HomeMy WebLinkAbout2001.1115.TCREM.PacketNOTICE OF REGULAR
AND EXECUTIVE SESSION
OF THE
FOUNTAIN HILLS TOWN COUNCIL
Mayor Morgan
Councilman McNeill
Councilman Wyman
Councilwoman Fraverd
Councilwoman Hutcheson
Vice Mayor Kavanagh
Councilwoman Ralphe
WHEN: THURSDAY, NOVEMBER 15, 2001
TIME: 5:00 P.M. (The Council will meet in executive session from 5:00
to 6:30. The regular session will begin promptly at 6:30 p.m.)
WHERE: TOWN HALL COUNCIL CHAMBERS
16836 E. Palisades, Building B
(W RULES FOR ADDRESSING THE COUNCIL — ADOPTED 1118190
It is the Council's desire to hear public comment on agenda items. As it is important to maintain order during the meeting, please adhere
to the following rules of order if you wish to speak:
1.) All citizens wishing to speak must first be recognized by the Mayor.
2.) The Mayor will not call for public comment on an item until after a motion has been made and seconded and the Council has had
adequate opportunity to discuss the item.
3.) Please stand, approach the microphone and state your name and address after being called on to speak.
4.) All comments must be directed to the Mayor.
5.) TIME LIMIT — THREE (3) MINUTES PER PERSON PER ITEM.
6.) Statements should not be repetitive.
7.) Persons or groups wishing to make longer presentations should see the Town Clerk prior to the meeting.
• CALL TO ORDER — Mayor Morgan
• ROLL CALL
1.) Pursuant to A.R.S. §38-431.03.A.3. AND A.R.S. §38-431.03.A.4., VOTE TO GO INTO EXECUTIVE
SESSION for discussion or consultation for legal advice with the attorney or attorneys of the public body
(specifically regarding the Fire District); AND for discussion or consultation with the attorneys of the public body in
order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that
are the subject of negotiations, in pending or contemplated litigation, or in settlement discussions conducted in order
to avoid or resolve litigation (specifically regarding the Fire District); respectively.
2.) RETURN TO REGULAR SESSION
• CALL TO ORDER AND PLEDGE TO THE FLAG — Mayor Morgan
• INVOCATION — Councilwoman Susan Ralphe
• ROLL CALL
Town of Fountain Hills Page 1 of 3 Last printed 11/14/01 2:52 PM
Consent Agenda:
All items listed with an asterisk (*) are considered to be routine, non -controversial matters and will be enacted by one
motion and one roll call vote of the Council. All motions and subsequent approvals of consent items will include all
recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a
Councilmember or member of the public so requests. If a Councilmember or member of the public wishes to discuss an
item on the consent agenda, they may request so prior to the motion to accept the consent agenda. The item will be
removed from the Consent Agenda and considered in its normal sequence on the agenda.
*1.) Consideration of APPROVING THE MEETING MINUTES of October 30, 31 and November 1, 2001.
*2.) Consideration of RESOLUTION 2001-49 designating the election date and purpose of election; designating the
deadline for voter registration; and designating the place and the last date for candidates to file nomination papers.
*3.) Consideration of the PERMANENT EXTENSION OF PREMISE/PATIO PERMIT submitted by James
Myczek for Grapeables located at 12645 North Saguaro Boulevard.
*4.) Consideration of the SPECIAL EVENT LIQUOR LICENSE submitted by Kenneth Bowman for the
American Legion located at 16837 East Parkview. The license will be used for a fund raising event scheduled
for Saturday, December 1, 2001 from 9:00 a.m. to 12:00 p.m.
*5.) Consideration of the PRELIMINARY AND FINAL PLAT for "The Alta Montana Vista Villas
Condominiums", a 12-unit condominium project on an approximately 48,169 square foot lot located at 11806
Saguaro Boulevard, aka Plat 201, Block 3, Lot 9A, Case Number S2001-28.
*6.) Consideration of the FINAL REPLAT for "Final Plat of Lot 2A, Block 3, Plat 208", a lot join request to remove
the common lot line between Lots 2 & 3, Block 3, Final Plat 208, Case Number S2001-29.
*7.) Consideration of AWARDING THE BID for the installation and removal of holiday lighting on the Avenue of
the Fountains to Holiday Lights Decorating in the amount of $23,940.
8.) UPDATE by Kristen Polin of EVAC on the Town of Fountain Hills Youth and Family Support Program,
including substance abuse prevention and outreach services.
9.) UPDATE on the Fire District. Town Attorney Bill Farrell will update the Council on the legal aspects of the
Town's request to the Maricopa County Attorney for a Writ of Quo Warranto as well as other legal issues. No
action is anticipated to be taken by the Council.
10.) Consideration of AMENDMENTS TO THE LEASE for Town Hall. Staff will review the discussions between
Council member Wyman and the landlord and make a recommendation that Council agree to the financial terms
and give staff direction regarding insurance and indemnification terms and that the Mayor be authorized to
execute a lease agreement when the insurance and indemnification terms have been satisfied.
11.) PRESENTATION by Cox Communication representatives regarding Cox's accelerated upgrade of service in
Fountain Hills.
12.) Consideration of RESOLUTION 2001-50, declaring as a public record that certain document filed with the
Town Clerk and entitled "The 2001 Amendments to the Tax Code of the Town of Fountain Hills."
13.) PUBLIC HEARING on ORDINANCE 01-21 relating to the Privilege License Tax; adopting "The 2001
Amendments to the Tax Code of the Town of Fountain Hills" by reference; establishing an effective date;
providing for severability and providing penalties for violations.
14.) Consideration of ORDINANCE 01-21 relating to the Privilege License Tax; adopting "The 2001 Amendments
to the Tax Code of the Town of Fountain Hills" by reference; establishing an effective date; providing for
severability and providing penalties for violations.
Town of Fountain Hills Page 2 of 3 Last printed 11/14/01 2:52 PM
15.) Consideration of the PRELIMINARY PLAT for Eagle Mountain, Parcel 10/11, Tract G, located in the Eagle
Mountain subdivision south of Shea Boulevard, Case Number S2001-27. This item was continued from the
November 1 Council meeting.
16.) CALL TO THE PUBLIC.
Pursuant to A.R.S. §38-431-01(G), public comment is permitted (not required) on matters not listed on the agenda but must be within the jurisdiction of
the Council. All comment is "subject to reasonable time, space and manner restrictions" and the Council will not discuss or take legal action on
matters raised during call to the public unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the
public, individual Council members may respond to criticism, ask staff to review a matter or ask that a matter be put on a future agenda.
17.) ADJOURNMENT.
DATED this 13`h day of November, 2001
,.. (i� dr,�,
Cassie B. Hansen, Director of Administration/Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with
disabilities. Please call 837-2003 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the
meeting to request a reasonable accommodation to participate in this meeting or to obtain
agenda information in large print format.
Supporting documentation and staff reports famished the council with this agenda are available for review in the Clerk's office.
Town of Fountain Hills Page 3 of 3 Last printed 11/14/01 2:52 PM
MEMORANDUM
TO: HONORABLE MAYOR MORGAN AND
TOWN COUNCILMEMBERS
FROM: WILLIAM E. FARRELL ACTING TOWN MANAGER6 "
DATE: NOVEMBER 9, 2001
RE: COUNCIL MEETING AGENDA ITEMS
Agenda items number 9 and 10 are not included with this packet. They will be
distributed to you on Tuesday, November 1P
L01
Interoffice Memo
To: HONORABLE MAYOR AND TOWN COUNCIL
From: CASSIE HANSEN, DIRECTOR OF ADMINISTRATION
Date: 11/9/2001
Re: AGENDA ITEM #2 — CALLING THE ELECTION
AGENDA ITEM #3 — GRAPEABLES PERMANENT EXTENSION OF PREMISE
AGENDA ITEM #4 — AMERICAN LEGION SPECIAL EVENT LIQUOR LICENSE
AGENDA ITEM #8 — DRUG PROGRAM UPDATE
AGENDA ITEM #2 — RESOLUTION 2001-49 CALLING THE ELECTION
As you all know, we are entering the primary election cycle. Candidate packets will be available on
Tuesday, November 13 and are due December 12. Although state law no longer requires that a council
call an election by resolution, staff continues to use this formal notification rather than a public notice.
This routine resolution provides notice to the public of the election dates and purpose, the deadline for
voter registration, and the location and deadline for candidates to file their nomination papers. Staff
recommends approval.
AGENDA ITEM #3 — GRAPEABLES PERMANENT EXTENSION OF PREMISE
James Myczek is requesting to permanently extend his Class 7 liquor license for Grapeables to an adjacent
area on the patio east of his establishment. There were a number of issues regarding this request
including permission from the property owner, square footages, and security. Community Development
Director Jeff Valder reviewed the request and originally recommended denial unless certain stipulations
were met. His stipulations, dealing with the square feet usable floor area for restaurants and above
ground electrical boxes, have been satisfied by the owner, Victoria Properties. Please see the attached
memo from Jeff and Victoria Properties. Marshal Gendler worked with the Liquor Department regarding
liquor law issues. In the documentation is an inspection report from the liquor department with a
handwritten notation at the bottom stating, "Spoke about patio addition — OK. Everything looks good".
Steve and I both expressed concern that the diagram of the patio area did not indicate a solid enclosure.
State liquor law states that the license holder is responsible to contain the alcohol and does not specifically
require a contiguous enclosure. I spoke to the liquor agent that inspected the site regarding this issue.
He stated that although the law does not dictate a contiguous enclosure, they prefer it and would totally
support the Town's stricter regulations. Steve has included this stipulation in his staff report. Please see
Steve's attached memo that addresses this issue in greater detail.
Page 1 of 2 November 15, 2001 Agenda Items Last printed 11/9/2001 9:35 AM
11/9/2001
November 9, 2001
Based on the written permission from the property owner, the compliance with the Shared Parking
tv Agreement, and compliance with applicable state laws, staff recommends approval of the
permanent extension of premise with the stipulations regarding the enclosure, including the
procurement of a building permit for the fence as necessary.
AGENDA ITEM #4 — AMERICAN LEGION SPECIAL EVENT LIQUOR LICENSE
The American Legion has requested a special event liquor license for Saturday, December 1, 2001 from
9:00 a.m. to 12:00 p.m. The license will be for a fundraising event to be held at the Legion's new building
located at 16837 E. Parkview. Marshal Gendler has completed his investigation and review and forwards a
favorable recommendation. Please see the attached memo from Steve. Based on statutory compliance,
staff recommends approval.
AGENDA ITEM #8 — UPDATE BY KRISTEN GENOVESE ON THE TOWN'S FAMILY SUPPORT AND
SUBSTANCE ABUSE PROGRAM
The Town -sponsored Family Support and Substance Abuse Program continues to evolve in an attempt to
meet the needs of the community. Kristen Genovese from EVAC, the "gate keeper" of the program, will
provide the Council with an update on some of the exciting advances she has made in the program
through a new level of involvement with the schools. In August, staff arranged for Kristen to address the
School Board and discuss the program, explain how it has evolved over the last few years, and outline its
future goals. The Board was enthused with what they heard and as a result, Kristen is achieving greater
access to the teachers and students.
Further into your packet, you will find a copy of the "joint effort" brochure that explains the service
provided by the Family Support Program. It is clipped to a flyer regarding the rescheduled workshop on
substance abuse prevention. This community workshop, originally scheduled for September 11, will take
place Wednesday night, November 14 at 6:30 p.m. at the Community Center. Kristen will preside over the
workshop and combine an informative presentation and open dialog with the audience. The workshop will
be video taped for Channel 11. Kristen will include a report on the workshop in her update to the Council.
We are very pleased with the positive direction this program is going. It has taken a lot of trial and error
to find the right combination of services and programs but I believe we are closer now than at any time in
the past.
As always, if you have any questions, please do not hesitate to contact me.
C`.
2
RESOLUTION NO.2001-49
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, DESIGNATING THE ELECTION DATE AND
PURPOSE OF ELECTION; DESIGNATING THE DEADLINE FOR VOTER
REGISTRATION; AND DESIGNATING THE PLACE AND THE LAST DATE
FOR CANDIDATES TO FILE NOMINATION PAPERS.
BE IT RESOLVED, by the Mayor and Common Council of the Town of Fountain Hills, Arizona, as
follows:
That March 12, 2002 has been set as the time for holding the Primary Election in the Town of Fountain
Hills for the purpose of nominating candidates for the offices of councilmember and mayor whose names shall
appear on the ballot at the General Election to be held on May 21, 2002. Any candidate receiving a majority of all
the votes cast at the Primary Election will be declared elected without running at the General Election.
County registration and voting lists will be used for the municipal election. In order to be qualified to vote
at the primary, individuals must be registered by February 11, 2002.
Candidates seeking municipal office may obtain nomination papers and other materials that must be filed
by candidates at the Fountain Hills Town Hall beginning November 13, 2001. Candidates must file nomination
papers and other nominating forms by 5:00 p.m. on December 12, 2001 at the Fountain Hills Town Hall in order
for their names to appear on the Primary Election ballot.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, this 15th
day of November, 2001.
ATTY,ST TO:
14��b d'.-�
Cassie B. Hansen, Director of Admin./Town Clerk
REVIEWEP BY AND APPROVE AS TO FORM:
William E. Farrell, Acting Town Manager own Attorney
U
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0 9
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•9��t�at is �,tioo
Mr. James Myczek
Grapeables Fine Wines
12645 North Saguaro Boulevard
Fountain Hills, AZ 85268
RE: Permit Stipulations
Dear Mr. Myczek:
Town of FOUNTAIN HILLS
November 17, 2001
I am pleased to inform you that your application for a permanent extension of premises/patio
permit was unanimously approved by the Town Council at their regularly scheduled meeting on
Thursday, November 15, 2001. However, the application was approved with stipulations
regarding the patio enclosure. I am enclosing the staff reports written by Marshal Steve Gendler
and myself that accompanied your application in the Council packets. The Council approved the
application based on the provisions included in these memos.
The primary stipulation requires that a fence totally surround the patio to enclose the area where
alcohol will be served. I spoke to Adam Palubeskie who inspected your premise and originally
indicated that the patio was "OK". While he said that state statute does not require a fence, the
liquor department prefers an enclosure and would support the Town's more restrictive request.
Your diagram shows a combination of furniture, planters and posts to define the area. The
problem is the accessible spaces left between these items. It will be necessary to use a fencing
material such as wrought iron that is at least 2' 8" high to clearly define and separate the area from
the rest of the patio and the park. Staff stipulated that the fence be acceptable to the management
company and the Building Safety Department. Marshal Gendler would be happy to review the
patio area and fencing stipulations with you.
Thank you for your cooperation and efforts to make the changes to Grapeables both safe and
pleasant for the public.
Cassie Hansen
Director of Administration/Town Clerk
Cc: Bill Farrell, Acting Town Manager/Town Attorney
Steve Gendler, Public Safety Director
Adam Palubeskie, Arizona Department of Liquor Control Agent
16836 East Palisades Boulevard, Building C - P.O. Box 17958 - Fountain Hills, Arizona 85269 - (480) 837-2003 - FAX: (480) 837-3145
C•7
Interoffice Memo
To: HONORABLE MAYOR AND TOWN COUNCIL
From: CASSIE HANSEN, DIRECTOR OF ADMINISTRATIO
Date: 11 / 17/ 2001
Re: AGENDA ITEM #3 — GRAPEABLES PERMANENT EXTENSION OF PREMISE
AGENDA ITEM #3 — GRAPEABLES PERMANENT EXTENSION OF PREMISE
James Myczek is requesting to permanently extend his Class 7 liquor license for Grapeables to an adjacent
area on the patio east of his establishment. There were a number of issues regarding this request
including permission from the property owner, square footages, and security. Community Development
Director Jeff Valder reviewed the request and originally recommended denial unless certain stipulations
were met. His stipulations, dealing with the square feet usable floor area for restaurants and above
ground electrical boxes, have been satisfied by the owner, Victoria Properties. Please see the attached
memo from Jeff and Victoria Properties. Marshal Gendler worked with the Liquor Department regarding
liquor law issues. In the documentation is an inspection report from the liquor department with a
handwritten notation at the bottom stating, "Spoke about patio addition — OK. Everything looks good".
Steve and I both expressed concern that the diagram of the patio area did not indicate a solid enclosure.
State liquor law states that the license holder is responsible to contain the alcohol and does not specifically
require a contiguous enclosure. I spoke to the liquor agent that inspected the site regarding this issue.
He stated that although the law does not dictate a contiguous enclosure, they prefer it and would totally
support the Town's stricter regulations. Steve has included this stipulation in his staff report. Please see
Steve's attached memo that addresses this issue in greater detail.
Based on the written permission from the property owner, the compliance with the Shared Parking
Agreement, and compliance with applicable state laws, staff recommends approval of the
permanent extension of premise with the stipulations regarding the enclosure, including the
procurement of a building permit for the fence as necessary.
Page 1 of 1 November 15, 2001 Agenda Items Last printed 11/17/2001 2:48 PM
11 /17/2001
To: Cassie Hansen, Administration Director
From: Steve Gendler, Public Safety Director
Date: 11 /8/2001
Re: Extension of premises permit — Grapeables Fine Wines
The purpose of this memorandum is to provide a conditional endorsement of the attached application
from Grapeables Fine Wines. They are requesting a permanent extension of premises to allow liquor
sales and consumption on the common use patio area adjacent to their store. It is my understanding
that this item will be on the Council agenda for November 15"
Background: Grapeables Fine wines is located at 12645 Saguaro, Suite #9, in the Plaza Fountainside
center.
They have a valid class 7 liquor license, approved by the Council on August 3, 2000, which allows on
premise sale of beer and wine under ARS 4-207A.
Our records indicate that there have been no violations or liquor related complaints. In addition, the
license holder, James Myczek, has been exemplary in attempting to comply with liquor laws and
regulations.
Request: Mr. Myczek is attempting to extend his premises to the common use patio area directly
behind his store. His intention is to provide customers with outdoor seating to make best use of the
Fountain Park location. His request is for a permanent extension of premises so as not to have to
request a temporary extension of premises on separate occasions.
The applicant has submitted a proposed plan for ensuring that liquor sales and consumption are
restricted to a confined area.
He has also secured approval of the property management company that operates Plaza Fountainside
and submitted a request for a permit from the Community Development Department.
Concerns: This memorandum addresses only the liquor control aspects of the application and not the
extension of premises under the zoning regulations.
While the applicant has made an attempt to ensure that liquor sales and consumption are restricted to
the premises as required in ARS 4-244.31, the Marshals Department has concerns that his provisions
are not sufficient to prevent patrons from carrying alcoholic beverages from the extension of premises
into the park. Specifically, the use of benches and pottery with large gaps apparent do not constitute a
sufficient barrier to contain the alcoholic beverage consumption to the premises.
Recommendation: While I concur with the concept outlined in the application, and are aware that it
meets the approval of our local liquor control agent, Adam Palubeskie, my specific concern with
containing the alcohol would be addressed with a fence around the proposed patio extension.
Due to the fact that the applicant has an exemplary record of compliance with both the spirit and letter
of the law, and his business interests would be best served with a permanent extension rather than a
series of temporary extensions, I recommend conditional approval of the application. The specific
condition being a requirement of a fence, acceptable to the property management company, around
the proposed patio extension area.
Town of Fountain Hills
Memorandum
DATE: October 12, 2001
TO: Cassie Hansen, Director of Administration
FROM: Jeffrey Valder, Director of Community Development
SUBJECT: Extension of Premises/Patio Permit for Grapeables
There is a problem with the proposed Extension of Premises/Patio Permit for Grapeables. There
is a Shared Parking Agreement between the Town and the owner of the shopping center, Fountain
Victoria Partnership. In that agreement the center is limited to 6,000 square feet of usable floor
area for restaurants. While the 6,000 square foot maximum has not been reached, the allocation
of this space is at the discretion of the property owner and not individual tenants. The
Community Development Department requires a letter from Fountain Victoria Partnership to
allocate and give permission for Grapeables to both utilize a portion of this 6,000 square foot
usable restaurant space, and to give permission to Grapeables to have the exclusive use of this
patio/pedestrian area.
On a related note, the property owner needs to relocate the small aboveground electrical boxes
within the paved walkways because they are tripping hazards. If this Extension of Premises/Patio
Permit for Grapeables is approved, it will divert all of the pedestrian traffic into a narrower
pedestrian corridor where these small electrical boxes are located, thereby compounding the
likelihood that pedestrians will trip over these obstacles.
The Community Development Department recommends denial of this Extension of
Premises/Patio Permit for Grapeables until the letter from the property owner, as noted above, is
received by the Town and until the small electrical boxes are relocated to eliminate the tripping
hazards they pose.
Nov-01-2001 23:21 From -VICTORIA PROPERTY 4803036704 T-963 P 001/003 F-205
VICTORIA PROPERTIES
MANAGEMENT, LLC
549,S. 48TH STREET, SUITE #108
TEMPE, AZ 85281
(480) 303-6701 - PHONE
(480) 3.03-6704 - FAX
FACSIMILE TRANSMITTAL -SHEET
TO. FROM:
VAUA
COIF N DATT_;
FAX NUMBER TOTAL NO. OF PAGES INCLUDING COVER
PHONE NUMBER
RE:
❑ URGENT b-I OR REVIEW ❑ PLEASE COMMENT ❑ PLEASE REPLY ❑ PLEASE RECYCLE
NOTES/ COMMENTS:
[A
Iov-01-2001 23:21 From —VICTORIA PROPERTY
4803036704 T-963 P 002/003 F-205
October 29, 2001
Town of Fountain Hills
16836 E. Palisades
P.O. Box 17958
FOUNTAIN HILLS, AZ
85269
VICTORIA PROPERTIES MANAGEMENT, LLC
Attention: Mr. Jeffrey W. Valder, AICP
Director of Community Development
Dear Jeffrey;
Re: Extention of Premises Permit with respect
To Grapeables, Suite # 9 — Plaza Fountainside
(Delivered via fax: 480-837-3145)
The purpose of this letter is to communicate a number of points relative to the referenced subject.
