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Home My WebLink About2020.0225.TCRET.PacketNOTICE OF MEETING RETREAT FOUNTAIN HILLS TOWN COUNCIL Mayor Ginny Dickey Vice Mayor Sherry Leckrone Councilmember Dennis Brown Councilmember Alan Magazine TIME: 9:00 AM — RETREAT Councilmember Mike Scharnow Councilmember David Spelich Councilmember Art Tolis WHEN: TUESDAY, FEBRUARY 25, 2020 WHERE: FOUNTAIN HILLS COMMUNITY CENTER 13001 N. LA MONTANA, 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. AGENDA 1. CALL TO ORDER — Mayor Dickey 2. ROLL CALL — Mayor Dickey 3. Council Retreat Overview 4. Town Council assignments to attend and represent the Town of Fountain Hills in regional organizations 5. Update on General Plan 2020 review and adoption process 6. Discussion regarding the Strategic Plan Update Process 7. Discussion regarding the Town's procurement practices and procuring goods and services from local vendors 8. Discussion regarding the acquisition of a new pumper truck versus repair of the existing pumper 9. Discussion regarding the proposed replacement of Council Chamber Audio/Visual Equipment Town Council Retreat of February 25, 2020 2 of 2 10. Update to the Town Council on mid-year FY 2019-20 fund balances and year-end projections 11. A preview for the Town Council on town-wide revenues for FY 2020-21 12. An update to the Town Council on increasing town-wide revenues 13. Review of current and future Capital Improvement Program projects 14. Review of current and future Facilities Replacement Program projects 15. Review of fund balance classifications, current reserve policies, and suggested updates 16. Discussion regarding a proposed Fountain Park Infrastructure and Maintenance Assessment 17. Discussion of Arizona State Retirement (ASRS) 18. Discussion of Proposition 500 and its impact on Fountain Hills and the region 19. Review and Consider Changes to Town Council Prioritization Process for Projects Contained in the Capital Improvement Program 20. 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,--rr 1day of 020. iza eth u e,MMC,Town Clerk The Tow/oof Fo ntain 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 hour prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format.\.up orting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. ITEM 4. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Ginny Dickey, Mayor DISCUSSION ITEM (Agenda Language): Town Council assignments to attend and represent the Town of Fountain Hills in regional organizations Staff Summary (Background) Annually, the Mayor and members of the Town Council attend and represent the Town of Fountain Hills in a number of policy -related committees for regional organizations. These include the Maricopa Association of Governments (MAG), Greater Phoenix Economic Council (GPEC), Valley Metro, East Valley Partnership, League of Arizona Cities and Towns, and other regional organizations. The Council Retreat offers an outstanding opportunity for the Mayor and Council to weigh in on their committee assignments, assess their participation levels, and possibly request changes to their assigned policy committees. Assignments Attachments Form Review Form Started By: Grady E. Miller Started On: 02/17/2020 01:12 PM Final Approval Date: 02/17/2020 Updated:7/24/19 TOWN OF FOUNTAIN HILLS COUNCIL ASSIGNMENTS TO VARIOUS ORGANIZATIONS ORGANIZATION MEETINGS HELD ASSIGNED East Valley Partnership The East Valley Partnership is a coalition of civic, business, educational and political leaders from Apache Junction, Chandler, Florence, Fountain Hills, Gila River Indian Community, Gilbert, Mesa, Queen Creek, Salt River Pima-Maricopa Indian Community, Tempe and Pinal County dedicated to the economic development and promotion of the East Valley of Greater Phoenix, Arizona. They advocate in areas such as economic development, education, transportation and infrastructure, arts, behavioral health, and other important areas. EVP — Board of Directors 15t Thursday of month — 4:00 PM Vice Mayor Tolis EVP — Advocacy & Government Relations 3rd Tuesday of month —10:30 AM 0 P E N EVP — Education/Business 2 n d Tuesday of month — 7:30 AM* 0 P E N EVP — Economic Development/Aviation & Aerospace 4t" Thursday of month — 4:00 PM* 0 P E N EVP -Transportation 151 Wednesday of month - 7:30 AM* 0 P E N GPEC (Greater Phoenix Economic Council) A true public -private partnership, GPEC is the regional economic development organization for Greater Phoenix. Working with its 22 member communities, Maricopa County and more than 150 private investors, GPEC attracts quality businesses to this dynamic region making it one of the best tech relocation cities. By creating a high-performance economy through capital investments and jobs, Greater Phoenix companies enjoy a business climate where they can compete and thrive in today's global economy. Since 1989, GPEC has worked to achieve an economically sound and sustainable region GPEC — Mayors/Supervisors Last Thursday of month/quarterly Mayor Dickey GPEC — Board of Directors 3rd Thursday of month/quarterly Councilmember Magazine League of Arizona Cities and Towns The League, a voluntary membership organization of the incorporated municipalities in Arizona, exists to provide vital services and tools to all its members, focusing principally on representing the interests of cities and towns before the legislature, and secondarily on providing technical and legal assistance, coordinating shared services and producing high quality conference and educational events. Updated:7/24/19 League— Executive Committee League— Policy Committees: Budget, Finance and Economic Development General Administrative, Human Resources and Elections Neighborhoods, Quality of Life and Sustainability Public Safety, Military Affairs and Courts Transportation, Infrastructure and Public Works Quarterly Policy committees usually meet during April, May and June to prepare itemsfor the August Annual Conference each year. Mayor Dickey (applying) 0 P E N 0 P E N Councilmember Leckrone Councilmember Spelich Councilmember Scharnow MAG (Maricopa Association of Governments) ■ Provide a forum for discussion and study of regional problems of mutual interest to the governments in the region. ■ Ensure, through cooperation and the pooling of common resources, maximum efficiency and economy in governmental operations, which will provide every citizen with the utmost value for every dollar. • Identify and comprehensively plan for the solution of regional problems requiring multicity, town and county cooperation. ■ Facilitate agreements among the governmental units for specific projects or other interrelated developmental actions or for the adoption of common policies with respect to problems that are common to its members. ■ Attain the greatest degree of intergovernmental cooperation possible in order to prepare for future growth and development of the region MAG — Regional Council Last Wednesday of month —11:30 AM Mayor Dickey MAG — Human Services and Community Initiatives 3rd Thursday of month —1:00 AM* 0 P E N MAG — Domestic Violence Council 1st Thursday of month — 2:00 PM* 0 P E N Valley Metro (RPTA) Board of Directors 3rd Thursday of month —11:15 AM Councilmember Scharnow Valley Metro is the regional public transportation agency providing coordinated transit services to residents of Mayor Dickey (alternate) metro Phoenix. From regional bus, light rail and paratransit service to alternative commuter solutions, Valley Metro's core mission is to develop and operate a network of transit services. ITEM S. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director DISCUSSION ITEM (Agenda Language): Update on General Plan 2020 review and adoption process Staff Summary (Background) State statutes require that every jurisdiction review and update their general plan every 10 years. The Town of Fountain Hills began the process of updating the current General Plan in 2018 with the goal of having it complete and on the ballot for citizen approval in November 2020. Staff and the consultant have been working through citizen outreach and participation to draft a new Fountain Hills General Plan 2020. The town is nearing the final stages of the review and approval of the new plan. Staff will provide the Town Council with an update on the remaining steps to complete this important project. Attachments DS Power Point Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 02/17/2020 12:07 PM Form Started By: John Wesley Started On: 02/13/2020 07:15 AM Final Approval Date: 02/17/2020 Fountain Hills General Plan 2020 Grady Miller, Town Manager John D. Wesley, Development Services Director February 25, 2020 Plan Update — Background Step 1 • Preparation of Public Participation Plan September -December 2018 • Data Gathering & Analysis/Map Preparation (Completed) • Background and Current Conditions Report Step 2 January -July 2019 (Completed) Step 3 August 2019 — February 2020 • Gather Community Input/ Public Outreach • Current General Plan Review • Visioning Report • Draft Plan • Public Review and Comment • Prepare revised Draft Plan • Began 60-day Review Plan Update — Next Steps • Draft Plan available • Library, Chamber, Community Center • On-line • Stakeholder review February 26 • P &Z meetings — March 9 & April 13 • P& Z Hearing and recommendation — April 23 • Council Hearing — May 19 • Council set vote —June 2 ITEM 6. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager DISCUSSION ITEM (Agenda Language): Discussion regarding the Strategic Plan Update Process Staff Summary (Background) In 2018 the Town Council approved the 2017 Strategic Plan as developed and recommended by the Council -appointed Strategic Planning Advisory Commission. At the time of the adoption of the plan, it had a three-year window of time for the objectives and tasks identified in the Strategic Plan. For the most part, quite a bit of progress has been made in accomplishing the objectives and tasks in the plan. The Strategic Planning Advisory Commission has initiated plans to start going through a major update of the strategic plan. Realizing that the term "Strategic Plan" sounds very similar to "General Plan," the commission has decided to encourage the General Plan to go through its public engagement and voter -approval process before starting the process to update the strategic plan. Currently, the Strategic Planning Advisory Commission has begun to scope out the major components of the update process. This includes developing a master calendar and identifying a number of citizen engagement activities including a public visioning process, surveys, focus groups, public meetings, and other ways of involving residents in the strategic plan update. This staff report is merely a summary of the major update planned for the 2020/21 Strategic Plan. It is anticipated that the Chair of the Strategic Planning Advisory Commission will be coming before the Town Council later this year to provide an overview of the strategic planning update with considerably more details about the process. 2017 Strategic Plan Attachments Form Review Form Started By: Grady E. Miller Started On: 02/18/2020 10:30 AM Final Approval Date: 02/18/2020 o��T AIN z 0 1 e 3 � � b 91f�a that is P►v'ti Town of Fountain Hills 2017 Strategic Plan May 18, 2017 UPDATED: December 18, 2019 TOWN OF FOUNTAIN HILLS 2017 STRATEGIC PLAN Goal # 1: Maximize Economic Develooment ODDortunities in Fountain Hills Tasks ❑ Develop a new business resource package ❑ Increase funding for business accelerator programs ❑ Explore higher education opportunities in Fountain Hills Lead Responsibility James Smith James Smith James Smith Tasks Lead Responsibility ❑ Rezone commercial property to residential where feasible James Smith / John Wesley ❑ Adopt a text amendment that allows residential uses on commercially John Wesley zoned properties ❑ Rezone unplatted land for greater density and affordable family homes John Wesley Market/Promotei Dollar i Tasks Lead Responsibility ❑ Create and expand destination events Rachael Goodwin / James Smith Yellow — High Priority - — Medium Priority White — Low Priority Projected Completion Date June 2020 June 2017 Completion Date In progress Completed July 2018 Completed Ongoing Er In progress/working with EVIT & CC Projected Completion Date Completion Date Ongoing As opportunities present themselves June 2017 Completed Ongoing As opportunities present themselves Projected Completion Date Completion Date June 2019 Ongoing St. Patrick's Day / Fourth at the Fountain Turkey Trot / Craft Classic / Disc Golf Tournament TOWN OF FOUNTAIN HILLS 2017 STRATEGIC PLAN Goal # 2: Ensure that Infrastructure in Fountain Hills is Well -Maintained and Safe Objective #1 —Invest in and Maintain the Community's infrastructure Tasks Lead Responsibility Projected Completion Date ❑ Develop and implement an investment plan to bring streets, Grady Miller/ buildings, and parks up to established standards David Pock/Justin Weldy ❑ Commission a study to identify gap between actual and subdivision Justin Weldy/John Wesley ordinance specifications and determine cost of meeting ordinance specifications Tasks ❑ Develop and adopt a comprehensive environmental plan for Fountain Hills ❑ Research and report on economic and logistic feasibility of electric car charging stations Lead Responsibility Justin Weldy/Raymond Rees Justin Weldy Completion Date June 2019 Pavement Analysis Report completed (Facilities Replacement Fund) 10 Yr. pavement plan to be presented Dec. 2019 June 2019 Projected Completion Date June 2019 June 2018 Reviewed/Identified options to discuss Completion Date In progress Review TOWN OF FOUNTAIN HILLS 2017 STRATEGIC PLAN Goal # 3: Attract Families and Working Professionals to Fountain Hills ❑ Work with State Land Trust to increase residential density Tasks Lead Responsibility Projected Completion Date Completion Date Council/Staff December 2018 Ongoing efforts Lead Responsibility Projected Completion Date ❑ Collaborate with businesses in promoting town's marketing plan Economic Development Director/Grace Rodman-GuetterJuly 2019 Completion Date Ongoing ❑ Expand use of Social Media and on-line messaging mes Smith Ongoing Facilitating nine social media pages; Recreation Instagram account -August 2019 ❑ Include family branding in marketing plan James Smith June 2019 In progress ❑ Organize a young professionals group or organization James Smith June 2018 Completed/Formed FH Young Community ❑ Organize specialty youth camps (robotics, coding, arts, etc.) Rachael Goodwin/ Summer 2018 Created first summer youth camp/ongoing Linda Ayers Spring camp/Community Center take-over ❑ Support youth club sports Rachael Goodwin/ Ongoing Use of Town facilities at no cost Linda Ayers Expand programs Yellow — High Priority - — Medium Priority White — Low Priority TOWN OF FOUNTAIN HILLS 2017 STRATEGIC PLAN Goal # 4: Ensure that Fountain Hills Finances are Stable and Sustainable Tasks Lead Responsibility ❑ Adequately fund all identified reserve funds Town Council/Town Manager/ David Pock ❑ Identify revenue options Town Staff/Town Manager/Town Council ❑ Increase revenues to meet community needs including Town Manager/Town Council addressing projected operating shortfall Projected Completion Date December 2027 September 2017 November 2018 Completion Date Completed/October 2017 / Ongoing Town Election -Property Tax/May 2018 Yellow — High Priority - — Medium Priority White — Low Priority Tasks TOWN OF FOUNTAIN HILLS 2017 STRATEGIC PLAN Goal # 5: Focus on Strengthening the Community and Improvinq Town's Qualitv of Life Lead Responsibility Q Inclu'rmschool strengths in marketing plan h ❑ Work with FHUSD to maximize its property values Town Staff/Council/FHUSD ❑ Explore selling/leasing unused properties Town Staff/Councit/FHUSD Tasks Lead Responsibility ❑ Increase community efforts to lobby for municipal issues Town Manager/Town Council Tasks ❑ Utilize effective volunteer skills and talents Lead Responsibility Kim iV�rXnd Proiected Completion Date June 2019 December 2017 December 2017 Projected Completion Date Completion Date Ongoing Addressed at 2/21/17 Joint Meeting Addressed at 2/21/17 Joint Meeting Completion Date January 2018 Joined RPTA East Valley Partnership National League of Cities -July 2018 Continue to work with League of Cities & Towns to oppose Bills that are harmful to cities & towns Projected Completion Date Ongoing Completion Date OngoWlIRRMWO volunteers • Make A Difference Day • Home Delivered Meals • Give A Lift Program • Activities & Volunteer Expo • Mayor's Youth Council • Save Our Sculptures Program Community Center Christmas Decorating & Celebration • Commissioners Yellow — High Priority - — Medium Priority White — Low Priority ITEM 7. