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Home My WebLink About2003.1016.TCREM.PacketNOTICE OF EXECUTIVE AND REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL Mayor Wally Nichols Vice Mayor Rick Melendez Councilwoman Kathy Nicola Councilwoman Leesa Stevens Councilman Jahn Kavanagh Councilman Mike Archambault Councilwoman Susan Ralphe WHEN: "'ITHURSDAY, OCTOBER 16, 2003 TIME: 5:30 P.M. EXECUTIVE SESSION 6:30 P.M. REGULAR SESSION WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS, BUILDING B 16836 E. PALISADES BLVD., FOUNTAIN HILLS, AZ (Executive Session will be held in the Building A Teleconference Room) PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker's card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk's position on the dais. Speakers will be called in the..order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name prior to commenting and to direct their comments to the Presiding Officer and not to individual Council Members. Speakers' statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. 1.) VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. § 38-431-.03.A.7, for Nft.� discussions or consultations with designated representatives of the public body in order to consider its position and instruct it representatives regarding negotiations for the purchase, sale or lease of real property. (Specifically, the town hall lease and property). E: ClerkWGENDAS\REGULAR\2003\Regular and Executive Session 10-16-03.doc Page 1 of 3 Last printed 10/15/2003 8:58 AM 2.) RETURN TO THE REGULAR SESSION. • CALL TO ORDER AND ROLL CALL — Mayor Nichols • PLEDGE TO THE FLAG — Mayor Nichols • INVOCATION — Pastor David Iverson, Assembly of God Church • MAYOR'S REPORT Mayor Nichols will: **** Read the Strong Cities and Towns proclamation; Acknowledge the efforts of the Fountain Hills Ad hoc Committee on State Land, and Recognize Councilwoman Kathleen Nicola for her sponsorship of the "Fantastic Fall Festival" to be held Friday, October 31, 2003 at Four Peaks Neighborhood Park. SCHEDULED PUBLIC APPEARANCEIPRESENTATION Comprehensive Annual Financial Report (CAFR) and Audit Presentation — Craig Trbovich 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. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place and manner restrictions. The Council will not discuss or take legal action on matters raised during "Call to the Public" unless the matters are property noticed for discussion and legal action. At the conclusion of the call to the public, individual Council members may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be 15 min. placed on a future Council agenda. CONSENT AGENDA *1.) CONSIDERATION of approving the Council MEETING MINUTES of 9/26/03 and 10/2/03. *2.) CONSIDERATION of RESOLUTION 2003-59 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property lines of Lot 19, Block 2, Plat 506B (15014 E. Marathon Drive) as recorded in Book 159 of Maps, page 3, Records of Maricopa County, Arizona. EA03-18 (Ellen Schoenbeck). *3.) CONSIDERATION of RESOLUTION 2003-60 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property lines of Lot 3, Block 1, Plat 602B (15716 E. Cavern Drive) as recorded in Book 166 of Maps, page 32, Records of Maricopa County, Arizona. EA03-19 (Mark & Lynn Phelps). *4.) CONSIDERATION of the LIQUOR LICENSE APPLICATION submitted Texaco Star Mart #773 located at 171255 E. Shea Blvd. The application is for a new Class 10 license. *5.) CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE submitted by the American Legion Post 58. The request is for a fundraiser scheduled for October 18, 2003. *6.) CONSIDERATION of a SPECIAL EVENT LIQUOR LICENSE submitted by the American Legion Post 58. The request is for a fundraiser scheduled for November 14, 15, and 16, 2003. *7.) CONSIDERATION of the EXTENSION OF PREMISE submitted by Grapeables Fine Wines. The request is a fundraiser for the Veterans of Foreign Wars Post 7507 to benefit the Veterans Memorial located at Fountain Park on October 25, 2003. *8.) CONSIDERATION of RESOLUTION 2003-63 approving an Intergovernmental Agreement nin (IGA) with Maricopa County for Special Transportation Services. REGULAR AGENDA I 9.) DEPARTMENT QUARTERLY REPORT provided by the Fire Department and Law E:\ClerkWGENDAS\REGULAR\2003\Regular and Executive Session 10-16-03.doc Page 2 of 3 Last printed 10/15/2003 8:58 AM 30 min Enforcement. 10.) CONSIDERATION of RESOLUTION 2003-64 approving the Town of Fountain Hills 15 min Emergency Operations Plan. 11.) PUBLIC HEARING to receive comments on a PROPOSED AMENDMENT to the Fountain Hills RV Storage Special Use Permit to allow an accessory shade structure to be located at 17317 10 min Sioux Drive, aka Lot 2, Block 4, Plat 302: Case# SU2003-08. 12.) CONSIDERATION of a PROPOSED AMENDMENT to the Fountain Hills RV Storage Special Use Permit to allow an accessory shade structure to be located at 17317 Sioux Drive, aka 5 min Lot 2, Block 4, Plat 302: Case# SU2003-08. 13.) CONSIDERATION of the PRELIMINARY PLAT for "Colony Wash Vista Condominiums", a 20-unit multi -family development located at the northwest corner of Panorama Drive and the 10 min. Colony Drive alleyway; Case# S2003-13. 14.) PUBLIC HEARING to receive comments on a SPECIAL USE REQUEST to allow an accessory archway entry structure to be located at 12645 Saguaro Blvd., aka Lots 1 & 2 of the 10 min Plaza Fountainside Final Plat; Case# SU2003-09. 15.) CONSIDERATION of a SPECIAL USE REQUEST to allow an accessory archway entry structure to be located at 12645 Saguaro Blvd., aka Lots 1 & 2 of the Plaza Fountainside Final 5 min. Plat; Case# SU2003-09. 15 min 16.) DISCUSSION of the updated FIVE-YEAR FINANCIAL PLAN. 30 min 17.) DISCUSSION of establishing a policy prioritizing distribution of PROPOSITION 202 funds with possible direction to staff. min 18.) CONSIDERATION of Resolution 2003-67 approving an Intergovernmental Agreement with the Salt River Pima — Maricopa Indian Community establishing the CONVEYANCE PARTNER for funds directed to the Scottsdale Boys and Girls Club as a result of Proposition 202 funding. 30 min 19.) RECONSIDERATION of the motion to apply for an extension of the CONSERVATION STATUS of the State Land. 20.) COUNCIL ASSESSMENT AND REVIEW of the meeting to identify procedural strengths 10 min. and weaknesses and discuss possible improvements for future meetings. 21.) COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: None 10 min. 22.) SUMMARY OF COUNCIL REQUESTS by Town Manager. P70:oo p.m. 23.) ADJOURNMENT. DATED this 13t' day of October, 2003 40+9A_" Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 oice) 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 furnished the Council with this agenda are available for review in the Clerk's office. E:\ClerkWGENDAS\REGULAR\2003\Regular and Executive Session 10-16-03.doc Page 3 of 3 Last printed 10/15/2003 8:58 AM TOWN OF FOUNTAIN HILLS PROCLAMAT ION OFFICE OF THE MAYOR WHEREAS, the citizens of Fountain Hills, Arizona, rely on the delivery of superior- town services to experience a high quality of life in our community; and WHEREAS, town services such as fire, police, parks, public utilities, street maintenance, community center, library, and emergency medical services are delivered each day to meet and exceed citizens' expectations; and WHEREAS, it is one of the responsibilities of town officials to ensure that legislators, media, and citizens understand their local government through open and frequent communication using various avenues and means; and WHEREAS, it is important to work to encourage this connection and inform citizens of the importance of state slurred revenues in order to preserve the excellent delivery of services that our citizens have come to %W expect in our town; and WHEREAS, through education and awareness, citizens, communihj leaders, and town staff can work together to ensure that services provided by the Town of Fountain Hills can remain exceptional elements of the quality of life of our community. NOW, THEREFORE, be it resolved that the Town of Fountain Hills joins with the League of Arizona Cities and Towns and fellow municipalities across the State of Arizona in declaring October 20 — 26, 2003, "Strong Cities and Towns Week". The Town will partici in the Chamber's Business Showcase program on October 22f1a d "Strong Cities and Town's Week" to answer questi4ren cipal services. a yoY . J. Ni\ Attest: Bevelyn J. Bender, Toum Clerk 0*4e-AA - ® ACKNOWLEDGMENT OF FANTASTIC FALL FESTIVAL SPONSOR On behalf of myself, the members of the Town Council and Staff, and the residents of Fountain Hills, we wish to recognize the contribution of Kathleen Nicola of John Hall and Associates for her sponsorship of the "All New Fantastic Fall Festival" to be held on Friday, October 31, 2003. The "All New Fantastic Fall Festival", formerly know as the "Family Halloween Carnival", is a wonderful tradition for Fountain Hills' youth and their families. The event is held at Four Peaks Neighborhood Park and includes lots of carnival games, bouncy things, music, food and more. We would also like to acknowledge the contributions this year by the MCSO, Fountain Hills Fire Department, Fountain Hills PTO, First Baptist Church, Four Peaks Church, and Trinity Lutheran Church, all of whom are lending their time and resources to help make this year's event special for all those involved. Once again, our appreciation to Kathleen Nicola of John Hall and Associates for her willingness to serve her community through the sponsorship of this wonderful Town event. Thank you. Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Administration Consent:® Regular:❑ Meeting Date: 10/16/03 Contact Person: Bender Requesting Action:❑ TvDe of Document Needing Approval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ® Other: Draft Meetings Minutes Council Prioritv (Check Annromiate Areas)': ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: Consideration of approving the Council MEETING MINUTES of 9/26/03 and 10/2/03. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: Approve draft minutes for archival purposes. List All Attachments as Follows: draft minutes Type(s) of Presentation: None Signatures of Submitting Staff: Department Head Town Manager Budget Review (if item not budgeted or exceeds budget amount) Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 10/16/03 Contact Person: Tom Ward Requesting Action:® Tvne of Document Needing Annroval (Check all that a ❑ Public Hearing ® Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Abnropriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ® Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: Consideration of RESOLUTION 2003-59 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property line of Lot 19, Block 2, Plat 506B (15014 E. Marathon Drive) as recorded in Book 159 of Maps, Page 3, Records of Maricopa County, Arizona, with stipulation. EA03-18 - Ellen Schoenbeck. Staff Recommendation: Approve Fiscal Impact: No Purpose of Item and Background Information: The applicants submitted the application on August 25, 2003. List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Signatures of Submitting Staff: De rtment Head Town anager Budget Review (if item not budgeted or exceeds budget amount) n RESOLUTION 2003-59 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN A PORTION OF THE CERTAIN TEN (10') FOOT PUBLIC UTILITY AND DRAINAGE EASEMENTS ALONG THE NORTHERLY LOT LINE OF LOT 19, BLOCK 2, OF PLAT 506B, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 159 OF MAPS, PAGE 3, RECORDS OF MARICOPA COUNTY, ARIZONA. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council"), as the governing body of real property located in the Town of Fountain Hills (the "Town"), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights - of -way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That a portion of the certain ten (10) foot public utility and drainage easements, located along the northerly property lot line, except for the westerly 10 feet thereof; of Plat 506B, Block 2, Lot 19, Fountain Hills, as recorded in book 159 of maps, page 3 records of Maricopa County and more particularly described in Exhibit A, attached hereto and incorporated herein by reference, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot -to -lot drainage runoff. The property owner of Lot 19 is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. [SIGNATURES ON FOLLOWING PAGE] EAAbandonment Letters and Resolutions\Resolution 2003-59, 50613-2-19 EA03-18.doc 1 PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, October 16, 2003. AIN HILLS: EAAbandonment Letters and Resolutions\Resolution 2003-59, 506B-2-19 EA03-18.doc 2 ATTESTED TO: 0115JEA111 1-0 1 .1011 mz'� •:l(• APP VED AS TO FORM: Andrew J. McGuire, Town Attorney TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 506-B BLOCK 2 LOT 19 LOT 4 LOT 5 LOT 20 h hN ABANDON 10' pN P.U.E & D.E. 2 BLOCK 2 LOT 19 \' \, 106 -00" LOT 18 \ \�\ y \ LOT 35 ' \N _ N w E ,aj ' LOT 36 f qti. SCALE: 7=40 � DATE: 9-05— I ' TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Town Council DT: September 19, 2003 FR: Art Candelaria, Civil Engineer RE: Easement Abandonment 03-18 Randy Harrel, Town Engineer 15014 E. Marathon Drive Reviewed: Tod, irecto of P blic Works Plat 506B, Block 2, Lot 19 a 1 0,/ This item on the Town Council's agenda is a proposal to abandon the ten (10) foot public utility and drainage easements located at the northerly property line of Lot 19, Block 2, Plat 506B, (15014 E. Marathon Drive) as shown in Exhibit "A". The property owners of Lot 19 desire the assurance that any future improvements made to the lot will not be infringed upon by the construction of utilities. All affected utility companies have been notified of this abandonment proposal and have approved of the proposed abandonment of this public utility easement. The Engineering Department has reviewed the site to ascertain any drainage issues in addition to the Town's general interest in the easement. It is the professional opinion of the Engineering Department that there is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that certain lots within this subdivision are subject to lot -to -lot drainage runoff. The property owners of Lot 19 are required to pass the developed flows generated by the upstream lots across their property. Staff recommends approval of Resolution 2003-59, subject to the following stipulation: • Prior to either recordation of this abandonment, or removal of the masonry wall at the rear easement line, the property owner shall provide acceptable engineering calculations and drainage plan showing adequate drainage modifications to accommodate the lot -to - lot drainage and to allow removal of the fence at the rear drainage easement line. Enc: Resolution Exhibit C: Ellen Schoenbeck Linda Heintz & Gary Smith Richard & Monika Halverson Jim & Kim Seaman EAAbandonment Letters and Resolutions\EA03-18 - 506B-2-19.doc Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:❑ Regular:❑ Meeting Date: 10/16/03 Contact Person: Tom Ward Requesting Action:® Tvue of Document Needing Approval (Check all that a ❑ Public Hearing ® Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv'(Check Appropriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ® Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development El ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: Consideration of RESOLUTION 2003-60 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property line of Lot 3, Block 1, Plat 602B (15716 E. Cavern Drive) as recorded in Book 166 of Maps, Page 32, Records of Maricopa County, Arizona. EA03-19 - Mark & Lynn Phelps. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: The applicants submitted the application on September 5, 2003. List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Signatures of Submitting Staff: Dep (rtment Hea - 6� -C) 3 Town Manager Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Town Council DT: September 8, 2003 FR: Art Candelaria, Civil Engineer a RE: Easement Abandonment 03-19 i V Randy Harrel, Town Enginee=oPublic 15716 E. Cavern Drive Reviewed: Tom�arorectol Wo ks Plat 602B, Block 1, Lot 3 This item on the Town Council's agenda is a proposal to abandon the ten (10) foot public utility and drainage easements located at the northerly property line of Lot 3, Block 1, Plat 602B, (15716 E. Cavern Drive) as shown in Exhibit "A". The property owners of Lot 3 desire the assurance that any future improvements made to the lot will not be infringed upon by the construction of utilities. All affected utility companies have been notified of this abandonment proposal and have approved of the proposed abandonment of this public utility easement. The Engineering Department has reviewed the site to ascertain any drainage issues in addition to the Town's general interest in the easement. It is the professional opinion of the Engineering Department that there is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that certain lots within this subdivision are subject to lot -to -lot drainage runoff. The property owners of Lot 3 are required to pass the developed flows generated by the upstream lots across their property. Staff recommends approval of Resolution 2003-60. Eric: Resolution Exhibit C: Mark & Lynn Phelps James & Diane Garvin Frederick & Lillian Meuter Tushar Pednekar \\earth\BBrannon\Abandonment Letters and Resolutions\EA03-19 - 602B-1-3.doc 1' `%W RESOLUTION 2003-60 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN A PORTION OF THE CERTAIN TEN (10') FOOT PUBLIC UTILITY AND DRAINAGE EASEMENTS ALONG THE NORTHERLY LOT LINE OF LOT 3, BLOCK 1, OF PLAT 602B, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 166 OF MAPS, PAGE 32, RECORDS OF MARICOPA COUNTY, ARIZONA. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council'), as the governing body of real property located in the Town of Fountain Hills (the "Town"), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights - of -way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That a portion of the certain ten (10) foot public utility and drainage easements, located along the northerly property lot line, except for the westerly 10 feet thereof; of Plat 602B, Block 1, Lot 3, Fountain Hills, as recorded in book 166 of maps, page 32 records of Maricopa County and more particularly described in Exhibit A, attached hereto and incorporated herein by reference, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot -to -lot drainage runoff. The property owner of Lot 3 is required to pass the developed flows generated by the upstream lots across their property. SECTION 1 That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. 9196.001\Resolutions\2003-22 PUE aband.res 5-29-03 [SIGNATURES ON FOLLOWING PAGE] 1 r { PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, October 16, 2003. FOR THE TOWN OF TAIN HILLS: ATTESTED TO: W.J. Nichol , Mayor Bevelyn J. Ben r, T wn Clerk WED BY: Tim G. Pickering, Town 9196.00]\Resolutions\2003-22 PUE aband.res 5-29-03 14 APVED AS TO FORM: Pr 7An rew J. McGuire, Town Attorney M TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 602-B BLOCK 1 LOT 3 LOT 5 LOT 6 H w + ABANDON 10' LOT 4 moo- P.U.E & D.E. N a' ? BLOCK 1 LOT 3 'go ENO, \ LOT 2 \\q�ERN \ �R W E � V 15545 a x \ 'if , L. SCALE: 1 "=40' 9�i noe DATE: 9-09-03 ?ONAv J L� Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Meeting Date: 10/16/03 ContactPerson: Tom Ward Consent:® Regular:❑ Requesting Action:® Tvue of Document Needing Annroval (Check all that aDDI ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ® Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check ADDroDriate Areas): ❑ Education ❑ Public Fitness ® Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: Consideration of the liquor license application submitted by Texaco Star Mart #773 located at 17125 E. Shea Blvd. The application is for a new Class 10 license. Staff Recommendation: Approve No Purpose of Item and Background Information: To obtain Council approval for a new Class 10 liquor license. A Class 10 license allows retail sales for beer and wine only in the original unbroken package, to be taken away and consumed off the premises. The application complies with statutory and liquor license regulations and it received a favorable recommendation from MCSO based on his background investigation. At the manager's request in an attempt to reduce paper, full applications will not be reproduced for the packets. The front page will be included for representative purposes and the full application is available for review in the clerk's office. List All Attachments as Follows: Ward memo; Sheriffs memo; application front page Type(s) of Presentation: Consent Agenda Signatures of Submitting Staff: De aztment Head o� Town 1V1'ana er / Designee Budget Review (if item not budgeted or exceeds budget amount) A TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Town Council DT: September 17, 2003 FR: Tom Ward Dir�lic Works RE: Texaco Star Mart #773 Liquor License Application I/ Rodney S. Herbert (Reay's Ranch Investors LLC) is requesting Council approval of a new Class 10 liquor license for Texaco Star Mart #773 located at 17125 E. Shea Blvd. A Class 10 license allows retail sales for beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. Public Works and the Maricopa County Sheriff's Office have reviewed the application. It meets the statutory requirements for a Class 10 liquor license. Rodney S. Herbert is an Arizona resident. There are no outstanding wants or warrants. The business has a current Town business license. Based on statutory compliance and a favorable recommendation from the Sheriff's Office, staff recommends approval. \\earth\BBrannon\Liquor Licenses\Staff Memos\Texaco Star Mart.doc `fr. MARICOPA COUNTY SHERIFF'S OFFICE Memorandum To: Tom Ward From: Galen Reifschneider #960 _> JR Director of Public Works Admin./Community Relations Town of Fountain Hills Deputy Subject: Liquor License — Texaco Star Mart #773 Date: September 16, 2003 The purpose of this memorandum is to provide an endorsement of the attached liquor license application for the Texaco Star Mart #773 located 17125 E. Shea Blvd. It is my understanding that this item will be reviewed by the Council at their October 16, 2003 meeting. Background Investigation: This application is for an existing Class 10 liquor license under the specifications of ARS 4-206.01. A Class 10 license is a non -quota license, leaving the question of proliferation up to the local entities. A class 10 license, according to ARS 4-206.01, which is generally issued to convenience stores and allows only sale of beer and wine for consumption off the premises. This is further defined in Town Code R19-1-209, which specifically prohibits alcohol consumption from open containers on the premises. The liquor department requirement for a class 10 license does not put a formal restriction on the number of nearby retailers, bars and restaurants. Rather, they leave the decision on the number of liquor sales outlets to the local jurisdiction. A class 10 license is not exempt from the 300' rule regarding churches and schools; however, there are none in the immediate area. The "Texaco Star Mart #773" is under the corporation ownership of Reay's Ranch Investors LLC. The corporate officers, as listed, are all residents of Arizona. We have verified the agent making application is Rodney S. Herbert, a Tucson resident. In addition, he has no outstanding wants or warrants, at this time. Finally, the Corporation, doing business as Texaco Star Mart #773, has secured a valid Fountain Hills business license. Recommendation: Based on compliance with Title 4 relating to the Class 10 liquor license, the fact that the applicants are Arizona residents with no wants or warrants, and there is a current Fountain Hills business license on file, I recommend approval by the Town Council at their October 16, 2003 meeting. 5000-135 R10-93 (MW97 v1.0 5/27/98) �w ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 n,ih, Phoenix AZ 85007-2934 , �:<v.. Tucson AZ 85701-1352 (602) 542-5141 . ° p L L C (520) 628-6595 APPLICATION FOR LIQUOR LI N� LUUJ TYPE OR PRINT WITH BLACK INK Notice: Effective Nov. 1, 1997, All Owners, Agents, Partners. Stockholders, Officers, or Managers actively involved in the day to dav -- operations of the business must attend a Department approved liquor law training course or provide proof of attendance within the last five years. See page 5 of the Liquor Licensing requirements. SECTION 1 This application is for a: I ✓ SECTION 2 Type of ownership: jr� to "4-03 55 INTERIM PERMIT Complete Section 5 ❑ T T W RO S Co m lete Sectio 6 51 NEW LICENSE Complete Sections 2, 3, 4,13,14,15,16,17 p n ❑ INDIVIDUAL Complete Section 6 ❑ PERSON TRANSFER (Bars & Liquor Stores ONLY) ❑ PARTNERSHIP Complete Section 6 Complete Sections 2, 3, 4,11, 13,15,16, 17 ❑ CORPORATION Complete Section 7 ❑ LOCATION TRANSFER (Bars and Liquor Stores ONLY) flLIMITED LIABILITY CO. Complete Section 7 Complete Sections 2, 3, 4,12, 13,15,16,17 ❑ CLUB Complete Section 8 ❑ PROBATEVILL ASSIGNMENT/DIVORCE DECREE ❑ GOVERNMENT Complete Section 10 . Complete Sections 2, 3, 4, 9, 13,15,17 (fee not required) ❑ TRUST Complete Section 6 ❑ GOVERNMENT Complete Sections 2, 3, 4,10, 13,15,16,17 ❑ OTHER Explain SECTION 3 Type of license and fees: LICENSE #: /DOI Y 4e 36 Type of License: Series # 1 0 2. Total fees attached: $ APPLICA TION FEE AND INTERIM PERMIT FEES (IF APPLICABLE) ARE NOT REFUNDABLE. A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) SECTION 4 Applicant: (All applicants must complete this section) Mr. Applicant/Agent'sName: Ms. (Insert one name ONLY to appear on license) Herbert Rodney S. Middle 2. Colp./Partnership/L.L.C.: Reay' s Ranch Investors, LLC (Exactly as it appears on Articles of Inc. or Articles of Org.) 3. Business Name: Texaco Star Mart #773 (Exactly as it appears on the exterior of premises) 4. Business Address: 17125 East Shea Blvd, Fountain Hills Maricopa 85268 Last First (Do not use PO Box Number) City COUNTY Zip 5. Business Phone: ( 4 8 0) 8 3 7— 2 4 4 4 Residence Phone: (5 2 0 ) 2 9 8_ 2 391 6. Is the business located within the incorporated limits of the above city or town? KIYES ONO 7. Mailing Address: PO Box 2502 Chandler AZ 85244 City State Zip 8. Enter the amount paid for a 06, 07, or 09 license: $ (Price of License ONLY) DEP RTMENT USE ONLY Accepted by: ' / / Date d-3 _ Lic. # I& 340 Fees: IOD /Od •-G�+ $ VFS ea Application Interim Permit Agent Change Club F. Prints TOTAL PROCESSING APPLICATIONS TAKES APPROXIMATELY 90 DAYS, AND CIRCUMSTANCES OFTEN RESULT INA LONnrn VVATTTN(_ nr•nrnn YOU ARE CAUTIONED REGARDING PLANS FOR A GRAND OPENING, ETC., BEFORE FINAL APPROVAL AND ISSUANCE OF THE LICENSE_ LIC 0100 052003 *Disabled individuals requiring special accommodation, please call (602) 542-9027. ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 (520) 628-6595 LOCAL GOVERNING BODY RECOMMENDATION C4TY/TOWN OF Fountain Hills STATE APPLICATION NO. 10074630 COUNTY OF Mari cona , ARIZONA. OI TOWN/G0UN"NO. 113 ORDER NO At a Regular meeting of the (Regular or Special) �� Fountain Hills Town Council (Governing Body) of the Uty/TownADMnty held on the 16th day of October , 2003 the (Day of Month) (Month) (Year) Application of Rodney S. Herbert for a license to sell spirituous liquors at the premises described in Application No. 10074630 License Class # 10 was considered as provided by Title 4, A.R.S. as amended. IT IS THEREFORE ORDERED that the APPLICATION of Rodney S . Herbert is hereby recommended for approval (approval/disapproval) a license to sell spirituous liquors of the class, and in the manner designated in the Application. IT IS FURTHER ORDERED that a Certified Copy of this Order be immediately transmitted to the Department of Liquor Licenses and Control, Licensing Division, Phoenix, Arizona. DATED AT TY/TOWN/ WTYxCLERK Bevelyn ender Fountain Hills This 16th day of October 2003 (Day of month) (Month) (Year) Disabled individuals requiring special accommodations please call the Department tic 1007 0811997 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor Phoenix AZ 85007-2934 `bl (602) 542-5141 AFFIDAVIT OF POSTING 400 W Congress #150 Tucson AZ 85701-1352 (520) 628-6595 Date of Posting: 9 / 15 / 0 3 Date of Posting Removal: 10 / 6 / 0 3 Applicant Name: Hy r b e r t Rodney S. Last First Middle Business Address: 17125 E. Shea Blvd. Fountain Hills, AZ 85268 Street city Zip License #: 10074630 I hereby certify that pursuant to A.R.S. § 4-201, I posted notice in a conspicuous place on the premises proposed to be licensed by the above applicant and said notice was posted for at least twenty(20) days. Bevelyn J. Bender Town Clerk 480/837-2003 Print Name ofIEliy/(jown nmI Official Title Telephone # T 10/16/03 Date Signed Return this affidavit with your recommendation (i.e., Minutes of Meeting, Verbatim, etc.) or any other related documents. If you have any questions please call (602) 542-5141 and ask for the Licensing Division. Individuals requiring special accommodations please call (602) 542-9027 LOI 19 0612003 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington Sth Floor 400 W Congreys #150 Phoenix AZ 85007-2934 '"''1 Tucson AZ 85701-1352 (602) 542-5141 �'` OLLC (520) 628-6595 APPLICATION FOR LIQUOR L�IC�N�� LU,U3 OBI " ' TYPE OR PRINT WITH BLACK INK Notice: Effective Nov. 1, 1997, All Owners, Agents, Partners, Stockholders, Officers or Managers actively involved in the day to day operations of the business must attend a Department approved liquor law training course or provide proof of attendance within the last five years. See page 5 of the Liquor Licensing requirements. SECTION 1 This application is for a: I ✓ SECTION 2 Type of ownership: .60Wh 55 INTERIM PERMIT Complete Section 5 ❑ J.T.W.RO.S. Complete Section 6 57 NEW LICENSE Complete Sections 2, 3, 4,13, 14, 15,16, 17 ❑ INDIVIDUAL Complete Section 6 ❑ PERSON TRANSFER (Bars & Liquor Stores ONLY) ❑ PARTNERSHIP Complete Section 6 Complete Sections 2, 3, 4, 11, 13, 15,16, 17 ❑ CORPORATION Complete Section 7 ❑ LOCATION TRANSFER (Bars and Liquor Stores ONLY) LIMITED LIABILITY CO. Complete Section 7 Complete Sections 2, 3, 4,12, 13,15,16, 17 ❑ CLUB Complete Section 8 ❑ PROBATE/WILL ASSIGNMENT/DIVORCE DECREE ❑ GOVERNMENT Complete Section 10 . Complete Sections 2, 3, 4, 9, 13, 15,17 (fee not required) ❑ TRUST Complete Section 6 ❑ GOVERNMENT Complete Sections 2, 3, 4,10, 13,15, 16,17 ❑ OTHER Explain SECTION 3 Type of license and fees: LICENSE #: / DOI Type of License: Series # 1 0 2. Total fees attached: $ APPLICA TION FEE AND INTERIM PERMIT FEES (IF APPLICABLE) ARE NOT REFUNDABLE. A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) SECTION 4 Applicant: (All applicants must complete this section) Mr. Herbert 1. Applicant/Agent'sName: Ms. (Insert one name ONLY to appear on license) Last Rodney First S. Middle 2. Corp./Partnership/L.L.C.: Reay's Ranch Investors, LLC (Exactly as it appears on Articles of Inc. or Articles of org.) 3. Business Name: Texaco Star Mart #773 (Exactly as it appears on the exterior of premises) 4. Business Address: 17125 East Shea Blvd. Fountain Hills Maricopa 85268 (Do not use PO Box Number) City COUNTY Zip 5. Business Phone: ( 4 8 0) 8 3 7- 2 4 4 4 Residence Phone: ( 5 2 0 ) 2 9 8- 2 391 6. Is the business located within the incorporated limits of the above city or town? KIYES ❑NO 7. Mailing Address: PO Box 2502 Chandler AZ 85244 City State Zip 8. Enter the amount paid for a 06, 07, or 09 license: $ (Price of License ONLY) DEP RTMENT USE ONLY Accepted by: Date Lic. # I ePe -74& 30 Fees: %OD /0t) -09r.2' /t ' 1� $ LI/FS' J Application Interim Permit Agent Change Club F. Prints TOTAL PROCESSING APPLICATIONS TAKES APPROXIMATELY 90 DAYS, AND CIRCUMSTANCES OFTEN RESULT IN A I.ONGF.R %VATTINn P mnn YOU ARE CAUTIONED REGARDING PLANS FOR A GRAND OPENING, ETC., BEFORE FINAL APPROVAL AND ISSUANCE OF THE LICENSE. LIC 0100 0512003 *Disabled individuals requiring special accommodation, please call (602) 542-9027. SECTION 5 Interim Permit: 1. If you intend to operate business while your application is pending you will need an Interim Permit pursuant to A.R.S. 4-203.01. 2. There MUST be a valid license of the same type you are applying for currently issued to the location. 3. Enter the license number currently at the location. 4. Is the license currently in use? ❑ YES ❑ NO If no, how long has it been out of use? ATTACH THE LICENSE CURRENTLY ISSUED AT THE LOCATION TO THIS APPLICATION. 1, , declare that I am the CURRENT OWNER, AGENT, CLUB MEMBER, (Print full name) PARTNER, STOCKHOLDER OR LICENSEE of the stated license and location. State of County of X The foregoing instrument was acknowledged before me this (Signature) Day Month Year My commission expires on: (Signature ofNOTARY PUBLIC) SECTION 6 Individual or Partnership Owners: EACH PERSON LISTED MUST SUBMIT A COMPLETED FORM "LIC0101", AN "APPLICANT" TYPE FINGERPRINT CARD, AND $24 FEE FOR EACH CARD. 1. Individual: + rust Middle %Owned Residence Address City State Zip o� Partnership Name: (Only the first partner listed will appear on license) General -Limited T act First M;ridl a u/_ n,:...e.1 De..:ae..,.e A AA--- n M o� ❑ ❑ o� ❑ ❑ k.ti>A+-nH11U1IIU1NA-Jtit=1 WNtutzsbAKY) 2. Is any person, other than the above, going to share in the profits/losses of the business? ❑ YES ❑ NO - If Yes, give name, current address and telephone number of the person(s) use additional sheets if necessary. Last F;-t M;Adln D—:.1--- AAA-e.... - i c.cNuvuc tt x MON 5 Interim Permit: 1. If you intend to operate business while your application is pendintpuLwl need an Interim Permit pursuant to A.R.S. 4-203.01. 2. There MUST be a valid license of the same 'type you are applying for currently issued to the location. 3. Enter the license number currently at the location. l o n-708(VTp UL- 4. Is the license currently in use? ® YES ❑ NO If no, how long has it been out of use? ATTACH THE I, PARTNER X My commission CURRENTLY ISSUED AT THE LOCATION TO THIS APPLICATION. 1 I 1 • i declare that I am the CURRENT OWNER, AGENT, CLUB MEMBER, 'y�tt'iul name) �R O LICENSEE of e stated license and location. State of % a County of ' r l U `� W The foregoing -instrument was aclmowledged before �mee,this day of , —per- . Day of Montly1 9 �A=h , Year CHRISSY A. GOODWIN Notary Public - Arizona MARICOPA COUNTY Vy Comm. Exp. 07-30-05 �OCTION 6 Individual or Partnership Owners: (Signature of EACH PERSON LISTED MUST SUBMIT A COMPLETED FORM "LIC0101", AN "APPLICANT" TYPE FINGERPRINT CARD, AND $24 FEE FOR EACH CARD. 1. Individual: Last First Middle % Owned Residence Address City State Zip Partnership Name: (Only the first partner listed will appear on license) RN.—I-T i.,,it-i T act First MiririlP % Owned Residence Address City State Zin ❑ ❑ F-7 (ATTACH ALUM 1UNAL Srihhl It 1Nht-t36AK1) 2. Is any person, other than the above, going to share in the profits/losses of the business? 13 YES ❑ NO ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 (520) 628-6595 APPLICATION FOR LIQUOR LICENSE i.xrEunrnLN1 W1 I H.DLAUN LNR F Notice: Effective Nov. 1, 1997, All Owners, Agents, Partners, Stockholders Officers or Managers actively involved in the day to day operations of the business must attend a Department approved liquor law training course or provide proof of attendance within the last five years. See page 5 of the Liquor Licensing requirements. SECTION 1 This application is for a: SECTION 2 Type of ownership: ❑ INTERIM PERMIT Complete Section 5 ❑ J.T.W.R.O.S. Complete Section 6 ❑ NEW LICENSE Complete Sections 2, 3, 4, 13, 14, 15, 16, 17 ❑ INDIVIDUAL Complete Section 6 ❑ PERSON TRANSFER (Bars & Liquor Stores ONLY) ❑ PARTNERSHIP Complete Section 6 Complete Sections 2, 3, 4, 11, 13, 15, 16, 17 ❑ CORPORATION Complete Section 7 ❑ LOCATION TRANSFER (Bars and Liquor Stores ONLY) ❑ LIMITED LIABILITY CO. Complete Section 7 Complete Sections 2, 3, 4, 12, 13, 15, 16, 17 ❑ CLUB Complete Section 8 , ❑ PROBATE/WILL ASSIGNMENT/DIVORCE DECREE ❑ GOVERNMENT Complete Section 10 Complete Sections 2, 3, 4, 9, 13, 15, 17 (fee not required) ❑ TRUST Complete Section 6 ❑ GOVERNMENT Complete Sections 2, 3, 4, 10, 13, 15, 16, 17 ❑ OTHER Explain SECTION 3 Type of license and fees: LICENSE #: 1. Type of License: 2. Total fees attached: $ APPLICATION FEE AND INTERIM PERMIT FEES (IF APPLICABLE) ARE NOT REFUNDABLE. ../� A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) SECTION 4 Applicant: (All applicants must complete this section) Mr. 1. Applicant/Agent's Name: Ms. (Insert one name.ONLY to appear on license) Last 2. Corp ./Partnership/L.L. C.: (Exactly as it appears on Articles of Inc. or Articles of Org.) 3. Business Name: 4. Business Address: (Exactly as it appears on the exterior of premises) (Do not use PO Box Number) City 5. Business Phone: ( ) Residence Phone: ( ) 6. Is the business located within the incorporated limits of the above city or town? ❑YES ONO 7. Mailing Address: Middle COUNTY Zip City State Zip 8. Enter the amount paid fora 06, 07, or 09 license: $ (Price of License ONLY) Accepted by: Fees: Application DEPARTMENT USE ONLY Date: Lic. # Interim Permit Agent Change Club F. Prints TOTAL PROCESSING APPLICATIONS TAKES APPROXIMATELY 90 DAYS, AND CIRCUMSTANCES OFTEN RESULT IN A LONGER WAITING PERIOD. YOU ARE CAUTIONED REGARDING PLANS FOR A GRAND OPENING, ETC., BEFORE FINAL APPROVAL AND ISSUANCE OF THE LICENSE. LIC 0100 11/2000 *Disabled individuals requiring special accommodation, please call (602) 542-9027. SECTION 7 Corporation/Limited Liability Co.: r4CH PERSON LISTED MUST SUBMIT A COMPLETED FORM "LIC0101 ", AN "APPLICANT" TYPE FINGERPRINT CARD, AND $24 FEE FOR EACH CARD. ❑ CORPORATION Complete questions I, 2, 3, 5, 6, 7, 8. L.L.C. Complete questions I, 2, 4, 5, 6, 7a�n�d attach copy of Articles of Org. and Operation Agreement 1. Name of Corporation/L.L.C.: Reay's Ranch Invest.yrL(,..0' LLC (Exactly as it appears on Articles of Inc. or Articles of Org.) 2. Date Incorporated/Organized: 8 —1 9 — 9 9 71,03 SEP St&e w2l eran4orated/Organized: AZ 3. AZ Corporation Commission File No.: Date authorized to do business in AZ: 4. AZ L.L.C. File No: L— 0 8 8 54 54 Date authorized to do business in AZ: - R — 1 9 — 9 9 5. Is Corp./L.L.C. non-profit? ❑ YES ®NO If yes, give IRS tax exempt number: 6. List all directors /officers in Corporation/L.L.C.: Last First Middle Residence Address (ATTACH ADDITIONAL SHEET IF NECESSARY) 7. List stockholders or controlling members owning 10% or more: Last First Middle % Owned Residence Address City State Zin See Attached I % (ATTACH ADDITIONAL SHEET IF NECESSARY) 8. If the corporation/L.L.C. is owned by another entity, attach an ownership, and director/officer/members disclosure for the parent entity. Attach additional sheets as necessary in order to disclose real people. SECTION 8 Club Applicants: EACH PERSON LISTED MUST SUBMIT A COMPLETED FORM "LIC0101", AN "APPLICANT" TYPE FINGERPRINT CARD, AND $24 FEE FOR EACH CARD. 1. Name of Club: (Exactly as it appears on Club Charter or Bylaws) 2. Is club non-profit? ❑ YES ❑ NO If tax exempt, give IRS tax exempt number: 3. List officer and directors: Date Chartered: (Attach a copy of Club Charter or Bylaws)) Last First Middle Title Residence Address City State Zip (ATTACH ADDITIONAL SHEETS IF NECESSARY r SECTION 9 Probate, Will Assignment or Divorce Decree of an existing Bar or Liquor Store: 1. Current Licensee's Name: (Exactly as it appears on license) Last First Middle 2. Assignee's Name: Last First Middle 3. License Type: License Number: Date of Last Renewal: 4. ATTACH TO THIS APPLICATION A CERTIFIED COPY OF THE WILL, PROBATE DISTRIBUTION INSTRUMENT, OR DIVORCE DECREE THAT SPECIFICALLY DISTRIBUTES THE LIQUOR LICENSE TO THE ASSIGNEE TO THIS APPLICATION. SECTION 10 Government: (for cities, towns, or counties only) 1. Person to administer this license: 2. Assignee's Name: Last First Middle Last First A SEPARATE LICENSE MUST BE OBTAINED FOR EACH PREMISES FROM WHICH SPIRITUOUS LIQUOR IS SERVED SECTION 11 Person to Person Transfer: Questions to be completed by CURRENT LICENSEE (Bars and Liquor Stores ONLY). 1. Current Licensee's Name: Entity: (Exactly as it appears on license) Last First Middle (Indiv., Agent, etc.) 2. Corporation/L.L.C. Name: (Exactly as it appears on license) 3. Current Business Name: (Exactly as it appears on license) 4. Current Business Address: 5. License Type: License Number: Last Renewal Date: 6. Current Mailing Address (other than business): 7. Have all creditors, lien holders, interest holders, etc. been notified of this transfer? ❑ YES ❑ NO 8. Does the applicant intend to operate the business while this application is pending? ❑ YES 11 NO If yes, complete section 5, attach fee, and current license to this application. 9. I hereby relinquish my rights to the above described license to the applicant named in this application and hereby declare that the statements made in this section are true, correct and complete. I, , declare that I am the CURRENT OWNER, AGENT, CLUB MEMBER, PARTNER, (Print full name) STOCKHOLDER or LICENSEE of the stated license. I have read this section and the contents and all statements are true, correct and complete. (Signature of CURRENT LICENSEE) My commission expires on: State of County of The foregoing instrument was acknowledged before me this Day Month (Signature of NOTARY PUBLIC) Year n 1 MEMBERS'OF REAY'S RANCH INVESTORS, L.L.C. NAME OWNERSHIP TOTAL ADDRESS Gordon Reay 8.75',u 12115 East Speedway Blvd. Lois Reay 3.75010 Tucson, Arizona 85749 17.500% Rod Herbert 8.25% 11001 East Cabe Vaqueros Diane Herbert 8 25% Tucson, Arizona 85749 16.50% Craig Reay 8.2511/16 13085 East Placita Remuda Karen Reay 8.25% Tucson, Arizona 85749 16.50% Tracy Collett 8 25%4 12901 E. Camino Remuda Susan Collett 8.25% Tucson, Arizona 85749 16.50 % Debra Edrnonson 8.25% 6621 North Mesa View Drive Neil Ed monson 8.25% Tucson, Arizona- 85718 16.50% Richard Couch 825% 11400 East Andalusian Place Janet Couch 825%4 Tucson, Arizona 85748 16.50% 100.000/0 -.., ii 5 Diu J .1 n t l c- pp 5 i SECTION 12 Location to Location Transfer: (Bars and Liquor Stores ONLY) APPLICANTS CANNOT OPERATE UNDER A LOCATION TRANSFER UNTIL IT IS CPIk017 D BY THE STATE. 1. Current Business Name and Address: (Exactly as it appears on license) 1-) —0 �— 2. New Business Name and Address: (Do not use PO Box Number) 3. License Type: License Number: Last Renewal Date: 4. What date do you plan to move? What date do you plan to open? SECTION 13 Questions for all in -state applicants: / 1. Distance to nearest school: JL4 ft. Name/Address of school: Falk PEgifS E CE YY nrrAk 7 (Regardless of distance) /7300 6A �/�V� L L SS ?5aL9 FOu,T19i / . 2. Distance to nearest church: • `f MI 1. Name/Address of church: ST 5AP-ri eir i,NUP 0 H (Regardless of distance) IOW 5 ill. dSA6UA OWL) . iliiiw I am the: ❑ LESSEE ❑ SUBLESSEE wNER } PURCHASER (of premises) 4. If the premises is leased give lessors name and address: 4a. Monthly rental/lease rate $ 4b. What is the penalty if the lease is not fulfilled? $ What is the remaining length of the lease? or other Yrs mos. (give details - attach additional sheet if necessary) 5. What is the total business indebtedness of the applicant for this license/location excluding lease? $ 0 Does any one creditor represent more than 10% of that sum? ❑ YES k'NO 'If yes, list below. Total must equal 100%. Last First Middle % Owed Residence Address city State Zip (ATTACH ADDITIONAL SHEET IF NECESSARY) 6. What type of business will this license be used for? (BE SPECIFIC) Convenient Store 7 . Has a license, or a transfer license for the premises on this application been denied by the state within the past one (1) year? ❑ YES 1INO If yes, attach explanation. 8. Does any spirituous liquor manufacturer, wholesaler, or employee, have any interest in your business? ❑YESJaNO Lis the premises currently licensed with a liquor license? '�R YES ❑ NO If yes, give license number and licensee's name: 1 o 0-7 392`7 4�recloyu tit ' .%f wo tz (License #) (Exactly as it appears on License) 5 SECTION 14 Restaurant, or Hotel -Motel Applicants: Ij 1. Is there a valid restaurant or hotel -motel liquor license at the proposed location? ❑ YES I5I NO If yes, give licensee's name: and license #: Last First Middle 2. If the answer to Question 1 is YES, you may qualify for an Interim Permit to operate while your application is pending; consult A.R.S. Section 4-203.01; and complete Section 5 of this application. 3. All restaurant applicants must complete a Restaurant Operation Plan (Form LIC0114) provided by the Department of Liquor. 4. Do you understand that 40% of your annual gross revenue must be from food sales? ❑ YES RINO SECTION 15 Diagram of Premises: (Blueprints not accepted, diagram must be on this form) 1. Check ALL boxes that apply to your licensed premises: Entrances/Exits P Liquor storage areas �4.oy.d Drive-in windows ❑ Patio enclosures ❑ Service windows ❑ Under construction: estimated completion date 2. Restaurants and Hotel/Motel applicants must explicitly depict kitchen equipment and dining facilities. 3. The diagram below is the only area where spirituous liquor is to be sold, served, consumed, dispensed, possessed, or stored. Give the square footage or outside dimensions of the licensed premises. DO NOT INCLUDE PARKING LOTS, LIVING QUARTERS, ETC. 390 Sq YOU MUST NOTIFY THE DEPARTMENT OF LIQUOR OF ANY CHANGES OF BOUNDARIES, ENTRANCES, EXITS, OR SERVICE WINDOWS MADE AFTER SUBMISSION OF THIS DIAGRAM. W, W RN Y _ I �LrCTION 16 Geographical Data: A SAMPLE FOR THIS SECTION IS PROVIDED ON THE BACK OF THIS PAGE. List below the exact names of all churches, schools, and spirituous liquor outlets%1-tebne half mile radius of your proposed location. 1. C/ 6. 7. 8. 9. 10. 11. 12. 13. 15. (ATTACH ADDITIONAL SHEET IF NECESSARY) SECTION 17 Signature Block: X A = Your business name and identify cross streets. I, Rodney S . Herbert , declare that: 1) I am the APPLICANT (Agent/Club Member/Partner), making (Print name of APPLICANVAGENT listed in Section 4 Question 1) this application; 2) I have read the application and the contents and all statements are true, correct and complete; 3) that this application is not being made to defraud or injure any creditor, taxing authority, regulatory authority, or transferor; 4) that no other person, firm, or corporation, . except as indicated, has an interest in the spirituous liquor license for which these statements are made; and 5) that to the best of my knowledge and belief, none of the owners, partners, members, officers, directors or stockholders listed have been convicted of a felony in the past five (5) years. (l My Stateof Arizona County of Maricopa The foregoing instrument was acknowledged before me this 4th September 2-OS Day -2 Month Z Year PUBLIC) 7 o ��lyn m�G UL.L oTs�,p+-8 r 00 lV 00 rN �a N N N O O .j! CD CD 0 p 3. 3 1 0 0 w tQ J t!1 lJ tt C p r H r1 O O n r i _ i 1 r ., UI t/1 trl O ''ri STATE OF ARIZONA s._; ' ^ r• ,_ DATE FILED - T ARTICLES OF ORGANIZATION AUK 9 1999 OF nI DATE APPR R'S REAY'S RANCH INVESTOL.C. BY no3 SEP -3 P 3: 31 The undersigned hereby form a limited liability company under the Arizona Limited Liability Company Act, A.R.S. §29-601 et seq., and adopt as Articles of Organization of such company the following:, 0WEp -4-:5-/ _[ 1. The name of this company is: "REAY'S RANCH INVESTORS L.L.C." 2. The purpose for which this company is organized is as follows: This limited liability company is organized for the purpose of engaging in the business of owning and operating convenience markets. In addition, the Company may engage in any other lawful business for which a limited liability company may be organized under Arizona law, subject to the Majority Vote of the Members. 3. The address of the registered office and the name and business address of the agent for service of process are: Registered Office: 6565 East Grant Road Tucson, Arizona 85715 Attention: Gordon M. Reay Statutory Agent: David A. McEvoy 2701 East Speedway Blvd., Suite 101 Tucson, Arizona 85716 4. Management of the limited liability company Is vested in a manager. S. The names and addresses of each member owning a twenty percent (200) or greater interest and the co -managers of the company are: Members Owning a Twenty Percent (20%) or Greater Interest: NONE \r - Manager: Thurland Reay Family Investment Company 6565 East Grant Road Tucson, Arizona 85715 Attention: Gordon M. Reay Z=�- Gordon M. Reay The undersigned, designated herein as statutory agent, hereby consents to act as such until removal or resignation in accordance with the Arizona Revised Statutes. K i OPERATING AGREEMENT of REAP' S R _,NCH INVES ISC L . L . C . z[1o] QQ THIS OPERATING AGREEMENT ( this Agre�tn�r t" ) is made and entered into as of AUGs-) S t i� 1999, by and among the following persons and entities: Gordon M. Reay ("Gordon") and Lois L. Reay, husband and wife, as community property with the right of survivorship, whose address is 6565 East Grant Road, Tucson, Arizona 85715 (collectively, "GLR"); Richard A. Couch ("Richard") and Janet M. Couch, husband and wife, as community property with the right of survivorship, whose address is 900 North Stoner Avenue, Tucson, Arizona 85748 (collectively, "Couch"); Rod Herbert ("Rod") and Diane Herbert, husband and wife, as community property with the right of survivorship, whose address is 11001 East Calle Vaqueros, Tucson, Arizona 85749 (collectively, "Herbert"); Craig Reay ("Craig") and Karen Reay, husband and wife, as community property with the right of survivorship, whose address is 13085 East Placita Remuda, Tucson, Arizona 85749 (collectively, "CKR"); Tracy Collett ("Tracy") and Susan Collett, husband and wife, as community property with the right of survivorship, whose address is 8737 East Bear Paw Place, Tucson, Arizona 85749 (collectively, "Collett"); Debra Edmonson ("Debra") and Neil Edmonson, husband and wife, as community property with the right of survivorship, whose address is 6621 North Mesa View Dry ve, 7ucson, Arizona 85718 (collectively, "Edmonson") ; T_i __a:_d Re-'.T Family y investmen.- Ccm-canY, an A_r-?on a c_ or= t_cn ~(" y RF") , whose address is o�6� EaSt Grant .�C Sri :Y Bona 8 / 1 ; an- Reay's Ranch Investors L.L.C., an Arizona limited liability company (_ Company") . be referred to CAR, Collett and Edmcnson may „ Couch, Herbert, �-tivel as "Members heras „Member" or col-e_ Y herein ir_di vi dually ARTICLE 1 FORMP_TION NP�E and PURPOSES Limited Liability 1 ,1 Fo,-oration. Pursuant to the Arizona Arizona limited liability Company Act, the parties have formed an A_i Organization f filing of effective upon the the Articles of company oration Commission. The of this Company with the Arizona Corp arties shall immediately, and from time to time hereafter, as may p f the Articles of be required by law, execute all amendments d other acts as may be Organization, and do all filing, recording appropri ate to comply with the operation_ of the Company under the Act. 1 2 Intent . It is the intent of the Members � thaitsthe tre treatment shall always be operated in a manner con urcoses. It as a "pa'-'tnership" for federal and state income tthe Company ax P be operated also is the intent of the Members that u oses of Section 303 of the or treated as a "partnership" for p rP take any action United States BankruptcY Code. No Member snarties hereto• inconsistent with the express In of the p 1.3 Name. The name of the Company shall be: REAY'S RANCH IN--ESTORS L.L.C." The principal place of business of l,a Place of Business. Tucson, Arizona 85715, the Company shall be 6565 East Granshallddetermine- or such other place as the Manage - has been formed initially for the The Company operating 1 . 5 Pu_ r'o_ . - owning and L en aging -min the business oz an purpose of g c en age in Y In addition, the Como_ any may g'., be markets- � ; 1; t,� comoany may convenience � __ - _ - _ or '" ,i nite- J=�11 business •taj -i = �%Ot� ci the f .J.__ca other la•. _ sum- oc z - Ge'" JY- organi un - - me-nb er s . 0 1.6_ Term. The Company shall commence upon the filing of its Articles of Organization and shall contsnu°f until hhereinas it A r the provision shall be terminated under r Unless changed by the Majority 1.7 Members and Manage-s initially shall be Vote of the Members, management of the Company d addresses (subject to vested in TRF ( "Manager") . The names an b written notice by any Member or Manager to the other change Y r and each of the original Agreement � Manager parties to this Agree of the g Members of this Company are as set forth above. 1.8 Acer_t for Service of Process. ocesse formnbusiness thecompanyis address of the agent for service of P Suite 101, Tucson, 2701 East Speedway Blvd., David A. McEvoy, person as the Members shall - Arizona appoint 85716, or such other Majority Vote of the Members• from time to time by the 1 9 Registered Office. The address of the registered office he State of Arizona for the company is 6as�thesManager shat Grant ll in t r lace Tucson, Arizona 85715, or such other p determine.. ARTICLE 2 DEFINITIONS following Definitions. Whenever used in this Agreement, the terms shall have the following meanings: 2.1 "Act" shall mean the Arizona Limited Liability Company s amended from time to time. Refer of Sectionsto a tofnthe Act of the Act, -as Act shall be deemed to include all identified) and all (in addition to the Sect thereof specifically amendments and renumber g erson who is admitted 2.2 "P_dditional Member" shall mean any P to Article 7 of to the Company as an Additional Member pursuant this Agreement. r shall mean (i) any person directly of 7 3 n,=_i i i arm' t Or under c--mmcn CO'L-0_ �_rnCt i _/ CCnt_"0_- CGnCr011 r D i O i n Or CCntr011i nC ten i _ w_. _C -rsc (_i, a pe- O tics OL w , y"_Gt - - -�"i f - - to^d_^:C VOt] _^_C scCLlr1-- __ LC _ ":C G_ r. C d1rectOr, oa=Cne= or e'rnp-OV�O^GY ✓ � 1 f Gr er, Y r- _ d__ _ �G- 3 to an other entity for which such person or employee of an ty, affiliate, y Y sister, parent, acts in any capacity, and (v) the spouse, brother, brother-in-law, sister-in-law or grandparent, child, grandchild, cousin of any individual. r o „ " shall mean this written Operating Agreement 2.4 AQ_ e-me._t to as it shall be amended, restated or supamo g the ed from Memberstime shall time.be No other document or oral agreementtris Agreement unless it is treated as part of or superseding all of the Members. reduced to writing and it has been signed by es of 1'prticIes of Organization" shall o ea ursuantlto the 2.5 Tequired to be filed r Organization of the Company Act. - r "Assignment" shall, for purposes of Qthis 2.6 "Assign °- assignment, transfer, pledge, sale, exchange, Agreement, mean any � osition of any Membership Interest, or any encumbrance or other d'sp beneficial interest therein. or "Banes t" shall mean, with respect to 2.7 "Bankruotcv" erson of a voluntary Petition any person, (i) the filing by such p reorganization, seeking for himself any in bankruptcY °r liquidation, dissolution or arrangement, composition, readjustment, relief, n any form, of his or her debts under the United similar i Other federal °r state insolvency States Bankruptcy Code or any leading consenting laws, or such persons filing an answer or other contest the material acquiescing in, admitting or failing r to, against him in any proceeding O_ allegations of a petition filed ag person of any blanket such .nature, (ii) the making by such P adjudication of tor assignment for the benefit of it a1( v) �such1persson's seeking, such person as Bankrupt or insolvent consenting to or acqu iescing in the appointment of a trustee, sequestrator or liquidator e ° es and (v) himself or of receiver, custodian, the all or any substantial part of his or her prop days after the commencement expiration of one hundred twenty (120) Y Person seeking reorganization, of any proceeding against such liquidation, dissolution or readjustment, liqu_ that arrangement, composition'statutes, law or regula`ic: 9=O`r-de relief ur_c.er any similar - n ; sm— ssed withi n such shall not not have bee-- d- " _-��_, (9 ) da-;s the same 1- the expiration o- = day period, or t'N�ntV ( _2O ) _ his Or her consent Cr =ter the aDDO' Itment J1�_"lOL� _ _'l�?l CY C_ all a tr Este receiver Or li qui dacor °, - crov_�ed =�,rbStant-cl p'�--= O his Or her prCDe--t �, �,, day period (or, stayed within such ninety (9o) (90) days after is not vacated or n vacated within ninety the appointment has not bee the expiration of any such stay) • account establi shed and ;t- l P_ccount" shall mean the acc Agreement and 2 g Cao_ -a- �ntained for each Member in accordance with this g ma_ ulations. applicable Treasury Ro_g l can any contribution to the l Contribution shall m services by a Member 2.9 Cap_ta_ Property or se_ capital of the Company in cash, p whenever made. Distribution shall mean, with „ Available for period, 2.10 Cash eriod, gross receipts for such respect to any particular p for such period incurred in the by the less (i ) all cash disbursements ose or business as determined by the operating of the Company's P - as deterin and (ii) reasonable cash Reserves s existing and future Manager, for the Company actual and Majority Vote of the Members without limitation, actual cash recruirements (including, capital repairs, ex eases and contingent liabilities, marketing P debt service, replacements, �06, At �W improvements, subject to the provisions of Act Section 29-Members contingencies), a Majority Vote of the the Members by Previously such time as an reserves P Cash determine that the unused balance otherwise have been of funds which r the same shall retained out er necessary, Available for Distribution vailable for Distribution. thereupon be deemed as �� shall mean the Internal Revenue Code of 1986, 2 11 Code Section of the Code shall Code (in amended from time to time. Reference to aof - - - all applicable Sections and all eamendments be deemed to include identified) a corresponding regulations and rulings. • addition to the Section sped f ically and renumberings thereof an ,s Ranch Com-oanv this Company, R--ay " shall refer to r that name or any 2.12 doing business under Investors L.L.C., whether other name (s ) a:.y t i MLe Mean any Ml e-"-ner who at- ��Deraultinc tee _ _ta_ __cu�_or 2.13 unable to make a.^y Cap; _ vYr�,v Cther:s=_ s is ll,.,w, l i ; na or una 07_ t :_S Agree a--- ^orda-c' with A-�icle= :J=,n � .e-=orm 1n aCCGrCa=C- _ 5 „ mean any cash and the fair market a Distributions shall a Member in 2.1_ �� assets distributed to value of any other Company the Company. of his or her interes�- I- in Company - respect � ea,-, which Company's fiscal Y ,-” means the iso constitute the taxable 2.15 "Fiscal Year and shall also be the calendar year, year of the Company• shall the death, or it; mean the the 2.16 "Incapacity or insanity Of any ind' incompetency e of eighteen adjudication of not fete liquidation st atus of an individual who has termination or mP a (18) years, or the dissolution, artnership, corporation, trust or other entity - of any P the „ "Membership interest" shall mean 2 .17 " Int�r� or Meer in the Company ownership interest of any mean either the amount of a cove-- ove o al thecaoital am amount 2 18 "Loan shall Member to c aid by a Non -defaulting or any contribution p Member pursuant to this Agreementan by due from a Defaulting or property advanced to the Company money, services for value, reason the business rin addition to those contributed by a Member if the Manager deermines that for an of the Company requires funds Capital Contributions. the Members as 2.19 "Losses shal l mean, for each Fiscal Year, the losses and m any determined in accordant u der the cash Owith g deductions Of the Co P a lied from year to year r shall principles consistently PP the Tax Matters Partner the accrual method of accounting (as Separately time) and as reported, tax the Company's informational select from time to appropriate, OT1 plus any expenditures aggregate, as aPPrOP u oses, P return filed for federal income (goof the Code, described in Section 705 (a) ( ) r 's shall mean Members owning a simple 11 . ority-in-Interest the Company. 2•20 e Interests of majority Of the Percentage r the " shall mean the vote O� Vote of the Members rot;Or holding at 2 21 ",�a�ority ole and absolute disc i n his, her Or its S o 7erCenLage os= -. the Members _r� orr e!1t (50 �) the - + Members Or no,- c_ ?,,-er than fir ,' Pe-_ r a melt- g o- h� _ v� ors o �r C� which S_?al l ?lot reQlli-�' a J'_-1tt�r approval OL 1. i1+�'� omPar_� , r . raLhe the the per_ce Lace t the ether Membe s, fifty percent ( 0 ) mat er t'12' i ^? a cor.st=t ti ng l be - �" in the Ccm�ar_I s a_ Majority Vote of the Members. A vote of the Members shall not be based on the number of Members. Unless otherwise provided in this Agreement, each approval or other action of the Members shall be by the Majority Vote of the Members. 2.22 "Manager" shall mean the Member or any person(s) appointed by the Members as Manager pursuant to Section 4.1 herein and other -raise in this Agreement. 2.23 "Member" shall mean each of the parties who executes a counterpart of'this Agreement as a Member and each of the parties who may hereafter become Additional or Substituted Members. The term "Member" as used herein shall include a Manager to the extent he or she has purchased an Interest in the Company. 2.24 "Non -defaulting Member" shall mean any Member who is then current with all Capital Contributions required to be made by such Member to the Company pursuant to Article 3 of this Agreement. 2.25 "Oneratinc Ex-censes" shall mean those expenses reasonably incurred in the daily or regular operation of the purpose or business described in Section 1.5. 2.26 "Organization Ex-censes" shall mean those expenses incurred in connection with the formation of the Company. 2.27 "Percentage Interest" shall be the percentage interests in the capital, Profits and Losses of the Company set forth in Section 6.1 of this Agreement. 2.28 "Person" shall mean any individual and any legal entity, and their respective heirs, executors, administrators, legal representatives, successors, and assigns. 2.29 "Profits" shall mean, for each Fiscal Year, the income and gains of the Company determined in accordance with accounting principles consi stentiy applied from year to year under the cash or accrual method of accounting (as the Tax Matters Partner shall select from time to time) and as reported, separately or in the aggregate, as aDpro-criate, on the Company's inforilational tax return filed for federal income tax purposes, plus any 1nCC?e described in Section 705(a)(1)(3) cf the Code. O ' =< es n mean=, w_ zh respect - o a _ S c—= I pc- _4 cd 7 such period to reserves located durir_gQ sufficient by amounts a_ deemed debt funds set aside °maintained in amounts insurance shall be and to pay taxes, which capital the own shall or working o,.1ses incident to Manager for r costs or expo_ e or othe_ ,s business. servic` Company -rship operation of the nee of a Me'•nbe- er" means any assignee d acitated Member" Bankrupt or Inc'P with ted r 2.31 "Sub- to ntatiVe °' a Interest or legal represe_ the Compar-Y in accordance who is admits_e d to Member h rein. anted Section 7•a he- ember appo_ Shall mean the M the Tax partner" Agreement to act as 2.32 "Tax Matters of this a.15 to the Code. Section ursuant pursuant to of the Company P Matters Partner- ulations issued ,� shall mean the Reg Code. Regulations Treasury under the to 2.33 "Treasury men.t of the stall be deemed States DepartTreasury Regulation to the by the United in addition .a ences to a particular T Regulations ReLer-- Treasury Jed) and all amendments and all apnlicaspecifically identiL- includeRegulation specifically Treasury renumberings thereof. those events end � Event" shall mean 2 34 „Withdrawa- Section 29-733. circumstances listed in Act ARTICLE 3 AT?ON OF TEE COMPA"ll'- CAPI'rAI,IZ intends to own .ens. The Company of this Cavital Contribut- Upon the execution 3.1 initia- ate sum of convenience markets. and gperate Members each shall contribute the aggregate contribution the according to the following Agreement, Company �+ in consideration for 00 to the rance of the $600,000. Capital Contributions" further Interests and allocations (,,Initial Inte� their respective. activities: companyyIs busines 000.00and GLR--the sumof:$210and ^ d--_or- -each the sum _ =r..ert Couch - , e any o- c153,OOG.00. Ihe e enn t` 1 _ ab=sal_ Cr'n ==Dui C^c' P 3 ayd' p�13, C. ri'nl t_CnS r e:tcess °= _ _n accp_'��nce wit 1 Cot= -- _ o ate ice rvr. hti be --`ns dditiona- Cap=�-=- s the Company for the purpose of satisfying any Operating Expenses ue or the compny, the that can not be satisfied out of the for nsuch Additional aCapital Members shall meet to discuss the need Cont:--_'-utions and the manner in, which such Additional Capital Contributions shall be made. No Member shall be required to make e Members agree by any Additional Capital Contribu�ions unlCapital Contr butionsa Majority Vote of the Members upon Additional _ 3.3 Defaults in Contributions . If at any time one of the Members is unable or unwilling to make any Capital Contribution required in accordance with this Agreement, then any Non -defaulting Member may deliver a written notice to the Defaulting Member stating that, if the Defaulting Member does not make its share of any Capital Contribution required in accordance with this Agreement within thirty (30) days after the Defaulting Member's receipt of such notice (or before default of thi Company day period) S, if any Non - defaulting a default would occur before such Y (3o) defaulting Member shall have the right, but not the obligation, to make such Defaulting Member's Capital Contribution in the form of a Loan to the Company in the amount of such Capital Contribution. If more than one Non -defaulting Member desires to make the required rata ion of the Loan, then each shall be entitled chm 1 lending e a °Membe ,srtPercentage Loan equal to the ratio that e Interest bears to the total Percentage Interests of all the lending Members. 3.4 Member Loans . Any advance by a Member as a Loan shall be deemed a debt due from the Company to such Member and shall be evidenced by a promissory note. Unless waived by the Member making a Loan, Members' Loans shall bear interest from the date of the advance of the funds until the date of satisfaction in full of the principal sum, at the prime interest rate as reflected from time to time in the Wall Street Journal per annum. In no event shall the Company pay any Member points or other charges for obtaining such Loan or a prepayment charge or penalty in connection with any such Loan. All Members' Loans shall be repaid by the Company before any Distto any are made Y Member. 3.5 Conversi cn of Non-defaultinc �t _!_U2' s ! can L" �� na Member's Lcan. I= a v,�,en_ of N Afau � t; _ COnt�" i '-uti onS and R_pa r lOP_-d� - - • =l to the CCP.t_=bu`e St=--i ci ent CapJ t Defaulting Member does nO' _nYmade by t_ NOn-Cl?-r,�lti^C M=TPDer Cczm—an'/ t0 sully satis-y •_• Lcc._ - de ti,o �TO'1-d�_au,1 t; Q - = �-+ the Loan S made, t �'-'--'- S__t ( ) P.1C?'=r'`s a- ter_ t_^e ��-, er ele^� k- MeTaber any id-- �e ( _ncl ud_nc acc .te Cl:tsta� calm••. A is used by the Company) due on the Loan to a method of accounting o the Company. In the event such an election Capital Contribution t Interest of all the Members shall be entage e Interest shall be is -^ade, the Pe_c_. er � s new Percentage r � s total Capital i ated so that each Memb that such Membe- reca is o_ e 1 to the percentage r all the equa_ since inception, may only the Company, Company. A Member Contributions to to the was made to Capital Contributions made Contribution if the Loan NO other to a Capita- 3.2• convert a Loan Y,s ob�igation under Section with this Me 'ce- accordance cove,- a Defaulting may be converted in reement Loan by a Member any other provision in th' s 1''g Notwithstanding Meer contribute any Section 3 • 5 • should a Defaulting after a NOn- to the contrary, the Company such Capital Contribution to the Company to cover delinquent a Loan to a Capital defaulting Member has made then such Capital riot to the conversion Of such Loan ° contribution and p .gember's G the Non-def-aulting Contribution in accordance ed to rep Y ction a LoGn, then Contribution shall be applied Member has made with the on the age of the Loans, Loan. If more than one based upUlton If the amount of the, the Loans shall be repaid being repaid first. oldest outstanding interest, of the Capital Contribution is not sufficient to repa Defaulting Member s - balance, including accruedbalance may be the entire outstanding 's Loan then the unpaid with this Member in accordance Non-default-ng a Capital Contribution converted to Section 3.5. Capital Contr_ ibutions. No interest shall be 3.6 Interest on Capital Contributions. paid by the Company on any No Member shall have the right 3,7 Return of Contributions. r any part of his or her raw or demand the return of all or w_thd once made. Capital Contribution, , does 'not loan the If a Non -defaulting Member Capital Contribution, 3 .8 Def__ault • Member s Company the amount of any Defaulting the Non -defaulting Qe Interest owned by the the Per.ce- owned by a majority of Percentage Interests Company In and not ccuhting the dissolve �, Members ( elect to ers default on _ 'Defaulting „c Mercoer (s) ) may all the MeT �- e _t� th-s �_c=eemett , °r e,_ may el2CL t0 ni sSO� Ve aCC^.r -3riC J' `� ri rL �_Cr_r �' =�-/ 1 =ded t_-1a` tr Y=� a_ CCn� �c_eement, prow an r^e _L'= -n - -r �I= . -ni S - �- ri ar roc- i cc-_ e - (�0) days -=t_ w- i t=,e the COrr= r=`i _ -V� tni _ '� _enr t0 C� De_au- �'eceY cUr �', =rCm �'i - ------ _. - Y d i _ ---e C?_~ VjCPLCv- ue - ce__ --De_aul�_ru -'--_ - 10 r under this Agreement• A compliance as a Member r v the election deemed to be in and exercise Member's rights to dissolve the Company bar the Non -defaulting this Section_ 3.8 shall have against or remedies they may set forth in rights reaui ,-ed Capital Members from pursuing any e to make any the Defaulting Members for failur� Contribution. the Company o Third Party Cause of Action. The right of 3.9 N - ;re any Capital Contribution shall not b Member to recru- r upon any party or any y rights or benefits to °- limited to, including, but not l not construed as conferring an re�cnent, The Company may not a signatory to this Ag obligation cf the Cc proval of the the holder of any without the prior unanimous ap_ assign to any creditor, enforce any Member's obligation Members, the Company's right to under this Agreement. ts Accoun. 3.10 Capital Capital 3.10.1 Debits and Credits. A separate shallance be maintained for each Meomberthe acTr asury P_crovisions witthh theeapplicable Pr Regulations: �s Capital P_ccount 3.10.1.1 Each Membe_r shall be credited with such Member's Capital Member's distributive Contributions, such. e_ in are of Profits allocated to such Me*nb this sh pro -visions of with the P accordance items in the nature of income Agreement, any allocated pursuant or gain that are specially of any to this P_greement, and the amount such liabilities that are assuany b ompary Company are secured by Member or that such Member• property distributed to Capital Account 3 10 1 2 Each Member s amount of cash by the o with -debited anc shall be such Member in accord distributed t° fa-_ due of any disc_ ;Y market va_ • Agr_ *rient, the istribu-ed suc n c n is C 'vher C Y_ orovisi cn °l•= 1 to ^v °_ sha- � d Str bum _ sues ,.1eT�e-r s ,-c,-danCe aC.-� . _-��• � Y_ y -n V1 erT•�er � � - nhe 11 this Agreement. A Member underPrcise the election in compliance the Company and ex� defaulting deemed to be not bar the Non- Member's rights to dissolve shall havo against Section 3 . 8 0- remedies they may d C.�_ r forth in this ,- remed' o coital se_ any rights ,tee any reauir� Members from pursuing i�ure to ma. the Defaulting Membe- s for sa__ Contribution. The right of the Company 3 9 No Third Partv Ouse of Action. - Shall not be a any Capital Contribution o or anon any party or any Member to requir� rights or benefits but not limited to, construed as conferring any Agreement , inclu.di n5 not sanatory to this A�� The Company may not a sia any obligation of the Company• proval of -the the holder of without the prior unanimous ape obligation creditor, right to enforce any Meer s assign to any s rig Members, the Company under this Agreement- 3 10 Capital Accounts Capital Debits and Credits. A separate Cap- maintained for each Me*noer in accordance 3.10.1 the Treasury Account shall be provisions of with the applicable Regulations: Member's Capital Account 3.10.1 1 Each Me,nber's Capital stall be credited with such r's distributive Membe such such Member in Contributions, allocated to of this share of Profits with the provisions accordance any items in the nature of income t allocated pursuant Agreement, or gain that are specially of any and the amount ,S Agreements are assumed by such to this that liabilities secured by any Company Company are Member or that such Member. property distributed to Capital Account Each Member s amount of cash 3.10.1'2 �ted by the zleb Y accordance with shall be in distributed to such Member -value of any nP fai r ma'-"�a va- _gree�ierL, t--- r bate to suc:� t-^-5 _OCe_t•_j dlSt- ^?r Company P- ro<I_Si -n C_ t_'ll✓ CarS-ian�-, to G_-y P Siar��C _ - such =riper s r-V -L. �.'. l.C. �•�- yr_---T 11 `AW allocated pursuant to this Agreement, and the amount Of any liabilities of such Member that the Company or that are secured are assumed by cont.rib�-ted by such Member to by any property the Company- 3.10.1.3 In the event any interest n ed in a the Company is transferrhe rtransferee the terms Of this Agreement, shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Interest. 3.10.1.4 In the event the fair market value of the Company assets are adjusted nt to this Agreement, the Capital pursua Accounts of the affected Members alas b = adjusted to reflect the net adj i this Company had recognized gain or loss equa_ to the amount of such net adjustment and the resulting gain or loss had been allocated among the Members in accordance with this Agreement. etation and Changes. The foregoing Interpr 3.10.2 provisions of this Agreement provisions and the other p Capital Accounts are relating to the maintenanc odeland applicable ble Treasury intended to comply with the C nlied in a Regulations and' shall be interpreted and ap_ e event the Manage manner consistent therewith• In hwith Company counsel, -shall determine, after consult rudent to modify the manner in which the that it is p or any debits or credits thereto are Capital Accounts, o in order to comply with such allocated or computed, applicable federal law, the Manager shall make .such l.enioer, provided modification without the consent a th that such determines in the Manager to have a materiel adverse modification is not likely Y�v distributable to a:! the amounts pro- _ �!^C t �L'c_"'_ e=sect on Of the Compa�=- tha term=ri? t iOn , upon a^.r McT�D�_ i r,Craaca tr`a ;J- mcd-- i cati 021 will nct _d pa- , e s i1e r-er tO - 77117- \1G fur= 0 _1_r sna1 l --e %i emhers �? 1. _,'1e Cc:ca: - - ri 12 r a or personal, Company, whether real as an entity, All property owned by the 1 be owned by the Company ble, have any ownership oL such tangible or boa lndividua ly shall andno Me property. ARTICLE a T ,, OF MANAGER AND MEMBERS RTC'r'rS p,�� DUT_:�S _ business and a_fairs r Com�anv. The Except as a l Initial Management ed by TRF, as the Manage-' _ shall be managed pertaining to the a�fai rs of the Company all decisions p ority Vote of the otherwise provided herein1dete,mined by the Mai shall be ratify all actions taken and decisions th;s of the Company h the date Members • The Members hereby tre Company throng made for or on behalf Agreement. �m;tations set forth Subject to the 1 mb ,rs by a 2 powers of Manager• decision a and further subject to the right °f the Members override or modify any in Section Members to ° manag l the Majority Vote of the Memo i direct, e and control a the Manager sha-1 ability and of the Manager, to the best of its aD" and all r and discretion to make any purpose and business ofpowe_C°mpGn h the each of them shall shall have authority, and all things wh1c decisions and to do any Quired to accomplish the btusir_ess and deem to be reasonably re- objectives ves of the Companyt including but not limited • cute on behalf of the Company a-1 To execute includi rg, loan 4.2.1 and documents, contracts A and other instruments, checks; drafts, notes deeds of , leases, the es, mortgages or -agreementsleas and any negotiable instruments; financing statements;,n ,,he a regiments; trust; security g documents necessary, and instruments or the purpose other Opinion of Manager, to reasonable °p- Com any. provided that the -manager Y an) the p the Compan'_r to incL- Y _business of to cause permitted have princi pal balance (s) shall not be the aggrc5a� r�=r into any debt (s) which in. - $100, 000 .00 or enter .�� I n excess of ,___se o- an - totaling re sell, e-cu--Lcer cr - - aCYee'z'ent �-O o='_�y vct= C__; =d t�i t--�°u�• am,.. Droderty, suchfS may deleg-1-- The M=naae_ - _ _ _ anc- 1� ,- financial accounts on operate any and all bank and other behalf and in the name of the Company - legal counsel To employ accountants to perfo a•2 2 its or persons, or other expe_ eats, to them from managing ag and compensate r may be services for the Company however, that no Member Y Company funds; provided, the Company In for work performed for that no paid compensaticn such wo_k and r exc. ss of the fair market value oz on behalf °f agent shall be permitted to incur any debt the Company - ire, enter into and pay for 4.2.3 To obtain, gaga insurance which e and contracts of ins a-oropriate, all insurance coverage the to be advisable, P_ the Manager determine for the p,-otection of convenient or necessary r owned by the Company, or Company, any Property leased orowned for any Other purPpSe conveII1ent or beneficial to Company- liability insurance obtain such the a 2 d To not only but also naming each Members and policies or endorsements the naming - deQms Company as the insured, th e Manager as additional insureds as the Manager necessary or desirable. r Seel, encumber, lease or - 5.2.5 To acquire' ersonal property otherwise deal with or dispose of ar_Y p in the name of the Company. Company funds temporarily a•2.6 To invest any time deposits, way of example but not limitation) in (by Y mental obligations, commercial paper or short-term govern other investments. f maintain the Capital Account reco asthe To 4.2.7 books of account O- the all Members, as.- as Lain all other records rewired CcmpamJ, and file ana main erg by the Com,--,- . iPtain a to be _;led or ma ar-1irate, =�=pend c="^o�.�,Se TO i _� t _ - r _J e7,v O.Je_S Cr 2 _ by t^_ CcrrIpa:-•� Ci- a -=- - the emolo_�en L G�.^.„-•._^.C=n'� COT! �-==''`_.Or ' - 14 any other provision ted Actions• shall g have the authority 4.3 Prohib- no Meer or Manager in this Agreement, to: �,- vention of th-s a 3.1 Do any act in contravention Agreement assign the Company prone r�L.Y or Possess rperty 4,3.2 for other than pan in specific p- o rights of the Com Y urpose• which would be beyond the sr a Company pope 4•3.3 Do any act this Company is formed• of the purpose for which Of His or Her I_ One r r Actina Beyond the scope of or men ember should act beY°nd Meer shall 4.4 Manager er or M er or If a Manager such manager them harnless, Authority. ranted herein, and hold any and the authority g s and the Company onsible for a--_ the other Memberbe fully resp or any indemnify er shall parties, the Company, beyond and such Manager or Memo third p er acting damages to er or Memb J rein all obligations and of the Manager nothing he- from the act gowever, the Member arising• ranted herein. the power of e and authority g or prohibiting Manager who acted the stop rued as limiting Meer or shall be const- the o ranted herein• to ratify acts other Members the authority g liable to outside the scope of er shall be No Member or Manager of business honest mistakes or to a 5 Hold Harmless' Company for mistakes, r or the due to such broker, any other Meforor liabilities employee, for losses bad faith of any that such judgement or Company' pro ence, dishonesty °r the or retained .the negl-g other agent of engaged contractor or a ent was selected, care, broker or other g or Manager with reasonable employee, such Member or Manager will be and supervised by and/ G under Each Member r Company asset. -, a 5 Indemnification' to the extent o_ extent the CompanY, and in the man_re- and to t^e indemnified by circumstances the following i ndicated: - e�d_''g o-- reateier I any th } , �h a ?ember c 6 r Ccnd:r-g C y e made a` G _ `_1I.. o- °= , S ter Y�_*�o °YWasa V1cT: e= %- -S G S_re 1 a p' was or V-v -aV V t^,at he cr -e=scn 1� or in the r the Company (other than an action by _ Manager o- involving an alleged cause °L right of the Compan a-i sing from the performance of Y damages a-_ the Company shall action_ fO- this Agreement, business under r or manager against e,{penses, indemnify such Member attorneys fees, judgments, and amounts paid in including incurred by him in settlement, actually and reasonably proceeding �f such connection with such action, suit or prnd r acted in good faith and in the manner Member or Manage - he reasonably believed to be in or ded that hised or he ors an and p the best interest of the Company negligence, misconduct, obligation to the her conduct does not constitute ne suit or or a breach of his or he-, fiduciary action, terrtination of any I Tembers • The r or settlement shall not, proceeding by judgment, order, r or Manager create a presumption that a Member ch re or she of itself, the best faith and in a manner did not act in good or not opposed to, reasonably believed to be in, interest of the Company completed �, r�atened, pending, or a•6.2 In any th_- to which the right of the Company action Or suit by or In r is a party or is threatened to a Member' or Manager was O- cause of action by a be made a party, involving allegedthe activities of a Member for damages arising from management of the in the peformance of Member or Manageras prescribed by this of the Company or both, the Company . internal affairs he law of Arizona, e_ of Manager against expenses, Agreement or by such Member incur - shall indemnify o actually and reasonably including attorney s fees, n connection with the defense °T Settlement fa th red by him i if he or she acted in g of such action or suit, believed to be in, manner he or she reasonably and in a the best interests of the Company, or not opposed to, that no indemnification shall be which such Member respect except t Or matter as issue,. l; able for negligence, of any clam, An adjudged been Jon in the Mar_ager shall have - disci ar'.j Obl_gat- sc .1�. a or breach o= r Co<<<pany mi ct or her duty t0 the e per=or�;,ance O- his - r or Mranacer has that Membe ' 7 �,o t-re �c�e i or.