We hereby con firm that:
1) Plaza Fountainside, L.P., as owner and Landlord of this property, authorize this Tenant to
have sole use of an area measuring approximately 340 square feet exterior and to the east of their
premises for the purpose of offering patio seating to their customers.
2) Upon the issuance of this permit, we will reclassify this area from its current designation
as common area and incorporate this square footage within a new calculation to reflect the total
leased area of the premises.
3) We recognize and accept that this allocation of 340 square feet will form part of the 6,000
square foot allocation referenced within the Shared Parking Agreement as the maximum usable
area assigned to restaurant iloorspace.
4) Related to the above determination of usable area specific to restaurant use, an
architectural firm by the name of Exclaim Design has certified that the usable area of the
premises under lease to Grapeables measures 404 square feet. As above, we recognize and
accept that this area calctlation of 404 square feet will form part of the 6,000 square footage
allocation.
5) And lastly, we appreciate the observations made by the Town of Fountain Hills relative
to the placement of J-boxes within the hardscape on the park side of the project and your
comments as to the trip hazard these electrical units represent. On Friday of last week, our
design team formalized an approach to encase these receptacles within a bench like element,
similar to the rock faced benches currently in place.
549 SOUTH 48TH STREET, SUITE 108 - TEMPE, ARIZONA 85281 - OFFICE (602) 303-6701 - FACSIMILE (602) 303-6704 - WWW..VPMANAGEMENT.COM
,wov-01-2001 23:21 From —VICTORIA PROPERTY 4803036704 T-963 P 003/003 F-209
Mr. Jeffrey W. Vulder, AICP Page 2
We are grateful to you and other staff members of the Community Development Department for the
time and attention offered to this subject matter. Should you have any questions regarding this subject,
please do not hesitate to contact me at your convenience.
Respectfully s}*itted,
VICT A PROPERTIES MANAGEMENT, L.L.C.
Jeffrey R. Simpson
hector of Development
CC: Mr. Jim Myczek, Grapeables
ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL
RECEIVED
800 W Washington 5th Floor 400 W Congress #150
Phoenix AZ 85007 OCT 1 1 2001 Tucson AZ 85701
(602) 542-5141 u r-OUNTAIN HILLS (520) 628-6595
TOWN CLERK
APPLICATION FOR EXTENSION OF PREMISESIPATIO PERMIT
Permanent change of area of service
❑ Temporary change for date(s) of: _
1. Owner or Agent's Name:bLy GZ &K T4 MC-5 (t)
Last First Middle
2. Mailing Address: l y 5�S�vT,f 1 N i�f �� s 7. SSA- 610,
City state Zip
3. Business Name: QaA pE h S L>_ 5 F(AI E &I / N" LICENSE #: C,707 c, ,P lP
4. Business Address: t 2 G yS- A/. SAG iUr v Fv u ti rA t tit IY( L-1- s MAR t cc A Z '952 bQ
City COUNTY state Zip
5. Business Phone: (�4 � Residence Phone: ( ti � �� ) Q ! 6 - Ll 9S
6. Are you familiar with Arizona Liquor Laws and Regulations? A
YES ❑ NO
7. What security precautions will be taken to prevent liquor violations in the extended area? 'RAa R t EK iv f LL )k 1k) k A c-
Nb .4061� c 501J 4-,il-L Be &A6C-D 10 A1,4I0�+i� RECuL-,-T(vtj
8. Does this extension bring your premises within 300 feet of a church or school? ❑ YES X NO
9. IMPORTANT: ATTACH THE REVISED FLOOR PLAN CLEARLY DEPICTING YOUR LICENSED PREMISES
AND WHAT YOU PROPOSE TO ADD.
****After completing sections 1-9 bring this application to your local Board of Supervisors, City Council or Designate for
their recommendation.
c ange in pre is RECOMMENDED by the local Board of Supervisors, City Council or Designate:
r j t,3r% (u n t l
(Au& ' S' ure) (Title) (Agency)
y- I, _ _ , being first duly sworn upon oath, hereby depose, swear and declare, under
(Print full ttatrle)
penalty of perjury, that I am the APPLICANT making foregoing application and that the application has been read and that the contents
thereof and all statements contained therein are true,correct and complete.
�—x SUBSCRIBED IN MY PRESENCE AND SWORN TO before me
(Signature of Owner or Agent)
this day of .19
My commission expires on:
(Signature of NOTARY PUBLIC)
nvestigation Recommendation: Date:
Licensing Approval: Date:
*Disabled individuals requiring special accommodation, please call the Department.
UC105
4197
AGENCY
(Local PD, DPS, DLLC, etc.)
_,.INSPECTION REPORT
Send Original to:
DLLC
800 W Washington 5th Floor
Phoenix, AZ 85007-2934
DATE: 6i�( (J
T ME: LM
DISTRICT: f { (u S
REPORT #
BUSINESS NAME:
LICENSE # V � I� 4;� EXPIRES: 2- 1-1�-
BUSINESS ADDRESS:
CITY: f -t-t Lfl. 1 c�
MAILING ADDRESS: 1j rj Oct, �Z l l ' (L f "
CITY: Aj7 l i
❑ INDIVIDUAL ❑ PARTNERSHIP CORPORATION ❑ LLC
CORPORATION NAME: VI-11 17 ir' L G-
LICENSEE/AGENT: /t�l `� %C lL--
PHONE:
MANAGER:
CONTROLLING PERSON:
PERSON IN CHARGE:
POSITION:L--
VIOLATION
COMP IANCE
NA
DESCRIPTION
1. Liquor license exhibited A.R.S.13-3706
}C
2. Business name is the same as on the license A.A.C.1119-1-219
?�
3. Agent/Mgr. on license is valid and current A.R.S.4-202.0
4. Ownership is as disclosed to D.L.L.C. A.R.S.4-203/A.A.C.R19-1-103
x
5. Employee records are available A.R.S.4-119/A.A.C.R19-1-251
6. Employees are familiar with liquor laws A.A.C.1119-1-105
7. Floor plan is authorized by D.L.L.C. A.R.S.4-207.01
8. Patio is authorized A.A.C.R19-1-233
N
9. Only authorized ID accepted YES NO_,ID log used YE NO_ A.R.S.4-241
10. Spirituous liquor is stored only in authorized areas A.A.C.1119-1-208
11. Unauthorized alcoholic beverages on premises A.R.S.4-243.01/R19-1-229
12. Only sealed spirituous liquor on premises (Off Sale) A.A.C.R19-1-209
13. Liquor bottles are not refilled or re -used A.A.C.R19-1-221
�
14. Draft beer spigots are labeled A.A.C.1119-1-205
15. Only authorized credit is extended A.R.S.4-242
16. No inducements advertised or used A.A.C.1119-1-217
?�
17. Meets restaurant requirements % A.R.S.4-205.01/.02/A.A.C.R19-1-231
k'
118. Fetal alcohol signs posted Signs Left A.R.S.4-261/A.A.C.R19-1-214
lC
19. Gambling, Warned A.R.S.4-244.27
20. Other
21. Other
❑ NO ACTION ❑ ACTIONABLE ❑ COMPLIANCE REQUIRED BY: _/_/_ ❑ WARNING #'S
COMMENTS:
R,<< T ,4 1 i) p / 77 c t-1
" �,` > 1r=v' (� j' ltIt/��
U6
I ACKNOWLEDGE RECEIPT OV A C PY OF THIS REPORT AND
THE INFORMATION CONTAINED ON THE BACK OF THAT COPY
OFFICEk AND BADGE NUMBER
INVI1101 II2/2(XX)
ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL
800 W Washington 5th Floor RECEIVED 400 W Congress #150
Phoenix AZ 85007 OCT 1 1 2001 Tucson AZ 85701
(602) 542-5141 u r-OUNTAIN HILLS (520) 628-6595
TOWN CLERIC
APPLICATION FOR EXTENSION OF PREMISES/PATIO PERMIT
K Permanent change of area of service
❑ Temporary change for date(s) of: _
1. Owner or Agent's Name:_M G'Z.>: K
--rA ►MC--5
Q)
Last
Fist
Midme
2. Mailing Address: I y (a 5�S
City State
Zip
3. Business Name: QRApE 48LE s; F(yg k�, N£5
LICENSE #• G7 07 nR P
4. Business Address: z L `1S- W S',¢C qAI; r f=0
u& to I tJ Eft I -Ls M t} R t 4 P� AZ_
V 52 (op
5. Business Phone: (� �C ) l %- S� S %
City COUNTY State
Residence Phone: ( ! D ) P 16 -
Zip
y 9S f
6. Are you familiar with Arizona Liquor Laws and Regulations? *ES ❑ NO
7. What security precautions will be taken to prevent liquor violations in the extended area? 43A4� Q t Ek U/ i LL
fkNb,0&tZ cos) f, L E 0L ACC-D 7'0 MhIJl� 1-,+ tc►-A-Trc N s
8. Does this extension bring your premises within 300 feet of a church or school? ❑ YES X NO
9. IMPORTANT: ATTACH THE REVISED FLOOR PLAN CLEARLY DEPICTING YOUR LICENSED PREMISES
AND WHAT YOU PROPOSE TO ADD.
****After completing sections 1-9 bring this application to your local Board of Supervisors, City Council or Designate for
their recommendation.
c ange in pre is RECOMMENDED by the local Board of Supervisors, City Council or Designate:
aMor 1 t)wn
(Autho ' Sure) (Title) (Agency)
1
y— I, _ M �% G Z f - /< , being first duly sworn upon oath, hereby depose, swear and declare, under
(Print full )
penalty of perjury, that I am the APPLICANT making foregoing application and that the application has been read and that the contents
themof d all statements cor tained therein are true,correct and complete.
` AL SUBSCRIBED IN MY PRESENCE AND SWORN TO before me
(Signature of OR/,q USAN GRIGGS
Y
Notary Public -State of Arizona this .-/ � day Of
MARICOPA COUNTY
y m. expires Jan. 28, 2005 Y
is
My commission expires on:
(Signature of N ARY PUBtJ6
-stigation Recommendation: Date:
licensing Approval:
Date:
IIC105 *Disabled individuals requiring special accommodation, please call the Department.
4197
Fountain Hills Memorandum
TO: Cassie Hansen
FROM: Steve Gendler
4e-
DATE: November 8, 2001
SUBJECT: Special Event Liquor License - American Legion
The purpose of this memorandum is to endorse the attached application submitted by the American
Legion Post of Fountain Hills. They have requested a special event liquor license for Saturday,
December Is`. It is my understanding that this issue will go before the Council at their meeting on
November 15th.
I am recommending approval based on the following factors:
1. The American Legion Post has a valid class 14 (club license) in place at 16837 Parkview.
According to the state liquor department, organizations with a class 14 license are
permitted up to 10 days per year in which they are eligible for a special event license
allowing public liquor sales. At all other times, the class 14 allows sale to members and
guests only. A review of the record indicates that this will be the second and third such
request for the calendar year and will bring their total to R of the 10 days they are allowed
for special events in 2001.
2. During the time frames specified on the permits, the American Legion in effect suspends
their class 14 license and replaces it by the special event permit for those hours specified.
The American Legion officials apparently understand that since they have included a
written statement foregoing their class 14 license during the special event period.
3. In previous investigations, we have found that the American Legion has met all the legal
requirements under the Arizona Revised Statutes for both a liquor license and temporary
permit. This included covert monitoring by state liquor agents and overt monitoring by the
Marshals Department to ensure compliance with provisions of the special event license.
Nothing has been found which would prohibit granting of this permit.
Based on the factors outlined above, I recommend approval by the Council on November 15th.
ARIZONA DEPARTMENT OF LIQUOR IAg. j5 CONTROL
800 W Washington 5th Floor NOV O 7 2001 400 W Congress #150
Phoenix AZ 85007-2934 Tucson AZ 85701-1352
.. (602) 542-5141 FOUNTAIN HILLS (520) 628-6595
is TOWN CLERK
APPLICATION FOR SPECIAL EVENT LICENSE
Fee = $25.00 per day, for 1-10 day events onlyy
A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44-6852)
PLEASE NOTE: THIS DOCUMENT MUST BE FULLY COMPLETED OR IT WILL BE RETURNED.
DEPT USE ONLY
**APPLICATION MUST BE APPROVED BY LOCAL GOVERNMENT LIC#
1. Name of Organization:
2. Non-Profit/I.R.S. Tax Exempt Number:
3. The organization is a: (check one box only)
❑ Charitable 0- Fraternal (must have regular membershiRgr4}n existence for over 5 years)
❑ Civic ❑ Political Party, Ballot Mea u , or Campaign Committee
❑ Religious % A M k/ /�1 U y G A M E
4. What is the purpose of this event?
5. Location of the event: /� _,' ' 7
Address of physical location (Not P.O. Box) City County Zip
Applicant must be a member of the qualifying organization and authorized by an Officer Director or
Chairperson of the Organization named in Question #1. (Signature required in section #18)
6. Applicant: %:
Last Fast Middle bate of 'Birth
7. Applicant's Mailing Address: / ` ' a ;t ! F - r ?. ' L - ! f : � f �'' � i /-/ � ii 7 � - ^ k
Street City State Zip
8. Phone Numbers: (r 4:) �' ..� W
Site Owner # Applicant's Business # Applicant's Home #
9. Date(s) & Hours of Event: (tterne you cannot sell alcohol before 10:00 a.m. on Sunday)
1 �j 1bate Day of Week Hours from A.M./P.M. To A.M./P,M.
Day 1:
Day 2: '
Day 3:
Day 4:
Day 5:
Day 6:
Day 7:
(tw Day 8:
Day 9:
Day 10:
Lc 0106 05nM *Disabled inividuals requiring special accommodations, please call the Department.
10. Has the applicant been convicted of a felony in the past five years, or had a liquor license revoked?
❑ YES GLNO (attach explanation if M)
11. This organization has been issued a special event license for days this year, including this event
(not to exceed 10 days per year).
12. Is the organization using the services of a promoter or other person to manage the event? ❑ YES [ NO
If yes, attach a copy of the agreement.
13. List all people and organizations who will receive the proceeds. Account for 100% of the proceeds.
THE ORGANIZATION APPLYING MUST RECEIVE 25 % of the gross revenues of Alcoholic
Beverage Sales.
Name Address Percentage
(Attach additional sheet if necessary)
14. Knowledge of Arizona State Liquor Laws Title 4 is important to prevent liquor law violations. If you have any
questions regarding the law or th pplication, please contact the Arizona State Department of Liquor Licenses
and Control for assistance. 0 n2iGqmfi0 .I
NOTE: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY.
"NO ALCOHOLIC BEVERAGES SHALL LEAVE SPECIAL EVENT PREMISES."
15. What security and control measures will you take to prevent violations of state liquor laws at this event?
(List type and number of security/police personnel and type of fencing or control barriers if applicable) go
# Police ❑ Fencing
# Security personnel ❑ Barriers
16. Is there an existing liquor license at the location where the special event is being held? YES ❑ NO
If yes, does the existing business agree to suspend their liquor license during the time
period, and in the area in which the special event license will be in use? 7 YES ❑ NO
(ATTACH COPY OF AGREEMENT)
Name of Business Phone Number
17. Your licensed premises is that area in which you are authorized to sell, dispense, or serve spirituous liquors
under the provisions of your license. The following page it to be used to prepare a diagram of your special
event licensed premises. Please show dimensions, serving areas, fencing, barricades or other control
measures and security positions.
9
THIS SECTION TO BE COMPLETED ONLY BY AN OFFICER DIRECTOR OR CHAIRPERSON OF TFF:
ORGANIZATION NAMED IN QUESTION #1
18. I, 116, declare that I am a �Officer/Director/Chairperson appointing the
(Print full name)
applicant listed in Question 6, to apply on behalf of the foregoing organization for a Special Event Liquor
License.
X(Signature)
LNcE
i. sP.�LK. BOWJANtm d kwCOLWNtoos S@M 14
My Commission expires on:
Y J
(Title/Position) (Date)
(Phone #)
State of--AZi County of
The foregoinn instrument was acknowledged before me this
��/ day of k J
Month Year
NOTARY PUBLIC)
THIS SECTION TO BE COMPLETED ONLY BY THE APPLICANT NAMED IN OUESTION #6
19. I, jr'.declare that I am the APPLICANT filing this application as
(Print full name)
as 'sted in Question 6. I have read the application and the contents and all statements are true, correct and
c plete. 1`
State of �L�/V %� County of " Q
X -�--. The foregoing instrument was acknowledged before me this
FICIAL SEAL"
OF
Virginia LaPenta � day of �i-' k�a
Notary Public -Arizona Day of Month Mon Year
Maricopa County
My co tttrk�Gbmmission Ex ores 1411/2001
() Signature of NOTARY PUBLIC)
You must obtain local government approval. City or County MUST recommend event & complete item #20
The local city or county iurisdiction may require additional applications to be completed and additional
licensing fees before approval may be granted.
LOCAL GOVERNING BODY APPROVAL SECTION
20. I,�haror. Thorav-- , ))l o r , here y recommend this special event application on
(Government ) le)
behalf of ) cwr t"nL4 (
(City, Town or County) (Signature of OFFICI (Date)
FOR DLLC DEPARTMENT USE ONLY
Department Comment Section:
(Employee) (Date)
❑ APPROVED ❑ DISAPPROVED BY:
(Title) (Date)
SPECIAL EVENT LICENSED PREMISES DIAGRAM
(This diagram must be completed with this application)
Special Event Diagram: (Show dimensions, serving areas, and label type of enclosure and security positions) 00
NOTE: Show nearest cross streets, highway, or road if location doesn't have an address.
DIS'rLAY
LAI
�i
Hb�Tlo(:2 W.
J,41 ,fiI t
�, ^,�- 0
f'AT 10
0
P
L�l
I V R I CA � 1- F GI 0 N
ll().S'l ;;-;8
FM VVAIN
Ariznni,i, Dept. of Liquor Licenses..
The AmerIcqn Legion Post 55 qwret-s t---) their
'.1auor License 1� for the neriod -7
Richar-I 11A Pentq
Cl--ib Mwr.
a
a
that is Aw'
46
Town of FOUNTAIN HILLS
TO: The Honorable Mayor and Common Council
THROUGH: William E. Farrell, acting Town Manager
FROM: Jason Sanks, Planner
DATE: November 15, 2001
Memorandum
SUBJECT: Consider the Preliminary and Final Plat for "Alta Montana Vista Villas
Condominiums", a 12-unit condominium project.
This Preliminary and Final Plat is a request by Rob Graham, which would condominiumize 12-
units located at 11816 N. Saguaro Blvd. The purpose of this request is to convert a twelve -unit
complex currently under construction and record a Declaration of Condominium to sell the units
individually. Please refer to the attached Planning and Zoning Commission & Staff report for
�r additional details regarding this request.
16836 East Palisades Boulevard, Building C — P.O. Box 17958 — Fountain Hills, Arizona 85269 — (480) 837-2003 — FAX: (480) 837-1404
TOWN OF FOUNTAIN HILLS
PLANNING & ZONING COMMISSION & STAFF REPORT
NOVEMBER 15, 2001
CASE NO: S2001-28
LOCATION: 11816 N. Saguaro Blvd., aka Lot 9-A, Block 3, Plat 201,
REQUEST: Consider the Preliminary and Final Plat for "Alta Montana Vista Villas
Condominiums", a 12-unit condominium project.
PROJECT MANAGER: Jason Sanks
DESCRIPTION:
OWNER: Rob Graham
APPLICANT: Mark Dohrman (architect)
EXISTING ZONING: "R-3"
EXISTING CONDITION: Under construction
LOT SIZE: 1.106 acres
SURROUNDING LAND USES AND ZONING:
NORTH: Saguaro Blvd. (R.O.W.), Commercial: zoned "C-3"
SOUTH: Subak Condominiums: zoned "R-2"
EAST: Multi -family: zoned "R-3"
WEST: Multi -family; zoned "R-3"
SUMMARY:
This request is for approval of the Preliminary and Final Plat for "Alta Montana Vista Villas
Condominiums" Declaration of Condominium, which subdivides cubic airspace, and is
not a land sell project. Due to the simplicity of this request and the fact that this project
does not involve any off -site public improvements, a "fast track" process is being allowed.
The owner, Rob Graham, has chosen to convert a twelve -unit complex currently under
construction and record a Declaration of Condominium to sell the units individually. The
units will have a maximum livable area of 1,360 square feet, a minimum livable area of
1,130 square feet and a covered patio. Each unit will have a one -car garage and one
off-street parking space. The property is being built under building permit number 1999-
1076, applied for on September 1, 1999 and received a permit to build on July 18, 2000.
RECOMMENDATION:
Staff and the Planning and Zoning Commission recommend approval of S2001-28;
,, Preliminary and Final Plat for "Alta Montana Vista Villas Condominiums".
SAI
TOWN OF FOUNTAIN HILLS
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COMMUNITY DEVELOPMENT DEPARTMENT
Da
Fee Paid
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Condo inium Nam
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Condominium Address
Legal Desc ption of Lot/Parcel Being latted /r am • //s L
Plat
Parcel Si
Block ,� Lot s C-�I�11 If
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Number of Units''I'll
Number of rac s
Zoning
General Plan Lan Use Designation
Density Requested (Dwelling Units er Acre)
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Applicant
/� C7rA l{,
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Attachments (Please list) L/!!��i�r,�,�►jy�
P�i� �rl�'i�Gw��I'�
y����.
I HERBY AUTHORIZE (Please Print) Date
Sign ure of Owne
TO FILE THIS APPLICATION.
Subscribed and sworn before me this day of
19 .
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Notary Public
Fee Schedule Attached
y ommission Expires
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SUBJECT:
DATE:
TOWN of FOUNTAIN HILLS
Community Development Department
MEMORANDUM
The Honorable Mayor and Town Council
William E. Farrell, Acting Town Manager
Dana Burkhardt, Senior Planner
Case # S2001-029; Final Replat of Lots 2 & 3, Block 3, Final Plat 208
November 8, 2001
This is a request by Fountain Square, LLC, to remove the common lot line between lots 2 and 3,
Block 3, Final Plat 208. The property owner is removing the common lot line to develop an office
and retail building complex on this property. Please see the attached staff report for further details
regarding this lot join request. If you have any questions regarding this request, I can be reached at
(480) 816-5138.