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Colby Wattling, Procurement Officer Staff Contact Information: David Trimble, Deputy Town Manager/Admin. Serv. Dir. DISCUSSION ITEM (Agenda Language): Discussion regarding the Town's procurement practices and procuring goods and services from local vendors Staff Summary (Background) Each year the Town of Fountain Hills utilizes a number of local vendors for obtaining goods and services and is working on ways to increase opportunities for local vendors to receive contracts in the future. Staff will be organizing a forum in the near future for local vendors to learn more about working with the town. Attachments PowerPoint Form Review Inbox Reviewed By Date Finance Director Elizabeth A. Burke 02/12/2020 04:43 PM Town Manager Grady E. Miller 02/17/2020 11:32 AM Form Started By: Colby Wattling Started On: 02/12/2020 04:13 PM Final Approval Date: 02/17/2020 Local Vendor Procurement FY2017 Number of Vendors: 58 FY2018 Number of Vendors: 69 [FAIN:, Number of Vendors: 74 Fiscal Year Spends Total Spend: $500,540.72 Total Spend: $469,162.80 Total Spend: $614,806.91 Frequently Used Local Vendors • A Savings Air Euro Pizza •Safeway • Blue Agave Pool &Spa• Fountain Hills Times 9 Sami Fine Jewelry • Carume Contracting • Fry 's • Cummins Termite& • Interim Public Pest Control Management • Custom Mirror & • Leslie's Pool Supply Furniture • Paul's Ace Hardware • Sign Art • Target • Tom's Custom Wrought Iron • Tractor Supply Co. • Daylite Films • Primary Care Walk -In • Tradeshow Source • Elco Enterprises Inc. Medical Clinic NIGP Opinion on (National Institute of Governmental Purchasing) Local Preference • Upon review of the issue, NIGP maintains the position that local preference policies are in conflict with the fundamental public procurement principles of impartiality and full and open competition and, therefore, does not support the use of local preference policies as an appropriate tool for improving local economies. However, acknowledging that governments may, in fact, adopt local preferences as a tool for improving local economies unless otherwise prohibited by federal court preferences, NIGP recommends that local procurement preferences are reflected as one of many criteria in a `best value' evaluation and award process. Best value means the most advantageous balance of price, quality, and performance identified through competitive procurement methods in accordance with stated selection criteria. There is no uniform statutory or regulatory definition, but it generally refers to a source selection based upon a cost/benefit analysis. The application of best value procurement to local purchasing preferences extends the concept of considering non -cost items in the evaluation process, and thereby provides the rational basis for including a geography -based criteria. - NIGP Position Paper "Local Preference in Public Procurement" (2015) Local Vendor Forum • Provide a opportunity for local vendors to learn about doing business with the town • Show vendors where to look for bid/proposal opportunities https://www.fh.az.gov/Bids.aspx • Introduce them to Notify Me° • Describe differences of working for/with public entity vs private — Assure them that payment is prompt and slow pay is not an issue • Talk to vendors about why they might be hesitant to submit bids/proposals Meeting Date: 02/25/2020 Agenda Type: Council Discussion Prepared by: Dave Ott, Fire Chief Staff Contact Information: Dave Ott, Fire Chief TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Town Council Retreat Submitting Department: Fire Department ITEM 8. DISCUSSION ITEM (Agenda Language): Discussion regarding the acquisition of a new pumper truck versus repair of the existing pumper Staff Summary (Background) The Town Council adopted the Vehicle Replacement Program for the purpose of strategically planning for and scheduling the replacement of vehicles in the town's fleet. By determining the lifecycle and future costs of vehicle replacements, the town annually budgets a fixed amount over the life of vehicles to adequately fund vehicle replacements. The Vehicle Replacement Program also outlines an authoritative decision -making process for the evaluation, selection and multi -year scheduling of vehicle replacements based on a projection of available fiscal resources and the vehicle's age, mileage, engine hours and repair costs. The objectives of this program are to: • Ensure the timely purchase, repair and replacement of the Town's vehicles; • Serve as a link in the Town's planning between the Town's operating and Capital budgets; • Maintain control over the Town's long term cash flow in relation to the Town's financial capacity and; • Ensure efficient, effective and coordinated vehicle acquisition and replacement. Per the Vehicle Replacement Program Policy the guidelines below shall be utilized. Vehicles may also be replaced due to excessive maintenance and repair costs. Vehicles being replaced will be sent to auction with the proceeds being deposited in the Vehicle Replacement Fund. Pumper Trucks: 15 years/120,000 miles. At the discretion of the Public Works Director and based on a recommendation from the fleet mechanic, early retirement of a vehicle with excessive maintenance may be recommended. Excessive maintenance is defined as repair costs that exceed 40% of the vehicle value in a twelve-month period. The Fire Department's existing Pumper is a 2008 model with estimated repair costs that will exceed $35,000.00. This would be excessive maintenance as defined by the policy and increase the repair costs to total $60,000.00, exceeding 40% of the vehicle value. The estimated cost of purchasing and outfitting a new pumper truck is $513,913.79. Staff will return at a later date before the Town Council for consideration and approval of a Cooperative Purchasing Agreement for this major vehicle purchase. The Vehicle Replacement Fund has adequate reserves to absorb the purchase of a replacement fire truck at this time. Photos Inbox Reviewed By Town Manager Grady E. Miller Form Started By: Dave Ott Final Approval Date: 02/17/2020 Attachments Form Review Date 02/17/2020 12:34 PM Started On: 02/17/2020 08:48 AM CURRENT TRUCK PROPOSED TRUCK G� ITEM 9. Meeting Date: 02/25/2020 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Mike Ciccarone, Information Technology Administrator Staff Contact Information: DISCUSSION ITEM (Agenda Language): Discussion regarding the proposed replacement of Council Chamber Audio/Visual Equipment Staff Summary (Background) The Information Technology Division was tasked with improving the audio and visual quality of our Town Council meetings held in the Council Chambers. The current audio/visual equipment was installed during the construction of Town Hall in 2005. Since then, there have been multiple equipment failures, including the sound mixer, video production system, control system, and live stream video encoder. Temporary repairs have been made to the system, but there are limitations on the existing equipment and current configuration. Recently, there have been complaints from meeting attendees that it is difficult to hear council members and to read presentations. Staff is proposing to replace the existing equipment and reconfiguring the sound reinforcement system to improve the overall quality of our Town Council meetings for the benefit of those attending in person, watching live on Channel 11, and the web. This new equipment will also allow for quicker turnaround to post meetings online (YouTube) following the meeting by eliminating the time-consuming process of re -encoding meetings prior to posting. Replacing the equipment will also allow for more flexibility with Council Chambers setup and use. The lifespan of the proposed new audio-visual equipment is approximately 15 years. Attachments Presentation Form Review Inbox Reviewed By Date Finance Director David Pock 02/13/2020 12:54 PM Town Attorney Aaron D. Arnson 02/13/2020 02:47 PM Town Manager Grady E. Miller 02/17/2020 12:13 PM Form Started By: Mike Ciccarone Started On: 02/13/2020 11:27 AM Final Approval Date: 02/17/2020 Council Chambers A/V Equipment Replacement Grady Miller, Town Manager Mike Ciccarone, I/T Administrator February 25, 2020 Council Chambers A/V Equipment Replacement • Existing equipment installed in 2005 • Video production system installed in 2008 • Multiple equipment failures • Sound mixer • Video production system • Web streaming encoder • DV D/V H S • Control system • Poor sound reinforcement with deficient hearing assist capabilities and overall lack of control/flexibility Council Chambers A/V Equipment Replacement • Replace existing equipment: —Audio rack —Microphones — Projector and screen —Video production system &cameras • Re -configure: —Sound reinforcement (speakers) —Integrated control system Council Chambers A/V Equipment Replacement • Benefits: — Life expectancy of new equipment 15 years — Quicker turnaround to post meetings online —More flexibility with council chambers setup/use —Greatly improved presentation quality —Improved sound (in -room and on TV) — No more band aid fixes ITEM 10. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): Update to the Town Council on mid -year FY 2019-20 fund balances and year-end projections Staff Summary (Background) At the Town Council Retreat, staff will provide an update to the Town Council on year to date actual revenues, expenditures, and fund balances for the first half of the fiscal year, as well as projected year-end balances. The timing of this information is critical as the precursor to the upcoming Town Council workshops on the FY 2020-21 proposed operating budget and capital improvement program. PowerPoint Inbox Finance Director (Originator) Town Attorney Town Manager Form Started By: David Pock Final Approval Date: 02/17/2020 Attachments Form Review Reviewed By David Pock Aaron D. Arnson Grady E. Miller Date 02/16/2020 03:14 PM 02/17/2020 07:38 AM 02/17/2020 01:44 PM Started On: 02/12/2020 05:19 PM FY20 Financial Update Grady Miller, Town Manager David Pock, Finance Director February 25, 2020 CA c 0 $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Mid -Year Revenues — Local Sales Tax Operating Funds TOWN OF FOUNTAIN HILLS SIX MONTHS ENDING DECEMBER 31 OPERATING FUND REVENUES red Revenues Permits and Licenses t-, - I i I A FY18-19 . FY19-20 { Period BUDGE' 2 $3.0 $2.5 $2.0 c 0 $1.5 $1.0 $ 0.5 $0.0 Mid -Year Expenditures — ADMINISTRATION Operating Funds Operating Fund Expenditures by Department Six Months Ending December 31 GENERAL GOVERNMENT PUBLIC WORKS DEVELOPMENT COMMUNITY FIRE & EMERGENCY LAW ENFORCEMENT SERVICES SERVICES VIED 4 FY18-19 S FY19-20 A Period Budget Total = $8.4M 3 $3.0 $2.5 $2.0 $1.5 Mid -Year TPT Collections — All Funds Local Sales Tax Collections by Type (in millions) July - December FY16 through FY20 Wholesale/Retail Construction $1.0 Trans/Uti I/Comm $0.5 = $0.0 _. FY15-16 FY16-17 Restaurant/Bar FY17-18 FY18-19 Ins/Real Estate Services a FY19-20 Total = $5.8NI Mid -Year Fund Balances Restricted (Externally Restricted) Streets Fund (HURF) GO Debt Service Fund MPC Debt Service Fund Eagle Mountain CFD Debt Service Fund Cottonwood Maintenance District Fund Parks Development Fee Fund Fire & EMS Development Fee Fund Total Restricted Fund Balance $3,791,096 1,157,074 3121716 2891652 21,787 7531729 2831915 $6,609,969 Mid -Year Fund Balances Committed (Council Action) Rainy Day Fund Capital Projects Fund Downtown Strategy Fund Economic Development Fund Tourism Fund Public Art Fund Court Enhancement Fund Total Committed Fund Balance $3,087,699 41527,881 1,0341751 2,309 1091889 1271390 3881664 $912771583 Mid -Year Fund Balances Assigned (Town Policies) General Fund (Assigned Portion Only) $1,.458,.879 Environmental Fund 865,446 Facilities Replacement Fund 11#9981876 Vehicle Replacement Fund 1/311/448 Total Assigned Fund Balance $516341649 Mid -Year Fund Balances Unassigned (Budgeted day -to -Day Exp.) General Fund (Unassigned Portion Only) $1,,403,824 Total Unassigned Fund Balance 5-Year General Fund Annual Avg. Revenues Unassigned Balance As % of Avg. Revenues Unassigned Balance As Avg. Monthly Rev. $114031824 $15,4311220 9.1% 1.1 months Mid -Year Fund Balances Summary All Funds Restricted $6,609,969 Committed Assigned Unassigned Total Fund Balance 9,277,583 516341649 1/403/824 $22,926,025 Outstanding Bond Debt • General Obligation Bonds (Saguaro Blvd) — Paid from Secondary Property Tax Levy — Final payment of $1,639,225 on July 1st • Municipal Property Corp (Community Center) — Paid from Pledged Town Revenues — Final payment of $302,430 on July 1st • Eagle Mountain Community Facility Dist. — Paid from Eagle Mountain Property Tax Levy — $402K this July; Final payment of $404K July 2021 Estimated Year -End Fund Balances Restricted (Externally Restricted) Streets Fund (HURF) GO Debt Service Fund MPC Debt Service Fund Eagle Mountain CFD Debt Service Fund Cottonwood Maintenance District Fund Parks Development Fee Fund Fire & EMS Development Fee Fund Total Restricted Fund Balance $1,070,341 331,567 81346 87,321 22,649 8221883 3001975 $2,644,082 Estimated Year -End Fund Balances Committed (Council Action) Rainy Day Fund Capital Projects Fund Downtown Strategy Fund Economic Development Fund Tourism Fund Public Art Fund Court Enhancement Fund Total Committed Fund Balance $3,228,246 31365,283 1491164 65,030 66,023 1681965 3881664 $714311375 Estimated Year -End Fund Balances Assigned (Town Policies) General Fund (Assigned Portion Only) $1,614,123 Environmental Fund 367,901 Facilities Replacement Fund 11#2171754 Vehicle Replacement Fund 1,2981611 Total Assigned Fund Balance $4,498,389 13 Estimated Year -End Fund Balances Unassigned (Budgeted Day -to -Day Exp.) General Fund (Unassigned Portion Only) $2,.250,.818 Total Unassigned Fund Balance 5-Year General Fund Annual Avg. Revenues Unassigned Balance As % of Avg. Revenues Unassigned Balance As Avg. Monthly Rev. $2,2501818 $16,1411231 13.9% 1.7 months Estimated Year -End Fund Balances Summary All Funds Restricted Committed Assigned Unassigned Total Fund Balance $2,644tO82 7,431,375 4/498/389 2,250,818 $16,824,664 Questions? ITEM 11. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): A preview for the Town Council on town -wide revenues for FY 2020-21 Staff Summary (Background) A major focus of Town Council Retreats is a review of the Town's budget and finances in advance of the annual budget workshops. During the Council Retreat staff will present information on current fiscal year and multi -year projections of revenues and expenditures for the upcoming fiscal year. PowerPoint Inbox Finance Director (Originator) Town Attorney Town Manager Form Started By: David Pock Final Approval Date: 02/18/2020 Attachments Form Review Reviewed By David Pock Aaron D. Arnson Grady E. Miller Date 02/17/2020 09:01 AM 02/17/2020 09:02 AM 02/18/2020 11:08 AM Started On: 02/12/2020 05:26 PM FY21 Financial Preview Grady Miller, Town Manager David Pock, Finance Director February 25, 2020 Assumptions • Existing level of service maintained • TPT revenue includes 0.03% increase and slight increase in activity • State -Shared revenue to decrease slightly • Building permit activity includes Keystone and hospital but not Daybreak • Estimated annual inflation of 2.5% • 3.0% Rural Metro increase (fixed) • 10% MCSO increase (estimate only) Economic Conditions • Recession unlikely throughout FY21 • Interest rates expected to remain unchanged at least through the election • China, Mexico, and Canada account for over 50% of US exports — First step of China trade agreement reached —United States Mexico Canada Agreeement (USMCA) signed • Great Britain has left European Union — Trade agreements formed over the next year FY21 TPT Forecast FY19-20 FY20-21 Construction $ 1,2801586 $ 1,8081301 Trans/Util/Comm $ 11278,196 $ 1,417,809 Wholesale/Retail $ 51536,648 $ 61349,785 Resta ura nt/Ba r $ 908,850 $ 1,042,366 Real Estate $ 653,533 $ 813,628 Services $ 997,996 $ 1,2011295 TOTAL $ 10,6551809 $ 12,6331184 - Based on 10-year trend analysis of taxable activity - Town rate of 2.9% (except Residential Rental which is 1.6%) - 0.03% rate increase accounts for $1,004,435 of FY21 forecast FY21 Revenue Forecast FY19-20 FY20-21 Local Taxes $ 9,638,743 $ 10,634,126 State Shared Revenue $ 6,282,580 $ 6,068,029 Permits, Licenses, Fees $ 11126,616 $ 8871740 Building Revenue $ 5661341 $ 8511492 Total Revenues $ 17,614,280 $ 181441,387 FY21 Expenditure Forecast FY19-20 FY20-21 Town Council $ 98,544 $ 101,008 General Government $ 1,073,362 $ 11100,196 Administration $ 2,0501966 $ 2,1321240 Municipal Court $ 3971276 $ 4071208 Public Works $ 1,100,934 $ 1,128,457 Devel opmen t Servi ces $ 1,100,290 $ 1,1271796 Community Services $ 2,595,839 $ 2,6601736 Public Safety (Police& Fire) $ 8,807,219 $ 9/406/450 Total Expenditures $ 171224,430 $ 18,064,091 120 110 100 90 80 70 60 50 40 Personnel Number of Full -Time Equivalent Employees FY01 FY05 FY10 FY15 FY20 7 Financial Forecast General Fund Revenues and Expenditures Fiscal Years 2017 through 2026 $25 1 (in millions) FY19-20 FY20-21 FY21-22 Revenues `*—Expenditures Financial Headwinds • Condition of Town infrastructure worsening • Slowing population growth compared to other communities resulting in reduced State Shared Revenues • Declining construction activity • Limited revenue options • Public perception of primary property tax • Possibility of recession Financial Tailwinds • Conservative revenue projections and proactive control of expenditures have resulted in budget savings • User Fee Study, based on cost of providing services, will be presented to Council in March • Increase in Arizona median household income has helped offset reduction in Town's portion of State Shared Revenue Questions? ITEM 12. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): An update to the Town Council on increasing town -wide revenues Staff Summary (Background) A major focus of Town Council Retreats is a review of the Town's budget and finances in advance of the annual budget workshops. During the Council Retreat staff will present information on current fiscal year and multi -year projections of Transaction Privilege Taxes, State Shared Revenues, Environmental Fund, User Fees, and other miscellaneous revenues. Revenue Update Inbox Finance Director (Originator) Town Attorney Town Manager Form Started By: David Pock Final Approval Date: 02/17/2020 Attachments Form Review Reviewed By David Pock Aaron D. Arnson Grady E. Miller Date 02/17/2020 10:32 AM 02/17/2020 11:22 AM 02/17/2020 01:40 PM Started On: 02/12/2020 05:29 PM Revenue Update Grady Miller, Town Manager David Pock, Finance Director February 25, 2020 Transaction Privilege Tax • Accounts for almost 53% of Town's revenue • Recent 0.03% rate increase is expected to yield approximately $650K for FY20 and just over $1M for FY21 • Town has relied on voluntary compliance and a contract auditor for past collections • Contract auditor focuses on large -dollar cases • 1996-Present: Auditor has collected 4.5 times the fee charged from 209 cases Transaction Privilege Tax • Staff has begun to take more active approach —Informational workshops scheduled for TPT filers — IGA with City of Phoenix to utilize their system for analysis of licensees and TPT return information — Staff registered for two-day DOR auditor training — Training will result in receipt of auditor number so that Staff can contact local TPT filers utilizing DOR letterhead • Objective is to increase compliance through education and active review of information $ 2.5 $ 2.0 $0.5 $0.0 State Shared Revenue TOWN OF FOUNTAIN HILLS SIX MONTHS ENDING DECEMBER 31 MAJOR REVENUE SOURCES State Income Tax W FY18-19 + FY19-20 w Budget State Sales Tax Total = $2.9M • State Shared Revenue is 35% of Operating Fund Revenue • Effect of Town's population stagnation in formula has been muted by state-wide increase in median household income Environmental Fund • Fee was suspended for FY20 • $200K is outstanding from 2016 through 2019 — Working on largest balances first —Once owner information is verified, account is eligible for collection activity — Cooperative purchase agreement with Mesa offers collection services at 12.5% of bill ($4.50 per $36) • Projected year-end fund balance of $368K • Fund will require support from General Fund in FY21 to maintain level of maintenance User Fee Study • First comprehensive study of all Town fees • Objective is to determine actual costs of providing services to residents • Administration, Community Services, Court, Development Services, and Public Works participated • Draft report will be presented to Council during a work session on 3/31 • Council will be asked to review the costs of services and determine any needed subsidy Fountain Hills Municipal Court Collection Activity Total Revenue Fiscal Year 20-21 through January 2020 $282,474.37 Total Revenue Fiscal Year 19-20 through January 2019 $121,837.28 Total Revenue Fiscal Year 19-20 $221,210.05 Fountain Hills Municipal Court Collection Activity • Revenue Collections Specialist Total from 9/11/2019-2/5/2020 $19,083.47 • Revenue from cases 2018 and before $171198.47 • Revenue from cases 2019/2020 $1,885.00 • Warrants Fee/Default Fee/Time Payment Fee from 9/11/2019-2/5/2020 has added $12,625.00 to fines and fees owed. Fountain Hills Municipal Court Activity between 9-9-2019 to 2-5-2020 MVD Release Issued (Lift License Suspension) Default FTP/FTA Warrant Warrant Quashed (Warrant no longer active) Payment Plan and $20 Time Payment Fee added L: Number EL I � 0 29 181 DelinquentTime Payment Contract 156 Fountain Hills Municipal Court Collection Activity Aged Receivables Report FOUNTAIN HILLS MUNICIPAL Report generated 2 5 2020 9:53:24AM Amounts Due as of: 2,5,2020 GL Account GL Account Name Type GL Accoun# 1-30 days 31-50 days 61-9181-365 0 days '31-180 days da 1-5 years 5+years Total Duo � Number y Grand 5I$,277.62 $16:745.36 $7,745.61 $N:210.19 16:423.92 $193.297.82 $379.264.28 $05.50.83 Total AGED RECEIVABLES COMPARISON: BELOW 3-5-2019 Z ABOVE 2-5-2020 t GL Account GL Account Number �Gl- Account Name Type 1-30 days 31-60 days 61-90 days 91-180 days 181-365day1-5yea rs 54years Total Due Total receivables due based on length of time $8,358.03 $10,643.80 $1,765.43 $18,87.6.27 $37,616.43 5192,975.52 5383,848.08 Total Receivables Due: $ 654,943.56 PF PENDING TOWN REVENUE FOR ADJUDICATED CASES AS OF 3-5-2019 285904.55 PF LIABILITY- FUNDS TO BE DISBURSED TO OTHER AGENIES AS OF 3-5-2019 369039.01 THIS DOES NOT INCLUDE PRE -ADJUDICATED CASES WHERE THE CASE IS STILL PENDING AND FINES HAVE NOT BEEN ASSESSED. Fare Activity FARE Collections Report FOUNTAIN HILLS MUNICIPAL Report generated on: 2.6.12020 9:03:51 AM End Date: 2i5i2020 Criteria: Start Date; 9i1i2019 Court Type Cases Placed Total Amt Placed Amt Adjusted Decreasing Amt Adjusted Increasing Amt Collected Collection Rate CIVIL TRAFFIC AND 35 $21792.16 $1346.16 52286.38 51671.00 7.67% CRIMINAL 20 $24040.74 $4781.34 51696.55 0.00% Total 55 $45832.90 $6126.60 53982.93 51671.00 3.65% As of 2/5/2020 the Fountain Hills Municipal Court has 162 cases in FARE for a total of $153,048.82 TAX INTERCEPT PROGRAM (TIP) usually produces results between February and June. Tax season shows an increase in collection of past due money. Before taxes can be collected they must be added into FARE. The first TIP interception was accepted on 2/18/2020 in the amount of $1,220.29. Questions? ITEM 13. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): Review of current and future Capital Improvement Program projects Staff Summary (Background) Staff will present the progress of current projects, estimated year-end CIP fund balance, and proposed projects for future years. The Town Council will be requested to provide staff direction on future capital improvement projects. PowerPoint Inbox Finance Director (Originator) Town Attorney Town Manager Form Started By: David Pock Final Approval Date: 02/18/2020 Attachments Form Review Reviewed By David Pock Aaron D. Arnson Grady E. Miller Date 02/15/2020 12:44 PM 02/17/2020 07:39 AM 02/18/2020 11:20 AM Started On: 02/15/2020 12:07 PM Capital Improvement Program Grady Miller, Town Manager Justin T. Weldy, Public Works Director Rachael Goodwin, Community Services Director February 25, 2020 Capital Improvement Program This Special Session of the Town Council is to consider three areas of the Capital Improvement Program • Review of current FY2019-2020 Capital Improvement Projects • Review of proposed FY2020-2021 Capital Improvement Projects for consideration and direction. • Review of the future Capital Improvement Projects within the 5 year planning horizon for consideration and direction. Status of FY19-20 CIP Projects • D6055 - Civic Center Drainage Improvements $50,000 Moved to Streets Fund — ,n Progress; Comp FY20 • D6056 - Eagle Mountain Parkway Drainage Improvements $75,000 CIP - III Pr ogress; Cor 1 1 NIU LIvn FY20 • D6058 - Panorama Storm Drain Improvements $2,000,000 CIP — In Progress; Completion FY21 • F4029 - Civic Center Improvements $150,000 CIP - I, I Pi ogress; Completion FY20 • F4033 - Street Yard Sign Shop Building $150,000 HURF — In Progress; Completion FY20 3 Status of FY19-20 CIP Projects • F4034 - Solar Power Generating System $50,000 CIP -Cancelled • S6058-Shea Blvd Widening— Palisades to Technology Dr. $1301000-$40,OOOCIPI $90,000 Grant - m progress; Completion FY21 • S6015 - Fountain Hills Blvd Widening $100,000 CIP — Partially Complete; Awaiting Direction from ADOT • 56051- AOTF/La Montana Intersection Improvements $600,000 Downtown Strategy — In Progress; Com p FY20 T FY19/20 Capital Projects FY20 Beginning Capital Fund Balance Add: Revenues -to -Date Anticipated Revenues Subtract: Expend itu res-to-Date Anticipated Expenditures* FY20 Projected Ending Capital Fund Balance * Includes $100,000 of Panorama Drainage repairs $4,342,555 6221969 118031749 (478,257) (21348,924) $3,942,092 Proposed FY20/21 Capital Improvement Projects D6047 — Miscellaneous Drainage Improvements Project Cost: $50,000 Funding: CIP .-W "41 _ J�' % A. D6057 — Golden Eagle Impoundment Area Improvements Project Cost: $5001000 Funding: CIP }+. T II, . _ 'rp sy, :' .ins � ��• , _ R�,.�' � ~y��a41 2� - � . � •ALL .� ,� - �S �Ed'r Yr PTA•, r { � r Sears Homerov,n Stw { 'ParkvieiTap House1j .. �. 