better • IMS developed a pavement management system based on these ratings • Last June the Town Council approved a Ten Year Pavement Management Program and directed staff to return later to address funding options • Based on maintaining streets at a desired level of service, IMS recommends expending $3 million more annually in order to maintain streets in good condition and to prevent major backlog and street failures Conclusion • Town will not have additional $30 million in operating revenues to expend on maintaining streets over the next 10 years and beyond • Without additional funding, streets will cost more to maintain and the town will fall further behind resulting in more costly street failures and repairs • It is common for municipalities to finance capital improvements such as buildings, streets, parks, and other assets through the issuance of bonds • Such financing is tax-exempt and has very low interest rates • Bonds would be paid from secondary property tax • Town of Fountain Hills currently has no debt Pavement Management Program Strategy • Due to the $30 million in additional funding required to maintain town streets, it will be necessary to use financing to fill the gap • Staff recommends Council appointing residents to a citizen committee • Citizen committee will meet with staff and pavement management firm to review pavement management needs and costs for Fountain Hills • After reviewing needs and costs, citizen committee will issue priorities and recommendations including possible financing options to Town Council • Town Council will review committee findings/recommendations and consider referring streets bond question to voters in November 2022 Pavement Management Committee Timeline Key Activities • Council appoints members to Citizen Committee • Citizen Committee begins to meet • Citizen Committee concludes process • Committee presents recommendations to Council • Council reviews findings and recommendations • Council considers referring bond question to voters • Publicity pamphlet mailed to all registered voters • Public meetings and open houses held • Election (early balloting begins in October) • Deadline to canvass election results Target Date - September 2021 September 2021 March 2022 March/April 2022 April 2022 June 2022 September 2022 September -October 2022 November 8, 2022 November 28, 2022 TOWN OF FOUNTAIN HILLS Questions kO�lyT AIN 0 'A that is XIMP WWW.FH.AZ.GOV ITEM 6. r 4VV Cft PRO7 Meeting Date: 02/23/2021 Agenda Type: Council Discussion TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Economic Development Initiatives. Staff Summary (Background) Economic Development Director James Smith will give a presentation to the Town Council on economic development initiatives undertaken by the department. This will include updates on The BizHub, business attraction and retention efforts, a proposed facade program, and other related strategies. Attachments Economic Development Initiatives TOWN OF FOUNTAIN HILLS Economic Development Initiatives James Smith Economic Development D i recto WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Rebrand'ing of the Former EVIT Facility to The BIZ HUB at Fountain Hills WWW.FH.AZ.GOV Partnership EVIT Fountain Hills opened in Summer/Fall 2017 The Agreement with FHUSD allowed EVIT to: • Provide career training at the site • Execute leases with business users at the facility • EVIT was also responsible for maintenance • Operate co -working space (did not materialize) EVIT originally had 24 students primarily studying nursing, video production and film, and photography WWW.FH.AZ.GOV Rebrand to The BIZ HUB In November 2020, FHUSD voted to terminate lease with EVIT • EVIT vacated by Dec. 31, 2020 • EVIT hadn't reached the student counts that had been anticipated FHUSD decided to continue the three existing leases — FTS, Hob Nob Catering and Bob's Bikes • The Elliott Group will begin operations on March 1 FHUSD is looking to provide career training at the facility Catering vvvvVV. rn.Af—UUv I brand to The Bl' FHUSD, the Town and AZ Business Advisors will partnership to market and promote the facility as business location work in It will also be marketed for community activities, utilizing the cafeteria/gym, etc. There are plans to allow co -working at the facility, pending compliance with COVID protocols BIZ Hub Af fountain hills %Z' WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Facade Programs - Potential for Fountain Hills WWW.FH.AZ.GOV WHAT ' A FACADE PROGRAM? • An incentive plan created to encourage property owners and businesses to improve the exterior appearance of their buildings and storefronts • Focused on either commercial or residential properties in historic or non -historic areas and provides financial incentives such as grants or loans (often matching), tax waivers/reductions, fee