16836 East Palisades Boulevard, Building C — P.O. Box 17958 — Fountain Hills, Arizona 85269 — (480) 837-2003 — FAX: (480) 837-1404
TOWN OF FOUNTAIN HILLS
STAFF REPORT
NOVEMBER 15, 2001
CASE NO: S2001-029
LOCATION: Lots 2 & 3, Block 3 Final Plat 208
REQUEST: Consider approval of a replat for "Final Plat of Lot 2A, Block 3, Plat 208
Fountain Hills, Arizona", a lot join project.
DESCRIPTION:
OWNER: Fountain Square, LLC.
APPLICANT: Helen Katchen, President
EXISTING ZONING: "C-2" with Planned Shopping Overlay District
EXISTING CONDITION: Undeveloped lots
LOT SIZE: 12,000 sq. ft.
SURROUNDING LAND USES AND ZONING:
NORTH: Undeveloped lots and common parking; zoned "C-2"
SOUTH: Undeveloped south half of Plat 208 and Avenue of the Fountains;
zoned "C-2"
EAST: Bank One building; "C-2"
WEST: Undeveloped; zoned "C-2"
SUMMARY:
This request is for final plat approval of a Replat for "Final Plat of Lot 2A, Block 3, Plat 208
Fountain Hills, Arizona" which is a lot join project. Due to the simplicity of this request a "fast
track" process is being allowed.
The owner, Fountain Square, LLC, has chosen to reconfigure these lots by removing the common
lot line, combining the two lots into one. The reconfiguration of these lots will allow the owner
greater flexibility for developing a commercial project without crossing lot lines. The new lot will
meet all the requirements of the "C-2" Zoning District for size and dimensions.
RECOMMENDATION:
The proposed lot is in compliance with the regulations of The Town of Fountain Hills Zoning
Ordinance. Staff recommends approval of replat S2001-029 "Final Plat of Lot 2A, Block 3, Plat
208 Fountain Hills, Arizona".
TOWN OF FOUNTAIN HILLS
COMMUNITY DEVELOPMENT DEPARTMENT
RELIMINARY"PLEAT APPLIC Wt,ION Y 'T7.1
Date Filed
Fee Paid
Accepted By
e. apeor
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Plat Name/Number
Zo 14A Jot 3 /I& ago
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Parcel Size60Number of Lots
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Number of Tracts �,� Zoning G
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Density Requested (Dwelling Units Per Ac e)
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Attachments (Please list) Zie
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Signature of Owner
I HERBY AUTHORIZE (Please Print)
Date
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TO FILE THIS APPLICATION.
Subscribed and sworn before me this day of
, �g
My Commission Expires
Notary Public
Seal
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TFH Case Number
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MEMORANDUM
TO: HONORABLE MAYOR MORGAN AND TOWN COUNCIL
FROM: TOM WARD, ASSISTANT DIRECTOR OF PUBLIC WORKS'
THROUGH: WILLIAM E. FARRELL, ACTING TOWN MANAGER/
TOWN ATTORNEY
DATE: NOVEMBER 7, 2001
SUBJECT: HOLIDAY LIGHTING
In April 2001, the Fountain Hills Civic Association and Town Manager Paul Nordin
agreed to the attached proposal for the Town to accept ownership of the holiday lights
effective this fiscal year.
Their proposal recommends that a professional lighting company be contracted with to
install and remove the lights, and to perform necessary maintenance. The Town received
four proposals for this work: (1) Sunset Pools & Spas, Inc. $7,000.00; (2) The Christmas
Light Company (35 foot lift) $30,630.00 plus hauling; (3) The Christmas Light Company
(80 foot lift) $41,625.00 plus hauling; and (4) Holiday Lights Decorating $23,940.00 all
inclusive. Copies of each quotation are attached.
Town staff recommends contracting with Holiday Lights Decorating in the amount of
$23,940.00. This company has supplied the Town with the holiday lights, installation,
and removal in the past and has done an exemplary job.
HOLIDAY LIGHTING PROPOSAL
As previously discussed, the Civic Association board requests that the Town of Fountain Hills
accept ownership of the Holiday Lights effective fiscal year 2001-2002. The lights are presently owned
and insured by the Civic Association. These lights are stored in the Mobile Mini located southeast of the
El Lago and Saguaro Blvd. intersection.
We recommend that a professional lighting company be contracted with to install these lights on
the Avenue of the Fountains in November and to remove them in January and to do necessary maintenance
on them.
We also recommend that Town staff be responsible for checking each evening to ensure that the
lights have come on between 5:30 and 6:00 p.m. from the first weekend in December through the 6" of
January.
The Arts Council will annually make recommendations to the Town regarding upgrades, additions,
or modifications to the lighting plan.
It is requested that the Arts Council retain responsibility for assembling the Poinsettia Tree and
paying for the poinsettias, and that the Town continue to store the dismantled tree in the ti,lobile Mini. The
Town will also order the poinsettias through its landscaping and grounds department, as has been done in
the past, upon notification by the Arts Council.
Three companies have indicated an interest in contracting with the Town to do the holiday lighting
installation. However, time is of the essence for contracting their services for 2001:
■ Steve McClellan, McClellan Electric (contracted to decorate the city of Mesa for 2001).
Phone 480-964-5034 or pager (602) 239-9440.
■ Robert Vasquez & Marty Roggentien, The Christmas Light Coniparry (have decorated the
cities of Tempe and Glendale). Phone 480-966-0625 or 480-225-9991
■ Dennis Regeski, Sunset Pools R .Spas, Inc. (has been one of our volunteers).
Phone 837-7025
Bob Yordy, Civic ssocia ion President
Paul Nordin, Fountain Hills Town Manager*
*My signature is subject to the statement on the attached page.
I am willing to accept Town ownership of the lights and agree to be responsible for the
installation and removal of the lights; however, my signature in no way commits the Town to
contract with any of the vendors listed on the preceding page for their services.
Ell
Fountain Hills Inventory
of Holiday Lights
1700 Strands white Minilights (50 bulbs per strand=85,000 lights)
1 custom white&blue Fountain (3 pieces)
162 white Snowflakes
25 white Starbursts
1 white&blue Star of David
1 6-ft. tall Menorah
5 piece Manger Scene (stable, manger, 2 kneeling figures and Bethlehem star)
1 animated flying Angel
1 color Camel & Wiseman
2 color Wisemen
1 Seasons Greetings sign
I Happy Holidays sign
1 animated Angel Arch with JOY sign
i Skier
1 Snowman
1 4-piece color Animated Elf Scene (elves decorating Christmas tree)
13-piece Train Scene
1 3-piece animated Train Set
20 red&white Candy Canes
17 ft. tall Santa with Pack
1 3-dimensional Sleigh
4 Deer --Standing Buck, Leaping Buck, Standing Doe, Baby Deer
1 Small Merry Mouse
1 81/4 ft. tall Saguaro with Star
1 10 ft. tall Saguaro
2 8 ft. tall Cowboys
1 animated Campfire
1 10 ft. tall Stage Coach drawn by
4 horses
Timers, extension cords and multiple outlet plugs
Rebar for installation of ground figures
There are 59 trees on the east block and 21 trees on the west block. In addition are bushes and
hedges.
Only six strands of minilights can be strung together; only three multi strands go in one outlet.
Each outlet on the Avenue is 20 amps.
Prepared by Jackie Miles
4/2/01
SQMT POOLS & SPAS, INC.
Your Complete Pool R Spa Mai-.& Repair Company
11881 N. Saguaro Blvd. 94, Fountain Hills, AZ 85268
Phone: (602) 837-7025 • Fax (602) 816-4286
PROPOSAL
April 9, 2001
C.�v'� �'• t .
FOUNTAIN HILLS ARTS L1 <GUE
% Jackie Miles
RE: Christmas lighting/decorating, AVENUE OF THE FOUNTAINS (2001 Season)
Bid includes installation and removal of customer owned Christmas lighting/decorations along
Avenue of the Fountains per written map or plan provided by customer to SUNSET POOLS &
SPAS, INC. Any repairs or replacement of supplies would be above this cost. Any additional
lighting added would be above this cost.
SUNSET POOLS & SPAS, INC. to provide all labor and equipment necessary for installation
and removal only.
BIDPRICE......................................................$7,000.00
Bid good for 2001 season.
Terms: 10% Prior to Commencement of Work
40% Due upon Installation
Balance (50%) upon Removal
Contractor's Signature Date
Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. Any deviation from above
specification involving extra cost will be made upon written orders, and will become an extra charge above and beyond estimate. You are
authorized to do the work as specified. Payment will be made as outlined above. Note: This proposal may be withdrawn by us if not accepted
within 30 days.
Authorized Agent's Signature Date
05/03/2Of) 1 17:^5 4009661900
F'-GE i _
(01� Fountain Hills Bid
2nd scenario
Install/Remove mini -lights with 35 foot Boom Truck Only
We assume that we have about 6o0 amps of power on the west island
West side island
Description
Quantity
Install/Remove
7
15-35 feet tall trees
11
40 foot & Up trees(Bark Wrap)
2
Snowflake tree 15-35 feet
1
Candy Cane & Starburst
combined in 15-35 feet
15 20 Existing Displays
Total
East side island
Description
guantity
InstalllRemove
13
15-35 feet tall trees
5
40 foot & Up trees(Bark Wrap)
2
Snowflake tree 15-35 feet
5
Existing Displays
Total
Rough
estimate of Power
Price per
Total Cost
105 amps
$515.00
$3,605.00
315 amps
$515 00
$5,665.00
40 amps
$450.00
$900.00
20 amps
$450.00
5450.00
Sub Total
for Trees
S10620.00
120 amps varies $7,000.00
Sub Total
600 amps for displays i S7,000.00
Grand Total S17,620 00
Rough
estimate of Power
Price per Total Cost
130 amps
S515.00 $6.695.00
100 amps
$515.00 $2,575.00
40 amps
$450.00 $1,990 00
Sub Total
for trees $11,260.00
20 amps
varies $1, 750.00
Sub Total
290 a m—p—sl
for displays $1,750.00
Grand Total $13,010.00
l�
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Note ;A) Price includes installation of custmer owned ex;sbng ex.cords, tri-taps, rebar, timers, and suppliel
5) Additional Charge for hauling displays from storage and back
C) We assume all displays are mini -lights in our calulation for power requirements
D) We would like to install the trees in early October an return early November to set up displays and
turn the tree lights on.
Note: This is a rough estimate -All prices are subject to change, based on review of inventory
and a second look at the trees.
To get a more accurate price... we will need additional information about the scope of the project. Please
keep in mind, by using the 35 foot Boom only, we will not be able to reach the top of the large trees.
Cl
rJ5/0D/21001 17: 215 4009661900 F'"'_1E -`-
Fountain Hills Bid
1st Scenario
Install/Remove of mini -lights with 80 foot lift and Boom Truck
We assume that we have about 600 amps of power on the west islaird
West side island
Description
Rough
Quantity
Install/Remove
estimate of Power
Price per Total Cost
7
15-35 feet tall trees
105 amps
$515 00 $3,605.00
11
40 foot & Up trees
315 amps
$1.100.00 $12,100.00
2
Snowflake tree 40 ft plus
40 amps
$995.00 $1,990,00
1
Candy Cane & Starburst
20 amps
S995.00 $995.00
combined in 40 ft plus tree
Sub Total
for Trees $18,690.00
15-20
Existing Displays
120 amps
varies $7,000.00
Sub Total
Total
1600 am s
for displays S7,000.00
Grand Total $25,690 00
We assurne that we have about 290 amps of power on the east island
East side island
Description
Rough
Quantity
Install/Remove
estimate of Power
Price per Total Cost
13
15-35 feet tall trees
130 amps
$515.00 $6,695.00
5
40 foot R Up trees
100 amps
$1,100.00 55,500.00
2
Snowflake tree 40 ft plus
40 amps
S995.00 $1,990.00
Sub Total
for Trees $14,185.00
5
Existing Displays
20 amps
varies $1,750.00
Sub Total
for displays $ 750.00
Total
1290 amps
Grand Total 15,935,00
Note A) Price includes installation of customer owned existing ex. cords, tri-taps, rebar, timers, and supplied,
B) Additional Charge for hauling displays from storage and back_ "j
C) We assume all displays are mini -lights in our calulations for power requirements
D) We would like to install the trees in early October an return early November to set up displays and
turn the trees on.
E) We also need to make sure the grounds can sustain the weight of an 80 foot lift.
Note: This is a rough estimate -All prices are subject to change, based on review of inventor;
and a second look at the trees.
To get a more accurate price ... we will need additional information about the scope of the project and
what the council is looking for in relation to designs. We have some designs and ideas in inind we
would like to share with you.
Nov 01 01 01:35P Tony Snider 4803150583 P.1
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Everything you wanted to know
and haven't had the chance to ask!
join us for a workshop on
Preventing Substance Abuse among Youth and
Teens
The Town of Fountain Hills in partnership with the
East Valley Addiction Council (EVAC)
Will address the following hot topics in substance
abuse trends:
The Latest Drug Trends
(Including the latest club drugs)
Signs and Symptoms of Drug Use
Prevention Dynamics for Parents and Educators
Resources Available for Help & Support
Location: Community Center
13001 North La Montana Drive
Date: Wednesday, November 14, 2001
Time: 6:30 p.m.
Tel (480) 837-5750
Fax (480) 837-5805
E-mail billfarrell(&gwest.net
Law Offices of
William E. Farrell, P.L.L.C.
William E. Farrell
MEMORANDUM
TO: Mayor and Council
Town Clerk
FROM: William E. Farrell!WD
Town Attorney
DATE: November 15, 2001
RE: Town Hall Lease
Building A.
16838 E. Palisades Blvd.
Fountain Hills, AZ 85268
As you are all aware, Council member John Wyman recently completed a trip to Ontario, Canada
to meet with Dr. Lukenda. They had discussions regarding the lease of the 3 buildings, and the
parking lot which constitutes the current Town Hall complex. The Town has been occupying the
premises for almost 17 months since the master lease with MCO Properties expired.
The Town and Dr. Lukenda had been in disagreement over the responsibility for repairs to the
building and the Town was placed in a position of having expended considerable sums for roof
repairs as well as heating and air conditioning upgrades in order to maintain a suitable and safe work
environment for the employees.
Council member Wyman returned from his trip with a recommendation to the Council that the
amount of rent per square foot be reduced from the previously agreed to $8.50 per square foot to a
sum of $8.20 per square foot and that the same $0.30 reduction carry over the five years of the lease.
These saving would be in part compensation for what the Town has expended to keep the premises
in a good condition for the employees.
It is also suggested by Council member Wyman that the Town agree to a ceiling of $2,500 for all
future repairs and that the landlord would be responsible for all future repairs in excess of $2,500.
Staff concurs with that recommendation.
Finally, Council member Wyman suggests that the Council consider that in addition to the $8.20,
that the Town be responsible for the payment of real property taxes associated with the building.
His recommendation and Staff concurrence is based on the fact that commercial office space of
similar size in the Town of Fountain Hills usually brings with it the obligation either in the rent or
r
Memorandum
Re: Town Hall Lease
November 15, 2001
Page 2
as a direct payment that the landlord's taxes would be covered. Staff has no objection to the
condition and urges the Council to approve it.
Council member Wyman also reported that Dr. Lukenda is now amenable to our early severance
clause which would allow the Town to give 12 months notice at any time during the 5 years of the
initial term and vacate without obligation at the end of 12 month period. The reason for including
this provision would be to facilitate relocation to a new Town Hall should that be the direction of
the Council in the near future. It is anticipated that a plan for construction of a new Town Hall using
only the existing lease payments as a financing tool will be presented to the Council at budget time
next year.
The only item for which a total agreement has not been reached between the landlord and Staff is
the issue of liability insurance, especially fire and casualty. I have asked Risk Manger Wally
Hudson to prepare a detailed report for me on our options, and he has delivered the verbal report and
will have the written report for me early next week. Town Staff is recommending that we provide
an independently purchased liability insurance policy for the landlord and that we require the
landlord to obtain and pay for his own fire protection on the building. We will continue to insure
the Town against any liability for any accidents that occur on the premises, and we will fully insure
all of the contents of the buildings.
In summary, Staff recommends that the Council approve the rate reduction from $8.50 to $8.20 and
agree that the Town will be responsible for the Arizona Real Property taxes and that the Mayor be
authorized and directed to execute a lease agreement along the terms and conditions contained in
the draft agreement once the insurance issues have been resolved with the landlord.
As always staff would be more than happy to answer any questions you may have regarding the
lease itself, a copy of which is attached, in draft form, to this memo.
Z:\WPDATA\FH\TownHailLcaseMEM.wpd
MASTER LEASE
1. PARTIES
This lease entered into as of the day of , 2001, by and between
562502 ONTARIO, INC., an Ontario (CANADA) corporation, as the Lessor, and the Town of
Fountain Hills, Arizona, a municipal corporation of the State of Arizona as the Lessee.
2. DEMISE OF PREMISES
In consideration of the rents and covenants herein stipulated to be paid and performed by the
Lessee, the Lessor hereby demises and lets to the Lessee for the term of years hereunder specified,
the land and improvements thereon consisting primarily of three (3) buildings and parking thereon
located in Maricopa County, State of Arizona, and legally described in the attached Exhibit "A"
which is incorporated herein by reference, together with all buildings, structures, and other
improvements constructed thereon, and all easements, rights and appurtenances thereto (said parcel
and improvements being hereinafter termed the "Leased Premises.")
3. TITLE AND CONDITION
The Leased Premises are subject to the rights of any parties in possession thereof, and to the
existing state of title thereof as of the date of this Lease, to all encroachments thereon or over any
street or adjoining property, to any state of facts which an accurate survey or physical inspection
thereof might show, to all zoning regulations and other law and regulations now in effect or
hereafter adopted by any governmental authority having or acquiring jurisdiction and, with respect
to the improvements, in their present state and condition and without representation or warranty of
any kind by the Lessor to such improvements presently constructed.
4. QUIET ENJOYMENT - NON ABATEMENT OF RENT
Z: WPDATA, FHNasterLease-LukendaUpdated. wpd
(a) If and so long as Lessee shall pay the Basic Rent and additional rent reserved
under this Lease whenever the same shall become due, and shall keep all of the covenants and
agreements required by it to be kept during this Lease, and shall perform all of its other obligations
hereunder, the Lessor will not interfere with the peaceful and quiet occupation, and the enjoyment
shall be without hindrance, ejection or molestation by the Lessor.
(b) Except as otherwise specifically provided in this Lease, or by other written
agreement between the Lessor and the Lessee, there shall be no abatement, diminution or reduction
of rent, charges, or other compensation claimed by or allowed to the Lessee, or any person claiming
under it, nor shall there be abatement or diminution or reduction of the performance of the other
obligations by the Lessor hereunder under any circumstances.
5. USE OF LEASED PREMISES
Lessee is granted the right during the term of this Lease to occupy and use the
Leased Premises for any lawful purpose; provided that the Lessee shall, at its sole cost and expense,
procure any and all necessary permits, certificates, licenses or other authorizations required for any
such purpose.
Lessee shall not use or occupy the Leased Premises or permit the Leased Premises
to be used or occupied contrary to any statute, rule, order, ordinance, requirement or regulation
applicable thereto or in a manner which would violate any certificate of occupancy affecting the
same, or which would cause structural injury to the improvements, or cause the market value or
usefulness of the Leased Premises or any part there of to diminish, or which would constitute a
public or private nuisance or waste, and the Lessee will, promptly upon discovery of any such use,
take all necessary steps to discontinue such use and to evict the subtenants or occupants guilty of
such use, except when such use shall be permitted pursuant to acceptable or approved tenant leases.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 2
Lessee will keep or cause to be kept, the Leased Premises and all sidewalks and areas
abutting and adjoining said premises in a safe and clean condition in compliance with the
requirements of all laws and ordinances applicable thereto. The Lessee shall keep the Lessor
harmless and indemnified at all times against any loss, damage, cost or expense incurred by the
Lessor or claimed against the Lessor by reason of any failure of the Lessee to carry out the foregoing
agreements or by reason of any accident, loss or damage resulting to any person or property by
reason thereof.
6. TERM
(a) The initial term of this lease shall begin on July 1, 2000 and shall end at 12:00 noon
on June 30, 2005, unless sooner terminated by the Lessee as hereinafter provided.
(b) The term of this Lease may be extended on a year-to-year basis, at the option of the
Lessee for a maximum of five (5) years beyond the initial term of this lease. Such option to extend
shall be exercised by the Lessee by giving written notice to the Lessor not more than twenty-four
(24) months, nor less than six (6) months prior to the expiration of the then existing term. The
giving of such written notice by the Lessee to the Lessor shall automatically extend this Lease for
the particular extended term involved and no instrument of renewal need be executed. In the event
that the Lessee fails to give the required notice to the Lessor, this Lease shall automatically
terminate at the end of the initial term or an extended term, as the case may be, and the Lessee shall
have no further option to extend this Lease. In the event that the Lessee does not exercise any
particular option to extend as provided in this paragraph, then the Lessor shall have the right during
the remainder of this Lease then in effect to advertise the availability of the Leased Premises for sale
or for reletting and may erect upon the Leased Premises signs permitted under Town Code
indicating such availability. The phrase "term of this Lease" as used herein shall mean the initial
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 3
term of the Lease, together with any extended term with respect to which the Lessee has exercised
its option to extend the term as provided in this paragraph.
(c) The Lessee may terminate the Lease prior to the end of any term and without cause
by providing written notice of said early termination twelve (12) months prior to the date of early
termination. Tenant is obligated to pay all rental payments due up to the date of early termination
but can vacate the premises at any time.
7. RENT
Lessee shall pay to Lessor as rent for the premises during the term of this Lease annual rent
in accordance with the following rent schedule:
Months
Rental/42,000 SF/Yr.
Annual Rent (plus tax)
1.
1-12
$ 8.20
$344,400
2.
13-24
8.54
$358,680
3.
25-36
8.89
$373,380
4.