�; se in de-e_nc Oi _ c ' _ c n the O _c-1- _ �L%seCt-C.r ;cce�s_ul ° t re- e to 16 claim, issue, or (a) or (b) above, or in defense of any him against an shall indemnify � i i v and matter therein, the Company ,s fees, ac ua--_ the expenses, including attorney ;n cor_nection reasonably incurred by him or her therewith. g anything anythiherein to the 4.6.4 Notwithstandin contrary, in no event shall a Member r Manageess c causedby c ,- loss or damage to Company for any fires, blow -outs, strikes, labor troubles, riots, insurrections, tornadoes, floods, act of a public enemy, acts of God, break down or fai lure of plant or machinery, out the provisions herein due to failure to carry regulations promulgated by provisions of law or rules or emand or recuisition of any governmental agency or any and the any government, or from any other cause bey control of a Member or Manager. manager shall be indemnified g . 6 . 5 Any Member or Ym a ents the Members for any disproportionate , and p attorneys' fees, judgments by all including expenses, incurred resulting settlements actually and reasonably obligation or from (a) a personal guarantee of a Company (b) any Company debt approved in accordance with this Agreement which the Company is unable or unwilling to A g- roportionate payment shall mean any satisfy. A disp proportion payment in which the Member do not share in p- P to their Percentage Inter The Manager mat. y from time to time Id: ,'7 Bank Accounts . and bank accounts in the name or l °Hated by t, behalf Of the e any) shall be Manager (and any person (s) delegated thereon. open the the signatory(--- of er may resign as the Manager a,g Resignation. The Manager l the Members giving written notice to all the Company at any t i me by g- of any Manager shall take effect The res_g r t ime as s:.all be nation of the Company • r reOL Or at sti c._ later ate_ r Ce; D- of nOt1Ce t--e- -_ed t^cre, n t u-on re -- o ^less other-ai se Spec== i n slich nc ; - LJ necessary to make l� c; cnati on -hall not be �y i rig;' tS eCtanCe 0= such =e__ 1 not a=-SCL such VtanGG__ s cCC i, �'eS_L'-at-o�1 Sig_ - ",' C, 1'je i -�j, s as a Meese_ 17 4.9 Rem_ oval• A Manager may be removed by the Majority Vote of the Members• rr'n for any reason in the vacancy occur_- g filled by the 4.10 Vacancies. Any Compan`j shall be Of the a vacancy T the manage,_ r elected to fill office o_A Manage- e' or ers. his her Vote of the Memb e unexD�red term Of its, Majority ;1 the expiration of shall be elected for and shall hold office unt_ � ected and shall predecessor in offic� ,- shall be elected her successor death, dissolution, such term and until his °- , °r her ear+ ier until its, his quality °r Unless a defined term shall be established =, val rs a I„Ia,lager shall serve in that resignation or r-• nation or by the Majority Vote of the Members/ di ,Olutionl resig from an his or her death, resulting capacity until its, to fill a positron removal. A Manager chosen her Successor shall r Of Managers shall hold hffice for the tern increase in the number and until its, his or r earlier the Members f or until its, his or her er hold approved by i_y i a Manager be elected and shall qua' oval. In no event steal- of the death, resignation or r after the expiration than one (1) year T a new Manager is not office for more ,- office. I- Period, the Of its, his or he` one (1) Year P applicable term within this , the Members as elected and qualified Shall revert bac{ - Company ers choose to appoint management of the A-10 SO ur_til the Memb Manager's, and shall remain ;red a Manager (s) . In the case of a reversion under this Section shall f � le amended Articles of Organization as re _ the Company Section 11.10 of this Agreement by the Act less specifically rnDer COmDensation. Unless Member or other a_ .11 Mar_ace- or Me o f the Members, no Memb wing ority Vote the Maj ed to any compensation for s ement agreed t° by i1 be entitl_ manag ent;ty sha- rovid'ng nersQrr or or other �ise for P The prohibition as a manager of the Company for the Company• administrative servicesQ 11 shall not prevent the Company or admi Section - work the Member or provided for in this Member or Manager for any under any separate employment from compensating Company which has been per-;ns for the Company Manager P with the the Majority Vote oche' arrangement aDDrCve� by Gny, as or compliance with this contract or re Comp' ere 4 ; nto betty o t._ e~� c �Ia*^Cer�, and the 1tcTCe' Or Manag in ° t^`•'--_- t:na Me:n�er� °Y tno �e_th-- - tre- y sole a�=d toCli5_^-c- �,�Y-_-�__ _, __"__ �G "-_ an other activities in addition to those in interests and erigagprovided that the Member and dut�esna�nd er to the Company;to discharge t..e__ relating best efforts nor any Neither the Company shall use their Agreement reement, to share obligations under this Ag right, by v-rtue of this P.g or activities of the Member shall have any roceeds derived such other investments or participate in or in the income or P- Members or the Manager therefrom. Subject to statutory and/or common Sub' r and his or her 4 13 Irdeoendent Ventures. 7 y Member law fiduciary oblig ations, the Manager any Affiliates may -asts or engage - 4.13.1 have other business inter vent of any other business r with the or possess interests in are competitive croated, nature or descript-on, that hereafter Company, presently existing or independently or with others, a.13.2 manage investments, in investments or consulting 4.13.3 participate arrangements, n any or rticipate i a 13 a act as an ad -visor entity, to P- G other business or lending ity, °Y - or profits from any a,13.5 receive compensation ffiliate shall not _ he foregoing, and such Member or or the Members nor - of t Company rights thereto be obligated to advise the have any rig l the Company or the Members shall or interest therein. other No contract or Presumed Valid. Members, one or more of its 4.14 Transactions Company and ,- entity in between the association_ o- transaction bet ion, firm corporat r are financially or other--- Or Manage - Manager any its Members, relationsh'P or more OL dab' because of sl c._ whi c,,, one _ ; d or veida hey void _ re acpyv is e-� _ the =01low= - - e _eGr , - 71ter-sc c The fact c}f suc �v�^er� or manage wn =c n. -� ac),C) e O_ -a _`y 19 is fair and ,-act or transaction contract or 4.14.2 The cont_ t;me the Company at the to the anD,-owed, or ratified in the reasonable all the parties transaction is authorized, of the circumstances then known_ by light to the transaction - Code, is purposes of the Code, V-rtner• For pure the Company• The 4.15 Tax Matters -a rs Partner for Vote of the Tax Matte- •ority hereby appointed as only be changed with the Magi Tax Matters Partner sha-1 the Members* ARTICLE 5 MEETINGS OF MEMBERS required to The Company shall not be Vote ; ng . b a Majority Annual Me -t- if the Members, Y 5.1 meeting However-, meting, it shall annual me� decide to hold an annual me- time as hold an should or at such other of the Members, in December with the year 1999, be held on the first Fridaye e-S commencing management of the the status of the manag the past shall be determined by the Company for �► L;rpose of discussing anco of the come for the p t; the perform Company, reviewing of such other business as may year, and for the transaction before the meeting- ers, for Special meetings of the Memb statute, 5.2 Special Meetings• otherwise prescribed b� or by a unless � be appointed) any purpose or Purp°Sanag r if one shall r to the limitation the e_ may be called by ens, subject, however-, was not Vote of the Memb special meeting Pt ng. _ Majority be conducted at a the me� no in the original notice of that no business may lace specifically A may designate any P The Manager ority Vote of the Place cf Meetings rs by a Ma] of the 5.3 or as the Membe- meeting meeting County fOr any the within Pima as the place oJ- mee reside in agree, not then o� to attend Members shall ag that Members who shall ; tt_.. rovided _ held shah be Fem- Members ; P o rreeti na ; s city where the town or iephone conference• 5 S by te- .a_�, _-, ter-* ^?'= �. - meeting �; _ _:1� c =:cc-_ - �d�-J _s °=�l .''d iN.- ° , -g - Tree- -her n ( v ) t�ne _ uYPos= ° _ - c: ✓c - - �c_ St?- a l 1 be do - ��J being noticed If the meeting n such r the meeting. 5.2, the. called Pursuant to Section and hour o- the days before the date o- lace, day is a special meeting ,on to naming the P- be conducted at o shah, in addit_ the business to meeting rct_c�-rticularity nducted at such meot;ne, state with p' the business CO-- G' in accordance with ss acc meeting and o-ned the special rs as were notic�-� shall- be de. shall be limited.. Nosh matters be delivered and Section 5• Section 11.1' this with o wed in accordance , meet received all of the Members shall r If a__ f the State 0= f all Membe-s ;de °- 5.5 Meeting °- .- within or outs_ ;nie and lace, either meeting at such t- at any time and p holding °f a call or notice, and at Arizona, and consent t° the valid without ca_ places, such meeting shall do be be taken. such meeting lawful fining Members ur ose of determ-- For the P p Members or any 5.5 Record Date vote at any meeting °� ent of any of or to entitled to receive paym ,-s for entitled to notice embe- r or Members a determination of M �reo_, or the adjournment the order to Make o of the meeting -ribution, or in on which notic� the resolution Dis`-- the date date on which shall any other Pure°Se' mailed or the case may be, meting is adopted, as the adjourned me_ of Members n such Distributieh is declaring for such of the Members, be the record date in -Interest at any p, Maj ority- A a cruorum 5 uorum• Proxy, shall cor_stiat such meeting. Yson or by P auorum at any adjourn represented in pe- In the absence °'- a the meeting may Members- shall meeting of Memo rests represented at adjourned L. meeting majority of the interests Notice of the adj a meeting in a maj time. .led to vote a. Ming to another en the me_ of record be given to each Mcmbe- with Section 5.4. accordance orum ;s present, the Majority if a Proxy shall be the act 5.g Manner of Acting• or by s present in person greater or lesser properslOoI t vote of the Member P e vote Of a by the Article rL. the Mems�ers , unless the eaui red by the Act or number is otherwise r creement. ; zati On, or b t^'S AJ organ __ °_ •ne�ers a ^�J a cult __erg N-0 Cr C'_^ t.- cC:f C"Ya Tar �,. from the date of its � be valid after eleven months f- otherwise Provided in the proxy• proxy shall execution, unless recu-red or thcut a Meetina. Action Ys W= be taken without by Membe` of Memo-ra may written 5.10 Action one or mo- �� to be taken at a meetng by rep Member permit permitted action is evidenced signed by eac"- a meeting if the taken, iT one shall be describing the action the Manage- - the consents and delivered to s or for filing with n ed to vote in the minute effective whe. entitled inclusion Section is e- aDoointed) for taken under this unless the Company reco,-ds. Actionrecord date for retitled to vote have signed the he r consent, e r effective date. all Members ;ffe-rent meeting shall consent specifies a a- Nothing in to take action without Members entitled written consent• determining Member Signs a ,- or Member from taking any be the date the firstrbit any manage- of Organization, and this Article 5 shall P the Act, the Article ;tted under meeting. action perm_ without a me� g • . this Agreement to be taken e is requi'-"ed to be e When any notice by the Notic in writing and signedr the 5 , 11 Waiver °f a waiver thereof , ,- before, at, or afte- given to any Member, e whether giving of such 1W to such notice' equivalent to the g person entitled �� be time stated therein, notice. ARTICLE 6 TSLOSSES and DISTRIBUTIONS PROFI- . The Percentage Interests of the 6.1 peYcentaae Interests. Members are as follows: 17.5% GLR 16.5% Couch 16.5% Herbert 16.5% CKR 16.5% Collett 16.5% Edmons_on M= 6 s� each �mber Subject to Section rY^rcyy_�.r p,-oL_ts and Tosses- vVes °_ t:,,o6.2 - i _ _ _ r s anc -�O ; n t e CC -,=a -_ th -- � -__te, s:�_all - �eYce-,face or tO n'--s, 1l D_s�cns 6.3 s�- roocr� �Gn me aver = +W compensation to e ribution, subj ect to for Services each Member or Managertime as is the record date ompanyh D°st i} be made at such paid by the 'ibutiors sha__ provided that the rendered. All Dish_ of the Members; P ; Major Vote ;able for Dis�r_bution de de, ned by a Mal �; ns of Cash Available ,--,�;_se from Distribu�.-° determined other 'A basis unless i amounts Me, quarterly afire_ a,-ter-Y Members. All of the Membe_ shall be made o by a Mai orit� state or local time to time Code or any prov�Sions of to the Members �d pursuant to the Distribution_ to the withheld to any payment or with respect as amounts distribute tax.law shall be treated Members Pursuant to this Section 6.3. from the Company relevant Member or P_llocati cv- - 6 . g anecia_ In the evert any ,f_i'. Income offset. a ;ves any 'sal_ unexpectedly r_ce_ 6 a'1 cacacitY, described in Member, in such or Distributions allocations ii) (d) (a) , (5) adjustments, +-ions 1.7oa-1(b) (2) expected Treasury Regulation e t they exceed certain Account)/ ), to the exte_. er's Cap1� al ,. t or (6) , in a Memb sneciallY and gain shall be offsetting increasincome and a manner items of Company in an amount the to such Meyers as possible, allocated as quickly Capital Account created to eliminate, s Cap Any sufficient A in the Member balanc� or Distributions. deficit ail°cations Pursuant adjustments, of income or gain by such adj of items account in allocations a 1 shall be taken into to species 6• . f Profits pursuant to this subsection allocations e- o S so of any items computing subsequent the net amount items 6, SO that or other this Article profits, Losses 6 and the to this Article allocated each Member pursuant each Members' _ to possible/ cause Capital a„ shall, to the extent P embers � the M compared to al- Y,S percentage Capital Account i hen COMP ion to Such Member Accounts to be Interest. ,1 CatiGns In accordance d 2 Section_ L0� (c) �CGde and the G_ �I Cable 6 ' s c) o_ the ; roc C: Section_ 70 ( ,e,� with RV ns , ss�� yo rt,y Sii_`J Wig' , Gam, C rv� J`C_ - -� -i and deduct °_ ^�r - t..--e Cc -„pa__✓, _ =G_-' _ _., css, n the Cac_t- co. cc rn =I to the Company fog federal income tax of such property b purposes and its initial value when decisions relt relating to Company. Any elections o_ other such allocations shall be made by the manager in any L ose of this manner that reasonably reflects the purpose pursuant to this subsection Agreement. Allocations made and local (b)are solely for purposes of federal, state, r in an way be taken into taxes and shall not affect, Y l Account or account in computing, any tee ener' s Caor Distributions share of Profits, Losses, other items, ision of this Agreement. pursuant to any prov ` 6 d.3 Other Allocations. The Manager, with the or st of the Members, shall consent of a Majority-in-Int�_e in make such other special allocations as aovi Sion of dthe order to comply with any mandatory F applicable Treasury Regulat Company oopa o reflect d It rm ned with economic interest in e the C _ �' Y right to receive Distributions reference to such Me mbe-'s g a its from the Company and such Member' s obligation to ect to expenses `and liabilities. However and sub? t of Section 6.2, the Members acknowledge that t eallttimes, the Agreement is that each Member shall, share in the Profits, Losses, other items, and proportion to their Distributions of the Company in and the Manager shall, to the Percentage Interests, the Code and any other fullest extent permitted by r ret this Agreement and make such applicable law, interpret which will best achieve this elections in the manner intent. are aware ol: 6 a , a Ackr_owledcrment .r The Members made by the income tax consequence of- the allocationsa ree to be and this Article and Article of this Artby and Article 3 ein bound by the provisions income and herein in reporting their share of Company loss for income tax purposes. i ri but i cn sh i 1 be �i0 D S- ;" t o ui _Sty ihut-On 1S Pl `'-, Z jecS a= er t e D _ the nd caid un r �l iabilities 0= CeCI�_ �� - 1� are i P exce=S 0- a_ 1 the _sse-� C- trie CGm�a % rers o accouinr C- - a i nil es to e - ab i =_s . iio ie• -le e_ oY Lur�.her e:{,-`-•�, nori-r=�ourse ccntr _cra +� return r either as to the other Member, priority over anY Losses or Distributions; shall have p Or as to Profits'nct apply to loans (as of Capital Contributions 6 5 shall er has made this Section which a Me, provided that Contributions) tureen the Capital arrangements be - distinguished frem other compensation to the Company Or to and each McTtioer for services rendere . Company Distributions are ributions. To the extent repay any amounts 6.6 Erroneous Dist-- rcmptly . the recipients shall P aful Distribution ient of a wrong r ;X (6) years incorrectly -paid, Any reci.p o1 s_ wrongfully distributed• Company for a period demand Of the wrong. liable to the until, upon The shall remain liab_ Distribution incorrect payments• following the wrongLul for all incor_ future Sut''s is received current or Company, repayment right to set off any aid amount• Company shall have th against h any such incorrectly P owing to such Memberreement shall Nothing in this Ag- to the to Company or unsecured loans 6 .7 Loans secured the terns of from making or pursuant to prevent any Member Comp Y Company by agreement with the this P_greement. Matters Partner Elections.. The Tax Other of all tax returns Returns and timely filing Code and all 6.8 to the cause the prepary the an Pursuant in each shall filed by and required such required to be necessary Conies of r tax returns deemed does business• other Corn'Qany r shall be furnished to in which the theref_Om, the Fiscal jurisdiction after the end of under returns, or pertir_ent information Company �n a reasonable be made by the the Members with' to Manager with the elections Permitted made by the Year•. Al or state laws shall be federal Tax Matters Partner. Of the any other approval Notwithstanding Charaeback' required under Treasury 6,� Minimum Gain extent recto Agreement to the in order that this Agre_ r this Agreement, iv) (e) decrease in provision of spa-1(b) ( if there is a net ,- eback, Year, all Members Regulation Section 1. cra_g taxable y minimum gain a Company Such year (as contains a ,1 during the end of Min gal- balances at o� be_O_e an`; CompanyLmi,"� capital accour_t ba �a) shall be allcca"e'a a <<s c= oc_- a abC� ie yea-, lt- t�_t'.^C ned l^-Cer Sec 6 ...s for such ta:cab r_ Ysuoseq_or 1, OC� t� OP_S Oi CCTPDa7iQ 11 ridr i r ne sarY 1 t� Ot:^-e- a-_ suc-1 y-a: neece0 t0 e_-m r OnS nCOC,c and gG-n _O ;n 1�=�DG�L �CS � � �; a s �'n e alilGun a. Q l n C e S _G S a, c{ 25 out and comply re intended to carry 7nd c and provisions of this Section 6.9 a_ O_ Treasury Regulations Section ,l• 6 9 shall rovisions r Section with the p rov_Sions contained in this the terms used and p , be so construed and applied. ARTICLE 7 F NW MEMBERS FLATS P1ND ADMISSION O- WITF-DRAWAL ASSICNMJ voluntarily withdraw from No Membe shall Interest, or 7.1 Withdrawal• transfer or assign an An or sell, o Withdrawal Event. Y the Company, act that constitutes a from the voluntarily commit an A a withdrawal f� act of a Membe' that constitutes re- nt and voluntary �or;al breach of this Ag constitute a may.---- or individually, Company shall Member, either der such Any cash or an an any es for such breach• the the company r to such Member by shall be entitled to Y ollecald�rabutabl_ damages caused by a property otherwise other p t0 first satisfy any Company shall be applied Member's breach of this Section 7.1. The Bankruptcy or Incapacity �Dacity. the event oL r Ir_c - In 7.2 Bar_kru�tcv °- dissolve the Company- r and in addition to any rights Of a Member shall not u ose of or Incapacity of a Member for the p rP BankruPtcy to be exercised solely r roperty, ,•- his or her p °f such Member necessary ower as ' such Member' s estate or adminer eshall haVe such p settling f such Memo r as an assignee a designate a successor nee in the legal Yepssessed1to (a) join with such assig such Member PO ,p Interest and to 7 Substituted s or her Membership assignee as a ° h substitute such l not have making aDDlication to such legal representative shall of such however, the plac� Member, provided, the Member in than a Substituted Section 7.4 (other the right to become conditions °f - acknowledge instruments) ==_ Me ber unless the 1 i ocations - that the assignor execute and aand a-- requiremerit t receive Distributions are first satisfied and credits• of profits, Losses, 7.3 Assignments, Over Trar_sfer. Any assignment, pledge 7 3 IrZt�r S Tnter�s� (or be_^_e='_C1?1 TiP [� er - O- L ne �r.Ce C- a r ; on O_ any �r e^_C uiiyr� On-r -, e lt- C. C a vv i d G71 t.LeYa_n) --,Y�� y� _ 7 S Q ^ and C+^al not -,e t-^=5 V shG-lcmc� _cL - - -- V urcn t-�1e C - 26 No assignment, General Restrictions• of a 7.3.2 of a Member's Interest (or pledge or encumbrance ht to receive Distributions interest in the rig and credits) shall be beneficial Losses, ;tion lions of Profits, r dispos- and alloca r assignment, or other pursuant made if such transfer, of the Company P in the termination ,-ticles 10 and 18 would result the code. Subject to A_ Member's to the P_ct °r nment , pledge or encumbrance or a or below, no ass Member r or to any other person ,- to another Membe` r shall be effective interest s not also a Member entity who i the Majority Vote of the Members; w_thout the consent of freely transfer his, her or provided that any Member may to a legal entity that is more than fifty controlled by the, Member or its Interest owned or Yship percent (50, 50 s) hi s or her Membe� recharacterize thetitle t x their, Planning purposes. Interest for estate Anything herein to Assignee• and the 7.3.3 Allocations the Company notwithstanding' the Majority Vote of to the contrary consent of fee of a other Members, with the neat an assignee Y shall be entitled to t_ the Members (or of a beneficial interest therein) shall Member's interest respect r thereof in all for allocations of as the absolute owner the assignor incur no liabiliand credits or for Distributions to the profits, Losses, assignee. An assignee of a a Assignee's Rights. in the 7 .3 • - a benefici al interest Member's Interest (or of Losses, and Membe- allocation of Profits, pursuant to Distributions and the a Mem'oer_ is not admitted as vote on any matter, credits) who no right t° Section 7.4 shall haVe account of the Company's information or nee, require any but, at the sole expense of such asS1books. transactions, to inspect the Company right be entitled to receive shall have the shall only Losses and an assignee of Profits, Such the allocations, the Distributions and the beneficial i nterest ir_ ib able to �,, date the Manage' credits a--- Ut rom --e -. L4emhe_ S 1 nt rYect ' c came _ � a �, -otiCe of the acT-u ` A 7.4 Substituted Members. Me t I s No assignee of a M�. 7.4.1 Conditions• Bankrupt or tative of a Interest (or legal represen Incapacitated Member) shall be admitted to the Company as r the Majority a Substituted Memberswithout less he consent nof the following vote of the Me conditions are satisfied: 7.4.1.1 Executed AssigA duly nment. executed written instrument of assignment forth the intention of the assigning setting i nee shall become a Member that the ass_g lace shall Substituted Mleewr her ith the in his oManager (provided have been fI in the that this condition e hall not case of a legal rep entative ofpa yBankrupt or Incapacitated Member who desires to become a Substituted Member); 7•4.1.2 Extent of Assignment. The an must Member's Interest being assig es rights e and interest in all of the respect to the Interest or portion duties with ned (for example, a thereof being ass_g Substituted Member may not be the assignee of 's right to receive Distributions only a Member from the Company, without or other benefits also being assigned and assuming the other obligations and benefits attributable to the Interest being assigned); 7 a 1 3 Additional Instruments. The assignee shall have executed and acknowledged such other instruments r r desirable as the atog er or yeffect Members deem necessaincluding such assi 6nme It and adml'SlOnr ptan t` acce ce and _Cn � ^e wr; ��__ _ l i mj tat' 'r��' C- t -� rJrp-� _51ons C- _ _C: aS� aacc� - r= emenz i _ _ 'is assignee a transfer fee to cover all ng reasonable expenses of the alaexpensesnarl•ddall without limitation alllegal amencment of this expenses related to nization if Agreement and the Articles of Crgan waived by needed, but such transfer fee may one shall be the Members or the Manage- (i- agoointed) and shall in no event exceed $500.00; and a l S Capital Contributions. All the 7 fired pursuant to Capital Contributions requ Section 3.1 shall have been paid. T Member. Within a 7.4.2 reatment as a period of time after ctisfiedt allhof the en the reasonable P assignee have s assignor and the a the Manager shall amend conditions of this Section 7• rem as a Substituted this Agreement to admit the assignee son as a Substituted Member. The admission of any p Me mber shall become effective upon the men e yo as then Agreement. _Any person admitted. to shall be subject to all of the Substituted Member Agreement. provisions of this Ag � Members. After the formation of 7.S Admission of P.dditior_a_ Majority vote of Per with the consent of the Maj for such the Company, any e Member o- the Company the Members may become a consideration as the Members shall determine• NOlosses, Income shall be entitled to any retroactive allocation o the Company. The Members or the Manager, at expenses incurred by ,- is admitted, may close the Company the time an additional Member ro rata the Company's tax Year had ended) or make p books (as thoughanto an additional Member ,s tax year in which an additional allocations of Losses, income an expenses for that portion of the Company time such new Member was admitted in accordance with the Code. Any this P_greement shall ,-s are admitted to the Company, ; opal Member or Members ��r upon which each such Additional zd to reflect the `_ ms r, s =,'rCentage G� � -e new Membe_ be amended cn clm=_ted, inC_ ,C_^.0 �, Gtd p''_ -c-„ Gc T=1� er�StS M e T�yC C- (S) _^-aS c_ n` : Q t_^_n re-Ca_rU, -•. - .• _ 29 ARTICLE 8 DISSOLUT ON AND TERMINATION 8.1 Dissolution. 8 . 1 . 1 The Company shall be dissolved upon the occurrence of any of the following events: 8.1.1.1 by the unanimous written agreement of the Members;. 8.1.1.2 upon the entry of a decree of dissolution under Section 29-785 of the Act; or 8.1.1.3 the election of a Member in accordance with Section 3.8. 8 . i . 2 As soon as possible following the occurrence of any event causing the dissolution of the Company, if the Company is not continued, a representative of the Company shall execute and file a Notice of Winding Up with the Arizona Corporation Commission. 8.2 Waiver of Right to Court Decree of Dissolution. The ble damage would be done to the good Members agree that irrepara will and reputation of the Company if any Member should bring an action in court to dissolve the Company other than in accordance with .this agreement. Care has been taken in this Agreement to provide what the Members feel are reasonable and equitable terms and conditions. Accordingly, each of the Members accepts the provisions under this Agreement as such Member's sole recourse and of the various entitlement in the event of any ous circumstances described herein, and hereby waives and renounces any right to seek a ccurt decree of dissolution, to seekthe appointment by a court G_ a liquidator for 'the Company, or to seek partition of the prCp_ert,T o: t:^e Company. Notwithstanding any provis4cn herein to anyate p the Compa�'•T, Or r.Cti1, mat! seek ]ud'_CTaI _ p =er^a nce and/or damages) in the e-T�nt a -- -_- �' nClod=ng spec i --C Per , C her ?'eTJreSen�aL1GP_S, s P VTeTace'_^ breach-es a: _ Gt ..er h—e" ='-. or covenan_� contained - .; 0 _ f a Dissolving Statement. Upon the g,3 Effect of the gilin� • ,- on its the Company shall cease to carry dissolution of the Company, be necessary for the winding u- °i business, except insofar as may continue until its r P existence shall a ,-i zora separat_ p,y_ its business, but has Articles of Termination have b e e� filed the Company Corporation Commission or until urisdictior_. been entered by a court of competent j iGatlo I Q`l L Y---- 8.d WindIna Un L_cu_ Upon dissolution, an accounting shall be 8•-a '1 'independent accountants of the made by the Company s indnpd of the Company's assets, accounts of the CcmpanY liabilities and operations, from the date of the last previous accounting until th e d hall be appoint ed) shall Members or the Manager (if °ri immediately proceed to wind UP the affairs of the Company. f the Company is dissolved and its I 8.4.2 the Members or the Manager affairs are to be wound up, snail (1) sell or otherwise (if one shall be appointed) s assets as promptly as liquidate all of the C the nextent the Members or the practicable (except to o assets to the determine to distributes any Losses Manager may Profits or Members in kind) , (2) allocate any r Capital i from such sales to the Members (3) resulting e with Articles 3 and 6 hereof, Accounts in accordance other than discharge all liabilities hiding 11 the �cost( srelating to -liabilities to Members), In u°� and liquidation and the dissolution, windingas (a) establish such reserves ent distribution of assets, lispprovide for contingent may be reasonably necessary to for purposes of determining liabilities of the Company ( the amounts of such the Capital Accounts of the Members, E the deemed to be an expense oZ reserves shall _be - , i es of the Company to discharge any liab'1't = Ccmpar_v) , (5) r the-_r Interests n ,�re,cer= other than on account °- t:re C.r T)rofits, and 6 t'__e followi nc order . r =ni a:setS _: any assets be �1 Or independent the date of r value of such assets a independent market l be determine. by agreement of the Members. dissolution shall on Sold appraisal °r b,1 be deemed to haVe bee ha_ their fai' Such assets s _ d;ssolution for as of the dame o� of the value, ar_d the Capital Lccounts to the market be adjusted p Ursuant members shall and 6 of this 1 of Articles 3 provisions Agreement to reflectch deemed sale. such ositive balance of each 8.4.2.2 The p termined after Account, as cle MemberisCapita- all Capital Account taking into accoun Company's taxable Year adjustments for idation occurs, shall be during which the liqu either in cash or to the Members or the distributed r-Wined by the Members in kind, as deter ointed)1 with any Manager (if one shall be a PP valued for �stributed in kind be - -value value. Any assets d- their fair market respect this purpose at Distributions to the Members be made in such Accounts shall of their Capital forth in the requirements set a_1 (b) (2) (ii) (b) (2) oL the accordance with section 1.70_ Regulations. Treasury anything to the contrary Notwithstanding _ - yL'- g.g.3 idation within the meaning Agreement uP°n a 1 of the Treasury n this Agr�_ a 1 (b) (2) (ii) (g) of section 1.70 - a negative deficit Capital Member has to all if any giving effect Reculati.ons, (after g and other Account balance allocations cent-ibutions, distributions, all taxable years, adjustments for liquidation occurs), Capital Account which such 1'qu ear during obligation to make any including the y no and the such Member shall have of the Company, capital l Account shall contributic, n o theCapital Member's.Ca=ath Member to the r ^ c; -.je ba_a_ debt owed b l Y purp°se ,_c- cor,s_derea a er ^- =°` 31 IR 8.4.4 Upon completion of the winding up, liquidation and Distribution of the assets, the Company shall be deemed terminated. 8.4.5 The Members or the Manager (if one shall - be appointed) shall comply with any applicable requirements of applicable law pertaining to the winding u� of the affairs of the Company and the final distribution of its assets. g . a . 6 A reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the discharge of liabilities to creditors so as to enable the Company to minimize the normal losses attendant upon_ a liquidation. In the event the Members or the Manager (if one shall be appointed) shall determine that an immediate sale of part or all of the Company's assets would cause undue loss to the Company, the Members or the Manager, in order to avoid such loss and to the extent not then prohibited by the Act, may either (a) continue to operate and maintain the business and assets of the Company and defer liquidation of and withhold from Distribution any assets of the Company (except those necessary to satisfy the Company's debts and obligations) during a liquidation period not to exceed twelve (12) months subsequent to the date of dissolution, to wind up appropriately, economically and efficiently the affairs and business activities of the Company or (b) distribute the assets in kind to the Members in proportion to their Capital Ac- counts. If any assets of the shallCompany arto be be distributed on distributed in kind, such assets the basis of the fair market value thereof, any Member to whom an interest in such assets is distributed tenant inbcommon with receive such interest therein as a all other Members receiving such and interest, and the Capital Accounts :of all Members will first be adjusted as though such assets had been sold at fair market value and t^e resulting ga_n or loss had been allocated to them in 1� 3 The fa. mark`, 'value o- S ^� ac_ordance %%lith Artic =SctS Shall be Cete b- �;ninec y an-ndependent a�ura_Se_ a - selected Doi the Me: hers or ,ianace . 33 8.5 Articles of Termination. When all debts, liabilities and obligations have been paid and discharged or adequate provisions have been made therefor and all of the remaining property and assets have been distributed to the Members, Articles of Termination shall be executed and filed with the Arizona Corporation Commission. 8.6 Return of Contribution Non -recourse to Other Members. Except as provided by law, upon dissolution, each Mercer shall look solely to the assets of the Company for any Distribution, (including the return of his or her Capital Contribution). If the Company property remaining after the payment or discharge of the debts, obligations, and liabilities of the Company is insufficient to make any Distribution (including any Distribution which constitutes a return of his or her Capital Contribution), no Member or Members shall have recourse against the Company, the Manager, or any other Member. ARTICLE 9 ARBITEATION 9.1 General. The Members and Manager agree that disputes between them shall be resolved solely by arbitration in accordance with this Article 9. 9.2 Selection of Arbitrator. Any Member or Manager wishing to submit a dispute to the arbitrator(s) shall notify the other Members and/or Manager, and the Members and/or Manager shall have fifteen (15) days from the date of such notice to agree upon an arbitrator. If the Members and/or Manager are unable to agree upon an arbitrator within fifteen (15) days, each Member and Manager shall select one arbitrator who together shall select a third arbitrator, and that third arbitrator shall hear the dispute (the arbitrators shall be members of the State Bar of Arizona). If the arbitrators shall be unable to agree upon_ the third arbitrator within fifteen (15) days, the parties to the arbitration shall request the then presiding judge of Pima County Superior Court to anc=it an arbitrator. �L'te SP_=' 1 c SceC CurSL'cP_t 'tG 9 . = r�cecu_ _ • JY =dyYe_ =or __cnL of the Amel4 can t_,— L;n' =crm RL as of _CC_ _ --r - --- --G`i C.n Asscc=ate _ .. Cr DG mS ^ 5% _ a Expenses . All costs and fees incurred (including the fees 9 .4 ---- an arbitrator) in connection With��ths aGb1determined by charged by Y o. n party or otherwise be paid by the non-pre,ra_li_g Yee that each the arbitrator. The Members of the etionate y hereby er share of a the costs oa will pay his, her or -'-s P - rc with any require arbitration as such costs are incurred, adjustment to be made after the arbitration decision is made. Manager agree that 9.5 Suspension of Time. The h �Members a and d ected by a dispute all deadlines set forth he- including any which is the subj e_t of arbitration hereunder (- after time ter notice of default) shall be extended for a applicable period f he irequired to complete the arbitrat period equal to tion. tor shall Final and Bi ndinQ. The decision of the sarAl�udgment may 9.6 al the Members. be final, binding and non -a- _ ---able by court of competent be entered on the arbitrator(s) award in any jurisdiction. Notwithstanding the foregoing, no 9.7 Member Voting Rights. or which is matter upon which the Members are entitled to vote, Agreement subject to the Members' approval, under this expressly arbitration. shall be submitted for resolution by ARTICLE 10 BUY -SELL PROVISIONS �h of a Member. In the event of the 10 .1 Redem. 'o or_ upon Death death of a Member (including both spouses who comprise a Member or dea 1 trust or the owners of who comprise the trustees of a family the foilowing procedure another entity that may own an Interest), the. it be followed with respect to all of the Interest owned by shall Member: 10._.l Option to Comnanv. The Company shall have the option to redeem all of the Interest of the decease The Ce_'cd r the cot_ on in favor of the Company member. r °` o= t:^-e eece=sed Me*nber' s dear` s}^,al l c^.mmence C_ t-n? dGt _y- t here__��r or t? and sha__'tJr=C�eP_ notice (' S = �e- ---= Cn ,pony -~ y_ y - - `^-^ti.en = O_ the_O) QG_� aG�c Ci :ie nar e G'�� est a__ e-sonc_ Period 1") The Company, if it desires to exercise its option to redeem such Interest, shall give written notice of its intention to do so to the and the at any time within the Company Option Period 1; sale and redemption of t ne dece �saed af�1Derter de� iverycof shall close within fifteen (15) y the foregoing, to said written notice.Notwithstanding ranee proceeds shall be the extent that life pursuant to the provisions or collected by the Company P f such Article 11, the Company must redeem as much Interest as possible. To the extent that suchh li e insurance proceeds shall be unavailable de allOf the company o h insufficient to allow the Company o s of Sections 10.1.7 shall apply Interest, the provision . 10.1.2 Option to Other MembeYS• 10.1.2.1 Pro Rom• In the event the Company shall , cient life insurance not exercise its option or have su_T-__ proceeds to redeem the Interest the then Members shall P then specified in Section u0chase the Interest. The period of have the option top'" the option in favor of the other Members che Company Option on the first day following the The Period 1 and shall end thir�-Y (30) days thereafter. in accordance the ratio o'Otion shall be exercisable Companyhthen owned of the portion of the Interest Of the 1 0all of the by each of the other Members to the totaherMemJ- If all Interest then owned by all of the of the other Members desire to oLrtheelri their option the purchase their pro rata share of shall each give written notice of deceased Member, and the deceased their intention to do so to the COoPtion period; and the Member within the thirty (30) day P ale and purchase of the interest aQ,that veryevent o t e hall s s after close within fifteen (15) day of said notices cr_e or mcr= o= 10 , 1 .2 . 2 NGn T-ro Rates . = -_ - de -to to exerc� se the cpc.� cn sC_c- Vje rs CG not s- Se G n=_ i1e'."�•y.er3 1 l a�Gve, - _ �� i Cn 10 .2 i p`a^�_Cr> t...-_.__..._= - Oren t _mel - - = S',--all ha -,,re g- t_�e cat_^� _Gr - t_ fir GDt'_CP_ S.^al 1 n?'Ie - 36 period to purchase, pro rata, or in such fifteen (15) day y mutually agree on, the unsold proportions as the� other of the deceased Member. If the purchasing it option to purchase the Members desire to exercise the__ y ,-'s Interest, the shall balance of the deceased of the 0 of their intention to do so to each give written notic� the Company and the terminated Member withurchasef oitthe cption period; and the sale and p (15) daY within fifteen (15) days after Interest _shall close T said notices. delivery of the last oZ he ent 10.1.3 Mar_dator'v Sale to deceased Membertshall `not that the Interest owned by the provisions of have been sold pursuant to the 0.1.1personal Sections 1 and 10.1.2 above, then the p r he deceased M st sell representative of tyaestate nd the Company must all of the Interest to the Companny, , redeem such Interest; and the sale and redemption of the Interest shall close within fifteen (15) days after the expiration of the fifteen (15) day option period set forth in Section 10.1.2.2 above. Price of Interest. The purchase 10.1.4 Purchase price of the Interest owned by the deceased Member shall be determined as follows: 10.1.4.1 Determination of Book Value. The bock value of the company shall be the certified public accountant determined by Company the CY on an accrual an then servicing r the last day of the accounting basis as o� month preceding the month in which the Member hall be referred s dies (hereinafter such day date") • In the event the evaluation to as the Certif Company doeied public s not have a accountant does the Companv at such time, erscr_al representative by the Company and the P l } s c`_t_-i�a mutual agreement shall YSzT=vsuc^ beck 1;= _ -o vUDI i C accoL'?ltcr: b.c lr. aCCcrdanc which shag r ; o-, accepted accCL'ri� - �I► anuli ea, t sto Book Value • The 10.1.4.2 P_d llstmenhall be adjusted as book value of the Company follows : Bad Debts. The p , Reser`Te LOr and work in accounts receivable shall be process of the Company serve for bad debts rf h educed by a renot thf forth in en set isuch reserve is the balance sheet othe the valuation date. Company as °f e as of the The amount of such resew determined valuation date shall be the by the accountant based upon past experience of the Company in collecting its accounts receQvaand and work in process when bill�d other relevant facts which ould be considered by the accountant g . Book Value of Life Insurance value of any life policies. The book the o_lcifor by es owned by insurance e P paid the Compny- a Members or P�d including as provided herein below, station policies insuring without lime Member, the deceased the life of equal to the cash surrender shall be valuation date, value thereof on the ortion of any plus the Pro raga° P to such date premiums paid P a period remiums cover which P plus any extending bey°nd such date, distributions which h ° h have not been accumulations consideration in taken _> into ender value, computing the cash surers plus , policy lcar_. Less any J�Cies and due on said P°__ nte_est then V taken into N_ni Cn have n°� rJil7U.ti rg the Ca5:= i n C ,i cCnsideration - Y ralue 3s A C. Reserve for Depreciation. In the event that the book value as of the valuation date does not reflect a reserve for depreciation pertaining to the depreciable assets of the Company, such depreciation shall be determined by such accountant in accordance with generally accepted accounting principles and procedures consistently applied and based upon all relevant factors which should be considered by such accountant. D. Goo_ d=l• Book value shall and other exclude goodwill intangible assets (including without limitation copyrights, trademarks, service marks, patents tradenames, se' � )• and other intellectual propert Y g. Tresets. In aury Intres determining book value in the event that the Company, prior to the valuation_ date, has redeemed the Interest of any Members of the Company, the sedeYedt so as treasury eemed shall be con Interest Interest, such treasury shall be excluded from the issued and outstanding Interests of the Company, and the Principal Company as of the obligations of t of the valuation date in connection with such redeemed Interests, if not duly reflected in such book as a the Company, shall be liabi litY °= ; included as a l;aD;l;t-jf n deters-n; [ book value. Deferre:! ComnenSatlon. the has I the event that Comoan',r � ente_ed into __.r da_ed 39 IN compensation agreement with any of itsmembers(as of the date hereof, there are no such agreements), the accountant shall include among the liabilities of the Company an appropriate amount to reflect the present value of the obligation of the Company in regard thereto in accordance with generally accepted accounting principles and procedures consistently applied and, if the accountant determines there should be a corresponding asset set forth in such book value to reflect the present value of any future tax benefits to be realized by the Company by reason of such deferred compensation agreement, then such asset shall be included among the assets of the Company in determining �W book value. G. Multiplier. After the adjustments to the book value of the Company specified above shall have been made, the book value of the Company as so adjusted shall be multiplied by one hundred percent (100%). The amount so determined shall represent the adjusted book value of all the issued and outstanding Interests of the Company. 10.1.4.3 Price of Interest. After an amount is determined by the application of the foregoing provisions, said amount shall be d Percentage Interest of the <<;�=t; oli e by the �--c � . decs sec- Member being redeemed by t.-e Compan-_t end/or purchased hereu_^_der by the surviving The eS11 t; ng p:^duC_ oral 1 be the eof the deceased V1eml:e= l s T_ntere=Z . 40 10 . l . a , a_ Intent Behind Use of Formula to Determine Interest Price. The Company and the acknowledge and agree that Members expressly �, �, r r one hundred the use of the mua her with oche_ means to percent (100%), tog a deceased determine the purchase price of a Mintended to the ember's Interest, is any question. as to thliabilitiesn and the of Company's assets and attendant expenditure of time and one involved in the resolution of such question; accordingly, the parties acknowledge and agree that the purchase price of the Company's aggregate issue and outstanding Interests as so determined is to be final and be conclusive, regardless of what price might on an ent such Interests as a result ozassets ndand appraisal of the company's liabilities as of the valuation date. '� of Value Determinations- The .5 Frto the foregoing valuation of the Interests pursuant be determined at least on an described methods shall moreas the or annual basis as of December 31, a Majority vote approval byecial valuation Company may determine by the that a special dell Of the Members; provided described methods shall be pursuant to the foregoing respective triggering buy - as of the date of the employment or withdrawal or event (death, termination of sale or disability) set removal as a Memb er, voluntary forth in this Article 10. Closing on Redem-otion by Company. If the 10.1.E Interest as Company redeems the deceased Member's 10.1.3, respectively, o 10.1.1 r in Sections on the at the closing provided above, the personal representative, the Company (by delivery of Y�demption, shall transfer to _� _ Company may request) all o' the such dcc".me^_t_s as the CeCeC nV's interest. The DurchThease _P_ aer- e pa;d 7 Davm_t _- y _e be -.dece'ce^ manner 171 41 10.1.7.1 Indebtedness of Member as Credit Acainst Price. In the event the deceased Member is indebted to the Company at the time of his or her death, the amount of such indebtedness as of the date of closinc shall be credited and applied against the purchase price up to the amount of the purchase price. 10.1.7.2 Down Pavment and Use of Life Insurance Proceeds. The Company shall pay any life insurance proceeds collected pursuant to the provisions of Article 11 to the personal representative of the deceased Member's estate in an amount up to, but not in excess of, the balance of the purchase price of the Interest after any credit is made pursuant to Section 10.1.7.1 above. The Company shall retain any excess insurance proceeds for its own use. In the absence or insufficiency of any insurance proceeds, the Company shall pay a down payment in the amount of ten percent (10.) of the purchase price. 10. 117.3 Balance Pavable by Note. The balance, if any, of the purchase price shall be paid by the Company, at its option, in -full by business check or on terms by executing a promissory note ("Note" or "Notes") in favor of the deceased Member's estate or to such other person(s) as may be directed in a final nonappealable court order, dated as of the date of the closing in the principal amount of said balance. Each Note shall be in the form attached hereto as Exhibit "A" with all blanks appropriately completed, the terms of which incorporated herein by this reference. 10.1.7.4 Pledge Agreement. Upon execution of the Note, the Company, as Pledgor, shall enter into a pledge agreement ("Pledge") with said personal representative or such other person(s) as Pledgee, whereby all of the shares of Interest transferred by said personal recresentative to the Ccmoany are pledged to secure the cavtnent c`' the NCt=. _ .e P l edce snail be in the form at ac:_ed ic_eLG S -_C- if J7z 11 w'_t a! 1 b1 a_ ks acorcor_aee� cc, _=�ed., t he terms of �d is : are here_` 7 Z`" t---= rrr Purchase by Other Members; 10.1.8 Closing °T1 Company the event that the payment and Security In st of a deceased Member and shall not redeem the Int;ye r purchase the other Members shall ex__c_se tithe closing shall. occur on Interest o- a deceased Member, above At the the date specified in Section 10.1.2 �� transfe� to ersona1 representative shall r closing, the p of such documents as the such other Members (by delivery request) the Interest Company or such other Members may SO so purchased, and thereafter the Company shall reflect in P amounts its records the respective of the interest the purchased by such other Members. At the closings f payment of the purchase price and the security therefor ner as i_ shall be determined or performed in the same man ecedent'Interest had been purchased by the all of the d s a 10.1.5 and 10.1.7 Company (pursuant to Sections 10 1 -' for the company, above) but by substituting, sepa_ately, ,- so purchasing _Interest from the each of the other Members P of the and by using the forms personal representative, and "B", Note and Pledge attached hereto as Exhibits P i ately completed, respectively, with all blanks aP_ such conforming changes thereto to reflect and making and not the Company, shall be that the other Members, provided that: parties thereto, p 10.1.8.1 The provisions contained in 0.1.7.1 above relatingto indebtedness owed by Sections 1yshall not be applicable. a deceased Member to the Company 10.1.8.2 Copies of any Note and Pledge executed by brs shall � delivered ,to the the.p urchasing other Membe Company upon execution. L ^ by Member u�� - - 10.2 Sale of Interest ene by the Company or TRF of Employment• In the event the e aP�°of a Member or who is a trustee any Member (or person :who is a part owners of another entity that may trust or one Of the owne_ h _ owe r_ J procedilre of a family for cause", the Loll c -) ; c terms naL_ no ter - own n atec. CWn an i 7n - eres tC al 1 i nteYeSt CW'--- by t ,�=c'. respect me^Lei 1 } ? CCmpa COTD=n o- 43 err terminated Member. The period of the option shall _ P rmi.nation of the Member's commence on the date of termination 60) days thereafte r employment and shall end sixty ( r it desires The Company, i- °Company Option Period 2 ) f the to exercise its option to redeem the Interest o_ shall do so at any time within the terminated Membe_Y , notifying the terminated Company Option Period 2 by intention to do so; and the Member in Writing of its redemption of the Interest shag cloy . fifteen (15) days after delivery oL said wr_t�e. 10.2.2 Option to Other Members. Pro Rata In the event the Company shall 10.2.2.1 a not exercise its option to redeem the Interest then f i ed in Section 10 .2 .1 above, terminated Member speci_ purchase the the other Members shall have thetr _ nio avor f the other Interest. The period of the OP following the end Members shall commence on the first day an Option Period 2 and shall end c thirty e(3 in of the Comp, Y _ days there The Otion shall of the interest eOf the Company accordance with the ratio o other Mernbe'-"s to the total of then owned by each Of the all of the other the all of e Interest then owned by tubers . If all of the other Members ratadesin share e to exercise cthe their option to purchase their P the shall each give eve Interest of the terminated Member, ion to do so to the Company written notice of their within the thirty (3Q) day -and the terminated Member purchase of the Interest .option period; and the sale and in that event s1 11 close with r fifteen (15) days after delivery of the last Of said notices- 2 2 Non Pro Rata. If one or more of the other 10.2 Tied in desire to exercise the option speci-- M'embers do r_ct en those other Members who �+-;on 10.2.2.1. above, then to exercise Section, given tj rely notice 07 intention ^ 1- _ sha l have - _ ,� oot_or_ for an addi ti. G� C `n �-a }•? Gs� _ °- _- a.. _ Or i n CJ. l.i C te h_r CCi__Cn. Y rat4aj _ _ r.r'ia z /- -0 unscic I_ t',.je purc.--arg Tr-- __Z _ _CP_ O - ram_^_^ca shall each oive written notice of their intention to do so to the Company and the terminated Member within the fifteen (15) day option period; and the sale and purchase of the Interest shall close within fifteen (15) days after delivery of the last of said notices. 10.2.3 No Mandator<r Redemption by ComiDanv. To the extent that the Interest owned by the terminated Member shall not have been sold pursuant to the provisions of Sections 10.2.1 and 10.2.2 above, then at the option of the Company, which may be exercised or not exercised in the sole discretion of the Manager, the terminated Member must sell all of the Interest to the Company, and the Company shall redeem such Interest, and the redemption of the Interest shall close within thirty (30) days of the expiration of the thirty (30) day option period set forth in Section 10.2.2.2 above. 10.2.4 Purchase Price of Interest. The purchase price of -the Interest owned by the terminated Member shall be determined in the same manner as the purchase price of a deceased Member's Interest is determined as set forth in Sections 10.1.4 and 10.1.5 above; provided that, (a) the valuation date in Section 10.1.4 above shall be deemed to be determined in reference to the employment termination date rather than the date of the death of the Member, (b) at the option of the terminated Member, the terminated Member may offer the Interest to the Company or the other Members for a price lower than 'determined in accordance with Section 10.1.4 above, and (c) the purchase price to be paid to the terminated Member shall be reduced by the amount of any damages caused by the terminated Member to the Company or TRF, as the case may be. 10.2.5 Closina on Redemption by Comnanv. If the Company redeems the Interest of the terminated Member, the closinc shall occur on the cafe specifies in n lu . c_ 10.2.3, re =_ ecti vely, abcv=- . _ t:.e 'na"=-� V1emheer shall t— s=er to the... -Y o= suc^ cocurments as t o Company maY 15 Payment and Security. At the time of the 10.2.E ; Interest and closing, the Company shall pay for said ,-e the unpaid balance in the same manner as se shall secure above (pertaining to the forth in Section- 10•- edemption by the Company of the Interest of the deceased redemption Member) . 10 . 2 . 7 Closi nd on rum - 1"�` - shall not the Companyr the event payment and Security and the terminated Member of the the Interest option to purchase the their °P _redeem the closing on the other Members shall exercise Member, Interest of __e terminated me the Interest shall occur in the sago purchase and. sale of the sale were made pursuant the the manner as if to the purchase by (pertaining berto Section 10.1.8 above e the Interest of a deceased Surviving Members of dM terminated Member the At the closing, the de�;very of such documents as (by Interest such other Members r reouest) the Members may _ in Company or such other r r the Company shall reflect - and thereafter so purchased, of the interest the s records the respective amounts Members. The p�ym _t therefor shall be in the purchased by. such other rice and the security purchase p forth in Section 10.1.8 above the surviving Members oz same manner as set by (pertaining to the purchase deceased Member) - the Interest of a of "For cause" °For Cause" Definition willful 10.2.8 dishonesty, incompetence, , personal d- involving persona .shall mean duty breach of fiduciary duties or misconduct, perform stated intentional failure to P in the Nothing ,.. •profit, Agreement. r who breach of this Ag Member any material mean that be TRF shall be foregoing shall or foregoing ee of the Company employ unless there an ; i I-, basis, shall be It w__- t between a� �_ other than on an et een the ed employ � ent agreorer written employment to that Member be . the case may be, a--d Shall a � Company or TR_ , as the ccrtrary . _ _.1 L - _ ,rP Tr1t erect ... - -•�- - �- - —_ -, .. .- _- cLG- �xce,c ` as p:C. ,a �' .._ and —t-J , e 18- a_c,7e g=-- ces__ �� se- +rr or her Interest in the Company (hereinafter, reference to "Sell" or nclude a sale, assignment, exchange or "sale" of Interest shall i. but shall not include a pledge or other encumbrance of gift, followed: Interest), the following procedure shall be fo__ 10 . 3 . 1 O-oti on to Ccmnanv. The Member desiring to sell his or her Interest shall notify the Company in writing of such intention. The Company I talethe s a of the ootion to redeem all or a portion of the selling Member. The period of the option in favor of the Company shall commence on the date said written notice is given and shall terminate sixty (60) days after the ipt of such notice by the Company ("Company Option rece Period 3"). The Company, if' f it desires to exercise its option to redeem the Interestwithin t the sComI MOD eon shall do so at any time Period 3 by notifying the selling Member in writing Of its intention to do so; and the redemption resulting from the exercise of said optionshall a d oritt�n notice. within fifteen (15) days -after delivery oz s 10.3.2 Ootion to Other Members. 10.3.2.1 Pry a In the event the Company shall erest L not exercise its oof a ption to redeem th0.3I1 above, then selling Member specified in Section the other Members shall havethe t ' ooption to purchase our thesother e Interest. The period of the op end Members shall commence on the first shall ay oend thg tye(30) OIL the Company Option Period 3 - option shall be exercisable in days thereafter. The accordance with the ratio of the Interest of the Company all of. then owned by each of the other Membersltoofh thetoother then owned by all of the Interea�_ st deS_re to exercise If all of the other Members Members. ro rata share oz the their option to. -.-purchase their F they shall each giVe Interest of the sellir_a Me*nber, Comany n-'nz; on to do so zo the _ o W'-'i tten notice O- `oe, - day o-pt.'-Cn d the selling MeT °l� ier - -n�_ `-v T `S � -- - G '_'u = ..-.. i,GsC "' ` _e—=, ` erCC; antheG te Sc'! P Gn _ - - -- (� �) �-=:iS = -e'" de-_ -_-! ...-i ant sha,I close W^ trC-1_ _c - C= t_ last. sa_" -- 10.3.2.2 Non Pro Rata. If one or more of the other w in the ortion Members do not desire to exercisethose other Members who section 10.3.2.1 above, the_ of intention to exercise s�.all have given t_me-y r_ctice the option for an additional their option shall have to p urchase, pro rata, or in such fifteen (15) day period agree on, the unsold they mutually ag- proportions as Mcmber. If the purchasir_g other Interest of the selling cQ their option to purchase the Members desire to exercise s Interest, they shall each balance of the selling Member' the their to so foifteeno give written notice of (15) Ynwet't-�in the Mcmbe- Company and the selling the sale and purchase of the eriod; and day option p days after fifteen (15) 1 Interest shall close within said notices. delivery of the last Of Mandato_ry Redemption to Comnanv: 10.3.3 No To the extent that the ��tv Redemntion Exception. D_sab__- Member shall not have been Interest Owned by the sellingand of Sections sold pursuant to the provisions Member, the option of the selling Membe-, 10.3.2 above, at the written notice of that fact to selling Member may give to shall have no obligation the Company and the Company provided that, upon the redeem such Interest; tog Member to the Company, g notice of the selling such documentation and with the Company's receipt of require, the Company shall other proof as the Company may ed by the Inte�ptlonh)�if�the be required to redeem the selling Red •selling Member ("Disability _ disabled, so 'Member shall become physically or mentally who is a part of a Member (or person that the selling trust or one of Member or who is a trustee t= thatamily may own an Interest, the owners of another e the occurrence of such to and immediately P the Company or employed by disability shall have been ially perform his or TRF) shall not be able sothe shall have been performed Y her employment duties (a - ,r as an ernplove= have oc..t _r�d) - befo~-e the di Sabi li tv shall the case may be, the company - -- as Of - he Company or TRH , n (a) Ci_ tl__. pro- , ol-+ that, li tY Rec'empt� Or_� J-Q` i `er tnj commence-enr- S:^.a+ 1 male the D_sab ) af -JS dur -ig L' 1 J O`Vll =ng memc-- (or person Lt- Piro - h e 1 V t='�'� d'_Sab' l i I, t:_ - r ^."1= 0- SUC= c_ a - - M�r�c _ or who ,� a a e a par,.. v- 4 3 %W that may own an ere Cott or one of the owners of lanother et receive from the Company Interest) shall be entitled compensation at.the normal may be, comp or such ( or TRF, as the case have been paid to the Member if the rate that shall r riot to the event of disability, and .(b) of such p the ee perso shall remain so disabled at be o'b o gated to Member the Company sn and such Member (or such sixty (60) day Period, � Redemption, make a Disability such Interest to the gated to sell shall be obl-g shall provide person) person) The Member (or such form and substance Company. in proof to the Company, of the existence written reasonably acceptable to the company, atrthe request of the disability and continuation of such andY as a condition to a from time to time, shall Company, Disability Redemption A Disability Redemption. days after the een ) ed withthe requirements close within the later co p L Ve selling Member shall have of this Section 10.3.3. of interest. Subject to 10.3.a Purchase P�- ce price of the Interest the p urchase Section 10.3.8 below, be determined in the by the selling Member shad of a deceased Member's owned same manner as the purchase price forth in Sections 10. •- interest is determined as sets In provided that, a the valuation date p determined and 10.1.5 above; above shall be deemed to bMe i n Section 10.1.a to the date that the selling above or, in in reference r Sections 10 .3 .1 or 10 .3 under to the Redemption, in reference give notice of a Disability commencement or -the event days after the of six-- ( 60) the expiration of disability, rather than the date th sellingMember,the such option of. Member, and (b) at the the Intoewe�`'tdetermined on selling Member may offer sel g rice l than a P the other Members for Section 10 1•-a above. accordance with If the Closing on Red Amotion by Com-canv• 10 . S the selling GIe:;iber� .3 Est of _ e Inter Company redeems the the cafe ccur on r a clos121g shall O � rSS:^eC�iticl :jl a:C-.; -- --- tc S ct_or_ 10.3.1 0 shall tra �_c,- ---� - - Z Inc ll i n N?emhe_ _ �� l .^te se S - r-_e Cca._ -_ - -jer _ .S LLC 19 1 r recruest) that portion of his or her Interest that shall be +sold. 10.3.E Payment and Security. At the time of the closing, the Company shall pay for said Interest and he s shall secure the unpaid .7 above ce in t (pe am manner ning s set tothe forth in Section 10.1 pany of the Interest of the deceased redemption by the Com Member) . 10 . 3 . 7 Closi nq on Purchase b Co parer Members Payment and Security. In the event the _ Yha exercise its option ll not and the other Members shall exercise their option to purchase the Interest of the sellingthe e Member, the closing on the purchase and sale of Interest shall occur in the same manner as i the ng le rtato were made pursuant to Section 10 . _ . 8 above (p the purchase by the surviving Members of the Interest of a deceased Member) . At the closing, the terminated Member shall transfer to such other Members (by delivery of such �W documents as the Company or such other Membersmay request) the Interest so purcha re records he d thereafter respective Company shall reflect in its urchased by such other amounts of the Interest SO p purchase price and the Members. The payment of the p security therefor shall be in the same (pertaining toanner as set the purchase forth in Section 10.1.8 above by the surviving Members of the Interest of a deceased -Member) . the 10 . 3 . 8 Rights of First Refusal • In a h � tMe�er (or other provisions of this Section or Ootherwise transfer, such person) seeking to sell ("Transfer") its, his or her Interest ("Transferring ht o Member"), a Transferring Member shall have the rig Trans-er ail or portion of its, his or her Interes denomir_ated in U.S. dollars for -all 1n a bona fide sale D nde:lt third Darty a -?' rode- e__ - cash cr upon terns to a= and _'ren the Manager and the Other Members n a ( 11 f g n .- 7 Tom, '^Ct YG1_i1Cal �r - -r; ng Memo: ers") a r� cht °_ -----S-e- tpllrch Se such Tnte?r,-e"s_tncprOeDCSe to RefUsal") (- Trans- ✓0 owned by the Non -Transferring Members desiring to participate in the purchase, or in any other ratio as such Non -Transferring Members shall agree among themselves) for all cash or upon terms (as applicable) at the same price and upon the same terms (as applicable), which right of first refusal shall be given and exercised as follows: The Transferring Member shall give written notice ("Right of First Refusal Notice") to the Non - Transferring Members extending the right of first refusal and include therein the fully executed and binding agreement between the Transferring Member and the bona fide independent third party buyer which satisfies in all respects the foregoing requirements. The Non -Transferring Members shall have thirty (30) days from and after receipt of the Right of First Refusal Notice within which to notify the Transferring Member of their election to purchase pursuant to the Right of First Refusal Notice ("Buy Notice"). In the event that a Buv Notice is given by the Non -Transferring Members, the Transferring Member shall sell, and the Non -Transferring Members issuing the Buy Notice shall purchase, the Sale Interest for all cash or upon terms (as applicable) in accordance with the the Right of First Refusal Notice with sixty (60) days of issuance of the Buy Notice. In the event that a Buy be Notice is not issued, the Transferring Member shall free for a period of ninety (90) days from the issuance of the Right of First Refusal Notice to conclude the sale to the bona fide independent third party buyer in .accordance with the agreement accompanying the Right of in violation First Refusal Notice. Any attempted Transfer The of this Article 10.3 shall be void and of no effect. of this Article 10.3 shall not apply to provisions transfers permitted under Section 7.3.2 above. 10 . 3 . 9 Take Along Rights . If a Transferring Member proposes; -to Transfer all or any portion of its, his or her Interest in a bona fide sale for all cash or -, independent third party, the Non- independent uDCn terms t0 a:- i Tra_isf=rri_ng Members shall have the r-g^� t0 reGL'-- i `gin ri qht shall l be exerc=sable by anv of t_^_e �lon- ( ,�1^ _ i written =nsf'errinq MemheYs Ci ZI ng � t Yan= ri nq --e-rher �.J_t_^_- 1 er..°) t0 the T_ c..._c-- r _ _ r =`iS _rCm a_^_G aff_er •n= - C_ _ e -:r _ G_ _ 51 Notice), as a condition to the Transfer, that the bona fide independent third party purchase, on the same terms and conditions and at the same price per percentage of the Interest as set forth in the proposed sale by the Transferring Member, as a part of the sale certain Interests owned by the Electing Member(s), and the percentage of Interest owned and to be sold by the Transferring Member shall be reduced accordingly. The percentage of the Interest of each Electing Member to be included in the sale to the third party shall be in the same ratio to the total percentage of Interests to be sold as the total percentage of Interests owned by such Electing Shareholders bears to the total percentage of Interests owned by the Electing Members and the Transferring Member. By way of illustration and not limitation of the foregoing, if (a) the Transferring Member shall own a 16.596 Interest, (b) the bona fide independent third party purchaser shall desire to purchase a 16.5% Interest, and (c) the Electing Members shall own -a 49.5% Interest, then the Transferring Member shall sell a 4.12516 Interest and the Electing Shareholder shall sell a 12 . 375% Interest (a . 125% each) . The fact that anv Non -Transferring Member shall have declined to exercise a Right of First Refusal shall in no way affect such Non -Transferring Member's rights under this Section 10.3.9. 10.3.10 Draa Along Richts. If Transferring Members constituting at least 67% of all Interests propose to Transfer all or any portion of their Interests in a bona fide sale for all cash or upon terms to an independent third party, the Transferring Members shall have the right ("Drag Along Right") to require (which right shall be exercisable by the Transferring Members giving written notice to the Non -Transferring Member(s) within thirty (30) dav_ s from and after delivery of the Right of First Re-usal Notice) that the Non -Transferring. Member (s) shall sell their interests to such third party on the same --s_..._., and conditions and at the same Cr-ce per Dercen-aCe _e 7-nte-'"=St as set forth in the p-c7cosed sale by the --_ ----- Members. 52 Iq ARTICLE 11 LIFE INSURANCE POLICIES 11.1 Premium pavments. If, in order to provide for a possible redemption of a deceased Member's Interest by the Company, the Company purchases one or more life insurance policies on the life of any particular Member(s) , the Company shall be the applicant, owner and beneficiary of each of such policies (unless otherwise determined by a Majority Vote of the Members) and the Company shall pay all premiums in connection therewith; provided that all life insurance policies on the lives of Members purchased by the Company shall be presumed to be for the sole purpose of redemption of deceased Members' Interest unless specifically designated in writing by the Members of the Company for another purpose (s) (for example, to protect the Company from financial loss to its business operations due to any such death) . In the event the Company shall default in connection with any such premiums, the Member shall have the right to pay such premium in default on any policy insuring his or her life before the expiration of the grace period, in which event the Company shall be indebted to the Member making such payment from the date of such payment in the amount thereof, plus interest at the rate of Wall Street Journal prime plus three percent (3%) per annum. 11.2 Policy Cancellation. The Company shall have the right to cancel any such life insurance policy but only after complying with the following procedures: 11.2.1 The Company shall give written notice to' the insured Member of the Company's intent to so . cancel the policy, and grant�Cancell tion Purchase')option at to purchase such policy- least thirty (30) days before the effective date of such cancellation ("Cancellation Notice"). 11.2.2 The insured .Member shall have the right to purchase such policy by giving written notice (,,Cancel !at ion Acceptance") to the Company of his or her ins e:'ti on to do so within thirty (30) days after the Notice. The clos;ng of the Cancellation Cancellation Notice. '-thin fifteen (15) days after shalltake place W the^ Cancellation Acceptance . I` the insured Member shal 53 fail to give the Cancellation Acceptance timely, the Company shall be free to cancel the policy. 11.3 Cancellation Purchase Price. In the event of a Cancellation Purchase, such Member shall have the right to purchase the policy by paying in cash to the Company an amount equal to: 11.3.1 The cash surrender value thereof, if any, as of the date of such sale, 11.3.2 The pro rata portion of any premiums paid prior to such date, which premiums cover a period extending beyond such date, plus 11.3.3 Any dividends or dividend accumulations which have not been taken into consideration in computing said cash surrender value, and less 11.3.4 Any policy loan, plus interest then due, on said policy or policies which has not been taken into consideration in ccmputing said cash surrender value. 11.4 Life Insurance Proceeds. Subject to Section 10.1.1 above, upon the death of a Member, the proceeds of any insurance policies owned by the Company insuring the life of the deceased Member and payable to the Company shall be collected by the Company and deposited by it in a special trust account for use in redeeming the Interest of the deceased Member. 11.5 General. Nothing is intended herein to obligate the Company to buy an insurance policy on the life of any Member. ARTICLE 12 INTEREST OF SPOUSES 12.1 ManacTement. Insofar as the Company and the Members are concerned, the Inter`st of any Member ("Marital Member") who is married shall be deemed to be one (1) Interest for voting and other "ur:.cse�, and such vote shall be made or exert Sed by t e Spouse so des'an ed bV the Ma__.al Member to the Ccmpan`l ("DeS_Cn_ated S: cuse") , a 'd r 1s Or her s_oc se shall have no Sl_C_^_ rlghtS . _nJ t__ t__ E eSlgnGl..Cd Spouse _or each cr_�-naI Me--'- snag 1 be , :CG, Cra_c, Tracy and De -bra. _n even-- o_ the 54 Incapacity of such Designated Spouse, the other spouse shall have the right to vote for the respective Member, subject to applicable laws. In the event of divorce or legal separation affecting any such marital community, the Designated Spouse status and disposition of the Interest shall be Bete= -fined in accordance with the respective separation agreement or divorce decree. 12.2 Death of Spcuse. In the event that the Designated Spouse or the spouse of the Designated Spouse shall predecease the other person while still married to such other person, the survivor alone shall be deemed to own all of the Interest in his or her name for voting and other purposes. The Designated Spouse and the spouse of a Designated Spouse shall duly implement this provision in his or her Will. 12.3 Subsequent Marriaae of Member. Any Member who marries subsequent to the execution of this Agreement shall cause such new spouse to consent to this Agreement and specifically the provisions of this Article 12, and the failure to do so shall constitute a material breach of this Agreement by such Member. ARTICLE 13 ISSUPNCE OF NEW INTERESTS AND PREEMPTIVE RIGHTS The Company may not issue any Interests in addition to those issued and outstanding as of the date of this Agreement without the prior written consent of the Members owning at least 67% of all Interests. In the event of such consent, each Member shall have the right to purchase its, his or her proportionate share of any Interests which is proposed to be issued by the Company. The :Company shall deliver a written notice to the Members of any proposed issuance of new Interests, and the preemptive rights of the Members must be exercised, if at all, in the manner and at the price prescribed by the Company within thirty (30) days after the effective date of such notice. The Company thereafter may issue any of the new Interests which are not purchased by Members exercising their rights pursuant- : to this Article 13. The maximum amount of the ne,a Interests which each Member shall have the right to purchase upon any such issuance shall be in the same rat=o as the total rce f r ereS--- held o- record by such McTLbe'_' as o- t p.e_ - taG_.. C_ nt.._ �= record date. of notice Of the proposed _ssunr.ce hears to tie z:Ctal number of Interests then issued a-d Cutsta_ld'__^_C (prior to issuance c= such new I Lerests). 55 ARTICLE 14 NON -DISCLOSURE OF PROPRIETARY INFORMATION 14.1 Scope of Proprietary Information. I n t h e course of their relationship with the Company, the Members may learn and the Company may acquire information the Company regards and shall regard in the future as Proprietary Information. "Proprietary Information" shall mean all information not in the public domain or otherwise excluded as stated below, in any form, emanating from the Company or its agents and relating to the Company or any of the services or products used in the Company Business. Proprietary Information may include, but is not limited to, all marketing strategies, financial information, research and development information, other technical information, computer software and output, designs, drawings, know-how, and other business information, or any other compilation of information whatsoever, including competition sensitive information whether written or unwritten. Any information which is expressly designated as Proprietary Information, shall be treated as Proprietary Information, but information not so expressly designated shall still be treated as Proprietary Information as long as the information falls within the definition contained in this Section 14.1. 14.2 Restriction on Use. All Proprietary Information which is furnished to or acquired by the Members or either or any of them shall be held in the strictest confidence. Unless specifically authorized in writing by the Company, Proprietary -Information shall be disclosed only to employees, agents and representatives of the Company on a need to know basis. Proprietary Information shall not be copied, duplicated, used or disclosed except in furtherance of the above described discussions. The Mer,Lers agree that they will be provided access to PrC_ ri et=ry I^FOrmatlOn Cn1�T L'DOP_ their express consent t^ a._e ..dby the terms of thil S Agreement . l _ to 'Restrict The _Orecolna '_ . 3 D.ccept� or_s - -- _ CnS or, the MC.awer ' s d_sclosu're a-d use e_ ^vrmaticn GO rc:: apc_'_/ 14 .3.1 Information divulged or used by the subject Member(s) after receiving the Company's express written consent therefor; 14.3.2 Information rightfully obtained by the subject Member(s) from a third party without restriction; or 14.3.3 Information which, at the time of receipt was in the public domain. Nothing contained herein shall be construed as consent of the Company for the Members to disclose or use Proprietary Information not covered by one or more of the aforementioned exclusions or restrictions. 14.4 Violation and Remedies. T h e M e m b e r s acknowledges that the Company will suffer irreparable damage in the event that any of the terms of this Article 15 are violated and agrees that such terms shall be enforceable through any available equitable remedies, including, without limitation, issuance of an injunction (in the same manner as described in Section 14.5) restraining the unauthorized use or disclosure of any Proprietary Information furnished to or acquired by the Members. Such enforcement shall be in addition to any other rights or remedies available to the Company under applicable law and all remedies shall be cumulative and not exclusive of any other remedy. ARTICLE 15 MISCELLANEOUS PROVISIONS 15.1 Delivery and Mailing of Notices. Any notice, demand, or communication required or permitted to be given by any provision of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered personally to the party or to an executive officer of the party to whom the same is directed or, if sent p?; registered or certified mail, postage and charges prepa'd, addressed to the Memher's and/or Company's address, as appr0^ri��` w iCh is set for_'a in this Agreement. Except as ot_^_erwise provided herein , any_ such notice S all he deemed to be (3) hu�_ness days ---__ the cafe or_ w-i I -he same was 57 deposited in a regularly maintained receptacle for the deposit of United States mail, addressed and sent as aforesaid. 