No preview available
HomeMy WebLinkAbout2004.0318.TCRM.Packet3 �o `Esc 1969 tbat iS -0 NOTICE OF REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL Mayor Wally Nichols Vice Mayor Rick Melendez Councilwoman Kathleen Nicola Councilwoman Leesa Stevens Councilman John Kavanagh Councilman Mike Archambault Councilwoman Susan Ralphe WHEN: THURSDAY, MARCH 18, 2004 TIME: 6:30 P.M. REGULAR SESSION WHERE: TOWN HALL COUNCIL CHAMBERS, BUILDING B 16836 E. PALISADES BLVD., FOUNTAIN HILLS, AZ 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. • CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Nichols • INVOCATION - Reverend Mark Lansberry, The Fountains, A United Methodist Church ROLL CALL - Mayor Nichols E:\Clerk\AGENDAS\REGULAR\2004\Regular Session 3-18-04.doc Page I of 3 Last printed 3/12/2004 11:01 AM 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 placed on a future Council agenda. CONSENT AGENDA *1.) CONSIDERATION of approving the COUNCIL MEETING MINUTES of 3/2/04 and 3/4/04. *2.) CONSIDERATION of RESOLUTION 2004-12 canvassing the results of the March 9, 2004 Primary Election. *3.) CONSIDERATION of RESOLUTION 2004-13 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property line of Lot 59, Block 2, Plat 62D (15302 E. Thistle Drive) as recorded in Book 166 of Maps, page 34, Records of Maricopa County, Arizona, EA04-01 (Brady). *4.) CONSIDERATION of RESOLUTION 2004-14 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property line of Lot 22, Block 6, Plat 431 (15234 N. Bahia Drive) as recorded in Book 151of Maps, page 43, Records of Maricopa County, Arizona, EA04-02 (Musa). *5.) CONSIDERATION of RESOLUTION 2004-15 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the easterly property line of Lot 26, Block 3, Plat 602C (15934 E. Thistle Drive) as recorded in Book 166 of Maps, page 33, Records of Maricopa County, Arizona, EA04-03 (Gaeth). *6.) CONSIDERATION of RESOLUTION 2004-16 abandoning portions of the No Vehicular Access restriction on Shea Boulevard at Kern Plaza. *7.) CONSIDERATION of RESOLUTION 2004-21 abandoning the "FINAL PLAT of east Alamosa Place Condominiums" as recorded on book 176, Map 04, of the records of Maricopa County, Arizona. *8.) CONSIDERATION of approving the Emulsion Seal bid in the amount of $37,543.50 and awarding the contract to Engineering by Arrid Zone. *9.) CONSIDERATION of the FINAL PLAT for "The Village at Towne Center", which is a replat of Final Plat 208, a portion of Block 1, Block 8, and the previously abandoned portion of Verde River Drive, a 15.6 acre, 145 unit condominium subdivision proposed in a "C-2" Commercial Zoning District. Case #S2003-02. *10.) CONSIDERATION of approving a CUT AND FILL WAIVER to permit a 15-foot maximum 5 min cut for the development of a single-family residence located at 15605 Firerock Country Club Drive, aka Parcel "I", Lot 17. Case Number CFW2004-01. REGULAR AGENDA 11.) CONSIDERATION of ORDINANCE 04-06 approving the Civic Center Phase II funding 45 min source. 12.) CONSIDERATION of the Parks and Recreation Commission's and staff s recommendation 45 min regarding the location, type, funding and design of a potential SKATE PARK. 15min J 13.) DISCUSSION/PRESENTATION and acceptance of the TRAILHEAD DESIGN. E:\Clerk\AGENDAS\REGULAR\2004\Regular Session 3-18-04.doc Page 2 of 3 Last printed 3/12/2004 11:01 AM 14.) COUNCIL ASSESSMENT AND REVIEW of the meeting to identify procedural strengths 5 mtn and weaknesses and discuss possible improvements for future meetings. 15.) 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: 3 min A. Requested by Councilwoman Stevens — Placing the item of increasing the annual business license fees on a future agenda. 16.) SUMMARY OF COUNCIL REQUESTS by Town Manager. 8:30 p.m 17.) ADJOURNMENT. Im DATED this 12'h day of March, 2004 Bevelyn J. Bohder, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (voice) or 1- 800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's office. E:\Clerk\AGENDAS\REGULAR\2004\Regular Session 3-18-04.doc Page 3 of 3 Last printed 3/12/2004 11:01 AM `AW TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS DOWN COUNCIL MARCH 18, 2004 CALL TO ORDER AND PLEDGE OF ALLEGIANCE: Mayor Nichols called the meeting to order at approximately 6:30 p.m. and led the Pledge of Allegiance. INVOCATION: Following the Pledge of Allegiance, Reverend Mark Lansberry (The Fountains, A United Methodist Church) presented the invocation. ROLL CALL: Present for roll call were the following members of the Fountain Hills Town Council: Mayor Wally Nichols, Councilwoman Leesa Stevens, Vice Mayor Rick Melendez, Councilman John Kavanagh, Councilwoman Kathleen Nicola, Councilwoman Susan Ralphe, and Councilman Mike Archambault. Also present were Andrew McGuire, Town Attorney; Tim Pickering, Town Manager; Mark Mayer, Parks & Recreation Director; Bevelyn Bender, Town Clerk; Jim Strickland, Peacock and Hislop; and Molly Bosley, Planning and Zoning Administrator. CALL TO THE PUBLIC: As there were no residents present to speak during the "Call to the Public", Mayor Nichols proceeded to the Consent Agenda. CONSENT AGENDA: Mayor Nichols advised the Council that #10 of the Consent Agenda, considering approval of the CUT AND FILL WAIVER, had been REMOVED at the request of Councilwoman Ralphe and would be the first item discussed during the regular agenda. AGENDA ITEM #1 — CONSIDERATION OF APPROVING THE COUNCIL MEETING MINUTES OF MARCH 2, 2004 AND MARCH 4, 2004. AGENDA ITEM #2 — CONSIDERATION OF RESOLUTION 2004-12 CANVASSING THE RESULTS OF THE MARCH 9, 2004 PRIMARY ELECTION. AGENDA ITEM #3 — CONSIDERATION OF RESOLUTION 2004-13 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINE OF LOT 59, BLOCK 2, PLAT 62D (15302 E. THISTLE DRIVE) AS RECORDED IN BOOK 166 OF MAPS, PAGE 34, RECORDS OF MARICOPA COUNTY, ARIZONA, EA04-01 (BRADY). AGENDA ITEM #4 — CONSIDERATION OF RESOLUTION 2004-14 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINE OF LOT 22, BLOCK 6, PLAT 432 (15234 N. BAHIA DRIVE) AS RECORDED IN BOOK 151 OF MAPS, PAGE 43, RECORDS OF MARICOPA COUNTY, ARIZONA, EA04-02 (MUSA). AGENDA ITEM #5 — CONSIDERATION OF RESOLUTION 2004-15 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE EASTERLY PROPERTY LINE OF LOT 26, BLOCK 3, PLAT 602C (15934 E. THISTLE DRIVE) AS RECORDED IN BOOK 166 OF MAPS, PAGE 33, RECORDS OF MARICOPA COUNTY, ARIZONA, EA04-03 GA( ETH). AGENDA ITEM #6 — CONSIDERATION OF RESOLUTION 2004-16 ABANDONING PORTIONS OF THE NO VEHICULAR ACCESS RESTRICTION ON SHEA BOULEVARD AT KERN PLAZA. E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 1 of 15 AGENDA ITEM #7 — CONSIDERATION OF RESOLUTION 2004-21 ABANDONING THE "FINAL PLAT OF EAST ALAMOSA PLACE CONDOMINIUMS" AS RECORDED ON BOOK 176, MAP 04 OF THE RECORDS OF MARICOPA COUNTY, ARIZONA. AGENDA ITEM #8 — CONSIDERATION OF APPROVING THE EMULSION SEAL BID IN THE AMOUNT OF $37,543.50 AND AWARDING THE CONTRACT TO ENGINEERING BY ARRID ZONE. AGENDA ITEM #9 — CONSIDERATION OF A FINAL PLAT, FOR "THE VILLAGE AT TOWNE CENTER" WHICH IS A REPLAT OF FINAL PLAT 208, A PORTION OF BLOCK 1, BLOCK 8, AND THE PREVIOUSLY ABANDONED PORTION OF VERDE RIVER DRIVE, A 15.6-ACRE, 145-UNIT CONDOMINIUM SUBDIVISION PROPOSED IN A "C-2" COMMERCIAL ZONING DISTRICT. CASE #S2003-02. Councilman Archambault MOVED to approve the Consent Agenda as read (Items #1 through #9 with Item #10 removed). Councilwoman Stevens SECONDED the motion, and it was voted upon as follows: Councilwoman Stevens Aye Vice Mayor Melendez Aye Councilman Kavanagh Aye Councilwoman Nicola Aye Mayor Nichols Aye Councilwoman Ralphe Aye Councilman Archambault Aye The motion CARRIED UNANIMOUSLY (7 to 0). AGENDA ITEM #10 — CONSIDERATION OF APPROVING A CUT AND FILL WAIVER TO PERMIT A 15-FOOT MAXIMUM CUT FOR THE DEVELOPMENT OF A SINGLE-FAMILY RESIDENCE LOCATED AT 15605 FIREROCK COUNTRY CLUB DRIVE, AKA PARCEL "I", LOT 17. CASE NUMBER CFW2004-01. Planning and Zoning Administrator Molly Bosley presented the Council with background of this agenda item, indicating that the cut was necessitated due to the fact that the ridgeline ran directly through the lot. She continued that if the lot were required to be raised, it would cause an 18% excess in soil, which then would be in disagreement with the driveway policy. Also, Ms. $� Bosley explained that a situation in the rear of the lot would require a piercing of retaining walls that would create more horizontal disturbance. Staff recommended approval for the agenda item based on the facts that (1) there was no external evidence of the cut, and (2) it would help minimize driveway sloping and create less horizontal disturbance, therefore not requiring the piercing of the retaining walls in the rear of the lot. Ms. Bosley advised the Council that the type of cut -and -fill waiver in question was one that would be approved administratively in the future, as discussions on a basement ordinance were presently being held and reviewed by counsel. Ms. Bosley continued that she anticipated that ordinance to go before the Planning and Zoning Commission at their April 8 meeting and brought before Council at their May 6 meeting. Councilwoman Ralphe had asked that the agenda item be pulled from the Consent Agenda, but after Ms. Bosley's explanation, she noted no further questions. She did, however, comment that she was aware of changes in the ordinances that had not yet taken place and continued that the present ordinance stated that "no cut or fill in excess of 10 feet without Council approval". She was not comfortable with the 15-foot figure, as well as the fact that the area in non-compliance was in excess of 22% of the footprint of the building. Councilwoman Ralphe suggested that the Council uphold the current ordinance until it was formally changed. Councilman Kavanagh MOVED that Agenda Item #10 be approved, and Councilwoman Nicola SECONDED the motion. The vote was as follows: Councilwoman Ralphe Nay Councilwoman Stevens Aye Councilwoman Nicola Aye Councilman Kavanagh Aye Councilman Archambault Aye Vice Mayor Melendez Aye Mayor Nichols Aye EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 2 of 15 The motion CARRIED by a vote of 6 to 1. AGENDA ITEM #11 — CONSIDERATION OF ORDINANCE 04-06 APPROVING THE CIVIC CENTER PHASE II FUNDING SOURCE. Town Manager Pickering explained that through the suggestion of Councilwoman Ralphe, the Town had engaged the services of a financial advisor (Tom Hocking, T L Hocking & Associates) to advise the Town regarding potential funding for the Civic Center Phase II Project. (Mr. Hocking is the former Assistant Finance Director for the City of Phoenix and brought forth an extensive background in bonding.) Mr. Hocking addressed the Council and further advised that he had participated in the public sector for many years, participated in the investment banking community, and was currently consulting with local governments in Arizona. Mr. Hocking noted that his firm had conducted an analysis with respect to financing the Civic Center Phase II Project and would recommend the most efficient and flexible manner in which the project could be financed. He reviewed the fact that the yearly lease payments on Town offices were approximately $650,000, of which $100,000 was in taxes (not subject to payment when owning property), and that the Town continued to pay into an asset with no equity. The Civic Center Phase II Project would cost approximately $5.3 million and would be at a cost that would provide equity benefits to the Community. Mr. Hocking congratulated the Town on its new outlook from Moody's. In that regard, his firm had determined that the Town's fund balances needed to be maintained, and nothing should be done to jeopardize the Town's bond ratings. As the lease on the current property could be cancelled with 30 days' notice, Mr. Hocking suggested that the Town be proactive in order to respond in the event that should occur. He advised Council that his firm had reviewed all financing with the current debt structure in order to retain the existing bond ratings, i.e., Series 2000 bond with a balance of approximately $4.2 million and the Series 2001 bond with a balance of approximately $7.2 million. Both bonds were very manageable in terms of the Town's "debt to revenue" position. Historically, he noted, the amount of revenues generated by the Town from the excise taxes used to pay debt service on the bonds had been stable and had increased in enviable amounts. Projecting that sales tax into the foreseeable future, he had estimated sales taxes to blend financing into a manageable sales tax system in order to prevent an undue burden on current revenues. Mr. Hocking disseminated the information through a PowerPoint presentation (copy on file in the Clerk's office). Mr. Hocking noted that two different components had been used when analyzing the financing, (1) the pledged revenues, and (2) the source of payment to make those revenue payments. He added that when analyzing financing, those two numbers were not always the same (such as in the Town of Fountain Hills). The Town of Fountain Hills had pledged all of its excise taxes (sales, State - shared revenues, and all of its uncommitted general funds); however, the source of payment was less than the full excise tax. In reviewing the .03% sales tax earmarked for the mountain preserve, his firm reviewed the balances available in that particular dedicated revenue source to see if there was an opportunity to place financing into that dedicated revenue source. In focusing on that revenue source, three funding options were developed. ➢ Option #1: Approximately one-third of the project could be funded by cash, and two-thirds could be funded by debt. That portion of the debt would be financed through an excise tax pledge or municipal property corporation bond, and the debt service payment would be structured so that the Town could have those payments grow with the growth of the sales tax. One of the goals of this funding scenario was to keep that dedicated source of revenue of .03% to be able to increase $200,000 annually, maintaining balance to grow the fund even after the debt service was paid. Mr. Hocking displayed a PowerPoint presentation where he explained that the coverage (more revenue than debt service) maintained itself at 1.5 to 1.6 times coverage, at least two times coverage after subtracting debt service on the new bonds through 2011 or 2012. He noted that on that schedule, the cumulative balance within that fund actually would grow by more than $200,000 per year, over $300,000 in 2008 through 2010. If there were no other expenditures out of the fund, a cumulative fund balance would be nearly $15 million by the end of the term of the issue of 15 years. ➢ Option #2: Increase the amount of cash to be contributed, and decrease the amount of bonds to a 50/50 ratio. The debt service payments would then be level as opposed to growing with sales tax increases, and the balances would increase as the sales tax grew. A spreadsheet showed that coverage would be larger as the debt was smaller, so the amount of available revenue for debt service would be at a higher rate. The flip side of this option, however, would be that an increased amount of cash would need to be used. E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 3 of 15 ➢ Option #3: Finance the project completely with bonds and have no cash contribution. Since the debt service would be significantly higher, a shortfall was estimated in the second year in which there would not be sufficient revenues in the fund to make the debt service payments. On the other hand, no cash would be needed. Given the overall financial structure of the Town and the importance of fund balances, it was the recommendation of T L Hocking & Associates that the Town seriously consider Item #1 as the most viable option and the one that would provide the most flexibility. It would also balance the cash form of capital improvement financing, "pay as you go", with "pay as you use" or debt. The reason debt was overloaded was, as with any asset, people want to maximize the efficiency of the asset by paying for it as you use it. His firm focused on the dedication of the .03% sales tax as the dedicated source of revenue to prevent stress from any other revenue items within the General Fund, and those revenues were earmarked to pay the debt service on the project. He concluded that because fund balances were extremely important, Option #1 would provide the most preservation of fund balances, as a smaller amount of cash would be required. He continued that even though Option #3 called for no cash, the debt could not be supported with the .03% tax. Vice Mayor Melendez asked Attorney McGuire if there was any legal language that would not allow the Council to dedicate a portion of the .03% after the obligation had been met for the mountains. Mr. McGuire responded that the mountains were financed by pledging all of the Town's sales tax, and it was not an issuance with a specific .03%. The .03% was the Town Council's action to assure that there were additional sales tax revenues to pay for those bonds, but the actual issuance was on the entire sales tax amount for the Town. There was no commitment to keep the .03% intact other than the financial understanding that the right amount of coverage would be needed with each specific bond issuance and the overall bond coverage between the Town's excise tax collections and the total bond indebtedness. Mayor Nichols made reference to Page 9 of the presentation and asked Mr. Hocking if the revenue projection shown on the estimated sales tax was a conservative estimate, as no increase in sales tax revenues were shown in the Year 2008, but the sales tax revenue projection in 2008 through 2019 were the same each year. Mr. Hocking indicated that Mayor Nichols was accurate in that the most realistic way to look at revenue projections would be within a five-year horizon; beyond that point it would be purely speculation. For purposes of the analysis, he continued, he basically froze the revenues beyond the five-year time period from year five (5) through year fifteen (15). Mayor Nichols noted that the projections were very conservative and Mr. Hocking affirmed that they were. Mayor Nichols added that repayment of the debt service numbers increased yearly according to the terms of the bonds and Mr. Hocking confirmed that was correct. Councilwoman Ralphe stated that she had reviewed percentage rates from materials obtained prior to the mountain bond election and asked if it were possible to consider refinancing or early payment of various Town bonds, using the proceeds to help finance the Civic Center Phase II Project. In that regard, Councilwoman Ralphe had submitted a proposed alternate resolution based on that concept and asked for comments on that refinancing component. Mr. Hocking indicated that in the process of analyzing current debt and adding new debt, the possibility of refinancing existing bonds was researched. There was, however, a certain time period within any maturity in which the bonds cannot be called, and the Town could not call those "non -callable" bonds (usually 10 years). It was his opinion that the Town could not refinance those "non -callable" bonds since they were 10-years out. Therefore, the Town was stuck with those interest rates. He continued that when doing a refinancing, all debt service from that point until maturity, "advance refunding" would be done by issuing new bonds and putting the proceeds of those bonds into an escrow account to pay for the remaining debt service at the point that the bonds would be callable. The escrow would then sit in an account and be used to pay off the bonds when called, so a new bond issue would replace the old bonds. In that scenario, the funds in the escrow account must be invested at a rate that would be at least the rate on the old bonds, and the Town would not be able to earn as much as those bonds would require that we pay. That would be called "negative arbitrage", and more bonds would need to be issued to make up the difference. Borrowing is then higher than what would be held in savings, and in the Town's refunding, minimal savings would be realized by refinancing the bonds, not meeting the current Town policy. He said they would continue to monitor that as markets change and interest rates change. In conclusion, savings would not be adequate due to the long period remaining on the non -callable bonds, and the structure that Councilwoman Ralphe recommended would not work in any of the scenarios developed, as debt service would be done by either deferring the debt service or paying a level debt service. In today's market, refinancing in his opinion was a moot point. Mr. Hocking added that he had considered a combination "new money" and refinancing, thereby spreading the cost of the "new money" on the refinancing side which might generate savings, but based on current rates it was inadequate savings, only $116,000, which is only slightly more than 1% NPV. He continued that "negative arbitrage" kills most refundings in today's market for advance refunding for bonds recently issued, and it would work more effectively for bonds with a shorter non -call period. E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 4 of 15 Councilwoman Ralphe asked if paying off existing debt early would be an option, i.e., paying off the .03% bonds in 2010. Mr. Hocking indicated that as long as bonds could not be called, the money would merely go into an account that earned interest that would pay it off when it became due, and it wouldn't serve any purpose. Councilman Archambault asked if the principal that was paid off in 2010/2011 were placed in the reserves (leaving $5.4 million to pay $5 million in bonds off), if that would free up more revenue so that the Town would not be debt laden. He *AW suggested reducing the sales tax revenue by .01 %, then raising it .01 %, and using that as a dedicated source for the bonding capacity. Mr. Hocking responded that the Town has pledged the entire pot of excise taxes, which would give the bond owners the greatest amount of security, the highest bond rating, and the lowest interest rate. He added that if only a particular portion of the sales tax were pledged, the bond would then be less secure and would require higher interest rates. Reducing and increasing the tax would have the same net effect and not worth the effort and would not be recommended. He recommended only pledging the current excise tax base, but by policy either .01% or .03% could be earmarked to pay the debt service as a source of payment, but not pledged. Councilman Archambault noted some confusion regarding a dedicated funding source. Mr. Hocking responded that, in general, the most secure type of bond issued would be a general obligation bond, and the reason it was secure was that the pledge was an unlimited tax pledge on the entire secondary assessed value of the community. Property taxes could be raised sufficiently to pay general obligation bonds, but the pledge would be the entire tax base of the community. The pledge would provide the lowest interest rate and the highest bond rating. Revenue bonds could be issued where the entire excise tax base could be pledged, but because it would be much more subject to change due to economic fluctuations, it would have a higher interest rate. Reducing the pledge would cause higher risk and higher interest rates. He indicated that many communities earmarked specific revenues to make debt service payments, but when bonds were issued, there would be a much broader base. Many communities would not issue new bonds unless there was a new revenue source to accompany it. Pledging brought lower interest rates even though dedicated funds would be used to pay the bond. Councilman Archambault clarified that on the open market, Fountain Hills was pledging all of its revenue, but on the Town funding level, a dedicated revenue source was being pledged. He then asked if another .01 % of the current revenue could be dedicated for the bonds. Mr. Hocking responded that when the bonds were sold, the bond holders would be promised that if that dedicated source were not sufficient, other revenue sources were available for payment — and that's where the pledge would come in. Mayor Nichols asked for comments from the public: Lori Noss appeared before the Council stating that several Council members had run their campaigns deriding taxes, claiming an incompetent Council, and opposing any taxpayer funding for fire protection. She stated that the Council had helped "poison the well" and had assisted in "souring" the voters with their hype against opposing tax, yet searching for a way to pay for the Civic Center Phase II Project. She opposed the Council's viewing the mountain tax as a source of payment for the Civic Center Phase II Project and asked what the Council would do if the economy fell and payments could not be made. She asked if using funds earmarked for the mountains struck any Council member as dishonest and noted that taxpayers would lose their trust in the Council if that action were taken. She added that she felt that since the mountain bond was issued at a higher interest rate, common sense would indicate that using the surplus money to pay down the higher -rate loan sooner and eliminate the .03% tax early would gain voter confidence. Edwin Kehe appeared before the Council stating that the consultant wished to utilize certain excesses in the collection from the municipal facilities revenue bonds Series 2001 that was used for the acquisition of a 200-acre land mountain preserve. He suggested that the excess of the .03% sales tax be allowed to accumulate with interest and retire the bond on the call date. If that were done, he calculated that the current balance on the mountain debt was $7,200,000; payments on the principal for F/Y 2004/2005 through 2010/2011 would be $2,133,000, and the excess of the .03% tax over debt service through F/Y 2010/2011 would be $5,064,215, and if principal payments and excess were both utilized, it would exceed the balance, providing a surplus on paying off the bonds of $19,213.00, i.e., pay off the bonds in 2010 with current assets and currently collected assets, and that would not include any interest on the excess funds that they accrue. He then noted that the savings in interest if the bonds were paid in 2011 through 2021/22 would be $1,604,934. He asked that more time be invested in considering this issue. Councilman Kavanagh MOVED that Ordinance 04-06 be accepted using Option #1 as recommended by staff and the independent financial consultant suggested by Councilwoman Ralphe. Vice Mayor Melendez SECONDED the motion, and discussion ensued. Councilman Kavanagh urged the Council to understand that the $6 million in mountain funds approved by voters was not being considered, as they were general obligation bonds that could only be spent on mountain preservation costs. He clarified S�A r that what was being discussed were additional funds that would permit the expenditure of $13 million instead of the $6 million approved by the voters. He reiterated that the Council was committed to pay the mountains off and build the trailhead. He EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 5 of 15 reviewed that at the time the mountain bond was passed, the actual cost of the mountains was unknown, and there were many avenues assessed for their purchase, i.e., development fees, .03% sales tax, and general obligation bonds. Also placed aside was $1 million from the General Fund. Due to a series of events, the Town found itself in a situation where actually more money had been collected than was required, and that trend would continue to provide funds for the mountains and the Town Hall. Conservatively, the excess would protect all investments. Councilman Kavanagh continued that a greater breaking of faith with residents would be the collection of unneeded tax and placing it in a fund where nothing could be done with it for ten years, when other items were needed. He stated that his suggestion to accept Ordinance 04-06 using Option #1 was a compromise between those who didn't want to do any spending and those who wanted to save all the mountain money. If the 50150 mix were adopted, reserves would be lost. If the project were totally financed with bonds, the debt payments would become too great. Option #1 would totally protect the mountain funding and was the best path for the Town to take to protect its credit rating and care for the Town Hall and Senior Center. He added that Option #1 was fiscally prudent, and most conservationists had no problem with the option as long as the mountains were funded with a safety cushion. The financial consultant indicated, he added, that the .03% that was not committed by the voters but only by Council, it could be freed up for other needs. Councilman Archambault disagreed, indicating that the Council had discussed citizen input on their vision of the Town. He stressed the need for trust with citizens in order to complete future projects. If a dedicated property tax were passed, the income from the tax would also increase, and it would enable bonds to be paid off early. He felt that was the intent when the Council passed the original .03%. Regarding "draining the reserve", he continued, the Town currently had $552,400 in rebates and refunds this year, and currently $392,700 had been collected in development fees for a total of $945,000, not touching the 10% that Moody's wanted to see held in reserve. The Council would have to dedicate another revenue source to pay for the Town Hall. Councilman Archambault then noted that using a portion of the mountain tax was a conflict of interest and did not fit with what could be done. He felt that other revenue sources needed to be dedicated for the Civic Center Phase II Project and that additional cash must be used, whether it was a dedication of .01% or 1.02%. He continued that in 2010 the debt capacity would be preserved for future improvements, and the roads would be one of those future improvements. In 2009 the shortfall for the road would increase to $5 million, and he suggested that the Town might want a 30-year bond for the roads, which could be done with the funds as they were freed up. Also, the sales tax rate could be lowered which would help Town businesses. He reiterated "debt policy", was a "pay as you go" debt policy, "The council approved a program of ranking criteria that would give greatest way to those projects which would protect health and safety for citizens." Councilman Archambault indicated that a fire station would possibly need to be built, and he felt that "pay as you go" financing should be given the highest priority, as sufficient cash would be available for the project. Next year $1,071,000 would be dedicated from reserves dedicated for capital expenditures, and the $601,000 in revenue enhancements recently passed were available — for a total of $2.6 million. He suggested dedicating .01% of the sales tax to raise the other funds required. Councilwoman Ralphe suggested that the motion made for using dedicated tax revenue would waste money, adding that the existing .03% debt was at a high rate of interest being paid by the citizens, and that rate would increase to approximately .05% at the end of the term. She suggested consideration of retiring the bonds in 2010 and borrow at today's interest rates. Councilwoman Ralphe then indicated that, per the Town's computations, if the Town were to accumulate funds and pay off the .03% bonds in 2010, the Town would save more than $1.5 million of the taxpayers' money. She asked for more detailed information on other possibilities and asked the Town for a detailed analysis on paying the bonds early. Mr. Pickering indicated that it would take approximately one month to complete an additional analysis but pointed out that the financial analyst had already completed an analysis and offered his opinion, indicating that because the interest rate was frozen until 2010, it would not make sense to refinance those bonds. Mr. Pickering added that Option #1 would allow the Town to eliminate the bonds and pay them off in 2014. In a memorandum from Julie Ghetti, she stated that, "The schedule also includes a projection of the cumulative remaining fund balance which will continue to accrue to $4.2 million in FY 2014 at which time the 2001 bonds can be retired in full." Mr. Pickering agreed with Councilwoman Ralphe that paying off debt at a higher interest rate would be a good thing, but that could not be done legally until 2010/2011. Conservative estimates show that both the Civic Center Phase II Project and bonds could be paid off in 2014, and if the sales tax were to increase as in the past, it could be done in 2010/2011. Councilman Kavanagh commented that due to better interest rates, more funds were available, and those funds needed to be used for what was required now. He also explained that funds would not be required from sales tax to build a new firehouse (required from new MCO developments), as new development homeowners would fund that firehouse with development fees. He then strongly opposed using the sales tax money needed at this time for seniors and children to pay for a firehouse needed due to new development. EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 6 of 15 Councilman Kavanagh then noted that the suggestion was made to save the sales tax money to pay off the mountains early. He suggested that income from development fees could be used to pay off the bonds, and if the sales tax money were used to pay the bonds early, the development fee money would have to be refunded, as those fees could only be used for what they were assessed, i.e., mountain preservation. Councilman Kavanagh then referred to a suggestion made that the long-term payouts were higher, indicating that older mortgages were lower. Regarding the suggestion that the Council would be "robbing" money from the mountain fund, some people making the suggestion were the same individuals requesting use of the money to purchase State trust land, i.e., a dual standard. He asked attendees if they placed a pay raise or unexpected refunds in a fund to repay their mortgage in ten years or used it to take care of current needs. He concluded by saying that he supported the fiscally approved and prudent motion. Mayor Nichols commented that in viewing the amount of excess tax generated that was not being used today or in the next 15 years to pay debt service on the mountain bonds, the Town would save $600,000 per year at .03% in excess funds for the next 15 years, a conservative figure. When following the suggestion of the financial analyst, the $300,000 excess would still be created by the fund each year after paying for the debt service on the new Civic Center Phase II Project. The mountain preserve fund and the Civic Center Phase II Project could be funded with the additional $300,000 per year generated. As Mr. Pickering suggested, the mountain preserve bonds could be paid off early in 2013, so Mayor Nichols suggested that both assets of the Town be funded, as well as paying off the bonds early. He had requested that Mr. Pickering search the minutes of the time of the approval of the original bond to see if there was anything indicating that the Council approved that bond with the idea that it would be paid off early, and there was nothing in the minutes indicating that the bond was to be paid off early. Mayor Nichols also indicated that an expert had been hired to provide a recommendation, and he supported the recommendation by Councilman Kavanagh in order to take action and move forward with the Town of Fountain Hills. Councilwoman Ralphe indicated that a little discussed portion of the debt policy set the standard for consideration of refunding old bonds, a .03% savings or $750,000. She reiterated that the consultant had indicated that refinancing or calling the bonds could realize no immediate savings. She still felt that in 2010 there was one bond that could be refinanced, and no data had been analyzed recently as to the savings of retiring the debt on the Community Center. She stated that unless a full report was received on paying off the old bonds, no responsible decision could be made at that time. She noted the need to act on all information, not partial information. Councilwoman Ralphe MOVED to TABLE the discussion for two to four weeks until further information was receiving on calling existing debt and/or refinancing was obtained. The motioned DIED for lack of a SECOND. Councilwoman Nicola attempted to second Councilwoman Ralphe's motion but did so after it had died. Councilwoman Nicola advised that she supported the Civic Center Phase II Project and that all options needed to be reviewed for an informed decision. She noted the expert's suggestion that general obligation bonds were the best method to use for the project, the lowest rate, and providing the highest rating. She advised that, as it would be a secondary property tax, it could only be voted on at a May election. She stated that she did not support the current ordinance because she felt that excess tax dollars/tax surplus was an oxymoron due to the fact that a 1 % sales tax increase had to be implemented to cover the cost of fire service, which was the basis for much of the money. Should that 1% disappear, she added, so would that sales tax revenue. No historical data was available to provide information on the new advertising sales tax or rental tax, and the strategic plan was n the works so that the citizens might provide input on their goals for the Town, what amenities they would like to support. She noted that she could not support Councilman Kavanagh's current motion, as she felt that all