HomeMy WebLinkAbout2021.1116.TCRM.Agenda.Packet
NOTICE OF MEETING
REGULAR MEETING
FOUNTAIN HILLS TOWN COUNCIL
Mayor Ginny Dickey
Vice Mayor Alan Magazine
Councilmember Gerry Friedel
Councilmember Sharron Grzybowski
Councilmember Peggy McMahon
Councilmember Mike Scharnow
Councilmember David Spelich
TIME:5:30 P.M. – REGULAR MEETING
WHEN:TUESDAY, NOVEMBER 16, 2021
WHERE:
FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the
Town’s various Commission, Committee or Board members may be in attendance at the Council meeting.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a
right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child.
Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present
may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town
Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may
be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents
pursuant to A.R.S. §1-602.A.9 have been waived.
REQUEST TO COMMENT
The public is welcome to participate in Council meetings.
TO SPEAK TO AN AGENDA ITEM, please complete a Request to Comment card, located in the back of the Council
Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which
you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments
should be directed through the Presiding Officer and not to individual Councilmembers.
TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a
written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town
Clerk prior to discussion, if possible.
TO COMMENT IN WRITING ONLINE: Please feel free to provide your comments by visiting
https://www.fh.az.gov/publiccomment and SUBMIT a Public Comment Card by 3:00 PM on the day of the meeting .
These comments will be shared with the Town Council.
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at
this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice
and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S.
§38-431.03(A)(3).
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey
2.MOMENT OF SILENCE
3.ROLL CALL – Mayor Dickey
4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER
A.RECOGNITION OF Outgoing Community Services Advisory Commission Chairman Amy
Arnold.
5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
A.RECOGNITION: A $27,000 Donation from the Fountain Hills Association of Dog Owners
Group (ADOG), for a Shade Structure in the Desert Vista Dog Park, and thanking Denise
Dunning-Ricketts, President of ADOG, for the generous contribution.
B.PRESENTATION: Annual financial audit results by Heinfeld Meech & Co.
C.PRESENTATION: First Quarter FY22 Revenue Update
6.CALL TO THE PUBLIC
Pursuant to A.R.S. §38-431.01(H), 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 properly noticed for discussion and legal action. At the
conclusion of the Call to the Public, individual councilmembers 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.
7.CONSENT AGENDA ITEMS
Town Council Regular Meeting of November 16, 2021 2 of 4
7.CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be
enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all
recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items
unless a councilmember or member of the public so requests. If a councilmember or member of the public
wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the
Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for
which the item was scheduled. The items will be removed from the Consent Agenda and considered in its
normal sequence on the agenda.
A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes of the Regular Meeting
of November 2, 2021.
B.CONSIDERATION AND POSSIBLE ACTION: Approving a Special Event Liquor License
application for the Fountain Hills Democratic Club for a fundraiser to be held in ballrooms
1, 3 and 4 at the Fountain Hills Community Center, 13001 N. La Montana Drive, Fountain
Hills, AZ 85268 on December 9, 2021, from 6pm-8:30pm.
C.CONSIDERATION AND POSSIBLE ACTION: Approving a Special Event Liquor License
application submitted by Jealine Goldapper, representing the Fountain Hills Unified School
District PTO, for a fundraiser to be held in the Grand Ballroom of the Fountain Hills
Community Center on March 3, 2022, from 5 pm to 11 pm.
D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2021-35 Decommissioning Three
Works of Public Art located at the Town of Fountain Hills Community Center.
E.CONSIDERATION AND POSSIBLE ACTION: Approval of Contract C2022-036 with Matlick
Enterprises, Inc. dba United Fire Equipment Company in an amount not to exceed
$75,000.00 for replacement of extrication equipment and lifting airbags.
8.REGULAR AGENDA
A.CONSIDERATION AND POSSIBLE ACTION: Ordinance 21-11, amending Section 11-1-7,
Noise, of the Town Code.
B.CONSIDERATION AND POSSIBLE ACTION: Ordinance 21-19, amending The Town of
Fountain Hills Town Code Chapter 12, Article 12-2, Traffic Control, Section 12-2-2, Traffic
Control Devices; Speed Limits
C.CONSIDERATION AND POSSIBLE ACTION: on a proposed grant program to assist
non-profit organizations negatively impacted by the COVID-19 pandemic.
Town Council Regular Meeting of November 16, 2021 3 of 4
Town Council Regular Meeting of November 16, 2021 4 of 4
D. CONSIDERATION AND POSSIBLE ACTION: on the 2022 Proposed Legislative Agenda.
E. CONSIDERATION AND POSSIBLE ACTION: Professional Services Agreement 2022-043 with
McGrath Consulting to conduct a financial analysis of fire and emergency medical services
with a total not-to-exceed amount of$40,000 and associated budget transfers.
F. CONSIDERATION AND POSSIBLE ACTION: Professional Services Agreement 2022-046 with
Matrix Consulting to conduct a financial analysis of law enforcement services with a total
not-to-exceed amount of$79,000 and associated budget transfer.
G. CONSIDERATION AND POSSIBLE ACTION:Approval of the Fee Waiver Policy Relating to
Youth Fields, Courts, and Sport Leagues.
H. CONSIDERATION AND POSSIBLE DIRECTION: Community Center and Special Event Fee
Waiver Policy.
9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER
Item(s)listed below are related only to the propriety of(i)placing such item(s)on a future agenda for action,
Ior(ii)directing staff to conduct further research and report back to the Council.
I 10. ADJOURNMENT
CERTIFICATE OF POSTING OF NOTICE
The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed
by the Town Council with the Town Clerk.
Dated is/o` day of ,2021.
lizabeth A. !f , MMC,Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities.Please call 480-816-5199(voice)
or 1-800-367-8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in the 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.
ITEM 5. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Public Appearances/Presentations Submitting Department: Administration
Prepared by: Grady E. Miller, Town Manager
Staff Contact Information: Grady E. Miller, Town Manager
SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): RECOGNITION: A $27,000
Donation from the Fountain Hills Association of Dog Owners Group (ADOG), for a Shade Structure in the
Desert Vista Dog Park, and thanking Denise Dunning-Ricketts, President of ADOG, for the generous
contribution.
Staff Summary (Background)
The Town of Fountain Hills recently learned that the Fountain Hills Association of Dog Owners Group
(ADOG) planned to donate $27,000 for the purchase of a shade structure in the Desert Vista Dog Park.
The previous shade structure had been donated by users of the dog park several years ago. After
exceeding its useful life, staff notified ADOG that it was going to be removed. Since the Town did not
have funding in the budget to replace the shade structure, ADOG appealed to its membership to
fundraise for the structure. Thanks to a donor stepping up with a sizable contribution towards the
shade structure, Denise Dunn-Ricketts, President of ADOG, notified staff that the organization would be
donating $27,000 for the purchase and installation of a new shade structure.
On November 16, 2021, the Town Council will be recognizing and thanking Denise Dunn-Ricketts for
ADOG's generous financial contribution and enhancement to the Dog Park.
Form Review
Inbox Reviewed By Date
Finance Director David Pock 11/08/2021 11:47 AM
Town Attorney Aaron D. Arnson 11/08/2021 12:50 PM
Town Manager (Originator)Grady E. Miller 11/08/2021 02:22 PM
Form Started By: Grady E. Miller Started On: 11/05/2021 12:00 PM
Final Approval Date: 11/08/2021
ITEM 5. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Public Appearances/Presentations Submitting Department: Administration
Prepared by: David Pock, Finance Director
Staff Contact Information: David Pock, Finance Director
SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): PRESENTATION: Annual
financial audit results by Heinfeld Meech & Co.
Staff Summary (Background)
In compliance with State statute, an annual financial audit of the Town is completed each year by an
independent auditing firm. Heinfeld Meech & Co. completed the annual audit of the Town for the fiscal
year ended 6/30/2021. Its audit was conducted in accordance with U.S. generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Heinfeld Meech & Co. has issued the Town an
unmodified opinion for fiscal year 2021. As this is a presentation only, there is no required action from
the Town Council. However, the Mayor and Council will have an opportunity to ask questions of the
representatives from the auditing firm.
Attachments
Annual Comprehensive Financial Report
Single Audit Report
HURF Report
LTAF II Report
Expenditure Limitation Report
Form Review
Inbox Reviewed By Date
Finance Director (Originator)David Pock 11/08/2021 11:45 AM
Town Attorney Aaron D. Arnson 11/08/2021 12:43 PM
Town Manager Grady E. Miller 11/08/2021 12:50 PM
Form Started By: David Pock Started On: 10/25/2021 05:15 PM
Final Approval Date: 11/08/2021
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Issued by:
Administration Department
Finance Division
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1
List of Principal Officials 11
GFOA Certificate of Achievement 12
Organizational Chart 13
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 17
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 23
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 36
Statement of Activities 37
Fund Financial Statements:
Balance Sheet – Governmental Funds 40
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 43
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 44
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 46
Statement of Net Position – Proprietary Fund 47
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Fund 48
Statement of Cash Flows – Proprietary Fund 49
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION – continued Page
Notes to Financial Statements 50
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 70
Highway User Revenue Fund 71
Grants Fund 72
Note to Required Supplementary Information 73
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 76
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 78
Special Revenue Funds:
Combining Balance Sheet 82
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 84
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 86
Debt Service Funds:
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 94
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION – continued Page
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 96
Capital Projects Fund:
Combining Balance Sheet 99
Combining Statement of Revenues, Expenditures and Changes in 100
Fund Balances
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 102
STATISTICAL SECTION
Financial Trends:
Net Position by Component 106
Changes in Net Position 108
Fund Balances – Governmental Funds 110
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 112
Revenue Capacity:
Governmental Activities – Tax Revenues by Source 114
Assessed Value and Estimated Actual Value of Taxable Property 115
Principal Property Taxpayers 116
Property Tax Levies and Collections 117
Taxable Sales by Category 118
Direct and Overlapping Sales Tax Rates 120
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
STATISTICAL SECTION – continued Page
Debt Capacity:
Ratios of Outstanding Debt by Type 121
Ratios of General Bonded Debt Outstanding 122
Direct and Overlapping Governmental Activities Debt 123
Legal Debt Margin Information 124
Calculation of Legal Debt Margin 126
Revenue Bond Coverage 127
Demographic and Economic Information:
Demographic and Economic Statistics 128
Principal Employers 129
Operating Information:
Authorized Full-Time Equivalent Government Employees by Function 130
Operating Indicators by Function 131
Capital Assets Statistics by Function 132
(This page intentionally left blank)
INTRODUCTORY SECTION
(This page intentionally left blank)
www.fh.az.gov
November 4, 2021
To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Fountain
Hills:
State law requires that all general-purpose local governments publish, within six months of the
close of each fiscal year, a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America and audited in
accordance with auditing standards generally accepted in the United States by a certified public
accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the
Annual Comprehensive Financial Report (ACFR) of the Town of Fountain Hills (Town) for the
fiscal year ended June 30, 2021.
This report consists of management’s representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework that is designed both to protect the government’s assets from loss, theft, or misuse and
to compile sufficient reliable information for the preparation of the Town of Fountain Hills’s
financial statements in conformity with accounting principles generally accepted in the United
States of America. Because the cost of internal controls should not outweigh their benefits, the
Town’s comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free of material misstatement.
As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The Town’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified
public accounting firm. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the Town for the fiscal year ended June 30, 2021, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditors concluded, based upon the audit, that
there was a reasonable basis for rendering an unmodified opinion that the Town’s financial
statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with
accounting principles generally accepted in the United States of America. The independent
auditor’s report is presented as the first component of the financial section of this report.
TOWN OF FOUNTAIN HILLS
16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
480.816.5100 | Fax: 480.837.3145
Page 1
Accounting principles generally accepted in the Unites States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Town of Fountain Hills’s MD&A can be found immediately following the report of the
independent auditors.
PROFILE OF THE GOVERNMENT
The Town of Fountain Hills overlooks the Verde River Valley and the east valley of the metro
Phoenix area. The Town is a master planned community established in 1970 by McCulloch
Properties (now MCO Properties, Inc.). Prior to 1970, the area was a cattle ranch and was part of
one of the largest land and cattle holdings in Arizona. The land was purchased by Robert
McCulloch in the late 1960s and the community designed by Charles Wood, Jr. (designer of
Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest
man-made fountains, a focal point that attracts thousands of visitors each year.
Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and
Scottsdale on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima-
Maricopa Indian Community on the south, and by the McDowell Mountain Regional Park on the
north. The elevation is 1,520 feet at the fountain, 2,460 feet at the Adero Canyon Trailhead, and is
approximately 500 feet above Phoenix.
Over the past thirty years, Fountain Hills has grown from 10,030 residents to a town of 23,820 in
2020. On June 5, 2006, the Town of Fountain Hills became twenty square miles and about ten
percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State Trust
Land occurred over a two and one-half year period, and development of the land will occur in the
years to come. Annexing this property into the Town ensures that its future development will be
of the highest quality under Town standards.
The Town offers a wide range of living
accommodations, from small
condominium complexes to large custom
homes. Fountain Hills also offers
recreational and cultural programs and
services that contribute to a high quality
of life for its residents. The community
consists of primarily residential property
and open space; of the total 20.32 square
miles of land, only 2.5% of the total is
zoned commercial and/or industrial,
23.3% is preserved as open space and
51.0% is residential.
Page 2
The Town’s Mission Statement
The Town of Fountain Hills’ purpose is to serve the best interests of the community by:
providing for its safety and well-being;
respecting its special, small-town character and quality of life;
providing superior public services;
sustaining the public trust through open and responsive government;
and maintaining the stewardship and preservation of its financial and natural resources.
To serve, respect, and provide trust and stewardship.
The Town of Fountain Hills is an Arizona municipal corporation, acting as a general law town as
prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989,
with the governmental and administrative affairs of the Town operating under the Council-
Manager form of government. Legislative authority is vested in a seven member Town Council.
The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town
Council meetings. The members of the Council are elected at large and serve four year overlapping
terms. The Town Council is responsible for the adoption of local ordinances, budget adoption,
appointment of residents to citizen advisory committees and hiring the Town Manager. The Town
Manager is responsible for implementation of the policies of the Town Council and overall
management of the Town through department directors and approximately 62 FTE employees.
The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town
Council.
The Town provides or administers a full range of services
including public safety (law enforcement, fire and
emergency medical services); development services (code
enforcement, planning and zoning); public works
(including construction and maintenance of streets and
infrastructure); municipal court; recreational activities;
community center; senior services and cultural events.
The Town does not maintain utility or other operations
that require the establishment of enterprise funds.
Fountain Hills Town Hall
Page 3
The financial reporting entity (the Town) includes all the funds of the primary government (i.e., the
Town of Fountain Hills as legally defined) as well as all of its component units. The component units
consist of legally separate entities for which the primary government is financially accountable.
Blended component units, although legally separate entities, are, in substance, part of the primary
government’s operations and are included as part of the primary government. Accordingly, the
Cottonwoods Maintenance District, the Eagle Mountain Community Facilities District and the
Fountain Hills Municipal Property Corporation are included in the financial report of the Town.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the Town of Fountain Hills
operates.
Internal Controls
As earlier noted, the management of the Town of Fountain Hills, Arizona, is responsible for
establishing and maintaining a system of internal control. Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding;
1) Safeguarding of assets against loss from unauthorized use or deposition, and
2) Reliability of financial records for preparing financial statements and maintaining
accountability for assets.
The concept of reasonable assurance recognizes:
1) The cost of a control should not exceed the benefits likely to be derived, and
2) The valuation of costs and benefits requires estimates and judgments by management.
The system of internal control is subject to periodic evaluation by management and is also considered
by the independent auditors in connection with the annual audit of the Town’s financial statements. All
internal control evaluations occur within the above framework. The Town's internal accounting
controls are considered to adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Budgetary Controls
The budget process is a cyclical process and begins each year with the preparation of the base budget
by each department head. Each budget is based on expenditures to date and the previous years’
experience. The departments’ base budgets, along with any requests for new positions, programs or
services are reviewed by the Town Manager. The Town Manager then meets with department heads to
review their base budgets and requests for new services and/or programs. Once management has
reviewed the departments’ requests, a tentative budget is presented to the Town Council by the Town
Manager.
Page 4
The Town Council formally adopts the budget and appropriates funding for the General Fund, Special
Revenue Funds, Debt Service Funds, Internal Service Funds, and Capital Projects Funds. Therefore,
these funds have appropriated budgets, and budget to actual information is presented. In April/May,
the Town Manager submits to the Town Council a proposed budget for the fiscal year commencing the
following July 1. The budget includes proposed expenditures and the means of financing them. The
Town Council is then required to hold public hearings on the proposed budget and to adopt a final
budget by June 30, the close of the Town of Fountain Hills’ fiscal year. Public hearings on the budget are
held each year in accordance with legal requirements in order to obtain comments from local taxpayers. The
budget is legally enacted through passage of a resolution and is prepared by fund and department. The
resolution sets the limit for expenditures during the fiscal year. The Town Manager may authorize
transfers from and within personnel and from operating capital to services or supplies within a
department. All inter-departmental and inter-fund transfers are approved by Town Council. Additional
expenditures may be authorized for expenditures directly necessitated by a natural or man-made
disaster as prescribed in the State Constitution, Article IX, Section 20.
The Town is subject to the State of Arizona’s Expenditure Limitation Law for Towns and Cities. This
law does not permit the Town to spend more than budgeted revenues plus the carry-over of unrestricted
cash balance from the prior fiscal year. The limitation is applied to the total of the combined funds. All
appropriations lapse at year-end.
To ensure compliance with the state imposed expenditure limitation, a uniform expenditure report must
be filed with the state each year. This report reconciles total Town expenditures from the audited
financial statements to total expenditures for reporting in accordance with the state’s uniform
expenditure reporting system (ARS Section 41-1279.07).
The appropriated budget is prepared by fund and department. Department heads may make transfers of
non-personnel appropriations within their department. Transfers of appropriations between
departments, however, require Town Council approval. Budget-to-actual comparisons are provided in
this report for each individual governmental fund for which an appropriated annual budget has been
adopted. Budget-to-actual comparisons for the General Fund and Major Special Revenue Funds are
presented in the Required Supplementary Information and all other funds are presented in Combining
and Individual Fund Financial Statements and Schedules.
Local Economy
The Town of Fountain Hills, Arizona, relies mostly on its Transaction Privilege Tax (Sales Tax) and
Voter-Approved Local Revenue (State Shared Revenue) collections to fund nearly 90% of its General
Fund (Operating) expenditures. During the past fiscal year, the Town’s revenue collections from these
sources met, or exceeded, budgeted expectations. However, the effects of the pandemic on personal
income will not have an effect on collections until Fiscal Year 2023 since it lags by two years. In order
to address these issues, the Town has proposed a baseline budget requiring any new positions to be
deemed mission critical. All vacancies will be evaluated to assess the need for replacement, elimination
or modification to the job description. The Town will be closely monitoring its revenue sources and
make adjustments accordingly.
Page 5
Local sales tax collections have continued to grow during the past fiscal year. The following chart is a
look at the past five years’ local sales tax activity by category:
As shown in the chart, sales tax collections continue to show signs of moderate growth and relative
stability across all categories. Retail sales experienced a 27% increase over the prior year, and
restaurant/bar revenues have recovered to pre-pandemic levels with an increase of 19% compared to
FY20. Construction sales tax, a one-time revenue source, is driven entirely by development activity in
the community and increased slightly compared to the prior year. Recent building permit activity
indicates that construction sales tax is likely to be stable over the next few fiscal years. The
Transportation/Communication/Utility and Services categories also increased during the year with an
8.8% and 22.8% increase in revenues, respectively.
Construction activity provides revenue to the Town through local sales tax, the proceeds of which are
utilized for general operations and capital expenditures. Without the resources to fund capital projects,
the Town must find additional funds to pay for necessary infrastructure projects. For operating costs,
the Town is dependent upon State-shared revenues and local sales tax as a major source of operating
revenue, accounting for 93% of total General Fund revenue collected for fiscal year 2020-21.
State-shared revenues are derived as a proportionate share of state sales, income and vehicle license
taxes which are distributed based on the Town’s population compared to all other incorporated cities
and towns in Arizona (currently 0.44%). State-shared income tax revenue category is based on two
years prior personal and corporate earnings. Revenue from the State income tax increased by 11.5% in
fiscal year 2020-21. State sales tax has increased over the past several years, and this year continued
the trend by increasing revenue by 15.8% compared to the prior year.
Other local activity has remained fairly consistent during the period as a result of the lack of major
retailers (the Town has three grocery stores and one major retailer). The opportunity to further expand
the retail tax base in Fountain Hills is limited by the lack of available commercial land – over 70% of
the currently available commercial lots are already developed.
Page 6
Development Activity
Page 7
Economic Outlook
Retail Sales – Not having a property tax, the Town of Fountain Hills relies heavily on transaction
privilege taxes (TPT), sometimes called a sales tax. Overall, Town TPT revenues provide over 50% of
the General Fund revenues. On November 1, 2019 the Town’s TPT rate went up 0.3%, The Town's
TPT rate is currently at 2.9%. The construction TPT is equally divided between the General Fund and
the Capital Projects Fund.
State-Shared Revenues – The Town of Fountain Hills receives significant revenue allocations from
the State. These Voter-Approved Local Revenues (VALR), or state-shared revenues, include
allocations of the state-collected income tax, sales tax, fuel tax and motor vehicle-in-lieu taxes. All but
the fuel tax and the vehicle license tax are placed in the Town's General Fund, where it is used to sustain
a large portion of the Town's day-to-day activities. These revenue sources have improved recently with
the economy showing signs of recovery.
Highway User Revenue Fund (Streets) – The Town receives a proportionate share of the fuel tax
collected in Maricopa County. These revenues are placed in the Streets Fund to be used specifically for
street maintenance and related activity. Although the state-shared revenue formula generally allocates
revenues based on official census data, in recent years, the state legislature has reduced the formula
distribution of state-shared revenues to cities.
Long-term Financial Planning
Fountain Hills’ Financial Policies are balanced on sound financial reserves and conservative revenue
growth forecasts for the foreseeable future. However, potential for State legislative impacts to revenue-
sharing, reductions in local revenues, and additional demands for essential Town services remain. The
Town’s Financial Policies set forth guidelines against which current budgetary performance can be
measured and proposals for future programs can be evaluated.
The Town’s Financial Policies have helped weather the uncertainty encountered during the pandemic.
This policy continues to require the Town to internally restrict an amount equal to 20% of the average
actual General Fund revenues for the preceding five fiscal years as part of its General Fund balance.
This amount is estimated to be about 60 days of expenditures coverage and is considered a “Rainy
Day” fund.
Additionally, a reserve of 20% of the average actual General Fund revenues for the preceding five
fiscal years will be maintained as Unassigned Fund Balance. This additional fund balance reserve will
provide increased flexibility in the event of unanticipated decreases in revenue collection.
The Council also adopted Financial Policies that include guidelines for the issuance of debt for capital
expenditures, community facility districts, financing alternatives, expenditure controls and financial
planning. The policy was amended during FY 09-10 to reduce the allocation of the local construction
sales tax to the Capital Projects Fund from 85% to 50%, reflecting the transition from one-time building
activity to ongoing redevelopment activity. The debt policy was prepared with a preference for “pay-
as-you-go” financing for capital spending. However, the policy does allow for bond financing of larger
projects so that the cost can be equitably distributed among the Town’s current and future residents.
Page 8
In early 2009, the Strategic Planning Advisory Commission (SPAC) began the process of gathering
public input to update the Strategic Plan’s vision, confirm residents’ values, and create a fresh structure
for the Strategic Plan revision. Subsequently, Strategic Plan 2010 was built upon the foundation of a
clearly defined vision statement and eight key values, with specific indicators to evaluate Council and
staff priorities. In 2017, SPAC again updated the Strategic Plan. Based on citizen input, the Strategic
Plan is designed to guide our future decisions grounded on these common values:
1.Economic Growth
2.Infrastructure Maintenance
3. Demographic Balance
4.Financial Stability and Sustainability
5.Community and Quality of Life
These values guide the Town’s annual budget process. Although the Plan was to be updated in 2021,
the committee was unable to meet due to the pandemic. As a result, the newest version of the Strategic
Plan will be introduced in fiscal year 2021-22.
MAJOR INITIATIVES AND SERVICE EFFORTS AND ACCOMPLISHMENTS
The Town of Fountain Hills’ adopted budget for fiscal year 2020-21 reflected a cautious approach to
the anticipated recovery from the pandemic. Due to the uncertain economic conditions, the Town
reduced its expected revenue projections and kept expenditure levels low as well. At the start of the
fiscal year, the CARES Act provided some resources to local governments through the State of
Arizona. These resources allowed the Town to save nearly $2.9M in the General Fund that would have
otherwise been spent to pay for public safety contracts with Maricopa County Sheriff’s Office and
Rural Metro.
The Town Council established priorities in FY16-17 of which the top two are Economic Development
and Pavement Management. In order to implement the Pavement Management program, the Council
approved the use of Vehicle License Tax revenues to be dedicated to annual pavement maintenance
with an effective date of July 1, 2013. Also, effective July 1, 2016, 0.2% of local sales tax revenues
that had been allocated to MPC debt service payments were reallocated to pavement maintenance.
Economic Development initiatives are funded through a dedicated portion of the local sales tax which
provides funding for business attraction, retention and expansion.
For the Year
The following list depicts the continued commitment of the Town of Fountain Hills to make the
community a better place to live. Fiscal year 2020-21 goals attained are summarized within this list of
accomplishments:
Implemented policies and programs to address the worldwide pandemic
Provided $300,000 in assistance to local businesses in the form of grants
Completed the roundabout located at La Montana and Avenue of the Fountains
Completed major storm drain improvements on Panorama Drive
Continued park improvements at Four Peaks Park, including a basketball court, new
playground equipment covered by a new shade structure, and completed sidewalk loop
Secured grant funding from the Arizona Office of Tourism - Proposition 302
Secured grant funding from Salt River Pima-Maricopa Indian Community - Proposition 202
Page 9
AWARDS AND ACKNOWLEDGEMENTS
Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Town of Fountain Hills for its Annual Comprehensive
Financial Report (ACFR) for the fiscal year ended June 30, 2020. This was the twenty-fifth consecutive
year that the Town has received this prestigious award. In order to be awarded a Certificate of
Achievement, the Town published an easily readable and efficiently organized ACFR. This report
satisfied both accounting principles generally accepted in the United States of America (GAAP) and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR
continues to meet the Certificate of Achievement program’s requirements, and we will be submitting
it to the GFOA to determine its eligibility for the fiscal year ended 2021 Certificate.
For the ninth year, the Town was also given the Award for Outstanding Achievement in Popular Annual
Financial Reporting for the fiscal year ended June 30, 2020.
In addition, the government received the GFOA’s Distinguished Budget Presentation Award for its
annual budget for the fiscal year beginning July 1, 2020. In order to qualify for the Distinguished
Budget Presentation Award, the government’s budget document was judged to be proficient in several
categories, including as a policy document, a financial plan, an operations guide, and a communications
device. This is the nineteenth consecutive year that the Town has received the award.
Acknowledgments
The preparation of this Annual Comprehensive Financial Report could not have been accomplished
without the efficient and dedicated services of the entire Finance Division team. I also wish to extend
my appreciation to the Mayor and members of Town Council for their leadership and support in
planning and conducting the financial affairs of the Town in a responsible and progressive manner.
Each employee of the Town has my sincere appreciation for the contributions made in the preparation
of this report.
Respectfully submitted,
Grady E. Miller
Town Manager
Page 10
TOWN OF FOUNTAIN HILLS, ARIZONA
LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2021
ELECTED OFFICIALS
Ginny Dickey, Mayor
Alan Magazine, Vice-Mayor
Gerry Friedel, Councilmember
Sharron Grzybowski, Councilmember
Peggy McMahon, Councilmember
Mike Scharnow, Councilmember
David Spelich, Councilmember
DEPARTMENT DIRECTORS
Grady Miller, Town Manager
David Trimble, Deputy Town Manager/Administrative Services Director
Rachael Goodwin, Community Services Director
James Smith, Economic Development Director
John Wesley, Development Services Director
Justin Weldy, Public Works Director
David Pock, Finance Director
Elizabeth Burke, Town Clerk
Captain Dave Ott, Rural Metro Corporation, Fire Chief
Captain Larry Kratzer, Maricopa County Sheriff’s Office, District Commander
Robert Melton, Presiding Judge
Mark Iacovino, The Law Office of Mark Iacovino, Town Prosecutor
Aaron Arnson, Pierce Coleman PLLC, Town Attorney
Page 11
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Fountain Hills
Arizona
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
Page 12
Citizens of Fountain HillsCitizens of Fountain Hills
Presiding Judge
Town of Fountain Hills Organization
Fire / EMS AdministrationAdministration Law
Enforcement
Town Manager Town AttorneyTown Prosecutor
Appointed
by Council
Contracted
Mayor and Town CouncilMayor and Town Council
Development
Services
Recreation
Community
Services
Community
Center
Code
Enforcement
Building Safety
Senior
Services
Parks
Volunteer
Program
GIS
Planning
Engineering
Streets
Facilities
Public Works
Inspection
Finance Finance
Town ClerkTown Clerk
Administrative
Services
Administrative
Services
Economic
Development /
Tourism
Economic
Development /
Tourism
Community
Relations
Community
Relations
Page 13
(This page intentionally left blank)
Page 14
FINANCIAL SECTION
Page 15
(This page intentionally left blank)
Page 16
Independent Auditor’s Report
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of
and for the year ended June 30, 2021, and the related notes to the financial statements, which
collectively comprise the Town’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the Town of Fountain Hills, Arizona, as of June 30, 2021, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of Town of Fountain Hills, Arizona, and to meet
our other ethical responsibilities in accordance with the relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue
as a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Page 17
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable
user based on the financial statements. In performing an audit in accordance with generally accepted
auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, and budgetary comparison information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Page 18
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The Combining and Individual Fund
Financial Statements and Schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules
information is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the Introductory Section and Statistical Section but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do
not cover the other information and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on other work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 4,
2021, on our consideration of Town of Fountain Hills, Arizona’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the Town of Fountain Hills, Arizona’s internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Town of Fountain Hills, Arizona’s
internal control over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 4, 2021
Page 19
(This page intentionally left blank)
Page 20
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 21
(This page intentionally left blank)
Page 22
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
As management of the Town of Fountain Hills, Arizona (Town), we offer readers of the Town’s
financial statements this narrative overview and analysis of the financial activities of the Town
for the fiscal year ended June 30, 2021. This discussion and analysis is intended to be an easily
readable breakdown of the Town of Fountain Hills’ financial activities based on currently known
facts, decisions and conditions. This analysis will focus on current year activities and operations
and should be read in combination with the transmittal letter and the financial statements that
follow. The management’s discussion and analysis is presented as required supplementary
information to supplement the basic financial statements.
FINANCIAL HIGHLIGHTS
The Town’s total net position of governmental activities increased $3.6 million to $127.8
million, representing a 2.9 percent increase of the total net position.
General revenues from governmental activities accounted for $24.6 million in revenue, or
78.4 percent of all revenues from governmental activities. Program specific revenues in the
form of charges for services and grants and contributions accounted for $6.8 million or 21.6
percent of total governmental activities revenues.
The Town had $27.8 million in expenses related to governmental activities, an increase of 3.8
percent from the prior fiscal year, primarily due to increased capital project expenditures.
Among the major governmental funds, the General Fund had $22.2 million in current fiscal
year revenues, which consisted primarily of taxes and intergovernmental revenues. The total
expenditures of the General Fund were $14.0 million. The General Fund’s fund balance
increased $6.0 million to $15.5 million at the end of the current fiscal year.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Page 23
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
OVERVIEW OF FINANCIAL STATEMENTS – continued
Government-wide financial statements. The government-wide financial statements provide
readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. These statements are prepared using the accrual basis of accounting.
The Statement of Net Position presents information on all of the Town’s assets, liabilities, and
deferred inflows/outflows of resources with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating.
The Statement of Activities presents information showing how the Town’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g., earned but unused compensated absences).
The government-wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities). The governmental
activities of the Town include administration, development services, public safety, public works,
and culture and recreation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All Town funds are included in the governmental fund classification, except for one
internal service fund that is classified as a proprietary fund.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near-term inflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the Town’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
Town’s near-term financing decision. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
Page 24
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
OVERVIEW OF FINANCIAL STATEMENTS – continued
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Highway User Revenue (HURF), Grants, and Capital Projects Funds, all of which are
considered major funds. Data from other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds
is provided in the form of combining statements and schedules.
Proprietary fund. The Town maintains one proprietary fund, which is the Technology
Replacement Fund, an internal service fund. The fund provides goods and services to other
funds and departments on a cost-reimbursement basis. The activity is intended to operate on
an essentially “break-even” basis over time.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found immediately following the basic financial
statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town’s budget
process. The Town adopts an annual budget for all funds. A schedule of revenues, expenditures
and changes in fund balances – budget and actual has been provided for the General Fund and
major Special Revenue Funds as required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
While this document contains information about the funds used by the Town to provide services
to our citizens, the Statement of Net Position and the Statement of Activities serve to provide an
answer to the question of how the Town, as a whole, did financially throughout the year. These
statements include all assets and liabilities using the accrual basis of accounting similar to the
accounting used by the private sector. The basis for this accounting takes into account all of the
current year’s revenues and expenses regardless of when the cash is received or paid.
These two statements report the Town’s assets and the changes in those assets. The change in
assets is important because it tells the reader whether the financial position of the Town as a whole
has improved or diminished. However, in evaluating the overall position of the Town, non-
financial information such as changes in the Town’s tax base and the condition of the Town’s
capital assets will also need to be evaluated.
Page 25
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
Analysis of Net Position. Net position may serve over time as a useful indicator of a government’s
financial position. In the case of the Town, assets related to governmental activities exceeded
liabilities by $127.8 million at the end of the fiscal year.
The largest portion of the Town’s governmental activities net position reflects its investment in
capital assets (e.g., land, infrastructure, buildings and improvements, vehicles, machinery and
equipment and construction in progress); less any related outstanding debt used to acquire those
assets. The Town uses these capital assets to provide services to its citizens; consequently, these
assets are not available for future spending. Although the Town’s investment in its capital assets
is reported net of related outstanding debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities. In addition, a portion of the Town’s net position represents resources
that are subject to external restrictions on how they may be used. The remaining balance is
unrestricted and may be used to meet the Town’s ongoing obligations to its citizens and creditors.
The following tables present a summary of the Town’s net position for the fiscal years ended
June 30, 2021 and June 30, 2020.
Governmental Activities
As of
June 30, 2021
As of
June 30, 2020
Current and other assets $ 25,980,153 $ 23,329,463
Capital assets, net 103,822,185 104,404,331
Total assets 129,802,338 127,733,794
Current and other liabilities 1,861,024 3,338,678
Long-term liabilities 190,600 236,576
Total liabilities 2,051,624 3,575,254
Net position
Net investment in capital assets 103,822,185 104,004,331
Restricted 2,610,178 2,766,041
Unrestricted 21,318,351 17,388,168
Total net position $ 127,750,714 $ 124,158,540
At the end of the current fiscal year the Town reported positive balances in all three categories of
net position for governmental activities. The Town also reported positive balances in all net
position categories in the prior fiscal year.
Page 26
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The Town’s financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets.
Changes in net position. The Town’s total revenues for the current fiscal year were $31.4 million.
The total cost of all programs and services was $27.8 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2021 and June 30, 2020.
Governmental Activities
Fiscal
Year Ended
June 30, 2021
Fiscal
Year Ended
June 30, 2020
Revenues
Program revenues:
Charges for services $ 1,899,349 $ 1,783,926
Operating grants and contributions 4,733,757 2,007,841
Capital grants and contributions 135,525 91,245
General revenues
Property taxes 402,481 2,077,368
Sales taxes 15,657,292 13,172,390
Franchise taxes 426,260 434,896
State-shared revenue 6,590,986 5,813,932
Vehicle License taxes 1,196,198 1,060,839
Investment earnings 49,665 545,983
Miscellaneous 262,953 236,452
Total revenues $ 31,354,466 $ 27,224,872
Expenses
General government $ 3,793,915 $ 3,470,936
Development services 968,808 825,884
Public safety 9,214,615 9,003,452
Public works 10,175,540 9,961,306
Culture and recreation 3,601,870 3,490,447
Interest on long-term debt 7,544 881
Total expenses 27,762,292 26,752,906
Changes in net position 3,592,174 471,966
Net position, beginning 124,158,540 123,686,574
Net position, ending $127,750,714 $124,158,540
Page 27
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The charts below compare the governmental expenses from fiscal years 2020-21 and 2019-20.
Page 28
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The following items are significant current year transactions that have had an impact on the change
of net position.
Revenue from operating grants increased 135.8 percent compared to the prior year. $2.9
million in AZ CARES funding was received as a result of the federal government’s
response to the coronavirus pandemic.
Investment income decreased 90.9 percent due to the coronavirus pandemic, slowing
economy, and lower interest rates.
Property taxes decreased 80.6 percent due to the retirement of all town-wide bonded debt.
Overall, expenses increased 3.8 percent primarily due to public safety costs.
The following table presents the cost of the Town’s major functional activities. The table also
shows each function’s net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden
that was placed on the Town’s taxpayers by each of these functions.
Year Ended June 30, 2021 Year Ended June 30, 2020
Total
Expenses
Net (Expense)/
Revenue
Total
Expenses
Net (Expense)/
Revenue
Governmental Activities
General government $ 3,793,915 $ (3,435,515) $ 3,470,936 $ (2,845,747)
Development services 968,808 (275,647) 825,884 (216,992)
Public safety 9,214,615 (6,155,942) 9,003,452 (8,856,335)
Public works 10,175,540 (8,011,077) 9,961,306 (7,989,399)
Culture and recreation 3,601,870 (3,107,936) 3,490,447 (2,960,540)
Interest on long-term debt 7,544 (7,544) 881 (881)
Total expenses $ 27,762,292 $ (20,993,661) $ 26,752,906 $ (22,869,894)
The cost of all governmental activities this year was $27.8 million.
Federal, State, and county governments and charges for services subsidized certain
governmental programs with revenues of $6.8 million.
Net cost of governmental activities of $21.0 million was financed by general revenues,
which consist of primarily sales taxes of $15.7 million and State-shared revenues of $7.8
million.
Page 29
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the Town’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of the Town’s net resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds. As the
Town completed the year, its governmental funds reported an increase of $3.7 million in the
combined fund balance from $20.5 million to $24.3 million.
The General Fund comprises 63.7 percent of the total fund balance. Approximately $11.0 million,
or 70.9 percent, of the General Fund’s fund balance is unassigned.
The General Fund is the principal operating fund of the Town. The fund balance increased by $6.0
million to $15.5 million as of fiscal year end. General Fund revenues increased $2.8 million
primarily due to increased local sales tax collections. General Fund expenditures decreased $2.3
million since approximately $2.9 million in AZ CARES funding was used to pay public safety
costs for the fiscal year.
The Highway User Revenue Fund comprises 4.8 percent of total fund balance. The fund balance
decreased $500 thousand from the prior year because of the continuation of the pavement
management program.
The Capital Projects Fund comprises 18.5 percent of the total fund balance. All of the fund balance
is committed or assigned to capital projects. The fund balance decreased $1.6 million due to
increased capital project expenditures during the fiscal year.
The Grants Fund was utilized during the year to account for the AZ CARES funding. This is
Federal funding to assist with COVID-19 related relief. The fund balance decreased $66,361.
Proprietary fund. Unrestricted net position of the Internal Service Fund at the end of the fiscal
year amounted to $95,787. This was an increase of $95,787 that was due to internal charges to
other governmental funds and transfer in from the General Fund.
Page 30
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
BUDGETARY HIGHLIGHTS
A majority of the budget transfers for the fiscal year moved budget authority between departments
within the General Fund; however, the final budget for the General Fund did decrease $2.6 million
as a result of transfers to the Grants fund to pay public safety costs using AZ CARES funding.
A schedule showing the budget amounts compared to the Town’s actual financial activity for the
General Fund is provided in this report as required supplementary information. The significant
variances are summarized as follows:
The favorable variance of $2.8 million in overall revenues is primarily due to increased
local sales taxes and an increase in construction activity.
The favorable total expenditures variance of $2.9 million is due primarily to lowered
expenditures throughout all departments, in particular contractual services.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of the end of the current fiscal year, the Town had invested $103.8 million in
capital assets, including buildings, facilities, vehicles, computers, equipment, infrastructure and
artwork. This amount represents a net increase, prior to depreciation, of $4.3 million from the prior
fiscal year. The increase was primarily due to the reconstruction of a portion of the Panorama
Drive storm water system, purchase and replacement of vehicles and equipment, and continuation
of the sidewalk infill program. Total depreciation expense for the current fiscal year was $5.3
million.
The following schedule presents a summary of capital asset balances for the fiscal years ended
June 30, 2021 and June 30, 2020.
Governmental Activities
As of
June 30, 2021
As of
June 30, 2020
Capital assets – non-depreciable $ 34,155,329 $ 34,417,953
Capital assets – depreciable, net 69,666,856 69,986,378
Total $103,822,185 $104,404,331
The estimated construction commitments amount is $1,710,344.
Additional information on the Town’s capital assets can be found in Note 6.
Page 31
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
CAPITAL ASSETS AND DEBT ADMINISTRATION – continued
Debt Administration. At year-end, the Town had retired the final $400 thousand in governmental
long-term debt outstanding for the Eagle Mountain Community Facilities District, with the entire
principal balance being paid. As a result, long-term debt decreased by $400 thousand during the
current fiscal year.
State statutes currently limit the amount of general obligation debt a Town may issue to a
percentage of its total assessed valuation for water, sewer, artificial lighting, parks, open space,
recreational facility improvements, public safety, law enforcement, fire and emergency facilities
and street and transportation facilities. The current 20 percent debt limitation for the Town is $119
million. State statutes also currently limit the amount of general obligation debt a Town may issue
to a percentage of its total assessed valuation for all other purposes. The current 6 percent debt
limitation for the Town is $35.6 million.
Additional information on the Town’s long-term debt can be found in Notes 7 and 8 in the notes
to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Many factors were considered by the Town’s administration during the process of developing the
fiscal year 2021-22 budget. Among them:
Revenue projections were developed using conservative growth estimates.
Federal grants related to COVID-19 pandemic relief.
Also considered in the development of the budget is the local economy and inflation of the
surrounding area.
Budgeted expenditures for the Town increased 11.6 percent to $39.1 million in fiscal year
2021-22. Revenues from local sales taxes, state-shared revenue, and federal revenues are expected
to be the primary funding sources.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the Town’s finances and to demonstrate the Town’s
accountability for the resources it receives. If you have questions about this report or need
additional information, contact the Finance Division, Town of Fountain Hills, 16705 East Avenue
of the Fountains, Fountain Hills, Arizona 85268 or visit our website at www.fountainhillsaz.gov.
Page 32
BASIC FINANCIAL STATEMENTS
Page 33
(This page intentionally left blank)
Page 34
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Page 35
ASSETS
Current assets:
Cash and investments
Accounts receivable
Intergovernmental receivable
Taxes receivable
Interest receivable
Inventory, at cost
Prepaid items
Total current assets
Noncurrent assets:
Capital assets not being depreciated
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Retainage payable
Accrued wages and benefits
Other liabilities
Customer deposits
Compensated absences payable
Unearned revenues
Total current liabilities
Noncurrent liabilities:
Non-current portion of long-term liabilities
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Restricted for:
Public works
Capital outlay
Debt service
Unrestricted
Total net position
Governmental
Activities
$ 24,811,172
181,888
861,482
31,875
19,502
7,117
67,117
25,980,153
34,155,329
69,666,856
103,822,185
129,802,338
954,829
106,127
156,566
1,632
40,350
324,163
277,357
1,861,024
190,600
190,600
2,051,624
103,822,185
926,944
1,480,691
202,543
21,318,351
$127,750,714
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 36
Program Revenues
Net (Expense)
Revenue and
Changes in Net
Position
Functions/Programs
Governmental activities:
General government
Development services
Public safety
Public works
Culture and recreation
Interest on long-term debt
Total governmental activities
Expenses
$ 3,793,915
968,808
9,214,615
10,175,540
3,601,870
7,544
$27,762,292
Charges for
Services
$ 310,411
693,161
104,726
355,619
435,432
$1,899,349
Operating
Grants and
Contributions
$ 35,761
2,939,947
1,747,200
10,849
$4,733,757
Capital Grants
and
Contributions
$ 12,228
14,000
61,644
47,653
$135,525
Governmental
Activities
$ (3,435,515)
(275,647)
(6,155,942)
(8,011,077)
(3,107,936)
(7,544)
(20,993,661)
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
State sales & income tax revenue sharing - unrestricted
Vehicle license tax revenue sharing - unrestricted
Investment earnings
Miscellaneous
Total general revenues
Changes in net position
Net position, beginning of year
Net position, end of year
402,481
15,657,292
426,260
6,590,986
1,196,198
49,665
262,953
24,585,835
3,592,174
124,158,540
$127,750,714
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 37
(This page intentionally left blank)
Page 38
FUND FINANCIAL STATEMENTS
Page 39
ASSETS
Cash and investments
Accounts receivable
Intergovernmental receivable
Taxes receivable
Interest receivable
Inventory, at cost
Prepaid items
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Accrued wages and benefits
Other liabilities
Customer deposits
Unearned revenues
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Unavailable revenues - other
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
General
$ 15,268,951
131,755
615,125
10,121
7,117
20,171
$16,053,240
$ 398,016
133,858
1,625
40,350
18,456
592,305
1,905
1,905
27,287
3,387,433
1,085,667
10,958,643
15,459,030
$16,053,240
Highway User
Revenue
$ 1,064,630
50,133
228,386
$1,343,149
$ 110,526
17,457
7
127,990
41,272
41,272
885,672
288,215
1,173,887
$1,343,149
Grants
$ 258,901
$258,901
$
258,901
258,901
$258,901
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 40
Capital Projects
$ 4,887,095
8,932
46,571
$4,942,598
$ 339,113
106,127
445,240
3,305,053
1,192,305
4,497,358
$4,942,598
Non-Major
Governmental
Funds
$ 3,235,808
17,971
31,875
449
375
$3,286,478
$ 107,174
5,251
112,425
27,012
27,012
1,656,222
1,125,438
365,381
3,147,041
$3,286,478
Total
Governmental
Funds
$ 24,715,385
181,888
861,482
31,875
19,502
7,117
67,117
$25,884,366
$ 954,829
106,127
156,566
1,632
40,350
277,357
1,536,861
27,012
43,177
70,189
27,287
2,541,894
7,817,924
2,931,568
10,958,643
24,277,316
$25,884,366
Page 41
(This page intentionally left blank)
Page 42
Total governmental fund balances 24,277,316$
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Governmental capital assets 231,869,678$
Less accumulated depreciation (128,047,493)103,822,185
Some receivables are not available to pay for current period
expenditures and, therefore, are reported as deferred inflows
of resources in the funds.
Property taxes 27,012
Other 43,177 70,189
Long-term liabilities (compensated absences payable) are not due and payable
in the current period and, therefore, are not reported in the funds.(514,763)
The Internal Service Fund is used by management to charge the cost of
technology replacement to the individual funds. The assets and liabilities of the
Internal Service Fund are included in the Statement of Net Position.95,787
Net position of governmental activities 127,750,714$
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 43
Revenues:
Property taxes
Sales taxes
Franchise taxes
Licenses and permits
Leases and rents
Intergovernmental
Charges for services
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Development services
Public safety
Public works
Culture and recreation
Capital outlay
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
General
$
13,042,381
426,260
854,384
264,621
6,995,548
83,583
272,194
210,882
29,051
22,178,904
3,274,735
954,667
6,013,302
1,087,335
2,519,865
132,559
13,982,463
8,196,441
(2,156,305)
(2,156,305)
6,040,136
9,418,894
$15,459,030
Highway User
Revenue
$
1,079,813
2,584,538
15,507
2,798
734
3,683,390
4,356,971
4,356,971
(673,581)
200,000
(5,078)
194,922
(478,659)
1,652,546
$1,173,887
Grants
$
3,006,715
388
3,007,103
64,693
2,893,126
24,455
2,982,274
24,829
41,532
41,532
66,361
(66,361)
$
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 44
Capital Projects
$
995,192
78,995
14,877
15,469
1,104,533
3,293
431,944
4,516,516
4,951,753
(3,847,220)
2,486,383
(241,532)
2,244,851
(1,602,369)
6,099,727
$4,497,358
Non-Major
Governmental
Funds
$ 427,387
539,906
438,788
47,653
30,422
28,309
4,012
1,516,477
277,572
445,564
206,883
84,537
400,000
7,044
500
1,422,100
94,377
358,713
(733,713)
(375,000)
(280,623)
3,427,664
$3,147,041
Total
Governmental
Funds
$ 427,387
15,657,292
426,260
1,293,172
264,621
12,713,449
99,090
320,291
239,191
49,654
31,490,407
3,620,293
954,667
8,906,428
6,321,814
2,726,748
4,758,067
400,000
7,044
500
27,695,561
3,794,846
3,086,628
(3,136,628)
(50,000)
3,744,846
20,532,470
$24,277,316
Page 45
Changes in fund balances - total governmental funds 3,744,846$
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report the portion of capital outlay for capitalized assets as expenditures.
However, in the Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capitalized assets 4,758,055$
Less current year depreciation (5,340,201) (582,146)
Some revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes (24,906)
Intergovernmental (58,623)
Other (50,518) (134,047)
Repayments of bond principal are expenditures in the governmental
funds, but the repayment reduces long-term liabilities in the Statement of
Net Position.400,000
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Compensated absences 67,734
The Internal Service Fund is used by management to charge the cost of
technology replacement to the individual funds. The changes in net position of the Internal
Service Fund is reported with governmental activities in the Statement of Activities.95,787
Changes in net position in governmental activities 3,592,174$
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 46
ASSETS
Current assets:
Cash and investments
Total current assets
Total assets
NET POSITION
Unrestricted
Total net position
Governmental
Activities:
Internal Service
Funds
$95,787
95,787
95,787
95,787
$95,787
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 47
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Cost of services
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment earnings
Total nonoperating revenues (expenses)
Income (loss) before transfers
Transfer in
Changes in net position
Total net position, beginning of year
Total net position, end of year
Governmental
Activities:
Internal Service
Funds
$65,000
65,000
19,224
19,224
45,776
11
11
45,787
50,000
95,787
$95,787
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
The notes to the basic financial statements are an integral part of this statement.
Page 48
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Governmental
Activities:
Internal
Service Funds
Increase/Decrease in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from charges for services $65,000
Cash payments to suppliers for goods and services (19,224)
Net cash provided by/used for operating activities 45,776
Cash flows from investing activities:
Investment income 11
Net cash provided by/used for investing activities 11
Cash flows from noncapital financing activities:
Transfers in 50,000
Net cash provided by/used for noncapital financing activities 50,000
Net increase/decrease in cash and cash equivalents 95,787
Cash and cash equivalents, beginning of year 0
Cash and cash equivalents, end of year $95,787
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position
Cash and investments $95,787
Less investments not maturing in less than three months 0
Total cash and cash equivalents $95,787
The notes to the basic financial statements are an integral part of this statement.
Page 49
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared
in conformity with accounting principles generally accepted in the United States of America
as applied to government units. The Governmental Accounting Standards Board (GASB) is
the accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
The more significant of the Town’s accounting policies are described below.
A.Reporting Entity
The Town’s major operations include development services, culture and recreation, public
works, public safety and general administrative services.
The Town is a municipal corporation governed by an elected Mayor and Council. The financial
reporting entity consists of a primary government and its component units. A component unit
is a legally separate entity that must be included in the reporting entity in conformity with
generally accepted accounting principles. The Town is a primary government that has a
separately elected governing body, is legally separate, and is fiscally independent of other state
or local governments. Furthermore, the component units combined with the Town for financial
statement presentation purposes and the Town are not included in any other governmental
reporting entity. Consequently, the Town’s financial statements include only the funds of those
organizational entities for which its elected governing body is financially accountable.
Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. As
special purpose districts and separate political subdivisions under the Arizona Constitution, the
Districts can levy taxes and issue bonds independently of the Town. Property owners in the
designated areas are assessed taxes for the costs of operating the Districts. The Town Council
serves as the Board of Directors; however, the Town has no liability for the Districts’ debt, the
Districts are responsible for the debt; the debt is therefore not subject to the Town’s debt limit.
The Districts cannot be part of another reporting entity. The Districts’ governing bodies are
substantially the same as the Town and the Town’s management oversees operations, resulting
in the Town having the ability to exercise control. As a result, for financial reporting purposes,
transactions of the Districts are combined together and included as if they were part of the
Town’s operations.
Page 50
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain
Hills, Arizona Municipal Property Corporation’s (MPC) Board of Directors consists of three
members which are appointed by the Fountain Hills Town Council. The MPC, which is a
nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the
sole purpose of assisting the Town in obtaining financing for various projects of the Town.
The Town has a “moral obligation” for the repayment of the MPC’s bonds. The MPC cannot
be part of another reporting entity. The MPC provides services exclusively to the Town. As a
result, for financial reporting purposes, transactions of the MPC are combined together and
included as if they were part of the Town’s operations.
B.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) present financial information about the Town as a whole. The reported
information includes all of the Town's component units. For the most part, the effect of internal
activity has been removed from these statements. Interfund services provided and used, such
as interfund transfers, are not eliminated in the process of consolidation. Governmental
activities normally are supported by taxes and intergovernmental revenues. The Town does not
have any fiduciary or business-type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes, unrestricted state shared revenues, investment income and other items not included
among program revenues are reported instead as general revenues.
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements – The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. As a general rule, the effect of internal activity has been eliminated from the government-
wide financial statements; however, the effects of interfund services provided and used
between functions are reported as expenses and program revenues at amounts approximating
their external exchange value.
Page 51
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fund Financial Statements – Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences,
and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, state shared revenues, licenses and permits, charges
for services, and investment earnings associated with the current fiscal period are all
considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not
susceptible to accrual because generally they are not measurable until received in cash.
Unearned revenues arise when resources are received by the Town before it has legal claim to
them, as when grant monies are received prior to meeting all eligibility requirements imposed
by the provider.
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column.
The Town reports the following major governmental funds.
General Fund – The General Fund is the Town’s primary operating fund. This fund
accounts for all financial resources of the Town, except those required to be accounted for
in other funds.
