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NOTICE OF THE
WORK STUDY 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: TUESDAY, APRIL 13, 2004
TIME: 5:00 P.M. — 7:00 P.M.
WHERE: COMMUNITY CENTER
13001 N. LA MONTANA DR. (BALLROOM #1)
CALL TO ORDER AND ROLL CALL— Mayor Nichols
ALL ITEMS LISTED ARE FOR DISCUSSION ONLY. NO ACTION CAN OR WILL BE TAKEN. The primary purpose of
work session meetings is to provide the Town Council with the opportunity for in-depth discussion and study of specific subjects.
Public comment is not provided for on the Agenda and may be made only as approved by consensus of the Council. In appropriate
circumstances, a brief presentation may be permitted by a member of the public or another interested party on an Agenda item if
invited by the Mayor or the Town Manager to do so. The Presiding Officer may limit or end the time for such presentations.
5 - 5:30 pm 1.) UPDATE on the status of CIVIC CENTER PHASE II.
5:30-7pm 2.) DISCUSSION with possible direction to staff on how to proceed with the PROPOSITION
202 FUNDING POLICY.
3.) ADJOURNMENT.
DATES OF INTEREST
Scheduled work study dates/topics through June, 2004:
May 11, 2004 — Presentation of the Civic Center Phase II project schematic design.
June 8, 2004 — Discussion of ho,,� to proceed with dev lopment of a permanent sign proposal.
DATED this P day of April, 2004
Bevelyn J. Bqgder,,own 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 attend this meeting or to
�.)tain agenda information in large print format. Supporting documentation and staff reports furnished the council with this agenda
*%W,re available for review in the Clerk's office.
EAC1erk\AGENDAS\WS\2004\Work Session 4-13-04.doc Page 1 of 1 Last printed 4/9/2004 3:57 PM
TOWN OF FOUNTAIN HILLS
Office of Town Manager
INTER OFFICE MEMO
TO: The Honorable Mayor Nichols and
DT: April 9, 2004
Council
FR: Tim Pickering, Town Manager /�
RE: Proposition 202 follow up and
workshop agenda
At the March 4th Council meeting, the Council decided to hold a workshop to discuss the Town's
proposition 202 draft policy. At least five significant questions arose from the Council
discussion: 1) the lack of the Town Council decision making in this area; 2) the possibility of
additional priorities other than the three mentioned in the March 9th draft policy; 3) a change in
the order of priorities; 4) the ability to apply for funds from additional tribes and 5) excluding
groups in Town.
I have tried to address number 1, 2 and 4 in the draft policy attached by allowing the Council to
process all grant applications, adding preferred uses of funds, and allowing application to all
Indian Communities. See changes outlined in April 9th draft.
Also included in your packet are Council emails with differing views on the use of the funds, the
actual statute, and the Town Attorney's October 10, 2003, memo on the subject.
On a different subject, our Civic Center phase II architects will be on hand for a 30 minute
update on the building at our workshop on Tuesday.
Should you have any questions on either subject, please do not hesitate to contact me. I look
forward to seeing you on Tuesday night from 5 to 7 at the Community Center.
C: Andrew McGuire, Town Attorney
TpickeringAgp/my documents/propMfollowup.doc
01
TOWN OF FOUNTAIN HILLS, ARIZONA
POLICY AND PROCEDURES
FOR PROPOSITION 202 FUNDING
In order to secure for the Town of Fountain Hills, Arizona (the "Town") the benefits of
the Indian Self Reliance Initiative ("Prop. 202") passed by the Arizona voters in the 2002 state
general election and codified in ARiz. REV. STAT. § 5-601.02, and to promote the best interests
of the Town, the following Policy and Procedures for Prop. 202 Funding (this "Policy") is
hereby adopted by the Mayor and Council of the Town (the "Town Council").