options had not been considered. Councilwoman Stevens indicated her understanding that nothing could be done with any of the bonds until 2008 and asked if there was more information on refinancing early. Mr. Hocking responded that his scope of analysis was to determine possible financing alternatives for the project, but as a secondary component he had researched the possibility of refinancing the existing Series 2000 bond and Series 2001 bond. Based upon that analysis, refinancing those bonds did not make sense due to the long call period. Moving beyond that, he added, was not part of the scope of his study, so if there were other bonds outstanding, those bonds were not taken into consideration, as they had different sources of revenue and payment. He offered to continue his project by reviewing that type of information in the changing markets. However, he added, the way it was currently structured, and given current interest rates, it would not make economic sense to do so. Councilwoman Stevens confirmed that the Series 2000 bond was for the Community Center, and the Series 2001 bond was for the mountain bonds. She then asked what the library and museum and the view were funded with, and the response from Mr. Pickering was that they were general obligation bonds that were restricted, and that savings would merely reduce the property tax that was paid for those bonds to be paid off, therefore no savings from there would be in the General Fund. He then suggested looking at those bonds, as that would reduce the property tax to individuals, but as far as a savings or revenue source for the Town, nothing would be accomplished with those bonds. E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 7 of 15 Councilman Kavanagh indicated that paying off the general obligation bonds would only shift the property tax to the sales tax, further increasing the burden. If the general obligation bonds were refinanced, the last remaining amounts of money received from property tax would disappear, requiring a refinance with more sales tax revenue, which is exactly what Moody's indicated was the town's problem, over -reliance on sales tax revenue. Mr. Pickering responded that if the Town refinanced it would continue to be paid with property tax, but those bonds were strictly a property tax and could not be used if saved. If there were a savings in that regard, he added, that should be done for the taxpayer, but it would not be a revenue -producer for the town. Vice Mayor Melendez stated that there were three dividing issues in Fountain Hills: mountains, law enforcement, and fire service. Many comments had been given on the mountains, and he felt that it would be a disservice to wait any longer on the subject. He continued by reading the "Purpose of Item and Background Information" for the agenda item: "A professional financial consulting firm was hired at the suggestion of Councilwoman Ralphe to provide the Council additional statistics and expert testimony on options for financing the Civic Center Phase II Project". Vice Mayor Melendez supported the motion by Councilman Kavanagh at the recommendation of expert testimony. Councilman Archambault advised that the need for the Civic Center Phase II Project was agreed upon, but the Council could compromise on the bonding mechanism to pay for the project. He pointed out his opinion that the differences in opinion arose from the .03%, and that he and Councilwoman Ralphe had offered a compromise, as it would benefit the Town in many ways. He felt that waiting until 2014 and pay an additional $3 million for those mountain bonds was not advisable and that revenue could be freed up for capital projects. Councilwoman Stevens asked Councilman Archambault what he was proposing and how it was similar to Councilwoman Ralphe's proposal. She continued that she didn't understand how what was done in 2010 would help the Town of Fountain Hills during the short-term. Councilwoman Ralphe indicated that none of the Council members understood what they had hoped to understand, and that was why she moved to table the subject for further information. She added that the motion on the table would keep in place old, high-priced debt for the citizens and suggested that the bonds be refinanced. She wanted additional figures on restructuring debt and agreed with Councilwoman Stevens that they did not have sufficient information. Councilman Kavanagh indicated that a 15-page report had been received from a financial analyst, specifically requested by Councilwoman Ralphe, and that the analyst had given a presentation on the subject. The reason there was no information on refinancing was because the analyst stated that refinancing was definitely not advisable and would cost more money than not i%ftr refinancing. He reiterated that the refinancing issue should not be a misunderstanding and was very straightforward. Councilman Kavanagh reiterated that the financial analyst stated that his recommendation was the compromise between cash and financing. He also noted that the wording states that the mountain funding would receive first priority, and there was no threat to the mountain funding in the recommendation. Councilwoman Stevens replied that she understood the materials but did not understand Councilman Archambault's proposal. As the Council had been working on the project since September, it was her opinion that all options had been researched. Councilwoman Stevens then MOVED to AMEND the resolution to "limit the amount of the .3% that would be used as the dedicated revenue source for the Civic Center Phase II Project to a maximum of 1% and that the resolution to be passed would set the new split, in that any of the money already in the mountain fund stay in the mountain fund and that they be paid off early. The surplus there now would not go to toward the Civic Center Phase II Project. Additional money from this maximum of 1% would go to the Civic Center Phase II Project." Mayor Nichols SECONDED the amendment. Councilwoman Nicola asked for clarification regarding the percentage. Didn't Councilwoman Stevens mean to say .1% instead of 1%? Councilwoman Stevens confirmed the percentage was to be .1%. Mr. Pickering clarified that 33% of that fund was to be used as a dedicated revenue source with .1% maximum going towards this project. Councilwoman Stevens agreed with his clarification. Councilman Kavanagh asked what would occur if more funds were needed for financing. Mr. Pickering indicated that no funds would be needed, and that the .1 % covered the financing. If more funds were needed, they would need to be retrieved from the General Fund. Councilman Kavanagh asked if it was understood that the Council could not bind future councils and if the need was very high in the future, development fees could not be used, and it was not binding to future Councils. Vice Mayor Melendez noted his relief that Councilman Kavanagh allowed the Council to vote on the project as opposed to waiting for the incoming Council. Councilman Kavanagh responded that waiting might have been quicker. The AMENDMENT to the motion was APPROVED with 5 to 2 as follows: `•� Councilman Kavanagh Aye Councilwoman Ralphe Nay E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 8 of 15 Vice Mayor Melendez Aye Mayor Nichols Aye Councilwoman Nicola Aye Councilwoman Stevens Aye Councilman Archambault Nay Mayor Nichols then called a vote on the main motion as amended as follows: Councilwoman Stevens Aye Councilwoman Nicola Aye Vice Mayor Melendez Aye Councilwoman Ralphe Nay Mayor Nichols Aye Councilman Kavanagh Aye Councilman Archambault Nay The amended motion CARRIED on a vote of 5 to 2. Mayor Nichols thanked Mr. Hocking for his presence and participation in the meeting. AGENDA ITEM #12 — CONSIDERATION OF THE PARKS AND RECREATION COMMISSION'S AND STAFF'S RECOMMENDATION REGARDING THE LOCATION. TYPE. FUNDING. AND DESIGN OF A POTENTIAL SKATE PARK. Park and Recreation Director Mark Mayer provided the Council with an overview of the issue. Parks and Recreation Chair Dick Schmidt was also present to provide input. Previously, the Council had asked the Parks and Recreation Commission to determine what type of Skate Park they would recommend and where they recommended it be located. Mr. Mayer advised the Council that the Parks and Recreation Commission discussed the matter, and (1) voted 7 — 0 to recommend that the location of the skate park be at Desert Vista Park, (2) voted 7 — 0 to recommend that an excavated concrete skate park be installed, and (3) recommended that the skate park be constructed potentially utilizing donated funds raised by the Skate Park Committee and, hopefully, town matching funds. The Commission also suggested that the Council also consider placing the onus for fundraising on the Skate Park Committee who had previously committed their willingness to raise the necessary funds. They asked that the scenario be created so that if the Skate Park Committee was successful in raising the first $100,000, either in donated funds and/or labor through a written commitment, the Council would consider utilizing a portion of the previously set aside fees of $60,000 toward the actual further development of the detail design for a concrete skate park. For each additional $50,000 raised by the Skate Park Committee, the Commission recommended that the Town commit an additional $50,000 up to a maximum of $250,000. Mr. Mayer indicated that $60,000 had been set aside, and his concern was that in the event that the Skate Park Committee was not successful, how that $60,000 could be protected and still have the opportunity to build the skate park. Based on consultant's input, Mr. Mayer indicated that the fee to complete what they were asking for was the 25% completion of detail design which would provide an analysis of the recommended site of Desert Vista to determine whether or not that was a reasonable site based on soils and utilities, and it would provide schematics to show what a skate park might look like with different levels of funding, and it would also provide information on the amount of materials necessary as well as information on quantities. He added that both the schematics and quantities would be helpful for the perspective of the fundraising effort. Mr. Mayer continued that if the decision were made to pursue the skate park, the Commission would seek to receive requests for qualifications from concept firms; therefore, when the skate park was then negotiated, they would have a firm price on the cost of services — 30% completion of the project, as well as detailed design should the entire $100,000 be raised. Mr. Dick Schmidt, Chairman of the Parks & Recreation Commission, advised the Council that it was the intent of the Commission to bring the project to fruition. He stated that it was important to know what was included in the 30% drawing/bill of materials in order to offer the community the opportunity to donate toward the project. He hoped that professionals could design a skate park of eventually 18,000 square feet, possibly moving in segments of construction. Mayor Nichols indicated that three items would be discussed in the agenda item: location, structure, and funding. He then asked the speakers from the public to provide comments. Town Clerk Bender stated that Mary Williams did not wish to speak; however, she presented her position in favor of the decision of the Parks & Recreation Commission, supporting the Desert Vista location. EABBendeADocuments\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 9 of 15 Tom Jensen addressed the Council, indicating that the subject could be referred to the voters for their consideration due to the changes in form the matter has taken. Mr. Jensen distributed written material regarding this referral to the voters, as well as information on funding the park itself. Councilman Kavanagh clarified that only the location had been approved by the voters, not the details or price of the park. *%W Phyllis Kern, Chairman of the Skateboard Committee, addressed the Council and indicated that she was not satisfied with the proposed location (Desert Vista) and suggested that an expert provide an opinion. She recommended that the Town create a "full" skate park and that the project be done properly, allowing parents to participate in the area while the children play nearby. Ms. Kern continued that the Desert Vista location was a congested area and could be dangerous for children. It was her opinion that the people of the community wanted a skate park, and the fund raising could be accomplished easily. Andrew Lang addressed the Council, indicating his support of the Desert Vista Park location, as the Community needed to work in harmony with law enforcement, and the visibility would be greater in that respect. He felt that the location of a commercial area was a positive point, and there was an access road off Saguaro. He suggested that he wanted the park's growth possible, as opposed to being surrounded by the elementary school and Boys & Girls Club. Don Williams addressed the Council indicating his support of Desert Vista Park as the location of the proposed skate park. He noted that individuals in the Community simply wanted to know where the park would be located, and they would begin the fundraising. He also asked that the Skate Park Committee get the project under way. Safety, he added, would be an issue in the Four Peaks area as well as the Desert Vista area. Town Clerk Bender indicated that Joanna DeNinis did not wish to speak but was present to show her support for the Desert Vista location. Mayor Nichols asked that the first subject to be discussed on the agenda item be that of "location". Councilman Archambault asked exactly where the park was proposed at the Desert Vista Park. Mr. Mayer displayed the master plan map displayed and noted that the proposed water feature for that area was being considered at Fountain Park instead of Desert Vista Park. In that event, an area of Desert Vista would be available. He then pointed out the demographics of the area. Councilman Archambault asked what other amenities were available in that area, and Mr. Mayer described the various sports areas. 14W Councilwoman Stevens asked Mr. Mayer to discuss why Desert Vista was chosen as opposed to the other sites under consideration. Mr. Mayer displayed each park master plan. He indicated that there were only four choices of location: ➢ Golden Eagle Park had experienced "build -out", and the only open spaces were associated with either an athletic field or a picnic ramada. ➢ Four Peaks Park, originally chosen, was rejected due to neighbor concerns. He continued that if the in -line hockey rink were eliminated, there would be additional space if areas were reconfigured to relocate the skate park further away from residential areas, plus adding parking. Also included on this site are the Boys & Girls Club and the various park amenities already in use. ➢ Fountain Park was in the process of construction of a performance pad and an extension of sidewalk. The park is considered a "passive park", and Commission and staff received the most feedback against development/programming that would take place in this park. ➢ Desert Vista Park was chosen for the Skate Park. Councilwoman Stevens asked if there were any other town -owned sites or vacant land that might have lent itself to the facility. Mr. Mayer responded that they had considered vacant land, i.e., State land, but that option was not likely to occur in the near future. Other sites considered were small in size and not stand-alone facility sites. Councilwoman Nicola asked if off-street parking and restrooms would be part of the RFQ. Mr. Mayer responded that the Commission was currently recommending only a skate facility, but their recommendation was to allow the group to do fundraising up to a year. Also considered would be additional restroom facilities, which were also in the master plan for Desert Vista Park, which would accommodate all park users. He also responded that parking would be street -side, but parking stalls were also being considered. E:\BBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 10 of 15 Mayor Nichols asked if the basketball courts had been considered at the old middle school, which already were equipped with lights and security. Mr. Mayer indicated that a concern expressed by the Skate Park Committee was that if a temporary facility were placed on that site, it would likely preclude the development of an excavated site, as it was school property rather than Town -owned property and would complicate their ability to raise funds for something larger. Mayor Nichols then asked if that site were used with steel modulars would the skate park be operational soon, and Mr. Mayer responded in the affirmative. VAw Councilwoman Nicola asked if any study had been done to see if municipalities charge an access fee for usage of the skate parks. Mr. Mayer indicated that none were found that were publicly owned and charged a fee, most likely due to the open nature of the park. Vice Mayor Melendez asked the Parks & Recreation Commission if they had withheld data from the Skate Park Committee. Mr. Schmidt advised that all discussions had taken place at open public meetings, and there was nothing withheld. Councilman Archambault then MOVED that the Council accept the recommendation of the Parks & Recreation Commission and locate the proposed skate park in Desert Vista Park. Councilwoman Nicola SECONDED the motion, and further discussion ensued. Vice Mayor Melendez then asked Mr. Pickering if the site had been considered from a law enforcement standpoint. Mr. Pickering indicated that no complete analysis had been made, but that the Desert Vista site was the most open and easiest to see from the street. Councilman Kavanagh voiced his opinion that the skate park should be located where younger people could easily get there, and he felt that Desert Vista Park was not the appropriate place for the park. Mayor Nichols felt that moving the proposed site from one neighborhood to another was simply moving the problem from one site to another. He noted that there wasn't any good place in any of the current parks. His opinion was that the old middle school was his preferred location, and he would not support the motion. Councilman Kavanagh felt that the old middle school location was a good location, but it would eliminate two basketball courts and there was not enough room at that site. He felt that the most logical place was Four Peaks Park as that was where the kids were. It has plenty of room and the skate park had been planned for that site. Councilman Archambault asked if they could put up a temporary structure and begin the planning process for a larger skate park. He asked that the Parks & Recreation Commission be given recognition for their participation in locating a proper site and getting the project under way; however, he felt that they should create a temporary structure and develop a plan for the area. Vice Mayor Melendez asked what percentage of the population would be using the facility. Mr. Pickering noted that the response to the question could be formulated on the basis of: ➢ The number of children in Fountain Hills ➢ The number of skate shops in the area ➢ Sales in the skate shops ➢ How often you see skateboarders in town. Mr. Mayer advised the Council that the stereotypes of skateboarders were broken down when visiting other skate parks, i.e., individuals from 3 or 4 years to 30's and 40's were actively skateboarding. While there was a perception that skateboarding was strictly for younger children, there were a significant number of older individuals skating. Councilman Archambault added that from information received from Prescott Valley, of approximately 10% of 4200 individuals (420) of the age group up to 24 years in Fountain Hills, 10% of those 420 (42) would be at skate parks on a continuing basis. Councilwoman Nicola asked Councilman Kavanagh how he determined that a largest portion of the young people live in the northeast section of the Town. Councilman Kavanagh responded that there was a larger concentration of houses in that area, and there was a major school on that site which lent itself to students playing on -site after school. The motion to accept the recommendation of the Parks & Recreation Commission to place the proposed skate park at the Desert Vista Park was DEFEATED by a vote of 3 to 4 as follows: Vice Mayor Melendez Nay EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 11 of 15 Councilman Kavanagh Nay Councilwoman Nicola Aye Councilwoman Stevens Nay Councilman Archambault Aye Mayor Nichols Nay Councilwoman Ralphe Aye Councilman Kavanagh asked if the Parks & Recreation Commission had a second choice for the Skate Park. Mr. Schmidt responded that they had screened all locations many times, and only four facilities were available for consideration. He added that those four facilities had been presented to the Council, and only two locations were remotely possible for an 18,000 square foot in -ground type of Skate Park (Desert Vista and Four Peaks). He also advised that the Skate Park Committee was adamant about creating the project properly. He continued that there was no further land available in Fountain Hills, and they felt that they were not effective in initiating the project at Four Peaks. Councilman Kavanagh asked if it was not an issue of the correct size or location, and Mr. Schmidt announced that the Parks & Recreation Commission was anxious to get the project under way. He added that the Commission had requested funds for a consultant to assist them in finding the proper location, and the Council refused that request and asked the Commission to choose the location themselves; the Commission had voted unanimously for Desert Vista. Councilman Kavanagh asked if their objections to Four Peaks were more political as opposed to operational and demo rg anhic. Mr. Schmidt responded that it was a political issue, but it was also a space issue; Desert Vista Park gave the most flexibility that might not be available in any other location in Fountain Hills. He advised that they had been working on the project for years, and that he was disappointed that the Council had asked them for their recommendation but were unwilling to support that recommendation. Mayor Nichols asked if a part of the Commission decision was that they were not willing to take a modular unit, as only an in - ground facility was requested. Mr. Schmidt responded that based on the opinions of the people questioned as to their preferences, and it was unanimous that they preferred in -ground parks. Mr. Schmidt continued that they could have placed a modular unit, but they were concerned that they would face the same obstacles as they did a few years ago at Four Peaks, i.e., no one used the facility after a certain time period. He concluded that Desert Vista Park was a good location and provided the most flexibility in terms of space and distance from residences, noting that most skate parks are located a distance of least several hundred feet from residences. Councilwoman Nicola MOVED that the last vote be RECONSIDERED, as she had asked the Council months ago to support a joint work-study session to alleviate the embarrassing discussion. Attorney McGuire pointed out that a motion to reconsider was only available to someone who had voted with the majority, and Councilwoman's Nicola's motion was improper. Councilwoman Stevens acknowledged the recommendation of the Commission but indicated her uneasiness with young people traveling on Saguaro Blvd. Mr. Schmidt responded that the Commission had discussed that issue, indicating that at some point in time a series of bike/walking/running trails would be requested that would connect all the parks and major areas. The time has not come for that request yet due to the pressure to create a skate park. He added that most skate park users were driven by their parents, and the envisioned design would include an area for the parents to visit while their children were using the skate park, i.e., a family usage park. These family -oriented plans were one reason the Commission chose Desert Vista Park. Safety wise, the children are either being driven by their parents or traveling below the fountain to the skate park, not along Saguaro Blvd. Councilwoman Nicola noted that it was not the position of the Council to absolve parents of their rights to supervise their children and provide chauffeuring for their children. She continued that children arrive at Golden Eagle Park safely, and she felt that children could arrive at Desert Vista Park just as safely. Councilman Kavanagh responded that there were a tremendous number of children who were stuck in their homes because they could not get rides places and felt that the needs of those children must also be met. He then asked Mr. Mayer if there was more flexibility in the Four Peaks area for the skate park if the hockey rinks were removed. Mr. Mayer responded that the elimination of the in -line rink would open up acreage in that area, but it was closer to residential (directly across the street) than Desert Vista. The other issue in the Four Peaks location was the requirement for law enforcement to actually pull into the facility in order to monitor safety, and that was not an issue with the Desert Vista location. Councilman Kavanagh commented that he had felt that law enforcement stopping and walking through the park was good community policing. He also stated that people who moved close to a park should have expected there to be noise. He then MOVED that the location issue be referred back to Parks & Recreation to discuss more workable areas in the Four Peaks area. The MOTION DIED for a lack of a SECOND. CO Councilwoman Stevens felt that there was no win/win solution presented and MOVED that a neutral expert be hired to provide a recommendation of a location and type of facility. Councilman Kavanagh SECONDED the motion. EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 12 of 15 Councilwoman Nicola stated that she would not support the motion, as there was only $60,000 available, and if $9,000 were spent to obtain a recommendation after discarding the recommendation from the Commission, it would be fiscally improper. Councilwoman Stevens indicated that the $9,000 figure included design, and she was not recommending that advice be sought on design. Councilman Kavanagh supported the idea of a consultant, as he felt it was a technical issue and would cost money. He said he heard that Councilwoman Stevens would support a consultant's recommendation. He asked if there were two more 140" people who would support "go with the pro". If so, he would vote for this. Councilwoman Nicola called for a point or order, indicating that she considered Councilman Kavanagh's current attempt to poll this Council and the previous attempt to poll future Council by asking the candidates questions, a violation of the Open Meeting Law. She noted her consideration of his act "polling on a future agenda item" and she was uncomfortable with this action. Town Attorney McGuire stated the opinion that this was probably not a valid "point of order". Councilman Kavanagh continued by stating that he would not waste money by continuing to hire consultants. He felt that the voters of Fountain Hills had already approved Four Peaks in the Master Plan, and plenty of consultants and public input had been gathered. His expectation was for a consultant to create movement in order to begin the project. He also responded that "polling" was only when people were asked how they would vote on an issue. Vice Mayor Melendez brought up the issue of vacant land and asked Mr. Pickering what was available and the cost of same. Mr. Mayer responded that Engineering identified all properties, and most areas were wash areas, abandoned rights of way, easements, all of which were relatively small parcels - no viable areas of sufficient size to accommodate the park, restrooms, and drinking fountains. Mayor Nichols asked if the Commission agreed that it would be ideal if State trust land were used. Mr. Schmidt noted that it would be acceptable in other park locations such as the Golden Eagle Park. Mayor Nichols added that this option would not be available for awhile and suggested using a modular facility at the middle school on a temporary basis until a new general park were available. He felt it was tough to place the skate park anywhere. The question was called: "Approve a consultant to recommend location and type of facility up to a limit of $4,000." (Mr. Pickering advised that he estimated the cost of consulting of that type would cost between $3,000 to $4,000.) Councilman Kavanagh stated that the SECOND would concur with the change in the motion. The MOTION passed with a five of 5 to 2 as follows: Councilwoman Stevens Aye Councilwoman Nicola Aye Vice Mayor Melendez Aye Councilwoman Ralphe Nay Mayor Nichols Aye Councilman Kavanagh Aye Councilman Archambault Nay A break was called at 9:10 p.m., and session was reconvened at 9:20 p.m. AGENDA ITEM #13 — DISCUSSION/PRESENTATION AND ACCEPTANCE OF THE TRAILHEAD DESIGN. Chairman Roy Kinsey, McDowell Mountain Preservation Commission, was present to introduce Commission members and present their report to the Council. The 2004 Report and Forecast of that Commission had been distributed to Council members. Initially, he stated, the Commission had requested a work-study session, but Mr. Pickering suggested that it be made as a presentation to Council in order to inform other individuals attending that session. The report, he noted, would also be available for pickup at the Town Hall Reception Desk. (A copy is on file in the Clerk's office.) A video was shown for ease in identifying preserve areas. Chairman Kinsey introduced Jeff Ingleman, Landscape Architect and Vice President of J2 Engineering, the firm engaged to review the site and create a concept that would enhance and preserve the beauty of the McDowell Mountains. Mr. Inglemen noted that: ➢ The initial parking lot would accommodate 30 vehicles, as well as two school buses. ➢ The main entry would be from the south where a cul-de-sac built by MCO Properties would lead into the trailhead. ➢ The wash would be preserved as a pipe under the road for drainage, and it would exit into a rusted metal unit that would be covered with vegetation. ➢ Pavement surfaces would be a soil/cement mixture that would perk and accommodate emergency vehicles. ➢ The width of the road would be approximately 24 feet. ➢ A second parking area would be angled for approximately 10 to 15 cars, and a natural wash would be protected with natural drainage where it would then be piped to its natural location. EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 13 of 15 ➢ Any trees/cactus that were disturbed would be salvaged and planted on the site. ➢ A drop off zone would lead to the trailhead recently built, a A -mile hike. Picnic ramadas would be available. Further parking would be available behind a knoll, shaded and screened from the lower areas. ➢ The park will be gated. ➢ Restrooms and drinking fountains would be available. "Aw Mr. Ingleman acknowledged the Commission for its part in moving the project into creation. Councilman Kavanagh asked if soil cement was as durable as regular concrete. Mr. Ingleman responded that it was as durable Councilwoman Ralphe asked if the washes were Town -owned. Mr. Ingleman responded that the washes were in the mountain preserve, and the Town owned the mountain preserve. Councilwoman Ralphe then asked how the plan fit with the current ordinances, and Mr. Kinsey responded that the wash in question was a two -foot deep channel across the roadway, and not the type of wash to be bridged. The dip would be buried under the road from a maintenance point of view and to meet the needs of emergency access. Chairman Kinsey noted that a six -year plan was being implemented, with six phases. The Open Space Development Fees would carry the entire cost of the project, and construction would be scheduled relative to funds available annually and the schedule of MCO's development plans. The final estimate of cost would be $1.3 million over a period of six years. This estimate did not include soft costs, design fees, construction administration, and construction contingency, estimated at 30%. Councilwoman Stevens thanked Chairman Kinsey for his effort on the project through the past few years. Chairman Kinsey passed that comment on to the full Commission. Councilwoman Nicola also thanked Chairman Kinsey and the Commission. She asked how the timeline correlated with the need to use development fees within six years. Mr. Pickering noted that it would be fine, as funds were used each year, and obligations to spend would be paid down from six or seven years ago. Vice Mayor Melendez noted that he hoped that Mr. Kinsey would continue through the entire project. Mayor Nichols complimented Mr. Kinsey and the Commission for formulation of the report. Mr. Kinsey indicated that Michelle Carlson in Parks & Recreation had put the book together. `ter. AGENDA ITEM #14 — COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS FOR FUTURE MEETINGS. ,%W There were no comments. AGENDA ITEM #15 — COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER. ITEMS LISTED BELOW ARE RELATED ONLY THE PROPRIETY OF 0) PLACING SUCH ITEMS ON A FUTURE AGENDA FOR ACTION OR 00 DIRECTING STAFF TO CONDUCT FURTHER RESEARCH AND REPORT BACK TO THE COUNCIL: A. REQUESTED BY COUNCILWOMAN STEVENS — PLACING THE ITEM OF INCREASING THE ANNUAL BUSINESS LICENSE FEES ON A FUTURE AGENDA. Town Manager Pickering asked if the Council wanted to proceed with the subject. Mayor Nichols responded in the affirmative, and Vice Mayor Melendez agreed. AGENDA ITEM #16: SUMMARY COUNCIL REOUESTS BY TOWN MANAGER. Mr. Pickering reviewed he would begin the process of hiring a skate park consultant. Councilwoman Stevens asked that hiring an unbiased consultant be paramount in the process. Mr. Pickering stated he would also work on the issue as stated in Agenda #15. AGENDA ITEM #23 — ADJOURNMENT. Councilwoman Archambault MOVED adjournment at 9:50 p.m. Councilwoman Stevens SECONDED the motion, and it PASSED UNANIMOUSLY. EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 14 of 15 TOWN OF FOUNTAIN By: Wall Nlchols- ATTEST AND PREPARED BY: i 110 CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Fountain Hills Town Council on the 18`h day of March 2004. I further certify that the meeting was duly called and that a quorum was present. DATED this 15` day of April 2004. Bevelyn J. Be er, fown Clerk EABBender\Documents\Current Minutes 2004\Town Council Meeting 3-18-04.doc Page 15 of 15 Page 1 of 2 Bender, Bev From: John McNeill Dohnmcneill@cox.net] Sent: Monday, March 15, 2004 2:30 PM Nichols, Wally; Melendez, Rick; Nicola, Kathleen; Stevens, Leesa; Kavanagh, John; Archambault, Michael; Ralphe, Susan Cc: Pickering, Tim; Bender, Bev; jay@votejay.com Subject: RE: Town Hall Funding Honorable Mayor Nichols, Councilmembers and Councilman -elect Schlum: As I will be visiting my mother in Florida later this week, I will not be able to attend the council meeting and comment on the proposed funding for the town hall complex. Please accept these comments as part of the record of the proceedings. I would simply urge you to consider financing as much as reasonably possible of the town hall cost. Moody's has removed the last impediment to bond issuance, with the removal of the negative outlook — Congratulations! Moody's also made it clear that the amount of bonded debt outstanding has never been a credit issue. HOWEVER, and it truly IS a big however, Moody's also said that it would look unfavorably on spending cash balances down, and urged a return to the $6-7 million range FH had on hand before the lake liner, the dam at Golden Eagle, the defeat of the fire tax, etc. Moreover, as shown on the chart below, taken from the Yahoo Finance web site today 3-15-2004, rates today are even lower than they were a month ago. The town should, of course, spend all the cash available for town hall/senior center/police purposes from the development fees which MUST be spent or must be returned to the developer. After that, why not do as millions of homeowners across America have C and take advantage of the incredibly low interest rates available today. With insurance, FH bonds would carry the highest AAA ra.:..g — at today's rates, FH could borrow some 2 year money (0.93%), some 5 year (at 1.81 %), some 10 year (at 2.90%) and the remainder for 20 years at 3.90%. If town hall cost $5.3 million and development fees paid $500,000, there would be $4.8 million to finance. If $500,000 was in 2 year bonds, $1 million each of 5 year and 10 year bonds, and the remaining $2.3 million in 20 year bonds, the bonds could be retired at a fully amortized rate of $61,907 for the first 24 months, $40,871 for months 25-60, $23,426/month in years 6-10, and $13,816/mo in years 11-20 — with total cost of principal and interest of barely over $6 million ($6,020,604) over the entire 20 years. Such a plan would spread the cost over a couple of generations of users. You could finance the entire amount for 20 years, but the total interest cost would be higher. I hope you will also reconsider any ideas of using a portion of the preservation tax of 0.3%. At your last meeting staff reported that there was a $350,000/year surplus in the preservation tax. That appears to be only correct if the tax "surplus" is averaged for the 4 years it has been in effect. In fact, nearly all of the surplus was collected during the first 12 months or so of the tax, when it was being collected but no payments were due because the bonds had not yet been issued. If you will look at your 2003-2004 budget (page 126) you will see that $635,243 was collected in 2000, but nothing spent. In fiscal 2001, the bonds were outstanding only part of the year, so the "surplus was $284,644. For fiscal 2002-2003, the estimated surplus was only $178,500 with the 2003-2004 budget being $241,203. Based on these figures, it would appear that using $350,000 of preservation tax money for town hall would leave a shortfall in the current proceeds available to pay for the mountain bonds. Moreover, it would send the wrong message to our residents and taxpayers. Twice the voters have rejected a primary property tax to pay for fire protection — apparently largely because of distrust that the town would use the tax only for fire. What would the voters think about using preservation funds for a totally different purpose? More cynicism and distrust would ensue, I think. Ii town had a true emergency, I think people would understand using available funds to cover it. But the town hall is NOT an emergency. 