Highway User Revenue Fund (HURF) – This fund accounts for the Town’s share of motor
vehicle fuel tax revenues and sales tax.
Grants Fund – This fund accounts for the activities of various restricted grants and
contributions received by the Town.
Capital Projects Fund – This fund accounts for the capital improvements to various projects
and equipment purchases of the Town.
Page 52
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the Town reports the following fund type:
Proprietary Fund – The Proprietary Fund is an Internal Service Fund that accounts for the
operation of technology replacement services to other Town departments on a cost
reimbursement basis.
The Proprietary Fund financial statements are reported using the economic resources
measurement focus and accrual basis of accounting and are presented in a single column.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the Town’s internal service fund are charges to Town
departments for technology replacement. Operating expenses for the internal service fund
include the cost of goods and services. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
D.Cash and Investments
For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. Cash and cash
equivalents at year end was cash in bank
Cash and cash equivalents at year end were cash on hand, cash in bank, restricted cash, cash
and investments held by the State Treasurer, and investments in the State Treasurer’s Local
Government Investment Pool.
Cash and investments are pooled, except for investments that are restricted under provisions
of bond indentures or other restrictions that are required to be reported in the individual funds.
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s
local government investment pools, the County Treasurer’s investment pool, obligations of the
U.S. Government and its agencies, obligations of the state and certain local government
subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized
repurchase agreements, certain obligations of U.S. corporations, and certain other securities.
Investments are stated at fair value.
Arizona statute requires a pooled collateral program for public deposits and a Statewide
Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of
the pooled collateral program is to ensure that governmental entities’ public deposits placed in
participating depositories are secured with collateral of 102 percent of the public deposits, less
any applicable federal depository insurance.
Page 53
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
An eligible depository may not retain or accept any public deposit unless it has deposited the
required collateral with a qualified escrow agent or the Administrator. The Administrator
manages the pooled collateral program, including reporting on each depository’s compliance
with the program.
E.Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments. Investment earnings is a component of revenue in the governmental
funds financial statements and is reported in nonoperating revenue in the proprietary fund
financial statements.
F.Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding
at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current
portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of
interfund loans). Interfund balances between governmental funds are eliminated on the
statement of net position.
G.Property Tax Calendar
Property taxes are levied by the Town and collected by the Maricopa County Treasurer.
Property taxes are levied no later than the third Monday in August and are payable in two
installments due October 1 of the current year and March 1 of the subsequent year. Taxes
become delinquent after the first business day of November and May, respectively. Interest
attaches on installments after the delinquency date. Pursuant to A.R.S., a lien against assessed
real and personal property attaches on the first day of January preceding assessment and levy;
however according to case law, an enforceable legal claim to the asset does not arise.
All receivables are shown net of an allowance for uncollectibles.
H.Inventory
All inventories are valued at average cost using the first-in/first-out (FIFO) method.
Inventories consist of expendable supplies held for consumption. Inventories are recorded as
expenses when consumed in the government-wide financial statements, and as expenditures
when consumed in the governmental funds.
I.Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. In the
government-wide and fund financial statements, prepaids are recognized as
expenses/expenditures when goods and/or services are received rather than when purchased.
Page 54
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
J.Capital Assets
Capital assets, which include land and improvements, artwork, buildings and improvements,
vehicles, machinery, and equipment, construction in progress, and infrastructure assets, are
reported in the government-wide financial statements.
Capital assets are defined by the Town as assets with an initial, individual cost in excess of
$10,000 and an estimated useful life in excess of one year. Capital assets are recorded at
historical cost, if purchased or constructed. Donated capital assets are recorded at the
acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the assets or
materially extend the life of the asset are not capitalized.
Capital assets of the Town are depreciated using the straight-line method over the following
estimated useful lives:
Buildings and building improvements 20 - 50 years
Improvements other than buildings 20 years
Infrastructure 15 - 50 years
Vehicles, machinery and equipment 5 - 20 years
K.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position may report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period and so
will not be recognized as an outflow of resources (expense/expenditure) until then. The Town
did not have any items that qualified for reporting in this category.
In addition to liabilities, the statement of financial position may report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will
not be recognized as an inflow of resources (revenue) until that time.
L.Compensated Absences
The Town’s employee vacation and sick leave policies generally provide for granting vacation
and sick leave with pay. Sick leave and vacation benefits accrue as pay periods are completed
at the current rate of pay.
Page 55
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All eligible full-time and part-time regularly-scheduled employees can accrue vacation leave.
Employees accrue up to a maximum of two times the yearly maximum accrual of vacation
through carryover of balances. In the event of termination, employees will be paid for any
accrued, but unused, vacation hours. Full-time and part-time regularly-scheduled employees
accrue sick leave, up to a maximum of 1040 hours. Part-time non-regularly-scheduled,
temporary, or seasonal, and other employees accrue paid sick time for hours worked, not to
exceed 40 hours per calendar year.
The current and long-term liabilities, including related benefits, for accumulated vacation and
sick leave are reported on the government-wide financial statements. A liability for these
amounts is reported in governmental funds only if they have matured, for example, as a result
of employee termination, resignations and retirements. Generally, resources from the General
Fund are used to pay for compensated absences.
M.Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations
are reported as liabilities on the statement of net position. Bond premiums and discounts are
amortized over the life of the bonds using the straight-line method. Deferred amounts on
refunding result from the difference between the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
N.Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
statement of activities. Interfund transfers in the fund financial statements are reported as other
financing sources/uses in governmental funds.
Page 56
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
O.Net Position Flow Assumption
In the government-wide financial statements the Town applies restricted resources first when
outlays are incurred for purposes for which either restricted or unrestricted amounts are
available.
P.Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned
fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot
be spent because they are not in spendable form, or legally or contractually required to be
maintained intact.
Restricted. Fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions or enabling legislation.
Committed. The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by formal action of the Town Council, the Town’s highest
level of decision making authority, by ordinance. Those committed amounts cannot be used
for any other purpose unless the Town Council removes or changes the specified use by taking
the same type of action it employed to previously commit those amounts.
Page 57
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
Town for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the General Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Town Council or a management
official delegated that authority by formal Town Council action. The authority to make
assignments has been delegated by the Town Council to the Finance Director.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed, or
assigned.
The Town applies restricted resources first when outlays are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
The Town has established a fund balance policy which states that the combined General Fund
operating fund balance should be at least 30 percent of the average actual General Fund
revenues for the preceding five fiscal years.
The Town has established a stabilization fund (Rainy Day fund) in the Town’s fund balance
policy. The Rainy Day fund had a balance of $3,296,434, reported as a committed fund balance
at June 30, 2021. The Rainy Day fund may only be used for the following: 1) to replace the
loss of more than 20 percent of the Town’s local share of state shared revenues, 2) for any
event that threatens the health, safety or welfare of the Town’s citizens, 3) for any event that
threatens the fiscal stability of the Town, and lastly 4) to address any matter declared as an
emergency by the governor of the State of Arizona or the Mayor of the Town. All withdrawals
from the Rainy Day fund shall be subject to the following rules: 1) any appropriation shall
require the approval by at least 2/3 vote by the Town Council, and 2) the maximum amount of
Rainy Day withdrawal in any fiscal year shall not exceed one-half of the total balance in the
fund. Replenishment of the Rainy Day fund when spent by the Town should not exceed a
period of more than five years, and should be repaid in annual installments of not less than one
percent of the previous fiscal year General Fund balance. Repayments shall be appropriated as
part of the annual budget adoption.
Page 58
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – FUND BALANCE CLASSIFICATIONS
The table below provides detail of the major components of the Town’s fund balance
classifications at year end.
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
At year end, the Downtown Strategy Fund had expenditures that exceeded the budget,
however, this does not constitute a violation of any legal provisions.
General
Fund
Highway
User
Revenue
Fund
Capital
Projects
Fund
Non-Major
Governmental
Funds Total
Fund Balances:
Nonspendable:
Inventory $ 7,117 $ $ $ $ 7,117
Prepaid items 20,170 20,170
Restricted:
Capital Projects 23,572 23,572
Debt Service 175,531 175,531
Highways and Streets 885,672 885,672
Development Fees 1,457,119 1,457,119
Committed:
Rainy Day 3,296,434 3,296,434
Public Art 90,999 90,999
Downtown Strategy 449,768 449,768
Economic Development 156,419 156,419
Tourism 124,129 124,129
Capital Projects 3,305,053 3,305,053
Local Court Enhancement 395,122 395,122
Assigned:
Capital Projects 1,192,305 1,192,305
Environmental 365,381 365,381
Vehicle Replacement 1,085,667 288,215 1,373,882
Unassigned: 10,958,643 10,958,643
Total fund balances $ 15,459,030 $ 1,173,887 $ 4,497,358 $ 3,147,041 $ 24,277,316
Page 59
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 4 – CASH AND INVESTMENTS
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s
local government investment pools, the County Treasurer’s investment pool, obligations of the
U.S. Government and its agencies, obligations of the state and certain local government
subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized
repurchase agreements, certain obligations of U.S. corporations, and certain other securities.
The statutes do not include any requirements for credit risk, custodial credit risk, concentration
of credit risk, interest rate risk, or foreign currency risk for the Town’s investments.
Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank
failure the Town’s deposits may not be returned to the Town. The Town does not have a
deposit policy for custodial credit risk. At year end, the carrying amount of the Town’s deposits
was $571,205 and the bank balance was $887,363. At year end, $387,363 of the Town’s
deposits were covered by collateral held by the pledging financial institution in the Town’s
name. The remaining amount is covered by FDIC.
Fair Value Measurements. The Town categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets
Level 2 inputs are significant other observable inputs
Level 3 inputs are significant unobservable inputs
Valuation Techniques. Equity securities classified in Level 1 of the fair value hierarchy are
valued using prices quoted in active markets for those securities. Debt securities classified in
Level 2 of the fair value hierarchy are valued using matrix pricing techniques. Matrix pricing
is used to value securities based on the securities’ relationship to benchmark quoted prices.
The State Treasurer’s pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool-Government (Pool 7), with no
regulatory oversight. The pools, as an investment company, are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant’s position in the
State Treasurer investment pools approximates the value of the participant’s shares in the pool
and the participants’ shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
Page 60
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 4 – CASH AND INVESTMENTS
All investments in which the fair value hierarchy is applicable are measured at fair value on a
recurring basis. At year end, cash and investments as of June 30, 2021, are classified in the
accompanying financial statements as follows:
Carrying amount of investments $ 24,239,167
Carrying amount of cash deposits 571,205
Cash on hand 800
Total pooled cash and investments $ 24,811,172
At year end, the Town’s investments consisted of the following:
Investment Maturities
(in Years) Credit Rating
Investment Type Category Fair Value Less than 1 1-5 S&P Moody’s
U.S. Government and Agency Notes Level 1 $ 3,408,792 $ 247,839 $3,160,953
A+, AA+,
AAA Aaa
Federal Agency Notes Level 1 2,934,037 550,840 2,383,197 AA+ Aaa
Corporate and Foreign Bonds Level 2 1,852,883 1,852,883 BBB+ to AA+ A3 - Aaa
Asset Backed Securities Level 2 762,726 762,726 NR to AAA NR to Aaa
Certificates of Deposit Level 2 479,206 201,084 278,122 A-1 to A+ P-1 to Aaa
US Bank Money Market Funds Level 1 13,539 n/a n/a
$ 999,763 $8,437,881
State Treasurer’s Investment Pool 7 Not applicable 14,787,984 62 days average maturities
Total $24,239,167
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates may reduce the
market value of Town investments. In accordance with its investment policy, the Town
manages its exposure to declines in fair values by the following:
Structuring the investment portfolio so that securities mature concurrent with the
anticipated cash requirements for ongoing operations, thereby avoiding, as much as
possible, the need to sell securities into an adverse market environment prior to
maturity.
Investing funds primarily in shorter-term securities or similar investment pools and
limiting the average maturity of the portfolio in accordance with the needs of the Town.
With respect to any firm or individual given responsibility for investments utilizing
external research and advice regarding the current interest rate outlook and global
economic condition to optimize portfolio duration strategy.
Page 61
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 4 – CASH AND INVESTMENTS
Credit Risk. Credit risk is the risk of default of debt by an issuer or counterparty to an
investment. The Town will limit credit risk by limiting investments in the Town’s portfolio to
the asset classes designated as acceptable in ARS §35-323. When possible, analysis of the
credit worthiness of all individual debt issuers held in the portfolio should be conducted on an
annual basis in an effort to guard against investing in a weak or deteriorating credit situation.
Additionally, the Town will pre-qualify financial institutions, brokers/dealers, and investment
advisers with which the Town will do business. The State Treasurer’s Local Government
Investment Pool 7 was rated AAA by Moody’s at year end.
Custodial Credit Risk – Investments. Custodial credit risk is the risk that in the event of
depository financial institution failure, the Town’s deposits may not be returned to the Town.
The Town’s investment in the State Treasurer’s investment pool represents a proportionate
interest in the pool’s portfolio; however the Town’s portion is not identified with specific
investments and is not subject to custodial credit risk.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss from over
concentration of investments. In accordance with its investment policy, the Town diversifies
its investment portfolio to minimize the risk of loss resulting from over concentration of assets
in a specific maturity, specific issuer, or specific class of securities. With the exception of U.S.
Treasury notes and securities and authorized pools, the investment policy establishes a
maximum percentage of 30 percent in insured or collateralized certificates of deposit; 20
percent in certificates of deposit registry services; 30 percent in commercial paper; and 30
percent in bonds, debentures, or notes.
Investment Type Fair Value
Percent of Town
Investments
U.S. Government and Agency Notes $ 3,408,792 14.1%
Federal Agency notes 2,934,037 12.1%
Corporate and Foreign Bonds 1,852,883 7.6%
Asset Backed Securities 762,726 3.1%
Certificates of Deposit 479,206 2.0%
US Bank Money Market Funds 13,539 0.1%
State Treasurer’s investment pool 7 14,787,984 61.0%
$ 24,239,167
Page 62
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 5 – RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of intergovernmental
receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year-end
for the Town’s individual major funds consisted entirely of receivables due from the State.
NOTE 6 – CAPITAL ASSETS
A summary of capital asset activity at year end is as follows:
Governmental Activities
Beginning
Balance Increase Decrease
Ending
Balance
Capital assets, not being depreciated:
Land $ 29,690,368 $ $ $ 29,690,368
Artwork 2,573,900 2,573,900
Construction in progress 2,153,685 4,566,516 4,829,140 1,891,061
Total capital assets, not being depreciated 34,417,953 4,566,516 4,829,140 34,155,329
Capital assets, being depreciated:
Infrastructure 150,166,132 4,397,146 154,563,278
Buildings and building improvements 22,927,414 189,091 23,116,505
Improvements other than buildings 15,282,504 142,018 15,424,522
Vehicles, machinery and equipment 4,749,493 292,424 431,873 4,610,044
Total capital assets being depreciated 193,125,543 5,020,679 431,873 197,714,349
Less accumulated depreciation for:
Infrastructure (103,203,442) (4,001,765) (107,205,207)
Buildings and building improvements (6,484,475) (485,173) (6,969,648)
Improvements other than buildings (11,421,801) (531,332) (11,953,133)
Vehicles, machinery and equipment (2,029,447) (321,931) 431,873 (1,919,505)
Total accumulated depreciation (123,139,165) (5,340,201) 431,873 (128,047,493)
Total capital assets, being depreciated, net 69,986,378 (319,522) 69,666,856
Governmental activities capital assets, net $ 104,404,331 $ 4,246,994 $ 4,829,140 $ 103,822,185
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 194,927
Development services 16,721
Public safety 308,187
Streets and highways 3,952,941
Culture and recreation 867,425
Total depreciation expense $ 5,340,201
Page 63
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 6 – CAPITAL ASSETS
Construction Commitments – At June 30, 2021, the Town has the following active
construction commitments:
Governmental Activities
Project Spent-to-Date
Remaining
Commitment
Golden Eagle Drainage Improvements $ 208,791 $ 1,100,000
Video Surveillance Cameras 127,065 50,000
Four Peaks Park Playground Upgrade 830,629 200,000
Four Peaks Park Playground Parking Lot Improvements 263 65,000
Unpaved Alley Paving 253,231 34,000
Shea Boulevard Widening - Palisades to Technology 112,851 226,000
Desert Vista Sidewalk Improvements 73,160 12,741
Traffic Signal at Palisades and Eagle Ridge 26,424 22,603
Total commitments $ 1,632,414 $ 1,710,344
NOTE 7 – BONDS PAYABLE
Private Placements
The Town had bonds during the fiscal year from private placements reported as governmental
activities. The Eagle Mountain Community Facilities District has no outstanding bonds at the
end of the fiscal year from private placements reported as governmental activities. There are
no specific provisions regarding default on the Eagle Mountain Community Facilities District
debt. The Town has no remaining bonds payable at year end.
Page 64
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 8 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental activities:
Bonds payable:
Private placement general
obligation bonds $ 400,000 $ $ 400,000 $ $
Total bonds payable 400,000 400,000
Compensated absences payable 582,497 297,848 365,582 514,763 324,163
Governmental activity long-term
Liabilities $ 982,497 $ 297,848 $ 765,582 $ 514,763 $ 324,163
NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At year end, interfund balances were as follows:
Interfund transfers:
At year end, interfund transfers were as follows:
Transfers out
Transfers in
General
Fund
Highway
User
Revenue
Fund
Capital
Projects
Fund
Non-Major
Governmental
Funds Total
HURF Fund $ $ $ 200,000 $ $ 200,000
Grants Fund 41,532 41,532
Capital Projects Fund 1,906,305 5,078 575,000 2,486,383
Non-Major Governmental Funds 200,000 158,713 358,713
Internal Service Fund 50,000 50,000
Total $ 2,156,305 $ 5,078 $ 241,532 $ 733,713 $ 3,136,628
Page 65
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The General Fund transferred $1,906,305 to Capital Projects Fund for future projects, as
required by the Town’s financial policies; $50,000 to Internal Service Fund for technology
replacement costs; and $200,000 to Environmental Fund for continued storm drain and wash
maintenance. The Highway User Revenue Fund transferred $5,078 to Capital Projects Fund
for street-related capital projects. The Capital Projects Fund transferred $200,000 to Highway
User Revenue Fund for pavement maintenance. and $41,532 to the Grants Fund for the Town's
matching portion of a park improvement grant. The Economic Development Fund transferred
$158,713 to the Tourism Fund to provide funding for operating costs of the tourism program.
The Downtown Strategy Fund transferred $575,000 to the Capital Projects Fund for downtown
street improvements. The General Fund transferred $50,000 to the Internal Service Fund for
technology replacements.
NOTE 10– CONTINGENT LIABILITIES
Compliance – Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the state government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be
determined at this time, although the Town expects such amounts, if any, to be immaterial.
Lawsuits – The Town is a party to a number of various types of lawsuits, many of which
normally occur in governmental operations. The ultimate outcome of the actions is not
determinable; however, Town management believes that the outcome of these proceedings,
either individually or in the aggregate, will not have a materially adverse effect on the
accompanying financial statements.
NOTE 11 – RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; and natural disasters. The Town’s insurance protection is
provided by the Arizona Municipal Risk Retention Pool (Pool). The Pool is made up of various
towns and cities within Arizona that operate a common risk management and insurance
program. The Pool is structured such that member premiums are based on an actuarial review
that will provide adequate reserves to allow the Pool to meet its expected financial obligations.
The Pool has the authority to assess its’ members additional premiums should reserves and
annual premiums be insufficient to meet the Pool’s obligations.
Page 66
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 11 – RISK MANAGEMENT
The Town joined the Arizona Municipal Workers’ Compensation Pool (Pool) together with
other governments in the state for risks of loss related to workers’ compensation claims. The
Pool is a public entity risk pool currently operating as a common risk management and
insurance program for towns and cities in the State. The Town is responsible for paying a
premium, based on an experience rating formula that allocates pool expenditures and liabilities
among members.
The Town continues to carry commercial insurance for all other risks of loss, including
employee health, dental, and vision insurance. There were no settlements that exceeded
insurance coverage in any of the past three years.
NOTE 12 – RETIREMENT PLANS
Defined Contribution Pension Plan
All full-time employees of the Town participate in a defined contribution pension plan
administered by the ICMA Retirement Corporation as a 401(a) plan. The contribution rates are
11 percent for both the employee and the Town. The payroll for the Town employees covered
by this plan for the year ended June 30, 2021, was $3,596,773 The Town’s total payroll was
$4,345,699.
A defined contribution pension plan provides benefits in return for services rendered, provides
an individual account for each participant, and specifies how contributions to the individual’s
account are to be determined, instead of specifying the amount of benefit the individual is to
receive. Under a defined contribution pension plan, the benefits a participant will receive
depend solely on the amount contributed to the participant’s account and the returns earned on
investment of those contributions. All full-time Town employees must participate in the
pension plan from the date they are hired. Contributions made by an employee vest
immediately and contributions made by the Town vest on a pro rata basis for five years. Town
Council has the authority to establish and amend benefit terms and to establish and amend the
contribution rates. The assets are held in a trust not controlled by the Town and all investment
decisions are made by the employee. The plan does not require reporting under provisions of
GASB Statement No. 84, Fiduciary Activities.
An employee that leaves the employment of the Town is entitled to his or her contributions
and the vested portion of the Town’s contributions, plus interest earned. During the fiscal year,
the Town’s required and actual contributions amounted to $395,645. The employees’
contributions totaled $395,645. Employees may also contribute to the ICMA Retirement
Corporation 457 plan on a voluntary basis (with the exception of one contract employee that
is limited to 11 percent of earnings); there is no employer match for those contributions. During
the fiscal year, employees contributed $107,073 to that plan. The Town contributed $9,026 for
the contract employee’s 457 account.
Page 67
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 12 – RETIREMENT PLANS
No pension provision changes occurred during the year that affected the required contributions
to be made by the Town or its employees. The ICMA Retirement Corporation held no securities
of the Town or other related parties during the fiscal year 2020-21 or as of the close of the
fiscal year.
NOTE 13 – SUBSEQUENT EVENT
The Town applied for American Rescue Plan Act funding from the Governor's Office and was
subsequently awarded $8,416,299 on July 2, 2021. The funding was made available through
the U.S. Department of the Treasury's American Rescue Plan Act, and the funds will be used
to pay public safety contract expenditures.
Page 68
REQUIRED SUPPLEMENTARY INFORMATION
Page 69
13,042,381 $ 2,620,225
$ 3,494,978 $ 7,886,897 $ 15,459,030 $ 7,572,133
Variance with
Final Budget
Positive
(Negative)
(1,906,305)
3,825,339
3,746,794
493,133
561,236
1,288,182
1,054,369
2,913,644
5,731,644
-
(1,906,305)
64,716
441,821
258,623
12,927
31,030
24,113
992,519
154,649
(237,967)
190,839
25,878
2,411
2,818,000
(2,156,305)
6,040,136
9,418,894
214,286
(138,352)
6,013,302
13,982,463
8,196,441
(2,156,305)
2,660,413
3,352,889
132,559
3,274,735
954,667
2,519,865
2,081,037
389,676
50,769
6,995,548
83,583
272,194
210,882
29,051
22,178,904
(250,000)
2,214,797
5,672,100
Actual
426,260
854,384
264,621
2,464,797
(250,000)
163,589
2,961,686
4,562,917
1,019,383
1,745,772
7,067,671
16,896,107
321,550
81,355
185,004
26,640
19,360,904
2,339,660
74,882
(343,997)
3,838,975
Final
211,974
992,736
278,590
6,840,899
19,454,901
(93,997)
(250,000)
(250,000)
111,989
74,882
4,197,328
5,029,469
5,022,085
946,483
3,026,686
9,226,797
185,004
26,640
19,360,904
2,339,660
402,603
2,204,940
Fund balances (deficits), end of year
Budgeted Amounts
Original
211,974
992,736
278,590
6,840,899
321,550
81,355
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Culture and recreation
Total public safety
Total expenditures
Administration
Municipal court
Excess (deficiency) of revenues over expenditures
Non departmental
Expenditures:
Capital outlay
Mayor and council
Current -
General government
Public safety
Fire and emergency
Law enforcement
Total general government
Development services
Intergovernmental
Charges for services
Other
Fines and forfeitures
Investment earnings
Total revenues
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL
YEAR ENDED JUNE 30, 2021
Revenues:
Sales taxes
Franchise taxes
Licenses and permits
Leases and rents (13,969)
10,422,156 10,422,156
1,120,861 Public works 1,120,861 1,087,335 33,526
753,253
402,603
3,153,546
3,914,125
See accompanying notes to this schedule.
Page 70
Revenues:
Sales taxes
Intergovernmental
Charges for services
Other
Investment earnings
Total revenues
Expenditures:
Current -
Public works
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Budgeted
Amounts
Original & Final
$ 871,254
2,578,272
200,000
31,000
24,000
3,704,526
5,120,819
5,120,819
(1,416,293)
200,000
200,000
(1,216,293)
1,652,546
$436,253
Actual
$ 1,079,813
2,584,538
15,507
2,798
734
3,683,390
4,356,971
4,356,971
(673,581)
200,000
(5,078)
194,922
(478,659)
1,652,546
$1,173,887
Variance with
Final Budget
Positive
(Negative)
$ 208,559
6,266
(184,493)
(28,202)
(23,266)
(21,136)
763,848
763,848
742,712
(5,078)
(5,078)
737,634
$737,634
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HIGHWAY USER REVENUE
YEAR ENDED JUNE 30, 2021
See accompanying notes to this schedule.
Page 71
Revenues:
Intergovernmental
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Total other financing sources (uses)
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
Budgeted Amounts
Original
$ 1,308,800
1,308,800
1,338,500
1,338,500
(29,700)
29,700
29,700
(66,361)
$(66,361)
Final
$ 1,303,800
1,303,800
801,500
2,893,126
37,000
3,731,626
(2,427,826)
29,700
29,700
(2,398,126)
(66,361)
$(2,464,487)
Actual
$ 3,006,715
388
3,007,103
64,693
2,893,126
24,455
2,982,274
24,829
41,532
41,532
66,361
(66,361)
$
Variance with
Final Budget
Positive
(Negative)
$ 1,702,915
388
1,703,303
736,807
12,545
749,352
2,452,655
11,832
11,832
2,464,487
$2,464,487
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS
YEAR ENDED JUNE 30, 2021
See accompanying notes to this schedule.
Page 72
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING
The Town Council follows these procedures in establishing the budgetary data reflected in the
financial statements:
1.In accordance with Arizona Revised Statutes, the Town Manager submits a proposed
budget for the fiscal year commencing the following July 1 to the Town Council. The
operating budget includes proposed expenditures and the means of financing them for the
upcoming year.
2.Public hearings are conducted to obtain taxpayer comment.
3.Prior to the third Monday in August, the budget for the Town is legally enacted through
passage of a resolution. To ensure compliance with the expenditure limitation, a uniform
expenditure report must be filed with the State each year. This report, issued under a
separate cover, reconciles total Town expenditures from the audited basic financial
statements to total expenditures for reporting in accordance with the State’s uniform
expenditure reporting system (A.R.S 41-1279.07).
4.Expenditures may not legally exceed the expenditure limitation described below for all
fund types as a whole. For management purposes, the Town adopts a budget by department
for the General Fund and in total by fund for other funds. The Town Manager, subject to
Town Council approval, may at any time transfer any unencumbered appropriation balance
or portion thereof between a department or activity. The adopted budget cannot be
amended in any way without Town Council approval.
5.Formal budgetary integration is employed as a management control device during the year
for the General, Highway User Revenue, Excise Tax, Special Revenue, Debt Service, and
Capital Projects Funds on essentially the same modified accrual basis of accounting used
to record actual revenues and expenditures.
The Town is subject to the State of Arizona’s Spending Limitation Law for Towns and Cities.
This law does not permit the Town to spend more than budgeted revenues plus the carryover
unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the
combined funds. The Town complied with this law during the year.
Page 73
(This page intentionally left blank)
Page 74
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 75
ASSETS
Cash and investments
Intergovernmental receivable
Taxes receivable
Interest receivable
Prepaid items
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Fund balances:
Restricted
Committed
Assigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
Special Revenue
$ 1,607,915
17,971
28
449
375
$1,626,738
$ 107,096
5,251
112,347
23,572
1,125,438
365,381
1,514,391
$1,626,738
Debt Service
$ 170,774
31,847
$202,621
$78
78
27,012
175,531
175,531
$202,621
Capital Projects
$ 1,457,119
$1,457,119
$
1,457,119
1,457,119
$1,457,119
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2021
Page 76
Total Non-Major
Governmental
Funds
$ 3,235,808
17,971
31,875
449
375
$3,286,478
$ 107,174
5,251
112,425
27,012
1,656,222
1,125,438
365,381
3,147,041
$3,286,478
Page 77
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue
$ 6,468
539,906
40,330
47,653
30,422
28,309
3,405
696,493
277,572
445,564
166,883
84,527
974,546
(278,053)
358,713
(733,713)
(375,000)
(653,053)
2,167,444
$1,514,391
Debt Service
$ 420,919
98
421,017
10
400,000
7,044
500
407,554
13,463
13,463
162,068
$175,531
Capital Projects
$
398,458
509
398,967
40,000
40,000
358,967
358,967
1,098,152
$1,457,119
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2021
Page 78
Total Non-Major
Governmental
Funds
$ 427,387
539,906
438,788
47,653
30,422
28,309
4,012
1,516,477
277,572
445,564
206,883
84,537
400,000
7,044
500
1,422,100
94,377
358,713
(733,713)
(375,000)
(280,623)
3,427,664
$3,147,041
Page 79
(This page intentionally left blank)
Page 80
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Downtown Strategy Fund – accounts for the portion of Town sales tax committed by the Town
Council for the development of the downtown area.
Economic Development Fund – accounts for the portion of Town sales tax committed by the
Town Council for economic development and tourism.
Tourism Fund – accounts for the portion of Town sales tax committed by the Town Council as
well as any grants received for all tourism activities.
Local Court Enhancement Fund – accounts for a local court surcharge, committed for court
enhancement.
Environmental Fund – accounts for all funds received from collection of the environmental fee.
Cottonwoods Maintenance Fund – accounts for all funds restricted to pay for maintenance of
the Cottonwoods Maintenance District.
Debt Service Funds
General Obligation Debt Service Fund – accounts for the Town’s property tax revenues received
to pay the debt service of the Town’s general obligation bonds.
Eagle Mountain Debt Service Fund – accounts for the property tax revenues restricted to pay
the debt service of the Eagle Mountain Community Facilities District.
Municipal Property Corporation Debt Service Fund – accounts for the revenues received to
pay the debt service on MPC revenue bonds.
Capital Projects Funds
Facilities Replacement Fund – accounts for all funds assigned for the maintenance and repair of
facilities and equipment.
Development Fees Fund – accounts for restricted development fees collected from building
permits.
Page 81
ASSETS
Cash and investments
Intergovernmental receivable
Taxes receivable
Interest receivable
Prepaid items
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Total liabilities
Fund balances:
Restricted
Committed
Assigned
Total fund balances
Total liabilities and fund balances
Downtown
Strategy
$ 446,959
3,483
449
$450,891
$ 1,123
1,123
449,768
449,768
$450,891
Economic
Development
$ 147,714
13,934
$161,648
$ 501
4,728
5,229
156,419
156,419
$161,648
Tourism
$ 126,994
375
$127,369
$ 2,717
523
3,240
124,129
124,129
$127,369
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2021
Page 82
Local Court
Enhancement
$ 394,568
554
$395,122
$
395,122
395,122
$395,122
Environmental
$ 467,638
$467,638
$ 102,257
102,257
365,381
365,381
$467,638
Cottonwoods
Maintenance
$ 24,042
28
$24,070
$ 498
498
23,572
23,572
$24,070
Totals
$ 1,607,915
17,971
28
449
375
$1,626,738
$ 107,096
5,251
112,347
23,572
1,125,438
365,381
1,514,391
$1,626,738
Page 83
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Downtown
Strategy
$
107,981
22,000
2,858
132,839
50,091
49,475
99,566
33,273
(575,000)
(575,000)
(541,727)
991,495
$449,768
Economic
Development
$
431,925
7,083
59
439,067
227,481
227,481
211,586
(158,713)
(158,713)
52,873
103,546
$156,419
Tourism
$
47,653
1,339
46
49,038
166,883
166,883
(117,845)
158,713
158,713
40,868
83,261
$124,129
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Page 84
Local Court
Enhancement
$
28,309
169
28,478
35,052
35,052
(6,574)
(6,574)
401,696
$395,122
Environmental
$
40,330
260
40,590
440,666
440,666
(400,076)
200,000
200,000
(200,076)
565,457
$365,381
Cottonwoods
Maintenance
$ 6,468
13
6,481
4,898
4,898
1,583
1,583
21,989
$23,572
Totals
$ 6,468
539,906
40,330
47,653
30,422
28,309
3,405
696,493
277,572
445,564
166,883
84,527
974,546
(278,053)
358,713
(733,713)
(375,000)
(653,053)
2,167,444
$1,514,391
Page 85
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Downtown Strategy
Budget
$
87,120
1,260
88,380
53,400
45,000
98,400
(10,020)
(575,000)
(575,000)
(585,020)
991,495
$406,475
Actual
$
107,981
22,000
2,858
132,839
50,091
49,475
99,566
33,273
(575,000)
(575,000)
(541,727)
991,495
$449,768
Variance -
Positive
(Negative)
$
20,861
22,000
1,598
44,459
3,309
(4,475)
(1,166)
43,293
43,293
$43,293
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Page 86
Economic Development
Budget
$
348,504
240
348,744
251,270
251,270
97,474
(158,713)
(158,713)
(61,239)
103,456
$42,217
Actual
$
431,925
7,083
59
439,067
227,481
227,481
211,586
(158,713)
(158,713)
52,873
103,546
$156,419
Variance -
Positive
(Negative)
$
83,421
7,083
(181)
90,323
23,789
23,789
114,112
114,112
90
$114,202
Tourism
Budget
$
55,000
180
55,180
208,264
208,264
(153,084)
158,713
158,713
5,629
83,261
$88,890
Actual
$
47,653
1,339
46
49,038
166,883
166,883
(117,845)
158,713
158,713
40,868
83,261
$124,129
Variance -
Positive
(Negative)
$
(7,347)
1,339
(134)
(6,142)
41,381
41,381
35,239
35,239
$35,239
(Continued)
Page 87
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Local Court Enhancement
Budget
$
49,000
900
49,900
24,800
35,500
60,300
(10,400)
(10,400)
401,696
$391,296
Actual
$
28,309
169
28,478
35,052
35,052
(6,574)
(6,574)
401,696
$395,122
Variance -
Positive
(Negative)
$
(20,691)
(731)
(21,422)
24,800
448
25,248
3,826
3,826
$3,826
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Page 88
Environmental
Budget
$
2,400
2,400
666,904
666,904
(664,504)
200,000
200,000
(464,504)
565,457
$100,953
Actual
$
40,330
260
40,590
440,666
440,666
(400,076)
200,000
200,000
(200,076)
565,457
$365,381
Variance -
Positive
(Negative)
$
40,330
(2,140)
38,190
226,238
226,238
264,428
264,428
$264,428
Cottonwoods Maintenance
Budget
$ 6,642
72
6,714
5,131
5,131
1,583
1,583
21,989
$23,572
Actual
$ 6,468
13
6,481
4,898
4,898
1,583
1,583
21,989
$23,572
Variance -
Positive
(Negative)
$ (174)
(59)
(233)
233
233
$
(Continued)
Page 89
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Totals
Budget
$ 6,642
435,624
55,000
49,000
5,052
551,318
329,470
672,035
208,264
80,500
1,290,269
(738,951)
358,713
(733,713)
(375,000)
(1,113,951)
2,167,354
$1,053,403
Actual
$ 6,468
539,906
40,330
47,653
30,422
28,309
3,405
696,493
277,572
445,564
166,883
84,527
974,546
(278,053)
358,713
(733,713)
(375,000)
(653,053)
2,167,444
$1,514,391
Variance -
Positive
(Negative)
$ (174)
104,282
40,330
(7,347)
30,422
(20,691)
(1,647)
145,175
51,898
226,471
41,381
(4,027)
315,723
460,898
460,898
90
$460,988
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Page 90
(This page intentionally left blank)
Page 91
ASSETS
Cash and investments
Taxes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Fund balances:
Restricted
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
General
Obligation Debt
Service
$ 150,292
27,012
$177,304
$
27,012
150,292
150,292
$177,304
Eagle Mountain
Debt Service
$ 9,455
4,835
$14,290
$78
78
14,212
14,212
$14,290
Municipal
Property
Corporation Debt
Service
$ 11,027
$11,027
$
11,027
11,027
$11,027
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2021
Page 92
Totals
$ 170,774
31,847
$202,621
$78
78
27,012
175,531
175,531
$202,621
Page 93
Revenues:
Property taxes
Investment earnings
Total revenues
Expenditures:
Capital outlay
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General
Obligation Debt
Service
$ 26,014
59
26,073
26,073
124,219
$150,292
Eagle Mountain
Debt Service
$ 394,905
39
394,944
400,000
7,044
407,044
(12,100)
26,312
$14,212
Municipal
Property
Corporation Debt
Service
$
10
500
510
(510)
11,537
$11,027
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Page 94
Totals
$ 420,919
98
421,017
10
400,000
7,044
500
407,554
13,463
162,068
$175,531
Page 95
Total revenues
Revenues:
Property taxes
Investment earnings
Expenditures:
Capital outlay
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General Obligation Debt Service
Budget
$
1,200
1,200
350
350
850
124,219
$125,069
Actual
$ 26,014
59
26,073
26,073
124,219
$150,292
Variance -
Positive
(Negative)
$ 26,014
(1,141)
24,873
350
350
25,223
$25,223
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Page 96
Eagle Mountain Debt Service
Budget
$ 400,000
240
400,240
400,000
7,040
200
407,240
(7,000)
26,312
$19,312
Actual
$ 394,905
39
394,944
400,000
7,044
407,044
(12,100)
26,312
$14,212
Variance -
Positive
(Negative)
$ (5,095)
(201)
(5,296)
(4)
200
196
(5,100)
$(5,100)
Municipal Property Corporation Debt Service
Budget
$
840
840
1,010
1,010
(170)
11,537
$11,367
Actual
$
10
500
510
(510)
11,537
$11,027
Variance -
Positive
(Negative)
$
(840)
(840)
(10)
510
500
(340)
$(340)
(Continued)
Page 97
Total revenues
Revenues:
Property taxes
Investment earnings
Expenditures:
Capital outlay
Debt service -
Principal retirement
Interest on long-term debt
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Totals
Budget
$ 400,000
2,280
402,280
400,000
7,040
1,560
408,600
(6,320)
162,068
$155,748
Actual
$ 420,919
98
421,017
10
400,000
7,044
500
407,554
13,463
162,068
$175,531
Variance -
Positive
(Negative)
$ 20,919
(2,182)
18,737
(10)
(4)
1,060
1,046
19,783
$19,783
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Page 98
ASSETS
Cash and investments
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Restricted
Total fund balances
Total liabilities and fund balances
Development
Fees
$1,457,119
$1,457,119
$1,457,119
1,457,119
$1,457,119
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUND
JUNE 30, 2021
Page 99
Revenues:
Licenses and permits
Investment earnings
Total revenues
Expenditures:
Current -
Culture and recreation
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Development
Fees
$ 398,458
509
398,967
40,000
40,000
358,967
1,098,152
$1,457,119
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
Page 100
(This page intentionally left blank)
Page 101
Total revenues
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Capital Projects
Budget
$ 904,152
17,500
19,200
940,852
2,800
5,514,598
5,517,398
(4,576,546)
575,000
(229,700)
345,300
(4,231,246)
4,488,812
$257,566
Non-GAAP
Actual
$ 995,192
78,995
14,790
1,088,977
3,293
4,514,294
4,517,587
(3,428,610)
2,486,383
(241,532)
2,244,851
(1,183,759)
4,488,812
$3,305,053
Variance -
Positive
(Negative)
$ 91,040
61,495
(4,410)
148,125
(493)
1,000,304
999,811
1,147,936
1,911,383
(11,832)
1,899,551
3,047,487
$3,047,487
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2021
Page 102
Facilities Replacement Fund
Budget
$
7,200
7,200
819,144
819,144
(811,944)
(811,944)
1,610,915
$798,971
Non-GAAP
Actual
$
14,877
679
15,556
431,944
2,222
434,166
(418,610)
(418,610)
1,610,915
$1,192,305
Variance -
Positive
(Negative)
$
14,877
(6,521)
8,356
387,200
(2,222)
384,978
393,334
393,334
$393,334
Development Fees
Budget
$
679,311
7,200
686,511
40,000
40,000
646,511
646,511
1,098,152
$1,744,663
Actual
$
398,458
509
398,967
40,000
40,000
358,967
358,967
1,098,152
$1,457,119
Variance -
Positive
(Negative)
$
(280,853)
(6,691)
(287,544)
(287,544)
(287,544)
$(287,544)
(Continued)
Page 103
Total revenues
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Totals
Budget
$ 904,152
679,311
17,500
33,600
1,634,563
2,800
819,144
40,000
5,514,598
6,376,542
(4,741,979)
575,000
(229,700)
345,300
(4,396,679)
7,197,879
$2,801,200
Non-GAAP
Actual
$ 995,192
398,458
78,995
14,877
15,978
1,503,500
3,293
431,944
40,000
4,516,516
4,991,753
(3,488,253)
2,486,383
(241,532)
2,244,851
(1,243,402)
7,197,879
$5,954,477
Variance -
Positive
(Negative)
$ 91,040
(280,853)
61,495
14,877
(17,622)
(131,063)
(493)
387,200
998,082
1,384,789
1,253,726
1,911,383
(11,832)
1,899,551
3,153,277
$3,153,277
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2021
Page 104
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended to
enhance the reader’s understanding of the information presented in the financial statements, notes
to the financial statements, and other supplementary information presented in this report. The
statistical section is comprised of the five categories of statistical information presented below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town’s financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town’s ability to generate revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town’s current levels of
outstanding debt as well as assess the Town’s ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town’s financial activities take place and to help
make comparisons with other cities.
Operating Information
These schedules contain information about the Town’s operations and various resources to
help the reader draw conclusions as to how the Town’s financial information relates to the
services provided by the Town.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved
by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal
year 2014-15 be based upon property values limited to five percent in annual growth. The
aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying
assessment ratios based on the use of a property), including property values with a growth limit,
is currently referred to as net limited assessed value and formerly as primary assessed value. In
accordance with Proposition 117, this value is used for all taxing purposes beginning with fiscal
year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full
cash assessed value and formerly as secondary assessed value. This value remains the value
utilized for determining debt capacity limits.
Page 105
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets 92,006,103$ 89,800,560$ 89,713,260$ 95,325,824$
Restricted 5,951,416 5,721,744 5,480,867 6,310,810
Unrestricted 21,064,267 20,612,758 19,186,823 15,180,582
Total governmental activities net position 119,021,786$ 116,135,062$ 114,380,950$ 116,817,216$
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year ended June 30
Page 106
2016 2017 2018 2019 2020 2021
95,647,990$ 94,909,703$ 96,777,854$ 104,781,328$ 104,004,331$ 103,822,185$
4,530,239 4,471,661 4,589,526 3,646,449 2,766,041 2,610,178
17,232,506 17,578,068 16,244,169 15,258,797 17,388,168 21,318,351
117,410,735$ 116,959,432$ 117,611,549$ 123,686,574$ 124,158,540$ 127,750,714$
Fiscal Year ended June 30
Page 107
2012 2013 2014 2015
Expenses
Governmental activities:
General government 3,119,113$ 2,909,443$ 2,432,965$ 2,479,365$
Development services 1,442,613 1,633,361 1,237,717 2,074,611
Public safety 5,820,136 6,100,131 6,958,056 6,816,152
Public works 4,718,047 5,712,817 6,630,875 4,963,979
Culture and recreation 2,754,731 2,779,294 2,760,690 2,822,954
Interest on long-term debt 779,576 567,043 472,999 698,542
Total governmental activities expenses 18,634,216 19,702,089 20,493,302 19,855,603
Program Revenues
Governmental activities:
Fines, fees and charges for services:
General government 272,469 380,926 215,943 337,655
Development services 322,984 377,483 531,193 693,670
Public safety 63,926 63,824 74,887 86,641
Public works 95,201 112,521 250,421 236,706
Culture and recreation 303,508 288,745 340,353 339,158
Operating grants and contributions 1,285,656 1,266,906 1,307,738 1,431,017
Capital grants and contributions 1,392,706 150,535 144,570 2,874,796
Total governmental activities program revenues 3,736,450 2,640,940 2,865,105 5,999,643
Net (Expenses)/Revenues (14,897,766) (17,061,149) (17,628,197) (13,855,960)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes 1,453,405 1,385,147 1,449,646 904,660
Sales taxes 7,787,489 7,957,163 8,459,267 8,983,049
Franchise taxes 332,130 334,668 349,414 352,673
State shared revenues 4,515,511 4,979,183 5,326,332 5,713,235
Investment earnings 88,877 69,998 123,311 150,358
Miscellaneous 178,393 300,899 166,115 188,251
Special item - Donation of capital assets - -- -
Total governmental activities 14,355,805 15,027,058 15,874,085 16,292,226
Changes in Net Position
Governmental activities (541,961)$ (2,034,091)$ (1,754,112)$ 2,436,266$
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30
Page 108
2016 2017 2018 2019 2020 2021
2,516,966$ 3,142,722$ 3,431,752$ 3,318,477$ 3,470,936$ 3,793,915$
2,253,208 1,364,378 1,460,967 867,725 825,884 968,808
7,178,890 7,563,898 7,567,012 8,142,069 9,003,452 9,214,615
6,476,688 7,904,577 7,380,663 10,263,244 9,961,306 10,175,540
3,124,523 3,375,414 3,311,648 3,767,996 3,490,447 3,601,870
241,694 178,749 118,552 57,054 881 7,544
21,791,969 23,529,738 23,270,594 26,416,565 26,752,906 27,762,292
298,737 837,163 295,716 280,312 533,189 310,411
1,257,492 1,062,094 1,314,915 1,143,871 608,892 693,161
90,345 155,454 155,973 90,774 100,444 104,726
48,688 216,724 52,465 10,214 131,750 355,619
321,189 393,028 497,914 1,151,500 409,651 435,432
1,615,973 1,699,931 1,737,958 1,850,676 2,007,841 4,733,757
381,011 494,328 304,951 181,939 91,245 135,525
4,013,435 4,858,722 4,359,892 4,709,286 3,883,012 6,768,631
(17,778,534) (18,671,016) (18,910,702) (21,707,279) (22,869,894) (20,993,661)
2,569,504 2,296,199 2,263,623 2,476,546 2,077,368 402,481
9,395,667 9,415,151 10,311,577 11,491,123 13,172,390 15,657,292
360,320 367,119 421,682 423,947 434,896 426,260
5,813,678 6,057,278 6,396,667 6,514,470 6,874,771 7,787,184
219,058 55,127 158,860 554,549 545,983 49,665
13,826 28,839 10,410 202,969 236,452 262,953
- -- 6,118,700 - -
18,372,053 18,219,713 19,562,819 27,782,304 23,341,860 24,585,835
593,519$ (451,303)$ 652,117$ 6,075,025$ 471,966$ 3,592,174$
Fiscal Year Ended June 30
Page 109
2012 2013 2014 2015
General fund
Nonspendable
Inventory 9,332$10,201$ 14,358$ 6,975$
Prepaid items 28,245 32,493 18,348 10,655
Committed 1,345,200 1,345,200 1,345,200 2,634,923
Assigned 2,190,910 2,191,063 1,647,193 1,872,492
Unassigned 3,656,173 4,117,865 4,972,853 4,369,457
Total general fund 7,229,860$ 7,696,822$ 7,997,952$ 8,894,502$
All other governmental funds
Nonspendable
Cash with escrow agent 2,623,895$ 2,301,609$ 1,973,067$ 1,645,000$
Prepaid items 5,474 4,706 997 656
Restricted 3,300,426 3,354,189 3,505,590 10,066,786
Committed 2,039,560 2,175,094 2,089,361 1,079,780
Assigned 9,312,168 9,005,276 7,147,586 5,444,124
Unassigned - -- -
Total all other governmental funds 17,281,523$ 16,840,874$ 14,716,601$ 18,236,346$
Source: The source of this information is the Town's financial records.
Fiscal Year ended June 30
Town of Fountain Hills, Arizona
Fund Balances — Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 110
2016 2017 2018 2019 2020 2021
9,272$ 5,872$ 13,490$ 5,168$ 8,982$ 7,117$
4,123 16,868 21,945 17,311 2,418 20,170
2,652,357 2,714,135 2,893,850 3,027,804 3,249,354 3,387,433
1,701,086 1,743,768 2,101,574 2,380,653 622,641 1,085,667
5,853,806 2,696,999 2,140,434 1,863,722 5,535,499 10,958,643
10,220,644$ 7,177,642$ 7,171,293$ 7,294,658$ 9,418,894$ 15,459,030$
-$-$ -$-$-$-$
5,055 474 ----
4,500,044 4,432,710 4,571,263 3,579,891 2,708,883 2,541,894
1,366,081 8,576,250 7,248,890 5,868,386 6,068,810 4,430,491
5,943,364 1,784,761 2,340,683 2,592,343 2,402,244 1,845,901
- -- - (66,361) -
11,814,544$ 14,794,195$ 14,160,836$ 12,040,620$ 11,113,576$ 8,818,286$
Fiscal Year ended June 30
Page 111
2012 2013 2014 2015
Revenues
Taxes 9,577,321$ 9,713,445$ 10,271,737$ 10,240,382$
Licenses and permits 194,976 570,904 891,782 1,043,382
Leases and rents 206,018 213,871 252,584 269,753
Intergovernmental 6,035,448 6,323,047 6,677,518 9,770,048
Charges for services 405,663 162,086 161,376 176,541
Other 178,393 300,899 134,114 188,251
Fines and forfeitures 223,673 187,251 170,995 186,456
Investment earnings 88,877 69,998 123,311 150,358
Total revenues 16,910,369 17,541,501 18,683,417 22,025,171
Expenditures
Current:
General government 2,887,321 2,699,109 2,194,845 2,275,124
Development services 1,421,787 1,643,757 1,774,983 2,073,990
Public safety 5,869,445 6,022,269 6,890,770 6,675,874
Public works 1,054,930 2,058,990 3,085,559 1,275,779
Culture and recreation 1,794,332 1,791,018 1,921,939 1,962,585
Capital outlay 884,323 453,002 1,750,465 8,799,068
Debt service:
Principal 1,965,000 2,280,000 2,415,000 1,850,000
Interest 639,135 554,860 460,811 454,957
Other debt service 55,752 12,183 12,188 243,585
Total expenditures 16,572,025 17,515,188 20,506,560 25,610,962
Excess (deficiency) of revenues
over (under) expenditures 338,344 26,313 (1,823,143) (3,585,791)
Other Financing Sources (Uses)
Transfers in 2,470,027 1,279,397 1,838,453 2,519,774
Transfers out (2,470,027) (1,279,397) (1,838,453) (2,519,774)
Proceeds from sale of capital assets - - - -
Issuance of refunding bonds - - - 4,180,000
Issuance of long-term debt - - - 7,565,000
Bond Premium - - - 342,086
Payment to refunded bonds escrow agent - -- (4,085,000)
Total other financing sources (uses) - -- 8,002,086
Net change in fund balances 338,344$ 26,313$ (1,823,143)$ 4,416,295$
Expenditures for capitalized assets 1,333,785$ 467,691$ 2,385,168$ 9,067,254$
Debt service as a percentage of noncapital expenditures 17.5% 16.7% 15.9% 15.4%
Source: The source of this information is the Town's financial records.
Fiscal Year Ended June 30
Town of Fountain Hills, Arizona
Statement of Revenues, Expenditures and Changes in Fund Balances
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 112
2016 2017 2018 2019 2020 2021
12,299,285$ 12,069,714$ 13,019,341$ 14,342,801$ 15,694,054$ 16,510,939$
1,372,045 1,310,973 2,004,386 2,040,622 835,731 1,293,172
258,165 284,090 282,531 280,801 286,391 264,621
7,559,436 7,917,651 8,266,028 8,401,676 8,920,296 12,713,449
197,109 351,476 254,122 181,105 222,947 99,090
147,662 153,438 207,697 347,141 387,225 320,291
209,380 257,727 182,997 130,483 281,704 239,191
219,058 55,127 158,860 554,549 545,983 49,654
22,262,140 22,400,196 24,375,962 26,279,178 27,174,331 31,490,407
2,324,026 2,713,548 3,195,936 3,147,063 3,280,191 3,620,293
2,217,814 1,275,147 1,397,249 858,957 797,513 954,667
7,034,887 7,420,032 7,402,227 6,295,989 8,566,058 8,906,428
2,498,714 3,954,450 3,420,317 7,880,668 6,046,298 6,321,814
2,240,865 2,484,940 2,375,758 2,845,027 2,609,842 2,726,748
6,471,382 1,693,265 4,317,214 4,487,854 2,716,523 4,758,067
4,260,000 2,675,000 2,720,000 2,635,000 2,310,000 400,000
308,106 244,986 185,164 123,871 67,301 7,044
2,005 2,180 1,805 1,600 1,998 500
27,357,799 22,463,548 25,015,670 28,276,029 26,395,724 27,695,561
(5,095,659) (63,352) (639,708) (1,996,851) 778,607 3,794,846
562,044 5,194,138 4,543,728 3,672,532 1,928,978 3,086,628
(562,044) (5,194,138) (4,543,728) (3,672,532) (1,928,978) (3,136,628)
- - - - 418,585 -
- - - - - -
- - - - - -
- - - - - -
-- -- --
-- - - 418,585 (50,000)
(5,095,659)$ (63,352)$ (639,708)$ (1,996,851)$ 1,197,192$ 3,744,846$
6,394,346$ 1,696,612$ 4,293,214$ 4,465,837$ 2,689,270$ 4,758,055$
21.8% 14.1% 14.0% 11.6% 10.0% 1.8%
Fiscal Year Ended June 30
Page 113
Fiscal Year
Ended June 30 Property Tax Sales Tax Franchise Tax Total
2012 1,457,702 7,779,219 332,130 9,569,051
2013 1,421,615 7,957,162 334,668 9,713,445
2014 1,463,056 8,459,267 349,414 10,271,737
2015 904,660 8,983,050 352,673 10,240,383
2016 2,543,298 9,391,267 360,320 12,294,885
2017 2,287,444 9,419,551 367,119 12,074,114
2018 2,286,081 10,311,578 421,682 13,019,341
2019 2,427,730 11,491,124 423,947 14,342,801
2020 2,086,769 13,172,389 434,896 15,694,054
2021 427,387 15,657,292 426,260 16,510,939
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Governmental Activities - Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 114
Net Assessed
Net Total Estimated Taxable Value as a
Assessed Direct Actual Percentage of
Taxable Tax Taxable Estimated Actual
Fiscal Year Value*Rate**Value*Taxable Value
2012 452,236,007 0.2258 4,096,551,487 11.04%
2013 377,816,392 0.2657 3,422,463,416 11.04%
2014 365,963,182 0.2773 3,359,684,579 10.89%
2015 403,330,477 0.1151 3,722,794,676 10.83%
2016 402,223,763 0.5246 3,744,585,506 10.74%
2017 423,688,665 0.4472 3,965,824,715 10.68%
2018 444,639,625 0.4259 4,166,589,970 10.67%
2019 466,895,716 0.4257 4,381,287,279 10.66%
2020 494,576,905 0.3382 4,657,015,387 10.62%
2021 520,103,815 -4,909,183,626 10.59%
Source: The source of this information is the Arizona Department of Revenue's
Abstract of the Assessment Roll and the Town's financial records.