Under ARiz. REV. STAT. § 5-601.02, Prop. 202 funds may be solicited by cities, towns
and counties from Arizona Indian Tribes for government services that benefit the general public,
including (i) public safety, (ii) mitigation of the impacts of gaming and (iii) promotion of
commerce and economic development. Because the legislation requires that the funds be
solicited by a municipality or county, the Town has been approached by various entities
requesting that Prop. 202 funds be procured on their behalf. Accordingly, the Town Council has
established the following Policy to create a uniform proposal process for such entities.
ARTICLE 1.
General Policies
1.1 Qualified Entities. The Town will only accept and process proposals for Prop. 202
Funds made by itself or by Town -based, non-profit organizations ("Qualified Entities").
Qualified Entities may submit such proposals to the Town, requesting funds from either- Fati
MeDowell Y. ayapai Nation ("Ft. MeDewell") or the Salt River Pima Mafieopa indian
ftatin Qualified Entities
r-equesting Pfop. 202 funds ffom any other Afizona indian Tfibe, n Indian Communities,
however, the Town will not process proposals that are submitted to Ft. M,,,-,, well of Salt n;.,,,,
Pita Indian Communities prior to being submitted to the Town. Moreover, the Town shall not
be a conduit for distribution of funds unless proposals for funding have been approved by the
Town prior to submission to Indian Communities.
1.2 Discretion Retained by Town Nfffntwef Council. The decision to process a
Qualified Entity's proposal shall be retained by the Town 4�W Council, or hi-s their designee,
subject to the application of sections 1.3 and 1.4 of this Article.
1.3 Town as Applicant. If, in any given quarter, the Town submits a proposal for
Prop. 202 funds from eithef Ft. MDaweil of SaitRivef-Dim a, it an Indian Community, the Town
will not process proposals from Qualified Entities for that particular quarter if the applicant is
requesting funds from the same tribe as the Town. Such Qualified Entities may request that the
Town hold their proposals for processing in a future quarter in which the Town is not an
applicant.
1.4 Preferred Fund Use Schedule. Where multiple Qualified Entities have submitted
proposals for Prop. 202 funds for the same quarter from the same tribe, the proposals shall be
processed in accordance with the following schedule of preferred fund uses:
a. Public safety;
b. Mitigation of impacts of gaming (i.e. education, social services and health
care);
C. Promotion of commerce and economic development (i.e., transportation
and tourism).
d. Other Town offered governmental services as determined by the Council.
1.5 Reimbursement for Costs. All costs incurred by the Town in connection with (i)
the administration of a proposal submission and (ii) the distribution of Prop. 202 funds shall be
subtracted from the total amount of Prop. 202 funds awarded, if any, to the Town on behalf of the
Qualified Entity. Such costs may include, but are not limited to (i) staff time spent processing
the application and any resulting final report, (ii) auditing fees and (iii) legal fees incurred in the
preparation of a resolution, intergovernmental agreement and any other legal document
associated with transferring the Prop. 202 funds to the Qualified Entity.
1.6 Funds Budgeted by Town. If the Qualified Entity receives Prop. 202 funds, the
distribution of those funds will not be used to supplant funding, if any, budgeted by the Town for
distribution to that entity in the applicable fiscal year. Accordingly, receipt of Prop 202 funds
shall eliminate a Qualified Entity from receiving Town funds in the following fiscal year.
1.7 Final Report. Any Qualified Entity receiving Prop. 202 funds shall submit to the
Town, no less than 30 days prior to the end of the fiscal year in which the funds were disbursed,
a final and complete report detailing how the funds were actually spent.
N'kw 1.8 Modification. The Town Council may modify this Policy from time to time.
ARTICLE 2.
Proposal Requirements
2.1 Deadline to Apply. All proposals for Prop. 202 funds shall be submitted to the
Town Clerk no less than 60 days prior to the deadline for such proposals as determined by the
respective tribes for that particular quarter.