3/ 15/2004 Page 2 of 2 Although Moody's may prefer to see a dedicated source of funds, it does not have to be a new tax, nor does it require parsing off part of the preservation tax. Since the town will no longer be paying $600,000/year for rent and other costs at the existing town hall, the savings from that alone will more than cover the cost of bonds. If you ask your bond expert, I think he would tell you that making a commitment to use a portion of the town's revenues sufficient to cover the bond retirement (with the understanding that there are savings from no longer renting that will cover it) will suffice. Lan Aa2 rating, no negative outlook and insurance that will get the town's bonds rated at AAA, there should be absolutely no ,am selling $4.8 million of bonds for this project. Respectfully submitted, John McNeill 14508 N Creosote Ct Fountain Hills 837-1306 Maturity Yield Yesterday Last Week 2yr AA 0.90 0.89 0.87 2yr AAA 0.93 0.93 0.93 2yr A 1.06 1.05 1.07 5yr AAA 1.81 1.78 1.81 5yr AA 1.76 1.74 1.78 5yr A 1.98 1.96 1.96 10yr AAA 2.90 2.89 2.93 10yr AA 2.82 2.80 2.87 10yr A 3.14 3.08 3.13 3.90 3.90 3.94 2AAA rr AA 3.85 3.85 3.86 20yr A 4.07 4.04 3.95 3/ 15/2004 Last Month 1.09 1.09 1.32 2.05 2.03 2.29 3.14 3.13 3.36 4.04 4.01 3.98 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Departments Admnistration Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Person: BBender Requesting Action:❑ Type 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 Minutes Council Prioritv (Check Anoronriate Areas): ❑ Education ❑ Public Fitness ❑ Public Safety ❑ Community Activities ❑ Public Works ❑ Human Service Needs ❑ Town Elections ❑ Community Development Report'©nlY❑ ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: CONSIDERATION of approving the council meeting minutes of 3/2/04 and 3#/04. Staff Recommendation: Approve Fiscal Impact: No $00 Purpose of Item and Background Information: To approve the council meeting minutes for archival purposes. List All Attachments as Follows: Draft meeting minutes from 3/2/04 and 3/9/04 Type(s) of Presentation: none Signatures of Submitting Staff: Department Hea ""00 ;7 Tog Manager .4 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: Admnistration Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Person: BBender 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: El ❑ Ordinance ❑ Special Event Permit ❑ Acceptance ❑ Plat ❑ Library Services ❑ Economic Development ❑ Parks & Recreation ❑ Finance Regular Agenda Wording: CONSIDERATION of RESOLUTION 2004-12 canvassing the results of the March 9, 2004 Primary Election. Staff Recommendation: Approve Fiscal Impact: No $0 Purpose of Item and Background Information:. Accepting the March 9, 2004, election official results. List All Attachments as Follows: Resolution 2004-12 Type(s) of Presentation: none Signatures of Submitting Staff: Z-A.� Department Head Tow Manager Budget Review (if item not budgeted or exceeds budget amount) 44W TOWN OF FOUNTAIN HILLS OFFICE OF INTER OFFICE MEMO TO: Honorable Mayor Nichols and Town Council DATE: March 16, 2004 FR: Bev Bender, Town Clerk RE: Resolution 2004-12 revised The Maricopa County Elections Department has provided the numbers that are to be contained in Section 2 of Resolution 2004-12; therefore, a revised resolution has been prepared and attached for councilmembers' review. Section 2 of Resolution 2004-12 identifies how many provisional ballots were cast, how many ballots were challenged, how many ballots were invalid, and the number of rejected ballots at the March 9, 2004 election. Resolution 2004-12 is on the Thursday, March 18, 2004, consent agenda for Council consideration. If you have any questions, please contact me at 480-816-5115. E:\Clerk\ELECTION\March 2004 Election\Memo to Council - Update on March 9, 2004 Election results .doc 3/16/2004 RESOLUTION NO.2004-12 `r.. A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AND ADOPTING THE RESULTS OF THE PRIMARY ELECTION HELD ON MARCH 9, 2004. WHEREAS, the Town of Fountain Hills (the "Town") did hold a primary election on March 9, 2004 (the "Primary Election") for the nomination/election of the Mayor and three Councilmembers; and WHEREAS, the Primary Election returns have been presented to and have been canvassed by the Mayor and Council of the Town of Fountain Hills. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCEL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the total number of ballots cast at the Primary Election, as shown by the poll lists was 2,902. SECTION 2. That the number of provisional ballots was 22, the number of challenged ballots was zero, the number of invalid ballots was 9, and the number of rejected ballots was zero. SECTION 3. That the votes cast for the candidates for Mayor were as follows: NAME FH #1 FH #2 FH #3 FH #4 FH #5 FH #6 FH#7 FH#8 TOTAL NICHOLS, Wallace J. 291 298 245 296 320 317 437 238 2,442 SECTION 4. That the votes cast for the candidates for Councilmember were as follows: NAME FH #1 FH #2 FH #3 FH #4 FH #5 FH #6 FH#7 FH#8 TOTAL GAZIANO, Phil 192 126 133 152 178 190 248 148 1,367 KEHE, Edwin 218 161 150 158 167 156 259 146 1,415 MCMAHAN, Keith 122 175 163 159 214 192 234 108 1,367 SCHLUM, Jay 265 253 210 222 254 278 354 191 2,027 TURNER, John 149 198 144 165 184 182 265 133 1,420 SECTION 5. That it is hereby found, determined and declared of record, that the following candidates for Mayor and Councilmember did receive the greatest number of votes of the electors of the Town at the Primary Election and are hereby issued certificates of election: MAYOR: Wallace J. Nichols COUNCILMEMBER: Jay Schlum SECTION 6. That is hereby found, determined and declared of record, that the following candidates for Councilmember did receive the next greatest number of votes of the electors of the 9196.001\. \2004-12 Canvass.res.v2.doc low 3-10-04-1 1 `%W Town at the Primary Election and shall have their names placed on the Town's general municipal election ballot, to be held on the May 18, 2004, and are hereby issued certificates of nomination: COUNCILMEMBER: Phil Gaziano COUNCMMEMBER: Edwin Kehe COUNCILMEMBER: Keith McMahan COUNCILMEMBER: John Turner SECTION 7. That this Resolution shall be in full force and effect immediately upon its adoption. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, March 18, 2004. FOR W. J. FOUNTAIN 9196.001V \2004-12 Canvassses.v2.doc 3-10-04-1 2 ATTESTED TO: APP VED AS TO FORM: ,�x 1 Rd�� Andrew J. McGuire, Town Attorney 000 0 U H N F U a H rn OA Unix H �a7H U 7 N 1-1 O O -4 N N N -4 fi OO m N H iH N .im OW M� «...: a 1-4 !` W �D rnc0 orn l- fl m .-1 Q N Ol (1) z N O H E U W a w O O 11 m O (V O\ O dP O N ON N O N 01 H U1 O m N N N O CO W l- O VT ul O OO O1 V V > +l N N r-1 a E O E a w H xma x •A,'Hx MHO O z z _ U G.w�d� 1 aEE.w gm0w xWa wPzt*. x 0 w I. z 000 > E-4 & 0 � a(D (1) cnW U Oz�D3 z F F w w H a~ v v H Vl0x O Sow >10 wCH7aE. EvU1Fi0] aaw> z3 E— ao CON [� O100 N H H H H .--1 H .•i H r-i w 1-4 lc;p(V CvOO m IDrnLr)ID�D r- N NN mN N 1, O OD rn fM 0) O HOW 00 OD 0)lD m oADO t- aD t- �D OD H H 1-4 (14 .-i (-m r- r OlDw w ID H 1D N N 0) H H -1 (V .-i -4 0 0 N Ln UI W E C7 a Q 5 a W w Q rz o rn a a Q w H a o 0000 0000000o u E Q H W z w a o 0 w cn a' M °a z H a w V1 t+) m C. O O N O N .--4 .-1 O O m W W E Q a >. m 0)1-1o00 w, a.1'-400m W z 0 rn0o'-1 Nr�c�)rHoa E. .1 u) a%DmHH o WA N N .--I .--1 N H a z w o 20 w Ooo a UHN W E Q U aHrn oo �c rN0000m1-4 OU 0x N mIO HOOD O)r.•i H HU V' l0 th C)fnNr Ln O) N N 1-4 N .-1 W r -4 1-4 1-1 O m N N N m m 1-4 O w E co �o m .-4 u) O) -I N w V' r) ven N ri r4-4 N ri H a Q E. 0 E. . . . . . . . . . . . a W as a � H a zaa o u a Qyx Cl) H a H . ri -4 z waQ w zQ'.... w ........ o Q 0 H E H E........ w zrwow x a x a Q o 0 W ...... G. E 1 H 0 z o a r o E. Q z a N ti a z a F U) y ] >Ea Ea •a, a) EH H -z a)a) o m0 OQ 4141 � 0=ZW>�= �) H x Q Q z 3 0 0 z a H x Q 0 0 0 0 o W u o >> 0 3 h h >> E W z W W E w O VIH L1 44 w O O w 2 H f4 N z a s En0W o wow>ro o wz� Ww>ro H q Haw WSOG wHw a O U zz C) EEC wao 0H o R 0 wuU�a ] w a Ln aPa> 0 >z3 Eoy >CDa4�cnE3 C.? D\ N In U) W E C� � a w w �¢ a o M a a Q w H a a U E � H ft' z w o 0 o w m r4 H ox z H a w U) 47 U1 .-i O N N W .-1 lD Ul O O N W W E a N .--1M M HOO N > rn MuioH Inc-4,0,m a �-7 OD 'as.... l� r-1 N M V- ul V' �O W z 0 11 E. >" 01 � ID M O O 1` O O O M O O m N H Ul N IT . M D) d• N WQ .-1 H r-4 H H a z w 0 zo W 00o a U H N W E 4 U - aHrn OU m ao OD L.M Cl rn omr,-4m co �D ,4 r, � x dr N M f� N 0) Ol -4 CN Ci .--1 H .--1 N N VI W 1.O EHr co DIOM l0 1•1 Ln MOOO r, 1D co rn ID N Nwr-LOm rn a Q . E. O a w w w w a a H x U1 Ui a Haa 0 U w a axx H o r x zH -4 a H ^ H � za a E a E. Ea+ O U) o w x w w a o w4 o 1 z o z o•••.. w o1E za 2: a o -4 1>E. En0 a wN oa ° °' F m� oizw>.x ° 41 a M C� O N Qazz wUrX z3 00 zaHxa0 00 z wmF O G4 >> O W 3 hh >> E W U E. z 4 a a E E+ m0a u. OVIH l.1 l4 w a 1 a1 a) CU OOW2 H l4 f4 w H H a w O yg 0w>ro W x E 0 q 0 -x w>ro W H w a a O C zQ O a a ] N fZaa> O > z 3 O >C7J4iUJE 3 a CK In E -� E �- 0 cV N Ln Vl W F C� a ¢ 0 a m w Q a o a a a w H ,-io00 0- 0 1,-10 0 0 UF Q H W z w 0 O G a H o w to a H o z x H a w -;r OOO V' M.1 m v 11 OOO W W E. a >+ W w000 r0r�r0000 W z 0 H >+ Ol oo r O a r+l o cn 14N000 UA W ro '�-1 rn o .�i .r-1 ,N-1 r a z w O > H zo w OOo a U H N W E-F Q U a H rn oo N Do rn In oo In o O o Nr �O r fn N0 W dp H H U r r N 1O DD o �O OD H 01 H 1-1 (V N 1--4 W tO0 ll1r oco rn Ocn0 v000 FLC) o v a enLnw,-4a o fn N H e-I r-1 N ri H a E+ O E. . . . . . . . . . . . a w w m a z H a zaa o a <yx 0 .x H 1 N H 0 4 z �a H lfl wa N F I ...... . E E. H x H a awe' z a A o 0 E 1 H 0.... z 0 ...... W .1 7 a1 F O O H F m0 E 4 .a] • N� oa 4ja H H a) OZZW>4= )' ) Aazz z3 00 zlLH.Y.40 00 C9 o WUCK O » 0 3 hh » z WmF W OMHlal4 44 E+ U W E a E- EF C* w a OOW Ht+l4 (1) z a w u)0w 0 1 a) a) 0w>10 w 0 w� C W O U A 'L U,7 'Z y U,'� a N U' aF ro w.j FUHa >Hz FNx SR.'aH »X2:En) a a u-1 O E - 0 E-E EO-Ea 0 N VI W F 0 a a w w .t x o rn a a a w H a If U waa HwozHww .--� .--� ffYO O N aW >+ rn 00OO1n �o(V In Ln OOm v m -4 NNN N z0Fi >" �o Ol to ON Orn .4 mO m I- aHaWawE aWo- r o c N m mr-1 0) mr-I amU N N r4 -1 zEEW20 00o UHN E. 4 U rn- HwacHWQOH� `rFQJJ coqZZa�i rnax' OaCWn a~T, io xzUH�W�aaww pa W'oo t, Ma0 r-vU1OlNUC1x dP H U M O - OD O ul 0) N a1 r .-4 14 N -4 wO U1O r- N O m NIn a0 �mo ]CNE.iN N In In toN l0 N V+1 N 14 N -1 E. aax '-.HHN O4 z w . . . . . . O E.C) a 0 w O zH i w F >FH 0 U)0 O4J4� o rl) v Q< z0 o za4H<0 00 o a0 o >> hh» E x A z 81 HzLI F4 OH>4 S4U E. a E E w w a1 a)(1) w w 0 Wz s0a o Ow>v O W > V w W x 0 C z z W E O oHwao o<wUuR W.R> z0 >0x£MEFFa Ln 1 H 0 N uI W 5 a w a D; o M a a a w H M O O D N H H H N O O N z w a � o w m a H a o z x H [� w M CN OO H N N M.-1-4 OOO W W E+ Q a !� C OH O D1 N r ID 1D m O O O CO W z 0 U q N 1f1N 001 N r C� �D NOO r M M DJ W N H H H H H W H a as U zo w OOry W E. a U - w H O N r M ui Ln \D co tD U00 ow � orn ODry-T-w H H Um r u l W (N O) H H N N H W W u7N Or) co r vv c}OOm OuiM N C r�DHLnOD H M H HNNH •-4 a E.. . . . . . . . . . . . O E+ . . . . . . . . . . . . Ix W m °q H a a W HaH o ,. W H a x x O U H u, Q a F a E- W V� w O OW x W �...� F x W q o 0 W w l 0 a W F H £ N H O W •� .a F N N O .-{ i 7E�U C� o Ea O.a] N LN E H H ✓am n z�0 ZwHJ4400 O 3 E.W O a U Ix - z 4, a q z U E a F F F w 4. 4 1 aa) aa) r. 4. w D I w w z a a to0Ix zo oW>v zO za' - a�zaww>v W zq rn W Q O 3 O H a H O q 3 O Q W U] a H O q a 2CN D;R1> O >z0 •ic�.Y.�LOEa 0 N U) W E C7 U a w Q x 0 a a Q w H a f•1 NOO 1-1 0ONM000 v U F Q H a z w o 0 w a H 0 w w rc. H a > ox z H a w V1 N N O O O N O N O N 0 0 0 > W W E Q I > O co OO N 1-0 LnN I- -WOOO ul -4 ram) m f ) v ff) N Q W z 0 H f` ff) -4 0 ei -T .--i ID O �o O O ID U A N N 1.1 1-4 .H N -4co W a z w 0 >+ H 20 W 00o a U H N W E. Q U aHrn o m afnatoc ocox a ID CDWNODN dp H H U O) q) O) lf) 01 f` O 1-1 a) 1-4 ' i H N .-1 it U) W coN r, -H 0a OID N co NOOO E -i r -4 u) rn 1n 0) r co .-i O rn m rn ,--4 .-i N .-4 H > a Q... .... ........ E+ O E. . . . . . . . . . . . . rx Oa W a 2 H a cn a x u C waQ H z u; a a E. a F w x x v awo a x. A o O w z o.... 2 o . . . . . . . . "I F H >. H 2 ] o a a N Q a E N N O >E En Ea •a)CD OQ 41" EH H -z •alW Ox2 w>+= a.)u x 0 m w 0 A Q 7y Ow 2 S 0 0 2 a H� Q 0 0 0 hhz» o a0w] x -z» w a Q E. 2 W U) E 0 ill H 1i 1i wow O O W z H N li z a a U)04 o >b oa wzWW>v H A H a W W S E O C W H W a E O C W Lr)W zz rn Qc 0 z 2 0 HH� O 2 0 W U U a H O Q w a CN Ix02> 0 >2a >07 4ZME-Ea E 0 C N U) W E+ C� � a m w Q rx o ri a a a w H a Ul to 0oo N V'N N1N00 N U E � H x z w o O CL a H O W U) CK H z a H a w Cl) Ul v O O 1-4 f+l O .--1 N -4 O O m w W E 4 a 0 m 0 N rrmmino00 W z 0 E Q r ODrON ID �omriHrri0m ko 0.4rn0m Ln M N .--4 a z w 0 E. zo 000 a UHN W E+ 4 U aHrn rn oorrVN 0 Qx N rN NO.--4(n V'N H HU rN m0)r 1nm C� £F, N M .-I rl .-1 N rl W W mrq r001n mO\V' V'ln(+1 Om E-EaN riH r ainmu)n o o ;N to V' N NN m N N a Q E- EO E. . . . . . . . . . . . . . . a W [U U) a � H a zaa o -- a 0 aHx Q U.-. . . . . . . . . x zH I z wEazQ F E........ Qo w F j to e H x H x a oc a o 0 W H . o . z o ...... w E I £a £a a o f a ulm Q F yy 0 0 >LI)0 OQ ua- Oxz W>+x 4�" x - U o r oa z3 00 °w zaH�c<0 00 hhz» o zUR w x -z» a o E-F W U EE z a W V] E. E. &+ w O U) H W fa r-4 O O W H f4 S4 z a s cn0x o .J y a) ow>v [� o k C4 v v w H q U Haw w=E 0 wHw a O C FH>0 o 04E z 3 EU (�+ x z O Ecg x w a oC N Ln W. W> 0 E >z E .... 0 r 0, N !1"1 W E, a a m a o m a a a w H U F Q o00 �o��0000 w a H 0 w m a H a > z a H w CL M 0CD N0CD W W F a a armo a in-4Vr o0ui Lr) .--4 m v N v In In w z 0 U tc CD Q N a1 (+1 O O .-/ N P7 .--1 ONO r r N .--1 O m v O �p a E. Ooo a UEN W 2U 0Hrn m a Muia arr U C/) dr+ LO� �"10mNNN N ON r N O O V, �O m N N .--I N �7 wlnr ml0OM ml0m + NO Etor f+) M vvO0)M O O14(14 N `1r r1 1'-4 r > r-1 a F. . . . . . . . . . . . . . . O E, . . . . . . . . . . . . W H a H cn rZi a ra -i . . . . r, u cla a H oQ m O H E H F W A 0 O ww a .. \ E H �>- H p . f4 WxN a E-F >+am.+aU.)>OE4a • N E H Hx��yO O< Oxzom Q4xw 23 sx W;?O >> F z W m p z WaWzW~ N W HU LL E+ E-G. 4N 6, 4. a Nr N z a cnox O OW>ro oawW>ro u zQ r 0aF Z Ew-�uraFO� 2 EW--n~HaO� a Z � zm E >2a 0 70aw4 ME4 w Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular: ❑ Meeting Date: 3/18/04 Contact Person: Tom Ward Requesting Action:® Tvne of Document Needing Aauroval (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 At)nronriate 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 2004-13 abandoning whatever right, title, or interest the Town has in certain public utility and drainage easements located at the northerly property line of Lot 59, Block 2, Plat 602D (15302 E. Thistle Drive) as recorded in Book 166 of Maps, Page 34, Records of Maricopa County, Arizona. EA04-01 (Brady) Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: The applicants submitted the application on February 3, 2004 List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Signatures of Submitting Staff: D partment Hea Towd'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: February 6, 2004 FR: Art Candelaria, Civil Engine; `li RE: Easement Abandonment 04-01 Randy Harrel, T wn Enginee15302 E. Thistle Drive Reviewed: T )Vard, DireQr of Public Works Plat 602D, Block 2, Lot 59 This item on the Town Council's agenda is a proposal to abandon the ten (10) foot public utility and drainage easement located at the northerly property line of Plat 602D, Block 2, Lot 59 (15302 E. Thistle Drive) as shown in Exhibit "A". The property owner of Lot 59 desires 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 owner of Lot 59 is required to pass the developed flows generated by the upstream lots across their property. • Staff recommends approval of Resolution 2004-13. Enc: Resolution Exhibit C: Jon Brady Tony Serna Ray Martin EAAbandonment Letters and Resolutions\EA04-01 - 602D-2-59.doc RESOLUTION 2004-13 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE CERTAIN TEN (10') FOOT PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE NORTHERLY LOT LINE OF LOT 59, BLOCK 2, OF PLAT 602D, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 166 OF MAPS, PAGE 34, 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 the certain ten (10) foot public utility and drainage easement, located along the northerly property lot line of Plat 602D, Block 2, Lot 59, Fountain Hills, as recorded in book 166 of maps, page 59 records of Maricopa County, and as 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 59 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] Resolution 2004-13, 602D-2-59 EA04-01.doc 1 PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, March 18, 2004. FOR .J. Nichols, Mayor FOUNTAIN HILLS: ATTESTED TO: Resolution 2004-13, 60213-2-59 EA04-01.doc 2 -,A -, M-4 APPROVED AS TO FORM: s Andrew J. McGuire, Town Attorney 9 6W 15 TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 602D BLOCK 2 LOT 59 RESOLUTION 2004-13 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE r•• TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE CERTAIN TEN (10') FOOT PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE NORTHERLY LOT LINE OF LOT 59, BLOCK 2, OF PLAT 602D, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 166 OF MAPS, PAGE 34, 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 the certain ten (10) foot public utility and drainage easement, located VOW along the northerly property lot line of Plat 602D, Block 2, Lot 59, Fountain Hills, as recorded in book 166 of maps, page 59 records of Maricopa County, and as 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 59 is required to pass the developed flows generated by the upstream lots across their property. SEC'TION2. 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] Resolution 2004-13, 60213-2-59 EA04-01.doc I TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 602D BLOCK 2 LOT 59 S 1 20' 40' CALE: 1' - 40' 'DATE: 2-17-04 T \1.C- 1 L LOT ' 6`' Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Person: Tom Ward Requesting Action:® TvDe of Document Needing Annroval (Check all that a ❑ Public Hearing ® Resolution ❑ Agreement ❑ Emergency Clause ❑ Special Consideration ❑ Intergovernmental Agreement ❑ Grant Submissiop_ ❑ 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 A>senda Wording: Consideration of RESOLUTION 2004-14 abandoning whatever right, title, or interest the Town has in a portion of the public utility and drainage easements located at the northerly property line of Lot 22, Block 6, Plat 431 (15234 N. Bahia Drive) as recorded in Book 151 of Maps, Page 43, Records of Maricopa County, Arizona. EA04-02 (Musa) Staff Recommendation: Approve Fiscal Impact: No Purpose of Item and Background Information: The applicants submitted the application on February 6, 2004. List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Signatures of Submitting Staff: J" /. - Department H E An To n Manager Budget Review (if item not budgeted or exceeds budget amount) %W TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Honorable Mayor and Town Council DT: February 6, 2004 FR: Art Candelaria, Civil Engine RE: Easement Abandonment 04-02 Randy Harrel, Town Engineer, 15234 N. Bahia Drive Reviewed: T ard, Director of ublic Works Plat 431, Block 6, Lot 22 "-t/ This item on the Town Council's agenda is a proposal to abandon a portion of the ten (10) foot public utility and drainage easement located at the northerly property line of Plat 431, Block 6, Lot 22 (15234 N. Bahia Drive) as shown in Exhibit "A". The property owner of Lot 22 desires 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 owner of Lot 22 is required to pass the developed flows generated by the upstream lots across their property. Staff recommends approval of Resolution 2004-14, subject to the following stipulation: • Grant a 10'x10' Public Utility Easement at the southeast corner of the lot to accommodate existing utility boxes. Enc: Resolution Exhibit C: Louis Musa w/copy of aerial photo John Conger EAAbandonment Letters and ResolutionsTA04-02 - 431-6-22.doc RESOLUTION 2004-14 A RESOLUTION OF THE MAYOR AND COMMON 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 EASEMENT ALONG THE NORTHERLY LOT LINE OF LOT 22, BLOCK 6, OF PLAT 431, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 151 OF MAPS, PAGE 43, 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 easement, located along the northerly property lot line of Plat 431, Block 6, Lot 22, Fountain Hills, as recorded in book 151 of maps, page 43 records of Maricopa County, and as 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 22 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] Resolution 2004-14, 431-6-22 EA04-02.doc 1 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Persona 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 Priority (Check Annrooriate 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 2004-15 abandoning whatever right, title, or interest the Town has in a portion of the public utility easement located at the easterly property line of Lot 26, Block 3, Plat 602C (15934 E. Thistle Drive) as recorded in Book 166 of Maps, Page 33, Records of Maricopa County, Arizona. EA04-03 (Gaeth) Staff Recommendation: Approve Fiscal Impact: No +$ Purpose of Item and Background Information: The applicants submitted the application on February 13, 2004. List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Signatures of Submitting Staff: D par�enea 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: February 17, 2004 FR: Art Candelaria, Civil Engine RE: Easement Abandonment 04-03 Randy Harrel, Town Engineer 15934 E. Thistle Drive Reviewed: To rd, Direct r blic Works Plat 602C, Block 3, Lot 26 This item on the Town Council's agenda is a proposal to abandon the ten (10) foot public utility easement located at the easterly property line of Plat 602C, Block 3, Lot 26 (15934 E. Thistle Drive) as shown in Exhibit "A". The property owner of Lot 26 desires 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 could be a potential future need for the Town to retain the drainage easement, so the drainage easement will be retained. Staff will, however, allow minor encroachment(s) into the drainage easement area as a part of a building permit. The property owner of Lot 26 is required to pass the developed flows generated by the upstream lots across their property. 0 Staff recommends approval of Resolution 2004-15. Enc: Resolution Exhibit C: Detlev & Rose Gaeth Rick Martin Egon Spreitzer E:Wbandonment Letters and Resolutions\EA04-03 - 602C-3-26.doc RESOLUTION 2004-15 A RESOLUTION OF THE MAYOR AND COMMON 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 EASEMENT ALONG THE EASTERLY LOT LINE OF LOT 26, BLOCK 3, OF PLAT 602C, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 166 OF MAPS, PAGE 33, 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 HII.LS, as follows: SECTION 1. That a portion of the certain ten (10) foot public utility easement, located `%w along the easterly property lot line of Plat 602C, Block 3, Lot 26, Fountain Hills, as recorded in book 166 of maps, page 33 records of Maricopa County, and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference, is hereby declared to be abandoned by the Town. 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] Resolution 2004-15, 602C-3-26 EA04-03.doc I PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, March 18, 2004. FOR THE TOWN OF TAIN HILLS: ATTESTED TO: W.J. Nichols ayor Bevelyn J. nde , Town Clerk REVIEW9� APP VED AS TO FORM: Tim G. ickering, Town Manager Andrew J. McGuire, Town Attorney Resolution 2004-15, 602C-3-26 EA04-03.doc 2 W S 20' 40' SCALE: 1' - 40' DATE: 2-24-04 TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT EXHIBIT "A" PLAT 602C BLOCK 3 LOT 26 C 0 L 0 N Y 27.49` _ 88 08' _ w - ABANDON 10' P.U.E �z RETAIN 10' D.E. D O ? BLOCK 3 LOT 26 W A S H __---_--_ THISTLE DF2_---- %W Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:[--] Meeting Date: 3/18/04 Contact Person: Tom Ward Requesting Action:® Tyne 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 Anoronriate 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 2004-16 abandoning portions of the Non - Vehicular Access Restriction located within Plat 412B, Block 6, Lots 5, 6 and 7 as recorded in Book 163 of Maps, Page 02, Records of Maricopa County, Arizona. Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: The Town Council has previously approved a General Plan Amendment (GPA 98-01) and a rezoning to C-1 (Z 02-12 and Z 03-5) for the above property. Those actions require that the originally platted "No Vehicular Access" restriction along Shea Blvd. be abandoned by the Town to accommodate the proposed new driveway locations onto Shea Blvd. Upon recordation, this abandonment of the platted "No Vehicular Access" restriction will legally allow those proposed driveway locations along Shea Blvd. List All Attachments as Follows: Staff memo, resolution, exhibit Type(s) of Presentation: None Siiznatures of Submittinji Staff: epartm�H', To anager Budget Review (if item not budgeted or exceeds budget amount) \\earth\BBrannon\Abandonment Letters and Resolutions\Kem Plaza NVA Abandonment on Shea Blvd.doc TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT INTER OFFICE MEMO TO: Honorable Mayor and Council DT: February 26, 2004 FR: Randy Harrel, Town Engineer RE: Kern Plaza — Abandonment of portions of THRU: Tom Ward the "No Vehicular Access" Restriction on Shea Blvd. Plat 412-B, Block 6, Lots 5, 6, and 7 (17251 ± E. Shea Blvd.) NVAE 04-01, Resolution 2004-16 The Town Council has previously approved a General Plan Amendment (GPA 98-01) and a rezoning to C-1 (Z 02-12 and Z 03-5) for the above property. Those actions require that the originally platted "No Vehicular Access" restriction along Shea Blvd. be abandoned by the Town to accommodate the proposed new driveway locations onto Shea Blvd. Upon recordation, this abandonment of the platted "No Vehicular Access" restriction will legally allow those proposed driveway locations along Shea Blvd. (Please recall that the above Town Council actions also required the proposed Kern Plaza developers to provide a 1'Vehicular Non -Access Easement (1' VNAE) on the Firebrick Drive frontage of these lots (except at the required emergency access gated location). That proposed F VNAE will be accomplished on a separate Grant of Easement Map, which will be recorded prior to any construction on these lots.) Town Staff is bringing this abandonment action forward at this time, at the request of the project developers — Phyliss Kern and Stuart Rider. Staff recommends approval of this abandonment (NVAE 04-01). It merely impie.nents for recordation the above past Town Council decisions. Cc: Tom Ward Denise Ruhling Art Candelaria Phyliss Kern (with advance copy via e-mail to phillykem@aol.com) Stuart Rider (with advance copy via e-mail to slrider@riderland.com) Salt River Pima Maricopa Indian Community Paul Falbo/Eagle Commercial Property Management MCO Properties Walter Derelys Trust Tana & Jay Boersma Equilon Enterprises RESOLUTION 2004-16 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN PORTIONS OF THE CERTAIN NON -VEHICULAR ACCESS RESTRICTION LOCATED WITHIN PLAT 412B, BLOCK 6, LOTS 5, 6 AND 7, FOUNTAIN HILLS, ARIZONA, AS RECORDED IN BOOK 163 OF MAPS, PAGE 02, RECORDS OF MARICOPA COUNTY, ARIZONA. WHEREAS, The Town Council of the Town of Fountain Hills, as the governing body of real property located in the Town of Fountain Hills, 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 of the Town of Fountain Hills has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and NOW THEREFORE, be it resolved by the Mayor and Common Council of the Town of Fountain Hills, Arizona as follows: SECTION 1. That portions of the certain Non -Vehicular Access Restriction, located within Plat 412B, Block 6, Lots 5, 6 and 7, Fountain Hills, Arizona; as shown in Exhibit "A"; as recorded in book 163 of maps, page 02 records of Maricopa County, Arizona is hereby declared to be abandoned by the Town of Fountain Hills. 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 therefrom or existing previous to any action by the Town. Resolution 2004-16; NVAE 2004-01; 412B-6-5,6&7.doc 3 'n PASSED AND FOR THE TOWN W s 18'h day of March, 2004. UNTAIN REVIEWED BY: �/7 Tim G. Pickering, own Manager Resolution 2004-16; NVAE 2004-01; 412B-6-5,6&7.doc ATTESTED TO: APPROVED AS TO FORM: 0,- �c Andrew J. McGuire, Town Attorney ATTACHMENT A TOWN OF FOUNTAIN HILLS NON -VEHICULAR ACCESS RESTRICTION ABANDONMENT MAP PLAT 412-B, BLOCK 6, LOTS 5, 6, AND 7 �y \ r,:•rtrt s u -, � �a; PARCH N 0N--NE41CUL.R ACCESS EASEMENT TO REMAIN rT`/o) N88'l0'00'E 102.7" R-OJ'OS'5� L-25.82' ' 5 h h 1°. \ � •p NON -VEHICULAR Al.VtJ*_Kr-a4 iii"iVTI 4 -ABANDONED y \ � p `v NON -VEHICULAR / \\ CCESS RESTRICTION \ ANDONED ROSSR S f \\ C ' IENCE W \ TNTBR c B00; _ 36. PAGE OI \ i 1 Z \� U` \ .� \w`b• \ + C 19J.2'' T RIVER PIklA :+IARICOPA INDIAN COt1,lIU\IT}' NON -VEHICULAR ACCESS RESTRICTION \ ABANDONED \ Ole NORTH SHEET 1 OF 1 SCALE: 1 "=200' DATE: 2-17-2004 �� �. Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Pub. Works Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Person: Molly Bosley, Planning/Zoning Administrator 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: Plat Abandonment 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 Regular Agenda Wording: CONSIDERATION of RESOLUTION 2004-21 abandoning the "FINAL PLAT of East Alamosa Place Condominiums" as recorded on book 176, Map 04, of the records of Maricopa County, Arizona Staff Recommendation: Approve Fiscal Impact: No $ Purpose of Item and Background Information: On January 27, 1997, Town Council approved the "Final Plat of the East Alamosa Place Condominiums", a 2-unit condominium, originally platted as "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3". This request will abandon the existing plat, reverting back to "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3". The abandonment of this condominimum plat has no implications on land use. List All Attachments as Follows: Staff Report; Plat Map; Application; Letter of Request Type(s) of Presentation: N/A Signatures of Submitting Staff: Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PLANNING & ZONING DIVISION TOWN COUNCIL MEMO TO: Honorable Mayor and Town Council DT: March 8, 2004 through Tim Pickering, Town Manager FR: Molly Bosley, Planning & Zonina RE: Resolution 2004-21; Request to abandon Administrator through Tom Ward, Dirthe Final Plat of East Alamosa Condominium; Public Works Case S2004-04 LOCATION: 16827 Alamosa Avenue. aka Final Plat of East Alamosa Condominium. REQUEST: Consider the approval of Resolution 2004-21; abandonment of the "Final Plat of East Alamosa Condominium", a two -lot replat of Final Plat 105, Block 3, Lot 3. DESCRIPTION: OWNER: Neal Seroka APPLICANT: Neal Seroka EXISTING ZONING: "R-2" EXISTING CONDITION: Developed LOT SIZE: 14,983 square feet SURROUNDING LAND USES AND ZONING: ,*" NORTH: 2-unit condominium; zoned "R-2" SOUTH: 2-unit condominium; zoned "R-2" EAST: 2-unit condominium; zoned "R-2" WEST: Balboa Wash SUMMARY: This is a request from Neal Seroka, to abandon the "Final Plat of East Alamosa Condominium", an existing 2-unit condominium. On January 27, 1997, Town Council approved the "Final Plat of East Alamosa Place Condominiums", which was originally "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3". Neal Seroka, the current property owner, wishes to abandon the current plat, and revert back to the original plat to allow for refinancing of the property. EVALUATION: The Town has received only two prior requests to abandon platted condominium properties (one in 1994 and one in 1998). The approval of this request will abandon the existing condominium plat and revert to "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3". Lot 3 meets the minimum required lot size and dimensions of the "R-2" Zoning District in which it is located. If this request is approved, the 2-unit condominium will revert back to use as a duplex residence. The abandonment of this condominium plat has no implications on land use; it merely represents a change in legal entitlements. Article 208 of the Subdivision Ordinance provides for the abandonment of all or part of a recorded subdivision, by Town Council approval. After Town Council approval of the Abandonment Resolution and after the abandonment resolutions are recorded with the Maricopa County Recorder's Office, the subdivision will be removed from the official maps. Staff finds that Lot 3 meets the minimum zoning regulations and site improvements are not necessary with this request. RECOMMENDATION: Staff recommends approval of Resolution 2004-21; the abandonment of the "Final Plat of East Alamosa Condominium". RESOLUTION NO.2004-21 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING THE "FINAL PLAT OF EAST ALAMOSA PLACE CONDOMINIUMS" AS RECORDED ON BOOK 176, MAP 04 OF THE RECORDS OF MARICOPA COUNTY, ARIZONA. WHEREAS, the Town of Fountain Hills (the "Town") adopted Ordinance #96-29 on September 19, 1996, adopting the Subdivision Ordinance for the Town of Fountain Hills (the "Subdivision Ordinance"); and WHEREAS, Section 208 of the Subdivision Ordinance establishes the authority and procedures for abandoning a recorded subdivision; and WHEREAS, a public hearing was held by the Mayor and Council of the Town of Fountain Hills (the "Town Council") on March 18, 2004, regarding the abandonment of the "Final Plat of East Alamosa Place Condominiums"; and WHEREAS, the Town Council desires that the "Final Plat of East Alamosa Place Condominiums" be abandoned and revert back to the "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3." NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That the "Final Plat of East Alamosa Place Condominiums" as recorded in Book 176, Map 04 of the Records of Maricopa County, Arizona, is hereby abandoned and reverted back to the "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3." SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, March 18, 2004. FOR THE TOWNrbF FOUNTAIN W. J. Ni REVIE: Timothy 6. Pickering, Town Manager 9196.001\..\2004-21 Abandon.doc 3-9-04-1 ATTESTED TO: MOP, _� ./ Town Clerk - APP OVED AS TO FORM: An ew !.'McGuire, Town Attorney Sb9l-d9 (ZO9) 1Vld lYNU �I INJAV nUnV IV L6M LCZ D SZ'SNtYlNOZ0l3H1 rll0 3nN3AV 99991 69296 <„ Z 11 wH0 mi°'m 1Ol T A0018 50L Jld 1N3W3JVNVW f 019833NION31l83WOWN 96 I- -ll M 30N30IS38 Hsno �Yp< Kb°ti - E j of V rerw431. w ;dYffibdb $ � � _�" ' '4 As a = .nQzg CIE awe e.2 m MR Nil U a � >`i�ba�� � � � Y i a s �- � �• x -e e�� � n� €�� �Y c - S gyy gg s_ m 8 q`q�� ��a � _^�R • u °'€_e: i(�/y,�7 §�h�� gy+g=is3��n a�aI 'Evecu vo aka a `1�' i € E tf 41 l 0�9 er EoB m�aK ��Em� 5 N!2 / 1` ` $ J J is§ $3s Mbc tlw! o \ P +'r.',}Y.` �P'/ 'Z•�,�i�> � \ Nei m ry 0 / �bd 'o . " \\� CP4'e�4. \ �� yQ�� iz r '3 I v �I a JJ pep V do W a V 1 �•s�' � �-� w O O �O 1+U Q O7 a-, iz J. .a " —° w u•° °" ;'OL-Gf9 (Z09) SNOUBS V NVId Noou 3nN3AV VSOWVIV LZB[ 99ZS9 VNOZIaV 'SnIH NIV1NnOj GXON SV Z d0 Z 101 i HOOl9 SO t 1Vld LOZ 3110S 'SNIVINnOi 3H1 !0 3f)N3AV tb991 68Z96 ' WNO '• IM30VNVW V ONId33NION3 AMODINOW 9 61- -ll N3 SWf11NIW00N00 30V1d VSOYVVId 1Sb ill z 0 II w 00 LM w ■ ,00 sl Q z U U z o_ w m V) Z ZD 00'S l II co ,00'Sl$ I mzl ~ z I I � A&N3 zl CDI Ii m zl wl of r �I z o I / A iN3 RESOLUTION NO.2004-21 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING THE "FINAL PLAT OF EAST ALAMOSA PLACE CONDOMINIUMS" AS RECORDED ON BOOK 176, MAP 04 OF THE RECORDS OF MARICOPA COUNTY, ARIZONA. WHEREAS, the Town of Fountain Hills (the "Town") adopted Ordinance #96-29 on September 19, 1996, adopting the Subdivision Ordinance for the Town of Fountain Hills (the "Subdivision Ordinance"); and WHEREAS, Section 208 of the Subdivision Ordinance establishes the authority and procedures for abandoning a recorded subdivision; and WHEREAS, a public hearing was held by the Mayor and Council of the Town of Fountain Hills (the "Town Council") on March 18, 2004, regarding the abandonment of the "Final Plat of East Alamosa Place Condominiums"; and WHEREAS, the Town Council desires that the "Final Plat of East Alamosa Place Condominiums" be abandoned and revert back to the "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3." NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That the "Final Plat of East Alamosa Place Condominiums" as recorded in Book 176, Map 04 of the Records of Maricopa County, Arizona, is hereby abandoned and reverted back to the "Fountain Hills Arizona Final Plat No. 105, Block 3, Lot 3." SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, March 18, 2004. / FORT OWN 4 FOUNTAIN HILLS: ATTESTED TO: W. J. RE 1s', Mayor Tirdothy G. Pickering, Town Manager 9196.001\..