** Per $100 of assessed taxable value; No town-wide taxes levied in FY21.
Town of Fountain Hills, Arizona
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
*Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona
Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary
taxes are levied against the net limited assessed value. The net full cash value is used for
determining the Town’s bonding capacity and as the ceiling for net limited assessed value.
Page 115
Net LimitedPercentage of Net Full CashPercentage ofAssessedTotal Net Limited AssessedTotal Net Full CashTaxpayerValueRankAssessed ValueValueRankAssessed ValueEPCOR - Chaparral City Water Company4,025,340 10.77%RCS-Park Place 1 LLC3,908,993 20.75%Hunter Retail LLC2,739,776 30.53%WSL Fountain View Investors V, LLC2,366,546 40.46%2,177,727 30.48%Whitestone Fountain Hills, LLC1,962,401 50.38%Target Corporation1,406,296 60.27%1,889,956 50.42%FPACP4 Ridgeview LLC1,377,551 70.26%Fountain Hills Invest Co., LLC1,370,318 8Palisades Resorts LLC1,294,092 90.25%Smith's Food & Drug Centers Inc.1,251,036 10 0.24%Inland Western Fountain Hills Four Peaks LLC3,353,109 10.74%Chapparal City Water Company3,177,001 20.70%J & R Holdings XX LLC1,921,863 40.42%Qwest Corporation1,647,941 60.36%EN LLC1,444,647 70.32%Sun Tech Development LLC1,320,356 80.29%Firerock LLC1,317,707 90.29%Arizona State Land Department1,260,640 100.28%Totals21,702,349$ 3.91%19,510,947$ 4.30%Source: The source of this information is the Maricopa County Assessor's Office.Note: On November 6, 2012, voters approved Proposition 117, an amendment to theArizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2015-2016), both primary andsecondary taxes are levied against the net assessed limited property valuation. The net assessed full cashproperty valuation is used for determining the Town’s bonding capacity and as the ceiling for net limitedassessed property valuation.Town of Fountain Hills, ArizonaPrincipal Property TaxpayersJune 30, 2021 and 201220212012Page 116
Current Percent of Delinquent Ratio of Total
Fiscal Total Tax Current Taxes Tax Total Tax Tax Collections
Year Tax Levy Collections Collected Collections Collections to Total Tax Levy
2012 1,446,076 1,414,482 97.8% 19,984 1,434,466 99.2%
2013 1,429,285 1,401,654 98.1% 18,563 1,420,217 99.4%
2014 1,449,884 1,426,612 98.4% 18,215 1,444,827 99.7%
2015 892,104 881,170 98.8%6,903 888,073 99.5%
2016 2,532,115 2,502,995 98.8% 18,913 2,521,908 99.6%
2017 2,278,728 2,241,482 98.4% 29,002 2,270,484 99.6%
2018 2,272,027 2,230,328 98.2% 31,197 2,261,525 99.5%
2019 2,404,250 2,369,262 98.5% 20,016 2,389,278 99.4%
2020 2,092,340 2,044,210 97.7% 37,618 2,081,828 99.5%
2021 397,416 392,363 98.7%- 392,363 98.7%
Source: The source of this information is the Maricopa County Treasurer's Office.
Town of Fountain Hills, Arizona
Property Tax Levies and Collections
Last Ten Fiscal Years
Page 117
2012 2013 2014 2015
Sales category:
Construction 600,403$ 567,589$ 783,064$ 935,694$
Transportation/utilities 1,409,349 1,402,734 1,375,623 1,405,768
Wholesale/retail 3,601,904 3,598,895 3,653,181 4,214,119
Restaurants/bars 575,704 645,258 655,654 682,180
Real estate, rental & leasing 678,326 720,023 782,453 617,348
Services 274,521 310,303 342,079 604,618
Other 639,012 712,360 867,213 523,323
Total 7,779,219$ 7,957,162$ 8,459,267$ 8,983,050$
Note: Other includes all state and local sales tax audit adjustments.
Source: The source of this information is the Town's financial records.
Fiscal Year Ended June 30
Town of Fountain Hills, Arizona
Taxable Sales by Category
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 118
2016 2017 2018 2019 2020 2021
918,717$ 730,164$ 1,408,332$ 1,932,716$ 1,910,021$ 1,990,383$
1,327,441 1,288,153 1,309,928 1,290,585 1,405,005 1,529,268
4,815,582 4,982,218 5,235,992 5,464,247 7,031,474 8,956,208
742,540 811,985 829,857 893,595 892,210 1,062,172
552,856 636,834 745,171 842,233 965,124 993,228
779,753 852,675 747,834 1,025,548 916,769 1,125,753
254,378 117,523 34,464 42,200 51,786 280
9,391,267$ 9,419,551$ 10,311,578$ 11,491,124$ 13,172,389$ 15,657,292$
Fiscal Year Ended June 30
Page 119
Fiscal
Year
Ended Town Maricopa State Total
June 30 Rate County Rate Tax Rate
2012 2.60% 0.70% 6.60% 9.90%
2013 2.60% 0.70% 5.60% 8.90%
2014 2.60% 0.70% 5.60% 8.90%
2015 2.60% 0.70% 5.60% 8.90%
2016 2.60% 0.70% 5.60% 8.90%
2017 2.60% 0.70% 5.60% 8.90%
2018 2.60% 0.70% 5.60% 8.90%
2019 2.60% 0.70% 5.60% 8.90%
2020* 2.90% 0.70% 5.60% 9.20%
2021 2.90% 0.70% 5.60% 9.20%
* 0.3% Town rate increase effective 11/1/2019
Source: The source of this information is the Arizona Department of Revenue.
Town of Fountain Hills, Arizona
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Page 120
Community Municipal HighwayFiscal Year General Facilities Property User Special Total DebtEnded Obligation District Corporation Revenue Assessment Outstanding PerJune 30Bonds*Bonds**Bonds*BondsBondsDebtCapita20123,755,000 3,090,000 7,040,000 - - 13,885,000 611 20132,900,000 2,800,000 5,905,000 - - 11,605,000 503 20142,000,000 2,495,000 4,695,000 - - 9,190,000 394 20159,517,086 2,300,000 3,525,000 - - 15,342,086 651 20167,678,669 1,935,000 1,400,000 - - 11,013,669 461 20175,680,252 1,560,000 1,030,000 - - 8,270,252 338 20183,631,835 1,180,000 670,000 - - 5,481,835 223 20191,683,417 795,000 300,000 - - 2,778,417 111 2020- 400,000 - - - 400,000 16 2021- - - - --- Source: The source of this information is the Town's financial records and the U.S. Bureau of Economic Analysis.* All bond amounts presented include amortization of original issuance discounts and premiums.** All bond amounts presented include amoritization of original issuance discounts and premiums.The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general obligation bonds.Population data can be found in the Schedule of Demographic and Economic Statistics.Governmental ActivitiesTown of Fountain Hills, ArizonaRatios of Outstanding Debt by TypeLast Ten Fiscal YearsPage 121
Fiscal YearGeneral Obligation Bonds*Less: Amounts Restricted for PrincipalNet General Obligation BondsEstimated Actual Taxable Value of PropertyPercentage of Estimated Actual Taxable Value of PropertyNet General Obligation Bonded Debt per CapitaNet General Obligation Bonded Debt per Net Limited Assessed ValuationMunicipal Property Corporation Bonds*Net Municipal Property Corporation Debt per Capita Total Revenues-All Sources 2012 6,845,000 94,380 6,750,620 4,096,551,487 0.16% 297 1.49% 4,300,489 189 17,184,895 2013 5,700,000 82,184 5,617,816 3,422,463,416 0.16%244 1.49% 3,561,814 154 17,723,994 2014 4,495,000 87,949 4,407,051 3,359,684,579 0.13%189 1.20% 2,721,933 117 18,891,967 2015 11,817,086 420,782 11,396,304 3,722,794,676 0.31%483 2.83% 1,764,338 75 22,161,316 2016 9,613,669 576,281 9,037,388 3,744,585,506 0.24%378 2.25% 1,088,117 46 22,262,139 2017 7,240,252 343,697 6,896,555 3,965,824,715 0.17%282 1.63% 860,437 35 22,400,196 2018 4,811,835 83,185 4,728,650 4,166,589,970 0.11%192 1.06% 664,484 27 24,375,962 2019 2,478,417 146,100 2,332,317 4,381,287,279 0.05%93 0.50% 287,694 12 26,279,178 2020 400,000 171,807 228,193 4,657,015,387 0.005%9 0.05%- - 27,586,011 2021- 191,594 - 4,909,183,626 - - - Source: The source of this information is the Department of Revenue and the Town's financial records.* All bond amounts presented are net of original issuance discounts and premiums. The Town is not obligatedfor repayment of the Eagle Mountain Community Facilities District general obligation bondsPopulation data can be found in the Schedule of Demographic and Economic Statistics.Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (FiscalYear 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used fordetermining the Town’s bonding capacity and as the ceiling for net limited assessed value.Town of Fountain Hills, ArizonaRatios of General Bonded Debt OutstandingLast Ten Fiscal YearsPage 122
Estimated
Estimated Share of
Percentage Overlapping
Outstanding Debt Applicable Debt
Overlapping:
Maricopa County -$ 1.14%-$
Maricopa County Community College District 184,715,000 1.14% 2,105,751
Maricopa County Special Healthcare District 640,695,000 1.14% 7,303,923
East Valley Institute of Technology - 2.30%-
Fountain Hills Unified School District 6,735,000 96.38% 6,491,193
Total Overlapping Debt 15,900,867
Direct:
Town of Fountain Hills, Arizona*
General Obligation Bonds -
Revenue Bonds -
Eagle Mountain Community Facilities District**-
Total Direct Debt -
Total direct and overlapping debt 15,900,867$
Source: The source of this information is the Town's records, the State and County Abstract of the
Assessment Roll, the Arizona Department of Revenue Report of Indebtedness and the applicable
governmental unit.
* All bond amounts include amortization of original issuance discounts and premiums.
** The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general
obligation bonds.
Note: The estimated percentage of debt outstanding applicable to the Town is calculated based on the Town's
net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping
jurisdiction.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town
of Fountain Hills. This schedule further estimates the portion of outstanding debt of those overlapping
governments that is borne by residents and businesses of the Town. This process recognizes that, when
considering a town's ability to issue and repay long-term debt, the entire debt burden borne by residents
should be taken into account. However, this fact does not imply that every taxpayer is a resident, and,
therefore, responsible for repaying the debt of each overlapping government.
Town of Fountain Hills, Arizona
Direct and Overlapping Governmental Activities Debt
as of June 30, 2021
Governmental Unit
Page 123
2012 2013 2014 2015
6% Debt Limit
Debt limit 27,134,160$ 22,668,984$ 21,957,791$ 24,199,829$
Total net debt applicable to limit - - - -
Legal debt margin 27,134,160$ 22,668,984$ 21,957,791$ 24,199,829$
Total debt applicable to the limit
as a percentage of debt limit - - - -
20% Debt Limit
Debt limit 90,447,201$ 75,563,278$ 73,192,636$ 80,666,095$
Total net debt applicable to limit 3,755,000 2,900,000 2,000,000 9,175,000
Legal debt margin 86,692,201$ 72,663,278$ 71,192,636$ 71,491,095$
Total debt applicable to the limit
as a percentage of debt limit 4% 4% 3% 11%
Source: The source of this information is the Town's financial records.
Note: All amounts presented are net of original issuance discounts and premiums.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town’s bonding capacity and as the ceiling for net limited
assessed value.
Town of Fountain Hills, Arizona
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year Ended June 30
Page 124
2016 2017 2018 2019 2020 2021
28,325,296$ 30,651,126$ 31,459,192$ 32,400,042$ 33,907,227$ 35,603,580$
- -- -- -
28,325,296$ 30,651,126$ 31,459,192$ 32,400,042$ 33,907,227$ 35,603,580$
-- - - - -
94,417,653$ 102,170,422$ 104,863,974$ 108,000,140$ 113,024,089$ 118,678,601$
7,405,000 5,475,000 3,495,000 1,615,000 - -
87,012,653$ 96,695,422$ 101,368,974$ 106,385,140$ 113,024,089$ 118,678,601$
8% 5% 3% 1% - -
Fiscal Year Ended June 30
Page 125
Net full cash assessed valuation 593,393,005
Water, Sewer, Artificial Lighting, Parks, Open Space, Recreational Facility
Improvements, Public Safety, Law Enforcement, Fire and Emergency
Facilities, Street and Transportation Facilities
Debt limit - 20% of net full cash assessed valuation 118,678,601$
Net debt applicable to limit -
20% legal debt margin 118,678,601
All Other General Obligation Bonds
Debt limit - 6% of net full cash assessed valuation 35,603,580
Net debt applicable to limit -
6% legal debt margin 35,603,580
Total legal debt margin 154,282,181$
Source: The source of this information is the Maricopa County Assessor's Office and the
Town's financial records.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town’s bonding capacity and as the ceiling for net limited
assessed value.
Town of Fountain Hills, Arizona
Calculation of Legal Debt Margin
as of June 30, 2021
Page 126
Fiscal
Year
Ended Pledged
June 30 Principal Interest Total Revenues Coverage
2012 1,085,000 327,312 1,412,312 12,995,685 9.2
2013 1,150,000 285,287 1,435,287 13,397,842 9.3
2014 1,225,000 234,176 1,459,176 14,313,158 9.8
2015 2,545,000 184,500 2,729,500 15,583,484 5.7
2016 480,000 32,740 512,740 16,250,673 31.7
2017 370,000 22,680 392,680 16,815,224 42.8
2018 360,000 16,686 376,686 18,194,833 48.3
2019 370,000 10,854 380,854 19,765,936 51.9
2020 300,000 4,860 304,860 20,862,372 68.4
2021 - - - 24,001,082 100.0
Source: The source of this information is the Town's financial records.
Town of Fountain Hills
Revenue Bond Coverage
Last Ten Fiscal Years
Municipal Facilities Corporation Revenue Bonds
Page 127
2011201220132014201520162017201820192020*Population22,741 23,070 23,318 23,573 23,899 24,482 24,583 24,987 25,200 23,820 Per capita personal income44,660$ 47,260$ 48,244$ 46,619$ 48,240$ 50,162$ 60,531$ 54,936$ 57,468$ 59,791$ Median age53.9 53.9 53.0 53.7 53.8 53.7 53.5 57.5 58.8 59.4 Public school enrollment1,981 1,886 1,820 1,692 1,619 1,506 1,444 1,380 1,338 1,314 Town of Fountain Hillsunemployment rate6.7% 5.6% 6.0% 5.4% 2.4% 1.9% 1.6% 3.9% 8.7% 4.9%Land useTotal acres13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 Total square miles20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32 Vacant lots1,218 1,209 1,196 1,165 1,247 1,209 1,175 1,172 1,052 1,158 Number of unitsHousing12,990 12,977 12,991 12,981 13,002 13,130 13,176 13,558 13,749 13,875 Lodging4 4 4 4 4 4 4 4 4 4 Restaurants56 56 54 43 46 50 52 54 55 55 Shopping centers20 20 20 20 20 20 20 20 20 20 SchoolsPublic4 3 3 3 3 3 3 3 3 3 Preschool4 6 7 7 7 7 7 5 5 5 Charter1 1 1 1 1 1 1 1 1 1 Vocational----- - 1 1 2 2 Note: N/A indicates the information is not available.* Information obtained is based on calendar years; therefore, the latest information obtained wasfrom 2020.Sources: The sources of the "Per Capita Personal Income", "Median Age" and "Unemployment Rate" information are Sites USA (2009-2017), U.S. Census Bureau and Arizona Office of Economic Opportunity (beginning in 2018). The source of the "Population" is the U.S. Census Bureau July 1, 2019 estimate. The source of School Enrollment is the Fountain Hills Unified School District No. 98. Other information is from the Town's records.Town of Fountain Hills, ArizonaDemographic and Economic StatisticsLast Ten Calendar YearsCalendar YearPage 128
Percentage
Number of of Total Town Number of
Employer Employees Rank Employment Employees Rank
Fountain Hills Unified School District No. 98 320 1 6.3% 278 1
Rural Metro Corporation 130 2 2.5%
Safeway Stores 130 2 2.5%91 5
Fountain View Village 120 4 2.3%
Firerock Country Club 100 5 2.0%
Fry's Food Stores 90 6 1.8%76 6
Target Stores 90 6 1.8% 125 2
Eagle Mountain Golf Club 70 8 1.4%69 7
Fountain Hills Family Practice PC 70 8 1.4%
Bashas 60 10 1.2%64 8
Golf International Inc 60 10 1.2%
Quotemedia Inc 60 10 1.2%
Sunridge Canyon Golf Course 60 10 1.2%58 10
Town of Fountain Hills 60 10 1.2%61 9
United States Postal Service 60 10 1.2%
Monks Construction 110 3
MCO Properties, Inc.103 4
Totals 1,480 29.2% 1,035
Total Town employment 5,110 5,486
Source: The source of this information is the Maricopa Association of Governments.
Note: MAG data includes employers with 5+ employees and is rounded to nearest 10.
* Data for 2020 and 2021 was not available.
2019*
Town of Fountain Hills, Arizona
Principal Employers
Prior Fiscal Year and Nine Years Ago
2010
Page 129
2012201320142015201620172018201920202021Municipal court5.00 5.00 4.00 3.63 3.63 3.63 3.63 3.63 3.63 3.63 Administration11.58 11.68 10.56 11.33 11.63 12.25 13.45 13.70 15.20 15.00 Public works9.80 9.80 10.80 12.43 12.43 Development services20.25 18.75 16.25 16.30 16.30 7.50 8.50 7.50 9.00 9.00 Community services21.53 21.18 20.18 21.06 20.76 20.76 20.56 20.56 20.56 22.01 Total 58.36 56.61 50.99 52.32 52.32 53.94 55.94 56.19 60.82 62.07 Source: The source of this information is the Town's financial records.Town of Fountain Hills, ArizonaAuthorized Full-time Equivalent Government Employees by FunctionLast Ten Fiscal YearsFiscal Year Ended June 30Page 130
Function/Program2012201320142015201620172018201920202021Municipal CourtCases filed 2,173 1,740 1,649 1,738 1,593 2,014 1,277 891 2,237 1,324 Hearings/Trials held731 703 1,665 1,585 1,564 1,844 676 801 568 1,430 AdministrationFTEs per 1,000 residents2.6 2.5 2.2 2.2 2.2 2.2 2.3 2.2 2.4 2.6 Registered voters - general election16,074 none N/A 16,213 none 16,387 none 16,775 none 18,415 Voter turnout - general election34% none N/A 38% none 41% none 51% none 91%Development ServicesBuilding permits issued346 457 445 443 410 509 468 576 547 575 Building inspections conducted1,257 1,395 2,131 2,448 2,129 2,704 3,707 4,795 4,069 3,652 Number of code violation cases804 746 716 752 713 669 654 655 690 497 Number of zoning cases7 10 41 65 72 50 41 11 7 21 Community ServicesNumber of Community Center bookings3,236 3,196 3,383 3,439 3,124 3,764 4,395 3,857 3,169 1,675 Number of participants in recreational programs 1,833 1,789 2,291 2,249 2,910 3,773 3,794 3,489 1,830 2,892 Number of Senior Services members1,208 1,118 1,189 1,273 1,326 1,335 1,220 1,313 1,265 1,360 Number of home delivered meals8,419 6,941 4,799 4,035 3,497 3,920 3,093 3,562 5,215 4,402 Law Enforcement (contracted)Physical arrests522 545 743 445 220 220 214 67 86 56 Traffic violations1,366 1,296 1,379 1,539 1,215 1,803 1,053 1,248 2,618 2,745 Fire & Emergency Medical (contracted)Total incident responses3,082 3,136 2,956 3,166 3,191 3,425 3,659 4,073 3,896 4,215 Average response time (in minutes)3:46 3:50 3:53 3:37 3:57 3:25 3:33 3:32 3:51 4:50Source: The source of this information is the Town's financial records.Note: N/A indicates that the information is not available.Fiscal Year Ended June 30Town of Fountain Hills, ArizonaOperating Indicators by FunctionLast Ten Fiscal yearsPage 131
2012201320142015201620172018201920202021Public safetyNumber of fire stations2 2 2 2 2 2 2 2 2 2 Public worksStreets (centerline miles) 178.9 178.9 178.9 178.9 178.9 178.9 180.0 180.0 180.0 180.0 Streets (lane miles)390 390 390 390 390.5 390.5 391.5 391.5 391.5 391.5 Pedestrian lighting34 34 34 85 91 91 91 91 91 91 Traffic signals13 13 13 13 13 13 13 13 13 13 Parks and recreationAcreage-developed parks 116 116 116 119 119 119 119 119 119 119 Playgrounds7 7 7 7 7 7 7 9 9 9 Baseball/softball diamonds 6 6 6 6 6 6 6 6 6 6 Soccer/football fields7 7 7 7 7 7 7 7 7 7 Community centers1 1 1 1 1 1 1 1 1 1 Preserve acreage740 740 740 807.2 807.2 807.2 807.2 889.2 913.2 913.2 Miles of trails4.3 10.43 10.43 15.8 15.8 18.5 18.5 18.5 18.5 18.5 Source: The source of this information is the Town's facilities records.Note: N/A indicates the information is not available.Fiscal Year Ended June 30Function/ProgramTown of Fountain Hills, ArizonaCapital Assets Statistics by FunctionLast Ten Fiscal YearsPage 132
Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, Arizona 85268
480-816-5100
www.fountainhillsaz.gov
- linkedin.com/company/town-of-fountain-hills
-facebook.com/TownofFountainHills
-twitter.com/fhazgov
Page 133
Town of Fountain Hills, Arizona
Single Audit Reporting Package
Year Ended June 30, 2021
TOWN OF FOUNTAIN HILLS, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
FOR THE YEAR ENDED JUNE 30, 2021
CONTENTS Page
Report on Internal Control Over Financial Reporting and on Compliance and 1
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Report on Compliance for Each Major Federal Program; Report on Internal Control 3
Over Compliance; and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs 8
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor’s Report
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of Town
of Fountain Hills, Arizona, as of and for the year ended June 30, 2021, and the related notes to the
financial statements, which collectively comprise Town of Fountain Hills, Arizona’s basic
financial statements, and have issued our report thereon dated November 4, 2021.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Town of Fountain
Hills, Arizona’s internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Town of Fountain Hills, Arizona’s internal control. Accordingly, we do not
express an opinion on the effectiveness of Town of Fountain Hills, Arizona’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that have not been identified.
Page 1
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Fountain Hills, Arizona’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 4, 2021
Page 2
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and
Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Independent Auditor’s Report
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Town of Fountain Hills, Arizona’s compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a
direct and material effect on each of Town of Fountain Hills, Arizona’s major federal programs
for the year ended June 30, 2021. Town of Fountain Hills, Arizona’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule of findings
and questioned costs.
In our opinion, Town of Fountain Hills, Arizona complied, in all material respects, with the
compliance requirements referred to above that could have a direct and material effect on each of
its major federal programs for the year ended June 30, 2021.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America (GAAS); the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
(Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of Town of Fountain Hills, Arizona and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion on compliance for each major federal program. Our audit does not provide a legal
determination of Town of Fountain Hills, Arizona’s compliance with the compliance requirements
referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements
applicable to Town of Fountain Hills, Arizona’s federal programs.
Page 3
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on Town of Fountain Hills, Arizona’s compliance based on our audit.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards,
and the Uniform Guidance will always detect material noncompliance when it exists. The risk of
not detecting material noncompliance resulting from fraud is higher than for that resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Noncompliance with the compliance requirements referred to above
is considered material, if there is a substantial likelihood that, individually or in the aggregate it
would influence the judgment made by a reasonable user of the report on compliance about Town
of Fountain Hills, Arizona’s compliance with the requirements of each major federal program as
a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the
Uniform Guidance, we
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding Town of Fountain Hills, Arizona’s
compliance with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
Obtain an understanding of Town of Fountain Hills, Arizona’s internal control over
compliance relevant to the audit in order to design audit procedures that are appropriate in
the circumstances and to test and report on internal control over compliance in accordance
with Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of Town of Fountain Hills, Arizona’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis.
Page 4
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of Town of Fountain Hills, Arizona as of and for the year
ended June 30, 2021, and the related notes to the financial statements, which collectively comprise
Town of Fountain Hills, Arizona’s basic financial statements. We issued our report thereon dated
November 4, 2021, which contained unmodified opinions on those financial statements. Our audit
was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by the Uniform Guidance and
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements taken as
a whole.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 4, 2021
Page 5
Additional Identifying NumberFederalAwardName of FunderAssigned By FunderTotal AmountFederalCFDAIdentificationPass‐ThroughPass‐ThroughProvided toFederalProgramClusterClusterFederal Awarding Agency/Program TitleNumber(Optional)EntityEntitySub‐RecipientsExpendituresTotalNameTotalDEPARTMENT OF TREASURYCOVID‐19 ‐ CORONAVIRUS RELIEF FUND21.019COVID‐19STATE OF ARIZONAERMT‐20‐038$2,893,126$2,893,126N/A$0TOTAL DEPARTMENT OF TREASURY$2,893,126TOTAL EXPENDITURE OF FEDERAL AWARDS$2,893,126Please Note:Italicized award lines indicate pass‐through fundingThe accompanying Notes to the Schedule of Expenditures of Federal Awards are an integral part of the schedule.TOWN OF FOUNTAIN HILLS, ARIZONASCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFiscal Period 7/1/2020 ‐ 6/30/2021Page 6
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Fiscal Period 7/1/2020 ‐ 6/30/2021
Significant Accounting Policies Used in Preparing the SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity
of Town of Fountain Hills, Arizona, under programs of the federal government for the year ended June 30,
2021. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion
of the operations of the Town, it is not intended to and does not present the financial position, changes in net
position or cash flows of the Town. Expenditures reported on the Schedule are reported on the modified
accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the
normal course of business to amounts reported as expenditures in prior years. Pass‐through entity identifying
numbers are presented where available.
10% De Minimis Cost Rate
The auditee did not use the de minimis cost rate.
Assistance Listing Numbers
The program titles and Assistance Listing numbers were obtained from the federal or pass‐through grantor or
through sam.gov. If the three‐digit Assistance Listing extension is unknown, there is a U followed by a two‐
digit number in the Assistance Listing extension to identify one or more Federal award lines from that
program. The first Federal program with an unknown three‐digit extension is indicated with U01 for all award
lines associated with that program, the second is U02, etc.
Page 7
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
Summary of Auditor’s Results:
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Significant deficiency(ies) identified: No
Material weakness(es) identified: No
Noncompliance material to financial statements noted: No
Federal Awards
Internal control over major programs:
Significant deficiency(ies) identified: No
Material weakness(es) identified: No
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with §200.516 of
Uniform Guidance: No
Identification of major programs:
Assistance Listing Number Name of Federal Program or Cluster
21.019 Coronavirus Relief Fund
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee: No
Findings Related to Financial Statements Reported in Accordance with Government
Auditing Standards: No
Findings and Questioned Costs Related to Federal Awards: No
Summary Schedule of Prior Audit Findings required to be reported: No
Page 8
INDEPENDENT ACCOUNTANT’S REPORT
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have examined the Town of Fountain Hills, Arizona’s (Town) compliance as to whether
highway user revenue fund monies received by the Town pursuant to Arizona Revised Statutes
Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues received by
the Town, were used solely for authorized transportation purposes during the year ended
June 30, 2021. Management is responsible for the Town’s compliance with those requirements.
Our responsibility is to express an opinion on the Town’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about the Town’s compliance with the
requirements referred to above, in all material respects. An examination involves performing
procedures to obtain evidence about the Town’s compliance with the requirements referred to
above. The nature, timing, and extent of the procedures selected depend on our judgement,
including an assessment of the risks of material noncompliance of the report, whether due to fraud
or error. We believe the evidence we obtained is sufficient and appropriate to provide a reasonable
basis for our opinion. Our examination does not provide a legal determination on the Town’s
compliance with specified requirements.
In our opinion, the Town of Fountain Hills, Arizona complied, in all material respects, with the
aforementioned requirements for the year ended June 30, 2021.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 4, 2021
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF LTAF II FUNDS
LTAF II Funds
Revenues $-
Expenditures
Transit
Operating
Capital
Other
Transportation
Operating
Capital
Other
Total Expenditures -
Net increase/decrease in LTAF II funds -
Beginning fund balance, July 1 254,259
Ending fund balance, June 30 $ 254,259
Signature
Town of Fountain Hills, Arizona
Finance Director
REVENUES AND EXPENDITURES
YEAR ENDED JUNE 30, 2021
Page 1 See accompanying notes to this schedule
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO THE SCHEDULE OF LTAF II FUNDS
(1)Revenues and expenditures are reported on the modified accrual basis of accounting.
(2)
Project 1:
10,000$
Project 2:
244,259$
JUNE 30, 2021
The Town has not yet expended all of the funds received from fiscal year 2013-14, fiscal year 2014-15,
fiscal year 2016-17, fiscal year 2017-18, and fiscal year 2018-19. The Town has expended monies to
subsidize the Ride Choice program and Bus Stop Improvements.
Subsidize the Ride Choice program based on the
transit study performed in previous years.
Subsidize the Bus Stop Improvements based on
the need to provide necessary shelter for riders.
Town of Fountain Hills, Arizona
Annual Expenditure Limitation Report
Year Ended June 30, 2021
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2021
CONTENTS PAGE
Independent Accountant’s Report 1
Annual Expenditure Limitation Report - Part I 2
Annual Expenditure Limitation Report - Part II 3
Annual Expenditure Limitation Report - Reconciliation 4
Notes to Annual Expenditure Limitation Report 5
INDEPENDENT ACCOUNTANT’S REPORT
The Auditor General of the State of Arizona
The Honorable Mayor and Town Council
of the Town of Fountain Hills, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of the Town of
Fountain Hills, Arizona for the year ended June 30, 2021, and the related notes to the report. The
Town’s management is responsible for presenting this report in accordance with the Uniform
Expenditure Reporting System as described in Note 1. Our responsibility is to express an opinion
on this report based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the Uniform Expenditure Reporting System, in all material respects. An
examination involves performing procedures to obtain evidence about the amounts and disclosures
in the report. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material misstatement of the report, whether due to fraud
or error. We believe that the evidence we obtained is sufficient and appropriate to provide a
reasonable basis for our opinion.
In our opinion, the Annual Expenditure Limitation Report referred to above is presented, in all
material respects, in accordance with the Uniform Expenditure Reporting System as described in
Note 1.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 4, 2021
Page 1
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – PART I
YEAR ENDED JUNE 30, 2021
1. Economic Estimates Commission expenditure limitation $ 30,646,564
2. Voter-approved alternative expenditure limitation
(approved N/A)
3. Enter applicable amount from line 1 or line 2 30,646,564
4. Amount subject to the expenditure limitation
(total amount from Part II, Line C) 21,454,429
5. Amount under the expenditure limitation $ 9,192,135
I hereby certify, to the best of my knowledge and belief, that the information contained in this
report is accurate and in accordance with the requirements of the Uniform Expenditure Reporting
System.
Signature of Chief Fiscal Officer
Name and Title: David Pock, Finance Director
Telephone Number: 480-816-5162 Date: November 4, 2021
See accompanying notes to report.
InternalGovernmental Enterprise Service FiduciaryFundsFundsFundsFundsTotalA. Amounts reported on theReconciliation, Line D$ 27,218,221 $- $ 19,224 $ - $ 27,237,445 B. Less exclusions claimed:1 Bond proceeds- Debt service requirements on bonded indebtedness- Proceeds from other long-term obligations- Debt service requirements on other long-term obligations- 2Dividends, interest, and gains on the sale or redemption of investment securities49,543 49,543 3 Trustee or custodian- 4 Grants and aid from the federal government2,893,126 2,893,126 5Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes68,729 68,729 6 Amounts received from the State of Arizona195,117 195,117 7 Quasi-external interfund transactions19,224 19,224 8Amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements- 9 Highway user revenues in excess of those received in fiscal year 1979-802,478,045 2,478,045 10 Contracts with other political subdivisions- 11 Refunds, reimbursements, and other recoveries79,232 79,232 12 Voter-approved exclusions not identified above- 13 Prior years carryforward- 14 Total exclusions claimed5,763,792 - 19,224 - 5,783,016 C.Amounts subject to expenditure limitation$ 21,454,429 $ - $ - $ - $ 21,454,429 TOWN OF FOUNTAIN HILLS, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT - PART IIYEAR ENDED JUNE 30, 2021DescriptionSee accompanying notes to report.Page 3
InternalGovernmental Enterprise Service FiduciaryDescription Funds Funds Funds Funds TotalA.$ 27,695,561 $ - $ 19,224 $ - $ 27,714,785 B. Subtractions:1. Items not requiring the use of working capital -Depreciation- Loss on disposal of capital assets- Bad debt expense- Other postemployment benefits expense- Claims incurred but not reported- Pension expense- Landfill closure and postclosure care costs- 2.- 412,452 412,452 3. Required fees paid to the Arizona Department of Revenue64,888 64,888 4. Involuntary court judgments- 5. Total subtractions477,340 - - - 477,340 C. Additions:1. Principal payments on long-term debt- 2. Acquisition of capital assets- 3. Other postemployment benefits paid in the current year but reported as expenses in previous years- 4. Claims paid in the current year but reported as expenses incurred but not reported in previous years- 5. Pension contributions paid in the current year- 6.- 7. Total additions- - - - - D. Amounts reported on Part II, Line A$ 27,218,221 $- $ 19,224 $ - $ 27,237,445 See accompanying notes to report.TOWN OF FOUNTAIN HILLS, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATIONYEAR ENDED JUNE 30, 2021Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statementsExpenditures of separate legal entities established under Arizona Revised StatutesLandfill closure and postclosure care costs paid in the current year but reported as expenses in previous yearsPage 4
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the
Uniform Expenditure Reporting System (UERS), as required by Arizona Revised
Statutes §41-1279.07. The AELR excludes expenditures, expenses, or deductions of
certain revenues specified in the Arizona Constitution, Article IX, §20, from the total
expenditures, expenses, or deductions reported in the fund financial statements.
In accordance with the UERS, a note to the AELR is presented below for any
exclusion claimed on Part II and each subtraction or addition in the Reconciliation
that cannot be traced directly to an amount reported in the fund financial statements.
All references to financial statement amounts in the following notes refer to the
Statement of Revenues, Expenditures, and Changes in Fund Balances for the
Governmental Funds.
NOTE 2 – The exclusion claim for expenditures of separate legal entities established under
Arizona Revised Statutes in the Governmental Funds consists of expenditures from
the Municipal Property Corporation Debt Service Fund, Cottonwoods Maintenance
Fund and the Eagle Mountain Debt Service Fund.
Governmental
Municipal Property Corporation Debt Service Fund $ 510
Cottonwoods Maintenance Fund 4,898
Eagle Mountain Debt Service Fund 407,044
$ 412,452
NOTE 3 – The subtraction of $64,888 for required fees paid to Arizona state agencies was paid to
the Arizona Department of Administration pursuant to A.R.S. §42-5041 for
administrative, program, and operating costs incurred in providing administrative and
tax collection services to the Town.
NOTE 4 – The exclusions claimed for dividends, interest, and gains on the sale or redemption
of investment securities in the Governmental Funds consisted of investment earnings.
The current year exclusion utilized is a follows:
Governmental
Internal
Service
Carryforward exclusions as of 6/30/20 $ 107,337
Investment earnings 49,654 $ 11
Current year exclusion utilized 49,543
Carryforward exclusions as of 6/30/21 $ 107,448 $ 11
Page 5
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2021
NOTE 5 – Grants and aid from the federal government are claimed as exclusions in the year the
expenditure occurs and any unused amounts are carried forward for future years. The
current year grant exclusion utilized is $2,893,126 is related to the Coronavirus Relief
Fund grant.
NOTE 6 – Grant revenues, contributions and sponsorships from private organizations are claimed
as exclusions in the year the expenditure occurs and any unused amounts are carried
forward for future years. The current year grant exclusion utilized is a follows:
Proposition 202 $ 45,000
Contributions 19,340
Sponsorships 4,389
Current year exclusion utilized $ 68,729
NOTE 7 – State grant revenues are claimed as exclusions in the year the expenditure occurs and
any unused amounts are carried forward for future years. The current year state grant
exclusion utilized is a follows:
Proposition 302 $ 96,648
Maricopa Association of Governments 98,469
Current year exclusion utilized $ 195,117
NOTE 8 – The exclusion of $19,224 in the Internal Service Fund relates to charges for services
paid to the Internal Service Fund for technology replacement. The interfund charges
are included in “Charges for Services” in the Internal Service Fund and as a current
expenditure in various departments in the Governmental Funds.
NOTE 9 – The highway user revenue (HURF) earned in excess of the amounts received in fiscal
year 1979-80 is as follows:
HURF Fund Intergovernmental Revenue $ 2,584,538
Less: Vehicle License Tax Revenues (837,338)
Excludable revenue 1,747,200
Carryforward HURF funds as of 6/30/20 1,216,974
HURF Fund expenditures 4,419,313
Less: expenditures of Vehicle License Tax (837,338)
Less: expenditures of non-excludable revenue (1,098,118)
Less: current year investment earnings exclusion utilized (734)
Less: amounts transferred from the Capital Projects Fund (5,078)
HURF eligible expenditures in current year 2,478,045
Less: current year HURF Funds utilized (1,747,200)
Less: prior year HURF Funds utilized (730,845)
Carryforward HURF Funds as of 6/30/21 $ 486,129
Page 6
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2021
NOTE 10 – Refunds, reimbursements, and other recoveries are claimed as exclusions in the year
the expenditure occurs and any unused amounts are carried forward for future years.
The current exclusions utilized was $79,232.
NOTE 11 – Revenues that are constitutionally excludable that were not spent in the year of
receipt may be accumulated and excluded in future years when spent. A summary of
the revenue sources and the changes in those balances is shown in the table below:
Description
Balance
June 30, 2020 Increase Decrease
Balance
June 30, 2021
Dividends, interest, and gains on the sale or
redemption of investment securities $ 107,337 $ 49,665 $ 49,543 $ 107,459
Highway user revenues in excess of those
received in fiscal year 1979-80 1,216,974 730,845 486,129
Total carryforward $ 1,324,311 $ 49,665 $ 780,388 $ 593,588
Page 7
ITEM 5. C.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Public Appearances/Presentations Submitting Department: Administration
Prepared by: David Pock, Finance Director
Staff Contact Information: David Pock, Finance Director
SPECIAL PUBLIC APPEARANCES/PRESENTATIONS (Agenda Language): PRESENTATION: First
Quarter FY22 Revenue Update
Staff Summary (Background)
Staff will provide a summary of Transaction Privilege Tax (TPT) and State shared revenue as of the fiscal
quarter ended 9/30/2021. The presentation will include summarized and detailed collection
information for local TPT and State shared revenue sources, as well as comparisons of budgeted and
actual amounts for the fiscal quarter.
Attachments
Presentation
Form Review
Inbox Reviewed By Date
Finance Director (Originator)David Pock 10/27/2021 04:41 PM
Town Attorney Aaron D. Arnson 10/27/2021 04:49 PM
Town Manager Grady E. Miller 10/28/2021 05:19 PM
Form Started By: David Pock Started On: 10/25/2021 05:21 PM
Final Approval Date: 10/28/2021
www.fh.az.gov
Fiscal Year 2021
Year -End Update
Grady Miller, Town Manager
David Pock, Finance Director
November 16, 2021
www.fh.az.gov
FY21 Year-End Update
Summary
•General Fund revenues exceeded expectations by
a total of $2.9M
•General Fund expenditures were below budgeted
amounts by a total of $2.3M
•Audited ye ar-end fund balances are available in
the Annual Comprehensive Financial Report
•After reserve requirements are met and budgeted
FY22 transfers are made, a total of $3.8M will be
transferred to the Capital Project Fund
www.fh.az.gov
Fiscal Year 2022
First Quarter Revenue Update
Grady Miller, Town Manager
David Pock, Finance Director
November 16, 2021
www.fh.az.gov
First Quarter Revenue Update
Summary
•Overall TPT revenue collection for the 1st quarter
is encouraging and has met budgeted expectations
•Strong year-over-year increases seen in
Restaurant/Bar and Services categories
•State shared income tax revenue is down slightly
due to revised calculations based on 2020 census
results
•Other state shared revenues exceeded quarterly
estimates
www.fh.az.gov
First Quarter Revenue Update
Net Taxable Activity
•$126M in activity
•Increase of $1M
compared to FY21
$0
$10
$20
$30
$40
$50
$60
$70
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12MillionsNet Taxable Activity by Fiscal Year & Period
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Total TPT Collections
•Includes all TPT
reporting categories
•Budgeted $3.49M
•Collected $3.63M
•$140K m ore than
expected
•Increase of $129K
compared to FY21 $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTotal TPT Collections by Fiscal Year & Period
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Retail Sales
•Includes Use Tax
& Online Sales
•Budgeted $2.03M
•Collected $1.93M
•$100K less than
expected
•Increase of $45K
compared to FY21 $0
$200
$400
$600
$800
$1,000
$1,200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Wholesale/Retail
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Construction
•Includes Prime
Contracting and
Speculative
Builders
•Budgeted $469K
•Collected $442K
•$27K less than
expected
•Decrease of
$118K compared
to FY21
$0
$100
$200
$300
$400
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Construction
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Utilities & Communications
•Includes Water,
Sewer, Electricity,
Cable, Natural
Gas, Phones, and
Internet Services
•Budgeted $323K
•Collected $477K
•$154K more than
expected
•Decrease of $8K
compared to FY21
$-
$50
$100
$150
$200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Transportation/Communications/Utilities
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Real Estate
•Includes Long-
term Residential
and Commercial
rentals
•Budgeted $245K
•Collected $219K
•$26K less than
expected
•Increase of $10K
compared to FY21
$0
$50
$100
$150
$200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Real Estate
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Restaurants & Bars
•Includes local
Restaurants (drive
thru, sit-down,
and delivery) and
Bars
•Budgeted $200K
•Collected $263K
•$63K more than
expected
•Increase of $79K
compared to FY21
$0
$50
$100
$150
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Restaurant & Bar
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
Services
•Includes Hotels,
Golf, Tours, and
Vacation Rentals
•Budgeted $223K
•Collected $296K
•$73K more than
expected
•Increase of $121K
compared to FY21
$0
$50
$100
$150
$200
$250
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12ThousandsTPT Collections by Fiscal Year & Period
Services
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
State Shared Revenue
•Budgeted $740K
•Collected $793K
•Budgeted $822K
•Collected $810K
$350
$300
$250
$200
$150
$100
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12ThousandsState Shared Revenue -Sales Tax
2019 2020 2021 2022
$350
$325
$300
$275
$250
$225
$200
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12ThousandsState Shared Revenue -Income Tax
2018 2019 2020 2021 2022
www.fh.az.gov
First Quarter Revenue Update
State Shared Revenue –Con’t.
•Budgeted $419K
•Collected $458K
•Budgeted $292K
•Collected $292K
$150
$125
$100
$75
$50
$25
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12ThousandsState Shared Revenue -Vehicle License Tax
2018 2019 2020 2021 2022
$350
$300
$250
$200
$150
$100
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12ThousandsHighway User Revenue Fund (HURF)
2018 2019 2020 2021 2022
www.fh.az.gov
Questions
ITEM 7. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Administration
Prepared by: Elizabeth A. Klein, Town Clerk
Staff Contact Information:
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Approval of the minutes of the Regular Meeting of November 2, 2021.
Staff Summary (Background)
The intent of approving meeting minutes is to ensure an accurate account of the discussion and action
that took place at the meeting for archival purposes. Approved minutes are placed on the Town's
website and maintained as permanent records in compliance with state law.
Related Ordinance, Policy or Guiding Principle
N/A
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approving the minutes of the Regular Meeting of November 2, 2021.
SUGGESTED MOTION
MOVE to approve the minutes of the Regular Meeting of November 2, 2021.
Attachments
2021.1102.TCRM.Minutes
Form Review
Inbox Reviewed By Date
Town Manager Grady E. Miller 11/04/2021 03:29 PM
Form Started By: Elizabeth A. Klein Started On: 11/04/2021 11:36 AM
Final Approval Date: 11/04/2021
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR MEETING
OF THE FOUNTAIN HILLS TOWN COUNCIL
NOVEMBER 2, 2021
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey
Mayor Dickey called the Regular Meeting of November 2, 2021, to order at 5:30 p.m. and
led the Town Council and audience in the Pledge of Allegiance.
2.MOMENT OF SILENCE
A Moment of Silence was held.
3.ROLL CALL – Mayor Dickey
Present: Mayor Ginny Dickey; Councilmember Mike Scharnow; Councilmember David
Spelich (telephonically); Councilmember Gerry Friedel; Councilmember Sharron
Grzybowski; Councilmember Peggy McMahon; Vice Mayor Alan Magazine
Staff
Present:
Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk
Elizabeth A. Klein
4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER
Town Manager Grady Miller said that he had asked Volunteer Coordinator Kim Wickland to
come forward and report on the recent Make a Difference Day event. Ms. Wickland said
that they held their 13th Annual Make a Difference Day on October 23, 2021. They had 336
volunteers provide over 1600 service hours. They helped 37 residential projects and also 3
Town services. She said that 40 volunteers planted 150 plants at the Town Center and
beautified the Fountain Hills Middle School. The local Girl Scout troop prepared over 100
holiday greeting cards. She thanked the members of the Make a Difference Day
Committee. She said that it takes so much planning and she could not do it without their
help and guidance.
Ms. Wickland thanked Paul Garvey of their committee for creating a video which captured
what it feels like to "make a difference." The Town Council and audience then viewed the
video.
At this time a proclamation was read (Item 4A) and the Stellar Students of the Month (Item
4B) were recognized, and then Reports continued.
Councilmember McMahon thanked Mr. Miller, Mr. Larsen, Councilmember Scharnow and
Mayor Dickey for inviting her to serve on the Fountain Hills Cares committee. She said that
the event was held last weekend, and it was very educational, successful, and she
appreciated the opportunity to showcase homelessness.
Councilmember Friedel said that he participated in the Make a Difference Day, and he
thanked everyone involved in its organization. He said that he also attended a meeting
where one of the residents donated a sizable amount to the ADOG organization to provide
shelters at the dog park. It was wonderful for a resident to do that, and he is looking
forward to doing more things with ADOG.
Councilmember Scharnow said that he attended a Valley Metro Board Meeting, a ribbon
cutting for the new express bus route into Mesa, participated in the Make a Difference Day
event, the Take Back Drugs Day, a Chamber membership event at Christ Church, emceed
the Annual Hall of Fame Induction for the River of Time Museum, was a presenter at the
Fountain Hills Cares Event, and attended the Spooky Blast.
Vice Mayor Magazine said that the Fountain Hills Cares Program was outstanding. He said
that the panels were good and Councilmember Scharnow should take his show on the road
and into the schools. He attended the reopening of the Museum which has been renovated
and it has been wonderfully done.
Councilmember Grzybowski said that the MaDD video was great and Justin (Weldy) makes
dumpster duty so easy. At the October Community Services Advisory Commission meeting
she listened to a presentation on the Bioliphic group, which looks to integrate nature into
design. She said that the Town Council will see the presentation early next year. Prior to
that meeting she met with Community Services staff to receive the Gold Medal banner,
which they will soon be putting up on the Mini Pitch field. She said that she also
participated in Fountain Hills Cares, and she wanted to promote the River of Time
Museum. She also attended the ADOG meeting as well as the Bus Stop Ribbon Cutting.
Mayor Dickey said that she recently interviewed with KLOVE, a Closer Look with Dan
Beck,with good positive questions, and it will be airing soon. She said that she toured the
River of Time Museum, which was impressive with its exciting changes.
She said that she did some weeding at Make a Difference Day, but then she got to visit the
other work sites. She thanked all the planners and participants. She attended several
ribbon-cuttings for several businesses with more to come. She also attended the
ribbon-cutting for the new 515 Valley Metro Bus Route, which included many professionals
from RPTA including the Director, and former Mesa Mayor, Scott Smith. She said that they
hope that with a lot of outreach these trips to the Mesa/Gilbert Park & Ride, with many
more connections, will be utilized.
Mayor Dickey said she was honored to be invited to welcome tribes involved in tourism
from across the United States, Canada and Hawaii to the State, with hosts, the Fort
McDowell Yavapai Nation. The Chamber’s Betsy LaVoie spoke about partnerships and
business connections to the attendees at the event, the American Indian and Alaskan
Native Association Annual National Tourism Conference. It was energizing and optimistic.
She attended a MAG Regional Council meeting as well as an update meeting with the
Canadian-Arizona Business Council.
She said that Rachael, Councilmembers Friedel and Grzybowski and herself attended a
meeting to recognize a donation for one of the Town's parks.
She attended the Fountain Hills Cares conference, which was well-attended with positive,
professional, and effective presenters. She thanked all the presenters and all involved,
including Bo, Mike, Peggy, Captain Kratzer, Commissioner Rory Wilson, Kari Harper,
Town Council Regular Meeting of November 2, 2021
2 of 9
Grady, Jennifer Lyons, Rachael, members of the Mayor's Youth Council, volunteers,
participants, and former Councilmember Sherry Leckrone for getting the ball rolling. She
said that the video and presentation materials are available on the Town's website.
Last, she said that she dropped by the Spooky Blast. Walking toward the bustling field was
nostalgic for when they brought the kids there to Four Peaks Park every year three
decades ago. She said that it looked like everyone had a great time, all treat no tricks. It
involved a lot of planning and work, and she thanked staff and volunteers.
A.A PROCLAMATION Declaring November 11, 2021, as Veterans Day.
Mayor Dickey read a proclamation proclaiming November 11, 2021, as Veterans Day.
B.RECOGNITION of Stellar Students of the Month for October.
Mayor Dickey recognized the following students as Stellar Students of the Month of
October. She read what was said about each student, and then invited them forward to
receive a certificate and have pictures taken.
Ivy Butler McDowell Mountain Elementary School
Easton Jones McDowell Mountain Elementary School
Madison Scribner Fountain Hills Middle School
Fabian Rosenquist Fountain Hills Middle School
Analiz Lara-Lopez Fountain Hills High School
Christopher Towne Fountain Hills High School
5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
None
6.CALL TO THE PUBLIC
Pursuant to A.R.S. §38-431.01(H), 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 properly noticed for discussion and legal action. At the conclusion of
the Call to the Public, individual councilmembers 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.
Crystal Cavanaugh, Fountain Hills resident, voiced concern with another sober house
coming into the community. She asked if the homes are being monitored, and if so, by
whom. She asked if realtors are pimping out their town. She also commented on the
Fountain Hills Cares event, where she noted that half of the participants were masked, and
the other half were not. She said the Mayor needs to stop the mandate for masks, as it
was an overreach of power.
7.CONSENT AGENDA ITEMS
Town Council Regular Meeting of November 2, 2021
3 of 9
7.CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be
enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all
recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items
unless a councilmember or member of the public so requests. If a councilmember or member of the public
wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the
Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which
the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal
sequence on the agenda.
MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember Sharron
Grzybowski to approve Consent Agenda Items 7-A through 7-F.
Vote: 7 - 0 Passed - Unanimously
A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes of the Joint Work
Session with the Fountain Hills Sanitary District Board of October 12, 2021; the Special
Meeting of October 19, 2021; and the Regular Meeting of October 19, 2021.
B.PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Approval of Liquor
License Application for Sylvester's Bistro & Wine Bar, located at 16726 El Pueblo Boulevard
#B, Fountain Hills, Arizona, for a Series 12 (Restaurant) license.
C.PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Approval of Liquor
License Application for Fountain View Village, located at 16455 E. Avenue of the Fountains,
Fountain Hills, Arizona, for a Series 12 (Restaurant) license.
D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2021-34, abandoning the 10'
Public Utility and Drainage Easement along the north side of 13010 N Mimosa Drive
E.CONSIDERATION AND POSSIBLE ACTION: Final Plat for Adero Canyon Phase II Parcel
4, a subdivision containing 33 lots and 8 tracts in the Adero Canyon PAD.
F.CONSIDERATION AND POSSIBLE ACTION: approving the Second Amendment to
Professional Services Agreement 2021-005 with A&H Painting, Inc. and associated budget
transfers.
8.REGULAR AGENDA
A.PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Ordinance 21-13
amending Zoning Ordinance Chapter 6, Sign Regulations, Sections 6.02, Definitions,
Section 6.07, General Regulations, and Section 6.08, Sign Requirements and Allowances.
Mayor Dickey noted that the Public Hearing had been opened at the October 19, 2021,
meeting, but was continued to this meeting as several councilmembers were not present at
the last meeting.
Development Services Director John Wesley began a PowerPoint presentation which
addressed:
Town Council Regular Meeting of November 2, 2021
4 of 9
BACKGROUND
•Earlier this year, at three meetings, Council discussed new ordinance and several options
for temporary signs
•Approved new ordinance on May 18, 2021 ultimately eliminating all temporary signs from
the ROW
•Following approval Council directed staff to postpone enforcement and of some temporary
sign provisions to consider possible modifications
•Staff has worked with two focus groups to look at and consider options
•Further mapped all commercial and industrial areas to see where limitations exist for
temporary signage
PURPOSE
•Consider possible amendments to new Sign Ordinance to address temporary signs in the
right of way
•Looking for balance between:
•Section 6.01 Findings and Purpose – avoid visual clutter, promote health and safety, etc.