15.2 Documents Books of Account, and Records. The Members or, if applicable, the Manager shall maintain and preserve at the Company's registered office, during the term of the Company, and for five (5) years thereafter, all relevant Company documents, including, without limitation, a copy of the Articles of Organization initially filed with the Arizona Corporation Commission and any Amended Articles of Organization filed thereafter, a copy of this Agreement, tocether with anv supplements, modifications or amendments hereto, any prior operating agreements no longer in effect, written agreements by a Member to make a Capital Contribution to the Company, any executed instruments of assignment, copies of the Company's federal, state and local income tax returns, reports and copies of all financial statements, minutes of every annual, special, and court -ordered meeting, any written consents obtained from Members for actions taken by Members without a meeting and a current list of the full name and last known business, residence, or mailing address of each Member and Manager, past and present. The Members or, if applicable, the Manager shall also maintain proper and complete records and books of account in which shall be entered fully and accurately all transactions and other matters relating to the Company's business in such detail and completeness as is customary and usual for businesses of the type engaged in by the Company. These documents, books, and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the Members or their duly authorized representatives, with or without cause, durinc reasonable business hours, which'shall deemed to be between the rhours of 9:00 a.m. through 5:00 p.m. (MST) Monday through Friday, and upon forty-eight (48) hours advance written notice to the Members or, if applicable, the Manager. 15.3 Computation of Time. In computing any period of time pursuant to this Agreement, the day or date Of the act, notice, event O' r E_;=' _ rrOm which t'_^_� Cie=_anated period of time beCi ns to _ 1n w_- i ncluded. The last day of: the peri cd so ccmputed W4 l l �r ccnl S 1- _S a Sun day or a leca 1 0=4--a'% -- - = Stat_ of 1 'f✓,'?_C ? event -he perlCd runs L'nt1i end _e Ca'' ,qn- 1s not a caturdav, S':nda-, Cr j3 15.4 Accounting Method and Period. The books and records of account of the Company shall be maintained in accordance with the cash or accrual method of accounting as the Manager shall determine. The Company's accounting period shall be the calendar year. 15.5 Anolication of Arizona Law and Venue. This Agreement and its appli cation and interpretation shall be governed exclusively by its terms and by the laws of the State of Arizona. In the event of a dispute and subject to Article 9 above, venue shall be located in Pima County, Arizona. 15.6 Limitation on Liability. Each Member's liability for the debts and obligations of the Company shall be limited as set forth in Section 29-651 of the Act and other applicable law. 15.7 Waiver of Action for Partition. Each Member irrevocabiv waives during the term of the Company any right that he may have to maintain any action for partition with respect to the property of the Company. r 15.8 Ministerial Changes by Manager. The Members or the Manager (if one shall be appointed) are and is hereby authorized without prior notice to, or the consent of, any Member, to amend or make other ministerial changes in this Agreement to: (a) reflect a change in the name and/or address of any Member or Manager, (b) reflect any admission of new Members or Substituted Members in accordance with this Agreement, (c) satisfy requirements contained in any opinion, directive, order, ruling, or regulation of any federal or state agency or in any federal or state statutes, or (d) make other ministerial amendments to this Agreement which do not have a material adverse effect upon the rights or interest of the Members. The Members or, if applicable, the Manager shall give written notice to all Members promptly after such amendments have been made. 15.9 Amendments. This Agreement may not be amended, in any ncn-m__--ster_al way, e:ccept with- the wri teen aa-eement o= at least 67S C_ L- 1r�er- �S. _v menCmen` to t-e Jrticies o= Orcaniza-ion If the Cna"'ged, the C^mpcn:P anMl l �i l c a=1 'eGmc^S te C --rCCCe5C.-: -�9 Organization required by the Act. The filing of Amended Articles of Organization shall be done every time the Company changes management from Members to Manager or from Manager to Members. 15.11 Construction. Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders and vice versa; and the word "person" or "party" shall include a corporation, firm, partnership, proprietorship or other form of association. 15.12 Headings. The headings in this Agreement are inserted for convenience only and are in no way intended to . describe, interpret, define, or limit the scope, extent or intent of this Agreement or any provision hereof. 15.13 Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law. 15.14 Execution of Additional Instruments. Each Member hereby agrees, for themselves, their heirs, personal representatives and assigns, to execute such other and further agreements, assurances of title, statements of interest and holdings, designations, powers of attorney and other instruments as may be reasonably required and necessary to carry out Company business, effectuate the provisions of this Agreement, or comply with. any laws, rules or regulations enforceable against the .Company. 15.15 Waivers. The failure of any party to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of this Agreement shall not prevent a subsecuent act, which would have originally constituted a violation, from having the effect of an cricinal violation. 15 . 15 Ri ahts and 'Re ned4 ems C'',: L'� __v= T .e r' gh-S and remeC_eS provided bvt:h s Acreement are cumula-_ve and t_"_e US- O- n c i g^- r d` V any par_y c_'�ai l nct C:)_ec' =e Cr wai Ve a v c._._ r_ ._- c_ remedy b _ - - tine r_aht rto use aiV 1Cr all Ct=ia_ -e eC=__ - __ ___ a^d V remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 15.17 Heirs Successors, and Assigns. Each and all of the covenants, terms, provisions and agreements herein contained shall be bir_dina upon and inure to the benefit of the parties hereto and, to the extent permitted by this Agreement, their respective heirs, lecal recresentatives, successors and assigns. 15.18 Creditors. None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company. 15.19 Counter -carts.. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. 15.20 intearation. This Agreement constitutes the entire acrreement between and reflects the reasonable expectations of the parties pertaining to the subject matter hereof. All prior and contemporaneous agreements, representations and understandings of the parties, oral or written, are hereby superseded and merged herein. No change or addition_ is to be made to this Agreement except by a written agreement executed by all of the parties. ARTICLE 16 ATTORNEY'S DISCLOSURE The Members and Manager each acknowledge that Company's counsel, David A. McEvoy -of McEvoy, Daniels & Darcy, P.C., who has represented the interests of the Manager and some or all of the Members or entities in which the Members (including Reay's Ranch Markets, Inc.) have or had an interest concerning matters unrelated to this Agreement, prepared this Agreement and related documents on behalf of and in the course of his continuing representation of Company, as directed -by the Manager on behalf of the Company, and that. 15.1 SuCL NL��V3CE?, ML:IEI.. ?` CC` "PAY-1 ==� =E=�i `WISED THAT A CONFLICT OF IVT=R=S' M7,y -zX S T 7Z77W=7V H7S OR ITS T TERESTS AL T HOSE OF COMP?y r A�-O T= Z 16.2 SUCH MEMBERS, MANAGER AND COMPANY HAVE BEEN ADVISED BY COMPANY'S COUNSEL THAT THIS AGREEMENT MAY HAVE TAX CONSEQUENCES. 16.3 SUCH MEMBER, MANAGER AND COMPANY HAVE RECEIVED NO REPRESENTATIONS FROM COMPANY'S COUNSEL, AND SUCH COUNSEL HAS GIVEN NO ADVICE, ABOUT THE TAX CONSEQUENCES OR SECURITIES LAWS CONSEQUENCES OF THIS AGREEMENT AND OTHER ORGANIZATIONAL DOCUMENTS FOR THE COMPANY. 106.4 SUCH MEMBER, MANAGER AND COMPANY HAVE BEEN ADVISED BY CCMPANY'S COUNSEL TO SEEK THE ADVICE OF INDEPENDENT COUNSEL WITH RESPECT TO ALL. ASPECTS OF THIS AGREEMENT INCLUDING WITHOUT LIMITATION TAX AND SECURITIES LAWS CONSEQUENCES. 16.5 SUCH MEMBER, MANAGER AND COMPANY HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT COUNSEL. 16.6 MANAGER ACKNOWLEDGES SUCH COUNSEL'S PAST REPRESENTATION OF IT, AND CONSENTS TO HIS REPRESENTING COMPANY IN THIS MATTER AND RELATED MATTERS. . ARTICLE 17 SECURITIES LAWS Each Member agrees, represents, warrants and acknowledces as follows: 17.1 EACH MEMBER WHO IS A NATURAL PERSON REPRESENTS THAT HE OR SHE IS OVER THE AGE OF TWENTY-ONE (21) YEARS, AND IS A CITIZEN OF THE UNTIED STATES OF AMERICA. 17.2 HE AND/OR IT RECOGNIZES THAT SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED ("ACT"), EXEMPTS THE ISSUE AND SALE OF SECURITIES FROM REGISTRATION UNDER THE ACT IN TRANSACTIONS NOT INVOLVING ANY PUBLIC OFFERING, AND HE AND/OR IT IS ACQUIRING AN INTEREST IN THE COMPANY_ FOR HIS AND/OR ITS OWN ACCOUNT FOR PURPOSES OF INITESTMENT, AND NOT FOR RESALE OR TRANSFER. 17.3 HE, SHE AND/OR IT HAS HAD ACCESS TO AND N?S REV7- ED TO '7 S, HER AND/OR ITS SATISFACTION THE MATERIAL AND D .FINN_CIAL AND OTHER RELEVANT INFORMATION. ABOUT COMPANY BUSINESS TO MAKE AN INFORMED IL TT ESTMENT DECISION PRIOR TO MAKING A CAPITA- OR S=G�,IING THIS AGREEMENT. HE SHE AND/OR I_ I., FiLIY r?M7L-.: o 62 COMPANY'S BUSINESS AND WITH THE PROPOSED USE OF THE PROCEEDS OF CAPITAL CONTRIBUTIONS AND LOANS THAT MAY BE OBTAINED BY COMPANY. 17.4 HE, SHE AND/OR IT IS A SOPHISTICATED INVESTOR, THE NATURE P1'�ID AMOUNT OF THE CAPITAL, CONTRIBUTIONS HE AND/OR IT AGREES TO M.AiCE HEREUNDER ARE CONSISTENT WITH HIS AND/OR ITS INVESTMENT PROGRAM, HE, SHE AND/OR IT UNDERSTANDS THAT COMPANY IS PROPOSING A START-UP BUSINESS AND THERE IS A RISK THAT HE, SHE AND/OR IT COULD EXPERIENCE A LOSS OF HIS, HER AND/OR ITS ENTIRE INVESTMENT IN COMPANY. 17.5 HE, SHE AND/OR IT IS CAPABLE OF EVALUATING THE MERITS AND RISKS OF THE TRANSACTION, AND IS FINANCIALLY ABLE TO BEAR SUCH RISKS. 17.6 HIS, HER AND/OR ITS INTEREST IN THE COMPANY HAS NOT BEEN REGISTERED UNDER APPLICABLE STATE OR FEDERAL SECURITIES LAWS AND, SUBJECT TO THE OTHER RESTRICTIONS ON SALES OR TRANSFERS OF INTERESTS AS SET FORTH IN THIS AGREEMENT, HE, SHE AND/OR IT CANNOT RESELL OR TRANSFER SUCH INTEREST OR ANY PORTION THEREOF UNLESS THE INTEREST IS REGISTERED OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 17.7 THE MANAGER AND THE MEMBERS BELIEVE THAT NO REGISTRATION OR OTHER REPORTS ARE REQUIRED TO BE FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES DIVISIONS OF THE ARIZONA CORPORATION COMMISSION WITH RESPECT TO THE FORMATION OF THIS COMPANY, AND EACH MEMBER AND MANAGER, AGREES THAT HE, SHE PND IT WILL INDEMNIFY AND HOLD HARMLESS EACH OTHER MEMBER, MANAGER AND COUNSEL (WHO SHALL BE DEEMED TO BE THIRD PARTY BENEFICIARIES UNDER THIS AGREEMENT FOR THAT PURPOSE) FROM AND AGAINST ANY SECURITIES LAW VIOLATION, TAX CONSEQUENCE OR ANY CLAIM RELATING THERETO, TO THE MAXIMUM EXTENT PERMITTED BY LAW. Dated effective as of the date first above written. jrj_- BERS 'Gordon M. Reay .J 63 Loi L. Reay Richard A. Couch Janet M. Couch Rod Herbert Susan Coll tt Tracy Colrett Debra Edmcnscn Neil Ecmcnson 64 Cm MANAGER: T=:URLAND RAY FAMILY INVESTMENT COMP. an Arizona co oration By Ua�� Cwl Gordon M. Reay, Pres; ent COMPANY: REAY'S RANCH INVESTORS L.L.C., an Arizona limited liability company By THURLAND REAY FAMILY INVESTMENT COMPANY, an Arizona corporation, Manage By v�vyL� 65 Gordon M . Reay, (Pies Zent MEMBERS OF REAY'S R:SN'C`D INVESTORS, L.L.C. i003 SU Q 3. 3 NAME OWNERSHIP OWNERSHIP TOTAL ADDRESS Gordon Rea"y� 8.75% 12115 East Speedway Blvd. Lois Reayd�. 8.75% Tucson, Arizona 85749 17.50% Herbert .Rod 8.25% 11001 East Calle Vaqueros Diane Herbert 8.25% Tucson, Arizona 85749 16.50% Craig ReayN 8.25% 13085 East Placita Remuda Karen Reay�- 8.25% Tucson, Arizona 85749 16.50% Tracy Collett 8.25% 12901 E. Camino Remuda Susan Collet 8.25% Tucson, Arizona 85749 16.50% Debra Edmonson�r- 8.25% 6621 North Mesa View Drive Neil Edmonson-\�- 8.25% Tucson, Arizona 85718 16.50% Richard Couch 8.25% 11400 East Andalusian Place Janet Couch 8.25% Tucson, Arizona 85748 16.50% 100.00% ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington Sth Floor 400 W Congress #150Tucson AZ 85701-1352 Phoenix AZ 85007-2934 0 (602) 542-5141 QUESTIONNAIRE (520) 628-6595 IAL SECURITY AND BIRTHDATE INFORMATION IS CONFIDENTIAL BY AND CANNOT BE DISSEMINATED. TO THE PUBLIC Read Carefully, this instrument is a-si. r ocn nerd Type or print with black ink u�� An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR. THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. ,.Y7 g There is a $24.00 processing fee for each fm>reWrint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) is currently licensed) 1. Check _ Downer ❑Partner []Stockholder ❑Member ❑Officer ® Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box —110- Licensee or A ent must complete # 25 for a Manager Licensee or A ent must complete # 25 2. Name: Herbert Rodney S Date of Birth: 1/22/53 Last First Middle (This Will Not Become a Part of Public Records) 3. Social Security Number: 566941626 Drivers License #: B 10 9 3 7 7 0 8 State: Arizona (This Will Not Become a Part of Public Records) 4. Place of Birth: Alhambra CA U S A Height: 5' 7" Weight: 18 0 Eyes: B r n Hair: B r n City State Country it Marital Status ❑ Single ® Married ❑ Divorced ❑ Widowed Residence (Home) Phone: 5( 20 ) 749 _ 9250 6. Name of Current or Most Recent Spouse: Herbert Diane R e a y Date of Birth: 9 / 1 1 / 5 7 (List all for last 5 years - Use additional sheet if necessary) Last First Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 1979 8 Telephone number to contact you during business hours for any questions regarding this document. (-5 2 0) 298 _ 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone: ( 480) 837 _2444 11. licensed Premises Address: 17125 EAST SHEA BLVD FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County Tap 12_ T.ist vonr emnlnvment or tune. of hnsiness dtnina the nost five (5) vears_ if nnemnloved nnrt of the timP list thnsP (inters T.ict mnct rnrant 1Qt FROM Month/Year TO Month/Year ' DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 5/79 ANT Office Manager TRF Investment Co 6565 E. Grant Road Tucson. AZ 85715 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Tndicate vour residence address for the last five (5) vears: FROM Month/Year TO Mouth/Year RESIDENCE Street Address City State Zip 10/88 CURRENT 11001 E. Calle Vaqueros Tucson AZ 85749 IA — Ulul l:JLUW insavieu mulvlQuaib requiring NVeLia1 acL:U111111UUa11U11J t/1CUbC Loll (WGJ JVLrYVL/ If you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating U YES ENO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained, cited, arrested, indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related. 16. Have you EVER been convicted, fined, posted bond, been ordered to deposit bail, imprisoned had sentence suspended, placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffw violations, include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE rejected denied revoked suspended or fined in this or any other state? 19. Has anyone EVER filed suit or obtained a judgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business, professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person , been an officer, member, director, or manager on any other linuor license in this or any other state? ❑ YES IN NO ❑ YES qNO ❑ YES 25 NO 13 YES ❑ NO ❑ YES U(NO AYES ❑ lsi0 9 If any answer to Questions 15 through 20 is "YES" YOU MUST attach a si_zned statement giving complete details. - Please be sure to include dates, aizencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Rodney S . Herbert , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this ques 'onnaire and the contents and all statements are true, correct and complete. State of Arizona County of Pima K The forego' strument was acknowledged before me this c i� �0 `-' OFFICIAL SEAL day of AMY JO GRANT Y NOTARY PUBLIC - STATE OF ARIZONA Y Mo ear OUNTY My commission expires on: — , s Dec.14, 2005 Day of Month Month Year (Si e of N ARY PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPR&INdA MANAGER APPLICATION Licensee or Agent Approval of Manager 25. I, (Print Licensee/Agent's Name): Last Middle Fust Hereby authorize the applicant to act as manager for the named liquor license. State of County of The foregoing instrument was acknowledged before me this X day of (Signature of LICENSEEIAGENT) Day of Month Mooch Ye My commission expires on: Day of Month Month Year (Signature of NOTARY PUBLIC) OL LC QUESTIONNAIRE QUESTION #18 3; 3 I�q3 SE[ - I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart 4756, Sierra Vista 03/01 /00 Minit Market # 17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market 417, Golder Ranch Dr., Tucson 10/24/97 Minit Market 415, 105 E. Hwy 70, Safford 10/24/97 Minit Market 414, 750 8th Ave., Safford 10/24/97 Minit Market 44, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale RodHerb3aerftt liquor violation notices OLLC QUESTIONNAIRE QUESTION 420 193 SEA' -$ P 3. 3 The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson Rod Herbert is currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, and an agent and shareholder of Reay's Ranch Investors, LLC 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, �r 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10023076, 10103314, 10043024 and a Supervisor/Manager of Thurland Reay Family Investment Co for liquor license numbers 10110047, 10110045, 10073280, 10103072, 10051009, 10100013, 10110062, 10020036, 10020037, 09110053, 10100286, 10051004, 10051005, 10103063. I was the Supervisor/Manager of Thurland Reay Family Investment Co for liquor license number 09100001; this license was sold on 1/9/01; an agent for license number 10103215 which was surrendered to the state on 1/23/02 and license number 09040032 which was sold on 6/28/02. I was a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10123026; closed for business on 8/15/02 and license numbers 10103141 and 10103143; business sold on 8/6/02. li, -L'::::� �� kodney-flerbefti"O liquor shareholders Question 20 G) - N (P _ >. -ic, �n cm Cl) n N m C) _ Z ma' oDD -I nD�WDT� Or r0 cnN cn �NND m m rG7 A.w o �.0 N�=p m� N �° .Z - m c~a� �m0�� a T m N cn -< * �. N N W D A r Im 0 coZ (n �G7p CnK C D:L7AmN (n �zco x o O-<oCCi)ni0 � com o A.mDODG �<o0 ca < m > D m 0 w m D-n D 2 0X r* N Z X r D N w m rW W co rr co w G� c Cn m rn 3 r A Cn v ti m (P M> am m m mof m -< co W N -< Zo w. A Om N fn N N m o V o N Ow0 �N00 N N C ) � w G) DC cn r n mn �_ Cn mo C)m� -�D �p0cJn Z -im ,iA W Z �� T� p� Z o— z D=t N� -� �rDwmW -i D DDiDcCo DDxrv- u>� -OX�ZO (�ZN�D2 D nZcn �coNC,D. Dmm I r- D m� rG�cacooQ,mm� o v;cwr,m-4 �Ouwci0ONmC�-00�;70c, ZOwp W �t Oz� cD0 rn� � _ c Dm Nm w r - w O O ZJ (n p * W _* w r- rn N m o < m w O N N w: D O41. 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Type or print with black ink An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER STOCKHOLDER (10% OR MORE), MEMBER OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEFT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THEDEPARTMENT OF I-1QUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE- ly? 6' (f' 6( . There is a $24.00 psi rocesng fee for each fingerprint card submitted. Liquor icense # (If the location is currently licensed) A service fee of $25.00 will be charged for all dishonored checks (AILS. 44.6852) 1. Check ❑Owner ❑Partner ❑Stockholder ®Member ❑Officer ❑ Agent E]Manager(Only) (Complete Questions 1-20 & ) (Complete All Questions except # 14,14a & 25) appropriate El Other T ira-caa nr A aunt mimt rmm�lete # 25 box —0- Licensee or Agent must com 2. Name: Herbert Diane Last Fast Date of Birth: 9/ 1 1/ 5 7 Middle (This Will Not Become a Part of Public Records) 527 27 1224 Drivers License#: B 12 7 6 2 4 4 4 3 . Social Security Number. (This Will No Become a Part of Public Records) State: Arizona 4 . Place of Birth: Tucson AZ USA Height: 513" Weight 110 Eyes: Bluglaii- Brown City S= Country Marital Status ❑ Single © Married ❑ Divorced ❑Widowed Residence (Home) Phone: ( 5 2 0) 749 - 9250 6. Name of Current or Most Recent Spouse: Herbert Rodney Scott of Birth: 1 / 2 2 / 5 3 (List all for last 5 years - Use additional sheet if necessary) Lit First Muddle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency. 9 / 11 / 5 7 8 Telephone number to contact you during business hours for any questions reaardin; this document. (5 2 0 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone: ( 480 ) 837 - 2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box # City County Zip 12. 'st your em lovment or of business during the past five () years, if unem loved art of the time, list those dates. List most recent 1st. FROM TO DESCRIBE POSITION E •1PL07�ER'S-NAi�iE OR NAl`IE OF BUSINESS __ OR BUSINESS (Give street address, Cary, state &zip) 1988 CURR 17 Housewife 11001 E. Cable Vaqueros Tucson, AZ 85749 ATTACH ADDMONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Indicate your residence address for the last five (5) vears: FRO1I TO I RESIDENCE Mnnth/V' qr NlonftYear Stre t Address 10/88 I cLT2RE,-r 111001 E. Calle Vaqueros Tucson AZ 185749 If you checked the Manager box on the front of this form sldp to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating YES 0 the licensed premises ? If you answered YES, how many hrs/day? answer #14a below. If NO, slip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ElYES ElNO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. t ). nave you r, v Lx been aetmned cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug relaxed 16. Have you EVER been convicted ffned hosted bond been ordered to deposit bail imprisoned had sentence suspended. placed on probation or parole for violation of A-1W law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING aVfainst you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquorA_PPLICATION OR LICENSE reieeted denied revoked suspended or ned in this or any other state? 19. Has anvone EVER filed suit or obtained a iudament aeainst you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person , been an officer, member, director, or manager on anv other liquor license in this or any other state? ❑ YES 13 NO ❑ YES El NO M YES t1 NO ❑ YES El NO OYES ❑ `Nn If any answer to Questions I5 through 20 is "YES" YOUMUST attach a signed statementgiving complete details. Please be sure to include dates, azencies involved and dispositions - it you cneckea the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and ao to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 ears? r y (Must provide proof) ❑YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If `yes", attach a copy of such agreement 24. I, Diane Herbert hereby declare that I am the APPLIC ANT Ellin or thls quesuonnwre. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. ire " - 1 OFFICIAL SEAL % AMY JO GRANT M � = NOTARY PUBLIC -STATE OF ARIZONA PIMA COUNTY res Dec. 14, 2005 My commission expires on: - Day of Month Month Year State of Arizona Countyof Pima The foreg�g instrument was acknowledged before me this FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPF Licensee or Agent Approval of Man aer 25. I, (Print Licensee/Agent`s Name): 1.3st Vtrddle Hereby authorize the applicant to act as manager for the named liquor license. tSi- ape of LICEINSEE/AGE`T My commission expires Day of Month `tonth Year oXTARY all ' Y oUBLIC) 1G A MANAGER APPLICATION First State of Countyof The foregoing instrument was acknowledged before me this day of Day of Mooch Mmy (Si,nanse of NOTARY PUBLIC) Y= 01 �C QUESTIONNAIRE QUESTION 418 Jp�3 SEA' - S P I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market 915, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8th Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale Diane Herbert liquor violation notices QLLC QUESTIONNAIRE QUESTION AR"-? - g P 3. 38 LUvi The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, tow 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. N I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; business closed on 8/15/02 and license numbers 10103141 and 10103143; businesses sold on 8/06/02. iane Herbert liquor shareholders Question 20 OCY)G � �� O o rm m _ Cl) �_ mO C)m -n -4N ��. cN �n Cm n-iDX�OcJn Z -immy� ma Z ��m p�Z Xcnnc O<> m�()I> n�X.oCf) >> co C) � DDXN:m�� m�XmZ N�Oz- . �� wOZ� go �� C)�OZ� p CD°'NN=> �zcaCDN� DmpoN frTl �a,Ij z O mO D`3t O wD m to A <.� 7 U,CD m r Q70°�m NNNOrm �; NNO Cn r wacn'aNz m . 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D N m m D Nn j m X n ZDD ND N m VCf) cai n �S D N x �� D < Nm n Cb- SO D m O Dwco> 0 DCo 517r-D�zt D �m; jUl j a�w��Nrn ai can o Z cn � � W Ul Q) ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 QUESTIONNAIRE (520) 628-6595 ,L SECURITY AND BIRTHDAT52400RMATION IS CONFIDENTIAL 8 AND CANNOT BE DISSEMINATED TO THE PUBLIC Read Carefully, this instrumerif i§ i'_sworn`document' Type or print with black ink An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPE FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. P / 0 < `�� 3 There is a $24.00 processing fee for each fingerprint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (AILS. 44.6852) 01/ 3 l / n (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder X❑Member ❑Officer El Agent C (�/ ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box —00- Licensee or A ent must complete # 25 for a Manager Licensee or Agent must complete # 25 2. Name: Rea r Craig Last Fast Miles Middle 3. Social Security Number: 526 08 6170 Drivers License #. D 015 22050 (This Will Not Become a Part of Public Records) 4 . Placeof Birth: Tucson AZ USA City State Country Date of Birth: 1 / 14 / 5 5 (This ,Will Not Become a Part of Public Records) State: Arizona Height: 6' 0" Weight 160 Eyes: Blue Hair: Brown Marital Status ❑ Single ® Married ❑ Divorced ❑ Widowed Residence (Home) Phone: (5 � 749 6. Name of Current or Most Recent Spouse: R ea y Karen Marie G a h n Date of Birth: - (List all for last 5 years - Use additional sheet if necessary) Last Fast Middle Maiden 7. You are a bona fide resident of what state? Arizona 6900 7/q/5q If Arizona, date of residency: 1 / 14 / 5 5 8 Telephone number to contact you during business hours for any questions regarding this document. ( 5 Z 0 ) 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone: ( 480 ) 837 - 2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD FOUNTAIN HILLS MARICOPA 85268 (� % Street Address (Do not use PO Box #) City County Zip � 121'List Your emDlovment or type of business during the past five (5) years, if unemployed part of the time, list those dates. List most recent 1st FROM Month/Year TO Month/Year DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 1978 Supervisor TRFIE V Grant Road Tucson. AZ 85715 6565 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Indicate vour residence address for the last five (5) Years: FROM Month/Year TO Month/Year RESIDENCE Street Address city State zip 8/95 CURRENT 13085 E. Placita Remuda Tucson AZ 85749 L11, ULUi i1i6000 lllsawea mnlvinnals requiring specla-CUUMMUMIU10 PlUXIC kill kUU4) 04G-7VL/ box on the front of this 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an e: 15. Have you EVER been detained, cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or druz related 16. Have you EVER been convLted fined posted bond been ordered to deposit bail, imprisoned, had sentence suspended. placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE rejected, denied revoked, suspended or Lined in this or any other state? 19. Has anyone EVER filed suit or obtained a judgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person, been an officer, member, director, or manacer on any other liquor license in this or any other state? L.1 YES L)3NO ❑ YES ❑ NO sting license. ❑ YES ZKNO ❑ YES ® NO ❑ YES Rl NO El YES ❑ NO ❑ YES El NO 81 YES ❑ NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates, agencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Mang er Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. 1, Craig M . R e a y , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: State of Arizona _C, TW reaoing instrument was of Pima )wledoed before me this OFFICIAL SEAL day of• AMY JO GRANT NOTARY PUBLIC - STATE OF ARIZONA Day afMomh Momh Year (MY COmI E11�11 sec 14, 2005 J w z Day of Month Month Year of NOTARY PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPROVING A MANAGER APPLICATION Licensee or Agent Approval of Manager 25. I, rint Licensee/Agent's Name): Last Middle Hereby authorize the applicant to act as manager for the named liquor license. (Signature of LICENSEEIAGENI) My commission expires on: Day of Month Month Year First State of County of The foregoing instrument was acknowledged before me this day of Day of Month Month (Signature of NOTARY PUBLIC) Year DLLC QUESTIONNAIRE QUESTION #18 N3 SEp - 8 P 3` 3 I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #14, 750 8th Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale Craig Reay liquor violation notices OL -c QUESTIONNAIRE QUESTION #20 p 3. 38 IVSEA - 8 The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, �r 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. 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CA j w CT Cr W 9 K ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington SthFloor 400 W Congress #150 Tucson AZ 85701-1352 Phoenix AZ 85007-2934 4- (602) 542-5141 QUESTIONNAIRE (520) 628-6595 SOCIAL SECURITY AND BIRTH DATE'ANFORMATION IS CONFIDENTIAL BY LAW AND CANNOT BE DISSEMINATED TO THE PUBLIC An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BYTBFADEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. There is a $24.00 processing fee for each fingerprint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (AJLS. 44.6852) G0 / 31 / (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder ©Member ❑Officer}Agent({ ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions ercent # 14,14a & 25) box —® Licensee or A ent must complete # 25 for a Manager Licensee or A ent must com fete # 25 2. Name: Reay Karen Marie DateofBirth: 7/9/59 Last Fust Middle (This Will Not Become a Part of Public Records) 3. Social Security Number: 526 55 8033 Drivers License #: D 0 0 0 0 0 7 6 8 State: Arizona (This Will Not Become a Part of Public Records) 4 . Place of Birth: Tucson AZ USA Height: 5' 6 " Weight 112 Eyes: B I u eHair: B Ion de City State Country 5. Marital Status ❑ Single [E Married ❑ Divorced ❑ Widowed Residence (Home) Phone: 5( 2 0 ) 749 - 6900 Name of Current or Most Recent Spouse: Reay Craig Miles Date of Birth: 1 / 14 / 5 5 (List all for last 5 years - Use additional sheet if necessary) Last First Middle Maiden You are a bona fide resident of what state? Arizona If Arizona, date of residency: 7 / 9 / 5 9 8 Telephone number to contact you during business hours for any questions regarding this document. 5( 2 0 ) 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises:. TEXACO STAR MART #773 Premises Phone:( 480) 837 - 2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County zip 12. List your employment or of business during the past five (5) years, if unemployed part of the time, list those dates. List most recent 1st. FROM. Month/Year I TO Montb/Year DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 8/95 CURRENT Housewife 13085 E. Placita Remuda Tucson, AZ ATTACH ADDMONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Indicate your residence address for the last five (5) years: FROM Mmth/Year TO MonflNear RESIDENCE Street Address city State Zip 8/95 CURRENT 13085 E. Placita Remuda Tucson AZ 85749 LIC 0101 12/2000 Disabled individuals requiring special accommodations please call (602) 542-9027 174 f you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating YES EINO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited, arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 16. Have you EVER been convictedfined posted bond been ordered to deposit bai4 imprisoned had sentence suspended placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE reiected denied, revoked suspended or fined in this or any other state? 19. Has anyone EVER filed suit or obtained a judgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling_ person, been an officer, member, director, or manager on any other liquor license in this or any other state? ❑ YES 1 f NO ❑ YES El NO ❑ YES ZYNO M YES Q NO e ❑ YES b NO $1 YES 1--] NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates agencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others slip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NON If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YFS ❑ NO If "yes", attach a copy of such agreement 24. I, Karen Marie Rea hereby declare that I am the APPLICANT filing this questionnaire. (Print full nay of Applicant) I have read this questionnaire an the contents and all statements are true, correct and complete. -- OFFICIAL SEAL AMY JO GRANT NOTARY PUBLIC - STATE OF ARIZONA _ A U NTY My commission expires on: M s De'54, 2005 Day of Month Month Year Stateof Ar'zona County of Pima x nstrument was acknowledged before meet�this / /" Mowh i YM of NOTARY PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPROVING A MANAGER APPLICATION Licensee or AI?ent Approval of Manager 25. I, Trint Licensee/Agent's Name): Last Hereby authorize the applicant to act as manager for the named liquor license. (Signature of LICENSEE/AGENT) My conunission expires on: Day of Month Month Year Middle First State of County of The foregoing instrument was acknowledged before me this day of , Day c'Month Mooch (Signature of NOTARY PUBLIC) Year ®LLC QUESTIONNAIRE QUESTION 918 1M SEP - H P 3' 3 H I am aware of the following violations that Minit Markets and Texaco Star Mart have been cited for. All violations were due to employees of Minit Markets and Texaco Star Mart failing to request ID and sold alcohol to underage persons. Minit Markets and Texaco Star Mart were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market # 17, Golder Ranch Dr., Tucson 10/24/97 Minit Market 415, 105 E. Hwy 70, Safford 10/24/97 Minit Market #14, 750 Bch Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee Karen Reay liquor violation notices OLLC QUESTIONNAIRE QUESTION #20 Zb�3 SEP _ 8 p 3: 38 I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; business closed on 8/15/02 and license numbers 10 103 141 and 10 103 143; businesses sold on 8/06/02. 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N C) mw �(mo mJ AM om ai 7 y N N ---� � rn 0 �, G) Cl) z D N� -' m al z D Cn m Ny j { a am D O G o, w� co D N Nx 0 < CA O vim' 0DDcoco- =O D m Dw :)>m0 ;rl � r m'�' j chi, V Q' rm- w Co N m 4 cn C) a, cn (71 C)N 6) r w (A cn Cn lA 9 91 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 400 W Congress #150 800 W Washington 5th Floor Tucson AZ 85701-1352 Phoenix AZ 85007-2934 (520)628-6595 (602) 542-5141 QUESTIONNAIRE SOCIAL SECURITY AND BIRTHDATE INFORMATION IS CONFIDENTIAL BY LAW AND CANNOT BE DISSEMI A-TEb TO THE PUBLIC Read Carefully, this instrument is a sworn docu�-m`��entC, Ty print with black ink An extensive investigation of your background wddQ cetrdu&& Valas or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER. ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR. THE DEPARTMENT DOES NOT PROVIDE THUS SERVICE. m (I Pi DD a SV (e There is a $24.00 nrocessin2 fee for each fingerprint card submitted. Liquor License # A service fee of $2 .00 will be charged for all dishonored checks (A-R.S. 44.6852) t11 LW 104anon u cw euuy �,. �., Mx b ❑Officer ❑ A((11e(nt ❑ Manager(Only) 1. Check ❑Owner ❑Partner ❑Stockholder Mem er g (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) appropriate ❑Other box --0-Licensee or A ent must complete # 25 for a Mana er Licensee or A ent must complete # 25 2. Name: Collett Tracy Lynn Date of Birth: 3/20/63 Last First Meddleiddle (This Will Not Become a Part of Public Records) 3. Social Security Number. 520 68 3172 Drivers License #: D 0 2 8 2 8 6 2 9 State: Arizona (This will Not Become a Part of Public Records) 4. Place of Birth: Vernal UT USA Height: 6' 1" Weight: 2 0 0 Eyes: B l u el -lair: B r n City State Country Marital Status E]Single E]Married ❑ Divorced ❑ Widowed Residence (Home) Phone: 5( 2 0) 749 - 1727 6. Name of Current or Most Recent Spouse: Collett Susan Reay DateofBirth: 6/21 /60 (List all for last 5 years - Use additional sheet if necessary) Last Fast Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 11/88 8 Telephone number to contact you during business hours for any questions regarding this document. (5 2 0O 2 9 8 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone: (480 1 837 -2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County _ Zip _ .,, --t of rho t;n,a l;ct thnse Antes fist most recent 1st. 12. List our em 10 ent or TO a 01 DUJIDCSJ UUL1u uic a�•� •� . DESCRIBE POSITION - -- — -- EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) FROM Mottth/Year Month/Year OR BUSINESS District Supervisor T 5 6 I v e rant tR�o 6565 �. Grant Tucson, AZ 85715 8/97 CURRENT Reay s Ranch Markets Inc 8/93 8/97 Store Supervisor 6565 E. Grant Road Tucson, AZ 85715 F. ATTACH ADDITIONAL SKEET IF NECESSARY FOR EIT EER SECTION y Indicate our residence actoress TO Monrli/Year CURRENT for me 1dJt 11vn t->> YvaL3. RESIDENCE Sneet Address 12901 E. Camino Remu,da Ci Tucson Stare AZ Ta 85749 FROM Month/Year 8/02 10/95 8/02 8737 E. Bear Paw Place Tucson AZ 85749 — _..,,.,, ;..a;.,;a., ..,. r—,,i, i I. ciwcinl accommodations please call (602) 542-9027 LA%- V1VL 14ILv,n/ checked the Manager box on the front of this form skip to # 15 14 an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating El YES ONO the licensed premises ? If you answered YES, how many hrs/day? answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained, cited arresteit indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drue related. 16. Have you EVER been convicted, fined, posted bond been ordered to deposit bail, imprisoned had sentence suspended, placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE reiected denied revoked suspended or -flned in this or any other state? 19. Has anyone EVER filed suit or obtained a iudgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controllifIR Mrson , been an officer, member, director, or manager on any other liquor license in this or any other state? ❑ YES 2x NO ❑ YES 13 NO ❑ YES ® NO El YES ❑ NO ❑ YES IN NO El YES ❑ Nd If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details. Please be sure to include dates, agencies involved and dispositions - If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NC If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Tracy L. Collett hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: (Signanse of Applicant) Day OFFICIAL SEAL AMY JO GRANT iY PUBLIC - STATE OF ARIZONA Mires Mpugs Dec. 14, 2005 x ear State of Arizona Countyof Pima The fore ' g instrument was acknowledged before me this CK day of 3,00 D Momh %1 m— / Year FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPI Licensee or Agent Annroval of Manager 25. I, Print Licensee/Agent's Name): Last MiMe Hereby authorize the applicant to act as manager for the named liquor license. (Signanue of LICENSEE/AGENI) My commission expires Day of Month Month Year JOTARY PUBLIC) ' A MANAGER APPLICATION First State of County of The foregoing instrument was acknowledged before me this day of Day of Momh M0,h (Signatum of NOTARY PUBLIC) Year OLIC QUESTIONNAIRE QUESTION 918 1��3 SEP - 8 p 3= 3 8 I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market # 17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8t' Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale TRAO CO LETT liquor violation notices Iq QUESTIONNAIRE QUESTION 420 DLLC J0�j SEA' - 8 P Tracy Collett is currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10023076, 101033414, 10043024 and a Supervisor/Manager of Thurland Reay Family Investment Co for liquor license numbers 10110047, 10110045, 10073280, 10103072, 10051009, 10100013, 10110062, 10020036, 10020037, 09110053, 10100286, 10051004, 10051005, 10103063. I was the Supervisor/Manager of Thurland Reay Family Investment Co for liquor license number 09100001; this license was sold on 1/9/01 and for license number 10103215 which was surrendered to the state on 1/23/02 and license number 09040032 which was sold on 6/28/02. I was a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10123026; closed for business on 8/15/02 and license numbers 10 103 141 and 10 103 143; business sold on 8/6/02. Tr4ey Collett liquor shareholders Question 20 .L0) co G) o T1 Cn 0 C� m tt N C roil Z D my Q cJr Z m A co .� Z co ;o m co Z D cn 0 o� CO CN Xn 0 � X� p -rt m -Iz OD-i XN�,o G)D ncNn DSTy m00 �� r=XN:mm mpXCO- cnoOzD �r CO Cl) D n�Xo r z DD^�o�C7 DD Cn� rr 1 p N z coo 4o A Op C�z M. 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D N � DNC-'m a m=- n .T7 �ZT'�>4 D OX C)X �� A �m :� D ,�<- X p -<" w- (f) D a D w cow S O co D w coD m:O � r j w > :tt m z w �N -4 > m m CoD -4 X W o M U, v -i CO N cn r- w — co cc a) * cn o N z cn M * c� w U CA 9 9 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL • 800 W Washington Sth Floor 400 W Congress #150 Tucson Phoenix AZ 85007-2934 85701-1352 (602) 542-5141 QUESTIONNAIRE (s20) 62s 659s I`` SOCIAL SECURITY AND BIRTHDATE INFORMATION IS CONFIDENTIAL E AND CANNOT BE DISSEMINAttbtO THE PUBLIC Read Carefully, this instrument is a sworn document. Type or print with black ink An extensive investigation of your background will bYGnafi tc+d$FaR oEjn9) plete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER. ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. )01 b0 e q,? 9 There is a $24.00 processing fee for each fingerprint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (AJLS. 44.6852) Y61 , /� (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder ©Member ❑Officer!❑ Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions exce t # 14,14a & 25) box —11110. Licensee or Agent must complete # 25 for a Manes er Licensee or A ent must complete # 25 ()Name: Collett Last 0 Susan R Date of Birth: 6 / 21 / 6 0 First Middle (This Will Not Become a Part of Public Records) 3. Social Security Number. 526 73 8498 Drivers License #: B 13 7 2 0 0 9 5 State: Arizona (This Will Not Become a Part of Public Records) 4 . Place of Birth: Tucson AZ USA Height:. 5' 3 " Weight: 120 Eyes: G r e e rHair: Blonde City stag Country Marital Status ❑ Single © Married ❑ Divorced ❑ Widowed Residence (Home) Phone: (5 2 0 j 7 4 9 - 1727 6. Name of Current or Most Recent Spouse: Co I I ett Tracy L Date of Birth: 3 / 2 0 / 63 (List all for last 5 years - Use additional sheet if necessary) Last First Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 6 / 21 / 6 0 8 Telephone number to contact you during business hours for any questions regarding this document. ( 5 2 0) 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: - TEXACO STAR MART #773 480 Premises Phone: () 837 _ 2444 11. licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County , zip 11 T ;mot nr tlmn of htic;nacc rhirina the nnct f;vP (s) vpnm if jinP.mnlnvP.d Hart of the. timf-_ llct thnCP. CintP.C_ T,iCt rnngt mrPnt I St FROM Month(Year TO Month/Year DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 10/95 CURRENT Housewife 8737 E. Bear Paw Place Tucson, AZ 85749 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECHON 1 q Tnri;rntu v7AI--;Aanro Mrlracc fnr tha Tact fives (5) vaarc• FROM Month/Year TO MondvYear RESIDENCE Street Address City State zip 8/02 CURRENT 12901 E. Camino Remuda Tucson AZ 85749 10/95 8/02 8737 E. Bear Paw Place Tucson AZ 85749 Ll�.. V1V1 1LJLUVV 1 Ll4Ulcl1 Ulwvlu 111J—4Ufllllr JtJl:I.+N V..,...' . \..v ..-...-i vim. If you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operatincl g L YES INO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 16. Have you EVER been convicte fined posted bond been ordered to deposit bail. imprisoned, had sentence suspended placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol andlor drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE rejected denied revoked suspended or Lined in this or any other state? 19. Has anyone EVER filed suit or obtained a judgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person , been an officer, member, director, or manager on any other liquor license in this or any other state? ❑ YES ® NO ❑ YES ONO ❑ YES El NO E4 YES Ci NO ❑ YES El NO 12YES ❑ NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates agencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. 1, Susan R . Collett hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: OFFICIAL SEAL AMY JO GRANT NOTARY PUBLIC - STATE Of AP ear 2005 State of Arizona County of Pima The foreg4g instrument was acknowled ged before me this FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPI Licensee or Agent Approval of Manager 25. I, Trmt Licensee/Agent's Name): Last Middle Hereby authorize the applicant to act as manager for the named liquor license. of Y= PUBLIC) A MANAGER APPLICATION First State of County of The foregoing instrument was acknowledged before me this day of , (Signature of LICENSEE/AGEN1) Day dMmlb Month Year My commission expires on: Day of Month Month Year (Signature of NOTARY PUBLIC) 0, 0 OLLC QUESTIONNAIRE QUESTION 918 tog SEP - o P 3: 3 8 I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date 02/ 15/03 02/ 10/02 03/01/00 12/30/99 07/02/98 10/24/97 10/24/97 10/24/97 05/??/96 11 /26/96 Susan Collett liquor violation notices Location Texaco Star Mart #756, Sierra Vista Texaco Star Mart #756, Sierra Vista Minit Market #17, Golder Ranch Dr., Tucson Minit Market # 15, 105 E. Hwy 70, Safford Minit Market # 17, Golder Ranch Dr., Tucson Minit Market #15, 105 E. Hwy 70, Safford Minit Market # 18, 8th Ave., Safford Minit Market #4, 325 E. Hwy 70, Pima Minit Market #8, 94 Bisbee Rd, Bisbee Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale QUESTIONNAIRE QUESTION 420 DLLD ZOO] SE° - 8 ,ram 3: 38 The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; business closed on 8/15/02 and license numbers 10103141 and 10103143; businesses sold on 8/06/02. Susan Collett liquor shareholders Question 20 Eq cn C N r oCl) � D CDO Cn� M - o D r0 � NNE cn �p NUoi2 to mC: mN cwn w w -Cl. Cn D Z con c D 7J N D A co "Zo 2 cG) mDO <CD 3t M D D m 0 w r-.*�CNZX w co m`nconCD> rn < cD W N m IV N �o 0 O A N m N TO W N z D x mD n 0.0 C� Cf) O rp Z n Do� Z n w D Cl) ;a0r�rw.aN> m r-CDMAoCO .Z 7 N C/) M � � _ � v -{ N N D r- . 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G) o J 00 m �t cn C) w -� D Cl) co (n m oOoX 1 m n "CC -4 m -n O G) � m � �' T � O Z --4 � m0 NO r m mrX nm -<`rn6 > Dx , rc�X C)Dwc.�D-4D P pDX rrD�--4 > 0N N- C) '� N < rn O Ui = C) Z.A A- O D N fV m N 0 W W- 0 O p o p m 00WpD m U �D � ti� m co m �D WN WD <DUl �� Crn.ivN mCl 00 -r wm m D03 No Cl) O Cn C 0 cn cn G �7 C G) O O co CD O ��>-n cyl NZypm�DwawN cn 0C,X D n D G) O > Cl) m .O co�Z 0 D Cn ADZ > Cl)v ODA1'Dc N co > m� 5zN =m mrn�0 Dp ovN CD m �=o] Qvmi N O co cilto WZOLn N Jm O mw 0) p m Cn mm oN m U' D 00 - I n' m ci rn 0 Cn cr G) _ G) C/) m Z7 .m C9 D N D �n m n C� Z DDT ND -4 m � C)x�= D TEA --<x o<Co> X- DDc°w�=O CO 0 mDw0:)D=O m Z W wNN -4m o rn COD - m _. cn V -� m <D p� N ul r W CON (n Cn Ocn Z Cr CD O N 1 CA w c CT O ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 0 Tucson AZ 85701-1352 (602) 542-5141 (520)628-6595 QUESTIO�..UF�AFRE SOCIAL SECURITY AND BIRTHDATE INFORMATION IS CONFIDENTIAL BY LAW AND CANNOT BE Dit"St iTNATEb TO THE PUBLIC Read Carefully, this instrument is a sworn document Type or print with black ink An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. /�?d There is a V4 00 processing fee for each fingerprint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) C%/ -'?, //, (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder ®Member []Officer ❑ Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box —* Licensee or Agent must complete # 25 for a Manager Licensee or Agent must complete # 25 2. Name Edmonson Last Debra Fast Middle Date of Birth: 11 / 17 / 5 5 ('This Will Not Become a Part of Public Records) 3. Social Security Number. 526 33 1439 Drivers License #: D 0 0 4 0 010 5 State. A ff z o n a (This Will Not Become a Part of Public Records) 4. Place of Birth: Safford Arizona USA Height: 5' 3 " Weight: 12 5 Eyes: B I u e Hair: B r n City State Country arital Status ❑ Single ® Married ❑ Divorced ❑ Widowed 6. Name of Current or Most Recent Spouse: E d m o n s o n (List all for last 5 years - Use additional sheet if necessary) Last Residence (Home) Phone: ( 5? 0) 2 9 9 - 2231 Date of Birth: 9/ 2 2/ 5 4 First Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 1 1 / 1 7 / 5 5 8 Telephone number to contact you during business hours for any questions regarding this document. (-? 0) 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy Qf driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #77 3 Premises Phone: (480 ) 837 2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County zip 11 T ;ot vn„r nmr,in<,rnnnt nr t—a of hncinacc rinrino the nact five (5) v?ArS if unemnloved nart of the time-_ list those dates. List most recent 1st. FROM Month/Year TO McntbNear DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street'address, city, state & zip) 1 /87 CURRENT Supervisor nvestment Co. 6565 E. Grant Road Tucson AZ 8571 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION ,.:,a-- a.aA— fnr A— last -F— ('i) -Aare- FROM Mcnth/Ye=u TO Month/Year RESIDENCE Street Address City State zip 4/95 CURRENT 6621 N. Mesa View Drive Tucson AZ 85718 [f you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating LJ YES LINO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested indicted or summoned into court for violation of ANY law or ❑ YES 2f NO ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related. 16. Have you EVER been convicted, fined posted bored been ordered to deposit bail imprisoned had sentence ❑ YES ®;NO suspended placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or ❑ YES It7 NO summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER E4 YES 0-NO had a business, professional or liquor APPLICATION OR LICENSE reiected denied revoked suspended or >ned in this or any other state? 19. Has anyone EVER filed suit or obtained a judgment against you in a civil action, the subject of which ❑ YES ff NO involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controllinaperson , been an officer, member, director, or manager on any other liquor license in this or any other state? ElYES ❑ NO 9 If any answer to Questions15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates azencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Debra Edmonson hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: Stateof Arizona Countyof Pima The foregoing instrument was acknowledged before me this OFFICIAL SEAL day of: AMY JO GRANT NOTARY PUBLIC - STATE OF ARIZONA y �� / LINTY �MY Dec. 14, 2005 Day of Month Month Year PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPROVING A MANAGER APPLICATION Licensee or Agent Approval of Manager 25. I, rint Licensee/Agent's Name): Last Middle Hereby authorize the applicant to act as manager for the named liquor license. (Signature of LICENSEE/AGENT) My commission expires on: Day of Month Month Year First State of County of The foregoing instrument was acknowledged before me this day of Day of Moath Month (Signature of NOTARY PUBLIC) Year CLLC QUESTIONNAIRE QUESTION 418 I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart 9756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market # 17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8`h Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale J " , Debra Edmonson liquor violation notices Ra OLLC QUESTIONNAIRE QUESTION # 5�0 _$ P 3. 3q The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; business closed on 8/15/02 and license numbers 10103141 and 10103143; businesses sold on 8/06/02. De a Edmonson liquor shareholders Question 20 Z7 Cn C rj OG r c D W Z!5 rm' 0 o D N N `O can r D N w mm 1� mN L < G) w C) D Z D �� c N D Z o �OcoM>0G m�DmD-Dm0 r X N Z X L C, m rn m cn O) D rn m N N CO O N O) N G) o -� O Z D ;a y n 0 0 C)-<xoaOr z ��G)-z� C)D� W Dc X tQ Om�CCD0:).Z. m � � C/) 4 At Oi U i D r- � N - O a D�O 't,DcNn � D �ocl) 0 00< U o Z. D r- D X N w m r CC)< mmocnN°'m -<' Z7 co ? 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W C„ p 07 Ln < o N C1 cn v co G) n G) —1 W .Z7 Cn m v z cnnm-� D m NC/)U--4 Cl) Z r'NG)' nZ C) -x G) OmOX n Z o;u X c0-4 ZZD cp� D �Xp,Xi.M D N Fno, �D D C, D o�6NC n # CD ---I N D= o DZi, ' N�O 3t j 0 0po�mm0 a� �- Z m m m ) `'D v M W C W a ZZ �� N p O m 0 jN IQ D ci O <� D ODCo rn co Z � W m o N N N O Z7 O p . O j G) n O o O. D-n Ch C7 -�. >oXopoX D DmX�rO-�X m - �, ZZD Dc,,wDD X�ODX FD��D O NwD_'O Z�-ph. 0 -> W Wfil0n m 0C) wco -4 i �cn NUi<m r.rnM MNM-4 m Dcn O�comCn � � � CDNO3t C A D-4 D cD N j m U m. Cl) N CD m -< m v w co Wtn D C)o N r °' . N < C' co CT CO Cn w C C a D N m O CD n D NO o m cn rTi � O � M �' NZ m o cnn C cn X o °b X r -� X m o cn . D X n�ro'v°iZZn �oai�cDn--q0 -< '.co��D CDC?DCn0 r rn N(D 3t cu>-i J - =C x m N v N-j �t w (mM> p r m cD m m a Z a,mz� �-N L' ovM A —I� O Cn m <rn fNCT'l m ;]o rnm c"'J, o m U, D -4 -i N N --i rn rn G) O O Ot Lt G) _ G) co m �[7 -n m D N N -i D X �= -' X C7 Ut --IDi1 IV N —1 > o :Q C) 0 �m D X o -< Q, w— Cn D 2 0 M D W� = O D D � , D m rn �D � Wm w M J cn o r �� C.0 m Cr i N Z cn U) » W Cn Cn ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor Phoenix AZ 85007-2934 0 (602) 542-5141 QUESTIONNAIRE 400 W Congress #150 Tucson AZ 85701-1352 (520) 628-6595 SOCIAL SECURITY AND BIRTHDATE INFORMATION IS" 66N' FIDENTIAL BY LAW AND CANNOT BE DISSEMINATED TO THE PUBLAq,,q Read Carefully, this instrument is a sworn document. 4=3i0e •o'r'prin with black ink An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THE FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRMING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. Md There is a $24.00 processim fee for each fingerprint card submitted. Liquor License # A service fee of $25.00 will be charged for all dishonored checks (AILS. 44.6852) ?6 / (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder Member ❑Officer ❑ Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box —*. Licensee or Agent must complete # 25 for a Mana er Licensee or A ent must complete # 25 &2arne: Edmonson Neil W Date of Birth:-9 / 2 2 / 5 4 Last First Middle (This Will Not Become a Part of Public Records) 3. Social Security Number: 531 60 6001 Drivers License #: 531 60 6001 State: Arizona (This Will Not Become a Part of Public Records) 4. Place of Birth: CAarital Status Tucson AZ USA City State Country ❑ Single ® Married ❑ Divorced ❑ Widowed Height: 6' 1 i I Weight: 19 5 Eyes: B r n Hair: B r n Residence (Home) Phone: (5 2 0 1 2 9 9 - 2231 6. Name of Current or Most Recent Spouse: E d m o n s o n Debra R e a Y Date of Birth: 1 1/ 17 / 5 5 (List all for last 5 years - Use additional sheet if necessary) Last Fast Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 9 / 2 2 / 5 4 8 Telephone number to contact you during business hours for any questions regarding this document. ( 5 2 0 298 _ 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: 11. Licensed Premises Address: TEXACO STAR MART #77 3 Premises Phone: 4( 80 ) 837 - 2444 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address " (Do not use PO Box #) City County Zip 12. List vour emnlovment or tune of business during the east five (5) vears. if unemnloved part of the time, list those dates. List most recent 1st FROM TO DESCRIBE POSITION EMEPLOYER'S NAME OR NAME OF BUSINESS Month/Year Month/Year OR BUSINESS (Give street address, city, state & zip) CURRENT Brown & White Builders 8/01 Construction 51.1 E. 29 Street Tucson, AZ 85713 9/96 8/01 Construction Swinerton Builders 320_ W_. Alturas Tucson AZ 85705 ATTACH ADDITIONAL SHEET IF NECESSARY FOR ETITIER SECTION 13. indicate vnur recidPnce aridress fnr the lntt five (5) venrs- FROM it 4ondVYear TO Month/Year RESIDENCE Street Address City State Zip 4/95 CURRENT 6621 N. Mesa View Drive Tucson AZ 85718 6/88 4/95 3817 E. Calle Ensenada Tucson AZ 85716 Llk- viul ilu_luuu VISaMea mmvinllals reaturID-esneciai accotrunuUaLIU u WeaJC cap IOULI r If you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating LJ YFfS NO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) El YES [I NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested, indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 16. Have you EVER been convictedfined posted bond: been ordered to deposit bail, imprisoned had sentence suspended placed on Probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drue related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE reiected denied revoked suspended or -flned in this or any other state? 19. Has anyone EVERriled suit or obtained a iudement aeainst you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person, been an officer, member, director, or manager on any other fi uor license in this or any other state? 0 YES IS] NO ❑ YES 13 NO ❑ YES l:aa NO M YES Q NO ❑ YES ® NO ® YES D NO • If any answer to Questions 15 through 20 is "YES" YOU MUST attach a sinned statement giving complete details._ Please be sure to include dates, azencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Neil W . E d m o n s o n , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: AMY JO GRAN I NOTARY PUBLIC - STATE OF ARIZONA `A..r—m FynCO D,,. I 2005 Day of Month Month Year State of Arizona County of Pima The for oing instrument was acknowledged before me this av dM,inth aoth Year FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPF Licensee or Agent Approval of Manager 25. I,(Print Licensee/Agent's Name): Last Hereby authorize the applicant to act as manager for the named liquor license. (SignaRue of LKENSEUAGENT) My commission expires on: Day of Month Month Midge of NOTARY PUBLIC) IG A MANAGER APPLICATION First State of County of The foregoing instrument was acknowledged before me this day of , DayefMomh Month Year (Si2n=i , of NOTARY PUBLIC) Year pL l_C QUESTIONNAIRE QUESTION"Al I am aware of the following violations that Minit Markets and Texaco Star Mart have been cited for. All violations were due to employees of Minit Markets and Texaco Star Mart failing to request ID and sold alcohol to underage persons. Minit Markets and Texaco Star Mart were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market # 15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 81h Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee NEIL EDMONSON liquor violation notices UESTIONNAIRE QUESTION #20 P 3. 3q I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; business closed on 8/15/02 and license numbers 10103141 and 10103143; businesses sold on 8/06/02. OeA[ Neil Edmonson liquor shareholders Question 20 m 0 k D CTI CO. C N C �p m m z D p z Cn� m A m A Z C mC7 Cim Cl) y �{ Z n �N X n �> CO�� D c� ym C-) r-- z X o DD3�� T DDxNmY) D�D ��x�Z.O � o cnIli o0OZD �� Z. ��rn�OzO C) _<>cNaAD2D OzAcONw D DmoCONOr D oCZ�O m0 oDD nD_4wDm ;p cocz m A ND �+7CnNOOM 7 ;rl r-000CDowmm � 0mcoo��p� �V,CoDO-M n �0 rNpO � ZS c° r-a z0cocc-,5m m �mCO0Z.C� C) i �z�c07wO:tt pZto too to CD, V m w� mN mm� ycn S �, m �. 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Ci D = 0 1N co y w COD 2 0 m m m� co co �y m(D Cc) N�cn CYI cn 0 CO of cn s N z cn rn Ul C w 80o W Washington 5th Floor Phoenix AZ 85007-2934 (602)542-5141 OCIAL SECURITY AND ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 400 W Congress #150 Tucson AZ 85701-1352 (520)628-6595 QUESTIONNAIRE BIRTH DATEM ORMATION IS CONFIDENTI qOT BE DISSEMINATED TO THE PUBLIC LA' Read Carefully, this rostrum��,,, a tsti3or��u ner0t doType or print with black ink JL� An extensive investigation of your bac round will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit TO BE COMPLETED BY EACH OWNER, AGENT, PARTNTER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER. ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT, TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPA/RTTMENT OF LIQUOR. THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. There is a S24.00 proce ssfee for each A - Tint card submitted. Liquor �jicense # A service fee of $25.00 will be charged for all dishonored checks (A.RS. 44.6852) VD( l (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder ®Member ❑Officer ❑ Agent ❑ Manager(Only) apdropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & ?� box —)0- Licensee or Agent must com lete # 25 for a Mang er Licensee or Agent must complete # 25 2. Name: Couch Richard A Date of Birth: 7 / 31 / 5 0 Last First Addle (This Will Not Become a Plitt of Public Records) 3 . Social Security Number. 527 82 2127 Drivers License #: 5 2 7 8 2 2127 State: Arizona (This Will Not Become a Part of Public Records) 4 . Place of Birth: Kansas City KS USA Height 6' 0 " Weight 210 Eyes: B 1 u e Hair. Brow n City S= Country Marital Status ❑ Single DMarried ❑ Divorced ❑ widowed Residence (Home) Phone: ( 520) 886 -_ Q97_ 6. Name of Current or Most Recent Spouse: _ (List all for last 5 years - Use additional sheet if necessary) 7. You are a bona fide resident of what state . Arizona If Arizona, date of residency. 7 / 31 / 5 0 Couch Janet M Crawfordr-DateofBirth: 8/22/51 Last First Middle Maiden 8 Telephone number to contact you during business hours for any questions regarding this document. ( 5 2 0) 298 - 2391 9. If you have been a resident less than three (3) months, submit a copy of drivers license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone:( 480) 837 - 2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City Counry Zip st your Temloyment lGenseral of buiness during the ast five (5) years, if unem Toyed art of the time, list those dates. List most recent 1stFROM TO DESCRIBE POSITION EMPLOYER'S NAME ORNAME OF BUSINESS Month/Yearvfonth/Ye OR BUSINESS (Give street address, airy, state & zip) ��TRF Investment Co. 1986 Manager 6565 E. Grant Road Tucson, AZ 85715 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION T 13. Indicate vour residence address for the last five (5) vears: FROM TO I RESIDENCE 4 / 0 0 CLRRE:-'T 7/78 4/00 11400 E. Andalusian Place 900 N. Stoner Tucson I Az 185748 Tucson I AZ 1 85748 u you cnecxea the Managaer box on the front of this form sidp to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating YES the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or druiz related 16. Have you EVER been convicted fined Posted bond been ordered to deposit bait; imprisoned had sentence suspended. Placed on probation or Parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol andlor drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or A -NY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquorAPPLICA770N OR LICENSE reiected denied revoked suspended or -flned in this or any other state? 19. Has anyone EVER fried suit or obtained a iudament against you in a civil action, the subject of which involved fraud or misrepresentation of a business Professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person, been an officer, member, director. or manager on any other Irouor license in this or any other state? ❑ YES 13 NO 11 YES U(NO ❑ YES aNO 13 YES ❑ NO ❑ YES 2FNO ® YFC ❑ Nn If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details. Please be sure to include dates, agencies involved and dispositions - u you cnecxea the Itilanager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and Qo to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If `yes", attach a copy of such agreement 24. I, Richard A Couch , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. �. OFFICIAL SEAL AMY JO GRANT = I'> NOTARY PUBLIC - STATE OF ARIZONA UNTY My conlnlission expires on: M s Dec. 14, 2005 Day of Month Month Year Stateof Arizona County of Pima The fortdayZ inst was acknowledged before me this ��; 1 27—T. � D afMoah 4 odl // Ycdr FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPF Licensee or Agent Approval of Manager 25. I,(Print Licensee/Agent's Name): last Middle Hereby authorize the applicant to act as manager for the named liquor license. PUBLIC) A vLA NAGER APPLICATION State of County of The foregoing instrument was acknowledged before me this (Si -e of LICENSEE/AGENT) Da � M« � day of Y Moab Yc,r My commission expires on: Day of Month Month Year (Signame of NOTARY PUBLIC) QUESTIONNAIRE QUESTION 918 OLLC N53 SEA' - 8 P 3* 3 9 I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market # 18, 8 h Ave., Safford 10/24/97 Minit Market 94, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale I,,- RICHA COUCH liquor violation notices R OLLC QUESTIONNAIRE QUESTION 9- SEA - o p 3q The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson Richard Couch currently a shareholder of Reay's Ranch Investors, LLC for liquor license aw numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10023076, 10103314, 10043024 and a Supervisor/Manager of Thurland Reay Family Investment Co for liquor license numbers 10110047, 10110045, 10073280, 10103072, 10051009, 10100013, 10110062, 10020036, 10020037, 09110053, 10100286, 10051004, 10051005, 10103063. I was the Supervisor/Manager of Thurland Reay Family Investment Co for liquor license number 09100001; this license was sold on 1/9/0 1; license number 10103215 which was surrendered to the state on 1/23/02 and license number 09040032 which was sold on 6/28/02. I was a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10123026; closed for business on 8/15/02 and license numbers 10103141 and 10103143; business sold on 8/6/02. Richard touch liquor shareholders Question 20 .V G) D x K�7 CO C: -I� �n-n nm C) rm T .Cn -tm-n� m c' Z m0 nm �z OD -{ n �N Xcnc�o� cn �r w� D D0y O 0-�Xo�r Z O �>X�Ooz N� z; DD�Dwpw -I ;oF> mm-i DDXN cn� in m Dwz r'�X� 0 ►�tn D NoOzZ c w O Q° wz < Q ��Z� C) n Z N"- <D-NN=� n Z D m. D G�rct i�Itt`m � r m c, I D r D D -C) m X o ^' Z yp- T,O �O o�ND � r`' O O>�NND m ram co co O >Mw ,C-n r�rt rO�oocwn CO m nNicN,NOrTn co CO r� �p NcG'l mC " w m m�N Co,�� m�' ? 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CTI N N N O G)co n �p-ncnC�w-+ > C17 N Cn cn m opoX -am nN�� m -n G� m �rc�X cmn-'TU'Oz-� - C D N r m m�XQpDX cam -<`o6ZzD >� Q Dc,WD -ID F>-4 2?D o�N wDy 0 o C- m za.��0 r-y w Wm00 � N - � m O oC'I Co -4 N G � m . cn C3i N --� 3t m r-cw G) X � co NO � � Cp D Z rt O � ,,ND„ `D m j D!, M, m• � C* s NO M m J w m to > N 00N r W > co rn -4 Cn ci cn m cn (D W { > cn C� w M o o > m NC o0 M m m m o -4 > -n NZ -1 >0DocnAm > O nD0G) � OG c)Cn co �MDoU)mm > CnOZ D n > N N z Wj n D om? ?�c=np d cn r- C)N--�O mz��UwipZrn CO Ao�� >m>°°''�D=p m<aoicJDrnN-Iy �NG'm� m nzi �mWa) mmv�(mmc�n o m 7 a) O G) _ G] C/) m D Nn �' m > X �= X Z ym ND >< D C Q m O 0 ��, �m� D X < C) <co W. -coD >>coCo- 0 mDwco>=O mZwW� <� �°��v mCp> M U, x m co Co N cn co Cn o Z cn CA W Cn Cn 9 VA 6 1 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800W Washington SthFloor 400 W Congress #150Tucson AZ 85701-1352 Phoenix AZ 85007-2934 40 (602) 542-5141 QUESTIONNAIRE (520) 628-6595 SOCIAL SECURITY AND BIRTHDATE INFORMATION IS CONFIDENTIAL BY LAW AND CANNOT BE DISSEU14ATED TO THE PUBLIC Read Carefully, this instrument is a sworn document. Type or print with black ink An extensive investigation of your backgror e-6nd2tei } or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. o y,�, pla J Z-lkz There is a $24.00 processing fee for each fingerprint card submitted. Liqu/ OrLiceILSe # � A service fee of $25.00 will be charged for all dishonored checks (A.RS. 44.6852) (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder Member ❑Officer ❑ Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box Licensee or Agent must complete # 25 for a Mana er Licensee or A ent must complete # 25 2. Name: Couch Janet M Date of Birth: 8 / 2 2 / 51 Last Fast Middle (This Will Not Become a Part of Public Records) 3. Social Security Number: 526 96 1082 Drivers license #: 526961082 State: Arizona (This Will Not Become a Part of Public Records) 4. Place of Birth: Yuma AZ USA Height: 5 n 4 Weight: 12 0 Eyes: B l u e Hair: G r a v City State Country Marital Status ❑ Single D Married ❑ Divorced ❑ Widowed 6. Name of Current or Most Recent Spouse: C o u c h (List all for last 5 years - Use additional sheet if necessary) Last 7. You are a bona fide resident of what state? Arizona Residence (Home) Phone: (5 2 � � 8 8 6 Richard A First Middle Maiden - 0973 Date of Birth: 7 / 31 / 5 0 If Arizona, date of residency: ' 8 12 2 / 51 8 Telephone number to contact you during business hours for any questions regarding this document. 5( 2 0) 298 _ 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of licensed Premises: TEXACO STAR MART #773 Premises Phone: ( 480 1 837 _ 2444 11. licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County zip List our em loyinent or e of business during the past five (5) years, if unemployed part of the time, list those dates. List most recent 1st. FROM ,Month/Year TO Month/Year DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 1991 CURRENT Teacher Tucson Unified School Dist. 650 N . Igo Way Tucson AZ 85710 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Indicate vour residence address for the last five (5) vears: FROM Month/Yen TO Month/Year RESIDENCE Street Address citv State Zip 4/00 CURRENT 11400 E. Andalusian Place Tucson AZ 85748 7/78 4/00 900 N. Stoner Tucson AZ 85748 If you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an exi 15. Have you EVER been detained cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 16. Have you EVER been convicte fined posted bond been ordered to deposit W4 imprisoned had sentence suspended placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE rejected, denied, revoked suspended or Lined in this or any other state? 19. Has anyone EVER lied suit or obtained ajudgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person , been an officer, member, director, or manager on an oy ther liquor license in this or any other state? LJ YES ENO ❑ YES [—]NO sing license. ❑ YES ®NO ❑ YES 1qNO ❑ YES 13 NO ® YES UNO ❑ YES I:q NO EYES ❑ NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates, agencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Janet M . Couch , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applic=) I have read this questionnaire and the contents and all statements are true, correct and complete. State of Arizona County of Pima The foregoing instrumen tt was acknowledged before me this i OFFICIAL SEAL AMY JO GRANT NOTARY PUBLIC - STATE OF ARIZONA TY My commission expires on: "`C r(�c. 14, 2005 _ Day of Month Month Year FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPF Licensee or Agent Approval of Manager 25. I, Tnnt Licensee/Agent's Name): Last Middle Hereby authorize the applicant to act as manager for the named liquor license. (Signature of LICENSMAGENT) bwffil W1 n% ' A MANAGER APPLICATION First State of County of The foregoing instrument was acknowledged before me this day of DayoFMowh Momh My commission expires on: Day of Month Month Year (signature of NOTARY PUBLIC) Year taw DLLC QUESTIONNAIRE QUESTION 418 lt3 S`o -3 p 3 3Q I am aware of the following violations that Minit Markets and Texaco Star Mart have been cited for. All violations were due to employees of Minit Markets and Texaco Star Mart failing to request ID and sold alcohol to underage persons. Minit Markets and Texaco Star Mart were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8th Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee ,�� &J"/� JANET OUCH liquor violation notices DLLC QUESTIONNAIRE QUESTION #20 Z003 SE° - a P 3: 3 9 I am currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 10043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283, 10103287, 10103311, 10103314, 10043024 and 10023076. 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N C/) 3t -i y --T{{ Z O --i m 1-1 -' m m T N O CD �) w "�'' � m O T<-� C. gy m~ co O o ai cr fC�i D O ---I .�A, m N N ---I Ci cn C) O cn G) _ n C/D m � D N � D �)� j m X �= X Ul z r, ND m D p X Q< D n x CC G X N tJ n Cl) -< v� n D a' �� 2 0 xr- * m D W �0> 0 >imp)" �3t CO .Z7 m 3� � j .Z7 r �� N m. cn O N Z cn m G) -a w (Jt Ul O 9 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 4$Tucson AZ 85701-1352 (602) 542-5141 QUESTIONNAIRE (520) 628-6595 SOCIAL SECURITY AND BIRTHDATE W -06RMATION IS CONFIDENTIAL BY LAW AND CANNOT BE DISSEMMIA"I"ffD�70 THE PUBLIC Read Carefully, this instrument i a whin document. Type or print with black ink An extensive investigation of your background will be conducted. False or incomplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPARTMENT OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. ly2d /0 160a `lq/„ There is a $24.00 processim! fee for each fingerprint card submitted. Liquor License 4 lL� A service fee of $25.00 will be charged for all dishonored checks (A.R.S. 44.6852) 3)/ �5 //p (If the location is currently licensed) 1. Check ❑Owner ❑Partner ❑Stockholder OMember ❑Officer ❑ Agent ❑ Manager(Only) appropriate ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) box —01- Licensee or A ent must complete # 25 for a Mann—, Licensee or A ent must complete # 25 2. Name: Last Lois L First Middle 3. Social Security Number: 526 42 2208 Drivers License #: B 12 5 4 3 9 0 7 ('This Will Not Become a Part of Public Records) Date of Birth: 4 / 16 / 3 5 (Thu Will Not Become a Part of Public Records) State: Arizona 4. Place of Birth: Safford A Z USA Height: 514 tt Weight: 140 Eyes: G r n Hair: Gray City State Country (W Marital Status ❑ Single El Married ❑ Divorced ❑ Widowed Residence (Home) Phone: (_5 2 0) 298 - 6035 6. Name of Current or Most Recent Spouse: R e a y Gordon M Date of Birth: 3 / 1 / 3 5 (List all for last 5 years - Use additional sheet ifnecessary) Last Fast Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency. 4 / 16 / 3 5 8 Telephone number to contact you during business hours for any questions regarding this document. ( 520 298 - 2 3 91 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #773 Premises Phone: (480 1 837 - 2444 11.LicensedPremises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County Zip CEs/ t vnur emnlovment or tvne of business during the Dast five (5) vears. if unemnloved Dart of the time, list those dates. List most recent 1st. FROM Month/Year ,TO Month/Year DESCRIBE POSITION OR BUSINESS EMPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) 1965 ANT Secretary TRF Investment Co 6565 E. Grant Road Tucson, AZ 8571-5 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECITON 11 Tnrlirata vnur rasirlanre arlrlrecs fnr tha last five (il vearc' FROM Month/Year TO MondvYear RESIDENCE Street Address city State zip bw 8/99 CURRENT 12115 E. Speedway 61 VA Tucson AZ 8574i1 12/78 8/99 5401 E. River Road Tucson AZ 857'18 L %_ ulul LaLuvv 1JLldutcu ulW vlumm l cquu nag �Vl un a—vixuaNun w v.— . ^•• %w , , [f you checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating YES NO the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested, indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol andlor drug related 16. Have you EVER been convicted, fined Posted bond been ordered to deposit bail, imprisoned, had sentence suspended Placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol andlor drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE reiected denied revoked suspended or aped in this or any other state? 19. Has anyone EVER flied suit or obtained a judgment against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person, been an officer, member, director, or manager on any other liquor license in this or any other state? ❑ YES ® NO ❑ YES ;0 NO JD YES O NO 0 YES ® NO AYES D NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates agencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. 1, Lois L . Rea y , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. Stateof Arizona Countyof Pima The foregsjng instrument was acknowledged before me this k ignture of Ap licant OFFICIAL SEAL day of AM Y JO GRANT ARIZONA Da oaMonth TARP PUBLIC STATE OF COUNT Y C My commission expires on: fires Dec.14, 2005 Day onth Year (i atnre 6-T PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPROVING A MANAGER APPLICATION Licensee or Agent Approval of Manager 25. I, Trmt Licensee/Agent's Name): Last Hereby authorize the applicant to act as manager for the named liquor license. (Signatum of LICENSEEIAGENr) My commission expires on: Day of Month Month Year Middle Fust State of County of The foregoing instrument was acknowledged before me this day of Day cf Month Month Year (Signanue of NOTARY PUBLIC) IP QUESTIONNAIRE QUESTION #18 IVS� - o I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8th Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale s Reay liquor violation notices DLLC 2003 SEP -S P 3: 39 QUESTIONNAIRE QUESTION #20 The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson Lois Reay is currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers �w 10113052, 1043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, 10103283,10103287, 10103311, 10023076, 10103314, 10043024 and the Secretary of Thurland Reay Family Investment Co for liquor license numbers 10110047, 10110045, 10073280, 10103072, 10051009, 10100013, 10110062, 10020036, 10020037, 09110053, 10100286, 10051004, 10051005 and 10103063. I was the Secretary of Thurland Reay Family Investment Co. for liquor license numbers 09100001; sold on 1/9/01 and license number 09040032; sold on 6/28/02 and license number 10103215 surrendered on 1/23/02 to the State. I was a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10123026; closed for business on 8/15/02 and license numbers 10103141 and 10103143; businesses sold on 8/6/02. Loi Reay liquor shareholders Question 20 0 0 A A N G� Cn w �� w Cl) CA � ?J =ice Cm z = r �1 'T �Dy z CO -Im-rt�,ma _z m C_ m C/) n O�Cn Z -n C: N_ Dcn nod 0 < co Cn Dm�r- Dim n0 O n < z oOccy, ��XN�o-i DDCD�po -I � �� Wmw-i DDN_ Cn C�ZAinDCo,> �zD D-i mpX�?p rr p XN�o v,o D N OZz cn o0�go Wz. �� AOp Cl) nzN cDaNN=D <�. w�Nm� rr 0> D D �0Nm� oNZ- Xo o� m0 �D� OrD-�'W D� m Co�A� D N-,om x m CO CO T. N DO-n N�cooED rr� NN0 �D Ncoi,=cc rC�gN.Z m nri�o a� T. 7r,O Oc_rlUlM m mmaocnZ T�Oa)a)C) m0Aoo Nm(0�o � :-0Zo w�� in�Ul m c �, mN m -4 � �; not � CO c_. ?CCtt A�>j rD rn "a A CD G �A _ D m N w �, �p `' cn cWn r LU w � o a * CO N D * w N .; m r CA < o 41 r p Cn C7 CnCA N N . 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Type or print with black ink An extensive investigation of your background will ] & ogductedJ Oise & i omplete answers could result in criminal prosecution and the denial or subsequent revocation of a license or permit. TO BE COMPLETED BY EACH OWNER, AGENT, PARTNER, STOCKHOLDER (10% OR MORE), MEMBER, OFFICER OR MANAGER ALSO EACH PERSON COMPLETING THIS FORM MUST SUBMIT AN "APPLICANT' TYPE FINGERPRINT CARD WHICH MAY BE OBTAINED AT THE DEPT. FINGERPRINTING MUST BE DONE BY A BONA FIDE LAW ENFORCEMENT AGENCY OR A FINGERPRINTING SERVICE APPROVED BY THE DEPAR OF LIQUOR THE DEPARTMENT DOES NOT PROVIDE THIS SERVICE. {mince '01'0&V There is a $24.00 processing fee for each finaernrint card submitted. Liquor License # A service fee of $25.00 will be chareed for all dishonored checks (AILS. 44.6852) 2 i '7 (If the Inentinn is currently lirencerl) 1. Check appropriate box —® ❑Owner ❑Partner ❑Stockholder RIMember ❑Officer ❑ Agent ❑ Manager(Only) ❑ Other (Complete Questions 1-20 & 24) (Complete All Questions except # 14,14a & 25) Licensee or Agent must complete # 25 for a Manager Licensee or A ent must complete # 25 2, Name:- Reay Gordon M Date of Birth: 3/01/35 Last First Middle ('This Will Not Become a Part of Public Records) 3. Social Security Number: 527 46 7 7 9 5- Drivers License #: B 13 7 7 7 8 4 4 State: Arizona ('this Will Not Become a Part of Public Records) 4. Place of Birth: Chandler AZ USA Height: 5 l 6" Weight: 18 5 Eyes: B I Hair: G r a y City State Country Marital Status ❑ Single Fxl Married ❑ Divorced ❑ Widowed Residence (Home) Phone: 5( 2 0 ) 2 9 8 - 6035 Name of Current or Most Recent Spouse: Reay Lois L N u tt I e Date of Birth: 4 / 16 / 3 5 (List all for last 5 years - Use additional sheet if necessary) Last Fast Middle Maiden 7. You are a bona fide resident of what state? Arizona If Arizona, date of residency: 3 / 1 / 3 5 8 Telephone number to contact you during business hours for any questions regarding this document. (5 2 0 ) 2 9 8 - 2391 9. If you have been a resident less than three (3) months, submit a copy of driver's license or voter registration card. 10. Name of Licensed Premises: TEXACO STAR MART #77 Premises Phone: ( 480 l 837 -2444 11. Licensed Premises Address: 17125 EAST SHEA BLVD. FOUNTAIN HILLS MARICOPA 85268 Street Address (Do not use PO Box #) City County Zip 12 'st your em loyment or e of business during the past five (5) years, if unemployed part of the time, list those dates. List most recent 1st. F1965 TO Month/Year DESCRIBE POSITION OR BUSINESS ENIPLOYER'S NAME OR NAME OF BUSINESS (Give street address, city, state & zip) ANT President : TRF Investment C6 6565 E . Grant Road Tucson AZ 85715 ATTACH ADDITIONAL SHEET IF NECESSARY FOR EITHER SECTION 13. Indicate vour residence address fir the last five (5) vears- FROM Month/Year TO Month/Year RESIDENCE Street Address City State zip '/99 CURRENT 11215 E. Speedway ��.� Tucson Az 85741? 