\2004-21 Abandon.doc 3-9-04-1 000 ,..I C •rw • APP OVED AS TO FORM: Axj"�,- An ew J. McGuire, Town Attorney • AN "]LLwe' x ]l Io OM ;aRL-M (ZO9) 99ZS9 dNOZINY STIH NIYSNnp! IMON SY �CZ 31MS 'SNIY1Nn0i 3H1 nC 31N3Av >t99t 69Z% - IN3YY39rNrw V JNId33NION3 Ad31100MOW 1113i. nod # 6 Y tl $ h e t fit 91. 1 Seh6;YY��2� 5�6 d� I� � Y � .3 _E g •q b b �� ��a�bib3� y� �S aY � f i �F •R 9 j{ r� [ �:ba�ye�"gbs _`e S3�Yy yd 'g ig ¢¢ S� sy3 i°��8 ei�� pia YC� � 3 ZLt St' y Ing a c tl 112A. Y Yz �a q¢ ar Y 3 4 yy 1.1 ` 9Yid its 3 $ s �'tlii $�� $CL .gin' fib» P. �32 Ln �«z y u�yi e W.7 ;Zo9) SNO035 V NVu eoou 3AN3Ad dSOYVVIV LZ99L 29Z;9 7NOZ16V 'SIIIH NIV1NnO3 :OZ 311n5 'SNIV1Nr*j 3H1 3O 3nN3AV .V991 1N3W30VNVW V ONIV33NION3 AMOSINOW MON SW Z 30 Z " 62Z% I - -« > .. - - 101 - HOO18 0 ldld swnlNIwo0NOO 30dld VSOVWV 1SV Ne S£Zl z I Aa1N3 i z zl m i CD m z U zl £eu UW �I ,00 s t � C) r— A81N3 U 11 U 11 U 11 I U 00st W oo W co W / II LiJ lco S£'Zl co ZD Sall t Ao'S t 00'S l PBA 1 /02 The Town of Fountain Hills PUBLIC WORKS DEPARTMENT Only Case Manager: Planning & Zoning Division APPLICATIOW Area Specific Plan or Change General Plan Amendment Plan of Development Zoning Change Variance NATURE OF THE REQUEST: r l±! �"r'-/ j/7 C-A" PROJECT NAME Preliminary Plat Fi#,3A4 L ix hTB 4�icxrv�,t Cut/Fill Waiver Special Use Permit SU Comprehensive Sign Plan HPE Change or Abandonment Ni Mrs. Applicant: �� - � �"' 1< Day Phone o �) '5-3 & c ? `t S/ J Ms. Address: /& � 2 e, F'�2fAf 1 c � I �}tl. /LNO 11: t� � Y City' State: Zip: Mrs. Owner: Day Phonez —� Mr. Ms. Address: City: State: Zip: If applicatrov is being submitted by someone olfier than die owner of die property under consideratron, the section below be completed, SIGNATURE OF OWNER I HEREBY AUTHORIZE Please Print Subscribed and sworn before me this day of DATE TO FILE THIS APPLICATION. - 20 Notary Public My Commission Expires FILING DATE: L FEE PAID: ACCEPTED BY: lilC (See Fee Schedule) Application Page 2 of 7 PBA 1 /02 The Town of Fountain Hills LEGAL DESCRIPTION ' SC„�C���y}b(jllLji) Plat Name Block Lot PROPERTY ADDRESS PARCEL SIZE (Acres) ASSESSOR PARCEL NUMBER NUMBER OF UNITS PROPOSED EXISTING ZONING: r ` Application Page 3 of 7 TRACTS PROPOSED ZONING TOWN OF FOUNTAIN HILLS MAR 0 1 2004 on t 3 /q-�� r �,� �%�rL��i.11 f�ju S /� Y � c,� � �� S� ,ram � �,�-.,J � �. �1� 5,�1� Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Public Works Consent:® Regular:❑ Meeting Date: 3/18/04 Contact Person: Tom Ward Requesting Action:® Tyne 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 Priority (Check Annrooriate 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 Emulsion Seal Bid in the amount of $37,543.50 and awarding the contract to Engineering by Arrid Zone.. Staff Recommendation: Approve Fiscal Impact:. Yes $37,543.50 Purpose of Item and Background Information: Plastic seal is a product that is typically applied to streets in the 7-10 year category. Plastic seal eliminates eroding of the fines and provides protection from ultraviolet rays. In comparison, those streets where plastic seal was not applied have aged faster than other streets where the application did not occur. List All Attachments as ;Follows: Staff memo, project maps, signed contract with Exhibit A - Scope of Work, Exhibit B - Special Terms and Conditions and Exhibit C - Bid Schedule. Tvpe(s) of Presentation: None Signatures of Submitting Staff: Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT `�•- MEMO TO: Honorable Mayor and Council zf DT: March 8, 2004 FR: Tho s�VVard, Director of Public Works RE: Emulsion Seal Annual Contract Bid No. PW 2004-02 Bids were opened on March 8, 2004 for the Emulsion Seal Annual Contract (PW 2004-02). The lower of the four bids, Engineering by Arrid Zone, was $37,543.50. Engineering by Arrid Zone $37,543.50 International Surfacing Systems $38,819.25 Cholla Pavement Maintenance $42,464.25 Cactus Transport, Inc. $43,375.55 Reference checks were conducted with the Cities of Mesa, Tempe and Carefree. All agencies were satisfied with their performance and quality of work. A map showing the upcoming pavement maintenance is attached for your reference. Staff recommends awarding of the Emulsion Seal Contract to Engineering by Arrid Zone in the amount of $37,543.50. att. cc: Dan Schmerfeld Tony Marchese TOWN OF FOUNTAIN HILLS ANNUAL EMULSION SEAL CONTRACT PROJECT NO. PW 2004-02 THIS ANNUAL EMULSION SEAL CONTRACT (this "Contract") is made as of March 8, 2004, between the Town of Fountain Hills, an Arizona municipal corporation (the "Town") and Engineering by Arrid Zone (the "Contractor"). RECITALS A. The Town issued an Invitation for Bid, No. #PW 2004-02 on February 18, 2004 (the "Invitation"), for annual emulsion seal services (the "Services"). B. Contractor responded to the Invitation and submitted a bid for the Services. Contractor's bid was the lowest, qualified bid received by the Town. C. The Town desires to enter into this Contract with the Contractor for the Services. D. The Town's Contract Administrator for this Contract shall be the Town's Public Works Director or his authorized designee. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the adequacy and sufficiency of which is hereby acknowledged, parties hereto agree as follows: 1. Term of Contract. The term of this Contract shall be for the period of one year, commencing upon the execution of this Contract. This Contract will automatically renew for successive one-year terms on the anniversary of the execution hereof for four consecutive years unless written notification is made by either party not less than thirty days prior to the annual renewal date. Work shall not commence until authorization to proceed is received from the Town. 2. Scope of Work. Contractor shall provide the Services as set forth in the Scope of Work, attached hereto as Exhibit A and incorporated herein by this reference, in accordance with (i) the terms and conditions set forth in this Contract, (ii) the applicable sections of the Maricopa Association of Governments ("MAG") Uniform Standard Specifications for Public Works Construction (the "MAG Specifications") (iii) the terms and conditions set forth in the Special Terms and Conditions, attached hereto as Exhibit B and incorporated herein by this reference and (iv) the Contractor's response to the Invitation for Bids, including but not limited to the List of Subcontractors, Bidder's Project References and Bid Form. 3. Inspection; Acceptance. All work shall be subject to inspection, surveillance, testing and acceptance by the Town at reasonable times during Contractor's performance. The Contractor shall provide and maintain a self -inspection system that is acceptable to the Town. Annual Contract --Emulsion 2004.doc Page 12 of 29 4. Compensation; Price Escalation. The Town shall pay Contractor a price not to exceed $37,543.50 for the Services as more particularly set forth in the Bid Schedule attached hereto as Exhibit C and incorporated herein by reference. Price increases may be requested by the Contractor 30 days prior to the anniversary date of the Contract. Price increases will become automatically effective and will be effective for at least one year from the date of approval. Price increases will be applied to the unit pricing in the Contract as a percentage increase. The percentage increase in the unit pricing may not exceed the percent of increase in the Phoenix Metropolitan "Consumers Price Index" for all items for the Percent Change from the Year -Ago Quarter as published by the Department of Labor Urban Consumer Price Index, however, this increase shall not be allowed to exceed a limit of 5%. Higher price increases may be considered based on documented increases in material price or labor wage/fringe rate 5. Payments. The Town shall pay the Contractor upon completion of the Services to be performed hereunder. Contractor shall submit invoices to the Town that shall document and itemize all work completed. The invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. The Contract Administrator shall review and approve all invoice statements. Once approved, invoices shall be paid within 30 days of said approval. 6. Licenses. Contractor shall maintain in current status all Federal, State and Local licenses and permits required for the operation of the business conducted by the Contractor. 7. Indemnification. To the fullest extent permitted by law, the Contractor shall 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 attorneys' fees, court costs and the cost of appellate proceedings) relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of the Contractor, its employees, agents, or any tier of subcontractors in the performance of this Contract. Contractor's duty to defend, hold harmless and indemnify the Town, its agents, representatives, officers, directors, officials and employees shall arise in connection with any claim, damage, loss or expense that is attributable to bodily injury, sickness, disease, death, or injury to, impairment or destruction of property, including loss of use resulting therefrom, caused by any acts, errors, mistakes, omissions, work or services in the performance of this Contract of any employee of the Contractor or any tier of subcontractor or any other person for whose acts, errors, mistakes, omissions, work or services the Contractor may be legally liable. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 8. Insurance. 8.1 General. a. Insurer Oualifications. Without limiting any obligations or liabilities of Contractor, Contractor shall purchase and maintain, at its own expense, Annual Contract --Emulsion 2004.doc Page 13 of 29 hereinafter stipulated minimum insurance with insurance companies duly licensed by the State of Arizona with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Contract at the Town's option. b. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Contractor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Contract but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Contract or failure to identify any insurance deficiency shall not relieve Contractor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Contract. C. Additional Insured. All insurance coverage and self -insured retention or deductible portions, except Workers' Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Contract, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Contract. d. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Contract are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Contract. e. Primary Insurance. Contractor's insurance shall be primary insurance with respect to performance of this Contract and in the protection of the Town as an Additional Insured. f. Claims Made. In the event any insurance policies required by this Contract are written on a "claims made" basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. g. Waiver. All policies, including Workers' Compensation insurance, waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Contractor. Contractor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. h. Policy Deductibles and/or Self -Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self - insured retention amounts. Such deductibles or self -insured retention shall not be Annual Contract --Emulsion 2004.doc Page 14 of 29 applicable with respect to the policy limits provided to the Town. Contractor shall be solely responsible for any such deductible or self -insured retention amount. The Town, at its option, may require Contractor to secure payment of such deductible or self -insured retention by a surety bond or irrevocable and unconditional letter of credit. i. Use of Subcontractors. If any work under this Contract is subcontracted in any way, Contractor shall execute a written agreement with Subcontractor containing the indemnification provisions set forth in this Section and insurance requirements set forth herein protecting the Town and Contractor. Contractor shall be responsible for executing the agreement with Subcontractor and obtaining certificates of insurance verifying the insurance requirements. j. Evidence of Insurance. Prior to commencing any work or services under this Contract, Contractor shall furnish the Town with certificate(s) of insurance, or formal endorsements as required by this Contract, issued by Contractor's insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Contract and that such coverage and provisions are in full force and effect. If a certificate of insurance is submitted as verification of coverage, the Town shall reasonably rely upon the certificate of insurance as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Contract. Such certificates shall identify the contract work number and be sent to the Director of Public Works. If any of the above -cited policies expire during the life of this Contract, it shall be Contractor's responsibility to forward renewal certificates within ten days after the renewal date containing all the aforementioned insurance provisions. Additionally certificates of insurance submitted without referencing a contract number will be subject to rejection and returned or discarded. Certificates of insurance shall specifically include the following provisions: 1. The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability - Under Insurance Services Office, Inc., ("ISO") Form CG 20 10 03 97 or equivalent. (b) Auto Liability - Under ISO Form CA 20 48 or equivalent. (c) Excess Liability - Follow Form to underlying insurance. 2. Contractor's insurance shall be primary insurance as respects performance of the Contract. 3. All policies, including Workers' Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Contractor under this Contract. 4. A 30-day advance notice cancellation provision. If ACORD certificate of Annual Contract --Emulsion 2004.doc Page 15 of 29 insurance form is used, the phrases in the cancellation provision "endeavor to" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 8.2 Required Insurance Coverage. a. Commercial General Liability. Contractor shall maintain "occurrence" form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products - completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured's clause. To the fullest extent allowed by law, for claims arising out of the performance of this Contract, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read "Who is an Insured (Section H) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you." If any Excess insurance is utilized to fulfill the requirements of this paragraph, such Excess insurance shall be "follow form" equal or broader in coverage scope then underlying insurance. b. Vehicle Liability. Contractor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Contractor's owned, hired and non -owned vehicles assigned to or used in the performance of the Contractor's work or services under this Contract. Coverage will be at least as broad as ISO coverage code "1" "any auto" policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Contract, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this paragraph, such Excess insurance shall be "follow form" equal or broader in coverage scope then underlying insurance. C. Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of Contractor's employees engaged in the performance of work or services under this Contract and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 8.3 Cancellation and Expiration Notice. Insurance required herein shall not Annual Contract --Emulsion 2004.doc Page 16 of 29 expire, be canceled, or materially changed without 30 days prior written notice to the Town. 9. Termination; Cancellation. 9.1 For Town's Convenience. This Contract is for the convenience of the Town and, as such, may be terminated without cause by the Town 30 days after receipt by Contractor of written notice by the Town. Upon termination for convenience, Contractor shall be paid for all undisputed services performed to the termination date. 9.2 For Cause. This Contract may be terminated be either party upon 30 days' written notice to the other party should the other party fail to substantially perform in accordance with this Contract's terms, through no fault of the party initiating the termination. In the event of such termination for cause, payment shall be made by the Town to the Contractor for the undisputed portion of its fee due as of the termination date. 9.3 Due to Work Stoppage. This Contract may be terminated by the Town upon 30 days' written notice to Contractor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Contractor for the undisputed portion of its fee due as of the termination date. 9.4 Conflict of Interest. This Contract is subject to the provisions of ARiz. REv. STAT. § 38-511. The Town may cancel this Contract without penalty or further obligations ® by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Contract on behalf of the Town or any of its departments or agencies is, at any time while the Contract or any extension of the Contract is in effect, an employee of any other party to the Contract in any capacity or a consultant to any other party of the Contract with respect to the subject matter of the Contract. 9.5 Gratuities. The Town may, by written notice to the Contractor, cancel this Contract if it is found by the Town that gratuities, in the form of entertainment, gifts or otherwise, were offered or given by the Contractor or any agent or representative of the Contractor to any officer or employee of the Town for the purpose of securing this Contract. In the event this Contract is cancelled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover or withhold from the Contractor an amount equal to 150% of the gratuity. 10. Miscellaneous 10.1 Independent Contractor. The Contractor acknowledges that all services provided under this Contract are being provided as an independent contractor, not as an employee or agent of the Town. Both parties agree that this Contract is nonexclusive and that Contractor is not prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. 10.2 Laws and Regulations. The Contractor shall keep fully informed and shall at all times during the performance of its duties under this Contract ensure that it and any Annual Contract --Emulsion 2004.doc Page 17 of 29 person for whom the Contractor is responsible remains in compliance with of all rules, regulations, ordinances, statutes or laws affecting the Services, including the following: (i) existing and future Town and County ordinances and regulations, (ii) state and federal laws and (iii) Occupational Safety and Health Administration ("OSHA") standards. 10.3 Amendments. This Contract may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Contractor. a 10.4 Provisions Required by Law. Each and every provision of law and any clause required by law to be in the Contract will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, the Contract will promptly be physically amended to make such insertion or correction. 10.5 Severability. The provisions of this Contract are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of the Contract which may remain in effect without the invalid provision or application. 10.6 Relationship of the Parties. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Contractor is advised that taxes or Social Security payments will not be withheld from any Town payments issued hereunder and that the Contractor should make arrangements to directly pay such expenses, if any. 10.7 Interpretation; Parol Evidence. This Contract represents the entire Contract of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Contract are hereby revoked and superseded by this Contract. No representations, warranties, inducements or oral Contracts have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Contact. 10.8 Assignment. No right or interest in this Contract shall be assigned by Contractor without prior, written permission of the Town and no delegation of any duty of Contractor shall be made without prior, written permission of the Town. 10.9 Subcontracts. No subcontract shall be entered into by the Contractor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Contractor is responsible for performance under this Contract whether or not subcontractors are used. 10.10 Rights and Remedies. No provision in this Contract shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Contract. The failure of the Annual Contract --Emulsion 2004.doc Page 18 of 29 Town to insist upon the strict performance of any term or condition of this Contract or to exercise or delay the exercise of any right or remedy provided in this Contract, or by law, or the Town's acceptance of and payment for services, shall not release the Contractor from any responsibilities or obligations imposed by this Contract or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Contract. 10.11 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 11. Notices and Requests. Any notice or other communication required or permitted to be given under this Contract shall be in writing and shall be deemed to have been duly given if (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below, (iii) given to a recognized and reputable overnight delivery service, to the address set forth below or (iv) delivered by facsimile transmission to the number set forth below: If to the Town: Town of Fountain Hills P.O. Box 17958 Fountain Hills, Arizona 85269-7958 Facsimile: 480-837-1404 Attn: Tom Ward With copy to: JORDEN, BISCHOFF, MCGUmE & ROSE, P.L.C. 7272 E. Indian School Road, Suite 205 Scottsdale, Arizona 85251 Facsimile: 480-505-3901 Attn: Andrew J. McGuire, Esq. If to Contractor: With a copy to: 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, (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, or (iv) when received by facsimile transmission during the normal business hours of the recipient. 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 Annual Contract --Emulsion 2004.doc Page 19 of 29 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. IN WITNESS WHEREOF, the Town and the Contractor have caused this Contract to be duly executed as of the day, month and year first above written. rf�ll ATTEST: Bevelyn J. en .,r, Town Clerk Annual Contract --Emulsion 2004.doc "Contractor" ►rizona Engineering by Arrid Zone Inc., an Arizona corpora ion By: Name: Ruben Martinez Title: President Page 20 of 29 EXHIBIT A SCOPE OF WORK INTRODUCTION It is the intent of the Town of Fountain Hills to enter into a contract to obtain asphalt emulsion sealing in the Town on an as needed basis. Primary work areas for fiscal year FY 2003-2004 will be Street Zone J. MATERIALS - The Asphalt Emulsion shall meet the requirements of Table #1 prior to dilution. The Contractor shall furnish a certification form from the manufacturer stating that the base emulsion being supplied meets these requirements. Table #1 Acrylic Modified Emulsion - Concentrate Test on Emulsion Method Min Max Viscosity, 77 F Brookfield LVT (4), CPS 40 300 ASTM D 244.22, S 15 40 (AASHTO T-72) Sieve, % ASTM D 244.38 (AASHTO T-59) 0.1 Acrylic Polymer FT-IR (6) 7 % Total Solids ASTM D 244.14 53 (AASHTO T-59) Exposure, Weather-Ometer ASTM (2, 5, 6) 450 Softening Point, F AASHTO T53 130 Ductility @ 77' F, cm 20 (5 cm/min) Penetration @ 77' F, drum ASTM D 244.65 (100G for 5 sec) (AASHTO T-59) 20 80 Notes: 1. 1,500 milliliters of concentrated emulsion shall be placed in a graduated cylinder and remain undisturbed for a period of 48 hours. There shall be no stratification of the Acrylic and emulsion evident at the end of this time period. 2. Concentrate diluted with water (2/1), spread rate 80 square feet per gallon (5 mil dry film). Film cured over night at 77' F. Testing done using Zenon Arc per ASTM D529 modified. The uncured Acrylic Polymer Latex Elastomer shall be composed of 100% acrylic Annual Contract --Emulsion 2004.doc Page 21 of 29 monomers formulated without plasticizers. 4. Spindle 2 @ 60 RPM. 5. Minimum time in hours without alligator cracking or edge creep of the film. 6. Q.U.V. from Q Panel Company Bulb type: QFS-40 QUV Settings as follows: Condensate Cooling Timer: 15 Cycle Timer 4-2 hr UV Cycles 4-4 hr Condensate Cycles UV Power & Thermostat Adjustments: 2.0 & 2.5 Condensate Power & Thermostat Adjustments: 2.0 & 2.5 Water shall be potable and free of any deleterious substances that may affect emulsion stability. PREPARATION OF PAVEMENT Pavement surface to be coated must be sound, surface cured and clean in order for the acrylic modified asphalt emulsion to perform properly. The pavement shall be free from clay, salt, grease, dirt, and other foreign matter. It is imperative that the pavement be thoroughly cleaned. Cleaning shall be accomplished by means of stiff bristle brooms, vacuum unit, or by pressure flushing. Any accumulation of grease or oil shall be removed by scraping, burning or scrubbing with detergent (detergent must be thoroughly rinsed from surface). If oil is still soaked into pavement, but the pavement is physically sound, such areas shall be coated with an acrylic oil spot primer to promote better adhesion and to prevent bleed through. PROTECTION OF EXISTING SERVICES The Contractor shall take all necessary precautions to prevent emulsion from covering or adhering to any survey markers or reflective pavement markers. APPLICATION OF MATERIALS The dilution rate is 2 parts asphalt emulsion concentrate to 1 part potable water. The dilution shall be formulated at the manufacturer's plant using hot soft water and proper blending techniques. The application temperature shall be between 120' F and 160' F. The delivery system shall be equipped with heating capability and circulation to insure proper mixing and even spraying. Apply sealer in one uniform coat with controlled rate capabilities or a spray wand. Application rate shall be between 0.1 to 0.15 gallons per square yard of dilution material. Test sections prior to commencement of job will determine actual coverage rate. Annual Contract --Emulsion 2004.doc Page 22 of 29 The sealer should be applied when the ambient temperature is 50' F and rising with no threat of rain for an 8 hour period. Hand apply sealer adjoining cracks, walls and other fixtures using spray wand, brooms, squeegee, or roller. Drying time is normally 2 hours before opening to traffic. Actual weather conditions will determine drying time and, in any case, avoid traffic until the surface is no longer tacky. After application of sealer, depressions in the pavement that collect residual sealer and puddles should be squeegeed off to avoid a tacky -slow curing surface. Payment will be per gallon, diluted 2 parts emulsion to 1 part water for concentrate. Annual Contract --Emulsion 2004.doc Page 23 of 29 EXHIBIT B SPECIAL TERMS AND CONDITIONS QUANTITY All quantities stated in the bid documents are subject to adjustment dictated by Town requirements. Quantities at variance with stated bid quantities may be purchased as required. DEFINITION Definitions shall be as stated in Section 101.2, Definitions and Terms, of the MAG STANDARD SPECIFICATIONS with the following additions: DUST PREVENTION The Contractor shall take whatever steps, procedures or means required to prevent abnormal dust conditions due to his construction operations in connection with this contract. The dust control measures shall be maintained at all times during construction of the project, to the satisfaction of the Town, in accordance with the requirements of the Maricopa County Health Department Air Pollution Control Regulations. This is not a pay item. MAG Subsection 104.2.5 shall apply. 0 TRAFFIC CONTROL a. Complete street closures will not be permitted unless specified in the Special Provisions Section of this bid document. b. Adequate barricades and lighted warning signs shall be installed and maintained by the Contractor throughout the duration of the project. All traffic control shall be in accordance with the City of Phoenix Traffic Control Manual unless otherwise specified in the Special Provisions section of this bid document. c. The Director of Public Works or his designee shall stipulate the traffic restrictions and/or minimum requirements throughout the construction period. d. The Contractor shall submit a construction schedule and traffic supplement for "Street Barricading and Channelization" to the Director of Public Works for approval and/or modification before construction is initiated. Traffic control is not a separate pay item. INSPECTION a. Inspectors may be stationed on the work to report to the Contract Administrator or his Designee as to the progress of the work, the manner in which it is being performed, and also to report whenever it appears that material furnished or work performed by the Contractor fails to fulfill the requirements of the specifications and contract. The Inspector may direct 10 the attention of the Contractor to such failure or infringement but such inspection shall not Annual Contract --Emulsion 2004.doc Page 24 of 29 relieve the Contractor from any obligation to furnish acceptable materials or to provide completed construction that is satisfactory in every particular. b. In case of any dispute arising between the Inspector and the Contractor as to material furnished or the manner of performing the work, the Inspector shall have the authority to reject materials or suspend the work until the question and issue can be referred to and decided by the Town. Inspectors are not authorized to revoke, alter, enlarge, relax, or release any requirements of the specifications. Inspectors shall in no case act as foremen or perform other duties for the Contractor or interfere with the management of the work by the Contractor. c. Inspection or supervision by the Contract Administrator or Designee shall not be considered as direct control of the individual workman and his work. The direct control shall be solely the responsibility of the Contractor. DUMPING AND DISPOSAL OF WASTE The Contractor is responsible for the cost to dispose of all waste products including excess earth material which will not be incorporated into the work under this contract. The waste product referred to herein shall become the property of the Contractor. SUPERVISION BY CONTRACTOR �%r The Contractor will supervise and direct the work necessary for the services. He will be solely responsible for the means, methods, techniques, sequences and procedures of construction. The Contractor will employ and maintain a qualified supervisor or superintendent (foreman/lead man) who shall have been designated in writing by the Contractor as the Contractor's representative at the site. The representative shall have full authority to act on behalf of the Contractor and all communications given to the representative shall be as binding as if given to the Contractor. The representative shall be present on the site at all times as required to perform adequate supervision and coordination of the work. Where appropriate, all provisions of MAG, Section 105.5, Cooperation of Contractor, will be applicable. CHANGES IN THE WORK The Town may at any time, as the need arises, order changes within this Scope of Work without invalidating the Contract. If such changes increase or decrease the amount due under the Contract Documents, or in the time required for performance of the Work, an equitable adjustment shall be authorized by written Change Order in accordance with the terms and conditions of the Contract. METHOD OF MEASUREMENT AND PAYMENT FOR PAY ITEMS Except as otherwise provided in the Contract, measurements and payment for all bid items shall be as described in the MAG STANDARD SPECIFICATIONS, subject to the following: Annual Contract --Emulsion 2004.doc Page 25 of 29 a. Payment for each item shall constitute payment in full for the furnishing of all materials, equipment, appurtenances, labor, plant and tools necessary to provide a completely finished, and serviceable project, as described in the Specifications. Each item shall be complete with all necessary connections, and related work accomplished to provide for the satisfactory use and/or operation of the total project. b. No additional payments will be made for incidental work related to any items unless specifically called for in a written, signed Change Order. c. Ten percent (10%) of the amount of each progress pay estimate shall be retained or securities shall be posted in accordance with ARIZ. REV. STAT. § 34-221 until final acceptance by the Town. WORKMANSHIP Where not more specifically described, workmanship shall conform to all of the methods and operations of best standards and accepted practices of the trade or trades involved and shall include all items of fabrication, construction or installation regularly furnished or required for completion. All work shall be executed by tradesmen skilled in their respective lines of work. When completed, all work shall have been durably and substantially built and shall present a neat, workmanlike appearance. RECORDS AND AUDIT RIGHTS Contractor's and Subcontractor's books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Contract (all the foregoing hereinafter referred to as "Records") shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation and verification of any invoices, payments or claims based on Contractor's or Subcontractor's actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Contract. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records from the effective date of this Contract for the duration of the work and until three (3) years after the date of final payment by the Town to Contractor pursuant to this Contract. The Town shall have access, during normal working hours, to all necessary Contractor and Subcontractor facilities, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with the provisions of this Article. The Town shall give Contractor or Subcontractor reasonable advance notice of intended audits. Contractor shall require Subcontractors to comply with the provisions of this Article by insertion of the requirements hereof in any subcontract pursuant to this Contract. LIQUIDATED DAMAGES Annual Contract --Emulsion 2004.doc Page 26 of 29 The liquidated damage amounts specified in Section 108.9, Failure to Complete on Time, of the MAG Standard Specifications shall apply to each work order. LOSS AND DAMAGES All loss or damage arising out of the nature of the work to be done or from the action of the elements, or from any unforeseen circumstances, in the prosecution of the same, or from any unusual obstructions or difficulties which may be encountered in and/or during the prosecution of the work, or from any casualty whatsoever of every description, shall be sustained and borne by the Contractor at his own cost and expense. OTECTION OF FINISHED OR PARTIALLY FINISHED WORK The Contractor shall properly guard and protect all finished or partially finished work, and shall be responsible for the same until the work order is completed and accepted by the Town. CLEAN UP After all work under each work order is completed, the Contractor shall remove all loose debris and other materials not incorporated in the work from the site of the work. Any clean up or restoration to private property will be the responsibility of the Contractor. FINAL ACCEPTANCE "Final Acceptance" shall mean a written final acceptance of the work order by the Contract Administrator. The Contract Administrator or his Designee shall make the final acceptance promptly after all work of each phase has been completed in accordance with the contract documents and after final inspection. The work performed under this Contract shall be guaranteed for a period of one year from the date of final acceptance of the work order. MAG SPECIFICATIONS MODIFIED SECTION 105.10 — FIELD TESTING The Town will retain a testing laboratory to check the quality and application rate of the emulsion seal. SECTION 107.12 - FURNISHING RIGHT OF WAY The Contractor, at his own expense, is responsible for the acquisition of any necessary temporary easements for construction purposes, storage and maintenance purposes, which are required in addition to existing easements and/or rights of way. SECTION 108.1.1 - PRE -CONSTRUCTION CONFERENCE The Contract Administrator will schedule a Pre -Construction Conference to be held at Fountain Annual Contract --Emulsion 2004.doc Page 27 of 29 Hills Town Hall after completion of the Contract Documents and prior to the commencement of work. The purpose of the Pre -Construction Conference is to establish a working relationship between the Contractor and the Contract Administrator. The agenda will include critical elements of the work schedule, submittal of schedule, product data submittals, cost breakdown of major lump sum items, payment application and processing, coordination with the involved utility firms, emergency telephone numbers for all representatives involved in the course of construction and establishment of the Notice to Proceed date. Minimum attendance by the Contractor shall be a responsible official who is authorized to execute and sign documents. ON 108.5.1 - WORKING HOURS Working hours will be 7:00 AM to 5:OOPM during winter hours (November, December, January and February); 6:00 AM to 6:30 PM during spring hours (March, April and May); and 5:30 AM to 6:30 PM during summer hours (June, July, August, September and October), Monday through Friday, with a half-hour lunch period unless otherwise authorized by the Contract Administrator. SECTION 110 - MOBILIZATION The work under this section shall consist of preparatory work and operations, including but not limited to, the movement of personnel, equipment, supplies and incidentals to the project site; the establishment of all offices, buildings and other facilities necessary for work on the project, and for all other work and operations that must be performed prior to beginning work on the various items on the project sites. The Contractor shall obtain approval of the Contract Administrator when using Town or private property to park and service equipment and store material for use on this project. a. The yard shall be fenced and adequately dust -proofed in a manner such as to preclude tracking of mud onto paved Town streets. b. Work in the yard shall be scheduled so as to minimize noise at existing residences and businesses. c. Equipment, materials, etc., shall be located so as to minimize impact on adjacent properties. A sound barrier may be required if deemed necessary by the Contract Administrator. d. The Contractor shall clean up property promptly upon completion of use. e. Contractor's request for approval shall specify in detail how he or she proposes to comply with (a) through (d) above. No separate payment will be made for mobilization. Annual Contract --Emulsion 2004.doc Page 28 of 29 0 Annual Contract --Emulsion 2004.doc EXHIBIT C BID SCHEDULE [See following pages] Page 29 of 29 r EMULSION SEAL COAT PW 2004-02 BID SCHEDULE Description _QuantitV Unit Price Amount 1 Plastic Seal 18,225 Gallons 1j.04 3`7 3 y3.0 Annual Contract --Emulsion 2004.doc Page 8 of 29 • TOWN OF FOUNTAIN HILLS, 1, ARIZONA +" PUBLIC WORKS DEPARTMENT STREET PLASTIC SEAL MAP '03 -'04 N 28' W E /fJJj, EOP �/j�f/'s' T __LEOP 2845 sq. ft. S 28 EOP 825 sq. ft. 0 375' 750' INTERSECTION mm`p� 4355 sq. ft. FILLET AREA SCALE: i" = 750' CUL-DE-SAC AREAS � '03-'04 PUBLIC WORKS (PLASTIC SEAL) 1 I ��.