•Council determination to not allow signs in ROW
•Expressed community need for such signs
POSSIBLE TEXT AMENDMENTS
•Add a definition in Section 6.02 for Town Center Pedestrian Area
Councilmember McMahon asked what the purpose and effect of this change would be, and
how it compares with other exemptions they may or may not agree with. Mr. Wesley said
that when they get down to the section on a-frames, it will allow a-frames in the
right-of-way within the pedestrian area.
Mayor Dickey noted that this was just the definition section of the ordinance; doing this
does not stop them from saying they do not want signs there.
Councilmember Grzybowski said that she liked the definition; Councilmember Spelich
concurred, noting that it was a clear definition.
•Amend 6.07 B. 2. a. to provide an exemption for temporary signs that are part of a
Town approved special event
Councilmember Grzybowski said that it was clear to her. Councilmember Scharnow said
that he would assume any large event on Town property would need a Town permit. He
asked if there were smaller events that would not, but would feel they need signage. Mr.
Wesley said that the larger events go through Community Services for a Special Event
process. Mayor Dickey said that there are other aspects of the Sign Code that would apply
to the smaller ones.
ORDINANCE COMPARISON - A-FRAMES
Mr. Wesley said that the proposed ordinance eliminates the sunset clause. Before it was
one sign per property; now it is one sign per business.
Vice Mayor Magazine asked what a six foot clearance meant. Mr. Wesley said that they
would need an eight foot sidewalk. He said that the Avenue of the Fountain has 10-12 foot
clearances, but others are 4-6 with a detached sidewalk.
Town Council Regular Meeting of November 2, 2021
5 of 9
Councilmember Scharnow said that he and Mr. Wesley spoke earlier in the day, and he
was still confused by the language. His understanding is that the a-frames would be
allowed in the right-of-way in the downtown pedestrian area, but there was no limit on the
days.
Mayor Dickey said that she would recommend that wherever it says "residential direction
sign" that it just say "other signs" as it would be a content-based sign, which is now not
permitted. She said that she was fine with the Planning and Zoning Commission
recommendation, but she would like to add, "business has no private property location
available and obtains a permit from the Town at no cost."
Vice Mayor Magazine said that if they have their own private property that has the room,
they could not put up a sign in the right-of-way. He said that there are 59 parcels where
there s room to put it on their personal land.
Councilmember McMahon clarified that it was for a-frames signs, and only applied to those
businesses who have insufficient private property for placement. Councilmember
Scharnow noted that private property would also include "commonly owned." Mr. Wesley
said that within a designated area, such as next to Sofrita's, they could put a-frames in the
common area, but not out on the sidewalk.
Councilmember Grzybowski suggested that if the same person owns the business, they
extend the permit requirement past one year. Mr. Miller said that the intent is not to make it
limited. Staff would work with the business owner to know where signs could be placed. It
would not need to be for 12 months. If it is in the ordinance, they could create something
easy and make sure there is compliance.
Councilmember Spelich said that unless there is a change in business owner, there should
not be a time limit, unless they are in violation, then maybe they have one.
Councilmember Scharnow asked if they were defining a-frame signs differently that by
size. Mr. Wesley said that there is a maximum size permitted, as well as the type of
materials used.
POST & BOARD
Mr. Wesley said that there are some challenges to be out of the right-of-way, such as with
Plat 208, or with the topography of the town, like along Shea with the floodplain area and
trees.
Councilmember McMahon said that she preferred staff's recommendation; Councilmember
Grzybowski said that she preferred the Commission's. Councilmember Scharnow said that
he was leaning toward staff and Mayor Dickey said that she preferred staff's.
Councilmember Friedel said that he liked the flexibility with the Commission's
recommendation.
YARD SIGNS
Mr. Wesley said that based on prior discussions, he would take out the verbiage
"residential directional". Vice Mayor Magazine said that he would assume there are
regulations as to what kinds of signs could be used. Mr. Wesley said that they have
regulations as to what they are supposed to be. When code compliance sees them they
will know those regulations.
Town Council Regular Meeting of November 2, 2021
6 of 9
Councilmember McMahon said that with the vote taken in May, it should be clear that signs
are not permitted in the medians. Vice Mayor Magazine said that enforcement is going to
be critical.
Councilmember Grzybowski said that staff and the Commission worked hard on this issue.
She said that she liked where the Commission was going, and suggested adding verbiage
that would also allow them out on federal holidays. Vice Mayor Magazine said that he was
in general agreement with that. Mr. Miller said that typically the Town does not have
enforcement on holidays, but that could be added.
Discussion was held on the number of signs permitted leading to an activity. After further
discussion, it was agreed to one sign on the house and three leading to the property.
Mr. Wesley said that there was discussion of a blanket encroachment permit, brought up
from the focus groups. He said that they do have an allowance for projecting signs
because of the challenges in Town. It was suggested that projection signs could be
permitted with a blanket encroachment permit, so the applicant would come into the office
to ensure it meets the standard, but then no additional process would be needed. He said
that would not be part of this Code change.
The following individuals address the Town Council, in support of the Commission's
recommendation: Betsy LaVoie, Fountain Hills Chamber of Commerce; Suzanne Brown,
Scottsdale Area Association of Realtors; Dori Wittrig.
Comments included:
• They invited key business stakeholders, the Scottsdale Area Association of Realtors and
Arizona Sign Association.
• Through their work and that of the Commission she encourages the Town to recognize
the work, time and effort, and vote for the Commission's recommendation.
• She represents a local trade association of over 90,000, many of whom reside in
Fountain Hills. They support the recommendations from the Commission.
• If the Council did not want consecutive signage, they could limit it to one sign per
roadway.
• Not everyone uses technology; many people find open houses by driving around and
seeing signs.
• There are some places in town where even six signs won't get someone to a location.
Town Clerk Elizabeth Clerk reported that written comments were received from Susan
Dempster; Natalie Varela; Andrew Day; Lorri Phillips and Toni LePoer, all in support of the
Commission's recommendation
Mr. Wesley said that at one time they had a 300 feet separation requirement for signs; they
could put that back in the code.
Mayor Dickey said that they are thinking in terms of open house signs, but now that the
Town cannot regulate content of signs, people could put up six of any kind of signs.
Mayor Dickey closed the Public Hearing, and a recess was held from 7:06 p.m. to 7:23
p.m.
The Town Attorney and Development Services Director met during the break to finalize
Town Council Regular Meeting of November 2, 2021
7 of 9
verbiage to coincide with the prior discussions. To recap, the ordinance would use staff's
recommendation with the following amendments:
Section 3 6.07 B. 2. a. "or as allowed through town approval of a special event permit"
Section 4 6.08 A. 1. d. i. "...removing residential directional sign and adding to the end
,i. ...but not within any designated parking or loading area, and adding ii. "as provided in
Section 6.08 D." Also, adding iii. "within the town center pedestrian area, may be located in
the town right-of-way adjacent to the business through the issuance of a permit by the town
when the property lacks adequate access to display a sign on its property or adjacent
common property, provided that a sign....4. shall not be located on a public sidewalk unless
there is at least six feet of clear passage around at least one side and the sign owner
provides the town an indemnification agreement with regards to the sign; and 5. shall be at
least three (3) feet from any curb or edge of pavement."
Section 5 6.08 A. 12. d. amends definition of location, adding a i. and ii. as indicated in
the ordinance;
Section 6 6.;08 A. 17. d. amends definition of location adding i. and ii. as indicated in the
ordinance;
Section 7 6.08 D. is amended removing residential directional sign and adding "other
signs in residential zoning districts and residential PADs," amending the number of
additional signs from five to three; and adding verbiage to the end of 3.
MOVED BY Councilmember Mike Scharnow, SECONDED BY Mayor Ginny Dickey to adopt
Ordinance 21-13 based the Planning and Zoning Commission's recommendation with
subsequent changes as articulated by staff.
Vote: 7 - 0 Passed - Unanimously
Vice Mayor Magazine said that when they started this process it was to reduce the clutter
of signs in town. Some of them thought the proliferation of signs was detracting. He
confesses that he does not think they have gone far enough, but he wanted to thank the
stakeholders, Planning and Zoning Commission, staff, Chamber of Commerce, etc. He
said that sometimes when they vote on something they are accused of being
anti-business. He is very pro-business, but they have to be reasonable about the number
of signs and location. They also have to balance what they believe is best for all citizens.
He said that he is not pleased with the outcome, but they have been working on it for a
long time, and he would support it.
9.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER
Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or
(ii) directing staff to conduct further research and report back to the Council.
None.
10.ADJOURNMENT
MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember David Spelich
(telephonically) to adjourn.
Vote: 7 - 0 Passed - Unanimously
Town Council Regular Meeting of November 2, 2021
8 of 9
Vote: 7 - 0 Passed - Unanimously
The Regular Meeting of the Fountain Hills Town Council held November 2, 2021,
adjourned at 7:34 p.m.
TOWN OF FOUNTAIN HILLS
____________________________
Ginny Dickey, Mayor
ATTEST AND PREPARED BY:
______________________________
Elizabeth A. Klein, Town Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular
Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 2nd day
of November, 2021. I further certify that the meeting was duly called and that a quorum was present.
DATED this 16th day of November, 2021.
_________________________________
Elizabeth A. Klein, Town Clerk
Town Council Regular Meeting of November 2, 2021
9 of 9
ITEM 7. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Community Services
Prepared by: Jennifer Lyons, Senior Services Supervisor
Staff Contact Information: Rachael Goodwin, Community Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Approving a Special Event Liquor License application for the Fountain Hills
Democratic Club for a fundraiser to be held in ballrooms 1, 3 and 4 at the Fountain Hills Community
Center, 13001 N. La Montana Drive, Fountain Hills, AZ 85268 on December 9, 2021, from 6pm-8:30pm.
Staff Summary (Background)
The special event liquor license application was submitted by Sharon Ehrlich who represents the
Fountain Hills Democratic Club, for submission to the Arizona Department of Liquor. The special event
liquor license is being obtained for the purpose of holding a fundraising dinner at the Fountain Hills
Community Center. The applicant and the Fountain Hills Democratic Club are keenly aware that final
issuance of a liquor license as well as approval to hold a fundraiser on December 9, 2021, is contingent
upon state, county, and local ordinances and guidelines as it relates to public health and the COVID-19
pandemic. Furthermore, the applicant and the Fountain Hills Democratic Club understand the Fountain
Hills Community Center may not be able to serve as the venue and the event is subject to cancellation.
The applicant and the Fountain Hills Democratic Club wish to obtain Council approval for the liquor
license application as an administrative step, in anticipation of the Arizona Department of Liquor
License and Control will continue this service through the event on December 9, 2021.
All special event liquor license applicants are required to submit an application and pay a $25 fee for
processing. Once the fee is paid and the application is reviewed by Town staff, the application is
forwarded to the Town Council for its review and consideration. After the application is approved by
Town Council, the applicant will bring the signed paperwork to the Arizona Department of Liquor, and
be issued a physical license to be displayed for the duration of the event. The special event liquor
license application was reviewed by staff for compliance with Town ordinances and staff unanimously
recommends approval of this special event liquor license application as submitted.
Related Ordinance, Policy or Guiding Principle
A.R.S. §4-203.02; 4-261 and R19-1-228, R19-1-235, and R19-1-309.
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval.
SUGGESTED MOTION
MOVE to approve.
Attachments
Application
Form Review
Inbox Reviewed By Date
Community Services Director Rachael Goodwin 10/27/2021 10:48 AM
Finance Director David Pock 10/27/2021 11:05 AM
Town Attorney Aaron D. Arnson 10/27/2021 11:06 AM
Town Manager Grady E. Miller 10/28/2021 05:25 PM
Form Started By: Jennifer Lyons Started On: 10/27/2021 08:41 AM
Final Approval Date: 10/28/2021
ITEM 7. C.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Community Services
Prepared by: Jennifer Lyons, Senior Services Supervisor
Staff Contact Information: Rachael Goodwin, Community Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Approving a Special Event Liquor License application submitted by Jealine
Goldapper, representing the Fountain Hills Unified School District PTO, for a fundraiser to be held in the
Grand Ballroom of the Fountain Hills Community Center on March 3, 2022, from 5 pm to 11 pm.
Staff Summary (Background)
A special event liquor license application was received from Jelaine Goldapper representing the Fountain
Hills District PTO, for submission to the Arizona Department of Liquor. The special event liquor license is
being obtained for the purpose of holding a fundraiser at the Fountain Hills Community Center. The
applicant and the Fountain Hills District PTO are keenly aware that final issuance of a liquor license as
well as approval to hold a fundraiser on March 3, 2022, is contingent upon state, county, and local
ordinances and guidelines as it relates to public health and the COVID-19 pandemic. Furthermore, the
applicant and the Fountain Hills District PTO understand the Fountain Hills Community Center may not
be able to serve as the venue and the event is subject to cancellation. The applicant and the Fountain
Hills District PTO wish to obtain Council approval for the liquor license application as an administrative
step, in anticipation of the Arizona Department of Liquor License and Control will continue this service
through the event on March 3, 2022.
All special event liquor license applicants are required to submit an application and submit and pay a $25
fee for processing. Once the fee is paid and the application is reviewed by Town staff, the application is
forwarded to the Town Council for its review and consideration. After the application is approved by
Town Council, the applicant will bring the signed paperwork to the Arizona Department of Liquor, and
be issued a physical license to be displayed for the duration of the event. The special event liquor
license application was reviewed by staff for compliance with Town ordinances and staff unanimously
recommends approval of this special event liquor license application as submitted.
Related Ordinance, Policy or Guiding Principle
A.R.S. §4-203.02; 4-244; 4-261; and R19-1-228, R19-1-235, and R19-1-309.
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval.
SUGGESTED MOTION
MOVE to approve.
Attachments
PTO 2022 Gala
Form Review
Inbox Reviewed By Date
Community Services Director Rachael Goodwin 10/31/2021 01:40 PM
Finance Director David Pock 11/01/2021 05:35 PM
Town Attorney Aaron D. Arnson 11/02/2021 08:01 AM
Town Manager Grady E. Miller 11/02/2021 11:38 AM
Form Started By: Jennifer Lyons Started On: 10/25/2021 12:22 PM
Final Approval Date: 11/02/2021
ITEM 7. D.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Community Services
Prepared by: Patti Lopuszanski, Executive Assistant
Staff Contact Information: Rachael Goodwin, Community Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Resolution 2021-35 Decommissioning Three Works of Public Art located at the
Town of Fountain Hills Community Center.
Staff Summary (Background)
On September 4, 1997, the Town Council adopted Resolution No. 1997-44 designating the Arts Council,
then a committee of the Civic Association, as the official representative of the Town in all matters
dealing with the promotion of public arts within the Town of Fountain Hills.
In March 2020, the Town Council approved Resolution 2020-07 adopting an updated version of the
Town of Fountain Hills Master Art Plan, proposed and endorsed by the Public Art Committee(PAC). The
decommissioning of public art is addressed within Section X of the updated policy. A work of art may be
considered for removal from public display and/or decommissioning if one or more of the specific
conditions outlined in the policy apply, including: The condition of the work requires restoration in gross
excess of its aesthetic value or is in such a deteriorated state that restoration would prove either
unfeasible, impractical or misleading."
On Monday, October 4, 2021, the Public Art Committee unanimously voted to
decommission the following artworks due to fading, damage, and overall diminished
condition: “Bloomin’ Prickly Pear”; “Music at Fountain Park”; and “E Pluribus Unum” all located in the
Town’s Community Center.
Per policy, an adequate record of the conditions and circumstances under which objects are
decommissioned and disposed of should be made and retained as part of the Collections Management
records. Details of the pieces, the artists, and donors will be maintained for archival and historical
purposes.
Following the Public Art Committee vote, notification was made to all impacted artists/donors with
contact information on file with the Public Art Committee. The artists of the following works are
deceased: Delores Delahanty - "Bloomin' Prickly Pear" and Dr. Kechler - "Music at Fountain Park."
Michael Fleck's, "E Pluribus Unum" will be returned to him, as per his request.
Related Ordinance, Policy or Guiding Principle
The Decommissioning Policy is contained in the Public Art Master Plan Section X adopted by Resolution
2020-07 and allows public art to be removed for public display as follows:
"Town of Fountain Hills Public Art Master Plan, Section X – Decommissioning Policy (the
“Decommissioning Policy”), a work of art may be considered for removal from public display and/or
decommissioning under certain conditions, including when “the condition of the work requires
restoration in gross excess of its aesthetic value or is in such a deteriorated state that restoration would
prove either unfeasible, impractical or misleading."
The recommendation to decommission a work of art will be considered at a regular or special meeting
of the PAC. The Town must approve by Resolution the PAC’s recommendation that a work of art under
its jurisdiction should be decommissioned through sale or exchange.
Risk Analysis
The decommissioning and removal of the art pieces have no associated public or financial risk.
Recommendation(s) by Board(s) or Commission(s)
On October 4, 2021 the Public Art Committee voted unanimously to decommission “Bloomin’ Prickly
Pear”; “Music at Fountain Park”; and “E Pluribus Unum” located in the Town’s Community Center
Staff Recommendation(s)
The Public Art Committee and staff recommend the adoption of Resolution 2021-35
SUGGESTED MOTION
MOVE to adopt Resolution 2021-35.
Attachments
Resolution 2021-35
Section X - Decommissioning Policy Public Art Master Plan
Public Art Master Plan
Bloomin' Prickly Pear
Music at the Fountain
E Pluribus Unum
Form Review
Inbox Reviewed By Date
Community Services Director Rachael Goodwin 11/03/2021 04:05 PM
Finance Director David Pock 11/04/2021 07:44 AM
Town Attorney Aaron D. Arnson 11/04/2021 07:50 AM
Town Manager Grady E. Miller 11/04/2021 08:34 AM
Form Started By: Patti Lopuszanski Started On: 10/06/2021 03:58 PM
Final Approval Date: 11/04/2021
RESOLUTION 202 1-35
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, DECOMMISSIONING AND REMOVING FROM
PUBLIC DISPLAY CERTAIN TOWN-OWNED ARTWORK
RECITALS:
WHEREAS, the Town of Fountain Hills (the “Town”) owns and maintains a public art collection, with
individual works of art located throughout the Town; and
WHEREAS, the Town has adopted the Town of Fountain Hills Public Art Master Plan, as amended, to
serve as a guide for the acquisition, maintenance, and disposition of works of art by the Town; and
WHEREAS, pursuant to the P ublic Art Master Plan, Section X – Decommissioning Policy (the
“Decommissioning Policy”), a work of art may be considered for removal from public display and/or
decommissioning under certain conditions, including when “the condition of the work requires restoration
in gross excess of its aesthetic value or is in such a deteriorated state that restoration would prove either
unfeasible, impractical or misleading; and
WHEREAS, those certain works of art that are part of the Town’s public art collection titled “Bloomin’
Prickly Pear”; “Music at Fountain Park”; and “E Pluribus Unum” (collectively, the “Artwork”) are located
in the Town’s Community Center; and
WHEREAS, as required by the Decommissioning Policy, the Fountain Hills Public Art Committee of the
Fountain Hills Cultural and Civic Association at its October 4, 2021 meeting approved the
decommissioning and removal of the Artwork due to fading and damage that w ould not warrant the cost of
repair; and
WHEREAS, the terms of the Decommissioning Policy have been satisfied in all material respects or to the
extent reasonably possible as pertaining to the decommissioning of the Artwork; and
WHEREAS, in consideration of the above recitals, the Mayor and Town Council of the Town of Fountain
Hills (the “Town Council”) has determined it is necessary and in the best interest of the Town to
decommission the Artwork and to remove the Artwork from public display.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, as follows:
SECTION 1. The recitals above are incorporated as if fully set forth herein.
SECTION 2. The Artwork is decommissioned and shall be removed from public display, whether through
sale, exchange, or any other means of disposal as may be reasonably necessary, as determined by Town
staff.
SECTION 3. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby
authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, November
16, 2021.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Ginny Dickey, Mayor Elizabeth A. Burke , Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Grady E. Miller, Town Manager Aaron D. Arnson, Pierce Coleman PLLC
Town Attorney
20
X. DECOMMISSIONING POLICY
Conditions: A work of art may be considered for removal from public display and/or
decommissioning if one or more of the following conditions apply:
1. The work does not fit within the PAC mission, goals, or guidelines for the Art Collection.
2. The work presents a threat to public safety.
3. Condition or security of the work cannot be guaranteed, or the Town cannot properly care
for or store the work.
4. The work requires excessive or unreasonable maintenance or has faults in design or
workmanship.
5. The condition of the work requires restoration in gross excess of its aesthetic value or is in
such a deteriorated state that restoration would prove either unfeasible, impractical or
misleading.
6. No suitable site for the work is available, or significant changes in the use or character of
design of the site affect the integrity of the work.
7. The work is fraudulent or not authentic.
8. The work is rarely or never displayed.
9. Significant adverse public reaction over an extended period of time (5 years or more).
10. The work is judged to have little or no aesthetic and/or historical or cultural value.
11. The work is duplicative in a large holding of work of that type or of that artist.
Process: The following process shall be followed for works being considered for
decommissioning:
Absence of Restrictions: Before disposing of any objects from the collections, reasonable efforts
shall be made to ascertain that the PAC and the Town are legally free to do so. Where restrictions
are found to apply, the PAC shall comply with the following:
Mandatory restrictions shall be observed unless deviation from their terms is authorized by a court
of competent jurisdiction.
Objects to which restrictions apply should not be disposed of until reasonable efforts are made to
comply with the restrictive conditions. If practical and reasonable to do so, considering the value of
the objects in question, the PAC should notify the donor if it intends to dispose of such objects
within ten years of receiving the gift. If there is any question as to the intent or force of restrictions,
the PAC shall, through Town staff, seek the advice of the Town Attorney.
21
Independent Appraisal or other documentation of the value of the artwork: Prior to
disposition of any object having a value of $10,000 or more, PAC and/or Town staff should obtain
an independent professional appraisal, or an estimate of the value of the work based on recent
documentation of gallery and auction sales.
Related Professional Opinions: In cases of where decommissioning or removal is recommended
due to deterioration, threat to public safety, ongoing controversy, or lack of artistic quality, it is
recommended that the PAC seek the opinions of independent professionals qualified to comment
on the concern prompting review (conservators, engineers, architects, critics, safety experts etc.).
PAC Hearing and Resolution: The recommendation to decommission a work of art will be
considered at a regular or special meeting of the PAC. The Town must approve by Resolution the
PAC’s recommendation that a work of art under its jurisdiction should be decommissioned through
sale or exchange.
Provisions for Emergency Removal: In the event that the structural integrity or condition of an
artwork is such that, in the opinion of the PAC or Town staff, the artwork presents an eminent
threat to public safety, the Town may authorize its immediate removal, without the artist's consent,
by declaring a State of Emergency, and have the work placed in temporary storage. The artist and
the PAC must be notified of this action within 30 days. The PAC will then consider options for
disposition: repair, reinstallation, maintenance provisions or decommissioning. In the event that the
artwork cannot be removed without being altered, modified, or destroyed, and if the Artist’s
Agreement with the Town has not waived his/her rights under the 1990 Visual Artists’ Protection
Act, the Town must attempt to gain such written permission before proceeding. In the event that
this cannot be accomplished before action is required in order to protect the public health and
safety, the Town shall proceed according to the advice of the Town Attorney.
Adequate Records: An adequate record of the conditions and circumstances under which objects
are decommissioned and disposed of should be made and retained as part of the Collections
Management records.
Town of Fountain Hills Public Art Master Plan
2
I. INTRODUCTION & BACKGROUND
History of Public Art
Public art has long played an important role in expressing the identity of a culture. In many
cases, public art is the legacy by which we remember an ancient culture. Public art has been a
part of the American landscape since Colonial times, but it wasn’t until the middle of the 20th
century that comprehensive public art programs emerged.
After the establishment of the National Endowment for the Arts in 1965, the field of public art
underwent significant change. As more and more cities adopted “percent for art” ordinances,
public art has evolved from a process that placed large-scale versions of studio sculpture in
unrelated spaces into the broader understanding that art may take various forms, including being
routinely integrated into the surroundings it is placed in, often becoming part of building or
structure itself.
In cities like Seattle, Philadelphia, Los Angeles, Miami and others, artists working in the public
realm became more involved in the design of public spaces by working closely with architects,
landscape architects and engineers. The result was the use of art to shape a new public space, not
just to enhance an existing one. In Seattle, Phoenix and Scottsdale, the art went one step further;
it has become an integral part of civic infrastructure including, bridges, waste treatment plants,
freeways, parks, sports complexes and other projects.
Funding for contemporary public art has come in large part from three sources: (i) “percent for
art” ordinances, (ii) funding through local, state and federal grant programs and (iii) corporate
sponsorships and private donations from individuals and foundations.
History of Art in Fountain Hills
In October 1994, the Town of Fountain Hills (the “Town”) and the Fountain Hills Civic
Association (the “Civic Association”) commissioned a community cultural assessment,
sponsored by the Arizona Commission on the Arts (the “1994 Cultural Assessment”). Nearly 50
citizens participated in either the open forum or in the surveys collected. The community’s
strengths and challenges were discussed, and four key issues were identified:
The need for a cultural center facility with performance, gallery and meeting
space.
A need for an arts council to provide leadership for cultural growth.
A need to involve the arts in community design and planning.
A need for youth services including after school and summer programs.
Through the 1994 Cultural Assessment, a clear need for a Public Art Committee was recognized.
The Fountain Hills Arts Council (the “Arts Council”) bylaws were formally adopted in March
1995.
3
On September 4, 1997, the Town Council adopted Resolution No. 1997-44 designating the Arts
Council, then a committee of the Civic Association, as the official representative of the Town in
all matters dealing with the promotion of public arts within the Town of Fountain Hills. Shortly
thereafter, the Arts Council established the Fountain Hills Public Art Committee (the “PAC”) to
administer its public art program. On November 20, 2003, the Town Council adopted Resolution
No. 2003-70 confirming this appointment and adopting an official Master Plan for the
acquisition of public art.
Through various corporate reorganizations, the Arts Council became the Fountain Hills Cultural
Council and thereafter merged with the Civic Association to become the Fountain Hills Cultural
and Civic Association, a 501(c)(3) non-profit corporation (“FHCCA”). The PAC continues as a
committee of FHCCA, and since 2000, the PAC has adopted an aggressive policy of public art
acquisition.
On December 7, 2006, the Town Council adopted Ordinance 06-23, creating the Town’s
Commercial/Multi-Family Architectural Design Review Guidelines (the “Design Guidelines”).
Section 19.05(I) of the Design Guidelines established the minimum standards for including a
public art element in all commercial, industrial and multi-family residential projects (the “Public
Art Requirement”) providing for either (i) the installation of exterior public art valued at equal to
or greater than 1% of the cost of building construction and associated site work and signage of a
new or redeveloped commercial, industrial, or large multi-family residential construction project
or (ii) a donation to the Fountain Hills Public Art Fund in an amount equal to or greater than 1%
of the cost of building construction and associated site work and signage. The funds raised
through this process will be referred to hereafter as the “Percent for Public Art” funds. Public Art
Fund Development Guidelines were adopted by the Town Council in January, 2007 to set forth
the process for implementing the Public Art Requirement. The Fountain Hills Public Art Fund is
the fund held by the Town for the purchase or installation of public art (the “Fountain Hills
Public Art Fund”).
4
II. PUBLIC ART PROGRAM GENERAL STANDARDS
Mission: The mission of the Public Art Collection is to promote a rich, diverse and stimulating
cultural environment that enriches the lives of the town’s residents and visitors, and further
establishes the town’s identity. The Fountain Hills Cultural and Civic Association (FHCCA) is
committed to acquiring works of art for the Art Collection of the highest aesthetic standards
reflective of diverse social, aesthetic and cultural perspectives. The Town Council intends that all
public art in the corporate limits of the Town shall be selected and approved according to the
Public Art Acquisition process.
This document establishes policies and procedures for the acquisition, placement, care and
management of works of art for the public art collection of the Town of Fountain Hills, whether
acquired through a Gift or Bequest. It shall be the policy of the PAC to accept unique, one of a kind
works of art with the noted exception of prints, photographs or a desirable high-quality limited
edition work of art by a renowned artist.
GOALS OF THE COLLECTION:
1. Artwork acquired and maintained within the collection should reflect the highest aesthetic
standards. Objects accepted into the collection must be of known authorship and be
accepted based on their value as works of art.
2. The Town’s collection should be diverse in its representation of artists and artistic styles.
3. Artwork acquired and accepted into the collection should be appropriate in scale, media and
context with its intended location, and be relevant within the cultural, historical,
social/political and environmental context of the area surrounding the Town of Fountain
Hills.
DEFINITIONS:
Fountain Hills Cultural and Civic Association (“FHCCA”): The FHCCA is the 501(c)(3)
Charitable organization representing the PAC.
Public Art Committee: The Public Art Committee (“PAC”) is a member organization of the
Fountain Hills Cultural and Civic Association (“FHCCA”). The PAC is made up members of the
FHCCA, Town staff member(s) and when deemed necessary, arts professionals. The committee
generally meets monthly and is responsible for reviewing potential art donations and making
recommendations to the Town.
Acquisition: The formal process used to accept an artwork into the Civic Art Collection and the
recording of an item as a Collection Object.
Aesthetics: Artistic merit of the work of art, including consideration of its artistic, social, cultural
and/or historical significance.
Appraisal: A professional, certified evaluation of an artwork, i.e. its authenticity, condition and
provenance, to determine its monetary value.
5
Artist: Individual artist or team of individual artists whose body of work and professional activities
demonstrate serious ongoing commitment to the fine arts, through a record of exhibitions, public
commissions, sale of works and educational attainment.
Artwork or Work of Art: For the purpose of these guidelines, Artwork, or Work of Art, is
defined as a work in any media that is the result of the unique creative expression of an artist.
Conservation: See “Preservation.” For the purposes of this document, the terms “conservation”
and “preservation” are used interchangeably.
Decommission: The formal process of removing acquired objects permanently from the Art
Collection.
Donation: An artwork or a series of artworks gifted to the Town for long-term public display with
intent to transfer title of ownership to the Town.
Maintenance: Maintenance shall mean a minimally invasive, routine and regularly scheduled
activity that may involve the removal of superficial dirt or debris build-up on the surface of the
artwork or the cleaning and repair of non-art support material such as a pedestal or plaque. For the
purposes of this document, this definition shall apply generally whenever “maintenance” of
artwork is referenced.
Maintenance Endowment Calculation: A Maintenance Endowment Calculation adequate to
ensure the continued care of gifts of art shall be maintained by the Town of Fountain Hills. An
endowment is required for all outdoor artworks and may be required for indoor artworks in order to
maintain the gift in a condition satisfactory to the donor, the PAC and the Town. Scale, material,
location, value of the work and potential for vandalism will be considered in determining the
maintenance endowment.
Monuments: Structures, sculpture or other objects erected to commemorate a person or an event.
Percent for Public Art: Developers of any new professional office, lodging projects, retail,
service, commercial, wholesale, transportation, industrial developments, re-developments or
expansion projects and multi-family projects with five or more dwelling units within the Town of
Fountain Hills are required to provide public artwork.
Plaque: For the purpose of this document “plaque” refers to identification signage affixed on or
near an artwork that identifies the title, artist, media, date, attribution and other pertinent
information. Organizations strive for uniformity in plaque design and text content.
Preservation: Preservation shall mean the protection of cultural property through activities that
minimize chemical and physical deterioration and damage, and that prevent loss of informational
content. The primary goal of preservation is to prolong the existence of cultural property, and
should be undertaken or overseen by a professional conservator. For the purposes of this
document, the terms preservation and conservation are used interchangeably, and the definition
above shall apply generally whenever “conservation” or “preservation” is used.
Proposal: The Artist’s design proposal for a project that typically includes drawings and/or models
illustrating the project and how it will fit into the site, project description and budget, typically
6
requested from a limited number of finalists as a means of providing the basis for final artist
selection.
Provenance: The history of an artwork and its creation and ownership, which is used to help
establish its authenticity. Documents used for provenance include sales receipts, auction and
exhibition catalogs, gallery labels, letters from the artist, and statements from people who knew the
artist or the circumstances of the creation of the artwork.
Public Art Collection: The Public Art Collection is comprised of artworks that have been acquired
by the PAC on behalf of the Town.
Public Art Fund: The Public Art Fund is made up of the funds set aside by the Town of Fountain
Hills to acquire and maintain the Public Art Collection. This fund is comprised of monies
collected through the Percent for Public Art, through donation from private or corporate donors, the
Maintenance Endowment Calculation and monies gained through grants. The Public Art Fund
amount shall be noted within the annual budget of the Town of Fountain Hills.
7
III. PUBLIC ART ACQUISITION PROCESS
Public art is acquired through four primary methods:
1. As the result of a gift or loan whereby the Town becomes a beneficiary
2. As a result of the Percent for Public Art Contribution
3. By the active procurement of a specific work of art or the selection of an artist for a
specific project
4. Temporary or Traveling Art Exhibitions
8
IV. ARTWORK DONATION PROCEDURES
When an artwork is offered to the Town for donation, such donations are reviewed by entities that
may include but are not limited to the PAC, FHCCA and Town staff. No work of art shall be
acquired into the Collection, unless such work of art shall first have been submitted to and
approved by the above mentioned entities. Artwork must meet the Artwork Review Criteria.
Neither the PAC, the FHCCA nor the Town will establish the artwork value, nor furnish
documentation regarding the artwork value to the Donor.
Step 1: The prospective donor submits a completed Artwork Donation Application with required
attachments to the PAC. Developers, required to meet the Percent for Public Art obligation, will
submit an application with the Planning and Zoning Department. The proposal shall include
information about the artist, written description of the artwork (size, materials, date created, etc.),
condition report, appraisal and photograph or drawing of the artwork, and proposed site, if any.
Artwork to be donated will only be accepted with restrictions in very limited circumstances. For all
artwork located on public property, the Town of Fountain Hills receives full title to the artwork and
has the ability to sell or transfer the title to individuals or entities.
Step 2: The PAC reviews the application and gift documents and decides if the gift meets the Art
Acquisition Criteria. If necessary, the prospective donor may be invited to give a presentation
about the donation to Town staff, the PAC and others to clarify the artwork provenance and
appraisal, and the intent of the gift. The PAC may seek the advice of a professional art conservator
or other qualified arts professional to review the proposal and provide recommendations regarding
authenticity and the long-term care of the artwork.
Step 3: The PAC will make the recommendation to accept, accept with modifications or decline the
gift. If the gift is accepted with modifications, the donor has the option to resubmit at a later date.
If the gift is accepted by the PAC, it is then referred to the FHCCA Board and Town Council for
review and acceptance. The donor may again be called upon to discuss the donation with the Town
Council. The PAC may not recommend gifts that require extraordinary maintenance expense or are
deemed unsafe.
Step 4: Once the artwork donation has been accepted, the Town and the Donor enter into an
agreement regarding the terms of acceptance based upon the requirements of the Art Acquisition
Criteria.
In general, donations shall be accepted without restrictions or conditions. All accepted donations
will be subject to the Town’s Art Acquisitions Criteria and Decommissioning Policy. All artworks
acquired by the Town shall be covered under the Town’s public art insurance policy for the stated
value.
9
V. ART ACQUISITION CRITERIA
Public art is defined as the work of a visual artist located in a publicly accessible space. Public art
includes, but is not limited to, paintings, murals, statues, stained glass, fiber art, relief or other
sculpture, fountains, arches and other structures intended for ornament or commemoration,
carvings, frescoes, mosaics, mobiles, photographs, drawings, collages, prints, landscape art, and
crafts, both decorative and utilitarian. Public art may be temporary or permanent in nature.
Public art projects may also include visual or landscape artists serving on design and development
teams to identify opportunities and approaches for incorporating artwork aesthetic concepts into
Town building and visible public improvement projects. Regardless of the method of acquisition,
certain fundamental criteria will be universally applied to any work of art under consideration.
Aesthetics
1. Artistic merit of the work of art, including its artistic, social, and/or historical significance,
as evidenced by the Artwork Donation Application (which includes a written description and
drawings and/or maquette if the artwork is proposed and not fabricated)
2. Professional artist's qualifications, as evidenced by the Artwork Donation Application (which
includes images of past work, resume, references, and published reviews)
3. Compatibility of the work of art within the context of the proposed site
4. Warranty of originality (in the case of a pre-existing artwork; only original works or limited
editions and high aesthetic value shall be considered)
5. Provenance
Site
6. Appropriateness to the proposed site with respect to its immediate and general physical
environment (district, neighborhood) and audience
7. Proposed works of art must be compatible in scale, material, form, and content with their
surroundings. Attention shall be given to the social context of the work and the manner in
which it may interact or contribute to the use of the site.
8. Ecological and/or environmental impact
9. Accessibility to the public, including persons with disabilities
10. Text components (e.g., signage or plaque)
Site Criteria: Prior to selecting a site for an artwork, whether purchased or commissioned, the
PAC and Town staff shall take into consideration the following factors:
11. Visibility and prominence of the artwork site
12. Public accessibility of the artwork and ADA Compliance
10
13. Public Safety
14. Interior and exterior traffic patterns
15. Relationship of proposed artwork to existing or future architectural features, natural features,
other artworks, and urban design
16. Function of the facility
17. Facility users and surrounding community and interaction of users and community members
with proposed artwork
18. Future development plans for area
19. Overall program goal or concept
20. Landscape design
21. Relationship of proposed artwork to existing art works within the site vicinity
22. Environmental impact
23. Social context of artwork (intended use of the work, if any)
24. The PAC and Town of Fountain Hills shall approve the artwork location before acquisition
Installation
25. Site requirements for installation (Electricity, lighting, water, or other requirements)
26. Method of installation
27. Documents: Utility connections, site modifications, structural reinforcements or other
engineering requirements or site modifications should be described in the gift proposal and
reflected in the construction plans and specifications. The donor/sponsor is responsible for
providing and submitting engineering and architectural plans, as required according to the
Building Code or as requested by the Commission. Such plans must be prepared, signed and
stamped by the appropriate design professional licensed in the state of Arizona.
28. Storage requirements, if needed
29. Safety standards (Town Risk Management review)
Maintenance
30. Structural integrity (demonstrated through documentation)
31. Review of Fabrication and Installation Method: Works of art that are accepted from
maquettes or drawings will be subject to PAC review throughout fabrication and installation.
11
Specific plans for site design, installation, maintenance and protection will be submitted for
approvals. The completed artwork may not deviate in any way from the proposal approved
by the PAC.
32. Durability of materials and method of fabrication
33. Susceptibility of the artwork to accidental damage, theft, and/or vandalism and security needs
34. Ability or capacity to provide necessary routine maintenance
Maintenance Endowment Calculation Contribution
35. All costs associated with fabrication and installation, including site preparation, long-term
preservation, illumination, plaque, and unveiling/dedication event, if any
36. For all works of art located on Town property or donated to the Town, the Donor will
contribute 5% of the total value of the artwork or $5000 (whichever is less) to the Town’s
Public Art Fund. Obtaining an appraisal prior to execution of the agreement is the
responsibility of the Donor, unless otherwise agreed upon by Town and Donor.
37. Statement of value of artwork by a certified appraiser for insurance purposes
38. No artwork will be placed or acquired before all financial obligations are met by the Donor
Liability
39. Susceptibility of the artwork both to normal wear and to vandalism
40. Potential risk to the public
41. Public access, in general, as well as compliance with ADA requirements
42. Special insurance requirements (some extremely valuable artworks need additional
insurance)
Timeliness
43. Allowance of sufficient time for normal review process
44. Timely and appropriate response to the PAC and Town staff requests for additional materials
or information
Memorial Gifts: Memorial gifts will be judged to the following additional criteria:
45. The person so honored shall have been deceased for a minimum of two years. Events shall
have taken place at least two years prior to consideration of a proposed memorial gift.
46. Represents broad community values
12
47. The memorial has timeless qualities that will be meaningful to future generations
48. The location under consideration is an appropriate setting for the memorial; in general, there
should be some specific geographic justification for the memorial being located in a specific
site
Acceptable Art: Acceptable forms of art (“Acceptable Art”) shall include but are not necessarily
limited to, the following:
49. All forms of limited edition or one-of-a-kind original creations of visual art created by an
artist
50. Project features and enhancements which are unique and produced by a professional artis t
such as benches and fountains
51. Murals or mosaics covering walls
52. Professional artist sculptures which can be freestanding, wall-supported or suspended and
made of durable materials suitable to the site and the climate
53. Other suitable artworks as presented in a catalogue and previously approved by the PAC
Not Acceptable Art: The following, non-exclusive list describes those items not considered
Acceptable Art:
54. Business logos or art that incorporates a logo for the primary purpose of advertising a
business
55. Directional elements such as supergraphics, signage or color coding except where these
elements are integral parts of the original works of art
56. Mass-produced art objects, such as fountains, statuary objects, or playground equipment
57. Decorative ornamental or functional elements created by the project
58. Landscape architecture or gardening except for elements designed by the artist as an integral
part of the work of art
59. Electrical, water or mechanical service for activation of the works of art
60. Art exhibitions and educational activities
61. Security and publicity concerning works of art
62. Standard landscape or hardscape elements that would normally be associated with the project
13
VI. PERCENT FOR PUBLIC ART REQUIREMENT FOR DEVELOPMENT
A. Basic Requirements
1. Developers of any new professional office, lodging projects, retail, service,
commercial, wholesale, transportation, industrial developments, re-developments or expansion
projects and multi-family projects with five or more dwelling units within the Town of Fountain
Hills are required to provide public artwork. The Percent for Public Art contribution shall equal:
1% of Total Construction Cost for projects of $1 million or less;
¾% of Total Construction Cost for projects with a value between $1 million and $10
million; or
½% of Total Construction Cost for projects with a Total Construction Cost over $10
million.
As an alternative to providing public art, developers may make a donation to the Fountain Hills
Public Art Fund in an amount equal to the above calculation. If requested, the PAC and Town
staff will work with the developer to identify an appropriate use of the contribution that will
benefit both the developer and the Town.
2. Developers are not required to make a contribution to the Maintenance
Endowment Calculation for any artwork located on private property. If the artwork is to be
located on public property, the Maintenance Endowment Calculation will apply.
3. The public art requirement must be met prior to the issuance of a Certificate of
Occupancy. Applicants choosing to purchase a piece of art are required to submit a Donation
Application and comply with the Art Acquisition Criteria. The art contribution should be
approved by Town staff and PAC as being in compliance with the ordinance.
4. Artwork selected by the developer to go on site must be integrated with the
project, be located on an exterior of the structure or the building site, be visible to the public at
all times and be accessible for at least 40 hours per week. The location of the artwork should be
in an outdoor location to allow unrestricted visibility by the public 24 hours per day.
5. A plaque will be placed that will identify the art and the artist.
B. Total Construction Cost Calculation
Total Construction Cost, as used in the Calculation for Percent for Public Art, includes hard costs
of construction, site work and signage costs.
C. Eligible Costs for Calculating the Contribution
The following costs may be included in the calculation of the developer’s required art
investment.
14
1. Professional artist’s budget, including artist fees, materials, assistants’ labor costs,
insurance, permits, taxes, business, legal expenses and operating costs.
2. Fabrication and installation of the artwork, including base and/or foundation if necessary.
3. Site preparation for artwork.
4. Structures enabling the artist to display the artwork.
5. Documentation of the artwork.
6. Acknowledgment plaque identifying the artist, artwork and development, per Town
format.
D. Responsibility After Installation
1. Art located on the developer’s property will remain the developer’s property, subject to a
covenant on the part of the developer that the piece will remain in public view. It will be
the developer’s and subsequent property owner’s responsibility to insure and maintain the
piece of art. The insured value must equal the appraised value. Developer will be cognizant
of the federal Visual Artists Rights Act, which prevents the distortion or modification of
an artwork without the artist’s permission.
2. If any changes are considered by the property owner for the previously approved artwork
located on site, an application for consideration of change must be submitted to the PAC.
All submitted changes are subject to full review by the PAC and Town Council.
3. Art located on Town-owned property shall become the property of the Town. The artwork
location will be reviewed by the Town’s Facilities Division and other staff to ensure
compliance with American with Disabilities Act (ADA), and to minimize conflicts with
public utilities in Town rights-of-way. The Town will insure and maintain all pieces on
Town-owned property.
15
VII. ACQUIRING ART THROUGH ARTISTS SELECTION OR PURCHASE
The PAC will identify potential art projects or art purchase opportunities. Any recommendation to
the PAC regarding the acquisition of a piece of art shall identify the potential source of funds for
such acquisition. Such source of funds may include the funds deposited in the Fountain Hills
Public Art Fund.
1. The PAC will decide which projects or purchases will be recommended to the Town
Council as required in the Artwork Donation Process. The Town Council will have the
final decision, acting in its sole discretion, to determine (i) which projects or purchases will
be undertaken and (ii) if the recommendation includes the use of funds from the Fountain
Hills Public Art Fund, whether the use of such funds is appropriate.
2. If the Town Council approves moving forward with a project or purchase, the PAC will
assume the role of an independent selection panel. The PAC will choose the most
appropriate method for a given project or purchase from among the following options:
a. Open Competition. This method offers opportunities in which any professional artist
is eligible to enter. A Project Profile, an announcement with information about the
project, will be circulated, requesting artist proposals for review by the selection
panel.
b. Invitational or Limited Competition. This two-staged competition calls for artists to
submit qualifications (documentation of past work) for the selection panel’s
consideration, instead of a proposal. The panel selects three to five artists to visit the
site and develop detailed proposals or to participate in an interview process. The
artists may be paid for their proposals and site visits based on a percentage of the
project budget. The panel then reconvenes to select an artist and/or proposal.
c. Direct Selection and Nominations. In this method, the panel selects one artist on the
basis of documentation of past work. The pool of work reviewed can be solicited
through a call-to-artists or by using an existing artist slide bank. The artist is selected
by the PAC and a recommendation is presented to the FHCCA and Town Council
for approval. PAC will then negotiate a contract for the development of a proposal.
d. Direct Purchase. A method that results in the purchase of already completed
artworks, based upon the PAC’s recommendations.
3. Upon Town Council approval of any public art project or purchase, the PAC will contact
the selected artist or artist’s agent. The PAC will prepare an invoice or contract between
the FHCCA and the artist covering the entire scope of work to be performed, and specifying
all fees to be paid, including, those for any travel expenses, shipping and/or installation
charges. If the Fountain Hills Public Art Fund is to be used for all or a portion of the
acquisition cost, the aforementioned invoice or contract shall be entered into between the
Town and the artist, and the Town Attorney shall prepare the invoice or contract with input
from the PAC as to the appropriate scope of work to be performed, fees to be paid, travel
expenses to be reimbursed and shipping and/or installation charges to be paid. If both the
Fountain Hills Public Art Fund and FHCCA funds are to be used for acquisition and/or
installation, the FHCCA shall contribute its portion to the Town prior to the date the Town
is required to pay the final invoice.
16
4. Working in cooperation with appropriate Town staff and/or commissions, the PAC will
assume responsibility for project management: overseeing the purchase, shipment and
installation of selected art work, or the design, fabrication and installation of a
commissioned project.
5. According to the payment schedule stipulated in the contract, the PAC will be responsible
for paying all project fees in a timely fashion, except for those installation fees agreed to be
covered by the Town through a separate agreement.
6. Upon completion of the purchase or project, the PAC will arrange a public dedication and
formal transfer of ownership to the Town.
17
VIII. TEMPORARY OR TRAVELING EXHIBITIONS
From time to time, the PAC may make arrangements for temporary works of art to be displayed in
select locations. These Temporary or Travelling Exhibitions may be installed to celebrate a current
cultural, social or civic event, or may represent art that is available on a temporary basis that can
bring a new, thoughtful perspective to the Fountain Hills Public Art Collection.
Considerations for selection of a Temporary or Travelling Exhibition might include:
1. Costs: Costs associated with these Temporary Exhibits may be either borne by private
donors or the Public Art Fund. In the event there might be costs to be borne by the Town
of Fountain Hills from the Public Art Fund, the PAC shall make a request for funds in
advance of any commitments to display the work. These costs might include but may not
be limited to honorariums paid to artists, installation costs, maintenance, lighting, plaque
costs or insurance costs.
2. Selection: The Selection Criteria shall be similar to those outlined in Article VII Acquiring
Art Through Artists Selection or Purchase.
3. Additional Criteria in a Call to Artists for the purpose of the temporary status might include:
a. Length of time to be displayed.
b. Whether or not the artwork may be sold during the exhibition or as a function of the
exhibition. In such event, the work will be required to remain on site during the full
length of the exhibition.
c. Manner in which the artist may advertise or promote themselves or the work.
d. Requirement for insurance to be carried by the artist.
e. Requirement of the Artist to be present for installation, de-installation and
Dedication of the Exhibition.
f. An appropriate disclaimer created by legal counsel of the Town of Fountain Hills
pertaining to the Artists release of liability for damage or destruction while on
display.
18
IX. GIFT AND SALE OF ARTWORKS
The Gift and Sale of Art Program is established to allow the public to donate works of art to the
Town of Fountain Hills that may or will be sold for the benefit of Public Art Fund. When the PAC
determines that it would be advantageous to the Town, a gifted work of art may be acquired and
sold.
1. Sale at Public Auction: A work of art under the jurisdiction of the Town may be sold at
public auction to the highest and best bidder and the PAC may contract with a licensed
auctioneer for the purpose of conducting the sale or sales. The contract shall specif y the
compensation to be paid for the auctioneer's services and set forth the terms and conditions
under which the sale or sales are to be conducted. Each such contract shall be approved by
the Purchaser.
2. Private Sale: If the work is offered at public auction and no bids are received, or if the bids
are rejected, the PAC may determine that the work may be sold on terms more advantageous
to the Town.
3. Proceeds from Sale of Artwork: All proceeds from any sale or auction, shall be credited to
the Public Art Fund, and the monies contributed to the fund from the sale of a work of art
under the jurisdiction of the Town shall be expended exclusively for the purpose of acquiring
or maintaining works of art in the Collection.
4. Objects may not be given or sold privately to Town employees, officers, members of the
Commission, or to their representatives or family.
Other Considerations: If, for any reason, the Town of Fountain Hills finds it necessary to pursue
plans that would modify, remove, destroy or in any way alter an artwork, and the PAC approves
such action, then the PAC shall make a reasonable effort to notify the artist by registered mail of
the Town's intent and outline possible options, which include, but are not limited to the following:
1. Transfer of Title to the Artist: The artist will be given the first option of having the title to the
artwork transferred to him/her. If the artist elects to pursue title transfer, he/she is responsible
for the object's removal and all associated costs.
2. Disclaim Authorship: In the case where the Town contemplates action which would
compromise the integrity of the artwork, the artist shall be given the opportunity to disclaim
authorship and request that his/her name not be used in connection with the given work.
Alteration, Modification or Destruction: If alteration, modification, or destruction of an artwork
protected under the Visual Artists Rights Act of 1990 is contemplated, the PAC must secure a
written waiver of the artist's rights under this section. In the case of an emergency removal that
may result in destruction or irreparable damage, the Town will act in accordance with the advice of
the Town Attorney.
Relocation of Public Display: If the Town decides that an artwork must be removed from its
original site, and if its condition is such that it could be re-installed, the PAC and Town will
attempt to identify another appropriate site. If the artwork was designed for a specific site, the PAC
and Town will attempt to relocate the work to a new site consistent with the artist's intention. If
19
possible, the artist's assistance will be requested to help make this determination.
The Town and PAC reserve the right to relocate or remove any artwork at any time. The final
decision regarding the placement of artwork will rest with the Town and PAC.
20
X. DECOMMISSIONING POLICY
Conditions: A work of art may be considered for removal from public display and/or
decommissioning if one or more of the following conditions apply:
1. The work does not fit within the PAC mission, goals, or guidelines for the Art Collection.
2. The work presents a threat to public safety.
3. Condition or security of the work cannot be guaranteed, or the Town cannot properly care
for or store the work.
4. The work requires excessive or unreasonable maintenance or has faults in design or
workmanship.
5. The condition of the work requires restoration in gross excess of its aesthetic value or is in
such a deteriorated state that restoration would prove either unfeasible, impractical or
misleading.
6. No suitable site for the work is available, or significant changes in the use or character of
design of the site affect the integrity of the work.
7. The work is fraudulent or not authentic.
8. The work is rarely or never displayed.
9. Significant adverse public reaction over an extended period of time (5 years or more).
10. The work is judged to have little or no aesthetic and/or historical or cultural value.
11. The work is duplicative in a large holding of work of that type or of that artist.
Process: The following process shall be followed for works being considered for
decommissioning:
Absence of Restrictions: Before disposing of any objects from the collections, reasonable efforts
shall be made to ascertain that the PAC and the Town are legally free to do so. Where restrictions
are found to apply, the PAC shall comply with the following:
Mandatory restrictions shall be observed unless deviation from their terms is authorized by a court
of competent jurisdiction.
Objects to which restrictions apply should not be disposed of until reasonable efforts are made to
comply with the restrictive conditions. If practical and reasonable to do so, considering the value of
the objects in question, the PAC should notify the donor if it intends to dispose of such objects
within ten years of receiving the gift. If there is any question as to the intent or force of restrictions,
the PAC shall, through Town staff, seek the advice of the Town Attorney.
21
Independent Appraisal or other documentation of the value of the artwork: Prior to
disposition of any object having a value of $10,000 or more, PAC and/or Town staff should obtain
an independent professional appraisal, or an estimate of the value of the work based on recent
documentation of gallery and auction sales.
Related Professional Opinions: In cases of where decommissioning or removal is recommended
due to deterioration, threat to public safety, ongoing controversy, or lack of artistic quality, it is
recommended that the PAC seek the opinions of independent professionals qualified to comment
on the concern prompting review (conservators, engineers, architects, critics, safety experts etc.).
PAC Hearing and Resolution: The recommendation to decommission a work of art will be
considered at a regular or special meeting of the PAC. The Town must approve by Resolution the
PAC’s recommendation that a work of art under its jurisdiction should be decommissioned through
sale or exchange.