12/78 8/99 5401 E. River Road Tucson AZ 85748 "l .' ulul lL/LWu Luamea muiviana1S reClmrlRb spec�a/ aC(:URIfIIUUdUUnJ �lraJC tau (OVL/ J447VL/ [f ou checked the Manager box on the front of this form skip to # 15 14. As an Owner, Agent, Partner, Stockholder, Member or Officer, will you be physically present and operating El YES nN0 the licensed premises ? If you answered YES, how many hrs/day? , answer #14a below. If NO, skip to #15. 14a. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) El YES El NO If the answer to # 14a is "NO", course must be completed before issuance of a new license or approval on an existing license. 15. Have you EVER been detained cited arrested indicted or summoned into court for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations, include only those that were alcohol and/or drug related 16. Have you EVER been convicted, fined posted bond been ordered to deposit bail imprisoned had sentence suspended placed on probation or parole for violation of ANY law or ordinance (regardless of the disposition even if dismissed or expunged)? For traffic violations include only those that were alcohol and/or drug related 17. Are there ANY administrative law citations, compliance actions or consents, criminal arrests, indictments or summonses PENDING against you or ANY entity in which you are now involved? 18. Have you or any entity in which you have held ownership, been an officer, member, director or manager EVER had a business, professional or liquor APPLICATION OR LICENSE reiected, denied, revoked, suspended or aped in this or any other state? 19. Has anyone EVER filed suit or obtained a iudement against you in a civil action, the subject of which involved fraud or misrepresentation of a business professional or liquor license? 20. Are you NOW or have you EVER held ownership, been a controlling person, been an officer, member, director, or manager on any other liquor license in this or any other state? ■ L • ❑ YES 12F NO ■ �_l � ® YES ❑ NO ❑ YES ® NO in YES ❑ NO If any answer to Questions 15 through 20 is "YES" YOU MUST attach a signed statement giving complete details._ Please be sure to include dates, aZencies involved and dispositions. If you checked the Manager box on the front of this form, fill in #21-23 and 24, all others skip the following box (21-23) and go to # 24 Manager Section 21. Have you attended a Department approved Liquor Law Training Course within the last 5 years? (Must provide proof) ❑ YES ❑ NO If the answer to #21 is "NO" course must be completed BEFORE ISSUANCE of a new license OR APPROVAL on an existing license. 22. Do you make payments to the licensee? ❑ YES ❑ NO If "yes", how much? $ per month. Total debt to licensee $ 23. Is there a formal written contract or agreement between you and the licensee relating to the operation or management of this business? ❑ YES ❑ NO If "yes", attach a copy of such agreement 24. I, Gordon M . R e a y , hereby declare that I am the APPLICANT filing this questionnaire. (Print full name of Applicant) I have read this questionnaire and the contents and all statements are true, correct and complete. My commission expires on: OFFICIAL SEAL AMY JO GRANT NOTARY PUBLIC - STATE OF ARIZONA AZv 1 9s Dec. 14, 2005 Day of Month Month Year State of Ariz o n a County of Pima The foregoing instrument was acknowledged before me this of PUBLIC) FILL IN THIS SECTION ONLY IF YOU ARE A LICENSEE OR AGENT APPROVING A MANAGER APPLICATION Licensee or Anent Approval of Manner 25. I, tint Licensee/Agent's Name): Last Middle Hereby authorize the applicant to act as manager for the named liquor license. (Signanire of LICENSMAGENT) My commission expires on: Day of Month Month Year Fnst State of County of The foregoing instrument was acknowledged before me this day of , Day of Month Month (Signal= of NOTARY PUBLIC) Year DLLC QUESTIONNAIRE QUESTION #18 ninSP-8 P 3.3q I am aware of the following violations that Minit Markets, Texaco Star Mart and Reay's Ranch Market have been cited for. All violations were due to employees of Minit Markets, Texaco Star Mart and Reay's Ranch Market failing to request ID and sold alcohol to underage persons. Minit Markets, Texaco Star Mart and Reay's Ranch Market were cited and paid the fines in all incidences. Incident Date Location 02/15/03 Texaco Star Mart #756, Sierra Vista 02/10/02 Texaco Star Mart #756, Sierra Vista 03/01/00 Minit Market #17, Golder Ranch Dr., Tucson 12/30/99 Minit Market #15, 105 E. Hwy 70, Safford 07/02/98 Minit Market #17, Golder Ranch Dr., Tucson 10/24/97 Minit Market #15, 105 E. Hwy 70, Safford 10/24/97 Minit Market #18, 8th Ave., Safford 10/24/97 Minit Market #4, 325 E. Hwy 70, Pima 05/??/96 Minit Market #8, 94 Bisbee Rd, Bisbee 11/26/96 Reay's Ranch Market, 9689 N. Hayden Rd, Scottsdale GORDON REAY liquor violation notices 01-LC UESTIONNAIRE QUESTION #20 1M O - 8 The following individuals were shareholders of Reay's Ranch Markets, Inc. for liquor license numbers 09100232, 10071163, 09100121, 10071455, 10073091, 0910074 and 09100080. Reay's Ranch Markets, Inc. is no longer in business or using these licenses. Gordon and Lois Reay Rod Herbert Diane Herbert Craig Reay Susan Collett Richard Couch Debra Edmonson Gordon Reay is currently a shareholder of Reay's Ranch Investors, LLC for liquor license numbers 10113052, 1043022, 10103255, 10053009, 10113066, 10113064, 10113065, 10023068, 09020052, 10023066, 10023067, 10023070, 10023069, 10053012, 10043028, 10103285, rr• 10103283, 10103287, 10103311, 10023076, 10103314, 10043024 and the Agent, President and Director of Thurland Reay Family Investment Co for liquor license numbers 10110047, 10110045, 10073280, 10103072, 10051009, 10100013, 10110062, 10020036, 10020037, 09110053, 10100286, 10051004, 10051005 and 10103063. I was the Agent, President and Director of Thurland Reay Family Investment Co for liquor license number 09100001. This license was sold on 1/9/01. I was President and Director of Thurland Reay Family Investment Co for liquor license number 10103215 which was surrendered to the State on 1/23/02 due to the location closing and license number 09040032 was sold on 6/28/02. I was a shareholder of Reay's Ranch Investors, LLC for liquor license number 10123026; closed for business on 8/15/02 and license numbers 10103141 and 10103143; these locations were sold on 8/6/02. Gordon Reay liquor shareholders Question 20 A D C Ul G� �> CNNi �� CMZ DmDy_m�z U3 r W.�Z -Im-n t'm m� cn�Z 0D D C: OD ncn CO Cl) D �n-n C) n D; O C) -< u��r Z 7<co0o 7J�wmp-� DD�pcopco DD�tN Cn -{zm -� m DoZ r� s XPjcn> N(n D NoOzZ Cn� 00� Sk' wZ. -<Cn �Op �w�Z n C�ZNv- -I {Dn�'D2 a°iD CO. Ct)oNr� rr- C,>r D D oNm m ON Z: t°- �O mp oDD NN0 o> wD� � Or�N) m co�A�ND X DO��,Wmtrt mN-mM �OW�W�m r_G��coop T. 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N " (7 O G7 C7 c 00 MO.'yyrlNnwtj -�mDMNC -m w5mDNOZr-T1 0mxopoX D �X , rO-oX m�XQpDX -< a N N Z z n C) > wD -I D z °a �D 0 rr- D � �tO X D N 0 r w a� N w D p r�ocoN--# - es co �m�"CrN--1�t y C,m 0m 6>OZrt N m o p CD D v a��Ncn<� m r_"' CO CA X y �D�a) MC- -I N D V -°rnywmCw -A D � m Cn N3 �, m D �„ w N r Oj O C) JO n' co (] Cn cn c {-'cnnc.'m Da -�DDN�om mo -{>mDNzmm n�XOpc�i,X -<>m �"Xir,8x 00 DmX�0' X C-)> Cnzp�D ZZD ,,w>> oa��=0 co CO-= o>>cn0 �pO m> r , Z ca O D D 0 ;;, - m� coD � N G, v o n AN --I � c CIO j cc) m m ca co �+ cn m (Z CD cCnii �ti of a r p � D v N - rn ci m � U, G� 0 G� _ O C/) m D Nn m co Z ND N' m Mo �X C)� A 1>rn D cDi cow� cn D m Cn 0 �- n =O Q'Dc'coD=p m D �N - m rn �D m w� w w� NLrl cn o Z U7 G) N C� w � Cn 9 W" Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 10/16/03 Contact Person: Tom Ward Requesting Action:® Tvne of Document Needing Approval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ® Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Appropriate Areas ❑ Education ❑ Public Fitness ® Public Safety ® Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda wording: Consideration of the Special Event Liquor License Application submitted by American Legion, Post 58, 16837 E. Parkview Ave. The request is for a fund raiser scheduled for October 18, 2003 from 9:00 a.m. to 10:00 p.m. Staff Recommendation: Approve Fiscal Impact: No Purpose of Item and Background Information: To obtain Council approval for the special event liquor license. The application meets the security requirements, it complies with statutory and liquor license regulations, and it received a favorable recommendation from the Sheriffs office based on background investigation. At the manager's request in an attempt to reduce paper, full applications will not be reproduced for the packets. The front page will be included for representative purposes and the full application is available for review in the clerk's office. List All Attachments as Follows: Ward memo; MCSO memo; application front page Type(s) of Presentation: Consent Agenda Signatures of Submitting Staff: Dep tment Head C Town Manager / Designee Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Council DT: October 8, 2003 FR: Tom d, Director of Public Works RE: American Legion Special Event Liquor License The American Legion Post 58 is requesting Council approval of a special event liquor license for a fund raising event scheduled for October 18, 2003. Hours of operation are 9:00 a.m. to 10:00 p.m. The event will be held at the American Legion located at 16837 East Parkview Avenue. Although the special event liquor license is issued by the state, local approval by the Council is required. Public Works and the Maricopa County Sheriff's office have reviewed the application. It is consistent with previous applications. As of this application, there have not been any known alcohol violations to date which wpuld prohibit granting of this permit. In addition. the American Legion will have up to six security guards during the event and will post two security guards at the entrance and the exit to prevent alcohol leaving the permit area. Based on incident -free past events, statutory compliance, and the fund-raising nature of the event that benefits the community, staff recommends approval. EALiquor Licenses\Staff Memos\American Legion Event 10-18-03.doc MARICOPA COUNTY SHERIFF'S OFFICE To: TOM WARD DIRECTOR OF PUBLIC WORKS FOUNTAIN HILLS Memorandum From: GALEN REIFSCHNEIDER #960 ADMIN. COMMUNITY RELATIONS DEPUTY Subject: SPECIAL EVENT LIQUOR LICENSE I Date: October 8, 2003 M. Aroaio. Sheriff The purpose of this memorandum is to endorse the attached special event Liquor License Submitted by American Legion Post #58 of Fountain Hills. This issue will go before The City Council for final approval. During the October 18, 2003, starting at 9am and ending at I Opm time frame, the permit covers only the area specified in the application. As of this application, there have not been any known alcohol violations to date, which would prohibit granting of this permit. In addition, the American Legion Post #58 will have up to six security guards during the event and will post two security guards at the entrance and the exit to prevent alcohol leaving the permit area. Based on the above information, I recommend approval of this permit. 5000-135 R10-93 (MW97 v1.0 5/27/98) ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 (520) 628-6595 APPLICATION FOR SPECIAL EVENT LICENSE - Fee = $25.00 per day, for 1-10 day events only 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 GOVERNT NMELIC# 1. Name of Organization: 2. Non-Profit/I. R. S. Tax Exempt Number: YL la D .3 9 U e 3. The organization is a: (check one box only) A Charitable ❑ Fraternal (must have regular membership and in existence for over 5 years) ❑ Civic ❑ Political Party, Ballot Measure, or Campaign Committee ❑ Religious 4. What is the purpose of this event? }- u ill p r61 s Eta /'Dh r Location of the event: f� A77'A/ )VIE MV&1681019 9r, 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 6. Applicant: Limn") Last First Middle Date of Birth 7 7. Applicant's Mailing Address: 7(9.55 C13� &!�,614s Y.S'a 6"k Street �� City State Zip 8. Phone Numbers: (��y) g 7 a� (-*V .5-1.5w ( Odd) Site Owner # Applicant's Business # Applicant's Home # 9. Date(s) & Hours of Event: (Remember: you cannot sell alcohol before 10:00 a.m. on Sunday) r'v L;dpc' Si6y'ACQ Date Day of Week Hours from A.M./P.M. To A.M./P.M. Day 1: A —%-- b- SA T u12 imy q 1. � M ./: /Q n Day 2: Day 3: Day 4: Day 5: Day 6: Day 7: Day 8: Day 9: Day 10: Lic 010611/2000 *Disabled inividuals requiring special accommodations, please call (602) 542-9027 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 .. (602) 542-5141 (520) 628-6595 APPLICATION FOR SPECIAL EVENT LICENSE A service fee of $25.00 will be chargedfor'all dishonored checkso A•R.S. 44-6852 PLEASE NOTE: THIS DOCUMENT MIDST BE FULLY COMPLETED OR IT WILL BE RETURNED. **APPLICATION MUST BE APPROVED BY LOCAL GOVERNMDEPT USE ONLYENT LIC# 1. Name of Organization: A�,� n „) � L 1�-� 2. Non-Profit/I.R.S. Tax Exempt Number: A- 412O 39/ to 3. The organization is a: (check one box only) Charitable ❑ Fraternal (must have regular membership and in existence for over 5 years) ❑ Civic ❑ Political Party, Ballot Measure, or Campaign Committee ❑ Religious 4. What is the of this event? purpose T LI /U i S c /2 2T C Cirf OA) 5. Location of the event: 1(16 k3 % )_ ,q pk,V�cry Address of physical location (Not P.O. Box) City County Zip Applicant must be a member of the pualifving organization and authorized by an Officer Director or Chairperson of the nP4An17Atlnn nam Pri in ..... N1 6. Applicant: 1jl,..' Last First Middle Date of Birth 7. Applicant's Mailing Address: f 2�.5� �� i ,= t% 04Z Street City State Zip 8. Phone Numbers: (rev) 9,3 ?- Ifn ?S 7- l2 Site Owner # Applicant's Business # Applicant's Home # 9. Date(s) & Hours of Event: (Remember: you cannot sell alcohol before 10:00 a.m. on Sunday) _o :IV CLSi '1AGQ ate Day of Week Hours from A.M./P.M. To A.M./P.M. Day l : b S A T GI g i219'� Day 2: -1 Day 3: Day 4: Day 5: Day 6: _ Day 7: Day 8: Day 9: Day 10: Lic 0106 i t/2o0o *Disabled inividuals requiring special accommodations, please call (602) 542-9027 10. ' Has the applicant been convicted of a felony in the past five years, or had a liquor license revoked? ❑ YES X) NO (attach explanation if yes) 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 ,Q 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 rA1 ASK /t;O�3%�Ii (Attach additional sheet if necessary) Percentage /©& 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 this application, please contact the Arizona State Department of Liquor Licenses and Control for assistance. 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) # Police ❑ Fencing # Security personnel ❑ Barriers 16. Is there an existing liquor license at the location where the special event is being held? 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? (ATTACH COPY OF AGREEMENT) Name of Business R YES ❑ NO 9 YES ❑ NO 9'4Z 7- Sir S�1 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 is 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. �1.pt� �'T AtA FT." dj AJ r tr/� \ \ �-1 -` .� . ' • f ti r _ '• r /. �'~ � 1 ram/ ' .r / •. _} v 4 j—'''` {i�r:''.�I� i.� I �> I � �:V{ ♦ '✓' 4 , � /I� J 7,f 1`� ' ;� � `�\♦` r /`t' •1 ' � r 71, 7717 Al al ,� �f, , � fir• �• . � 1 C ' ice, -j i '� ✓ J /. � r ;�� ,. �' _ . 1 1 E t�.a... / ./-�•y``� / .u.\° , f (' ts. ,t ., �� /1� CJ•L I . � / i.. t � I, 7 \I � •� � , � I tr r i THIS SECTION TO BE COMPLETED ONLY BY AN OFFICER DIRECTOR OR CHAIRPERSON OF THE ORGANIZATION NAMED IN QUESTION #1 18• I, g922 'C-tH- �"� �C�ri k1n,9Aj , declare that I am an Officer/Director/Chairperson appo• g the (Print full name) applicant listed in Question 6, to apply on behalf of the regoing org . tion for a Special Event Liquor License. Xis �1,6&.4 1/1 q-16-0_31 k37- 4�V-7z. (Signature (Title/Position) (Date) (Phone #) r, l OFFICIAL SEAL of aii1,?Q1iC___Qounty of � '(�SANNA M. WORKMAN gin instrument was acknowledged before me j =` The fore o (O � `y � D-IerY Public -State of Arizona MARICOPA COUNTY MY Comm. expires Jan. 9, 20pg / �J y of ay of Month Month Year My Commission expires on" c3(�(0 19. I, 11Se/Ulyr_/ 16;_ , OO&IMAO) , declare that I am the APPLICANT filing this application as (Print full name) listed -in Question 6. I have read the application and the contents and all statements are true, correct and X dtANNA . WORKMAN Notary Public - State of Arizona MARICCPA COUNTY MY comm. expires Jan. 9, 200e My commission expires on: �n 00& (Date) State of ��= �J County of The foregoing ` trumen as acknowledged efore me d �w day of '� /-d 1 Da of Month Month Yeu (Signature of NOTARY PUBLIC) You must obtain local government approval City or County MUST recommend event & complete item #20. The local city or county jurisdiction may require additional applications to be completed and additional licensing fees before approval may he Prranted- Department Comment Section: (Employee) 11 LUK ULLU IJEFAKI'MENT USE ONLY APPROVED ❑ DISAPPROVED BY: (Date) (Title) (Date) AMERICAN LEGION POST #58 FOUNTAIN HILLS, ARIZONA 26837 E PARKVIEW AVE 480 '837 5958 85268 Sep-ra-w 2 4. ao©3 AR, i�1 A INN PA2a'/nEnli- Y -- �E/2 /mil �Uo2 iti.l CG�tJsb�- l 7 70 le o 3 .H (5- Per; oz) Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 10/16/03 Contact Person: Tom Ward Requesting Action:® Tvne of Document Needing Approval (Check all that_a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ® Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Annronriate Areas): ❑ Education ❑ Public Fitness ® Public Safety ® Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: Consideration of the Special Event Liquor License Application submitted by American Legion, Post 58, 16837 E. Parkview Ave. The request is for a fund raiser scheduled for November 14, 15 and 16, 2003 from 9:00 a.m. to 10:00 p.m. Staff Recommendation: Approve Fiscal Impact: No Purpose of Item and Background Information: To obtain Council approval for the special event liquor license. The application meets the security requirements, it complies with statutory and liquor license regulations, and it received a favorable recommendation from the Sheriffs office based on background investigation. At the manager's request in an attempt to reduce paper, full applications will not be reproduced for the packets. The front page will be included for representative purposes and the full application is available for review in the clerk's office. List All Attachments as Follows: Ward memo; MCSO memo; application front page Type(s) of Presentation: Consent Agenda Signatures of Submitting Staff: 114A J^�,'Zn XV/,2A/ De artment Head (]' -�`d� Town Manager / Designee Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Council DT: October 8, 2003 FR: Tom Yard Director of Public Works RE: American Legion Special Event Liquor License ' 4W, The American Legion Post 58 is requesting Council approval of a special event liquor license for a fund raising event scheduled for November 14, 15 and 16, 2003. Hours of operation are 9:00 a.m. to 10:00 p.m. The event will be held at the American Legion located at 16837 East Parkview Avenue. Although the special event liquor license is issued by the state, local approval by the Council is required. Public Works and the Maricopa County Sheriff's office have reviewed the application. It is consistent with previous applications. As of this application, there have not been any known alcohol violations to date which would prohibit granting of this permit. In addition. the American Legion will have up to six security guards during the event and will post two security guards at the entrance and the exit to prevent alcohol leaving the permit area. Based on incident -free past events, statutory compliance, and the fund-raising nature of the event that benefits the community, staff recommends approval. EALiquor Licenses\Staff MemosWmerican Legion Event Nov. 14-16, 2003.doc IVAP- MARICOPA COUNTY SHERIFF'S OFFICE To: TOM WARD DIRECTOR OF PUBLIC WORKS FOUNTAIN HILLS Memorandum From: GALEN REIFSCHNEIDER #960 ADMIN. COMMUNITY RELATIONS DEPUTY Subject: SPECIAL EVENT LIQUOR LICENSE I Date: October 8, 2003 M. The purpose of this memorandum is to endorse the attached special event Liquor License Submitted by American Legion Post #58 of Fountain Hills. This issue will go before The City Council for final approval. During the November 14`h thru 16'', starting at 9am and ending at I Opm time frame, the permit covers only the area specified in the application. As of this application, there have not been any known alcohol violations to date, which would prohibit granting of this permit. In addition, the American Legion Post #58 will have up to six security guards during the entire event and will post two security guards at the entrance and the exit to prevent alcohol leaving the permit area. Based on the above information, I recommend approval of this permit. 5000-135 R10-93 (MW97 v1.0 5/27/98) ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress ##150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 (520) 628-6595 APPLICATION FOR SPECIAL EVENT LICENSE Fee = $25.00 per day, for 1-10 day events only A service fee of $25.00 will be charged for all dishonored checks (A R S 44-6852) T1T T ♦ n1 1TA JLMZ VVUU1y1jrn1 MUZ-31 DE rvLLY UUMPLETPD 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: A — �D 3 9"d f/ 3. The organization is a: (check one box only) 0 Charitable ❑ Fraternal (must have regular membership and in existence for over 5 years) ❑ Civic ❑ Political Party, Ballot Measure, or Campaign Committee ❑ Religious 4. What is the purpose of this event? KWAL) JbA15' (Fe° iFig 5 Location of the event: /��3 r% �, �, �� 00k�� )9'-A! 14LL i 5-;2 ek' 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 6. Applicant: I �C LA-)OWAA1 Last First Middle Date of Birth 7. Applicant's Mailing Address: 17O S-3 (��r I cc-D2p F7v4, A Z YK2- S1 Street City State Zip 8. Phone Numbers: (zlk0) 32— ia� 5G22. Site Owner # Applicant's Business i1 Applicant's Home # 9. Date(s) & Hours of Eve�nt: (Remember: you cannot sell alcohol before 10:00 a.m. on Sunday) +LLU0 StcivllJa1- te Day of Week Hours from A.M./P.M. To A.M./P.M. Day 1: Zl %4i o,3 �iE' /�A y %'. /¢ In /Q ,, din Day 2: /�-- f_S = SATc�/'1n Day 3: Sc.1.rl�2C-� 4' ,4& Day 4: Day 5: Day 6: Day 7: W Day 8: Day 9: Day 10: Lic 0106 1112000 *Disabled inividuals requiring special accommodations, please call (602) 542-9027 ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5th Floor 400 W Congress #150 Phoenix AZ 85007-2934 Tucson AZ 85701-1352 (602) 542-5141 (520) 628-6595 APPLICATION FOR SPECIAL EVENT LICENSE Fee = $25.00 per day, for 1-10 day events only A service fee of $25.00 will be charged for all dishonored checks (A R S 44-6852) i1T T C'1T1 1Tl1rRT 1 LL` rxojpl 11 V l r . lrua 1lVl. V1VEVIEN 1 IVlu31 ISL' r-ULL Y UUMPLLTLD OR IT WILL BE RETURNED. DEPT USE ONLY **APPLICATION MUST BE APPROVED BY LOCAL GOVERNMENT LIC# 1. Name of Organization: �jyl E2 A Aj �, 6F6, l) PO.5 i ,$-8 2. Non-Profit/I. R. S . Tax Exempt Number: A- �O.3 �? d fl 3. The organization is a: (check one box only) 0 Charitable ❑ Fraternal (must have regular membership and in existence for over 5 years) ❑ Civic ❑ Political Party, Ballot Measure, or Campaign Committee ❑ Religious 4. What is the purpose of this event? FUV D ,E j L5-61a 5. Location of the event: tl" 137 �, �, �,� �w Address of physical location (Not P.O. Box) City County Zip Applicant mtLst be a member of the pualifving organization and authorized by an Officer, Director or Chairperson of the 6. Applicant: Last First Middle Date of Birth 7. Applicant's Mailing Address: /7a C14 LZF F-nvVL A-z gS-2-�ll Street City State Zip 8. Phone Numbers: (zlko 3 %- 54,?;Z (��) �. ?- S% ?312- 6 5422, Site Owner # Applicant's Business # Applicant's Home # 9. Date(s) & Hours of Event: (Remember: you cannot sell alcohol before 10:00 a.m. on Sunday) ate Day of Week Hours from A.M./P.M. Day l: o Day 2: Day 3: Am Day 4: Day 5: Day 6: Day 7: Day 8: Day 9: Day 10: Lic 0106 1112000 To A.M./P.M. *Disabled inividuals requiring special accommodations, please call (602) 542-9027 10. Has the applicant been convicted of a felony in the past five years, or had a liquor license revoked? ❑ YES X NO attach explanation if es 11. This organization has been issued a special event license for _ * 7 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 Off 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 (Attach additional sheet if necessary) Percentage 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 this application, please contact the Arizona State Department of Liquor Licenses and Control for assistance. 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) # Police ❑ Fencing # Security personnel ❑ Barriers 16. Is there an existing liquor license at the location where the special event is being held? 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? (ATTACH COPY OF AGREEMENT) Name of Business g YES ❑ NO X YES ❑ NO 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 is 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. - 41, '. � LC At,, A .'y 'Ho 06 V-11 - < IQ THIS SECTION TO BE COMPLETED ONLY BY AN OFFICER DIRECTOR OR CHAIRPERSON OF THE ORGANIZATION NAMED IN QUE STION #1 1 18. I, ANE77IF L • , declare that I am an Officer/Director/Chairperson app7inting the (Print full name) applicant listed in Question 6, to apply on behalf of the oregoing org tion for a Special Event Liquor License. x<C CLua 1n'g'yA6 9 // 03 �v �3� 6 5/z z- (Si Lure) (Title/Position) (Date) (Phone � State of Q—County of F�e� AL:Jan. The forego" instrument was acknowledged before me this ��o �A�kM. MAN Notary Public -Str zone MARICOPA TY My comm. expires. 200a L (jay of (' � %/ �2 p� U Day of Month Month Yea My Commission expires on: ��, aG (i b phi ' �� '/j'� . /j ki '' ,,,, �, ,,, 19. I, _ AL 'yWe-r t (Print full name) listed irq Question 6. M Z My commission expires declare that I am the APPLICANT filing this application as I have read the application and the contents and all statements are true, correct,and State of County of�%f;� OFFICIAL SEAL a foregoin trument was acknowledged before me this DEANN,A M. WORKMAN Notary Public - State of Arizona , �'�� day ofjfJ�f/C , MARICOPA COUNTY Month My comm. expires Jan. 3, 200e y Month Year (Date) (Signature of OTARY PUBLIC) You must obtain local government approval City or County MUST recommend event & complete item #20. The local city or county jurisdiction may require additional applications to be completed and additional licensing fees before approval may be granted 20. I, G-2 AV :3—lylr h 0 l r U , hereby r mmend this sp cial event application (Govenimenf Officia le on behalf of , �t h W Town or tgnature of O CIAL) (Date) FOR DLLC DEPARTMENT USE ONLY Department Comment Section: (Employee) (Date) ❑ APPROVED ❑ DISAPPROVED BY: (Title) (Date) ' ' II ..i � '�,�a ` Z '1,{I�'11 / X •'r +'. Jr �'•}^K 1 t I ' / /, far. I r'• 5' t•+F ,�r>41' '�`1`f, ,. _t ; IV ,tri i / .' , -` (•��ry `�- _,t ' "� 1 1 ! '' I iJrfr,%J% ' / ✓ , . ^•� i 1 r rg �i.�s t � � 1 � 1 S(on Post; 58 ounraut ill Ariz ira 8368 S.Otemb;� 28t 00 ' �t .f•1/ L1liLo^ J \ '�Ii•'•'.,`� r, Department gf iiquor,Lic�uses• Aamencan Legion Post SB a ees to sus !.. S: L} Sr 1 nd their \ Liqugr.} ; e; fOr, the Peso ^' '� ..t t/ t.1 , !W /q/ r�.j� 1`- f �'l. .� , •' \ r 1, f 1 .f -L. ; 1 r •.i i r��-Fk �./�� I- ry �:�c\ 1%/', '- J. 1�•� �. :1 II'i �i 1\-��f /tom k . N. Al: Mr:�KenBowm� lr�.�r. .,� �� { ^t �., .� �a , • �� t '{ .. Club rifanagei �y 1 , " ,\ ',, •'� \ .`1�Ct�_1 ; �... I \ '.•� .\ 1/I\' 4 i C. ; 1 •J + �li'' I -,'1, \ .. . LY Ili j L NL I 4}' ,•�r\�„�j, � -i�,1 ` ;. i � � > .tip. � I�✓- ,\� � � 1. ' f „Osr . -^,i' t \ /' I,j�•1 ,r 1. t "� - ,, ,' r t � Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Meeting Date: 10/16/03 Contact Person: Tom Ward Consent:® Regular:❑ Requesting Action:® TVpe of Document Needine Approval (Check all that anal ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ® Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Priority (Check Annronriate Areas): ❑ Education ❑ Public Fitness ® Public Safety ® Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: Consideration of the extension of premise submitted by Grapeables Fine Wines. The request is a fundraiser for the Veterans of Foreign Wars Post 7507 to benefit the Veterans Memorial located at Fountain Park on October 25, 2003. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: To obtain Council approval for the extension of premises submitted by Grapeables on October 25, 2003 starting at 9:00 a.m. and ending at 6:00 p.m. The permit covers only the area specified in the application. It received a favorable recommendation from the Sheriffs Office. At the manager's request in an attempt to reduce paper, full applications will not be reproduced for the packets. The front page will be included for representative purposes and the full application is available for review in the clerk's office. List All Attachments as Follows: Staff memo; Sheriff Office memo; application front page Type(s) of Presentation: Consent Agenda Signatures of Submitting Staff: D artment Head ° 3 Town Ma tiger / Designee Budget Review (if item not budgeted or exceeds budget amount) IM TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Council DT: October 8, 2003 FR: Tom and irector of Public Works RE: Grapeables Extension of Premise James Myczek has requested an extension of premise permit for Grapeables Fine Wines located at 12645 N. Saguaro Blvd., #9.The request is a fundraiser for the Veterans of Foreign Wars Post 7507 to benefit the Veterans Memorial located at Fountain Park on October 25, 2003. Grapeables will post security guards at the entrances/exits to prevent alcohol leaving the permit area. This is a routine request and meets the statutory requirements regarding security, access and liquor control. Public Works and the Maricopa County Sheriff's office have reviewed the application and recommend approval by the Council. EALiquor Licenses\Staff Memos\Grapeables Extension of Premise 10-25-03.doc °rrr In 0 MARICOPA COUNTY SHERIFF'S OFFICE Memorandum To: TOM WARD From: Galen Reifschneider #960 DIRECTOR OF PUBLIC WORKS ADMIN) COMMUNITY FOUNTAIN HILLS RELATIONS DEPUTY Subject: SPECIAL EVENT LIQUOR LICENSE Date: October 8, 2003 Sheriff The purpose of this memorandum is to endorse the attached special event Liquor License Submitted by Grapeables Fine Wines at 12645 N. Saguaro Blvd. of Fountain Hills. This event is a funding raiser for the Veterans Memorial. This issue will go before The City Council for final approval. During the October 25, 2003, starting at 9am and ending at 6pm time frame, the permit covers only the area specified in the application. As of this application, there have not been any known alcohol violations to date, which would prohibit granting of this permit. In addition, Grapeables will post security guards at the entrances/exits to prevent alcohol leaving the permit area. Based on the above information, I recommend approval of this permit. 5000-135 R10-93 (MW97 v1.0 5/27/98) ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5TH Floor �},. FOR OFFICE USE ONLY Phoenix ,AZ 85007-2934 400 W Congress #150 _-(602) 542-5141 Tucson AZ 85701-1352 Approved ❑ Yes ❑ No Date =.- (520) 628-6595 Approved by: APPLICATION FOR EXTENSION OF PREMISES/PATIO PERMIT �~ 'THIS APPLICATION MUST BE RETURNED TO THE DEPARTMENT OF LIQUOR Permanent change of area of service - Give specific purpose of change: Temporary change for date(s) o£ OCi a - a fn3 yy� 1. Licensee's Name: i/ t �I G 7+c A 'S A M� 5 Last i First Middle 2. Mailing Address: I i_ w RO Z gSZ(o 3. Business Name: P r✓ 8 L� S I V W f V 9 5 --- LICE^INSE #: 4. Business Address: i �' y r 511.9ClA R G #g ti'KA/1hIN �i C(s #11P-tccP.A Z City COUNTY State Zip 5. Business Phone: (� 1 � ' s Q '� 9 _ Residence Phone: ( t4g10 ) $ 1 (0 'Lfq T I rw 6. Do you understand Arizona Liquor Laws and Regulations? RYES ❑ NO 7. Have you received approved Liquor Law Training? ❑ No<�kl YES When? 8. What security precautions will be taken to prevent liquor violations in the extended area? 0 ern D Z. r- FENc& 0 tin Si�-cuPttTY 9. Does this extension bring your premises within 300 feet of a church or school? ❑ YES A11110 10. IMPORTANT: ATTACH THE REVISED FLOOR PLAN CLEARLY DEPICTING YOUR LICENSED PREMISES AND WHAT YOU PROPOSE TO ADD. After completing sections 1-9, take this application to your local Board of Supervisors, City Council or Designate for their recommendation. This recommendation is not binding on the Department of Liquor. il This change in premises is RECOMMENDED by the local Board of Supervisors, City Council or Designate: (Authorized Signature) (Title) (Agency) , hereby declare that I am the APPLICANT filing this application. (Print full name) I have read the application and the contents and all statements are true,correct and complete. o,M A Z Countyof M aA C0D C'_" The fo going instrument was acknowledged before me this F" (Signature My commission expires on: Investigation Recommendation its h�; Notary Public - A-, :, a � a Oo 4' Year MiIhCOPti Cau, 1 Day Month (Signature of NOTARY P C) Date: LIC 010505/2003 Disabled individuals requiring special accommodation, please (602) 542-9027. ARIZONA DEPARTMENT OF LIQUOR LICENSES & CONTROL 800 W Washington 5TH Floor FOR OFFICE USE ONLY Phoenix , AZ.- 85007-2934 <:(602)542-5141 400 W Congress #150 Tucson AZ 85701-1352 S5* . Approved ❑ Yes ❑ No Date (520) 628-6595 Approved by: APPLICATION FOR EXTENSION OF PREMISES/PATIO PERMIT 'THIS APPLICATION MUST BE RETURNED TO THE DEPARTMENT OF LIQUOR ❑ Permanent change of area of service — Give specific purpose of change: Temporary change for date(s) of: QCT- a G' a D 3 1. Licensee's Name: /} ME 5 W Lastp First Middle 2. Mailing Address: _1y (d y j� A) . �4 6 (, AR p I `;T lr; �(►L�S �Z gs y(ob city, State Zip 3. Business Name: _ E h O L 5 F t'AJ l: / W 1 ICI l; S LICENSE #: 4. Business Address: �' ti N Gl d R a # g ri? WA%Th 1 N ff l tts #,+P-t c:C P A k 7- gSy 6 $ (� City COUNTY r State Zip 5. Business Phone: ( 1 ) ( to - S q .� I Residence Phone: ( �T$� ) 8 I (o t f q l 6. Do you understand Arizona Liquor Laws and Regulations? WYES ❑ NO 7. Have you received approved Liquor Law Training? ❑ NO YES When? f 8. What security precautions will be taken to prevent liquor violations in the extended area? FENC & /lj IV n SAC uQ 1TY 9. Does this extension bring your premises within 300 feet of a church or school? ❑ YES -'NO 10. IMPORTANT: ATTACH THE REVISED FLOOR PLAN CLEARLY DEPICTING YOUR LICENSED PREMISES AND WHAT YOU PROPOSE TO Ap . After completing sections 14take this application to your local Board of Supervisors, City Council or Designate for their recommendG*his_Cmendation is not b' ding on the Department of Liquor. Thh cha s OMM DE a local Board of Supervisors, City Council or Designate: i9 Val �iun o unlait, (Authorized Signarm) (Title) (Agency) I, A M ES /AY 6 ZE t , hereby declare that I am the APPLICANT filing this application. ( rint full name) I have read the application and the contents and all statements are true,correct and complete. County of M OJ11 GOB C�� X� �'he fo. going instrument was acknowledged before me this (Signature of a :t) '? t": ' Nory Public - A Wa' �.M� 0100 ;j n 2 MYf1 wo Cow j Day Month Year My commission expires on: L9 - %, (Signature of NOTARY P C) Investigation Recommendation Date: uC0105052003 Disabled individuals requiring special accommodation, please (602) 542-9027. Sept. 25, 2003 Dana Burkhardt, Senior Planner Town of Fountain Hills 16836 East Palisades Blvd., Building C Fountain Hills, Arizona 85269 Re: Plaza Fountainside Chili Cook -off via Fax: 480-837-1404 Dear Mr. Burkhardt, Attached, please find the revised site plan and Temporary Use Permit application for the proposed Chili Cooking Contest event to take place at The Plaza Fountainside on October 25, 2003. The event is a fundraiser for the Fountain Hills Veterans of Foreign Wars Post 7507 to benefit the Veterans Memorial located at Fountain Park Fountain Hills, Az. Briefly, the event will have approx. 20 contestants that will be making chili from 9:00 a. m. to 6:00 p. m.. The event will be an extension of premise for Grapeables fine wines. The added area will be the plaza area that located on the east portion of the property. The contestants will be located along the eastern boundary of the plaza. The contestants will furnish their own cooking stoves and required fire extinguishers. The entrances to the event will be located at the northern and southern boundary of the plaza area. A temporary 4 foot high fencing will enclose the Plaza area. The exits for the existing stores will remain open allowing the normal circulation pattern for the stores to remain unchanged. The fencing consists of a light weight plastic and will be fastened to the existing tree stakes along the perimeter to eliminate any possible damage to underground irrigation lines. The area is fenced to discourage people from entering the park area due to the Parks department's over -seeding efforts in the park. There will be no reduction in available parking as a result of the event and the entrances will each have security guards during the 12:00 to 6:00 time period. Please call me with any questions you may have. Thank you in advance for assistance. Sincerely, Karen Reynolds Dilks 928-282-7080 05/18i2000 14:10 6023811981 DE RITO PARTNERS INC tQ PAGE 07 rb j �yx j kL 7� ......... C4 4L 10 0 ,low _ Veterans Memorial Fountain Park, Fountain Hills, Arizona The Fountain Hills Veterans Memorial is sponsored by the Fountain Hills Veterans of Foreign Wars, Post 7507 and the American Legion, Post 58. The Memorial's major elements include a large curved memorial wall housing the plaques from each of the wars, an entry wall, 9000 square feet plaza with a 155 howitzer surrounded by five plaques representing the five branches of the military. The success of this project depends upon the generosity of our business community, the residents of Fountain Hills and the neighboring communities. If you are interested in supporting this worth while project please mail your tax deductible donation to: Veterans Memorial Committee C/O VFW Post 7507, P. O. Box 20677, Fountain Hills, AZ 85269 Donor $0-49 _ *Friend $50-499_*Sponsor $500-2,499 _*Benefactor $2,500 or more (Please make check payable to VFW Post 7507) *Inscription to be on plaque at the Veterans Memorial For any question concerning the Fountain Hills Veterans Memorial please call Bruce Thulien at 480-836-2347 or e-mail: bthulien2cox.net Thank you for your support Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Town Manager Consent:® Regular:❑ Meeting Date: 10/16/03 Contact Person: Tim Pickering Requesting Action:® Tvpe of Document Needing Approval (Check all that a ❑ Public Hearing ® Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ® Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check ADDroDriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ® Human Service Needs ❑ Town Elections ❑ Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: CONSIDERATION of approving RESOLUTION 2003-63 regarding an Intrgovernmental Agreement (IGA) with Maricopa County for special transportation services. Staff Recommendation: Approve Fiscal Impact: Yes $50,750.00 Purpose of Item and Background Information: The Town currently has two IGA's for transportation related services. The agreement with Maricopa County Human Serivices Dept. has provided the 'Town with Special Transportation Services (STS) since 1995. STS provides cost effective transportation for low-income, elderly, and disabled residents for medial appointments, social servies, shopping trips, adult day care, recreational activities, and employment. STS vans are driven by Maricopa County employees with trips coordinated through the Fountain Hills Senior Center. The budget request was approved for fiscal year 2003-2004 in the amount of $50,750. Staff recommends approval of the one year IGA. List All Attachments as Follows: IGA between Maricopa County Human Services and the Town of Fountain Hills, Resolution 2003-63 Type(s) of Presentation: none Signatures of Submitting Staff: Department Head Town Manager / Designee Budget Review (if item not budgeted or exceeds budget amount) c:\documents and settings\bbender.puttland\local settings\temporary internet files\olk7a\agenda cover sheet sts iga.doc RESOLUTION NO.2003-63 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH MARICOPA COUNTY TO PROVIDE SPECIAL TRANSPORTATION SERVICES FOR FY 2003 — 2004. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Intergovernmental Agreement between the Town of Fountain Hills and Maricopa County to provide special transportation services for senior citizens and disabled individuals is hereby approved in the form attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to cause the execution of the Agreement. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, October 16, 2003. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: W.J. Ni 9196.001\Resolutions\2003-63 STS IGA res.doc 10-10-03 evelyn J. Binder; Town Clerk APPROVED AS TO FORM: 0'., 1 . � t -Andrew. McGuire, Town Attorney 04/27/2004 03:30 6025068789 HOLD FOR PICK UP CLERK OF THE BOARD BASKET PICK UP HUMAN SERV PAGE 02/10 OFFICIAL RECORDS OF MARICOPA COUNTY RECORDER HELEN PURCELL 2003-1619761 11/25/03 13:36 15 OF 15 cu►LLE►► CAPTION HEADING: Intergovernmental Agreement between Maricopa County and the Town of Fountain Hills for Special Transportation Services funding C-22-04-024-2 DO NOT REMOVE This is part of the official document I 04/27/2004 03:30 6025069789 HUMAN SERv PAGE 0411C INTERGOVERNMENTAL AGREEMNT BETWEEN THE TOWN OF FOUNTAIN FELLS AND MARICOPA COUNTY FOR SPECIAL TRANSPORTATION SERVICES THIS INTERGOVERNMENTAL AGREEMENT (this "Agreement") is entered into as of October ___-, 2003, between the Town of Fountain Hills, an Arizona municipal corporation (the "Town") and Maricopa County, a political subdivision of the State of Arizona (the "County"). The Town and the County are sometimes referred to collectively in this Agreement as the "Parties" and each individually as a "Party". A. The County provides special transportation services (the "Services") within the corporate boundaries of the Town. The Services include coordinated, free special transportation of elderly, low income and disabled residents for medical appointments, shopping, social service appointments, adult day care, recreational activities and employment as more particularly set forth in Exhibit A, attached hereto and incorporated herein by reference. B. The Town desires to contract with the County to provide the Services to residents. C. The County and Town are authorized to enter into, this Agreement pursuant to A uz. REv. STAT. § 11-952. NOW, THEREFORE, in consideration of the mutual promises and covenants and promises set forth in this Agreement, the parties hereby agree as follows: 1. Provision of Services. Subject to the terms and conditions set forth in this Agreement, the Parties agree the County will provide the Services to the Town. 2. Administration. The County shall be responsible for administering the Services, free of charge for qualified elderly, low-income and disabled residents of the Town. 3. Effective date. This Agreement shall become effective after it is (i) approved the governing bodies of both Parties, (ii) fully executed by both Parties and (iii) filed in the office of the Maricopa County Recorder. 4. Term. This Agreement shall commence on October 1, 2003 and shall remain in effect until June 30, 2004, unless earlier terminated by the Parties. Such termination shall take effect upon recordation of an instrument executed by both Parties. 5. Payment. The Parties expressly agree and understand that the total amount to be paid by the Town for the Services under this Agreement shall not exceed $50,735.83. 6. General Compliance. The County agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this Agreement. 04/27/2004 03:30 6025068789 HUMAN SERV PAGE 06/10 to the Parties as if such severance and reformation were not required. The Parties further agree, in such circumstances, to do all acts and to execute all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed. 11. No Third Party Beneficiaries. No person or entity shall be a third party beneficiary to this Agreement. 12. Integration. This Agreement constitutes the entire agreement between the Parties and supersedes any prior agreement, understanding, negotiation or representation regarding the subject matter of this Agreement. There are no representations, warranties, understandings or agreements other than those expressly set forth in this Agreement. The Parties expressly acknowledge and agree that any discussion outlines utilized during the course of negotiations do not constitute binding agreements of the Parties and shall not be utilized to interpret or construe any provision of this Agreement. 13. Further Assurances. Each Party agrees to perform such further acts and to execute and deliver such additional agreements, documents, acknowledgments and instruments as any other Party may reasonably require to consummate, evidence, confirm or carry out the transactions contemplated by this Agreement. 14. Amendment. The terms, conditions and representations of the Parties contained in this Agreement may not be orally amended, modified or altered. This Agreement may be modified only if done in writing, signed by the Parties, approved by their respective Council or Board and further approved in writing by their respective legal counsel. 15. Notice. All notices, claims, requests, and demands under this Agreement are to be in writing and served in person or via certified (return receipt requested) United States mail, postage prepaid, addressed as follows: If to the Town: Town of Fountain Hills Attn. Tim Pickering, Town Manager P.O. Box 17958 Fountain Hills, Arizona 85269 If to County: Maricopa County Human Services Department Attn: Melissa Bauer, Contract Specialist 234 N. Central Avenue Phoenix, Arizona 85004 or at such other address as shall be indicated in writing by the each Party. Service by certified mail will be deemed to occur on the postmark date borne by the return receipt. The Town and the County shall each have the affirmative duty to notify each other in writing when notice shall 9196.004\STS IGA.dx 10.9-03 04/27/2004 03:30 6025068789 HUMAN SERV PAGE 08/? The foregoing agreement between the Town of Fountain Hills and Maricopa County has been reviewed pursuant to ARC. REv. STAT. § 11-952, as amended, by the undersigned Town Attorney who has determined that it is in the proper form and is within the powers and authority granted to the Town of Fountain Hills. No opinion is expressed as to the authority of any parties, other than the Town of Fountain Hills to enter into this agreement. t 1 I iRA Andrew J. McGuire Town Attorney The foregoing agreement between the Town of Fountain Hills and Maricopa County has been reviewed pursuant to Anz. RL'v. STAT. § 11-952, as amended, by the undersigned County Attorney who has determined that it is in the proper form and is within the powers and authority granted to Maricopa County. No opinion is expressed as to the authority of any parties, other than Maricopa County to enter into this agreement. chard 9.0 9196.004\STS 1GA,doc 10.9-03 a County Attorney 04/27/2004 03:30 6025068799 HUMAN SERV PAGE 10/10 Scope of Service The County will be responsible for administering a Special Transportation Service program which provides assisted, door-to-door, transportation services to eligible residents of Fountain Hills for trips to medical appointments, dialysis, shopping, adult day care, social service appointments, and recreational activities at no cost to the participant. Monday - Friday, 8:00 am to 4:00 pm, excluding holidays. Residents are able to call and make a reservation from 7:00 am to 2:00 pm. Appointments may be within Fountain Hills' Town limits and to jurisdictions outside of the Town of Fountain Hills. The County will be responsible for operating a general public shuttle service between the Town of Fountain Hills and the Valley Metro bus stop located at the Mayo Clinic- The schedule of service and stops will be set and marketed to the public. '10 9196.0041STS IG A.doc 10-9.03 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 10/16/03 Submitting Department: Maricopa County Sheriffs Office and Rural Metro Fire Dept. Contact Person: Sergeant Barry Roska, Fire Chief Mark Zimmerman Consent:❑ Regular:® Requesting Action:❑ Report Only:® TvDe of Document Needing Approval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Appropriate Areas): ❑ Education ❑ Public Fitness ® Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: DEPARTMENT QUARTERLY REPORT provided by the Fire Department and Law Enforcement. Staff Recommendation: Fiscal Impact: No Purpose of Item and Background Information: Rural Metro and the Sheriffs Office will provide the first quarter reports for the 2003-2004 fiscal year (July 1, 2003 through September 30, 2003). List All Attachments as Follows: Rural Metro Powerpoint presentation, Maricopa County Sheriffs Powerpoint presentation Type(s) of Presentation: Powerpoint Signatures of Submitting Staff: Department Head Town Manager /Designee Budget Review (if item not budgeted or exceeds budget amount) e:\agenda cover sheet\agenda cover sheet fire and law eciforquarterlyc.doc a _ O 'i CL E O AV W E m `6 V L 0 N r � O L (� U U •Q � U 21 _ c w Z U b H ❑ ❑ /W 0 OM O '0 0 O O 0 O VO J I` (0 YJ Nt L'MJ ` l T N O O N T 'r. I U N (z }' CU a)0 Y CZ .� cz c � � •U (U � C J CL (z o U)U a' �. _ J Z CU Z U (n (n cn N w O N w w w C'3 2 U cn ■ ❑ ❑ ■ m ■ U N E N � t U) a) U � a� U- U- N a 2 2 LL U U U CD (n H cn cn m 0 Ln 0 LO 0 Ln 0 Ln 0 Ln O Ln It 't C) C) N CV T- Irl, CV O O CV cr CD T L J O cn FZ U N fn = C a) CZ O N cn c N a o C: a � a, m c2 E 2 w w ■ ❑ O � CY) N r O C6 IV &i &V r O (Y) O O N 4- cr T N O O N T N (1) Z_ N O � � N T T M N OD N N 00 ,%W U) � d CL Q N i O O � �cz (0 N N 0 O 00 c0 d' N O 00 c0 It N O N T T T T T C'7 O O N cr cn T N O O N cr N T O LO O LO O LO O CM N N T T- r.. ... V] Q N �, O • -4 � U cl MARICOPA COUNTY SHERIFF'S OFFICE To: Mr. Timothy Pickering Town Manager Town of Fountain Hills Subject: 2003 1" Quarter Report Memorandum From: Sergeant Barry Roska # 878 Maricopa County Sheriffs Office Administrative Sergeant Fountain Hills Substation Date: October 9, 2003 The following is a report compiled using statistical data for the 1st quarter of the 2003 F.Y. Each category represents data collected during the 1st three months of this fiscal cycle and compares it to the previous quarter and the same fiscal quarter from one year ago. An overall review of this 1st quarter, and the actions to be undertaken during the 2°d quarter of this fiscal cycle are provided. Proiects undertaken during this Quarter ➢ Worked with County Highway & Town Street Dept. to have traffic control signs erected around Fountain Hills Middle School ➢ Updated block watch forms and handouts and completed bid process to replace approx 117 block watch signs ➢ Secured location to hold monthly block watch captains meetings/training sessions ➢ Secured use of 3 additional radar units (bringing total to 5 radars used in town on any given shift) ➢ Contacted approx 100 local business to begin operation notification ➢ Completed research and obtained approval for pamphlet in regards to motorized bikes, scooters, skateboards ➢ Developed data base for tracking traffic citation and locations of traffic complaints/response ➢ Civilian code enforcement officers are using Sheriff's Office radio network for dispatch. Proiects to be undertaken/completed durine next Quarter ➢ First of monthly block watch meeting/training session set for Oct 22 ➢ Replace all 117 block watch sings in town ➢ Distribute information pamphlet about motorized bike/scooters in town ➢ Complete Set up of Teen Court program ➢ Develop information network using, news letters and news articles ➢ Launch web page with monthly crime stats, crime trends, crime prevention info ➢ Continue to develop information network between town businesses (crime trends, fraud practices, business security) Calls for Service: Current Ouarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003' Ma 2003 `' Jun 2003 991 1026 995 994 954 894 Ju12002 Aug2002= Sept 2002 913 895 869 5000-135 R10-93 (MW97 v1.0 5/27/98) Reports Taken: (criminal/non-criminal) Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 146 137 147 182 153 130 Jul 2002 Aug2002 Sept 2002 127 102 159 Burglaries:( commercial /residential) Thefts: Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 5 3 8 4 1 4 Jul 2002 Aug2002 Sept 2002 7 6 5 Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 9 11 6 23 13 9 Jul 2002 Aug2002 Sept 2002 9 10 21 Vehicle Burglaries: Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 13 6 5 1 16 3 Jul 2002 Aug2002 Sept 2002 8 2 14 Criminal Damage: Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 14 18 19 55 17 22 Jul 2002 Aug2002 Sept 2002 7 15 18 Stolen Vehicles: Current Quarter Previous Quarter Jul 2003 Aug2003 Sept 2003 Apr 2003 May 2003 Jun 2003 2 1 2 0 3 1 Jul 2002 Aug2002 Sept 2002 2 2 8 Traffic Accidents:( non -injury): Current Ouarter Previous Quarter Jul 2003 Aug2003 Sept 2003 A r 2003 May 2003 Jun 2003 13 13 14 11 13 16 Jul 2002 Aug2002 Sept 2002 4 12 11 Traffic Accidents: (injury) Current Quarter Previous Quarter Jul 2003 Aug 2003 Sept 2003 Apr 2003 May 2003 Jun 2003_ ; 3 2 2 6 5 5 Jul 2002 Aug2002 Sept 2002 9 2 6 Traffic Citations: Current Quarter Previous Quarter Jul 2003 Aug 2003 Sept 2003 Apr 2003 May 2003 Jun 2003 234 241 315 145 182 237 Jul 2002 Aug2002 Sept 2002 135 145 119 *AW Fountain Hills Rural/Metro Fire Department 1st Qtr 2003-2004 w ► Response volume and type ► Response times ► Drill hours ► Fire Prevention activities ► Public Education ► Items of interest r: 1 120 100 80 60 40 20 a 1st Qtr Response Time Comparison 1st Qtr Drill Hours Total per station - both shifts Sta 822 - 171 hrs; Sta 823 - 162.5 hrs 822 823 ® Knowledge ■ Skill Public Education Activities 1•t Monthly blood pressure checks at the Fountain View Village Retirement complex • Walk-in blood pressure checks at both fire stations • Walk-in station tours — average one per week • Friends and Family CPR classes each month • Participated in 9/11 remembrance ceremonies 4 Other 1st Qtr items of interest w 4 Transfer of Marshal's Dept. pick-up to Fire fleet and disposal of three older vehicles @ Brush truck construction/refurbish started Bi-annual OSHA Training and annual Fit Test Annual Business inspections started fk`.•;„„,,. ,m.t7�m«LSv. _._.am..,v,_.,,,, ..«. ...,. .. _„ ,,.«,«.,beau..-,,,..k-astasw...a.w,.,..�a, �,"F 5 RESOLUTION NO. 2003-64 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE TOWN OF FOUNTAIN HILLS EMERGENCY OPERATIONS PLAN. WHEREAS, the Town of Fountain Hills (the "Town") entered into an Intergovernmental Agreement (the "Agreement") with Maricopa County (the "County") relating to disaster and emergency management services on July 1, 2003; and WHEREAS, the Agreement requires that the Town develop, publish and distribute an Emergency Operations Plan ("EOP") that is complementary to and compatible with the County's EOP; and WHEREAS, the Mayor and Council of the Town of Fountain Hills desire to adopt an EOP that is complementary to and compatible with the County's EOP. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA as follows: SECTION 1. That the EOP is hereby approved in the form attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. That the Mayor is hereby authorized and directed to sign the Letter of Promulgation ordering the execution of the EOP in the form attached hereto as Exhibit B and incorporated herein by reference. SECTION 3. That the Town Manager is hereby authorized and directed to semi-annually update the contact information contained in Annex A, Appendix 8 of the EOP to ensure the continued accuracy of the information contained therein. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, October 16, 2003. FOR THE TOWN W. J. T4fclhols, May REVIE BY: Tim'G. bickering, Town Manager 9196.001\2003-64 EOP.vlres.doc 10-9-03-1 3: ATTESTED TO: iown Clerk APPROVED AS TO FORM: 0A_ I q)L,,,) A rew J. McGuire, Town Attorney a "0�at;s Town of FOUNTAIN HILLS FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN LETTER OF PROMULGATION In the event of a natural or man-made disaster or nuclear warfare affecting the Town of Fountain Hills, it is the responsibility of the Town government to protect lives and property by implementing plans and procedures developed for this purpose. This plan is published in support of the State of Arizona Emergency Operation Plan and the Maricopa County Emergency Operations Plan and complies with Arizona Revised Statutes Title 26, Chapter 2. The purpose of this plan is to provide direction and guidance to Town departments, personnel, and supporting agencies. It constitutes a directive to Town departments to prepare for and execute assigned emergency tasks to ensure maximum survival of the population and to minimize property damage in the event of a disaster. This plan is effective for planning purposes and preparations on receipt, and for execution when ordered by the Mayor. A copy of this plan has been filed in the office of the Town Clerk of the T�Wof Fountain Hills, under the provisions of the Arizona Revised Statutes, Section 26 ,aO7B. DATE: Mayo wn lerk c� 16836 E. Palisades Boulevard, Building A — P.O. Box 17958 — Fountain Hills, Arizona 85269 — (480) 837-2003-Fax (480) 837-3145 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN RECORD OF CHANGES , -HANG NUMBER DATE OF CHANGE DATE POSTED POSTED BY: August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN DISTRIBUTION LIST AGENCY NO. OF COPIES Mayor and Council 9 Town Manager 1 Town Manager Emergency Management Designee 1 Town Clerk 1 Rural/Metro Fire Department 2 Maricopa County Sheriff's Office District 4 Headquarters 2 Streets Department 1 Public Works Department 1 Chaparral City Water Company 1 School District 1 Sanitary District 1 Library 1 Maricopa County Department of Emergency Management 2 Arizona Division of Emergency Management 1 American Red Cross 1 Total 26 iii August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN TABLE OF CONTENTS PAGE LETTEROF PROMULGATION...................................................................................... i RECORDOF CHANGES............................................................................................... ii DISTRIBUTION LIST "' TABLEOF CONTENTS ................................... ............................................................. iv DEFINITIONS............................................................................................................... vi BASICPLAN..................................................................................................................1 ANNEX A - DIRECTION AND CONTROL................................................................9 APPENDIX 1 - EOC RESPONSE ORGANIZATION.........................................14 APPENDIX 2 - EMERGENCY RESPONSE ORGANIZATION ..........................15 APPENDIX 3 - LINE OF SUCCESSION...........................................................16 APPENDIX 4 - REPORTS.................................................................................17 TABA - EVENT LOG...................................................................................18 TAB B - SITUATION REPORT....................................................................19 TAB C - AFTER -ACTION REPORT.............................................................21 APPENDIX 5 - EVACUATION...........................................................................24 APPENDIX 6 - EMERGENCY DECLARATION PROCESS..............................25 iv August 2003 TAB A - DECLARATION OF A LOCAL EMERGENCY................................27 TAB B - DECLARATION THAT A LOCAL EMERGENCY NO LONGER EXISTS....................................................................28 APPENDIX 7 - DISASTER ASSISTANCE........................................................29 APPENDIX 8 - EMERGENCY TELEPHONE CONTACT LIST .........................33 ANNEX B - STORMS AND FLOODS.....................................................................36 ANNEX C — ELECTRICAL POWER DISRUPTIONS..............................................39 ANNEX D - HAZARDOUS MATERIALS INCIDENTS.............................................44 ANNEX E - FIRE AND EXPLOSION......................................................................50 ANNEX F- CIVIL DISTURBANCES........................................................................53 ANNEX G - AIRCRAFT CRASHES........................................................................56 ANNEX H - TERRORIST INCIDENTS....................................................................61 APPENDIX 1 — SITE CONTROL PLAN............................................................69 APPENDIX 2 - TOXICITY OF SELECTED CHEMICAL AND INDUSTRIAL AGENTS.............................................................70 ANNEX I - EARTHQUAKES...................................................................................71 ANNEX J - NATIONAL SECURITY EMERGENCIES.............................................73 APPENDIX 1 - INCREASED READINESS REPORTING (IRR) LOCAL STATUS FORM............................................................79 v August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN DEFINITIONS Anticipated Emergency: Those conditions, which because of their nature may require mobilization of emergency forces if conditions increase in severity. Civil Defense: Preparedness activities designed to minimize the effects on the population from an attack or peacetime disaster, to deal with the immediate emergency conditions, which would be created, and to carry out emergency repairs to essential facilities that have been destroyed or damaged. Emergency: A situation arising with or without warning, causing or threatening death, injury or disruption to normal life for numbers of people in excess of those which can be dealt with by the public services operating under normal conditions, and which requires special mobilization and organization of those forces. Emergency Operations Center (EOC): A central facility from which key officials can gather information, make decisions, coordinate and direct response and recovery efforts. Emergency Operations Plan (EOP): Multi -hazard, functional plan that treats emergency management activities generally, with the unique aspects of individual disasters contained in hazard -specific annexes. It describes the emergency organization and the means of coordination with other entities. It assigns functional responsibilities and details tasks to be carried out as accurately as permitted by the situation. Emergency Response Organization: Key personnel responding to emergencies and/or disasters composed of the Mayor and his executive group, which acts as advisors, and the operations group, which will staff and operate the EOC. Emergency Staff: Personnel responding to an emergency or disaster affecting the town of Fountain Hills. It is composed of town personnel, volunteer organization representatives and representatives from the contracted Fire and Law Enforcement, Sanitary District, School District and Chaparral City Water Company. Public Works Department: Encompasses all Town resources relating to the Street Department, Public Works Department, and Engineering Services. Extremely Hazardous Substance: Any of over 300 hazardous chemicals on a list compiled by the Environmental Protection Agency under Section 302 of Public Law 99-499 (SARA, Title III). vi August 2003 Evacuation: Government recommended or ordered movement of persons and property from a hazard area to an area of safety. Fire Department and Emergency Medical Services (EMS): Provided by contract with Rural/Metro managed by District Chief with contract administrated by Town Manager. Hazardous Materials: Substances or materials, which, because of their chemical, physical or biological nature, pose a potential risk to life, health, or property if they are released. Explosive substances, flammable or combustible substances, poisons, and radioactive materials are all classified as hazardous materials. Law Enforcement: Town's Police Services is provided by contract with Maricopa County Sheriff's Office (MCSO) managed by the District Commander with contract administrated by Town Manager Limited Emergency: An event which requires response of emergency forces over and above normal working functions, but which is manageable within local capability. Local Emergency: The existence of conditions of disaster or of extreme peril to the safety of persons or property which are beyond the capability of the Town to handle and will require the assistance of other political entities. Major Disaster: Any catastrophe which, in the determination of the President, causes damage of sufficient severity and magnitude to warrant federal assistance to supplement the efforts of State and local governments and disaster relief organizations in alleviating damage, loss, and hardship. Town Manager Emergency Designee: The person rgsponsible for developing and maintaining plans and programs to respond to major emergencies and disasters. Radiological Defense (RADEF): The detection, measurement, and exposure control of the radiation hazard that can be expected in the event of a nuclear attack upon the United States. Radioactive Material: Material which emits radiation (subatomic particles or pure energy) in the process of stabilization. Response: The efforts to minimize the risks created in an emergency by protecting the people, the environment, and property, and the efforts to return the scene to normal pre -emergency conditions. Standard Operating Procedure (SOP): A checklist or set of instructions, having the force of a directive, which spells out in detail the steps that need to be taken to accomplish a task. State of Emergency: The duly proclaimed existence of conditions of disaster or extreme peril to the safety of persons or property in the State of Arizona which are or are vii August 2003 likely to be beyond the control of the services, personnel, equipment, or facilities of any single county, city or town, and which requires the combined efforts of the state and the political subdivision. Threshold Planning Quantity: The minimum amount of an extremely hazardous substance, which must be reported under the provisions of Section 302 of Public Law 99- 499 (SARA, Title III). Weather -Related Definitions: WATCH: Severe weather or flash flood WATCH means that conditions are such that a storm or flood of significant magnitude is likely to occur. Persons within the area alerted should take precautionary steps. WARNING: Announcement that threatening conditions (thunderstorm, high winds, tornado, flooding, dam or levee failure) are occurring or are imminent, and are expected to have a harmful effect upon the area alerted. Persons within the area must take immediate steps to protect themselves. URBAN FLOOD ADVISORY: Notification that heavy rains capable of causing ponding or heavy runoff in low-lying, poorly drained areas such as roadways and washes are imminent or in progress. SEVERE WEATHER STATEMENT: Used to report severe weather, to cancel all or part of a warning and to provide follow-up information on a warning in effect. REDEFINING STATEMENT: Issued after a tomado/severe thunderstorm watch, expressed in terms of whole counties with cities and well-known landmarks included. viii August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN BASIC PLAN I. SITUATION A. The Town of Fountain Hills is vulnerable to the adverse effects of natural, technological, or national security disasters, which could result in loss of life, property damage and social disruption. 1. Flooding, mostly due to early evening thunderstorms during the monsoon season (July to September), is the most frequent severe natural hazard. 2. Windstorms, to include those with wind speeds up to tornado strength, usually occur in conjunction with the monsoon season thunderstorms. Straight-line winds also represent a significant hazard. 3. The transportation, storage and use of extremely hazardous substances and other toxic chemical materials within Town boundaries provide an extreme potential for disaster. 4. While the earthquake risk in Maricopa County is extremely low, some effects from earthquakes in more vulnerable parts of the State might be felt. 5. Air crashes involving wide -body or smaller privately -owned aircraft, agricultural crop dusting aircraft, and military jets from Luke AFB represent a significant hazard. 6. Dust storms, wildland fires, explosions, and industrial or transportation accidents may also cause an emergency or disaster. B. Within its governmental forces, the Town has the capability to respond successfully to most emergency situations. If necessary, it can request support from the State, County, surrounding communities, and the private sector. C. Fountain Hills Law Enforcement, provided by contract with MCSO, is responsible for all police functions in the community. All references to Law Enforcement in this plan refer to Fountain Hills Law Enforcement under the direction of the MCSO District Commander. D. The Fountain Hills Fire and Emergency Medical Services provided by contract with the Rural/Metro Fire Department is responsible for all fire and fire related functions in the community. All references to the Fire Department in this plan Basic Plan 1 August 2003 will refer to the Rural/Metro Fire Department. E. Sewer services for the Town of Fountain Hills are provided by the Sanitary District, which is governed by a Board elected by district residents. F. The Chaparral City Water Company (CCWC) is contracted to provide water to the Town of Fountain Hills. II. MISSION To provide emergency response and an expeditious recovery from a serious emergency or disaster situation that would cause conditions hazardous to life and property in the Town of Fountain Hills. III. EXECUTION A. Concept of Operations The Mayor is responsible, by law, for directing and controlling disaster operations. Heads of Town departments and agencies are responsible for emergency functions as specified in this plan. Emergency operations will be conducted by Town forces supplemented by volunteers. 2. The Emergency Operations Center (EOC) will be activated at the discretion of the Mayor or a designated representative when an emergency reaches such proportions that it requires a closely coordinated effort on the part of leading Town officials. 3. Mutual aid agreements will be implemented when effective response to the disaster is beyond the capabilities of Town resources. 4. The Mayor may proclaim a local emergency, as defined in Section 26-311, Arizona Revised Statutes, when an emergency situation is, or is likely to be, beyond the response capability of the Town, and the combined efforts of the State, County and Town are considered essential for an effective response. 5. This plan covers both nuclear war and peacetime emergencies. The Basic Plan and Annex A provide guidance for handling all types of emergencies, while the remaining annexes deal with specific types of emergencies and related topics. This plan will be reviewed annually by the Town Manager Emergency Managements Designee and updated as required. Basic Plan 2 August 2003 Organization 1. All Town employees are included in the Town emergency response organization. Departments will conduct emergency operations under the control of their respective chiefs or directors. 2. The emergency response organization is made up of two groups, the executive group and the operations group: See page 14, Annex A, Appendix 1. 3. During emergency conditions all entities responding as members of the emergency response organization will fall under the direct leadership of the Mayor or his designated representative throughout the duration of the situation. 4. The emergency response organization will tailor personnel for each contingency to ensure an effective response to that particular emergency. 5. Volunteer organizations are authorized to augment the Town emergency response organization. Tasks. The following tasks, when appropriate, apply to all major emergencies. Specific tasks for each hazard are assigned in the appropriate annexes. 1. Mayor a. Direct activation of the Emergency Response Organization and the EOC when conditions so warrant. b. Authorize information releases to the news media. C. Establish guidelines for the preservation of vital Town records. d. May, by proclamation, declare a local emergency to exist due to fire, conflagration, flood, earthquake, explosion, war, bombing, or any other natural or man-made calamity or disaster or in the event of the threat or occurrence of riot, rout or affray or other acts of civil disobedience which endanger life or property within the Town. After declaration of such emergency the Mayor may govern by proclamation and impose all necessary regulations to preserve the peace and order of the Town, including but not limited to: (1) Imposition of a curfew in all or any portion of the Town. (2) Ordering the closing of any business. (3) Closing to public access any public building, street or other public Basic Plan 3 August 2003 place. (4) Calling upon regular or auxiliary law enforcement agencies or organizations within or without the political subdivision for assistance. (5) A majority of the council may terminate the exercise of such emergency powers by the Mayor. 2. Town Manager a. Direct and coordinate emergency operations. b. Assist and act as chief advisor to the Mayor. c. Keep the Mayor informed of situation status and resource status. d. Implement emergency plans. e. Assess resource needs and order, deploy, and release needed resources. f. Serve as purchasing director and approve all purchases of goods and services made by the Town during emergency or disaster situations. g. Manage the recovery effort. h. When activated, supervise activities of the EOC staff. 3. Town Manager Emergency Management Designee a. Develop, coordinate and maintain the Town of Fountain Hills Emergency Operations Plan. b. Maintain a listing of resources available to respond to an emergency. c. Comply with state and county emergency plans and procedures. d. Maintain the Emergency Operations Center (EOC) in a condition to permit activation with minimal notice and, when activated, assist the Town Manager in supervising activities of the EOC staff. e. Coordinate requests for critical resources and mutual aid. 4. Law Enforcement a. Provide a representative with appropriate communication equipment Basic Plan 4 August 2003 for assignment to the Emergency Staff at the EOC. b. Provide on -site direction and control of local emergencies. C. Receive and disseminate warning of imminent and actual hazardous conditions. d. Direct and maintain control over the evacuation of affected areas and maintain security of those areas. e. Provide prompt and accurate information from field forces to the EOC Staff. f. Provide security for vital government emergency facilities and essential private facilities. g. Provide traffic control at emergency sites. h. Provide ingress and egress routes for emergency vehicles responding to the disaster. i. Provide a MCSO Public Information Officer if emergency dictates. 5. Fire Department a. Provide a representative with appropriate communication equipment for assignment to the Emergency Staff at the EOC. b. Extinguish fires. c. Conduct light rescue operations/assist with heavy rescue operations. d. Provide emergency medical response. e. Respond to incidents involving hazardous materials. f. Provide prompt and accurate information from field forces to the EOC Staff. g. Serve as the back-up communication system. h. Provide radiological monitoring for personnel protection and reporting. i. Coordinate ambulance service. j. Coordinate decontamination with the County EOC. Basic Plan 5 August 2003 k. Provide on -site direction and control of local emergencies. I. Will provide Rural/Metro Public Information Officer if emergency dictates. 6. Public Works Department a. Assist Law Enforcement and Fire Department in traffic and area control, perimeter security, rescue and evacuation missions, and otherwise as needed. b. Maintain emergency facilities, to include backup power sources and sanitation. c. Perform emergency repair of roads. d. Assist with heavy rescue operations. e. Remove debris from roads. f. Provide potable water supplies. g. Furnish and place road barricades. h. Provide lights for night operations. i. Provide decontamination assistance, as needed. j. Provide information relating to location of utilities, dams, and structures. 7. Welfare Department. The Town of Fountain Hills does not have a Welfare Department. During a disaster, this function will be coordinated through the Maricopa County Emergency Operations Center. Disasters may require the County EOC to perform the following actions: a. Serve as liaison to the Red Cross for emergency lodging, feeding, clothing and other services. b. Serve as liaison with other social services groups. C. Provide support for shelter managers. 8. Health Department. The Town of Fountain Hills does not have a Health Basic Plan 6 August 2003 Department. During a disaster, this function will be coordinated through the County EOC. 9. Sanitary District. During a disaster or emergency, District personnel and equipment will fall under the direction of the Town Manager. The Board of Directors will provide a representative to the EOC's Executive Group to serve as liaison between the Board and Town. A representative will also serve on the EOC Operations Group. 10. Water. The CCWC will provide a representative to the EOC Staff. The CCWC will also provide a representative to the EOC's Executive Group to serve as liaison between the Board and Town. During emergency and or disaster situations, the CCWC will also fall under the direction of the Town Manager. The CCWC will maintain a water priority system to ensure the availability of water for drinking, fire fighting and normal usage. Should the need arise, they would also be responsible for the supply of an alternate source of potable water. The CCWC will also ensure a representative is available to respond to the water plant should the need arise. D. Support 1. Requests for assistance will be coordinated through the Maricopa County EOC. 2. The Maricopa County Public Health Department will implement public health procedures to ensure safety of food and water, sanitation, vector control, epidemic disease control, animal control, and immunizations throughout the county, including Fountain Hills and other incorporated municipalities 3. Maricopa County Medical Examiner normally will: a. Provide for the identification and care of deceased casualties, determine the cause of death, inventory and protect personal effects, and locate and notify the next of kin. b. As necessary, acquire suitable morgue facilities, embalming supplies, body bags, refrigerated vehicles and other items incidental to a mass fatality situation. 4. Central Arizona Chapter of the American Red Cross, as part of their Charter, will normally: a. Provide care to disaster victims and displaced persons, to include shelter, feeding, clothing, and medical care. b. Assist individuals and families in recovering from the disaster, to Basic Plan 7 August 2003 include casework services, home building and repair, furnishings, medical and nursing care, occupational supplies, and equipment. c. Provide psychological/mental health assistance to disaster victims. d. Conduct private sector damage assessments. e. Feed emergency workers in the field. f. Provide training for volunteer agencies. 5. Salvation Army is prepared to: a. Provide care to disaster victims and displaced persons, to include shelter, feeding, clothing, and medical care. b. Assist individuals and families in recovering from the disaster to include casework services, home building and repair, furnishings, medical and nursing care, occupational supplies, and equipment. IV. DIRECTION AND CONTROL: See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS A. Emergency Purchases 1. During emergencies, which require purchases of supplies or services when time is of the essence, the Mayor shall be empowered to authorize the purchasing director to purchase goods or services. 2. Financial obligations in excess of $20,000 will be assumed only with the prior approval of the Mayor or the Vice -Mayor, then followed by the line of succession specified in Annex A, Direction and Control. B. Documentation to substantiate reimbursement for emergency expenditures, including both time and materials, will be maintained by each involved department or agency to validate their activities should reimbursement become available. C. Where is it possible, normal administration procedures will be followed. D. The EOC Staff is modular and is capable of partial or full implementation. Basic Plan 8 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL I. SITUATION A. The Fountain Hills Emergency Operations Center (EOC) is located in Law Enforcement and Courts Building, at 16836 East Palisades Boulevard. The alternate EOC will be located in Fire Station # 1, at 16426 East Palisades Boulevard. B. Many of the hazards, which exist in or about the Town, have the potential for causing disasters of such magnitude as to make centralized command and control desirable or essential. C. The public will demand information about the emergency and instructions on proper survival/response actions. Activation of the Emergency Staff and the EOC is the most effective method for providing this information. II. MISSION To provide direction, control, and coordination of Fountain Hills forces and resources during and following periods of emergency. III. EXECUTION A. Concept of Operations 1. The Town Manager will direct and control emergency operations. 