-�— Ii2��:::i� 0MI NE am 28' C � T�EOP 28444555 sq. ft.. I 28' EOP 4355 sq. ft. CUL-DE-SAC AREAS 28' W 0 250' 500' SCALE: 1" = 500' TOWN OF FOUNTAIN HILLS, ARIZONA PUBLIC WORKS DEPARTMENT STREET PLASTIC SEAL MAP '03 - '04 � 103-104 PUBLIC WORKS (PLASTIC SEAL) Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 3/18/04 Submitting Department: Public Works Contact Person: Dana Burkhardt, Senior Planner Consent:❑ Regular:® Requesting Action:® Report Only:❑ Tvne of Document Needinn 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: 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 Regular Agenda Wording: Consideration of the Final Plat of "The Village at Towne Center", which is a replat of Final Plat 208, a portion of Block 1, Block 8, and the previously abandoned portion of Verde River Drive, a 15.6 acre, 145 unit condominium subdivision proposed in a "C-2" Commercial Zoning District. Staff Recommendation: Approve Fiscal Impact: No $1___. Purpose of Item and Background Information: This request by KM Development Corp. is for final plat approval of a 145-unit multiple -family residential condominium project in a "C-2" Intermediate Zoning District. On June 5, 2003, the Town Council approved the preliminary plat on a unanimous vote. Please see the attached report for further details. List All Attachments as Follows: Staff Report; Application & Final Plat reductions Type(s) of Presentation: Powerpoint Signatures of Submitting Staff: Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS PLANNING DIVISION TOWN COUNCIL MEMO TO: The Honorable Mayor and Town Council DT: March 10, 2004 FR: Dana Burkhardt, Senior Planner RE: S2003-02; Final Plat of "The Village at -> Towne Center", a 145-unit multi -family condominium project. LOCATION: Final Plat 208, a portion of Block 1, Block 8, and the abandoned portion of Verde River Drive. REQUEST: Final Plat of "The Village at Towne Center", which is a replat of Final Plat 208, a portion of Block 1, Block 8, and the previously abandoned portion of Verde River Drive, a 15.6 acre, 145 unit condominium subdivision proposed in a "C-2" Commercial Zoning District. OWNER: MCO Properties, Inc. APPLICANT: KM Development Corp. EXISTING ZONING: "C-2" Intermediate Commercial Zoning District PARCEL SIZE: 15.6 ac (679,422 sf) ® SURROUNDING LAND USES AND ZONING: NORTH: Vacant property; zoned "C-2" SOUTH: El Lago Blvd and Multiple -family developments; zoned "R-4" EAST: Saguaro Blvd and The Plaza Fountainside; zoned "TCC" WEST: Future Performing Arts Center; Town -owned land; zoned "C-2" SUMMARY: This request by KM Development Corporation is for approval of the final plat of "The Village at Towne Center". The preliminary plat and special use request approval was granted by Town Council on June 5, 2003, which included: 1) the assembly of a portion of Block 1 with the abandoned portion of Verde River Drive right-of-way and Block 8, of Final Plat 208, to a single lot; and 2) a preliminary condominium subdivision with on and off -site improvements. The final plat of "The Village at Towne Center" is a proposed 145-unit gated multi -family condominium project, with a common swimming pool and amenity area. There are two gated points of ingress/egress proposed for this development. Both access locations are on the north side of El Lago Boulevard, separated by approximately 700'. Both entrances are designed with two (2) twenty -foot wide one-way drive -aisles divided by a nine -foot landscape median. The private interior roadway system is located within an access and utility easement owned and maintained by the property owners association. The proposed interior roadway is a 26-foot wide paved drive -aisle, with two (2) 62-foot radius cul-de-sac bulbs and a five-foot sidewalk located on one side. The proposed interior sidewalk system is designed to connect to the proposed eight - foot meandering sidewalk located along the El Lago Blvd., Saguaro Blvd., and Stewart Vista Ave. street frontages. This condominium subdivision proposes a total of 327 non -tandem parking spaces on -site, and also provides the potential for tandem parking locations in the driveways of a majority of the dwelling units. Each dwelling unit has an enclosed garage and a private patio or balcony. The maximum livable area is 1,835 square feet, the minimum livable area is 1,315 square feet. The site plan consists of 29 buildings, each identical in design, containing five dwelling units per building. The maximum proposed building height as measured from the existing topography does not exceed 30 feet at any location. All residential buildings have a 27.3-foot structure height above the finished floor and the amenity building is approximately 13 feet in height. The applicant intends to record a Declaration of Condominium to sell the units individually. The proposed amenity area and community pool, as well as all common areas, will be owned and maintained by the condominium association. The site plan proposes three central mailbox locations throughout the project. Trash pickup service would be individual for each unit, and the container is stored within the garage. A five-foot wrought iron view fence is proposed between each of the perimeter buildings to enclose the site, with exception to pedestrian gate access at the sidewalk locations. EVALUATION: Conformance with the General Plan & Town Center Development Agreement The General Plan Land Use Map designates this property for mixed use. Multi -family medium and high density land uses are particularly encouraged in the Town Center area between existing residential and commercial areas or as buffers to lower density residential areas located along arterial roadways, or adjacent to commercial areas. The Town Center III Development Agreement as amended by the 1998 Firerock Country Club Development Agreement (Section J.2(d)) with MCO Properties provides that: "(c) The Town shall act in good faith to consider each Special Use Permit application on its merits and shall approve those applications which meet the Town's applicable development standards, including the terms provided in this paragraph. The Town shall retain its rights to reasonably consider such conditions as it deems relevant in acting on any Special Use Permit application for multi -family projects, including apartments, townhomes and condominiums, on the basis that the density is 18 or fewer units per acre. Special use permits for all multi -family projects within the Town Center area shall not exceed a total of 400 units, and, for any single project, shall not exceed 233 units. The Town shall retain its discretion to consider such conditions, as it deems relevant when arriving at a decision that a particular application would have a detrimental effect on adjacent properties. As an example, in considering such items as it deems may have a detrimental effect on adjacent properties, the Town may consider such r� items as open space, site plan, four sided elevation designs and project amenities." (emphasis added). To date, the Town has approved 297 dwelling units by Special Use in the Town Center pursuant to the development agreement. The Town Attorney and Staff have concluded that Town Council approval of any special use request in the town center in excess of 400 dwelling units is solely discretionary and the provisions of the above section do not bind the Town. The Town is only bound to the multi -family provisions of the development agreement, including the ordinances and standards enforced at the time of the agreement for the first 400 dwelling units. If approved, this multi -family project will exceed the 400 units agreed upon; therefore the Town Council's review of this project is entirely discretionary, unbound by the multi -family provisions of the development agreement. At this time, the total number of dwelling units approved by special use permit in the Town center is 450, including this project. Conformance with the Zoning Ordinance The special use permit approved for this project allows 30' minimum building setbacks along El Lago and Saguaro Boulevard property lines, and 20' minimum building setbacks along the Stewart Vista Drive frontage property line. The Stewart Vista Drive frontage setback is the only deviation from the standard multi -family setbacks of the Zoning Ordinance, though all setbacks proposed meet the underlying "C-2" Zoning District minimum setbacks. Other than the Stewart Vista Drive building setback, this request is in conformance with the "M- 2" Multiple -Family Residential Zoning District requirements. The proposed density of this project is 9.3 dwelling units per acre, which is below the allowable maximum "M-2" density of 10 dwelling units per acre. The approved development agreement permits densities up to 18 dwelling units per acre. The proposed site design conforms to the maximum 30 foot building height allowed in the "M-2" Zoning District as measured from natural grade, where 40 foot is allowed in the existing "C-2" Zoning District. The minimum building separation required is equal to the building wall height of 20 feet. The applicant is requesting a two -foot roof overhang to encroach within the 20-foot building wall separation for approximately six (6) of the 29 buildings, which conforms to the underlying "C-2" standards. The minimum drive aisle width and the required parking spaces conform to the "M-2" Zoning District standards. If this property were developed as a commercial use, the existing minimum setbacks and maximum building heights would allow development with a substantially greater visual impact to the surrounding properties. The development of this property as commercial would also allow uses that may have adverse impacts on the abutting residential properties such as traffic, noise, and other nuisances associated with commercial activities. Staff believes that the proposed setbacks, though a reduction from the current multiple family standards, is designed sensitively with respect to the adjacent residential properties and will compliment the abutting commercial character. Staff has received agreement from the property owner and developer to generally conform to the "Town Center Commercial" (TCC) Zoning District landscape standards. The "TCC" Standards differ from the Subdivision Ordinance landscape requirements as they provide an attractive downtown streetscape character including theme trees and additional site screening, among other things. Conformance with the Subdivision Ordinance \.► The proposed preliminary plat exceeds the maximum (15) number of dwelling units permitted by the Subdivision Ordinance on a modified hillside local road cul-de-sac design. The applicant proposes two cul-de-sacs: the east cul-de-sac serves 24 dwelling units, and the west cul-de-sac serves 30 dwelling units. Staff believes that the primary rationalization for limiting the unit count on a cul-de-sac is to aid fire protection efforts, particularly where a cul-de-sac street stretches up a hillside slope, and the steep terrain creates difficulties in maneuvering large vehicles and evacuating properties if necessary. The Fire Department believes the numbers of dwelling units proposed on the cul-de-sacs are not an issue due to the relatively flat topography, the fact that all buildings are required to provide a fire sprinkler system, and that all buildings are within 150 feet of a fire hydrant. The modified cul-de-sac bulb design resembles a loop road rather than a typical bulb, which allows additional maneuvering area and ease of access to the cul-de-sac units. The Town Engineer does not foresee an issue with the expected traffic flows relative to the proposed cul-de-sacs. The preliminary plat approval included a one sided sidewalk street design for the interior of the project, rather than two-sided as required by the Subdivision Ordinance. The Town Council approved the preliminary plat with the following stipulations: 1) The applicant provide a notation on the cover of the final plat and a statement in the CC&R's that discloses the likelihood of nuisances from the adjacent commercial activities and special events customary to the downtown area. 2) The development shall generally conform to the "TCC" Zoning District landscape guidelines, as agreed to by the staff and applicant. 3) The Town Council approves a sidewalk on only one side of the interior drive aisle. 4) All improvement plans, such as landscaping, irrigation, grading and drainage plans along with a construction assurance bond and Final Drainage Report must be approved by the Town prior to final plat approval. 5) Prior to final plat approval, provide an approved water service design from the Chaparral City Water Company. 6) The developer shall design and provide ADA parking space and access to all public amenities such as mailbox locations and the pool amenity area, with the improvement plans. 7) In the event the Town Engineer allows on -street parking along El Lago Blvd. or Stewart Vista Ave., the eight -foot sidewalk shall be located at back of curb to provide safe pedestrian access to vehicles parked within these rights of way. (Note: At the current time, we do not anticipate allowing on -street parking on the north side of El Lago nor on the south side of Stewart Vista Dr.) 8) The applicant provides a pedestrian connection to the Town -owned open space abutting the northwesterly property boundary, as grade permits or as shown on the preliminary plat. 9) All fence heights within the street side and front yard minimum building setbacks are restricted to 3.5 feet in height. 10) Provide the following documents with the Final Plat submittal: a) Geotechnical Report — Developer stated that they would be using post -tensioned slabs. �k. b) Final Drainage Report — Complying with Town Engineer comments and requirements. c) Engineering Calculations and details for retaining wall designs. d) Engineering Improvement Plans designed to comply with all Prel. Plat comments. 11) You may need to provide a fire hydrant on Saguaro mid -way between El Lago and Stewart Vista, tapped off of Saguaro Blvd. This will be determined prior to final plat with the fire flow analysis. 12) In the infrastructure report, provide a "worst -case" calculation (ISO standards) justifying using only the minimum 1500 gpm fire flow. Consider the building materials, fire separation walls, and the short separation between multiple buildings. 13) Pre-emption devices are required at all access gates for emergency services. 14) Provide a fire flow analysis to justify the minimum 1500 G.P.M. requirement taking into consideration ISO guidelines (separation between bldgs, firewalls, etc.). 15) The sewer line does not appear to be located in a PUE. A PUE will be required for the line to be public. 16) Relocate building five to conform to a 30-foot minimum building setback along the Saguaro Blvd. frontage. RECOMMENDATION: Staff recommends the Town Council approve the final condominium plat of "The Village at Towne Center", with the following stipulations: 1) a. The Town's approval is conditioned on the Town receiving from the Department (ADWR): (i) written notice that the Department has approved a modification of CCWC's Designation that demonstrates a water supply to meet CCWC's current and committed demands including the Subdivision; or (ii) written notice that the Department has demonstrated that the Deficit Volume has been otherwise eliminated and CCWC has a sufficient supply to meet the water demands of the Subdivision. b. The Town's approval is also conditioned on the developer of the Subdivision not submitting a request to the State Real Estate Commissioner for a public report for the Subdivision under A.R.S. §§ 32-2181 through 32-2183 prior to the Department's issuance of the written notice as described in (a)(i) or (a)(ii) above. 2) This final plat shall be a replat of Final Plat 208, a portion of Block 1, Block 8, and the previously abandoned portion of Verde River Drive. 3) The applicant provide a notation on the cover of the final plat and a statement in the CC&R's that discloses the likelihood of nuisances from the adjacent commercial activities and special events customary to the downtown area. 4) The Town Council approves a sidewalk on only one side of the interior drive aisle. 5) All improvement plans, such as utilities, landscaping, irrigation, grading and drainage plans along with a construction assurance bond must be approved by the Town prior to plat recordation. 6) In the event the Town Engineer allows on -street parking along El Lago Blvd. or Stewart Vista Ave., the eight -foot sidewalk shall be located at back of curb to provide safe pedestrian access to vehicles parked within these rights of way. (Note: At the current time, we do not anticipate allowing on -street parking on the north side of El Lago nor on the south side of Stewart Vista Dr.) 7) Pre-emption devices are required at all access gates for emergency services. PBA 1/02 The Town of Fountain Hills COMMUNITY DEVELOPMENT DEPARTMENT Fountain Hills, Arizona NATURE OF THE REQUEST: prPliminary Plat and Special use Permit application for a 150 unit r-nnlnmin;nm nrnjp(-t at- the Northwest corner of Saguaro Blvd & E1 Lago PROJECT NAME Fountain Hills ( temporary name )Lvnd0M,n,,, Mrs. Mr. —Ms. �ow Mrs. Mr. Ms. Applicant: --KM T)c=_,vP1jQPme_nt Corp Day Phone 602-996-6800 Address: 706 E Bell Rd Suite 212 Owner: MCO Properties City: Phoenix State: AZ Zip: 85022 Day Phone 480-837-9660 Address: 1 6q�n F Pal ; -_arjAq R1 vd City: Fountain H,t AZ _ gyp. Q5268 If applicatibn is being submitted by someone other than the Owner of bf a property under consideration, the sechion below mil be completed, SIGNATURE OF OWNER S �oE�'°`„`,� DATE C - la 0 3 MCO ��p12..;1c-S, itic I HEREBY AUTHORIZE KM Development CorpTO FILE THIS APPLICATION. Please Print Subscribed and Commission Expires__ —/ ?- o S C 1 ;l 5.°° 1 rail F� FILING DATE: l� FEE PAID: �q5.°v ACCEPTED BY: r.. (See Fee Schedule) Application Page 2 of 7 ��;�; . . 20 0A PBA 1 /02 die Town of Fountain Hills _ *MW LEGAL DESCRIPTION Arizona Final Plat 208 1 & 8 All Plat Name Block Lot PROPERTY ADDRESS 176-05-045B 15.6(gross) 13.9(ne 176-06-1-45 thru PARCEL SIZE (Acres) MSESSOR PARCEL NUMBER 176 86 172 NUMBER OF UNITS PROPOSED 150 TRACTS EXISTING ZONING: %"W `` 1 Application Page 3 of 7 C - 7 PROPOSED ZONING Tow�rtw�+t� i� C- 2 -Z0At/^J(4 bllMi Z C Q a N z O LL LO Z N L uwJwa wo�� awui C, p JU wow �>Z iow0 w Fw_ o~ w w a� » » z' _ o „�J...m _ o U wrc > LL x xo yy 1O O p g F yI,t z,,A K a�0 a�otimti 3Wuo C1x �zw� Qa� oI zI -woO $ m s 'm mLL �i`i�i'o W �m _ W N� Flwgv'irco'� >z�Wzx W _ W ��Nw = LL LU 0!N/131/7OB 0!N/kJVS > Ld w N O = ® Q N xwOLLIZ � U two tg ~ate~�- I_, ` W < V It:n N o N w,� N« o-,m _u m< W 1 < _§ < -tea V' wU' Z 111wo8o •m o o. oqza zZ<Q �_ H rW- F J ���o < iI Pw§. w' w'wowz <- oo UHO W �� NUU - ew >It 21, w w a n �o w$ ®� H—Z W ` g§ w o� - - Q 'h <ou o iw o _o,yz <� Lncr UJ NN o 0 IL.6 `> g S 5 9 `am ozJ b O < F o o I.M .1 1z m- aw E1 . - 1, mW 3:<$ ><2 "It Z w J _ a <n'- ox - �� z oil =o N cc o>� z As z< _ oz o�' lz Qi < x < Q ��u �zgo `� _i 'binbwm �A <ouo 0- - 4w- W ouu I. _ �6 i a�1 a -.� .ffi < pW�. W - Ang ¢o ? <oW„;- o �x �o g� Sew ao o w �m3 g w. o `wI M,g - x4 o LL z i - _ __ __ w w<x Sw - - 40 € z. z.- o> z -w J�o _ „ N_ YQ o I LL o. o o w < o o �WSq 0 > >oN„six��Oz�u uw >o faa z '- ri O {1 W Z FI xH g Q !! y5£ jwaQd yyRd�j Z oil O O N co V) LLj w IA Cm L, w m // \\ \\�` " I I `pq. o II I I 47 IT LLI ,,�ryyy ;' I RRAAAR 8A �i 9«RYR$fiA� 4'e• Q•� � "� // AAA -§-a xxARg«pA39X�AyHSRa IYInd iii>��IkMNITIS � q5 $$8$g0$$$ / Q y • / A �—ca / b� / / � of � Ap„=^�aAA�R.,s$F�gP�F^r�ARSR�TI�Ar���RS��RSA=}I�1117�: a •$g=g.•pp�_ . ^ .. a ..... Y28 R ZS ^. - �3��9:R�0.kY"k�R�h.LCAB�4RY$B^_$S�SY°�JHH�YYSSY�YEIIII". 1'AS $$h. hhgn�.'yyn'e'tR4Q'1nN�.�q 014wzn3iYJ,R4YeabbRHA'li°t°�YS �• p I _ // / '_^CS�ksI�NP:�R71_ARnA88'==^-AA 8AA�AAx� tzmA+APm8aa �_ � s • '"'ti� � � _ / / �'�h�l$ $'figg§$gg$$$$Ai$ �A�j JA AAi$$$$ggggg$$R'sggRyy$�gggg�gg�Agggggggg � OA,�d'�i // ,q a-«R_si�s1_i1$Rf171fIR�f1.--�dagT1!lSIYfly_q$A«_RA_A_RRAF1fJ `" w d� 9 °°�rx��/��PsoaaoaasH���c�"scc�c�nE�o86o665553'v935'I13ss333�a338 w f wZ I caw` QU J JW as"a >z E g W� W W o o ` W co J 2 LL $$$$$$$$$2_ - Z ¢a �Q W O LL F W 33 I !q 2 o H N y 2 LL 8�b lk �g bii18 OHYl75YS $a� - F"� �vcmx .u�ca u,vosc.azs 'ma's ,99YI .�lY! L9�Y s® $® ® w. g Sa'K W e/u,iv �/a zv W d ® s® saw s jj °E► , �® � r S 133HS 33S 6 8 i J a0 w �z •' w JU � Y - wo �hw 8� ao ffg -n Pao W ¢Q Li ®�- OO 00. r- 9 J33HS 33S -j W F- •®® LL w N Z „® 0 �® W 1® / 10 10 ® 1® i® 16 10 10 10 i®e go !® go 1® w ae le �® i go go Is 6 8g \ )} | _ 2± .� u !| . ! >I || uc \ '� § ■ ! 2 \ § _ got ® cm) w > _ ! ! ® § , �§ - /LL�0- 9 co o 0 / O \ } w � �./� 2 •yr � �.� - ,t) � � \{� ■ in \■{ h� � kid )§)$) $ , , ^ - © §� �w§I/ \� .\ .2 § � \ - _ | _ / . / \ _ § ` ! � � \ a . . . ~� 82 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: 3/18/04 Submitting Department: Pub. Works Contact Person: Molly Bosley, Planning/Zoning Administrator Consent:❑ Regular:® Requesting Actions® Report Only:❑ TVDe of Document Needing AAUroval (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: Cut & Fill Waiver Council Prioritv(Check AnDrooriate 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 a Cut and Fill Waiver to permit a 15-foot maximum cut for the development of a single-family residence located at 15605 Firerock Country Club Drive, aka Parcel "I", Lot 17. Case Number CFW2004-01. Staff Recommendation: Approve Fiscal Impact: No ,.. Purpose of Item and Background Information: This is a request for a maximum 15 foot cut in excess of the ten foot maximum allowed by Section 5.11 (C)(4) of the Town of Fountain Hills Zoning Ordinance. The entire proposed cut in excess of ten feet covers a portion of the garage and lower level of the residence. The entire cut beyond ten feet would not be visible from the exterior of the building. List All Attachments as Follows: Staff Report; Vicinity Map; Application Type(s) of Presentation: PowerPoint Signatures of Submitting Staff: Town Manager / a Budget Review (if item not budgeted or exceeds budget amount) Ri TOWN OF FOUNTAIN HILLS PLANNING & ZONING DIVISION STAFF MEMO TO: Honorable Mayor and Town Council DT: March 8, 2004 through Tim Pickering, Town Manager R: Molly Bosley, AICP, Planning & Zoning RE: Case # CFW2004-01; 15605 Firerock dministrator through Tom Ward, Director of Country Club Drive Public Works LOCATION: 15605 Firerock Country Club Drive (Parcel "I", Lot 17) REQUEST: Consideration of a cut and fill waiver to permit a 15 foot maximum cut for the development of a single-family residence. DESCRIPTION: OWNER: Canning, Biehl, Meadows APPLICANT: James Canning EXISTING ZONING: "R1-35H PUD" EXISTING CONDITION: Vacant undisturbed lot LOT SIZE: 37,501 square feet SURROUNDING LAND USES AND ZONING: NORTH: Vacant residential lot, zoned "RI-35H PUD" SOUTH: Vacant residential lot, zoned "RI-35H PUD" EAST: Vacant residential lot, zoned "RI-35H PUD" WEST: Vacant residential lot, zoned "RI-35H PUD" SUMMARY: This is a request by James Canning for a maximum 15 foot cut in excess of the ten foot maximum allowed by Section 5.11 (C)(4) of the Town of Fountain Hills Zoning Ordinance. The entire proposed cut in excess of ten feet covers a portion of the garage and lower level of the residence. The entire cut beyond ten feet would not be visible from the exterior of the building. EVALUATION: The applicant has submitted a request for building permit, building permit #2004-84, and staff is currently reviewing the request. The total area of the cut under roof in excess of the ten foot maximum allowed is approximately 1,580 square feet in area, or 22.4 percent of the total roof area of the home. Staff may administratively approve cuts or fills beyond the ten -foot maximum for areas under the footprint of the main structure given that the cut or fill does not exceed five percent of the main structure footprint. Staff has identified three objectives in reviewing cut and fill waiver requests for single-family residences. Those objectives are as follows: 1) To reduce the visual impacts of the proposed development as viewed from the adjacent properties and rights of ways. 2) To review the measures applied by the designer to minimize the amount of cut and fill on the lot. 3) To consider possible alternatives to the proposed plan that would conform to the ten -foot maximum cut or fill. The entire area of the cut is under the footprint of the building and completely concealed by the building fagade, as a result there would be no visual impact from the exterior of the building. The building straddles a ridge in the natural topography of the site; the cut reduces the overall height of the building. The maximum proposed building height as measured from natural grade is approximately 26 feet. The building could be raised by 4 feet and remain within the maximum 30 foot building height allowed by the Zoning Ordinance. However, raising the residence would create a driveway slope in excess of the maximum 18 percent as allowed by the Town of Fountain Hills Engineering Department Residential Driveway Policy and additional terraced retaining walls would be required leading to more horizontal disturbance of the land in the rear of the property. As presented, the site retains an acceptable 15 percent driveway slope and all retaining walls meet the standards as set forth in Town Ordinances and policies. Staff recommends approval of this cut and fill waiver due to the minimal off -site visual impact of 10aw the proposed cut. The Planning and Zoning Commission approved this application at their February 26, 2004 regularly scheduled meeting by a vote of 7-0. PBA 1/02 �o��TAIN� ti o 3 0 0 s that is The Town of Fountain Hills COMMUNITY DEVELOPMENT DEPARTMENT Fountain Hills, Arizona APPLICATION Area Specific Plan or Change General Plan Amendment Plan of Development Zoning Change Variance Condominium Plat NATURE OF THE REQUEST: C'�LT IA- MI C Preliminary Plat Cut/Fill Waiver Special Use Permit SU Comprehensive Sign Plan HPE Change or Abandonment For Official Use Only Case Manager: X , L� � . PROJECT NAME M2 �1 1— f2,C: Mrs. Appii.->-4.• G c 12 5 4 �o % Day Phone Ms. Address:- �' ' --;,,-A( u C L I City; C-� State: Al— Zip: 5�� Mrs. Owner: G+�.�,� +�%4 �+��-�� wt � ��5 4931 �3) SL�Q Mr. _ Day Phone 4 P qS2_Ms. Address:.T:State: ZID- If application is being submitted by someone other than the owner of the property under consideration, the section below must be completed. SIGNATURE OF OWNER DATE I HEREBY AUTHORIZE TO FILE THIS APPLICATION. Please Print Subscribed and sworn before me this day of Notary Public My Commission Expires FILING DATE: Application Page 2 of 11 E \Forms\Generoi Application - Public Heonng.aoc C1 G FEE PAID: (See Fee Schedule) ACCEPTED BY: ' 20 PBA 1 /02 ,%W The Town of Fountain Hills LEGAL DESCRIPTION �' �� `_1 '� I Plat Name Block Lot PROPERTY ADDRESS 1 J i1't-o cam_ c'v�:,,, y L-k-,N3 r4� PARCEL SIZE (Acres; ' 3 ASSESSOR PARCEL NUMBER NUMBER OF UNITS PROPOSED t TRACTS EXISTING ZONING: I� l S�� PROPOSED ZONING Application Page 3 of 11 E \Forms\Genercl Application - Public Hearing.cioc 24 KARAT HOMES, LLC Roc #160555 January 21, 2004 Town of Fountain Hills Fountain Hills, AZ 85268 RE: Parcel I, Lot 17 Firerock Country Club Drive Per attached application: 1. There will be no exterior evidence of the cut 2. The home straddles the ridge, the cut will reduce the overall height of the building 3. It will reduce the slope of the driveway below 18% to approximately 15% 4. It will also help the overall esthetics of the home, especially from the rear in maintaining maximum 6' retaining walls Thank you for your consideration! Jim Canning 14934 E. Pinnacle Ct., Scottsdale, AZ 85268 Phone: 480-837-5047 Fax: 480-837-5014 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Submitting Department: Admin Consent:❑ Regular:® Meeting Date: 03/18/2004 Contact Person: Julie Ghetti 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 Area ❑ 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 Ordinance 04-06 approving the Civic Center Phase II funding source. Staff Recommendation: Approve Fiscal Impact: Yes $5.4M Purpose of Item and Background Information: A professional financial consulting firm was hired at the suggestion of Councilwoman Ralphe to provide the Council additional statistics and expert testimony on options for financing the Civic Center Phase II project. The firm of T.L. Hocking & Associates LLC has prepared an analysis and recommendation for financing the project and considering the Town's adopted debt policy; the report is included as part of the agenda material. Also included is Ordinance 04-06 authorizing the Town Manager to take the necessary steps to initiate the process for the funding alternatives, including cash and bonding and a copy of the debt policy. List All Attachments as Follows: Ordinance No. 04-06, report from T.L. Hocking & Associates, LLC, and debt policy. Type(s) of Presentation: PowerPoint Signatures of Submitting Staff: Budget Review (if item not budgeted or exceeds budget amount) \i-r 6164 Town Manager / Designee \\earth\jghetti\wpdata\agenda cover sheeti.doc Bender, Bev From: Sent: To: Subject: EJ 04-06 Civic Center Funding.13A... Susan, McGuire, Andrew Wednesday, March 17, 2004 4:45 PM Ralphe, Susan Re: your input requested I have only changed the caption to reflect the multiple issues set forth in your ordinance. The remainder of the text is unchanged, only formatted. I will ask Bev to ensure that all Councilmembers will have a copy in their boxes. Please let me know if you have further questions. Andrew >>> <Seralphe@aol.com> 03/16/04 02:35PM >>> Hi Andrew, Would you take a look from a legal standpoint at the attached alternate version of proposed Ordinance No. 04-06? Thanks in advance for your assistance. I look forward to receiving your input in advance of Thursday's meeting. Respectfully, Susan 1 TOWN OF FOUNTAIN HILLS OFFICE OF ACCOUNTING SUPERVISOR INTER OFFICE MEMO TO: Honorable Mayor and Town Council DT: March 12, 2004 THROUGH: Timothy Pickering, Town Manager FR: Julie A. Ghetti, Acco nting Supervisor RE: Ordinance No. 04-06 — Civic Center Administration 1 Phase II Financing At the suggestion of ouncilwoman Susan Ralphe, staff contacted a professional outside financial consultant to analyze options for funding phase II of the Town civic center. The firm of T.L. Hocking & Associates LLC was hired and has made a recommendation based on the analysis of the Town's current and future financial situation. Mr. Hocking has recommended that the Town fund the project with 63% debt financing and cash for the balance; a copy of his report is attached. Page 9 of the report provides a summary of the estimated collections of the 0.3% mountain sales tax and the combined annual debt service payments for FY2005 through FY2019. The schedule also includes a projection of the cumulative remaining fund balance which will continue to accrue to $4.2 in FY2014 at which time the 2001 bonds can be retired in full. Ordinance No. 04-06 is the initial step in authorizing the Town Manager to begin the process of establishing the funds for the project, utilizing debt financing for a portion, and stipulating the dedicated revenue source for repayment as required by the Town's debt policy. If approved, the Town Manager will work with staff, bond counsel, and the investment banking team to prepare the ordinance authorizing the sale of the bonds. ORDINANCE NO.04-06 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING FUNDING SOURCES FOR THE CIVIC CENTER PHASE II PROJECT. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council") amended the Town of Fountain Hills (the "Town") Financial Policies to include a new section, entitled "Debt Policy" (the "Policy"), on August 21, 2003, in Resolution No. 2003-50; and WHEREAS, the Policy provides for intergenerational equity through debt financing and a "pay-as-you-go" philosophy with respect to capital improvement projects; and WHEREAS, the Town Council has undertaken the capital improvement project to complete the Civic Center Phase II (the "Project"); and WHEREAS, the Town Council desires to fund the Project with a combination of "pay- as-you-go" and debt financing; and WHEREAS, on August 3, 2000, the Town Council adopted Ordinance No. 00-12, increasing the Town's transaction privilege tax by 0.4% (the "Tax Increase"), 0.3% of which was designated for McDowell Mountain preservation (the "Mountain Portion") and 0.1% of which was designated for downtown development; and WHEREAS, the Town Council subsequently issued bonds to purchase real property in the McDowell Mountains (the "Mountain Bonds"); and WHEREAS, the Mountain Portion of the Tax Increase generates an amount (the "Tax Surplus") well in excess of the debt service payments required for the Mountain Bonds; and WHEREAS, the Town Council desires to use the Tax Surplus as a source of revenue for debt financing to fund a portion of the Project. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Town Council hereby authorizes partially funding the Project with the portion of the Tax Surplus generated after the date of this Ordinance, not to exceed 1/3 (0.1 %) of the Mountain Portion of the Tax Increase. SECTION 2. That, in no event shall such utilization of a portion of the Tax Surplus impair the Town's ability to (i) meet its obligations with respect to retiring the Mountain Bonds or (ii) retire the Mountain Bonds prior to their scheduled pay-off date. 9196.001\..\04-06\Civic Center Funding.vldoc 4-8-04-1 TOWN OF FOUNTAIN HILLS OFFICE OF ACCOUNTING SUPERVISOR �.