2.2 Proposal Content. The proposal shall, at a minimum, contain the following
information:
a. Qualified Entity Information. The Qualified Entity shall provide a
general description of itself, including its corporate and organizational structure. This description
should also include the names of all officers and/or corporate directors directly related to or
associated with the proposed administration of the Prop. 202 funds.
b. Applicant Contact. The Qualified Entity shall provide the name, address,
phone number, facsimile, email and other relevant information for the primary contact for the
Qualified Entity.
9196.001\Prop. 202 policy.v1doc 2
4-9-04-1
OM
C. Detailed Description. The Qualified Entity shall provide a detailed
description of the manner in which the Prop. 202 funds, if awarded, will be used. This
description should also include a statement of how the proposed use of the funds meets one or
more of the purposes set forth in Section 1.4 above.
d. Estimated Costs. The Qualified Entity shall indicate the dollar amount
being requested from the tribe including a detailed budget. Additionally, the Qualified Entity
should provide any supporting documentation demonstrating that the amount requested is
directly related to the use proposed.
e. Information Requested by the Tribe. In the event that the tribe has issued
a solicitation of proposals that requests information not specifically required by this Article, the
proposals must include that information as well.
2.3 Incomplete Proposals. Incomplete proposals will not be processed.
9196.001\Prop. 202 policy.vldoc 3
4-9-04-1
Page 1 of 1
Pickering, Tim
From: Ralphe, Susan
Sent: Monday, March 08, 2004 5:04 PM
To: Pickering, Tim
Cc: Nichols, Wally; Nicola, Kathleen; Stevens, Leesa; Melendez, Rick; Kavanagh, John; Archambault,
Michael; Ralphe, Susan
Subject: Fwd: 202 policy
Hello, Tim,
An alternate perspective -- which I suggest -- would give very high priority to Town requests for 202 monies.
The intent of this legislation is to funnel dollars back into municipal governments because of expenses related
to Indian -gaming expenses.
The Town's responsibility is to seek revenues for essential and non -essential Town services, not those
provided by non-profit organizations, and our 202 policy must reflect that legally mandated responsibility.
All Prop 202 requests should come before the Council; otherwise the Council would be giving away powers
entrusted to it by voters. We don't want to let small amounts of money trickle through our fingers, unnoticed
by taxpayers paying the tab and almost unnoticed by the Council. It's desirable to make this a very public
process.
Respectfully,
Susan
4/9/2004
Page 1 of 1
Pickering, Tim
From: Nichols, Wally
Sent: Monday, March 08, 2004 11:43 AM
To: Pickering, Tim
Cc: Mayor & Town Council
Subject: 202 policy
hi tim,
i ahve been thinking about the 202 policy for the last 3 days. i have some rambling thoughts that i want to pass on
to you and the council. no particular order just some ramblings.
1. would like to be as inclusive as possible as far as recipients are concerned.
2. would also like to be as inclusive as possible from funding sources. canvas all gaming tribes.
3. prepare a list of qualified recipients when annual budget is created.
4. this list should include groups like FHUSD, senior center, theater, boys and girls club, tourism, posse, etc.
5. the town manager would be authorized to submit requests from these groups on his own authority if they are
below $20k.
6. these requests should be submitted every quarter until funded or rejected.
7. if the request exceeds $20k then it would be submitted to the council for approval.
8. if a group not on the authorized list requests funding they would be sumitted to the council for approval.
9. town requests in excess of $20k would require council approval.
10. it would be up to the gaming tribe to look at our quarterly submissions to determine priority and funding.
11. if a group doesn't make our qualified list they wouldn't be prevented from applying directly to the gaming tribe
for funds but fh would not be the receiver of these funds and pass them on to that group.