waivers, and design assistance. kO'1�1'VAIN 0 9bt�a�°°° WWW.FH.AZ.GOV kO�lyT AIN �,��m 0 T 16.vt is BENEFITS OF A FACADE PROGRAM • Participants are often motivated to make additional improvements to their buildings (interiors) or business offerings • Owners/tenants of properties and businesses in surrounding areas are often motivated or compelled to make improvements OO 111 AIL - INCREASED SALES T W� MORE INTENSE AND ACTIVE USES ADDITIONAL BUSINESSES SHOPPERS WWW.FH.AZ.GOV FUNDING SOURCE • Federal/state grants for community and economic development, housing, and downtown revitalization • Municipal revenues (can be grant or loan program) • Often a municipality commits "seed funding", then application fees and interest income keep funding available kO�1yT AIN 0 9bt�a�°°° WWW.FH.AZ.GOV LOCAL EXAMPLES mesa az • Grant program (funded primarily by CDBG funds) - $50,000 max • Short-term, focused on Downtown area • Primarily fagade improvements, historic preservation • Generally allowed: Improvements to street -facing exteriors • National franchises, churches, schools, government and residential buildings not eligible • Owner must construction �"V AIN art 0 ()� z 1� c 11 e contribute at least 15% to phase r 1 Tempe • Citywide program, but grants only in Apache Boulevard Area • Area is eligible for CDBG funding • Can receive up to $50,000 per storefront or $100,000 per retail center for improvements, assuming they have spent an equal or greater amount • In other parts of the City, the incentive is primarily expedited reviews, waiver of development fees • Generally allows: Fagade improvements, but also includes ADA access, installation of outdoor dining areas, signage, etc. • National franchises are not eligible 9bt�a�°°° WWW.FH.AZ.GOV LOCAL EXAMPLES TOWN OF QUEEN CREEK A R I Z 0 N A • Grant program • Reimburses up to $20,000 of pre -approved expenditures • Improvements to street -facing exteriors of commercial buildings • Applicant must be owner or a tenant with approval to participate • Generally allows: fagades, landscaping, addition of outdoor/patio space and may include signage and parking lot improvements CHANDLER 0"oa r I z o n a • Had fagade grant program from 2001 to 2009. Typical budget $450,000 per year • New program still allows some types of fagade improvements but focus changed to redevelopment or Adaptive Reuse of commercial sites • Covers demolition costs in order to introduce new development • Generally the Northeast portion of the City • Area surrounding Downtown, but does not include the Historic Square • Now focused on bringing new uses to commercial areas (schools, multi -family housing, etc.) 9bt�a�°°° WWW.FH.AZ.GOV IMPLEMENTATION Key issues that need to be determined FUNDING SOURCE (and maximum/minimum funding per project) ELIGIBLE AREAS OF TOWN ELIGIBILITY CRITERIA (Age of building, owner/tenant, types of work, types of uses, demolition/redevelopment, etc.) WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Business Attraction and Recruitment Strategy WWW.FH.AZ.GOV r SITE SELECTION FACTORS • Workforce/Population Utility Services • Electric, Gas, Water/Wastewater, • Transportation Access Telecommunications • Freeways, Airports, Rail • Education • Available Real Estate/ K-12, Colleges/ Land Sites Universities • Community Amenities WWW.FH.AZ.GOV ECONOMIC DEVELOPMENT PARTNERSHIPS ARIZONA Greater Phoenix A R I Economic Council �+�+ FOR i�CONOMN A 5I�CDEVELOPMENT ON COMMERCE AUTHORITY MARICOPA z4vc ASSOCIATION of GOVERNMENTS �r 0 R that is 10$ FOUNTAIN HILLS chamber of commerce CAc;C Canada Arizona Business Council AMERICANS SBDC. ArizoHaRusiflessAdvisors Maricopa Small Business Development Center Real Estate Brokerage Community WWW.FH.AZ.GOV PEC PART'" R S • Cost-effective means of recruitment • Staff, travel, marketing costs significantly reduced • Access to GPEC's leads • California strategy is Site selector presentations Greater Phoenix Economic Council kO�lyT AIN �lttm 0 ()� z 1� c 11 e •9��that isAlr$$O WWW.FH.AZ.GOV kO�lyT AIN �,��m 0 m that is xv "m9 TARGETED EMPLOYMENT INDUSTRIES 0 HEALTHCARE PROFESSIONAL SERVICES & TECHNOLOGY nO FINANCE & INSURANCE HIGHER EDUCATION WWW.FH.AZ.GOV kO�1yT AIN m 0 TARGP'ED RETAII "1FFORTS • Sectors with significant leakage • Entertainment/Recreation Users • Users attractive to younger families and professionals • Reuse of retail space (medical, education, office) 9bt�a�°°° WWW.FH.AZ.GOV MARKETING/BRANDING INITIATIVES • Focus on attracting working families/ professionals • Social Media Campaign • Support BIZ HUB at FH • Incubator/Co-working space an attraction and expansion asset kO�lyT AIN �,��m 0 T that is 10$ WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV ITEM 7. r 4vv Cft PRO7 Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): High Speed Internet Options and Alternatives. Staff