• INTER OFFICE MEMO TO: Honorable Mayor and Town Council DT: August 15, 2003 FROM: Julie Ghetti, AccoMnting Through: Timothy G. ickering, Town RE: Resolution 2003-50 Amending Town Manager Financial Policies If adopted, the attached Resolution 2003-50 will amend the Town of Fountain Hills Financial Policies as adopted in May, 2003 to include a new section entitled "Debt Policy". The debt policy section is intended to provide guidance to the Council and staff in setting forth the parameters for issuing and managing debt, particularly as it relates to the five year capital improvement program. The resolution is not an indication that the Town intends to issue any debt in the near future, rather it is a continuation of the Town of Fountain Hills' commitment to maintaining a sound debt position and credit quality protection. The proposed debt policy was drafted with the assistance of several surrounding municipalities (Scottsdale, Avondale, Paradise Valley and Avondale) as well as the Government Finance Officers Association (GFOA). A summary of the policy follows: • The overall debt management policy is to ensure that financial resources are adequate in any economic situation so that the Town's ability to pay the debt when due is not at risk. • Current operating costs and short-term capital projects will be funded through current resources; long term debt will be reserved for capital items with a useful life of ten (10) years or more. • The policy promotes a philosophy of "pay-as-you-go" for most capital items. • The policy requires that a five year capital spending plan be prepared during the annual budget process outlining the specific capital projects and funding sources. • The capital project appropriations must be approved by the Town Council and have a cost greater than $50,000. • If a capital project is financed with debt, the debt cannot exceed the life of the project or asset. • When debt financing is considered a debt capacity analysis will be prepared that shows that the additional debt will not negatively impact the Town's financial condition. L • The process for issuing debt and obtaining Underwriters and Paying agents/registrars is based on competitive bids. ` • The Town will comply with all State and Federal laws regulating the issuance of debt. • The Town will seek to maintain and, if possible, improve the bond rating that is currently in effect. ` If approved the revised Financial Policies will be submitted to Moody's Investors Service for their review relative to the Town's Aa2 bond rating. Staff recommends approval of the Resolution 2003-50 amending the Town of Fountain Hills Financial Policies to include the section "Debt Policy". DEBT POLICY The purpose of this debt policy is to provide for the preservation and enhancement of the `MW Town's bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions and required disclosures to investors, underwriters and rating agencies. The overall debt management policy of the Town of Fountain Hills is to ensure that financial resources are adequate in any general economic situation to not preclude the Town's ability to pay its debt when due. These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Constitution, State Statutes, federal tax laws and the Town's current bond resolutions and covenants. The Arizona Constitution limits a city or town's bonded debt capacity (outstanding principal) to certain percentages of the Town's secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other general-purpose project. General 1. The Town will use current revenues to pay for short-term capital projects, repair and maintenance items and will reserve long-term debt for capital improvements with useful lives of ten (10) years or more. The Town will not use long-term debt to fund current governmental operations and will manage its cash in a fashion that will prevent any borrowing to meet working capital needs. However, exclusive reliance upon pay-as-you-go funds for capital improvements requires existing residents to pay for improvements that will benefit new residents who relocate to the area after the expenditure is made. Financing capital projects with debt provides for an "intergenerational equity", as the actual users of the capital asset pay for its cost over time, rather than one group of users paying in advance for the costs of the asset. Where there is a benefit to all future residents debt financing should be given consideration 2. To increase its reliance on current revenue to finance its capital improvements, and promote a "pay-as-you-go" philosophy, the Town will appropriate each year a percentage of current revenues to maintain a minimum 10% of average actual General Fund revenues for the preceding five fiscal years in the Designated Unreserved Fund. l\eaithU'IR�PI7ATP►�Deli; Po�icy.doc Capital Improvement Plan I. As part of the budget process each year the Town will prepare a capital spending plan that provides a detailed summary of specific capital projects for the five fiscal years subsequent to the fiscal year presented. The plan will include the name of the project, project schedule, capital cost by fiscal year and a recommended specific funding source. The five year capital improvement plan will be developed within the constraints of the Town's ability to finance the plan. 2. The Town Manager and Department Directors will develop formal ranking criteria that will be used in the evaluation of all capital projects. The program ranking criteria will give greatest weight to those projects which protect the health and safety of its citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority and projects with a useful life of less than five years shall not be eligible for inclusion in bond issues. I Lease purchase financing shall only be undertaken when the project is considered essential to the efficient operation of the Town or to remove expenditures that would exceed the State imposed expenditure limitation. The Town Manager. or designee shall determine that pay-as-you-go expenditures do not cause the state imposed expenditure limitation to be exceeded in any fiscal year. 4. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, a dedicated source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town. The Town will seek grants to finance capital improvements and will favor those projects which are likely to receive grant money. 5. All capital project appropriations and amendments to the capital improvement plan must be approved by the Town Council. 6. The capital plan will include all equipment and facilities with a useful life of greater than ten years and a cost greater than $50,000. Debt financing shall not exceed the useful life of the infrastructure improvement or asset. k\, ri \WheW%WPDATAO-b Polirydm Financing Alternatives I. Financing alternatives are listed below but are not limited to: a) Grants b) Developer Contributions c) General Obligation Bond — requires voter approval, supported by an ad valorem (property) tax d) Revenue Bonds — repaid with revenue stream (HURF, revenue generated by project) e) Municipal Property Corporation Bonds — repaid with a dedicated revenue source f) CFD or Special District Bonds — supported by an ad valorem property tax g) Capital Leases — repaid within operating budget h) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years 2. Town Debt Service costs (GO, Revenue Bonds, MPC, Leases) shall not exceed 20% of the Town's operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID), Community Facility District (CFD) and Special District debt service is not included in this calculation because it is paid by district property owners and is not an. obligation of the general citizenry. Separate criteria have been established and included within the Town's CFD policy. 3. In accordance with requirements of the State of Arizona Constitution, total �Vw bonded debt will not exceed the 20% limitation and 6% limitation of the total secondary assessed valuation of taxable property in the Town. 4. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. cp 5. Where applicable, the Town will structure General Obligation bond issues to create level debt service payments over the life of the issue. The goal will be to strive for a debt repayment schedule to be no more than fifteen (15) years; at no time will the debt exceed twenty-five (25) years. 6. Refunding bonds will be measured against a standard of the net present value debt service savings exceeding 3% of the debt service amount of the bonds being refunded, or if savings exceed $750,000, or for the purposes of modifying restrictive covenants or to modify the existing debt structure to the benefit of the Town. Refinancings undertaken for other reasons should proceed only when the advantages have been clearly shown in a cost/benefit analysis of the transaction. �vahett WPOA,r4De rbffi yi. o *40W 7. The Town will seek to maintain and, if possible, improve the current bond rating in order to minimize borrowing costs and preserve access to credit. 8. An analysis showing how a new issue combined with current debt impacts the Town's debt capacity and conformance with Town debt policies will accompany every future bond issue proposal. The debt capacity analysis should reflect a positive trend and include: a) percent of debt outstanding as a percent of the legal debt limit b) measures of the tax and revenue base c) evaluation of trends relating to expenditures and fund balance d) debt service as a percentage of assessed valuation e) measures of debt burden on the community f) tax-exempt market factors affecting interest costs g) debt ratios 9. Municipal Property Corporation and contractual debt, which is non-voter approved, will be utilized only when a dedicated revenue source (e.g. excise taxes) can be identified to pay debt service expenses. The project to be financed will generate net positive revenues (i.e., the additional revenues generated by the project will be greater than the debt service requirements). 10. The Town's privilege tax to debt service goal will be a ratio of at least 3.5:1 to ensure the Town's ability to pay for long term debt from this elastic revenue source. Issuance of Obligations I. The Town shall select the Underwriter and the Paying agent/registrar for each debt issuance based on competitive bid. The underwriter must be a firm domiciled in Arizona with an office in the Phoenix area and a record of prior working relationships. 2. The request for proposals process will be designed to select the service providers that offer the Town the best combination of expertise and price. The Town is not required to select the firm offering the lowest price, but a report must be prepared by the Town Manager providing justification to the Town Council for a recommendation when other than the lowest bidder is chosen. The review of all proposals submitted shall be the responsibility of the Town Manager. 3. The Town of Fountain Hills will use competitive sales as the primary means of selling new General Obligation or revenue bonds that are repaid through ad valorem (property) taxes. Negotiated sales will be permitted for all other debt issues when it is expected to result in a lower true interest cost than would a competitive sale of that same date and structure or there is evidence of volatile market conditions, complex security features, or another overriding factor. 4. The Town Manager or designee and Town Attorney will coordinate their activities to ensure that all securities are issued in the most efficient and cost- effective manner and in compliance with the Town's governing statutes and regulations. The Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. The Town Attorney will review all documents related to the issuance of securities by the jurisdiction. 5. The Town will seek a rating on all new issues which are being sold in the public market if economically feasible. 6. The Town will report on an annual basis all financial information and/or notices of material events to the rating agencies and Nationally -Recognized Municipal Securities Information Repositories (NRMSIR'.$). The annual report will include but not be limited to the Town's annual Comprehensive Annual Financial Report (CAFR). 7. The Town will require any institution or individual investing monies .as an agent for the Town to do so in a manner consistent and in compliance with the Town's adopted Investment Policy. 8. The Town will provide detailed draw schedules for any project to be funded with borrowed monies. The Town will invest the proceeds or direct a trustee to invest the proceeds of all borrowings in a manner that will ensure the availability of funds as described in the draw schedules. 9. The Town acknowledges the responsibilities of the underwriting community and pledges to make all reasonable efforts to assist underwriters in their efforts to comply with SEC Rule 15c2-12 and MSRB Rule G-36. tkaithUGtuthl�PDATA\[)eb� Poliry:do'c RESOLUTION NO. 2003-50 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES BY INCLUDING A SECTION RELATING TO THE TOWN'S DEBT POLICY. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "To«n Council") adopted written financial policies for the Town of Fountain Hills (the "To-VNn") on May 1, 2003 (the "Financial Policies"); and WHEREAS, the Town Council reserved within the Financial Policies a section relating to a debt policy to be adopted by the Town Council at a later date; and WHEREAS, the Town Council desires to amend the Financial Policies to incorporate the Town's debt policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA as follows: SECTION 1. That the "Town of Fountain Hills Financial Policies" is hereby amended to include the debt policy attached hereto as Exhibit A and incorporated herein by reference. r SECTION 2. That the Town Manager is hereby authorized and directed to take all steps necessary to ensure that the Town of Fountain Hills Financial Policies are amended and that the debt policy is implemented and applied to the Town's financial management. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, August 21, 20,03. FOR THE TOWN,OF FOUNTAIN HILLS: 1 J. Ni REVIE Y: C- 7 Tim G. Pickering, Town Manager 9196 001\_\ Debt. Policy. res.doc 5-14.03-1 ATTESTED TO: APP OVED AS TO FORM: AftTrew J. McGuire, Town Attorney TMAing Associates «c MUNICIPAL FINANCE CONSULTANTS MEMORANDUM DATE: March 10, 2004 TO: Tim Pickering Town Manager Julie Ghetti Accounting Supervisor FROM: Tom Hocking TLHocking & Associates LLC SUBJECT: Civic Center - Phase II Financing Recommendation Pursuant to our agreement, we have analyzed the financing options available to the Town of Fountain Hills (the "Town' to construct the Civic Center — Phase II project. You will find attached a report which provides you with a recommendation of a preferred financing option. Upon your review of this report I will be available to answer any questions you or the Town Council may have. It was a pleasure working with you and your staff on this project and I appreciate the efforts you made to provide any information we needed. I look forward to working with the Town again. P.O. Box 10097 • Phoenix, Arizona • 85064-0097 Phone 480.368.1010 • Fax 480.368.1011 • E-mail tlhocking@msn.com I T11dAing �Assodatesa MUNICIPAL FINANCE CONSULTANTS TOWN OF FOUNTAIN HILLS CIVIC CENTER — PHASE II FINANCING ANALYSIS REPORT Purpose of Report This report provides an analysis and recommendation of a financing plan for the construction of the Town of Fountain Hills (the "Town' Civic Center — Phase II project. Included within this report is an analysis of the Town's current financial resources, existing debt obligations and a forecast of future revenues. Based on the Town's current financial position, bond credit rating and Council adopted fiscal and debt management policies, we have recommended a financing plan that we believe will provide the greatest financial flexibility and meet the Town's need to conserve its capital resources. Scope The scope of this report is limited to the analysis of the Town's ability to fund the construction of the Civic Center project. In order to develop the recommended financing plan we reviewed and relied upon certain financial information and sources provided by the Town along with information independently obtained from other sources. We did not verify the accuracy of the information provided, but believe it to be reliable. Current Leased Property Currently the Town leases municipal office buildings consisting of approximately 42,000 sq. ft. This lease is an operating lease in which the Town receives no equity benefit in the building and the term of the lease is month to month with a termination date of June 30, 2005. This unsigned lease can be cancelled by the Lessor/Owner with 30 days advance notice to the Town. It is our understanding that the annual rental payments on the building are approximately $657,000, including current lease payment of approximately $402,000; $100,000 for taxes and $155,000 for operating costs. The lease payments and operating costs are budgeted and paid out of the Town's General Fund. Cash Management Considerations Currently the Town is expending public funds on the existing Town Hall as a non -performing asset. Lease payments are being made with no equity being created. Further, as a public entity, the Town should be exempt from property tax. However, a portion of the lease payments are to pay the property tax on this privately owned building. Therefore, not only will future payments on a Town —owned facility be significantly less than current costs, but those payments will be for a tangible, appreciable asset. P.O. Box 10097 • Phoenix, Arizona • 85064-0097 Phone 480.368.1010 • Fax 480.368.1011 • E-mail tihocking@msn.com Town of Fountain Hills Civic Center — Phase II Financing Analysis Report Page 2 of 15 The Proiect As a result of the uncertainty of the lease and in anticipation of the termination of the lease, the Town has entered into a "design/build agreement' to construct a new two-story 31,200 sq. ft. Civic Center on property owned by the Town (the "Project"). The total estimated cost of the Project is $5.3 million, including architectural, furnishing and contingency amounts. The site is located on the southeast corner of Avenue of the Fountains and La Montana Drive. Current Outstanding Debt Obligations In order to evaluate the Town's capacity to finance this project, it was necessary to review the current debt obligations that may have existing liens on revenue used to pay debt service. Therefore, the following is a brief description of debt obligations that are secured by the Town's excise taxes. The Town currently has two (2) Excise Tax Revenue bond issues outstanding issued by its Municipal Property Corporation ("MPC'�. The following is a brief description of each of those debt obligations. Series 2000 Bonds - $4, 680, 000 Purpose — These bonds, originally issued in the principal amount of $4,680,000, were for the purpose of financing the Town's Community Center. The 13-acre site of the Community Center will also accommodate the Project the Town proposes to construct. The current outstanding amount of the Series 2000 Bonds is $4,230,000. Term — The Series 2000 Bonds were dated July 1, 2000 and are paid in generally level annual payments from 2001 to 2020 (see debt service schedule below) Security and Source of Payment — The Series 2000 Bonds are secured by the Town's Excise Taxes. Such taxes include: Town's total sales tax; unrestricted fees, licenses and miscellaneous income; State -shared sales taxes; State -shared income taxes; and the Town's bed taxes and other income. The Town pays debt service on these bonds from its General Fund revenues. There are no specific funds earmarked for payment on these bonds. Town of Fountain Hills Civic Center - Phase II Financing Analysis Report Page 3 of 15 Current Outstanding Debt Service Requirements $4,680,000 Town of Fountain Hills, Arizona Municipal Property Corporation Municipal Facilities Revenue Bonds Series 2000 7/1/2004 $150,000 $225,313 $375,313 7/1/2005 175,000 217,963 392,963 7/1/2006 175,000 209,388 384,388 7/1/2007 175,000 200,638 375,638 7/1/2008 200,000 191,888 391,888 7/1/2009 200,000 181,888 381,888 7/ 1/2010 225,000 171,888 396,888 7/1/2011 225,000 160,356 385,356 7/1/2012 230,000 148,544 378,544 7/1/2013 250,000 136,469 386,469 7/1/2014 275,000 123,344 398,344 7/ 1/2015 275,000 108,563 383,563 7/1/2016 300,000 93,438 393,438 7/ 1/2017 325,000 76,938 401,938 7/1/2018 325,000 59,063 384,063 7/1/2019 350,000 40,781 390,781 7/1/2020 375,000 21,094 396,094 Totals $4230,000 $2,367,556 $6,597,556 Series 2001 Bonds - $7,750,000 Purpose - These bonds, originally issued in the principal amount of $7,750,000, were for the purpose of financing the acquisition of 200 acres of land for mountain preserve purposes. T'he current outstanding amount of the Series 2001 Bonds is $7,200,000. Term - The Series 2001 Bonds were dated December 1, 2001 and are paid in generally level annual payments from 2001 to 2021 (see debt service schedule below). Security and Source of Payment - Similar to the Series 2000 Bonds, these bonds are secured by the Town's Excise Taxes. However, in this case, .3% of the Town's Sales tax rate of 2.6% is earmarked for the payment of these bonds Town of Fountain Hills Civic Center - Phase II Financing Analysis Report Page 4 of 15 Current Outstanding Debt Service Requirements $7,750,000 Town of Fountain Hills, Arizona Munidpal Property Corporation Munidpal Fadlities Revenue Bonds Series 2001 7/1/2004 $275,000 7/1/2005 275,000 7/1/2006 300,000 7/1/2007 315,000 7/1/2008 325,000 7/1/2009 325,000 7/1/2010 340,000 7/1/2011 360,000 7/1/2012 375,000 7/1/2013 400,000 7/1/2014 410,000 7/1/2015 425,000 7/1/2016 455,000 7/1/2017 475,000 7/1/2018 500,000 7/1/2019 520,000 7/1/2020 550,000 7/1/2021 575,000 Totals $7,200,000 Current Available Revenues $321,661 $596,661 313,411 588,411 303,786 603,786 293,286 608,286 281,474 606,474 268,474 593,474 255,474 595,474 241,449 601,449 225,969 600,%9 209,469 609,469 191,469 601,469 173,091 598,091 152,831 607,831 131,219 606,219 108,656 608,656 83,656 603,656 57,656 607,656 29,469 604,469 $3,642,500 $10,842,500 A review of the Town's Excise Taxes shows a consistent rate of growth. Over the past seven years the Town's Excise Taxes have increased approximately 10% per year, although fiscal year 2001-02 saw an actual decrease in revenue of approximately 7%. The single largest component of the Excise Tax base is the Town's general sales tax. Sales taxes over that same period have increased at a rate of 20% annually. The schedule on the following page illustrates historical and projected excise tax revenues. Of the total tax rate of 2.6%, the Town earmarks .3% for the payment of debt service on the Series 2001 bond issue. Since this bond issue was for the purpose of acquiring mountain preserve land, those earmarked funds are viewed as a dedicated source of revenue for that debt service. As a result of the significant growth of this dedicated revenue source there is a significant amount of excess revenue after debt service has been paid. Town of Fountain Hills Civic Center — Phase II Financing Analysis Report Page 5 of 15 Also shown below are projected Excise Tax collections. Although no assurance can be given that these revenues will be realized when expected, they do appear to be conservatively estimated based upon historical collections. Historical Excise Tax Collections category 1997 1998 1999 2000 2001 2002 2003 Town Sales Tax $2,664,923 $2,920,084 $3,394,152 $4,087,514 $4,923,174 $4,355,701 $5,151,872 State -Shared Sales Tax 998,459 1,054,548 1,130,422 1,242,559 1,320,401 1,559,318 1,582,535 State Revenue Sharing 1,071,161 1,210,113 1,412,704 1,567,610 1,645,268 2,110,536 2,153,635 Utility Fees 86,840 103,748 118,407 131,926 125,982 130,694 152,542 Licenses and Permits 1,770,347 1,961,718 2,472,215 2,569,472 2,177,614 1,351,209 1,308,747 Fines and Forfeitures 209,485 208,900 259,453 293,970 310,359 265,605 195,091 Totals $6,801,215 $7,459,111 $8,787,353 $9,893,051 $10,502,798 $9,773,063 $10,544,422 Source: Town of Fountain Hills Projected Excise Tax Collections 2004 2005 2006 2007 2008 2009 Category Budget Estimate Estimate Estimate Estimate Estimate Town Sales Tax $6,459,293 $7,249,767 $7,658,126 $8,066,484 $8,474,844 $8,883,205 State -Shared Sales Tax 1,575,000 1,607,343 1,705,289 1,766,055 1,861,981 1,957,907 State Revenue Sharing 1,826,315 1,886,949 1,996,201 2,105,452 2,214,704 2,323,995 Miscellaneous 150,000 136,000 137,100 153,200 118,100 140,400 Licenses and Permits 1,601,955 1,288,400 1,465,400 1,947,400 1,713,900 1,408,300 Fines and Forfeitures 212,000 212,000 216,240 220,565 224,976 229,476 Totals $11,824,563 $12,380,459 $13,178,356 $14,259,156 $14,608,505 114,943,283 Source: Town of Fountain Hills Proiect Funding Options The analysis of the financing options for the Civic Center project consists of three (3) funding scenarios. Each of these options includes estimates of debt financing and a calculation of the excess revenues from the .3% sales tax earmarked for mountain preserve bonds to be used to fund this debt service. The following is a summary of funding sources for each option: Option 1: Option 2: Option 3: 63% Project 500/o Project 100% Project Financing Financing Financing (Deferred Debt Service) (Level Debt Service) (Level Debt Service) Town Cash Contribution $1,981,000 $2,620,000 $-0- Principal Amount of Bonds (1) 3,510,000 2,845,000 5,550,000 Total Project Costs $5,465,000 5.550.000 (1) Includes costs of issuance and capitalized interest. Town of Fountain Hills Civic Center — Phase II Financing Analysis Report Page 6 of 15 • Option 1 assumes that approximately 63% of the Project costs are financed. The debt service payments are structured to increase with the growth of the sales tax base. Debt service is layered so as to produce at least $200,000 per year of net excess revenue in the .3% sales tax earmarked for mountain preserve bonds. (See Appendix for debt service and source and use of funds.) • Option 2 assumes that approximately 50% of the Project costs are financed. The debt service payments are structured to be level. Therefore the net excess revenues in the .3% sales tax grow each year in relation to the increase in tax collections. (See Appendix for debt service and source and use of funds.) • Option 3 assumes that the entire Project is financed. In this scenario there is no Town cash contribution. The debt service payments are level. However, since annual debt service payments are significantly higher than the other two options, the available revenue from the .3% sales tax in the first four (4) years may not be sufficient to cover this debt service. (See Appendix for debt service and source and use of funds.) The schedules on the following pages illustrate the differences between each option. tf 0 L fu rn ra d T C I c C Ln �Qr. wa) 0 0 U u n c u C O o'> c fu () IL d on •_ U+ C) LO 1.0 00 O o O '- m C Lfl Lf) OLr) LP) O O O v lYl tL NO 000 M C) C) M "" l O , n O CD O O y~ th e C) r4 Cop 000'00 Oa u O > \ i ra fa O o O Ln V1 fr 0 ra Ln V) Ln C) v Cf ro r C o o O O r� o Ln O i 00 N O O r� N ai} C C N C 4? �v a,LO U) °ram' 00� �M v_ C Q t �0 00 n N (V N Lo M Lr) O N N ,_y --+ -m C r ( t{} tPr tiT t+ 84 Q1 Ly 0 Nl C .F O !n Ln N c C c o +, a > c d a of a ro= O u1 u ;D ra ooQo 3 Im v_ U. = •_ • Ln 0 0 LT 0T O N N N CD0 O o Ln O" O t0 Cl O LOr) LD a �i 00� N �� 5 O T u .a .a m : = +�-�p 0 L' - LO M M 00 V O a1 >> 7 �.�r O V M .--L th tfT tPr p Opp^� C C C 0 0 0 a i 0 O lT Q1 O QJ L Ln Ln n ON M to ~o 0 0 Vf V' N � M M i Ln T Ln ro Y C Ln }J O ULn a1 N O o v CO U O ra Ln U O c c_ 0 U Ln .- CU N v vj ra toU c a� 0 LnW ° m a v a O O �, i- U d O O� 0 w : O C C C 'J Q '0 z O_ c O ¢ m'o-0-0 D Ln �� u� w 0 °� . forum o v Q� E a) a 0 c c 0 J E E E E d C U E� c ra O QD ra 0 'C ; W E O O E to F- W W W �I- a W ti) E Cl- 1n > 9 W ¢ W Q � ��� .i 0 G O IIIIIIiIIiw ^ N W .� Oppp a.�+ 1pp(�f� .r pmpy Y1 M Vl tlpl �Op� h m .-� C� �D W �-I Ec P F P O� n IO .Q.l M n P N t\ O O O O 0 0 0 O O O O O O O 0 O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 S O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 1l1 O Y1 O V1 O 1!1 Vl O IA O O - 111 to V1 Vl I(1 p N Q m m U� IO � M N I N W Q W IA OW Vf �O , O M N Q MP V1 O W O W M I� W 1p ut M N N N Al M M M M M M M �O Q lD 1D �O N I Q W V1 O 1� O M N Q M O W O WW tll �D P IlMl -+ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C C 0 0 0099888 0 0 0 0 0 0 0 0 0 0 0 11 �i v�Sry N Lr Lro o Lr oui o N N N M t+l M IN1 M .r .-I O� �O �D tD T o C O OMD N �D b� �- a In In 0 M Q^ N T P P O 9. N �D t0 �D P VOi omao �ppp uiv rvppl v w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o g S S o 0 0 0 0 0 0 0 0'0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 vio vi vi vioo oovi vi vioN uio M in n Q c v Q Q In In In r; O M �O ll W W W W W ll'1 Q �D N M cz W O+ W rvl to P Q O� I� O M M t+t M Q M iD � M�pp W W W W p Wp W W �O pPp �Op� P M W W M ti M T tWt b O] 00 EO �p N Q I+Pi- 10 P � O pp� O v5 M M � N v 0 0 0 0 0 0 0 0 0 0 ... 0 0 0 0 SSSSSSSSOSSoSSSg$ S3 - O lfl Vf Vf O O t!1 1!t O O ul O 1(1 v1 O vt O n M N N N N N N N M M M M M M O C u ppp In IOW 80.+rvM����mo�o til N fV N� S N N N N N N N N N N N N N n nnnr:nnnnnr:nnnnnnn x 10 am r\ 10 a,� 10 L, m NI r , D, M � rn O O f`l LO O N 00 N 10 'N M N O v' w N H x C V C V .Mi v CO 10 N •i ti LT v V ^+ O O N COV.4 N ID O M N fPr N} N � x 10 V' fV Ln n 7 N n oc M N tiM 00 00 O M .^i 0D0 Oi r 0 N Ln ID N M VR iH N V+ X n LTI00 fV ID r, O C) rl N V O T T N C� 10 C to ri ,u Q u o c N E C (� 0 a ._ LL 0 LL � x v y Q m to 'D 00 m O 00 O O dp N ti A G Ea SU LT O morn LD cc v�Nrv� (") C O oio e v N vt X O LD T � O fV 0, 00 N t\ O O Vl Lb O N n -T M CD D1 CD C) 10 V 16� N A,� N � x n N N n Ln O D V D v n V- 00 00 O Vl a00 W 00 D1 V) M C:.M � W M W N x M cn u Cl m n M N co 7 Cl � O M to 4 vs x x X C 10 10 O W N tll N M Vl n LD � 00 N 000111��I L''1 t0 LT n •--� 00 O O �y f`l .-i LD n LT LD n M f`^'1 V- C) C 01 M ~ C. N C.10f�1 ON N v- Da+ m W M M V} iA iR iR x X X m M O ID l0 l0 O O L!1 O M M n N co 000 ""' m co � O .~ t�"1 t0 LD 0� .--i O C. M O o7 v, Q� Lvj N O ID M N V} iR O D1 M 46� w x x x n M n n O O oc co O4 ,y fV V' `4 co ^ M N D� %D co O- .--i 00 N � rl o N N � r t'D' m LONh a 4 x X X n t0 V1 N M VJ Ln M .--L T O 00 y M O O D% ,. 00 T rL '-i L, M M O rn N lOD fh � .--i cD N , lD tD M N ID LT N ti ti fA Vi H X O N O O O V, ! ti O 7 V Ni Dn M O L, M T co N M 0 M O 40 VR Qi v a o > IVv N 1�� F- 'a U O m d Z N p h x V, d Q VI LL Z LO to H a p F OC o O V1 C I f0 7 C In Ln C O v V /0 aEi (U O p p Lo —0 LL 01� E 00 C° tp Ln v a C:w v C:O E U U c 'iif Ljj L j E_ w o "c '° Llxl Q io 3 rn v N E c E F-U LL n. Z JC2 W lY1U H F- W C X X 10 T D1 O Ln L, Vl O N 00 10 fV N "'" tp M O O lD y N n 'ti C O V N 00 M V- m M M Ln C Ln m v rn Mom: E a u to N 4 v+ � v Z O v X X lD 01 n N Ln 00 "- M Vl .-r NCL cl to N ',y O N a, a0 _ T f`'1 t\ co N lO C.DM N N DL C1 p L/f rl Vt b4 O CD iR .�i N L4 O N � N v ]O Ln ' X L, D, X m 0 O m C R ID M 7 L, Cl 00 Ln rl M 4 L, 'n 00 V- ti N ti is O C E> 0, .-+ l0 LI'1 N M N N 10 M N r i 10M yp N +/} 0) Doi W O {R N LO V ? C a C) p C N a � Q CL Q) of oo C, > N N it C > L VI ry (U Z D V N U N tJ a) Q> N to T C F .p p CO m OO Q 0 N O to N 3 Z u C v o In � N V E U 2 rapt 10 v > O N i N N r0 fn ~ O H N v 0 v- a E as 0 E o v'- v v E-0- 3 w LA > LL �o `—° X w Q �o o ^_ ^E Ern w Z H F�- 3 Z J lY W u W — O+ •"� �D W P P P O� 1p N M P� n P 06 U1 •-i cr ' N •-i P M P , ^ n ? N � �O Ilt �p •� N � M I1O1 � O lPh N 1(1 Ynl Ill I(l C P P C r1 1N�1 ry ry W W O; O N OW O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N��� O O ItOt n 0 vOi O� •v+ n o �p ON v' n n rP'1 vWi ry vWi vl ry b ry ry nLr o6 a v1 M n P vt O •+ �O n P N n � P .-i W iti •-i �D O� - n � O� � p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 vi vi o o vi pp o o o 0 0 0 n� W W •y t0 � P P P O� O� T O� .� .� O� �D N �D O� m mo oommoo Op1 p'gym oo°Jo n $`" O lD W N n n �p �D �p T M Ll1 1l1 Ih �D O .. M.o-m-NN-mn r~io�vni�v M M N NN- .y .r N O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 _- 0 -��000�o N N M r'1 M P P P P P IA V1 1ll N W M W W W n� tD n �O W W W P Vl P O� O n o n m m n m m T W- O- Opp LO ' M M M M M M P r'1 m t•'1 1101 x x C R 7 10 M� 1, M� O O N M ON am) ti 0 -+ Cl 0 1D V7 M U1 N R M Ul 7 M N tp VJ N {Pr M R m rn 01 rl k6 4A X x 10 M 1� O n M M 111 CD ,zrM N M� m 10 N .-� a) 1D M m rl) Cl) en R a1 r1 iPr X X 10 T N 00 -T 10 M 10 a)V n n n N � m n M 7 m �--� n N ti m .fir ID U'1 01 V7 Lr m m m T V- r,j U) V 'NT N M M al H M 4A, iR x x N .ti V' n a1 m N co N Ln M V- CO O fl M .-� M .^-� V7 fV M Ul m CD tiO1 'o N n a1 N tR iii lA X x .-� 1, O 00 V1 N 10 VI N Cl CD � l0 7 lMl) M Vc M 10 m N a)N-� N O m 1D N C C ~ N V. ti C C , j ; O M O a+ l vs to M tr+ aL 1 LL 'L y V 'O N U) 10 Q1 M 10 X 01 X 10 1, V7 Uco co N c a, Ln EEa QI U a) m 10 to .-i Ni m p O D _ R N N N N AA ,n a d C x x rnmo rl 10 ID rn^ 144 o C.6 N 1', U1 � O ll) M Vc N 10 CC) ko O 10 V. Om0 N Vt ti 46R M X X M ti LM O a) r, N ID m rn Como m cm M a, T O O 1l~ m a, I m 0 H} Vi .Ny iR 0) o Ln x a, x C a _V 01 `� O d U Z Ln 0 > = x� v�i� N Ln~ a C O o w u 'rCoa i. vov v m "'01 U{ Z Z v p N v C i 7 C O v 2 v LP Q w O a g V �K ~ U v 0) C ro v� E a0 C c w> w- m c .� W Q io W F-UILa_ MJZ C' LDU ~ H W x x 10 UJ 0 0 0 P') a1 M I, 0, M Ln m 10 l0 O^ T ~ rn a1 I� C N N V' N 1D N -IDVt r, a, N M Vi X x UO l0 O N m 7 111 M 1� .--i M a, N N M .-+ a) m M M tD lc 1� a1 O) ti N ti .ti ti U] 'D N M 464 iR O a, H Ioh X x 1D a1 1� M M c0 m co N O N M .-i lo O) m 111 N 100 UJ N In VR VR a1 N _ X X ko v- M .--i M N ON N oN co l�l1 r1 m l,'1 Olq N f, ti N � � N a�1 N iH c X X 10 m Il M n C 1Il N M N oo l0 N O 10 ~ oo n ltl R l"1 a� C N l�A N rl)6, a r E N O N � a x x a vaial n oom M v-vm N rn nch cL �p x V: m� V a) a) O a) W N M N 1p 1D N M l!M) a, aft V p Vf Vi 4 ti w O V} L�M1 .fir {q y} N O Vf a, 7 U ` ) VQ o x o m C V' 10 n m a, r� r� �' c)m NLl 'o o? v m N 1D ,.y 3 E a>i o N O 1D N M cti W O +R VT .Nr Y 2o � M U A a N C O -o o O N N N O4 >c, N O uo V gj C a, aNl N a, Z o u `-° 12 oEll .. v u �i � v a�` aZ, X U7 a O c a o () y Ul T C CO LL _V aVl c) d U Q) 0 c U � a_N Z z � .E to o E O c ,E a� a,� - Z v �yy1w�� �oo�rp°p YJ N ~ v v n E V V N a 0 al j v� o _E ._ ° c �_ v _E a) c to N> W E v' w¢ �o :p v o 0 o iri Q i,i E E y� E LLJ z a, v v v L) H I" W .�....N....M...— a O P O M O n P P ry ti� m N otl e0 W O ry W m� P m O m �D m �D n P O ry P VJ O O N P O M O n P N P M N N m n m W OJ m N W N P M m O m O M _ W O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C C C C 0 C 0 0 0 0 0 0 0 0 C c C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 _ N � � N N O N ` O � ` vi ut V1 Vi u1 P n n OJ 00 m m 01 m O O O ti N M m llt m O vt O n ^ mO mut P P P �+ n P ✓1 O� � N P P P T P P P P P P P P P P N O n O vmi trail g O M P P P n P m M n m N 611 lin'1 0 o 0 0 0 o 0 o O o O o o O o 0 o O o O o 0 0 0 o O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - viovio vio�000vio vio vi o O P n P P P P m P P O tD rv�� b P � on m �d rim-+om-+coneofMn V �D m I � O P O N P '^ 00 N.. oIli 'nm � M .00 ... 0 ... 0 0 0 ... 0 b 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 vi oin ��noo�noo�n vi 000�no n N M M M tN+f rP'1 A M P P P P T VOI ✓1 v�l Vnt � m W CD W O O P m P 00 OD M P � M m �O OJ N W M IA P M P O� O O M M O n m O M M M of m W 0 m O� m l M M M M M M P M M N O x 1D V• N m V' M MV' O1� R .�-� � r' .ti M m V• al .Nr iR iA N � x N O n m N tD 'y in ? ul 1D C11 V' V' O 10 V' f, Ln V- n Arl N LL LL O L x 4, d A n 00 00 Ln rn O Q U N 01 N 1D V N rnool r� 7 G •` ' O 10 V' iPr {A �� N 0 x 0 10 c rn D1 CT1 0 N rIi O 1n to Vl O D1 M M O M N 10 OZ1 V, vt iR N L+ x Ln . V' 10 m O 10 V D1 O M 00 y m 00 O co CT a co m Cl m 0 � LIl � M {H N x tO m N r'• n 00 00 O 00 M N ~ m V' n cr CT � x O � N 11 m co 1) m N p 0 n M CD 10 V' 10 M x M M O M m m m 1D N d• N m 00 ID m x m In m 01 C71 In co Q1 ^a m N p I, ti<D S iR ti V} x 10 u0'1 OMO 00 M a; M d\ CO try x M 1D M O M In M 01 M 1D Ln 00 M M iR x Cl c0 CT CD O co 00 C o0 V' 1D T m O 'n 00 D M M M M iR iR .y M iPr 0) In x Cp VI � U U CK S U,v X N a C f0 1n •(n r F CO o rn v L in v v 3 Z � M c N-0� m j` C Q iv Z V N o t v N 2, a1 N (n F o 1� lL i " O v V v a 1� C M .--� O D U .i � ' m y c '� fO x OC U O > w w N Q y�� � 0 0 F c O CT w Q m ID i-u La � � 01 U �Z �� 1�/t W � c�'U O O in I- Hw x x 1D 10 O R 10 M MT N M In Ln O N O C) N m M 1� {A M V, x x 10 1D O 10 V' M M 10 10 Nm 7 '� CDN p 0 :1 m N V• CO 1, N-i10 1100 V'N-� 11 CT 7 VR {R z V+ x x 10 M M rn M N rl .N-� CT Cl N NO C CO CD O M co N 10 10 V' VR VR 10 V' 4A- z LH 64 x x M N M 1D M M N CO In m a, V' 0M0 0 �-+ 1, M V' m O rn vl N 10 V+ VT VNl V' x x10 c M O NC '� N 101 m O .-i m V' C N In V' D1 M V' D1 V' E OJ Vi O o x x v d V O 10 CT M r, m n 1D M O '� M V' N N lfxl .�-� V' ll(�1 0 CDrl M u1 C N tD10 V' N Q to M i/i ti yq O N N V} O N V V m L x x 0 O V' 1D r� V• ONO mv�l` N m Cr, [0 - C M V' m Cl 1/1 N N N 3 E Q� D1 N CT M 1D tD V' .Ni .N-i .ti cl .N•- � N C O O N O 0 a ° v rn a� C O12 v O pO 0 u v v u a •. ai .Z Z U-) o a > a i x u C ��j Y n jc v CCD, ° O v p c n u EO i0 Z Z U- 1n o o ; E m o N O 0 N p w . ai tO m �.1 v O _ }' v E ° � E > CL � 0 d E'0 w w aw n n ? QYa E wzFl2- o E E yo `"! ZC,� W U H H w — — — — Town of Fountain Hills Civic Center — Phase II Financing Analysis Report Page 14 of 15 Recommendation Although each of the funding options has advantages unique to themselves, it is our recommendation that the Town proceed with Option 1 — 63% Project Financing (Deferred Debt Service). We believe there are several significant reasons this option is preferred. The following is a summary if the key issues that differentiate this option from the others. Debt Management (Pay -As -You -Use) The current low tax-exempt interest rate environment makes debt financing attractive. Financing this Project will allow the Town to leverage lower cost capital and pay as the facility is used. The debt in this Option has been structured to rise with the growth in the sales tax base. As a result, the marginal increases in debt service have little impact on the net present value of the payment stream. You may note that there is an insignificant difference in the estimated net present value cost (see page 6) of any of these options. Dedicated Revenue Sources The Town's primary concern of identifying revenue sources can be addressed. As indicated above, we have identified the .3% sales tax earmarked for mountain preserve debt service to fund this Project. Identifying a revenue source for payment of debt service is consistent with the Town's Debt Management Policy. The growth in this tax creates additional capacity to fund other City assets. Additionally, this option allows for a minimum balance to be maintained through the term of the bonds. It would seem reasonable to simply reallocate the expenditures made on the currently leased building to debt service payments on the new Project. Since those funds are already being used for building purposes, albeit privately owned, it stands to reason that those same funds could be used for a publicly owned building as the same public service is being provided in either type of building. However, those lease payment expenditures are funded from the Town's General Fund. By reallocating these expenditures, the General Fund would loose that revenue source. Using these current expenditures, according the Town's Five Year Financial Plan, would only increase the existing $5 million deficit currently identified in the Plan. Preservation of Fund Balances It remains imperative that the Town's General Fund balances be preserved in this financing analysis. One of the key elements of the Town's financial health is the maintenance of appropriate fund balances. As the Town was recently successful in eliminating the Moody's "negative outlook" on the current bond rating, it will be important to structure a financing that does not impair that Fund Balance. With that in mind, Option 1 presents the best alternative. Option 2 has lower debt service, but requires additional cash contributions by the Town. This would cause the Town to use a portion of its Fund Balance to provide the necessary cash contribution to pay for the Project. Option 3, on the other hand, preserves the entire fund balance, however, it significantly increases the Town's debt burden and puts additional pressure on the General Fund with higher debt service. Town of Fountain Hills Civic Center - Phase II Financing Analysis Report Page 15 of 15 The Town should continue to fund the reserve funds at their current levels. As an aside, it may be beneficial to review this funding plan with Moody's before it is implemented. • Other Considerations As discussed herein, our focus on these financing options has been on excise tax supported debt. We did not pursue other debt structures, such as general obligation bonds or lease purchase obligations because of election requirements and higher financing costs, respectively. One of the other options we analyzed was refinancing the Town's current MPC bonds. However, because of the low investment rates required for the refunding escrow, the negative arbitrage eliminated any debt service savings. Although the Town has indicated that its Impact (Development) Fees are to be updated in the near future, it is recommended that those fees along with other fees for service be reviewed and updated, if necessary, on an annual basis. All user fees should be fully cost recovered. These adjustments will allow for capital projects to be funded on a regular basis. Additionally, balances can be accumulated more rapidly to allow for earlier funding of growth related infrastructure. Summary Based upon our review and analysis of the Town's current financial position, the most favorable manner in which to finance the Civic Center project is through a combination of cash and debt. Due to currently low tax-exempt interest rates and the policy to conserve fund balances, we believe it is prudent to have a slightly higher ratio of debt to cash. Our recommendation of financing a portion of the Civic Center with an excise tax -backed MPC bond issue with a gradually increasing debt service payment schedule allows for a manageable revenue source to be dedicated. As a result, we believe the structure we proposed in Option 1 provides the best balance between the Town's policy of "pay-as-you-go" and the reality to "pay -as -you -use". Appendix 9 SOURCES & USES Town of Fountain Hills Civic Center - Phase II Financing Plan 63% Project Financing - Deferred Debt Service Option I Dated 05/01/2004 Delivered 05/01/2004 SOURCES OF FUNDS Par Amount of Bonds.................................................................... TOTALSOURCES........................................................................ $3,510,000.00 $3,510,000.00 USES OF FUNDS Total Underwriter's Discount(0.500%)............................................ 17,550.00 Costs of Issuance............................................................................ 75,000.00 Gross Bond Insurance Premium ( 35.0 bp) ........................................ 16,476.57 Deposit to Capitalized Interest (CIF) Fund ........................................ 81,605.07 Deposit to Project Construction Fund .................................... 3,319,000.00 RoundingAmount........................................................................... 368.36 TOTALUSES................................................................................... $3,510,000.00 TLHocking & Associates LLC Public Finance Page 1 File = LEVELD—I.SF--LEVEL DEBT SERVICE OF350K 31912004 3: Z7 PM NET DEBT SERVICE SCHEDULE Town of Fountain Hills Civic Center - Phase II Financing Plan 63% Project Financing - Deferred Debt Service Date Principal Coupon Interest Total P+I CIF Net New D/S 7/01/2004 18,301 18,301 (18,301) - 7/01/2005 - - 109,804 109,804 (64,052) 45,752 7/01/2006 90,000 1.250% 109,804 199,804 199,804 7/01/2007 140,000 1.550% 108,679 248,679 248,679 7/01/2008 140,000 1.910% 106,509 246,509 246,509 7/01/2009 195,000 2.210% 103,835 298,835 - 298,835 7/01/2010 200,000 2.440% 99,526 299,526 - 299,526 7/01/2011 230,000 2.700% 94,646 324,646 - 324,646 7/01/2012 235,000 2.950% 88,436 323,436 - 323,436 7/01/2013 265,000 3.140% 81,503 346,503 - 346,503 7/01/2014 275,000 3.300% 73,182 348,182 - 348,182 7/01/2015 310,000 3.450% 64,107 374,107 - 374,107 7/01/2016 320,000 3.570% 53,412 373,412 - 373,412 7/01/2017 355,000 3.680% 41,988 396,988 - 396,988 7/01/2018 370,000 3.780% 28,924 398,924 - 398,924 7/01/2019 385,000 3.880% 14,938 399,938 - 399,938 Total 3,510,000 - 1,197,592 4,707,592 (82,353) 4,625,239 TLHocking & Associates LLC Public Finance Page 2 File = LEVELD-I.SF--LEVEL DEST5ERVICEOF350K 31912004 3:27 PM PRICING SUMMARY Town of Fountain Hills Civic Center - Phase II Financing Plan 63% Project Finandng - Deferred Debt Service Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 7/01/2006 Serial Coupon 1.250% 1.250% 90,000 100.000% 90,000 7/01/2007 Serial Coupon 1.550% 1.550% 140,000 100.000% 140,000 7/01/2008 Serial Coupon 1.910% 1.910% 140,000 100.000% 140,000 7/01/2009 Serial Coupon 2.210% 2.210% 195,000 100.000% 195,000 7/01/2010 Serial Coupon 2.440% 2.440% 200,000 100.000% 200,000 7/01/2011 Serial Coupon 2.700% 2.700% 230,000 100.000% 230,000 7/01/2012 Serial Coupon 2.950% 2.950% 235,000 100.000% 235,000 7/01/2013 Serial Coupon 3.140% 3.140% 265,000 100.000% 265,000 7/01/2014 Serial Coupon 3.300% 3.300% 275,000 100.000% 275,000 7/01/2015 Serial Coupon 3.450% 3.450% 310,000 100.000% 310,000 7/01/2016 Serial Coupon 3.570% 3.570% 320,000 100.000% 320,000 7/01/2017 Serial Coupon 3.680% 3.680% 355,000 100.000% 355,000 7/01/2018 Serial Coupon 3.780% 3.780% 370,000 100.000% 370,000 7/01/2019 Serial Coupon 3.880% 3.880% 385,000 100.000% 385,000 Total - 3,510,000 - 3,510,000 BID INFORMATION ParAmount of Bonds......................................................................................................... $3,510,000.00 GrossProduction............................................................................................................... $3,510,000.00 Total Underwriter's Discount(0.500%).............................................................................. $(17,550.00) Bid(99.500%).................................................................................................................. 3,492,450.00 TotalPurchase Price.......................................................................................................... $3,492,450.00 BondYear Dollars.............................................................................................................. $35,365.00 AverageLife..................................................................................................................... 10.075 Years AverageCoupon................................................................................................................ 3.3863768% NetInterest Cost(NIC)...................................................................................................... 3.4360022% TrueInterest Cost (TIC).................................................................................................... 3.4196459% TLHocking & Associates LLC File = LEVELD-I.SF--LEVEL DESTSER VICE OF 350K Public Finance 31912004 3:17 PM Page 3 SOURCES & USES Town of Fountain Hills Civic Center - Phase II Financing Plan 50% Project Financing - Level Debt 5ervice Option 1 Dated 05/01/2004 Delivered 05/01/2004 SOURCES OF FUNDS Par Amount of Bonds....................................................................... $2,845,000.00 TOTALSOURCES............................................................................. $2,845,000.00 USES OF FUNDS Total Underwriter's Discount(0.500%)............................................ 14,225.00 Costs of Issuance............................................................................ 75,000.00 Gross Bond Insurance Premium ( 35.0 bp) ........................................ 12,943.96 Deposit to Capitalized Interest (CIF) Fund ......................................... 62,004.22 Deposit to Project Construction Fund .................................... 2,680,000.00 RoundingAmount........................................................................... 826.82 TOTALUSES................................................................................... $2,845,000.00 TLHocking & Associates LLC Public Finance Page 4 File = LEVELD—I. SF -LEVEL DEBT SERVICE OF 150K per Yr 31912004 1:19 PM NET DEBT SERVICE SCHEDULE Town of Fountain Hills Civic Center - Phase II Financing Plan 5091b Project Financing - Level Debt Service Date Principal Coupon Interest Total P+I CIF Net New D/S 7/01/2004 13,905 13,905 (13,905) - 7/01/2005 - - 83,430 83,430 (48,668) 34,763 7/01/2006 175,000 1.250% 83,430 258,430 258,430 7/01/2007 175,000 1.550% 81,243 256,243 - 256,243 7/01/2008 180,000 1.910% 78,530 258,530 - 258,530 7/01/2009 180,000 2.210% 75,092 255,092 - 255,092 7/01/2010 185,000 2.440% 71,114 256,114 - 256,114 7/01/2011 190,000 2.700% 66,600 256,600 - 256,600 7/01/2012 195,000 2.950% 61,470 256,470 - 256,470 7/01/2013 200,000 3.140% 55,718 255,718 - 255,718 7/01/2014 210,000 3.300% 49,438 259,438 - 259,438 7/01/2015 215,000 3.450% 42,508 257,508 - 257,508 7/01/2016 220,000 3.570% 35,090 255,090 - 255,090 7/01/2017 230,000 3.680% 27,236 257,236 - 257,236 7/01/2018 240,000 3.780% 18,772 258,772 - 258,772 7/01/2019 250,000 3.880% 9,700 259,700 - 259,700 Total 2,845,000 - 853,274 3,698,274 (62,573) 3,635,702 TLHocking & Associates LLC File = LEVELD-I.SF--LEVEL DEBTSERVICE OF250Kper Yr Public Finance 31912004 1:29 PM Page 5 PRICING SUMMARY Town of Fountain Hills Civic Center - Phase II Financing Plan 5096 Project Financing - Level Debt Service Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 7/01/2006 Serial Coupon 1.250% 1.250% 175,000 100.000% 175,000 7/01/2007 Serial Coupon 1.550% 1.550% 175,000 100.000% 175,000 7/01/2008 Serial Coupon 1.910% 1.910% 180,000 100.000% 180,000 7/01/2009 Serial Coupon 2.210% 2.210% 180,000 100.000% 180,000 7/01/2010 Serial Coupon 2.440% 2.440% 185,000 100.000% 185,000 7/01/2011 Serial Coupon 2.700% 2.700% 190,000 100.000% 190,000 7/01/2012 Serial Coupon 2.950% 2.950% 195,000 100.000% 195,000 7/01/2013 Serial Coupon 3.140% 3.140% 200,000 100.000% 200,000 7/01/2014 Serial Coupon 3.300% 3.300% 210,000 100.000% 210,000 7/01/2015 Serial Coupon 3.450% 3.450% 215,000 100.000% 215,000 7/01/2016 Serial Coupon 3.570% 3.570% 220,000 100.000% 220,000 7/01/2017 Serial Coupon 3.680% 3.680% 230,000 100.000% 230,000 7/01/2018 Serial Coupon 3.780% 3.780% 240,000 100.000% 240,000 7/01/2019 Serial Coupon 3.880% 3.880% 250,000 100.000% 250,000 Total 2,845,000 - 2,845,000 BID INFORMATION Par Amount of Bonds ......................... Gross Production ............................... Total Underwriter's Discount (0.500% Bid(99.500%)................................... Total Purchase Price ........................... Bond Year Dollars .............................. AverageLife ...................................... Average Coupon ................................ NetInterest Cost(NIC)...................................................................................................... TrueInterest Cost (TIC).................................................................................................... TLHocking & Associates LLC Public Finance Page 6 $2, 845, 000.00 $2,845,000.00 $(14,225.00) 2,830,775.00 $2,830,775.00 $25,974.17 9.130 Years 3.2850871% 3.3398531% 3.3170706% File = LEVELD-I.SF--LEVEL DEBT SERVICE OF 250K per Yr 3/ 912004 1.29 PM SOURCES & USES Town of Fountain Hills Civic Center - Phase II Financing Plan 100% Project Financing - Level Debt Service Option 3 Dated 05/01/2004 Delivered 05/01/2004 SOURCES OF FUNDS Par Amount of Bonds....................................................................... TOTAL SOURCES............................................................................. $5,550,000.00 $5,550,000.00 USES OF FUNDS Total Underwriter's Discount(0.500%)............................................ 27,750.00 Costs of Issuance............................................................................ 75,000.00 Gross Bond Insurance Premium ( 35.0 bp) ........................................ 24,927.40 Deposit to Capitalized Interest (CIF) Fund ......................................... 117,550.88 Deposit to Project Construction Fund .................................... 5,300,000.00 RoundingAmount........................................................................... 4,771.72 TOTALUSES................................................................................... $5,550,000.00 TLHocking & Associates LLC Public Finance Page 7 File = LEVELD-1.5F--Total Project Level Debt Service 31912004 2:12 PM NET DEBT SERVICE SCHEDULE Town of Fountain Hills Civic Center - Phase II Financing Plan 100% Project Financing - Level Debt Service Date Principal Coupon Interest Total P+I CIF Net New D/S 7/01/2004 - - 26,122 26,122 (26,122) - 7/01/2005 315,000 1.040% 156,735 471,735 (91,428) 380,306 7/01/2006 320,000 1.250% 153,459 473,459 473,459 7/01/2007 325,000 1.550% 149,459 474,459 474,459 7/01/2008 330,000 1.910% 144,421 474,421 474,421 7/01/2009 335,000 2.210% 138,118 473,118 - 473,118 7/01/2010 340,000 2.440% 130,715 470,715 - 470,715 7/01/2011 350,000 2.700% 122,419 472,419 - 472,419 7/01/2012 360,000 2.950% 112,969 472,969 - 472,969 7/01/2013 370,000 3.140% 102,349 472,349 - 472,349 7/01/2014 380,000 3.300% 90,731 470,731 - 470,731 7/01/2015 395,000 3.450% 78,191 473,191 - 473,191 7/01/2016 410,000 3.570% 64,563 474,563 - 474,563 7/01/2017 425,000 3.680% 49,926 474,926 - 474,926 7/01/2018 440,000 3.780% 34,286 474,286 - 474,286 7/01/2019 455,000 3.880% 17,654 472,654 - 472,654 Total 5,550,000 - 1,572,113 7,122,113 (117,551) 7,004,562 TLHocking & Associates LLC Public Finance Page 8 File = LEVELD-1.SF--Total Project Level Debt Service 31912004 2:12 PM PRICING SUMMARY Town of Fountain Hills Civic Center - Phase II Financing Plan 1009,c Project Financing - Level Debt Service Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 7/01/2005 Serial Coupon 1.040% 1.040% 315,000 100.000% 315,000 7/01/2006 Serial Coupon 1.250% 1.250% 320,000 100.000% 320,000 7/01/2007 Serial Coupon 1.550% 1.550% 325,000 100.000% 325,000 7/01/2008 Serial Coupon 1.910% 1.9100/0 330,000 100.000% 330,000 7/01/2009 Serial Coupon 2.210% 2.210% 335,000 100.000% 335,000 7/01/2010 Serial Coupon 2.440% 2.440% 340,000 100.000% 340,000 7/01/2011 Serial Coupon 2.700% 2.700% 350,000 100.000% 350,000 7/01/2012 Serial Coupon 2.950% 2.950% 360,000 100.000% 360,000 7/01/2013 Serial Coupon 3.140% 3.140% 370,000 100.000% 370,000 7/01/2014 Serial Coupon 3.300% 3.300% 380,000 100.000% 380,000 7/01/2015 Serial Coupon 3.450% 3.450% 395,000 100.000% 395,000 7/01/2016 Serial Coupon 3.570% 3.570% 410,000 100.000% 410,000 7/01/2017 Serial Coupon 3.680% 3.680% 425,000 100.000% 425,000 7/01/2018 Serial Coupon 3.780% 3.780% 440,000 100.000% 440,000 7/01/2019 Serial Coupon 3.880% 3.880% 455,000 100.000% 455,000 Total - 5,550,000 - 5,550,000 BID INFORMATION Par Amount of Bonds .................................... Gross Production ........................................... Total Underwriter's Discount (0.500%).......... Bid(99.500%).............................................. Total Purchase Price ...................................... BondYear Dollars.......................................................................... AverageLife.................................................................................. AverageCoupon............................................................................ NetInterest Cost(NIC)...................................................................................................... TrueInterest Cost (TIC).................................................................................................... TLHocking & Associates LLC Public Finance Page 9 $5, 550, 000.00 $5,550,000.00 $(27,750.00) 5,522,250.00 $5,522,250.00 $48,125.00 8.671 Years 3.2667281 % 3.3243905% 3.2996962% File = LEVELD-I.SF-Total Project Level Debt Service 31912004 1.12 PM TOWN OF FOUNTAIN HILLS OFFICE OF ACCOUNTING SUPERVISOR INTER OFFICE MEMO TO: Honorable Mayor and Town Council DT: August 15, 2003 FROM: Julie Ghetti, Acco nting Supervisor Through: Timothy G. ickering, Town RE: Resolution 2003-50 Amending Town Mana er Financial Policies If adopted, the attached Resolution 2003-50 will amend the Town of Fountain Hills Financial Policies as adopted in May, 2003 to include a new section entitled "Debt Policy". The debt policy section is intended to provide guidance to the Council and staff in setting forth the parameters for issuing and managing debt, particularly as it relates to the five year capital improvement program. The resolution is not an indication that the Town intends to issue any debt in the near future, rather it is a continuation of the Town of Fountain Hills' commitment to maintaining a sound debt position and credit quality protection. The proposed debt policy was drafted with the assistance of several surrounding municipalities (Scottsdale, Avondale, Paradise Valley and Avondale) as well as the Government Finance Officers Association (GFOA). A summary of the policy follows: • The overall debt management policy is to ensure that financial resources are adequate in any economic situation so that the Town's ability to pay the debt when due is not at risk. • Current operating costs and short-term capital projects will be funded through current resources; long term debt will be reserved for capital items with a useful life of ten (10) years or more. • The policy promotes a philosophy of "pay-as-you-go" for most capital items. • The policy requires that a five year capital spending plan be prepared during the annual budget process outlining the specific capital projects and funding sources. • The capital project appropriations must be approved by the Town Council and have a cost greater than $50,000. • If a capital project is financed with debt, the debt cannot exceed the life of the project or asset. • When debt financing is considered a debt capacity analysis will be prepared that shows that the additional debt will not negatively impact the Town's financial condition. • The process for issuing debt and obtaining Underwriters and Paying agents/registrars is based on competitive bids. ` • The Town will comply with all State and Federal laws regulating the issuance of debt. • The Town will seek to maintain and, if possible, improve the bond rating that is currently in effect. If approved the revised Financial Policies will be submitted to Moody's Investors Service for their review relative to the Town's Aa2 bond rating. Staff recommends approval of the Resolution 2003-50 amending the Town of Fountain Hills Financial Policies to include the section "Debt Policy". `WW DEBT POLICY The purpose of this debt policy is to provide for the preservation and enhancement of the I.. Town's bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions and required disclosures to investors, underwriters and rating agencies. The overall debt management policy of the Town of Fountain Hills is to ensure that financial resources are adequate in any general economic situation to not preclude the Town's ability to pay its debt when due. on These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Constitution, State Statutes, federal tax laws and the Town's current bond resolutions and covenants. The Arizona Constitution limits a city or town's bonded debt capacity (outstanding principal) to certain percentages of the Town's secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other general-purpose project. General 1. The Town will use current revenues to pay for short-term capital projects, repair and maintenance items and will reserve long-term debt for capital improvements with useful lives of ten (10) years or more. The Town will not use long-term debt to fund current governmental operations and will manage its cash in a fashion that will prevent any borrowing to meet working capital needs. However, exclusive reliance upon pay-as-you-go funds for capital improvements requires existing residents to pay for improvements that will benefit new residents who relocate to the area after the expenditure is made. Financing capital projects with debt provides for an "intergenerational equity", as the actual users of the capital asset pay for its cost over time, rather than one group of users paying in advance for the costs of the asset. Where there is a benefit to all future residents debt financing should be given consideration 2. To increase its reliance on current revenue to finance its capital improvements, and promote a "pay-as-you-go" philosophy, the Town will appropriate each year a percentage of current revenues to maintain a minimum 10% of average actual General Fund revenues for the preceding five fiscal years in the Designated Unreserved Fund. l�eaithUGhem'1WP'DATA1Debti Po�icy.doc Capital Improvement Plan I. As part of the budget process each year the Town will prepare a capital spending plan that provides a detailed summary of specific capital projects for the five fiscal years subsequent to the fiscal year presented. The plan will include the name of the project, project schedule, capital cost by fiscal year and a recommended specific funding source. The five year capital improvement plan will be developed within the constraints of the Town's ability to finance the plan. 2. The Town Manager and Department Directors will develop formal ranking criteria that will be used in the evaluation of all capital projects. The program ranking criteria will give greatest weight to those projects which protect the health and safety of its citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority and projects with a useful life of less than five years shall not be eligible for inclusion in bond issues. I Lease purchase financincr shall only be undertaken when the project is considered essential to the efficient operation of the Town or to remove expenditures that would exceed the State imposed expenditure limitation. The Town Manager. or designee shall determine that pay-as-you-go expenditures do not cause the state imposed expenditure limitation to be exceeded in any fiscal year. 4. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, a dedicated source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town. The Town will seek grants to finance capital improvements and will favor those projects which are likely to receive grant money. 5. All capital project appropriations and amendments to the capital improvement plan must be approved by the Town Council. 6. The capital plan will include all equipment and facilities with a useful life of greater than ten years and a cost greater than $50,000. Debt financing shall not exceed the useful life of the infrastructure improvement or asset. k%C3AhUGhCWXWPDATAO.bC Policy dw Financing Alternatives 1. Financing alternatives are listed below but are not limited to: a) Grants b) Developer Contributions c) General Obligation Bond — requires voter approval, supported by an ad valorem (property) tax d) Revenue Bonds — repaid with revenue stream (HURF, revenue generated by project) e) Municipal Property Corporation Bonds — repaid with a dedicated revenue source f) CFD or Special District Bonds — supported by an ad valorem property tax g) Capital Leases — repaid within operating budget h) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years 2. Town Debt Service costs (GO, Revenue Bonds, MPC, Leases) shall not exceed 20% of the Town's operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID), Community Facility District (CFD) and Special District debt service is not included in this calculation because it is paid by district property owners and is not an. obligation of the general citizenry. Separate criteria have been established and included within the Town's CFD policy. 3. In accordance with requirements of the State of Arizona Constitution, total fir. bonded debt will not exceed the 20% limitation and 6% limitation of the total secondary assessed valuation of taxable property in the Town. 4. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. 5. Where applicable, the Town will structure General Obligation bond issues to create level debt service payments over the life of the issue. The goal will be to strive for a debt repayment schedule to be no more than fifteen (15) years; at no time will the debt exceed twenty-five (25) years. 6. Refunding bonds will be measured against a standard of the net present value debt service savings exceeding 3% of the debt service amount of the bonds being refunded, or if savings exceed $750,000, or for the purposes of modifying restrictive covenants or to modify the existing debt structure to the benefit of the Town. Refinancings undertaken for other reasons should proceed only when the advantages have been clearly shown in a cost benefit analysis of the transaction. �6\Whe&\WPDATMDebSPoli4+: `%W 7. The Town will seek to maintain and, if possible, improve the current bond rating in order to minimize borrowing costs and preserve access to credit. 8. An analysis showing how a new issue combined with current debt impacts the Town's debt capacity and conformance with Town debt policies will accompany every future bond issue proposal. The debt capacity analysis should reflect a positive trend and include: a) percent of debt outstanding as a percent of the legal debt limit b) measures of the tax and revenue base c) evaluation of trends relating to expenditures and fund balance d) debt service as a percentage of assessed valuation e) measures of debt burden on the community f) tax-exempt market factors affecting interest costs g) debt ratios 9. Municipal Property Corporation and contractual debt, which is non-voter approved, will be utilized only when a dedicated revenue source (e.g. excise taxes) can be identified to pay debt service expenses. The project to be financed will generate net positive revenues (i.e., the additional revenues generated by the project will be greater than the debt service requirements). 10. The Town's privilege tax to debt service goal will be a ratio of at least 3.5:1 to ensure the Town's ability to pay for long term debt from this elastic revenue source. Issuance of Obligations 1. The Town shall select the Underwriter and the Paying agent/registrar for each debt issuance based on competitive bid. The underwriter must be a firm domiciled in Arizona with an office in the Phoenix area and a record of prior working relationships. 2. The request for proposals process will be designed to select the service providers that offer the Town the best combination of expertise and price. The Town is not required to select the firm offering the lowest price, but a report must be prepared by the Town Manager providing justification to the Town Council for a recommendation when other than the lowest bidder is chosen. The review of all proposals submitted shall be the responsibility of the Town Manager. 1 itii T�i6etti� dPDATA�De6f Pbliy dbc 3. The Town of Fountain Hills will use competitive sales as the primary means of selling new General Obligation or revenue bonds that are repaid through ad valorem (property) taxes. Negotiated sales will be permitted for all other debt issues when it is expected to result in a lower true interest cost than would a competitive sale of that same date and structure or there is evidence of volatile market conditions, complex security features, or another overriding factor. 4. The Town Manager or designee and Town Attorney will coordinate their activities to ensure that all securities are issued in the most efficient and cost- effective manner and in compliance with the Town's governing statutes and regulations. The Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. The Town Attorney will review all documents related to the issuance of securities by the jurisdiction. 5. The Town will seek a rating on all new issues which are being sold in the public market if economically feasible. 6. The Town will report on an annual basis all financial information and/or notices of material events to the rating agencies and Nationally -Recognized Municipal Securities Information Repositories (NRMSIR'.$). The annual report will include but not be limited to the Town's annual Comprehensive Annual Financial Report (CAFR). 7. The Town will require any institution or individual investing monies .as an agent for the Town to do so in a manner consistent and in compliance with the Town's adopted Investment Policy. 8. The Town will provide detailed draw schedules for any project to be funded with borrowed monies. The Town will invest the proceeds or direct a trustee to invest the proceeds of all borrowings in a manner that will ensure the availability of funds as described in the draw schedules. 9. The Town acknowledges the responsibilities of the underwriting community and pledges to make all reasonable efforts to assist underwriters in their efforts to comply with SEC Rule 15c2-12 and MSRB Rule G-36. \1'caithUGheth'1i!�PDATA�Debi PoliEyrdoc RESOLUTION NO. 2003-50 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES BY INCLUDING A SECTION RELATING TO THE TOWN'S DEBT POLICY. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town Council") adopted written financial policies for the Town of Fountain Hills (the "Town") on May 1, 2003 (the "Financial Policies"); and WHEREAS, the Town Council reserved within the Financial Policies a section relating to a debt policy to be adopted by the Town Council at a later date; and WHEREAS, the Town Council desires to amend the Financial Policies to incorporate the Town's debt policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA as follows: SECTION 1. That the "Town of Fountain Hills Financial Policies" is hereby amended to include the debt policy attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. That the Town Manager is hereby authorized and directed to take all steps necessary to ensure that the Town of Fountain Hills Financial Policies are amended and that the debt policy is implemented and applied to the Town's financial management. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, August 21, 20,,03. FOR THE TOWN, OF FOUNTAIN HILLS: ATTESTED TO: W. J. Ni ol's, M or Bevelyn J. B der own Clerk REVIE Y: Tim G. Pickering, Town Manager 9196 001\. \ Debt Policy.tesdoc 9-14-03.1 APP OVED AS TO FORM: t rew J. McGuire, Town Attorney vi m O CL O o 70 si 00 4—J O o LL L LZ ra 0- V m O■ - La. V U U • Q ro �U ru LL 4- 0 O O 0- N V) (u J U O �O L r H H Ln ro r I L U U U O O n O L r �U O r m �U ca LL ml (n O Q O V) Q) ' U � U �> � ro .O r- a--) O I O � � ' O C- a� p o V) U U � C U �> O � � � U M (1) U V ru U > (3) ru O _0 O .� L a--) O O U C: Cn i i U I M .a, u 0 M ,--I r 1 LJ X n� V / • U ate--+ W O U x ru ru U () a--' (u O — � 4-J ru O ) _0 C: � • — ca O a-=� E U (B C O E ca a) -0 ru 0- > � ca ca _0O 4) � O U Q L O C 0 NO ii I co I I -bq- 0 Cn O X X C O M N 01 M rl)CD Ln _� C) rNN 00 '� 00 if .0 01 - . �..� 64 rr) .--i .ON N O U X X X X O L() Lr) C) .--i N 00 Q1 'y O O Cl) V' --+ ,y .--i •--� O O O O N O M 'y N lD lD N N 01 M O ti V� 1Pr fY7 ti ti lff V} Ln V` ti N 1A, • N N Ln V Ln X X X X 4,� .-� u to O io --� m - O - N L!) .--i N Lr) - M N lO m '� ti Ol N M .--� O O O) O �"� Lf) V' 00 '� M N r� V' m�O Y C lD M M Ol N N lD 'D M N C) 01 M iPr ifR th �„� V} VT Idl- ra X X X X V H M 00 Q1 O) ti m M V' r, �D L!) f\ 00 Ln - M Lr) to tO H --� (31 .--� m - Lr) lD N N M N m N V' r, (3 N .~-r O O 0% O lD to M (V 00 - 00 V' CD 01 V" 5 C � W V} i �„� if} V} V} Ln N N Z v ^ X X X X ` r� N LD lD O I� M 00 Ln O Ltl V' O N N O OD Q1 t11 I� O V' .--i W M M O �--� O O r� M tD M r, '� M Ln Q) d• n C) O _ O C N .--� lD Lr) N M tfT 1fT d- N ti N to lD M N th !Pr �D 01 M 1Pr r4 'I- tR Ln Li H U N -6.r N o L rl C T c rp X X X X O U L C_ Vi Q O ao N 01 ^ �D �--� W M d• D1 LD M M to O N� ■ , O LL' 3 y,l C l0 V N N W t,4 N N N . a N L�f) 0 M N 1� �T '� cri M ~ O N to 4� V Vag O L . N .sr .y {sr ur .-a ,i +sr d• yr .�..� ~ +fr to o u m z �� N N a� vO c Ln V X X X x m N W Q 41 M Gl Q' V- d- CD C) C:) N V- CO 00 C) 00 N 00V' M 00 O U `, IT C) V C) V' C)tD V' N N �j M D1 I, 00 .--i .--L .--i �--� O .--� d- 1 N to io M N ti C) N d• 'T ry clM _0 C)Z ' y f} tPr -1 1 - _b� iPr l VT�- h1 . V �� - ��o � U d N N .� � p m N 10 a, x x x x � v is > U 01 00 .--i to Lr) 00 Ln W m V- O I, M O N I' Lr) Il, N 'i M N 3 N Cl d- M th th +h M iD ONy rl N 10 kD rl) N t,4 UT Q\ Q1 H V1 W .--i ti +r4 V+ N ti V+ N .--i 1Pr m V+ V' ,ti - V� O O aL+ N N p V N N a).0 O 0 ' N V1' - v - QJ a @ a N v u o > W > o W C:) m o> 0 0 U N LL U X V V N ,V1 O U L O N y, rC0 ca 10 O O �, O) N V N N V( m m U1 V U1 Q) V m m O C C '� X In d Q (n 7 V x cn a Q 7 U Ln >, w C L) O o m p U .n O a Y v N (n a1 N D N Q) O) M C C (n N rn U 3 U1 Q1 N c O) C N N O V E. V v 4J z V N Z 0l @ .-, Z U ro 'ro N v 0 o f a� `� p O "O rco Q) C E N is p O N E rxo io w v '++ V a o vd v Om E V m� o> v aH raCo is N E> V a~i aH �� a m •`, , `` Q N Q W ,� v rp 'C X W ¢ iO N > W .m N � X v W ¢ i0 m 3 z < 11`E LL (n v, -1 Lia� v a n Q o o n LU o m y "' v (D a � O O in w FO- k M J Z J (Y W CD U w M J Z J QY W U w �... .N.. (n x O x O Ul) cn 0 'U Q) C: W � 'U U 4-) � . _ ca C� ro ru U ca O O U • O � U L W > o O O O > w N U Q r U _ O O 0- U— m 0 LTC O O O LO LLnn x x 7 M ti .~-� N tD tD N M N O 01 N •--� .--i Vf V� I M ti `-J r) IA O x x � + O r M O M fM 0 N l0 kD N M N Obi N N •--� � ry !n to M 7 ti tPr ■ LLLLLLLL. N U C: x x O RT ' v N LOn LO N M � N .M-i 00) '0- N "y r +n . M ri in x x M 00 Ln Cl) st n M O .--� .--1 01 r Ln l0 N Ln lD N M N ^ n M 01 N +-� H? in nj r . if, V fo O X x `/ kD L.D I O 00 N 01 n 0G u m ,--L �D In N N c, N V' lC N I N to .~-1 ti !!i ^ N 4p, O O, c x x L (P., as v a O W n O 00 N l0 kD CD O? N 01 O Ln �y 100 C N N rl N N J Z r, N +n a UR �o�z U V-o�Ln0 L 00 r,v-� OLD N . CO NO Zy ■� LL G �> x x � N U 00 CO O M lD M O 00 L 0) Ln 7 M „'"'Ly Cl) n [M O ti W► L, !n ti - tn to [V - r to U C C Li a� x U � U _ ur xcn� a � Ln c L'U O w C � a> > m E a `O E m rn a) Mn -0 7. k� r LU (n W - W Q tc6 �$ (n In E L Y y M J Z J LY W QQJ1 C0 U H H LL N x x .-� N O N N M f? N N co M V- 01 _; l00 tOD 071 N ko 4A iA +-1 *Fi C +n N cu N x x +-i O O LLnn q- M M Ln N M Ln y N LD L.D N M m Ln VF fn •--� {n .O Nto B �Cp U x x .-1 O O LLnn V' N 0) N 7 kDD 00 ~ C (V LO L 'O N M Ln Ol N ' LO ti +n to Ln d.` ti n IA- Vi iiM cn N N Z x x ri .�-L O O In N V' M NLn LnCDO y L ry in EPr Lr rl V� to 4 N U u c m x x E a co .-L m 00 .M-I Ln LO Ln N 01 N 7 M N N Ln kO N fn W O� N a0+ ti r +n w in en +n a, o U a x t C Ln 10 - N x x m c O +--L .--I O 0) .-L m •--� N M O� O� a p N O ry N tDD L k N Lr r ti Vi IA- .�-I in A i = ry +n U m Ln N 7 x x �-Loo Ln V, f4rn N v LNn°i 3} � N LA LA N in ro in N lL 'O N Lfl U C O N N O 0 N 00 LUaO OU O > Ll N U O O fu o D] L N N N (n xtn� a O� UU y � �L... c� O Ll_ U a L 0) Z U NO U U o Z LO .c O N N O E cD O N fu 1 f0 X y w y 41 ate+ �o y� S E�' L�—o rn C a� n (u o c '+.� N ' (n N j W, o +.� LO X - N W Q IY6 - a�-� w Z 0 0 lL Ln y LA f0 (O C N O E M J Z J E W U F- H W A C C) C) lk%� M c O 4-J CD- 0 L x Q, L .X Q) W 4-J U C: a- (1) �V C: U U ca (a > ca .� a) Q) c U ra Q p 4-' > L ^C W ��Q) LL E -W ru �--� Q) C: n _0 Cn O x x N .-+ O M n M l0 M M • M .-1 Ln Lf1 Q 1 O� V /•� �„� 1A u N 3 O N d X X X X � O N (p L, cM M " 0) V M O) N V Ln O .--i O O N M M V '""� M n N O O i i1 O V •--� N {f} 0, 1Pr 0) V .--� � 1ii �"� N tD tD V •--� .--i � � �..L 8h 0) 1A 3 V � HT C N •U N X X X X .-1 Lf) 'D Ln O M — .-L M M N � .-� 0) N Ln r, M O r M h N aL.+ N Ln 10 V .V-i V rl N ID 10 VN-L "'� O) V c; C tPr if,V, V� +Pr O' O N N � C X X X X U u ti M W M Ln M ID �D M GO M V i0 Lf) Lh O O O 1, M Ln V 00 C N U) l0 V �--L 'i L!) a) 'i N lD lD V �--� '� iD 0) V LO H +Pr V V� V� V o lf} 1fi fPr fPr 1Pr V= 1 N N p x X X X iR ' v O H lD lD O V LD Ln O ul I, I, N .-L N 01 M m O 1� .--� co M Lr) Oj CD O Il N M M N M 'D '�-L V I� (Ii _ O O O.--1 lD Ln V v, lD lD V .--1 '� LnD) V C N 1Pr lf} .N-1 ffi 1Pr rl V� V� C .--1 N N O C_ V) fh U T C fV E I _o a c x x x v o O a+ c Q O co N V W O Lll T (p (YJ .-� lD M O M LI) M 111 M i O O CD 0) n .--i D V V 1Pr L V M Ln Ln N 0 _M .ti D) N .Vi .ti N Ln i0 V O) '� M V u1 O V p fNp N 0) / n 07 IL +Pr iH .V-L tPr H tPr fPr .V-i {q O U v W V m a i N �� N N d Q a Gl V c ppp N 7 X X X x �J O V y V O C) M O 0 V V 1A 0) O I� M Ln N O ^ V O _ a .-+ O n M .•� N D 0 V c)') LLn '� N mn V n N 0) V O O. w v ON Q 4p U Z d O 1Pr UT H4 fPr .4 1& ti 1R QJ -0 p V p N C +p A • x x x x C v m 0) CO .-'� O O LD N 0) O M LD O N-+--� 00 t0 Q• N N O O O n M M tD .--L M CO N V iD 3 v E (U 'N ■ W Lb 0) L!) V M W 'y fM M M M �"L N LD O V �--� 'y �--� T V C) p Vi IN N fV ti 1Pr fPr N V W N p U 1Pr tR .--L 1Pr 1R �y fPr 1f} .� 1f} 1Pr y tyil (l7 N T U m N i C O N j v tti m a (n ft1 Lu U O M O O> O D U LL U U O O N N VI O u u N U_ x C x m Q) N (n _U C t0 O L U N p LT _ p1 V v LD m O (D V m O f0 00 ...V N i Ln u 'D 'D _ (n 'L7 > N tO N x n� a Q) C n N O U(J U x n�a Ql C O lU O UU :g (n (n C n Tw c� O M O N U N 0 O 01 N U ON t1 y to v a p u c Ln 3 Ln > E p z v Lo �'ro a`"i �Ln is�ZZ m v �vQ1i . E o > v"- N o c E ~ n o o N �' v E m p ~ w v ^ T Lp N N m V r0 tZ' m u N d � v v tp v ( M O d. 3 V d a s E °' m y 0' � 0 T> �� p l] E. p in (n > LL v u 'c LL ¢ is m Ln > LU m LL ¢ m Leif 41 v O 0 _. ,C W Q .. N C 7 E ,C W .. Q .. 