37-48
9.26
$388,920
5.
49-60
9.64
$404,880
Should the Lessee extend the term of the Lease beyond 60 months, the rate for the 61-72
month period shall be $10.34 per square foot for a total that year of $434,280. Subsequent
extensions shall increase at a rate of 4.0% per year over the rate paid in the previous year.
8. OTHER TAXES
The Lessee will not reimburse, indemnify, hold harmless or pay to the Lessor, or on the
Lessor's account, any income tax or profits tax that may be imposed upon the Lessor, or charged
or levied upon the Lessor, with respect to the basic rent. The lessee is responsible for the
payment of any and all Arizona property taxes levied against the demised premises.
9. UTILITIES
The Lessee agrees that during the initial term of the agreement and any extension
Z:\WPDATA\FH\MasterLease-Lukenda I 1-15-0l .wpd 4
thereof, that it will keep the property free and clear of any liens or encumbrances upon the Leased
(W
Premises or any portion thereof, and that it will pay all charges for utilities services including, but
not limited to, water charges, sewer charges, power charges, and telephone charges required by the
Lessee for the peaceful enjoyment of the Leased Premises. The Lessee acknowledges that the
Lessor is not required to furnish to the Lessee, or any other occupant of the Leased Premises, any
utilities services of any kind.
10. COMPLIANCE WITH LAW
The Lessee shall comply with all federal, state, county, municipal and other statutes, charters,
laws, rules, orders, regulations, and ordinances affecting the Leased Premises and the occupancy,
operation, or use thereof, including those which require the making of any structural, unforeseen or
extraordinary changes, whether or not any such statutes, charters, laws, rules, orders, regulations and
ordinances which may hereafter be enacted involve a change of policy on the part of the
governmental body enacting the same. The Lessee shall comply with the requirements of all
policies of public liability, fire and other insurance at any time in force with respect to the Leased
Premises.
11. LIENS
The Lessee will not create, or permit to be created, or to remain, and will discharge any lien,
encumbrance, or charge (other than a lien, encumbrance or charge created by the Lessor) upon the
Leased premises, or any part thereof, or upon the Lessee's leasehold interest therein, provided that
the existence of any mechanic's, laborer's, material men's, supplier's, or vendor's lien or right in
respect thereof shall not constitute a violation of this Lease if payment is not yet due and payable
under the contract in question. Nothing in this lease contained shall be construed as constituting the
consent or request of the Lessor, expressed or implied, by inference or otherwise, to any contractor,
subcontractor, laborer or material man for the performance of any labor or services, or the furnishing
Z:\WPDATA\FHWasterLease-LukendaUpdated.wpd 5
of any materials for any improvement, alteration, addition or repair of or to the Leased Premises or
any part thereof.
12. INDEMNIFICATION
The Lessee agrees to pay, and to protect, indemnify and save harmless the Lessor from and
against any and all liabilities, damages, costs, expenses (including any and all attorneys' fees and
expenses of the Lessee, and including any and all reasonable attorneys' fees and expenses of the
Lessor incurred as the result of a default on the part of the Lessee, or as the result of the request by
the Lessee for any consent, approval, modification, amendment, subordination, attornment or other
instrument from the Lessor), causes of action, suits, claims, demand or judgments of any nature
whatsoever arising from (1) any work or thing done in, on, or about the Leased Premises, or any part
thereof, (2) injury to, or the death of, persons or damage to property on the Leased Premises
including parking lots, or upon adjoining sidewalks, streets, alleys, curbs, vaults, spaces, or ways,
or in any manner growing out of or connected with the use, non-use, condition, possession,
operation, maintenance, management or occupation of the Leased Premises, or resulting from the
condition thereof, or of adjoining sidewalks, streets, alleys, curbs, vaults, spaces, or ways, (3) any
negligence on the part of the Lessee or any of its agents, contractors, servants, employees, licensees
or invitees and the (4) violation of any agreement or condition of this lease and of conditions,
agreements, restrictions, statutes, charters, laws, rules, ordinances or regulations affecting the leased
Premises or the ownership, occupancy or use thereof.
13. MAINTENANCE AND REPAIR
(a) The Lessee has received the Premises and improvements thereon in an "as is"
condition, and at its own and sole cost shall maintain and keep the Premises "as is" subject only to
ordinary wear and tear and acts of God excepted, and as set forth in subsection (c) below.
(b) Lessee shall be responsible for and maintain the structure and shall correct any
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 6
hazardous condition arising from any structural defect or unsoundness. The term "structure" as used
herein includes walls, roof, floors, foundation, stair -ways, exterior sidewalks PARKING LOTS and
Y ,
parking structures.
(c) As to all electrical, plumbing, heating and air conditioning systems and equipment,
Lessee shall be responsible for all maintenance beyond the first Two Thousand Five Hundred
Dollars ($2,500.00) of repair or replacement of the mechanical equipment or systems. Lessor shall
be responsible for all repair and replacement up to the first Two Thousand Five Hundred Dollars
($2,500.00). Lessee shall deduct any costs it pays in excess of $2,500.00 per occurrence from
monthly lease payment due.
(d) Lessee shall provide for its own janitorial service and shall keep the exterior and
interior of the premises free from trash, litter and other rubbish.
(e) Lessee shall be responsible for replacement of all glass breakage
14. ALTERATIONS AND ADDITIONS
(a) The Lessee may, at any time, and from time to time during the term of this lease, and
at its sole cost and expense, make additions to, alterations of, substitutions and replacements for, and
removals from the improvements, provided, however, that (1) the total market value of the Leased
Premises shall not be lessened by reason of any such alteration, addition, substitution, replacement
or removal, (2) any of the foregoing actions shall be done in good and in a first-class workmanlike
manner, (3) all such additions, alterations, substitutions, replacements and removals shall be
expeditiously completed in compliance with all laws, ordinances, orders, rules regulations, and
requirements applicable thereto, and (4) if the Lessee estimates that any such addition, alteration
substitution or replacement will cost more than Fifty -Thousand Dollars ($50,000.00), the Lessee
shall give to the Lessor notice of its intention to undertake the same and shall not start work until
the written approval of the Lessor is granted. All work done in connection with said additions,
ZA W PDATA TH\MasterLease-LukendaU pdated.wpd 7
alterations, substitutions, replacement or removals shall be done in accordance with applicable
orders, rules and regulations; general public liability insurance for the benefit of the Lessor and of
the Lessee, as their interests may appear, shall be maintained by the Lessee at all times when any
work is in progress in connection with any additions, alterations, substitutions, replacements or
removals to the Leased Premises, and any improvements thereon arising out of such additions,
alterations, substitutions, replacements or removals. The Lessee shall procure and pay for all
required permits, certificates and licenses in connection with such additions, alterations,
substitutions, replacements or removals, Upon the request of the Lessor, the Lessee shall deposit
with the Lessor a surety bond or other security satisfactory to the Lessor to assure the completion
and payment of any such additions, alterations, substitutions, replacements, or removals.
(b) The Lessee may, at any time, and from time to time at its sole cost and expense, erect
or locate upon the Leased Premises any other additional buildings, structures and improvements
upon compliance with the same terms and conditions set forth in Section 14 (a) hereof. All such
buildings, structures and improvements erected or located upon the Leased Premises shall be and
remain the property of the Lessor. If, however, the Lessee shall not be in default under this lease,
it may remove the same from the Leased Premises within thirty (30) calendar days after the
expiration, or sooner termination of this lease, provided that such removal shall not cause structural
injury to the remaining buildings, structures, and improvements, nor prevent the use thereof as an
economic unit and, provide further, that the Lessee shall pay the costs of such removal and shall
repair at its sole cost and expense any damage caused by such removal. Property not so removed
shall become the property of the Lessor at the Lessor's option.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 8
15. CONDEMNATION
Lessor and Lessee acknowledge that Lessee is a governmental agency and as such
possesses the right of eminent domain. The interests of the Lessor could be condemned by another
governmental agency only upon a showing to the court that the use for which the other governmental
agency wishes to put the property in a higher and better use than the use to which it is currently
being used, i.e., municipal buildings and town hall. If another governmental agency were to
attempt to acquire all of the Lessor's interest in the property, the rent and obligations of the Lessee
would terminate upon the date of possession if it were a total take of the property. If the taking was
less than a total take, then the Lessee would, at its sole option, determine whether or not it wished
to continue to occupy the remaining portion of the property or have the lease declared void and null
in its entirety. As to the distribution of awards in the event of an eminent domain action or a taking,
each party shall be allowed to present its full rights and entitlements to compensation and that the
parties do not agree in advance to any distribution of awards.
16. INSURANCE
Lessor shall not be named as an additional insured, but Lessee shall purchase and provide
Lessor with a general liability policy in an amount of Five Hundred Thousand Dollars ($500,000)
per injury or death, Two Million Dollars ($2,000,000) per occurrence, and shall keep said policy in
full force and effect during the course of this Lease.
(a) Liability Insurance
(b) Fire and Other Casualty
Lessee shall place and maintain at its own expense a standard fire insurance policy
with "extended coverage" endorsement in an amount equal to one hundred percent (100%) of the
full insurable value of the improvements. The policy of such insurance shall have a "stipulated
amount" endorsement and a "replacement cost" endorsement which provides for payment of the
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 9
actual cost of repair and replacement without deductions for depreciation. The term "Full Insurable
Value" shall mean the actual cost of replacing the improvements. A Certificate of Insurance
evidencing such coverage shall be delivered to the Lessor within ten (10) days of the execution of
this lease and each year thereafter during the term of the lease and any renewals.
(c) Other Insurance
Each party may maintain such other insurance as they deem necessary and proper.
17. ASSIGNMENT AND SUBLETTING
(a) The Lessee shall not assign all or any portion of its rights under this agreement to any
third party without the expressed written consent of the Lessor.
(b) Lessee may sublease, subject to the Lessee remaining primarily responsible to the
Lessor, all or portions of the leased premises to other governmental agencies or to contract
employees, vendors, or other organizations affiliated with government or serving local government
without the written permission of the Lessor. Lessee shall not sublet any portion of the premises
to a private individual or organization that does not have a governmental purpose or a governmental
affiliation without the expressed written consent of the landlord which shall not be unreasonably
held. No assignment or sublet agreement consented to by the Lessor shall relieve the Lessee of any
and all obligations under the terms and conditions of this Lease and any renewal thereof and all costs
related to any assignment or sublet shall be borne by the Lessee.
(c) Lessor acknowledges and understands that, in connection with performing public
safety functions, the Lessee may, from time to time, have hazardous materials on the premises for
a short period of time. Lessee, in addition to all other indemnifications and warranties expressed
in other parts of this lease, shall indemnify and hold harmless the Lessor from any charges or fines
or prosecution of any nature against the Lessor for the maintenance of any hazardous use upon the
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 10
premise by the Lessee, any sub -lessee, or any agents, employees, or assigns of the Lessee or sub -lessees.
18. CONDITIONAL LIMITATIONS - DEFAULT PROVISIONS
A. Any of the following occurrences or acts shall constitute an event of default
under this lease: (1) If the Lessee, at any time during the term of this lease (and regardless of the
pendency of any bankruptcy, reorganization, receivership, insolvency, or other proceedings, at law,
in equity, or before any administrative tribunal which have or might have the effect of preventing
the Lessee from complying with the terms of this lease), shall (a) fail to make payment of any
installment of annual Basic Rent, additional rent or of any other sum herein specified to be paid by
Lessee, or (b) fail to observe or perform any of the Lessee's other covenants, agreements or
obligations hereunder, including by way of reference and not limitation, any default by the Lessee
as Landlord under any sublease, and if any such default shall not be cured as to (a) within fifteen
(15) calendar days, or as to (b) within thirty (30) calendar days, then the Lessor shall grant the
Lessee a reasonable period of time in which to cure same as to (c) provided the Lessee is diligently
pursuing a cause of action to cure same, or (2) if the Lessee shall file a petition in bankruptcy or for
reorganization or for an arrangement pursuant to the Bankruptcy Act of the United States of
America shall be adjudicated a bankrupt or insolvent, or shall make an assignment for the benefit
of its creditors, or shall admit in writing its inability to pay its debts generally as they become due,
or if a petition or answer proposing the adjudication of the Lessee as a bankrupt or the
reorganization of Lessee pursuant to the Bankruptcy Act of the United States, or any similar federal
or state law and such petition or answer shall not be discharged or denied within sixty (60) calendar
days after the date of filing thereof, or (3) if a receiver, trustee or liquidator of the Lessee or of all
or substantially all of the property of the Lessee, or of the Leased Premises, shall be appointed in
any proceeding brought by the Lessee, or if any such receiver, trustee or liquidator shall be
appointed in any proceeding brought against the Lessee, and if such receiver, trustee or liquidator
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 11
shall not be discharged within sixty (60) calendar days after such appointment or (4) if the Lessee's
interest in this lease shall be attached or levied against pursuant to any other decree or judgment of
any court or competent jurisdiction or other judicial tribunal, or any administrative tribunal.
B. If an event of default shall have happened and be continuing, the Lessor shall have the
right at its election, then, or at any time thereafter, while any such event of default shall continue,
to give the Lessee notice of Lessor's intention to terminate the term of this lease on a date specified
in such notice, which date shall not be less than five (5) calendar days after the date of receiving of
such notice by the Lessee and on the date specified in any such notice, all right, title and interest of
the Lessee thereunder shall thereupon expire as fully and completely as if the date specified in such
notice were the date specifically fixed herein for the expiration of the term of this lease, and the
Lessee shall then peaceably and quietly quit the Leased Premises and surrender the same to the
Lessor, but the Lessee shall remain liable as hereafter provided. In the event any such notice is
given, the Lessor shall have the immediate right of re-entry and possession of the Leased Premises
and the right to remove all persons and property therefrom subject to the rights of tenants under
existing subleases (tenant leases) to which the Lessor may have consented. Should the Lessor elect
to re-enter as herein provided, or should the Lessor take possession pursuant to any notice provided
for by law, the Lessor may from time to time re -let the Leased Premises, or any part thereof for such
term or terms and at the best available rentals prevailing in the market area and upon such terms and
conditions as the Lessor may deem advisable, with the right to make alterations in and repairs of the
Leased Premises.
In the event of any termination of this lease as in this Section 18 above, provided or as other
wise permitted by law, the Lessor may enter upon the Leased Premises and again have, repossess,
and enjoy the same as if lease had not been made and, in any such event, neither the Lessee nor any
person claiming through or under Lessee by virtue of any statute or of an order of any court shall
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 12
be entitled to possession or to remain in possession of the Leased Premises, but shall forthwith quit
and surrender the Leased Premises. Nothing herein contained shall, however, limit or prejudice the
right of the Lessor in any bankruptcy or reorganization or insolvency proceedings to prove for and
obtain, as liquidated damages by reason of such termination, an amount equal to the maximum
allowed by any statute or rule of law in effect at the time when and governing the proceedings in
which, such damages are to be proved.
If the Lessor shall re-enter and obtain possession of the Leased Premises by reason of or
following an event of default, whether or not this lease shall have terminated, the Lessor shall have
the right, without notice, to repair or alter the Leased Premises in such manner as to the Lessor may
seem reasonably necessary or advisable so as to put the Leased Premises in good order and to make
the same rentable, and shall have the right, at the Lessor's option, to re -let the Leased Premises or
any part thereof, and the Lessee agrees to pay to the Lessor on demand all expenses incurred by the
Lessor in obtaining possession and in altering, repairing, and putting the Leased Premises in good
order and condition, and in re -letting the same including fees of attorneys, architects, and other
experts and also any other legitimate expenses or commissions.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 13
19. ADDITIONAL RIGHTS
No right or remedy herein conferred upon or reserved to either party is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and
in addition to any other right or remedy given hereunder, or now or hereafter existing at law or in
equity or by statute. The failure of either party to insist at any time upon the strict performance of
any of the covenants or agreements or to exercise any option, right, power or remedy contained in
this lease, shall not be construed as a waiver or a relinquishment thereof for the future. A receipt
by the Lessor of any Basic Rent or any additional rent with knowledge of the breach of any covenant
or agreement contained in this lease shall not be deemed a waiver of such breach, and no waiver by
either party of any provision of this lease shall be deemed to have been made unless expressed in
writing and signed by such party. In addition to the other remedies provided in this lease, each party
shall be entitled to injunctive relief in case of violation, or attempted or threatened violation, of any
of the covenants, agreements, conditions or provisions of this lease or to a decree compelling
performance of any of the covenants, agreements, conditions or provisions of this lease or to any
other remedy allowed to either party at law or in equity.
If either party shall be in default in the performance of any of its obligations under this lease,
and an action shall be brought for the enforcement thereof in which it shall be determined that a
party was in default, the losing party shall pay to prevailing party all the expenses incurred in
connection therewith, including reasonable attorney's fees.
20. MEMORANDUM OF LEASE
The Lessor and Lessee shall execute a short form memorandum of this lease for recording
purposes in the county in which the Leased Premises are located.
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21. ADDITIONAL REPRESENTATIONS BY LESSEE
The Lessee herein makes the following representations as the basis for its covenants herein:
A. The execution and delivery of this lease, the consummation of the transactions
contemplated hereby, and the fulfilment of the terms and conditions hereof do not and will not
conflict with or result in breach of any of the terms or conditions of any state or local law.
22. ESTOPPEL CERTIFICATES
Either party to this lease will, at any time from time to time, upon no less than ten (10)
business days' prior request by the other party execute, acknowledge and deliver to the requesting
party a statement in writing, executed by an executive officer of such party, certifying that this lease
is unmodified and in full force and effect and the date to which the Basic Rent and additional rent
and other charges have been paid, if such be the case, and further stating whether or not to the
knowledge of the signer of such certificate that the other party is in default in the performance of
any covenant, agreement or conditions contained in this lease and, if so, specifying each such
default of which the signer may have knowledge, it being intended that any such statement delivered
pursuant to this Section 22 may be relied upon by any prospective purchaser or mortgagee of the
Leased Premises or any assignee of such mortgagee or a purchaser of the leasehold estate.
23. NOTICES, DEMANDS AND OTHER INSTRUMENTS
Any notice or communication given under the terms of this Lease shall be in writing and
shall be delivered in person, sent by any public or private express delivery service or deposited with
the United States Postal Service or a successor agency, certified or registered mail, return receipt
requested, postage pre -paid, addressed as set forth in the Basic Provisions, or at such other address
as a party may from time to time designate by notice under this Article 23. Notice given by personal
delivery or by public or private express delivery service shall be effective upon delivery, notice sent
by mail shall be deemed to have occurred upon deposit of the notice in the United States Mail. The
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 15
inability to deliver a notice because of a changed address of which no notice was given or a rejection
or other refusal to accept any notice shall be deemed to be the receipt of the notice as of the date of
such inability to deliver or rejection or refusal to accept. Any notice to be given by the Lessor may
be given by the legal counsel and/or the authorized agent of the Lessor.
24. NO MERGER
There shall be no merger of this lease or of the leasehold estate hereby created with the fee
estate in the Leased Premises or any part thereof by reason of the fact that the same person may
acquire or hold directly or indirectly, this lease or the leasehold estate hereby created of any interest
in this lease or in such leasehold estate as well as the fee estate in the Leased Premises or any
interest in such fee estate.
25. SURRENDER
Upon the expiration or sooner termination of this lease, the Lessee shall peaceably and
quietly leave, yield up and surrender the Leased Premises to the Lessor in the same condition in
which the Leased Premises were received from the Lessor at the commencement of the term of this
lease, ordinary wear and tear excepted, but clean, orderly and free of occupants, except those tenants
occupying space pursuant to leases which have been approved by the Lessor pursuant to Section 17.
Subject to the provisions of Section 14(b), the Lessee shall remove from the Leased Premises within
five (5) business days after such expiration or sooner termination all property situated thereon which
is owned by the Lessee and the Lessee shall, at its sole cost and expense, repair any damage caused
by such removal. Property of the Lessee not so removed shall become the property of the Lessor,
which Lessor may thereafter cause to be removed from the Leased Premises and disposed of, but
the cost of any such removal and disposition as well as the cost of repairing any damage caused by
such removal shall be borne by the Lessee.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 16
26. SEPARABILITY
Each and every covenant and agreement contained in this lease shall be and for all purposes
construed to be a separate and independent covenant and agreement and the breach of any covenants
or agreements contained herein by the Lessor shall in no way or manner discharge or relieve the
Lessee from the Lessee's obligation to perform each and every covenant and agreement contained
herein. If any term or provision of this lease or the application thereof to any person or
circumstances shall to any extent be invalid or unenforceable, the remainder of this lease or the
application of such term or provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term and provision of this lease
shall be valid and shall be enforced to the fullest extent permitted by law.
27. BINDING EFFECT
All of the covenants, conditions and obligations herein contained shall be binding upon and
inure to the benefit of the respective successors and assigns of the parties hereto to the same extent
as if such successor and assign were in each case named as a party to this lease. This lease may not
be changed, modified or discharged except by a writing signed by the Lessor and Lessee.
28. HEADINGS AND TERMS
The headings to the various sections of this lease have been inserted for reference only and
shall not in any manner be construed as modifying, amending or affecting in any way the express
terms and provisions hereof. The term "person" when used in this lease shall mean any individual,
corporation, partnership, firm, trust, joint venture, business association, syndicate, combination,
organization or any other person or entity. The term "business day" when used in this lease shall
mean any day other than Saturday, Sunday or any legal holiday under the laws of the United States
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 17
or the state where the property is located. The terms "renewal period", "renewal term" and
"extended term" are used synonymously.
29. RIGHT TO INSPECT
Lessee understands and acknowledges that the Lessor shall have the right to enter upon the
premise upon reasonable request to the Lessee for the purposes of inspection at any time during the
term of the Lease. The Lessor acknowledges that the Lessee is a governmental agency, has certain
records and documents that are confidential by law, and no inspection of the premises grants Lessor
any right to inspect any documents that, by virtue of law, are private, confidential, or privileged.
Lessor further acknowledges that any inspection during normal business hours must be subject to
the right of the public to receive governmental services during normal business hours.