12. quarterly prepare a report for the council listing the groups and funds that have been requested and/or
granted.
hopefully this will keep the council in the loop for qualifying the groups and major funding requests. it lets the town
manager have the ability to process minor requests as they come along. reporting would include minor and major
requests so the council has knowledge of all activity. the dollar amounts i mentioned are just to highlite the
concept and they would be finalized when the policy is presented and discussed by council
hope these random thoughts help to move this subject along.
wally
4/9/2004
5-601.02 - New standard form of tribal state gaming compact; effects Page 1 of 32
5-601.02. New standard form of tribal-state_gaming compact effects
(Caution: 1998 Prop. 105 applies)
A. Notwithstanding any other law, within 30 days after receipt of a timely written request by the
governing body of an Indian tribe, the state, through the governor, shall enter into the new standard form
of tribal -state gaming compact with the requesting Indian tribe by executing the new compact and
forwarding it to the United States department of the interior for any required approval.
B. The state, through the governor, may only enter into a new compact with an Indian tribe with a pre-
existing compact if the Indian tribe requests a new compact pursuant to subsection A during the first 30
days after the effective date of this section. The state, through the governor, shall serve a timely notice
of nonrenewal of a pre-existing compact on any Indian tribe that does not request a new compact during
the first 30 days after the effective date of this section. Any Indian tribe without a pre-existing compact
on the effective date of this section may request a new compact at any time.
C. Notwithstanding any other law, an Indian tribe may conduct the following forms of gambling as
regulated gambling, as defined in section 13-3301, if the gambling is conducted in accordance with the
terms of a tribal -state gaming compact: gaming devices, keno, offtrack pari-mutuel wagering, pari-
mutuel wagering on horse racing, pari-mutuel wagering on dog racing, blackjack, poker (including
jackpot poker), and lottery.
D. The department of gaming shall administer and carry out its responsibilities under the procedures for
the transfer and pooling of unused gaming device allocations described in section 3(d) of the new
compact.
E. The state, through the governor, is authorized to negotiate and enter into amendments to new
compacts that are consistent with this chapter and with the policies of the Indian gaming regulatory act.
F. At the request of any Indian tribe for which paragraph 6 of subsection I does not specify a possible
additional devices allocation, the state, through the governor, shall negotiate with the Indian tribe for a
possible additional devices allocation. This allocation shall not be less than the smallest or greater than
the largest possible additional devices allocation provided to an Indian tribe with an equal number of
devices in the current device allocation column set forth in the new compact. At the option of the Indian
tribe, the possible additional devices allocation shall be included in either the Indian tribe's new compact
or an amendment to such new compact.
G. The authority and obligations of the state, through the governor, to negotiate additional compact
terms pursuant to subsections E and F are independent of and separate from the obligations of the state
pursuant to subsection A, and shall not constitute grounds for any delay by the state in carrying out its
obligations to execute and forward new compacts to the United States department of the interior as
required in subsection A.
H. The Arizona benefits fund is established consisting of monies paid to the state by Indian tribes
pursuant to section 12(c) of new compacts and interest earned on those monies. An Indian tribe with a
new compact satisfies the requirements of subsection F of section 5-601. Tribal contributions paid to the
state pursuant to a new compact shall be deposited in the Arizona benefits fund, not the permanent
tribal -state compact fund pursuant to subsection G of section 5-601.
The department of gaming shall administer the Arizona benefits fund. The department of gaming shall
http://www.azleg.state.az.us/ars/5/00601-02.htm 4/9/2004
5-601.02 - New standard form of tribal state gaming compact; effects Page 2 of 32
make an annual report to the governor, the president of the senate, the speaker of the house of
representatives and each Indian tribe with a new compact within 90 days after the end of the state's fiscal
year. This report shall be separate from any other report of the department of gaming. The report shall
include a statement of aggregate gross gaming revenue for all Indian tribes, aggregate revenues
deposited in the Arizona benefits fund, including interest thereon, expenditures made from the Arizona
benefits fund, and aggregate amounts contributed by all Indian tribes to cities, towns and counties
pursuant to paragraph 4 of this subsection. The department of gaming shall provide a copy of this report
to the secretary of state and the director of the Arizona state library, archives and public records.