Provisions for Emergency Removal: In the event that the structural integrity or condition of an
artwork is such that, in the opinion of the PAC or Town staff, the artwork presents an eminent
threat to public safety, the Town may authorize its immediate removal, without the artist's consent,
by declaring a State of Emergency, and have the work placed in temporary storage. The artist and
the PAC must be notified of this action within 30 days. The PAC will then consider options for
disposition: repair, reinstallation, maintenance provisions or decommissioning. In the event that the
artwork cannot be removed without being altered, modified, or destroyed, and if the Artist’s
Agreement with the Town has not waived his/her rights under the 1990 Visual Artists’ Protection
Act, the Town must attempt to gain such written permission before proceeding. In the event that
this cannot be accomplished before action is required in order to protect the public health and
safety, the Town shall proceed according to the advice of the Town Attorney.
Adequate Records: An adequate record of the conditions and circumstances under which objects
are decommissioned and disposed of should be made and retained as part of the Collections
Management records.
22
ARTWORK DONATION APPLICATION
Use this form to submit proposals for permanent artwork donations or short-term or long-term
loans. Thank you for your interest in donating artwork to the Town of Fountain Hills, Arizona.
Please direct any questions, and complete and submit this application to:
Name:________________________________________________________________________
Address: ___________________________________________ Phone: ____________________
Email Address: _________________________________________________________________
Please attach additional sheets. The Town reserves the right to request additional information
in order to process a donation proposal.
DONOR
Name(s)
Organization (if applicable):
(Please check one: ___ Individual(s) ___ Corporation ___ Not-for-Profit ___Other (specify: _______________________________)
Address
City State Zip Code Country
Phone Fax Email
(Please check one):
Donation of artwork to be commissioned
______ Donation of existing artwork
Donation for Development Percent for Public Art (Please go to Percent for Development Option)
Conflict of Interest: Disclose whether the donor has any active contracts with the Town or is involved
in any stage of negotiations for a Town contract.
ARTIST
Name Alias (If applicable)
Nationality Birth Date Death Date (If applicable)
Address
City State Zip Code Country
Phone Fax Email
Website
23
Artist Representation/Gallery Name (If applicable)
Artist Representation/Gallery Address
City State Zip Code Country
Phone Fax Email
Website
For donations of commissioned artwork, please explain the method used in the selection of the artist.
ARTWORK
Title
Artwork type (e.g., painting, print, drawing, sculpture) Medium: include all materials
Description of Artwork
Creation Date Dimensions and Weight
Anticipated Life Expectancy of the Artwork
Finishes applied to surface
Construction technique(s)
If this artwork is part of a series or group, what is the total number in the series or group?
If this artwork is part of an edition, what is the edition number of this piece, and the total edition size?
Describe frame, if any.
Describe base or pedestal, if any.
24
Describe any accompanying accessories
Current location of artwork
Proposed site for placement (if applicable)
For memorials, describe the person or event to be commemorated, and explain why this person or
event deserves special recognition.
ARTWORK HISTORY
Provenance/Past Owners: List all past owners and period of ownership for each. A separate page can
be submitted.
Exhibition History: List the exhibition history including exhibition titles, venues and dates for each.
Publications and References: List all publications about and references to the artwork.
COPYRIGHT OWNERSHIP
Name of current copyright owner Title
Address
City State Zip Code Country
Phone Fax Email
If the donor is the current copyright owner, does the donor intend to transfer the copyright to the
Town of Fountain Hills should the donation be accepted by the Town?
ARTWORK VALUATION (per appraisal)
25
Fair Market Value $
How was this fair market value determined and by whom?
CONDITION
Describe the current condition of the artwork noting any existing breaks, tears, scratches, abrasions,
paint losses, or other insecurities or defects in the artwork.
If the artwork has been conserved, describe the conservation treatment and name of conservator.
Provide recommendations for routine maintenance of artwork. Indicate whether these recommendations
were provided by a conservator.
(Optional) Provide recommendations for security, installation, transportation and/or
storage.
For donations of commissioned artwork, please outline the installation plan.
OTHER REQUIRED MATERIALS
Please submit the following materials along with this completed form.
Artist’s résumé and bio
Digital, color images of past artwork by artist
For commissioned artwork, color renderings or maquettes of proposed artwork
Maps or images of proposed site for artwork
Itemized list of any costs to be borne by the Town for transportation, installation, exhibition,
operation,
maintenance, conservation, and/or security
For commissioned artwork, an itemized budget for design, fabrication, and installation
For commissioned artwork, a timeline for design, fabrication, and installation
26
Exhibition catalogs, publications and/or references, if available
Formal, written appraisal for any artwork with a fair market value of $10,000 or more
Condition report, if available
Conservator’s report, if applicable
Proof of authenticity, if available
Any other information relevant to the artwork
DEVELOPMENT PERCENT FOR PUBLIC ART
(_____________)
Development
Description
Total Project Cost as Determined by Town Staff
$__________________
Total Calculated Percent Requirement as Determined by Town Staff
1% of Total Project Cost for projects of $1 million or less;
¾% of Total Project Cost for projects with a value between $1 million and $10 million; or
½% of Total Project Cost for projects with a Total Construction Cost over $10 million.
$__________________
(Please check one):
Developer chooses to make donation to Public Art Fund
Amount Received $ ___________________Payment Type________________________
Developer chooses to meet percent requirement with on-site art installation (please fill out Artwork
Donation Application and reference the Town of Fountain Hills Public Art Master Plan.)
Developer chooses to donate an artwork to the Town of Fountain Hills (please fill out Artwork Donation
Application and reference the Town of Fountain Hills Public Art Master Plan.)
27
DONOR’S AUTHORIZATION TO INITIATE A DONATION REVIEW
Authorized signature Title
Print name Date
STAFF ONLY
Received by Date
ITEM 7. E.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Fire Department
Prepared by: Dave Ott, Fire Chief
Staff Contact Information: Dave Ott, Fire Chief
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Approval of Contract C2022-036 with Matlick Enterprises, Inc. dba United Fire
Equipment Company in an amount not to exceed $75,000.00 for replacement of extrication equipment
and lifting airbags.
Staff Summary (Background)
The Fire Department is seeking to purchase new extrication tools and lifting airbags since the current
equipment has reached the end of the service life. The current extrication equipment is gas powered,
uses hydraulic fluid technology, and designed for use on older model vehicles. The new equipment is
battery powered, eliminating the need for gas and hydraulic fluid, and designed for the new vehicle
alloys. The airbags have a new design for improved lifting and safety.
The one-time purchase is being made through Arizona Contract NO. CTR050476. The equipment is
budgeted for in the Facilities Reserve Fund and a supplement to the Fire Department FY 2021-22
Operating Budget. The maintenance of the equipment is a regular budget line item in the Fire
Department budget.
Related Ordinance, Policy or Guiding Principle
NA
Risk Analysis
Since the existing extrication equipment and airbags are at the end of their useful life, it is important for
safety reasons to replace the equipment. The new equipment will minimize risk of injuries to
employees and victims involved in vehicular accidents.
Recommendation(s) by Board(s) or Commission(s)
NA
Staff Recommendation(s)
Staff recommends approval of Contract C2022-036.
SUGGESTED MOTION
MOVE to approve Contract C2022-036 with Matlick Enterprises, Inc. for an amount not to exceed
$75,000.00 for the purchase of extrication equipment and airbags.
Fiscal Impact
Fiscal Impact:$75,000
Budget Reference:
Funding Source:Facilities Reserve Fund
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Attachments
Agreement
Exhibit A
Exhibit B
Form Review
Inbox Reviewed By Date
Fire Chief (Originator)Elizabeth A. Klein 11/08/2021 06:42 AM
Finance Director David Pock 11/08/2021 12:30 PM
Town Attorney Aaron D. Arnson 11/08/2021 12:47 PM
Town Manager Grady E. Miller 11/08/2021 01:55 PM
Form Started By: Dave Ott Started On: 10/20/2021 04:36 PM
Final Approval Date: 11/08/2021
1
Contract No. 2022-036
COOPERATIVE PURCHASING AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MATLICK ENTERPRISES, INC.
D/B/A
UNITED FIRE EQUIPMENT COMPANY
THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into
as of November 2, 2021, between the Town of Fountain Hills, an Arizona municipal corporation
(the “Town”), and Matlick Enterprises, Inc., D/B/A United Fire Equipment Company, a(n) Arizona
corporation (the “Contractor”).
RECITALS
A. After a competitive procurement process, the State of Arizona (“State”) entered
into Contract No. CTR050476, dated July 1, 2020, as amended (collectively, the “State Contract”)
for the Contractor to provide emergency response, firefighting and safety equipment and supplies.
A copy of the State Contract is incorporated herein by reference, to the extent not inconsistent with
this Agreement.
B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make
purchases under the State Contract, at its discretion and with the agreement of the awarded
Contractor, and the State Contract permits its cooperative use by other public entities, including
the Town.
C. The Town and the Contractor desire to enter into this Agreement for the purpose of
(i) acknowledging their cooperative contractual relationship under the State Contract and this
Agreement, (ii) establishing the terms and conditions by which the Contractor may provide
emergency response, firefighting and safety equipment and supplies (the “Materials and
Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this
Agreement related to the Materials and Services.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Town and the Contractor hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set forth
above and shall remain in full force and effect until November, 1, 2022 (the “Initial Term”), unless
terminated as otherwise provided in this Agreement or the State Contract. After the expiration of
the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the
“Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and
2
appropriation of funds for renewal in each subsequent year, (ii) the term of the State Contract has
not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of
this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional
one-year term and (iv) the Town approves the additional one-year term in writing (including any
price adjustments approved as part of the State Contract), as evidenced by the Town Manager’s
signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s
failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of
the then-current term of this Agreement; provided, however, that the Town may, at its discretion
and with the agreement of the Contractor, elect to waive this requirement and renew this
Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the
“Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and
effect.
2. Scope of Work. This is an indefinite quantity and indefinite delivery Agreement for
Materials and Services under the terms and conditions of the State Contract. The Town does not
guarantee that any minimum or maximum number of purchases will be made pursuant to this
Agreement. Purchases will only be made when the Town identifies a need and proper authorization
and documentation have been approved. For purchase(s) determined by the Town to be appropriate
for this Agreement, the Contractor shall provide the Materials and Services to the Town in such
quantities and configurations agreed upon between the parties, in a written invoice, quote, work
order or other form of written agreement describing the work to be completed (each, a “Work
Order”). Each Work Order approved and accepted by the parties pursuant to this Agreement shall
(i) contain a reference to this Agreement and the State Contract and (ii) be attached hereto as
Exhibit A and incorporated herein by reference. Work Orders submitted without referencing this
Agreement and the State Contract will be subject to rejection.
2.1 Inspection; Acceptance. All Materials and Services are subject to final
inspection and acceptance by the Town. Materials failing to conform to the requirements of this
Agreement and/or the State Contract will be held at Contractor’s risk and may be returned to the
Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of a
non-conforming Materials or Services, the Town may elect to do any or all of the following by
written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or
(iii) bring the Materials or Services into compliance and withhold the cost of same from any
payments due to the Contractor.
2.2 Cancellation. The Town reserves the right to cancel Work Orders within a
reasonable period of time after issuance. Should a Work Order be canceled, the Town agrees to
reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor
due to and after issuance of the Work Order. The Town will not reimburse the Contractor for any
costs incurred after receipt of Town notice of cancellation, or for lost profits, shipment of product
prior to issuance of Work Order or for anything not expressly permitted pursuant to this Agreement.
3. Compensation. The Town shall pay Contractor for the Term amount not to exceed
$75,000 for the Materials and Services at the rates that shall be agreed upon by the parties. The
aggregate amount per renewal term shall not exceed $50,000 in any case unless the Agreement is
affirmed and ratified via an executed amendment. All remaining terms and conditions of the
Agreement shall remain in full force and effect.
3
4. Payments. The Town shall pay the Contractor monthly (and the Contractor shall
invoice monthly), based upon acceptance and delivery of Materials and/or Services performed and
completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a
reference to this Agreement and the State Contract and (ii) document and itemize all work
completed to date. The invoice statement shall include a record of materials delivered, time
expended, and work performed in sufficient detail to justify payment. Additionally, invoices
submitted without referencing this Agreement and the State Contract will be subject to rejection
and may be returned.
5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are
complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books,
records, correspondence, accounting procedures and practices, and any other supporting evidence
relating to this Agreement, including the papers of any Contractor and its subcontractors’
employees who perform any work or services pursuant to this Agreement (all of 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 of the Contractor’s and its subcontractors’ compliance with the Arizona
employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to
audit Records as set forth in this Section, Contractor and its subcontractors hereby waive any rights
to keep such Records confidential. For the purpose of evaluating or verifying such actual or
claimed costs or units expended, the Town shall have access to said Records, even if located at its
subcontractors’ facilities, from the effective date of this Agreement for the duration of the work
and until three years after the date of final payment by the Town to Contractor pursuant to this
Agreement. Contractor and its subcontractors shall provide the Town with adequate and
appropriate workspace so that the Town can conduct audits in compliance with the provisions of
this Section. The Town shall give Contractor or its subcontractors reasonable advance notice of
intended audits. Contractor shall require its subcontractors to comply with the provisions of this
Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement.
6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-
4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws
and regulations that relate to their employees and their compliance with the E-verify requirements
under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractors’ failure to comply with
such warranty shall be deemed a material breach of this Agreement and may result in the
termination of this Agreement by the Town.
7. Israel. Contractor certifies that it is not currently engaged in and agrees for the
duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ.
REV. STAT. § 35-393, of Israel.
8. Conflict of Interest. This Agreement may be canceled by the Town pursuant to
ARIZ. REV. STAT. § 38-511.
9. Applicable Law; Venue. This Agreement shall be governed by the laws of the State
of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa
County, Arizona.
4
10. Agreement Subject to Appropriation. The Town is obligated only to pay its
obligations set forth in this Agreement as may lawfully be made from funds appropriated and
budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations
under this Agreement are current expenses subject to the “budget law” and the unfettered
legislative discretion of the Town concerning budgeted purposes and appropriation of funds.
Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this
Agreement shall be deemed terminated at the end of the then-current fiscal year term for which
such funds were appropriated and budgeted for such purpose and the Town shall be relieved of
any subsequent obligation under this Agreement. The parties agree that the Town has no obligation
or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in
this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement
is executed and delivered. The Town shall be the sole judge and authority in determining the
availability of funds for its obligations under this Agreement. The Town shall keep Contractor
informed as to the availability of funds for this Agreement. The obligation of the Town to make
any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town.
Contractor hereby waives any and all rights to bring any claim against the Town from or relating
in any way to the Town’s termination of this Agreement pursuant to this section.
11. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among
the terms of this Agreement, any Town -approved work orders, the State Contract, and invoices,
the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in
conformity with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in
conflict with the terms of this Agreement or the State Contract (collectively, the “Unauthorized
Conditions”), other than the Town’s project-specific requirements, are expressly declared void and
shall be of no force and effect. Acceptance by the Town of any work order or invoice containing
any such Unauthorized Conditions or failure to demand full compliance with the terms and
conditions set forth in this Agreement or under the State Contract shall not alter such terms and
conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements
and obligations in the performance of this Agreement.
12. Rights and Privileges. To the extent provided under the State Contract, the Town
shall be afforded all of the rights and privileges afforded to State and shall be “State” (as defined
in the State Contract) for the purposes of the portions of the State Contract that are incorporated
herein by reference.
13. Indemnification; Insurance. In addition to and in no way limiting the provisions set
forth in Section 12 above, the Town shall be afforded all of the insurance coverage and
indemnifications afforded to State to the extent provided under the State Contract, and such
insurance coverage and indemnifications shall inure and apply with equal effect to the Town under
this Agreement including, but not limited to, the Contractor’s obligation to provide the
indemnification and insurance. In any event, the Contractor shall indemnify, defend and hold
harmless the Town and each council member, officer, employee or agent thereof (the Town and
any such person being herein called an “Indemnified Party”), for, from and against any and all
losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable
attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified
Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such
Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the
negligent acts, intentional misconduct, errors, mistakes or omissions, in connection with the work
5
or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the
performance of this Agreement.
14. Notices and Requests. Any notice or other communication required or permitted to
be given under this Agreement shall be in writing and shall be deemed to have been duly given if
(i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered
or certified, return receipt requested, to the address set forth below or (iii) given to a recognized
and reputable overnight delivery service, to the address set forth below:
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Aaron D. Arnson, Town Attorney
If to Contractor: Matlick Enterprises, Inc.,
D/B/A United Fire Company
335 N. 4th Ave.
Tucson, Az. 85705
Attn: Mike Lister
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 subsection. Notices shall be deemed
received: (i) when delivered to the party, (ii) three business days after being placed in the U.S.
Mail, properly addressed, with sufficient postage or (iii) the following business day after being
given to a recognized overnight delivery service, with the person giving the notice paying all
required charges and instructing the delivery service to deliver on the following business day. If a
copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing
the date on which a notice is deemed to have been received by a party shall mean and refer to the
date on which the party, and not its counsel or other recipient to which a copy of the notice may
be sent, is deemed to have received the notice.
[SIGNATURES APPEAR ON FOLLOWING PAGES]
EXHIBIT A
TO
COOPERATIVE SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MATLICK ENTERPRISES, INC.
D/B/A
UNITED FIRE EQUIPMENT COMPANY
[State Contract]
See following pages.
i
STATE OF ARIZONA
Arizona Department of Environmental Quality (ADEQ)
1110 W. Washington Street
Phoenix, AZ 85007
INVITATION FOR BID (IFB)
Solicitation Number
BPM002337
Solicitation Title Emergency Response, Firefighting and Safety Equipment and Supplies
Offer Due Date and Time May 29, 2020 at 3:00 P.M. MST Local Arizona Time
Site Visit (Date/Time/Location) N/A
Point of Contact / Telephone / Email Patricia Lorenzen / 602.771.4776 / Lorenzen.patricia@azdeq.gov
Pre-Bid Meeting (Date/Time/Location) N/A
Description The Arizona Department of Environmental Quality (ADEQ) is soliciting bids for
Emergency Response, Firefighting and Safety Equipment and Supplies.
Contract Type & Term
(Refer to Terms & Conditions)
(Choose One)
☒ Firm Fixed Price
☐ Other Pricing
(Choose One)
☐ Single Requirement
☒Annual Requirement with Options for Renewal
SUBMITTALS: Offers submitted in response to this Invitation for Bid (IFB) shall be submitted within the State’s e-Procurement
system, Arizona Procurement Portal (APP) https://app.az.gov. Late submittals will not be considered. Offers received by
the due date and time will be electronically opened. Offers submitted outside of APP, or those that are received after the due date
and time, shall be rejected.
FOR QUESTIONS REGARDING THE SOLICITATION - Submit questions in writing via the “Discussion Forum” tab in
APP no later than:
May 15, 2020, 1:00 P.M. MST Local Arizona Time.
FOR APP TECHNICAL QUESTIONS – Contact the APP helpdesk staff by telephone at 602-542-7600. Due to heavy call
volume, allow at least 24 hours to receive a response. APP Supplier Reference Guides:
https://spo.az.gov/app/supplier/QRG
OFFERORS ARE STRONGLY ENCOURAGED TO CAREFULLY READ THE
ENTIRE SOLICITATION.
Patricia Lorenzen
Senior Procurement Specialist
Email: lorenzen.patricia@azdeq.gov
DATE: April 28, 2020
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
TABLE OF CONTENTS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
ii
CONTRACT PAGE
Cover Sheet……………………………………………………………………………..……………… i
Table of Contents………………………………..…………………………………………………….. ii
Scope of Work…………………………………………………………………………………………. 1
Special Terms and Conditions…………………………………………………………………………. 5
Special Instructions to Offerors………………………………………………………………………… 15
ATTACHMENTS (OFFER FORMS)
Attachment I - Offer and Acceptance Form
Attachment II - Pricing Sheet
Attachment III – Discount Schedule
Attachment IV – Confidentiality and Trade Secrets
Attachment V - Boycott of Israel Disclosure
Attachment VI - Offeror’s References
Attachment VII - Experience and Capacity Questionnaire
Attachment VIII - Conformance Statements
Attachment IX - Insurance Evidence
Attachment X - Offer Checklist
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SCOPE OF WORK
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
1
1. What the Arizona Department of Environmental Quality (ADEQ) is soliciting:
The Arizona Department of Environmental Quality (ADEQ), Procurement Division, as authorized under
A.R.S. § 41-2501 is seeking to establish one or more “statewide” contracts to satisfy the needs for all state
agencies, boards, and commissions, as well as participating purchasing cooperative members
(collectively, the Eligible Agencies) to provide Emergency Response, Firefighting and Safety Equipment
and Supplies. The Special Terms and Conditions provide a more detailed definition of Eligible Agencies,
and a list of all state agencies is available on the State Procurement Office website at:
https://azdirect.az.gov/agencies.
A list of participating purchasing cooperative members is available at:
https://spo.az.gov/procurement-services/cooperative-procurement.
ADEQ anticipates awarding multiple contracts to begin providing services by a target date of July 2020.
2. Background:
The Arizona Department of Environmental Quality (ADEQ) is seeking to establish multiple “statewide”
contracts to satisfy the needs for all state agencies, boards, and commissions, as well as participating
purchasing cooperative members (collectively, the Eligible Agencies) to provide Emergency Response,
Firefighting and Safety Equipment and Supplies. The estimated dollar amount of equipment and supplies
under the proposed contract is $ 500,000 annually based on historic data. This is an estimated usage and
because this contract will be used on an as needed basis, ADEQ makes no guarantee as to the actual spend
under any resultant contract.
3. Scope of Services:
ADEQ is seeking to enter into Contract(s) with one or more qualified Contractors to provide discount
percentage off catalog/online pricing for a wide variety of Emergency Response, Firefighting, and Safety
Equipment and Supplies.
3.1 The Contractor shall provide a comprehensive selection of products available through
manufacturer’s current published price lists. Products offered shall be the newest product model
available from the manufacturer. No prototype, demo products, rebuilt or reconditioned products
shall be accepted. Equipment shall conform, as applicable, to Occupational Safety & Health
Administration (OSHA), as well as, all other industry standards, including the National Electric
Code and the National Fire Protection Association, in effect at the time of delivery.
3.2 Contractor shall have the ability to create and process numerous individual accounts for order
placement, billing and reporting purposes and have inventory and transportation capacities
sufficient to meet customer demand and contract delivery requirements.
3.3 Contractor shall have the capacity to ship product within 2 days of order or shall state expected
ship date at the time the quote/order is requested.
3.4 The Contractor shall have qualified and trained personnel capable of assisting all Eligible
Agencies with all contract activities. Contract activities shall include such things as; customer
dispute resolution services (at transaction level), multiple account set up and management,
expediting services (order follow up), customer assistance, etc.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SCOPE OF WORK
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
2
3.5 The Contractor shall assign a representative(s) to the State to act as a liaison between the Eligible
Agencies and the contractor. The representative(s) may be assigned by geographic region. At a
minimum, one primary representative and one back-up shall be assigned to act as main points of
contact for the Using Entities.
3.6 The Contractor shall have the ability to handle electronic, P-card, hard copy, phone, and/or walk
in/will call orders as described within this solicitation. This includes providing and maintaining
electronic and/or hardcopy catalogs along with toll-free phone customer service for ordering
support and also web based catalogs that are maintained for the sole purpose of the State of
Arizona Contract products and services.
3.7 The Contractor shall be responsible for ensuring the most current manufacturer’s published price
lists are available to Eligible Agencies and shall keep updated any on-line catalogs as well as the
documentation posted through the State’s e-Procurement system (APP).
3.8 The Contractor shall have a return process in place to accommodate for any defective or damaged
product. Any item that is received in error or in a defective or damaged condition shall be replaced
or returned within thirty (30) days at no cost to the Eligible Agency.
3.9 Upon receipt of any Release Purchase Order under this Contract the Contractor will be required to
deliver all goods and services as requested within 45 days to Eligible Agency.
3.10 Contractor shall be capable of state wide delivery.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
5
1. Authority to Contract:
This Contract is issued under the authority of ADEQ in accordance with ARS §41-2533.
2. Contract Type:
Firm Fixed Price.
3. Contract Award:
Pursuant to provisions of the Arizona Procurement Code, A.R.S. 41-2501 Et Seq, the State of Arizona
intends to establish a contract for the goods or services as listed herein in service to eligible agencies. The
State may reject any or all Bids if such action is in the State's best interest. The State may waive informalities
and minor irregularities on Bids received. The State reserves the right to make an award on any item for
any quantity less than the quantity offered, at unit prices offered, unless the Offeror specifies otherwise in
the Bid. The State reserves the right to make multiple awards if, after considering the additional
administrative costs, it is in the State's best interest to do so.
4. Uniform Terms and Conditions v9 (Rev 7-1-2013):
The State of Arizona's Uniform Terms and Conditions are hereby incorporated by reference as if fully set
forth herein. This document may be accessed through the ADOA State Procurement Office Web Site:
https://spo.az.gov/administration-policy/state-procurement-resource/standard-forms-and-documents
https://spo.az.gov/sites/default/files/documents/files/Uniform%20Terms%20and%20Conditions%20V9_
%28Rev%207-1-2013%29.pdf
5. Term of Contract:
The term of the Contract shall commence upon award and shall remain in effect for a period of one year
thereafter unless terminated, canceled or extended as otherwise provided herein. The Contractor agrees that
the State of Arizona shall have the right, at its sole option, to renew the contract up to forty- eight (48)
additional months for a maximum of five (5) years. In the event that the State exercises such right, all terms,
conditions and provisions of the original contract shall remain the same and apply during the renewal period
with the exception of price. The Contractor shall agree that the price stated in the original contract shall
apply unless otherwise allowed.
6. Amendments:
Any change in the contract including the Scope of Work described herein, whether by modification or
supplementation, must be accomplished by a formal contract amendment signed and approved by and
between the duly authorized representatives of the Contractor and the Procurement Office of the State of
Arizona. Any such amendment shall specify an effective date, any increases or decreases in the amount of the
Contractors' compensation if applicable and entitled as an 'Amendment', and signed by the parties identified
in the preceding sentence. The Contractor expressly and explicitly understands and agrees that no other
method and/or no other document, including correspondence, acts, and oral communications by or from any
person, shall be used or construed as an amendment or modification or supplementation to the contract.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
6
7. Changes:
ADEQ reserves the right to add or delete products and services and make other changes within the general
specifications as may be deemed necessary to best serve the interests of the state. In the event that additional
products or services are needed, they shall be documented by formal amendment to the contract.
8. Arizona Procurement Portal (APP) system:
a. Offerors must be registered within the Arizona Procurement Portal (APP) system. Visit the Arizona
Procurement Portal (APP) system for registration at: https://app.az.gov/.
b. The Solicitation is sent through the Arizona Procurement Portal (APP) system https://app.az.gov/.
c. For more information please access ADEQ Procurement site at:
https://www.azdeq.gov/procurementoffice
9. Pricing:
a. Price Adjustment:
Price increase requests will only be considered 60 days prior to Contract extension and shall be for
factors the Contractor was not aware of at the time of Offer submission. ADEQ shall determine whether
the requested price increase or an alternate option is in the best interest of ADEQ. If a price increase
request is received after the allotted time frame the requested price increase will not be accepted.
b. Price Reduction:
A price reduction adjustment may be offered at any time during the term of the Contract and shall
become effective upon notice.
10. Estimated Quantities:
a. Any Contract resulting from this Solicitation shall be on an as needed, if needed basis. ADEQ makes
no guarantee as to the total quantity of goods/services to be purchased during the Contract period.
b. A Purchase Order will be the mechanism to purchase any goods and services as detailed in Scope of Work.
c. Additional related products and services may be purchased by an Eligible Agency from Contractor
during the term of the contract per contract pricing.
d. Additional Equipment, Equipment Upgrades, Parts and Accessories may be purchased at later date that
will be compatible with the purchased equipment from this Contract and/or with current equipment
already in use, at a discounted price (Attachment II, Pricing Sheet Section III - DISCOUNT).
11. Non-Exclusive Contract:
An Eligible Agency has the right to procure the goods or services listed herein from Contractors other
than those awarded pursuant to this Solicitation when necessary to meet the requirements of ADEQ.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
7
12. Lobbying:
Contractor shall not engage in lobbying activities, as defined in 40 CRF pt. 34 and ARS 41-1231 et. seq.,
using monies awarded under this contract. Upon award of a contract, contractor shall disclose all lobbying
activities to ADEQ to the extent they are an actual or potential conflict of interest or where such activities
would create an appearance of impropriety. Contractor shall implement and maintain adequate controls to
ensure that monies awarded under a contract shall not be used for lobbying. All proposed subcontractors
shall be subject to the same lobbying provisions stated above. Contractor must include anti-lobbying
provisions in all contracts with subcontractors.
13. Delivery:
Delivery shall be FOB Destination to the Eligible Agency at the address listed on the order document. The
Unit Price indicated on the Quote for an Item shall include any cost associated with delivery. The Contractor
shall retain title and control of all goods until they are delivered. Equipment shall be off -loaded by the
shipper at the designated shipping point. Inside delivery is a requirement of this contract. All risk of
transportation and all related charges shall be the responsibility of the Contractor. All claims for visible or
concealed damage shall be filed by the Contractor. The Eligible Agency will notify the Contractor promptly
of any damaged goods and shall assist the Contractor in arranging for inspections.
14. Warranty:
a. One Year Warranty:
If an extended warranty is not purchased, the Manufacturer Warranty shall commence on the day of
installation/activation and shall remain in effect for a minimum of one year unless otherwise specified.
The warranty shall cover all parts, labor and return shipping from the manufactures authorized service
center.
b. Extended Warranty:
If an extended warranty (Pricing Sheet Attachment II, Section II-WARRANTY) is purchased, it shall
cover all parts, labor and insured return shipping from authorized service center. At any time during
the extended warranty period, if the Eligible Agency returns equipment to the Contractor for repair,
calibration, etc. and the work performed will take longer than one week from receipt of the equipment,
if requested, the Contractor shall provide to the Eligible Agency a like replacement unit, until the
equipment is repaired and returned to the Eligible Agency.
15. Contractor Responsibilities:
a. Operating and Maintenance Manuals:
Within one week of purchase, the Contractor shall furnish a complete, detailed guide for maintenance
and operation of the new equipment purchased. Manuals shall be provided at no additional cost to the
Eligible Agency.
b. Technical Assistance:
Contractor shall provide on-call technical assistance via telephone during normal business hours of
9:00 a.m. to 4:00 p.m. Local Arizona Time. Within four business hours from the time technical
assistance is requested, it shall be provided. This service shall be provided to the Eligible Agency during
the initial and extended warranty periods at no cost to the Eligible Agency.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
8
16. Current Products:
a. All products offered in response to this solicitation shall be in current and ongoing production; shall
have been formally announced for general marketing purposes; shall be a model or type currently
functioning in a user (paying customer) environment and capable of meeting or exceeding all
specifications and requirements set forth in this solicitation.
17. Payment:
The State will make every effort to process payment for the purchase of goods or services within thirty (30)
calendar days after receipt of goods or services and a correct notice of amount due, unless a good faith dispute
exists as to any obligation to pay all or a portion of the account. Any bid that requires payment in less than
thirty (30) calendar days shall not be considered.
18. Payment Discount:
Payment discount periods will be computed from the date of receipt of goods or services or correct invoice,
whichever is later, to the date State's warrant is mailed. Unless freight and other charges are itemized, any
discount provided will be taken on full amount of invoice. Payment discounts of thirty (30) calendar days
or more will be deducted from the bid price in determining the low bid. However, the State shall be entitled
to take advantage of any payment discount offered by the Vendor, provided payment is made within the
discount period.
Billing:
All billing notices shall identify the specific items being billed. Billing notices shall reference the Purchase
Order number and contract number. Contractor shall submit all invoices to the Eligible Agency per the
order document.
a. The Eligible Agency shall process the approved claim for prompt payment in accordance with the
standard operating procedures of the State of Arizona. Applicable taxes, if any, shall be listed separately.
19. Taxes:
The State of Arizona is exempt from Federal Excise Tax, including Federal Transportation Tax. Sales Tax, if
any, should be indicated as a separate item.
a. The amount of any applicable transaction privilege or use tax of a political subdivision of the State is
not a factor in evaluating the overall cost of an Offer.
20. Offshore Performance of Work Prohibited:
Any services that are described in the specifications or scope of work that directly serve the State of Arizona
or its clients and involve access to secure or sensitive data or personal client data shall be performed within
the defined territories of the United States. Unless specifically stated otherwise in the specifications, this
paragraph does not apply to indirect or overhead services, redundant back-up services or services that are
incidental to the performance of the contract. This provision applies to work performed by subcontractors
at all tiers.
21. Subcontractor:
Contractor shall submit any proposed subcontractors not originally identified in Contractor’s proposal, or any
substitution of subcontracts to ADEQ for its approval prior to Contractor entering into same. Upon
termination of any subcontract, ADEQ shall be notified within one business day. Each subcontract to which
ADEQ has consented shall contain a provision that further assignments shall not be made to any third or
subsequent tier subcontractor without additional written consent of the ADEQ.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
9
22. Indemnification:
To the fullest extent permitted by law, Contractor shall defend, indemnify, save and hold harmless the State
of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and
employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities,
damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing,
investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury
(including death), or loss or damage to tangible or intangible property caused, or alle ged to be caused, in
whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers,
directors, agents, employees or subcontractors. This indemnity includes any claim or amount arising out of,
or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to
conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the
specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely
from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and
against any and all claims. It is agreed that Contractor will be responsible for primary loss invest igation,
defense, and judgment costs where this indemnification is applicable. In consideration of the award of this
contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers,
officials, agents, and employees for losses arising from the work performed by the Contractor for the State
of Arizona.
This indemnity shall not apply if the contractor or sub-contractor(s) is/are an agency,
board, commission or university of the State of Arizona.
23. Insurance Requirements:
23.1 Contractor and subcontractors shall procure and maintain, until all of their obligations have
been discharged, including any warranty periods under this Contract, insurance against claims for
injury to persons or damage to property arising from, or in connection with, the performance of the
work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
23.2 The Insurance Requirements herein are minimum requirements for this Contract and in no
way limit the indemnity covenants contained in this Contract. The State of Arizona in no way
warrants that the minimum limits contained herein are sufficient to protect the Contractor from
liabilities that arise out of the performance of the work under this Contract by the Contractor, its
agents, representatives, employees or subcontractors, and the Contractor is free to purchase
additional insurance.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
10
Minimum Scope and Limits of Insurance:
Contractor shall provide within 15 days of Contract Award coverage with limits of liability not less
than those stated below.
Commercial General Liability (CGL) – Occurrence Form
Policy shall include bodily injury, property damage, and broad form contractual liability coverage.
General Aggregate $2,000,000
Products – Completed Operations Aggregate $1,000,000
Personal and Advertising Injury $1,000,000
Damage to Rented Premises $50,000
Each Occurrence $1,000,000
a. The policy shall be endorsed, as required by this written agreement, to include the State of Arizona,
and its departments, agencies, boards, commissions, universities, officers, officials, agents, and
employees as additional insureds with respect to liability arising out of the activities performed by or
on behalf of the Contractor.
b. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in
favor of the State of Arizona, and its departments, agencies, boards, commissions, universities,
officers, officials, agents, and employees for losses arising from work performed by o r on behalf of
the Contractor.
Business Automobile Liability
Bodily Injury and Property Damage for any owned, hired, and/or non-owned automobiles used in the
performance of this Contract.
Combined Single Limit (CSL) $1,000,000
a. Policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its
departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as
additional insureds with respect to liability arising out of the activities performed by, or on behalf of,
the Contractor involving automobiles owned, hired and/or non-owned by the Contractor.
b. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor
of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers,
officials, agents, and employees for losses arising from work performed by or on behalf of the
Contractor.
Workers’ Compensation and Employers' Liability
Workers’ Compensation Statutory
Employers’ Liability
Each Accident $1,000,000
Disease - Each Employee $1,000,000
Disease – Policy Limit $1,000,000
a. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in
favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers,
officials, agents, and employees for losses arising from work performed by or on behalf of the
Contractor.
b. This requirement shall not apply to each Contractor or subcontractor that is exempt under A.R.S. § 23-
901, and when such Contractor or subcontractor executes the appropriate waiver form (Sole Proprietor
or Independent Contractor).
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
11
Additional Insurance Requirements:
The policies shall include, or be endorsed to include, as required by this written agreement, the following
provisions:
The Contractor's policies shall stipulate that the insurance afforded the Contractor shall be primary
and that any insurance carried by the Department, its agents, officials, employees or the State of
Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E).
Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the
indemnification provisions of this Contract.
24. Notice of Cancellation:
For each insurance policy required by the insurance provisions of this Contract, the Contractor must provide
to the State of Arizona, within two (2) business days of receipt, a notice if a policy is suspended, voided, or
cancelled for any reason. Such notice shall be mailed, emailed, hand delivered or sent by facsimile
transmission to the Arizona Department of Environmental Quality, Attn: Purchasing, 1110 W Washington
St., Phoenix, AZ 85007.
25. Acceptability of Insurers:
Contractor’s insurance shall be placed with companies licensed in the State of Arizona or hold approved
non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers.
Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way warrants
that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer
insolvency.
26. Verification of Coverage:
Contractor shall furnish the State of Arizona with certificates of insurance (valid ACORD form or
equivalent approved by the State of Arizona) as required by this Contract. An authorized representative of
the insurer shall sign the certificates.
All certificates and endorsements, as required by this written agreement, are to be received and
approved by the State of Arizona before work commences. Each insurance policy required by this
Contract must be in effect at, or prior to, commencement of work under this Contract. Failure to
maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a
material breach of contract.
All certificates required by this Contract shall be sent directly to the Department. The State of
Arizona project/contract number and project description shall be noted on the certificate of
insurance. The State of Arizona reserves the right to require complete copies of all insurance policies
required by this Contract at any time.
27. Subcontractors:
Contractor’s certificate(s) shall include all subcontractors as insureds under its policies or Contractor shall
be responsible for ensuring and/or verifying that all subcontractors have valid and collectable insurance as
evidenced by the certificates of insurance and endorsements for each subcontractor. All co verages for
subcontractors shall be subject to the minimum Insurance Requirements identified above. The Department
reserves the right to require, at any time throughout the life of the Contract, proof from the Contractor that
its subcontractors have the required coverage.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
12
28. Approval and Modifications:
The Contracting Agency, in consultation with State Risk, reserves the right to review or make modifications
to the insurance limits, required coverages, or endorsements throughout the life of this contract, as deemed
necessary. Such action will not require a formal Contract amendment but may be made by administrative
action.
29. Exceptions:
In the event the Contractor or subcontractor(s) is/are a public entity, then the Insurance Requirements shall
not apply. Such public entity shall provide a certificate of self-insurance. If the Contractor or
subcontractor(s) is/are a State of Arizona agency, board, commission, or university, none of the above shall
apply.
30. Federal Immigration and Nationality Act:
By entering into the Contract, the Contractor warrants compliance with the Federal Immigration and
Nationality Act (FINA) and all other Federal immigration laws and regulations related to the immigration
status of its employees. The Contractor shall obtain statements from its subcontractors certifying
compliance and shall furnish the statements to the Procurement Officer upon request. These warranties shall
remain in effect through the term of the Contract. The Contractor and its subcontractors shall also maintain
Employment Eligibility Verification forms (I-9) as required by the U.S. Department of Labor's Immigration
and Control Act, for all employees performing work under the Contract. I-9 forms are available for
download at USCIS.GOV.
a. The State may request verification of compliance for any Contractor or subcontractor performing work
under the Contract. Should the State suspect or find that the Contractor or any of its subcontractors are
not in compliance, the State may pursue any and all remedies allowed by law, including, but not limited
to: suspension of work, termination of the Contract for default, and
31. Non-Discrimination:
In accordance with A.R.S. §41-1461, contractor shall provide equal employment opportunities for all
person, regardless of race, color, creed, religion, sex, age, national origin, disability or political affiliation.
Contractor shall comply with the Americans with Disabilities Act.
32. E-Verify:
In accordance with A.R.S. §41-4401, Contractor warrants compliance with all Federal immigration laws and
regulations relating to employees and warrants its compliance with AAC Section A.R.S. §23-214,
Subsection A.
33. Non-Availability of Funds:
In accordance with A.R.S. §35-154, every payment obligation of the State under this Contract is conditioned
upon the availability of funds appropriated or allocated for the payment of such obligation. If funds are not
allocated and available for the continuance of this Contract, this Contract may be terminated by the State at
the end of the period for which funds are available. No liability shall accrue to the State in the event this
provision is exercised, and the State shall not be obligated or liable for any future payments or for any
damages as a result of termination under this paragraph.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
13
34. Audit of Records:
In accordance with to A.R.S. §35-214, the Contractor shall retain and shall contractually require each
subcontractor to retain all data, books and other records (“records”) relating to this Contract for a period of
five years after completion of the Contract. All records shall be subject to inspection and audit by the State
at reasonable times. Upon request, the Contractor shall produce the original of any or all such records.
35. Conflict of Interest:
In accordance to A.R.S. §38-511, the State may within three years after execution cancel the Contract, without
penalty or further obligation, if any person significantly involved in initiating, negotiating, securing, drafting
or creating the Contract on behalf of the State, at any time while the Contract is in effect, becomes an employee
or agent or any other party to the Contract in any capacity or a consultant to any other party of the Contract
with respect to the matter of the Contract.
36. Cancellation for Conflict of Interest:
Pursuant to A.R.S. §38-511, the State of Arizona, its political subdivision or any department or agency of
either may, within three years after its execution, cancel any contract, without penalty or further obligation,
made by the state of Arizona, its political subdivisions, or any of the departments or agencies of either if any
person significantly involved in initiating, negotiating, securing, drafting or creating the Contract on behalf
of the state of Arizona, its political subdivisions or any of the departments or agencies of either is, at any time
while the contract or any extension of the contract is in effect, an employee of or a consultant to any party to
this contract with respect to the subject matter of the contract. A cancellation made pursuant to this provision
shall be effective when the Contractor, and any successor to the Contractor, receives written notice of the
cancellation unless the notice specifies a later time.
37. Applicable Law:
In accordance with A.R.S. §41-2501 and AAC R2-7-101, et seq, Contract shall be governed and interpreted
by the laws of the State of Arizona and the Arizona Procurement code.
38. Arbitration:
In accordance with A.R.S. §12-1518, the parties agree to resolve all disputes arising out of or relating to
this Contract through arbitration, after exhausting applicable administrative review except as may be
required by other applicable statutes.
39. Inclusive Offeror(s):
Offeror(s) are encouraged to make every effort to utilize subcontractors that are small, women-owned
and/or minority owned business enterprises. This could include subcontracts for a percentage of deliveries
made under any subsequent contract. Offerors who are committing a portion of their work to such
subcontractors shall do so by identifying the type of service and work to be performed by providing detail
concerning your organization's utilization of small, women -owned and/or minority business enterprises.
Emphasis should be placed on specific areas that are subcontracted and percentage of contract utilization
and how this effort will be administered and managed, including reporting requirements.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL TERMS AND CONDITIONS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
14
40. Certification of Small Businesses and Disadvantaged Business Enterprises (DBE):
It is highly recommended that small businesses and DBEs get certified as such. EPA reporting,
requirements have changed and it is in the best interests of such businesses to become certified as soon as
possible, certification is typically free. Several certifying agencies are as follows: City of Phoenix, City of
Tucson, Small Business Association (SBA), Arizona Department of Transportation (ADOT) and
Environmental Protection Agency (EPA).
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL INSTRUCTIONS TO OFFERORS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
15
1. Solicitation Inquiries:
The ADEQ Solicitation Contact Person listed on page (i) of this Solicitation shall be the sole point of contact
for purposes of the preparation and submittal of the Solicitation.
2. Offer Format:
The following information shall be submitted with each Bid. Failure to include all of the requested
information may result in the Bid being rejected.
Attachment I Offer and Acceptance Form
Attachment II Pricing Sheet
Attachment III Discount Schedule
Attachment IV Confidentiality and Trade Secrets
Attachment V Boycott of Israel
Attachment VI Offeror’s References
Attachment VII Experience and Capacity Questionnaire
Attachment VIII Conformance Statements
Attachment IX Insurance Evidence
Attachment X Offer Checklist
3. Offer Submittal:
Offeror shall submit Bid and required documents electronically in the Arizona Procurement Portal (APP)
system by the Bid due date and time.
4. Offer Submission:
Offerors shall complete and submit electronically all of the following no later than the Offer due date and
time:
4.1 Completed and signed Offer and Acceptance Form (Attachment I).
4.1.1 Offeror shall complete the top half of the Offer and Acceptance form (Attachment I) which
shall include the signature of a person authorized to bind the Offeror.
4.2 Completed Pricing Sheet Form (Attachment II) in response to this Solicitation.
4.2.1 In addition to completing Pricing Sheet Form, Offeror to enter “1” for the “Unit Price”
field on the “Items” tab in Arizona Procurement Portal (APP) system.
4.2.2 If available, include Prompt Payment Terms on the Pricing Sheet (Attachment II) as
requested.
4.2.3 On the Pricing Sheet (Attachment II) Offeror is to include a URL link to the Technical
Documents for equipment on the Pricing Sheet or include the Technical Documents as part
of bid.
4.3 Completed Discount Schedule (Attachment III) in response to this solicitation.
4.4 Completed Confidentiality and Trade Secrets Form (Attachment IV)
4.5 Completed and signed Boycott of Israel Disclosure (Attachment V).
4.6 Completed Offeror’s References Form (Attachment VI).
4.6.1 Offeror shall provide the names, addresses, contact persons, telephone numbers and email
addresses of three (3) verifiable business entities or organizations for which the Offeror
has provided similar product/services as stated in the Scope of Work. References shall be
verifiable, provide contacts of individuals able to comment on the Offeror’s related
experience and provision of product/services.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL INSTRUCTIONS TO OFFERORS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
16
4.7 Completed Offeror’s Organization (Experience and Expertise) Form (Attachment VII),
4.7.1 Offeror to provide narrative response to Solicitation (not to exceed 3 pages).
4.8 Completed Conformance Statements (Attachment VIII).
4.9 Insurance Evidence (Attachment IX).
5. Offer Acceptance Period:
Any Offeror submitting an offer under this Solicitation shall hold its offer open for a period of sixty (60) days
after the Offer due date.
6. Acknowledgement of Solicitation Amendments:
Receipt of Solicitation Amendment(s) are to be acknowledged electronically in the Arizona Procurement
Portal (APP) system prior to or by the Offer due date and time. Failure to acknowledge Solicitation
Amendment(s) may result in the Bid being rejected.
7. Uniform Instructions to Offerors (Rev 9-2014):
The State of Arizona's Uniform Instructions to Offerors are hereby incorporated by reference, as if in full
text. This document may be accessed through the ADOA State Procurement Office Web Site:
https://spo.az.gov/administration-policy/state-procurement-resource/standard-forms-and-documents
https://spo.az.gov/sites/default/files/documents/files/Uniform%20Instructions%20to%20Offerors%20%2
8rev%209-2014%29.pdf
8. Bid Rejection:
The State reserves the right to reject any, or all, bids, combinations of items, or lot, and to waive defects or
informalities.
9. Erasures:
Erasures or other modifications must be initialed by the individual signing the Invitation for Bid.
10. Exceptions:
All exceptions included with the offer shall be submitted in a clearly identified separate section of the offer
in which the Offeror clearly identifies the specific paragraphs of the Solicitation where the exceptions occur.
The Offeror’s preprinted or standard terms will not be considered by the State as a part of any resulting
contract. Any exceptions contained in the offer may negatively affect the offers evaluation based on the
evaluation criteria. An offer that takes exception to any material requirement of the solicitation may be
rejected.
11. Evaluation Criteria:
The Contract shall be awarded to the lowest responsible and responsive bidder whose Bid conforms in all
material respects to the requirements and criteria set forth in the Invitation for Bid.
12. Pricing:
Pricing shall be submitted on an all inclusive basis and shall include all costs associated with performance of
the Scope of Work, including without limitation, labor rates, travel and per diem, labor benefits, payroll
burden, insurance, Workman’s compensation, fees, all taxes, profit, overhead and all other related cost
factors to included delivery.
INVITATION FOR BID (IFB)
SOLICITATION NO. BPM002337
Emergency Response, Firefighting and Safety Equipment and Supplies
SPECIAL INSTRUCTIONS TO OFFERORS
Arizona Department of
Environmental Quality
1110 W. Washington Street
Phoenix, AZ 85007
17
12.1 Price Adjustment
Price increase requests will only be considered 60 days prior to Contract extension and shall be for
factors the Contractor was not aware of at the time of Offer submission. ADEQ shall determine
whether the requested price increase or an alternate option is in the best interest of ADEQ. If a
price increase request is received after the allotted time frame the requested price increase will not
be accepted.
12.2 Price Reduction
A price reduction adjustment may be offered at any time during the term of the Contract and shall
become effective upon notice.
12.3 Estimated Quantities
Any Contract resulting from this Solicitation shall be on an as needed, if needed basis. ADEQ
makes no guarantee as to the total number of items to be purchased during the Contract period.
13. Reference Guides:
Arizona Procurement Portal (APP) Reference Guides are available at https://spo.az.gov/app/supplier/QRG
and/or contact the Arizona Procurement Portal Help Desk at 602-542-7600.
14. Withdrawal of Offer:
Offerors may withdraw their Offer in Arizona Procurement Portal (APP) at any time prior to the due date
and time.
Douglas A. Ducey
Governor
June 12, 2020
Matlick Enterprises, DBA: United Fire Equipment Company
Attn: Robert Begany
335 N. 4th Ave.
Tucson, AZ 85705
SENT VIA EMAIL: bobb@ufec.com
Re: Request for Clarification – Solicitation Number: BPM002337
“Emergency Response, Firefighting and Safety Equipment and Supplies”
Dear Mr. Begany,
Misael Cabrera
Director
ADEQ requests a written response to this Request for Clarification for subject Solicitation via
email to lorenzen.patricia@azdeq.gov.
Response to contain:
Item # 3: Your offer listed Phos-Chek foam, but did not provide a discount percentage.
Please verify any offered discount for Phos-Chek foam. Discount _______%
Please respond no later than June 15, 2020 9:00 AM MST.
X
Signature
Date:
If you have any questions regarding this notification, please contact Patricia Lorenzen at
lorenzen.patricia@azdeq.gov or 602-771-4776.
Sincerely,
Patricia Lorenzen, CPPB
Procurement Officer
Main Office
1110 Washington Street • Phoenix, AZ 85007
(602) 771-2300
Southern Regional Office
400 West Congress Street • Suite 433 • Tucson, AZ 85701
(520) 628-6733
Form approved by CPO, Rev. 12-18-2018
CONTRACT
AMENDMENT
CONTRACT NO.:
AMENDMENT NO.:
TITLE:
CONTRACTOR:
CTR050476
1
Emergency Response, Firefighting and Safety Equipment and Supplies
Matlick Enterprises Inc. – United Fire Equipment Co.
ADEQ PROCUREMENT
1110 W. Washington Street
Phoenix, AZ 85007
602-771-4730
THE PURPOSE OF THIS AMENDMENT IS TO:
1. Contract is hereby extended to 6/30/2022.
2. Contractor shall procure, maintain and provide ADEQ with current certificate of insurance meeting the insurance
requirements as stated in the Special Terms and Conditions Section 3-A.
The Certificate of Insurance should be issued to:
Arizona Department of Environmental Quality
Contracts and Procurement
1110 W. Washington Street
Phoenix, AZ 85007-2935
And emailed to shelley.kim@azdeq.gov
3. All other Requirements, Specifications, Terms and Conditions remain unchanged.
ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY
ACKNOWLEDGEMENT AND AUTHORIZATION
This contract extension shall be fully executed upon the approval electronically in Arizona Procurement Portal (APP)
eProcurement System by an authorized representative of the Contractor and applied to the contract in APP by the
Procurement Officer or delegate.
Available online at Arizona Procurement Portal (APP) eProcurement System https://appstate.az.gov
Page 1
Form approved by CPO, Rev. 12-18-2018
Invitation for Bid (IFB)
SOLICITATION AMENDMENT
SOLICITATION NO.: IFB BPM002337
AMENDMENT NO.: 1
TITLE:
Emergency Response, Firefighting and Safety Equipment and
Supplies
ADEQ PROCUREMENT
1110 W. Washington Street
Phoenix, AZ 85007
THE PURPOSE OF THIS AMENDMENT IS TO:
1. Correct Special Term and conditions section 4.
2. Replace Uniform Terms and Conditions v9 (Rev 7-1-2013) with:
a. Special Terms and Conditions (rev 1-1-16) (5)
b. The State of Arizona’s Special Terms and Conditions are hereby incorporated by reference as if fully
set forth herein. This document may be accessed through the ADOA State Procurement Office Web Site:
c. https://spo.az.gov/sites/default/files/documents/files/Special%20Terms%20and%20Conditions%2
0%28rev%201-1-16%29.doc
d. Supplier shall review Special Terms and conditions
3. All other Terms and Conditions Remain Unchanged.
IN ACCORDANCE WITH INSTRUCTIONS TO OFFERORS,
ITEM 4.5, ACKNOWLEDGEMENT OF SOLICITATION
AMENDMENTS; THE ABOVE REFERENCED
SOLICITATION AMENDMENT SHALL BE
ACKNOWLEDGED ELECTRONICALLY, VIA APP, PRIOR
TO THE SOLICITATION DUE DATE AND TIME.
Offeror Signature and Date Required
(Include Amendment with offer)
The above referenced Solicitation Amendment is hereby executed
this 19th day of May 2020 at Phoenix, Arizona.
Procurement Officer: Patricia Lorenzen
Email Address: Lorenzen.patricia@azdeq.gov
Available online at Arizona Procurement Portal (APP) eProcurement System https://app.az.gov
Page 1
EXHIBIT B
TO
COOPERATIVE SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MATLICK ENTERPRISES, INC.
D/B/A
UNITED FIRE EQUIPMENT COMPANY
[Quote or Work Order]
See following pages.
ITEM 8. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Development Services
Prepared by: John Wesley, Development Services Director
Staff Contact Information: John Wesley, Development Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Ordinance 21-11, amending Section 11-1-7, Noise, of the Town Code.
Staff Summary (background)
Article 11-1 of the Town Code addresses various offenses. Section 11-1-7 covers noise. This section
defines what is unacceptable noise and the procedures to abate issues. This section was last amended
two years ago when the Council added specific decibel limits to the ordinance.