30. NO POWER TO CHARGE REVERSION
The Lessee shall not have the power to do any act or make any contract which may create
or be the foundation for any lien upon the present estate, reversion or other estate of the Lessor in
the Leased Premises or the improvements thereon.
31. LAW
This agreement shall be governed by the laws of the State of Arizona and specifically the
provisions of A.R.S. § 38-511.
32. FORCE MAJEURE
Any prevention, delay, or stoppage due to strikes, lockouts, labor disputes, act of God,
inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental
restrictions, regulations or controls, judicial orders, enemy or hostile government actions, civil
commotion, fire or other casualty and other causes beyond the reasonable control of the Lesssor
shall excuse the Lessor's performance under this Lease for the period of any such prevention, delay,
or stoppage.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 18
33. SEVERABILITY
If any terms or provisions of this Lease, or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such terms to persons or circumstances other than those to which it is invalid or
unenforceable shall not be affected thereby and each term and provision hereof shall be valid and
enforced to the fullest extent permitted by law.
34. EXCULPATION
Lessee, as a material part of the consideration to the Lessor, hereby assumes all risk of
damage to property, injury and death to persons and all claims of any other nature resulting from
Lessee's use of all or any part of the Leased Premises and/or the Buildings and Lessee hereby
waives all claims of any other nature resulting from Lessee's use of all or any part of the Leased
Premises and/or the Buildings and Lessee hereby waives all claims against Lessor arising out of the
Lessee's use of all or any part of the Leased Premises and/or the Buildings. Neither Lessor nor its
agents or employees shall be liable for any damaged property of Lessee entrusted to any employee
or agent of Lessor or for loss of or damage to any property of Lessee by theft or otherwise. Lessor
shall not be liable for any injury or damage to persons or property resulting from any cause
including but not limited to, fire, explosion, falling plaster, steam, gas, electricity, sewage, odor,
noise, water or rain which may leak from any part of the Buildings, or from the roof of any structure
on the property, or from any streets or subsurface on or adjacent to the Buildings or the Property,
or from any other place resulting from dampness or any other causes whatsoever, unless caused
solely by the gross negligence or willful misconduct of the Lessor. Neither Lessor nor its employees
or agents shall be liable for any defects in the Leased Premises and/or the Buildings, nor shall Lessor
be liable for the negligence or misconduct, including, but not limited to, criminal acts, by
maintenance or other personnel or contractors serving the Leased Premises and/or the Buildings,
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 19
other tenants or third parties, unless Lessor is grossly negligent or guilty of willful misconduct. All
property of the Lessee kept or stored on the Property shall be so kept or stored
P p y p at the risk of Lessee
only, and Lessee shall indemnify, defend and hold Lessor harmless for, from and against any claims
arising out of damage to the same, including subrogation claims by Lessee's insurance carriers,
unless such damage shall be caused by the willful act or gross neglect of Lessor and through no fault
of Lessee. None of the events or conditions set forth in this Article 34 shall be deemed a
constructive or actual eviction or result in a termination of this Lease, nor shall the Lessee be
entitled to any abatement or reduction of the Annual Basic Rent or Additional Rent by reason of
such events or conditions. Lessee shall give prompt notice to Lessor with respect to any defects,
fires or accidents which Lessee observes in the Leased Premises and/or the Buildings.
35. LESSOR'S RIGHT TO PERFORM LESSEE OBLIGATIONS
All covenants and agreements to be performed by the Lessee under any terms of this Lease
shall be performed by Lessee at Lessee's sole cost and expense and without any abatement of
Annual Basic Rent or Additional Rent. If the Lessee shall fail to pay any sum of money, other than
Annual Basic Rent required to be paid by it under this Lease, or shall fail to perform any other act
on its part to be performed under this Lease, and such failure shall continue for ten (10) days after
notice of such failure by Lessor (or such shorter period of time as may be reasonable in the event
of an emergency), Lessor may (but shall not be obligated to do so) without waiving or releasing
Lessee from any of Lessee's obligations, make any such payment or perform any such other act on
behalf of Lessee. All sums so paid by the Lessor and all necessary incidental costs, together with
interest at the greater of (a) 10% per annum or (b) the rate of interest per annum publicly announced,
quoted or published from time to time by Bank of America, at its Phoenix, Arizona office as its
"reference rate" plus four (4) percentage points, from the date of such payment by Lessor until
reimbursement in full by Lessee (the "Default Rate"), shall be payable to the Lessor as Additional
Z:\WPDATA\FH\MasterLease- LukendaUpdated. wpd 20
Rent with the next monthly installment of Annual Basic Rent; provided, however, in no event shall
the "Default Rate" exceed the maximum rate (if any) permitted by applicable law.
36. ASSUMPTION AGREEMENT
If Lessor consents to an assignment, sublease, or other transfer by Lessee of all or any
portion of Lessee's interest under this Lease, Lessee shall execute and deliver to Lessor, and cause
the transferee to execute and deliver to Lessor an instrument in the form and substance acceptable
to Lessor in which (a) the transferee adopts this Lease and assumes and agrees to perform, jointly
and severally with Lessee, all of the obligations under this Lease, (b) Lessee acknowledges that it
remains primarily liable for payment of Annual Basic Rent, Additional Rent, and other obligations
under this Lease, Lessee subordinates to Lessor's statutory lien, contract lien, and security interest,
any liens, security interests, or other rights which Lessee may claim with respect to any property of
transferee and (d) the transferee agrees to use and occupy the Leased Premises solely for the purpose
specified in Article 5 and otherwise in strict accordance with this Lease.
37. ARBITRATION
Any controversy or claims arising out of or relating to this Lease, or the breach thereof, shall be
settled by arbitration administered by the American Arbitration Association in accordance with its
Commercial (or other) Arbitration Rules (including the Emergency Interim Relief Procedures) and
judgment on the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction
thereof.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 21
IN WITNESS WHEREOF, the parties hereto have executed sealed and delivered this Lease,
containing pages 1 through 20 inclusive in quadruplicate by their duly authorized officers as of the
date first above written.
Lessor:
562502 ONTARIO, INC., an
Ontario (Canada) corporation
IM
Title
STATE OF )
ss
County of )
The foregoing document was subscribed and sworn to before me by a person who
acknowledged his/her authorization to execute this agreement on behalf of the above -noted
corporation this _ day of , 2001.
Notary Public
My Commission expires:
Lessee:
THE TOWN OF FOUNTAIN HILLS
By
Sharon Morgan, Mayor
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 22
ATTEST:
Cassie Hansen, Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 23
EXHIBIT "A"
All that certain parcel of land in the County of Maricopa, State of Arizona, being a portion
of Section fourteen (14), Township Three (3) North, Range six (6), East of the Gila and Salt River
Base and Meridian, being more particularly described as follows:
Commencing at the centerline intersection of Verde River Drive, 84.00 feet in width and
Palisades Boulevard, 110.00 feet in width as shown on Plat of Recorded Tract No. 208 as recorded
in Book 144 at page 4 of Official records of said County; thence northwesterly along the centerline
of said Palisades Boulevard, North 69 degrees 21 minutes, 52 seconds West, 352.50 feet; thence
North 20 degrees, 38 minutes, 08 seconds East, 55.00 feet to the TRUE POINT OF BEGINNING;
thence North 02 degrees 30 minutes, 00 seconds East, 184.63 feet; thence North 69 degrees, 31
minutes, 32 seconds West, 22.95 feet; thence North 02 degrees, 30 minutes, 00 second East, 155.00
4W feet to a point on the Southerly right-of-way line of La Montana Drive, 84.00 feet in width as shown
on Plat of Recorded Tract No. 102, as recorded in Book 142 at page 12 of Official Records of said
County; thence Southeasterly along said Southerly right-of-way line, South 87 degrees, 30 minutes,
00 seconds East, 260.90 feet to the beginning of a tangent curve being concave Northwesterly and
having a radius of 542.00 feet; thence Northeasterly along said curve through a central angle of 21
degrees, 00 minutes, 00 seconds and an arc distance of 198.654 feet; thence tangent from last said
curve North, 71 degrees, 30 minutes, 00 seconds East, 178.55 feet; thence South 02 degrees, 30
minutes, 00 seconds West, 643.23 feet to a point on the Northerly right-of-way line of said Palisades
Boulevard; thence Northwesterly along said Northerly right-of-way line North 69 degrees, 21
minutes, 52 seconds West, 631.37 feet to the TRUE POINT OF BEGINNING.
Z:\WPDATA\FH\MasterLease-LukendaUpdated.wpd 24
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90 :
MEMORANDUM
TO: Honorable Mayor and Town Council
FROM: William E. Farrell, Town Attorne,
THROUGH: Julie A. Ghetti, CPA, Supervisor,
RE: Resolution 2001-50
Ordinance 01-21
DATE: November 15, 2001
In the Spring of 1995 the Town of Fountain Hills adopted the Model City Tax Code that
enacted the local sales tax. The Model City Tax Code (MCTC) was prepared by the League
of Arizona Cities and Towns and was originally drafted in response to a recommendation
adopted by a legislatively created municipal sales tax study commission. The MCTC
addressed concerns by the business community about the wide divergence in local transaction
privilege taxes and the resulting difficulty in compliance. This was particularly true for multi -
jurisdictional taxpayers who are paying tax not only to the state but also to two or more cities
and towns throughout the state. The MCTC provides a greater degree of uniformity, and also
retains the right of individual cities and towns to determine the items taxed as well as the
exemptions to be granted.
A group of city auditors and the Department of Revenue, collectively called the Unified Audit
Committee, meet regularly to review tax code issues and recent changes to state law and their
effect on the Model City Tax Code. The committee makes recommendations to the Municipal
Tax Code Commission, which has the authority to make amendments to the Code for
compliance. The recommendations for 2001 are enclosed for your perusal. The proposed
changes are primarily clarifications of existing regulations and will not significantly affect the
Town's sales tax receipts. A brief summary of the changes follows:
1. Clarification on the exemption of installation, assembly, repair or maintenance of
income -producing capital equipment under the contracting classification.
2. Codifies the non taxation of post -construction pest control and termite treatments to
reflect change in state law (HB2385, Laws 2000, Chapter 33).
3. Clarifies the language of the Model City Tax Code regarding the taxation of
residential care facilities.
4. Clarifies language relating to the exemption for rental, leasing, licensing or sales of
alternative fueled vehicles.
5. Places into the Model City Tax Code the state preemption (HB2334, Laws 2000,
Chapter 397) of taxation of internet access charges.
6. Amends the Tax Code to require public comment on draft guidelines developed for
the Model City Tax Code by the Unified Audit Committee.
7. Adds a new Section 8A-553 outlining regulations for examination of taxpayer records
and joint audits conducted by the State and the Town of Fountain Hills.
Approval of the ordinance and resolution are required for an effective date of January 1, 2002
that is consistent with the other cities and towns under the Model City Tax Code.
League of Arizona
1820 W. Washington -Phoenix, AZ 85007 • Phone: (602) 258-5786 • Fax: (602) 253-3874
LCitieSAND Towns Email: league@mg.state.az.us • Web site: www.azleague.org
October 10, 2001
TO: Cassie Hansen, Town Clerk, Fountain Hills
FROM: Byron D. Smith, Member Services Coordinator
SUBJECT: TAX CODE AMENDMENT FOR ADOPTION
Enclosed are a new set of amendments for your tax code; these are the 2001 Tax Code Amendments.
Final approval of the amendments occurred at a meeting of the Municipal Tax Code Commission this
summer.
These amendments are a combination of changes suggested by the Unified Audit Committee, a group
of city auditors plus the Department of Revenue, which meets regularly to review tax code issues and
recent changes to state law. All of the amendments are designed to reflect recent changes in state law
to make compliance with the tax code easier for businesses.
We urge your adoption of the amendments as soon as possible, so that we may have a consistent
effective date of January 1, 2002. To assist in the adoption, we have tailored the ordinance to the
current provisions of your Code including numbering. The amendment is designed to be adopted by
reference and an adopting ordinance and resolution are also enclosed.
A summary of the amendment provisions has also been included as a part of this package. We hope
this document will assist in explaining the amendment to your mayor and council.
Following adoption of the amendment, please send us a copy of your adopting ordinance and we will
in turn make the conforming changes to your tax code and send the revisions to you. Please let me
know if there is anything we can do to assist you in this effort.
We thank you for your assistance in this effort.
2001AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS
Section 1. Section 8A-415 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-415. Construction contracting: construction contractors.
(a) The tax rate shall be at an amount equal to one and six -tenths percent (1.6%) of the gross income
from the business upon every construction contractor engaging or continuing in the business activity
of construction contracting within the Town.
(1) However, gross income from construction contracting shall not include charges related to
groundwater measuring devices required by A.R.S. Section 45-604.
(2) (Reserved)
(3) gross income from construction contracting shall not include gross income from the sale of
manufactured buildings taxable under Section 8A-427.
(b) Deductions and exemptions
(1) Gross income derived from acting as a "subcontractor" shall be exempt from the tax
imposed by this Section.
(2) All construction contracting gross income subject to the tax and not deductible herein shall
be allowed a deduction of thirty-five percent (35%).
(3) The gross proceeds of sales or gross income attributable to the purchase of machinery,
equipment or other tangible personal property that is exempt from or deductible from
privilege or use tax under:
(A) Section 8A-465, subsections (g) and (p)
(B) Section 8A-660, subsections (g) and (p)
shall be exempt or deductible, respectively, from the tax imposed by this Section.
(4) The gross proceeds of sales or gross income that is derived from a contract entered into
for the installation, assembly, repair or maintenance of income -producing capital equipment,
as defined in Section 8A-110, THAT IS DEDUCTED FROM THE RETAIL
CLASSIFICATION PURSUANT TO SECTION 8A-465(g) that does not become a
permanent attachment to a building, highway, road, railroad, excavation or manufactured
building or other structure, project, development or improvement shall be dedtreted
EXEMPT from the tax imposed by this Section. If the ownership of the realty is separate
from the ownership of the income -producing capital equipment, the determination as to
permanent attachment shall be made as if the ownership was the same. The deduction
provided in this paragraph does not include gross proceeds of sales or gross income from
that portion of any contracting activity which consists of the development of, or modification
to, real property in order to facilitate the installation, assembly, repair, maintenance or
removal of the income -producing capital equipment. For purposes of this paragraph,
"permanent attachment" means at least one of the following:
(A) to be incorporated into real property.
(B) to become so affixed to real property that it becomes part of the real property.
(C) to be so attached to real property that removal would cause substantial damage to
the real property from which it is removed.
(5) The gross proceeds of sales or gross income received from a contract for the construction
of an environmentally controlled facility for the raising of poultry for the production of eggs
and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed
under this Section.
(6) The gross proceeds of sales or gross income that is derived from the installation, assembly,
repair or maintenance of cleanrooms that are deducted from the tax base of the retail
classification pursuant to Section 8A-465, subsection (g) shall be exempt from the tax
imposed under this Section.
(7) The gross proceeds of sales or gross income that is derived from a contract entered into
with a person who is engaged in the commercial production of livestock, livestock products
or agricultural, horticultural, viticultural or floricultural crops or products in this State for the
construction, alteration, repair, improvement, movement, wrecking or demolition or addition
to or subtraction from any building, highway, road, excavation, manufactured building or
otherstructure, project, developmentor improvement used directly and primarily to prevent,
monitor, control or reduce air, water or land pollution shall be exempt from the tax imposed
under this Section.
(8) THE GROSS PROCEEDS OF SALES OR GROSS INCOME RECEIVED FROM A POST
CONSTRUCTION CONTRACTTO PERFORM POST -CONSTRUCTION TREATMENT OF
REAL PROPERTY FOR TERMITEAND GENERAL PESTCONTROL, INCLUDING WOOD
DESTROYING ORGANISMS, SHALL BE EXEMPT FROM TAX IMPOSED UNDER THIS
SECTION.
(c) Subcontractor means a construction contractor performing work for either:
(1) a construction contractor who has provided the subcontractor with a written declaration that
he is liable for the tax for the project and has provided the subcontractor his town Privilege
License number.
(2) an owner -builder who has provided the subcontractor with a written declaration that:
(A) the owner -builder is improving the property for sale; and
(B) the owner -builder is liable for the tax for such construction contracting activity; and
(C) the owner -builder has provided the contractor his town Privilege License number.
(3) a person selling new manufactured buildings who has provided the subcontractor with a
written declaration that he is liable for the tax for the site preparation and set-up; and
provided the subcontractor his Town Privilege License number.
Subcontractor also includes a construction contractor performing work for another subcontractor as defined
above.
Section 2. Section 8A-416 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-416. Construction contracting: speculative builders.
(a) The tax shall be equal to one and six -tenths percent (1.6%) of the gross income from the business
activity upon every person engaging or continuing in business as a speculative builder within the
Town.
(1) The gross income of a speculative builder considered taxable shall include the total selling
price from the sale of improved real property at the time of closing of escrow or transfer of
title.
(2) "Improved Real Property" means any real property:
(A) upon which a structure has been constructed; or
(B) where improvements have been made to land containing no structure (such as
paving or landscaping); or
(C) which has been reconstructed as provided by Regulation; or
(D) where water, power, and streets have been constructed to the property line.
(3) "Sale of Improved Real Property" includes any form of transaction, whether characterized
as a lease or otherwise, which in substance is a transfer of title of, or equitable ownership
in, improved real property and includes any lease of the property for a term of thirty (30)
years or more (with all options for renewal being included as a part of the term). In the case
of multiple unit projects, "sale" refers to the sale of the entire project or to the sale of any
individual parcel or unit.
2
(4) "Partially Improved Residential Real Property,' as used in this Section, means any
1%W improved real property, as defined in subsection (a)(2) above, being developed for sale to
individual homeowners, where the construction of the residence upon such property is not
substantially complete at the time of the sale.
(b) Exclusions.
(1)
In cases involving reconstruction contracting, the speculative builder may exclude from
gross income the prior value allowed for reconstruction contracting in determining his
taxable gross income, as provided by Regulation.
(2)
Neither the cost nor the fair market value of the land which constitutes part of the improved
real property sold may be excluded or deducted from gross income subject to the tax
imposed by this Section.
(3)
(Reserved)
(4)
A speculative builder may exclude gross income from the sale of partially improved
residential real property as defined in (a)(4) above to another speculative builder only if all
of the following conditions are satisfied:
(A) The speculative builder purchasing the partially improved residential real property
has a valid Town privilege license for construction contracting as a speculative
builder; and
(B) At the time of the transaction, the purchaser provides the seller with a properly
completed written declaration that the purchaser assumes liability for and will pay
all privilege taxes which would otherwise be due the Town at the time of sale of the
partially improved residential real property; and
(C) The seller also:
(i) maintains proper records of such transactions in a manner similar to the
requirements provided in this chapter relating to sales for resale; and
(ii) retains a copy of the written declaration provided by the buyer for the
transaction; and
(iii) is properly licensed with the Town as a speculative builder and provides
the Town with the written declaration attached to the Town privilege tax
return where he claims the exclusion.
(c) Tax liability for speculative builders occurs at close of escrow or transfer of title, whichever occurs
earlier, and is subject to the following provisions, relating to exemptions, deductions and tax credits:
(1) Exemptions.
(A) The gross proceeds of sales or gross income attributable to the purchase of
machinery, equipment or other tangible personal property that is exempt from or
deductible from privilege or use tax under:
(i) Section 8A-465, subsections (g) and (p)
(ii) Section 8A-660, subsections (g) and (p)
shall be exempt or deductible, respectively, from the tax imposed by this Section.
(B) The gross proceeds of sales or gross income received from a contract for the
construction of an environmentally controlled facility for the raising of poultry for the
production of eggs and the sorting, or cooling and packaging of eggs shall be
exempt from the tax imposed under this Section.
(C) The gross proceeds of sales or gross income that is derived from the installation,
assembly, repair or maintenance of cleanrooms that are deducted from the tax
base of the retail classification pursuant to Section 8A-465, subsection (g) shall be
exempt from the tax imposed under this section.
(D) The gross proceeds of sales or gross income that is derived from a contract
entered into with a person who is engaged in the commercial production of
livestock, livestock products or agricultural, horticultural, viticultural or floricultural
crops or products in this state for the construction, alteration, repair, improvement,
movement, wrecking or demolition or addition to or subtraction from any building,
highway, road, excavation, manufactured building or other structure, project,
development or improvement used directly and primarily to prevent, monitor,
control or reduce air, water or land pollution shall be exempt from the tax imposed
under this Section.
(2) Deductions.
(A) All amounts subject to the tax shall be allowed a deduction in the amount of
thirty-five percent (35%).
(B) The gross proceeds of sales or gross income that is derived from A CONTRACT
ENTERED INTO FOR the installation, assembly, repair or maintenance of income -
producing capital equipment, as defined in Section 8A-110, THAT IS DEDUCTED
FROM THE RETAIL CLASSIFICATION PURSUANTTO SECTION 8A-465(g), that
does not become a permanent attachment to a building, highway, road, railroad,
excavation or manufactured building or other structure, project, development or
improvement shall be dusted EXEMPT from the tax imposed by this Section. If
the ownership of the realty is separate from the ownership of the income -producing
capital equipment, the determination as to permanent attachment shall be made
as if the ownership was the same. The deduction provided in this paragraph does
not include gross proceeds of sales or gross income from that portion of any
contracting activity which consists of the development of, or modification to, real
property in order to facilitate the installation, assembly, repair, maintenance or
removal of the income -producing capital equipment. For purposes of this
paragraph, "permanent attachment" means at least one of the following:
(i) to be incorporated into real property.
(ii) to become so affixed to real property that it becomes part of the real
property.
(iii) to be so attached to real property that removal would cause substantial
damage to the real property from which it is removed.
(3) Tax credits.
The following tax credits are available to owner -builders or speculative builders, not to
exceed the tax liability against which such credits apply, provided such credits are
documented to the satisfaction of the tax collector:
(A) A tax credit equal to the amount of town privilege or use tax, or the equivalent
excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge
paid directly to the vendor with respect to the tangible personal property
incorporated into the said structure or improvement to real property undertaken by
the owner -builder or speculative builder.