Summary (Background) In a relatively short period of time, broadband service has become a necessity to the quality of life for residents. During the pandemic a number of residents experienced service disruptions or complained about not receiving the high speed internet service that they expected from Cox Communications, the primary internet service provider in Fountain Hills. While these isolated incidents were corrected by Cox and the company has continued to make scheduled upgrades in Fountain Hills and Valley wide to its broadband system, several residents have reached out to the Mayor and Council asking about other high speed internet options in Fountain Hills. The town manager will give a brief presentation on current internet service provider alternatives available as well as other internet options that will become available to the community in the near future. It should be noted that members of the Strategic Planning Advisory Commission have identified broadband services as a high priority for Fountain Hills to attract businesses as well as for residents who work out of their homes. Consequently, the Strategic Planning Advisory Commission will likely include this as an objective in the updated Strategic Plan in the very near future. Attachments High Speed Internet TOWN OF FOUNTAIN HILLS High Speed Internet Opt'10 and Alternat'ivm,!- Grady Miller, Town Manager WWW.FH.AZ.GOV Background • Cox Communications is only company in FH with a wired high speed Internet service available to all homes and businesses • Service consists of hybrid coaxial and fiber optic system in all Valley cities • Speeds range from 10 Megabytes per second to 1 Gigabit per second • Prices vary based on factors such as speed, bundling, and contracts • Fountain Hills receives cable license agreement fee and sales tax in exchange for allowing the company access to town streets • Company is undergoing significant investment in upgrading system throughout FH and Valley due to pandemic -related demands Background • The Mayor and Council have received numerous complaints about Cox over past 12 months relating to outages, Internet speeds, and other service issues • In each of the complaints received by the town, Cox has been able to resolve the service complaints Other Internet Provider Options • Currently, Centurylink offers high speed Internet service of 6 megabytes per second for residential customers at $45 per month • HughesNet offers high speed Internet from a satellite dish at speeds of up to 25 megabytes per second at a cost of $60-150 per month with data caps ranging from 10 gigabytes to 50 gigabytes per month Near Term Wireless Offerings from Verizon and T-Mobile • Due to investments in 5G technologies and small cell wireless towers, T-Mobile and Verizon have begun offering high speed Internet to compete with cable companies and regional telephone companies • Both services are not yet available in Phoenix metro area Verizon and T=Mobile Internet Offerings VERIZON 5G INTERNET • Whole house solution • A receiver/router • Speeds up to 300 Mb/sec. • Cost ranges from $50-70 per mo. ($20 discount for wireless customers) T-MOBILE 5G INTERNET • Whole house solution • Gateway (receiver/router) • Speeds from 25 to 200 Mb/sec. • $50 per mo. Longer term Satellite -Based High Speed Internet Services StarLink Service (SpaceX initiative) • Elon Musk, CEO of Tesla, has proposed Starl-ink Internet Service • Starl-ink is based on launching 12,000-42,000 satellites in space • Customers would need to expend approx. $500 on 23" home satellite receiver and other equipment, plus labor • Estimated monthly cost is $99 with speeds up to 150 Mb/s • While beta testing is underway, unclear when service will begin Longer term Satellite -Based High Speed Internet Services Project Kuiper (Amazon initiative) • Amazon plans to invest $10 billion in satellite Internet system • Project Kuiper is based on launching 3,200 satellites in space • It is unknown what customers will need to pay for 12" home antenna • Estimated monthly cost is $80 with speeds up to 400 Mb/s • While beta testing is underway, available until 578 satellites are will happen service will not become launched - unclear when this TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV ITEM 8. r 4vv Cft PRO7 Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language). Fountain Park Lake and Fountain Improvements Strategy. Staff Summary (Background) Several years prior to the fountain in Fountain Park turning fifty years old last December, staff had identified the need to begin planning on the replacement or major repairs to the lake liner, pump system, irrigation system, and electrical system. Last year the engineering firm of Black and Veatch was brought on to assist with this effort. The firm had previously helped the town plan and engineer the