2. A local emergency may be declared by the Mayor. The services, resources and facilities of existing Town departments will be utilized to perform emergency tasks and functions. The Mayor or designated representative may request outside assistance, whether from political jurisdictions or from organized volunteer groups. Outside assistance will be requested and used only as an addition to existing Town resources, and only when the emergency situation threatens to extend beyond the Town's response capabilities. 3. Departments with field forces will establish an on -site command post from which to control their operations and coordinate with other forces. 4. When a Local Emergency is proclaimed, the Mayor may govern by Annex A 9 August 2003 proclamation. 5. The EOC will be staffed to enable 24-hour operations. 6. During emergencies of large-scale and of extended durations, additional personnel for the EOC are provided by departments indicated in Appendix 1, EOC Response Organization. 7. Critical Incident Stress Debriefing (CISD) will be an integral part of all disaster operations. The Arizona Critical Incident Stress Management Network can be contacted to perform peer support and psychological debriefing services to lessen the effects of excessive stress on disaster response personnel. B. Natural and Technological Disasters 1. Town departments are assigned responsibilities for providing assistance to individuals suffering injury, property loss or damage, and for govemment emergency services that may be required when the Town is in a State of Emergency. 2. Information concerning projected adverse weather conditions that might cause flooding will be relayed to the Central Warning Point. 3. The EOC Staff assumes responsibility for coordination of available resources in the event of a disaster that exceeds the capabilities of the Town. C. Tasks 1. Town Manager Emergency Management (Designee) a. Activate the Emergency Staff and the Emergency Operations Center (EOC) when directed by the Mayor. b. Assist the Town Manager to supervise the activities of the EOC. C. Direct mobilization and employment of field forces. d. Effect liaison and coordination with adjoining communities and the Maricopa County EOC. e. Keep the Mayor apprised of the situation. f. Recommend to the Mayor a Declaration of Emergency if the situation warrants. See Appendix 6, Emergency Declaration Process, to this annex. Annex A 10 August 2003 2. EOC Staff a. Coordinate the activities of field forces. b. Collect, evaluate, respond to, and disseminate essential information. c. Maintain logs, displays, and records of essential information. d. Collect and consolidate data from field forces and prepare situation reports and summaries for periodic briefings, after -action reports and forwarding as required. e. Receive and process requests for resources from field forces. f. Notify the Fountain Hills Unified School District of any major emergencies, which may affect its schools or transportation routes. IV. DIRECTION AND CONTROL F0 Communications 1. The Town government will utilize law enforcement and fire communication nets that are in use on a daily basis. Fountain Hills Law Enforcement is responsible for the coordination and use of these communication nets during emergency situations in which the EOC is activated. 2. Law Enforcement will now be utilizing the 800 MHz system. The primary channel for them will be 859.7625. As a back-up to the 800 MHz system, law enforcement will continue to use UHF and VHF nets (NOTE: 127.3 Hz Transmit Tone is required on all Sheriff Nets) Alternate Sheriff VHF Search Channel Transmit Frequency 158.910 MHz Receive Frequency 159.090 MHz Annex A 11 August 2003 3. Fire Nets (NOTE: 114.8 Hz Transmit Tone is required on all Rural/Metro Nets) Primary Rural/Metro Duplex Transmit Frequency 153.890 MHz Receive Frequency 154.370 MHz Secondary Rural/Metro Simplex Transmit/Receive Frequency 154.370 MHz On -Scene Rural/Metro Simplex Transmit/Receive Frequency 154.400 MHz B. Warning 1. The Fountain Hills Law Enforcement Agency will act as the Central Warning Point. It will notify the Mayor, Town Manager and Public Safety Director of weather watches, weather warnings, alerts and attack warnings. 2. The public will be advised to listen to commercial radio and TV broadcasting stations that should disseminate emergency warning and information. C. EOC Supplies 1. Town Map (large and small scale) 2. Maricopa County Map 3. Metropolitan Phoenix Area Map (optional) 4. Arizona State Map 5. Bulletin Board 6. Emergency Forms 7. Operation Status Board 8. SITSTAT (Situation Status) Board 9. RESTAT (Resource Status) Board 10. Water Maps 11. Wastewater Maps Annex A 12 August 2003 12. Storm Drain Maps 13. Drainage Maps/Floodplain Maps D. Continuity of Government 1. The lines of succession of elected officials and the Town staff are shown in Appendix 3, Line of Succession, to this annex. 2. Preservation of Records a. Important Town records must be preserved to ensure continued operation of Town government during a major emergency or reconstitution of Town government following such an emergency. b. Procedures for preservation of vital Town records will be prescribed in a Standard Operating Procedure (SOP) that will be filed in the Town Clerk's Office. V. ADMINISTRATION AND LOGISTICS A. Reports. See Appendix 4, Reports, to this annex. B. Forms. Forms to accommodate message traffic, event logs, and various reports are maintained in the EOC. Annex A 13 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 1 - EOC RESPONSE ORGANIZATION The Emergency Response Organization will consist of two groups, the Executive Group and the Operations Group. Emergency Response Organization EXECUTIVE GROUP Mayor Vice -Mayor Town Manager Sanitary District Board Representative Chaparral City Water Company Representative Fire and/or Law Enforcement Representative School District Representative Town Manager Emergency Management Designee OPERATIONS GROUP Administration and Finance Department Representative Fire Department Representative (Rural/Metro) Law Enforcement Representative Sanitary District Representative Chaparral City Water Company Representative Radiological Defense Officer* Public Works Department Representative Red Cross Representative ** Parks and Recreation Representative * For emergencies involving nuclear warfare or radioactive materials only. Instructions will be received from County EOC. ** If no Red Cross representative is available, coordinate support with the Red Cross representative at the County EOC. Appendix 1 to Annex A 14 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 2 - EMERGENCY RESPONSE ORGANIZATION VICE -MAYOR LEGAL TOWN MANAGER FIRE REP MAYOR SANITARY DIST BOARD SCHOOLREP PIO TOWN MANAGER EMERGENCY MANAGEME TOWN DESIGNEE MANAGER WATER CO TOWN MANAGER EMERGENCY MNGMNT DESIGNEE LAW ENFORCEMENT FIRE PUBLIC WORKS SANITARY DISTRICT WATER CO ARC PARKS & REC ADMIN & FINANCE Appendix 2 to Annex A 15 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 3 - LINE OF SUCCESSION 1. The line of succession of the elected officials is: a. Mayor b. Vice -Mayor (Council Member) c. Remaining Council Members in order of seniority. 2. The line of succession of the Town staff is: a. Town Manager b. Public Works Department Director c. Parks and Recreation Director d. Finance 3. The line of succession for department heads is according to the operational procedures established by each department. Appendix 3 to Annex A 16 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 4 - REPORTS 1. Event Log. An event log will be used to record significant events, status reports, event descriptions, and actions taken by the EOC Staff. See Tab A to this appendix. 2. Situation Report a. See Tab B to this appendix. b. A Situation Report will be prepared by the Town Manager Emergency Management Designee at the end of each work shift. One copy will be sent to the Mayor, and a second copy will be sent to the County EOC. The report to the County EOC may be submitted by voice telephone, FAX, or hard copy. C. Initial reports may be fragmentary and by telephone if the Mayor is not at the EOC. When conditions stabilize, complete reports will be provided. 3. After -Action Report a. See Tab C to this appendix. b. Within five days after emergency operations are concluded, each involved department will submit the After -Action Report to the Town Manager Emergency Management Designee. c. The report will include estimates of operational costs if actual cost data is not yet available. Subsequent reports will be made as requested and as refined data becomes available. 4. Special Reports. These reports may be requested by the Mayor. • Appendix 4 to Annex A 17 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 4 - REPORTS TAB A - EVENT LOG Date Page Name/Agency ITEM NO. TIME TO FROM SUMMARY Tab A to Appendix 4 18 August 2003 to Annex A FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 4 - REPORTS TAB B - SITUATION REPORT ITEM 1. Report No. 2. From 3. To 4. Nature of Emergency 5. Location of Emergency 6. Date/Time of Occurrence 7. Casualties: a. Injured 8. Property Damage 9. Actions Taken (Details in Remarks) a. Declaration of Emergency b. Evacuation 10. Assistance Required a. Personnel: Skill/Number b. Equipment: Type/Number Date b. Dead Time c. Homeless c. Movement of People d. Movement of Supplies Tab B to Appendix 4 19 August 2003 to Annex A c. Other Resources 11. Is Area Accessible? 12. Communications Available 13. Actions Taken By: a. American Red Cross b. Salvation Army c. Others 14. Remarks Tab B to Appendix 4 20 August 2003 to Annex A FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 4 - REPORTS TAB C - AFTER -ACTION REPORT 1. Department/Activity Making Report 2. Period of Emergency Operations 3. Nature of Emergency 4. Departments or Jurisdictions which you supported: a. I C. S. Nature of Your Emergency Support Function 6. Personnel: a. Total Participating: b. Total Work Hours: Regular c. Number Injured: d. Estimated Cost to Department: Tab C to Appendix 4 to Annex A 21 761 e. f Overtime: Estimated Hours Lost August 2003 7. Resources Expenditures: a. Department -owned: Estimated Total $ b. Emergency Requirements Approved by Town Manager. Estimated Total $ c. Description of Expended Materials 8. Damage or Loss of Town -owned Property: Estimated Total $ Property Description: Tab C to Appendix 4 22 August 2003 to Annex A 9. Summary of Activities Related to Your Emergency Support Function: Signed: Department Representative Date Tab C to Appendix 4 23 August 2003 to Annex A FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 5 - EVACUATION 1. The EOC Staff recommends and the Mayor or designated representative initiates evacuation of portions of the Town affected by disaster. 2. Types of Evacuation: a. VOLUNTARY: Persons perceive the hazard and leave the area of their own volition. No official assistance is required. b. RECOMMENDED: Upon declaration of a Local Emergency, endangered persons are advised to evacuate to safe areas. Normally, emergency shelter and feeding are provided. Assistance may be requested or required. 3. Law Enforcement will assume responsibility for evacuation operations. Specific tasks are as follows: a. Warn residents in the area to be evacuated. b. Establish an on -site command post for control of agencies authorized to operate in the affected area. c. Coordinate available transportation to move evacuees and establish evacuation routes. d. Provide traffic control in and near the affected area. e. Provide security for the evacuated area, with emphasis on the protection of essential facilities. f. Assist persons with disabilities and any other citizens that need assistance in the evacuation process. g. Designate pickup points for persons lacking transportation. 4. The EOC Staff will coordinate the opening of congregate care shelters with the American Red Cross. Appendix 5 to Annex A 24 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 6 - EMERGENCY DECLARATION PROCESS State law, county resolution, Town resolution and this plan empower the Town government to enact emergency legislation. Among the powers authorized for inclusion in such legislation is the power to declare a Local Emergency. A declared Local Emergency permits Town government to set aside normal procedures of government in deference to the emergency. 2. The written declaration (See Tab A, Declaration of a Local Emergency) is the vehicle by which assistance can be obtained from State and Federal agencies. The declaration should be issued upon receipt of sufficient supportive information and forwarded to the Maricopa County. 3. If the emergency is of sufficient magnitude and all County resources are expended, the Maricopa County Department of Emergency Management will recommend to the Chairman of the Board of Supervisors that the County declare an emergency. The County's emergency declaration will then be forwarded to the Arizona Division of Emergency Management with a request that the Governor declare a State of Emergency. Financial and other public assistance, but no individual assistance, may be made available when the Governor declares a State of Emergency. 4. The Governor may request a Presidential Declaration of a Major Disaster if conditions so warrant. Such a request will be based on a damage assessment and will indicate the degree of commitment of local and State resources in attempting to cope with the situation. 5. When a Major Disaster is declared by the President, the Federal Emergency Management Agency (FEMA) will administer the disaster relief program in the affected area. Two major categories of benefits may be made available -- individual assistance and public assistance. 6. Instructions. a. The emergency declaration process starts for the Town of Fountain Hills when the Mayor determines that all available resources have been exhausted or will not be sufficient to provide for the safety and well being of the residents of the Town. b. A declaration of emergency may be submitted through the Maricopa County Appendix 6 to Annex A 25 August 2003 EOC to the Arizona Division of Emergency Management asking the Governor to submit a request to the President to declare a major disaster or emergency area within the State. The form at Tab A to Appendix 6 to Annex A may be used to submit this declaration. c. The declaration should be submitted to the County through the most expedient method. The Town may FAX the form to the County at 602-275-1638. If time is of the essence, the Mayor may call the County at 602-273-1411, make the declaration over the telephone and forward the declaration form when time permits. The County EOC will assist the Town in the preparation of documentation necessary to justify the request for emergency assistance. Appendix 6 to Annex A 26 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 6 - EMERGENCY DECLARATION PROCESS TAB A - DECLARATION OF A LOCAL EMERGENCY WHEREAS, said Mayor of the Town of Fountain Hills does hereby find: 1. That due to the Town of Fountain Hills, County of Maricopa, State of Arizona, is facing dangerous 2. That due to conditions; a condition of extreme peril to life and property necessitates the proclamation of the existence of an emergency; NOW, THEREFORE, IT IS HEREBY PROCLAIMED that an emergency now exists throughout said Town and IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said emergency the powers, functions and duties of the Council of the Town of Fountain Hills shall be those prescribed by State Law, Ordinances and the emergency plans of the Town of Fountain Hills in order to mitigate the effects of such emergency. Proclaimed by the Mayor of the Town of Fountain Hills this day of Dated: ATTEST: Town Clerk Mayor Tab A to Appendix 6 27 August 2003 to Annex A FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 6 - EMERGENCY DECLARATION PROCESS TAB B - DECLARATION THAT A LOCAL EMERGENCY NO LONGER EXISTS WHEREAS, beginning on the day of was an emergency situation created by (type of emergency) there and WHEREAS, the Charter of the Town of Fountain Hills provides that the Mayor shall take command of the Town forces and govern the Town by proclamation during times of great danger, and WHEREAS, on the day of , , I, Mayor of the Town of Fountain Hills, proclaimed a state of emergency existed, and WHEREAS, the Town of Fountain Hills has been restored to peace, tranquility, and order, NOW THEREFORE, I, , Mayor of the Town of Fountain Hills, County of Maricopa, State of Arizona, in conformity therewith and by the virtue of the authority vested in me, and in accordance with the law, do hereby PROCLAIM AND DECLARE TO THE PEOPLE OF THE TOWN OF FOUNTAIN HILLS, that there no longer exists in the Town of Fountain Hills, a state of local emergency and I DO FURTHER PROCLAIM that the activities of the government of the Town of Fountain Hills and all of its departments hereby return to business as usual according to the charter and ordinances of the Town of Fountain Hills. Proclaimed by the Mayor of the Town of Fountain Hills, this day of Dated: Mayor ATTEST: Town Clerk Distribution: County EOC Fax #: 602-275-1638 Original to Clerk Tab B to Appendix 6 28 August 2003 to Annex A FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 7 - DISASTER ASSISTANCE 1. Assistance is available from the State and Federal govemments when specific conditions are met: a. The Govemor must declare a State of Emergency for the Town to receive assistance from the State. b. The President must declare a major disaster for the Town to receive Federal assistance. 2. Types of Disaster Assistance a. Public Assistance - financial aid to governmental entities. b. Individual assistance - financial aid to private citizens and businesses. 3. If the Govemor declares a State of Emergency, but the President does not declare a major disaster, the Town will be eligible for public assistance under Arizona Revised Statute (ARS) 35-192 and its associated rules. Individual assistance to residents affected by the disaster will not be available, although, in some cases, federal agencies such as the Small Business Administration, Farmers Home Administration, Farm Service Agency, and U. S. Army Corps of Engineers can be petitioned to provide loans and/or technical assistance. 4. If the Govemor declares a State of Emergency and the President declares a major disaster, the Town and its citizens will generally be eligible for both public assistance and individual assistance from the Federal government and for public assistance from the State. In some cases, however, individual assistance may be denied by the Federal govemment, even though public assistance is provided. The Federal agencies listed in the previous paragraph again may be able to provide loans and/or technical assistance if individual assistance is denied in the Federal disaster declaration. S. Types of public assistance that may be available following a State Declaration of Emergency or a Federal declaration of a major disaster: a. During the Response Phase Appendix 7 to Annex A 29 August 2003 (1) Emergency debris clearance. (2) Emergency protective measures such as search and rescue, demolition of unsafe structures, warning of further risks and hazards, and public information on health and safety measures. (3) Emergency restoration work, including emergency repairs to essential utilities and facilities. (4) Emergency communications equipment to supplement, but not replace, normal communications equipment that remains operable. b. During the Recovery Phase (1) Costs of Emergency Recovery Work. (a) Clearance of wreckage and debris. (b) Emergency protective measures. (c) Emergency repair or replacement of roads, streets, highway facilities, dikes, levees, irrigation works, drainage facilities, public buildings and related equipment and furnishings, and public -owned utilities. (d) Salaries and wages. (e) Equipment, supplies, and materials. (f) Work performed by the National Guard, under contract, and work performed by arrangement with other political subdivisions. (2) Costs of Permanent Restoration. Items listed in paragraph (1) above and public facilities under construction. 6. Types of individual assistance that may be available following a Federal declaration of a major disaster: a. During the Response Phase. Emergency mass care if not provided by welfare organizations. b. During the Recovery Phase (1) Temporary housing. (2) Disaster loans. (3) Federal income tax assistance. Appendix 7 to Annex A 30 August 2003 (4) Legal and consumer aid. (5) Unemployment benefits. (6) Food stamps. (7) Psychological counseling. (8) Grants to individuals and families. 7. Individual assistance usually will be administered from Federal Disaster Application Centers (DACs), which will be established near the affected area to provide victims a convenient centralized location to receive guidance and information and to initiate their personal recovery actions. Insofar as practicable, each DAC will include representatives of all agencies having relief and rehabilitation responsibilities, so that victims are afforded the opportunity to complete their business at a single location and in a minimum number of visits. 8. The Town Manager will ensure that the following tasks are accomplished: a. Keep detailed records of all public and private damage sustained during the disaster, to include the estimated cost of repairing the damage. The damage must be visually verified by a qualified inspector following the disaster as estimates made during the disaster are frequently inflated by the stress of the moment. Accurate damage estimates and precise knowledge of damage locations will be invaluable when FEMA teams inspect the Town following the disaster to determine whether a Presidential disaster declaration is warranted. b. Prepare a report stating the disaster's impact on the Town's budget and its ability to provide essential services to citizens. A clear statement of the disaster's impact is essential for the Town to qualify for a Presidential disaster declaration. C. If a Presidential declaration is made, appoint an Applicant Agent to represent the Town in applying for State and Federal disaster assistance. The Applicant Agent handles all documentation and correspondence for public assistance and must be a person authorized to make financial commitments on behalf of the Town. He/she will attend a joint Federal/State briefing at which his/her duties and the forms necessary to apply for assistance will be explained. d. Ensure that Town employees keep records of all repair work accomplished after the disaster. The following information must be kept for each work site on each day that work is performed: (1) Location of work site. (2) Date work was done. Appendix 7 to Annex A 31 August 2003 (3) Employees and hours worked. (4) Equipment and hours used. (5) Materials and quantity used. (6) Source of materials (vendor or stock). (7) Copies of delivery tickets. NOTE: Videos or photographs should be considered. e. If individual assistance is made available in conjunction with a Presidential disaster declaration, obtain the DAC location and hours of operation from the Maricopa County Department of Emergency Management and ensure that Town residents are made aware of that information. Appendix 7 to Annex A 32 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX A - DIRECTION AND CONTROL APPENDIX 8 - EMERGENCY TELEPHONE CONTACT LIST Position Name Address Telephone Number Council Members ' Vice Mayor Rotates every 8 months Mayor Wally Nichols 16825 Hawk Drive "A" 480-837-0209 Council* Mike Archambault 15033 El Sobrante 480-837-2293 Council* Leesa Stevens 15505 Cavern Drive 480-837-5891 Council* John Kavanagh 16038 Seminole Lane 480-837-5612 Vice Mayor' Rick Melendez 16657 Hawk Drive 480-837-6463 Council* Kathleen Nicola 17320 Tejon Drive 480-837-7089 Council Susan Ralphe 15729 Golden Eagle Drive 480-837-7914 Key Staff Personnel Town Manager Tim Pickering 16868 Stoneridge Ct. 480-837-6066 480 577-0949 (mte) Executive Assistant to the Town Manager Susan Stein 6917 E. Bronco Dr. Paradise Valley 85253 480-951-2330 Town Clerk Bev Bender 6702 E. Juniper Scottsdale 85254 480-443-1125 Attorney Andrew McGuire 2614 S. Salida del Sol, Mesa AZ 480-756-2870 602-502-3905 (m) Accountant Julie Ghetti 17355 E. QuailRidge Dr. Fountain Hills. 480-837-2553 Magistrate Ted Armbruster 15119 Desert Willow r. Fountain Hills 480-836-1077 Sanitary District Ron Huber 602-867-4874480-837-9444 (w) Appendix 8 to Annex A 33 August 2003 Position Name Address Telephone Number Chaparral City Water Co Emergency After Hrs 480-945-6311 Business Hours 480-837-9522 Public Works Department Tom Ward 13440 N. Rockview Ct. 480-816-1517 Director Fountain Hills 602-721-7655 (m) Gas Company 16510 E. Briarwood Dr. 480-837-7269 Street Superintendent Tony Marchese Fountain Hills 602-721-1947(m) Street Supervisor Ken Kurth 15225 N. 100t. #2189Scottsdale, AZ 85260 602-721-4761(m) IT Coordinator Mike Ciccarone 17229 Teal Dr. Fountain Hills 480-226-4101 (m) Community Center Mark Mayer 6622 E. Omega 480-219-8200 Director Mesa, AZ 85215 Don Thumith 2660 S. Joplin 480-354-4412 (h) Town Facilities Supervisor Mesa, AZ 85208 14028 N. Sunflower, 480-816-9627 Rural/Metro Fire Chief Scott LeGreca Ftn. Hills 602-817-0531 (h) 602-739-9919 m 10538 E. Betony, Scottsdale 480-515-2032 Fountain Hills Fire Chief Mark Zimmerman AZ 602-817-0633 (p) 602-739-9939 m Rural/Metro Fire Communications 480-945-6311 Department Supervisor Fountain Hills Fire Captain Don Lindquist Jr. 480-816-9249 (h) 602-570-1634 (m) 602-817-0534 Fountain Hills Fire Captain Todd Brunin 480-837-2281 (h) 480-201-1445 (m) 602-817-0837 MCSO Fountain Hills John Kleinheinz 623-933-7476 (h) Commander 888-226-7310 (p) 602-361-0027 m MCSO Fountain Hills Charles Siemens 602-450-6297 (p) Commander's Assistant MCSO Fountain Hills Tim Lockwood 602-310-1660 (p0 Senior Patrol Sergeant 602-525-3640 m MCSO Communication 602-256-1011 Dispatch MCSO Fountain Hills Robert Wagner 480-596-3566 Posse Fort McDowell Police 480-596-1091 Scottsdale Police 480-312-5000 Hazardous Spills Fire Department 480-945-6311 State Fire Marshal Duane Pell 602-364-1003 FBI Duty Officer 602-279-5511 Salvation Army 602-267-4122 American Red Cross 602-336-6679 Appendix 8 to Annex A 34 August 2003 Position Name Address Telephone Number Red Mountain Rubbish 480-837-9066 Owest 1-800-573-1311 SRP 602-236-8811 Vice Mayor position is periodically shared by each Council member. Appendix 8 to Annex A 35 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX B - STORMS AND FLOODS 1. SITUATION A. Severe windstorms and thunderstorms can occur in the Town of Fountain Hills in the future. B. Flash flooding can occur as a result of heavy rainfall on the watershed north of the Town limits. C. Advance notice of adverse weather conditions will generally be provided by the National Weather Service (NWS) in sufficient time to warn affected departments and activate the EOC, if necessary. II. MISSION To prepare for and respond to storm and flood disasters in order to save lives and protect property. III. EXECUTION A. Concept of Operations 1. See Basic Plan and Annex A, Direction and Control. 2. The MCSO receives severe weather information from the NWS and relays the information to the MCSO Dispatch Center. 3. The MCSO Dispatch Center will relay all severe weather watches and warnings affecting the Town of Fountain Hills to the Town Manager and Town Manager Emergency Management Designee. 4. If conditions so warrant, the Town Manager will recommend activation of the EOC to the Mayor. Upon activation of the EOC, the Emergency Staff will assume responsibility for coordinating emergency operations. 5. The private sector will be encouraged to develop self-help capability with the town providing guidance and assistance. B. Organization. See Annex A, Direction and Control, to this plan. Annex B 36 August 2003 C. Tasks 1. Response to storms and floods will occur in three phases — "Before the Storm/Flood," "During the Storm/Flood" and, "After the Storm/Flood". The "after" tasks are those required if the storm or flood results in severe damage or extensive or prolonged danger. 2. Mayor. See Basic Plan. 3. Town Manager. See Basic Plan. 4. Town Manager Emergency Management Designee. See Basic Plan and Annex A, Direction and Control. 5. EOC Staff a. Before the Storm/Flood (Upon Activation): (1) See Annex A, Direction and Control. (2) Receive severe weather information from Law Enforcement and disseminate it to the Fire Department and the Streets Department. (3) Direct appropriate road closures when flooding or flash flooding potential dictates such action. (4) Keep the Mayor, Town Manager and other responsible authorities apprised of the situation. (5) Alert citizens of the potentially hazardous conditions, and provide safety guidance and information. (6) Activate and check emergency communication systems. (7) Determine operational status of private, State and Federal supporting agencies. (8) Initiate evacuation measures, if appropriate. (9) Notify County and check if County EOC is operational. b. During Storm/Flood: (1) Keep responsible authorities informed of the situation. (2) Continue to alert affected citizens. Annex B 37 August 2003 (3) Direct and coordinate activities of the field forces. (4) Recommend the location and the establishment of the on -site command posts by field forces. (5) Dispatch, when practicable, observers to areas of potential involvement. (6) Initiate or continue evacuation measures where appropriate. c. After Storm/Flood: (1) Continue coordination of evacuation measures for affected areas. (2) Organize and dispatch Damage Assessment Teams when applicable. (3) Initiate disaster assistance procedures for affected areas. (4) Coordinate welfare support to affected areas. (5) Coordinate recovery procedures by field forces. (6) Prepare After -Action Reports. 6. Law Enforcement a. See Basic Plan. b. Receive weather watches and warnings from MCSO and relay them to the Town Manager and Town Manager Emergency Management Designee. After EOC activation, relay watches and warnings to the EOC Staff. 7. Fire Department. See Basic Plan. 8. Public Works Department a. See Basic Plan. b. Condemn unsafe structures. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex B 38 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX C — ELECTRICAL POWER DISRUPTIONS SITUATION AND ASSUMPTIONS A. Situation 1. The Town primary providers of commercial electrical power — the Arizona Public Service Company (APS). 2. Because the major electric utilities in the western states are interconnected through an extensive grid system operated by the Western States Coordinating Council (WSCC), the failure of a major transmission line in a location well outside the state could result in large-scale power outages in Fountain Hills. A lack of adequate generation and transmission capabilities in certain areas might also cause shortages. While this interconnectivity increases the number of ways in which a power failure could occur, it also increases the options available for the restoration of power. 3. Local thunderstorms, particularly during the summer monsoon season, are capable of producing widespread power failures in the Fountain Hills area. Excessive summer heat can have a significant effect on electrical demands in Fountain Hills and the surrounding area. 4. Energy emergencies have been categorized by the electric utilities that are members of WSCC, including those in Arizona, into three alert levels: a. Alert 1 means all available resources are in use. The utility has no reserves beyond the minimum requirement, and there is a concern that it may not be able to sustain its required operating reserves. All non -firm wholesale energy sales are curtailed. b. Alert 2 means load management procedures are in effect. At this point, the utility makes appeals to the public to reduce energy use, initiates voltage reductions on the system, and curtails interruptible loads through a voluntary curtailment program. C. Alert 3 means a firm load interruption is imminent or in progress. 5. When a firm load interruption is required (Alert 3), APS will employ the use of involuntary curtailments in the form of "rolling blackouts" rather than taking the risk of further degradation of the electric utility grid. When rolling Annex C 39 August 2003 blackouts occur, service will be cut off to circuits servicing one or more predetermined areas, each of which contains approximately 750 homes or their equivalent. These outages will generally last approximately twenty minutes to one hour for each circuit disconnected. As service is restored to areas that just experienced the blackout, it is then interrupted to another set of areas. This process repeats itself until power demands fall to the point at which power can be restored throughout the utility's service area. The utilities have identified such critical needs as hospitals, water treatment plants, and 911 dispatch centers, and the circuits servicing those facilities will not be taken off line during the rolling blackouts. 6. There is a concern as to the reliability of electric power to the Valley during the summer of 2001 and beyond. Due to limited additions to power generation or transmission capability over the past 10 years, power availability is not guaranteed. The times of greatest exposure are summer weekday afte moons. Wildland fires affecting transmission lines serving the Valley from the north could aggravate the situation. B. Assumptions If a power outage is large enough to warrant opening the Fountain Hills EOC but not large enough to affect other cities and towns, the electrical provider will send a representative to the Fountain Hills EOC. The representative will keep the town up to date on power restoration efforts through contact with the utility's EOC. 2. If a power outage is large enough to affect multiple jurisdictions, the electrical provider will send a representative to the county or state EOC, and the town EOC will receive updates from the county or state EOC. 3. Traffic management plans will need to be developed for intersections with stoplights in affected areas. 4. Because some telephone systems rely on electric power, access to the 911 system maybe limited in affected areas. 5. Locally owned water companies that rely on wells may be unable to deliver potable water. 6. Water treatment facilities will be unable to operate at full capacity, or perhaps even operate at all. 7. APS has provided dry ice to its customers during extended power outages in the past and can be expected to do so during future situations of a similar nature. Annex C 40 August 2003 II. MISSION A. To assist the residents of Fountain Hills in the recovery from outages and shortfalls associated with electrical power failures or rotating power outages. III. EXECUTION A. Concept of Operations 1. As a general rule, the Town EOC will not be activated when rolling blackouts occur. However, the Public Works Department will coordinate closely with the utility and the Maricopa County EOC to ensure that the areas affected by blackouts are notified as far in advance as possible. 2. If a blackout is expected to last for an extended period of time and affect a major portion of the town, the Town EOC will be activated. The involved utility will be asked to send a representative to the Town EOC, unless it has a representative in the state or county EOC. 3. The Public Information Office will issue news releases and work with the Town Clerk's office to establish a citizens' information hotline to inform the public of services available and, to the extent possible, the status of power restoration efforts. 4. If an extended power outage occurs during a summer heat wave, a life - threatening situation can occur for a large segment of the population, particularly the elderly. 5. APS have programs that identify persons who rely on electrically operated medical systems in their homes, and these persons have been advised to procure battery -powered backups to meet their needs during the short power outages associated with rolling blackouts. In the event of unanticipated power failures of an extended nature, however, these people will need to be moved to a temporary shelter where their medical needs can be met until power is restored to their homes. B. Tasks 1. The Town Manager recommend a local emergency if he deems it necessary. 2. The Town Manager will ensure that the provisions of this Annex are implemented. 3. Law Enforcement will: a. Be prepared to perform traffic management at controlled intersections Annex C 41 August 2003 in affected areas, particularly those areas controlled by stoplights. b. Increase patrols in affected areas for crime prevention and to ensure 911 access for residents whose telephones fail as a result of the power outage. 4. The Public Works Department will erect temporary stop signs and other traffic control devices if necessary in areas that have lost traffic control signals. C. Support 1. When extended power outages occur in APS service areas, the company will procure dry ice for distribution to its customers who are without power. It will make public service announcements to inform the public of distribution points. 2. The Maricopa County Environmental Services Department will provide support in the following areas: a. Monitoring of sewage treatment and disposal facilities. b. Testing of drinking water supplies for both private and public systems. c. Checking regulated facilities such as restaurants and grocery stores for evidence of food spoilage. d. Monitoring cooling centers for proper sanitation and food handling procedures. e. Increasing air quality monitoring to determine whether the use of generators has increased pollution levels, and issuing public warnings if necessary. f. Providing general sanitation advice to the public. 3. The Maricopa County Public Health Department will assist in the following areas: a. Monitoring for disease outbreaks and other health -related problems in areas that have experienced extended periods without refrigeration or interruption of sanitation services. b. Monitoring for increased morbidity and mortality. 4. The Red Cross -and the Salvation Army will establish shelters outside the power outage area or in buildings within the power outage area that are Annex C 42 August 2003 powered by generators. IV. DIRECTION AND CONTROL. See Annex A. V. ADMINISTRATION AND LOGISTICS. Accurate, detailed record keeping must be instituted and maintained throughout the incident to support future requests for reimbursement and to provide information to the Town Attorney's office for defense of town personnel and agencies in the event of litigation against the town. Annex C 43 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX D - HAZARDOUS MATERIALS INCIDENTS BACKGROUND INFORMATION A. Situation Incidents involving hazardous materials (HAZMAT) can occur without warning at fixed facilities or along transportation routes. This can result in dangerous conditions requiring immediate corrective action by emergency response personnel to protect themselves, accident victims and citizens. 2. Public Law 99-499, the Superfund Amendments and Reauthorization Act of 1986 (SARA), Title III: Emergency Planning and Community Right -to -Know was enacted to provide local government the authority to gather information concerning chemical hazards in their community, plan for the response to incidents involving those hazards, and provide a means for the general public to access information concerning hazardous substances in their community. 3. The Arizona Emergency Response Commission (AERC) enforces the provisions of SARA, Title III and other federal laws and regulations dealing with hazardous materials in the State of Arizona. The administrative offices and staff support of the AERC are located at the Arizona Division of Emergency Management. 4. The Maricopa County Local Emergency Planning Committee (LEPC) is the County's designated lead agency for emergency planning and enforcement of the provisions of SARA, Title III and other federal laws and regulations dealing with hazardous materials. The administrative offices and staff support of the Maricopa County LEPC are located at the Maricopa County Department of Emergency Management. 5. Facilities which store extremely hazardous substances in excess of the threshold planning quantity are required to report pertinent information about those substances annually to their local fire department, the Maricopa County LEPC and the AERC. 6. Facilities which store hazardous materials not designated as extremely hazardous substances are required to report pertinent information about those substances annually to their local fire department, the Maricopa County LEPC, and the AERC if the quantity stored is 10,000 pounds or Annex D 44 August 2003 more. B. Plannina Factors 1. The amount of time available to determine the scope and magnitude of the incident will have an effect on the protective actions recommended. 2. Wind speed and direction at the time of the incident will be factors in determining which evacuation routes can be used. Changes may result in changing protective action decisions. 3. Temperature inversions will increase downwind travel and lateral dispersion of toxic plumes. 4. Hazardous materials may enter and contaminate water supplies and sewage systems, necessitating the shutdown of such facilities until decontamination procedures can be implemented. II. MISSION To protect citizens and emergency response personnel from the effects of hazardous materials involved in a transportation, storage, or usage incident and provide expeditious recovery from the incident. 111. EXECUTION A. Concept of Operations 1. See Basic Plan and Annex A, Direction and Control. 2. The Fire Department will establish an on -site command post and control operations at the scene of the incident. Law Enforcement will secure the incident scene. 3. The Arizona Radiation Regulatory Agency (ARRA) has the primary responsibility for incidents involving radioactive materials. If the incident involves radioactive materials, a trained Radiological Defense (RADEF) Officer will direct radiological control measures at the scene until ARRA personnel arrive. If a RADEF Officer is unavailable, a trained Radiological Monitor will direct radiological control measures until the arrival of ARRA personnel. 4. The Commander, Luke Air Force Base, has responsibility for incidents involving nuclear weapons. If nuclear weapons are involved, the area will be evacuated to a distance of at least 2500 feet, the Base will be notified, and the site will be secured until military forces arrive to assume that Annex D 45 August 2003 responsibility. 5. The goal of the Town's responding forces is to stabilize the incident, leaving clean-up operations to hazardous materials specialists. B. Organization. See Annex A, Direction and Control. C. Tasks 1. Mayor. See Basic Plan. 2. Town Manager. See Basic Plan. 3. Town Manager Emergency Management Designee a. See Basic Plan and Annex A, Direction and Control. b. Ensure that all emergency response vehicles have North American Emergency Response Guide Books. 4. EOC Staff a. See Annex A, Direction and Control. b. If the incident involves radioactive materials, (1) Notify ARRA. (2) Obtain the assistance of a trained RADEF Officer to direct radiological control measures at the scene until ARRA personnel arrive. The Phoenix Fire Department is a possible source of a RADEF Officer. C. If the incident involves nuclear weapons, notify the Luke Air Force Base Command Post (623-856-5800). d. Coordinate with the Federal Aviation Administration to restrict airspace above the incident, if necessary. e. If there is a potential mass casualty situation, notify the Rural/Metro will notify Phoenix Fire Department and ask them to activate the Maricopa County Medical Alerting System (MCMAS) at 911 or 602- 253-1191. 5. Law Enforcement a. See Basic Plan. Annex D 46 August 2003 b. If first on -scene, secure the affected area, remain up -wind, and assume on -site control until arrival of Fire Department. C. If the incident occurs on State Route 87 (Beeline Highway), notify the Department of Public Safety (DPS) Watch Commander. d. Establish and cordon off a holding area for suspected contaminated persons and equipment. e. Clear the scene of all personnel not wearing special protective gear and breathing apparatus, if recommended by the Fire Department. f. If the incident involves explosives, evacuate the area to a distance of at least 2500 feet. g. If the incident involves nuclear weapons (1) Evacuate the area to a distance of at least 2500 feet. (2) Notify the EOC Staff. (3) Notify Luke Air Force Command Post if the Town EOC is not activated. (4) Secure the area until military forces arrive. h. If the incident involves radioactive materials (1) Notify the EOC Staff. If the EOC is not activated, notify ARRA. (2) Prevent removal of material and persons from the scene until cleared to do so by a RADEF Officer. 6. Fire Department a. See Basic Plan. b. Maintain records of facilities in and near the Town of Fountain Hills, which store reportable quantities of hazardous materials. c. Perform a vulnerability analysis on the above mentioned facilities to determine their location relative to schools, hospitals, nursing homes, essential governmental services, and other entities that may need special assistance during a HAZMAT incident. d. Establish an on -site command post and control operations at the scene of the HAZMAT incident. Annex D 47 August 2003 e. Determine the type of hazardous material and request technical assistance as needed. f. Allow only personnel with special protective gear and breathing apparatus near the incident scene if a health hazard is suspected. g. Recommend evacuation of the affected area to the Mayorthrough the EOC Staff, if conditions warrant. If the EOC is not activated, direct evacuation as appropriate. h. If the incident involves radioactive materials (1) Segregate clothing and equipment used at or near the scene until they can be monitored for contamination. Place all known contaminated items in plastic bags marked "Radioactive -- Do Not Discard," and hold for ARRA. (2) When removing injured persons from the accident area, do it rapidly and avoid contact whenever possible. Individuals with open wounds should be covered immediately. (3) Injured persons believed to be contaminated should be wrapped in blankets to stop further contamination of open wounds and the interior of the ambulance. (4) Patients believed to be contaminated should be taken to Good Samaritan Hospital or Maryvale Samaritan Hospital, if possible. In any event, notify the hospital to which the patients are being evacuated that they may be contaminated by radioactive material. (5) Dispatch a RADEF Officer or Radiological Monitor to the scene if the EOC is not activated. If the EOC is activated, this step will be performed by the EOC Staff. 7. Public Works Department. See Basic Plan. D. Support 1. See Basic Plan. 2. The Maricopa County Emergency Resources Manual has an extensive listing of agencies that can be contacted for technical assistance during a HAZMAT incident. 3. Several neighboring fire departments have specially trained HAZMAT response teams. They are identified in the Maricopa County Emergency Annex D 48 August 2003 Resources Manual. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex D 49 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX E - FIRE AND EXPLOSION I. SITUATION A. Fire and explosion emergency measures covered in this annex are those exceeding normal response capabilities. B. The Fire Management Office of the Arizona State Land Department makes an annual assessment to determine State wildland fire conditions. C. Each spring, the Governor of Arizona declares a state of emergency to exist due to hazardous fire conditions throughout the State. This action frees emergency funds for use in suppressing fires when it is determined that state or local government property is involved or that the lives and property of a considerable number of citizens are endangered. The determination is made by the Fire Management Office of the State Land Department, which has the authority and funds to arrange for the assistance required. D. The Fire Department has the responsibility for any wildland fire or fire suppression activities within the Town's boundaries. E. The Salt River Indian Reservation has a Fire Department. F. The Fort McDowell Indian Reservation has a Fire Department. II. MISSION To provide support for extraordinary fire and explosion emergencies, to include wildland fires affecting or threatening the Town. Ill. EXECUTION A. Concept of Operations 1. See Basic Plan and Annex A, Direction and Control. 2. The Fire Department will establish an on -site command post and will assume responsibility for on -site management. Law Enforcement will provide control and security of the affected area. 3. Wildland fires on the Fort McDowell Indian Reservation, Salt River Indian Reservation and the McDowell Mountain Park that threaten the Town Annex E 50 August 2003 should be reported to Rural/Metro Fire Department. 4. Under mutual aid agreements with the Indian Reservations, the Rural/Metro Fire Department is authorized to suppress fires on Indian land within one mile of the Town limits if they pose a threat to the Town. 5. Wildland fires on State and County land that threaten the Town should be reported to: a. Rural/Metro Fire Department. b. Fire Management Office of the State Land Department. 6. Rural/Metro Fire Department may suppress fires on State or County land when authorized by the Fire Management Office of the State Land Department. B. Organization. See Annex A, Direction and Control. C. Tasks 1. Mayor. See Basic Plan. 2. Town Manager. See Basic Plan. 3. Town Manager Emergency Management Designee. See Basic Plan and Annex A, Direction and Control. 4. EOC Staff. See Annex A, Direction and Control. 5. Law Enforcement: a. See Basic Plan. b. Assist the Fire Department in establishing an on -site command post. C. Prevent looting of damaged and evacuated areas. d. Alert the citizens of areas that are likely to be affected. 6. Fire Department: a. See Basic Plan. b. Establish an on -site command post and assume primary responsibility for on -scene management of the emergency. C. Request mutual aid assistance from other fire departments, as Annex E 51 August 2003 required. d. For fires on State or County land adjoining the Town, request assistance from the Fire Management Office of the State Land Department. e. For fires on Indian land adjoining the Town, request assistance from the Fire Management Office of the State Land Department. 7. Public Works Department. a. See Basic Plan. b. Determine the structural integrity of buildings damaged by the fire or explosion. D. Support. See Basic Plan. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex E 52 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX F- CIVIL DISTURBANCES I. SITUATION A. Civil disturbances are those organized or spontaneous group activities, which disrupt the peace and threaten life, health, property or legally constituted authority. B. Civil disturbances have occurred in nearby communities and may occur in Fountain Hills with little or no warning. C. Civil disturbances may be accompanied by other criminal activities such as vandalism, arson, looting, sabotage, sniping, or bomb threats. II. MISSION To restore law and order and to protect life and property in the event of a civil disturbance. III. EXECUTION A. Concept of Operations 1. This annex assumes a wide spectrum of civil disorder situations and recognizes that response will vary accordingly. 2. Law Enforcement is responsible for preserving the peace, suppressing civil disorder, and performing Law Enforcement functions of the Town. B. Organization. See Annex A, Direction and Control. C. Tasks 1. Mayor a. See Basic Plan. b. Establish policy and issue emergency legislation and declarations in accordance with the Town Code. C. Represent the Town when negotiations take place with leaders of the Annex F 53 August 2003 civil disturbance. 2. Town Manager. See Basic Plan. 3. Town Manager Emergency Management Designee. See Basic Plan and Annex A, Direction and Control. 4. EOC Staff. See Annex A, Direction and Control. 5. Law Enforcement a. See Basic Plan. b. Identify and maintain a list of critical facilities that may be vulnerable to civil disturbances. C. Establish an on -site command post and assume primary responsibility for on -scene management of the emergency. d. Warn the public of any potentially dangerous situations. e. Provide security of critical facilities as the situation warrants. f. Establish holding areas for processing of violators. 6. Fire Department a. See Basic Plan. b. Assist Law Enforcement in establishing an on -site command post. c. Receive clearance from the EOC before allowing forces to enter the affected area. 7. Public Works Department a. See Basic Plan. b. Provide and set up barricades for crowd control. C. Remove barricades erected by rioters. Annex F 54 August 2003 D. Support. See Basic Plan. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex F 55 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX G - AIRCRAFT CRASHES I. SITUATION A. The skies above Maricopa County experience a heavy volume of traffic from military, commercial carrier, and private sector aircraft. B. Regardless of their nature or location, aircraft crashes involve both local and federal agencies. Because of this involvement and the immediacy of the control problem, it is imperative that Town personnel be cognizant of their role as well as the responsibilities of other concerned agencies. C. If the crash involves a military aircraft, the wreckage site may become, at the responding military authority's request, federal property until the site is released by that authority. II. MISSION To ensure an effective and rapid response to an aircraft crash in order to minimize loss of life, expedite recovery efforts, and provide appropriate control and security of the aircraft, the site, and the residue. III. EXECUTION A. Concept of Operations See Basic Plan and Annex A, Direction and Control. 2. The Fire Department will establish an on -site command post and assume the primary responsibility for on -scene management of aircraft crash incidents. Law Enforcement will secure the crash scene. 3. Mutual aid agreements will be implemented as soon as it is apparent that effective response to the disaster will be beyond the capability of Town resources or if the crash site is near or crosses jurisdictional boundaries. B. Tasks Mayor. See Basic Plan. 2. Town Manager. See Basic Plan. Annex G 56 August 2003 3. Town Manager Emergency Management Designee. See Basic Plan and Annex A, Direction and Control. 4. EOC Staff: a. See Annex A, Direction and Control. b. As soon as possible, forward the following information to the Maricopa County EOC: (1) Location of accident. (2) Number of injuries and deaths, if known. (3) Whether the aircraft is military or civilian. (4) Type of aircraft (passenger, cargo, helicopter, etc.). (5) Best available ingress and egress routes for emergency vehicles. (6) Any additional assistance required (police, fire, medical, military, etc.). c. When the following information becomes available, forward it to the Maricopa County EOC. (1) Aircraft identification numbers. (2) Owner of the involved aircraft. (3) Name and address of the pilot. (4) Description of property damage. (5) Location of known survivors. (6) Brief statement of circumstances surrounding the incident. (7) If the aircraft was military, whether or not weapons were carried. (8) Whether U.S. mail was aboard. d. If a potential mass casualty situation exists Rural/Metro will notify the Phoenix Fire Department alarm room and ask them to activate the Maricopa County Medical Alerting System (MCMAS). e. If conditions in the area affected by the crash necessitate shutdown of utilities, coordinate priorities for shutdown and restoration with the Annex G 57 August 2003 utility companies involved. 5. Law Enforcement: a. See Basic Plan. b. Perform rapid survey of crash scene and damaged areas. C. Report findings immediately to the Town Manager (or EOC if activated) with recommendations regarding mobilization of additional forces. d. Assist the Fire Department in establishing an on -site command post. e. Establish traffic and personnel access control procedures, establish a perimeter, and preserve the crash scene intact (to include all debris and corpses). f. Ensure that emergency vehicles responding to the crash site have the best possible ingress and egress routes, which will enable them to reach and exit the scene without unnecessary delay. g. Direct teams to make a detailed search of the area noting pieces of wreckage, luggage and other debris; bodies and parts of bodies will be covered and guarded until investigators authorize their removal. h. Evacuate buildings immediately adjacent to the crash site whether damaged or not. i. Recommend evacuation of any residents, if required, and establish evacuation assembly areas until congregate care facilities can be arranged. j. Coordinate any or all of the above with the military on -site commander in the case of a military aircraft crash. 6. Fire Department a. See Basic Plan. b. Establish an on -site command post and assume primary responsibility for on -scene management of the crash site. C. Request mutual aid assistance from other fire departments, as required. d. Recommend evacuation from the disaster area when deemed Annex G 58 August 2003 advisable, in coordination with Law Enforcement. e. Assign search and rescue teams to search for and remove injured persons from the crash scene. f. Designate open areas close to the scene for first aid stations and medical triage teams. 7. Public Works Department a. See Basic Plan. b. Conduct debris clearance operations after being cleared to do so by the authority investigating the crash scene. C. Support 1. See Basic Plan. 2. The Maricopa County Emergency Operations Plan discusses in detail the roles of agencies that support aircraft crash disaster operations. The services of these agencies will be provided automatically when the disaster is reported. The supporting agencies include but are not limited to: a. The National Transportation Safety Board (NTSB) investigates all civil aircraft accidents to determine facts, conditions, circumstances, and probable cause of the accident. b. The Federal Aviation Administration (FAA) investigates all aircraft accidents to determine if any Federal aviation laws or regulations have been violated. c. United States armed forces are responsible for the investigation of accidents involving military aircraft. However, they may request that the NTSB or FAA also conduct an investigation. d. The Federal Bureau of Investigation (FBI) provides personnel to assist in identification of the dead. e. The Department of Public Safety (DPS) transports triage teams to the crash site by DPS helicopter if appropriate. f. The Maricopa County Medical Examiner directs and coordinates the recovery, collection, identification and processing of the dead and their personal effects. The Arizona Funeral Directors Association assists in this effort when requested by the Medical Examiner. Annex G 59 August 2003 IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex G 60 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX H - TERRORIST INCIDENTS I. MISSION To provide the citizens of the Town of Fountain Hills with a concept of operations for management of response to a terrorist incident that defines coordination with other government agencies and provides response and recovery procedures to protect citizens and property. II. SITUATION AND ASSUMPTIONS A. Situation The Town of Fountain Hills can be subjected to a terrorist incident with the primary purpose of destroying the public's confidence in the government's ability to protect its citizens. 2. Terrorists often use threats to create fear among the public, to try to convince citizens that their government is powerless to prevent terrorism, and to get immediate publicity for their cause. 3. The objectives of terrorism distinguish it from other violent acts aimed at personal gain, such as criminal violence. It is the calculated use of violence or the threat of violence to inculcate fear, intended to coerce or to intimidate governments or societies in the pursuit of goals that are generally political, religious, or ideological. 4. Tactics used by terrorists to obtain their goals may include bombing, arson, hijacking, kidnapping, creating ecological disasters, occupation of a building, attacks on facilities, sabotage, hostage taking, assassination and perpetration of hoaxes. 5. Terrorist methods may include conventional weapons or, for more effect, nuclear, biological or chemical (NBC) devices or weapons. This annex deals primarily with terrorist incidents using NBC devices or weapons, but it is adaptable to terrorist incidents using conventional weapons. 6. In a terrorist incident, the area of operations could potentially span a number of political boundaries and involve numerous jurisdictions. Annex H 61 August 2003 B. Assumptions The Federal Bureau of Investigation, as the lead agency for counter- terrorism, will be able to prevent most terrorist incidents, where legally possible, and to react effectively after incidents occur. 2. Local law enforcement agencies have the capability to respond to suspected terrorist incidents and make the determination as to whether or not the incident should be classified as a terrorist act. III. EXECUTION A. Concept of Operations 1. The overall response to a terrorist incident, whether domestic or international, includes two major components. a. Crisis management response involves measures to identify, acquire, and plan the use of resources to anticipate, prevent, mitigate or resolve a terrorist threat or incident. Crisis management response is implemented under the primary jurisdiction of Law Enforcement agencies at all levels of government. b. Consequence management response involves measures to alleviate the damage, loss, hardship or suffering caused by emergencies. It includes measures to protect public health and safety, restore essential services, and provide emergency relief to affected agencies and organizations. Consequence management response is implemented under the primary jurisdiction of the affected political subdivision, with support from the federal government. 2. Technical operations constitute an important support component to both crisis management and consequence management response to a terrorist incident involving weapons of mass destruction (WMD). Technical operations address aspects of WMD material that are not encountered in standard law enforcement disaster operations. Technical operations involve measures to identify the WMD agent or device; assess the threat posed by the WMD agent or device; provide consultation to decision makers concerning the implications of the WMD agent or device for crisis management and consequence management; render safe, transfer, or dispose of a WMD agent or device; and decontaminate response workers and the affected population and environment. a. Weapons of mass destruction are categorized into three major areas, which include nuclear, biological or chemical weapons (NBC). (1) Nuclear or radiological terrorism ranges from the actual Annex H 62 August 2003 detonation of nuclear weapons or devices to nuclear threats or extortion. Two examples are radioactive substances to contaminate a drinkin g (2) Biological weapons can be either infectious agents (replicating) such as bacteria, viruses and fungi, or toxins (non -replicating), which are poisons produced from replicating agents or other living organisms which are pathogenic to man. (3) Chemical weapons are defined as compounds, which through their chemical properties, produce lethal or damaging effects. They are classified by their effects: nerve agents (Tabun, Sarin, Soman, VX), blood agents (hydrogen cyanide, cyanogen chloride, arsine), choking agents (phosgene) or blister agents (mustards, Lewisite). (See Appendix 2 to this Annex.) 3. The lead agency for crisis management response for terrorist incidents within the United States is the Federal Bureau of Investigation of the Department of Justice (DOJ-FBI). The FBI coordinates crisis management response operations throughout a terrorist incident. 4. The Arizona Radiation Regulatory Agency (ARRA) is the state's lead agency in terrorist incidents involving nuclear material. The Department of Energy, which is the lead federal agency for radiological incidents, will implement the Federal Radiological Emergency Response Plan to coordinate radiological responses. ARRA will assist in assessing the situation, developing protective action recommendations, coordinating the release of public information regarding the event, and serving as the primary state source of technical information regarding the on -site conditions and the off -site radiological effects. 5. The Department of Health and Human Services (DHHS) is a supporting federal agency in terrorist incidents involving biological or chemical material. DHHS will assist in threat assessment, consultation, agent identification, epidemiological investigation, hazard detection and reduction, decontamination, public health support, medical support and pharmaceutical support operations. 6. The U.S. Environmental Protection Agency (EPA) is a supporting agency in terrorist incidents involving hazardous materials as defined under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). EPA will implement the National Oil and Hazardous Substances Pollution Contingency Plan to coordinate the environmental response, which provides environmental monitoring, decontamination and Annex H 63 August 2003 long-term site restoration operations. 7. Operational boundaries may be used to control access to an affected area, target public information messages, divide operational sectors among responders, and facilitate assessment of potential effects on the population and the environment. These operational boundaries may include the following: a. The Crime Scene Boundary. The crime scene boundary defines Law Enforcement crime scene. Access to the crime scene may be restricted on authority of the FBI, DPS and local law enforcement. b. The Hazardous Materials Boundary. The hazardous materials boundary defines the hazardous materials site, which may be referred to in technical operations as the ❑working point❑ (nuclear) or the ❑hot zone❑ (biological/chemical). Depending on the spread of contaminants, the hazardous materials site may include some portions of the crime scene and the surrounding community. Access into this area may be restricted to response personnel wearing protective clothing and using decontamination procedures. c. The Disaster Boundary. The disaster boundary defines the community -at -risk, which may need to take protective actions such as sheltering, evacuation or quarantine. Access into this area may or may not be restricted on the authority of the state or local health department. B. Organization 1. Terrorist incidents are unpredictable in scope and size and will require the activation of the emergency response organization and EOC. Refer to Basic Plan and Annex A. 2. It can be expected that a number of federal and state agencies will assist local authorities in responding to the incident. 3. Upon confirmation that a terrorist incident has occurred, the on -scene incident command system will be expanded and integrated into the town's incident management system. The EOC will primarily be responsible for interagency coordination in addition to its primary function of setting priorities for response, concentrating on preservation of life and property and the establishment of security. 4. During a terrorist incident, operational transition from crisis management to consequence management, and the corresponding shift in lead agencies, may be complex. Transition could be immediate and clearly defined, or both crisis management and consequence management operations could Annex H 64 August 2003 overlap. C. Planning Factors 1. Response to a nuclear, biological or chemical (NBC) terrorism site closely resembles a response to a hazardous materials (hazmat) situation with the following modifications: a. Law enforcement is the lead agency for terrorist incidents, but fire services are best equipped for hazmat situations. Close coordination will be required. The precedence of law enforcement responsibilities may be displaced by significant health and safety issues. b. The site control zone (Appendix 2 to this annex) for some of the chemical agents may extend to a distance of several miles. c. Mass decontamination may be required before victims can be transported for medical attention. d. Increased attention will be required to detect physiological clues about the nature of the hazard and to recognize and react to symptoms. e. Biological agents may be difficult to diagnose until symptoms appear, which could result in delays of several days until the disease is detected. f. Protection from chemical and biological agents can be accomplished by evacuation or in -place sheltering. 2. The FBI has procedures in place to mobilize federal assets, including consequence management organizations, at the first sign of a potential WMD crisis. Response time planning should be 6-12 hours. 3. The Department of Energy and Department of Defense can provide, through the FBI, their Nuclear Emergency Search Team (NEST), which can measure radiation, identify radiation sources, identify weapons, render nuclear weapons and devices to a safe condition, limit the radiation damage of an explosion if one has occurred, and decontaminate contaminated areas. D. Tasks 1. EOC Staff a. Coordinate requirements for resources. b. Establish contact with law enforcement agencies and share Annex H 65 August 2003 intelligence information about possible terrorist activity. c. Establish liaison with private and public health and medical facilities. d. Brief key officials. e. Plan traffic control procedures for evacuation movement. f. Commence shelter operations, if necessary. g. Establish contact with supporting levels of county, state and federal government. h. Activate the Maricopa County Medical Alerting System (MCMAS). 2. Law Enforcement Pre -incident a. Identify potential terrorist capabilities and intentions, as well as conducting an evaluation of general or specific vulnerabilities. b. Maintain liaison with state and federal law enforcement agencies that can provide information regarding potential or known terrorists, potential or expected targets, and methods normally used against these type targets. C. Develop a standard operating procedure to identify whether an incident is a terrorist act. d. Contact the FBI (602-279-5511) on determination of a terrorist incident with FBI jurisdiction. Post -Incident e. Ascertain whether the incident is a terrorist act. If the incident is identified as a terrorist act, initiate notification procedures necessary to activate the federal response. f. Establish an on -scene command post and, with support from the responding fire department, establish an on -site control plan. See Appendix 1 to this annex. g. Recommend activation of the EOC. In. Control access to the affected area. Annex H 66 August 2003 i. Provide warning to the public. Collect and disseminate information and intelligence. k. Provide law enforcement and security protection forthe personnel and equipment of supporting units. Be prepared to secure the scene, awaiting specialized equipment if necessary. Federal response to a terrorist incident may take several hours. 3. Fire Department a. Dispatch hazmat team and command post personnel to establish an on -site control plan. b. Conduct operations at the scene with consideration to a contaminated environment and decontaminate victims before transport. Notify hospitals which patients were contaminated. C. If the incident involves radiological hazards, hazardous chemicals or biological agents, utilize self-contained breathing apparatus and proper protective clothing. d. Advise Law Enforcement clear the scene of all persons not protected by such equipment and secure the evacuation hot zone. e. Establish a contamination reduction corridor at the edge of the hot zone for persons and equipment suspected to be contaminated. f. Segregate clothing and equipment used near the scene until they can be monitored for contamination. g. When removing injured persons from the incident scene, do it rapidly and avoid contact whenever possible. Open wounds should be covered immediately. h. Injured persons believed to be contaminated should be wrapped in blankets to avoid contamination of other persons and equipment. i. Request mutual aid, if necessary. j. A terrorist incident location is a crime scene, and removal of material or persons from the area should be cleared through Law Enforcement. 4. Public Works Department. Close coordination with Law Enforcement to prevent disturbance of the crime scene and with the responding fire Annex H 67 August 2003 department to ascertain contaminated or other unsafe areas will be necessary before proceeding with the following: a. Provide barricading. b. Conduct debris clearing. C. Provide assessment of the damage and emergency repairs to county property. d. Assist in traffic control and evacuation. 5. Other departments will provide support functions as outlined in the Basic Plan and Annex A. IV. DIRECTION AND CONTROL. Refer to Annex A. V. ADMINISTRATION AND LOGISTICS. Standard emergency administration and supply procedures will be used. See Basic Plan and Annex A. Annex H 68 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX H — TERRORIST INCIDENTS APPENDIX 1 — SITE CONTROL PLAN Environmental Protection Agency Terms Exclusion Zone Contamination Reduction Zone Support Zone Hot Line Contamination Control Line Other Common Terms = Hot, Red, or Restricted Zone = Warm, Yellow, or Limited Access Zone = Cold or Green Zone = Contamination Perimeter = Safety Perimeter ♦6 1 Stq�lNr. a WIND DIRECTION Appendix 1 to Annex H 69 August 2003 LN r Z W Q J MMQ Z Z J U w U W W J W U) LL O H _U X _T m 2 a ai (n Enm m to N V) cu of C ° Eo Eo E E E E E E E E E' cN� _� —0 s O ,- N 7 E V 3 V V N N _O U C co O c c T _ cn 0 y m a m a) a)rn of co N U O m o— E0 Eo _d E E E E o E E LO m E E % CL Q) N tl� C U) V V O n co m to m ?C O C cn cC O m — D. > C cO cc m m C co C cc E Q � co cn o ,= c6 0 co cD CO O U C .0 a m Ccn m O Ln LO O N p O CDO O C 4� y O m U Z CD O O O m Z Z Z Z 0 N C O c') N 6 r- M) C T m M m m L C c9 E m 00 [� m Lo V n U O a) a) a)C ca O a) 'a L_ � 'C N O cc 3 U CJ coa Lm. — m m m U C L n 0 o C C C 3 Q 'D co C C ca m y E 'J m U 0 O Y p Y O O p Y O U O Y O cn O QS O pp C0C .Y N O y .r... cmo .0 E C O 0 Z O in O - p U) CD O .� Z 0 Z Z 0 Z co .a O 00 N c O 6 O C7 O O m tD C) ..- Op O O V) CON O E 0 O V N O tUC ri Y O p M U e. U > CL a 0 E c 0 c m ECU c m 'c ca 3 J E m 4) � E m i O O O U) D C Z Z 0 Z Z L a 0 Z CD O ,r Z O Z C CO N O N '- E VO C c9 N N U 0 O 7 C 2mm J E N O E O 0 E � 0 O U m j O m N O 0 Z Z Z Z O Z LO Cl) Z Z N O O O M O Cl) m dC— U ci a)a) L .Y U m m CDo 'C iz 0 J w "-' O O Cl) CD> O C a mE � a)00 OO 0 a)U U 0 o m o d U v E t° Z p Lo O m m o p '- `D U E o o o ro° z� o �ci com p p o E W o 3 m is N L - a) c D _ J E N pOL O O Ea) 0 N U C m cn cc7 cII m W O 0 p 0 m cm c`') h 0O 0 O p "' _� QE � O O N cc c0 O Z p III 'm O 4 O O O C U p L O u7 O U E O O O V 7 O O a)> z m m t — d' L _U E CD U m fII C Z �0 my Uo m m t° 0 Hm � E Q m 0 X cc Y U Q m 0 J ac) C7 m Q Q Q Q J -E C'3 C7 C7 > y U Q Cl) 2 �= U m Z Z Z Z U) m 0 C m m cm N t4 C m e U c4 a c p 0 m 9 t 3 M c W Z -0m 0 7 In C O m J W O 0cr. _U H Q +' m ►� m s U M C d p V co F- Z d d U d Q V) U U) U W Z D O) O X i cm 0 Q C C d Q� d to m WCY, m C N C m O y U Z Q d V C C ca c pin O O m :: ro :� C C Y ? d« H o O Q c O Q� c fE c L N L 'fl d d U Z M c�II F- c4 Cl) (n Q m. U 2 � Q m 7 L L Ln Cl? cr) C) O O O N m U) � 2 m C � O Q N T E E a) C L c9 m 2 C cQ m _l O m CD c c0 0 m cE m E E cD m d J m r C 6 E C O m� U c U I� m -0-6 m c Eco m d O O Z 0 cn c Z c J � m � U � c _m J N E � (n`o O N a x:2 W O �2 T (nW E_ m .a m cE _ d > E X Q U ate) Z > c > O Q m U 0 CD N O X J a3 Q E Q FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX I - EARTHQUAKES I. SITUATION A. Maricopa County has experienced mild earthquake activity, to include tremors, in the past. B. Earthquakes can cause casualties and property damage; secondary effects such as fire and landslides; and disruption of gas, water, sewer and electrical distribution systems. C. Aftershocks (those tremors occurring after the initial earth movement) can result in additional damaging effects on people and property. II. MISSION To provide effective response to the damaging effects of earthquakes and to initiate prompt recovery efforts. III. EXECUTION A. Organization. See Annex A, Direction and Control. B. Tasks 1. Mayor. See Basic Plan. 2. Town Manager. See Basic Plan. 3. Town Manager Emergency Management Designee. See Basic Plan and Annex A, Direction and Control. 4. EOC Staff a. See Annex A, Direction and Control. b. Obtain the following information from the Maricopa County EOC: (1) Seismographic data about earthquake epicenter and intensity. (2) Electrical outages and anticipated restoration times. Annex 1 71 August 2003 c. Obtain information about Fountain Hills customers of APS who are on life support systems. Notify the Fire Department if any are suspected to live in an area that has experienced a power failure. d. Collect and maintain data on condition of buildings and other facilities, which are or may become weakened by earthquake activity. 5. Law Enforcement a. See Basic Plan. b. Establish an on -site command post if the damage is sufficiently local in nature. If damage is widespread, establish a mobile command post to coordinate field inputs to the Town EOC. C. Perform rapid survey of damaged areas. d. Wam citizens to leave buildings considered to be unsafe for further occupancy. 6. Fire Department a. See Basic Plan. b. Assist Law Enforcement in establishing an on -site or mobile command post. C. Evacuate citizens on life support systems if they live in an area that has experienced a power failure. 7. Public Works Department a. See Basic Plan. b. Survey damage to buildings, roads, utilities and other facilities and report that information to the EOC. C. Designate areas to be used for debris and waste disposal. d. Establish priorities for the repair of public utilities and facilities. C. Support. See Basic Plan. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex 1 72 August 2003 FOUNTAIN HILLS, ARIZONA EMERGENCY OPERATIONS PLAN ANNEX J - NATIONAL SECURITY EMERGENCIES I. SITUATION A. See Basic Plan. B. The course of international events could produce a situation, which requires the Town of Fountain Hills to change from peacetime operations to wartime readiness. C. Nuclear attack could be preceded by a period of increased international tension, enabling the Town to take increased -readiness actions. D. The Town of Fountain Hills is north of the Phoenix risk area, which means it is unlikely to experience the direct effects of a nuclear detonation. It may, however, experience fallout following a nuclear attack. E. The Town of Fountain Hills does not have any designated fallout shelters. F. The Town of Fountain Hills does not have attack -warning sirens. G. Most radio and television stations in Maricopa County are participants in the Emergency Alert System (EAS). Radio station KTAR (AM Frequency 620 KHz) is the primary EAS station for the Phoenix metropolitan area and has direct telephone and radio contact with the Maricopa County EOC. H. Through loss of control of missile installations, or as a deliberate act of terrorist groups, detonation of a single nuclear device/warhead is a possibility. II. MISSION To prepare for a potential nuclear attack during periods of increased international tension, wam of impending attack, and reduce vulnerability to radioactive fallout. Annex J 73 August 2003 Ill. EXECUTION Ia Concept of Operations 1. State of Arizona Readiness Defense Conditions (REDECON) are used to define the level of readiness required by varying degrees of international tension. a. REDECON FOUR is the normal peacetime situation, with no immediate threat of war. State and local governments are concerned with carrying out their regular statutory responsibilities. During this period, they take steps to perfect and test their operational readiness procedures, including plans to cope with natural disasters. b. REDECON THREE may be announced by the Governor when the international situation dictates an increased -readiness condition. Announcement of this condition will not involve formal alerting of the general public. c. REDECON TWO may be announced by the Governor when the international situation indicates that general war appears to be imminent. d. REDECON ONE will exist automatically when the United States is under attack or a tactical warning has been received. If a surprise attack occurs during any other REDECON, transition to REDECON ONE will be automatic. 