(B) A tax credit equal to the amount of privilege taxes paid to this Town, or charged
separately to the speculative builder, by a construction contractor, on the gross
income derived by said person from the construction of any improvement to the real
property.
(C) No credits provided herein may be claimed until such time that the gross income
against which said credits apply is reported.
Section 3. Section 8A-417 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-417. Construction contracting: owner -builders who are not speculative builders.
(a) At the expiration of twenty-four (24) months after improvement to the property is substantially
complete, the tax liability for an owner-builderwho is not a speculative builder shall be at an amount
equal to one and six -tenths percent (1.6%) of:
4
(1) the gross income from the activity of construction contracting upon the real property in
question which was realized by those construction contractors to whom the owner -builder
provided written declaration that they were not responsible for the taxes as prescribed in
Subsection 8A-415(c)(2); and
(2) the purchase of tangible personal property for incorporation into any improvement to real
property, computed on the sales price.
(b) The tax liability of this Section is subject to the following provisions, relating to exemptions,
deductions and tax credits:
(1) Exemptions.
(A) The gross proceeds of sales or gross income attributable to the purchase of
machinery, equipment or other tangible personal property that is exempt from or
deductible from privilege or use tax under:
(i) Section 8A-465, subsections (g) and (p)
(i i) Section 8A-660, subsections (g) and (p)
shall be exempt or deductible, respectively, from the tax imposed by this Section.
(B) The gross proceeds of sales or gross income received from a contract for the
construction of an environmentally controlled facility for the raising of poultry forthe
production of eggs and the sorting, or cooling and packaging of eggs shall be
exempt from the tax imposed under this Section.
(C) The gross proceeds of sales or gross income that is derived from the installation,
assembly, repair or maintenance of cleanrooms that are deducted from the tax
base of the retail classification pursuant to Section 8A-465, subsection (g) shall be
exempt from the tax imposed under this Section.
(D) The gross proceeds of sales or gross income that is derived from a contract
entered into with a person who is engaged in the commercial production of
® livestock, livestock products or agricultural, horticultural, viticultural or floricultural
crops or products in this state for the construction, alteration, repair, improvement,
movement, wrecking or demolition or addition to or subtraction from any building,
highway, road, excavation, manufactured building or other structure, project,
development or improvement used directly and primarily to prevent, monitor,
control or reduce air, water or land pollution shall be exempt from the tax imposed
under this Section.
(2) Deductions.
(A) All amounts subject to the tax shall be allowed a deduction in the amount of
thirty-five percent (35%).
(B) The gross proceeds of sales or gross income that is derived from A CONTRACT
ENTERED INTO FOR the installation, assembly, repair or maintenance of income -
producing capital equipment, as defined in Section 8A -110, THAT IS DEDUCTED
FROM THE RETAIL CLASSIFICATION PURSUANTTO SECTION 8A-465(g), that
does not become a permanent attachment to a building, highway, road, railroad,
excavation or manufactured building or other structure, project, development or
improvement shall be dedtreted-EXEMPT from the tax imposed by this Section. If
the ownership of the realty is separate from the ownership of the income -producing
capital equipment, the determination as to permanent attachment shall be made
as if the ownership was the same. The deduction provided in this paragraph does
not include gross proceeds of sales or gross income from that portion of any
contracting activity which consists of the development of, or modification to, real
property in order to facilitate the installation, assembly, repair, maintenance or
removal of the income -producing capital equipment. For purposes of this
paragraph, "permanent attachment" means at least one of the following:
(i) to be incorporated into real property.
(ii) to become so affixed to real property that it becomes part of the real
property.
(iii) to be so attached to real property that removal would cause substantial
damage to the real property from which it is removed.
(3) Tax credits.
The following tax credits are available to owner -builders and speculative builders, not to
exceed the tax liability against which such credits apply, provided such credits are
documented to the satisfaction of the tax collector:
(A) A tax credit equal to the amount of town privilege or use tax, or the equivalent
excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge
paid directly to the vendor with respect to the tangible personal property
incorporated into the said structure or improvement to real property undertaken by
the owner -builder or speculative builder.
(B) A tax credit equal to the amount of privilege taxes paid to this Town, or charged
separately to the speculative builder, by a construction contractor, on the gross
income derived by said person from the construction of any improvement to the real
property.
(C) No credits provided herein may be claimed until such time that the gross income
against which said credits apply is reported.
(c) The limitation period for the assessment of taxes imposed by this Section is measured based upon
when such liability is reportable, that is, in the reporting period that encompasses the twenty-fifth
(25th) month after said unit or project was substantially complete. Interest and penalties, as
provided in Section 8A-540, will be based on reportable date.
(d) (Reserved)
Section 4. Section 8A-445 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-445. Rental, leasing, and licensing for use of real property.
(a) The tax rate shall be at an amount equal to one and six -tenths percent (1.6%) of the gross income
from the business activity upon every person engaging or continuing in the business of leasing or
renting real property located within the Town for a consideration, to the tenant in actual possession,
or the licensing for use of real property to the final licensee located within the Town for a
consideration including any improvements, rights, or interest in such property; provided further that:
(1) Payments made by the lessee to, or on behalf of, the lessor for property taxes, repairs, or
improvements are considered to be part of the taxable gross income.
(2) Charges for such items as telecommunications, utilities, pet fees, or maintenance are
considered to be part of the taxable gross income.
(3) However, if the lessor engages in telecommunication activity, as evidenced by installing
individual metering equipment and by billing each tenant based upon actual usage, such
activity is taxable under Section 8A-470.
(b) If individual utility meters have been installed for each tenant and the lessor separately charges
each single tenant for the exact billing from the utility company, such charges are exempt.
(c) Charges by a qualifying hospital, qualifying community health center or a qualifying health care
organization to patients of such facilities for use of rooms or other real property during the course
of their treatment by such facilities are exempt.
9
(d) Charges for joint pole usage by a person engaged in the business of providing or furnishing utility
or telecommunication services to another person engaged in the business of providing or furnishing
utility or telecommunication services are exempt from the tax imposed by this Section.
(e) Exempt from the tax imposed by this Section is gross income derived from the rental, leasing, or
licensing for use of real property to a qualifying hospital, qualifying community health center or a
qualifying health care organization, except when the property so rented, leased, or licensed is for
use in activities resulting in gross income from unrelated business income as that term is defined
in 26 U.S.C. Section 512.
(f) A person who has less than three (3) apartments, houses, trailer spaces, or other lodging spaces
rented, leased or licensed or available for rent, lease, or license within the State and no units of
commercial property for rent, lease, or license within the State, is not deemed to be in the rental
business, and is therefore exempt from the tax imposed by this Section on such income. However,
a person who has one (1) or more units of commercial property is subject to the tax imposed by this
Section on all such lodging spaces and commercial units rental, lease, or license income even
though said person may have fewer than three (3) lodging spaces.
(g) (Reserved)
(h) The tax prescribed by this Section shall not include gross income from the rental, leasing, or
licensing of lodging or lodging space to an individual who resides therein.
(i) (Reserved)
(j) Exempt from the tax imposed by this Section is gross income derived from the activities taxable
under Section 8A-444 of this code.
(k) (Reserved)
(1) (Reserved)
(m) (Reserved)
(n) Notwithstanding the provisions of Section 8A-200(b), the fair market value of one (1) apartment, in
an apartment complex provided rent free to an employee of the apartment complex is not subject
to the tax imposed by this Section. For an apartment complex with more than fifty (50) units, an
additional apartment provided rent free to an employee for every additional fifty (50) units is not
subject to the tax imposed by this Section.
(o) Income derived from incarcerating ordetaining prisoners who are under the jurisdiction of the United
States, this State or any other state or a political subdivision of this State or of any other state in a
privately operated prison, jail or detention facility is exempt from the tax imposed by this Section.
(p) CHARGES BY ANY HOSPITAL, ANY LICENSED NURSING CARE INSTITUTION, OR ANY
KIDNEY DIALYSIS FACILITY TO PATIENTS OF SUCH FACILITIES FOR THE USE OF ROOMS
OR OTHER REAL PROPERTY DURING THE COURSE OF THEIR TREATMENT BY SUCH
FACILITIES ARE EXEMPT.
(q) CHARGES TO PATIENTS RECEIVING "PERSONAL CARE" OR "DIRECTED CARE", BY ANY
LICENSED ASSISTED LIVING FACILITY, LICENSED ASSISTED LIVING CENTER OR LICENSED
ASSISTED LIVING HOME AS DEFINED AND LICENSED PURSUANT TO CHAPTER 4 TITLE 36
ARIZONA REVISED STATUTES AND TITLE 9 OF THE ARIZONA ADMINISTRATIVE CODE ARE
EXEMPT.
Section 5. Section 8A-450 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-450. Rental, leasing, and licensing for use of tangible personal property.
(a) The tax rate shall be at an amount equal to one and six -tenths percent (1.6%) of the gross income
from the business activity upon every person engaging or continuing in the business of leasing,
licensing for use, or renting tangible personal property for a consideration, including that which is
semi -permanently or permanently installed within the Town as provided by Regulation.
(b) Special provisions relating to long-term motor vehicle leases. A lease transaction involving a motor
vehicle for a minimum period of twenty-four (24) months shall be considered to have occurred at
the location of the motor vehicle dealership, rather than the location of the place of business of the
lessor, even if the lessor's interest in the lease and its proceeds are sold, transferred, or otherwise
assigned to a lease financing institution; provided further that the city or town where such motor
vehicle dealership is located levies a Privilege Tax or an equivalent excise tax upon the transaction.
(c) Gross income derived from the following transactions shall be exempt from Privilege Taxes imposed
by this Section:
(1)
rental, leasing, or licensing for use of tangible personal property to persons engaged or
continuing in the business of leasing, licensing for use, or rental of such property.
(2)
rental, leasing, or licensing for use of tangible personal property that is semi -permanently
or permanently installed within another city or town that levies an equivalent excise tax on
the transaction.
(3)
rental, leasing, or licensing for use of film, tape, or slides to a theater or other person taxed
under Section 8A-410, or to a radio station, television station, or subscription television
system.
(4)
rental, leasing, or licensing for use of the following:
(A) prosthetics.
(B) income -producing capital equipment.
(C) mining and metallurgical supplies.
These exemptions include the rental, leasing, or licensing for use of tangible personal
property which, if it had been purchased instead of leased, rented, or licensed by the lessee
or licensee, would qualify as income -producing capital equipment or mining and
metallurgical supplies.
(5)
rental, leasing, or licensing for use of tangible personal property to a qualifying hospital,
qualifying community health center or a qualifying health care organization, except when
the property so rented, leased, or licensed is for use in activities resulting in gross income
from unrelated business income as that term is defined in 26 U.S.C. Section 512 or rental,
leasing, or licensing for use of tangible personal property in this State by a nonprofit
charitable organization that has qualified under Section 501(c)(3) of the United States
Internal Revenue Code and that engages in and uses such property exclusively for training,
job placement or rehabilitation programs or testing for mentally or physically handicapped
persons.
(6)
separately billed charges for delivery, installation, repair, and/or maintenance as provided
by Regulation.
(7)
charges forjoint pole usage by a person engaged in the business of providing or furnishing
utility or telecommunication services to another person engaged in the business of
providing or furnishing utility or telecommunication services.
(8)
(Reserved)
(9)
rental, leasing, or licensing of aircraft that would qualify as aircraft acquired for use outside
the State, as prescribed by Regulation, if such rental, leasing, or licensing had been a sale.
(10)
rental, leasing and licensing for use of N ALTERNATIVE FUEL VEHICLE
that use alternative as defined in A.R.S. Section 43-1086 on or after May 5, 1999 IF
SUCH VEHICLE WAS MANUFACTURED AS A DIESEL FUEL VEHICLE AND
CONVERTED TO OPERATE ON ALTERNATIVE FUEL AND EQUIPMENT THAT IS
INSTALLED IN A CONVENTIONAL DIESEL FUEL MOTOR VEHICLE TO CONVERT THE
VEHICLE TO OPERATE ON AN ALTERNATIVE FUEL, AS DEFINED IN A.R.S. SECTION
1-215.
Section 6. Section 8A-465 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-465. Retail sales: exemptions.
Income derived from the following sources is exempt from the tax imposed by Section 8A-460:
(a) sales of tangible personal property to a person regularly engaged in the business of selling such
property.
(b) out -of -Town sales or out -of -State sales.
(c) charges for delivery, installation, or other direct customer services as prescribed by Regulation.
(d) charges for repair services as prescribed by Regulation, when separately charged and separately
maintained in the books and records of the taxpayer.
(e) sales of warranty, maintenance, and service contracts, when separately charged and separately
maintained in the books and records of the taxpayer.
(f) sales of prosthetics.
(g) sales of income -producing capital equipment.
(h) sales of rental equipment and rental supplies.
(i) sales of mining and metallurgical supplies.
(j) sales of motor vehicle fuel and use fuel which are subject to a tax imposed under the provisions of
Article I or II, Chapter 16, Title 28, Arizona Revised Statutes; or sales of use fuel to a holder of a
valid single trip use fuel tax permit issued under A.R.S. Section 28-5739, or sales of natural gas or
liquefied petroleum gas used to propel a motor vehicle.
(k) sales of tangible personal property to a construction contractor who holds a valid Privilege Tax
License for engaging or continuing in the business of construction contracting where the tangible
personal property sold is incorporated into any structure or improvement to real property as part of
construction contracting activity.
(1) sales of motor vehicles to nonresidents of this State for use outside this State if the vendor ships
or delivers the motor vehicle to a destination outside this State.
(m) sales of tangible personal property which directly enters into and becomes an ingredient or
component part of a product sold in the regular course of the business of job printing,
manufacturing, or publication of newspapers, magazines, or other periodicals. Tangible personal
property which is consumed or used up in a manufacturing, job printing, publishing, or production
process is not an ingredient nor component part of a product.
(n) (Reserved)
(1) (Reserved)
(2) (Reserved)
(o) sales to hotels, bars, restaurants, dining cars, lunchrooms, boarding houses, or similar
establishments of articles consumed as food, drink, or condiment, whether simple, mixed, or
compounded, where such articles are customarily prepared or served to patrons for consumption
on or off the premises, where the purchaser is properly licensed and paying a tax under Section
8A-455 or the equivalent excise tax upon such income.
(p) sales of tangible personal property to a qualifying hospital, qualifying community health center or
a qualifying health care organization, except when the property sold is for use in activities resulting
in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512
or sales of tangible personal property purchased in this State by a nonprofit charitable organization
that has qualified under Section 501(c)(3) of the United States Internal Revenue Code and that
engages in and uses such property exclusively fortraining, job placement or rehabilitation programs
or testing for mentally or physically handicapped persons.
(q) food purchased with food stamps provided through the food stamp program established by the Food
Stamp Act of 1977 (P.L. 95-113; 91 Stat. 958.7 U.S.C. Section 2011 et seg. or purchased with food
instruments issued under Section 17 of the Child Nutrition Act (P.L. 95-627; 92 Stat. 3603; and
P.L. 99-669; Section 4302; 42 United States Code Section 1786) but only to the extent that food
stamps or food instruments were actually used to purchase such food.
(r) (Reserved)
(1)
(Reserved)
(2)
(Reserved)
(3)
(Reserved)
(4)
(Reserved)
(s) sales of groundwater measuring devices required by A.R.S. Section 45-604.
(t) (Reserved)
(u) sales of aircraft acquired for use outside the State, as prescribed by Regulation.
(v) sales of food products by producers as provided for by A.R.S. Sections 3-561, 3-562 and 3-563.
(w) (Reserved)
(x) (Reserved)
(y) (Reserved)
(z) (Reserved)
(aa) the sale of tangible personal property used in remediation contracting as defined in Section 8A-100
and Regulation 8A-100.5.
(bb) sales of materials that are purchased by or for publicly funded libraries including school district
libraries, charter school libraries, community college libraries, state university libraries or federal,
state, county or municipal libraries for use by the public as follows:
(1) printed or photographic materials.
10
(2) electronic or digital media materials.
(cc) sales of food, beverages, condiments and accessories used for serving food and beverages to a
commercial airline, as defined in A.R.S. § 42-5061(A)(50)), that serves the food and beverages to
its passengers, without additional charge, for consumption in flight. For the purposes of this
subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking
straws, paper sacks or other disposable containers, or other items which facilitate the consumption
of the food.
(dd) in computing the tax base in the case of the sale or transfer of wireless telecommunication
equipment as an inducement to a customer to enter into or continue a contract for
telecommunication services that are taxable under Section 8A-470, gross proceeds of sales or
gross income does not include any sales commissions or other compensation received by the
retailer as a result of the customer entering into or continuing a contract for the telecommunications
services.
(ee) for the purposes of this Section, a sale of wireless telecommunication equipment to a person who
holds the equipment for sale or transfer to a customer as an inducement to enter into or continue
a contract for telecommunication services that are taxable under Section 8A-470 is considered to
be a sale for resale in the regular course of business.
(ff) sales of alternative fuel as defined in A.R.S. § 1-215, to a used oil fuel burner who has received a
Department of Environmental Quality permit to burn used oil or used oil fuel under A. R.S. § 49-426
or § 49-480.
(gg) sales of food, beverages, condiments and accessories to a public educational entity, pursuant to
any of the provisions of Title 15, Arizona Revised Statutes; to the extent such items are to be
prepared or served to individuals for consumption on the premises of a public educational entity
during school hours. For the purposes of this subsection, "accessories" means paper plates, plastic
eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers,
or other items which facilitate the consumption of the food.
(hh) sales of personal hygiene items to a person engaged in the business of and subject to tax under
Section 8A-444 of this code if the tangible personal property is furnished without additional charge
to and intended to be consumed by the person during his occupancy.
(ii) For the purposes of this Section, the diversion of gas from a pipeline by a person engaged in the
business of operating a natural or artificial gas pipeline, for the sole purpose of fueling compressor
equipment to pressurize the pipeline, is not a sale of the gas to the operator of the pipeline.
(jj) Sales of food, beverages, condiments and accessories to a nonprofit charitable organization that
has qualified as an exempt organization under 26 U.S.0 Section 501(c)(3) and regularly serves
meals to the needy and indigent on a continuing basis at no cost. For the purposes of this
subsection, "accessories" means paper plates, plastic eating utensils, napkins, papercups, drinking
straws, paper sacks or other disposable containers, or other items which facilitate the consumption
of the food.
(kk) (Reserved)
(II) sales of motor vehicles that use alternative fuel as defined in A.R.S. Section 43-1086 on or after
May 5,, 1999 IF SUCH VEHICLE WAS MANUFACTURED AS A DIESEL FUEL VEHICLE AND
CONVERTED TO OPERATE ON ALTERNATIVE FUEL AND SALES OF EQUIPMENT THAT IS
11
INSTALLED IN A CONVENTIONAL DIESEL FUEL MOTOR VEHICLE TO CONVERT THE
VEHICLE TO OPERATE ON AN ALTERNATIVE FUEL, AS DEFINED IN A.R.S. SECTION 1-215.
Section 7. Section 8A-470 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-470. Telecommunication services.
(a) The tax rate shall be at an amount equal to one and six -tenths percent (1.6%) of the gross income
from the business activity upon every person engaging or continuing in the business of providing
telecommunication services to consumers within this Town.
(1) Telecommunication
services shall include:
(A)
two-way voice, sound, and/or video communication over a communications
channel.
(B)
one-way voice, sound, and/or video transmission or relay over a communications
channel.
(C)
facsimile transmissions.
(D)
providing relay or repeater service.
(E)
providing computer interface services over a communications channel.
(F)
time-sharing activities with a computer accomplished through the use of a
communications channel.
(2) Gross
income from the business activity of providing telecommunication services to
consumers within this Town shall include:
(A)
all fees for connection to a telecommunication system.
(B)
toll charges, charges for transmissions, and charges for other telecommunications
services; provided that such charges relate to transmissions originating in the Town
and terminating in this State.
(C)
fees charged for access to or subscription to or membership in a
telecommunication system or network.
(D)
charges for monitoring services relating to a security or burglar alarm system
located within the Town where such system transmits or receives signals or data
over a communications channel.
(b) Resale telecommunication services. Gross income from sales of telecommunication services to
another provider of telecommunication services for the purpose of providing the purchaser's
customers with such service shall be exempt from the tax imposed by this Section; provided,
however, that such purchaser is properly licensed by the Town to engage in such business.
(c) Interstate transmissions. Charges by a provider of telecommunication services for transmissions
originating in the Town and terminating outside the State are exempt from the tax imposed by this
Section.
(d) (Reserved)
(e) (Reserved)
(f) Prepaid calling cards. Telecommunications services purchased with a prepaid calling card that are
taxable under Section 8A-460 are exempt from the tax imposed under this Section.
(g) INTERNET ACCESS SERVICES - THE GROSS INCOME SUBJECT TO TAX UNDER THIS
SECTION SHALL NOT INCLUDE SALES OF INTERNETACCESS SERVICES TO THE PERSON'S
SUBSCRIBERS AND CUSTOMERS. FOR THE PURPOSES OF THIS SUBSECTION:
12
(1) "INTERNET" MEANS THE COMPUTER AND TELECOMMUNICATIONS FACILITIES
THAT COMPRISE THE INTERCONNECTED WORLDWIDE NETWORK OF NETWORKS
THAT EMPLOY THE TRANSMISSION CONTROL PROTOCOL OR INTERNET
PROTOCOL, OR ANY PREDECESSOR OR SUCCESSOR PROTOCOL, TO
COMMUNICATE INFORMATION OF ALL KINDS BY WIRE OR RADIO.
(2) "INTERNET ACCESS" MEANS A SERVICE THAT ENABLES USERS TO ACCESS
CONTENT, INFORMATION, ELECTRONIC MAIL OR OTHER SERVICES OVER THE
INTERNET. INTERNET ACCESS DOES NOT INCLUDE TELECOMMUNICATION
SERVICES PROVIDED BY A COMMON CARRIER.