1'A _.a 1sign rts Gri11 f a�Cafe � Pizza 1 Manreps Firmm , �" nt in•Hi€I RrK'i 1 - 1 r To ��. y� • R Jnlair:'+ead 1 'N } IL 7 FcunSain Park World's Famous Fountain I ,r HiIlsLake r 'ai 'i44, te5 rooms a•, �� eteran's Memorial z a��,��-••,,// �R •!a. ..00 k+: j •gL•akesfd Reg rtel W,11 le •Srtas�o y t; D6059 — Pollina Brantley Detention Basin Project Cost: $1001000 Funding: CIP F4035 — HVAC Controllers 4 Project Cost: $70,000 Funding: CIP f; I I-j F4036 — Fire Alarm Control Panel Replacement IfIfIIIIIIIIIIIINI IIIIIIIIIIII111111UIIIIII Illllllllllf Illllil�llll IIIIlI!! Project Cost: $80,000 Funding: CIP 12 S6003 — Unpaved Alley Project 600 PHASE YEAR OOIFST, A F� j . WANP5 M �} t COMPLETED � I Y 11 OOMPLETED III COMPLETED IV FY2019 20 . Y FY2020-21 ^� Y z Tr DESERT l i VISYA PARK PAfiK Project Cost: $308,000 Funding: CIP 13 S6058 — Shea Blvd Widening n- Project Cost: $25,000 Funding: CIP S6061 — Sidewalk Infill Program Project Cost: $200,000 Funding: CIP S6062 — AOTF & Verde River Intersection Improvements Na Jlllilll IIIIII► =, _ _ _ - _ _ - _ _ Project Cost: $75,000 Funding: CIP S6063 — Palisades Median Landscape Improvements Project Cost: $1501000 Funding: CIP 17 S6064 — Desert Vista Park Crosswalk ti. R<<�y DESERT VISTA PARK SKATE �O PARK PROPOSED SIDEWALK vj 4 CROSSWALK SFR�rcF Rp �00 S,gC��R B L O �o �O Project Cost: $100,000 Funding: CIP T5005 — Palisades Boulevard and Eagle Ridge/Palomino Drive Traffic Signal Project Cost: $50,000 Funding: CIP 19 P3033 — Video Surveillance Cameras Project Cost: $50,000 Funding: CIP 6t: P3035 — Four Peaks Park Upgrades Project Cost: $260,000 Funding: CIP P3042 — Fountain Lighting Replacement Project Cost: $150, 000 Funding: CIP P3045 — Four Peaks Park Playground Parking lot At PLAYGROUND PARKING Project Cost: $65,000 Funding: CIP FY20/21 Capital Projects Total of Projects Presented Funding Sources Available: FY20 Projected Capital Fund Balance Downtown Strategy Fund Environmental Fund Total Funding Sources Projected FY21 Ending Capital Fund Balance $4,133.9000 $3,942,092 575,000 400,000 $4,917,092 $784,092 FY19/20 Vehicle Replacements Community Services (General Fund) Vehicle ID Department Description Type AMOUNT ORG 17 Parks John Deere 42 gator Gator or similar $ 12,734.50 4POP 3 Parks Sand Pro 3040 Small Utility Equipment $ 23,346.58 GEPOP 16 Parks Bobcat Bobcat or similar $ 13,795.70 GEPOP 18 Parks Kawasaki Mule Gator or similar $ 12,734.50 GEPOP 20 Parks Bobcat Bobcat or similar $ 13,795.70 DVOP Public Works (HURF) Vehicle ID Department Description Type AMOUNT ORG 135 STREETS Freightliner M2106 Heavy Duty Truck $ 120,000.00 STPAVE 151 STREETS Ford F-450 Pickup Medium Duty Truck A $ 48,423.82 STSIGN NEW STREETS Caterpillar Loader Tractor/Loader D $ 96,318.26 STPAVE NEW STREETS Broce Broom Street Sweeper B $ 75,000.00 STPAVE TOTALS $ 416,149.06 VRAD $ 76,406.98 VRHURF $ 339,742.08 Future Capital Improvement Projects FY21/22 Future Capital Projects • D6047 —Miscellaneous Drainage Improvements (continued) $50'?000 CIP • P3032 — Sport Field Lighting $1,,733,,000 Unfunded • P3033 —Video Surveillance Cameras (continued) $150,000 CIP • P3035 -Four Peaks Park Upgrades (continued) $300,000 CIP • P3036 - Desert Vista Skate Park Lights $75,?000 - $35,000 CIP, $40,,000 Grant FY21/22 Future Capital Projects —continued • P3038 - Fountain Lake Liner Replacement $5,,000,,000 Bond • P3039 - Fountain Lake Pump Replacement $1,,500,,000 Bond • P3040—Splash Pad Renovations $550,,000 Bond • S6061 — Sidewalk Infill Program (continued) $200,000 ciP FY21/22 Future Capital Projects —continued • S6063 — Palisades Median Landscape Improvements (continued) $150,000 CIP • S6064 —Desert Vista Crosswalk (continued) $180,000 CIP • T5005 -Traffic Signal —Palisades &Eagle Ridge/Palomino (continued) $500,000 FY22/23 Future Capital Projects • D6047 —Miscellaneous Drainage Improvements (continued) $50,000 CIP • P3044 — SunridgePark $200,,000 Development Fees • P3044—Sierra Madre Park $100,,000 Development Fees • S6061 — Sidewalk Infill Program (continued) $200,000 ciP FY23/24 Future Capital Projects • D6047 —Miscellaneous Drainage Improvements (continued) $50,000 CIP • P3041— Sunridge Park (continued) $3,500,000 - $500,,000 Development Fees; $3,,000,,000 Unfunded • P3044 —Sierra Madre Park (continued) $2,,500,,000 Unfunded • S6061 — Sidewalk Infill Program (continued) $100'r000 CIP 40 FY24/25 Future Capital Projects D6047 —Miscellaneous Drainage Improvements (continued) $50,000 CIP P3044 —Sierra Madre Park (continued) $2,,500,,000 Unfunded ITEM 14. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): Review of current and future Facilities Replacement Program projects Staff Summary (Background) Staff will review the progress of current projects and the proposed projects for future years. Council will be requested to provide staff direction on future projects. Attachments Facilities Replacement Form Review Inbox Reviewed By Date Finance Director (Originator) David Pock 02/15/2020 12:44 PM Town Attorney Aaron D. Arnson 02/17/2020 07:39 AM Town Manager Grady E. Miller 02/17/2020 12:36 PM Form Started By: David Pock Started On: 02/15/2020 12:39 PM Final Approval Date: 02/17/2020 Facilities Replacement Program Grady Miller, Town Manager Justin I Weldy, Public Works Director Raymond Rees, Facilities/Environmental Supervisor February 25, 2020 Facilities Replacement Program The following items were identified in the March 30, 2016 Capital Reserve Study FY19/20 In -Process Projects Fountain Park Irrigation Pump (roll-over) Golden Eagle Park Refurbish Irrigation System (roll-over) Tennis Court Screens and Fencing Four Peaks Park Refurbish Irrigation System (roll-over) $15, 000 $60,000 $22,000 $98,043 FY19/20 In -Process Projects (cont.) Town Hall Balcony repair $45,645 Council Chamber (Audio/Visual Replacement) $1257770 Lighting Retrofit $4,683 Community Center /Library -Museum /Physical Plant Exterior Painting $1907284 Library Carpeting & moisture remediation $127,789 Interior Painting $20,887 FY19/20 In -Process Projects (cont.) Fire Station 1&2 Vehicle Radio Replacement Fire Hose Replacement Total FY19/20 Estimated Year -End Balance $51,000 $28,982 $ 7903083 $112433595 Proposed FY20/21 Shoreline Repairs Fountain Park $38,200 Desert Vista Park Bench/Table Replacement Shade Screen Replacement Exterior Paint/Coating Interior Painting $16,200 $13,500 Town Hall $37,800 $62,350 Proposed FY20/21 Carpet Replacement (continued) Town Hall $95,400 Community Center Carpet/Moisture Remediation $163,00 Fire Stations Personal Radio Replacement $1217155 AED Replacement $41,200 Proposed FY20/21 (continued) Palisades/Shea Fountain Pump Replacement Proposed Total FY20/21 Estimated Year -End Balance $30,000 $ 6183805 $191249790 ITEM 15. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director DISCUSSION ITEM (Agenda Language): Review of fund balance classifications, current reserve policies, and suggested updates Staff Summary (Background) The Town's current financial reserve policies were last updated and adopted in April 2017. Fund balance classifications and the effect of the current policies on the Town's financial condition will be reviewed. In addition, Council direction to staff will be requested regarding proposed revisions to the policies. Policy Financial Reserves Inbox Finance Director (Originator) Town Attorney Town Manager Form Started By: David Pock Final Approval Date: 02/17/2020 Attachments Form Review Reviewed By David Pock Aaron D. Arnson Grady E. Miller Date 02/15/2020 12:43 PM 02/17/2020 07:37 AM 02/17/2020 12:02 PM Started On: 02/12/2020 04:47 PM Council Policy on Financial Reserves Grady Miller, Town Manager David Pock, Finance Director February 25, 2020 Fund Balance Classifications • Nonspendable —Inventories, Pre -paid Items • Restricted: Externally imposed — Highway User Revenue Fund, Debt Service, Grants • Committed: Formal action of Town Council — Capital Project Fund, Economic Dev, Public Art Assigned: According to Policy and Budget — Environmental Fund, Vehicle Replacement Fund • Unassigned: Other Budgeted Expenditures Reserve Policy — Rainy Day Fund • "The Town will maintain a Committed fund balance in the General Fund of 20% of the average actual General Fund revenues for the preceding five years, indicating stable fiscal policies:' • As of 6/30/2019, the Rainy Day fund is fully - funded with a balance of $3,086,699 • Rainy Day fund balance can only be used in specific situations and must have approval by at least 2/3 of the entire Town Council Reserve Policy — Assigned Fund Balance • "The Town will maintain an Assigned fund balance in the General Fund of a minimum 10% of the average actual General Fund revenues for the preceding five years:' • As of 6/30/2019, the Assigned fund balance in the General Fund was $11458,879 • To be used for pay-as-you-go capital expenditures, vehicle or equipment replacement, pre -paying debt, or other non- recurring expenditures Reserve Policy — Transfer of Excess Revenues • "By Resolution, the Town Council has allocated General Fund surplus funds to be..." — Transferred to the Rainy Day Fund — Transferred to Assigned Fund Balance — Used towards pay-as-you-go capital expenditures — Used to pre -pay or defease existing Town debt • "Any excess revenues collected over budgeted and unexpended appropriations not needed to meet fund balance requirements will be transferred to the Capital Projects Fund:' Unintended Consequences • Contrary to Government Finance Officers Association (GFOA) best practices, existing policy does not establish a minimum for Unassigned fund balance • The result has been a decrease in the amount of resources available for the budgeted day- to-day operations of the Town • Possibility exists that the Town would have to report a negative Unassigned fund balance at the end of a reporting period Proposed Revisions • No change to Rainy Day Fund requirements • Remove requirement for 10% Assigned fund balance in General Fund since it is redundant — Vehicle Replacement Fund &Facilities Replacement Fund have a total of $3.3M Assigned fund balance as of 12/31/2019 • Establish a minimum Unassigned fund balance requirement per GFOA best practices • Clarify conditions necessary to transfer excess revenues to Capital Projects Fund Staff Next Steps • Revise policies related to Assigned and Unassigned fund balance requirements • Add policy section related to Vehicle and Facilities Replacement Funds • Add a minimum Unassigned fund balance requirement of 20% of average actual General Fund revenues for the preceding five years • Present revised policies to Town Council for adoption Questions? ITEM 16. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Community Services Prepared by: Rachael Goodwin, Community Services Director Staff Contact Information: Rachael Goodwin, Community Services Director DISCUSSION ITEM (Agenda Language): Discussion regarding a proposed Fountain Park Infrastructure and Maintenance Assessment Staff Summary (Background) The lake, fountain, and supporting infrastructure at Fountain Park are in need of evaluation in order to prepare for replacement, maintenance and/or upgrades. Much of the infrastructure is original to the fountain's installation in 1970, including the electrical and piping systems. An assessment of the current condition will allow the town to adequately plan, prioritize, and identify funding for the upcoming repairs and replacements, including the lake liner. At the Town Council workshop on February 25, 2020, staff will present an approach in identifying and estimating the infrastructure needs, related costs, and logistics in addressing the scale and scope of the overall project. Attachments Fountain Park Improvements Form Review Inbox Reviewed By Date Town Manager Grady E. Miller 02/18/2020 08:53 AM Form Started By: Rachael Goodwin Started On: 02/13/2020 09:28 AM Final Approval Date: 02/18/2020 Proposed Infrastructure Assessment and Maintenance for Fountain Park Grady Miller, Town Manager Rachael Goodwin, Community Services Director February 25, 2020 • s The Fountain Structure, overhead The Fountain Structure, up -close The Fountain Structure, up -close f VA • - - s'r� � �': - ++ y�-�.�• -ten — _ Nh �' - s-- - �. is .�.. - - �r ,: _a.^yap �,��..�.•.. �r� �- � ;q� 4 �. _ s.. + q�ir.""'r_ ..�.� �.-fir• .�• • ^�^ . � ' ._ � _, ■ • '�h. dim � -.� �l " _ � !_ � �..a mom.. gyp: - �... a•se"i'_ �a� �.�:�: - _.- .."`"•y' '*.':. _ _. ?",. �,;� ,gyp •�`,�� '. j'� jr y rftw'qm r .M1 VOL %t The Fountain, Liner, and Lake • The Fountain Structure — Turns 50 years old in 2020 — Concrete ribs/ "lily" structure evaluation — Unknown condition of nozzle, underground pipe system, etc. • The Lake Water — 30.8 Acres and 100,623,600 gallons — Aeration system added 2017, installed to reduce algae growth and odor issues — Closed system- no water output other than irrigation and evaporation, results in continually Increased salinity (600ppm) — Ecosystem for fish, birds, other wildlife. (Bald Eagles) The Fountain, Liner, and Lake • The Pumps (in water) and Motors (above grade) — Three, 600hp motors and turbine pumps — All three motors have been rebuilt within last 15 years — Annual PM and thermal testing, mechanical heart of the system — Pressure testing and technology comparisons needed • The Electrical — Original to the fountain system — Annual PM and thermal testing performed — Consideration of a VFD system — Arc Flash safety analysis and determination needed • The Irrigation — Single loop system: long watering window (10-11 hours) — Impacts on grass quality and plant life — Consistent clogging- advanced filtration consideration — Water storage option with FHSD and AWT facility The Fountain, Liner, and Lake • The Lake Liner — Liner life expectancy is 20 to 30 years, assumes replacement will be needed between 2020 and 2030 — Current condition is unknown. Multiple testing options including evaporation testing or diver inspections. Patch testing not a feasible option — 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 An Engineering Assessment • Condition, Priority, and Costs — Evaluate and assess the current conditions in all areas including mechanical, electrical, structural, and environmental — Based on findings, identify priorities for maintenance, replacement, upgrades, etc. — Emphasis on immediate mitigation of urgent safety or security issues to avoid catastrophic failure — Develop cost estimates for associated recommendations — Future steps: help identify viable timeline and steps to implementation and project management of the liner removal and replacement ITEM 17. Meeting Date: 02/25/2020 TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: David Trimble, Deputy Town Manager/Admin. Serv. Dir. Staff Contact Information: David Trimble, Deputy Town Manager/Admin. Serv. Dir. DISCUSSION ITEM (Agenda Language): Discussion of Arizona State Retirement (ASRS) Staff Summary (Background) Currently, full-time Town employees are eligible and required to participate in the 401A defined contribution retirement plan that is administered by the non-profit, International City/County Management Association Retirement Corporation (ICMA-RC). Participating employees contribute 11% of their salaries to the 401A plan and the Town matches this amount, also contributing 11%. Early after incorporation, the Town opted out of the Federal Social Security system, so the Town does not withhold or contribute the 6.2% of employee salaries that would otherwise be required by the Social Security system. The Arizona State Retirement System (ASRS) is a defined benefit pension plan that is well funded and managed. Since most Arizona Cities and Towns participate in the Arizona State Retirement System (ASRS), job -seekers assume that the Town of Fountain Hills is also a member. The Town is at a disadvantage in recruiting employees because the Town is not an ASRS member. The Town would work with ASRS staff on employee outreach and administration, with a possible transition over the course of the next twelve to twenty-four months. The cost to participate in the Arizona State Retirement System is nearly the same as the town's 401A system and includes a Long Term Disability benefit, group medical insurance and monthly stipend for retirees. Please see the attachment for more information. ASRS PowerPoint Inbox Reviewed By Finance Director David Pock Town Attorney Aaron D. Arnson Town Manager Grady E. Miller Form Started By: David Trimble Final Approval Date: 02/17/2020 Attachments Form Review Date 02/15/2020 09:05 AM 02/17/2020 07:36 AM 02/17/2020 12:01 PM Started On: 02/12/2020 04:26 PM Employee Retirement Plan: Consideration of Arizona State Retirement System (ASRS) Grady Miller, Town Manager Dave Trimble, Deputy Town Manager / Administrative Services Director February 25, 2020 Background • Full -Time staff (40 hours) are eligible and required to participate in town's 401A, defined contribution plan • Full -Time staff contribute 11% to 401A & Town matches • Town opted out of Social Security for 401A-eligible employees (early in Town's history) • Town does not withhold or contribute to Social Security on behalf of 401A-eligible employees • Social Security rate is currently set at 6.2% • Town withholds & contributes Social Security for Part - Time employees only • Town is at a disadvantage in recruiting experienced staff because job seekers assume the Town is in the ASRS Arizona State Retirement System • Defined Benefit Plan with over 500,000 members • 79 of 91 Cities & Towns; All Counties; All State Employees; School Districts; University Employees • Irrevocable Membership • Includes Long -Term Disability benefit • Includes retiree group medical insurance & monthly stipend • Contribution rates actuarily set • Regular part-time employees are members (20/20) • Statewide Executive Management • Board appointed by Governor • Well -funded pension with highly rated professional award winning management Arizona State Retirement System ASRS - $ Budget NEAR TERM IMPACT EXAMPLE • Contribution Rate = 12.22% • Increase of $46,561 to be in ASRS (FY 20-21) over current budget FUTURE IMPACT • Projected increase = $66,998 Increase