The Town Council has addressed this possible ordinance amendment at regular meetings on August 17
and October 19. At the first meeting the Council expressed concern with the proposals to remove the
use of the decibel approach because it seems to be the most objective method for determining a
violation. While there is good reason to use a specific measurement, such as decibels, it has proven to
be difficult to implement over the last two years. For violations to hold up through prosecution, the
decibel meter being used must regularly be calibrated and accurate. Further, the deputies using the
meter must be trained in the use of the meter. As described by the Town Prosecutor, Mark Iacovino,
one of the biggest challenges with the decibel approach is addressing the background ambient noise and
how that impacts the noise reading. Based on the discussion at the October 19, 2021, Council meeting,
staff was directed to prepare a revised ordinance that removes the use of decibels but includes a simple
yet objective factors to enforcing an "unreasonable noise" standard.
Staff has prepared the attached ordinance for Council consideration. This ordinance has been reviewed
by the Town Attorney, the Town Prosecutor, and the Maricopa County Sheriff's office for their input on
the ability to fairly and consistently implement the code in a manner that is appropriate for the given
location, conditions, and circumstances.
Section A of the ordinance includes the same modification to the purpose statement as in the previous
draft ordinances
Section B provides definitions of key terms in the ordinance. Many existing definitions are moved as no
longer needed. A definition for Unruly Gathering has been added and is the same as in the previous
draft ordinances. The Town Prosecutor believes this section is important and beneficial to give law
enforcement the authority and ability to break-up a loud party or unruly event and order that those in
attendance disperse. These provisions will only be used in cases where the people staging the party or
event simply refuse to lower the noise volume, move the party or event indoors, or voluntarily ask their
guests to leave.
The existing Sections C and D are eliminated. The new Section C addresses Unreasonable Noise. The
introductory paragraph makes it "unlawful for any person to make, allow, enable or create unreasonable
noise with the intent to disturb the peace or quiet of a neighborhood.." and gives a sheriff's deputy the
authority to enforce the ordinance. Included in this section are 11 factors which may be used to help
determine if a violation exists.
Section D address unruly gatherings and allows a peace officer to enforce this provision.
Section E and F are unchanged from the existing ordinance.
Section G provides for the violation. At the recommendation of the Town Prosecutor, this has been
changed to a class 1 misdemeanor.
Section H provides the list of exemptions and includes the same list and modifications as in the previous
draft ordinances.
Section I is unchanged from the existing ordinance.
Related Ordinance, Policy or Guiding Principle
Town Code Section 11-1-7, Noise
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
The Planning and Zoning Commission reviewed the previous ordinance and had concerns with the
elimination of the decibel approach. The recent discussion with the Town Prosecutor has resolved those
concerns.
Staff Recommendation(s)
Staff recommends approval of the ordinance as submitted.
SUGGESTED MOTION
MOVE to adopt Ordinance 21-11.
Attachments
Ord. 21-11
Form Review
Inbox Reviewed By Date
Town Clerk Elizabeth A. Klein 11/02/2021 11:45 AM
Development Services Director (Originator)John Wesley 11/02/2021 11:50 AM
Town Attorney Aaron D. Arnson 11/02/2021 12:18 PM
Town Manager Grady E. Miller 11/02/2021 12:28 PM
Form Started By: John Wesley Started On: 10/28/2021 12:57 PM
Final Approval Date: 11/02/2021
ORDINANCE NO. 21 - 11
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN
HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE,
CHAPTER 11, OFFENSES, BY AMENDING SECTION 11-1-7 NOISE
RECITALS:
WHEREAS, the Town Council desires to amend Chapter 11, Offenses, Section 11-1-7 Noise, to
provide a more effective means of addressing noise issues.
ENACTMENTS:
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The recitals set forth above are hereby incorporated as if fully set forth herein.
SECTION 2. Chapter 11, Offenses, Article 11-1, Offenses, Section 11-1-7, Noise, is amended as
follows:
Section 11-1-7 Noise
A. Purpose. The purpose of this section is to promote the health and general welfare of the
citizens and businesses of the Town by balancing the need to protect the peace and quiet
enjoyment of residential neighborhoods and business districts FROM UNNECESSARY,
UNUSUAL, OR UNREASONABLE NOISE THAT IS EXCESSIVE, DISRUPTIVE, AND/OR
ANNOYING AGAINST THE NEED TO PROMOTE AND ENCOURAGE COMMERCIAL,
BUSINESS, AND RESIDENTIAL ACTIVITY, MAINTENANCE, AND against unreasonable
noise with the legitimate goal of promoting and encouraging commercial, business, and
residential growth in the community.
B. Definitions. The following words, terms and phrases, when used in this section, have the
meanings ascribed to them in this subsection, except where the context clearly indicates a
different meaning:
“A band level” means the total sound level of all noise as measured with a sound level meter
using an A-weighting network. The unit is the dB(A).
“Complainant” means a person who files a noise complaint.
“Decibel” means a sound pressure that is 20 times the logarithm to the base 10 of the ratio
of the pressure of sound to the reference pressure, 2 x 10 -5 newton/meter2.
“Emergency work” means any (a) work performed to prevent or alleviate physical trauma or
property damage threatened or caused by an emergency that has or may result in a
disruption of service and that is necessary to restore property to a safe condition following a
public calamity, (b) work required to protect the health, safety or welfare of persons or
property or (c) work by private or public utilities when restoring utility service.
ORDINANCE 21-11 PAGE 2
“Noise violation” means any noise created that exceeds the maximum limits as specified in
this section or that is unreasonable under the circumstances existing at the time and place of
the violation.
“Sound level (noise level)” means the sound measured with the A-weighting and slow
response by a sound level meter.
“Sound level meter” means an instrument including a microphone, an amplifier, an output
meter and frequency weighting networks for the measurement of sound levels that satisfies
the pertinent requirements for Type 1 sound level meters as set forth in the most recent
version of American Standard Specifications for Sound Level Meters ANSI S1.4-1983.
“Sound source” means the cause and location of the noise.
“UNRULY GATHERING” MEANS A GATHERING OF FIVE (5) OR MORE PERSONS ON
ANY PRIVATE RESIDENTIAL OR COMMERCIAL PROPERTY, THAT DISTURBS THE
PEACE AND QUIET OF A NEIGHBORHOOD OR A REASONABLE PERSON OF
ORDINARY SENSIBILITIES BY PRODUCING UNREASONABLE NOISE AS PROHIBITED
UNDER THIS SECTION AND MAY INCLUDE IMPEDING TRAFFIC, OBSTRUCTION OF
PUBLIC STREETS BY CROWDS OR VEHICLES, USING OR POSSESSING ILLEGAL
DRUGS, DRINKING IN PUBLIC AREAS, THE SERVICE OF ALCOHOL TO MINORS OR
CONSUMPTION OF ALCOHOL BY MINORS, FIGHTING, LITTERING, OR SIMILARLY
DISRUPTIVE ACTIVITIES.
C. Measurement Standard. Where applicable, sound level shall be measured with a sound level
meter operated in accordance with the manufacturer’s guidelines and instructions.
Per Se Noise Violations.
1. Subject to the complaint processing provisions in subsection (D)(2) of this section, it
shall be a violation of this section to emit or allow to be emitted noise in excess of the
permissible noise levels set forth in Table 1 below.
2. Complaint Processing. After receiving a noise complaint from a complainant, an
individual authorized under subsection H of this section shall measure the noise level
with such measurements being made where the complainant’s peace and quiet was
disturbed. The authorized individual shall determine a per se noise violation has
occurred when the decibel levels at the complainant’s location exceed the maximum
decibel levels set forth in Table 1 above.
Time Decibel dB(A)
T
able 1 Permissible Noise
Levels:
6:00 a.m. to 10:00 p.m. 70
10:00 p.m. to 6:00 a.m. 50
ORDINANCE 21-11 PAGE 3
3. The 10:00 p.m. cutoff may be extended to 11:00 p.m. in conjunction with a temporary
use permit issued by the Town pursuant to Section 2.03 of the Town Zoning
Ordinance.
E. C. Violations for Unreasonable Noise. It is unlawful for any person to make, ALLOW, ENABLE
or create unreasonable noise, with intent to disturb the peace or quiet of a neighborhood,
family, or REASONABLE person, OF ORDINARY SENSIBILITIES, or with knowledge of
doing so. For ANY MARICOPA COUNTY SHERIFF’S DEPUTY OR OTHER TOWN
EMPLOYEES DESIGNATED BY THE TOWN MANAGER TO ENFORCE THIS SECTION
MAY DETERMINE FOR ENFORCEMENT PURPOSES WHETHER A NOISE IS
UNREASONABLE.purposes of this subsection, the determination of unreasonable noise
shall be made based upon the circumstances existing at the time and place of the violation
and independently of subsection D of this section.
FACTORS THAT MAY BE CONSIDERED IN DETERMINING WHETHER A VIOLATION OF
THE PROVISIONS OF THIS SECTION EXISTS INCLUDE, BUT ARE NOT LIMITED TO,
THE FOLLOWING:
1. THE VOLUME OF THE NOISE;
2. THE INTENSITY OF THE NOISE;
3. WHETHER THE NATURE OF THE NOISE IS USUAL OR UNUSUAL;
4. WHETHER THE ORIGIN OF THE NOISE IS NATURAL OR UNNATURAL;
5. THE PROXIMITY OF THE NOISE TO RESIDENTIAL DWELLINGS;
6. THE NATURE AND ZONING OF THE AREA WITHIN WHICH THE NOISE
EMANATES;
7. THE DENSITY OF THE INHABITATION OF THE AREA WITHIN WHICH THE
NOISE EMANATES;
8. THE TIME OF THE DAY OR NIGHT THE NOISE OCCURS;
9. THE DURATION OF THE NOISE;
10. WHETHER THE NOISE IS RECURRENT, INTERMITTENT OR CONSTANT;
11. WHETHER THE NOISE IS PRODUCED BY A COMMERCIAL OR
NONCOMMERCIAL ACTIVITY;
D. UNRULY GATHERING; ABATEMENT. A PEACE OFFICER MAY ABATE AN UNRULY
GATHERING BY REASONABLE MEANS INCLUDING, BUT NOT LIMITED TO, CITATION
AND/OR ORDER DISPERSAL OF THE PERSONS ATTENDING THE GATHERING.
FE. Sound Truck. It is unlawful to play, operate, or use any device known as a sound truck, loud
speaker or sound amplifier, radio or phonograph with loud speaker or sound amplifier or any
instrument of any kind or character that emits loud and raucous noises and is attached to and
upon any vehicle.
GF. Braking Devices. It shall be unlawful for the driver of any vehicle to use or operate or cause
to be used or operated within the Town any compression release or other engine braking
device designed to aid in the braking or deceleration of any vehicle which results in noise in
excess of that which would otherwise be produced from such vehicle without such braking
device. The provisions of this subsection do not apply to public safety vehicles or to any
vehicle while descending Golden Eagle Boulevard.
HG. Violations. The Town Manager or designee, code official or Town-designated law
enforcement officer may issue civil citations pursuant to subsection 1-8-3(D) to enforce
violations of this section. After civil enforcement as set forth in subsection 1-8-3(FD), any
ORDINANCE 21-11 PAGE 4
Town-designated law enforcement officer or the Town Prosecutor may issue criminal
complaints pursuant to subsection 1-8-2(A) to enforce this section. ANY PERSON WHO
VIOLATES THIS SECTION IS GUILTY OF A CLASS 1 MISDEMEANOR, PUNISHABLE
PURSUANT TO SECTION 1-8-2 OF THIS CODE.
IH. Exemptions. The following uses and activities shall be exempt from Town noise level
regulations:
1. Noises resulting from air-conditioning equipment when such equipment is in proper
operating condition.
2. Noises resulting from LANDSCAPElawn maintenance equipment BETWEEN
5:00 A.M. AND 10:00 P.M. operated during daylight hours when such equipment is
functioning with all mufflers and standard noise-reducing equipment in use and in
proper operating condition.
3. Noises of safety signals, warning devices and emergency pressure relief valves.
4. Noises resulting from an authorized emergency vehicle when responding to an
emergency call or acting in time of emergency.
5. Noises resulting from emergency work.
6. Church chimes or bells.
7. Any noise created ny Town or Town contractor vehicles, equipment or facilities while
being operated or utilized for official business.
8. Noises resulting from a special event being held pursuant to a Town-issued special
event permit.
9. An unamplified human voiceNOISES RESULTING FROM CONSTRUCTION
ACTIVITIES DURING APPROVED HOURS PER ARTICLE 7-6 OF THIS CODE.
10. Noises resulting from an event being held by a school.
JI. Other Remedies. Nothing in this section shall be construed as affecting the ability of the Town
or other body to initiate or continue concurrent or subsequent criminal prosecution of any
person for any violations of the provisions of the Town Code or State law arising out of the
circumstances necessitating the application of this section.
SECTION 3. If any section, subsection, clause, phrase or portion of this Ordinance is for any reason
held invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions thereof.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this 16th day of
November, 2021.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Ginny Dickey, Mayor Elizabeth A. Klein, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney
ITEM 8. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Public Works
Prepared by: David Janover, Town Engineer
Staff Contact Information: Justin Weldy, Public Works Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Ordinance 21-19, amending The Town of Fountain Hills Town Code Chapter 12,
Article 12-2, Traffic Control, Section 12-2-2, Traffic Control Devices; Speed Limits
Staff Summary (background)
In April 2021, Town of Fountain Hills staff received an email from a citizen requesting that the Town set
a consistent posted speed limit on El Pueblo Blvd and Grande Blvd. Grande Blvd has a posted speed
limit of 30 MPH, while El Pueblo Blvd has a posted speed limit of 35 MPH. The concern was that the
character of both roads were the same, so they should have the same posted speed limit. A speed study
was performed, and crash data was collected in an effort to determine whether the speed limit should
be reduced on El Pueblo Blvd to match the speed limit on Grande Blvd. The Speed Limit Study is
provided in the Attachment.
The Study's recommendation, based on measured speed data, recorded crash data and engineering
methodology, is to reduce the existing speed limit on El Pueblo Boulevard (between Fountain Hills
Boulevards and Grande Boulevard) from 35 MPH to 30 MPH. The modification of the speed limit
requires an amendment to the Speed Limit List Table in Chapter 12, Article 12-2, Section 12-2-2.C of the
Town's Municipal Code.
SECTION 12-2-2 TRAFFIC CONTROL DEVICES: SPEED LIMITS
C. Speed Limit List. Pursuant to this section and A.R.S. § 28-703, the Town has determined on the
basis of engineering and traffic investigation that the maximum speed permitted on certain streets
within the Town can be declared to be reasonable and safe at speeds in excess of 25 miles per hour. The
following table sets forth the maximum speed limit for certain streets within the corporate limits of the
Town and the segments of said streets affected by the increased maximum safe and reasonable speed
limits:
Street Segment Speed
Limit (MPH)
All Other Roads 25
Avenue of the
Fountains
Palisades Blvd. To La Montana Drive 30
Boulder Drive Golden Eagle Blvd. to Blackbird Drive 30
Del Cambre Avenue Grande Blvd. to Calaveras Avenue 25
Desert Canyon Drive Sunridge Drive to Golden Eagle 35
Eagle Mountain Pkwy.Shea Blvd. to Summer Hill Blvd.35
Eagle Ridge Drive West of Copperwynd Drive 35
El Lago Blvd.Palisades Blvd. to Saguaro Blvd.30
El Pueblo Blvd.Fountain Hills Blvd. to Grande Blvd.35 30
Fountain Hills Blvd.Shea Blvd. to 300’ north of Kingstree Blvd.35
Fountain Hills Blvd.300’ north of Kingstree to Ironwood Drive 45
Fountain Hills Blvd.Ironwood Drive northward to Palisades Blvd.35
Fountain Hills Blvd.Palisades Blvd. to north town limit 35
Glenbrook Blvd.Bainbridge Avenue to Fountain Hills Blvd.35
Golden Eagle Blvd.Palisades Blvd. to (700’ west of Edgewater Drive)35
Grande Blvd.Saguaro Blvd. to east town limit 30
Indian Wells Drive Nicklaus Drive to 700’ west of Saguaro Blvd.20
Kingstree Blvd.Fountain Hills Blvd. to Saguaro Blvd.35
La Montana Drive El Lago Blvd. to Parkview Avenue 30
Palisades Blvd.Golden Eagle Blvd. to Saguaro Blvd.35
Palisades Blvd.Shea Blvd. to Golden Eagle Blvd.45
Palomino Blvd.Palisades Blvd. to Fountain Hills Blvd.30
Saguaro Blvd.Shea Blvd. to Fountain Hills Blvd.35
Shea Blvd.West town limit to 1200’ west of Technology Blvd.50
Shea Blvd.1200’ west of Technology Blvd. to east town limit.45
Summer Hill Blvd.Eagle Mountain Pkwy. to gate north of
Miramonte Way
30
Sunridge Drive Palisades Blvd. to Golden Eagle Blvd.35
Private Streets
Firerock Country Club
Dr.
Shea Boulevard to Rock Ridge Trail 20
Related Ordinance, Policy or Guiding Principle
Town Municipal Code Chapter 12, Article 12-2, Traffic Control, Section 12-2-2.C, Speed Limit List
Risk Analysis
It is anticipated that the reduced speed limit on El Pueblo Boulevard will result in lower vehicle speeds
overall, and fewer crashes along the El Pueblo Boulevard corridor.
Recommendation(s) by Board(s) or Commission(s)
The Speed Study was presented to the Pedestrian and Traffic Safety Committee on August 24, 2021, and
the committee was in agreement with the staff recommendation to reduce the speed limit on El Pueblo
Boulevard between Fountain Hills Boulevards and Grande Boulevard.
Staff Recommendation(s)
Staff recommends adoption of Ordinance 21-19, amending Town of Fountain Hills Town Code, Chapter
12, Article 12-2, Traffic Control, Section 12-2-2, Traffic Control Devices; Speed Limits, to reduce the
speed limit on El Pueblo Boulevard from 35 MPH to 30 MPH.
SUGGESTED MOTION
MOVE to adopt Ordinance 21-19.
Attachments
El Pueblo Blvd Speed Study
Ordinance 21-19
Form Review
Inbox Reviewed By Date
Town Clerk Elizabeth A. Klein 11/04/2021 11:14 AM
Public Works Director Justin Weldy 11/05/2021 06:27 AM
Town Attorney Aaron D. Arnson 11/08/2021 12:49 PM
Town Manager Grady E. Miller 11/08/2021 02:22 PM
Form Started By: David Janover Started On: 11/02/2021 10:02 AM
Final Approval Date: 11/08/2021
Speed Limit Study – El Pueblo Blvd Page 1 of 6
Town of Fountain Hills
Public Works Department
Memorandum
TO: Justin Weldy, Director of Public Works
FROM: David A. Janover, PE, F.NSPE, CFM, Town Engineer
DATE: July 13, 2021
RE: Speed Limit Study – El Pueblo Boulevard
In April, 2021, Town of Fountain Hills staff received an email from a citizen regarding the comparison of
speed limits on El Pueblo Blvd and Grande Blvd. Grande Blvd has a posted speed limit of 30 mph, while El
Pueblo Blvd has a posted speed limit of 35 mph. The concern was that the character of both roads were the
same, so they should have the same posted speed limit. A speed study was performed, and crash data was
collected in an effort to determine whether the speed limit should be reduced on El Pueblo Blvd to match the
speed limit on Grande Blvd.
Roadway Characterization
El Pueblo Boulevard extends east from Fountain Hills Boulevard (its western terminus) then curves towards
the south, intersecting Grande Boulevard and extends south terminating south of Flat Rock Drive. The
majority of El Pueblo Blvd is a 60-foot wide three-lane road section (between Fountain Hills Blvd & Grand
Blvd), then narrows south of Grande Blvd to a two-lane local road. Along the corridor between Fountain
Hills Blvd and Grande Blvd, driveways have direct access to El Pueblo Blvd. This corridor has a posted
speed limit of 35 mph.
Grande Blvd is also a three-lane 60-foot wide road extending between Saguaro Blvd east to the Town line.
Between Saguaro Blvd & Del Cambre Ave, Grande Blvd has no driveway entrances, and is a true collector
road. East of Del Cambre Ave, there are many residential driveways with direct access on both sides of the
road, similar in character to the El Pueblo Blvd corridor above. The entire stretch of Grande Blvd is posted
with a 30 mph speed limit.
Speed Data
During the period June 2 through June 8, 2021, speed and volume measurements were collected at three (3)
locations along El Pueblo Blvd, and one location on Grande Blvd. The map on the following page shows
the data collection locations, which include:
El Pueblo Blvd, west of Riley Dr
El Pueblo Blvd, west of Baca Dr
El Pueblo Blvd, south of Huron; and
Grande Blvd, west of Arrowweed Dr
Speed Limit Study – El Pueblo Blvd Page 2 of 6
Town of Fountain Hills
Public Works Department
Memorandum
The speed data collected are as follows:
Location 85th Percentile Speed
El Pueblo w/o Riley 44 mph
El Pueblo w/o Baca 43 mph
El Pueblo s/o Huron 39 mph
Grande w/o Arrowweed 39 mph
Speed Limit Study – El Pueblo Blvd Page 3 of 6
Town of Fountain Hills
Public Works Department
Memorandum
In referencing the FHWA document “Methods and Practices for Setting Speed Limits: An Informational
Report”, the primary purpose of the speed limit is to advise drivers of the maximum reasonable and safe
operating speed under favorable conditions. It provides a basis for enforcement and ought to be fair in the
context of traffic law.
Methodologies for setting speed limits typically are designed to result in recommended speed limits that:
Are related to crash risk;
Provide a reasonable basis for enforcement;
Are fair in the context of traffic law; and
Are accepted as reasonable by a majority of road users.
Further, factors that affect safe speeds along roadways, and also influence the speed selected by motorists,
include:
A vehicle's mechanical condition and characteristics;
Driving ability/capabilities;
Traffic volume: vehicles, pedestrians, and bicycles;
Weather and visibility;
Roadway design elements, including:
o Road function/purpose;
o Lane and shoulder width;
o Horizontal and vertical curves;
o Available sight distances;
o Driveways with restricted visibility and other roadside developments;
o High driveway density;
o Rural residential or developed areas; and
o Paved or improved shoulders.
Pavement conditions; and
Crash frequency and severity.
There is a lack of specific guidance and procedures from the Manual on Uniform Traffic Control
Devices (MUTCD), so engineers often rely on their experience and judgment when considering factors that
affect decisions about setting appropriate speed limits. With that in mind, it is noted that the El Pueblo
corridor between Fountain Hills Blvd and Grande Blvd is a neighborhood collector, with a high density of
residential driveways.
Crash Data
Crash data for the period 1/1/2016 through 12/30/2020 along the El Pueblo Blvd was reviewed, and a heat
map and list of crashes are provided below:
Speed Limit Study – El Pueblo Blvd Page 4 of 6
Town of Fountain Hills
Public Works Department
Memorandum
El Pueblo Blvd Crash Data – HEAT MAP
Crash Location
Count
El Pueblo & Grande Blvd 4
El Pueblo & FH Blvd
4
El Pueblo & El Sobrante 2
El Pueblo & La Pasada 2
El Pueblo & San Marcus 2
Alamosa & El Pueblo 2
El Pueblo & Tejon
1
El Pueblo & Wiley
1
Calico Dr & El Pueblo 1
Choctaw Cir & El Pueblo 1
El Pueblo & Escalante 1
El Pueblo & Flat Rock 1
Total Crashes 22
During this 5-year period, there were a total of 22
reported crashes. A chart showing the types of
crashes is shown at right, and of those, 2 of the
crashes were related to speed that was too fast for
conditions.
It can be seen from the heat map above that the
crashes occur throughout the corridor, especially at
the curvilinear sections of El Pueblo Blvd.
Speed Limit Discussion
One of the methods in determining the speed limit of
a road is to use the Operating Speed Method, which is
an engineering approach to setting speed limits. The
Operating Speed Method of setting a speed limit is
based on the 85th percentile speed (this is the speed at
which 85 percent of free-flowing traffic is traveling at
or below). Typically, the procedure is to set the speed
limit at or near the 85th percentile speed of free-flow
traffic. Adjustments can be made based on
infrastructure and traffic conditions.
Speed Limit Study – El Pueblo Blvd Page 5 of 6
Town of Fountain Hills
Public Works Department
Memorandum
Under the operating speed method of setting speed limits, the first approximation of the speed limit is to
set the speed limit at the 85th percentile speed. The MUTCD recommends that the speed limit be within 5
mph of the 85th percentile speed of free-flowing traffic, and be in multiples of 5 mph.
While the MUTCD recommends setting the posted speed limits near the 85th percentile speed, in reality
the speed limit is often set much lower. In these cases, the 85th percentile operating speeds exceed the
posted speed limits; and, in many cases, the 50th percentile operating speed is either near or exceeds that
posted speed limit as well. However, it is important to note that setting speed limits lower than 85th
percentile speed does not encourage compliance with the posted speed limit.
With that being said, the 85th percentile speed can be adjusted on the basis of engineering and traffic
investigation. The following are typical adjustments made by several States:
Adjustments for roadway factors may reduce the 85th percentile speed by as much as 10 mph
below the 85th percentile speed based on sound and generally accepted engineering judgment,
that includes consideration of the following factors:
o Narrow roadway pavement widths (20 feet (6 m) or less, for example).
o Horizontal and vertical curves (possible limited sight distance).
o Driveways with restricted visibility and other developments (possible limited sight
distance).
o High driveway density (the higher the number of driveways, the higher the potential for
encountering entering and turning vehicles).
o Rural residential or developed areas (higher potential for pedestrian and bicycle traffic).
o Narrow shoulder widths (constricted lateral movement).
If the crash rate for a two-year period is much higher than the average for other highways of
similar classifications, adjustments are considered.
Adjustments can be made based on crash data when enforcement agencies will assure a degree of
enforcement that will make the speed zone effective.
A 12 mph (20 km/h) reduction for locations where roadway factors and crash rates are higher
than the statewide average.
Speed Limit Study – El Pueblo Blvd Page 6 of 6
Town of Fountain Hills
Public Works Department
Memorandum
Based on the driveway density, rural residential development, horizontal curves and crash data, we can
consider a speed limit 10 mph below the measured 85th percentile speed on El Pueblo Blvd. The table
below shows the 85th percentile and the speed adjusted downward by 10 mph:
Location 85th Percentile Speed 85th Percentile minus 10 mph
El Pueblo w/o Riley 44 mph 34 mph
El Pueblo w/o Baca 43 mph 33 mph
El Pueblo s/o Huron 39 mph 29 mph
Grande w/o Arrowweed 39 mph 29 mph
The reduced speeds highlighted above on El Pueblo Blvd are generally in alignment with a posted speed
limit of 30 mph. The reduced speed listed above for Grande Blvd, is already in alignment with the existing
posted speed limit of 30 mph.
Recommendation
Based on the above data, methodology and engineering judgement for setting speed limits, the Engineering
Division of Public Works recommends that the speed limit on El Pueblo Blvd between Fountain Hills Blvd
and Grande Blvd be reduced from 35 mph to 30 mph.
ORDINANCE NO. 21-19
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS
TOWN CODE, CHAPTER 12, ARTICLE 12-2, SECTION 12-2-2, TRAFFIC
CONTROL DEVICES; SPEED LIMITS, THEREOF
RECITALS:
WHEREAS, the Mayor and Town Council wish to amend the Town Code to reduce the posted
speed limit on El Pueblo Boulevard between Fountain Hills Boulevard and Grande Boulevard from
35 MPH to 30 MPH.
ENACTMENTS:
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. Chapter 12, Article 12-2, Section 12-2-2, Traffic Control Devices; Speed Limits, is
amended as follows:
A. The Town manager or his designee shall direct the placement and maintenance of traffic
control devices, signs and signals when and as required under the traffic regulations of
the Town to make effective the provisions of said regulations, and may place and maintain
such additional traffic control devices as he may deem necessary to regulate traffic under
the traffic laws of the Town or under state law or to guide or warn traffic. The authority of
the Town manager or his designee to place and maintain signs under this chapter shall
not include authority to post signs setting speed limits on any part of a street or highway
within the Town different from the speed limits specified in A.R.S. Title 28, Article 6,
Chapter 6 unless the council has first adopted an ordinance in conformance with the
provisions of A.R.S. §28-703 authorizing a change of speed limit on such part of a street
or highway within the Town.
B. The driver of any vehicle shall obey the instructions of any official traffic control device
applicable thereto placed in accordance with the traffic regulations of the Town unless
otherwise directed by the Town law enforcement agent, subject to the exceptions granted
in this chapter or by state law.
C. Speed Limit List. Pursuant to this section and A.R.S. §28-703, the Town has determined
on the basis of engineering and traffic investigation that the maximum speed permitted on
certain streets within the Town can be declared to be reasonable and safe at speeds in
excess of 25 miles per hour. The following table sets forth the maximum speed limit for
certain streets within the corporate limits of the Town and the segments of said streets
affected by the increased maximum safe and reasonable speed limits:
ORDINANCE 21-19 PAGE 2
Street Segment
Speed
Limit
(MPH)
All Other Roads 25
Avenue of the Fountains Palisades Blvd. To La Montana Drive 30
Boulder Drive Golden Eagle Blvd. to Blackbird Drive 30
Del Cambre Avenue Grande Blvd. to Calaveras Avenue 25
Desert Canyon Drive Sunridge Drive to Golden Eagle 35
Eagle Mountain Pkwy. Shea Blvd. to Summer Hill Blvd. 35
Eagle Ridge Drive West of Copperwynd Drive 35
El Lago Blvd. Palisades Blvd. to Saguaro Blvd. 30
El Pueblo Blvd. Fountain Hills Blvd. to Grande Blvd. 35 30
Fountain Hills Blvd. Shea Blvd. to 300’ north of Kingstree Blvd. 35
Fountain Hills Blvd. 300’ north of Kingstree to Ironwood Drive 45
Fountain Hills Blvd. Ironwood Drive northward to Palisades Blvd. 35
Fountain Hills Blvd. Palisades Blvd. to north town limit 35
Glenbrook Blvd. Bainbridge Avenue to Fountain Hills Blvd. 35
Golden Eagle Blvd. Palisades Blvd. to (700’ west of Edgewater Drive) 35
Grande Blvd. Saguaro Blvd. to east town limit 30
Indian Wells Drive Nicklaus Drive to 700’ west of Saguaro Blvd. 20
Kingstree Blvd. Fountain Hills Blvd. to Saguaro Blvd. 35
La Montana Drive El Lago Blvd. to Parkview Avenue 30
Palisades Blvd. Golden Eagle Blvd. to Saguaro Blvd. 35
Palisades Blvd. Shea Blvd. to Golden Eagle Blvd. 45
Palomino Blvd. Palisades Blvd. to Fountain Hills Blvd. 30
Saguaro Blvd. Shea Blvd. to Fountain Hills Blvd. 35
Shea Blvd. West town limit to 1200’ west of Technology Blvd. 50
Shea Blvd. 1200’ west of Technology Blvd. to east town limit. 45
Summer Hill Blvd. Eagle Mountain Pkwy. to gate north of Miramonte Way 30
Sunridge Drive Palisades Blvd. to Golden Eagle Blvd. 35
Private Streets
Firerock Country Club Dr. Shea Boulevard to Rock Ridge Trail 20
ORDINANCE 21-19 PAGE 3
SECTION 2. If any section, subsection, clause, phrase or portion of this Ordinance is for any reason
held invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions thereof.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this 16th day
of November, 2021.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Ginny Dickey, Mayor Elizabeth A. Klein, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney
ITEM 8. C.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: Grady E. Miller, Town Manager
Staff Contact Information: Grady E. Miller, Town Manager
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: on a proposed grant program to assist non-profit organizations negatively
impacted by the COVID-19 pandemic.
Staff Summary (Background)
Last year the Town Council authorized using a portion of its allocation of $2.89 million in CARES Act
funding to provide grants to small businesses impacted by the COVID-19 pandemic. A total of $300,000
was approved by the Town Council in June 2020 for this purpose. The grant program was marketed and
administered by the Economic Development Department. In 2020 the Economic Development
Department distributed $300,000 in grants to several small businesses in Fountain Hills.
While the small business assistance grant was very effective in providing additional financial assistance
to the business community in Fountain Hills, one major sector that was not assisted last year was the
not-for-profit sector. Churches, charitable non-profit organizations, and other not-for-profit
organizations were not eligible to receive funding from the Town of Fountain Hills through the small
business assistance grant program. During the final budget adoption meeting on June 1, staff proposed
to the Town Council last June a similar grant assistance program that would provide grants targeted to
Fountain Hills-based not-for-profits. The funding for this grant program would be paid indirectly from
the American Rescue Plan Act of 2021 (ARPA). Under ARPA the Town of Fountain Hills will administer a
similar grant program for not-for-profits which will be paid from savings generated from paying public
safety costs of $4.2 million (one year's allocation) from ARPA funding in FY 2021-22.
Last September staff gave a presentation to the Town Council on proposed uses of ARPA funding,
which included $300,000 for Non-Profit Assistance Grants:
$300K to Local Non-Profit Assistance Grants
$100K Reserved for Future Pandemic-Related Expenses (testing/vaccination sites, etc.)
Remaining $8.0M Transferred to Facilities Reserve Fund specifically allocated to Council approved
Capital Improvement Project Priorities such as Streets or Fountain Lake Improvements
The general terms and conditions of the grant program are as follows:
The general terms and conditions of the grant program are as follows:
Eligible Non-Profits will have to be Fountain Hills-based since January 2020 (beginning of
pandemic)
Grant funding can be utilized as follows:
- For operating expenses directly or indirectly tied to the pandemic
- Replacement of lost revenues
Grantees will sign a contract indicating agreement to the terms and conditions for use of grant
funds
Grantees will agree to file a report to demonstrate how the grant funds were utilized within six
months after receiving the grant funds
A budget transfer from Contingency will be required to provide authority to expend $300,000 from the
General Fund.
Related Ordinance, Policy or Guiding Principle
Town Code and Financial Policies.
Risk Analysis
Staff will ensure that the grant application and use of grant funds are in accordance with state law,
town code, and all other regulations.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of a $300,000 grant assistance program for Fountain Hills-based
not-for-profit organizations.
SUGGESTED MOTION
MOVE to approve staff creating and implementing a one-time $300,000 grant program for Fountain
Hills-based not-for-profit organizations negatively impacted by the pandemic, and the associated budget
transfer.
Fiscal Impact
Fiscal Impact:$300,000
Budget Reference:
Funding Source:ARPA Funding
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Fiscal Impact:$300,000
Budget Reference:Contingency
Budget Reference:Contingency
Funding Source:General Fund
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Attachments
Non Profit Grant Budget Transfer
Form Review
Inbox Reviewed By Date
Finance Director David Pock 11/08/2021 03:57 PM
Town Attorney Aaron D. Arnson 11/09/2021 06:56 AM
Town Manager (Originator)Grady E. Miller 11/09/2021 08:48 AM
Form Started By: Grady E. Miller Started On: 11/03/2021 11:57 AM
Final Approval Date: 11/09/2021
11/08/2021 16:46 |TOWN OF FOUNTAIN HILLS |P 1
DPock |BUDGET AMENDMENTS JOURNAL ENTRY PROOF |bgamdent
LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED
ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR____________________________________________________________________________________________________________________________________
YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND
2022 05 71 11/16/2021 BUA NFP GRANTS 1 1
1 GENAD 6416 GENERAL GOVERNMENT ADMIN COMMUNITY CONTRACTS/EVENTS 158,180.00 300,000.00 458,180.00
100-10-15-110-100-0106-6416- FM GENAD CONTINGENCY 11/16/2021
2 GENAD 7010 GENERAL GOVERNMENT ADMIN CONTINGENCY 5,359,143.00 -300,000.00 5,059,143.00
100-10-15-110-100-0106-7010- TO GENAD 6416 11/16/2021
** JOURNAL TOTAL 0.00
11/08/2021 16:46 |TOWN OF FOUNTAIN HILLS |P 2
DPock |BUDGET AMENDMENT JOURNAL ENTRY PROOF |bgamdent
CLERK: DPock
YEAR PER JNL
SRC ACCOUNT ACCOUNT DESC T OB DEBIT CREDIT
EFF DATE JNL DESC REF 1 REF 2 REF 3 LINE DESC____________________________________________________________________________________________________________________________________
2022 5 71
BUA GENAD-6416 COMMUNITY CONTRACTS/EVENTS 5 300,000.00
11/16/2021 NFP GRANTS T FM GENAD CONTINGENCY
BUA GENAD-7010 CONTINGENCY 5 300,000.00
11/16/2021 NFP GRANTS T TO GENAD 6416 _________________ _________________
JOURNAL 2022/05/71 TOTAL .00 .00
11/08/2021 16:46 |TOWN OF FOUNTAIN HILLS |P 3
DPock |BUDGET AMENDMENT JOURNAL ENTRY PROOF |bgamdent
FUND YEAR PER JNL EFF DATE DEBIT CREDIT
ACCOUNT ACCOUNT DESCRIPTION____________________________________________________________________________________________________________________________________
_________________ _________________
FUND TOTAL .00 .00
** END OF REPORT - Generated by DAVID POCK **
ITEM 8. D.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: Grady E. Miller, Town Manager
Staff Contact Information: Grady E. Miller, Town Manager
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: on the 2022 Proposed Legislative Agenda.
Staff Summary (Background)
This is the first year that the town has developed a legislative agenda that formally identifies key issues
and interests of Fountain Hills. The purpose of the legislative agenda is to affect federal and state
legislation and regulations as they relate to the interests of the Town of Fountain Hills and its
residents. The legislative agenda defines the priorities for the upcoming session and will guide the
town's lobbying activities at the Arizona State Legislature.
The Town of Fountain Hills has contracted with Jack Lunsford to serve as its Government Affairs
Director. Throughout the 2022 legislative session, policy direction will be sought on proposed statutory
changes which fall under the adopted Town Council's 2022 Legislative Agenda as well as Council policy
statements relating to the Town of Fountain Hills. The legislative agenda focuses on a few key issues to
allow the town to have a stronger, more consistent message on the items of greatest priority.
The Town's 2022 Legislative Agenda is a flexible document and may change, based on activities at the
Legislature and Council direction.
Related Ordinance, Policy or Guiding Principle
The 2020 Legislative Agenda provides the policy framework by which the Town of Fountain Hills engages
on state and federal legislative issues.
Risk Analysis
A legislative agenda allows the town to focus on the big picture issues impacting the Town of Fountain
Hills. It also ensures that the Town Council's legislative priorities are being pursued and advocated on
behalf of the organization.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of the 2022 Legislative Agenda.
SUGGESTED MOTION
MOVE to approve the 2022 Legislative Agenda.
Attachments
2022 Legislative Agenda
Form Review
Inbox Reviewed By Date
Finance Director David Pock 11/08/2021 05:04 PM
Town Attorney Aaron D. Arnson 11/09/2021 06:53 AM
Town Manager (Originator)Grady E. Miller 11/09/2021 11:00 AM
Form Started By: Grady E. Miller Started On: 11/03/2021 10:59 AM
Final Approval Date: 11/09/2021
1
2022 State Legislative Agenda
The Town Council of Fountain Hills
Prepared by
Jack W Lunsford
The Lunsford Group
2
Mission
To enrich and provide an active quality of life for all residents and visitors through proactive
community engagement, resolute stewardship of amenities and open spaces, and the
enhancement of the overall health and well-being of our town.
Strategic Priorities
The Fountain Hills Strategic Plan is based on the following key goals or strategic priorities:
Maximizing Economic Development Opportunities in Fountain Hills
o Ensuring that Infrastructure in Fountain Hills is Well-Maintained and Safe
o Attracting Families and Working Professionals
o Ensuring that Fountain Hills Finances are Stable and Sustainable
o Focusing on Strengthening the Community and Improving the Town’s Quality of Life
2022 Legislative Resolutions
League of Arizona Cities and Towns
(Endorsed and Supported)
➢ AMEND state statute to specify a period when cities and towns may prohibit the use of
permissible fireworks and modify definitions of illegal and permissible fireworks.
➢ AMEND statute to allow cities and towns to amend their budgets after the initial budget
has passes while following notice and hearing statutes and with strong oversight and
approval requirements.
➢ SEEK legislative and/or non-legislative solutions, working with housing and homeless
advocates, the Department of Housing, and state legislators, to provide local
governments, regional partners, and continuum of care providers additional resources to
combat street homelessness in our communities.
➢ SIMPLIFY the statutory mechanisms to dissolve water and wastewater districts once
an area incorporates or gets annexed to relieve the tax burden on the citizens, if the town
or town provides the same service that had been performed by the district, or the district
service is no longer needed.
3
Town of Fountain Hills
2022 State Legislative Agenda
CORE PRINCIPLES
Preserve Local Funding
PROTECT State-Shared Revenues – Arizona voters have prohibited municipalities from
collecting a local income tax and luxury taxes and, in exchange, have authorized the
establishment of an urban revenue-sharing distribution of state income taxes to municipal
governments. Currently that percentage is 15%, however in 2021 the Legislature passed
SB1828 which increased revenue-share percentage to 18%, effective in fiscal year 2023-2024.
SB1828 is now on hold pending a final ruling from the Arizona Supreme Court as to the
constitutionality of this and other 2021 legislative actions and, depending on the outcome, this
could put pressure on the Arizona Legislature to revisit the provisions of the new law.
Preserve Local Control
OPPOSE Preemption of Local Authority – The Town strives to preserve local control so that
its citizens can self-govern in their best interest. Every legislative session legislation is
proposed that creates unfunded mandates on cities and towns and/or preempts the ability of
municipal councils to set policy through ordinances and regulations at the local level which are
in the best interest of their citizens and taxpayers. Often times this is a “one -size-fits-all”
legislative approach that doesn’t consider the differences in municipalities or t he priorities of the
residents. Such efforts should be opposed.
2021 Key Positions
✓ PRESERVE the current minimum urban revenue sharing percentage for cities and towns
at 15%.
✓ OPPOSE legislation to modify or expand legislative authority to seek SB1487
investigations by legislators pertinent to municipal authorities and to expand any
applicable penalties.
✓ SUPPORT legislation addressing the negative impacts short-term rental properties can
have on adjacent properties and neighborhoods.
✓ SUPPORT legislation that at a minimum will prohibit, on all days, the use of permissible
consumer fireworks between the hours of 10:00 PM and 8:00 AM.
4
LEGISLATIVE POLICY STATEMENTS
LOCAL GOVERNMENT
• OPPOSE legislation to modify or expand legislative authority to seek SB1487
investigations by legislators pertinent to municipal authorit y and to expand any penalties.
• SUPPORT legislation that further limits SB1487 provisions .
• OPPOSE legislation that creates unfunded mandates for municipalities .
• SUPPORT legislation on political signs to comply with Reed v. Town of Gilbert U.S.
Supreme Court decision.
LOCAL GOVERNMENT FINANCE
• OPPOSE legislation that reduces or negatively impacts the collection of transaction
privilege tax (TPT), State Shared Revenues, or other local revenues .
• OPPOSE changing the imposition of construction sales taxes to “materials only” or other
methods that do not equitably return those revenues to where the construction activity
occurs.
NEIGHBORHOODS and QUALITY OF LIFE ISSUES
• SUPPORT legislation providing additional tools and remedies for municipalities to
regulate short-term rentals in their communities.
• OPPOSE legislation that would limit or curtail the Town’s current zoning authority,
particularly in residential areas.
• OPPOSE legislation that would prohibit or eliminate the transaction privilege tax on the
renting or leasing of real property for residential purposes.
• OPPOSE legislation that preempts a city or town from establishing or enforcing its
ordinances regulating tobacco, vapor, or alternative nicotine products.
5
PUBLIC SAFETY
• OPPOSE legislation that negatively impacts the Town’s Fire Code or its ability to enforce
its Fire Code provisions.
• OPPOSE legalizing additional fireworks or other changes that would increase the risk of
fires to businesses, neighborhoods , residents and the McDowell Mountain Preserve.
• PRESERVE local control authority that allows cities and towns to regulate the use and
discharge of firearms within municipal boundaries .
TRANSPORTATION
• SUPPORT extension of ½-cent sales tax to support regional transportation projects in
Maricopa County.
• SUPPORT the continued viability of Highway Users Revenue Fund (HURF) funding to
cities and towns.
ITEM 8. E.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: David Pock, Finance Director
Staff Contact Information: David Pock, Finance Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Professional Services Agreement 2022-043 with McGrath Consulting to conduct a
financial analysis of fire and emergency medical services with a total not-to-exceed amount of $40,000
and associated budget transfers.
Staff Summary (Background)
The Town of Fountain Hills expends $9.2 million annually on public safety services which accounts for
approximately 50 percent of the total operating budget. Following discussions with the Town Council at
the Council Retreat several months ago about public safety costs and various models of providing these
services, the Town Manager suggested undertaking an evaluation of Fountain Hill's police and fire needs
as well as reviewing long-term recommendations on service delivery options and costs. While the town
has enjoyed outstanding law enforcement services from Maricopa County Sheriff's Office and
fire/emergency medical services from Rural Metro, it is important for the town to periodically evaluate
these contractual services to ensure that the community is receiving the best available services at the
lowest cost.
Staff initiated a Request for Proposals (RFP) in September to solicit vendor responses to provide an
analysis of the Town's fire and emergency medical services. Vendors were asked to provide a proposal
that included a comprehensive cost analysis of the Town's contract with Rural Metro. Using that
information, the vendor will provide a comparison of costs between maintaining the current contract,
entering into an Intergovernmental Agreement with another municipality, and the anticipated costs of
the Town to provide these services directly to residents. The final document will include an executive
summary, methodology, cost analysis, relevant data and conclusions from similar studies, conclusions
and recommendations of the vendor.
Proposals were received on October 28th reviewed by a committee of four staff members. Each
proposal was reviewed and scored based on pre-determined criteria. As a result of that process,
McGrath Consulting was selected for recommendation to the Council. The attached Professional
Services Agreement with McGrath Consulting is for an aggregate amount not to exceed $40,000. As part
of the evaluation of fire and emergency medical services, the firm will interview individual members of
the Town Council and key stakeholders. The firm will also hold one or more public meetings with the
public to seek input regarding the provision of fire department services in Fountain Hills.
public to seek input regarding the provision of fire department services in Fountain Hills.
Related Ordinance, Policy or Guiding Principle
Town Procurement Code
Town Financial Policies
Risk Analysis
The recommended contract cost for the evaluation of fire and emergency medical services is $40,000,
which is less than one percent of the total annual cost ($4,286,584) of services in FY 21-22 provided by
Rural Metro. The findings and recommendations from the evaluation of the Fire Department will serve
the town well in making future decisions regarding the delivery of fire and emergency medical services
in Fountain Hills for the next several years.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of Professional Services Agreement 2022-043.
SUGGESTED MOTION
MOVE to approve Professional Services Agreement 2022-043 with McGrath Consulting and the
associated budget transfers.
Fiscal Impact
Fiscal Impact:$40,000
Budget Reference:Contingency
Funding Source:General Fund
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Attachments
2022-043 Fire Services
2022-043 Fire Services Exhibit A
Budget Transfer
Form Review
Inbox Reviewed By Date
Finance Director (Originator)David Pock 11/04/2021 06:24 PM
Town Attorney Aaron D. Arnson 11/04/2021 08:35 PM
Town Manager Grady E. Miller 11/08/2021 08:33 AM
Form Started By: David Pock Started On: 10/27/2021 11:11 AM
Final Approval Date: 11/08/2021
1
Contract No. 2022-043
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MCGRATH CONSULTING GROUP, INC.
THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into as
of November 16, 2021, between the Town of Fountain Hills, an Arizona municipal corporation
(the “Town”) and McGrath Consulting Group, Inc., a(n) Illinois corporation (the “Vendor”).
RECITALS
A. The Town issued a Request for Proposals, RFP No. 2022-006/Financial Analysis—
Fire Department (the “RFP”), a copy of which is on file with the Town and incorporated herein by
reference, seeking proposals from vendors interested in providing professional services consisting
of consulting Financial Analysis of Fire Department Operations and Alternatives (the “Services”).
B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”),
attached hereto as Exhibit A and incorporated herein by reference.
C. The Town desires to enter into an Agreement with the Vendor to perform the
Services, as set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Town and the Vendor hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set forth
above and shall remain in full force and effect until November 15, 2022 (the “Initial Term”), unless
terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this
Agreement may be renewed for up one successive one-year term (each, a “Renewal Term”) if: (i)
it is deemed in the best interests of the Town, subject to availability and appropriation of funds for
renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor
requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town
approves the additional one-year term in writing (including any price adjustments approved as part
of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may
be withheld by the Town for any reason. The Vendor’s failure to seek a renewal of this Agreement
shall cause this Agreement to terminate at the end of the then-current term of this Agreement;
provided, however, that the Town may, at its discretion and with the agreement of the Vendor,
elect to waive this requirement and renew this Agreement. The Initial Term and all Renewal
2
Terms, if any, are collectively referred to herein as the “Term.” Upon renewal, the terms and
conditions of this Agreement shall remain in full force and effect.
2. Scope of Work. Vendor shall provide the Services as set forth in the Proposal
attached hereto as Exhibit A and incorporated herein by reference.
3. Compensation. The Town shall pay the Vendor an amount not to exceed $40,000,
at the rates set forth in the Fee Proposal attached hereto as Exhibit B and incorporated herein by
reference. The aggregate amount per renewal term shall not exceed $40,000 in any case unless the
Agreement is affirmed and ratified via an executed amendment. All remaining terms and
conditions of the Agreement shall remain in full force and effect.
4. Payments. The Town shall pay the Vendor according to the timeline in Exhibit A,
based upon work performed and completed to date, and upon submission and approval of invoices.
All invoices shall document and itemize all work completed to date. Each invoice statement shall
include a record of time expended and work performed in sufficient detail to justify payment. This
Agreement must be referenced on all invoices.
5. Documents. All documents, including any intellectual property rights thereto,
prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town.
6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable
of and devoted to the successful performance of the Services under this Agreement. Vendor agrees
to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to
hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement
of the Services to be performed under this Agreement, key personnel shall not be removed or
replaced without prior written notice to the Town. If key personnel are not available to perform
the Services for a continuous period exceeding 30 calendar days, or are expected to devote
substantially less effort to the Services than initially anticipated, Vendor shall immediately notify
the Town of same and shall, subject to the concurrence of the Town, replace such personnel with
personnel possessing substantially equal ability and qualifications.
7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by
the Town at reasonable times during Vendor’s performance. The Vendor shall provide and
maintain a self-inspection system that is acceptable to the Town.
8. Licenses; Materials. Vendor shall maintain in current status all federal, state and
local licenses and permits required for the operation of the business conducted by the Vendor. The
Town has no obligation to provide Vendor, its employees or subcontractors any business
registrations or licenses required to perform the specific services set forth in this Agreement. The
Town has no obligation to provide tools, equipment or material to Vendor.
9. Performance Warranty. Vendor warrants that the Services rendered will conform
to the requirements of this Agreement and with the care and skill ordinarily used by members of
the same profession practicing under similar circumstances at the same time and in the same
locality.
3
10. Indemnification. To the fullest extent permitted by law, the Vendor shall
indemnify, defend and hold harmless the Town and each council member, officer, employee or
agent thereof (the Town and any such person being herein called an “Indemnified Party”), for,
from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but
not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to
which any such Indemnified Party may become subject, under any theory of liability whatsoever
(“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are
caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions,
breach of contract, in connection with the work or services of the Vendor, its officers, employees,
agents, or any tier of subcontractor in the performance of this Agreement. 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.
11. Insurance.
11.1 General.
A. Insurer Qualifications. Without limiting any obligations or
liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter
stipulated minimum insurance with insurance companies authorized to do business in the
State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, 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 Agreement 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
Vendor. The Town reserves the right to review any and all of the insurance policies and/or
endorsements cited in this Agreement but has no obligation to do so. Failure to demand
such evidence of full compliance with the insurance requirements set forth in this
Agreement or failure to identify any insurance deficiency shall not relieve Vendor from,
nor be construed or deemed a waiver of, its obligation to maintain the required insurance
at all times during the performance of this Agreement.
C. Additional Insured. All insurance coverage, 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
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees as Additional Insured as specified under the respective coverage sections of this
Agreement.
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 Agreement are satisfactorily performed, completed and formally accepted by the
Town, unless specified otherwise in this Agreement.
4
E. Primary Insurance. Vendor’s insurance shall be primary insurance
with respect to performance of this Agreement and in the protection of the Town as an
Additional Insured.
F. Claims Made. In the event any insurance policies required by this
Agreement 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, except for Professional Liability, including
Workers’ Compensation insurance, shall contain a 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 Vendor. Vendor 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 applicable with
respect to the policy limits provided to the Town. Vendor shall be solely responsible for
any such deductible or self-insured retention amount.
I. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Vendor shall execute written agreements with its subcontractors
containing the indemnification provisions set forth in this Agreement and insurance
requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible
for executing any agreements with its subcontractors and obtaining certificates of insurance
verifying the insurance requirements.
J. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Vendor will provide the Town with suitable evidence of insurance
in the form of certificates of insurance and a copy of the declaration page(s) of the insurance
policies as required by this Agreement, issued by Vendor’s insurance 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 Agreement and that
such coverage and provisions are in full force and effect. Confidential information such as
the policy premium may be redacted from the declaration page(s) of each insurance policy,
provided that such redactions do not alter any of the information required by this
Agreement. The Town shall reasonably rely upon the certificates of insurance and
declaration page(s) of the insurance policies as evidence of coverage but such acceptance
and reliance shall not waive or alter in any way the insurance requirements or obligations
of this Agreement. If any of the policies required by this Agreement expire during the life
of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and
5
declaration page(s) to the Town 30 days prior to the expiration date. All certificates of
insurance and declarations required by this Agreement shall be identified by referencing
the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed
for all certificates or declarations received without the appropriate RFP number and title or
a reference to this Agreement, as applicable. Additionally, certificates of insurance and
declaration page(s) of the insurance policies submitted without referencing the appropriate
RFP number and title or a reference to this Agreement, as applicable, will be subject to
rejection and may be returned or discarded. Certificates of insurance and declaration
page(s) 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) Vendor’s insurance shall be primary insurance with respect
to performance of this Agreement.
(3) All policies, except for Professional Liability, 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 Vendor under this Agreement.
(4) ACORD certificate of insurance form 25 (2014/01) is
preferred. If ACORD certificate of insurance form 25 (2001/08) 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.