Section 8. Section 8A-500 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-500. Administration of this Chapter; rule making. (State Administration and Audits)
(a) The administration of this Chapter is vested in and exercised by the Town of Fountain Hills, and
except as otherwise provided, all payments shall be made to the Town of Fountain Hills. The Town
may, pursuant to an intergovernmental agreement, contract with the State of Arizona Department
of Revenue for the administration of the tax. In such cases, "Tax Collector" shall also mean the
Arizona Department of Revenue, when acting as agent in administering this tax.
(b) The Tax Collector shall prescribe the forms and procedures necessary for the administration of the
taxes imposed by this Chapter.
(c) Except where such Regulations would conflict with administrative regulations adopted by the Town
Council or with provisions of this Chapter, all regulations on the Transaction Privilege Tax adopted
by the Arizona Department of Revenue under the authority of A.R.S. Section 42-1005 shall be
considered Regulations of this Chapter and enforceable as such.
(d) Taxpayers shall be subject to the state taxpayer bill of rights (A. R.S. § 42-2051 et. seq).
(e) THE UNIFIED AUDIT COMMITTEE SHALL PUBLISH UNIFORM GUIDELINES THAT INTERPRET
THE MODEL CITY TAX CODE AND THAT APPLY TO ALL CITIES AND TOWNS THAT HAVE
ADOPTED THE MODEL CITY TAX CODE AS PROVIDED BY A.R.S. SECTION 42-6005.
(1) PRIOR TO FINALIZATION OF UNIFORM GUIDELINES THAT INTERPRET THE MODEL
CITY TAX CODE, THE UNIFIED AUDIT COMMITTEE SHALL DISSEMINATE DRAFT
GUIDELINES FOR PUBLIC COMMENT.
(2) PURSUANT TO A.R.S. SECTION 42-6005(D), WHEN THE STATE STATUTES AND THE
MODEL CITY TAX CODE ARE THE SAME AND WHERE THE ARIZONA DEPARTMENT
OF REVENUE HAS ISSUED WRITTEN GUIDANCE, THE DEPARTMENT'S
INTERPRETATION IS BINDING ON CITIES AND TOWNS.
Sec. 8A-500. Administration of this Chapter; rule making. (Local Audits)
(a) The administration of this Chapter is vested in and exercised by the Town of Superior, and except
as otherwise provided, and all payments shall be made to the Town of Superior. The town may,
pursuant to an intergovernmental agreement, contract with the State of Arizona Department of
Revenue for the administration of the tax. In such cases, "Tax Collector" shall also mean the
Arizona Department of Revenue, when acting as agent in administering this tax.
(b) The Tax Collector shall prescribe the forms and procedures necessary for the administration of the
taxes imposed by this Chapter.
13
(c) Except where such Regulations would conflict with administrative regulations adopted by the Town
*W Councilor with provisions of this Chapter, all regulations on the Transaction Privilege Tax adopted
by the Arizona Department of Revenue under the authority of A.R.S. Section 42-1005 shall be
considered Regulations of this Chapter and enforceable as such.
(d) (Reserved)
(e) THE UNIFIED AUDIT COMMITTEE SHALL PUBLISH UNIFORM GUIDELINES THAT INTERPRET
THE MODEL CITY TAX CODE AND THAT APPLY TO ALL CITIES AND TOWNS THAT HAVE
ADOPTED THE MODEL CITY TAX CODE AS PROVIDED BY A.R.S. SECTION 42-6005.
(1) PRIOR TO FINALIZATION OF UNIFORM GUIDELINES THAT INTERPRET THE MODEL
CITY TAX CODE, THE UNIFIED AUDIT COMMITTEE SHALL DISSEMINATE DRAFT
GUIDELINES FOR PUBLIC COMMENT.
(2) PURSUANT TO A.R.S. SECTION 42-6005(D), WHEN THE STATE STATUTES AND THE
MODEL CITY TAX CODE ARE THE SAME AND WHERE THE ARIZONA DEPARTMENT
OF REVENUE HAS ISSUED WRITTEN GUIDANCE, THE DEPARTMENT'S
INTERPRETATION IS BINDING ON CITIES AND TOWNS.
Section 9. Section 8A-510 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-510. Divulging of information prohibited; exceptions allowing disclosure.
(a) Except as specifically provided, it shall be unlawful for any official or employee of the Town to make
known information obtained pursuant to this Chapter concerning the business financial affairs or
operations of any person.
(b) The Town Council may authorize an examination of any return or audit of a specific taxpayer made
pursuant to this Chapter by authorized agents of the Federal Government, the State of Arizona, or
any political subdivisions.
(c) The Tax Collector may provide to an Arizona county, city, or town any information concerning any
taxes imposed in this Chapter relative to the taxing ordinances of that county, city, or town.
(d) Successors, receivers, trustees, personal representatives, executors, guardians, administrators, and
assignees, if directly interested, may be given information by the Tax Collector as to the items
included in the measure and amounts of any unpaid tax, interest, and penalties required to be paid.
(e) Upon a written direction by the Town Attorney or other legal advisor to the Town designated by the
Town Council, officials or employees of the Town may divulge the amount and source of income,
profits, leases, or expenditures disclosed in any return or report, and the amount of such delinquent
and unpaid tax, penalty, or interest, to a private collection agency having a written collection
agreement with the Town.
(f) The Tax Collector marSHALL provide information to appropriate representatives of any Arizona
city or town to comply with the provisions of A.R.S. Section 42-6003, relating
, A.R.S. SECTION 42-6005, AND A.R.S. SECTION 42-6056.
(g) The Tax Collector may provide information to authorized agents of any other Arizona governmental
agency involving the allocation of taxes imposed by Section 8A-435 upon publishing and distribution
of periodicals.
14
(h) The Tax Collector may provide information regarding the enforcement and collection of taxes
imposed by this Chapter to any governmental agency with which the Town has an agreement.
Section 10. Article V of the Tax Code of the Town of Fountain Hills is amended by adding Section
8A-542 to read:
Sec. 8A-542. PROSPECTIVE APPLICATION OF NEW LAW OR INTERPRETATION OR APPLICATION
OF LAW.
(a) UNLESS EXPRESSLY AUTHORIZED BY LAW, THE TAX COLLECTOR SHALL NOTAPPLY ANY
NEWLY ENACTED LEGISLATION RETROACTIVELY OR IN A MANNER THAT WILL PENALIZE
A TAXPAYER FOR COMPLYING WITH PRIOR LAW.
(b) IF THE TAX COLLECTOR ADOPTS A NEW INTERPRETATION OR APPLICATION OF ANY
PROVISION OF THIS CHAPTER OR DETERMINES THATANY PROVISION APPLIES TO A NEW
OR ADDITIONAL CATEGORY OR TYPE OF BUSINESS AND THE CHANGE IN
INTERPRETATION OR APPLICATION IS NOT DUE TO A CHANGE IN THE LAW:
(1) THE CHANGE IN INTERPRETATION OR APPLICATION APPLIES PROSPECTIVELY
ONLY UNLESS IT IS FAVORABLE TO TAXPAYERS.
(2) THE TAX COLLECTOR SHALL NOT ASSESS ANY TAX, PENALTY OR INTEREST
RETROACTIVELY BASED ON THE CHANGE IN INTERPRETATION OR APPLICATION.
(c) FOR PURPOSES OF SUBSECTION (b), "NEW INTERPRETATION OR APPLICATION"
INCLUDES POLICIES AND PROCEDURES WHICH DIFFER FROM ESTABLISHED
INTERPRETATIONS OF THIS CHAPTER.
(d) TAX LIABILITIES, PENALTIES AND INTEREST PAID BEFORE A NEW INTERPRETATION OR
APPLICATION OF A PROVISION OF THIS CHAPTER SHALL NOT BE REFUNDED UNLESS THE
TAXPAYER REQUESTING THE REFUND PROVIDES EVIDENCE SATISFACTORY TO THE TAX
COLLECTOR THAT ALL SUCH AMOUNTS WILL BE REFUNDED TO THE PERSON WHO PAID
AN ADDED CHARGE TO COVER THE TAX.
Section 11. Article V of the Tax Code of the Town of Fountain Hills is amended by adding Section
8A-553 to read:
Sec. 8A-553. EXAMINATION OF TAXPAYER RECORDS; JOINT AUDITS.
(a) WAIVER OF JOINT AUDIT. A TAXPAYER THAT DOES NOT AUTHORIZE A JOINT AUDIT TO
BE CONDUCTED FOR A TAX JURISDICTION IS SUBJECT TO AUDIT BY THAT TAX
JURISDICTION AT ANY TIME SUBJECT TO THE LIMITATION PROVISIONS PROVIDED IN
SECTION 8A-550.
(b) TAX JURISDICTION ACCEPTANCE OF JOINT AUDIT. IF THE ARIZONA DEPARTMENT OF
REVENUE INTENDS TO CONDUCTAN AUDIT OF A TAXPAYER, THE CITIES OR TOWNS FOR
WHOM A JOINT AUDIT IS BEING CONDUCTED MAY ACCEPT THE AUDIT BY THE ARIZONA
DEPARTMENT OF REVENUE OR MAY ELECT TO HAVE A REPRESENTATIVE PARTICIPATE,
PROVIDED THAT NO MORE THAN TWO CITY OR TOWN REPRESENTATIVES IN TOTAL MAY
PARTICIPATE.
(1) IF A CITY OR TOWN DOES NOTACCEPT THE AUDITAS AJOINTAUDIT, THE CITY OR
TOWN MAY NOT CONDUCT AN AUDIT OF THE TAXPAYER FOR FORTY-TWO
MONTHS FROM THE CLOSE OF THE LAST TAX PERIOD COVERED BY THE AUDIT
15
UNLESS AN EXCEPTION APPLIES TO THAT TAXPAYER PURSUANT TO A.R.S.
SECTION 42-2059.
(2) IFAJOINTAUDIT IS PERFORMED BYACITY OR TOWN, THE ARIZONA DEPARTMENT
OF REVENUE IS NOT PROHIBITED FROM CONDUCTING AN AUDITTHAT DOES NOT
VIOLATE THE PROVISIONS OF A.R.S. SECTION 42-2059.
Section 12. Section 8A-570 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-570. Administrative review; petition for hearing or for redetermination; finality of order.
(State Administration and Audits)
(a) Closing agreements between the Tax Collector and a taxpayer have no force of law unless made
in accordance with the provisions of A.R.S. Section 42-1113.
(b) Administrative review.
(1)
Petitions of appeal shall be made to, and hearings shall be conducted by, the Arizona
Department of Revenue, in accordance with the provisions of A.R.S. Section 42-1251, as
modified by Section 8A-571.
(2)
(Reserved)
(3)
(Reserved)
(4)
(Reserved)
(5)
Hearings shall be held by the Arizona Department of Revenue in accordance with the
provisions of A.R.S. Section 42-1251. The Department's decision may be appealed to the
State Board of Tax Appeals, in accordance with the provisions of A.R.S. Section 42-1253.
(6)
(Reserved)
(7)
(Reserved)
(8)
(Reserved)
(c) (Reserved)
(d) (Reserved)
(e) Taxpayers shall be subject to the state taxpayer bill of rights (A. R.S. § 42-2051 et. seq.)
Sec. 8A-570. Administrative review; petition for hearing or for redetermination; finality of order.
(Local Audits)
FOR THE PURPOSES OF THIS SECTION, "MUNICIPAL TAX HEARING OFFICE" MEANS THE
ADMINISTRATIVE OFFICES OF THE MUNICIPAL TAX HEARING OFFICER.
(a) Informal Conference. A taxpayer shall have the right to discuss any proposed assessment with the
auditor prior to the issuance of any assessment, but any such informal conference is not required
for the taxpayer to file a petition for administrative review.
(b) Administrative Review.
(1) Filing a Petition. Other than in the case of a jeopardy assessment, a taxpayer may contest
the applicability or amount of any tax, penalty, or interest imposed upon or paid by him
pursuant to this Chapter by filing a petition for a hearing or for redetermination with the Tax
Collector as set forth below:
(A) within forty-five (45) days of receipt by the taxpayer of notice of a determination by
the Tax Collector that a tax, penalty, or interest amount is due, or that a request for
refund or credit has been denied; or
09
(2)
(3)
(4)
(5)
(B) by voluntary payment of any contested amount when accompanied by a timely filed
return and a petition requesting a refund of the protested portion of said payment;
or
(C) by petition accompanying a timely filed return contesting an amount reported but
not paid; or
(D) by petition requesting review of denial of waiver of penalty as provided in
subsection 8A-540(g).
Extension to file a petition. In all cases, the taxpayer may request only one (1) extension
from the Tax Collector. Such request must be in writing, state the reasons forthe requested
delay and time of delay requested, and must be filed with the Tax Collector within the period
allowed above for originally filing a petition. The Tax Collector shall allow such extension
to file a petition, when such written request has been properly and timely made by the
taxpayer, but such extension shall not exceed forty-five (45) days beyond the time provided
for originally filing a petition.
Requirements for petition.
(A) The petition shall be in writing and shall set forth the reasons why any correction,
abatement, or refund should be granted, and the amount of reduction or refund
requested. The petition may be amended at any time prior to the time the taxpayer
rests his case at the hearing or such time as the Hearing Officer allows for
submitting of amendments in cases of redetermi nations without hearings. The
Hearing Officer may require that amendments be in writing, and in that case, he
shall provide a reasonable period of time to file the amendment. The Hearing
Officer shall provide a reasonable period of time for the Tax Collector to review and
respond to the petition and to any written amendments.
(B) The taxpayer, as part of the petition, may request a hearing which shall be granted
by the Hearing Officer. If no request for hearing is made the petition shall be
considered to be submitted for decision by the Hearing Officer on the matters
contained in the petition and in any reply made by the Tax Collector.
(C) The provisions of this Section are exclusive, and no petition seeking any correction,
abatement, or refund shall be considered unless the petition is timely and properly
filed under this Section.
Transmittal to Hearing Officer. The T wvnrTown shall designate a Hearing Officer, who may
be other than an employee of the Town. The Tax Collector, if designated to receive
petitions, shall forward any petition to the 1 learing Offic MUNICIPAL TAX HEARING
OFFICE (MTHO) within ten—(10) TWENTY (20) days after receipt, accompanied by
documentation as to timeliness. In cases where the Hearing Officer determines that the
petition is not timely or not in proper form, he shall notify both the taxpayer and the Tax
Collector; and in cases of petitions not in proper form only, the Hearing Officer shall provide
the taxpayer with an extension up to forty-five (45) days to correct the petition.
Hearings shall be conducted by a Hearing Officer and shall be continuous until the Hearing
Officer closes the record. The taxpayer may be heard in person or by his authorized
representative at such hearing. Hearings shall be conducted informally as to the order of
proceeding and presentation of evidence. The Hearing Officer shall admit evidence over
hearsay objections where the offered evidence has substantial probative value and
reliability. Further, copies of records and documents prepared in the ordinary course of
business may be admitted, without objection as to foundation, but subject to argument as
to weight, admissibility, and authenticity. Summary accounting records may be admitted
subject to satisfactory proof of the reliability of the summaries. In all cases, the decision of
the Hearing Officer shall be made solely upon substantial and reliable evidence. All
expenses incurred in the hearing shall be paid by the party incurring the same.
Redeterminations upon a "petition for redetermination" shall follow the same conditions,
except that no oral hearing shall be held.
17
(7) Hearing Ruling. In either case, the Hearing Officer shall issue his ruling not later than
forty-five (45) days after the close of the record by the Hearing Officer.
(8) Notice of Refund or Adjusted Assessment. Within sixty (60) days of the issuance of the
Hearing Officer's decision, the Tax Collector shall issue to the taxpayer either a notice of
refund or an adjusted assessment recalculated to conform to the Hearing Officer's decision.
(c) Stipulations that future tax is also protested. A taxpayer may enter into a stipulation with the Tax
Collector that future taxes of similar nature are also at issue in any protest or appeal. However,
unless such stipulation is made, it is presumed that the protest or appeal deals solely and
exclusively with the tax specifically protested and no other. When a taxpayer enters into such a
stipulation with the Tax Collector that future taxes of similar nature will be included in any
redetermination, hearing, or court case, it is the burden of that taxpayer to identify, segregate, and
keep record of such income or protested taxable amount in his books and records in the same
manner as the taxpayer is required to segregate exempt income.
(d) When an assessment is final.
(1) If a request for administrative review and petition for hearing or redetermination of an
assessment made by the Tax Collector is not filed within the period required by subsection
(c) above, such person shall be deemed to have waived and abandoned the right to
question the amount determined to be due and any tax, interest, or penalty determined to
be due shall be final as provided in subsections 8A-545(a) and 8A-555(f).
(2) The decision made by the Hearing Officer upon administrative review by hearing or
redetermination shall become final thirty (30) days after notice by the Tax Collector of any
refund, abatement, or assessment amount recalculated to conform to the Hearing Officer's
decision has been received by the petitioner, unless the petitioner appeals the order or
decision in the manner provided in Section 8A-575. Any tax due shall be paid within thirty
(30) days after such notice either unconditionally or under protest as part of an appeal
procedure for judicial review.
(e) The provisions of the state taxpayer bill of rights (A. R.S. Section 42-2051 et. seq.) shall not apply.
Section 13. Section 8A-660 of the Tax Code of the Town of Fountain Hills is amended to read:
Sec. 8A-660. Use tax: exemptions.
The storage or use in this Town of the following tangible personal property is exempt from the Use Tax
imposed by this Article:
(a) tangible personal property brought into the Town by an individual who was not a resident of the
Town at the time the property was acquired for his own use, if the first actual use of such property
was outside the Town, unless such property is used in conducting a business in this Town.
(b) tangible personal property, the value of which does not exceed the amount of one thousand dollars
($1,000) per item, acquired by an individual outside the limits of the Town for his personal use and
enjoyment.
(c) charges for delivery, installation, or other customer services, as prescribed by Regulation.
(d) charges for repair services, as prescribed by Regulation.
(e) separately itemized charges for warranty, maintenance, and service contracts.
18
(f) prosthetics.
(g) income -producing capital equipment.
(h) rental equipment and rental supplies.
(i) mining and metallurgical supplies.
Q) motor vehicle fuel and use fuel which are used upon the highways of this State and upon which a
tax has been imposed under the provisions of Article I or II, Chapter 16, Title 28, Arizona Revised
Statutes.
(k) tangible personal property purchased by a construction contractor, but not an owner -builder, when
such person holds a valid Privilege License for engaging or continuing in the business of
construction contracting, and where the property acquired is incorporated into any structure or
improvement to real property in fulfillment of a construction contract.
(1) sales of motor vehicles to nonresidents of this State for use outside this State if the vendor ships
or delivers the motor vehicle to a destination outside this State.
(m) tangible personal property which directly enters into and becomes an ingredient or component part
of a product sold in the regular course of the business of job printing, manufacturing, or publication
of newspapers, magazines or other periodicals. Tangible personal property which is consumed or
used up in a manufacturing, job printing, publishing, or production process is not an ingredient nor
component part of a product.
(n) rental, leasing, or licensing for use of film, tape, or slides by a theater or other person taxed under
Section 8A-410, or by a radio station, television station, or subscription television system.
(o) food served to patrons for a consideration by any person engaged in a business properly licensed
and taxed under Section 8A-455, but not food consumed by owners, agents, or employees of such
business.
(p) tangible personal property acquired by a qualifying hospital, qualifying community health center or
a qualifying health care organization, except when the property is in fact used in activities resulting
in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512.
(q) food purchased with food stamps provided through the food stamp program established by the Food
Stamp Act of 1977 (P.L. 95-113; 91 Stat. 958.7 U.S.C. Section 2011 et se . or purchased with food
instruments issued under Section 17 of the Child Nutrition Act (P.L. 95-627; 92 Stat. 3603; and
P.L. 99-669; Section 4302; 42 United States Code Section 1786).
(r) (Reserved)
(1)
(Reserved)
(2)
(Reserved)
(3)
(Reserved)
(4)
(Reserved)
(s) groundwater measuring devices required by A.R.S. Section 45-604.
(t} (Reserved)
(u) aircraft acquired for use outside the State, as prescribed by Regulation.
19
(v) sales of food products by producers as provided for by A.R.S. Sections 3-561, 3-562 and 3-563.
(w) (Reserved)
(x) (Reserved)
(y) (Reserved)
(z) tangible personal property used or stored by this Town.
(aa) tangible personal property used in remediation contracting as defined in Section 8A-100 and
Regulation 8A-100.5.
(bb) materials that are purchased by or for publicly funded libraries including school district libraries,
charter school libraries, community college libraries, state university libraries or federal, state, county
or municipal libraries for use by the public as follows:
(1) printed or photographic materials.
(2) electronic or digital media materials.
(cc) food, beverages, condiments and accessories used for serving food and beverages by a
commercial airline, as defined in A.R.S. § 42-5061(A)(50), that serves the food and beverages to
its passengers, without additional charge, for consumption in flight. For the purposes of this
subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking
straws, paper sacks or other disposable containers, or other items which facilitate the consumption
of the food.
(dd) wireless telecommunication equipment that is held for sale or transfer to a customer as an
inducement to enter into or continue a contract for telecommunication services that are taxable
under Section 8A-470.
(ee) (Reserved)
(ff) alternative fuel as defined in A.R.S. § 1-215, by a used oil fuel burner who has received a
Department of Environmental Quality permit to burn used oil or used oil fuel under A.R.S. § 49-426
or § 49-480.
(gg) food, beverages, condiments and accessories purchased by or for a public educational entity,
pursuant to any of the provisions of Title 15, Arizona Revised Statutes; to the extent such items are
to be prepared or served to individuals for consumption on the premises of a public educational
entity during school hours. For the purposes of this subsection, "accessories" means paper plates,
plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable
containers, or other items which facilitate the consumption of the food.
(hh) personal hygiene items purchased by a person engaged in the business of and subject to tax under
Section 8A-444 of this code if the tangible personal property is furnished without additional charge
to and intended to be consumed by the person during his occupancy.
(ii) The diversion of gas from a pipeline by a person engaged in the business of operating a natural or
artificial gas pipeline, for the sole purpose of fueling compressor equipment to pressurize the
pipeline, is not a sale of the gas to the operator of the pipeline.