2. The Maricopa County EOC will be activated on a 24-hour basis when REDECON THREE is declared. The County EOC will assist all the towns and cities in the County with their increased -readiness measures and will release information to the public on subjects such as attack warning, where to go and what to do in case of attack, and radiation hazards. 3. The Town of Fountain Hills EOC will be activated on a 24-hour basis when REDECON THREE is declared. Actions taken during this period are designed to ensure an orderly transition from normal peacetime operations to wartime readiness. 4. Warning of a nuclear attack will be received by the Maricopa County EOC and the Sheriff's Office over the National Warning System (NAWAS). Annex J 74 August 2003 Upon receipt of the warning, Law Enforcement will notify the Town EOC and the Fire Department. The Police and Fire Departments will alert the public by means of sirens and loudspeakers. 5. The citizens of Fountain Hills should turn on an EAS radio or television station for information and instructions, and then prepare to take shelter. 6. The fallout monitoring station will report measurements of fallout radiation to the EOC. The EOC will report that information to the County EOC, which will analyze the radiological threat. The Radiological Defense (RADEF) Officer at the County EOC will offer advice as to what activities, if any, should be authorized outside the fallout shelters. 7. If the County EOC cannot be contacted for advice in a radiation environment, the EOC Staff will base its advice to the public and direction to employees on the following table, developed by the National Council on Radiation Protection and Measurements: Radiation Exposure (in Roentgens) Accumulated in Medical care will be needed by 1 Week T -,month 4 Months NONE 150 200 300 SOME 5% may die 250 350 500 MOST 50% may die 450 600 N/A Every effort should be made to keep exposure of the general public less than the top line of the table. Any exposure of public service personnel above that amount should be only as a result of weighing the expected benefits against the additional body injury sustained. B. Organization. See Annex A, Direction and Control. C. Tasks Mayor a. See Basic Plan. b. Activate the EOC for 24-hour operations when REDECON THREE is declared. 2. Town Manager. See Basic Plan. Annex J 75 August 2003 3. Town Manager Emergency Management Designee a. See Basic Plan and Annex A, Direction and Control. b. Direct and control RADEF operations, with the assistance of the RADEF officer at the Maricopa County EOC. 4. EOC Staff a. See Annex A, Direction and Control. b. Prior to an attack (1) Identify buildings that could be used as expedient fallout shelters and designate shelter managers for those buildings. (2) Test EOC communications. (3) Submit Increased Readiness Reporting (IRR) Local Status Reports to the County EOC. The initial report is due as soon as possible after REDECON THREE is established. Reports will be submitted daily by 5:00 p.m. or upon establishment of a new readiness defense condition. After the initial report, only those items which change need to be reported. (4) Consult with Maricopa County EOC for advice on radiological defense (RADEF) requirements. (5) Ensure that the Town's citizens are familiar with attack warning signals and know how to respond to such a warning. c. During and after an attack (1) Receive radioactive fallout measurements from the fallout measuring station and pass that information to the Maricopa County EOC. (2) Ensure that no Town employees or citizens leave their shelters without authorization of the RADEF officer at the County EOC. 5. Law Enforcement a. See Basic Plan. b. Prior to an attack (1) Test warning and alerting systems. Annex J 76 August 2003 (2) Test communication systems. c. During and after an attack (1) Receive attack warning. Notify the EOC and Fire Department, and alert the public by means of sirens and loudspeakers. (2) Assist citizens in moving to expedient fallout shelters. (3) Maintain law and order within expedient fallout shelters. 6. Fire Department a. See Basic Plan. b. Prior to an attack (1) Test warning and alerting systems. (2) Test communication systems. (3) Advise the public about fire prevention and suppression measures. c. During and after an attack (1) Assist citizens in moving to expedient fallout shelters. (2) Assist Law Enforcement in alerting the public of an attack. (3) Activate the fallout monitoring station and report measurements to the Town EOC. 7. Public Works Department a. See Basic Plan. b. During periods of increased readiness (1) Prepare expedient shelters, to include the EOC, for occupancy. Stock shelters with water, food, sanitation equipment, basic medical supplies and other essential equipment. (2) Train shelter managers. (3) Advise citizens about how to construct expedient home shelters. Annex J 77 August 2003 c. When an attack is imminent, dispatch shelter managers to shelters. D. Support 1. See Basic Plan. 2. The Maricopa County EOC will provide RADEF advice and support. IV. DIRECTION AND CONTROL. See Annex A, Direction and Control. V. ADMINISTRATION AND LOGISTICS. See Basic Plan and Annex A, Direction and Control. Annex J 78 August 2003 From: INCREASED READINESS REPORTING QRR) LOCAL DATE: REPORT NO. STATUS FORM INCREASED READINESS (IR) ACTIONS TO BE REPORTED TODAY SREP ORT BASIC ACTIONS TO INCREASE LOCAL GOVERNMENT READINESS 1A Head of government briefed and checklist of IR actions reviewed 1A 1 B Local Emergency Operations Plans reviewed and/or updated 1 B EMERGENCY PUBLIC INFORMATION 2A Moderate step-up in local CD public information activities 2A 2B Local CSP-type information disseminated to public 213 2C Final public information crisis preparations short of taking shelter 2C SIGNIFICANT PUBLIC ACTIONS DURING IR PERIOD 3A Estimated level of retail food sales above normal 3A 3B Estimated level of retail gasoline sales above normal 36 3C Estimated number of persons who have evacuated 3C 3D Estimated number of evacuees arriving 3D ACCELERATED TRAINING 4A Accelerated training started 4A 4B Number of shelter managers completing training 41B 4C Number of radiological monitors completing training 4C EOC FACILITY IMPROVEMENT 5A Improvement or development of EOC completed 5A DIRECTION AND CONTROL READINESS 6A EOC manned 24 hours at standby level 6A 6B EOC manned at minimum operational level 6B 6C EOC fully manned 6C PUBLIC SHELTER IMPROVEMENT 10A Expedient group shelter improvement and/or construction started 10A 10B Expedient group shelter improvement and/or construction completed 10B TEXT: Comm. Initial Time sent Appendix 1 to Annex J 79 August 2003 CRITERIA FOR MAKING REPORT ON IRR LOCAL STATUS FORM 1A HEAD OF GOVERNMENT BRIEFED AND Report'Yes' it head of government (mayor, city manager, board of county commissioners. etc.) has I CHECKLIST OF IR ACTIONS REVIEWED been briefed on situation and checklist of IR actions has been reviewed. (See Attachment B) 1 B LOCAL EMERGENCY OPERATIONS Report'Yes' if your local Emergency Operations Plan and supporting annexes have been reviewed 16 PLANS REVIEWED AND/OR UPDATED and/or updated. 2A MODERATE STEP-UP IN LOCAL CD Report'Yes' if the local government has taken any public information actions which represent a 2A PUBLIC INFORMATION ACTIVITIES moderate but significant step-up from the normal level of activity. These might include. for example, one or several of the following: increased distribution of CD literature; use of the 'In Time of Emergency; newspaper and radio material; and the 'Protection in the Nuclear Age' television film: making low-keyed news announcing CD classes for the public; etc. Do ➢.41 answer *Yes' if the only step-up has been answering an increased number of telephone inquiries from citizens. 2B LOCAL CSP-TYPE INFORMATION Report'Yes' it CSP maps and instructions (on 'where to go and what do in case of attack') have been 25 DISSEMINATED TO PUBLIC disseminated during the Increased Readiness period. It your community has P-Q.S completed a CSP. report'Yes' if information has been disseminated to the public which covers 'where to go/what to do,' either specifically or in general terms. Examples would include publication of a list of public shelters in the newspaper, together with advice on the general areas of the community with public shelters available; advice for persons in areas not served by public shelters on taking shelter in home basements (it available) H04 on how to improvise additional fallout protection In or near homes with 0r without basements: and advice on supplies to be taken to public or home shelter areas. 2C PUBLIC URGED BY LOCAL Report'Yes' it local authorities in your community have urged citizens to make without delay such final 2C AUTHORITIES TO MAKE FINAL CRISIS preparations as improvising and stocking home shelters: gathering supplies to take to public shelters PREPARATIONS SHORT OF TAKING upon warning to do so: cleaning up trash; closing venetian blinds or whitewashing or covering w widows SHELTER with aluminum foil (to reduce fire hazard) filling containers with drinking water; etc. 3A ESTIMATED LEVEL OF RETAIL FOOD Report estimated percentage level of retail food sales above normal for the time of year and day of 3A SALES ABOVE NORMAL week. For example, report 25 percent above normal. (This is the same as 125 percent qt normal.) 3B ESTIMATED LEVEL OF RETAIL Report estimated percentage level of retail gasoline sales above normal. (See example for 3A above.) 3B GASOLINE SALES ABOVE NORMAL 3C ESTIMATED NUMBER OF PERSONS Report the estimated total number of people who have evacuated, either voluntarily or by direction. 3C WHO HAVE EVACUATED 3D ESTIMATED NUMBER OF EVACUEES Report the estimated total number of evacuees who have arrived in your jurisdiction. 3D ARRIVING 4A ACCELERATED TRAINING STARTED Report'Yes' if accelerated training commenced locally in one or more areas (e.g., Shelter Manager, 4A Radiological Monitor, CD education for the public, etc.) 4B NUMBER OF SHELTER MANAGERS Report the cumulative number of persons who have completed training as shelter managers during 4B COMPLETING TRAINING Increased Readiness period. 4C NUMBER OF RADIOLOGICAL Report the cumulative number of persons who have completed training as radiological monitors during 4C MONITORS COMPLETING TRAINING Increased Readiness period. 5A IMPROVEMENT OR DEVELOPMENT OF Report'Yes' 0 your EOC is now fully operational because you have completed the improvement or 5A EOC COMPLETED development of an adequate EOC facility. These improvements or EOC developments might include such things as protection factor, emergency power with fuel, communications equipment, and other life or operational support systems. _ 6A EOC MANNED 24 HOURS AT STANDBY Report 'Yes* it EOC is manned 24 hours with minimum staff so that there is at least a 24-hour 6A LEVEL communications watch. You should answer 'Yes' if the EOC is used on a 24-hour basis for day-to-day operations — for example, by peacetime fire or police dispatchers. 6B EOC MANNED AT MINIMUM Report *Yes' if EOC is manned by minimum operational staff. 6B OPERATIONAL LEVEL 6C EOC FULLY MANNED Report *Yes' if EOC is fully manned. (Report in text, location of chief executive if not at EOC; for 6C example, 'Mayor is at his office in City Hall during working hours. 5 minutes from EOC.') 10A EXPEDIENT GROUP SHELTER Report'Yes* if local government street or Public Works Department equipment and personnel, or 10A IMPROVEMENT AND/OR construction contractors in your locality, have started construction or improvement of expedient public CONSTRUCTION STARTED shelters (e.g., earth -covered trench or similar types of shelters for groups of people, or upgrading of existing buildings). 10B EXPEDIENT GROUP SHELTER Report 'Yes' if activity has been completed. 10B IMPROVEMENT AND/OR CONSTRUCTION COMPLETED DETERMINING SHIFTS IN POPULATION 3C ESTIMATED NUMBER OF PERSONS WHO This number can be determined through coordination with local utility companies. There is a 3C HAVE EVACUATED correlation between the amount of electricity and water used and the population. For example, a 20% drop in usage indicates an approximate reduction in population of 20 %. Utility companies normally keep track of daily usage and should be able to provide you with a percentage figure for your use in determining shifts in population. (Should be used only by a RISK jurisdiction.) 3D ESTIMATED NUMBER OF EVACUEES Registration of arriving evacuees should be used to determine this number. (Should be used only by 3D ARRIVING a HOST jurisdiction.) Appendix 1 to Annex J 80 August 2003 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 10/16/03 Submitting Department: Public Works Contact Person: Dana Burkhardt, Senior Planner Consent:❑ Regular:❑ Requesting Action:® Tt 6oif`6nii ❑ Tvne of Document Needine AADroval (Check all that a ® Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ® Special/Temp Use Permit ❑ Other: Council Prioritv (Check Appropriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ® Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: PUBLIC HEARING and CONSIDERATION of a PROPOSED AMENDMENT TO THE FOUNTAIN HILLS RV STORAGE SPECIAL USE PERMIT to allow an accessory shade structure to be located at 17317 Sioux Drive, aka Lot 2, Block 4, Plat 302: Case# SU2003-08. Staff Recommendation: Approve Fiscal Impact: No Purpose of Item and Background Information: On December 18, 1997, the Town Council approved this site for a Special Use permit to allow outdoor vehicle storage. This request is for approval of a Special Use Permit that would allow a 7,100 square foot metal shade canopy on a lot used for Recreational Vehicle storage. On October 9, 2003 a public hearing was held and the Planning and Zoning Commission discussed this request. List All Attachments as Follows: Staff Report; Memo from Randy Harrel; Application & Plans Type(s) of Presentation: Powerpoint Signatures of Submitting Staff: Dep tment Head/ G Ao LO 1r) 3 Town / Designee Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PLANNING & ZONING DIVISION STAFF MEMO TO: The Honorable Mayor and Town Council DT: October 10, 2003 FR: Dana Burkhardt, Senior Planner RE: SU2003-08; Request approval to amend the existing SUP to include a RV shade canopy LOCATION: 17317 Sioux Dr., aka lot 2, Block 4, Plat 302 REQUEST: A proposed amendment to the Fountain Hills RV Storage Special Use Permit to allow an over height accessory shade structure; Case #SU2003-08. DESCRIPTION: APPLICANT: Roger Cross OWNER: Roger Cross EXISTING ZONING: "C-2" Intermediate Commercial Zoning District EXISTING CONDITION: Storage yard enclosed by an eight foot block fence LOT SIZE: .66 acres SURROUNDING LAND USES AND ZONING: NORTH: "Desert Vista Place Condominiums", multi -family development; zoned "C-- 1" SOUTH: Redrock Auto & School District bus storage; zoned "C-2" EAST: School District bus storage; zoned "C-2" WEST: Auto body repair facility; zoned "C-2" SUMMARY: This request is for approval of a Special Use Permit that would allow a 7,100 square foot metal shade canopy on a lot used for Recreational Vehicle storage. On December 18, 1997, the Town Council approved this site for a Special Use permit to allow outdoor vehicle storage, with the following conditions: 1) Development and continued compliance with Chapter 12, Section 12.05(I) of The Town of Fountain Hills Zoning Ordinance. 2) Special Use permit shall be reviewed by staff with a report to the Town Council on an annual basis to determine continued compatibility with surrounding development. The approval of Special Use Permit case number SU1997-05 included plans for an eight -foot perimeter block wall with view obscuring gates and landscaping along the property frontage. This request is to amend the existing Special Use Permit to allow the addition of a shade canopy structure with a maximum building height of 17 feet, where 15 is allowed by the Zoning fir,,,► Ordinance. The proposed structure is approximately 140 feet wide by 54 feet deep, and would cover the rear 1/3 of the storage lot to provide shade to approximately eight RV parking spaces. The applicant also proposes to attach shade screen fabric from the east and west canopy eaves to the top of the existing block wall to provide additional shade protection. All other portions of the site would remain as is. EVALUATION: The design and location of the shade canopy structure does not conform to the Zoning Ordinance for minimum required yard setbacks or the maximum accessory building height. The proposed side yard setbacks are shown at one foot from the west side lot line and two to four foot on the east side lot line. The required minimum side yard setback is zero lot line, or if a setback is provided a minimum of three feet must be respected. The purpose of the zero lot line setback is to encourage a side -by -side development character, which requires fire rated walls on those lot lines. If a side yard setback is provided, a minimum three-foot setback is required for fire access. The plan proposes a one to two foot setback from the rear property line, where a zero lot line setback is allowed, or if any setback is proposed, it must meet a minimum of ten feet. A purpose of this setback is to require fire rated walls at the lot line, or a minimum ten -foot defensible area from the rear property line. The Zoning Ordinance and Uniform Building Code requires that either this building be constructed with floor to ceiling fire rated walls, similar to an enclosed garage, or respect the minimum building setbacks. If the canopy were designed in conformance with the setback requirements, the Uniform Building Code would not permit the attachment of fabric shade material on the sides, as it would impede ventilation and fire access. This structure, as proposed, may have adverse impacts on the adjacent residential properties to the north. An open canopy may have the potential to resonate noise that occurs under the canopy and project toward the residences. Any lighting underneath the canopy may also be visible from the residences across Sioux Drive. Additionally, the proposed fabric material used to provide shade from the east and west sunlight may become a maintenance problem and degrade with time. The Town has not received any objections to this request. On October 9, 2003 the Planning and Zoning Commission recommended the Town Council approve this request on a 5-1 vote. The Planning Commission believed the applicant should redesign the canopy in conformance with all applicable regulations and stated that it is not the Staff's responsibility to design this structure for the applicant. The Planning and Zoning Commission voted on a motion to continue this request to allow the applicant timer to redesign the canopy to conform to Town Ordinances. The motion failed on a 3-3 vote. RECOMMENDATION: The Planning and Zoning Commission recommend approval of this Special Use request including a 17-foot maximum structure height, case number SU2003-08, with the following stipulations: 1) The applicant shall meet the minimum building setbacks for the shade canopy, as required by the Zoning Ordinance, Uniform Building Code, and all other applicable regulations. 2) The applicant provides substantial landscape improvements along the Sioux Drive property frontage, in accordance with Section 12.05 of the Zoning Ordinance. A registered landscape architect prepared landscape plan is required at time of building permit. 3) It is essential that the Fire Department have access to all portions of the property for firefighting operations. If it is determined that access cannot be made safely and effectively, a fire sprinkler system may be required. The final decision on whether or not to require a fire sprinkler system will be made prior to the issuance of a building permit. 4) The existing rear fence is set at the centerline of the abandoned alley on your property, within the retained 15' public utility and drainage easement. Obtain abandonment approval or an encroachment permit from the Town and affected utility companies, or setback all structures and roofs outside of the 15' rear public utility and drainage easement. M EADept Corr\Randy\Cross RV Storage Canopy SU2003-08.doc Chron TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT INTER OFFICE MEMO TO: Dana Burkhardt DT: September 26, 2003 FR: Randy Harrel, P.E., L.S.i RE: Cross Recreational Vehicle Storage Town Engineer ��,, `r Canopy — SU2003-08 This memo provides our technical review comments for the above Special Use Permit request. Planning, Engineering, and Building Safety personnel met with the applicant on 9-19-03, and discussed initial concerns that have resulted in these technical review comments, as follows. The canopy plans indicate a 53'6" x 120' 10" x 14' clear height for a metal canopy roof, supported by 8 steel pipe columns, on the existing aggregate surfacing "floor". LANDSCAPE: Landscape the property frontage (from the street curb to the front masonry fence, which is appropriately set back 10' from the front property line, in accordance with Article VI of the Town's Subdivision Ordinance. (This area currently has a D.G. surfacing with no landscaping.) • SETBACK/FIREWALLS: Setback the proposed structure, or provide rated firewalls on the property sides and rear, in accordance with UBC and UFC requirements. [Building Safety's initial opinion is that 1-hour rated walls (without a parapet) would be required if the canopy was not set -back. The required setback to an un-rated canopy edge would be 7' (10' to the "wall -line", less an allowed roof overhang of 3', since the roof proposed is non-combustible). If various building wall line(s) are constructed, the fire sprinkler requirements for this structure should also be re -reviewed with Fire Chief Zimmerman. Bldg. Safety also raised a 20% openness issue, which will need to be reviewed with them if building walls are added. The building footings should also not undermine the adjacent retaining wall's horizontal sliding resistance zone.] • REAR PROPERTY LINE: Our aerial photography indicates (contrary to what was indicated at our meeting) that the existing rear masonry fence line is actually located at the centerline of the former alley (which was abandoned in Res.1995-68, ROWA 94-03). So, the fire setback will need to be from the current rear property line (approximately the existing masonry fence line). PUE/DE RETAINED: The above alley abandonment retained a Public Utility Easement and Drainage Easement. If requested by any utility, the applicant would need to provide gates at the rear 15'. Permission would also be required from all utilities to allow setting the canopy over the retained PUE, and from Town Staff to set the canopy over the retained DE. EADept Corr\Randy\Cross RV Storage Canopy SU2003-08.doc Chron • SHADE SCREEN: The applicant indicated that he wants to drape shade screen from the canopy structure roof to the existing masonry walls. The canopy roof would need to be designed for that wind load "sail area", and the adequacy of the existing masonry walls to handle that additional load would need to be checked structurally. Chief Zimmerman would also need to review the fire accessibility adequacy. • AGGREGATE FLOOR SURFACE: Although this seems unusual, we are not currently aware of any prohibition of aggregate surfacing under a roof canopy. • GUTTERS/DOWNSPOUTS: These would be required to prevent roof drainage from flowing directly off the roof onto the adjacent properties. The applicant should acknowledge these items prior to P&Z/Council consideration of this SUP. Att. Aerial Photography (with property lines (& alley) shown) Cc: Tom Ward w/att Peter Johnson " Art Candelaria " Chief Zimmerman " Roger Cross (applicant) 14748 E. Cholula Fountain Hills, AZ 85268 2 AERIAL PHOTO DATE: MARCH 2001 CROSS RECREATIONAL VEHICLE STORAGE CANOPY SITE O.1y'TA11V o Y 0 V., mat is r -aw The Town of Fountain Hills PSA COMMUNITY DEVELOPMENT DEPARTMENT For Offival Use Only Fountain Hills, Arizona case Manager: Area Specific Plan or Change General Plan Amendment Plan of Development Zoning Change Variance NATURE OF THE REQUEST: 4 11 PROJECT NAME (-/ti 7-,41 /t./ �4 ,/s /2 v APPLICATION"'. Preliminary Plat Cut/Fill Waiver -X- Special Use Permit SU Comprehensive Sign Plan HPE Change or Abandonment -P r.Z Dr- -4� L�l i S70/z,4Z- . �/U4GS' S if e� Stf Mrs. Applicant: l� n . *' r ('-b r) 0 ' S Mr. Day Phone ? Z� Ms. Address: � �� `� � L- C � 1 u i a Dr Gty: _ State: Zip; Mrs. Owner: u 6- � le /�A S Mr. Day Phone S 4 Ms. Address: 3'd City: State: Zip: If application is being submi ed must be completed, ro Bone od�er a o er of Me property under c oa deradon, Gfie sedyon below SIGNATURE OF OW R -?10 ;7 ( DATE 7 d I HEREBY AUTHORIZE 0- ease-Print TO FILE THIS APPLICATION. Subscribed and sworn before me this day of 20 Notary Public My Commission Expires TOWN OF FOUNTAIN HILLS FNG DATE: FEE PAID: Application page 2 of 7 ACCEPTED BY: (See Fee Schedule)---°`-�' FT" s er�_�l-.�;�C> -ram '7 PBA t 0? The Town of Fountain Hills LEGAL DESCRIPTION z- Plat Name Block Lot PROPERTY ADDRESS 7� i 7 S i° u k �%2, v�-� PARCEL SIZE (Acres) . (v (o ASSESSOR PARCEL NUMBER NUMBER OF UNITS PROPOSED — cy/ie TRACTS EXISTING ZONING: PROPOSED ZONING Application Page 3 of 7 "" Case Number I . 1 ' I � 1 . 112 FaQAO. 71,14 I -sir Y i LA CG1r4l✓CCA:��i i � i � � I ` 1 f--ijj, "aa� ..I _"`'"9iil---•44."•.....ss• ..- I �„'.'C(I I . 1 �c O v spa-�'�: s �:_ __ -: . 2_,�`�-r�-•�s�� -- -- ►$-�1-� :��- ' -- 4 - --- `tip -- - --- . tj /e1(s o�rSi/1--ci�-lcn�' W[cL� � c�2 od 4-S 1 I 1 r • I � I , I 1 � I At ,.Ft' e7 -- - ' I ff I i cr �o i I I , , : ! ! I f I i I d;i k-� - 9 1 PE :!c�W�Fc2E rL��_ i % 7-1(14 4- j r.0 4�7: L 5'4o P L! rod 't oil - r .ItJOTE. l�fetle 5; i- I_ .� CfEST - - - a a x J Z Z < O C Lt U < LL1 — >- U C < L X H r O Q O LW Y y rt-- LU < O E= Z } LU N < } 0 -j < =< Ln s < < O En C L:7 V y r� Ix to L�1 LL7 uj LY . ' :n Fujpp F F ti < } _v < m Z _V Q s3 O _ LU s >: Lv E U O Li LTJ O a < sLIJ cm < F Vi cm y < Z C � _ Q L C C9 C =' O } Ln = C _ � Y < C <F O m C F y s < m m y En O y LSJ LLU '^ F t� U F C y y Z < —u y u 3� s < y - m Y y Z LU -� s LLl ,� Ln r' Z W rn 3 zL< LZ a y C j s C Q < LO < W{,uL� y O F- — C' y C O < F r= F u7 �p F O < _ 3 FO O p < }= U O y N y p C7 Q} E Lt] < U LU 0 LL7 Z z Z — LW Z U = G cn LY L:1 (- O C O C LZ LL, Pi 3 3 3 < LZ _ F t= 3 < u 3 Lz 3 O L_ ci L fi Lx AF 00 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 10/16/03 Submitting Department: Public Works Contact Person: Dana Burkhardt, Senior Planner Consent:❑ Regular:❑ Requesting Action:® TVDe of Document Needina Auuroval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Annronriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ® Community Development ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ® Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: CONSIDERATION of the PRELIMINARY PLAT for "Colony Wash Vista Condominiums", a 20-unit multi -family development located at the northwest corner of Panorama Drive and the Colony Drive alleyway; Case# S2003-13. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This request, by Gene Baker, is for approval of the preliminary plat for "Colony Wash Vista Condominiums", a 20 unit multiple -family subdivision. The property is an unplatted piece of land located in the "C-1 and R-4" Zoning Districts. List All Attachments as Follows: Staff Memo Type(s) of Presentation: NA Signatures of Submitting Staff: De rtment Head - Town`Manager / Designee Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PLANNING & ZONING COMMISSION MEMO TO: The Honorable Mayor and Town Council DT: October 10, 2003 FR: Dana Burkhardt, Senior Planner RE: Preliminary plat for "Colony Wash Vista Condominiums", Case #S2003-13 LOCATION: The unplatted parcel of land located west of Panorama Drive, south of Colony Wash, and north of the Colony Drive Alley. REQUEST: Consideration of the preliminary plat for "Colony Wash Vista Condominiums", a 2.71 acre, 20 unit condominium subdivision. DESCRIPTION: OWNER: Colony Wash Vista, L.L.C. APPLICANT: Gene Baker EXISTING ZONING: "R-4 & C-1" Split zoned Multiple -family and Commercial Zoning Districts SURROUNDING LAND USES AND ZONING: NORTH: Colony Wash; zoned "R-4" SOUTH: Alley and a mini storage facility; zoned 46C-1" EAST: Panorama Drive and CCWC Storage yard; zoned "C-2" WEST: Colony Drive Alley and Commercial Buildings; zoned "C-2" SUMMARY: This request, by Gene Baker, is for approval of the preliminary plat for "Colony Wash Vista Condominiums", a 20 unit multiple -family subdivision. The property is an unplatted piece of land located in the "C-1 and R-4" Zoning Districts. This property is constrained by a 69kv overhead electrical line, which dissects the proposed parking area. The plat proposes four residential buildings and a 149 square foot common amenity building and a swimming pool. The maximum livable area of the proposed dwelling units is 1,216 square and the minimum livable area is 1,109. Each dwelling unit has one garage parking space and one designated uncovered parking space. The plan provides seven guest parking spaces, two of which are handicap accessible. Each building is approximately 26 feet in height and utilizes a combination of a hipped roof and raised parapet roof design. The proposed density of this development is 7.38 dwelling units per acre. The project provides access from two locations along the north side of the Colony Drive Alley. The developer proposes to provide alley right-of-way paving and landscaping improvements for the majority of the alley property frontage. The developer also proposes a single three to five foot interior sidewalk system, which connects to a proposed six-foot meandering sidewalk along the Panorama Drive frontage. The Frontage sidewalk connects to the existing sidewalk located on the east side of Panorama Drive, on the north side of Tioga Drive. EVALUATION: This project conforms to the Town of Fountain Hills General Plan and the Zoning and Subdivision Ordinances. The property is split zoned "R-4" Multi -family and "C-1" Commercial. The preliminary plat configuration is designed so that all of the residential dwelling units are located within the "R-4' Zoning District, and the four garages attached to "Building 4" along with some parking pavement are located within the "C-1" Zoning District. The alley improvements to this site do not necessitate a sidewalk on both sides of the alley right-of-way; therefore staff is requesting that the Town Council waive the requirement for a two-sided sidewalk right-of-way design. The topography of the property slopes down to Colony Wash from the alley and Panorama Drive. The majority of the site is less than 10% gradient, with the steeper slopes located at the north east of the property, abutting Colony Wash. The hillside preservation area proposed on this preliminary plat conforms to the hillside preservation requirements of the Subdivision Ordinance. The Hillside Protection Easement is shown beginning along the north and east boundaries of the construction area, adjacent to the undisturbed wash parcel. On October 9, 2003 the Planning & Zoning Commission recommended unanimous approval of this request with the stipulations listed. The Planning Commission commended the applicant for r. his design given the constraints of this site. RECOMMENDATION: The Planning and Zoning Commission recommend the Town Council approve the preliminary plat for "Colony Wash Vista Condominiums", with the following stipulations: 1) The applicant shall address all improvement plan review comments to the Towns satisfaction, and submit all remaining supporting improvement plans and documents and receive approval of such plans prior to final plat recording. 2) The Town Council waive the double -sided right-of-way sidewalk requirement, and approve the sidewalk design as presented. 3) The alley right-of-way improvements shall include full alley width paving, grading, and landscaping improvements. You may also be required to provide a trash enclosure for the existing trash receptacles located in this portion of the alley. 4) Prior to final plat recordation, provide final acceptance for water service from Chaparral City Water Company, including the approved water service plans for review. PBA 1/02 The Town of Fountain Hills COMMUNITY DEVELOPMENT DEPARTMENT Case Manag Use Only Fountain Hills, Arizona Area Specific Plan or Change X Preliminary Plat General Plan Amendment Cut/Fill Waiver Plan of Development Special Use Permit Zoning Change SU Comprehensive Sign Plan Variance HPE Change or Abandonment NATURE OF THE REQUEST: PROJECT NAME Mrs. Applicant: -(6'nt ii(Q� Z'.(lL�lt L C / Ie7tP.�Day Phone�k'D- i& -gC* o Mr. r. Ms. Address: -�'-L� Qy� � �. City: ` �il- State: fi Z Zip: Tr /00 Mrs. Owner: Day Phone Mr. Ms. Address: City: — State: — Zip: If application is being submitted by som ^ the owner of the prpperty under consideration, the section below nwst be completed. SIGNATURE OF OWNER DATE I HEREBY AUTHORIZE Please Print Subscribed and sworn before me this day of Notary Public FILING DATE: C� 1 FEE PAID: Application Page 2 of 7 My Commission Expires. (See Fee Schedule) CIL # �0-�( TO FILE THIS APPLICATION. 20 ACCEPTED BY: M ` Case Number PBA 1/02 The Town of Fountain Hills P �05 LEGAL DESCRIPTION ALL L33 Plat Name Block Lot PROPERTY PARCEL SIZE (Acres) c�,r?163 NUMBER OF UNITS PROPOSED -� C EXISTING ZONING: ' `V ��/ Application Page 3 of 7 ASSESSOR PARCEL NUMBER IVIA TRACTS n)1,4 PROPOSED ZONING Case Number nno ura rnl Ia. 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Loz-o-l` s O�ls�euoiaseja� } • • .LINO 30N3H3331:1 2l0-1 Zb 'SIIIH NI`d1Nno:j siNnINIWOQNOO ONISSOMO U31N30 NMOl • • a� 00 0 z O Q w J W F- z O w D z O H a > W J � W ; L X LL W J z Q 0 z 0 a w JI4 W z O r W J FW— 4 0� w Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:❑ Regular:❑ Meeting Date: 10/16/03 Contact Person: Dana Burkhardt, Senior Planner Requesting Action:® TvDe of Document Needing Approval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ® Special/Temp Use Permit ❑ Other: Council Prioritv (Check Appropriate AreasZ ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ® Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation Regular Agenda Wording: PUBLIC HEARING and CONSIDERATION of a SPECIAL USE REQUEST to allow an accessory archway entry structure to be located at 12645 Saguaro Blvd., aka Lots 1 & 2 of the Plaza Fountainside Final Plat; Case# SU2003-09. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: This request is for approval of a Special Use Permit that would allow an archway entry trellis to exceed the maximum 15-foot height limitation by approximately 7 feet. List All Attachments as Follows: Staff Report; Application; Plans; Alternative Plans Type(s) of Presentation: NA Signatures of Submitting Staff: /A & Dep rtment Head Town Manager / Designee Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS "" PLANNING & ZONING DIVISION STAFF MEMO TO: The Honorable Mayor and Town Council DT: October 10, 2003 FR: Dana Burkhardt, Senior Planner RE: SU2003-09; Special Use request to permit an over height accessory structure. LOCATION: 12645 Saguaro Blvd. aka lots 1 & 2 of the Plaza Fountainside Final Plat REQUEST: Special Use Permit to allow an accessory archway entry structure to exceed the maximum height allowed, Case #SU2003-09. DESCRIPTION: APPLICANT: Tom Young OWNER: Plaza Fountainside,LP EXISTING ZONING: "TCC" Town Center Commercial Zoning District EXISTING CONDITION: Lot 1 is developed and Lot 2 is under construction LOT SIZE: 2.94 acres SURROUNDING LAND USES AND ZONING: `'W NORTH: Fountain Park; zoned "OSR" SOUTH: El Lago Blvd. and Parcel 12 Final Plat; zoned "TCC" EAST: Fountain Park; zoned "OSR" WEST: Saguaro Blvd. and the proposed "Town Center Condominiums"; zoned "C- 2" SUMMARY: This request is for approval of a Special Use Permit that would allow an archway entry trellis to exceed the maximum 15-foot height limitation by approximately 7 feet. The proposed arched entry feature would span the Saguaro Blvd. entrance to the Plaza Fountainside retail shopping development. The archway is approximately 60 feet long by six feet wide, and covers approximately 370 square feet. The proposed archway provides 17 feet of clearance at the curb, and 18'-4" at the center of the drive. The structure is approximately 22 feet tall at the peak of the arch. EVALUATION: Section 5.06(H) of the Town of Fountain Hills Zoning Ordinance permits detached accessory structures as follows: "Any detached accessory building greater than 120 square feet in size, 1%r shall not be located in any building setback, shall be at least six (6) feet from the main structure, shall be located behind the front line of the primary structure on the front, and behind the street side of the `►' primary structure on the street side of a corner lot, and shall not exceed fifteen (15) feet in height. See diagram after I. Solar Units. An application for a Large Accessory Building (Detached,) that does not meet the above requirements, may be appealed to the Town Council by Special Use Permit." (emphasis added). The proposed accessory structure meets all minimum building setbacks and Zoning Ordinances, with exception to the 15-foot maximum accessory building height. The applicant is requesting the additional height to provide the clearance required for large vehicle access, such as delivery and emergency vehicles. A secondary access point is provided to this site from El Lago Boulevard. The Town Center Commercial Zoning District provides design guidelines to establish a consistent architectural theme for development in the Town Center. Those guidelines are as follows: Section 18.08 Design Guidelines Statement of Purpose. The purpose of the Design Guidelines for Town Center Commercial Zoning District are to establish regulations and restrictions regarding aesthetics relative to architecture and details, comprehensive sign plan and landscape & lighting. The following guidelines represent minimum standards adopted by the Town Council to promote compatible development within the Town Center Commercial Zoning District (TCCD) zoned property. Development in the TCCZD shall comply with the regulation of Chapter 17 of The Zoning Ordinance for the Town of Fountain Hills or these design guidelines which ever is more restrictive. A. Master Architectural Design Guidelines 1. Produce an orderly and aesthetically pleasing development that is compatible with the urban desert setting of the Fountain Hills downtown commercial core. 2. All building plans must be sealed by an Arizona registered architect with an accompanying site plan sealed by an Arizona registered engineer or land surveyor. 3. Architectural style is to be Southwest Contemporary utilizing raised parapets and/or sloping roofs with concrete tile as appropriate. All elevations are to be of front elevation quality with the exception of common walls. Common walls, which will not have an adjacent building under construction within six (6) months, shall be required to be stuccoed and painted in a similar manner as to the front elevation. Roof forms must be continuous and wrap around comers/building planes. Roof lines shall be articulated. 4. Elevations shall use any combination of the following: masonry, natural stone, stucco, rusted or painted steel and exposed wooden beams and columns. Buildings may utilize sills, leaders, beltcourses and similar ornamental features to visually articulate elevations. Elevations shall utilize more than one material in the face of the elevations excluding windows. Windows shall not utilize reflective glass on any elevation. The Community Development Director may administratively approve alternative materials with appeal to the Town Council. Wood siding and unfinished masonry, with the exception of split face block, is prohibited... Staff believes the proposed archway design will appear excessively massive and architecturally inconsistent with the existing development. Staff and the applicant discussed the concern on the mass and design of the proposed archway. The project Architect has determined that the proposed structure may be reduced in height by approximately F-4" to F-6". This provide a maximum overall height of 20'-8" to 20'-6" for the proposed arched design. The applicant has provided the Town with three alternative designs (see attached). On October 9, 2003, the Planning and Zoning Commission unanimously recommended the Town Council approve the archway height and design as proposed. Staff does not foresee any adverse impacts of this structure on the adjacent properties and residents. The Town has not received any objections to this request. RECOMMENDATION: The Planning & Zoning Commission recommends approval of this Special Use Permit as proposed. %W 14000 The Town of Fountain Hills 0, COMMUNITY DEVELOPMENT DEPARTMENT Fountain Hills, Arizona 0 1*8tis APPLICATION lti,2 Area Specific Plan or Change General Plan Amendment Plan of Development Zoning Change Variance Condominium Plat NATURE OF THE REQUEST: Preliminary Plat Cut/Fill Waiver Special Use Permit SU Comprehensive Sign Plan HPE Change or Abandonment PBA 1/02 For Official Use Only Case Manager: PROJECT NAME/,)// t L ZZMs. Applicatt— Day 35 one '%W Ms. Address: City: ZE/L State: Zip - Mrs. Owner: "00 Mr. DayPyc0-- Ms. Address: City: State: If application is being submitted by some ne-othert rf the owner of the property under consideration, the section below must be completed. SIGNATURE OF OWN E DATE AV I HEREBY AUTHORIZK TO FILE THIS APPLICATION. lRkase Print Subscribed and sworn before me this day of 20 Notary Public My Commission Expires. Ci 0 FILING DATE: FEE PAID: -7-50O.-t (See Fee Schedule) Application Page 2 of 11 E. \ Forms \ General Application - Public Hearing. OOC ACCEPTED BY:. PBA 1/02 The Town of Fountain Hills LEGAL DESCRIPTION Plat Name PROPERTY ADDRE Block cQ PARCEL SIZE (Acres) ASSESSOR PARCEL NUMBER NUMBER OF UNITS PROPOSED ��- ' �� TRACTS EXISTING ZONING: PROPOSED ZONING Lot Application Page 3 of 11 E \Forms\Generol Application - Public Heoring.doc Plaza Fountainside Entry Arch SUP Narrative A grand project befitting a grand location in a wonderful Town. Continuing the effort to snake Plaza Fountainside a befitting center for the Town of Fountain Hills, it has been noted that a sense of entry is missing. To resolve this, and give the Plaza more definition, we request the right to build an archway over the Saguaro side entry into the Plaza parking lot. This archway will conform to all applicable code requirements and be designed to compliment the existing and future Architecture, using color, material and slope. Thank you for your consideration. 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Q I II Q C u u tlNOZIN' `lIN NIV1NflOd :: w .14 R t of tJ ZI A -I 7 0 Y J CL N Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Admin Consent:❑ Regular:® Meeting Date: 10/16/2003 Contact Person: Julie Ghetti Requesting Action:® Tvne of Document Needing Annroval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Avpronriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ® Finance Regular Agenda Wording: Discussion of the updated FIVE-YEAR FINANCIAL PLAN with possible direction to staff. Staff Recommendation: Approve Fiscal Impact: Yes $599,225 Purpose of Item and Background Information: Staff is presenting additional five year financial scenarios showing optimistic, most likely and pessimistic projections for revenues and expenditures. Staff is also requesting direction to prepare the amendments to the Fountain Hills tax code to eliminate certain exemptions, increase the rate on advertising from 0% to 2.6% and increase charges for municipal services with an effective date of February 1, 2004. As was decided by the Council, the November workshop will focus on direction to prepare any amendments to the Fountain Hills tax code. List All Attachments as Follows: (Packet material to follow Monday) Interoffice Memorandum, copies of Sec. 8A-405 (Advertising) and Sec. 8A-445 (Rental of real property) of Fountain Hills tax code. Type(s) of Presentation: none Signatures of Submitting Staff: Depa • ent H d 'C Town Manager / Designee \\earth\jghetti\wpdata\agenda cover sheet.doc Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS OFFICE OF ACCOUNTING SUPERVISOR INTER OFFICE MEMO TO: Honorable Mayor and Town Council DT: October 14, 2003 THROUGH: Timothy Pickering, Town Manager FR: Julie A. Ghetti, Accounting ISupervisor RE: 5 Year Financial Projection Administration An integral part of planni g for the Town's fiscal future is the preparation of a multi -year financial plan that predicts future revenues, expenditures and capital funding available. The plan helps guide the Council in making decisions regarding future services and capital project needs. The most challenging aspect of preparing a multi -year plan is predicting revenues, which provide the available resources for making service level decisions: Forecasts over a multi -year period become less predictable the further out the analysis extends. At the request of the Town Council staff has prepared three financial forecasts over a five year period, each presenting a different scenario. Scenario 1 is considered the base scenario and most likely; scenario 2 is an optimistic forecast that include variables to enhance the financial. picture; 10 and scenario 3 takes into consideration "worse case" situations. A table for each scenario and the available capital project funding is shown below. The table includes development fees that are projected over the five year period under the three scenarios. In even the best case scenario the capital funding for street repairs is insufficient over the five year period ($1,095,677); the deficit in the worse case scenario is ($11,930,941). Staff recommends that the most likely scenario be used when considering capital project funding. Scenario 1 — Most Likely Assumptions: Revenues are based on moderate and sustained economic recovery Projections are based on historical trends with a 10% contingency Tax structure remains the same Assumes current sales tax rate of 2.6% remains in effect Expenditures are based on current reduced level of service with 5% growth factor Target sales tax rebate is paid in full by FY2006 :• Town purchases or constructs Town Hall by FY2006 Scenario 1 Gen Govt Capital Financing Potential (Less Proposed Capital Projects) Remaining Capital Projects Balance 2003-2004 2004-2005 Fiscal Year 2005-2006 2006-2007 2007-2008 2008-2009 $858,882 $1,521,969 $1,341,261 $792,120 $0 $0 ($690 000) ($1 590 000) ($3 000 000) ($1,000,000) $0 $0 $168,882 ($68,031) ($1,658,739) ($207,880) $0 9 Land Preservation Fin Potential $1,979,200 $2,328,195 $2,740,985 $3,202,460 $3,748,121 $4, (Less Proposed Capital Projects) ($639 610) ($631 500) ($638,500) ($610,000) ($608,000) ($5 Remaining Capital Projects Balance $1,339,590 $1,6%,695 $2,102,485 $2,592,460 $3,140,121 $3, Downtown Development Fin Potential $894,163 $900,623 $997,236 $1,267,831 $1,552,180 $1, (Less Proposed Capital Projects) ($225 000) ($160 000) $0 $0 $0 Remaining Capital Projects Balance $669,163 $740,623 $997,236 $1,267,831 $1,552,180 $1, Development Fees Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 ($63,040) $672,000 $1., (Less Proposed Capital Projects) ($129 670) ($339 000) ($2,081,000) ($1,397,000) ($672,000) ($1,( Remaining Capital Projects Balance $546,960 $679,460 ($839,640) ($1,460,040) $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2 (Less Proposed Capital Projects) ($33 500) $0 $0 ($900,000) ($700,000) ($1,l Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1 Street Capital Financing Potential (Less Proposed Capital Projects) $138,175 $56,361 ($1,561,501) ($3,600,458) ($5,715,669) ($6,427,136 Scenario 2 — Optimistic Assumptions: :• Revenue projections are based on historical trends with an 8% contingency Includes staff recommended revenue enhancements ($550,000) Includes grant/donation of $500,000 for Civic Center Phase II Inflation remains less than 5% overall Expenditure growth rate remains less than revenue growth rate Arizona legislature rescinds HB2533 (reverse revenue sharing, 75% of excess fines) Expenditures are based on current reduced level of service Development fees based on most likely scenario Increased activity at Community Center cw*""[l ( :..'z['[1"I-t:1"t`.t",_.it'l(WIJ A'I(!„t Me Scenario 2 Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Gen Govt Capital Financing Potential $858,882 $2,549„ 079 $3,934,535 $1,000,000 $0 (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3,000,000) ($1,000,000) $0 Remaining Capital Projects Balance $168,882 $959,079 $934,535 $0 $0 Land Preservation Fin Potential $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843,421 $4,4 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($59 Remaining Capital Projects Balance $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $3,8' Downtown Development Fin Potential $894,163 $907,996 $1,012,444 $1,291,388 $1,584,697 $1,8 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 Remaining Capital Projects Balance $669,163 $747,996 $1,012,444 $1,291,388 $1,584,697 $198 Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 $1,397,000 $672,000 $ (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1 Remaining Capital Projects Balance $546,960 $679,460 ($839,640) $0 $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $ (Less Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1 Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $ Street Capital Financing Potential $138,175 $122,561 ($1,412,801) ($1,257,688) ($86,030) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1 Remaining Capital Projects Balance ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) ($1 Scenario 3 — Pessimistic Assumptions: Revenue projections are based on historical trends with a confidence level of 85% Tax structure remains the same :• Inflationary increases in health insurance, fuel, wages, outside contracts greater than 5% Expenditure growth outpaces revenue resulting in reduced service Arizona legislature reduces revenue sharing by 30% to balance state budget Arizona legislature continues reverse revenue sharing of court revenues Building permit activity declines due to poor economic recovery or legislative action Deterioration of revenue base (Target leaves due to competition from outside Town borders) Town negotiates new lease agreement for town hall at 5% increase in rent Now Non renewal of cell tower lease agreements (loss of $63,000 annually) Scenario 3 Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,882 ($57,943) ($739,194) ($1,324,699) ($3,318,816) ($5,692,665 (Less Proposed Capital Projects) ($690,000) ($90,000) $0 ($1,000,000) $0 $1 Remaining Capital Projects Balance $168,882 ($147,943) ($739,194) ($2,324,699) ($3,318,816) ($5,692,665 Land Preservation Fin Potential $1,979,200 $2,251,790 $2,572,565 $2,926,665 $3,327,295 $3,748,21 (Less Proposed Capital Projects) $639,610 $631,500) ($638,500) ($610,000) ($608,000) $595,000 Remaining Capital Projects Balance $1,339,590 $1,620,290 $1,934,065 $2,316,665 $2,719,295 $3,153,21 Downtown Development Fin Potential $894,163 $872,918 $936,534 $1,168,871 $1,402,400 $1,636,981 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $ Remaining Capital Projects Balance $669,163 $712,918 $936,534 $1,168,871 $1,402,400 $1,636,981, Development Fees Parks & Rec Financing Potential $676,630 $848,960 $902,360 ($571,540) ($1,480,090) ($1, (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1, Remaining Capital Projects Balance $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,152,090) ($2, Open Space Financing Potential $844,613 $1,147,293 $1,584,113 $2,259,953 $1,903,703 $1 (Less Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1, Remaining Capital Projects Balance $811,113 $1,147,293 $1,584,113 $1,359,953 $1,203,703 Street Capital Financing Potential $138,175 ($361,383) ($2,415,416) ($4,908,970) ($7,594,769) ($10,527,691) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($2,031,383) ($4,455,416) ($7,008,970) ($9,714,769) ($12,122,691) Recommendation There are several factors that affect the financial future of the Town, some that can be controlled by legislative action (i.e., diversifying revenue) and others are a result of factors that cannot be controlled locally (i.e., inflation). Staff believes that Scenario 1 (most likely) represents the best estimate of revenues, expenditures, fund balance and capital financing available in the near future. Scenario 2 (optimistic) assumes additional funding for capital projects through revenue enhancements, grants, increased building activity and current level of municipal services. The third scenario (pessimistic) would be the result of external factors affecting town revenues (i.e., legislative actions, retracted economy, inflationary costs, etc.) which could result in a further reduction in services. :sx.'V)I J3 Staff is recommending that improvements to the Town's financial forecast be implemented following the November workshop; this can be accomplished with the adoption of the revenue enhancements that have previously been presented and listed below: 1) Increase the tax rate on advertising activity from 0% to 2.6%; advertising activity includes gross income from billboards, direct mail, radio, television, newspapers or any other means. The town would capture its proportionate share of the total tax that is collected through sales of advertising and being distributed to the 77 incorporated cities and towns that currently include advertising in their tax code. There are only 10 cities that do not include advertising in their tax code. Estimated annual revenue = $406,350 2) Eliminate exemption (h) in Sec. 8A-445 — Rental, leasing, and licensing for use of real property. The town tax rate on property rental is 2.6% but exempts long term residential rentals/leases. The tax would apply to apartment buildings, condominiums, duplexes and some homes (where the owner has more than three units in Arizona). There are only 22 cities that exempt residential rentals. Estimated annual revenue = $121,875 3) Adopt Local Option H of the Model City Tax code Sec. 8A-410 taxing health spas and fitness centers, dance studios and other businesses who charge for the use of their premises. Of the 87 incorporated cities and towns, 55 exempt health spa memberships as a taxable activity. Estimated annual revenue = $32,500 4) Increase charges for municipal services to recover cost of delivering the services (example, notary fees, business lists, duplicate licenses, etc.). Estimated annual revenue = $3,500 5) Impose a liquor license permit fee — currently the Town of Fountain Hills does not charge for any type of liquor licensing fee although the application process requires considerable staff and law enforcement time (posting, zoning, etc.). Several cities and towns charge businesses for the liquor license; staff would like to implement a fee schedule that would help recover the costs of administering these licenses. The fees would vary depending on the series (numbered 1 through 17). Estimated annual revenue = $35,000 The tax code changes would not become effective until sixty (60) days after the Council approves the resolution changing the code; the Arizona Department of Revenue requires advance notice so that taxpayers can be informed of the change. The estimated monthly revenue from these changes is approximately $50,000. Summary No action is being requested during the October 16, 2003 Council meeting. More information on individual revenue enhancements, such as comparing what fees other municipalities charge, will be presented at the November workshop. After the Council has reviewed this information staff will be requesting direction regarding which specific revenue enhancements are approved. Article IV - Privilege Taxes Sec. 8A-400. Imposition of Privilege Taxes; presumption. (a) There are hereby levied and imposed, subject to all other provisions of this Chapter, the following Privilege Taxes for the purpose of raising revenue to be used in defraying the necessary expenses of the Town, such taxes to be collected by the Tax Collector: (1) a Privilege Tax upon persons on account of their business activities, to the extent provided elsewhere in this Article, to be measured by the gross income of persons, whether derived from residents of the Town or not, or whether derived from within the Town or from without. (2) (Reserved) (b) Taxes imposed by this Chapter are in addition to others. Except as specifically designated elsewhere in this Chapter, each of the taxes imposed by this Chapter shall be in addition to all other licenses, fees, and taxes levied by law, including other taxes imposed by this Chapter. (c) Presumption. For the purpose of proper administration of this Chapter and to prevent evasion of the taxes imposed by this Chapter, it shall be presumed that all gross income is subject to the tax until the contrary is established by the taxpayer. (d) Limitation of exemptions, deductions, and credits allowed against the measure of taxes imposed by this Chapter. All exemptions, deductions, and credits set forth in this Chapter shall be limited to the specific activity or transaction described and not extended to include any other activity or transaction subject to the tax. Sec.8A-405. Advertising. (a) The tax rate shall be at an amount equal to zero percent (0%) of the gross income from the business activity upon every person engaging or continuing in the business of "local advertising" by billboards, direct mail, radio, television, or by any other means. However, commission and fees retained by an advertising agency shall not be includable in gross income from "local advertising". All delivery or disseminating of information directly to the public or any portion thereof for a consideration shall be considered "Local Advertising", except the following: (1) the advertising of a product or service which is sold or provided both within and without the State by more than one "commonly designated business entity" within the State, and in which the advertisement names either no "commonly designated business entity" within the State or more than one "commonly designated business entity". "Commonly Designated Business Entity" means any person selling or providing any product or service to its customers under a common business name or style, even though there may be more than one legal entity conducting business functions using the same or substantially the same business name or style by virtue of a franchise, license, or similar agreement. (2) the advertising of a facility or of a service or activity in which neither the facility nor a business site carrying on such service or activity is located within the State. (3) the advertising of a product which may only be purchased from an out -of -State supplier. (4) political advertising for United States Presidential and Vice Presidential candidates only. (5) advertising by means of product purchase coupons redeemable at any retail establishment carrying such product but not product coupons redeemable only at a single commonly designated business entity. (6) advertising transportation services where a substantial portion of the transportation activity of the business entity advertised involves interstate or foreign carriage. (b) (Reserved) Sec.8A-407. (Reserved) 21 (e) Allocation of taxes between cities and towns. In cases where publication or distribution occurs in more than one city or town, the measurement of gross income subject to tax by the Town shall include: (1) that portion of the gross income from publication which reflects the ratio of circulation within this Town to circulation in all incorporated cities and towns in this State having substantially similar provisions; plus (2) only when publication occurs within the Town, that portion of the remaining gross income from publication which reflects the ratio of circulation within this Town to the total circulation of all incorporated cities or towns in this State within which cities the taxpayer maintains a location of publication. (f) The tax imposed by this Section shall not apply to sales of newspapers, magazines or other periodicals 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. Sec.8A-440. (Reserved) Sec.8A-444. Hotels. The tax rate shall be at an amount equal to two and six -tenths percent (2.6%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a) Person. (b) (Reserved) (c) Income derived from incarcerating or detaining 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. Sec. 8A-445. Rental, leasing, and licensing for use of real property. (a) The tax rate shall be at an amount equal to two and six -tenths percent (2.6%) 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. 32 (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. (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 or detaining 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 33 SCENARIO 1 MOST LIKELY 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 most Likely Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,530 $1,521,969 $1,341,261 $792,120 $0 $0 (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3,000,000) ($1,000,000) $0 $0 Remaining Capital Projects Balance $168,530 ($68,031) ($1,658,739) ($207,880) $0 $0 Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,328,195 $2,740,984 $3,202,460 $3,748,120 $4,351,466 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,696,695 $2,102,484 $2,592,460 $3,140,120 $3,756,466 Downtown Development Fin Potential $894,163 $900,623 $997,236 $1,267,831 $1,552,180 $1,850,043 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $740,623 $997,236 $1,267,831 $1,552,180 $1,850,043 Development Fees Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 ($63,040) $672,000 $1,000,000 (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $679,460 ($839,640) ($1,460,040) $0 $0 yen Space Financing Potential 14N'Less $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 Streets and Highways (HURF) Street Capital Financing Potential $138,175 $56,361 ($1,561,501) ($3,600,458) ($5,715,669) ($6,427,136) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,613,639) ($3,601,501) ($5,700,458) ($7,835,669) ($8,022,136) TOWN OF FOUNTAIN HILLS 1P - General Fund '%FISCAL YEARS 2004-2009 Resources Projected Operating Revenue' Development Fees - General Govt Development Fees - Law Enforcement Grant/Prop 202 Funds Caital Project Funds left from prior year Less projected operating expendituresZ Surplus Available Contribution to Fund Balance Transfers to other CIP funds Capital Financing Potential Projects Town Center Phase II Relocate Fire Station Shaded Tot Lot and Playground - Ftn Park North Sidewalk - Fountain Park rformance Pad - Fountain Park 4M►tility/Rehab Vehicle (Fire Dept) Total Projects Remaining Capital Projects Balance 5 Year CIP.x1sGenFund10/14/20033:03 PM Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $12,678,887 $13,767,567 $14,627,426 $15,752,684 $16,143,544 $16,507,105 $161,075 $191,060 $228,340 $316,880 $267,950 $172,420 $27,453 $13,120 $15,680 $21,760 $18,400 $11,840 $160,000 $77,000 $168,530 ($68,031) ($1,658,739) ($207,880) $0 ($11,653,902) ($12,389,055) ($13,297,571) ($13,413,905) ($14,419,372) ($14,779,869) $1,373,513 $1,828,969 $1,506,261 $1,019,120 $1,803,104 $1,911,980 ($514,983) ($307,000) ($165,000) ($227,000) ($201,000) ($271,000) ($1,602,104) ($1,640,980) $858,530 $1,521,969 $1,341,261 $792,120 $0 $0 $1,500,000 $3,000,000 $1,000,000 $320,000 $187,000 $183,000 $90,000 $690,000 $1,590,000 $3,000,000 $1,000,000 $0 $0 $168,530 ($68,031) ($1,658,739) ($207,880) $0 $0 ,,'OWN OF FOUNTAIN HILLS `[P - Land Preservation Excise Tax ,...SCAL YEARS 2004-2009 Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance IN Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $988,605 $1,044,290 $1,099,975 $1,155,661 $1,211,346 $1,339,590 $1,696,695 $2,102,484 $2,592,460 $3,140,120 $1,979,200 $2,328,195 $2,740,984 $3,202,460 $3,748,120 $4,351,466 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $1,339,590 $1,696,695 $2,102,484 $2,592,460 $3,140,120 $3,756,466 5 Year CIPAsCIP-Excise I.andl0/14/20033:03 PM TOWN OF FOUNTAIN HILLS 'iP - Downtown Development Excise Tax �..SCAL YEARS 2004-2009 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $100 $100 $100 $100 $100 Dedicated Excise Tax $987,563 $329,535 $348,097 $366,658 $385,220 $403,782 Capital Project Funds left from prior year $669,163 $740,623 $997,236 $1,267,831 $1,552,180 Less projected operating expenditures ($93,500) ($98,175) ($91,584) ($96,163) ($100,971) ($106,020) Capital Financing Potential $894,163 $900,623 $997,236 $1,267,831 $1,552,180 $1,850,043 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects Remaining Capital Projects Balance Note: The current Avenue of the Fountains tight of Way design may affect future capital needs. $225,000 $160,000 $0 $0 $0 $0 $669,163 $740,623 $997,236 $1,267,831 $1,552,180 $1,850,043 5 Year CIP.xisCIP - Excise DWntnIO/14/20033:03 PM TOWN OF FOUNTAIN HILLS -1P - Parks & Recreation Development Fees SCAL YEARS 2004-2009 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Grants Development Fees $668,430 $463,300 $553,700 $768,400 $649,750 $418,100 Interest $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 Capital Project Funds left from prior year $546,960 $679,460 ($839,640) ($1,460,040) $0 Transfer In - General Fund $0 $0 $0 $0 $1,474,090 $573,700 Capital Financing Potential Projects Associated Amenities - Ftn Park Modular comp skate park Spray/Water Play Park - Fountain Park Walking Path - Phase III Fountain Park Eng/design for PhII Imps - Four Peaks Park Phase II Construction - Four Peaks Park East Parking Lot - Fountain Park Children's Water Feature - GEP Phase II Design fees - DVNP Phase II Construction - DVNP ��-prinkler System Reconstruct - Ftn Park Park Signage Educational Arboretum/Signage BMX Track Aquatic/Fitness Facility Total Projects Estimated Ending Fund Balance 5 Year CIP.x1sCIP-P&R10/14/20033:04 PM $676,630 $1,018,460 $1,241,360 ($63,040) $672,000 $1,000,000 $69,670 $60,000 $125,000 $214,000 $212,000 $665,000 $1,553,000 $306,000 $10,000 $67,000 $665,000 $500,000 $84,000 $58,000 $30,000 $1,000,000 $129,670 $339,000 $2,081,000 $1,397,000 $672,000 $1,000,000 $546,960 $679,460 ($839,640) ($1,460,040) $0 $0 TOWN OF FOUNTAIN HILLS —13 - Open Space Development Fees .,CAL YEARS 2004-2009 Resources Development Fees Interest Capital Project Funds left from prior year Capital Financing Potential Projects Trailhead Development Trailhead Construction Trail/Connectivity paths Total Projects Remaining Capital Projects Balance IM Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $835,513 $515,780 $616,420 $855,440 $723,350 $465,460 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2,433,063 $33,500 $900,000 $700,000 $1,000,000 $33,500 $0 $0 $900,000 $700,000 $1,000,000 $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 5 Year CIP.MsCIP-OpenSpace10/14/20033:04 PM TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal Palisades/Sunridge Drive (50% developer) signal Shea Bke Lanes/Median (Construction Management) Shea @ Saguaro--EB to NB LT lane lengthening Dump Truck 'kin and Kipling (remove,replace curbs) "�n Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation 5 Year CIRx1sCIP-Streets10/14/2003 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,541,176 $1,614,882 $1,688,589 $1,762,295 $1,836,001 $133,175 $121,800 $137,025 $182,700 $152,250 $121,800 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $500,000 $147,500 ($61,825) ($1,613,639) ($3,601,501) ($5,700,458) ($7,835,669) $0 $0 $0 $128,014 $1,067,280 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062,770) ($2,269,048) $138,175 $56,361 ($1,561,501) ($3,600,458) ($5,715,669) ($6,427,136) $200,000 $90,000 $200,000 $200,000 $10,000 $30,000 $100,000 $40,000 $40,000 $60,000 $50,000 $750,000 $100,000 $50,000 $50,000 $1,000,000 $1,000,000 $750,000 $100,000 $100,000 $50,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60,000 $70,000 $40,000 $750,000 $50,000 TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Page 2 L Shea (Technology to Saguaro) Signal Interconnect Palisades-Westby to La Montana WB Shea west from Saguaro, 3rd lane taper -back La Montana Medians @ Community Center (Curbs) Palisades/Eagle Ridge Drive -Palomino Signal New Grade Tractor Palisades -La Montana to Saguaro Saguaro catch basins WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) Saguaro (El Lago to Grande) Signal Interconnect Part Agmnt Mirage Homes Firebrick Dr and Laser Drain Street Yard Building Palisades -La Montana to Saguaro Del Cambre Rosita to Ashbrook Wash Safe Sidwalks to School Total Projects Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $40,000 $70,000 $200,000 $100,000 $200,000 $100,000 $180,000 $60,000 $200,000 $50,000 $100,000 $300,000 $120,000 $50,000 _ $500,000 $795,000 $200,000 $1,670,000 $2,040,000 $2,100,000 $2,120,000 $1,595,000 Remaining Capital Projects Balance ($61,825) ($1,613,639) ($3,601,501) ($5,700,458) ($7,835,669 ($8,022,136) Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. 5 Year CIPAsCIP-Streets10/14/2003 SCENARIO 2 OPTIMISTIC ,%W Optimistic 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,882 $2,549,079 $3,934,535 $1,000,000 ($0) ($0) (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3,000,000) ($1,000,000) $0 $0 Remaining Capital Projects Balance $168,882 $959,079 $934,535 ($0) ($0) ($0) Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843,421 $4,473,686 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $3,878,686 Downtown Development Fin Potential $894,163 $907,996 $1,012,444 $1,291,388 $1,584,697 $1,892,132 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $747,996 $1,012,444 $1,291,388 $1,584,697 $1,892,132 Development Fees Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 $1,397,000 $672,000 $1,000,000 (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $679,460 ($839,640) $0 $0 $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2,433,063 ;ss Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) "emaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 Streets and Highways (HURF) Street Capital Financing Potential $138,175 $122,561 ($1,412,801) ($1,257,688) ($86,030) $499,323 (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) ($1,095,677) TOWN OF FOUNTAIN HILLS - General Fund (Optimistic Forecast) FISCAL YEARS 2004-2009 Resources Projected Operating Revenue Development Fees - General Govt Development Fees - Law Enforcement Grant/Prop 202 Funds Capital Project Funds from prior year Less projected operating expendituresZ Surplus Available Contribution to Fund Balance Transfers to Other CIP Funds Capital Financing Potential Projects Town Center Phase II Relocate Fire Station Shaded Tot Lot and Playground - Ftn Park North Sidewalk - Fountain Park Performance Pad - Fountain Park lity/Rehab Vehicle (Fire Dept) Total Projects Remaining Capital Projects Balance 5 Year CIP.xisGenFund 10/ 14/20033:03 PM Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $12,679,239 $14,795,073 $15,694,006 $16,906,740 $17,344,274 $17,754,509 $161,075 $191,060 $228,340 $316,880 $267,950 $172,420 $27,453 $13,120 $15,680 $21,760 $18,400 $11,840 $160,000 $77,000 $500,000 $0 $168,882 $959,079 $934,535 ($0) ($0) ($11,653,902) ($12,389,055) ($13,297,571) ($13,413,905) ($14,099,491) ($14,779,869) $1,373,865 $2,856,079 $4,099,535 $4,766,010 $3,531,133 $3,158,900 ($514,983) ($307,000) ($165,000) ($227,000) ($201,000) ($271,000) ($3,539,010) ($3,330,133) ($2,887,900) $858,882 $2,549,079 $3,934,535 $1,000,000 ($0) ($0) $320,000 $187,000 $183,000 $1,500,000 $3,000,000 $90,000 $1,000,000 $690,000 $1,590,000 $3,000,000 $1,000,000 $0 $0 $168,882 $959,079 $934,535 ($0) ($0) ($0) TOWN OF FOUNTAIN HILLS 6Land Preservation Excise Tax M�AL YEARS 2004-2009 Optimistic Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $1,010,574 $1,067,496 $1,124,419 $1,181,342 $1,238,265 $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843,421 $4,473,686 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $3,878,686 5 Year CIPAsCIP-Excise Land 10/14/20033:03 PM TOWN OF FOUNTAIN HILLS Downtown Development Excise Tax AL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $150 $200 $300 $500 $700 Dedicated Excise Tax $987,563 $336,858 $355,832 $374,806 $393,781 $412,755 Capital Project Funds left from prior year $669,163 $747,996 $1,012,444 $1,291,388 $1,584,697 Less projected operating expenditures ($93,500) ($98,175) ($91,584) ($96,163) ($100,971) ($106,020) Capital Financing Potential $894,163 $907,996 $1,012,444 $1,291,388 $1,584,697 $1,892,132 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects $225,000 $160,000 $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $747,996 $1,012,444 $1,291,388 $1,584;697 $1,892,132 5 Year CIP.xisCIP - Excise Dwntnl0/14/20033:03 PM TOWN OF FOUNTAIN HILLS Parks & Recreation Development Fees ��AL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Grants Development Fees $668,430 $463,300 $553,700 $768,400 $649,750 $418,100 Interest $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 Capital Project Funds left from prior year $546,960 $679,460 ($839,640) $0 $0 Transfer In - General Fund $0 $0 $0 $1,460,040 $14,050 $573,700 Capital Financing Potential $676,630 $1,018,460 $1,241,360 $1,397,000 $672,000 $1,000,000 Projects Three Small Picnic Ramadas and Associated Amenities - Ftn Park $69,670 Modular comp skate park $60,000 Spray/Water Play Park - Fountain Park $125,000 Walking Path - Phase III Fountain Park $214,000 Eng/design for PhII Imps - Four Peaks Park $212,000 $665,000 Phase II Construction - Four Peaks Park $1,553,000 East Parking Lot - Fountain Park $306,000 Children's Water Feature - GEP $10,000 hase II Design fees - DVNP $67,000 hase II Construction - DVNP $665,000 Sprinkler System Reconstruct - Ftn Park $500,000 Park Signage $84,000 Educational Arboretum/Signage $58,000 BMX Track $30,000 Aquatic/Fitness Facility $1,000,000 Total Projects $129,670 $339,000 $2,081,000 $1,397,000 $672,000 $1,000,000 Estimated Ending Fund Balance $546,960 $679,460 ($839,640) $0 $0 $0 5 Year CIP.xIsC1P-P&R10/14/20033:04 PM TOWN OF FOUNTAIN HILLS SOpen Space Development Fees M�AL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Development Fees $835,513 $515,780 $616,420 $855,440 $723,350 $465,460 Interest $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 Capital Project Funds left from prior year $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 Capital Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2,433,063 Projects Trailhead Development $33,500 Trailhead Construction $900,000 $700,000 Trail/Connectivity paths $1,000,000 Total Projects $33,500 $0 $0 $900,000 $700,000 $1,000,000 Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 5 Year CIP.x1sCIP-OpenSpace10/14/20033:04 PM TOWN OF FOUNTAIN HILLS Streets AL YEARS 2004-2009 Optimistic Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal isades/Sunridge Drive (50% developer) signal a Bke Lanes/Median (Construction Management) ea @ Saguaro--EB to NB LT lane lengthening Dump Truck Ruskin and Kipling (remove,replace curbs) Sign Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation JGhetti/10/14/20035 Year CIP.AsStreets - Opt Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,541,176 $1,614,882 $1,688,589 $1,762,295 $1,836,001 $133,175 $187,000 $218,525 $296,800 $250,050 $170,700 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $500,000 $147,500 ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) $2,078,970 $3,316,083 $2,314,200 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062,770) ($2,269,048) $138,175 $122,561 ($1,412,801) ($1,257,688) ($86,030) $499,323 $200,000 $90,000 $200,000 $200,000 $10,000 $30,000 $100,000 $40,000 $40,000 $60,000 $50,000 $750,000 $100,000 $50,000 $1,000,000 $100,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60,000 $70,000 $40,000 $50,000 $1,000,000 $750,000 $750,000 $100,000 $50,000 $50,000 TOWN OF FOUNTAIN HILLS %�'Streets AL YEARS 2004-2009 Page 2 Shea (Technology to Saguaro) Signal Interconnect Palisades-Westby to La Montana WB Shea west from Saguaro, 3rd lane taper -back La Montana Medians @ Community Center (Curbs) Palisades/Eagle Ridge Drive -Palomino Signal New Grade Tractor Palisades -La Montana to Saguaro Saguaro catch basins WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) Saguaro (El Lago to Grande) Signal Interconnect Part Agmnt Mirage Homes Firebrick Dr and Laser Drain Street Yard Building Palisades -La Montana to Saguaro Del Cambre Rosita to Ashbrook Wash Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $40,000 $70,000 $200,000 $100,000 $200,000 $100,000 $180,000 $60,000 $200,000 $50,000 $100,000 $300,000 $120,000 $50,000 Safe Sidwalks to School $500,000 $795,000 99 Projects $200,000 $1,670,000 $2,040,000 $2,100,000 $2,120,000 $1,595,000 Remaining Capital Projects Balance ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) ($1,095,677) Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. JGhetti/10/14/20035 Year CIPAsStreets - Opt SCENARIO 3 PESSIMISTIC 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 Fiscal Year Pessimistic 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,882 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) (Less Proposed Capital Projects) ($168,882) ($90,000) $0 ($1,000,000) $0 $0 Remaining Capital Projects Balance $690,000 ($8,291) ($704,540) ($2,300,946) ($2,927,043) ($4,149,299) Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,273,272 $2,628,046 $3,028,411 $3,509,868 $4,045,918 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,641,772 $1,989,546 $2,418,411 $2,901,868 $3,450,918 Downtown Development Fin Potential $894,163 $882,315 $959,590 $1,209,815 $1,472,763 $1,748,193 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $722,315 $959,590 $1,209,815 $1,472,763 $1,748,193 Development Fees Parks & Rec Financing Potential $676,630 $848,960 $902,360 ($571,540) ($1,536,590) ($1,951,790) (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,208,590) ($2,951,790) men Space Financing Potential $844,613 $1,147,293 $1,584,113 $2,259,953 $1,840,803 $1,426,663 (Less Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) Remaining Capital Projects Balance $811,113 $1,147,293 $1,584,113 $1,359,953 $1,140,803 $426,663 Streets and Highways (HURF) Street Capital Financing Potential $138,175 ($328,783) ($2,333,916) ($4,760,120) ($7,427,469) ($10,335,941) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,998,783) ($4,373,916) ($6,860,120) ($9,547,469) ($11,930,941) TOWN OF FOUNTAIN HILLS ,r` • General Fund (Pessimistic Forecast) FISCAL YEARS 2004-2009 Resources Projected Operating Revenuer Development Fees - General Govt Development Fees - Law Enforcement Grant/Prop 202 Funds Capital Project Funds from prior year Less projected operating expenditures Surplus Available Contribution to Fund Balance Transfers to other CIP Funds Capital Financing Potential Projects Town Center Phase II Relocate Fire Station ided Tot Lot and Playground - Ftn Park rth Sidewalk - Fountain Park Performance Pad - Fountain Park Utility/Rehab Vehicle (Fire Dept) Total Projects Remaining Capital Projects Balance 5 Year CIP.xlsGenFund 10/ 14/20033:03 PM Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $12,679,239 $12,018,402 $12,390,302 $13,034,774 $13,791,920 $13,978,593 $161,075 $121,160 $158,440 $246,980 $174,750 $102,520 $27,453 $8,320 $10,880 $16,960 $12,000 $7,040 $160,000 $0 $0 $168,882 ($8,291) ($704,540) ($2,300,946) ($2,927,043) ($11,653,902) ($12,235,055) ($13,255,871) ($13,895,120) ($14,604,767) ($15,310,409) $1,373,865 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) ($514,983) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $858,882 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) $320,000 $187,000 $183,000 $90,000 $1,000,000 $690,000 $90,000 $0 $1,000,000 $0 $0 $168,882 ($8,291) ($704,540) ($2,300,946) ($2,927,043) ($4,149,299) TOWN OF FOUNTAIN HILLS Land Preservation Excise Tax "F'iS'CAL YEARS 2004-2009 Pessimistic Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $933,682 $986,274 $1,038,865 $1,091,457 $1,144,049 $1,339,590 $1,641,772 $1,989,546 $2,418,411 $2,901,868 $1,979,200 $2,273,272 $2,628,046 $3,028,411 $3,509,868 $4,045,918 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $1,339,590 $1,641,772 $1,989,546 $2,418,411 $2,901,868 $3,450,918 5 Year CIP.xlsCIP-Excise L.andl0/14/20033:03 PM TOWN OF FOUNTAIN HILLS • Downtown Development Excise Tax 'f"CAL YEARS 2004-2009 Pessimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $100 $100 $100 $100 $100 Dedicated Excise Tax $987,563 $311,227 $328,758 $346,288 $363,819 $381,350 Capital Project Funds left from prior year $669,163 $722,315 $959,590 $1,209,815 $1,472,763 Less projected operating expenditures ($93,500) ($98,175) ($91,584) ($96,163) ($100,971) ($106,020) Capital Financing Potential $894,163 $882,315 $959,590 $1,209,815 $1,472,763 $1,748,193 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects $225,000 $160,000 $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $722,315 $959,590 $1,209,815 $1,472,763 $1,748,193 5 Year CIP.xlsCIP - Excise Dwntnl0/14/20033:03 PM TOWN OF FOUNTAIN HILLS JP - Parks & Recreation Development Fees FISCAL YEARS 2004-2009 Pessimistic Fiscal Years Resources Grants Development Fees Interest Capital Project Funds left from prior year Transfer In - General Fund Capital Financing Potential Projects Three Small Picnic Ramadas and Associated Amenities - Ftn Park Modular comp skate park Spray/Water Play Park - Fountain Park Walking Path - Phase III Fountain Park Eng/design for PhII Imps - Four Peaks Park Phase Il Construction - Four