replacement of the liner and the logistics of removing the water from the lake. Black and Veatch presented its findings and conclusions from its assessment of the fountain and supporting systems at a Council workshop last October. The major finding from Black and Veatch is that the lake liner, the most costly component needing total replacement, has more years of useful life remaining. This provides additional time to plan for the overall fountain and lake improvements, sequencing of projects, and logistics for the lake liner replacement. Community Services Director Rachael Goodwin will present an overview of the project and her recommendations in developing a strategy to address these major improvements. Black and Veatch will also be returning to a Council workshop later this spring to go into further detail on repair/replacement costs and options for the Town Council to consider in finalizing a strategy in undertaking the project. Attachments Fountain Park Assessment TOWN OF FOUNTAIN HILLS Fountain Park Assessment and Fund Rachael Goodwin, ing Community Services �f ko��T AIN y� l� l 0 1 0 'hat is ACltia9 1 t Director k"MMMPWW WWW.FH.AZ.GOV Fountain Systems: Current Status In the summer of 2020, Black & Veatch concluded a system -wide current condition assessment and the following findings were presented to Council in October: Pumps (in water) and Motors (above grade) • Three, 600hp motors and turbine pumps, all three motors have been rebuilt within last 15 years • Repair needed of intake screen below pump house • 2 of 3 check valves currently down, replacements on order for install in May • Upgrade to PLC Controls (in progress, wifi needed) Electrical • Original to the fountain system, continue annual PM and thermal testing • VFD System evaluated and not recommended • Arc Flash safety analysis complete in recommendations implemented Irrigation • Single loop system: long watering window (10-11 hours) • Impacts on grass quality and plant life • Full replacement recommended WWW.FH.AZ.GOV The Fountain, Liner, and Lake The Lake: Liner, Structure, and Nozzle • Fountain celebrated 50 year in Dec, 2020 • 30.8 Acres and 100,623,600 gallons • Liner life expectancy is 20 to 30 years: All signs indicate the liner is in good condition, assumes replacement will be needed between 2025 and 2030 • Bentonite is not an approved option per ADEQ requirements • Process considerations: Water removal, waste removal, environmental impacts, odor/pest mitigation, water output impacts for FHSD, park access to public, public information efforts, event impacts, etc. • Impacts to existing landscaping due to suspended irrigation during replacement • Closed system- no water output other than irrigation and evaporation, results k0�ly'VAIN 1,IttN in continually increased salinity (600ppm) w Ecosystem for fish, birds, other wildlife. (Bald Eagles) 3 11.111hat,slxlry WWW.FH.AZ.GOV Transformers kO�1yT AIN 0 On -going maintenance Staff has pricing for typical pump maintenance & frequency. recommended Full pump replacement of three pumps & motors for CIP $750,000 (replacement) $10,000 - $20,000 Pipe header blast & recoat / air valve (each one of these should be able to be done for <$10k) $15,000 - $20,000 (one) Initial repair of damaged screen recommended. Additional cost $120,000 (all in kind) may be required if redesign of existing concept is desired. $50,000 May require minor additional charges for more elaborate programming $100,000 (refurbishment) - $400,000 (replacement) $400,000 (replacement) <$25,000 — 30 kVA Pricing listed is for replacement; 300 kVA was recommended to $100,000 — 150 kVA first have oil sampled & analyzed w/ continued on -going $200,000 — 300 kVA maintenance per manufacturer <$25,000 Lower on the priority list $1,700,000 As noted above, this can be done piecemeal but may end up costing more over time $5,000,000 - $7,000,000 Large range mainly dependent upon timing (more costly farther into the future) $40,000 $140,000 Unable to assess the majority of the pipeline Replacement Strategy/ Next Steps Spring Council Presentation by Black and Veatch • Identify priorities and replacement timelines • Discuss feasible project approaches for liner replacement process and related costs, impacts, sequencing, timelines, etc. • Consider funding projections for systems and liner, estimated range of $9M to $10.5 M Funding Options • Develop dedicated reserve fund • Contribute annual allocation in anticipation of replacement/repairs • Consider financing balance with voter -approved bonds or other financing mechanism 'VAIN 0 z � O �e •9that islklr$ m WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV ITEM 10. r 4VV Cft PRO7 Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Proposed Renovations and Other Improvements to the Community Center. Staff Summary (Background) The Fountain