7 E W Z N F- mow. o f N E Qo E .2 �° - E p E E ° ;° o ET:1 r_ J Z J LY 4 LY1 U W M J Z J K W U W E 1t ��D..V M aaa+l'tg con I 0 M c .O --J 0- 0 0 1 V) Q I ru CL (1O V I O c� Q r� a- J ovo O 4— _0 O O O V () ZD ca O m �— • 0 Ln C N ru UO (1) U ru co W ru 4� O At 0 Client#: 21411 HCII f)FrnN1 ACORDT. CERTIFICATE OF LIABILITY INSURANCE 03108/04DNYYY) PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Atlanta - Commercial ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Palmer 8 Cay, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 3348 Peachtree Road, NE Suite 1400 Atlanta, GA 30326 INSURERS AFFORDING COVERAGE NAIC # INSURED INSURER A: Zurich American Insurance Co Holder Construction Group, LLC INSURER B: Westchester Fire Ins Co Attn: Shawn M. Bolin 3333 Riverwood Pkway, #400 Atlanta, GA 30339 INSURER C: INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NSR LTR ADO'L K§a TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE M POLICY M EXPIRATION LIMITS A GENERAL LIABILITY GL02978914 12/31/03 12/31/04 EACH OCCURRENCE $1 000000 MERCIAL GENERAL LIABILITY CLAIMSMADE �OCCUR DAMAGETORSES (E.ENTEDREM$3OO OOO MED EXP (Any one person) $10 000 PERSONAL & ADV INJURY $1 000 000 PGE GENERALAGGREGATE $2 00O 000 'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG s2,000,000 POLICY PRO--JECT LOC A A AUTOMOBILE X LIABILITY ANYAUTO BAP297891204 BAP297891104 12/31/03 12/31/03 12/31/04 12/31/04 COMBINED SINGLE LIMIT (Eaw6dent) $1,000,000 ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per person) $ X X HIREDAUTOS NON -OWNED AUTOS BODILY INJURY (Per accident) $ X Physical $500 Comp DIED $500 Coll DIED PROPERTY DAMAGE Per accident) $ Damage GARAGE LIABILITY AUTO ONLY- EA ACCIDENT $ OTHER THAN EA ACC $ RANY AUTO $ AUTO ONLY: AGG B EXCESSIUMBRELLA LIABILITY X OCCUR CLAIMS MADE CUW7741900 12/31/03 12/31/04 EACH OCCURRENCE s25,000,000 AGGREGATE s25,000,000 $ $ DEDUCTIBLE $ X RETENTION $ 0 A WORKERS COMPENSATION AND WC386567100 12/31/03 12/31/04 X WC LIMIT OER EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT is500 000 E.L. DISEASE - EA EMPLOYEE $500 00O OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT 1 $500 000 OTHER 1,000,000 Leased/Rented A Contr Equip MCP455176000 04/01/03 04/01/04 incl boom/toll/overload A Builder's Risk MBR455176100 04/01/03 04/01/04 1 75,000,000 as Reported DESCRIPTION OF OPERATIONS! LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS A)The Town, its agents, representatives, officers, directors, officials and employees are additional insureds as respects Agreement #2004-2.19 for the following coverages: *Commercial General Liability per Additional Insured Endorsement CG 2033 (10101) *Auto Liability per Broad Form Named Insured Endorsement CA-388-A (See Attached Descriptions) I1M33117PfG\ Town of Fountain Hills P. 0. Box 17958 Fountain Hills, AZ 85269 OULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION TE THEREOF, THE ISSUING INSURER WILL 15MM29M MAIL -11 DAYS WRITTEN TICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BSi3t1kV[{RAQd]0�64tA%1At REPRESENTATIVE ACORD 25 (2001/08) 1 of 2 #97338 11VMM © ACORD CORPORATION 1988 DESCRIPTIONS (Continued from Page 1) *Excess Liability per Following Form U-EXS-100-A CW (4/99) B)Contractor's insurance shall be primary insurance as respects performance of work. C)All policies waive rights of recovery against the Town, its agents, representatives, officers, directors, officials and employees for any claims arising out of work or services performed by contractor. AMS 25.3 (2001108) 2 of 2 #97338 Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: March 18, 2004 Submitting Department: Parks and Recreation Department Contact Person: Mark Mayer Consent:❑ Regular:® Requesting Action:® Report Only:❑ e of Document Needing Anvroval (Check all that aonl ❑ 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 (Chec�C''Abbiomiate 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 Reeular Agenda Wordine: Consider the Recommendations of the Parks and Recreation Commission and staff regarding the location, type, funding and design of a potential skate park. Staff Recommendation: Approve Fiscal Impact: Yes $ 60,000, up to $250,000 Purpose of Item and Backeround'Information: At the February 19, 2004, meeting Council directed staff to refer the question of a skate park back to the Parks and Recreation Commission to provide its recommendation the location and type of skate park. The Commission discussed these topics at its March 8, 2004, meeting. The Commission voted to recommend to the Council on a 7-0 vote that the location for a skate park be at Desert Vista Park. The Commission also voted 7- 0 to recommend an excavated concrete skate park. Lastly, the Commission recommended that the skate park be constructed utilizing both donated funds raised by the Skate Park Committee and Town matching funds. Currently, there is only $60,000 budgeted for the skate park. Additional Town funds of up to $250,000, would need to be budgeted for fiscal year 2004-2005, if the Council agrees with the Commission's recommendations regarding financing and the Skate Park Committee were successful in raising that same amount. Further, the Commission recommended that the Town might match the first $100,000 donated in dollars and/or materials and labor by written commitment to the Skate Park Committee. For each additional donation of $50,000 in dollars and/or materials and labor, the Town might contribute an additional $50,000, up to a maximum contribution from the Town of $250,000. The Commission also recommended that the $60,000 originally budgeted for either a modular system or the design of an excavated skate park be retained. These funds would be used to initially complete the design of a potential facility to the 30% completion level. This would provide assurances that the location recommended would accommodate a skate park, as well as providing schematics of what the potential skate park might look like. These funds would also provide information as to the quantity and type of material that would be needed to construct the skate park. Both the schematic and information on materials could assist the Skate Park in its fundraising efforts. After a year of fundraising effort, if donations of $100,000 in dollars or commitments were not forthcoming, a modular skate park would be installed. If at least $100,000 were raised through fundraising efforts, the detailed design through 100% for the concrete facility would be completed, utilizing the original $60,000 in funding. Assuming the latter occurs, the concrete skate park could then be constucted utilizing both Town funds and Skate Park Committee donations. Staff would need to solicite requests for qualifications, to contract with a firm to complete the design to the 30% level. ,,. List All Attachments as Follows: Staff memo Tyne(s) of Presentation: Verbal Signatures'o€ Submitting Staff: Department Head t Town Manager Budget Review (if item not budgeted or exceeds budget amount) TOWN OF FOUNTAIN HILLS OFFICE OF PARKS AND RECREATION INTER OFFICE MEMO TO: Mayor and Town Co it DT: March 10, 2004 FR: Mark C. Mayer, Director Park and Recreation Department RE: Skate Park The Town Council voted at its February 19 meeting to refer the issue of a potential skate park back to the Parks and Recreation Commission to come back with a recommendation regarding the location and type of skate park to be constructed. The Parks and Recreation Commission discussed this matter at its March 8 meeting and voted to recommend that the skate park be located at Desert Vista Park, and that an excavated concrete skate park be constructed. Finally, the Commission made recommendations regarding how the project might be financed. I would like to provide some background information regarding its recommendations. Site The Commission had discussed possible locations at other park sites and also a school site, state land, and most recently, the Kiwanis park site. Each was considered and rejected for various reasons. The Commission was left with two possible sites: Four Peaks Park, where the skate park was originally to be located, and Desert Vista Park. The Commission also discussed eliminating the water play feature originally planned for the upper northwest corner of Desert Vista Park because it is now being planned for Fountain Park. The upper northwest corner of Desert Vista Park would now potentially be available to locate the skate park, which would be adjacent to commercial property, and further from residential property than the Four Peak's site. Funding The Commission agreed that a cost sharing effort between the Town and the Skate Park Committee could serve as both an incentive and reward for the Committee's fundraising effort. Retaining the originally budgeted $60,000, would provide either the initial 30% design and a modular system, if the fundraising for the initial $100,000 by the Skate Park Committee came up short, or the 100% design if the group within a year was successful in its efforts to raise the minimum of $100,000. Currently, there are two skate parks in Town that have been constructed by local churches. The churches are using them to promote their programs. This use has resulted in at least one recent accident that appears to have been serious. Town of Fountain Hills Town Council Agenda Action Form Meeting Type: Regular Meeting Meeting Date: March 18, 2004 LL Submitting Department: Parks and Recreation Department Contact Person: Mark Mayer Consent:❑ Regular:® Requesting Action:® Tune 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: Trailhead design Council Priority (Check AnDronriate 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 Consider Acceptance of the Trailhead Design for the Preserve Staff Recommendation: Approve Fiscal Impact No $ Purpose of Item and Background Information: Council previously approved the funding to have a Master Plan prepared for a trailhead in the McDowell Mountain Preserve. The firm of J2 Engineering and Environmental *Aw Design was retained to design the trailhead and prepare an estimate of construction costs. The proposed trailhead plan was first unveiled for public comment at the McDowell Mountain Open House held at the Community Center last October. Roy Kinsey, Chair of the McDowell Mountain Preservation Commission, will make a short presentation on the history of the Preserve, followed by a presentation by Jeff Engelmann, from J2, on the design of the trailhead. Funding for both the future preparation of construction documents and the eventual construction of the trailhead would be phased over several years, and would come from Open Space Development Fees. List All Attachments as Follows: Resolution and a packet of information from the Commission Type(s) of Presentation: Verbal with video and PowerPoint Signatures of Submitting Staff: P�"� (71 - �% Department Head Town Man er Budget Review (if item not budgeted or exceeds budget amount) Last Minute Corrections. In reviewing the Town Council "Packet" from the McDowell Mountain Preservation Commission MCO Properties requested we up date some of the data that is presented. Section: Preserve History Paragraph dated 5/98 The report omits the reason why MCO took this action. It was because North Heights said they would fight MCO if they tried to make any changes in zoning (such as a hillside transfer was one of the options being negotiated. Paragraph 8-98 - 6/99 Another area that should be clarified where it is stated that the Town be required to drop all existing development ordinances, when in fact this was one of the major points of one of the lawsuits. MCO contended the changes in ordinances resulted in "a taking" of private property - the lawsuits were dropped and the development agreement was the solution set in place for how MCO would be able to develop their private property, and how the Town could acquire property for preservation. General comment on "History" data. too brief so it does not offer enough information. This may confuse some. If questions arise please call Shelly Johnson, 480-837-9660. Section: Settlement Agreement. A final copy of the agreement states there may be a total of 415 homes, but the allocation is split into 171 in Adero Canyon and 244 in Eagles Nest 3/16/04 RHK McDowell Mountain Preservation Commission 2004 Report and Fbrecast 13 McDowell Mountain Preservation Commission .. 2004 Report and Forecast Contents 1. Fountain Hills Preserve History 2. Settlement Agreement between the Town and MCO Properties a. Financing Methods b. Actual Cost Estimates c. Significant Aspects 3. Town and Preserve Map Showing Access and Trailhead 4. Benefits of the Preserve a. Maintains Fountain Hills Status as Community with Unique Mountain Views b. Provides Significant Market Appeal for Homebuyers and Visitors c. Becomes a Vital Attraction for Chamber of Commerce Tours d. Serves as a Broad -Based Community Amenity e. Forms a Living Ecological Laboratory and Classroom for Students 5. McDowell Mountain Preservation Sponsored Programs a. Monthly Photo Contest b. October Month Celebration c. Guided Hikes 6. Sonoran Conservancy Participation and Contributions 7. Central Trailhead Design 8. Projected Costs of the Five -Phase Construction Program a. Trailhead to be Completed and Ready for Use Before Public Roadway Opens b. Financing Accomplished by 20 Percent Portion of Impact Fee Collections Actions by Fountain Hills to Preserve Undeveloped Land 04/95 Town Council of Fountain Hills Creates a Task Force (11 members) Mission: Devise a Strategy for Preservation Recommend areas to be Preserved Identify Methods of Acquisition Establish Priority of areas to be acquired Recommend a Management Plan 12/95 Task Force Submits a Set of Recommendations to the Town Council 02/96 Town Council Creates Fountain Hills McDowell Mountain Preservation Commission (7 members, including 2 from the Task Force) Mission: Update Study Area boundaries and redefine Priorities Investigate Options for Creating a 501(c)(3) Land Trust Obtain a Independent Firm to Provide a Land Valuation Coordinate Plans and Actions with the Scottsdale MMPC Devise Plans and Take Action to Educate the FH residents Request the Town Council Establish a Budget for Land Acquisition. 04/97 Preservation Commission Recommendations Submitted to the Town Council 05/97 Town council Formally Accepted the Commission Recommendations 07/97 Town Council asks for voters to approve up to $6M in General Obligation Bonds09/97 Commission Initiated action to form the Sonoran Conservancy of Fountain Hills 11/97 66 % of voters vote "YES" to support the General Purpose Bonds for Land Acquisition 12/97 Commission Focus on `98 Agenda Realign Acquisition Priorities as Development timetable evolves Support Trail and Trailhead Plan as Part of Land Negotiations Support Intra-Municipal Governmental Coordination of Preserve Land Uses Provide the Town council with Recommendations for Preserve Management 04/98 A committee including members from the Planning & Zoning Commission, Town Engineering Staff, Town Development Director, the Preservation Commission, and 3 members from MCO (the developer) devised a plan suitable to all that would bring 300 more acres into our proposed Preserve in exchange for the $6 M and a rezoning of the north section 6 from R1- 43 to R1 - 35. 0 5/98 A local community that resides adjacent to the undeveloped area in Section 6 the Council and MCO dropped all plans to negotiate the earlier plan. Instead, MCO submitted preliminary Plat plans for both Sections 6 & 7. 06/98 The "Plat Plans" as submitted indicated a connecting road between the two Sections that would run from the box canyon (Sect. 7) to the Eagles Nest area (Section 6). This road would dissect the two section of land owned by the town from previous land transfer actions. Further it would be a permanent eye sore either in or adjacent to the land we want to preserve. 07/98 The Town of Fountain Hills defined 18.6 acres of land in the saddle between the two Sections as a Public Need and set into action a Condemnation of the land. 08/98 - 6/99 Negotiations proceeded between MCO and the Town of Fountain Hills that led to a "final" Development Agreement. This plan offered 200 acres of land within our Preserve Study Boundary. It required the Town to essentially drop all existing development ordinances that defined & fill limits, open space limits per lot, etc. and it also required the sum of $ 6 M. 01/99 The Town Council proclaimed the 386 acres of mountain land as the Fountain Hills McDowell Mountain Preserve. 07/99 The Town Council rejected the Development Plan (4/3 vote). MCO immediately filled a new preliminary Plat Plan for 550 home site within the two Sections. Many of these sites are located at elevations above 2400 feet, and within our Preserve Boundary area. 10/99 Town Council approved a resolution that established the boundaries of the Fountain Hills McDowell Mountain Preserve to include 452t acres of land that are part of the ongoing negotiation for acquisition of that land. 10/00 Town Council approved an increase of 0.4% in Sales Tax. 3/4 of the tax income will be applied to land acquisition. 11/00 Presented a Preserve Management Plan, Trail and trailhead rules, and a request to classify the Preserve as "Open Space - Conservation". 05/01 Town Council and MCO reached a binding agreement for the Town to acquire 354t acres and a public roadway for the sum of $13.5M. In exchange, the Town agreed to modify certain restrictive ordinances that relate to hillside development. 11/01 Requested the Town Council to approve a "Land Use" ordinance that would include Rules and Regulation covering the Preserve, and would rezone the Preserve as "Open space —conservation" . 12/01 Fountain Hills took the Deed for 354 acres of land that was added to the existing 386 acres in the Preserve. A total of 740 acres, Plus 200 acres of McDowell Sonoran Preserve creates nearly 1000 acres of open space —conservation at an elevation of 2400 feet and above. 02/02 Town Council approved a new Section, 9.5 of the Town Code to regulate Fountain Hills McDowell Mountain Preserve. 09/02 Opened temporary trailhead onGolden Eagle with access to McDowell Mountain Park. 11/02 Opened bidding on Design proposals for the Central Trailhead area of the Preserve. 03/03 Signed contract with J-2 Engineering for Phase I of the Central Trailhead plan. 04/03 Created Long Range Breakdown and Phasing For the Central Trailhead Project (a 5 yr. plan) 10/03 Presented first formal public meeting on Central Trailhead Design and Phased planning during the 2003 McDowell Mountain Open House. 10/03 Requested the Sonoran Conservancy Board consider application of a specific 501 (c)(3) . 2/2/04 Sonaran Conservancy notified by IRS that request for 501 (c)(3) status was approved. McDowell Mountain Preservation Settlement Agreement Funds to purchase the Preserve were derived from a $6M general obligation bond approved by 66 percent of voters and a .3 percent local sales tax increase. The tax increase was leveraged into a $7.5M bond, bringing total land acquisition funds to $13.5M. The Town Council agreed to purchase only as much land as possible within the $13.5 budget. No money from the Town's general fund was spent for land. Taxpayer support was the sole basis for land purchase. With funding established, negotiations began. The Town rejected an MCO proposal to sell the Town 300 acres of land, 40 percent of which were either washes or steep, unbuildable slopes that would be declared open space during plat approvals, for $6M. Another unfavorable aspect of this proposal was MCO's plat plan, placing 70+ home sites above the 2400-foot elevation boundary, some at 2700 feet elevation. Actual Cost Elements By May 2001, both parties accepted a compromise plan. The Town agreed to purchase 354 acres; MCO agreed to pay for construction of a two-mile public roadway through Adero Canyon to the Preserve entrance and Central Trailhead. The total cost was $13.5M. With estimated cost of $9M to build the highway, land cost averaged less than $12,500 per acre. Undeveloped land in the northeast valley currently sells for $50,000 - $200,000 per acre. Significant aspects of this Settlement Agreement 1. MCO may seek plat approval for 415 homes maximum — 175 in Adero Canyon and 240 in Eagle's Nest. 2. The existing "jeep" trail shall be used as an emergency vehicle access, including revegetation of any disturbed areas. 3. The entire length of roadway shall be public access with a sidewalk and bike lane. 4. The roadway shall be completed before any certificate of occupancy will be issued for a home in Adero Canyon.' 5. Town ordinances for hillside development shall not apply, but each deviation from existing limits must obtain final approval from the Town Council. `There was no time limit established for completion of construction in Adero Canyon or Eagle's Nest. Current projections assume completion of the roadway by 2010. The development of the Central Trailhead will proceed in five phases so as to be ready for the public when the road opens. McDowell Mountain Preservation Commission Town and Preserve Map showing Access and the Central Trailhead NIcDowell Sonoran Preserve w q` � M ltiti 1 Benefits of the Preserve for Town, Business, Public The original motivation of Fountain Hills residents was to preserve and protect their views of the western mountain range. By acquiring a total of 740 acres of land they accomplished that goal. Ownership brings joy and responsibility. The views do stabilize our first impressions of the Town and its location. This feeling is echoed as artists, visitors, and realtors describe how they fell about what makes Fountain Hills unique. The Town also includes this land in a .long list of other open space areas (washes and parks). That ownership requires management and maintenance. The McDowell Mountain preservation Commission (MMPC) has the task of providing fundamental rules and regulations that become part of Town ordinances when approved by the Town Council. The Sonoran Conservancy will provide a significant role in maintaining security and maintenance through volunteer Trailblazers and Trail Stewards. The perimeter of the Preserve is adjacent to both the McDowell Mountain Sonoran Preserve (Scottsdale) and the Maricopa County McDowell Mountain Park. This provides an opportunity in the future to consider ways in which all three open space areas might be united to provide inter -connecting links. Now the opportunity exists for the School District to generate Eco-related programs within the Preserve, as well as student involvement in plant identification, photography, and special field trips. When the paved public roadway extends into the Preserve we expect the Chamber of Commerce will add the "Verde Valley Overlook" to its list of things to do and see while in Fountain Hills. Then it will be "Access for All" with a covered picnic ramada and several benches in prime view locations to offer family/guest opportunities for outings. Lastly, for the outdoor enthusiast, there will be easy and more challenging walking trails to be explored. ountain Hills Chamber of Commerce > Visitor Info Page 1 of March 08, 2004 1 Admin Login Home The Town Visitor Info Community Events Calendar The Chamber Member Directory One Destination, Many Adventures... Experience It! A peaceful and idyllic atmosphere surrounds this family oriented community of Fountain Hills which is also home to fine resorts and is perfect for a single destination vacation. Fountain Hills affords the visitor one of the last great destinations in the Valley with unsurpassed desert beauty. The area offers some of the best opportunities to experience the Sonoran Desert available in the Southwest. Relax poolside at one of our fine resorts, hotels, or bed and breakfasts or play a round of golf on one of seven local golf courses. For the more adventurous type, enjoy hiking, horseback riding, Hummer tours, water sports on the Verde River or Saguaro Lake, or take a scenic desert drive, one of the finest in the valley, all right out our back door. Fountain Hills is located close to well known shopping, restaurants and the arts. It is just a short drive to the famous White Mountains or a day trip to the red rock beauty of Sedona, the natural wonders of the Grand Canyon or the southwestern atmosphere of Tucson. Come experience a place where a single destination offers so many different adventures. Come experience Fountain Hills. Copyright 2002-2003 Fountain Hills Chamber of Commerce Powered by ChamberSoft (c) - Schafer Design Group Terms Of Use Privacy Statement ttp://www. fountainhill schamber.com/FHChamber/DesktopDefault. aspx?tabid=41 3/8/200 Real Estate Analysis The following analysis examines use of the word "views" in headlines, captions, and body copy in real estate ads from Fountain Hills Times, Jan. 7 and 14, 2004 and in Homes, a Times sister publication, Fall Edition 2003. Home, publication of Western States Publishing, Fall Edition 2003 (Masthead states: "Many of the stories in this edition are paid advertisements.") P.g. 8 headline: "Home seekers love those scenic mountain views" Body copy: "surveys consistently show that a significant number of today's homebuyers in various income brackets would prefer to live in a community Where scenic mountain views are visible from their homes — a community such as Fountain Hills." "In a study done in 2000 by the Arizona Real Estate Center at Arizona State University, researchers found that...'quality of life' ranked high, and among the qualities were open space and views." "But Fountain Hills in the northeast Valley still remains a `crown jewel' for mountain scenery. Here scenic splendor is a daily fact of life and from many homes the views are `close up'. The community is actually `insulated' by a mountain preserve on the west, a regional park to the north, and two Native American communities on the east and south." Pg. 9, full page color ad, MCO Realty, headline: "Breathtaking views. What a find " Photo caption: "As one of the most exceptional custom lot communities in the Valley, Eagle Ridge is a rarer find indeed. Pg. 10, ad headline: "...choice resale lots are on the market" Pg. 10, ad cgDpyT "These pristine properties are in western Fountain Hills, in the foothills west of Palisades Blvd. Their terrain is lush natural desert and the views are spectacular in every direction." "The views are awesome — and the lifestyle will be very much the same in this gated community (Eagle's Nest). Architectural excellence and land disturbance regulations will be strict and natural compatibility and preservation prime concerns." Pg. 20, photo caption: "Sonoran Desert vegetation, mountain vistas and natural rock outcroppings highlight the hillside beauty in Fountain Hills. " Jan, 7, 2004, Fountain Hills Times, Real Estate Ads: Pg. 14B, MCO Realty, full page, two color ad: Lots for Sale: 6 of the 7 ads list views in either the headline or near copy start Descriptive terms include: "beautiful, spectacular, great" House ads include: "180-degree views, fabulous views, MTN. VIEWS, spectacular view lot, unsurpassed mountain views, expansive mountain views" 1313: Century 21 Anderson Group ads: include in headlines and photo captions "views, beautiful views. Views of McDowells, spectacular views" Pg. 16B, REMAX Sun Properties ad: "views, Mountain views, superb Mtn. Views" October McDowell Mountain Month For the past six years McDowell Mountain Preservation Commission (MMPC) has sponsored activities and programs during October as part of a joint celebration of the McDowell Mountains by the City of Scottsdale and the Town of Fountain Hills. MMPC activities are designed to provide Fountain Hills citizens and visitors with information in an entertaining, educational format and to encourage participation in the Town's open space preserve program. October Month Activities in 2003 An Open House was held at the Community Center showcasing monthly photo contest entries and winners. Additionally, informative presentations were provided, as well as featuring hands-on displays and outdoors experts were introduced. Guided hikes were made available to the Fountain Hills preserve are, McDowell Mountain Regional Park, and the Fountainside Park Trail area. Open House 1%W Annual attendance to the MMPC Open House has increased each year with 187 individuals recorded in October 2003. (See attached October 5, 2003 flyer). Programming was geared toward children, adults, families, outdoor enthusiasts, and armchair lovers of Sonoran Desert flora/fauna. The 2003 event included a puppet theater, preparation for desert hiking, live exhibit of birds of prey, and a reptile display. J2 Engineering, the firm contracted to develop the Central Trailhead Master Plan, presented a special slide program that described the physical layout of the Preserve. It featured photos of design elements used in other parks to help the public visualize ideas proposed by the Fountain Hills Preserve. The presentation by J2 Engineering was the first of several opportunities for public comment and participation in the design and development of the Central Trailhead Master Plan. A three- dimensional Preserve map helped people to identify the Trailhead location and public access plan. Hikes In 2003, October hiking opportunities in the Preserve were limited to two because of liability issues. A total of 65 individuals participated in the two hikes that were lead by MMPC Commissioners and trained Trail Stewards. Three work parties consisting of 11 volunteers helped develop a new trail. McDowell Mountain Preservation Commission U C] Photo Contest submission Photo Highlights Photographer, Adam Tashinsoy Photographer, Lloyd Tarr Photographer, Don Disbrow Photographer, Don Disbrow Photographer, Robert Derrichson Photographer, Phyllis Crump TOWN OF FOUNTAIN HILLS PROCLAMATION OFFICE OF THE MAYOR WHEREAS, the preservation of the McDowell Mountains and the Sonoran Desert has been established as a high priority of the Town of Fountain Hills and its citizens; and WHEREAS, it is the desire of the Town of Fountain Hills to celebrate the unique environment of its new Preserve; and WHEREAS, it is also the intent of the Town of Fountain Hills to raise awareness regarding the need to preserve these valuable treasures for futit re generations; and WHEREAS, the Fountain Hills McDowell Mountain Preservation Commission has planned several events including public assemblies and scheduled hikes; and NOW, THEREFORE, I, Wally Nichols, Mayor of the Town of Fountain Hills, Arizona, do hereby declare the month of October 2003 as: -"AlcD0 WELL MOUNTAIN MONTH" in Fountain Hills and call upon all citizens 11 aike a moment during the month to appreciate the beauhj of ml ltiy treasure. Wally Nichols, Ma ATT ST: Bevel yn J. B der, own Clerk ���STAIN HILLS The Town of Fountain Hills McDowell Mountain Preserving All That Is Arizona Preservation Commission Annual McDowell Mountain Month OPEN HOUSE Sunday, October 5, 2003 1:00 to 4:00 PM Fountain Hills Community Center See the Concept Plan for the Fountain Hills Central Trailhead Scheduled Events 1:15 Great Arizona Puppet Theater - Hotel Saguaro 2:00 J2 Engineering - Fountain Hills Trailhead Concept Plan 2:30 REI - Desert Hiking 101 3:00 Liberty Wildlife - Live Birds of Prey and Reptiles 3:30 Ranger "Crash" from McDowell Mountain Park Plus Exhibits By • REI • The Sonoran Conservancy • Liberty Wildlife • Volunteers for Outdoor Arizona • The McDowell Sonoran Land Trust • McDowell Park Association • Arizona Game and Fish Department • McDowell Mountain Regional Park • Monthly Photo Contest Entries • Marciopa County Regional Trail Plan Doorprizes Free Ice Cream See the back of this flyer for a full schedule of hikes and trail building events Scheduled Hikes and Trail Building Parties_ Saturday, Oct. 11, 2003 - Hike 4.2 miles RT, moderate, 700 ` elevation change Visit the site of the Central Trailhead and view our Town and the Verde Valley from the Overlook Trail. Sunday, Oct. 12, 2003 - Work Party - Light work and fun company. Brush clearing for a new trail in the Preserve. Bring work gloves, boots, hats, water, energy food/snacks, and large or small clippers, rakes, or hoes. We drive up to the location. Work until 11:00 AM, and return. No experience needed. Trail Stewards will train you on the job. Saturday, Oct. 18, 2003 - Work Party - Same as previous Sunday. Sunday, Oct. 19, 2003 - Hike - 4.5 miles RT to Dixie Mine Area, moderate with no climbing. For those who have heard of this hike but missed it until now. We travel through prime Sonoran desert, visit the old mine site, and observe ancient petroglyphs. There is a $1.00 per person fee to enter the country park. Saturday, Oct. 25, 2003 - Hike - 1.5 miles on the Fountain Lake overlook trail. This local trail leads up over the eastern ridge above the lake. Great views all around. After a slow accent of less than 200 feet the trail levels out and then winds down and back around home sites in the area. This hike will begin at 8:00 AM, and leave from the eastern most parking area behind the Lake. Sunday, Oct. 26, 2003 - Work Party - Same as the Oct. 12th - More trail clearing. All hikes and trailbuilding parties will leave from the Town Hall parking lot next to the Senior Center entrance at 7:30 AM, except for the Oct. 25th hike, which leaves from the east parking lot at Fountain Park at 8:00 AM. All trips will return by Noon. Preregistration is strongly advised. Each group is limited to 15 persons. Call the Department of Parks and Recreation at 480-816-5152 for more information on how to register. In the past two years, the Sonoran Conservancy has sponsored two training series for trail stewards and builders: 1. Trail Building basics - A five -hour instructional class that provides on the job training, and 2. Trail Guide requirements - a three-hour, instructional class with an additional four hours of trail practice with radio messaging. Additionally, eight individuals from this program went on to complete the CPR class conducted by the Fire Department. Work Provided By Trail Builders Last year, 35 trail builders volunteered more than 620 hours of hard work to finish the Town Overlook trail that is situated eastward and above the Central Trailhead Area. Over the past few months, new and old crews of volunteers are carving out a second walking trail that climbs westward from the Trailhead area. Another group of 23 volunteers are prepared to provide Trail Guide service as part of a plan to offer walking access to the Preserve area until a public highway is completed in Adero Canyon. The Sonoran Conservancy Board is proud to announce its new, independent 501 (c)(3) status as a nonprofit organization. Although the Sonoran Conservancy is independent of the MMPC, many of the goals of this organization are intended to provide not -for -profit support to the development and maintenance of the Town Preserve (See the excerpt from our brochure for more details.) r4jk�� Ark The Sonoran Conservancy Of Fountain Hills The Conservancy is a non-profit organization established to support and maintain a natural preserve within Fountain Hills. Its work is supported by gifts from individuals, corporations, and other non-profit organizations. It is independent of the Town of Fountain Hills and receives no tax support. Annual membership fees and gifts are tax deductible. photo by Gerald & Butl' Corsi California Academy of Science The Preserve The Fountain Hills Preserve pro- vides 740 acres of Open Space along the only wildlife access on the Eastern side of the mountains. Adjacent to the South, West, and North borders of the preserve are Scottsdale's McDowell Sonoran Preserve and Maricopa Coun- ty McDowell Mountain Regional Park that creates a total of over 36,000 acres of contiguous Sonoran desert with limited and shared trail access This total area is crucial for native wildlife preservation Objectives The primary objective of the Con- servancy is to create a financial and organizational resource that can be applied to the Fountain Hills McDowell Mountain Preserve in order to: • Protect and improve the view of the mountains through revegetation. • Provide a safe and undisturbed area for wildlife on the Eastern side of the mountains. • Support trailhead and trail develop- ment and maintenance. • Coordinate a program for volunteer trail stewards. • Provide opportunities for public edu- cation about the Sonoran desert. The Conservancy may also support: • School programs. • A trail into McDowell Mountain Park. • A nature trail in the Preserve. In a public survey of residents, conducted by the Preservation Task Forcc the McDowell Mountain preservation effort through annual donations or a program of taxation. The Sonoran Conservancy of 1 vs - M153n ry52� ryx8n Boulder Access z. Control Ara. ryy,o 1 Sod Cemer Roadway Treddle - ryS�U Cut Slope Enhancements 2s Soil Cement Roadway ..t J' Stabilized Granite '1IWalkway Entry Gates to Match Subdivision Theme -Entry Monoment- Signage on Gabion Basket AEnhanced Pavement Brick Pavers '— -Boulder Access Control Area Put— pots." Paeldng LDt — porary Boulder W_,-_Ew. weUpper and zer Phases —Line Between 24'o Upper and Cower Phases `--Tempoary Access r Control Gate Enhanced Pavement Brick Pavers yabn Trailhead Access J scenic Overlook & RJ Y Pirnic Ramad. z" :.essibl G.biono~ Seatwall �. . Parking Ara Repining Wall Sail Cement Roadway Stabilized Decomposed Granite Parking Stalls zgsO itch Basin Walt. r.JZJ 0 20' 90' Scale: I°=20' ` um Date: 10/05/03 McDowell Mountain Preservation Commission Long Range Phasing Plan for the Preserve Central Trailhead Preliminary Cost Estimates from J2 Engineering Fiscal Year Project Phase 2003-2004 Phase I - $22,000 1. Master Plan development and cost estimates 2004-2005 Phase II - $54,000 1. Site Survey 2. Landscape Inventory 2005-2006 Phase III - $248,000 1. Site Preparation, demolition, and earthwork 2006-2007 Phase IV - $135,000 — 205,000 1. Basic utility preparation 2. Perimeter fencing 3. Drainage control and culver pipe 4. Grading and paving 2007-2008 Phase V - $361,000 1. Install utilities 2. Install roadway entrance and gating 2008-2009 Phase VI - $410,000 1. Landscape and irrigation 2. Restrooms 3. Site amenities Estimate of total cost: $1,300,000 over six years. This estimate does not include soft costs, design fees, construction administration, and construction contingency, which is estimated at 30 percent. All funding for this project will come from Open Space Development Fees. McDowell Mountain Preservation Commission Preserving All That Is Arizona