0j) Food, beverages, condiments and accessories purchased by or for a nonprofit charitable
organization that has qualified as an exempt organization under 26 U.S.0 Section 501(c)(3) and
20
regularly serves meals to the needy and indigent on a continuing basis at no cost. For the purposes
of this subsection, "accessories" means paper plates, plastic eating utensils, napkins, paper cups,
drinking straws, paper sacks or other disposable containers, or other items which facilitate the
consumption of the food.
(kk) (Reserved)
(II) sales of motor vehicles that use alternative fuel as defined in A. R.S. Section 43-1086 on or after
May 5, 1999 IF SUCH VEHICLE WAS MANUFACTURED AS A DIESEL FUEL VEHICLE AND
CONVERTED TO OPERATE ON ALTERNATIVE FUEL AND SALES OF EQUIPMENT THAT IS
INSTALLED IN A CONVENTIONAL DIESEL FUEL MOTOR VEHICLE TO CONVERT THE
VEHICLE TO OPERATE ON AN ALTERNATIVE FUEL, AS DEFINED IN A.R.S. SECTION 1-215.
Section 14. Regulation 8A-115.1 of the Tax Code of the Town of Fountain Hills is amended to
read:
Reg. 8A-115.1. Computer hardware, software, and data services.
(a) Definitions.
(1) "Computer Hardware" (also called "computer equipment" or "peripherals") is the
components and accessories which constitute the physical computer assembly, including
but not limited to: central processing unit, keyboard, console, monitor, memory unit, disk
drive, tape drive or reader, terminal, printer, plotter, modem, document sorter, optical reader
and/or digitizer, network.
(2) "Computer Software" (also called "computer program") is tangible personal property, and
includes:
(A) "Operating Program (Software)" (also called "executive program (software)"), which
is the programming system or technical language upon which or by means of which
the basic operating procedures of the computer are recorded. The operating
program serves as an interface with user applied programs and allows the user to
access the computer's processing capabilities.
(B) "Applied Program (Software)", which is the programming system or technical
language (including the tape, disk, cards, or other medium upon which such
language or program is recorded) designed either for application in a specialized
use, or upon which or by means of which a plan for the solution of a particular
problem is based. Typically, applied programs can be transferred from one
computer to another via storage media. Examples of applied programs include:
payroll processing, general ledger, sales data, spreadsheet, word processing, and
data management programs.
(3) "Storage Medium" is any hard disk, compact disk, floppy disk, diskette, diskpack, magnetic
tape, cards, or other medium used for storage of information in a form readable by a
computer, but not including the memory of the computer itself.
(4) A "Terminal Arrangement" (also called "'on-line' arrangement") is any agreement allowing
access to a remote central processing unit through telecommunications via hardware.
(5) A "Computer Services Agreement" (also called "data services agreement") is an agreement
allowing access to a computer through a third -party operator.
(b) For the purposes of this Chapter, transfer of title and possession of the following are deemed sales
of tangible personal property and any other transfer of title, possession, or right to use for a
consideration of the following is deemed rental, leasing, or licensing of tangible personal property:
21
(1) Computer hardware or storage media. Rental, leasing, or licensing for use of computer
hardware or storage media includes the lessee's use of such hardware or storage media
on the lessor's premises.
(2) Computer software which is not custom computer programming. Such prewritten
("canned") programs may be transferred to a customer in the form of punched cards,
magnetic tape, or other storage medium, or by listing the program instructions on coding
sheets. Transfer is deemed to have occurred whether title to the storage medium upon
which the program is recorded, coded, or punched passes to the customer or the program
is recorded, coded, or punched on storage medium furnished by the customer. Gross
income from the transfer of such prewritten programs includes:
(A) the entire amount charged to the customer for the sale, rental, lease, or license for
use of the storage medium or coding sheets on which or into which the prewritten
program has been recorded, coded, or punched.
(B) the entire amount charged for the temporary transfer or possession of a prewritten
program to be directly used or to be recorded, coded, or punched by the customer
on the customer's premises.
(C) license fees, royalty fees, or program design fees; any fee present or future,
whether for a period of minimum use or of use for extended periods, relating to the
use of a prewritten program.
(D) the entire amount charged for transfer of a prewritten ("canned") program by
remote telecommunications from the transferor's place of business to or through
the customer's computer.
(E) any charge for the purchase of a maintenance contract which entitles the customer
to receive storage media on which prewritten program improvements or error
corrections have been recorded or to receive telephone or on -site consultation
services, provided that:
(i) if such maintenance contract is not optional with the customer, then the
charges for the maintenance contract, including the consultation services,
are deemed gross income from the transfer of the prewritten program.
(ii) if such maintenance contract is optional with the customer but the
customer does not have the option to purchase the consultation services
separately from the storage media containing the improvements or error
corrections, then the charges for the maintenance contract, including the
consultation services, are deemed gross income from the transfer of the
prewritten program.
(iii) if such maintenance contract is optional with the customer and the
customer may purchase the consultation services separately from the
storage media containing the improvements or error corrections, then only
the charges for such improvements or error corrections are deemed gross
income from the transfer of a prewritten program and charges for
consultation are deemed to be charges for professional services.
(c) Producing the following by means of computer hardware is deemed to be the activity of job printing
for the purposes of this Chapter:
(1) statistical reports, graphs, diagrams, microfilm, microfiche, photorecordings, or any other
information produced or compiled by a computer; except as provided in subsection (e)
below.
(2) additional copies of records, reports, manuals, tabulations, etc. "Additional Copies" are any
copies in excess to those produced simultaneously with the production of the original and
on the same printer, whether such copies are prepared by running the same program, by
using multiple printers, by looping the program, by using different programs to produce the
same output, or by other means.
22
(d) Charges for the use of communications channel in conjunction with a terminal arrangement or data
services agreement are deemed gross income from the activity of providing telecommunication
services.
(e) The following transactions are deemed direct customer services, provided that charges for such
services are separately stated and maintained as provided by Regulation 8A-100.2(e):
(1) "Custom (Computer) Programming", which is any computer software which is written or
prepared for a single customer, including those services represented by separately stated
charges for the modification of existing prewritten programs.
(A) ^••�stoffler CUSTOM computer programming is deemed a professional service
regardless of the form in which the programming is transferred.
(B) Custom programming includes such programming performed in connection with the
sale, rental, lease, or license for use of computer hardware, provided that the
charges for such are separately stated from the charges for the hardware.
(C) Custom computer programming includes a program prepared to the special order
of a customer who will use the program to produce copies of the program for sale,
rental, lease, or license. The subsequent sale, rental, lease, or license of such a
program is deemed the sale, rental, lease, or license of a prewritten program.
(2) Training services related to computer hardware or software, provided further that:
(A) the provider of such training services is deemed the ultimate consumer of all
tangible personal property used in training others or provided to such trainees
without separately itemized charge for the materials provided.
(B) training deemed a direct customer service does not include:
(i) training materials, books, manuals, etc. furnished to customers for a
charge separate from the charge for training services.
(ii) training provided to customers without separate charge as part of the sale,
rental, lease, or license of computer hardware or software, or as part of a
terminal arrangement or data services agreement.
(3) The use of computer time through the use of a terminal arrangement or a data service
agreement, but not charges for computer hardware located at the customer's place of
business (for example, the terminal, a printer attached to the terminal, a modem used to
communicate with the remote central processing unit over a telephone line).
(4) Compiling and producing, as part of a terminal arrangement or computer services
agreement, original copies of statistical reports, graphs, diagrams, microfilm, microfiche,
photorecordings, or other information for the same person who supplied the raw data used
to create such reports.
(f) The purchase, rental, lease, or license for use of computer hardware, storage media, or computer
software which is not deemed custom programming is deemed the use or storage of tangible
personal property for the purpose of this Chapter, and the amount which may be subject to Use Tax
shall be determined in the same manner as the determination of the gross income from the sale,
rental, lease, or license for use of such.
23
RESOLUTION 2001-50
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT
CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED
"THE 2001 AMENDMENTS TO THE TAX CODE OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA".
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, as follows:
Section 1. That certain document entitled "THE 2001 AMENDMENTS TO THE
TAX CODE OF THE TOWN OF FOUNTAIN HILLS, ARIZONA", three
copies of which are on file in the office of the Town clerk, is hereby
declared to be a public record, and said copies are ordered to remain on
file with the Town clerk.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, this 15`h day of November, 2001.
FOR THE TOWN O1F FOUNTAIN HILLS ATTESTED TO:
Sharon Morghn, N fa or Cassie B. Hansen,
Town Clerk
APPROVED AS TO FORM:
,t
William E. Farrell, Town Attorney
IONay
SECOND
COUNT � _ O
0R
RESOLUTION 2001-50
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT
CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED
"THE 2001 AMENDMENTS TO THE TAX CODE OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA". .
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, as follows:
Section 1. That certain document entitled "THE 2001 AMENDMENTS TO THE
TAX CODE OF THE TOWN OF FOUNTAIN HILLS, ARIZONA", three
copies of which are on file in the office of the Town clerk, is hereby
declared to be a public record, and said copies are ordered to remain on
file with the Town clerk.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, this 15`h day of November, 2001.
FOR THE TOWN OF FOUNTAIN HILLS ATTESTED TO:
OKI
Sharon Morga , �6or Cassie B. Hansen,
Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
ORDINANCE 01 - 21
AN ORDINANCE OF THE TOWN OF FOUNTAIN HILLS, ARIZONA,
RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING THE 112001
AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS,
ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE;
PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR
VIOLATIONS.
BE IT ORDAINED BY THE MAYOR AND COMMON COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA AS FOLLOWS:
Section 1. That certain document known as "The 2001 Amendments to the Tax Code of
the Town of Fountain Hills, Arizona, "three copies of which are on file in the
office of the Town clerk of the Town of Fountain Hills, Arizona, which
document was made a public record by Resolution No. 2001-50 of the Town
of Fountain Hills, Arizona, is hereby referred to, adopted and made a part
hereof as if fully set out in this ordinance.
Section 2. The provisions of this ordinance and the public record adopted herein are
effective from and after December 31, 2001.
Section 3. Any person found guilty of violating any provision of these amendments to
the tax code shall be guilty of a class one misdemeanor. Each day that a
violation continues shall be a separate offense punishable as herein above
described.
Section 4. If any section, subsection, sentence, clause, phrase or portion of this ordinance
or any part of these amendments to the tax code adopted herein by reference is
for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of
the remaining portions thereof.
PASSED AND ADOPTED BY the Mayor and Common Council of the Town of Fountain Hills,
. ., . .'th . -1 ----
Cassie Hansen, Town Clerk
APPROVED AS TO FORM: _
William E. Farrell, Town Attorney
(PASS/ AIL
M TION _ mQY�-
SECOND
COUNT _ 7--Q
ORDINANCE 01 - 21
AN ORDINANCE OF THE TOWN OF FOUNTAIN HILLS, ARIZONA,
RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING THE 112001
AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS,
ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE;
PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR
VIOLATIONS.
BE IT ORDAINED BY THE MAYOR AND COMMON COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA AS FOLLOWS:
Section 1. That certain document known as "The-2001 Amendments to the Tax Code of
the Town of Fountain Hills, Arizona, "three copies of which are on file in the
office of the Town clerk of the Town of Fountain Hills, Arizona, which
document was made a public record by Resolution No. 2001-50 of the Town
of Fountain Hills, Arizona, is hereby referred to, adopted and made a part
hereof as if fully set out in this ordinance.
Section 2. The provisions of this ordinance and the public record adopted herein are
effective from and after December 31, 2001.
Section 3. Any person found guilty of violating any provision of these amendments to
the tax code shall be guilty of a class one misdemeanor. Each day that a
violation continues shall be a separate offense punishable as herein above
described.
Section 4. If any section, subsection, sentence, clause, phrase or portion of this ordinance
or any part of these amendments to the tax code adopted herein by reference is
for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of
the remaining portions thereof.
PASSED AND ADOPTED BY the Mayor and Common Council of the Town of Fountain Hills,
Arizona, this 15t' day of November, 2001.
Al ST:
l
Cassie Hansen, Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
TOWN OF FOUNTAIN HILLS
STAFF REPORT
NOVEMBER 9, 2001
CASE NO.: S2001-27
LOCATION: Eagle Mountain Parcel 10/11, Tract G, north of Mira Vista Drive between
Fireridge trail and Palisades Boulevard.
REQUEST: Consideration of the Preliminary Plat of a replat of Tract "G" in Eagle Mountain
Parcel 10/11 subdivision.
PROJECT MANAGER: Jeff Valder
DESCRIPTION:
OWNER: Eagle Mountain Investors L.L.C.
APPLICANT: Eagle Mountain Investors L.L.C.
EXISTING ZONING: "R1-6A"
PARCEL SIZE: 4.34 Acres
PROPOSED NUMBER OF LOTS: 2
SURROUNDING LAND USES AND ZONING:
NORTH: Platted land within the Eagle Mountain Parcel 10/11 subdivision, zoned "RI-6A."
SOUTH: Platted land within the Eagle Mountain Parcel 13 subdivision, zoned "R1-10A."
EAST: The Firerock Country Club Golf Course, zoned "OSR."
WEST: The Eagle Mountain Golf Course, zoned "OSR."
SUMMARY:
At the Town Council meeting on November 1, 2001, the Council continued their consideration of this
preliminary plat for two weeks so that Eagle Mountain property owners could be notified of the proposed
subdivision. Staff has spoken with two members of the Eagle Mountain Property Owners Association and
has provided them with information regarding this application. Staff has also contacted the developer and
has requested that they of their representatives attend the November 15`h Town Council meeting to answer
any questions.
This request by Eagle Mountain Investors L.L.C. is for approval of a preliminary plat for a 4.34-acre
subdivision of Tract "G" in the Eagle Mountain This is a fairly simple request, although there are a number
of comments from the Engineering Department that will need to be addressed prior to final plat recordation.
The applicant is proposing to split Tract "G" into two developable lots. Due to Los Altos Hills
Development agreement, there are no subdivision -required hillside disturbance regulations. At the time of
building permit application the then owners of the lots will be required to meet the Land Disturbance
Regulations of the Zoning Ordinance.
Town Council Staff Report
Eagle Mountain Parcel 10/11 Tract G PP
November 9, 2001
Page 4
Tract "G" is now zoned "R1-6A". There are no hillside protection easements on the property and there have
been no representations from the developer to the Town that Tract "G" would be left as open space. Staff
considers Tract "G" to be developable, and that the two lots proposed can be accommodated on this 4.34-
acre parcel.
On October 25, 2001 the Planning and Zoning Commission voted 4-1 to recommend Town Council
approval of S2001-27. Staff also recommends Town Council approval of S2001-27 with the following
stipulations:
1. The 312.36' proposed for the northerly property line of future lot 64 measures short of tying to
the southerly property line. Recheck it and conform closure and acreage.
2. Grant a slope easement between the rear property lines for lots 30-34 to top of bank adjacent to
the proposed northerly property line of lot 64.
3. Propose a cut ditch to convey runoff between the proposed northerly property lot line for future
lot 64 and the top of bank of slope.
4. Dash existing 8" sewer line along common lot line of lots 30 and 31.
5. Is there a tract on the west side and adjacent to the west property line of future lot 65?
6. Show the existing fire hydrant west of Fireridge Trail.
7. Show the 10" sewer force main along Miravista and along the easement through the golf course.
8. Show the 8' PUE and SWE along Miravista within future lots 64 and 65.
9. Indicate who is responsible for maintenance for what section or full -width of Miravista along this
plat frontage.
10. Show future community gates for Eagle Mountain and for Firerock County Club.
11. Final Plat is to reflect all Preliminary Plat comments.
12. Propose a sidewalk fronting proposed lots 64 and 65.
13. Plat 10/I1 Note #6 states that Tract G is to be conveyed as common area to the Community
Association. Since this won't apparently happen, the Community Association should be signatory
to the Plat, and give up any rights it might have for the property. If the LLC representative still has
signature authority for the Community Association, that authority should be so stated on the lot split
plat.
14. Plat 10/11 dedication statement says that a sewer easement is dedicated over a portion of Tract G.
There is no specific sewer easement on the Parcel 10/11 plat. Therefore, there should be an
acknowledgement statement and signature by the Fountain Hills Sanitary District that either no
sewer easements were required, or that the platted PUEs contain all required sewer easements.
Town Council Staff Report
Eagle Mountain Parcel 10/11 Tract G PP
November 9, 2001
Page 4
15. Submit a request for abandonment of the existing VNAE along Eagle Mountain Parkway/Miravista.
The Town would only allow abandonment of frontage lengths that:
Have adequate corner clearances from Twilight View Drive, Palisades Blvd, and Fireridge
Trail.
Have adequate driveway intersection sightlines onto Eagle Mountain Parkway. This is
particularly important because these driveways are both on the inside of a horizontal curve,
and may be at or near the crest of a vertical curve. Substantial grading may be needed to
provide these driveway sightlines, depending on their locations.
16. Provide and grade for sight easements where needed from the proposed driveways, the golf cart
crossing, along Eagle Mountain Parkway/Miravista, driveways on lots in Parcel 13, Palisades Blvd,
Firerock Trail, and Camelview Drive.
17. An easement for existing utility boxes at the southeast corner of the plat and perhaps along the cart
path will be needed.
18. Grant a slope easement adjacent to Lots 30-34. This slope has not adequately vegetated at this time.
Responsibility and scope of proposed and future revegetation efforts, and for maintenance of this
slope should be clarified (LLC/Community Association recommended). A cut ditch and
maintenance access width of 20' should be provided at the top of this slope.
19. There is a smaller 20'-40' width of Tract G directly north of Lot 34 in Plat 10/11, and south of
Palisades Blvd. This width should be placed in a separate tract, and should probably be dedicated
to and accepted by the Community Association/LLC.
20. Conceptual driveway plans/building pad plans will need to be submitted. We anticipate that a
significant effort will be required to avoid the constraints of excessive depth/heights of cut/fill and
excessive height/number of retaining walls for both the driveways and for the house pads
themselves.
21. Resolve and indicate who is responsible for what section for full -width maintenance of Eagle
Mountain Parkway/Miravista along this plat frontage. If that involves owners of Firerock Country
Club Plat M-2, Firerock LLC, or the Firerock HOA, they should sign the plat. If Eagle Mountain is
fully responsible, so indicate, and state the Firerock agreement recording number.
22. Resolve where the community gates will be for Eagle Mountain and for Firerock Country Club.
(Staff continues to recommend that those lots —as well as the Parcel 13 lots —be allowed to access
onto Palisades Blvd, as well as onto Eagle Mountain Parkway. Additionally, staff recommends that
Firerock Parcels M-1, M-2, and P-2 — Q-1 be allowed to access via Eagle Mountain Parkway.
23. Sewer line force main (10") is along the west side of Tract G property line.
Town Council Staff Report
Eagle Mountain Parcel 10/11 Tract G PP
November 9, 2001
Page 4
24. Study, submit for review, and place non -building easements on those portions of the lots (if any)
where golf ball damage is reasonably possible. These lots are directly in line with the fairway and
green for the Eagle Mountain Golf Course Hole #2, although considerably beyond and above the
green.
25. What drainage protection measures will be needed for the adjacent golf cart path and golf green
areas?
26. There are two (2) fire hydrants ahead (across Miravista Drive) of proposed lot split, and a third fire
hydrant about 75' west of Fireridge Trail.
27. Is any widening of Palisades needed for turn lanes at Palisades or Fireridge Trail? This might not
have been addressed before because of the plat sequencing.
Response to Town of Fountain Hills staff report
Re: Eagle Mountain Parcel 10/11 Tract G
1. This lot line has been modified. The tract area originally indicated as sewer
easement has been eliminated since the sewer services have been relocated to
the street side of the lots. This line has also been moved in order to allow 20' of
access area to the top of the slope.
2. A slope easement will be shown on the final plat.
3. Since we are proposing a view fence offset from the top of the cut slope, I believe
that the fence would effectively protect the slope from storm runoff. This would
also prevent any damage to the slope due to construction activity closer to the
top of the slope. As noted in comment #1, a 20' access area has been
accommodated at the top of the slope.
4. Existing sewer now dashed.
5. This is Tract I as noted on the prelim. plat.
6. Fire hydrants shown.
7. Existing force main and gravity sewer added.
8. PUE shown. SWE not needed since existing sidewalk is within the new 30' right
of way.
9. Copy of Maintenance agreement is included with this submittal.
10. Gates shown.
11. Final plat has been updated.
12. Sidewalk exists.
13. The ratification by the community association has been changed to acknowledge
previous dedication to the association and proposed uses and responsibilities as
�► shown.
14. Sewer easement no longer necessary.
15. Abandonment request faxed to Jeff Valder on 11/12/01.
16. Possible driveway locations have been shown on the preliminary plat. Grading
near the street is minimal in these locations. Two of the possibilities are located
near the high point in Mira Vista. Any sight line easements or grading could be
addressed with the individual house site plan.
17. Cabinets are located within existing 20' PUE and proposed 8' PUE along
MiraVista.
18. Tract G will be dedicated as slope easement. I have provided a 20' minimum
width access area at the top of the slope. Since a view fence (with 2' masonry
base) will be built on the lot line, effectively stopping runoff from reaching the
slope area, I don't believe the further disturbance of a cut slope would be
necessary.
19. Since this area is contiguous with the rest of the tract and has the same uses
(slope, drainage and common area), I don't understand the benefit of creating
another tract.
20. Possible driveway and house site locations have been added to the preliminary
plat. As shown, driveway grading could be reasonable without retaining walls.
House plans as sited could be configured to fit the slope.
21. A copy of the maintenance agreement is included with this submittal. This will be
executed prior to recordation of the plat.
22. Existing and future gates are shown -on the preliminary plat.
23. Force main is shown.
24. The nearest property line in the direction of the hole is more than 200' from the
edge of the green and 50' above the surface. It is highly unlikely that a ball
would reach the building setback.
25. The golf course drainage was design designed with the intent that this area
would be medium density housing. The custom lot design will create less than
that anticipated runoff and should not require additional facilities. A copy of that
portion of the Eagle Mountain Phase 1 Drainage report is attached.
26. Existing fire hydrant locations have been added to the preliminary plat.
27. No street widening has been requested.