Hills Community Center was built about twenty years ago. Due to its age and heavy use by the public, the building is in need of renovation. Community Services Director Rachael Goodwin will be presenting cost estimates for near term projects such as interior painting, bathroom renovation, floor covering replacements, furniture, control system and audio system updates, and drainage improvements. Ms. Goodwin will also present staff recommendations for longer term improvements such as a minor interior modification and a possible small scale expansion to provide more programming space. These two projects are planned further out in the future and included in the CIP in later years as staff is still trying to assess the estimated costs for these capital improvements. While there is funding in the Facilities Reserve to undertake a number of needed improvements in July, staff is seeking Town Council consensus to move forward in procurement activities this spring which would mean Council approval of contracts during the current fiscal year. This is due to the tight window of time to sequence the contractors and have them scheduled during the six weeks or so when the Community Center is typically closed in the summer. Attachments Community Center Improvements TOWN OF FOUNTAIN HILLS Community Center. Improvements Rachael Goodwin, Community Services Director that is Nf' WWW.FH.AZ.GOV Community Center Background • Opened in 2001 • 30,000 sgft • Meeting rooms, art studio, 7,000 sqft grand ballroom, restrooms, full kitchen, storage area, lobby and lounge. • Average more than 3,800 bookings a year • More than 1,300 Activity Center Members • Estimate foot traffic : 61,143 users (2019) • Rentals only, does not include programs AIN �rL 0 r � e 'hat is palt' WWW.FH.AZ.GOV Imen AN - I : m,!� that is 10$ w Community Center Facility Improvements Phase 1 Begin summer of 2021 to include: • Interior painting $90,FOOO • Moisture remediation $100,000 • Carpet replacement $150,.000 • Tile replacement $175,.000 • Audio/Visual enhancement $120,.000 • Furniture replacement $50,000 Facility Reserve Fund $685,pOOO ��T AIN �rL 0 r � e 'hat is palt' WWW.FH.AZ.GOV i kO�1yT AIN 0 WWW.FH.AZ.GOV 'A that is 0$ WWW.FH.AZ.GOV r 'A that is 0$ WWW.FH.AZ.GOV WWW.FH.AZ.GOV Community Center Facility Improvements Phase 2 Benin 2021: • Restroom Remodel • Replace built in furnishings • Address outside drainage Capital Improvement Fund $3501000 $501000 $501000 $450,000 WWW.FH.AZ.GOV Community Center Facility Improvements Phase 3 - Optional Begin 2021 thru 2025, to include: • Engineering for renovations (Fv 21/22) • Lounge enclosure • Building addition Capital Improvement Fund (up to) $100,000 $150,000* $790,1000* $1.04M WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV el'I F14N '`a y Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Community and Neighborhood Issues. Staff Summary (Background) Development Services Director John Wesley plans to present a number of important community and neighborhood issues that affect the quality of life for our residents at the Council Retreat. These issues consist of short-term rentals, noise ordinance, sober living homes, a proposed detox facility, and an ordinance on unfinished construction. In addition to these topics, the town manager will be presenting an update on homelessness. Homelessness has become more noticeable in Fountain Hills over the past couple of years and has been a growing problem for a number of cities in the Valley. The presentation will focus on regional initiatives occurring in the East Valley as well as those currently being undertaken by the Maricopa Association of Governments. Finally, the presentation will conclude with a recommendation for modest financial contributions in the proposed FY 2021-21 budget to MAG for regional homeless shelter services or other services for the homeless. Attachments Community and Neighborhood Issues TOWN OF FOUNTAIN HILLS Community and Neighbor) John D. Wesley, AICP Development Services Direct February 23, 2021 r r �- ie WWW.FH.AZ.GOV Shortmterm/VacafloL Rentals • Registering current rental property owners • Active partnership with MCSO to respond to complaints • Have to regulate similar to any single residence • Two bills introduced addressing this topic • Noise is an issue 9bt�a�°°° WWW.FH.AZ.GOV Noise Ordinance • Challenges with current ordinance using decibels • Reviewed other ordinances and possibly bring forth an amendment • Related concern with golf course maintenance — specify hours 9bt�a�°°° WWW.FH.AZ.GOV kO'1�1'VAIN 0 Group Homes/Sober " Facilities • Federal Fair Housing protects individuals and groups from housing discrimination • Have to allow group homes for handicapped in single residence neighborhoods • This includes drug and alcohol rehabilitation and sober living homes • Must register, 1,200 