to be in ASRS over current budget (FY 22-23 @ 12.73% Cont. Rate) • Contribution rates expected to increase to a maximum of 12.73% in FY 2023 & then gradually decrease*. (These numbers include Long -Term Disability Insurance Comparison + Required Part -Time Employees; and assumes no Social Security contributions for all ASRS members including Part -Time members) *According to a Joint Legislative Budget Committee (JLBC) report from FY 2020 Assumptions / Calculations Near Term Example: 12.22% Contribution Rate (12.22% is the actual rate for FY 20-2021): ASRS Comparison Calc including assumed o 12.22/0 contribution rate: ASRS Retirement Budget; without 20/20 part- 435,940.91 timers Additional ASRS $ Budget for adding 20/20 Part- Time Employees (15 employees) 53,743.57 Total New Retirement Budget (ASRS) 489,684.48 Current Retirement Budget 401a (11%) (400,757.41) Current Social Security Budget for 20/20 Part - Time Employees that we assume will go away (27,267.60) with ASRS Current Long -Term Disability (LTD) Insurance (15,098.44) Premium that will go away with ASRS Total Impact $ Increase: ASRS $46,561.03 s. 401A Assumptions / Calculations Worst -Case Example: 12.73% Contribution Rate: ASRS Comparison Calc including assumed 12.73% contribution rate: ASRS Retirement Budget; without 20/20 part- 454,134.90 timers Additional ASRS $ Budget for adding 20/20 Part- ime Employees (15 employees) 55,986.56 Total New Retirement Budget (ASRS) 510,121.46 Current Retirement Budget 401a (11%) (400,757.41) Current Social Security Budget for 20/20 Part - Time Employees that we assume will go away (27,267.60) ith ASRS urrent Long -Term Disability (LTD) Insurance (15,098.44) Premium that will go away with ASRS Total Impact $ Increase: ASRS $66,998.01 s. 401A ASRS Membership9 : Cities — Towns • 79 of 91 are members • 12 non-members listed below: • Phoenix — ASRS reciprocal benefits • Tucson — ASRS reciprocal benefits • Prescott Valley • Bullhead City • Colorado City • Dewey Humboldt • Huachuca City • Jerome • Mammoth • Quartzsite • Winkelman 0 Fountain Hills ITEM 18. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager DISCUSSION ITEM (Agenda Language): Discussion of Proposition 500 and its impact on Fountain Hills and the region Staff Summary (Background) Proposition 400 was approved by voters in 2004 which raised the sales tax rate by half a cent in Maricopa County for the purpose of funding freeways, regional and local street transportation projects, and transit. Under Proposition 400, the Town of Fountain Hills was approved for receiving transportation funding for widening Shea Blvd. from Palisades to the east town limit. Due to a variety of factors, only portions of the widening have been completed. The Town Council will be reviewing the design concept report in the near future for the remainder of the Shea Blvd. widening improvements that will include cost estimates. While Proposition 400 will be expiring at the end of 2025, the region, led by the Maricopa Association of Governments (MAG), is planning on asking voters in the very near future to seek approval of Proposition 500 which will extend the sales tax for transportation and transit -related projects. Earlier in the month, MAG initiated a Call for Projects to be considered in the Regional Transportation Plan. The Town of Fountain Hills along with other cities, towns, and agencies will be tasked to identify proposed transportation projects and submit them to MAG by March 31, 2020. MAG staff will evaluate the proposed projects based on a number of factors such as cost, air quality, regional aspects, congestion mitigation, and other criteria to assist in ranking the projects for consideration in the twenty-year transportation program. Town staff met earlier in the month to discuss potential transportation projects to submit to MAG for possible inclusion in the Regional Transportation Plan. The proposed transportation projects are as follows: • Completion of Shea Blvd. Widening from Palisades to Technology Drive on the south side; and widening of Shea Blvd. from Fountain Hills Blvd. to Technology on the north side • Fountain Hills Blvd. Widening Improvements from Shea to Segundo and other improvements from Segundo to north town limits Due to the importance of this topic, Transportation Planning Program Manager Audra Koester Thomas will be speaking before the Town Council at the March 3, 2020, Town Council meeting. Attachments Proposition 400/500 Background Form Review Form Started By: Grady E. Miller Started On: 02/18/2020 09:32 AM Final Approval Date: 02/18/2020 BALLOT FORMAT / SAMPLE BALLOT GENERAL ELECTION NOVEMBER 2, 2004 MARICCPA COUNTY, ARIZONA RELATING TO COUNTY TRANSPORTATION EXCISE (SALES) TAXES Do you favor the continuation of a county transaction privilege (sales) tax for regional transportation purposes in Maricopa County? A "YES" vote has the effect of continuing the transaction privilege (sales) tax in Maricopa County for twenty years to provide funding for transportation projects as contained in the regional transportation plan. A "NO" vote has the effect of rejecting the transaction privilege (sales) tax for transportation purposes in Maricopa County. YES NO Prop 400 - Life Cycle Programs • Life cycle solution for the budgetary requirement • Arterial Life Cycle Program (ALCP): • Managed by MAG; implemented by local agencies • Freeway Life Cycle Program (FLCP): • Managed and implemented by ADOT; priorities and funding set by MAG • Transit Life Cycle Program (TLCP): • Managed and implemented by Valley Metro r% w nn rm 10 Formalized by Statute (A.R.S. 42-6105) What's next? • Continue to deliver the remaining projects identified in Proposition 400 • Continuing need for transportation investments in the MAG region • Proposition 400 set to expire on December 31, 2025 • MAG has initiated extension efforts; top focus of the agency for the next two years • MAG Conducted a Values Survey in the spring of 2019 • Support needed from all to find regional solutions for the next generation of system users 2019 2020 2021 Enabling Legislation 2022 Development of Regional Transportation Plan Air Quality Conformity M Request ballot placement Tentative Election Target November 2022 2023 2024 Backup Date for Election November 2024 2025 Prop 400 Collections Expire December 31, 2025 Continuous public and stakeholder engagement 0 2019, All Rights Reserved. 5 Mom, State of the Practice and Peer Region Analysis Visioning Existing and Future Needs Assessment • Targets, performance • Evaluative framework • Revenue forecasts • Needs assessment Scenario Planning Public and Stakeholder Engagement Draft subject to modification Using vision and evaluation framework to test varying futures/alternatives Priority Strategies Outline portfolio of long range, high performance improvements 2019, All Rights Reserved. 6 �� Priority Strategies Plan Development and Refinement • Construction of long-range multimodal vision (RTP "Imagine") • Construction of individual programs with near -term investments and management strategy framework Public and Stakeholder Engagement Draft subject to modification Board of Supervisor Air Quality Conformity Process Ballot Placement 0 2019, All Rights Reserved. 7 �� ITEM 19. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 02/25/2020 Meeting Type: Town Council Retreat Agenda Type: Council Discussion Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager DISCUSSION ITEM (Agenda Language): Review and Consider Changes to Town Council Prioritization Process for Projects Contained in the Capital Improvement Program Staff Summary (Background) Recently, concerns have been raised by Councilmember Alan Magazine regarding the prioritization of projects contained in the town's capital improvement program. This came up during Council discussion and consideration of awarding a contract for undertaking a project in the FY 19-20 Capital Improvement Program. The concern is that if the town's finances change or other conditions predicate a need to change course, that the Town Council has the ability to shift its priorities. This may involve cancellation of a capital improvement project, deferment, or other modification due to the change in conditions. Councilmember Magazine has suggested that the Town Council review the projects in the Capital Improvement Program on a quarterly basis to ensure that the projects are still relevant and to allow changes if circumstances or priorities may have changed. The point of this agenda item is to discuss this in further detail and determine if there is a consensus on this concern and if so, what would be the best way to address it. Form Review Form Started By: Grady E. Miller Started On: 02/18/2020 09:05 AM Final Approval Date: 02/18/2020