Peaks Park East Parking Lot - Fountain Park Children's Water Feature - GEP Lphase 11 Design fees - DVNP phase 11 Construction - DVNP Sprinkler System Reconstruct - Ftn Park Park Signage Educational Arboretum/Signage BMX Track Aquatic/Fitness Facility Total Projects Estimated Ending Fund Balance R 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $668,430 $293,800 $384,200 $598,900 $423,750 $248,600 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,208,590) $0 $0 $0 $0 $0 $0 $676,630 $848,960 $902,360 ($571,540) ($1,536,590) ($1,951,790) $69,670 $60,000 $125,000 $214,000 $212,000 $665,000 $1,553,000 $306,000 $10,000 $67,000 $665,000 $500,000 $84,000 $58,000 $30,000 $1,000,000 $129,670 $339,000 $2,081,000 $1,397,000 $672,000 $1,000,000 $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,208,590) ($2,951,790) 5 Year CIP.x1sCIP-P&R10/14/20033:04 PM TOWN OF FOUNTAIN HILLS :IP - Open Space Development Fees "FISCAL YEARS 2004-2009 Pessimistic Resources Development Fees Interest Capital Project Funds left from prior year Capital Financing Potential Projects Trailhead Development Trailhead Construction Trail/Connectivity paths Total Projects Remaining Capital Projects Balance 0 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $835,513 $327,080 $427,720 $666,740 $471,750 $276,760 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $811,113 $1,147,293 $1,584,113 $1,359,953 $1,140,803 $844,613 $1,147,293 $1,584,113 $2,259,953 $1,840,803 $1,426,663 $33,500 $900,000 $700,000 $1,000,000 $33,500 $0 $0 $900,000 $700,000 $1,000,000 $811,113 $1,147,293 $1,584,113 $1,359,953 $1,140,803 $426,663 5 Year CIP.xisCIP-OpenSpacel0/14/20033:04 PM TOWN OF FOUNTAIN HILLS 4IP - Streets ISCAL YEARS 2004-2009 Pessimistic Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal alisades/Sunridge Drive (50% developer) signal hea Bke Lanes/Median (Construction Management) Shea @ Saguaro--EB to NB LT lane lengthening Dump Truck Ruskin and Kipling (remove,replace curbs) Sign Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation JGheW5 Year CIP.AsStreets - Pess10/14/2003 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,155,882 $1,211,162 $1,266,442 $1,321,721 $1,377,001 $133,175 $123,950 $155,475 $219,600 $170,700 $100,575 $5,000 $3,000 $3,000 $3,000 $3,000 $3,000 $0 $0 ($61,825) ($1,998,783) ($4,373,916) ($6,860,120) ($9,547,469) $0 $0 $0 $0 $0 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062,770) ($2,269,048) $138,175 ($328,783) ($2,333,916) ($4,760,120) ($7,427,469) ($10,335,941) $200,000 $90,000 $200,000 $200,000 $10,000 $30,000 $100,000 $40,000 $40,000 $60,000 $50,000 $750,000 $100,000 $50,000 $50,000 $1,000,000 $1,000,000 $750,000 $100,000 $100,000 $50,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60,000 $70,000 $40,000 $750,000 $50,000 TOWN OF FOUNTAIN HILLS CIP - Streets 'FISCAL YEARS 2004-2009 Page 2 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Shea (Technology to Saguaro) Signal Interconnect Palisades-Westby to La Montana WB Shea west from Saguaro, 3rd lane taper -back La Montana Medians @ Community Center (Curbs) Palisades/Eagle Ridge Drive -Palomino Signal New Grade Tractor Palisades -La Montana to Saguaro Saguaro catch basins WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) Saguaro (El Lago to Grande) Signal Interconnect Part Agmnt Mirage Homes Firebrick Dr and Laser Drain Street Yard Building Palisades -La Montana to Saguaro Del Cambre Rosita to Ashbrook Wash Safe Sidwalks to School rota1 Projects Remaining Capital Projects Balance Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. q JGhetti5 Year CIP.AsStreets - Pess10/14/2003 $40,000 $70,000 $200,000 $100,000 $200,000 $100,000 $180,000 $60,000 $200,000 $50,000 $100,000 $300,000 $120,000 $50,000 $500,000 $795,000 $200,000 $1,670,000 $2,040,000 $2,100,000 $2,120,000 $1,595,000 ($61,825) ($1,998,783) ($4,373,916) ($6,860,120) ($9,547,469) ($11,930,941) ✓' TOWN OF FOUNTAIN HILLS OFFICE OF ACCOUNTING SUPERVISOR INTER OFFICE MEMO TO: Honorable Mayor and Town Council DT: October 14, 2003 THROUGH: Timothy Pickering, Town -Manager FR: Julie A. Ghetti, Accounting upervisor RE: 5 Year Financial Projection Administration An integral part of planni g for Ithe Town,s fiscal future is the preparation of a multi -year financial plan that predicts future revenues, expenditures and capital funding available. The plan helps guide the Council in making decisions regarding future services and capital project needs. The most challenging aspect of preparing a multi -year plan is predicting revenues, which provide the available resources for making service level decisions. Forecasts over a multi -year period become less predictable the further out the analysis extends. At the request of the Town Council staff has prepared three financial forecasts over a five year period, each presenting a different scenario. Scenario 1 is considered the base scenario and i-nost WftW likely; scenario 2 is an optimistic forecast that include variables to enhance the financial picture; and scenario 3 takes into consideration "worse case" situations. A table for each scenario and the available capital project funding is shown below. The table includes development fees that are projected over the five year period under the three scenarios. In even the best case scenario the capital funding for street repairs is insufficient over the five year period ($1,095,677); the deficit in the worse case scenario is ($11,930,941). Staff recommends that the most likely scenario be used when considering capital project funding. Scenario 1 — Most Likely Assumptions: :• Revenues are based on moderate and sustained economic recovery Projections are based on historical trends with a 10% contingency Tax structure remains the same Assumes current sales tax rate of 2.6% remains in effect Expenditures are based on current reduced level of service with 5% growth factor Target sales tax rebate is paid in full by FY2006 Town purchases or constructs Town Hall by FY2006 Scenario I No Fiscal Year 2004-2005 2005-2006 2006-2007 2007-2008 Gen Govt Capital Financing Potential $858,882 $1.521.969 $1,341,261 $792,120 $0 (Less Proposed Capital Projects) ($690.000) ($1,590.000) ($3,000,000) ($1,000 000) $0 Remaining Capital Projects Balance $168,882 ($68,031) ($1,658,739) ($207,880) $0 Land Preservation Fin Potential $1,979,200 $2,328,195 $2,740,985 $3,202,460 $3,748,121 $4,351 (Less Proposed Capital Projects) ($639,610) ($631.500) ($638,500) ($610.000) ($608 000) ($595 Remaining Capital Projects Balance $1,339,590 $1,696,695 $2,102,485 $2,592,460 $3,140,121 $3,756 Downtown Development Fin Potential $894.163 $900,623 $997,236 $1,267,831 $1.552,180 $1,850 (Less Proposed Capital Projects) ($225,000) ($160.000) $0 $0 $0 Remaining Capital Projects Balance $669,163 $740,623 $997,236 $1,267,831 $1.552,180 $1.850 Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 ($63,040) $672,000 $ (less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397.000) ($672.000) ($1 Remaining Capital Projects Balance $546,960 $679.460 ($839.640) ($1.460,040) $0 Open Space Financing Potential $844,613 $1.335,993 $1,961,513 $2,826,053 $2,658.503 $: (Less Proposed Capital Projects) ($33,500) $0 $0 ($900 000) ($700 000) ($1 Remaining Capital Projects Balance $811,113 $1,335,993 $1.961,513 $1,926,053 $1,958.503 $: Street Capital Financing Potential $138,175 $56.361 ($1,561,501) ($3.600.458) ($5,715.669) ($6,427,136 (Less Proposed Capital Projects) ($200.000) ($1,670.000) ($2.040.000) ($2.100,000) ($2,120.000) ($1,595,000 Remaining Capital Projects Balance ($61.825) ($1.613.639) ($3.601.501) ($5.700,458) ($7,835.669) ($8,022,136 Scenario 2 — Optimistic Assumptions: :• Revenue projections are based on historical trends with an 8% contingency :• Includes staff recommended revenue enhancements ($550,000) :• Includes grant/donation of $500,000 for Civic Center Phase II :• Inflation remains less than 5% overall Expenditure growth rate remains less than revenue growth rate Arizona legislature rescinds BB2533 (reverse revenue sharing, 75% of excess fines) Expenditures are based on current reduced level of service Development fees based on most likely scenario Increased activity at Community Center r Scenario 2 Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Gen Govt Capital Financing Potential $858,882 $2,549„ 079 $3,934,535 $1,000MO $0 (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3.000,000) ($1.000 000) $0 Remaining Capital Projects Balance $168,882 $959,079 $934,535 $0 $0 Land Preservation Fin Potential $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843.421 $4,473.68t (Less Proposed Capital Projects) ($639.610) ($631.500) ($638,500) ($610.000) ($608,000) ($595,000; Remaining Capital Projects Balance $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $3,878,681 Downtown Development Fin Potential $894,163 $907,9% $1,012,444 $1.291,388 $1,584,697 $1.892,132 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 gp $0 $0 Remaining Capital Projects Balance $669,163 $747,9% $1,012,444 $1,291,388 $1,584,697 $1,892.132 Parks & Rec Financing Potential $676.630 $1,018,460 $1.241,360 $1,397,000 $672,000 $1 (Less Proposed Capital Projects) ($129,670) ($339.000) ($2,081.000) ($1,397,000) ($672.000) ($1. Remaining Capital Projects Balance $546,960 $679.460 ($839,640) $0 $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2.658,503 $2 (Less Proposed Capital Projects) ($33.500) $0 $0 ($900 000) ($700 000) ($1 Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926.053 $1.958,503 $1 Streets and Highways (HURF) Street Capital Financing Potential $138,175 $122,561 ($1,412.801) ($1,257,688) ($86,030) (Less Proposed Capital Projects) ($200.000) ($1.670,000) ($2,040.000) ($2.100 000) ($2120 000) ($1 Remaining Capital Projects Balance ($61 825) ($1 547 439) ($3 45' 801) ($1 357 688) ($"06 030) ($1 1 Scenario 3 — Pessimistic Assumptions: :• Revenue projections are based on historical trends with a confidence level of 85% Tax structure remains the same Inflationary increases in health insurance, fuel, wages, outside contracts greater than 5% Expenditure growth outpaces revenue resulting in reduced service :• Arizona legislature reduces revenue sharing by 30% to balance state budget Arizona legislature continues reverse revenue sharing of court revenues Building permit activity declines due to poor economic recovery or legislative action Deterioration of revenue base (Target leaves due to competition from outside Town borders) Town negotiates new lease agreement for town hall at 5% increase in rent :• Non renewal of cell tower lease agreements (loss of $63,000 annually) Scenario 3 Fiscal Year 2003-2004 2007-2008 Gen Govt Capital Financing Potential $858,882 ($57,943) ($739,194) ($1,324,699) ($3,318,816) (Less Proposed Capital Projects) ($690.000) ($90,000) $0 ($1,000,000) $0 Remaining Capital Projects Balance $168,882 ($147,943) ($739,194) ($2,324,699) ($3,318,816) Land Preservation Fin Potential $1.979,200 $2,251,790 $2,572,565 $2,926,665 $3.327,295 $3,748,21 (Less Proposed Capital Projects) ($639,610) ($631.500) ($638.500) ($610.000) ($608.000) ($595.000 Remaining Capital Projects Balance $1,339,590 $1,620.290 $1,934,065 $2,316.665 $2,719,295 $3,153,21 Downtown Development Fin Potential $894,163 $872,918 $936,534 $1,168,871 $1.402,400 $1,636,981 (Less Proposed Capital Projects) ($225,000) ($160.000) $0 $o E0 sc Remaining Capital Projects Balance $669,163 $712,918 $936,534 $1,168,871 $1.402,400 $1,636,98 velo went Fees Parks & Rec Financing Potential $676,630 $848,960 $902,360 ($571,540) ($1.480,090) ($1,895,290 (Less Proposed Capital Projects) ($129,670) ($339.000) ($2.081,000) ($1,397,000) ($672,000) ($1,000,000 Remaining Capital Projects Balance $546,960 $509,960 ($1,178,640) ($1,%8.540) ($2,152,090) ($2,895.290 Open Space Financing Potential $844.613 $1,147,293 $1,584,113 $2,259.953 $1,903,703 $1,489,56 (Less Proposed Capital Projects) ($33.500) $0 $0 ($900,000) ($700.000) ($1,000,000 Remaining Capital Projects Balance $811.113 $1,147,293 $1,584,113 $1,359,953 $1.203,703 $489,563 Streets and Hiehways (HLTRF) Street Capital Financing Potential $138,175 ($361,383) ($2,415,416) ($4,908,970) ($7,594,769 ($10,527,691 (less Proposed Capital Projects) ($200.000) ($1,670.000) ($2,040,000) ($2.100,000) ($2.120,000) ($1,595.000 Remaining Capital Projects Balance ($61.825) ($2031 38 i) ($4 455 416) ($7 008 970) ($9 714 769) ($12,122,691 Recommendation There are several factors that affect the financial future of the Town, some that can be controlled by legislative action (i.e., diversifying revenue) and others are a result of factors that cannot be controlled locally (i.e., inflation). Staff believes that Scenario 1 (most likely) represents the best estimate of revenues, expenditures, fund balance and capital financing available in the near future. Scenario 2 (optimistic) assumes additional funding for capital projects through revenue enhancements, grants, increased building activity and current level of municipal services. The third scenario (pessimistic) would be the result of external factors affecting town revenues (i.e., legislative actions, retracted economy, inflationary costs, etc.) which could result in a further reduction in services. I" ... Staff is recommending that improvements to the Town's financial forecast be implemented following the November workshop; this can be accomplished with the adoption of the revenue enhancements that have previously been presented and listed below: 1) Increase the tax rate on advertising activity from 0% to 2.6%; advertising activity includes gross income from billboards, direct mail, radio, television, newspapers or any other means. The town would capture its proportionate share of the total tax that is collected through sales of advertising and being distributed to the 77 incorporated cities and towns that currently include advertising in their tax code. There are only 10 cities that do not include advertising in their tax code. Estimated annual revenue = $406,350 2) Eliminate exemption (h) in Sec. 8A-445 — Rental, leasing, and licensing for use of real property. The town tax rate on property rental is 2.6% but exempts long term residential rentals/leases. The tax would apply to apartment buildings, condominiums, duplexes and some homes (where the owner has more than three units in Arizona). There are only 22 cities that exempt residential rentals. Estimated annual revenue = $121,875 3) Adopt Local Option H of the Model City Tax code Sec. 8A-410 taxing health spas and fitness centers, dance studios and other businesses who charge for the use of their premises. Of the 87 incorporated cities and towns, 55 exempt health spa memberships as a taxable activity. Estimated annual revenue = $32,500 �.► 4) Increase charges for municipal services to recover cost of delivering the services (example, notary fees, business lists, duplicate licenses, etc.). Estimated annual revenue 3 500 5) Impose a liquor license permit fee — currently the Town of Fountain Hills does not charge for any type of liquor licensing fee although the application process requires considerable staff and law enforcement time (posting, zoning, etc.). Several cities and towns charge businesses for the liquor license; staff would like to implement a fee schedule that would help recover the costs of administering these licenses. The fees would vary depending on the series (numbered 1 through 17). Estimated annual revenue = $35,000 The tax code changes would not become effective until sixty (60) days after the Council approves the resolution changing the code; the Arizona Department of Revenue requires advance notice so that taxpayers can be informed of the change. The estimated monthly revenue from these changes is approximately $50,000. Summary No action is being requested during the October 16, 2003 Council meeting. More information on individual revenue enhancements, such as comparing what fees other municipalities charge, will be presented at the November workshop. After the Council has reviewed this information staff will be requesting direction regarding which specific revenue enhancements are approved. Article IV - Privilege Taxes Sec. 8A-400. Imposition of Privilege Taxes: presumption. (a) There are hereby levied and imposed, subject to all other provisions of this Chapter, the following Privilege Taxes for the purpose of raising revenue to be used in defraying the necessary expenses of the Town, such taxes to be collected by the Tax Collector: (1) a Privilege Tax upon persons on account of their business activities, to the extent provided elsewhere in this Article, to be measured by the gross income of persons, whether derived from residents of the Town or not, or whether derived from within the Town or from without. (2) (Reserved) (b) Taxes imposed by this Chapter are in addition to others. Except as specifically designated elsewhere in this Chapter, each of the taxes imposed by this Chapter shall be in addition to all other licenses, fees, and taxes levied by law, including other taxes imposed by this Chapter. (c) Presumption. For the purpose of proper administration of this Chapter and to prevent evasion of the taxes imposed by this Chapter, it .!; be presumed that all gross income is subject to the tax until the contrary is established by the taxpayer. (d) Limitation of exemptions deductions and credits allowed against the measure of taxes imposed by this Chapter. All exemptions, deductions, and credits set forth in this Chapter shall be limited to the specific activity or transaction described and not extended to include any other activity or transaction subject to the tax. Sec.8A-405. Advertising. (a) The tax rate shall be at an amount equal to zero percent (0%) of the gross income from the business activity upon every person engaging or continuing in the business of "local advertising" by billboards, direct mail, radio, television, or by any other means. However, commission and fees retained by an advertising agency shall not be includable in gross income from "local advertising". All delivery or disseminating of information directly to the public or any portion thereof for a consideration shall be considered "Local Advertising", except the following: (1) the advertising of a product or service which is sold or provided both within and without the State by more than one "commonly designated business entity" within the State, and in which the advertisement names either no "commonly designated business entity" within the State or more than one "commonly designated business entity". "Commonly Designated Business Entity" means any person selling or providing any product or service to its customers under a common business name or style, even though there may be more than one legal entity conducting business functions using the same or substantially the same business name or style by virtue of a franchise, license, or similar agreement. (2) the advertising of a facility or of a service or activity in which neither the facility nor a business site carrying on such service or activity is located within the State. (3) the advertising of a product which may only be purchased from an out -of -State supplier. (4) political advertising for United States Presidential and Vice Presidential candidates only. (5) advertising by means of product purchase coupons redeemable at any retail establishment carrying such product but not product coupons redeemable only at a single commonly designated business entity. (6) advertising transportation services where a substantial portion of the transportation activity of the business entity advertised involves interstate or foreign carriage. (b) (Reserved) Sec. 8A-407. (Reserved) 21 (e) Allocation of taxes between cities and towns. In cases where publication or distribution occurs in more than one city or town, the measurement of gross income subject to tax by the Town shall include: (1) that portion of the gross income from publication which reflects the ratio of circulation within this Town to circulation in all incorporated cities and towns in this State having substantially similar provisions; plus (2) only when publication occurs within the Town, that portion of the remaining gross income from publication which reflects the ratio of circulation within this Town to the total circulation of all incorporated cities or towns in this State within which cities the taxpayer maintains a location of publication. (f) The tax imposed by this Section shall not apply to sales of newspapers, magazines or other periodicals 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. Sec.8A-440. (Reserved) Sec.8A-444. Hotels. The tax rate shall be at an amount equal to two and six -tenths percent (2.6%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a) Person. (b) (Reserved) (c) Income derived from incarcerating or detaining 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. Sec. 8A-445. Rental, leasing, and licensing for use of real property. (a) The tax rate shall be at an amount equal to two and six -tenths percent (2.6%) 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. 32 (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. (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 : rom 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 .cmmunity 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 imposec 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- (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 or detaining 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 33 SCENARIO 1 MOST LIKELY 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 Most Likely Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,530 $1,521,969 $1,341,261 $792,120 $0 $0 (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3,000,000) ($1,000,000) $0 $0 Remaining Capital Projects Balance $168,530 ($68,031) ($1,658,739) ($207,880) $0 $0 Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,328,195 $2,740,984 $3,202,460 $3,748,120 $4,351,466 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,696,695 $2,102,484 $2,592,460 $3,140,120 $3,756,466 Downtown Development Fin Potential $894,163 $900,623 $997,236 $1,267,831 $1,552,180 $1,850,043 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $740,623 $997,236 $1,267,831 $1,552,180 $1,850,043 Development Fees Parks & Rec Financing Potential $676,630 $1,018,460 $1,241,360 ($63,040) $672,000 $1,000,000 (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $679,460 ($839,640) ($1,460,040) $0 $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2,433,063 (Less Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) Remaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 Streets and Highways (HURF) Street Capital Financing Potential $138,175 $56,361 ($1,561,501) ($3,600,458) ($5,715,669) ($6,427,136) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040,000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,613,639) ($3,601,501) ($5,700,458) ($7,835,669) ($8,022,136) TOWN OF FOUNTAIN HILLS Aw CIP - General Fund FISCAL YEARS 2004-2009 Resources Projected Operating Revenuel Development Fees - General Govt Development Fees - Law Enforcement Grant/Prop 202 Funds Caital Project Funds left from prior year Less projected operating expenditures Surplus Available Contribution to Fund Balance Transfers to other CEP funds Capital Financing Potential Projects Town Center Phase II Relocate Fire Station Shaded Tot Lot and Playground - Ftn Park North Sidewalk - Fountain Park %,Performance Pad - Fountain Park Utility/Rehab Vehicle (Fire Dept) Total Projects Remaining Capital Projects Balance 5 Year CIP.xlsGenFund10/14/20033:03 PM Fiscal Year 2UUJ-2U04 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $12,678,887 $13,767,567 $14,627,426 $15,752,684 $16,143.544 $16,507,105 $161,075 $191,060 $228,340 $316,880 $267,950 $172,420 $27,453 $13,120 $15,680 $21,760 $18,400 $11,840 $160,000 $77,000 $168,530 ($68,031) ($1,658,739) ($207,880) $0 ($11,653,902) ($12,389,055) ($13,297,571) ($13,413,905) ($14,419,372) ($14,779,869) $1,373,513 $1,828,969 $1,506,261 $1,019,120 $1,803,104 $1,911,980 ($514,983) ($307,000) ($165,000) ($227,000) ($201,000) ($271,000) ($1,602,104) ($1,640,980) $858,530 $1.521,969 $1,341.261 $792,120 $0 $0 $320,000 $187,000 $183,000 $1,500,000 $3,000,000 $90.000 $1,000,000 $690,000 $1,590,000 $3,000,000 $1,000,000 $0 $0 $168,530 ($68,031) ($1,658,739) ($207,880) $0 $0 TOWN OF FOUNTAIN HILLS CIP - Land P> •-servation Excise Tax FISCAL YE.`6 2004-2009 Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $988,605 $1,044,290 $1,099,975 $1,155,661 $1,211.346 $1,339,590 $1,696,695 $2.102,484 $2,592,460 $3,140.120 $1,979.200 $2.328,195 $2,740,984 $3.202,460 $3,748,120 $4,351.466 $639,610 $631,500 $638,500 $610,000 $608,000 $595.000 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $1.339,590 $1,696.695 $2.102,484 $2,592,460 $3.140,120 $3,756.466 5 Year CIP.xlsCIP-Excise Land 10/14/20033:03 PM TOWN OF FOUNTAIN HILLS M CIP - Downtown Development Excise Tax FISCAL YEARS 2004-2009 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $100 $100 $100 $100 $100 Dedicated Excise Tax $987,563 $329,535 $348,097 $366,658 $385,220 $403,782 Capital Project Funds left from prior year $669,163 $740,623 $997,236 $1.267,831 $1,552,180 Less projected operating expenditures ($93.500) ($98,175) ($91,584) ($96,163) ($100.971) ($106,020) Capital Financing Potential $894.163 $900.623 $997.236 $1,267,831 $1.552.180 $1,850.043 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects $225,000 $160,000 $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $740,623 $997.236 $1.267,831 $1,552.180 $1,850,043 Note: The current Avenue of the Fountains Right of Way design may affect future capital needs. 5 Year CIRxIsCIP - Excise Dwntnl0/14/20033:03 PM TOWN OF FOUNTAIN HILLS CIP - Parks & Recreation Development Fees FISCAL YEARS 2004-2009 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Grants Development Fees $668,430 $463,300 $553,700 $768,400 $649,750 $418,100 Interest $8,200 $8.200 $8,200 $8.200 $8.200 $8.200 Capital Project Funds left from prior year $546,960 $679.460 ($839,640) ($1,460,040) $0 Transfer In - General Fund $0 $0 $0 $0 $1,474,090 $573,700 Capital Financing Potential $676,630 $1,018,460 $1.241,360 ($63.040) $672,000 $1,000.000 Projects Associated Amenities - Fm Park $69,670 Modular comp skate park $60,000 Spray/Water Play Park - Fountain Park $125,000 Walking Path - Phase III Fountain Park $214,000 Eng/design for PhII Imps - Four Peaks Park $212.000 $665,000 Phase II Construction - Four Peaks Park $1,553,000 East Parking Lot - Fountain Park $306,000 Children's Water Feature - GEP $10,000 Phase II Design fees - DVNP $67,000 Phase II Construction - DVNP $665,000 Sprinkler System Reconstruct - Fm Park $500,000 Park Signage $84.000 Educational Arboretum/Signage $58,000 BMX Track $30,000 Aquatic/Fitness Facility $1 000 000 Total Projects $129,670 $339,000 $2,081,000 $1,397,000 $672,000 $1,000,000 Estimated Ending Fund Balance $546,960 $679,460 ($839.640) ($1,460,040) $0 $0 5 Year CIP.xIsCIP-MR10/14/20033:04 PM Vw TOWN OF FOUNTAIN HILLS " [P - Open Space Development Fees �w,..SCAL YEARS 2004-2009 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Development Fees Interest Capital Project Funds left from prior year Capital Financing Potential Projects Trailhead Development Trailhead Construction Trail/Connectivity paths Total Projects Remaining Capital Projects Balance 5 Year CIP.xIsCIP-OpenSpace 10/14/20033:04 PM $835,513 $515,780 $616,420 $9,100 $9,100 $9,100 $811.113 $1.335,993 $855,440 $723.350 $465,460 $9,100 $9,100 $9.100 $1,961,513 $1.926.053 $1.958.503 $844,613 $1.335.993 $1,961,513 $2,826,053 $2.658.503 $2,433,063 $33,500 $900,000 $700,000 $1,000,000 $33,500 $0 $0 $900,000 $700,000 $1,000,000 $811.113 $1.335,993 $1.961,513 $1.926.053 $1,958.503 $1,433,063 TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal Palisades/Sunridge Drive (50% developer) signal Shea Bke Lanes/Median (Construction Management) Shea @ Saguaro--EB to NB LT lane lengthening Dump Truck Ruskin and Kipling (remove,replace curbs) Sign Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation 5 YearCIP.AsCIP-Streetsl0/14/2003 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,541,176 $1.614,882 $1.688,589 $1,762,295 $1.836,001 $133,175 $121,800 $137,025 $182.700 $152.250 $121.800 $5,000 $5,000 $5.000 $5,000 $5.000 $5,000 $500.000 $ I47,500 ($61,825) ($1,613,639) ($3,601,501) ($5,700,458) ($7,835,669) $0 $0 $0 $128,014 $1,067,280 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062.770) ($2.269,048) $138,175 $56,361 ($1,561,501) ($3,600,458) ($5.715,669) ($6,427,136) $200,000 $90,000 $200,000 $200,000 $10.000 $30,000 $100,000 $40,000 $40,000 $60,000 $50,000 $750,000 $100,000 $50.000 $1,000,000 $100,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60.000 $70.000 $40,000 $50,000 $1,000,000 $750,000 $750,000 $100,000 $50,000 $50,000 TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Page 2 Shea (Technology to Saguaro) Signal Interconnect Palisades-Westby to La Montana WB Shea west from Saguaro, 3rd lane taper -back La Montana Medians @ Community Center (Curbs) Palisades/Eagle Ridge Drive -Palomino Signal New Grade Tractor Palisades -La Montana to Saguaro Saguaro catch basins WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) Saguaro (El Lago to Grande) Signal Interconnect Part Agmnt Mirage Homes Firebrick Dr and Laser Drain Street Yard Building Palisades -La Montana to Saguaro Del Cambre Rosita to Ashbrook Wash Safe Sidwalks to School Total Projects Remaining Capital Projects Balance Fiscal Years 2003-2UU4 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $40,000 $70,000 $200,000 $100,000 $200,000 $100,000 $180,000 $60,000 $200,000 $50,000 $100,000 $300,000 $120,000 $50,000 $500,000 $795,000 $200,000 $1,670,000 $2,040,000 $2,100,000 $2,120,000 $1,595,000 ($61,825) ($1,613,639) ($3.601.501) ($5,700,458) ($7,835.669) ($8,022,136) Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. 5 Year CIP.xlsCIP-Streets 10/ 14/2003 SCENARIO 2 OPTIMISTIC 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 Fiscal Year Optimistic 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,882 $2,549,079 $3,934,535 $1,000,000 ($0) ($0) (Less Proposed Capital Projects) ($690,000) ($1,590,000) ($3,000,000) ($1,000,000) $0 $0 Remaining Capital Projects Balance $168,882 $959,079 $934,535 ($0) ($0) ($0) Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843,421 $4,473,686 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3,235,421 $3,878,686 Downtown Development Fin Potential $894,163 $907,996 $1,012,444 $1,291,388 $1,584,697 $1,892,132 (Less Proposed Capital Projects) ($225.000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $747,996 $1,012,444 $1,294388 $1,584,697 $1,892,132 Development Fees Parks & Rec Financing Potential $676.630 $1,018,460 $1,241,360 $1,397,000 $672,000 $1,000,000 (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $679,460 ($839,640) $0 $0 $0 Open Space Financing Potential $844,613 $1,335,993 $1,961,513 $2,826,053 $2,658,503 $2,433,063 �ss Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) Cemaining Capital Projects Balance $811,113 $1,335,993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 Streets and Highways (HURF) Street Capital Financing Potential $138,175 $122,561 ($1,412,801) ($1,257,688) ($86,030) $499,323 (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040.000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) ($1,095,677) TOWN OF FOUNTAIN HILLS CIP - General Fund (Optimistic Forecast) FISCAL YEARS 2004-2009 9 Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Projected Operating Revenue' $12,679,239 $14,795,073 $15,694,006 $16,906,740 $17,344,274 $17,754,509 Development Fees - General Govt $161,075 $191,060 $228,340 $316,880 $267,950 $172.420 Development Fees - Law Enforcement $27,453 $13,120 $15,680 $21,760 $18,400 $11,840 Grant/Prop 202 Funds $160,000 $77,000 $500,000 Capital Project Funds from prior year $0 $168,882 $959,079 $934,535 ($0) ($0) Less projected operating expenditures 2 ($11,653,902) ($12,389,055) ($13,297,571) ($13,413,905) ($14,099,491) ($14,779,869) Surplus Available $1,373,865 $2,856,079 $4,099,535 $4,766,010 $3,531,133 $3,158,900 Contribution to Fund Balance ($514,983) ($307,000) ($165,000) ($227,000) ($201,000) ($271,000) Transfers to Other CEP Funds ($3,539,010) ($3,330,133) ($2,887,900) Capital Financing Potential $858,882 $2,549,079 $3,934,535 $1,000,000 ($0) ($0) Projects Town Center Phase II $1,500,000 $3,000,000 Relocate Fire Station $1.000.000 Shaded Tot Lot and Playground - Ftn Park $320.000 North Sidewalk - Fountain Park $187.000 Performance Pad - Fountain Park $183.000 Utility/Rehab Vehicle (Fire Dept) $90,000 Total Projects $690,000 $1,590,000 $3,000,000 $1,000,000 $0 $0 Remaining Capital Projects Balance $168,882 $959.079 $934,535 ($0) ($0) ($0) 5 Year CIP.MsGenFund 10/14/20033:03 PM TOWN OF FOUNTAIN HILLS —'p - Land Preservation Excise Tax '%.oCAL YEARS 2004-2009 Optimistic Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance Fiscal Years 2UU.9-2UU4 2UU4-2U05 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $1,010,574 $1,067,496 $1,124,419 $1,181,342 $1.238,265 $1,339,590 $1,718,664 $2,147,660 $2,662,079 $3.235,421 $1,979,200 $2,350,164 $2,786,160 $3,272,079 $3,843,421 $4,473.686 $639,610 $631.500 $638,500 $610,000 $608,000 $595,000 $639,610 $631,500 $638,500 $610.000 $608,000 $595,000 $1.339,590 $1,718,664 $2,147,660 $2,662.079 $3,235,421 $3,878,686 5 Year CIP.MsCIP-Excise Land 10/ 14/20033:03 PM TOWN OF FOUNTAIN HILLS CIP - Downtown Development Excise .,. `Rx FISCAL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $150 $200 $300 $500 $700 Dedicated Excise Tax $987,563 $336,858 $355,832 $374.806 $393,781 $412,755 Capital Project Funds left from prior year $669,163 $747,996 $1,012,444 $1,291,388 $1,584,697 Less projected operating expenditures ($93,500) ($98.175) ($91,584) ($96,163 Capital Financing Potential $894,163 $907,996 $1,012.444 $1,291.388 $1,584.697 $1.892,132 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects $225,000 $160,000 $0 $0 $0 $0 Remaining Capital Projects Balance $669.163 $747.996 $1,012.444 $1.291.388 $1.584,697 $1,892,132 9 5 Year CIP.xlsCIP - Excise Dwntn 10/14/20033:03 PM TOWN OF FOUNTAIN HILLS ' -1 - Parks & Recreation Development Fees CAL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Grants Development Fees $668,430 $463,300 $553,700 $768.400 $649.750 $418,100 Interest $8,200 $8,200 $8,200 $8,200 $8,200 $8.200 Capital Project Funds left from prior year $546,960 $679,460 ($839,640) $0 $0 Transfer In - General Fund $0 $0 $0 $1,460,040 $14,050 $573.700 Capital Financing Potential $676,630 $1,018,460 $1,241,360 $1,397.000 $672.000 $1,000.000 Projects Three Small Picnic Ramadas and Associated Amenities - Ftn Park $69,670 Modular comp skate park $60,000 Spray/Water Play Park - Fountain Park $125,000 Walking Path - Phase III Fountain Park $214,000 Eng/design for PhII Imps - Four Peaks Park $212,000 $665,000 Phase II Construction - Four Peaks Park $1,553,000 East Parking Lot - Fountain Park $306,000 Children's Water Feature - GEP $10,000 'ease I1 Design fees - DVNP $67,000 4 r ase I1 Construction - DVNP $665,000 Sprinkler System Reconstruct - Ftn Park $500,000 Park Signage $84 000 Educational Arboretum/Signage $58,000 BMX Track $30,000 Aquatic/Fitness Facility $1,000,000 Total Projects $129,670 $339,000 $2,081,000 $1,397,000 $672,000 $1,000,000 Estimated Ending Fund Balance $546.960 $679.460 ($839,640) $0 $0 $0 5 Year C1P.x1sC1P-P&R 10/14/20033:04 PM TOWN OF FOUNTAIN HILLS CIP - Open Space Development Fees FISCAL YEARS 2004-2009 Optimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Development Fees Interest Capital Project Funds left from prior year Capital Financing Potential Projects Trailhead Development Trailhead Construction Trail/Connectivity paths Total Projects Remaining Capital Projects Balance $835,513 $515,780 $616,420 $855.440 $723,350 $465,460 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $811,113 $1.335.993 $1,961,513 $1.926.053 $1.958,503 $844,613 $1,335,993 $1,961,513 $2,826.053 $2.658,503 $2,433.063 $33,500 $900,000 $700,000 $1,000,000 $33,500 $0 $0 $900,000 $700,000 $1,000,000 $811,113 $1.335.993 $1,961,513 $1,926,053 $1,958,503 $1,433,063 w" 9 5 Year CIP.z1sCIP-OpenSpacel0/14/20033:04 PM TOWN OF FOUNTAIN HILLS 'P - Streets CAL YEARS 2004-2009 Optimistic Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal Palisades/Sunridge Drive (50% developer) signal a Bke Lanes/Median (Construction Management) ea @ Saguaro--EB to NB LT lane lengthening Dump Truck Ruskin and Kipling (remove,replace curbs) Sign Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation JGhetti/l0/14/20035 Year CIP.AsStreets - Opt Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,541,176 $1,614,882 $1,688,589 $1,762,295 $1,836.001 $133,175 $187,000 $218,525 $296,800 $250.050 $170,700 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $500,000 $147,500 ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2,206,030) $2,078,970 $3,316.083 $2,314,200 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062,770) ($2,269,048) $138.175 $122,561 ($1.412,801) ($1,257,688) ($86,030) $499,323 $200,000 $90,000 $200,000 $200,000 $10.000 $30,000 $100,000 $40.000 $40.000 $60,000 $50,000 $750,000 $100,000 $50,000 $1.000,000 $100,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60.000 $70,000 $40,000 $50,000 $1,000,000 $750,000 $750,000 $100,000 $50.000 $50,000 TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Page 2 Shea (Technology to Saguaro) Signal Interconnect Palisades-Westby to La Montana WB Shea west from Saguaro, 3rd lane taper -back La Montana Medians @ Community Center (Curbs) Palisades/Eagle Ridge Drive -Palomino Signal New Grade Tractor Palisades -La Montana to Saguaro Saguaro catch basins WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) Saguaro (El Lago to Grande) Signal Interconnect Part Agmnt Mirage Homes Firebrick Dr and Laser Drain Street Yard Building Palisades -La Montana to Saguaro Del Cambre Rosita to Ashbrook Wash Safe Sidwalks to School Total Projects Remaining Capital Projects Balance Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. JGhetti/10/14/20035 Year CIP.AsStreets - Opt Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $40,000 $70,000 $200,000 $100,000 $200,000 $100,000 $180,000 $60,000 $200,000 $50.000 $100,000 $300,000 $120,000 $50,000 $500,000 $795,000 $200,000 $1,670,000 $2.040,000 $2,100,000 $2,120,000 $1,595,000 ($61,825) ($1,547,439) ($3,452,801) ($3,357,688) ($2.206.030) ($1,095,677) SCENARIO 3 PESSIMISTIC 5 YEAR FINANCIAL PLAN SUMMARY FY 2004-2009 Fiscal Year Pessimistic 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 General Fund Gen Govt Capital Financing Potential $858,882 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) (Less Proposed Capital Projects) ($168,882) ($90,000) $0 ($1,000,000) $0 $0 Remaining Capital Projects Balance $690,000 ($8,291) ($704,540) ($2,300,946) ($2,927,043) ($4,149,299) Excise Tax Fund Land Preservation Fin Potential $1,979,200 $2,273,272 $2,628,046 $3,028,411 $3,509,868 $4,045,918 (Less Proposed Capital Projects) ($639,610) ($631,500) ($638,500) ($610,000) ($608,000) ($595,000) Remaining Capital Projects Balance $1,339,590 $1,641,772 $1,989,546 $2,418,411 $2,901,868 $3,450,918 Downtown Development Fin Potential $894,163 $882,315 $959,590 $1,209,815 $1,472,763 $1,748,193 (Less Proposed Capital Projects) ($225,000) ($160,000) $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $722,315 $959,590 $1,209,815 $1,472,763 $1,748,193 Development Fees Parks & Rec Financing Potential $676,630 $848,960 $902,360 ($571,540) ($1,536,590) ($1,951,790) (Less Proposed Capital Projects) ($129,670) ($339,000) ($2,081,000) ($1,397,000) ($672,000) ($1,000,000) Remaining Capital Projects Balance $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,208,590) ($2,951,790) Open Space Financing Potential $844,613 $1,147,293 $1,584,113 $2,259,953 $1,840,803 $1,426,663 (Less Proposed Capital Projects) ($33,500) $0 $0 ($900,000) ($700,000) ($1,000,000) Remaining Capital Projects Balance $811,113 $1,147,293 $1,584,113 $1,359,953 $1,140,803 $426,663 Streets and Highways (HURF) Street Capital Financing Potential $138,175 ($328,783) ($2,333,916) ($4,760,120) ($7,427,469) ($10,335,941) (Less Proposed Capital Projects) ($200,000) ($1,670,000) ($2,040.000) ($2,100,000) ($2,120,000) ($1,595,000) Remaining Capital Projects Balance ($61,825) ($1,998,783) ($4,373,916) ($6,860,120) ($9,547,469) ($11,930,941) TOWN OF FOUNTAIN HILLS rP General Fund (Pessimistic Forecast) sC,AL YEARS 2004-2009 Resources Projected Operating Revenue' Development Fees - General Govt Development Fees - Law Enforcement Grant/Prop 202 Funds Capital Project Funds from prior year Less projected operating expenditures Surplus Available Contribution to Fund Balance Transfers to other CEP Funds Capital Financing Potential Projects Town Center Phase I1 Relocate Fire Station haded Tot Lot and Playground - Fm Park (�rth Sidewalk - Fountain Park Performance Pad - Fountain Park Utility/Rehab Vehicle (Fire Dept) Total Projects Remaining Capital Projects Balance 5 Year CIP.x1sGenFund10/14/20033:03 PM Fiscal Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $12,679,239 $12,018,402 $12,390,302 $13,034,774 $13,791,920 $13,978,593 $161,075 $121,160 $158,440 $246,980 $174,750 $102,520 $27,453 $8,320 $10,880 $16,960 $12.000 $7,040 $160,000 $0 $0 $168,882 ($8,291) ($704,540) ($2,300,946) ($2,927,043) ($11,653,902) ($12,235,055) ($13.255,871) ($13,895,120) ($14,604,767) ($15,310,409) $1,373,865 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) ($514,983) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $858,882 $81,709 ($704,540) ($1,300,946) ($2,927,043) ($4,149,299) $1,000,000 $320.000 $187,000 $183,000 $90.000 $690,000 $90,000 $0 $1,000,000 $0 $0 $168.882 ($8,291) ($704.540) ($2,300,946) ($2,927,043) ($4,149,299) TOWN OF FOUNTAIN HILLS CIP - Land Preservation Excise Tax FISCAL YEARS 2004-2009 Pessimistic Resources Interest Dedicated Excise Tax Capital Project Funds left from prior year Less projected operating expenditures Capital Financing Potential Projects Debt Service - Preservation Bonds Total Projects Remaining Capital Projects Balance Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,979,200 $933,682 $986,274 $1,038,865 $1,091,457 $1,144,049 $1,339,590 $1,641,772 $1,989,546 $2,418,411 $2,901,868 $1,979,200 $2,273,272 $2,628.046 $3,028,411 $3.509,868 $4.045,918 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $639,610 $631,500 $638,500 $610,000 $608,000 $595,000 $1,339,590 $1.641.772 $1,989,546 $2.418.411 $2,901,868 $3,450.918 9 F] 5 Year CIPAsCIP-Excise Land 10/14/20033:03 PM TOWN OF FOUNTAIN HILLS ��P - Downtown Development Excise Tax . CAL YEARS 2004-2009 Pessimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Interest $100 $100 $100 $100 $100 $100 Dedicated Excise Tax $987,563 $311,227 $328,758 $346,288 $363.819 $381.350 Capital Project Funds left from prior year $669,163 $722,315 $959,590 $1.209,815 $1,472.763 Less projected operating expenditures ($93.500) ($98,175) ($91,584) ($96.163) ($100,971) ($106.020) Capital Financing Potential $894.163 $882,315 $959.590 $1.209,815 $1,472.763 $1.748.193 Projects Avenue of the Fountains RFP $225,000 Upgrade 2 waterfalls Ave of Fountains $30,000 Upgrade Ave of Ftns Electrical (East End) $130,000 Total Projects $225,000 $160,000 $0 $0 $0 $0 Remaining Capital Projects Balance $669,163 $722.315 $959.590 $1,209,815 $1,472.763 $1,748,193 5 Year CIP.xisCIP - Excise Dwntn 10/ 14/20033:03 PM TOWN OF FOUNTAIN HILLS CIP - Parks & Recreation Development Fees FISCAL YEARS 2004-2009 Pessimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Grants Development Fees $668,430 $293,800 $384,200 $598,900 $423,750 $248.600 Interest $8,200 $8,200 $8,200 $8,200 $8.200 $8.200 Capital Project Funds left from prior year $546,960 $509,960 ($1,178,640) ($1,968,540) ($2,208,590) Transfer In - General Fund $0 $0 $0 $0 $0 $0 Capital Financing Potential $676,630 $848,960 $902,360 ($571,540) ($1.536.590) ($1,951,790) Projects Three Small Picnic Ramadas and Associated Amenities - Ftn Park $69,670 Modular comp skate park $60,000 Spray/Water Play Park - Fountain Park $125,000 Walking Path - Phase III Fountain Park $214,000 Eng/design for PhII Imps - Four Peaks Park $212,000 $665,000 Phase II Construction - Four Peaks Park $1,553,000 East Parking Lot - Fountain Park $306,000 Children's Water Feature - GEP $10,000 Phase II Design fees - DVNP $67,000 Phase II Construction - DVNP $665,000 Sprinkler System Reconstruct - I'm Park $500,000 Park Signage $84,000 Educational Arboretum/Signage $58,000 BMX Track $30,000 Aquatic/Fitness Facility $1.000,000 Total Projects $129,670 $339,000 $2,081.000 $1,397,000 $672,000 $1,000,000 Estimated Ending Fund Balance $546.960 $509,960 ($1,178,640) ($1,968.540) ($2,208,590) ($2.951,790) 5 Year CIP.xIsCIP-MR10/14/20033:04 PM TOWN OF FOUNTAIN HILLS jj,� —'P� - Open Space Development Fees ICAL YEARS 2004-2009 Pessimistic Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Resources Development Fees $835,513 $327.080 $427,720 $666,740 $471,750 $276.760 Interest $9,100 $9,100 $9,100 $9,100 $9,100 $9.100 Capital Project Funds left from prior year $811,113 $1,147.293 $1.584.113 $1,359,953 $1.140.803 Capital Financing Potential Projects Trailhead Development Trailhead Construction Trail/Connectivity paths Total Projects Remaining Capital Projects Balance $844,613 $1.147,293 $1,584,113 $2.259,953 $1,840.803 $1.426,663 $33,500 $900,000 $700,000 $1,000,000 $33,500 $0 $0 $900,000 $700,000 $1.000,000 $811.113 $1,147,293 $1,584.113 $1,359,953 $1,140,803 $426,663 5 Year CIP.xIsCIP-OpenSpacel0/14/20033:04 PM TOWN OF FOUNTAIN HILLS CIP - Streets FISCAL YEARS 2004-2009 Pessimistic Resources Projected Operating Revenue Development Fees Streets Interest Federal Aid Grant School District Adjacent Ways Funds Capital Project Funds left from prior year Transfer from General Fund Less projected operating expenditures Capital Financing Potential Projects Fountain Hills Boulevard/El Lago (50% developer) Shea (Eagle Mtn Pkwy to Palisades) interconnect Saguaro/El Lago (50% developer) signal Palisades/Sunridge Drive (50% developer) signal Shea Bke Lanes/Median (Construction Management) Shea @ Saguaro--EB to NB LT lane lengthening Dump Truck Ruskin and Kipling (remove,replace curbs) Sign Maintenance Truck Palisades-FH Blvd - curb construction Sidewalks Mill and Overlay Reconstruct Street Sweeper Guardrail Modifications/removals Avenue of the Fountains/La Montana Signal Palisades-Westby to La Montana Bucket Lift Truck New Striper Malta and Saguaro add CMP and catch basins La Montana Medians @ Community Center Palisades-FH Blvd - landscape/irrigation JGhetti5 Year CIP.AsStreets - Pess10/14/2003 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 $1,523,900 $1,155,882 $1,211,162 $1,266,442 $1,321,721 $1.377,001 $133,175 $123,950 $155,475 $219,600 $170,700 $100,575 $5,000 $3,000 $3,000 $3,000 $3,000 $3,000 $0 $0 ($61,825) ($1,998,783) ($4,373,916) ($6,860,120) ($9,547,469) $0 $0 $0 $0 $0 ($1,523,900) ($1,549,790) ($1,704,769) ($1,875,246) ($2,062,770) ($2,269,048) $138,175 ($328,783) ($2,333,916) ($4,760,120) ($7,427,469) ($10,335,941) $200,000 $90,000 $200,000 $200,000 $10,000 $30,000 $100,000 $40,000 $40,000 $60,000 $50,000 $750,000 $100,000 $50,000 $1,000,000 $100,000 $150,000 $50,000 $220,000 $100,000 $100,000 $100,000 $60,000 $70,000 $40,000 $50,000 $1,000,000 $750,000 $750,000 $100,000 $50,000 $50,000 TOWN OF FOUNTAIN HILLS ( v - Streets �,,,oCAL YEARS 2004-2009 Page 2 Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Shea (Technology to Saguaro) Signal Interconnect $40,000 Palisades-Westby to La Montana $70 000 WB Shea west from Saguaro, 3rd lane taper -back $200 000 La Montana Medians @ Community Center (Curbs) $100,000 Palisades/Eagle Ridge Drive -Palomino Signal $200 000 New Grade Tractor $100 000 Palisades -La Montana to Saguaro $180,000 Saguaro catch basins $60,000 WB Shea Climbing Lane--FH Blvd to Palsdes (Fed Aid Proj) $200.000 Saguaro (El Lago to Grande) Signal Interconnect $50,000 Part Agmnt Mirage Homes Firebrick Dr and Laser Drain $100 000 Street Yard Building $300,000 Palisades -La Montana to Saguaro $120,000 Del Cambre Rosita to Ashbrook Wash $50,000 Safe Sidwalks to School $500,000 $795,000 tal Projects $200,000 $1,670,000 $2,040.000 $2,100,000 $2,120,000 $1,595,000 Remaining Capital Projects Balance ($61.825) ($1,998.783) ($4,373,916) ($6.860,120) ($9,547,469) ($11,930,941) Note: In FY 03-04 the Street Department will be producing a specific street replacement plan that may adjust estimates for future capital spending. JGhetti5 Year CIP.AsStreets - Pess10/14/2003 `W Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Consent:❑ Regular:® Meeting Date: 10/16/03 Contact Person: McGuire Requesting Action:® Tvne of Document Needing Approval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ® Other: Policy Council Prioritv (Check Appropriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording Discussion of establishing a policy prioritizing distribution of Proposition 202 funds with possible direction to staff. Staff Recommendation: Approve Fiscal Impact: Yes Purpose of Item and Background Information: The Town has been requested by a number of agencies and nonprofit groups to act as a conduit for funding under Proposition 202. In order to process these requests, it is important for the staff to receive policy direction from the Town Council with respect to the role that the Town will play in the process. The attached letter provides a very brief description of the two courses of action staff believes is available List All Attachments as Follows: letter Type(s) of Presentation: none Signatures of Submitting Staff: Department Head — - Town lVfanaker Budget Review (if item not budgeted or exceeds budget amount) JORDEN BISCHOFF MCGUIRE & R O S E P.L.C. LAW OFFICES MEMORANDUM TO: Mayor and Town Council Town Manager FROM: Andrew J. McGuire Town Attorney DATE: October 10, 2003 SUBJECT: Proposition 202 Funding 7272 E. INDIAN SCHOOL ROAD, SUITE 205 SCOTTSDALE, ARIZONA 85251 TELEPHONE: 480-505-3900 FACSIMILE: 480-505-3901 ANDREW J. MCGuiRE DIRECT LINE: 480-505-3905 e-mail: amcguire@jordenbischoff.com The Town has been requested by a number of agencies and nonprofit groups to act as a conduit for funding under Proposition 202. In order to process these requests, it is important for the staff to receive policy direction from the Town Council with respect to the role that the Town will play in the process. Set forth below are very brief descriptions of the two courses of action we believe are available: 1. Town as a Conduit. Under this method, the Town would merely act as the funnel through which all requests would be funded. Entities would submit requests directly to the Indian communities and would execute funding agreements with the Indian communities setting forth the conditions upon the use of the funds. Under this method, the Town would enter into one or more intergovernmental agreements with the Indian communities setting forth the limited nature of the Town's role. Such an agreement would provide that (i) the respective communities be solely responsible for the determination of whether an application was appropriate under the applicable state law and (ii) the respective communities indemnify the Town for any claims arising out of such determination. An IGA in this "conduit" format is before you for consideration at your October 16, 2003, Regular Town Council Meeting. This IGA is in essentially the same form as the one previously entered into by the Salt River Pima-Maricopa Indian Community and the City of Tucson. 2. Town as Gatekeeper. Under this method, the Town would act as a filter to analyze and prioritize the requests for funding. As you all know, the Proposition 202 statutory provisions are very new, and there is no direct authority for the Town to act in the gatekeeper capacity. However, the specific language of the statute authorizes "[d]istributions to cities, towns, or counties for government services that benefit the general public, including public safety, mitigation of impacts of gambling, or promotion of commerce or economic development". I Mayor and Town Council Town Manager Proposition 202 Policy October 10, 2003 Page 2 believe the "government services" language may give rise to the implicit power of the Town to regulate the application process. If the Town were to assume the regulatory role, it would be in the position to make the determination of whether each application is appropriate under the statutes. However, a necessary counterpart to the ability to regulate is the promulgation of a set of objective criteria for evaluating applications. We have not solicited the input of the Indian communities with respect to this "gatekeeper" idea. Because the Town will be facilitating the Proposition 202 funding process through the Town's books, it will be necessary under either method to develop policies with respect to accounting procedures to be applied to such funds. Likewise, staff will need direction as to whether the Town Council desires to implement administrative fees for the staff time required to facilitate the process, whether the Town is acting as a conduit or a gatekeeper. Staff has been in contact with representatives from both Phoenix and Mesa to coordinate the effort of developing a uniform policy for Proposition 202 funds. However, prior to proceeding with the steps necessary to jointly develop the administrative mechanism for Proposition 202 funding, it is imperative that staff receive your policy direction with respect to the role the Town will play in the process. 9196.004\Prop. 202.m mdoc 10-10-03-1 TOWN OF FOUNTAIN HILLS OFFICE OF TOWN MANAGER INTER OFFICE MEMO TO: Honorable Mayor Nichols and Town DT: October 15, 2003 Councilmembers FR: Tim Pickering, Town Manager RE: Council Meeting 10/16/03 Agenda Item #17 Attached to this memo please find two new sections of the Arizona Revised Statutes entitled "New Standard Form of Tribal -State Gaming Compact; Effects" and "Commerce and Economic Development Commission Local Communities Fund" for your information relative to Agenda Item #17 for tomorrow's council meeting. Attachment cc: Andrew McGuire, Town Attorney Stein/e:/Stein/memoretribalstategamingcompacts.doc/ 101503 Sec. 3. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding a new Section 5-601.02, as follows: 5-601.02 NEW STANDARD FORM OF TRIBAL -STATE GAMING COMPACT- EFFECTS 4. IN ADDITION TO MONIES CONTRIBUTED TO THE ARIZONA BENEFITS FUND, TWELVE PERCENT OF TRIBAL CONTRIBUTIONS PURSUANT TO NEW COMPACTS SHALL BE CONTRIBUTED BY INDIAN TRIBES TO CITIES, TOWNS AND COUNTIES AS DEFINED IN TITLE 11, ARIZONA REVISED STATUTES, FOR GOVERNMENT SERVICES THAT BENEFIT THE GENERAL PUBLIC, INCLUDING PUBLIC SAFETY, MITIGATION OF IMPACTS OF GAMING, AND PROMOTION OF COMMERCE AND ECONOMIC DEVELOPMENT. (A) AN INDIAN TRIBE MAY DISTRIBUTE SUCH FUNDS DIRECTLY TO CITIES, TOWNS AND COUNTIES FOR THESE PURPOSES. THE AMOUNT OF MONIES SO DISTRIBUTED BY EACH INDIAN TRIBE SHALL BE REPORTED TO THE DEPARTMENT OF GAMING IN THE QUARTERLY REPORT REQUIRED BY THE NEW COMPACT. (B) ANY MONIES COMPRISING THE TWELVE PERCENT NOT SO DISTRIBUTED BY AN INDIAN TRIBE SHALL BE DEPOSITED IN THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND ESTABLISHED BY SECTION 41-1505.12 FOR GRANTS TO CITIES, TOWNS AND r COUNTIES. Sec. 9. Title 41, Chapter 10, Article 1, Arizona Revised Statutes, is amended by adding a new section 41-1505.12 as follows: r 41-1505.12. COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND A. THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND IS ESTABLISHED CONSISTING OF MONIES DEPOSITED PURSUANT TO SECTIONS 5-601.02(H)(4)(B) AND 5- 601.02(I)(6)(B)(VII), AND INTEREST EARNED ON THOSE MONIES. THE DIRECTOR SHALL ADMINISTER THE FUND. THE FUND IS NOT SUBJECT TO APPROPRIATION, AND EXPENDITURES FROM THE FUND ARE NOT SUBJECT TO OUTSIDE APPROVAL NOTWITHSTANDING ANY STATUTORY PROVISION TO THE CONTRARY. B. MONIES RECEIVED PURSUANT TO SECTIONS 5-601.02(H)(4)(B) AND 5-601.02(I)(6)(B)(VII) SHALL BE DEPOSITED DIRECTLY WITH THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND. ON NOTICE FROM THE DEPARTMENT OF COMMERCE, THE STATE TREASURER MAY INVEST AND DIVEST MONIES IN THE FUND AS PROVIDED BY SECTION 35-313, AND MONIES f� EARNED FROM INVESTMENT SHALL BE CREDITED TO THE FUND. NO MONIES IN THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND SHALL REVERT TO OR BE DEPOSITED IN ANY OTHER FUND, INCLUDING THE STATE GENERAL FUND. MONIES IN THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO THE LAPSING OF APPROPRIATIONS. MONIES PROVIDED FROM THE COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION LOCAL COMMUNITIES FUND SHALL SUPPLEMENT, NOT SUPPLANT, EXISTING MONIES. C. ALL MONIES IN THE FUND SHALL BE USED BY THE COMMISSION TO PROVIDE GRANTS TO CITIES, TOWNS AND COUNTIES AS DEFINED IN TITLE 11, ARIZONA REVISED STATUTES, FOR GOVERNMENT SERVICES THAT BENEFIT THE GENERAL PUBLIC, INCLUDING PUBLIC SAFETY, MITIGATION OF IMPACTS OF GAMING, OR PROMOTION OF COMMERCE AND ECONOMIC DEVELOPMENT. ALL GRANT APPLICATIONS MUST HAVE A WRITTEN ENDORSEMENT OF A NEARBY INDIAN TRIBE TO RECEIVE AN AWARD OF FUNDS FROM THE COMMISSION. Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Consent:❑ Regular:® Meeting Date: 10/16/03 Contact Person: McGuire Requesting Action:® Tvne of Document Needing Approval (Check all that_a ❑ Public Hearing ® Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ® Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ❑ Other: Council Prioritv (Check Appropriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: Consideration of Resolution of 2003-67 approving an Intergovernmental Agreement with the Salt River Pima - Maricopa Indian Community establishing the Conveyance Partner for funds directed to the Scottsdale Boys and Girls Club as a result of Propositin 202 funding. •� Staff Recommendation: Approve Fiscal Impact: Yes 2 330 Purpose of Item and Background Information: The Intergovernmental Agreement establishes the Town of Fountain Hills as the "conduit" for the single funding request for $25,000 submitted by the Boys and Girls Club of Scottsdale to the Salt River Pima - Maricopa Indian Community to be used for the purchase of a passenger van. To complete our only other Proposition 202 IGA, legal costs totaled $1,330 and town staff costs equaled an estimated $1,000. List All Attachments as Follows: (1) Resolution 2003-67, Exhibit A, and the Intergovernmental Agreement; (2) the letter of request from the Boys and Girls Club of Scottsdale. Type(s) of Presentation: none Signatures of Submitting Staff: Department Head..._ Town Manager Budget Review (if item not budgeted or exceeds budget amount) 0 RESOLUTION NO.2003-67 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY FOR PROPOSITION 202 FUNDING. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Intergovernmental Agreement (the "Agreement") between the Town of Fountain Hills and the Salt River Pima-Maricopa Indian Community for Proposition 202 funding is hereby approved in the form attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to cause the execution of the Agreement. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, October 16, 2003. FOR THE TOWN OFIYOUNTAIN HILLS: . Nichol REVIEWED BY: Tim G. Pickering, Town Manager 9196.001\2003-67 SRPM IGA res.doc 10-10-03 ATTESTED TO: Bevelyn J. Bender, Town Clerk APPROVED AS TO FORM: Andrew J. McGuire, Town Attorney EXHIBIT A INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY THIS INTERGOVERNMENTAL AGREEMENT (this "Agreement") is entered into by and between the Town of Fountain Hills, an Arizona municipal corporation (the "Town") and the Salt River Pima-Maricopa Indian Community (the "Community"), a Federally -Recognized Indian Tribe, pursuant to Section 12 Payment of Regulatory Costs; Tribal Contributions ("Section 12") of the Salt River Pima-Maricopa Indian Community and State of Arizona Gaming Compact 2002 (the "Compact") and A.R.S. § 5-601.02. RECITALS A. Town and Community may enter into an agreement with one another for the distribution of 12% of the Community's annual contribution under Section 12(b)(1) of the Compact to cities, towns, or counties for services that benefit the general public or promote commerce and economic development and pursuant to A.R.S. § 5-601.02. B. The Community is authorized by to consult, negotiate, contract and conclude and perform agreements with Federal, state, local governments and Indian tribes, as well as any person, association, partnership, corporation, government or other private entity. C. The Town is authorized by A.R.S. §§ 5-601.02 and 11-952 to enter into agreements with Indian Tribes for the purpose of accepting distributions to cities, towns or counties for services that benefit the general public, including public safety, mitigation of impacts of gaming, or promotion of commerce and economic development. D. The Community intends to provide $25,000.00 (the "Funds"), which represents a portion of its contribution pursuant to a Tribal Revenue Sharing Agreement authorized by Section 12 of the Compact and A.R.S. § 5-601.02 to provide for the purchase of a passenger van to be utilized in connection with the operations of the Boys and Girls Clubs of Scottsdale (the "Boys and Girls Club"). AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein, and the covenants and promises set forth below, the Community and the Town, hereby mutually agree as follows: 1. Purpose. The purpose of this Agreement is to set forth the rights and responsibilities of the parties with respect to the payment and distribution of the Funds. Contemporaneously with the execution of this Agreement, the Community and the Boys and Girls Club are executing a Funding Agreement, in the form attached hereto as Exhibit A, describing the use the Boys and Girls Club will make of the Funds. 1 2. Contribution. The Community shall make a payment to the City in the amount of $25,000. The Funds shall be delivered to the Town, without any notice or invoice required, at the address set forth in Section 11 below, not later than October 31, 2003. 3. Disbursement of Funds. Promptly after receipt of the Funds, the Town shall send a payment to the Boys and Girls Club in the amount of the payment received from the Community. 4. Consideration and Reliance. The Community expressly acknowledges that the Town's promise to accept and disburse to the Boys and Girls Club all funds received by the Town pursuant to this Agreement is full and adequate consideration and shall render this promise to provide funding irrevocable, and this Agreement shall constitute a binding obligation of the Community under applicable law 5. Indemnity. The Community further expressly agrees that it was solely responsible for determining that the distribution of the Funds to the Boys and Girls Club is permissible under Section 12 of the Compact. The Community hereby agrees that it shall, to the fullest extent permitted by law, defend, indemnify and hold harmless the Town, its agents, representatives, officers, directors, officials and employees for, from and against all claims, damages, losses and expenses (including but not limited to attorney fees, court costs and the cost of appellate proceedings) relating to, arising out of, or alleged to have resulted from any challenge to the distribution of the Funds to the Boys and Girls Club. 6. Effective Date. This Agreement shall be effective on the date it is signed by the Community's authorized representative. 7. Term. This Agreement shall commence upon the Effective Date and shall remain in full force and effect for a period of one year thereafter. 8. Entire Agreement. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained herein, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superceded and merged herein. 9. Amendment. This Agreement shall not be modified, amended, altered, or changed except by written agreement signed by both parties. 10. Severability. In the event that any provision of this Agreement or the application thereof is declared invalid or void by statute or judicial decision, such action shall have no effect on other provisions and their application which can be given effect without the invalid or void provision or application, and to this extent the provisions of the Agreement are severable. In the event that any provision of this Agreement is declared invalid or void, the parties agree to meet promptly upon request of the other party in an attempt to reach and agreement on a substitute provision. 11. Notification. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or 2 certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: For the Community: President Joni M. Ramos Salt River Pima-Maricopa Indian Community 10005 East Osborn Road Scottsdale, AZ 85256 For the Town of Fountain Hills: Timothy Pickering, Town Manager Town of Fountain Hills 16836 Palisades Boulevard Fountain Hills, AZ 85268 or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this Section. Notices shall be deemed received (i) when delivered to the party, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party's counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 11. Assignment and Delegation. Neither party shall assign nor delegate any of its rights, interest, obligations, covenants, or performance under this Agreement. Any termination shall not relieve either party from liabilities or costs already incurred under this Agreement. 12. Non -Waiver of Sovereign Immunity. Nothing in this Agreement or Exhibit A shall be construed to waive the Sovereign Immunity of the Community. IN WITNESS WHEREOF, The Town of Fountain Hills has caused this Intergovernmental Agreement to be executed by the Town Manager, upon resolution of the Town Council and attested by the Clerk of the Town, and the Salt River Pima-Maricopa Indian Community has caused this Intergovernmental Agreement to be executed by the Community's Tribal Council and attested to by its Clerk. [SIGNATURES ON FOLLOWING PAGE] 3 SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY Joni M. Ramos, President ATTEST: Clerk Date The undersigned attorney acknowledges that he has reviewed the above Agreement on behalf of the Community, and has determined that this Agreement is in proper form and that execution hereof is within the powers and authority granted to the Community. This acknowledgement shall not constitute nor be construed as a waiver of the Sovereign Immunity of the Salt River Pima-Maricopa Indian Community. Date TOWN OF FOUNTAIN HILLS Timothy Pickering, Town Manager Date ATTEST: Bevelyn J. Bender, Town Clerk In accordance with the requirements of A.R.S. § 11-952(D), the undersigned attorney acknowledges that he has reviewed the above Agreement on behalf of the Town of Fountain Hills and, as to the Town of Fountain Hills only, has determined that this Agreement is in proper form and that execution hereof is within the powers and authority granted under the laws of the State of Arizona. Andrew J. McGuire, Town Attorney Date El :YYS & GIRLS CLUBS OF SCOTTSDALE Serving the Northeast Valley BOYS & GIRLS CLUBS OFSCOTTSDALE Administrative Offices Virginia G. Piper Branch September 2, 2003 10515 East Lakeview Drive Scottsdale, Arizona 85258-4965 Tel 480-860-5520 Fax 480-860-4708 www.becs.org The Honorable Wally Nichols OFFICERS Mayor Paul S. Gerber Town of Fountain Hills Chairman 16836 E. Palisades Boulevard Ethel DeMarr P. O. Box 17958 Vice Chairman Fountain Hills, AZ 85269 Steven L. Tooker Vice Chairman Dear Mayor Nichols, Kenzadoorian Vice Chairman Mark Letendre For many years the Boys & Girls Clubs of Scottsdale has been an Secretary active provider of youth services to the Salt River Pima-Maricopa Rick Baker Indian Community. Our organization currently operates two branches Treasurer on the community. Recently we submitted a request to tribal BOARD OF GOVERNORS government for distribution of Proposition 202 gaming compact Hartley B. Barker funds for various Club projects. Distribution of these funds Thomas E. Blanchard James M.Burns requires that these funds be transferred to a local government id Cohen entity before transmission to our organization. With that in mind, Dell'Osso on behalf of the Boys & Girls Club of Scottsdale, I am requesting onna Ducote Craig Hadges that the Town of Fountain Hills become our conveyance partner for Myra Hansen any funds directed to our organization as a result of Proposition Steve Haws John C. Heitel 202 funding. Steven J. Hilton Becky Jackson Peter Ladigo Since there is every reason to expect that tribal council will act Patrick Lamb within the next 30 days, I would ask that you please expedite our Daniel N. Lewis request to the Town Council for consideration. Don B. Lindner James Madson Mary Ellen McKee Thank you in advance for you cooperation. I look forward to seeing Rhondaheel B. ret Michael B. Nelson you this month at our groundbreaking ceremony for the new Fountain Y t3 g Y GenoOh Wills Boys & Girls Club. Gordon W.D. Petrie Richard W. Reinken Edi Remaklus S ' r ly, Stephen Y. Schwanz Peter Stesiak Ted Stump Frank Verderame Richard W. wand Elizabeth Williamson mes C . Stratton PRESIDENT & CEO resi ent & CEO Jim Stratton JCS/Ms aA United Way Agency (SBIARD OF DIRECTORS Chris Christian David Forwood Kevin Kudlo David Porter Michael Thorell Jim Watson Wiiliam Anixter Tina Curran Bob Frost Lester Loring William Powell Judy Todd Robert Winter Carmen Bennett Marney Edwards Donn C. Frye Loren McFarland James Rapisarda Gregg Tucek Jeffrey Berkowitz David Estrada Greg Gee Michael Messenger Robert Rife Michael B. Tully Kevin Bollinger Tina M. Ezzell Bucky Haver Matthew C. Munn Perry Ross Kathy Utzinger Dave Brossart Bertram Feingold Paul Jorgenson John Parker Elizabeth Scarano Scott Verschoor Alan L. Bunnell Brett Flanagan Tiffany Kaplan Kevin Patrick John Stull K.J. Wagner II Kristine Burgoz Buck L. Ford Larry Klassen Pam Philips W. Allen Thompson Brian Wand Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Town Manager Consent:❑ Regular:® Meeting Date: 10/16/03 Contact Person: T Pickering Requesting Action:® Tvne of Document Needing ADAroval (Check all that a ❑ Public Hearing ❑ Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submission ❑ Liquor/Bingo License Application ❑ Special Event Permit ❑ Special/Temp Use Permit ® Other: Reconsideration Council Prioritv (Check ApnroDriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ® Community Development Report Only:❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: Reconsideration of the motion to apply for an extension of the Conservation Status of the State Land. Staff Recommendation: Disapprove Fiscal Impact: Yes $200,000 Purpose of Item and Background Information: Councilwoman Stevens requested that the Council reconsider Councilwoman Nicola's motion (listed above) from the 10/2/03 Council meeting. Under the current Council Rules of Procedure (Page 19, Section 6.6 E.3): Any member of the Council who voted with the majority, as Councilwoman Stevens did, may move a reconsideration of any action at the same or next regular meeting. In addition, a discussion of a purchase of a portion of the State Trust Land can be considered under this agenda item. List All Attachments as Follows: October 7, 2003 letter to the State Land Commissioner Mark Winkleman Type(s) of Presentation: none Simnatures of Submitting Staff: Department Head r Town Manager Budget Review (if item not budgeted or exceeds budget amount) 09 4 a IV ��bat 18 At+•'t°�� October 7, 2003 Town of FOUNTAIN HILLS State Land Commissioner Mark Winkleman Arizona State Land Department 1616 West Adams Street Phoenix AZ 85007 Re: State Trust Land - North of Fountain Hills Dear Commissioner Winkleman: On Thursday, October 2, 2003, the Fountain Hills Town Council voted in favor of beginning the annexation process with the State Land Department for the 1276.02 acres of State Trust Land and the 35-acre middle school parcel (collectively, the "Land"), adjacent to the northerly border of the Town of Fountain Hills (the `Town"). The Town is ready to proceed with the annexation process and wishes to immediately commence preparation of a land use plan with the State Land Department (the "Department") that would be beneficial to the State Trust and the Town. The Town envisions a plan that would combine appropriate zoning with sufficient open space, including parks and trails. The Land is currently classified as "suitable for conservation purposes" and will become eligible for development on October 27, 2003, pursuant to the Department's order on October 27, 1998. If the Department were to decline any development plans for the Land until such time that the annexation is completed, the Trust might benefit immensely as the post -annexation market value of the Land is likely to far exceed the Land's market value before annexation. Furthermore, it is in the best interest of the Town to plan the use of land directly adjacent to it. Accordingly, the Town respectfully requests that the Department withhold the Land from auction until the Department and the Town can successfully complete the planning and annexation process. 16836 East Palisades Boulevard, Building A - P.O. Box 17958 - Fountain Hills, Arizona 85269 - (480) 837-2003 - FAX: (480) 837-3145 r State Land Commissioner Mark Winkleman State Land Department Page 2 October 7, 2003 I would like you to know that the Town is committed to working with the Department to ensure a quality development that adds both value to the State Trust and includes the Town's high community standards. To this end, the Town is prepared to commit the planning staff and financial resources necessary to bring about a land use plan for which we can both be proud. The Town would appreciate the Department's commitment to proceeding with planning and the annexation process before auctioning of the Land occurs. The Town looks forward to a positive written response and the scheduling of a joint meeting between the Department and the Town. Please call me if I can provide you with any information that might assist you in making your decision. Kindest 0000 • �• • Timothy G. Pickering, , C&D Town Manager cc: Fountain Hills Town Councilmembers Andrew McGuire, Town Attorney Stein/E:/rimPickering/statetrustland.doc/ 10603 4161,�3 'Z -- Comprehensive Annual Financial Report 1 For the Fiscal Year Ended June 30, 2003 14 7 v .s TOWN OF FOUNTAIN HILLS, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUKE 30, 2003 Mr. W. J. Nichols Mayor Mr. Rick Melendez Vice Mayor Councilmembers Mr. Mike Archambault Dr. John Kavanagh Ms. Kathleen Nicola Ms. Susan Ralphe Ms. Leesa Stevens Timothy G. Pickering, CEcD, CM Town Manager Julie A. Ghetti, MPA, CPA Accounting Supervisor Prepared by: Financial Services Department TOWN OF FOUNTAIN HILLS, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2003 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 1 List of Principal Officials 7 Organizational Chart 8 GFOA Certificate of Achievement 9 FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 15 Basic Financial Statements Statement of Net Assets 28 Statement of Activities 29 Balance Sheet - Governmental Funds 30 Reconciliation of the Balance Sheet to the Statement of Net Assets 31 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 34 Excise Tax Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 35 Notes to the Financial Statements 37 Required Supplementary Information: Public Safety Personnel Retirement System Schedule of Funding Progress 56 0 TOWN OF FOUNTAIN HILLS, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DUNE 30, 2003 TABLE OF CONTENTS Combining and Individual Fund Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds 60 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 61 General Obligation Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 62 Eagle Mountain Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 63 Municipal Property Corporation Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 64 Capital Projects Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 65 HURF Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 66 Grants Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 67 HURF Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 68 Cottonwoods Special Assessment Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 69 Development Fees Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 70 TOWN OF FOUNTAIN HILLS, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUKE 30, 2003 TABLE OF CONTENTS STATISTICAL SECTION Government -wide information: Government -wide Expenses by Function 72 Government -wide Revenues 73 Fund Information: General Government Expenditures by Function 74 General Government Revenues by Source 75 General Governmental Tax Revenues by Source 76 Town Transaction Privilege (Sales) Tax Collections by Industry Classification 77 Property Tax Levies and Collections 78 Assessed and Estimated Actual Value of Property 79 Primary and Secondary Taxable Property Assessed Valuation 80 Property Tax Rates for All Direct and Overlapping Governments 81 Primary and Secondary Property Tax Rates - All Overlapping Governments 82 Assessed Valuation of Major Taxpayers 83 Computation of Legal Debt Margin 84 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 85 Ratio of Annual Debt Service Expenditures to Total General Expenditures 86 Direct and Overlapping General Obligation Bonded Debt 87 Maricopa County Economic Indicators 88 Miscellaneous Statistical Data 89 0 INTRODUCTORY SECTION THIS PAGE BLANK r4o September 19, 2003 Town of FOUNTAIN HILLS To the Honorable Mayor, Members of the Governing Council, and Citizens of the Town of Fountain Hills, Arizona: State law requires that all general-purpose local governments publish within 120 days (240 days with an extension) of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GARS) by a firm of licensed certified public accountants. The Comprehensive Annual Financial Report (CAFR) of the Town of Fountain Hills for the fiscal year ended June 30, 2003, is hereby submitted. This document represents a joint effort by Town staff as well as our auditors, Cronstrom & Trbovich. This report consists of management's representations concerning the finances of the Town of Fountain Hills. Responsibility for the accuracy of the data and the completeness and fairness of M the presentation, including all disclosures, rests with management. To provide a reasonable basis for making these representations, management of the Town of Fountain Hills has established an internal control framework that is designed to both protect the government's assets from loss, +� theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Fountain Hills' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of Fountain Hills' framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. "' All disclosures necessary for the reader to understand the Town's activities have been included. The Town of Fountain Hills' financial statements have been audited by Cronstrom & Trbovich, PC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Fountain Hills for the fiscal year ended June 30, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of Fountain Hills' financial statements for the fiscal year ended June 30, 2003, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. 