square foot spacing, 6 — 10 residents 9bt�a�°°° WWW.FH.AZ.GOV Detox Facilities • New request to establish a detox facility • Not specifically allowed • Options • Not allow • Interpretation • ordinance amendment, by right or as SUP 9bt�a�°°° WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV TOWN OF FOUNTAIN HILLS Homelessness: East Valley Consortium and MAG Regional Initiative dw_ Grady Miller, Town Manager WWW.FH.AZ.GOV East Valley Consortium to Address Homelessness • Since October 2017, East Valley city managers began meeting to discuss the issue of regional homelessness • East Valley leaders viewed the impacts of homelessness as not being confined to a single city or town boundaries and being a regional problem • The managers used the meetings to discuss best practices, resources, and community approaches • To date, there have been several meetings and participants broadened to include Maricopa County, Maricopa Regional Continuum of Care, law enforcement, and other stakeholders • In September 2019 the Town Council adopted Resolution 2019-44 to support the East Valley efforts to address the homelessness issue MAG Initiative to Address Homelessness • As a result of the East Valley efforts, MAG agreed to take the lead regionally on this issue • MAG completed national study of most effective regional practices to address homelessness and created an inventory of local strategies • MAG staff also created funding sources and eligibility spreadsheet, which has been distributed to raise awareness about opportunities available to fund the strategies being developed • MAG is fine-tuning a methodology for a cost study to help determine the financial commitment made by Valley communities to address the issue MAG Initiative to Address Homelessness • The study will allow staff to identify the gap between how much the region is spending now and how much will be needed to implement the strategies • MAG can then develop fundraising targets to cover the gap • MAG completed national study of most effective regional practices to address homelessness and created an inventory of local strategies • MAG staff also created funding source and eligibility spreadsheet, which has been distributed to raise awareness about opportunities available to fund the strategies being developed MAG Initiative to Address Homelessness • MAG is fine-tuning a methodology for a cost study to determine financial commitments made by communities in the region to address homelessness • The study will allow staff to identify the gap between how much the region is spending now and how much will be needed to implement the strategies • MAG staff can then develop fundraising targets to cover the gap • MAG is preparing to launch a study about considerations to take when siting new housing, shelter and services • A key focus in this work is to geographically disperse homelessness assistance throughout the region What is Fountain Hills Doing About Homelessness? • While smaller cities and towns in Arizona are not typically providers of human services, Fountain Hills does the following: • Participates in the East Valley Consortium on Homelessness • Contributes $24,200 annually to Extended Hands Food Bank • Participates in the Urban Counties Program administered by Maricopa County • Town's allocation of CDBG federal funding goes towards homeless programs and services • $24,000 was allocated for emergency housing and utility assistance in 2020 • Participates in Tempe Community Action Agency, a non-profit human service organization • The agency made available $24,000 in emergency housing and utility assistance in 2020 • MCSO provides bottled water to individuals and makes referrals to shelters What More Can Fountain Hills Do to Help? • MAG is in the process of identifying best practices to approach issue • This may consist of situations or programs unique to each community • Continue to be engaged with regional meetings and FH provide input • Respond to surveys and requests for information • Cities and towns will be asked to make financial commitments to help with regional shelter costs or homeless programs • $50,000 is recommended in FY 21-22 budget as placeholder for regional program or services (pro rats basis of Tempe's annual cost) • Report to Town Council on regional efforts and how funds will be used • Help bring awareness to issue and communicate FH and regional efforts TOWN OF FOUNTAIN HILLS Questions WWW.FH.AZ.GOV ITEM 12. Meeting Date: 02/23/2021 Agenda Type: Council Discussion TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Update on New Residential and Commercial Developments. Staff Summary (Background) Over the past three years, the Town of Fountain Hills has experienced an unprecedented level of new commercial, residential, and mixed use developments that it hasn't seen since the major building boom in the mid-1990s. Development Services Director John Wesley will present an overview and status of major developments including the Fountain Hills Medical Center, Adero Canyon, the Havenly (Keystone), a new phase of Park Place, and other developments. Since a number of these developments are high profile, it is important to keep the Council informed about these projects. Attachments New Developments Update • f �a�y�1�'► �QQ - . 