11.2 Required Insurance Coverage.
A. Commercial General Liability. Vendor 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
6
limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims
arising out of the performance of this Agreement, 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 II) 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 subsection, such Excess insurance shall be
“follow form” equal or broader in coverage scope than underlying insurance.
B. Vehicle Liability. Vendor shall maintain Business Automobile
Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired
and non-owned vehicles assigned to or used in the performance of the Vendor’s work or
services under this Agreement. 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 Agreement, 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 subsection, such Excess insurance shall be “follow form” equal or broader in coverage
scope than underlying insurance.
C. Professional Liability. If this Agreement is the subject of any
professional services or work, or if the Vendor engages in any professional services or
work in any way related to performing the work under this Agreement, the Vendor shall
maintain Professional Liability insurance covering negligent errors and omissions arising
out of the Services performed by the Vendor, or anyone employed by the Vendor, or
anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally
liable, with an unimpaired liability insurance limit of $2,000,000 each claim and
$2,000,000 annual aggregate.
D. Workers’ Compensation Insurance. Vendor shall maintain
Workers’ Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Vendor’s employees engaged in the performance of work
or services under this Agreement 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.
11.3 Cancellation and Expiration Notice. Insurance required herein shall not
expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town.
12. Termination; Cancellation.
12.1 For Town’s Convenience. This Agreement is for the convenience of the
Town and, as such, may be terminated without cause after receipt by Vendor of written notice by
7
the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services
performed to the termination date.
12.2 For Cause. If either party fails to perform any obligation pursuant to this
Agreement and such party fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the non-defaulting party, such party will be in default. In the event of
such default, the non-defaulting party may terminate this Agreement immediately for cause and
will have all remedies that are available to it at law or in equity including, without limitation, the
remedy of specific performance. If the nature of the defaulting party’s nonperformance is such
that it cannot reasonably be cured within 30 days, then the defaulting party will have such
additional periods of time as may be reasonably necessary under the circumstances, provided the
defaulting party immediately (A) provides written notice to the non-defaulting party and (B)
commences to cure its nonperformance and thereafter diligently continues to completion the cure
of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of
such termination for cause, payment shall be made by the Town to the Vendor for the undisputed
portion of its fee due as of the termination date.
12.3 Due to Work Stoppage. This Agreement may be terminated by the Town
upon 30 days’ written notice to Vendor 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
Vendor for the undisputed portion of its fee due as of the termination date.
12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ.
REV. STAT. § 38-511. The Town may cancel this Agreement 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 Agreement on behalf of the Town or any of its
departments or agencies is, at any time while this Agreement or any extension of this Agreement
is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any
other party of this Agreement with respect to the subject matter of this Agreement.
12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this
Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future
employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent
or representative of the Vendor to any officer, agent or employee of the Town for the purpose of
securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this
provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and
withhold from the Vendor an amount equal to 150% of the gratuity.
12.6 Agreement Subject to Appropriation. This Agreement is subject to the
provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of
this Agreement for payment of funds by the Town shall be effective when funds are appropriated
for purposes of this Agreement and are actually available for payment. The Town shall be the sole
judge and authority in determining the availability of funds under this Agreement and the Town
shall keep the Vendor fully informed as to the availability of funds for this Agreement. The
obligation of the Town to make any payment pursuant to this Agreement is a current expense of
the Town, payable exclusively from such annual appropriations, and is not a general obligation or
8
indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the
amounts as set forth in this Agreement during any immediately succeeding fiscal year, this
Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall
be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. 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 Vendor acknowledges and agrees that the
Services provided under this Agreement are being provided as an independent contractor, not as
an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to
workers’ compensation benefits from the Town. The Town does not have the authority to
supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and
not the Town, shall determine the time of its performance of the services provided under this
Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit
A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing
its profession elsewhere. Town and Vendor do not intend to nor will they combine business
operations under this Agreement.
13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of
the State of Arizona and suit pertaining to this Agreement may be brought only in courts in
Maricopa County, Arizona.
13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all
times during the performance of its duties under this Agreement ensure that it and any person for
whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations,
ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A)
existing and future Town and County ordinances and regulations; (B) existing and future State and
Federal laws; and (C) existing and future Occupational Safety and Health Administration
standards.
13.4 Amendments. This Agreement may be modified only by a written
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Vendor.
13.5 Provisions Required by Law. Each and every provision of law and any
clause required by law to be in this Agreement 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, this Agreement will promptly be physically
amended to make such insertion or correction.
13.6 Severability. The provisions of this Agreement 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 this Agreement which may remain in effect without
the invalid provision or application.
9
13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement
represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and
superseded by this Agreement. No representations, warranties, inducements or oral agreements
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 Agreement. This Agreement shall be construed and interpreted according to its plain meaning,
and no presumption shall be deemed to apply in favor of, or against the party drafting this
Agreement. The parties acknowledge and agree that each has had the opportunity to seek and
utilize legal counsel in the drafting of, review of, and entry into this Agreement.
13.8 Assignment; Delegation. No right or interest in this Agreement shall be
assigned or delegated by Vendor without prior, written permission of the Town, signed by the
Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision
shall be a breach of this Agreement by Vendor.
13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any
other party to furnish any of the material or services specified herein without the prior written
approval of the Town. The Vendor is responsible for performance under this Agreement whether
or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any
subcontract shall be a material breach of this Agreement by Vendor.
13.10 Rights and Remedies. No provision in this Agreement 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 Agreement. The failure of
the Town to insist upon the strict performance of any term or condition of this Agreement or to
exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the
Town’s acceptance of and payment for services, shall not release the Vendor from any
responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a
waiver of any right of the Town to insist upon the strict performance of this Agreement.
13.11 Attorneys’ Fees. In the event either party brings any action for any relief,
declaratory or otherwise, arising out of this Agreement or on account of any breach or default
hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’
fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall
be deemed to have accrued on the commencement of such action and shall be enforced whether or
not such action is prosecuted through judgment.
13.12 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.
13.13 Offset.
A. Offset for Damages. In addition to all other remedies at law or
equity, the Town may offset from any money due to the Vendor any amounts Vendor owes
10
to the Town for damages resulting from breach or deficiencies in performance or breach of
any obligation under this Agreement.
B. Offset for Delinquent Fees or Taxes. The Town may offset from
any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees,
transaction privilege taxes and property taxes, including any interest or penalties.
13.14 Notices and Requests. Any notice or other communication required or
permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S.
Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to
a recognized and reputable overnight delivery service, to the address set forth below:
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Aaron D. Arnson, Town Attorney
If to Vendor: McGrath Consulting Group, Inc.
P.O. Box 190
Wonder Lake, Il. 60097
Attn: Ronald Moser
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 subsection. Notices shall be deemed
received (A) when delivered to the party, (B) three business days after being placed in the U.S.
Mail, properly addressed, with sufficient postage or (C) the following business day after being
given to a recognized overnight delivery service, with the person giving the notice paying all
required charges and instructing the delivery service to deliver on the following business day. If
a copy of a notice is also given to a party’s counsel or other recipient, the provisions above
governing the date on which a notice is deemed to have been received by a party shall mean and
refer to the date on which the party, and not its counsel or other recipient to which a copy of the
notice may be sent, is deemed to have received the notice.
13.15 Confidentiality of Records. The Vendor shall establish and maintain
procedures and controls that are acceptable to the Town for the purpose of ensuring that
information contained in its records or obtained from the Town or from others in carrying out its
obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or
employees, except as required to perform Vendor’s duties under this Agreement. Persons
requesting such information should be referred to the Town. Vendor also agrees that any
11
information pertaining to individual persons shall not be divulged other than to employees or
officers of Vendor as needed for the performance of duties under this Agreement.
13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors
are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s
books, records, correspondence, accounting procedures and practices, and any other supporting
evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’
employees who perform any work or services pursuant to this Agreement (all of 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 (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and
its subcontractors’ actual costs (including direct and indirect costs and overhead allocations)
incurred, or units expended directly in the performance of work under this Agreement and (B)
evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer
sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to
audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights
to keep such Records confidential. For the purpose of evaluating or verifying such actual or
claimed costs or units expended, the Town shall have access to said Records, even if located at its
subcontractors’ facilities, from the effective date of this Agreement for the duration of the work
and until three years after the date of final payment by the Town to Vendor pursuant to this
Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate
workspace so that the Town can conduct audits in compliance with the provisions of this
subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of
intended audits. Vendor shall require its subcontractors to comply with the provisions of this
subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement.
13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. §
41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws
and regulations that relate to their employees and their compliance with the E-verify requirements
under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such
warranty shall be deemed a material breach of this Agreement and may result in the termination
of this Agreement by the Town.
13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for
the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in
ARIZ. REV. STAT. § 35-393, of Israel.
13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity
among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the
documents shall govern in the order listed herein.
13.20 Non-Exclusive Contract. This Agreement is entered into with the
understanding and agreement that it is for the sole convenience of the Town. The Town reserves
the right to obtain like goods and services from another source when necessary.
[SIGNATURES ON FOLLOWING PAGES]
12
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MCGRATH CONSULTING GROUP, INC.
[Consultant’s Proposal]
See following pages.
Town of Fountain Hills
Admin-Procurement
Robert Durham, Procurement Officer
16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
RESPONSE DEADLINE: October 28, 2021 at 3:00 pm
Report Generated: Tuesday, November 2, 2021
McGrath Consulting Group Proposal
CONTACT INFORMATION
Company:
McGrath Consulting Group
Email:
ron@mcgrathconsulting.com
Contact:
Ronald Moser
Address:
P.O. Box 190
Wonder Lake, IL 60097
Phone:
N/A
Website:
www.mcgrathconsulting.com
Submission Date:
Oct 28, 2021 2:26 PM
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 2
ADDENDA CONFIRMATION
No addenda issued
QUESTIONNAIRE
1. Certification
By confirming questions under this section, the Vendor certifies:
NO COLLUSION*
Pass
The submission of the Proposal did not involve collusion or other anti-competitive practices.
Confirmed
NO DISCRIMINATION*
Pass
It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246.
Confirmed
NO GRATUITY*
Pass
It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gi ft, loan,
gratuity, special discount, trip favor or service to a Town employee, officer or agent in connection with the submitted Proposal. It
(including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of
disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 3
with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager,
Assistant Town Managers, Department Heads, and other Town staff. All contact must be addressed to the Town’s Procurement Agent,
except for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to influence the selec tion process by any
means shall void the submitted Proposal and any resulting Agreement.
Confirmed
FINANCIAL STABILITY*
Pass
It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential co sts resulting
from an award of the Agreement.
Confirmed
NO SIGNATURE/FALSE OR MISLEADING STATEMENT*
Pass
The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the
authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or
misleading statement, shall void the submitted Proposal and any resulting Agreement.
Confirmed
PROFESSIONAL SERVICES AGREEMENT*
Pass
In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services
Agreement including the Scope of Work and other Exhibits.
Confirmed
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 4
REFERENCE CHECKS*
Pass
References will be checked, and it is Vendor’s responsibility to ensure that all information is accurate and current. Vendor authorizes
the Town’s representative to verify all information from these references and releases all those concerned from any liability in
connection with the information they provide. Inability of the Town to verify references shall result in the Proposal being considered
non-responsive.
Confirmed
GENERAL INFORMATION*
Pass
A. One page cover letter as described in the section titled "RFP Submission Process", the subsection titled "Required Submittal".
B. Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address,
identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole
proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under
this section for each member. If a limited liability company, provide the name of the member or members authorized to act on
the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the
corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of
the person to contact concerning the Proposal.
C. Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that
supports the Vendor’s authority to provide services in Arizona.
D. Provide a general description of the Vendor’s organization, including years in business.
E. Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last
five years. Briefly describe the circumstances and the outcome.
F. Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly d escribe
the circumstances and the outcome.
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 5
Fountain_Hills_AZ_fire_FINANCIAL_ANALYSIS-FIRE_1.2_(1).pdfRequired_sections_within_the_proposal.pdf
EXPERIENCE AND QUALIFICATIONS OF THE VENDOR*
Pass
A. Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a
similar size to the Town, specifically relating experience with respect to Financial Analysis --Fire Department.
B. Vendor must demonstrate successful completion of at least three similar projects within the past 60 months. For the purpose
of this Solicitation, “successful completion” means completion of a project within the established schedule and budget and
“similar projects” resemble this project in size, nature and scope. Provide a list of at least three organizations for which you
successfully completed a similar project. This list shall include, at a minimum, the following information:
1. Name of company or organization.
2. Contact name.
3. Contact address, telephone number and e-mail address.
4. Type of services provided.
5. Dates of contract initiation and expiration.
Required_sections_within_the_proposal.pdf
KEY POSITIONS*
Pass
A. Identify each key personnel member that will render services to the Town including title and relevant experience required,
including the proposed project manager and project staff.
B. Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of
what their role will be in providing services to the Town.
C. If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for
providing supervision must be included.
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 6
D. Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in
this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward
the Proposal page limit. However, each resume shall not exceed two pages in length.
Required_sections_within_the_proposal.pdf
PROJECT APPROACH*
Pass
A. Describe the Vendor’s approach to performing the required Services in the section titled Scope of Work, and its approach to
contract management, including its perspective and experience on partnering, customer service, quality control, scheduling
and staff.
B. Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include
rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s
Representatives.
Required_sections_within_the_proposal.pdf
PROJECT SCHEDULE*
Pass
Provide a project schedule showing key project milestones and deliverables. The schedule shall demonstrate Vendor’s ability to meet
the designated milestones as listed below. All Services of the successful Vendor must reach full completion and shall not exceed a 60
day period after the Notice to Proceed has been issued by Town. Assumptions used in developing the schedule shall be identified and
at a minimum the proposed schedule shall include the following dates.
A. Contract Award Date
B. Notice to Proceed Date
C. Proposed Kick-Off Meeting
D. Phase I Report Due Date
PROPOSAL DOCUMENT REPORT
RFP No. 2022-006
Financial Analysis--Fire Department
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Fire Department
Page 7
E. Phase I Report Presentation Date
F. Phase II Implementation Start Date
G. Project Completion Date
Required_sections_within_the_proposal.pdf
PRICING*
Pass
Vendor shall submit the same number of copies of the Fee Proposal as described in section titled "RFP Submission Process" subsection
titled "Pricing" in a separate, sealed envelope enclosed with the Vendor’s Proposal with the signature of the representative of the
Vendor who is authorized to make such an offer. The Fee Proposal must be provided in the format attached as Exhibit C of the
Professional Services Agreement. The Fee Proposal shall list the individual cost for each of the program expenses and shall be
provided in a spreadsheet format to enable the Town staff to determine (1) total labor hours, (2) key team member(s) proposed for
each task and sub-task and (3) number of management, engineering, technical, drafting and support personnel hours proposed for
the project. The hourly rate, name of the team member and staff classification shall be included in the spreadsheet. Identify all other
costs to be billed to the project, including project expenses (no mark-up on expenses will be allowed) and subcontractor fees.
Confirmed
PRICING DOCUMENT
Pass
Exhibit_C_Pricing_Fire.pdf
Financial Analysis-
Fire Department
Operations
Submitted By:
McGrath Consulting Group
Tim McGrath, Ph.D, Project Manager
tim@mcgrathconsulting.com
October 28, 2021
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page i
October 28, 2021
Rob Durham, Procurement Administrator
16705 E. Avenue of the Fountains
Fountain Hills, Arizona 85268
Thank you for the opportunity to submit our qualifications to conduct a Financial Analysis – Fire
Department Operations, for the Town of Fountain Hills. This proposal outlines our understanding
of the project.
Why should you choose McGrath Consulting Group for this Financial Analysis?
We do not ask you to adapt to an off-the-shelf assessment.
❖ We find that each community has unique qualities, culture and needs.
❖ We work hard to understand your goals, community culture, departmental successes, and
challenges so we can help you sustain and improve the fire department operations for the
Town.
Our consultants are highly qualified and nationally respected professionals:
❖ Our consultants have professional and consulting experience in all aspects of fire
department operations and administration.
We are experienced:
❖ After 21 years in business, we have over 350 clients in 39 states. Thus, we have assisted
with a wide range of public sector challenges in the arena of public safety.
Detailed information regarding our firm, consultants, methodology, and required information are
presented within this proposal. As you review the proposal, if you have any questions or require
additional information, please do not hesitate to ask.
Sincerely,
Tim McGrath, Ph.D.
Tim McGrath, Ph.D
Project Manager
CEO of McGrath Consulting Group (authorized person to bind vendor)
McGrath Consulting Group, Inc.
P.O. Box 190
Wonder Lake, IL 60097
tim@mcgrathconsulting.com
Corporate Office: (815) 728-9111
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page i
TABLE OF CONTENTS
Firm Profile ......................................................................................................................................... 4
Firm Expertise ............................................................................................................................................. 4
Scope of SERVICES .......................................................................................................................... 4
Assessment Strategy and Methodology ......................................................................................... 5
Project Orientation ...................................................................................................................................... 5
Data Gathering, Assessment, and Analysis ........................................................................................... 5
Tours & Work Observations .................................................................................................................. 5
Stakeholder Interviews .......................................................................................................................... 6
Data Analysis .......................................................................................................................................... 6
Reports and Presentation .......................................................................................................................... 6
Town of Fountain Hills Staff Time ................................................................................................... 6
Firm Capacity and Timeline .............................................................................................................. 6
Project Management and Key Consultant Team ............................................................................ 7
Tim McGrath, Ph.D., Principle/CEO, Project Manager .............................................................................. 8
Craig A. Haigh, Lead Fire Consultant ......................................................................................................... 8
Malayna Halvorson Maes, Lead Human Resources Consultant ................................................................ 9
Joseph M. Heim, Fire Consultant ............................................................................................................ 10
Staff Assignments and Additional Consultants .................................................................................... 10
References – Local Government Clients ...................................................................................... 11
Final Word ......................................................................................................................................... 11
Exhibit C: Pricing ............................................................................................................................. 11
Notice: ............................................................................................................................................... 11
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 4
FIRM PROFILE
McGrath Consulting Group, Inc.
is an organization that
specializes in public sector
consulting predominately in the
fields of law enforcement, fire,
emergency medical services
(EMS), communications and
human resources. The principals
of the company have over 50
years of public sector
experience.
We have two distinct divisions
within the company: Public
Safety – overseen by Dr. Tim
McGrath and Human Resources
– overseen by Dr. Victoria
McGrath. We have found that
having expertise in human
resources is beneficial in public
safety studies. Thus, the
Fire/EMS and Police consultants
have access to experts in human
resources to address the unique
laws and best practices
governmental entities face with
their human capital.
FIRM EXPERTISE
McGrath Consulting has been working with public-sector organizations of all types for the past 20
years. The Consultant’s assigned to this project have worked with McGrath Consulting on
numerous fire service and public safety organizational studies and audits.
SCOPE OF SERVICES
Working with town administration and other stakeholders, we will conduct a financial analysis of fire
department operations to determine if the town should renew the current contract with Rural Metro,
seek an intergovernmental agreement (IGA) with another municipality, or establish its own in-
house fire department.
Our work for your organization will include a comprehensive study and cost analysis of all sections
as described in section 2, including all subcategories, SCOPE OF WORK, in the town’s request for
proposal.
This work will be accomplished in a participatory environment whereby McGrath consultants
engage and listen to the town administration and stakeholders, is sensitive to the unique qualities
and needs of your town and develops a plan and walks you through the recommendations.
Company Name McGrath Consulting Group
Parent
Organization
McGrath Consulting Group, Inc.
Established May 1, 2000
Years of Service 21
Type of Firm Private Corporation
Illinois, USA
Company Mailing
Address
P.O. Box 190
Wonder Lake, IL 60097
Company Physical
Address
7614 Barnard Mill Rd
Wonder Lake, IL 60097
Website www.mcgrathconsulting.com
Chief Executive
Officer and
Authorized
Representative
Dr. Tim McGrath, Ph.D.
Email Address tim@mcgrathconsulting.com
Phone Number (815) 728-9111
Fax Number (815) 331-0215
Insurance State Farm: Auto, General Liability
Travelers: Workers Compensation
Accord: Professional Liability
Chubb: Cyber Security Liability
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 5
ASSESSMENT STRATEGY AND METHODOLOGY
Our methodology and approach are characterized by a systematic, logical series of tasks aimed at
assuring thoroughness, consistency, and objectivity. Our goal is to meet the needs of your
organization. Therefore, the proposal steps can be discussed and adjusted to meet the needs of the
Town of Fountain Hills. The following is a visual summary of the project plan. A detailed methodology
and work plan follows.
PROJECT ORIENTATION
The McGrath consulting team members will begin the project by conferring with the designated
Project Manager for the town and other persons you designate. We will review the planned timeline
and deliverables and confirm expectations from all partners. A clearly defined game plan will
result in a successful solution for your organization.
A list of information, data sets and documents needed will be requested prior to the first site visit.
Based on our initial meeting with your team and the data and documents gathered, our team of
consultants will schedule the onsite visits.
DATA GATHERING, ASSESSMENT, AND ANALYSIS
TOURS & WORK OBSERVATIONS
Our consultant team may use tours of the jurisdiction, and other appropriate facilities in order to
thoroughly understand fire department needs and current services in the town. Our team may also
observe fire service personnel performing their duties, responding to calls, participating in
training/drills, and other meetings/activities to understand the functional relationships, interactions
and operations of the service provided by the contracting agency.
Project Orientation•Confirmation of Scope
of Work and
Expectations of the
Town
•Confirm Timeline
•Schedule initial
Stakeholder Meetings
•Collect Contract and
Town data and
documents Data Gathering, Assessment, Analysis •Onsite Tours and
Observations
•Stakeholder Interviews
•Data Analysis and
Assessment
Reports and Presentation•Prepare Report of
Findings/
Recommendations
•Presentation of
Findings/
Recommendations
•Implementation
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 6
STAKEHOLDER INTERVIEWS
We will conduct individual interviews, to gather the most comprehensive information.
❖ In-depth, individual interviews with appropriate town officials.
❖ Individual interviews with contracting agency personnel.
❖ Individual interviews with other local fire agencies.
DATA ANALYSIS
Significant time will be spent both on-site and off-site reviewing documents from the targeted areas
and analyzing gathered data, interview results, and fire service metrics and statistics.
REPORTS AND PRESENTATION
During the final phase of the project, progress summaries and issued discovered will be developed
and provided to the town’s project manager. The draft report will then be developed which will
provide an overview of identified issues and recommendations for changes. The consultants will help
prioritize the recommendations and lay out an implementation plan.
Consulting team members will confer via conference call, video conferencing, or other means with
the town’s project manager and other identified officials to review and address questions and
concerns from the report. After appropriate modifications are made, the final report will be provided
to the town project manager. McGrath consultants are available to confer with any stakeholders to
address questions again via conference call, video conferencing, etc.
TOWN OF FOUNTAIN HILLS STAFF TIME
Since we work closely with our clients, support on this project is critical but not intrusive. Initially, a
list of items required for analysis or understanding is submitted to a designated person. Further,
assistance is requested in setting up interviews with individuals within the town and service
providers, and/or providing contact information. Additionally, support is needed to answer
questions or address questions/concerns/issues of the consulting team. These are usually
completed through telephone or email conversations.
FIRM CAPACITY AND TIMELINE
The consultants can begin the project immediately upon contract execution. We would anticipate
the draft report to be completed within 120 days thereafter. Factors that can impact the timeline
include town administration and employee availability for meetings and interview as well as timely
receipt of requested data.
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 7
Activity Month 1 Month 2 Month 3 Month 4
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Data Request to Client
(allow 2-3 weeks)
Project orientation/planning
Onsite Visit
(Data Review on Site, Stakeholder
Interviews, On-site Assessments Tours,
Data Analysis)
Virtual Interviews not conducted onsite
Assessment and Analysis
Provide Draft Reports for Town review
Address questions/concerns
Submit Final Report
PROJECT MANAGEMENT AND KEY CONSULTANT TEAM
All consultants are McGrath consultants. There is no subcontracting.
The Consultants were selected for this project based upon their areas of expertise, specialties, and
related project experience. We operate under the philosophy of total team involvement and each
team member has experience in all facets of project work and will work together to meet the goals
of your project. Further, we have the flexibility to involve other consultants with our organization to
bring their unique perspective and expertise as needed. Primary members of the team for the Town
of Fountain Hills are provided.
Dr. Tim McGrath
Principle
Project Manager
Craig A. Haigh
Lead Fire Consultant
Joseph Heim
Fire Consultant
Malayna Halvorson Maes
Lead HR Consultant
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 8
TIM MCGRATH, PH.D., PRINCIPLE/CEO, PROJECT MANAGER
As CEO of McGrath Consulting Group, Inc. Dr. Tim McGrath is the visionary of the organization.
His 33 years of experience in Fire and EMS as well as his ability to develop innovative solutions
makes McGrath Consulting different than other firms. Dr. McGrath started his career as a volunteer
firefighter and went through the transition of an informal group of civic minded individuals to an
integral department within the Village of Gurnee, IL. During his tenure with Gurnee, the Village
rapidly grew from a small bedroom community to one that hosts a Six Flag Great America, and at
the time, the world’s largest shopping center – 2.2 million square feet under one roof. Dr. McGrath
was in administrative positions during both of the ventures, so he understands the opportunities
and challenges growth brings to the fire service. Dr. McGrath was part of the first paramedic pilot
program in the State of Illinois. Through his leadership, he brought in the first non-education-based
paramedic training program in the City of Brookfield fire department. Thus, the City of Brookfield
Fire Department became a profit center training all paramedic personnel for Waukesha County, WI.
Dr. McGrath’s passion is in consolidation of services. This can entail a wide range of relationships
from simply sharing resources to full consolidation and integration of services. Thus, conducting an
analysis of each department, Dr. McGrath is able to identify the areas for greater cooperative
efforts that continue to provide quality services in a cost-efficient manner. Through his experience
and innovative mind set, Dr. McGrath is able to identify and address key issues – current and
future. It is through this combination of education and work experience, as well as working with
over 170 organizations in 39 states, he brings a vast amount of first-hand knowledge to the
assessment of emergency services.
Education
• Ph. D – Administrative Management, Walden University
o Dissertation: Attitudes on Consolidation in the Fire Service
• Master of Arts – Public Administration & Management, Webster University
• Bachelor of Science – Industrial Education College, University of Arizona – Stout
• Associate Degree – Fire Science Technology, College of Lake County
CRAIG A. HAIGH, LEAD FIRE CONSULTANT
Craig A. Haigh began his fire service career in 1983 as a volunteer in his hometown of Hampton
(IL). He served as Hampton’s volunteer fire chief from 1991 – 1995. During that time, he developed
and implemented their EMT-Intermediate/Advanced EMT program. In 1988 he was hired full time
as a firefighter with the City of Rock Island (IL) Fire Department. He ultimately was appointed as
their first EMS Coordinator and as such developed and implemented the department’s paramedic
program. He left Hampton and Rock Island in 1995 to become the first paid fire chief of the King
(NC) Volunteer Fire Department. There he was tasked with transitioning the all volunteer
department into a combination agency (volunteer and paid employees). While in King he served as
the primary architect responsible for merging the independent volunteer department into the City of
King making it a municipal government agency. He returned to Illinois in 2002 to serve as Fire
Chief/Director of Emergency Management for the Village of Hanover Park. He was the 2012 Illinois
Career Fire Chief of the Year.
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 9
Chief Haigh also works as a Field Staff Instructor with the University of Illinois Fire Service Institute
(IFSI) where he has been since 1995. In his work at the University of Illinois he is a regular partner
with IFSI Research and Skidmore College First Responder Health and Safety Laboratory. He is the
recipient of the 2019 International Association of Fire Chiefs - Chief Alan Brunacini Executive
Safety Award given for his work in developing operational practices based on scientific research in
an effort to reduce firefighter deaths and injuries due to cardiovascular/medical events.
In addition to his duties as Hanover Park’s Fire Chief/Director of Emergency Management, Chief
Haigh has served as the Interim Village Manager and was also tasked with the creation of the
Inspectional Services Division. This new division merged fire prevention, the building department,
and the health department into a single agency under the control of the fire department. He also
created, implemented, and has managed the Village’s strategic planning program.
Chief Haigh retired in July 2021 from full time service as a firefighter and now serves as a
consultant focusing on management and organizational leadership. He presents and speaks
internationally.
Education
• Master of Science – Executive Fire Service Leadership, Grand Canyon University
• Bachelor of Science – Fire and Safety Engineering
• Executive Fire Officer – United States National Fire Academy
Certifications
• Natioanlly Certified Paramedic
• Accredited Chief Fire Officer, Center for Public Safety Excellence
• Member of the Institute of Fire Engineers
MALAYNA HALVORSON MAES, LEAD HUMAN RESOURCES CONSULTANT
Malayna Halvorson Maes has served as a human resource professional in both the private and public
sectors for over 20 years. She worked previously in health care human resources, then as the Human
Resources Director and senior advisor for a large county in northwestern Arizona. Thus, she has
direct experience with the many challenges facing municipal employers. As a former Arizona Human
Resources Director, she is knowledgeable of all facets of local government, including law
enforcement. She has been active in a number of professional organizations and takes an active
role in defining the profession. During her tenure in governmental human resources, Ms. Maes was
a member and senior advisor to the organization’s executive leadership team. She was responsible
for the direction of all human resources functions, which included the coordination and execution of
executive level and director level searches for the organization.
Ms. Maes is a human resources member of the consulting team for police operational st udies and
audits and serves on the consulting team for police and fire executive leadership recruitments. She
is also the primary compensation consultant for the City of Marshfield, WI.
Education
Bachelor of Arts– Psychology, Luther College, Decorah, IA
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 10
Certification
Certified Compensation Professional (in process)
JOSEPH M. HEIM, FIRE CONSULTANT
Joseph M. Heim began his fire service career in 1993 as a volunteer in East Dubuque, Illinois. He
has served as the East Dubuque Fire Chief since 2001. During his time as fire chief, he has
implemented a multi-term strategic planning process, moved to promotional assessment center
testing for volunteer officer selection/promotion, implemented a paramedic ambulance transport
program and developed a live-burn training facility.
Chief Heim was hired in 2001 as a career firefighter with the Rock Island Arsenal Fire &
Emergency Services progressing. He currently serves as Fire Chief. Chief Heim held positions
within as training officer and as deputy fire chief prior to his promotion to the fire chief position.
Chief Heim is an expert in managing non-military department of defense fire departments with
Rock Island Arsenal being one of only two world wide that provide paramedic level transport
services. Chief Heim also works as a Field Staff Instructor for the University of Illinois Fire Service
Institute.
Education
• Associates Degree – Fire Science, Columbia Southern University
• Bachelors – Fire Administration, Columbia Southern University
Certifications
• Accredited Chief Fire Officer, Center for Public Safety Excellence.
Our team for this project includes highly qualified fire service experts and human resources
consultants with diverse professional backgrounds. Additional consultants from our firm may be
called upon to assist based on their subject matter expertise.
STAFF ASSIGNMENTS AND ADDITIONAL CONSULTANTS
All consultants will be dedicated to the project throughout the duration. McGrath Consulting Group,
Inc. can access approximately 27 staff members (principals, consultants, and support staff) that
may be used on any assessment depending on the area of expertise required.
McGrath Consulting Group, Inc. ♦ PO Box 190 ♦ Wonder Lake, IL 60097 ♦ 815-728-9111
www.mcgrathconsulting.com
Fountain Hills, Arizona – Financial Analysis – Fire Department Operations Page 11
REFERENCES – LOCAL GOVERNMENT CLIENTS
Our firm specializes in working with mid-sized fire service agencies. The following references are
listed and can be contacted. The complete listing of our clients may be viewed on our website at
www.mcgrathconsulting.com.
Skagway, Alaska
Fire Department Audit
Project Manager: Brad Ryan, Borough Manager
Phone/Email: (907) 612-1788 manager@skagway.org
Comprehensive audit of all department operations including assistance/recommendations related
to organizational structure reorganization and realignment. Recommendations are the
implementation process. An time-and-materials contract extension has been awarded to McGrath
Consulting Group for ongoing assistance during the reorganization process.
Amboy Fire Protection District, Illinois
Employee Handbook/Standard Operating Guidelines/Strategic Planning
Project Manager: Jeff Bryant, Fire Chief
Phone/Email: (815) 994-6184 jbryant9962@gmail.com
Developed the department’s employee handbook along with all personnel policies. Created the
department’s standard operating guidelines as well as the department’s strategic plan. All aspects
of these documents have been updated in a continued relationship with McGrath Consulting
Group.
City of O’Fallon, IL
Multiple Projects
Project Manager: Ms. Pamala Funk, Assistant City Administrator Ret.
Phone/Email: (618) 971-8662 email: pamalafunk@charter.net
Comprehensive fire department audit and master plan; fire station location master plan; executive
search Fire Chief; master plan EMS (3rd service).
FINAL WORD
This proposal outlines our methodology to meet your needs. We will work with you and your staff to
conduct an assessment that fits the requirements of the Town of Fountain Hills. Thank you for the
opportunity to be of service. Please feel free to contact us if you have any questions regarding this
proposal.
EXHIBIT C: PRICING
NOTICE:
As of the submittal of this proposal there are no addendums issued. Our firm does acknowledge
receipt of 60-day completion waiver requirement.
All required sections in the Request for Proposal issued by the Town of Fountain Hills
are contained within our Proposal.
McGrath Consulting Group
All required sections in the Request for Proposal issued by the Town of Fountain Hills
are contained within our Proposal.
McGrath Consulting Group
All required sections in the Request for Proposal issued by the Town of Fountain Hills
are contained within our Proposal.
McGrath Consulting Group
All required sections in the Request for Proposal issued by the Town of Fountain Hills
are contained within our Proposal.
McGrath Consulting Group
All required sections in the Request for Proposal issued by the Town of Fountain Hills
are contained within our Proposal.
McGrath Consulting Group
EXHIBIT C PRICING: TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN
OF FOUNTAIN HILLS AND McGRATH CONSULTING GROUP
(Fee Proposal)
By submission of the proposal, McGrath Consulting shows its intention to accept and contract
with the Town of Fountain Hills, Arizona. The fees listed below includes consulting professional
fees and administrative costs. Travel expenses are billed separately.
Financial Analysis-Fire Department: $34,892.00
TERMS OF PAYMENT
Payment will be made in three (3) installments:
$8,723 upon completion of the signed contract;
$17,446 upon submission of the draft report; and
$8,723 plus travel costs upon submission of the final report.
All invoices are due within 30 days of receipt. Proposal cost is good for a minimum of 90 days
from October 28, 2021. Dr. Tim McGrath is the individual with the authority to negotiate and
contractually bind McGrath Consulting in any type of negotiations and contracts.
THE FOLLOWING PRICING IS DISCOUNTED BY $4,290.00 IF THE FIRM OF McGRATH
CONSULTING GROUP IS CONTRACTED FOR BOTH POLICE AND FIRE-FINANCIAL
ANALYSIS
By submission of the proposal, McGrath Consulting shows its intention to accept and contract
with the Town of Fountain Hills, Arizona. The fees listed below includes consulting professional
fees and administrative costs. Travel expenses are billed separately.
Financial Analysis-Fire Department: $30,602.00
TERMS OF PAYMENT
Payment will be made in three (3) installments:
$7,651 upon completion of the signed contract;
$15,300 upon submission of the draft report; and
$7,651 plus travel costs upon submission of the final report.
All invoices are due within 30 days of receipt. Proposal cost is good for a minimum of 90 days
from October 28, 2021. Dr. Tim McGrath is the individual with the authority to negotiate and
contractually bind McGrath Consulting in any type of negotiations and contracts.
11/04/2021 18:20 |TOWN OF FOUNTAIN HILLS |P 1
DPock |BUDGET AMENDMENTS JOURNAL ENTRY PROOF |bgamdent
LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED
ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR____________________________________________________________________________________________________________________________________
YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND
2022 05 65 11/04/2021 BUA FD STUDY 1 1
1 FINAD 6402 FIN-ADMIN PROFESSIONAL FEES 50,500.00 40,000.00 90,500.00
100-10-10-105-100-0106-6402- FM GENAD 11/04/2021
2 GENAD 7010 GENERAL GOVERNMENT ADMIN CONTINGENCY 5,359,143.00 -40,000.00 5,319,143.00
100-10-15-110-100-0106-7010- TO FINAD 11/04/2021
** JOURNAL TOTAL 0.00
ITEM 8. F.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: David Pock, Finance Director
Staff Contact Information: David Pock, Finance Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Professional Services Agreement 2022-046 with Matrix Consulting to conduct a
financial analysis of law enforcement services with a total not-to-exceed amount of $79,000 and
associated budget transfer.
Staff Summary (Background)
The Town of Fountain Hills expends $9.2 million annually on public safety services which accounts for
approximately 50 percent of the total operating budget. Following discussions with the Town Council at
the Council Retreat several months ago about public safety costs and various models of providing these
services, the Town Manager suggested undertaking an evaluation of Fountain Hill's police and fire needs
as well as reviewing long-term recommendations on service delivery options and costs. While the town
has enjoyed outstanding law enforcement services from Maricopa County Sheriff's Office and
fire/emergency medical services from Rural Metro, it is important for the town to periodically evaluate
these contractual services to ensure that the community is receiving the best available services at the
lowest cost.
Staff initiated a Request for Proposals (RFP) in September to solicit vendor responses to provide an
analysis of the Town's law enforcement services. Vendors were asked to provide a proposal that
included a comprehensive cost analysis of the Town's contract with the Maricopa County Sheriff's
Office. Using that information, the vendor will provide a comparison of costs between maintaining the
current contract, entering into an Intergovernmental Agreement with another municipality, and the
anticipated costs of the Town to provide these services directly to residents. The final document will
include an executive summary, methodology, cost analysis, relevant data and conclusions from similar
studies, conclusions and recommendations of the vendor.
Proposals were received on October 28th reviewed by a committee of four staff members. Each
proposal was reviewed and scored based on pre-determined criteria. As a result of that process, Matrix
Consulting was selected for recommendation to the Council. The attached Professional Services
Agreement with Matrix Consulting is for an aggregate amount not to exceed $79,000. As part of the
evaluation of law enforcement services, the firm will interview individual members of the Town Council
and key stakeholders. The firm will also hold one or more public meetings with the public to seek input
regarding the provision of law enforcement services in Fountain Hills.
regarding the provision of law enforcement services in Fountain Hills.
Related Ordinance, Policy or Guiding Principle
Town Procurement Code
Town Financial Policies
Risk Analysis
The recommended contract cost for the evaluation of law enforcement services is $79,000, which is less
than 1.6 percent of the total annual cost ($5,043,000) of the Intergovernmental Agreement in FY 21-22
with Maricopa County. The findings and recommendations from the evaluation of law enforcement
services will serve the town well in making future decisions regarding the delivery of law enforcement
services in Fountain Hills for the next several years.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of Professional Services Agreement 2022-046.
SUGGESTED MOTION
MOVE to approve Professional Services Agreement 2022-046 with Matrix Consulting and the associated
budget transfer.
Fiscal Impact
Fiscal Impact:$79,000
Budget Reference:Contingency
Funding Source:General Fund
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Attachments
Agreement
2022-046 Exhibit A
Budget Transfer
Form Review
Inbox Reviewed By Date
Finance Director (Originator)David Pock 11/04/2021 06:24 PM
Town Attorney Aaron D. Arnson 11/04/2021 08:35 PM
Town Manager Grady E. Miller 11/08/2021 08:33 AM
Finance Director (Originator)David Pock 11/08/2021 03:22 PM
Town Attorney Aaron D. Arnson 11/09/2021 07:00 AM
Town Manager Grady E. Miller 11/09/2021 09:29 AM
Form Started By: David Pock Started On: 10/27/2021 11:11 AM
Final Approval Date: 11/09/2021
1
Contract No. 2022-046
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MATRIX CONSULTING GROUP, LTD.
THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into as
of November 16, 2021, between the Town of Fountain Hills, an Arizona municipal corporation
(the “Town”) and Matrix Consulting Group, LTD., a California corporation (the “Vendor”).
RECITALS
A. The Town issued a Request for Proposals, RFP No. 2022-005/Financial Analysis—
Law Enforcement (the “RFP”), a copy of which is on file with the Town and incorporated herein
by reference, seeking proposals from vendors interested in providing professional services
consisting of consulting Financial Analysis of Law Enforcement Operations and Alternatives (the
“Services”).
B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”),
attached hereto as Exhibit A and incorporated herein by reference.
C. The Town desires to enter into an Agreement with the Vendor to perform the
Services, as set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which
are incorporated herein by reference, the following mutual covenants and conditions, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Town and the Vendor hereby agree as follows:
1. Term of Agreement. This Agreement shall be effective as of the date first set forth
above and shall remain in full force and effect until November 15, 2022 (the “Initial Term”), unless
terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this
Agreement may be renewed for up one successive one-year term (each, a “Renewal Term”) if: (i)
it is deemed in the best interests of the Town, subject to availability and appropriation of funds for
renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor
requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town
approves the additional one-year term in writing (including any price adjustments approved as part
of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may
be withheld by the Town for any reason. The Vendor’s failure to seek a renewal of this Agreement
shall cause this Agreement to terminate at the end of the then-current term of this Agreement;
provided, however, that the Town may, at its discretion and with the agreement of the Vendor,
elect to waive this requirement and renew this Agreement. The Initial Term and all Renewal
2
Terms, if any, are collectively referred to herein as the “Term.” Upon renewal, the terms and
conditions of this Agreement shall remain in full force and effect.
2. Scope of Work. Vendor shall provide the Services as set forth in the Proposal
attached hereto as Exhibit A and incorporated herein by reference.
3. Compensation. The Town shall pay the Vendor an amount not to exceed $79,000,
at the rates set forth in the Fee Proposal attached hereto as Exhibit A and incorporated herein by
reference. The aggregate amount per renewal term shall not exceed $50,000 in any case unless the
Agreement is affirmed and ratified via an executed amendment. All remaining terms and
conditions of the Agreement shall remain in full force and effect.
4. Payments. The Town shall pay the Vendor monthly (and the Vendor shall invoice
monthly), based upon work performed and completed to date, and upon submission and approval
of invoices. All invoices shall document and itemize all work completed to date. Each invoice
statement shall include a record of time expended and work performed in sufficient detail to justify
payment. This Agreement must be referenced on all invoices.
5. Documents. All documents, including any intellectual property rights thereto,
prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town.
6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable
of and devoted to the successful performance of the Services under this Agreement. Vendor agrees
to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to
hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement
of the Services to be performed under this Agreement, key personnel shall not be removed or
replaced without prior written notice to the Town. If key personnel are not available to perform
the Services for a continuous period exceeding 30 calendar days, or are expected to devote
substantially less effort to the Services than initially anticipated, Vendor shall immediately notify
the Town of same and shall, subject to the concurrence of the Town, replace such personnel with
personnel possessing substantially equal ability and qualifications.
7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by
the Town at reasonable times during Vendor’s performance. The Vendor shall provide and
maintain a self-inspection system that is acceptable to the Town.
8. Licenses; Materials. Vendor shall maintain in current status all federal, state and
local licenses and permits required for the operation of the business conducted by the Vendor. The
Town has no obligation to provide Vendor, its employees or subcontractors any business
registrations or licenses required to perform the specific services set forth in this Agreement. The
Town has no obligation to provide tools, equipment or material to Vendor.
9. Performance Warranty. Vendor warrants that the Services rendered will conform
to the requirements of this Agreement and with the care and skill ordinarily used by members of
the same profession practicing under similar circumstances at the same time and in the same
locality.
3
10. Indemnification. To the fullest extent permitted by law, the Vendor shall
indemnify, defend and hold harmless the Town and each council member, officer, employee or
agent thereof (the Town and any such person being herein called an “Indemnified Party”), for,
from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but
not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to
which any such Indemnified Party may become subject, under any theory of liability whatsoever
(“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are
caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions,
breach of contract, in connection with the work or services of the Vendor, its officers, employees,
agents, or any tier of subcontractor in the performance of this Agreement. 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.
11. Insurance.
11.1 General.
A. Insurer Qualifications. Without limiting any obligations or
liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter
stipulated minimum insurance with insurance companies authorized to do business in the
State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, 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 Agreement 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
Vendor. The Town reserves the right to review any and all of the insurance policies and/or
endorsements cited in this Agreement but has no obligation to do so. Failure to demand
such evidence of full compliance with the insurance requirements set forth in this
Agreement or failure to identify any insurance deficiency shall not relieve Vendor from,
nor be construed or deemed a waiver of, its obligation to maintain the required insurance
at all times during the performance of this Agreement.
C. Additional Insured. All insurance coverage, 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
Agreement, the Town, its agents, representatives, officers, directors, officials and
employees as Additional Insured as specified under the respective coverage sections of this
Agreement.
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 Agreement are satisfactorily performed, completed and formally accepted by the
Town, unless specified otherwise in this Agreement.
4
E. Primary Insurance. Vendor’s insurance shall be primary insurance
with respect to performance of this Agreement and in the protection of the Town as an
Additional Insured.
F. Claims Made. In the event any insurance policies required by this
Agreement 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, except for Professional Liability, including
Workers’ Compensation insurance, shall contain a 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 Vendor. Vendor 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 applicable with
respect to the policy limits provided to the Town. Vendor shall be solely responsible for
any such deductible or self-insured retention amount.
I. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Vendor shall execute written agreements with its subcontractors
containing the indemnification provisions set forth in this Agreement and insurance
requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible
for executing any agreements with its subcontractors and obtaining certificates of insurance
verifying the insurance requirements.
J. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Vendor will provide the Town with suitable evidence of insurance
in the form of certificates of insurance and a copy of the declaration page(s) of the insurance
policies as required by this Agreement, issued by Vendor’s insurance 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 Agreement and that
such coverage and provisions are in full force and effect. Confidential information such as
the policy premium may be redacted from the declaration page(s) of each insurance policy,
provided that such redactions do not alter any of the information required by this
Agreement. The Town shall reasonably rely upon the certificates of insurance and
declaration page(s) of the insurance policies as evidence of coverage but such acceptance
and reliance shall not waive or alter in any way the insurance requirements or obligations
of this Agreement. If any of the policies required by this Agreement expire during the life
of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and
5
declaration page(s) to the Town 30 days prior to the expiration date. All certificates of
insurance and declarations required by this Agreement shall be identified by referencing
the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed
for all certificates or declarations received without the appropriate RFP number and title or
a reference to this Agreement, as applicable. Additionally, certificates of insurance and
declaration page(s) of the insurance policies submitted without referencing the appropriate
RFP number and title or a reference to this Agreement, as applicable, will be subject to
rejection and may be returned or discarded. Certificates of insurance and declaration
page(s) 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) Vendor’s insurance shall be primary insurance with respect
to performance of this Agreement.
(3) All policies, except for Professional Liability, 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 Vendor under this Agreement.
(4) ACORD certificate of insurance form 25 (2014/01) is
preferred. If ACORD certificate of insurance form 25 (2001/08) 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.
11.2 Required Insurance Coverage.
A. Commercial General Liability. Vendor 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
6
limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims
arising out of the performance of this Agreement, 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 II) 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 subsection, such Excess insurance shall be
“follow form” equal or broader in coverage scope than underlying insurance.
B. Vehicle Liability. Vendor shall maintain Business Automobile
Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired
and non-owned vehicles assigned to or used in the performance of the Vendor’s work or
services under this Agreement. 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 Agreement, 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 subsection, such Excess insurance shall be “follow form” equal or broader in coverage
scope than underlying insurance.
C. Professional Liability. If this Agreement is the subject of any
professional services or work, or if the Vendor engages in any professional services or
work in any way related to performing the work under this Agreement, the Vendor shall
maintain Professional Liability insurance covering negligent errors and omissions arising
out of the Services performed by the Vendor, or anyone employed by the Vendor, or
anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally
liable, with an unimpaired liability insurance limit of $1,000,000 each claim and
$3,000,000 annual aggregate.
D. Workers’ Compensation Insurance. Vendor shall maintain
Workers’ Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Vendor’s employees engaged in the performance of work
or services under this Agreement 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.
11.3 Cancellation and Expiration Notice. Insurance required herein shall not
expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town.
12. Termination; Cancellation.
12.1 For Town’s Convenience. This Agreement is for the convenience of the
Town and, as such, may be terminated without cause after receipt by Vendor of written notice by
7
the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services
performed to the termination date.
12.2 For Cause. If either party fails to perform any obligation pursuant to this
Agreement and such party fails to cure its nonperformance within 30 days after notice of
nonperformance is given by the non-defaulting party, such party will be in default. In the event of
such default, the non-defaulting party may terminate this Agreement immediately for cause and
will have all remedies that are available to it at law or in equity including, without limitation, the
remedy of specific performance. If the nature of the defaulting party’s nonperformance is such
that it cannot reasonably be cured within 30 days, then the defaulting party will have such
additional periods of time as may be reasonably necessary under the circumstances, provided the
defaulting party immediately (A) provides written notice to the non-defaulting party and (B)
commences to cure its nonperformance and thereafter diligently continues to completion the cure
of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of
such termination for cause, payment shall be made by the Town to the Vendor for the undisputed
portion of its fee due as of the termination date.
12.3 Due to Work Stoppage. This Agreement may be terminated by the Town
upon 30 days’ written notice to Vendor 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
Vendor for the undisputed portion of its fee due as of the termination date.
12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ.
REV. STAT. § 38-511. The Town may cancel this Agreement 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 Agreement on behalf of the Town or any of its
departments or agencies is, at any time while this Agreement or any extension of this Agreement
is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any
other party of this Agreement with respect to the subject matter of this Agreement.
12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this
Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future
employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent
or representative of the Vendor to any officer, agent or employee of the Town for the purpose of
securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this
provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and
withhold from the Vendor an amount equal to 150% of the gratuity.
12.6 Agreement Subject to Appropriation. This Agreement is subject to the
provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of
this Agreement for payment of funds by the Town shall be effective when funds are appropriated
for purposes of this Agreement and are actually available for payment. The Town shall be the sole
judge and authority in determining the availability of funds under this Agreement and the Town
shall keep the Vendor fully informed as to the availability of funds for this Agreement. The
obligation of the Town to make any payment pursuant to this Agreement is a current expense of
the Town, payable exclusively from such annual appropriations, and is not a general obligation or
8
indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the
amounts as set forth in this Agreement during any immediately succeeding fiscal year, this
Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall
be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. 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 Vendor acknowledges and agrees that the
Services provided under this Agreement are being provided as an independent contractor, not as
an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to
workers’ compensation benefits from the Town. The Town does not have the authority to
supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and
not the Town, shall determine the time of its performance of the services provided under this
Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit
A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing
its profession elsewhere. Town and Vendor do not intend to nor will they combine business
operations under this Agreement.
13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of
the State of Arizona and suit pertaining to this Agreement may be brought only in courts in
Maricopa County, Arizona.
13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all
times during the performance of its duties under this Agreement ensure that it and any person for
whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations,
ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A)
existing and future Town and County ordinances and regulations; (B) existing and future State and
Federal laws; and (C) existing and future Occupational Safety and Health Administration
standards.
13.4 Amendments. This Agreement may be modified only by a written
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Vendor.
13.5 Provisions Required by Law. Each and every provision of law and any
clause required by law to be in this Agreement 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, this Agreement will promptly be physically
amended to make such insertion or correction.
13.6 Severability. The provisions of this Agreement 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 this Agreement which may remain in effect without
the invalid provision or application.
9
13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement
represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and
superseded by this Agreement. No representations, warranties, inducements or oral agreements
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 Agreement. This Agreement shall be construed and interpreted according to its plain meaning,
and no presumption shall be deemed to apply in favor of, or against the party drafting this
Agreement. The parties acknowledge and agree that each has had the opportunity to seek and
utilize legal counsel in the drafting of, review of, and entry into this Agreement.
13.8 Assignment; Delegation. No right or interest in this Agreement shall be
assigned or delegated by Vendor without prior, written permission of the Town, signed by the
Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision
shall be a breach of this Agreement by Vendor.
13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any
other party to furnish any of the material or services specified herein without the prior written
approval of the Town. The Vendor is responsible for performance under this Agreement whether
or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any
subcontract shall be a material breach of this Agreement by Vendor.
13.10 Rights and Remedies. No provision in this Agreement 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 Agreement. The failure of
the Town to insist upon the strict performance of any term or condition of this Agreement or to
exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the
Town’s acceptance of and payment for services, shall not release the Vendor from any
responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a
waiver of any right of the Town to insist upon the strict performance of this Agreement.
13.11 Attorneys’ Fees. In the event either party brings any action for any relief,
declaratory or otherwise, arising out of this Agreement or on account of any breach or default
hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’
fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall
be deemed to have accrued on the commencement of such action and shall be enforced whether or
not such action is prosecuted through judgment.
13.12 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.
13.13 Offset.
A. Offset for Damages. In addition to all other remedies at law or
equity, the Town may offset from any money due to the Vendor any amounts Vendor owes
10
to the Town for damages resulting from breach or deficiencies in performance or breach of
any obligation under this Agreement.
B. Offset for Delinquent Fees or Taxes. The Town may offset from
any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees,
transaction privilege taxes and property taxes, including any interest or penalties.
13.14 Notices and Requests. Any notice or other communication required or
permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S.
Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to
a recognized and reputable overnight delivery service, to the address set forth below:
If to the Town: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Grady E. Miller, Town Manager
With copy to: Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills, Arizona 85268
Attn: Aaron D. Arnson, Town Attorney
If to Vendor: Matrix Consulting Group, LTD.
1650 S. Amphlett Blvd., Ste. 213
San Mateo, Ca. 94402
Attn: Richard Brady
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 subsection. Notices shall be deemed
received (A) when delivered to the party, (B) three business days after being placed in the U.S.
Mail, properly addressed, with sufficient postage or (C) the following business day after being
given to a recognized overnight delivery service, with the person giving the notice paying all
required charges and instructing the delivery service to deliver on the following business day. If
a copy of a notice is also given to a party’s counsel or other recipient, the provisions above
governing the date on which a notice is deemed to have been received by a party shall mean and
refer to the date on which the party, and not its counsel or other recipient to which a copy of the
notice may be sent, is deemed to have received the notice.
13.15 Confidentiality of Records. The Vendor shall establish and maintain
procedures and controls that are acceptable to the Town for the purpose of ensuring that
information contained in its records or obtained from the Town or from others in carrying out its
obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or
employees, except as required to perform Vendor’s duties under this Agreement. Persons
requesting such information should be referred to the Town. Vendor also agrees that any
11
information pertaining to individual persons shall not be divulged other than to employees or
officers of Vendor as needed for the performance of duties under this Agreement.