16836 East Palisades Boulevard, Building A - P.O. Box 17958 - Fountain Hills, Arizona 85269 - (480) 837-2003 - FAX: (480) 837-3145 +�r GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Town of Fountain Hills' MD&A can be found immediately following the report of the independent auditors. Town of Fountain Hills Profile The Town of Fountain Hills is a planned, family -oriented community established in 1970 by McCulloch Properties (now MCO Properties, Inc.). Prior to 1970 the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. It was purchased by Robert McCulloch in the late 1960s and designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 11,340 acres of land, and bordering northeast Scottsdale, Fountain Hills is surrounded by the 3,500-foot McDowell Mountains on the west, the Fort McDowell Indian Reservation on the east, the Salt River Indian Reservation on the south and by the McDowell Mountain Regional Park on the north. Elevation is 1,520 feet at the fountain, 3,000 feet on Golden Eagle Boulevard, and is 500 feet above Phoenix. The Town of Fountain Hills is an Arizona Municipal Corporation, acting as a general law Town as prescribed in the Arizona Revised statutes. The Town was incorporated on December 5, 1989 with the governmental and administrative affairs of the Town operating under the Council - Manager form of government. Policy making and legislative authority are vested in the Town Council, which consists of a Mayor and six Councilmembers. Councilmembers are elected at large for staggered four-year terms. The Mayor, who also sits on the Town Council, is directly elected bi-annually by the voters and the Vice -Mayor is selected by the Council every eight months on a rotating basis. The Town Council is responsible, among other things, for the adoption of local ordinances, budget adoption, the development of citizen advisory committees and hiring the Town Manager. The Town Manager is responsible for implementation of the policies of the Town Council and administering the Town's operations through five department directors and approximately 77 employees. The Magistrate, Town Attorney and Town Prosecutor are under the direction of the Town Council. Over the past thirteen years Fountain Hills has grown from 10,190 residents to a town of almost 22,000 in 2003. The Maricopa Association of Governments (MAG) estimates that the population of Fountain Hills will continue to grow to near 25,000 by 2010. Although the rate of growth has slowed due to the national economy the Town continues to attract residents who are building large custom homes to take advantage of the scenic vistas surrounding our mountain community. N .r 4W M The Town provides or administers a full range of services including public safety (police, fire, animal control, building inspection); community development (code enforcement, planning, zoning and engineering); the construction and maintenance of streets and infrastructure, municipal court, recreational activities, community center and cultural events. The Town does not maintain utility or other operations that require the establishment of enterprise funds. On October 31, 2001 the Town Council adopted an ordinance to provide fire protection services to all Fountain Hills residents, forming a municipal fire department. Fire protection was previously provided by a separate legal entity, the Fountain Hills Fire District, which has been merged with the Town of Fountain Hills. The financial reporting entity (the Town) includes all the funds and account groups of the primary government (i.e., the Town of Fountain Hills as legally defined) as well as all of its component units. The component units consist of legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Cottonwoods Maintenance District, Eagle Mountain Community Facilities District and Fountain Hills Municipal Property Corporation are included in the financial reports of the Town. The annual budget serves as the foundation for the Town of Fountain Hills' financial planning and control. The Town Council formally adopts the budget and legally allocates, or appropriates, available monies for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Fund. Therefore, these funds have appropriated budgets, and budget to actual information is presented. On or before the second meeting in May the Town Manager submits to the Town Council a proposed budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them. The Town Council is then required to hold public hearings on the proposed budget and to adopt a final budget by no later than June 30, the close of the Town of Fountain Hills' fiscal year. The budget is legally enacted through passage of an ordinance and is prepared by fund and department. The ordinance sets the limit for expenditures during the fiscal year. The Town Manager may authorize transfers from and within personnel and from operating capital to services or supplies within a department. Additional expenditures may be authorized for expenditures directly necessitated by a natural or man-made disaster as prescribed in the State Constitution, Article 9, Section 20. During fiscal year 2002/2003 there were no supplemental budgetary appropriations to the original budget. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town of Fountain Hills operates. Local economy. The 2002-2003 fiscal year posed several significant challenges for the Town of Fountain Hills' economic picture. Despite the uncertain economic conditions of the nation and slower growth of the State's economy, the Town's economy remained stable. The residential housing market has continued to grow although at a more moderate pace than in previous years. New commercial development along Shea Boulevard corridor brought a Target Store and major supermarket shopping center. This increase in retail sales tax base will compensate for the decrease in construction activity that is anticipated in the next several years as the Town approaches build -out. 3 The Town recently awarded a contract to a consultant to develop a concept plan for the downtown area of Fountain Hills. This concept plan will revitalize the downtown area and create connectivity to new businesses being constructed in the same location. New lighting, pedestrian walkways, fountains and cultural amenities will provide interest for adults and children. The Town also approved plans for a Hilton resort that is scheduled to open in FY 2005. The resort will have 178 rooms and 71 townhomes that will expand tourism within the community. Long-term financial planning. During the coming year the Town is faced with the challenge of maintaining the existing level of service to the citizens with reduced resources. A formal five year financial plan and capital improvement plan that will identify projects to be integrated with the annual budget and sources of funding to pay for them will be considered by the Council in the upcoming year. Additional sources of revenue are being proposed that will help to diversify the resources. The Town administration recognizes the need to assure reserves for future revenue shortfalls in case of economic downturns. A large portion of General Fund operating revenue comes from construction related activity that eventually will be constrained by availability of land or the economy; the Council adopted a fund balance policy that will ensure that adequate future reserves are maintained. The policy states: 1. A contingency fund of no less than 30 days operating expenditures for the upcoming fiscal year to be designated for unanticipated expenditure or loss of revenue (contingency). 2. A designated unreserved fund balance of a minimum of ten percent (10%) of the average actual revenues for the preceding five fiscal years designated for "pay -as -you- go" capital. 3. A reserved fund balance of twenty percent (20%) of the average actual revenues for the preceding five fiscal years which is unavailable for appropriation. These amounts will not be programmed for expenditure and are only available for use within the confines of expenditure limitations imposed by the State. The contingency fund can be used for unexpected emergencies and projects upon approval by Council. The Council also adopted additional financial policies that include guidelines for the issuance of debt for capital expenditures, Community Facilities Districts, financing alternatives, expenditure controls and financial planning. The debt policy was prepared with a preference for "pay-as- you-go" financing for capital spending. An investment policy was adopted and was awarded the Investment Policy Certification from the Association of Public Treasurers of the United States and Canada. 0 ■r 1 M Cash management policies and practices. State statutes permit municipalities in Arizona to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, and the State Treasurer's Local Government Investment Pool (LGIP). The Town of Fountain Hills debt policy restricts investments to securities that are 100% backed by the full faith and credit of the U.S. government. The Town of Fountain Hills invests all idle cash in the State LGIP-GOV which consists of government backed securities. The year-to-date yield on investments as of June 30, 2003 was 1.32%. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. Daily cash deposits are made with the local bank and are maintained for payroll and payables; these accounts are fully collateralized to $1 million. Risk management. The Town of Fountain Hills is a member of the Arizona Municipal Risk Retention Pool. Risk coverage includes general liability, errors and omissions, property and automobile insurance. The policy insures up to $2,000,000 per incident occurrence plus any excess liability of up to $13,000,000 per occurrence per year. Coverage is provided on a claims - made basis. During fiscal year 2002-2003 the Town settled two of three lawsuits regarding the Town Council action to assume fire and emergency medical services to the community. The lawsuits were filed on behalf of former Fire District firefighters who were not offered positions with the Town as well as one citizen who filed on behalf of the voters right to decide fire services. The citizen lawsuit and one firefighter lawsuit were settled for immaterial amounts; the final lawsuit on behalf of the firefighters represents a claim for $10 million for breach of contract and interference with contractual relations. The Town expects to prevail in this lawsuit but would be covered by the insurance provider if the claim is determined to be valid. The Arizona Municipal Workers Compensation Fund is the Town's insurance provider for Workers' Compensation. The rate varies according to the functions performed by personnel. Pension and other postemployment benefits. The Town of Fountain Hills had two venues available to employees to provide for them during retirement. The Town Marshal deputies participated in the Arizona Public Safety Retirement System until June 30, 2003 at which time the Marshal Department was eliminated. The state agency plan is offered to state and local governments statewide and funded by employee wage deductions and matching Town contributions. The rates for these contributions are determined by the retirement system in order to ensure the proper amount of funding to meet the obligations to retired employees on a timely basis. As a matter of policy, the Town of Fountain Hills fully funded each year's annual required contribution to the pension plan as determined by the actuary. The Town of Fountain Hills also provides two deferred compensation plans through the International City/County Management Association (ICMA) in accordance with Internal Revenue Code Sections 401A and 457. The 401A is funded by mandatory employee wage deductions and matching Town contributions. The 457 is voluntary and funded 100% through employee participation. 5 For further information on these plans please refer to Note 4 in the financial statements. Awards and Acknowledgements. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Fountain Hills for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2002. This was the seventh consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government also received the GFOA's Distinguished Budget Presentation Award for its annual budget document dated August 1, 2002. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance and Administration Department. I would also like to extend my appreciation to the Mayor and Council for their leadership and support. Each member of the department has my sincere appreciation for the contributions made in the preparation of this report. Respectfull r1 /,• ddd___ fiJr Timothy G. Pickeri ,EcD, CM Town Manager Z TOWN OF FOUNTAIN HILLS, ARIZONA LIST OF PRINCIPAL OFFICIALS ELECTED OFFICIALS Mayor Mr. W. J. Nichols Vice -Mayor Mr. Rick Melendez Councilmember Mr. Mike Archambault Councilmember Dr. John Kavanagh Councilmember Ms. Kathleen Nicola Councilmember Ms. Susan Ralphe Councilmember Ms. Leesa Stevens DEPARTMENT DIRECTORS Town Manager Magistrate Public Works Director Parks & Recreation Director Fire Chief District Commander Town Prosecutor Town Attorney 7 Timothy G. Pickering Ted Armbruster Tom Ward Mark Mayer Mark Zimmerman, Rural Metro Corporation Captain Scott Penrose, Maricopa County Sheriffs Office Iacovino & Kayler Andrew McGuire, Jorden Bischoff McGuire L O ° cgz O •y T 0.i N C O L .R. 0 A, U y ca .� c :. u U8 � u E py o 0.' 3 o u c •c F a £ w � u � L 7 N GTi�r i+ W CC C = v o c 3 3 a�i U 3 F" H a s o0 W o F W 'a c c o c Q U t C 3 m F A ++ L_ w W O O L CC = L L O oU a O L p O 'O c U = „ U U air r Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Fountain Hills, Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. AGE OFFj W ON SSU1FS N d`"""°" President CORPORATION ,s SEAL anti 40flao Executive Director WE THIS PAGE BLANK 10 FINANCIAL SECTION I THIS PAGE BLANK 12 CRONSTROM & TRBOVICH CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and the Town Council of the Town of Fountain Hills, Arizona We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Fountain Hills, Arizona (Town), as of and for the year ended June 30, 2003, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Fountain Hills, Arizona, as of June 30, 2003, and the respective changes in financial position, where applicable, thereof and the respective budgetary comparison for the General and Excise Tax Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis on pages 15 - 25 and the Public Safety Personnel Retirement System Schedule of Funding Progress on page 56 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 13 8706 EAST MANZANITA DRIVE, SUITE 100 ■ SCOTTSDALE, ARIZONA 85258 ■ (480) 348-1 102 ■ FAX (480) 348-1104 A PROFESSIONAL CORPORATION M Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Town's basic financial statements. The introductory section, combining and individual fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. As described in Note 3, the Town has implemented a new financial reporting model, as required by the provisions of GASB statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments, as of June 30, 2003. Cronstrom & Trbovich, P.C. September 19, 2003 14 Management's Discussion and Analysis We (the Town of Fountain Hills) are pleased to provide an overview of our financial activities for the fiscal year ended June 30, 2003. The intended purpose of the Management Discussion and Analysis (MD&A) is to provide an introduction to the basic financial statements and notes, that provides an objective and easy to read analysis of our financial activities based on currently known facts, decisions, and conditions, by providing an easily readable summary of operating results and reasons for changes, which will help to determine if our financial position improved or deteriorated over the past year. This report addresses current operational activities, the sources, uses, and changes in resources, adherence to budget, service levels, limitations, significant economic factors, and the status of infrastructure and its impacts on our debt and operation. As this is our first MD&A we do not have comparative information of many parts of this analysis. When referring to prior year data in this analysis we will be drawing upon information from last years audited financial reports. Financial Highlights ♦ The assets of the Town of Fountain Hills exceeded its liabilities at the close of the most recent fiscal year by $21,162,894 (net assets). Of this amount $2,638,149 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. ♦ As of the close of the current fiscal year, the Town of Fountain Hills' governmental funds reported combined ending fund balances of $9,154,831, an increase of $2,413,947 in comparison with the prior year. ♦ At the end of the current fiscal year, unreserved fund balance for the general fund was $4,037,863 or 35 percent of total general fund expenditures. The fund balance policy adopted by the Council in May, 2003 requires a minimum of $4,469,191 in designated, undesignated and reserve funds; the general fund will contribute $431,328 to the fund balance in the upcoming fiscal year. ♦ General fund revenues (on a budgetary basis) exceeded budgeted revenues by $522,551 for fiscal year 2003. Additionally, budgetary basis expenditures were only 81% ($2,624,712 (19%) in savings) of the final budget in the General Fund. ♦ General fund revenues exceeded expenditures by $601,251; a positive variance of $3,147,263 from the original budget. ♦ The Town includes two types of separate legal entities in its report - a Municipal Property Corporation and Community Facilities Districts. Although legally separate, these "component units" are important because the Town is financially accountable for them. A description of these three component units is available in Note 1 on page 37. Separate Financial Statements are not available for these three entities. 15 Overview of the Financial Statements This is the first year that the Town has implemented the Governmental Accounting Standards Board (GASB) Statement 34 - Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments (the new model). The new model contains sweeping changes to the requirements for governmental reporting. The major changes were as follows: ♦ Government -wide reporting - while governments have traditionally focused reporting on groupings of funds (i.e. General Fund, Special Revenue Funds, Capital Project Funds, etc.), the new model also contains financial statements on a government -wide basis. ♦ Fund financial statements - the new model maintains governmental, proprietary and fiduciary fund financial statements, but the focus is on major funds within each fund type. ♦ New focus for governmental activities - in the government -wide financial statements all activities, including the governmental activities, are reported using the economic resources measurement focus and accrual basis of accounting. The traditional current financial resources focus and modified accrual basis of accounting are maintained for the governmental fund financial statements in the new model. ♦ Infrastructure reporting - the new model requires governments to report the value of infrastructure assets of governmental activities (roads, bridges, storm drainage systems, parks, street lighting, etc.). These assets are reported in the governmental activities on the government -wide financial statements. The Town of Fountain Hills has historically capitalized assets for governmental activities that were reported in the General Fixed Assets Account Group and were not depreciated under the old reporting model. ♦ Changes in budgetary reporting - the new model requires the display of both the original adopted budget and the amended budget, if applicable, in the budgetary comparison schedules. These schedules are only required for the general fund and major special revenue funds, although they may be presented for other funds as additional information. ♦ Required narrative analysis - the new model requires that the financial statements be accompanied by narrative introduction and analytical overview of the government's financial activities in the form of "management's discussion and analysis" (MD&A). The financial section of the Comprehensive Annual Financial Report (CAFR) for the Town of Fountain Hills, Arizona consists of this discussion and analysis, the basic financial statements and the required supplementary schedules presented after the basic financial statements. The basic financial statements include the government -wide financial statements, fund financial statements, including the budgetary statements for the general fund and major special revenue funds, and notes to the financial statements. 16 r 0 Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the Town of Fountain Hills' finances, in a manner similar to private -sector business. The statement of net assets presents information on all of the Town of Fountain Hills' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town of Fountain Hills is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the Town of Fountain Hills that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the Town of Fountain Hills include general government, community development, public safety, highways and streets, and culture and recreation. The Town does not have any business -type activities. The government -wide financial statements can be found on pages 28 - 29 of this report. Fund financial statements. Also presented are the traditional fund financial statements for governmental funds. The fund financial statements now focus on major funds of the Town, rather than fund type used in the old model. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Fountain Hills, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the Town of Fountain Hills are included in the governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Since the governmental fund financial statements focus on near -term spendable resources, while the governmental activities on the government -wide financial statements have a longer term focus, a reconciliation of the differences between the two is provided with the fund financial statements. Notes to the financial statements. The notes to the financial statements (pages 37 - 53) provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements and should be read with the financial statements. 17 Required supplementary information other than MD&A. Governments have an option of including the budgetary comparison statements for the general fund and major special revenue funds as either part of the fund financial statements within the basic financial statements, or as required supplementary information after the footnotes. The Town has chosen to present these budgetary statements as part of the basic financial statements. Additionally, governments are required to disclose certain information about employee pension funds. The Town has disclosed this information in Note 4.0 to the financial statements. Government -Wide Financial Analysis Net assets may serve over time as a useful indicator of a government's financial position. The following table reflects the condensed Statement of Net Assets of the Town for June 30, 2003 showing that assets exceeded liabilities by $21,162,894. Town of Fountain Hills Condensed Statement of Net Assets As of June 30, 2003 ASSETS Governmental Activities Current and other assets $ 16,801,782 Capital assets Non -depreciable 23,571,668 Depreciable (net) 17.071.272 Total assets $ 57,444,722 LIABILITIES Other liabilities $ 7,307,826 Non -current liabilities Due within one year 1,484,604 Due in more than one year 27,489.398 Total liabilities $ 36,281,828 NET ASSETS Invested in capital assets, net of related debt $ 11,843,575 Restricted 6,681,170 Unrestricted 2,638,149 Total net assets $ 21,162,894 The net assets of the Town are $21,162,894 in fiscal year 2003 in governmental activities. The Town does not currently have any proprietary or enterprise funds that would otherwise be classified as business -type activities. All Town funds are considered governmental activities. a Net assets consists of three components. The largest portion of the Town of Fountain Hill's net assets (56%) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The Town of Fountain Hills uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town of Fountain Hills' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. This category of net assets decreased from fiscal year 2001- 2002; the decrease is attributable to the implementation of the depreciation requirements of GASB 34 in the current reporting period. r. An additional portion of the Town of Fountain Hills' net assets (32%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($2,638,149) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the Town of Fountain Hills is able to report positive balances in all three categories of net assets for the government as a whole. Governmental Activities. A comparison of the Town's government -wide revenues and expenditures is not available as this is the Town's first year to implement government -wide financial statements, therefore, prior year amounts are not available. However, an analysis of governmental fund revenues and expenditures has been presented in this discussion and analysis and comparative analysis of government -wide revenues and expenditures will be presented in the subsequent years' reports when prior year data is available. Financial Analysis of the Town's Funds The focus of the Town's governmental funds is to provide information on near -term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the Town's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Types of Governmental funds reported by the Town include the General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. we, As of the end of the current fiscal year the Town's governmental funds reported combined ending fund balances of $9,154,831, an increase of $2,413,947 in comparison with the prior year. Approximately 44% of this total amount ($4,037,863) constitutes general fund balance, which is available for contribution to the designated, undesignated and reserved fund balance. At fiscal year-end 2002-2003 fund balances were as follows: Fund General Fund Excise Tax Fund GO Debt Service Fund Eagle Mtn. Debt Service Fund Municipal Property Corporation Fund Capital Projects Fund Nonmajor Governmental Funds Increase (Decrease) Balance From 2001-02 $ 4,037,863 1,912,404 64,233 790,713 850,284 1,499,334 $ (774,507) 1,912,404 125,385 (249,784) 850,284 (414,432) 964,597 The general fund is the chief operating fund of the Town of Fountain Hills. At the end of the current fiscal year, the fund balance of the general fund was $4,037,863, while total fund balance reached $9,154,831. As a measure of the general fund's liquidity, it may be useful to compare both general fund balance and total fund balance to total fund expenditures. General fund balance represents 35 percent of total general fund expenditures, while total fund balance represents 58 percent of that same amount. The fund balance of the Town of Fountain Hills' general fund decreased by $(774,507) during the current fiscal year. Key factors in this change are as follows: ♦ The General Fund transferred $1,535,000 (0.4% of the total local rate) of local sales tax revenues to the Excise Tax fund to establish a dedicated fund for land preservation and downtown development. In FY2003 a separate fund was established (Excise Tax) to directly record the dedicated sales tax. ♦ The Council enacted an increase in the local sales tax rate of 1 % on April 1, 2003 (increasing FY03 revenue by $623,275) to primarily fund fire and emergency medical service operations. The rate increase will be repealed if a new fire district is formed or the Town is successful in adopting a primary property tax. ♦ Intergovernmental revenues of the general fund increased by $207,244 as a result of a new revenue source from the Arizona Department of Insurance for fire insurance premium taxes. This source of revenue became available when the Town assumed fire operations in FY2001-2002. ♦ The General Fund was reimbursed by bond proceeds for the construction of a new Community Center. The bond proceeds were previously unavailable due to a lawsuit between the Town and the trustee but were recovered in August 2002 ($1,256,178). ♦ The increases in fund balance were offset by an increase in annual expenditures of $2.4 million for fire and emergency medical services that the Town assumed from the former Fire District. 20 I ♦ A Budget Reduction Plan was implemented in February 2003 to reduce expenditures due to the declining revenues and the addition of a fire department that results in a savings of approximately $1.5M during FY2003. Total annual savings is $2.8M. The Excise Tax Fund is a dedicated portion of the local sales tax that can only be used for debt retirement of a Municipal Property Corporation bond for open space and development of the downtown area. The fund balance as of June 30, 2003 is $1,912,404; the annual debt service payment is $607,411. The Highway User Revenue Fund is required by state statute to track the state allocation of gasoline taxes and other state revenues shared with local governments and required to be used for transportation purposes. Revenue in this fund increased $51,425 (4%) in fiscal year 2003 due to the increase in state shared revenues. Expenditures decreased $733,478 from the prior year with the absence of a transfer from the general fund and implementation of a Budget Reduction Plan in February, 2003. Other governmental funds of the Town include the Development Impact Fees Fund which includes governmental impact (development) fees for streets and highways, parks and recreation, law enforcement, general government and open space. This is a restricted fund and may only be appropriated for the particular purpose for which they were imposed. The fund balance as of June 30, 2003 in this fund is $1,098,851; expenditures for FY 2003 were $30,407 and $80,953 in FY 2002. All nonmajor governmental funds of the Town are combined into one column on the governmental fund statements. Budgetary Highlights The Town's annual budget is the legally adopted expenditure control document of the Town. Budgetary comparison statements are required for the General Fund and all major special revenue funds and may be found on pages 34 - 35. These statements compare the original adopted budget, the budget if amended throughout the fiscal year, and the actual expenditures prepared on a budgetary basis. In fiscal year 2002-2003 significant reductions in expenditures were made in order to offset the cost for providing municipal fire and emergency medical services without a funding source. The annualized expenditure reductions in the departments totaled $2,758,000 and were as follows: $ 1,028,695 General Government 894,950 Public Safety 546,170 Culture and Recreation 122,640 Public Works 165,545 Streets and Highways 21 General Fund revenues of $11,979,151, on a budgetary basis, exceeded budgeted revenues of $11,456,600 by $522,551 while budgetary basis expenditures of $11,377,900 were only 81% of budgeted expenditures (savings of $2,624,712). The excess of revenues over budgeted revenues is primarily due to the increase in the local sales tax rate, the new revenue source of fire insurance premium tax and vehicle license taxes. The increased taxes were offset by the decrease in intergovernmental revenues. The Town anticipated a transfer from the County of residual Fire District assets which were transferred on July 7, 2002 but recorded during FY2001-2002. Reduced expenditures were a result of the Budget Reduction Plan that was adopted by the Council in December and implemented in February, 2003. Capital Asset and Debt Administration The Town's capital assets for its governmental activities as of June 30, 2003 amount to $40,642,940 (net of accumulated depreciation), a decrease of 2.7%. For government -wide financial statement presentation, all depreciable capital assets were depreciated from acquisition date to the end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. See Section 3.B.3 in the Notes to the Financial Statements for further information regarding capital assets. The Town recorded its capital assets as part of the general fixed asset account group in past years and in the appropriate funds as they were acquired or constructed. Capital assets include land, buildings and improvements, machinery and equipment, roads and improvements, vehicles, office and computer equipment. With the implementation of GASB 34 the Town reduced the governmental assets by the appropriate accumulated depreciation amount of $4,129,433. During fiscal year 2002-2003 the annual depreciation expense was $1,145,159; decreases of $1,031,377 were recorded for assets with a life of less than five years and a value less than $10,000. There were only two additions to capital assets during the fiscal year for a total of $31,857: ♦ The Town contributed to a Veterans Memorial in Fountain Park; the first phase consisted of the installation of three flag poles, and a concrete pad upon which a piece of military hardware will be placed. ♦ The Community Center and Parks and Recreation Departments were consolidated during FY03 to facilitate program registration and facility use through the Community Center. The former break room in the Community Center was converted into offices through the use of modular furniture and the Parks and Recreation Department moved into the center. 22 r.+ The following table provides a breakdown of the capital assets of the Town at June 30, 2003. Capital Assets at June 30, 2003 (Net of depreciation) Governmental Activities 2003 2002 Percent Change Land $ 23,571,668 $ 23,571,668 - % Buildings and improvements 9,514,951 9,720,003 (2.1)% Improvements other than buildings 5,711,469 6,054,208 (5.7)% Infrastructure 377,221 385,181 (2.1)% Machinery/Equipment 607,395 694,386 (12.5)% Office Equipment/Computers 121,105 226,490 (46.5)% Vehicles 739, 331 1,104,306 (33.1)% $ 40,642,940 $ 41,756,242 (2.7)% Long-term Debt At the end of the current fiscal year, the Town of Fountain Hills had total long-term obligations outstanding of $28,974,002 with no debt issued during the year. Of the outstanding debt, $12,585,000 is general obligation bonds backed by the full faith and credit of the Town. An additional $4,765,000 are special assessment bonds that are backed by a guaranteed investment contract with the developer of the district property. All other outstanding debt is secured by pledges of specific revenue sources of the Town. The State imposes certain debt limitations on the Town of six percent (6%) and twenty percent (20%) of the outstanding assessed valuation of the Town. The Town's available debt margin at June 30, 2003 is $16,643,114 in the 6% capacity and $54,852,046 in the 20% capacity. Additional information on the debt limitations and capacities may be found in the statistical section of this report (page 84). 23 The following schedule shows the outstanding debt of the Town (both current and long-term) as of June 30, 2002 and 2003. Further detail on the Town's outstanding debt may be found in Note 3 on pages 49 - 50. Outstanding Debt Governmental Activities Percent 2003 2002 Change General Obligation Debt $ 11,865,000 $ 12,600,000 (5.8)% Highway User Revenue Bonds 720,000 810,000 (11.1)% Special Assessment Debt 19,365 22,593 (14.3)% Community Facilities District Debt 4,765,000 4,905,000 (2.9)% Municipal Property Corporation Debt 11,430,000 11,855,000 (3.6)% Compensated Absences 174,637 275,626 (36.6)% $ 28,974,002 $ 30,468,219 (4.9)% The Town currently maintains a rating on its general obligation debt of Aa3 from Moody's Investor Services. The rating was assigned a negative outlook in April 2003 due to concerns regarding the Town's financial position and reserve levels that had been published in the FY 2002-2003 annual budget. However, with the implementation of the Budget Reduction Plan the actual general fund reserve balance as of June 30, 2003 is $4,037,863. Additionally, in May, 2003 the Town Council adopted a fund balance policy to establish levels of reserves sufficient to ameliorate effects of future economic fluctuations and legislative actions. Economic Factors and Next Year's Budgets and Rates Fountain Hills, as well as all other Arizona cities, remains dependent on state shared revenues (25%) and local sales taxes for resources (50%). These revenue sources are economically sensitive taxes and subject to slowdowns in the economy and legislative appropriations. Fountain Hills' economic activity has remained fairly stable during the national recession and is expected to grow at a moderate pace over the next year. The low interest rates continue to fuel the housing market and Fountain Hills still has high -end properties that are being developed for custom homes. 24 6-OW The Town is committed to building cash reserves over the next few years, both for financial stability and anticipation of the capital and ongoing operational needs of the community. Fiscal year 2003-2004 budgeted general fund expenditures are $515,000 less than revenue; the surplus will be added to the prior year fund balance, none of which was appropriated for next fiscal year. The adopted fiscal year 2003-2004 budget is $18,658,981, up 14% from 2002 actual, which includes capital projects of $2,089,600. The budget for fiscal year 2003-2004 also includes: • Conservative economic forecast and limited revenue growth • Estimated expenditures are based on zero based approach for all departments • Level of service based on implemented budget reduction plan • Funding of general fund reserves to restore financial stability • Capital projects are funded with "pay-as-you-go" resources Financial contact This financial report is designed to provide a general overview of the Town's finances for all of those with an interest in the government's finances and to demonstrate accountability for the use of public funds. Questions about any of the information provided in this report, or requests for additional financial information should be addressed to: Town of Fountain Hills Accounting Department P.O. Box 17958 Fountain Hills, AZ 85269 (480) 837-2003 Or visit our website at: http://www.fh.az.gov 25 THIS PAGE BLANK 26 .. Basic Financial Statements 27 TOWN OF FOUNTAIN HILLS, ARIZONA STATEMENT OF NET ASSETS JUKE 30, 2003 Governmental Activities Assets Cash and equivalents $ 13,780,485 Cash with paying agent 1,606,741 Receivables, net Accounts receivable 337,722 Taxes receivable 73,993 Intergovernmental receivable 917,519 Special assessments receivable 7,398 Inventories 6,364 Prepaid items 71,560 Capital assets Non -depreciable 23,571,668 Depreciable (net) 17,071,272 Total assets 57,444,722 Liabilities Accounts payable 409,108 Accrued wages and benefits 121,734 Interest payable 780,180 Intergovernmental payable 145,029 Deposits payable 26,775 Due to developers 4,435,000 Matured debt principal payable 1,390,000 Noncurrent liabilities Due within one year 1,484,604 Due in more than one year 27,489,398 Total liabilities 36,281,828 Net assets Invested in capital assets, net of related debt 11,843,575 Restricted for Highways and streets 306,565 Debt service 3,160,835 Capital outlay 1,098 851 Other 2,114,919 Unrestricted 2,638,149 Total net assets $ 21.162,894 The notes to the financial statements are an integral part of this statement. ti ti C z V1 'n G t- .. 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O QCb uJ H � oC7�xUU� c f� C7 H TOWN OF FOUNTAIN HILLS, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS DUNE 30, 2003 General Eagle Municipal Nonmajor Obligation Mountain Property Capital Governmental General Excise Tax Debt Service Debt Service Corporation Projects Funds Totals Assets Cash and equivalents $ 3,780,249 $ 1,806,942 $ 50,679 $ 5,523,577 $ 1,116,540 $ $ 1,502,498 $ 13,780,485 Cash with paying agent - - 1,058,874 - 439,956 - 107,911 1,606,741 Accounts receivable 54,052 - - - - - - 54,052 Taxes receivable 13,571 - 50,663 9,759 - - 73,993 Intergovernmental receivable 802,979 - - - - 114,540 917,519 Special assessments receivable - - - - 7,398 7,398 Due from other funds - 105,462 - - 223 105,685 Inventories 6,364 - - - 6,364 Prepaid items 70,104 1,456 71,560 Total assets $ 4, 227,319 $ 1,912,404 $ 1,160,216 $ 5.533,336 $ 1,556,496 $ $ 1,734,026 $ 16,623,797 Liabilities and Fund Balances Liabilities Accounts payable $ 309,104 $ - $ - $ - $ - $ - $ 100,004 $ 409,108 Accrued wages and benefits 103,086 - - - - - 18,648 121,734 Interest payable - - 323,874 156,675 281,212 - 18,419 780,180 Intergovernmental payable 145,029 - - - - - - 145,029 Due to other funds 105,462 - - - - - 223 105,685 Deferred revenue - - 37,109 10,948 - - 7,398 55,455 Deposits payable 26,775 - - - - - 26,775 Due to developers - - - 4,435,000 - - 4,435,000 Matured debt principal payable - 735,000 140,000 425.000 90,000 1,390,000 Total liabilities 689,456 - 1,095,983 4,742,623 706,212 234,692 7,468,966 Fund balances Unreserved 4,037,863 1,912,404 64,233 790,713 850,284 - 7,655,497 Unreserved, reported in nonmajor Special revenue funds - - - - - - 390,333 390,333 Debt service funds - 10,150 10,150 Capital projects funds 1,098,851 1,098,851 Total fund balances 4,037,863 1,912,404 64,233 790,713 850,284 1,499,334 9,154,831 Total liabilities and fund balances $ 4,727,319 $ 1,912,404 $ 1,160,216 $ 5,533,336 $ 1556,496 $ $ 1,734,026 $ 16,623,797 The notes to the financial statements are an intergral part of this statement. 30 TOWN OF FOUNTAIN HILLS, ARIZONA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS JUKE 30, 2003 Fund balances - total governmental funds $ 9,154,831 Amounts reported for governmental activities in the statement of net assets are different because: Property taxes not collected within 60 days subsequent to fiscal year-end are deferred in the governmental funds. 55,455 Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental capital assets 44,886,155 Less accumulated depreciation (4,243,215) Capital assets used in governmental activities 40,642,940 Other long-term assets are not available to pay for current -period expenditures and are not susceptible to accrual. 283,670 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the governmental funds. General obligation bonds Revenue bonds Special assessment debt with government commitment Community facilities district bonds payable Compensated absences Net assets of governmental activities The notes to the financial statements are an integral part of this statement. 31 (12,585,000) (11,430,000) (19,365) (4,765,000) (174,637) $ 2�62® 894 TOWN OF FOUNTAIN HILLS, ARIZONA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED DUNE 30, 2003 General Eagle Municipal Nonmajor Obligation Mountain Property Capital Governmental General Excise Tax Debt Service Debt Service Corporation Projects Funds Totals Revenues Taxes Sales taxes $ 5,051,872 $ - $ - $ - $ $ _ $ - $ 5,051,872 Property taxes 68,765 - 1,383,019 458,288 - - - 1,910,072 Franchise taxes 152,542 - - - - - - 152,542 Intergovernmental 4,740,758 - - - 1,570,700 6,311,458 Fines and forfeitures 195,091 - - - - 195,091 Licenses and permits 1,308,747 - - - - 1,308,747 Charges for services 175,112 - - 635,300 810,412 Rents and royalties 188,745 - - - - - - 188,745 Contributions and donations 10,000 - - - - 117,200 127,200 Special assessments - - - - - - 4,302 4,302 Investment earnings( loss) (53,214) 7,880 - (195,647) - 2,216,180 1,610 1,976,809 Other 140,733 - - - - 7,410 148,143 Total Revenues 11,979,151 7,880 1,383,019 262,641 - 2,216,180 2336,522 18,185,393 Expenditures Current General government 3,225,928 - 50,000 12,239 30,407 3,318,574 Public safety 5,145,217 - - - 29,275 5,174,492 Highways and streets - - - - - 1,198,080 1,198,080 Culture and recreation 1,791,368 - - - 24,048 1,815,416 Community development 1,215,387 - - - - - 1,215,387 Debt Service Principal retirement - - 735,000 140,000 425,000 - 93,228 1,393,228 Interest on long-term debt - - 648,347 322,425 566,433 2,397 37,240 1,576,842 Capital outlay - - - - 79,427 79,427 Total Expenditures 11377,900 1,383,347 512,425 991,433 14,636 1,491,705 15,771,446 Excess (deficiency) of revenues over expenditures 601,251 7,880 328 (249,784 (991,433 2,201,544 844,817 2,413,947 Other financing sources (uses) Transfers in 1,256,178 2,511,936 125,713 - 1,841,717 - 246,000 5,981,544 Transfers out 2 631 936 (607,412 - 2 615 976 (126,220) 5 981 544 Total other financing sources (uses) 1 375 758 1,904,524 125,713 - 1,841,717 2 615 976 119,780 Net change in fund balances (774,507) 1,912,404 125,385 (249,784) 850,284 (414,432) 964,597 2,413,947 Fund balances, beginning of year 4,812,370 (61,152 1,040,497 - 414,432 534,737 6,740,884 Fund balances, end of year $ 46037,863 $_1 912,404 $ 64,233 $ 7�L $ 85084 $� $ 1,499,334 $ 9,154,831 The notes to the financial statements are an intergral part of this statement. 32 TOWN OF FOUNTAIN HILLS, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUKE 30, 2003 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for capital assets Less current year depreciation Excess capital expenditures over depreciation Some revenues reported in the statement of activities do not provide current financial resources and therefore are not reported as revenues in governmental funds. Court fines The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. The issuance of long- term debt increases long-term liabilities on the statement of net assets and the repayment of principal on long-term debt reduces long-term debt on the statement of net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when the debt is first issued, whereas these items are deferred and amortized over the term of the long-term debt in the statement of activities. Principal payments on long-term debt Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Net increase in compensated absences Bad debt expense Change in net assets of governmental activities The notes to the financial statements are an integral part of this statement. 33 2,413,947 31,857 (1,145,159) (1,113,302) 202,349 1,393,228 100,989 (70,917) $..2 926 �294 TOWN OF FOUNTAIN HILLS, ARIZONA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Original and Final Variance with Final Budget Actual Budget Revenues Taxes $ 4,430,000 $ 5,273,179 $ 843,179 Intergovernmental 5,358,000 4,740,758 (617,242) Fines and forfeitures 260,000 195,091 (64,909) Licenses and permits 870,000 1,308,747 438,747 Charges for services 205,000 175,112 (29,888) Rents and royalties 136,600 188,745 52,145 Contributions and donations - 10,000 10,000 Investment earnings (loss) 150,000 (53,214) (203,214) Other 47,000 140,733 93,733 Total Revenues 11,456,600 11,979,151 522,551 Expenditures Current General government Mayor and Town Council 64,660 66,272 (1,612) Magistrate Court 327,470 278,915 48,555 General and Administrative 3,332,955 2,851,202 481,753 Undesignated Reserves 859,793 - 859,793 Contingency 47,500 29139 17,961 Total general government 4,632,378 3,225,928 1,406,450 Public safety Building Safety 501,700 379,880 121,820 Town Marshal 2,658,380 2,440,402 217,978 Fire Department 2,361,270 2,324,935 36,335 Total public safety 5,521,350 5,145,217 376,133 Culture and recreation Parks and Recreation 727,850 620,752 107,098 Desert Vista Park 49,800 42,143 7,657 Golden Eagle Park 310,190 278,334 31,856 Fountain Park 359,300 288,854 70,446 Four Peaks/Palisades Court 126,330 110,359 15,971 Civic Center 660,704 450,926 209,778 Total culture and recreation 2,234,174 1,791,368 442,806 Community development Community Development 409,510 272,798 136,712 Engineering Department 1,205,200 942,589 262,611 Total community development 1,614,710 1,215,387 399,323 Total Expenditures 14,002,612 11,377,900 2,624,712 Excess (deficiency) of revenues over expenditures (2,546,012) 601,251 3,147,263 Other financing sources (uses) Transfers in 1,137,300 1,256,178 118,878 Transfers out (1,075,000) (2,631,936) (1,556,936) Total other financing sources (uses) 62,300 (1,375,758) (1,438,058) Net change in fund balances (2,483,712) (774,507) 1,709,205 Fund balances, beginning of year 2,483,712 4,812,370 2,328,658 Fund balances, end of year $ - $ 4,037 863 $ 4,037.863 The notes to the financial statements are an integral part of this statement 34 %BW s TOWN OF FOUNTAIN HILLS, ARIZONA EXCISE TAX FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED DUNE 30, 2003 Original and Final Variance with Final Budget Actual Budget Revenues Investment earnings $ - $ 7,880 $ 7,880 Total Revenues 7,880 7,880 Expenditures Current General government 1,822,700 - 1,822,700 Total Expenditures 1,822,700 - 1,822,700 Excess (deficiency) of revenues over expenditures (1,822,700) 7,880 1,830,580 Other financing sources (uses) Transfers in 1,075,000 2,511,936 1,436,936 Transfers out (605,000) (607,412) (2,412) Total other financing sources (uses) 470,000 1,904,524 1,434,524 Net change in fund balances (1,352,700) 1,912,404 3,265,104 Fund balances, beginning of year 1,352,700 - (1,352,700) Fund balances, end of year $ - $ 1,912,404 $ 1,912,404 The notes to the financial statements are an integral part of this statement. 35 THIS PAGE BLANK 36 N-W J TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared in conformity with U.S. generally accepted accounting principles applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). A summary of the Town's more significant accounting policies follows. A. Reporting Entity The Town is a municipal government that is governed by a separately elected governing body. It is legally separate from and fiscally independent of other state and local governments. The accompanying financial statements present the Town and its component units, entities for which the Town is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. Included within the reporting entity: The Eagle Mountain Community Facilities District and the Cottonwoods Improvement District. As special purpose districts and separate political subdivisions under the Arizona Constitution, the Districts can levy taxes and issue bonds independently of the Town. Property owners in the designated areas are assessed for District taxes and thus for the costs of operating the Districts. The Town Council serves as the Board of Directors; however, the Town has no liability for the Districts' debt. For financial reporting purposes, transactions of the Districts are combined together and included as if they were part of the Town's operations. Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain Hills, Arizona Municipal Property Corporation's (MPC) board of directors consists of three members which are appointed by the Fountain Hills Town Council. The MPC, which is a nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the sole purpose of assisting the Town in obtaining financing for various projects of the Town. The Town has a "moral obligation" for the repayment of the MPC's bonds. For financial reporting purposes, transactions of the MPC are combined together and included as if they were part of the Town's operations. B. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. 37 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUKE 30, 2003 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for govermnental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement focus, basis of accounting, and financial statement presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting, except expenditures related to compensated absences and claims and judgments, which are recorded only when payment is due. However, since debt service resources are provided during the current year for payment of general long- term principal and interest due early in the following year, the expenditures and related liabilities have been recognized in the Debt Service Funds. Property taxes, intergovernmental grants and aid, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED DUNE 30, 2003 The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. The Excise Tax Fund accounts for the portion of Town sales tax reserved by the Town Council for special projects including Town beautification and economic development. The General Obligation Debt Service Fund accounts for the Town's property tax revenues received to pay the debt service of the Town's general obligation bonds. The Eagle Mountain Debt Service accounts for the property tax revenues received to pay the debt service of the Eagle Mountain Community Facilities District component unit. The Municipal Property Corporation Debt Service Fund accounts for the revenues received to pay the debt service on MPC revenue bonds. The Capital Projects Fund accounts for the capital improvements to various projects of the Town. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. When both restricted and unrestricted resources are available for use, for governmental activities it is the Town's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, cash and investments held by the State Treasurer, and highly liquid investments with maturities of three months or less from the date of acquisition. lei TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 2. Receivables Court fines are recorded net of uncollectible amounts in the government -wide statements but are not recorded as a receivable in the fund statements because they do not meet the revenue recognition criteria for the modified accrual basis of accounting. The total receivable at June 30, 2003 was $354,587, which was reduced by $70,917 for uncollectible amounts for a net receivable balance at June 30, 2003 of $283,670. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Delinquent property taxes receivables (General Obligation Debt Service Fund) $ 37,109 $ - Delinquent property taxes receivables (Eagle Mountain Debt Service Fund) 10,948 - Special assessments receivables (Nonmajor funds) 7.398 - 46 _I .I L TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 3. Capital Assets Capital asset activity for the year ended June 30, 2003 was as follows: Governmental Activities: Capital assets not being depreciated: Land Total capital assets, not being depreciated Beginning Ending Balance Increases Decreases Balances $ 23,571,668 $ - $ - $ 23,571,668 23,571,668 - - 23,571,668 Capital assets being depreciated: Building and improvements 10,080,070 Improvements other than buildings 8,491,441 Infrastructure 397,976 Furniture, machinery and equipment 1,518,647 Vehicles 1,825.873 10,080,070 31,857 (1,031,377) 7,491,921 _ _ 397,976 1,518,647 1,825,873 Total capital assets being 22,314,007 31,857 (1,031,377) 21,314,487 depreciated Less accumulated depreciation for: (360,067) (205,052 ) - (565,119) Building and improvements Improvements other than buildings (2,437,233) (374,596) 1,031,377 (1,780,452) (20,755) Infrastructure Furniture, machinery and equipment (12 795) (597,771) (7,960) (192,376) - 790,147 (1,086,742 ) Vehicles (721,567) (365,175) - Total accumulated depreciation (4,129,433) (L145,159) 1,031,377 (4,243,215) Total capital assets, being depreciated, net 18,184.574 (1,113,302) _ 17,071,272 Governmental activities capital assets, net $ 41,756,242 1 113 302 $ - $ 40,642,940 47 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 Community facilities districts (CFDs) are created only by petition to the Town Council by property owners within the District areas. As board of directors for the District, the Town Council has adopted a formal policy that CFD debt will be permitted only when the ratio of full cash value of the District property (prior to improvements being installed), when compared to proposed District debt, is a minimum of 3 to 1 prior to issuance of debt and 5 to 1 or higher after construction of improvements. These ratios are verified by an appraisal paid for by the District and administered by the Town. In addition, cumulative debt of all CFDs cannot exceed 5 percent of the Town's secondary assessed valuation. Changes in long-term obligations for the year ended June 30, 2003 are as follows: Due within July 1, 2002 Increases Decreases June 30, 2003 One Year Governmental Activities: General obligation bonds $ 13,410,000 $ - $ (825,000) $ 12,585,000 $ 845,000 Revenue bonds 11,855,000 - (425,000) 11,430,000 425,000 Special assessment debt with government commitment 22,592 - (3,227) 19,365 3,228 Community facilities district bonds payable 4,905,000 - (140,000) 4,765,000 150,000 Compensated absences 275,626 397,697 (498,686) 174,637 61,376 $, 30,468.218 $ 397,697 $ 1 891 913 $ 28,974,002 $ 1,484,604 Debt service requirements on long-term debt at June 30, 2003 are as follows: Governmental Activities Year Ending June 30 Principal Interest 2004 $ 1,423,228 $ 1,489,640 2005 1,508,228 1,419,829 2006 1,583,228 1,344,319 2007 1,673,227 1,265,927 2008 1,788,227 1,182,207 2009-13 8,638,227 4,596,441 2014-18 7,735,000 2,473,668 2019-23 4,450,000 461,006 $ 28,799.365 $ 14,233,037 50 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 r NOTE 4 - OTHER INFORMATION A. Risk Management The Town of Fountain Hills, Arizona, is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town is a participating member. The limit for basic coverage is for $2,000,000 per occurrence on a claims made basis. Excess coverage is for an additional $13,000,000 per occurrence on a follow form, claims made basis. No significant reduction in insurance coverage occurred during the year and no settlements exceeded insurance coverage during any of the past three fiscal years. The Arizona Municipal Risk Retention Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has the authority to assess its members additional premiums should reserves and annual premiums be insufficient to meet the pool's obligations. The Town is also insured by Arizona Municipal Workers Compensation Fund for potential worker related accidents. B. Contingent Liabilities Accumulated Sick Leave - Sick leave benefits provide for ordinary sick pay and are cumulative but do not vest with employees and, therefore, are not accrued. Unvested accumulated sick leave of Town employees at June 30, 2003, totaled $293,731. Lawsuits - The Town is a defendant in various lawsuits. In the opinion of the Town's attorney the outcome of these lawsuits is not presently determinable. C. Retirement Plans Defined Contribution Pension Plan All full-time employees of the Town, except participants in the Arizona Public Safety Personnel Retirement System, participate in a defined contribution pension plan administered by the ICMA Retirement Corporation as a 401(a) plan. The payroll for the Town employees covered by this plan the year ended June 30, 2003 was $2,922,909. The Town's total payroll was $3,950,930. low 51 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 A defined contribution pension plan provides benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are to be determined instead of specifying the amount of benefit the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investment of those contributions, and forfeitures of other participant's benefits that may be allocated to such participant's account. All non -peace officer full-time Town employees must participate in the pension plan from the date they are hired. Contributions made by an employee vest immediately and contributions made by the Town vest after three years of service. An employee that leaves the employment of the Town is entitled to his or her contributions and the vested portion of the Town's contributions, plus interest earned. Each employee must contribute 11 % of his or her gross earnings. The Town must contribute 11 % of covered earnings. During fiscal year 2002-03, the Town's required and actual contributions amounted to $321,520. The employees' contributions totaled $321,520. No pension provision changes occurred during the year that affected the required contributions to be made by the Town or its employees. The ICMA Retirement Corporation held no securities of the Town or other related parties during the fiscal year 2002-03 or as of the close of the fiscal year. Public Safety Personnel Retirement System (PSPRS) Plan Description - The Town contributes to the Public Safety Personnel Retirement System (PSPRS), an agent multiple -employer, public employee retirement system that acts as a common investment and administrative agent to provide retirement and death and disability benefits for public safety personnel who are regularly assigned hazardous duty in the employ of the State of Arizona or a political subdivision thereof. All benefit provisions and other requirements are established by State statute. The Public Safety Personnel Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for PSPRS. That report may be obtained by writing to Public Safety Personnel, 1020 E. Missouri Ave., Phoenix, AZ 85014 or by calling (602) 255-5575. Funding Policy - Covered employees are required to contribute 7.65 percent of their annual salary to the PSPRS. The Town is required to contribute the remaining amounts necessary to fund the PSPRS, as determined by the actuarial basis specified by statute. The current rate is 10.71 percent of annual covered payroll. 52 I" me rr TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2003 Annual Pension Cost - During the year ended June 30, 2002, the Town of Fountain Hill's annual pension cost of $61,102 for police was equal to the Town of Fountain Hill's required and actual contributions. The required contribution was determined as part of the June 30, 2001 actuarial valuation using an entry age actuarial funding method. Significant actuarial assumptions used in determining the entry age actuarial accrued liability include (a) a rate of return on the investment of present and future assets of 9.0% per year compounded annually, (b) projected salary increases of 6.5% per year compounded annually, and (c) additional projected salary increases of 0.0% to 3.0% per year attributable to seniority/merit. The actuarial value of the Town of Fountain Hill's assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period. The Town of Fountain Hill's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2002, was 20 years. The preceding methods comply with the financial reporting standards established by the Governmental Accounting Standards Board. THIS PAGE BLANK 54 Required Supplementary Information 55 TOWN OF FOUNTAIN HILLS, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Fountain Hills Police Over(Under) Entry Age funded AAL Valuation Actuarial Actuarial Over(Under) Annual as a Percentage Date Value of Accrued Percent funded Covered of Covered June 30, Assets Liability (AAL) Funded AAL Payroll payroll 1996 $ 17,463 $ 16,084 108.6 % $ 1,379 $ 77,574 1.8 % 1997 54,809 48,512 113.0 % 6,297 216,163 2.9 % 1998 184,135 125,791 148.7 % 58,344 394,005 14.8 % 1999 258,664 263,285 98.2 % (4,621) 412,182 (1.1)% 2000 375,860 401,167 93.7 % (25,307) 556,445 (4.5)% 2001 562,905 409,913 137.3 % 152,992 639,753 23.9 % 2002 591,957 557,666 106.1 % 34,291 549,166 6.2 % * Information prior to 1996 is not available. 56 or 1 Combining and Individual Fund Statements and Schedules 57 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2003 Capital Special Revenue Debt Service Projects Cottonwoods Nonmajor HURF Debt Special Development Governmental HURF Grants Total Service Assessment Total Fees Funds Assets Cash and equivalents $ 185,119 $ 204,296 $ 389,415 $ - $ 10,881 $ 10,881 $ 1,102,202 $ 1,502,498 Cash with paying agent - - - 107,911 - 107,911 107,911 Receivables, net Intergovernmental receivable 114,540 - 114,540 - - - 114,540 Special assessments receivable - 7,398 7,398 - 7,398 Due from other funds 223 223 - - - - 223 1,456 Prepaid items 1,456 1,456 Total assets $ 301,338 $ 204,296 $ 505,634 $ 107,911 $ 18,279 $ 126,190 $ 1,102,202 $ 1,734,026 Liabilities and Fund Balances Liabilities Accounts payable $ 94,872 $ 1,781 $ 96,653 $ $ $ $ 3,351 $ 100,004 Accrued wages and benefits 18,648 - 18,648 - - 18,648 Interest payable - - 17,911 508 18,419 - 18,419 Due to other funds 223 - 223 - 223 Deferred revenue - - - 7,398 7,398 - 7,398 Matured debt principal payable - 90,000 - 90,000 - 90,000 Total liabilities 113,520 1,781 115,301 108,134 7,906 116,040 3351 234,692 Fund balances Unreserved Total fund balances Total liabilities and fund balances $ 301,338 $ 204,296 $ 53� $ 19$_ 18,279 $ 126,190 $ 1,102,202 $ 1,734,026 60 TOWN OF FOUNTAIN HILLS, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Capital Special Revenue Debt Service Projects Cottonwoods Nonmajor HURF Debt Special Development Governmental HURF Grants Total Service Assessment Total Fees Funds Revenues Intergovernmental $ 1,426,688 $ 144,012 $ 1,570,700 $ - $ - $ - $ - $ 1,570,700 Charges for services 31,775 - 31,775 - - 603,525 635,300 Contributions and donations - 117,200 117,200 - - 4,302 117,200 4,302 Special assessments - - - - 298 - 4,302 179 - 179 1,133 1,610 Investment earnings 298 7,410 Other Total revenues 7,410 1,466,171 - 261,212 7,410 - 1,727,383 4,481 - 4,481 604,658 2,336,522 Expenditures Current - 30,407 30,407 General government - Public safety - 29,275 - 29,275 - - - - 29,275 Highways and streets 1,152,353 45,727 1,198,080 - - - - - 1,198,080 24,048 Culture and recreation - 24,048 24,048 - - - Debt Service Principal retirement - - - 90,000 3,228 93,228 - 93,228 Interest on long-term debt - - - 36,223 1,017 37,240 - 37,240 Capital outlay - Total expenditures 1,152,353 79,427 178,477 79,427 1,330,830 - 126,223 - 4,245 - - 130,468 30,407 79,427 1,491,705 Excess (deficiency) of revenues over expenditures 313,818 82,735 396,553 (126,223 236 (125,987 574,251 844,817 Other financing sources (uses) Transfers in - 120,000 120,000 126,000 - 126,000 - 246,000 Transfers out (126,000) 220 (126.22 - - (126,220 Total other financing sources (uses) (126,00 119,780 (6.220) 126,000 - 126,000 - 119,780 Net change in fund balances 187,818 202,515 390,333 (223) 236 13 574,251 964,597 Fund balances, beginning of year - 10,137 10,137 524,600 534,737 Fund balances, end of year $ 187,818 $ 202,515 $ 390,333 $ 223 $ 10,373 $ 10,150 $ 1,098,851 $ 1,499,334 61 TOWN OF FOUNTAIN HILLS, ARIZONA GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Revenues Taxes Property taxes Investment earnings Total Revenues Expenditures Current General government Debt Service Principal retirement Interest on long-term debt Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances, beginning of year Fund balances, end of year Original and Final Variance with Budget Actual Final Budget $ 1,250,000 $ 1,383,019 $ 133,019 2,650 (2,650) 1,252,650 1,387019 130,369 62 101,250 - 101,250 735,000 735,000 - 655.000 _ 648,347 6,653 1,491,250 1,3 83,347 107,903 (238.600) (328) 238,272 _ 125,713 _ 125,713 125,713 125,713 (238,600) 125,385 363,985 238,600 (61,152) (299,752) 64,233 $ 64.233 TOWN OF FOUNTAIN HILLS, ARIZONA GRANTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Revenues Intergovernmental Contributions and donations Total Revenues Expenditures Current General government Public safety Highways and streets Culture and recreation Capital outlay Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, beginning of year Fund balances, end of year Original and Final Budget Actual $ 940,900 $ 144,012 117,200 940,900 261, 112 67 750,000 - 111,900 29,275 75,000 45,727 124,000 24,048 - 79,427 1,060,900 178,477 (120,000) 82,735 120,000 120,000 (220) 120.000 _119,780 202,515 Variance with Final Budget $ (796,888) 117,200 (679,688) 750,000 82,625 29,273 99,952 (79,427) 882,423 202,735 (220) (220) 202,515 $15 $�20�,515 TOWN OF FOUNTAIN HILLS, ARIZONA HURF DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Expenditures Debt Service Principal retirement Interest on long-term debt Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances, beginning of year Fund balances, end of year Original and Final Variance with Budget Actual Final Budget $ 90,000 $ 90,000 $ - 36,000 36,223 (223) 126,000 126,223 (223) (126,000) (126,223) (223) 126,000 126,000 126,000 126,000 (223) (223) $® $i223) $._......L223) m ow .. STATISTICAL SECTION 71 ■ N :� r 00 � M r-+ O �I a\ O � a\ o O `r' > �- x w 0 U rA Hzz¢ 00 °wH o O � F-+ o to o 0 a w� W U N 00 n cn W Z N 69 M O N O m oN o 0 z M tr) 00 M - O V7 \o 00 �o 'IT O - I 06 O -. E0 0000 � m r 69 N M -+ N ON M N a1 M -. 00 c a1 N O O .-+ O Q 01 O r+ a\ N M o�i N to C) V V) C1 0o C1 � 69 MC) r- M 000 00 t M M W) 00 O r M t � N kn O � � N NC1� Q1 M Cl l— M a) M kn 0o 00 C1 C\ N O N a cq o� W o a y 0000 o 0N0 k rn M N �O a; z Ucd N M N r- M kn M 00 O 00 wOW�� 64 O a 0000 ' en r 00 C C t� o 0000 40o N r-:, 00 � �O O � 'T N 0000^ 69 W N d 00 -+ O O z c� 'zt `G I \lc O O V7 Zt W a w vi r- o; ON r- o W)� 00 'IT CJ p V] CN N It O N O M O r" N N M M vi Ln 69 " M N knM in C) ON M Ct '- 00 M th N CCi N O r- l� kn �t \D --� M 00 � \O C1 kn 00 a1 o0 M N M M M 69 id �) o a> '� � C r- ON 00 CN Q\ CN O O O N O M O N O O O %wip-M V1 W) 00 00 r ON 00 N N o0cq 0 r O\ r M .-. OI N V O 00 rri oNo 000 00 Wn r 69 M 00 �O N O oo r d 00 V Vl V1 `r1 01 O 00 Oi r- o0 r 6A 0 M00 M -'Zt� rn - M 00 N a z CN OW) � � 0N0 ON N U ~ 69 a� ed vNi N O NO z0 O g o O 0 v� o O rn vl o V t o N C N N o O U 6�s i a W A m bC en 00 N N O O O d oo 00 ON r r Vr 00 H ed O N N ,-� N M O 00 �U � 4 69 Z��jj (� W Clrn o t- t- M m 'IT oo fIq 4 � O 4° 00 w Ei U v� M N v r �o It v o 6s kn N rn r N � �O �O O QW]! � id u a i]y 00 M N N N W7 W r►� VJ y \O 0p 00 h (— \O D1 00 N 00 O M 01 '� 00 ' O r Ol� ON Ln M Ln O llO O\ O en ••. ,�.. ,�. N O1 O N 00 CD rq O\ N M N O M Vl N kn W 69 � G 00 Cl� N ono O 00 V 6j N `p O� N �p 00 00 V O1 C4 00 M Cd D N N N M n v'i O 9 O �6 N 9 rl i O Ln _ O v 0000 O N rri M v o 00 � 00 00 00 00 O N M 00 0 0o 00 00 O vi C1 n .--i dq N ri ri m v � r t` cd W 69 a] s, NI � C\ � Obi O1 a1 O O O O O O O O U W ^ TOWN OF FOUNTAIN HILLS, ARIZONA GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Sales Property Franchise Year Tax Tax Tax Total 1994 $ - $ 393,654 $ 94,780 $ 488,434 1995 16,622 357,033 94,848 468,503 1996 1,610,116 336,000 78,345 2,024,461 1997 2,664,923 350,024 86,840 3,101,787 1998 2,920,084 302,375 103,748 3,326,207 1999 3,394,152 348,778 118,407 3,861,337 2000 4,087,514 657,026 131,926 4,876,466 2001 4,923,174 1,038,891 125,982 6,088,047 2002 4,355,701 3,109,353 130,694 7,595,748 2003 5,051,872 1,910,072 152,542 7,114,486 76 "". TOWN OF FOUNTAIN HILLS, ARIZONA TOWN TRANSACTION PRIVILEGE (SALES) TAX COLLECTIONS BY INDUSTRY CLASSIFICATION FISCAL YEAR BASIS (UNAUDITED) 2003 Percent Excise Tax of Business Activity Category Collections Total Construction $ 1,203,706 24.8 % Transportation/ Jtilities/Communication 590,446 12.2 % Wholesale/Retail 1,930,175 39.8 % Restaurants/Bars 276,664 5.7 % Fire, Insurance and Real Estate 205,849 4.2 % Services 455,324 9.4 % All Other Services Not Specified 188,654 3.9 % $ 4,850,818 100.0 % 77 go N N a F y o 0 0 0 o o o a> X F O O O O O M .. o a> A N N oo a1 M y N �n a\ 00 � A O 69 v� a1 a1 O O O O O O Cl� kn z p= G U ;d C1 C1 O O O O O O C1 � y O E" o O W k d. 00 O --, �� m � N CNoN, cq a� O •0 " v� 110 W) � C, 00 00 00 C1 o Q. v� o M M M MCIS cz x�A C7 U �1 4 M O N 00 b V iC00 �L C N M iM cr rA N L" o�a � o � 0 d o 0 0 0 0 0 0 yC\ C1 O O M (71� to 00 O to O E-- O U Q —001 CN O O O C� C1 a,C\ O\ C1 N • KV � U U .-, -. 6 w cH O Cd C O C M O _ - 00 O V1 �p 00 O a)0 to C1 \o C\ �t C1 C1 \o 0000 � W Rj"" C �+ N is N CN O p. v� O� 0 0000 d cd b m C _ y a oM o 00 O 01 l N w 00 C p O E"' M re) M N 7C N cts F� > 0 O 69 C cl CO in \D l— 00 D1 O -+ N M cd r� t-a C1 CN C) CNeq O O O O N O z O z p TOWN OF FOUNTAIN HILLS, ARIZONA ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY (1) LAST TEN FISCAL YEARS (UNAUDITED) PRIMARY Ratio of Total Assessed Value Total Total Net to Total Tax Assessed Exempt Full Cash Estimated Assessed Estimated Year Value Amount Value Actual Value Value Actual Value 1994 $ 92,301,694 $ 4,918,347 $ 753,145,358 $ 903,774,430 $ 87,383,347 10.21 % 1995 99,271,154 5,082,517 826,917,659 992,301,191 94,288,637 10.00 % 1996 105,912,474 5,262,641 884,979,322 1,061,975,186 100,649,833 9.97 % 1997 118,888,547 6,602,978 1,002,546,459 1,203,055,751 112,285,569 9.88 % 1998 141,077,170 7,355,989 1,208,968,752 145,076,202 133,721,181 9.72 % 1999 170,258,614 9,255,978 1,467,193,748 1,760,632,498 161,002,636 9.67 % 2000 198,224,776 8,578,615 1,713,029,238 2,055,635,086 189,646,161 9.64 % 2001 232,442,986 12,213,849 1,997,525,319 2,397,030,383 220,229,137 9.70 % 2002 260,635,914 13,484,185 2,240,702,344 2,688,842,813 247,151,729 9.69 % 2003 299,743,562 16,942,705 2,565,522,177 3,078,626,612 282,800,857 9.74 % SECONDARY Ratio of Total Assessed Value Total Total Net to Total Tax Assessed Exempt Full Cash Estimated Assessed Estimated Year Value Amount Value Actual Value Value Actual Value 1994 $ 94,047,575 $ 5,250,741 $ 764,582,686 $ 917,499,223 $ 88,796,834 10.25 % 1995 105,660,296 5,498,728 866,122,390 1,039,346,868 100,161,568 10.17 % 1996 109,463,361 5,519,310 906,495,406 1,087,794,487 103,944,051 10.06 % 1997 123,097,961 6,764,555 1,034,892,731 1,241,871,277 116,333,406 9.91 % 1998 155,729,430 8,785,700 1,317,946,863 1,581,536,236 146,943,730 9.85 % 1999 185,540,741 10,575,923 1,583,072,952 1,899,687,542 174,964,818 9.77 % 2000 221,922,165 9,894,702 1,889,016,352 2,266,819,622 212,027,463 9.79 % 2001 253,269,562 14,555,025 2,154,928,885 2,585,914,662 238,714,537 9.79 % 2002 287,891,481 17,288,615 2,418,235,666 2,901,882,799 270,602,866 9.92 % 2003 344,047,844 20,662,614 2,842,849,050 3,411,418,860 323,385,230 10.09 % (1) Arizona uses two types of property values for taxing purposes. Primary values are used to calculate primary property taxes which are collected to fund the maintenance and operation of school districts, community college districts, counties, cites, and state government. Secondary values are used to pay off secondary property taxes which are collected for such things as debt service (bonds), budget overrides and special districts. Source: Arizona Department of Revenue. r 79 M TOWN OF FOUNTAIN HILLS, ARIZONA PRIMARY AND SECONDARY TAXABLE PROPERTY ASSESSED VALUATION LAST TEN FISCAL YEARS (UNAUDITED) Assessed Assessed Assessed Assessed Valuation Valuation Valuation Valuation Tax Town of Fountain Hills Maricopa State of Year Fountain Hills School District Count v Arizona 1994 P $ 87,383,347 $ 87,353,865 $ 13,296,003,025 $ 21,349,754,194 S 88,796,834 89,208,873 13,504,107,816 21,748,040,198 1995 P 94,188,637 88,978,760 13,302,326,609 21,688,438,645 S 100,161,568 90,394,390 13,521,174,915 22,179,317,949 1996 P 100,649,833 95,155,307 13,493,736,826 22,109,868,588 S 103,944,051 101,137,745 14,119,434,946 23,022,330,962 1997 P 112,285,569 101,573,954 13,975,668,204 22,811,158,500 S 116,333,406 104,881,097 14,343,156,861 23,333,678,475 1998 P 133,721,181 113,072,537 15,006,270,531 21,001,064,273 S 146,943,730 117,144,929 15,723,498,194 22,333,861,362 1999 P 190,102,361 134,650,036 17,463,875,533 21,670,300,013 S 212,415,476 147,884,952 18,676,830,848 22,533,348,150 2000 P 189,646,161 191,579,669 19,362,298,255 22,645,463,514 S 212,027,463 214,037,354 20,877,715,546 23,547,348,817 2001 P 220,229,137 192,200,924 19,603,718,629 30,144,285,019 S 238,714,537 214,726,796 21,138,917,389 32,071,738,214 2002 P 247,151,729 223,185,771 21,355,326,477 32,518,431,991 S 270,602,866 242,086,985 22,913,134,480 34,468,574,240 2003 P 282,800,857 288,969,887 25,447,850,971 34,868,596,227 S 323,385,230 331,458,411 27,477,987,528 36,825,660,973 P = Primary assessed valuation S = Secondary assessed valuation Source: Maricopa County and Arizona Tax Research Foundation. a/ M 00 Ln O O x E-� w O O O O O O O O O O O o o O o 0 0 0 U Q a 0 0 0 0 0 0 0 0 0 0 Ln �+ O O O O O O O O O O .4 o 0 0 0 0 0 0 0 0 0 V � OON i N N N N N N N p m O O O O O O O O O O M �O M \O M M N 'T (n N d' O [� N 00 to 00 Q\ m 41 -- Q1 --� VJ w A M o M 0 M 0 M 0 M 0 M 0 N 0 N 0 N 0 N 0 z� N N 0�0 O r- rn G O O O O O en rn 00 r— n vi W Q A N 01 O M M n O dwc� M w W U i--q N C1 WWW w U O O O� �--� AO r O� l� 01 M D\ �O 00 oo a\ l� O O N 00 Q\ M M a oo M � O O O O C> 0 F+ a/ ww � 'S01, M O O a a > 0 o 0 0 0 v A o c o 0 0 0 0 0 0 0 O U N H A o CC OD 00 00 rO � C� [D a O 't a1 N m � M rn r- M n N � N N 0 w I N N N N 00 o - 0 0 M 00 00 O 00 O N 00 [� r 00 D CC N M M ON rn [� 7 00 �n 0000 o U o c U O O O h OI ON CN � OCi ON O O O C TOWN OF FOUNTAIN HILLS, ARIZONA PRIMARY AND SECONDARY PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Rate Rate Rate Rate Rate Year Town School District Count v State Total 1994 P - 5.03 1.58 0.47 7.08 S 0.43 1.76 0.19 - 2.38 1995 P - 5.50 1.77 0.47 7.74 S 0.39 1.69 - - 2.08 1996 P - 4.96 1.69 0.47 7.12 S 0.32 2.67 0.15 - 3.14 1997 P - 4.98 1.64 - 6.62 S 0.30 2.17 0.16 - 2.63 1998 P - 4.89 1.68 - 6.57 S 0.23 2.32 0.13 - 2.68 1999 P - 3.89 1.19 - 5.08 S 0.17 1.96 0.11 - 2.24 2000 P - 3.91 1.16 - 5.07 S 0.26 2.38 0.12 - 2.76 2001 P - 4.09 1.18 - 5.27 S 0.56 2.25 0.09 - 2.90 2002 P 0.97 * 4.33 1.68 - 6.98 S 0.56 2.00 0.09 - 2.65 2003 P - 3.56 1.21 - 4.77 S 0.48 2.14 0.07 - 2.69 P = Primary assessed valuation S = Secondary assessed valuation Source: Maricopa County and Arizona Tax Research Foundation. * The primary tax rate represents the Fountain Hills Fire District and is included with the Town because the Town took over operations in November 2001. 82 M -4 M 11 11 TOWN OF FOUNTAIN HILLS, ARIZONA ASSESSED VALUATION OF MAJOR TAXPAYERS JUNE 30, 2003 (UNAUDITED) As % of Town's 2002/03 Total Secondary Assessed Assessed Taxpayer Land Description Valuation Valuation Firerock LLC Vacant Land $ 4,045,273 1.25 % Qwest Corporation TV Systems 3,385,045 1.05 % MCO Properties Vacant Land 3,079,071 0.95 % Chaparral Town Water Company Water Utility 2,931,751 0.91 % Fountain Hills Village LLC Nursing Home 1,947,937 0.60 % Target Corporation Shopping Center 1,481,678 0.46 % Cox Communications TV Systems 1,404,400 0.43 % Four Peaks Limited Partnership Condominiums 1,353,366 0.42 % Fountain Hills -Old Vine LP Shopping Center 928,888 0.29 % Sun Tech Development Condominiums 895,446 0.28 % Kimco Barclay Fountain Hills Shopping Center 859,491 0.27 % Safeway Inc. #1291 Shopping Center 857,444 0.27 % Inn at Eagle Mountain LLC Hotel 853,886 0.26 % Southwest Gas Gas & Electric 840,795 0.26 % $ 24,864,471 7.70 % Source: Treasurer of Maricopa County. HM TOWN OF FOUNTAIN HILLS, ARIZONA COMPUTATION OF LEGAL DEBT MARGIN DUNE 30, 2003 (UNAUDITED) Net secondary assessed valuation $ 323 385,230 Water, Sewer, Light, Parks, Open Space and Recreational Facilily Boards Debt limit - 20% of secondary net assessed valuation $ 64,677,046 Bonds outstanding 91825.000 Net 20% General Obligation Bonding Capacity 54,852,046 All Other General Obligation Bonds Debt limit - 6% of secondary net assessed valuation 19,403,114 Bonds outstanding subject to debt limit 2,760.000 Net 6% General Obligation Bonding Capacity 16.643.114 Total 20% and 6% Bonding Capacity $ 71 495,160 Source: Maricopa County Assessor's Office. to IN a TOWN OF FOUNTAIN HILLS, ARIZONA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA ' LAST TEN FISCAL YEARS (UNAUDITED) Net Ratio of Net Secondary Net Bonded Debt Net Bonded Fiscal Assessed Bonded to Assessed Debt Per Year Population Valuation Debt Value Capita 1993-94 12,005 $ 88,796,834 $ 4,292,389 4.83 % $ 358 1994-95 13,100 100,161,566 4,144,881 4.14 % 316 1995-96 14,146 103,944,051 4,277,315 4.12 % 302 1996-97 15,220 116,333,406 4,056,473 3.49 % 267 1997-98 16,275 146,943,730 3,883,018 2.64 % 239 1998-99 18,015 212,415,476 3,913,952 1.84 % 217 1999-00 18,595 212,027,463 8,677,053 4.09 % 467 2000-01 20,235 * 238,714,537 8,209,873 3.44 % 406 2001-02 20,235 270,602,866 13,410,000 4.96 % 663 2002-03 21,740 323,385,230 12,585,000 3.89 % 579 * Year 2000 U.S. Census TOWN OF FOUNTAIN HILLS, ARIZONA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS (UNAUDITED) =e Fiscal Year Principal Interest and Fiscal Charges Bond Issuance Cost Total Debt Service Total Expenditures (*) Ratio of Debt Service to Total Expenditures 1993-94 $ 125,000 $ 340,493 $ - $ 465,493 $ 4,113,127 11.32 % 1994-95 125,000 327,463 - 452,463 4,999,377 9.05 % 1995-96 209,193 208,477 - 417,670 7,667,025 5.45 % 1996-97 222,321 247,311 - 469,632 12,850,703 3.65 % 1997-98 245,210 554,731 - 799,941 10,631,005 7.52 % 1998-99 223,024 517,696 54,368 795,088 11,464,538 6.94 1999-00 339,013 585,001 - 924,014 15,404,414 6.00 % 2000-01 620,408 1,086,208 144,986 1,851,602 21,368,050 8.67 % 2001-02 1,229,215 1,372,965 300,936 2,903,116 32,630,186 8.90 % 2002-03 1,393,228 1,576,842 - 2,970,070 15,771,446 18.83 % M Includes all Governmental Fund Types. :e M'An TOWN OF FOUNTAIN HILLS, ARIZONA DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT DUNE 30, 2003 (UNAUDITED) Proportion Applicable to Town of Fountain Hills Net 2001-02 Outstanding Net Secondary General Assessed Obligation Approximate Net Debt Overlapping Jurisdiction Valuation (1) Bonded Debt Percent Amount $ 34,468,574,240 $ - 0.69 % $ - State of Arizona 22,913,134,480 58,205,000 0.98 % 570,409 Maricopa County Maricopa County Community College District 22,913,134,480 305,750,000 0.98 % 2,996,350 Fountain Hills Unified School District No. 98 242,086,985 35,305,000 85.94 % 30,341,117 East Valley Institute of Technology District No. 401 11,006,145,846 22,805,000 2.17 % 494,869 Fountain Hills Sanitary District 261,895,487 5,220,000 100.00 % 5,220,000 _ 100.00 % - Fountain Hills Fire District - _ 100.00 % - Fountain Hills Road District - Town of Fountain Hills 270,602,866 13,410,000 100.00 % j3,410,000 Total Direct and Overlapping General Obligation Bonded Debt $ 53,032,745 (1) 2001-02 is the most recent information available. Source: Maricopa County Treasurer's Office. MN TOWN OF FOUNTAIN HILLS, ARIZONA MARICOPA COUNTY ECONOMIC INDICATORS LAST TEN CALENDAR YEARS (UNAUDITED) Value of Building Permits (in Thousands) Housing Year Starts Residential Commercial Industrial Other 1993 24,147 $ 2,432,682 $ 547,667 $ 50,139 $ 499,052 1994 33,862 3,203,144 959,539 145,310 584,029 1995 37,091 3,199,942 1,043,978 413,835 782,609 1996 39,630 3,508,538 1,422,483 788,083 1,079,458 1997 43,013 3,943,544 1,840,334 233,598 1,133,069 1998 47,801 4,778,571 2,230,445 378,141 1,101,269 1999 47,106 5,142,869 1,878,629 210,676 1,092,337 2000 42,205 4,774,188 2,144,767 253,472 1,493,186 2001 43,732 5,088,241 2,256,850 345,985 1,641,521 2002 45,783 5,750,850 1,620,722 86,044 1,231,003 Source: Arizona Real Estate Center, College of Business, Arizona State University. TOWN OF FOUNTAIN HILLS; ARIZONA MISCELLANEOUS STATISTICAL DATA JUNE 30, 2003 (UNAUDITED) DATE OF INCORPORATION FORM OF GOVERNMENT NUMBER OF EMPLOYEES (no police and fire) Classified - Full time Classified - Part time Exempt AREA TOWN OF FOUNTAIN HILLS FACILITIES AND SERVICES Miles of Street Surfaced Unsurfaced Population (estimated) Housing Units Building Permits Issued Culture and Recreation Community Centers Parks Park acreage Tennis courts Senior center FACILITIES AND SERVICES NOT INCLUDED IN PRIMARY GOVERNMENT Fire Protection: Number of stations Number of fire personnel and officers Number of calls answered Number of inspections conducted Police Protection: Number of stations Number of police personnel and officers Number of patrol units Number of law violations Physical arrests Traffic/Parking violations Sewerage System: Miles of sanitary sewers Number of treatment plants Number of service connections Daily average treatment in gallons Maximum daily capacity of treatment plant in gallons Water System: Miles of water mains Number of service connections Number of hydrants Daily average consumption in gallons Maximum daily capacity of plant in gallons Education: Number of elementary schools Number of secondary schools Number of students - Primary Number of Students - Secondary Source: Town government offices and related districts. E:i11 December 5, 1989 Council - Manager 59 18 21 18.27 sq. miles 178.5 2 20,235 11,601 897 121 6 2 26 2,670 3,177 Contracted 1 29 9 601 3,186 Special District 200 1 10,916 1.7mgd 2.6mgd Private 178 11,448 1,217 4.4mgd 11,570,000 3 1 1,658 833 THIS PAGE BLANK I1 n I