2. Except for monies expended by the department of gaming as provided in subdivision (a) of paragraph
3 of this subsection, which shall be subject to appropriation, the Arizona benefits fund is not subject to
appropriation, and expenditures from the fund are not subject to outside approval notwithstanding any
statutory provision to the contrary. Monies paid to the state by Indian tribes pursuant to a new compact
shall be deposited directly with the Arizona benefits fund. On notice from the department of gaming, the
state treasurer shall invest and divest monies in the Arizona benefits fund as provided by section 35-313,
and monies earned from investment shall be credited to the fund. Monies in the Arizona benefits fund
shall be expended only as provided in paragraph 3 of this subsection, and shall not revert to any other
fund, including the state general fund. Monies in the Arizona benefits fund are exempt from the
provisions of section 35-190 relating to the lapsing of appropriations.
3. Monies in the Arizona benefits fund, including all investment earnings, shall be allocated as follows:
(a)(i) Eight million dollars or nine percent, whichever is greater, shall be used for reimbursement of
administrative and regulatory expenses, including expenses for development of and access to any online
electronic game management systems and for law enforcement activities incurred by the department of
gaming pursuant to this chapter. Any monies that are allocated pursuant to this subsection 3(a) that are
not appropriated to the department of gaming shall be deposited in the instructional improvement fund
established by section 15-978.
(ii) Two percent shall be used by the department of gaming to fund state and local programs for the
prevention and treatment of, and education concerning, problem gambling.
(b) Of the monies in the Arizona benefits fund that are not allocated pursuant to subdivision (a):
(i) Fifty-six percent shall be deposited in the instructional improvement fund established by section 15-
978 for use by school districts for classroom size reduction, teacher salary increases, dropout prevention
programs, and instructional improvement programs.
(ii) Twenty-eight percent shall be deposited in the trauma and emergency services fund established by
section 36-2903.07.
(iii) Eight percent shall be deposited in the Arizona wildlife conservation fund established by section 17-
299.
(iv) Eight percent shall be deposited in the tourism fund account established by paragraph 4 of
subsection A of section 41-2306 for statewide tourism promotion.
4. In addition to monies contributed to the Arizona benefits fund, twelve percent of tribal contributions
pursuant to new compacts shall be contributed by Indian tribes to cities, towns and counties as defined
in title 11, Arizona Revised Statutes, for government services that benefit the general public, including
http://www.azleg.state.az.us/ars/5/00601-02.htm 4/9/2004
5-601.02 - New standard form of tribal state gaming compact; effects Page 3 of 32
_J public safety, mitigation of impacts of gaming, and promotion of commerce and economic development.
(a) An Indian tribe may distribute such funds directly to cities, towns and counties for these purposes.
The amount of monies so distributed by each Indian tribe shall be reported to the department of gaming
in the quarterly report required by the new compact.
�-7 (b) Any monies comprising the twelve percent not so distributed by an Indian tribe shall be deposited in
the commerce and economic development commission local communities fund established by section
41-1505.12 for grants to cities, towns and counties.
5. The deposit of monies required by subdivision (b) of paragraph 3 of this subsection shall be made on
a quarterly basis, or more frequently if practicable.
I. For the purposes of this section:
1. "Gaming devices" means gaming devices as defined in subdivision (b)(i) of paragraph 6 of this
subsection.
2. "Indian gaming regulatory act" means the Indian gaming regulatory act of 1988 (P.L. 100-497; 102
Stat. 2467; 25 United States Code sections 2701 through 2721 and 18 United States Code sections 1166
through 1168).
3. "Indian lands" means lands as defined in 25 United States Code section 2703(4)(a) and (b), subject to
the provisions of 25 United States Code section 2719.
4. "Indian tribe" means:
(a) The Cocopah Indian tribe.
(b) The Fort Mojave Indian tribe.