3 � Y t 4 �ih �. 4 F � '•'i'� j 1�lar�.�pva'. FOUNTAIN HI•�`� dA vy. V ts•`"�' TIC.. t _ - .e,• sr- y fit. � Al1•+�e. -} .mil-fl,.� tt eta .,+rr..•- ; a � e 9 t +•jT. s. ' �� A , r f�' Ivy • s:s_" K a lwt •. ,: h .!+ �.%� `�ti;A vim,',• F� i �i'. � �. •lc i�`. Y VF �. J k AF � �,,.:�9,►.¢.:s� sit 1' ,fl I��a�� ,a�:� r � �' � i '.�; 1 � � ,.,� ..,. � w,7t ' I) A �ll�lllll WWW.FH.AZ.GOV Fountain Hills Medical Center • A few outstanding issues before Certificate of Occupancy • Must get state inspections and approval prior to opening • Will be adding sidewalk along their Saguaro frontage 9bt�a�°°° WWW.FH.AZ.GOV Adero Canyon • Parcels 1, 7 & 8 essentially complete • Parcel 2A, 13 lots, nearing completion • Eagle Ridge Drive, constructed, landscape plan under review • Parcels 5 & 6, 99 lots, final plats filed, construction of subdivision improvements underway • Parcel 213, 38 lots, final plat in for review • Parcels 9 and 10 are open space PHASE II Parcel A Parcel3 POreel 5 Parcel a.� Parcel 2.4�J- CPCQP Site °b Parcel 7 Parcel 4 Parcel 8 Parcel I Adero Canyon Parcel Map Parcel 10 Parcel l0A "'��a�!� WWW.FH.AZ.GOV Keystone/The Havenly • 147 units • Complete pavement — End of Feb • 1st Phase/Clubhouse Leasing —Aug • 2nd Phase — Oct • 3rd Phase — Dec • 41" and 5t" — Feb 2022 /L 11. t/ ! $i 9bt�a�°°° — WWW.FH.AZ.GOV Park Place Phase III • Phase III 3-story 102 units Surface parking Art Walk • Development Agreement requires P&Z and Council review , o tK I G.STAR <<7 c� gpAtn;p, a yt4piN' ��P�. Mp"Ity CWEa WWW.FH.AZ.GOV Other Development Projects • Serenity Estates, platted in 2007 GO/den • 11 lot, single -residence _ Eag'e81vd. • Extension of Cerro Alto • Casa's del Lago Apartments • El Lago and Verde River • 23 units under construction • Gunsight Apartments • Saguaro and Gunsight • 10 units in review kO�1yT AIN �lttm 0 ()� z 1� c 11 e m that is 10$ WWW.FH.AZ.GOV Discussion Questions 9bt�a�°°° WWW.FH.AZ.GOV ITEM 13. Meeting Date: 02/23/2021 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): Public Safety Update. Staff Summary (Background) Law enforcement and fire/emergency medical services are the highest priority of services provided by municipalities. The Town of Fountain Hills is fortunate to have contracted out its public safety services to two outstanding services providers -- Maricopa County Sheriff's Office (MCSO) and Rural Metro. Not only are these two services essential and important to the quality of life for our residents, they also account for approximately 50 percent of the Town's operating budget. In past fiscal years, the combined increases from both MCSO and Rural Metro grew at a faster rate than town revenues. This resulted in other operating budget reductions or budget adjustments in order to accommodate the higher costs in the operating budget. To ensure MCSO is meeting service levels and charges for services outlined in the intergovernmental agreement with the agency, the town recently initiated an audit of law enforcement services provided by MCSO. While the audit has not yet been completed by an outside auditing firm, the intent of staff is to provide a status update at the Council Retreat and an estimate of when the auditing firm will present its findings and conclusions to the Town Council. As a follow up to the audit currently underway, it is further recommended that the Town Council consider contracting with qualified firms to evaluate the cost of providing police and fire services internally rather than contracting out for the services. Doing so will enable the town to learn first hand the cost of providing these services itself as well as cost -benefit analysis between these two different service delivery models. If there are potential budgetary savings and/or improvements in service delivery, then it is useful information to help guide future Council policy decisions on these services. The timing of a cost of service evaluation is particularly important as the term of the intergovernmental agreement with MCSO ends on June 30, 2022. The findings and recommendations from a cost of service report could also be helpful in negotiating a new intergovernmental agreement with MCSO. While this is only a discussion item at this time, it is important to gauge the Council interest on this topic as it will be necessary to consider moving forward in the next couple of months on initiating Request for Proposals.