13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors
are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s
books, records, correspondence, accounting procedures and practices, and any other supporting
evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’
employees who perform any work or services pursuant to this Agreement (all of 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 (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and
its subcontractors’ actual costs (including direct and indirect costs and overhead allocations)
incurred, or units expended directly in the performance of work under this Agreement and (B)
evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer
sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to
audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights
to keep such Records confidential. For the purpose of evaluating or verifying such actual or
claimed costs or units expended, the Town shall have access to said Records, even if located at its
subcontractors’ facilities, from the effective date of this Agreement for the duration of the work
and until three years after the date of final payment by the Town to Vendor pursuant to this
Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate
workspace so that the Town can conduct audits in compliance with the provisions of this
subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of
intended audits. Vendor shall require its subcontractors to comply with the provisions of this
subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement.
13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. §
41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws
and regulations that relate to their employees and their compliance with the E-verify requirements
under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such
warranty shall be deemed a material breach of this Agreement and may result in the termination
of this Agreement by the Town.
13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for
the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in
ARIZ. REV. STAT. § 35-393, of Israel.
13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity
among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the
documents shall govern in the order listed herein.
13.20 Non-Exclusive Contract. This Agreement is entered into with the
understanding and agreement that it is for the sole convenience of the Town. The Town reserves
the right to obtain like goods and services from another source when necessary.
[SIGNATURES ON FOLLOWING PAGES]
12
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
MATRIX CONSULTING GROUP, LTD.
[Consultant’s Proposal]
See following pages.
Town of Fountain Hills
Admin-Procurement
Robert Durham, Procurement Officer
16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
RESPONSE DEADLINE: October 28, 2021 at 3:00 pm
Report Generated: Monday, November 8, 2021
Matrix Consulting Group Proposal
CONTACT INFORMATION
Company:
Matrix Consulting Group
Email:
proposals@matrixcg.net
Contact:
Richard Brady
Address:
1650 S Amphlett Blvd
Ste 213
San Mateo, CA 94402
Phone:
(650) 858-0507
Website:
www.matrixcg.net
Submission Date:
Oct 28, 2021 11:35 AM
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 2
ADDENDA CONFIRMATION
No addenda issued
QUESTIONNAIRE
1. Certification
By confirming questions under this section, the Vendor certifies:
NO COLLUSION*
Pass
The submission of the Proposal did not involve collusion or other anti-competitive practices.
Confirmed
NO DISCRIMINATION*
Pass
It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246.
Confirmed
NO GRATUITY*
Pass
It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gi ft, loan,
gratuity, special discount, trip favor or service to a Town employee, officer or agent in connection with the submitted Proposal. It
(including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of
disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 3
with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager,
Assistant Town Managers, Department Heads, and other Town staff. All contact must be addressed to the Town’s Procurement Agent,
except for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to influence the selec tion process by any
means shall void the submitted Proposal and any resulting Agreement.
Confirmed
FINANCIAL STABILITY*
Pass
It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential co sts resulting
from an award of the Agreement.
Confirmed
NO SIGNATURE/FALSE OR MISLEADING STATEMENT*
Pass
The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the
authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or
misleading statement, shall void the submitted Proposal and any resulting Agreement.
Confirmed
PROFESSIONAL SERVICES AGREEMENT*
Pass
In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services
Agreement including the Scope of Work and other Exhibits.
Confirmed
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 4
REFERENCE CHECKS*
Pass
References will be checked, and it is Vendor’s responsibility to ensure that all information is accurate and current. Vendor authorizes
the Town’s representative to verify all information from these references and releases all those concerned from any liability in
connection with the information they provide. Inability of the Town to verify references shall result in the Proposal being considered
non-responsive.
Confirmed
2. Vendor Proposal
GENERAL INFORMATION*
Pass
A. One page cover letter as described in the section titled "RFP Submission Process", the subsection titled "Required Submittal".
B. Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address,
identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole
proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under
this section for each member. If a limited liability company, provide the name of the member or members authorized to act on
the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the
corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of
the person to contact concerning the Proposal.
C. Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that
supports the Vendor’s authority to provide services in Arizona.
D. Provide a general description of the Vendor’s organization, including years in business.
E. Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last
five years. Briefly describe the circumstances and the outcome.
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 5
F. Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly d escribe
the circumstances and the outcome.
Fountain_Hills_Police_General_Information.pdf
EXPERIENCE AND QUALIFICATIONS OF THE VENDOR*
Pass
A. Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a
similar size to the Town, specifically relating experience with respect to Financial Analysis --Law Enforcement.
B. Vendor must demonstrate successful completion of at least three similar projects within the past 60 months. For the purpose
of this Solicitation, “successful completion” means completion of a project within the established schedule and budget and
“similar projects” resemble this project in size, nature and scope. Provide a list of at least three organizations for which you
successfully completed a similar project. This list shall include, at a minimum, the following information:
1. Name of company or organization.
2. Contact name.
3. Contact address, telephone number and e-mail address.
4. Type of services provided.
5. Dates of contract initiation and expiration.
Fountain_Hills_Police_Experience_&_Qualifications.pdf
KEY POSITIONS*
Pass
A. Identify each key personnel member that will render services to the Town including title and relevant experience required,
including the proposed project manager and project staff.
B. Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of
what their role will be in providing services to the Town.
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 6
C. If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for
providing supervision must be included.
D. Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in
this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward
the Proposal page limit. However, each resume shall not exceed two pages in length.
Fountain_Hills_Police_Key_Positions.pdf
PROJECT APPROACH*
Pass
A. Describe the Vendor’s approach to performing the required Services in the section titled Scope of Work, and its approach to
contract management, including its perspective and experience on partnering, customer service, quality control, scheduling
and staff.
B. Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include
rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s
Representatives.
Fountain_Hills_Police_Project_Approach.pdf
PROJECT SCHEDULE*
Pass
Provide a project schedule showing key project milestones and deliverables. The schedule shall demonstrate Vendor’s ability to meet
the designated milestones as listed below. All Services of the successful Vendor must reach full completion and shall not exceed a 60
day period after the Notice to Proceed has been issued by Town. Assumptions used in developing the schedule shall be identified and
at a minimum the proposed schedule shall include the following dates.
A. Contract Award Date
B. Notice to Proceed Date
PROPOSAL DOCUMENT REPORT
RFP No. 2022-005
Financial Analysis--Law Enforcement
PROPOSAL DOCUMENT REPORT
Request for Proposals - Financial Analysis--Law Enforcement
Page 7
C. Proposed Kick-Off Meeting
D. Phase I Report Due Date
E. Phase I Report Presentation Date
F. Phase II Implementation Start Date
G. Project Completion Date
Fountain_Hills_Police_Schedule.pdf
PRICING*
Pass
Vendor shall submit the same number of copies of the Fee Proposal as described in section titled "RFP Submission Process" subsection
titled "Pricing" in a separate, sealed envelope enclosed with the Vendor’s Proposal with the signature of the representative of the
Vendor who is authorized to make such an offer. The Fee Proposal must be provided in the format attached as Exhibit C of the
Professional Services Agreement. The Fee Proposal shall list the individual cost for each of the program expenses and shall be
provided in a spreadsheet format to enable the Town staff to determine (1) total labor hours, (2) key team member(s) proposed for
each task and sub-task and (3) number of management, engineering, technical, drafting and support personnel hours proposed for
the project. The hourly rate, name of the team member and staff classification shall be included in the spreadsheet. Identify all other
costs to be billed to the project, including project expenses (no mark-up on expenses will be allowed) and subcontractor fees.
Confirmed
PRICING
Pass
Fountain_Hills_Police_Pricing.pdf
1650 S. Amphlett Blvd., Suite 213 • San Mateo, CA 94402 • 650.858.0507
SF Bay Area (Headquarters), Boston, Charlotte, Dallas, Irvine, Portland, St. Louis
October 27, 2021
Rob Durham
Procurement Administrator
Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
Dear Mr. Durham:
The Matrix Consulting Group is pleased to provide you with our proposal to Conduct a
Financial Analysis for Police Services. This proposal is based on our review of the request
for proposals and background research on the City and its law enforcement services.
A review of our services, experience, and qualifications will show that the Matrix Consulting
Group is highly qualified because of its extensive experience evaluating police staffing and
deployment, management, and assistance in achieving 21st Century policing concepts. We
have worked with over 400 police services studies in Arizona and the Southwest as well as
around the country (and Canada). A sample of clients is shown below:
Albuquerque, NM Kansas City, KS Rio Rancho, NM
Austin, TX Kansas City, MO San Antonio, TX
Birmingham, AL Los Angeles, CA San Francisco, CA
Buckeye, AZ Miami Beach, FL (2x) San Jose, CA
Columbia, MO Orange County, FL (2x) Spokane, WA
Columbus, OH Peoria, AZ Tacoma, WA (2x)
Denton, TX Portland, OR Wichita, KS
Fort Worth, TX Raleigh, NC (2x) Winnipeg, MB
We are currently completing police staffing studies in Santa Fe, NM and Phoenix, AZ.
As President of the Firm, I am authorized to represent the company regarding all matters
related to our proposal. If you have any questions, please contact me at 650-858-0507 or via
email at rbrady@matrixcg.net. I can also be contacted at the letterhead address.
Richard P. Brady
Matrix Consulting Group
Richard P. Brady
President
mat rix
consulting group
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 2
7.2.1 General Information
The Matrix Consulting Group was formed by senior consultants who created it to pursue
a service in which the senior people actually do the work. Our only business focus is the
provision of organization and management analytical services to local government. Our
firm’s history and composition are summarized below:
• We were founded in 2002 as a corporation in California.
• While we provide a variety of services to local government our most significant
service area is public safety. The Matrix Consulting Group project team has
conducted studies of more than 400 police service agencies throughout the United
States, including several in Arizona.
• Our firm maintains two offices in California (our headquarters is in San Mateo and
we also have an Irvine office), Oregon, Illinois, North Carolina and Texas. We
currently have 18 full-time and 4 part-time staff. One team member is in Arizona.
The contact information for the Project Manager (Principal) and our corporate
headquarters is as follows:
Richard P. Brady, President
Matrix Consulting Group, Ltd.
1650 S. Amphlett, Suite 213
San Mateo, CA 94402
(650) 858-0507 (650) 397-4050 fax
rbrady@matrixcg.net
The Matrix Consulting Group has not had any contracts cancelled, revoked or renewed
within the past five (5) years.
The Matrix Consulting Group is not the subject of any pending litigation and has not been
the subject of any litigation in the past five (5) years, nor in the history of the firm.
The Matrix Consulting Group, its partners and staff have no conflicts of any kind with the
City of Fountain Hills, its elected officials and staff.
We need to take two exceptions to the proposed contract relating to insurance – our
professional liability coverage is $1m/$3m not $2m/$2m and we own no autos so we
cannot get ‘any auto’ coverage.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 1
7.2.2 Experience and Qualifications
1. Police Consulting Experience
While we provide a variety of services to local government our most significant service
area is police services. The Matrix Consulting Group project team has conducted studies
of more than 400 law enforcement agencies throughout the United States and in Canada,
including many agencies in the Southwest. Our services in police consulting are varied
and include:
• Community-centered policing
• Staffing, deployment and scheduling
• Organization and management of services
• Strategic, resource and management planning
Our police consulting experience the past two years includes the following agencies
with agencies in Arizona bolded:
Buckeye, AZ Kauai County, HI Salt Lake City, UT
Calistoga, CA Laguna Hills, CA San Francisco, CA
Clayton, MO La Quinta, CA San Jose, CA
Conshohocken, PA Lewisville, TX Raleigh, NC (2 studies)
Columbus, OH Los Angeles, CA Ramsey County, MN
Denton, TX Lower Saucon, PA Rockford, IL
DFW International Airport Lynnwood, WA San Carlos Apache
DeKalb County, GA Miami Beach, FL Scott County, IA
Dodge County, WI Midwest City, OK Spokane County, WA
Edmonton, AB Monroe, WA Suisun, CA
Fort Worth, TX Narberth, PA Tacoma, WA (3 studies)
Glenn Heights, TX Orange County, CA Tigard, OR
Groton, MA Orange County, FL Travis County, TX
Hennepin County, MN Oshkosh, WI Upper Macungie, PA
Kansas City, KS Ossining, NY Wichita, KS
Kansas City, MO Peoria, AZ Wyandotte County, KS
Kawartha Lakes, ON Puyallup, WA Yarmouth, MA
We are currently completing police staffing studies in Santa Fe, NM and Phoenix, AZ.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 2
2. Similar Projects and References
The following table illustrates similar projects completed by the firm in the past five (5)
years. These projects also serve as references for the depth and quality of our work.
Buckeye, Arizona
Police Department Staffing and
Planning Study
2019
Robert Sanders
Assistant Police Chief
21699 W Yuma Road
Buckeye, AZ 85326
623-349-6400
rsanders@buckeyeaz.gov
Matrix CG developed an assessment of current and
projected staffing needs for this police department
serving this small but rapidly growing community.
The study resulted in recommendations for additional
staffing now and significantly in the future. Given the
uncertain pace of future development, a model was
provided to convert workloads and service needs into
staffing requirements.
Elements of the study also included ‘filling out’ the
organization administratively and in support positions.
Finally, a facilities plan was developed.
Tacoma, Washington
Police Department Staffing Study
2020 (follow up study in 2021)
Tadd Wille
Deputy City Manager
747 Market Street
Tacoma, WA 98402
253-591-5818
tadd.wille@cityoftacoma.org
Matrix CG developed a comprehensive analysis of
current staffing needs and management.
The project team recommended significant changes to
operational management in investigations (case
management) and in the deployment of resources in
patrol and traffic to ensure that high call volume areas
were adequately served. There were a number of
unfilled positions which were recommended to be refilled
to provide appropriate levels of service.
A follow up study just completed provided an
assessment of alternative police response for calls
involving mental health issues and homelessness as
well as civilian response to lower priority calls.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 3
La Quinta, California
Regional Feasibility
Police Services Studies
2018 – Present
Chris Escobedo
Assistant City Manager
78-495 Calle Tampico
La Quinta, CA 92253
760-777-7010
cescobedo@laquintaca.gov
This project evaluated alternatives to contract for service
from the Riverside County Sheriff’s Department. We also
evaluated the feasibility of developing a joint contract with
Indian Wells, Palm Desert and Rancho Mirage.
The regional feasibility concluded that there are substantial
opportunities for savings while improving service to the
participating cities. The savings were the result of comp
differences and shared services among the cities that are
not shared in their individual contracts with the RCSD.
Prior to the regional study, the firm conducted annual (4)
operations and contract performance audits of the service
provided by the RCSD to La Quinta. Principal
recommendations included – expanding duty hours of the
Traffic Unit to provide coverage on weekdays but increase
their productivity; reduce the number of daily Patrol Officer
hours from 150 daily to 140 hours daily.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 1
7.2.3 Key Positions
The Matrix Consulting Group proposes to utilize a senior project team, including our
President and other experienced personnel, several with direct police service experience.
Our team includes no subcontractors, an important positive for our firm and team resulting
in better consistency in analysis and customer service.
Summary descriptions of each team member are provided below beginning. More
detailed resumes follow these summaries:
Richard Brady
President
Project Manager
Mr. Brady has been providing management consulting services to
municipalities for over 40 years across all governmental functions,
including over 400 law enforcement department clients conducting costs
and financial analysis, organizational and operational assessments,
organizational structure reviews, feasibility studies, technology and
equipment reviews, and performance audits.
He was the project manager for our recent police studies for Buckeye and
Peoria (AZ) and our current planning project for Phoenix.
He has a Doctoral Degree from Oxford University and a BA from Cal State.
Ian Brady
Vice President
Project Analyst
Ian Brady is a Vice President with the Matrix Consulting Group in our
Police Services Practice. He has over 9 years of consulting experience.
He specializes in public safety and is dedicated to providing analytical
support for all of our police, fire, emergency communications and criminal
justice system studies.
He was the lead analyst for our recent police studies for Buckeye and
Peoria (AZ) and our current planning project for Phoenix.
Mr. Brady has developed the firm’s staffing, scheduling, and statistical
models, including GIS-based analytical tools for analyzing field workloads
and redeveloping patrol deployment areas.
He received his BA in Politics from Willamette University.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 2
John Scruggs
Manager
Project Analyst
John Scruggs is a Manager with the Matrix Consulting Group. He has a
strong background in law enforcement, including having previously served
as a Captain for the Portland Police Bureau. He has served in all facets of
law enforcement including patrol, investigations, training and
administration during his 26-year career. Recently, he also was interim
police chief to Lower Saucon Township.
He was an analyst for our recent police studies for Buckeye and Peoria
(AZ) and our current planning project for Phoenix.
Mr. Scruggs has a Master of Public Administration from Portland State
University. He received his Bachelor’s degree in Political Science from
Portland State University. Mr. Scruggs has also received mid-
management and executive management course certificates from the
Oregon Department of Public Safety Standards and Training.
Kelli Sheffer
Manager
Project Analyst
Kelli Sheffer is a consultant with Matrix Consulting Group and has over 30
years over years of law enforcement experience both as a civilian and
sworn member. She has experience any every facet of police operations
including patrol commander, personnel, investigations, traffic, K9,
Emergency Management, PIO, Critical Incident Commander, Training.
She is an analyst on our current planning project for Phoenix (AZ).
Kelli has additional in-depth experience in recruiting, the background
process and employee discipline. She developed a use of force
investigation and tracking protocols.
Aaron Baggarly
Senior Manager
Project Analyst
Support Services
and Facilities
Aaron Baggarly is a Senior Manager with the Matrix Consulting Group
having joined the firm 7 years ago. Mr. Baggarly has worked on over 100
local government studies including over 40 public safety related studies
He was the lead analyst for our recent police study for Buckeye (AZ) and
our current planning project for Phoenix.
Mr. Baggarly received a BS from Appalachian State University in
Community and Regional Planning, minor in GIS; 2007
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 3
Ryan Peterson
Consultant
Project Data Analyst
Ryan Peterson is a Consultant with the Matrix Consulting Group,
specializing in GIS and data analytics. He has over five years of
experience in conducting geospatial analysis for local and regional
governments, having previously worked for the City of Portland and City
of Beaverton, as well as the Tri-County Metropolitan Transportation
District of Oregon.
He was an analyst for our recent police studies for Buckeye and Peoria
(AZ) and our current planning project for Phoenix.
He holds a BS in Geography/GIS from University of Oregon, as well as a
GIS Graduate Certificate from Portland State University, and a certificate
in programming from the Epicodus School.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 4
RICHARD BRADY
PRESIDENT, MATRIX CONSULTING GROUP
Richard Brady founded Matrix Consulting Group in 2002 and our
Canadian firm, MCG Consulting Solutions in 2017. He leads our
Public Safety Practice which includes law enforcement and justice
studies. He has served as the Project Manager or Lead Analyst on
hundreds of public safety studies in his 40 year career. His subject
matter expertise includes police staffing and deployment,
management effectiveness, and governance and transparency. Prior
to his founding of these two firms, he served for over 20 years as a
practice leader in two other firms, including Maximus.
Experience Highlights
Austin, TX: Richard lead a consulting team to assist the APD recreate its
approach to community policing to involve everyone, not just those with
specialty assignments. While the study supported the addition of staff,
the study also found that there were significant opportunities to
support community policing in leadership, policies, recruitment,
training, supervision, and use of data.
Columbus, OH: Richard led this recent project that identified the need
for new positions, but more importantly, identified a number of areas
which would improve the quality of service and integrity, including:
• Steps to improve upon building trust in the community.
• Changes to use of force policies and biased policing.
• Increase training on de-escalation and procedural justice.
• Increase the use of civilians in the field and in administration.
There was a ‘disconnect’ between the policies and management.
Ossining, NY: Richard led this just-completed engagement
evaluating opportunities to reform policing consistent with 21st
Century Policing concepts. Key recommendations included:
• Improve the functioning, transparency and objectivity of the
Citizen / Police Complaint Review Board.
• Work with other agencies to create a mental health response unit.
• Expand training in the areas of racism, bias, de-escalation.
Role on This Engagement:
Richard will serve as a project executive and advisor.
He will be involved in all project stages, including on-site interviews
and review meetings. He will lead product design and quality control.
Relevant Clients:
AZ
AZ
AB
CA
CA
TX
TX
MO
OH
NY
NY
VA
NM
NC
NC
AZ
WA
OR
Buckeye
Peoria
Edmonton
Los Angeles
San Francisco
Austin
Fort Worth
Kansas City
Columbus
Ossining
Albany
Richmond
Albuquerque
Raleigh
Asheville
Phoenix
Tacoma
Portland
Years of Consulting: 40
Education:
BA, California State
University, East Bay.
PhD, Oxford University,
U.K.
Notable Accomplishments:
Ohio Commission on
Juvenile Justice
Massachusetts Governor’s
Committee on Local
Government
Professional Association:
Association of Local
Government Auditors
International City-County
Management Association
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 5
IAN BRADY
VICE PRESIDENT, MATRIX CONSULTING GROUP
Ian Brady is a Vice President with Matrix Consulting Group in our
Police Services Practice. He leads our data analytics unit, and has
over 10 years of consulting experience. Specializing in public safety,
he works on all of our police, fire, corrections, and emergency
communications studies.
Mr. Brady is the lead developer on all of our statistical modeling and
data analytics efforts, and has created standalone models in support
of our studies’ analytical efforts, including for:
• New agency formation feasibility, financial and service delivery
(For nine municipalities in Riverside County, CA).
• Growth forecasting using GIS-based projections for population,
service needs, and staffing requirements.
• Comprehensive workload and staffing analytics.
• Interactive scheduling configuration, forecasting effects on
service levels and overtime usage.
Experience Highlights
Los Angeles, CA: LAPD Basic Car Area Boundary Study
• Led a comprehensive staffing study of LAPD field services.
• Recreated the patrol geographic deployment structure from the
granular level, resulting in 202 new patrol areas, up from the 168
that existed previously.
• Analyzed patrol resource allocation strategies, recommending
improved methods in order to better equalize service levels.
San Francisco, CA: Police Department Staffing Analysis
• Lead analyst on a comprehensive staffing study of the
department.
• The project was designed to create defensible methodologies for
determining the staffing needs of all 600+ assignments in the
department based on service needs and other factors. These
methodologies were then used to recommend appropriate
staffing levels in every position.
• Developed and designed an interactive analytical tool for SFPD
to use in the future to recreate the analysis in its entirety.
Role on This Engagement:
Ian will serve as the lead analyst in field services, as well as more
generally over data analytics.
He will be involved in all project stages, including on-site interview
and review meetings, and will be involved in the development of
each deliverable.
Relevant Clients:
AZ
AZ
AL
CA
CA
CA
CA
CA
CA
CO
FL
FL
GA
HI
IL
IL
KS
MB
MD
MD
MN
MO
MO
OK
NC
NJ
NM
NY
OH
OR
PA
TX
TX
TX
VA
WA
WI
Buckeye
Peoria
Birmingham
Berkeley
Los Angeles
Roseville
Sacramento
San Francisco
San Jose
Adams County
Miami Beach
Orange County
DeKalb County
Kauai County
Lansing
Rockford
Wichita
Winnipeg
Harford County
Howard County
Hennepin County
Columbia
Kansas City
Midwest City
Raleigh
Mahwah
Rio Rancho
Newburgh
Columbus
Portland
Carlisle
Austin
Fort Worth
Travis County
Suffolk
Tacoma
Oshkosh
Years of Experience: 10
Education:
BS in Politics, Willamette
University.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 6
JOHN SCRUGGS
MANAGER, MCG CONSULTING SOLUTIONS and MATRIX CONSULTING GROUP
John Scruggs is a manager / analyst on law enforcement, public
safety, and criminal justice engagements.
John’s relevant experience include:
• Completed over 50 studies for law enforcement, public safety,
and criminal justice clients.
• Analysis focuses on operational and staffing review, workload
analysis, net annual work hour determination, and alternative
scheduling analysis.
• Expertise also includes the evaluation of administrative, dispatch,
investigations, patrol, records, and property and evidence
functions.
• Retired Captain with 26 years of Law Enforcement Experience.
Experience Highlights
Kansas City, MO: This study evaluated the staffing needs of the
Police Department. Key findings included:
• Opportunity for greater fiscal savings by transitioning 30 positions
from sworn to civilian staff, primarily in administrative areas (e.g.
finance, records, fleet maintenance, security, IT, and HR).
• Identified the need for additional positions related to open record
requests, reviewing BWC footage, and packaging of officer
videos for judicial proceedings.
• Provided insight into alternative organizational structures and
span of control in administrative functions.
• Conducting workload analysis to determine staffing needs for
non-patrol and investigative units.
Kawartha Lakes, Ontario: John served as the lead analyst of the on
this engagement which reviewed the current staffing and developed
staffing projections for a facilities study. Key recommendations
included:
• Identified two patrol positions needed in the next 4 years and six
positions over the next 20 years to better meet adopted proactive
policing thresholds.
• Identified a shortage of detectives assigned to investigate crimes
committed at the Central East Correctional Center.
• Identified an alternative fixed post staffing plan for the jail and a
revised shift schedule to increase supervision in the jail.
Role on This Engagement:
He will be an analyst on the project.
Relevant Clients:
AL
AZ
AZ
CA
CA
CA
FL
KS
KS
MA
MN
MO
OR
PA
PA
PA
NC
NC
TX
TX
TX
TX
TX
WA
WA
WI
Gulf Shores
Buckeye
Peoria
Los Angeles
San Jose
Santa Clara
St. Cloud
Kansas City
Wyandotte County
Yarmouth
Hennepin County
Kansas City
Tigard
Lower Saucon
Narberth
Upper Macungie
Waxhaw
Raleigh
Denton
Fort Worth
Glen Heights
Lewisville
Sunnyvale
Monroe
Tacoma
Dodge County
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 7
AARON BAGGARLY, AICP
SENIOR MANAGER, MATRIX CONSULTING GROUP
Aaron Baggarly is an analyst on law enforcement, public safety, and
criminal justice engagements.
Aaron’s relevant experience include:
• Completed over 70 studies for law enforcement, public safety,
and criminal justice clients.
• Analysis focuses on operational and staffing review, workload
analysis, net annual work hour determination, and alternative
scheduling analysis.
• Expertise also includes the evaluation of administrative, dispatch,
patrol, records, and property and evidence functions.
Experience Highlights
Kansas City, MO: This study evaluated the staffing needs of the
Police Department. Key findings included:
• Opportunity for greater fiscal savings by transitioning 30
positions from sworn to civilian staff, primarily in administrative
areas (e.g. finance, records, fleet maintenance, security, IT, and
HR).
• Identified the need for additional positions related to open record
ruests, reviewing BWC footage, and packaging of officer videos
for judicial proceedings.
• Provided insight into alternative organizational structures and
span of control in administrative functions.
• Conducting workload analysis to determine staffing needs for
non- patrol and investigative units.
Puyallup, WA: Aaron served as the lead analyst on this engagement
which reviewed the staffing, operational, and organization structure
of the Police Department. Key recommendations included:
• Identified an additional six patrol officer positions to better meet
adopted proactive policing thresholds.
• Revision to current approaches to providing in-service training to
reduce overtime.
• Identified an alternative fixed post staffing plan for the jail and a
revised shift schedule to increase supervision in the jail.
Role on This Engagement:
He will be an analyst on the project.
Relevant Clients:
AZ
FL
FL
IA
IA
KS
MA
MN
MN
MN
MO
MO
NC
TX
TX
TX
WA
WA
WI
WI
Buckeye
Alachua County
Cooper City
Davenport
Scott County
Wyandotte County
Yarmouth
Anoka County
Hennepin County
Ramsey County
Clayton
Kansas City
Raleigh
Fort Worth
Kyle
Lewisville
Lynnwood
Puyallup
Dodge County
Waukesha County
Years of Experience: 13
Education:
BS, Appalachian State
University, Community and
Regional Planning, Minor
in GIS.
Professional Association:
American Institute of
Certified Planners (AICP)
American Planning
Association
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 8
KELLI SHEFFER
MANAGER, MCG CONSULTING SOLUTIONS and MATRIX CONSULTING GROUP
Kelli Sheffer is a 30-year law enforcement veteran. 16-year
command leadership with a progressive major metropolitan police
agency. Extensive experience in; precinct operations, investigations,
major events/protests, houselessness/mental health and
neighborhood livability issues, background investigation/personnel
recruitment, use of force review and policy. She is based in Payson,
Arizona.
Experience Highlights
Kelli most recently worked for the City of Portland, Oregon as the
Central Precinct Commander responsible for the oversight of all
police response and operations in the downtown core and
neighborhoods south and west of the city.
• Lead for the Critical Incident Management Command Program-
Training for Incident Command.
• Oversight of the Service Coordination Team, a multi-disciplinary
service response to houselessness, mental health, and addiction.
• Commander, North Precinct
• Commander, East Precincts
• Commander, Traffic Division.
• Public Information Officer
• Hostage Negotiation Team Lead
• Detective Sergeant
• 20-year Defensive Tactics Instructor
Camp Rosenbaum Board member (2010 – Present)
Camp counselor and staff positions from 1994 to 2018. CRB is a
summer camp started 48 years ago by the late Brigadier Gen. Fred
M. Rosenbaum utilizing partnerships between police, Air/Army
Guard and Housing authority to support and mentor underprivileged
youth.
DOJ, ICITAP (2010)
Partnering to build curriculum and instruct Bangladesh National
Police in modern policing and Community Policing philosophies
Role on This Engagement:
She will be an analyst on the project.
.
Bureau Positions:
2016-2018 Central & East
Precinct Commander
2013-2016 Traffic Division
Commander
2012-2013 North Precinct
Commander/Captain
2010-2012 Chief’s Office
Lieutenant
• Adjunct to Operations
Branch Chief
• Public Information Officer
2007-2010 Lieutenant
• East Precinct
• Lieutenant/Hostage
Negotiation Team Lead
• Personnel Division
2003-2007 Sergeant
• Precincts
• HNT
• Detectives
2000-2003 Detective
• Robbery
• Child Abuse Team
1990-2000 Officer
• Precincts
• Background Invest.
/Recruitment
Training/Education
• Texas A&M All Hazard
Unified Command
• NTOA Command
• HNT/CNT
• Critical Incident Stress
• Crisis Intervention
• Major Event Management
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 1
7.2.4 Project Approach
This section of the proposal illustrates our understanding of the project and the
methodology for conducting the work.
1. Project Understanding
Currently, the Town of Fountain Hills receives law enforcement services through a
contract with the Maricopa County Sheriff’s Office. Full law enforcement services to the
Town are provided through 30 sworn deputies plus assigned civilian staff. In addition to
the core services of patrol and investigations, direct assignments include crime
prevention, school resources, and coverage of the Town’s municipal court. In addition to
these direct services, the Sheriff’s Office has a wide range of supporting services when
needed (e.g., special investigations, tactical response, etc.).
This study is designed to provide the Town with the ‘due diligence’ it needs to ensure the
public that desired services are provided at the best price point. Other options could
include contracting with another entity (such as Scottsdale) or the establishment of a
municipal police department. Strengthening the current contract should also be
considered.
To accomplish this, a data-driven process is needed first to understand what current direct
and indirect services are and what they cost. Once this established, alternatives need to
be evaluated in their entirety to include comparative operating costs as well as capital
and transitional steps and costs.
2. Methodology and Project Management
We are known for the depth and insight of our analysis and our client responsiveness.
We believe very strongly in the science of our craft. As a result, we approach each project
utilizing the following techniques as a baseline:
• Project Management: One critical success in conducting projects of this size and
complexity in an efficient, timely, and effective approach to project management.
The Matrix Consulting Group utilizes project management approaches that
assures we have minimum impact on staff and their daily operations, while
providing effective coordination of the project. Examples include the development
of a project schedule in advance of formal project kickoff, distribution of a data
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 2
collection after understanding what data is available and coordinating onsite efforts
well in advance.
• Information Gathering: Equally important to the success of the project are the
methods that we will use to collect, analyze, and present information in order to
formulate findings and develop and assure acceptance of recommendations. The
Matrix Consulting Group has developed a number of information-gathering tools
and techniques that enable us to gather information efficiently and quickly.
• Interaction: Continual communication between the client and project team is a
critical component of this study. We will have on-going communication with the
City’s project manager and steering committee related to project status and review
of project deliverables.
• Quality Control: Our project manager designs and personally reviews all interim
and final products before they are delivered to the client. This is done to ensure a
quality document and that all services and analytical efforts outlined in our proposal
have been fully completed.
• Implementation: Our projects result in implementable recommendations and
solutions for our clients. We develop an implementation action plan that identifies
the resources required for the implementation, degree of difficulty, and a time
frame for successful implementation.
Our approach to each project results in implementable recommendations, with
approximately 85% of recommendations being implemented.
3. Task Plan
Task 1 Project Initiation and Developing Our Baseline Understanding of
the Law Enforcement Service Environment in Fountain Hills
The purpose of this first task is to develop a thorough understanding of interest in
alternative law enforcement and expectations for this work. Completion of this task will
document current interest to evaluate and implement a law enforcement alternative. This
task and will include:
• Interview Town management and elected officials (if desired):
– Attitudes toward current service levels and responsiveness of the MCSO.
– Views toward service costs and recent changes to costs / cost structure.
– Identification of views toward law enforcement services, including contracts
with other communities (e.g., Scottsdale).
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 3
– Reach out to other potential service providers.
• Make initial contact with representatives of the Maricopa County Sheriff’s Office.
These interviews would discuss views toward law enforcement alternatives and
recent changes in the MCSO.
• Collect data on the contract services provided to the Town by the MCSO, including:
– Community-generated calls for service (CFS) workloads by time of day and
day of week; similarly, document officer-initiated workloads
– Use of proactive time to work with the community to solve problems.
– Crime rates and arrests (by type).
– Field deployments.
– Number of cases followed-up for investigations as well as outcomes.
– Nature and scope of crime prevention programs currently provided.
– All costs associated with law enforcement service delivery.
– Current shared services with County areas.
– Operating and capital costs and trends in costs.
• We would hold a virtual Town Hall style meeting (or in person based on the Town’s
wishes and health protocols at the time) to develop an understanding of the public
on service delivery issues and alternatives. We would supplement opportunities
for public input with an online portal.
We will create a summary profile of the factual information we collect and establish
through interviews.
TASK RESULT
The result of this task would be a final project work plan reflecting the project
team’s updated understanding of the project and the evolution of service
issues. We will also develop a descriptive profile of the services and costs of
contract law enforcement in Fountain Hills.
Task 2 Develop Assumptions for Use in the Analysis of Alternatives.
The project team will review the results of the first task and develop an issues list and a
set of service level and cost assumptions and objectives that can be employed as an
independent basis for structuring and costing an alternative approach to law enforcement.
Issue areas could include:
• Field deployment levels and practices, including boundary drops for patrol.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 4
• Proactivity targets.
• Scope of prevention and community programming.
• Level of investigative services, including assumptions about what is followed-up.
• How support services should be handled.
• How each alternative would be organized, staffed and costs allocated.
• What facilities would be utilized?
TASK RESULT
An annotated list of appropriate assumptions for service delivery. The
assumptions would be reviewed with the Town.
Task 3 Identify the Resources Needed for Law Enforcement Services.
The concept for this task is simple – create an alternative approach to law enforcement
services either through a contract with another jurisdiction or create a municipal police
department. Evaluating staff resource needs are largely identical for each alternative
service based on workloads and service desires. As a result, in this task, the project team
will develop an organizational and staffing plan for a new approach to law enforcement.
In developing the analysis in this task, the project team will evaluate:
• Utilizing the results of our research and interviews to develop a community policing
philosophy and set of strategies.
• The number of staff required to handle each function based on workloads, service
level targets and geography.
– Patrol, based on the assessment of calls for service, proactivity targets and
service area characteristics. A deployment plan would be developed.
– Investigations, based on crime patterns and effective case management
approaches.
– Special investigations and operations functions either on a shared or Town
only basis.
– Administrative and command staff, depending on the model selected.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 5
TASK RESULT
The product of this task will be an analysis of the staffing and organizational
needs. The results of this analysis of staff resources would be reviewed with
the Town.
Task 4 Develop an Analysis of the Operating Costs Associated for with
Each Alternative.
It is critical to develop and evaluate the operating costs associated with the law
enforcement alternatives at a level of detail sufficient for the Town to pursue the choice
with a high level of confidence. As a result, we will structure and estimate the costs, as
follows:
• Summarize the number of line, supervisory and command staff required, by
function and position in the service models.
• Evaluate the costs associated with the staffing plan in the service models.
• Develop the operating expenses by cost component for the service delivery
alternatives.
• We would identify the ‘indirect’ costs associated with operations and overhead
charges.
TASK RESULT
The results of the above would be an operating budget for each alternative. The
results of this analysis of operating costs would be reviewed with the Town.
Task 5 Identify Transitional Issues That Would Need to Be Addressed.
This work task will involve developing transitional strategies and issues associated with
this new service concept (s). This would include:
• Determining the types and number of vehicles and equipment needed.
• How to transition service responsibility to the new service to ensure services are
maintained, yet duplication minimized.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 6
• What interim operational steps could be taken to move from the current approach
to an alternative service delivery model.
TASK RESULT
The results of this task will be capital budget and transition plan for creating a
new service approach for law enforcement. The results of this analysis of
transitional elements and costs would be reviewed with the Town.
Task 6 Provide the Results of the Law Enforcement Analysis
With the completion of the previous tasks the project team will develop draft and final
reports. The current versus the alternative approach(es) to law enforcement services
would be analyzed in terms of the following:
• How the service alternative(s) compares on a cost effectiveness basis to the
current contract approach.
• How the new service approach would be implemented.
• The advantages and disadvantages of each approach.
• Costs, both operating and transitional / start-up.
• Identification of efficiencies in the current contract with the Maricopa County
Sheriff’s Office based on the results of the alternative approach(es).
Once the draft report has been reviewed by the cities we would be prepared to present
the results to the Town in a public meeting.
TASK RESULT
The report on law enforcement service alternative(s) would be provided,
including the service comparisons, cost-benefit analysis, description of
advantages and disadvantages, reasons for recommending (or not), etc.
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 1
7.2.5 Schedule
The table, below, graphically displays the tentative schedule to conduct the Financial
Analysis – Law Enforcement for Fountain Hills The chart shows the sequencing of each
proposed work task, the elapsed time it would take to complete each task. As can be
seen from the chart, we are proposing that the study be completed in 20 weeks if all three
cities participated.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Project Initiation
Service Assumptions
Shared Resource Needs
Cost Analysis
Transitional Issues
Final Report
Proposal for a Financial Analysis – Law Enforcement Fountain Hills, AZ
Matrix Consulting Group Page 1
7.2.6 Pricing
The Matrix Consulting Group is proposing to conduct the Financial Analysis – Law
Enforcement for the City of Fountain Hills at a not-to-exceed cost of $79,000 as described
in the following table:
Project
Manager
VP/
Sr Managers Consultant Totals
Project Initiation 8 32 8 48
Service Assumptions 8 32 4 44
Resource Needs 8 64 16 88
Cost Analysis 8 48 8 64
Transitional Issues 8 48 8 64
Final Report 16 72 16 104
Total Hours / Fees 56 296 52 412
Hourly Rate $225 $185 $125
Total Professional Fees $12,600 $54,600 $7,500 $74,700
Travel Expenses $4,300
Total Project Cost $79,000
Our usual practice is to invoice our clients monthly for time and materials up to the total
project amount. We are also amenable to alternative invoicing arrangements.
11/08/2021 16:14 |TOWN OF FOUNTAIN HILLS |P 1
DPock |BUDGET AMENDMENTS JOURNAL ENTRY PROOF |bgamdent
LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED
ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR____________________________________________________________________________________________________________________________________
YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND
2022 05 69 11/16/2021 BUA LE STUDY 1 1
1 FINAD 6402 FIN-ADMIN PROFESSIONAL FEES 50,500.00 79,000.00 129,500.00
100-10-10-105-100-0106-6402- FM GENAD 11/16/2021
2 GENAD 7010 GENERAL GOVERNMENT ADMIN CONTINGENCY 5,359,143.00 -79,000.00 5,280,143.00
100-10-15-110-100-0106-7010- TO FINAD 11/16/2021
** JOURNAL TOTAL 0.00
11/08/2021 16:14 |TOWN OF FOUNTAIN HILLS |P 2
DPock |BUDGET AMENDMENT JOURNAL ENTRY PROOF |bgamdent
CLERK: DPock
YEAR PER JNL
SRC ACCOUNT ACCOUNT DESC T OB DEBIT CREDIT
EFF DATE JNL DESC REF 1 REF 2 REF 3 LINE DESC____________________________________________________________________________________________________________________________________
2022 5 69
BUA FINAD-6402 PROFESSIONAL FEES 5 79,000.00
11/16/2021 LE STUDY T FM GENAD
BUA GENAD-7010 CONTINGENCY 5 79,000.00
11/16/2021 LE STUDY T TO FINAD _________________ _________________
JOURNAL 2022/05/69 TOTAL .00 .00
11/08/2021 16:14 |TOWN OF FOUNTAIN HILLS |P 3
DPock |BUDGET AMENDMENT JOURNAL ENTRY PROOF |bgamdent
FUND YEAR PER JNL EFF DATE DEBIT CREDIT
ACCOUNT ACCOUNT DESCRIPTION____________________________________________________________________________________________________________________________________
_________________ _________________
FUND TOTAL .00 .00
** END OF REPORT - Generated by DAVID POCK **
ITEM 8. G.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Community Services
Prepared by: Rachael Goodwin, Community Services Director
Staff Contact Information: Rachael Goodwin, Community Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE ACTION: Approval of the Fee Waiver Policy Relating to Youth Fields, Courts, and Sport
Leagues.
Staff Summary (Background)
In the fall of 2020, in conjunction with the adoption of the FY21/22 Fee Schedule, the Town Council
requested staff to compile the value of all event fees waived for FY19. During this process, three areas of
fee waivers were identified: fees for special events, fees for Community Center use, and fees associated
with youth sport groups. Each of these areas face separate challenges as there is no comprehensive
policy that advises when, where, and who may receive fee waivers. There is also limited documentation
regarding the extent of the waivers and inconsistent application of the existing policy. As a result of this
effort, a Fee Waiver Policy has been developed and brought forth for discussion, review and approval
in stages.
Following direction received from the Town Council on Tuesday, September 7, 2021, staff developed the
Youth Field, Court, and Sport League Fee Waiver Policy. The policy provides a uniform set of guidelines
regarding requests for Town resources and the associated rental fees for youth sports, leagues, and
organizations. The proposed policy provides an equitable means for organizers to apply for fee
reductions and to establish mutually beneficial partnerships between the Town and the community. The
policy establishes guidelines, criteria, and processes for youth field, court, and sport league resource
allocation as well as applicable conditions for fee reductions. The policy also outlines that no more than
50 percent of the applicable fees are eligible for being waived. However, in exceptional circumstances,
should additional considerations arise, the policy allows a User Agreement to be considered if mutually
beneficial to the Town and the requesting organization.
The policy also introduces the Fountain Hills Youth Sport Alliance which is intended to affiliate all
Fountain Hills youth-based sport groups under a consistent and equitable set of operational standards,
including a code of conduct and established scheduling priority. In order to qualify for fee reductions for
youth field, court, or league rentals, participation within the Alliance is required. The Youth Sports
Alliance is open to all youth programs and leagues that operate within Fountain Hills and serve the
youth of our community.
Approved fee waivers will not affect the applicant's obligation to comply with the remaining
qualifications, restrictions and criteria of this policy, including:
The organization will be expected to pay other Town costs and/or insurance as required by this
policy or by ordinance.
Members that fail to abide by the guidelines and requirements set forth in this policy will be
ineligible to receive future fee reductions for a period of at least one (1) year.
Scheduling and use of Town facilities are subject to the availability of the requested facilities.
Reduced fee programs do not have preference over Town programs and activities or previous
commitments to third parties.
Applicants are required to adhere to all applicable rules, regulations, laws, and ordinances of the
Town of Fountain Hills and other applicable governmental entities.
Related Ordinance, Policy or Guiding Principle
Sponsorship and Naming Rights Policy
Risk Analysis
Youth sport programs and leagues are a vital part of the recreational services offered within Fountain
Hills. Many organizations are financially unable to pay full rates for the use of Town fields and sports
courts, however the Town incurs direct and indirect costs for usage of the facilities. Fee waivers must be
considered to adequately support youth programs while balancing the resulting fiscal repercussions.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of the Youth Field, Court, and Sport League Fee Waiver Policy
SUGGESTED MOTION
MOVE to Approve the Youth Field, Court, and Sport League Fee Waiver Policy
Attachments
DRAFT- Youth Field, Court and Sport Fee Policy
Form Review
Inbox Reviewed By Date
Community Services Director (Originator)Rachael Goodwin 11/04/2021 04:17 PM
Finance Director David Pock 11/04/2021 06:25 PM
Town Attorney Aaron D. Arnson 11/04/2021 08:35 PM
Town Manager Grady E. Miller 11/05/2021 11:46 AM
Form Started By: Rachael Goodwin Started On: 10/31/2021 01:40 PM
Final Approval Date: 11/05/2021
DRAFT: Youth Field, Court, and Sport League Fee Waiver Policy
The Town establishes the following Youth Field, Court, and Sport League Fee Waiver Policy to provide a
uniform set of guidelines regarding requests for Town resources and the associated rental fees.
Purpose: The Town is regularly requested to reduce park/field/court use fees for youth athletic program
use. This policy is designed to pro vide an equitable means for organizers to apply for fee reductions and
to establish mutually beneficial partnerships between the department and the community. This policy
shall establish the guidelines, criteria, and process for youth field, court, and spo rt league resource
allocation as well as applicable conditions for fee reductions.
Guidelines: Fee reductions are for established facility permit or reservation fees only. Direct cos ts
including but not limited to field preparations, materials, traffic co ntrol, staff time, or other Town fees
are not eligible for a fee reduction under this policy. No more than 50% of the applicable rental fees may
be waived. In exceptional circumstances, should additional considerations arise, a User Agreement will
be considered if mutually beneficial for the Town and the requesting organization.
Fee waivers do not relieve the applicant from payments and obligations for the following:
a. Insurance/indemnification requirements;
b. Other permits as required for the program or a ctivity;
c. Security/damage deposit or other financial obligations associated with the program or activity;
d. Other conditions of approval that may be required.
Fountain Hills Youth Sports Alliance : The Town recognizes the many partnerships that exist within th e
community. It is through these partner programs that many local youth sport leagues are operated. In
order to qualify for fee reductions for youth field, court or league rentals, participation within the
Alliance is required. The Youth Sports Alliance is open to all youth programs and leagues that operate
within Fountain Hills and serve the youth of our community.
Qualifications: In order to qualify for the Fountain Hills Youth Spots Alliance, members must be a youth
sports organization documented by le gal status and insured with General Liability protection per the
Town’s standards. The organization must be led by a board, commission, or other governing group that
is comprised of at least 50% Fountain Hills residents. Members must be in good financial s tanding with
the Town of Fountain Hills and provide sports based youth development programs that compliment
Town programming efforts and are not in direct competition. Please review the Fountain Hills Youth
Sports Alliance Handbook for further details.
Alliance members must also provide:
a. An organizational chart that lists all formal board members, commissioners, or governing
individuals (ex: league president, director or executive officer), and proof of Fountain Hills
residency.
b. The most recent organizati onal meeting minutes.
c. Operating guidelines in the form of bylaws, rules, regulations, and/or written organizational
operating policies and procedures.
d. Organizational financial statements, records, budgets and/or ledgers consistent with generally
accepted accounting principles.
e. A current certificate of insurance, meeting all insurance requirements as per Town of Fountain
Hills standards.
f. A copy of the most recent league rosters to include the required minimum of 80% Fountain
Hills residents.
g. A written code of conduct that follows the Arizona Sport Summit Accord, and that all members
of the organization shall abide by throughout the Alliance year.
Priority: The following has been established to create a priority allocation system to allow for
cooperative use of the limited fields and court spaces available within Fountain Hills.
Priority 1- Fountain Hills Town Programs and Field/Facility Maintenance and Repairs
Priority 2- Organizations with Contractual Agreements with the Town of Fountain Hills , including
Intergovernmental Agreements, Contractual Rentals, etc.
Priority 3- Members of the Sports Alliance -In Season/Primary Season
a) Prior site history
b) N umber of participants
Priority 4- Member of the Sports Alliance - Out of Season/Other Season
a) Prior site history
b) Number of participants
Priority 5- All other requests for field and court usage
Other Policy Obligations: Any reduction of Town of Fountain Hills facility fees above will not affect the
applicant's obligation to comply with the remaining qualifications, restrictions and criteria of this policy.
a. The organization will be expected to pay other Town costs or insurance as required by this policy
or by ordinance.
b. Members that fail to abide by the guidelines and requirements set forth in this policy will be
ineligible to receive future fee waivers or fee reductions for a period of at least one (1) year .
c. Scheduling and use of Town facilities are subject to the availability of the requested facilities.
d. Reduced fee programs do not have preference over Town programs and activities or previous
commitments to third parties.
e. Applicants are required to adhere t o all applicable rules, regulations, laws, and ordinances of the
Town of Fountain Hills and other applicable governmental entities.
ITEM 8. H.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/16/2021 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Community Services
Prepared by: Rachael Goodwin, Community Services Director
Staff Contact Information: Rachael Goodwin, Community Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND
POSSIBLE DIRECTION: Community Center and Special Event Fee Waiver Policy.
Staff Summary (Background)
Community Center Background and Recommendations
The Community Center is a facility that offers space for a multitude of community programs. It serves as
a recreation center, senior service center, meeting facility, performance venue, event space, exhibit hall,
and more. Many local and regional groups use the facility as their hub, hosting meetings, social
gatherings, etc. Over time, the number of waived rentals within the facility has increased, through
expanded scope of the users or increased time requested for events. This increased demand has placed
a burden on the resources of the community center including operational staff time, space availability,
as well as direct costs incurred.
After staff review, the following policy options are recommended:
All Fountain Hills based non-profit groups are eligible for a 50% fee reduction from the established
residential/non-profit rates. A/V equipment will be available for local non-profit group use at no
additional cost.
Classroom space will be reservable after 2pm on weekdays and must adhere to the Community
Center hours of operation.
Reservation start and end times must be accounted for in their entirety, including any pre- or
post-time necessary for set up, clean up, catering needs, etc.
Weekend reservations require a minimum of two ballrooms with a minimum of four hour rental
time
Reservations can be made up to six months in advance and are subject to availability.
Proof of 501-C3 status will be required for all groups seeking fee reductions.
It is recognized that many groups will be impacted by these changes and staff will make every attempt
to work with our user groups to ensure a well-informed transitions process. Staff will work with groups
to help minimize disruptions to the dates and times they have traditionally held. In some exceptional
circumstances, programs that serve an altruistic, essential mission or enhance the programs offered
within the community center will be permitted.
Special Events Background and Recommendations
Special events are a beloved part of the Fountain Hills community. Events serve as a gathering point as
well as a tourism draw for the community. However, events within town parks and downtown area are
costly in terms of staff time, resources, and impact. Extensive preparation work, as well as clean up
efforts, often fall to staff to ensure the public spaces are ready for daily use following events. Fees for
use of public spaces are just a portion of the financial burden of producing events. Costs for road
closures including MCSO deputies, electrical and water access, damage to turf, roadways and above/
below grade infrastructure are other costs that are often absorbed by the town. Special events bring
value and positive impacts to the community, however, fee waivers should be considered only in rare
circumstances. The following recommendations are offered for Town Council consideration in an effort
to provide a uniform set of guidelines regarding requests for Town resources and associated rental fees:
All Fountain Hills based non-profit groups are eligible for a 50% fee reduction from the established
residential/non-profit rates.
Fees for direct costs including MCSO support, road closure implementation, logistic items such as
restrooms, lights, fencing, etc., are not eligible for waivers.
Reservation start and end times must be accounted for in their entirety, including any pre- or
post-time necessary for set up or clean up, vendor set up, logistic deliveries, etc.
All events, regardless of fee waivers, must submit a Special Event Application for review. The
application must meet all Town requirements including established deadlines, layout plans,
insurance certificates, traffic control plans, etc.
Town permit fees or damage deposits are not eligible for fee waivers.
Proof of 501-C3 status will be required for all organizations requesting fee reductions.
As with the Community Center, it is recognized that many groups will be impacted by these changes and
staff will work with user groups to ensure understanding of the fee waiver policy.
Assuming the Town Council agrees with the staff recommended Fee Waiver Policy, the previous Fee
Waiver Policy encompassing "Legacy Events" will no longer apply. This will impact the Fountain Festival
of Arts and Crafts, The Fine Arts and Craft Show and the Oktoberfest, all of which are produced by the
Fountain Hills Chamber of Commerce. Because this exception basis will no longer apply, a separate User
Agreement is recommended to be drafted between the Town and the Chamber. The user agreement
will outline in-kind services provided to the community by the Chamber of Commerce and other related
programs to demonstrate the value of these in relation to the value of the fee waivers. This is similar to
the direction that the Town Council provided to staff regarding youth sports leagues.
Related Ordinance, Policy or Guiding Principle
Naming Rights and Sponsorship Policy
Risk Analysis
Fee waivers for the Community Center and Special Events space create direct and indirect costs not
allocated for within departmental budgets and potential equity and fairness issues for different user
groups that pay different user fees for the same level of services.
Recommendation(s) by Board(s) or Commission(s)
NA
Staff Recommendation(s)
Staff seeks Council approval of the recommended policy guidelines relating to the Community Center
Staff seeks Council approval of the recommended policy guidelines relating to the Community Center
and Special Events.
SUGGESTED MOTION
MOVE to direct staff to develop a final draft of the Fee Waiver Policy with the policy direction received
from the Town Council.
Attachments
2016 Sponsorship and Naming Rights Policy
Form Review
Inbox Reviewed By Date
Community Services Director (Originator)Rachael Goodwin 11/03/2021 04:05 PM
Finance Director David Pock 11/04/2021 07:46 AM
Town Attorney Aaron D. Arnson 11/04/2021 07:57 AM
Town Manager Grady E. Miller 11/04/2021 08:59 AM
Form Started By: Rachael Goodwin Started On: 11/01/2021 08:47 AM
Final Approval Date: 11/04/2021