(c) The Quechan tribe.
(d) The Tonto Apache tribe.
(e) The Yavapai-Apache nation.
(f) The Yavapai -Prescott Indian tribe.
(g) The Colorado River Indian tribes.
(h) The San Carlos Apache tribe.
(i) The White Mountain Apache tribe.
0) The Ak-Chin Indian community.
(k) The Fort Mcdowell Yavapai nation.
(1) The Salt River Pima-Maricopa Indian community.
http://www.azleg.state.az.us/ars/5/00601-02.htm 4/9/2004
JORDEN
BISCHOFF
MCGUIRE
& ROSE
P.L.C.
LAW OFFICES
MEMORANDUM
TO: Mayor and Town Council
Town Manager
FROM: Andrew J. McGuire
Town Attorney
DATE: October 10, 2003
SUBJECT: Proposition 202 Funding
7272 E. INDIAN SCHOOL ROAD, SUITE 205
SCOTTSDALE, ARIZONA 85251
TELEPHONE: 480-505-3900
FACSIMILE: 480-505-3901
ANDREW J. MCGUIRE
DIRECT LINE: 480-505-3905
e-mail: amcguire@jordenbischoff.com
The Town has been requested by a number of agencies and nonprofit groups to act as a conduit
for funding under Proposition 202. In order to process these requests, it is important for the staff
to receive policy direction from the Town Council with respect to the role that the Town will
play in the process. Set forth below are very brief descriptions of the two courses of action we
believe are available:
1. Town as a Conduit. Under this method, the Town would merely act as the funnel
through which all requests would be funded. Entities would submit requests
directly to the Indian communities and would execute funding agreements with
the Indian communities setting forth the conditions upon the use of the funds.
Under this method, the Town would enter into one or more intergovernmental
agreements with the Indian communities setting forth the limited nature of the
Town's role. Such an agreement would provide that (i) the respective
communities be solely responsible for the determination of whether an application
was appropriate under the applicable state law and (ii) the respective communities
indemnify the Town for any claims arising out of such determination. An IGA in
this "conduit" format is before you for consideration at your October 16, 2003,
Regular Town Council Meeting. This IGA is in essentially the same form as the
one previously entered into by the Salt River Pima-Maricopa Indian Community
and the City of Tucson.
2. Town as Gatekeeper. Under this method, the Town would act as a filter to
analyze and prioritize the requests for funding. As you all know, the Proposition
202 statutory provisions are very new, and there is no direct authority for the
Town to act in the gatekeeper capacity. However, the specific language of the
statute authorizes "[d]istributions to cities, towns, or counties for government
services that benefit the general public, including public safety, mitigation of
impacts of gambling, or promotion of commerce or economic development". I
Mayor and Town Council
Town Manager
(, Proposition 202 Policy
October 10, 2003
Page 2
believe the "government services" language may give rise to the implicit power of
the Town to regulate the application process. If the Town were to assume the
regulatory role, it would be in the position to make the determination of whether
each application is appropriate under the statutes. However, a necessary
counterpart to the ability to regulate is the promulgation of a set of objective
criteria for evaluating applications. We have not solicited the input of the Indian
communities with respect to this "gatekeeper" idea.
Because the Town will be facilitating the Proposition 202 funding process through the Town's
books, it will be necessary under either method to develop policies with respect to accounting
procedures to be applied to such funds. Likewise, staff will need direction as to whether the
Town Council desires to implement administrative fees for the staff time required to facilitate the
process, whether the Town is acting as a conduit or a gatekeeper. Staff has been in contact with
representatives from both Phoenix and Mesa to coordinate the effort of developing a uniform
policy for Proposition 202 funds. However, prior to proceeding with the steps necessary to
jointly develop the administrative mechanism for Proposition 202 funding, it is imperative that
staff receive your policy direction with respect to the role the Town will play in the process.
9196.004\Pmp. 202.memdoc
10-10-03-1