HomeMy WebLinkAboutSPAC.2013.0821.Minutes TOWN OF FOUNTAIN HILLS
MINUTES OF THE FOUNTAIN HILLS
��•- STRATEGIC PLANNING ADVISORY COMMISSION MEETING
August 21, 2013
AGENDA ITEM#1—CALL TO ORDER
Chair Nick DePorter called the meeting to order in Council Chambers at Town Hall at 5:00 p.m.
AGENDA ITEM#2—ROLL CALL
The following members of the Strategic Planning Advisory Commission were present for roll call: Chair Nick
DePorter, Vice Chair Audra Koester Thomas, and Commissioners Peter Bordow, Alan Magazine, and Dana Saar.
Commissioner Nancy Ordowski attended via teleconference. Commissioner Alice Brovan was absent. Youth
Commissioner Kate Domin joined the meeting at 5:20 p.m.
Also present were Town Manager Ken Buchanan, Deputy Town Manager/Finance Director Julie Ghetti, and
Recording Secretary Shaunna Williams.
AGENDA ITEM#3—CALL TO THE PUBLIC
No one appeared at the call to the public.
AGENDA ITEM#4— ELECTION OF OFFICERS
Chair DePorter opened nominations for officers.
Ler Commissioner Bordow NOMINATED Chair DePorter as Chair.
Chair DePorter nominated Commissioner Magazine as Chair.
Commissioner Ordowski SECONDED both nominations.
Chair DePorter withdrew from the nomination as Chair.
There being no other nominations for Chair, Chair DePorter call for the vote. All Commissioners voted
UNANIMOUSLY in favor of Commissioner Magazine as Chair, with the exception of Commissioner Magazine
who ABSTAINED.
Commissioner DePorter passed the gavel to Chair Magazine.
Chair Magazine opened nominations for Vice Chair and then NOMINATED Commissioner DePorter as Vice
Chair.
Commissioner Bordow SECONDED the nomination.
There being no other nominations for Vice Chair, Chair Magazine called for the vote and all Commissioners in
attendance voted UNANIMOUSLY in favor of Commissioner DePorter as Vice Chair.
Commissioner Magazine congratulated Vice Chair DePorter on an outstanding year as Chair.
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AGENDA ITEM#5— CONSIDERATION OF APPROVING MAY 22,2013 MEETING MINUTES
Commissioner Koester Thomas MOVED to approve the May 22, 2013 meeting minutes and Commissioner
Bordow SECONDED the motion, which CARRIED UNANIMOUSLY by those present.
AGENDA ITEM#6—TOWN MANAGER'S UPDATE
a. Road bond-Mr. Buchanan reviewed a PowerPoint presentation entitled"Town of Fountain Hills,
Saguaro Blvd. Reconstruction" and Resolution 2013-05 which calls for the road bond election(copies
attached).
Before going to questions for Mr. Buchanan,Chair Magazine apologized for failing to welcome
Commissioners Saar and Ordowski to the Commission. He then specifically welcomed them.
Mr. Buchanan responded to questions by stating that the bond does not include any additional sidewalks
or lights;that the bond includes new median curb and repairs to medians damaged during construction;
that potholes will repaired to keep the street safe between now and the time reconstruction is started.
Chair Magazine welcomed Youth Commissioner Kate Domin to the meeting.
Mr. Buchanan further responded to questions by stating that at the intersection of Saguaro and Avenue of
the Fountains the medians will be extended to make crosswalks more secure and improve turning
radiuses;that there are very few accidents at that intersection even though it is a busy intersection;that the
intersection is one of the busiest pedestrian intersections in town and people should feel comfortable
walking across Saguaro to the park;that the medians will provide a place for pedestrians to stop while
walking across Saguaro;that there are no plans for lights at that intersection, but that conduit will be
placed during construction for use in the future to avoid digging up the road.
b. Economic development activities—Mr. Buchanan stated that the Economic Development Plan was
adopted in June;that the plan gives him the latitude to utilize an informal advisory group; that the plan
calls for a part-time Economic Development Specialist to implement some of the business attraction
initiatives and that deadline for responses to the Request for Proposals was extended to September 5; that
the Tourism initiative was contracted out to the Chamber of Commerce; that the downtown strategy has
not been addressed yet and that he would like discuss it with SPAC;that although there is an Area
Specific Plan there is no prioritization or implementation plan for it;that the Council entered into a
buyer/broker agreement with NAI Horizon to promote commercial business and that they have already
provided the Town with an inventory of available buildings for retail, commercial and industrial use; that
the Town has been working with Prevco on a business expansion project but has not yet been successful
in finding a suitable location.
In responding to questions from the Commission,Mr.Buchanan stated that the list of properties provided
by NAI Horizon is available on the Town website;that the part-time Economic Development position
will"be a start"on business attraction and that the position will be filled by a person rather than a
company;that NAI Horizon has been advised that the Town's priority is business and that they have
already put together a package on a lead from GPEC;that SPAC will be briefed specifically as to whether
NAI Horizon is being successful;that Prevco called him personally seeking relocation assistance; that he
is hopeful that both the part-time Economic Development Specialist and discussions with SPAC will
provide ideas about marketing the community with a focus business attraction.
Chair Magazine pointed out that Economic Development Plan is on the Town website and that SPAC
helped develop the Economic Development matrix that begins on page 16.
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AGENDA ITEM#7-QUARTERLY UPDATE ON TOWN FINANCES PRESENTED BY DEPUTY
Car TOWN MANAGER/FINANCE DIRECTOR JULIE GHETTI
Ms. Ghetti gave a PowerPoint presentation entitled"Quarterly Financial Report, Quarter Ending June 2013"and
referenced the"Town of Fountain Hills Quarterly Budget Report, June 2013"(copies attached). There were no
questions from the Commission for Ms. Ghetti.
AGENDA ITEM#8—DISCUSSION REGARDING SPAC'S ROLE AND RESPONSIBILITIES
Mr. Buchanan reviewed SPAC's Powers and Duties contained in the Bylaws in Resolution 2009-09. He
emphasized SPAC's duty to make recommendations with respect to implementation of strategic priorities.
Chair Magazine suggested that SPAC should play a role with respect to the Economic Development Plan.
Mr. Buchanan stated that he has the latitude to utilize informal or formal processes to implement the Economic
Development Plan; that he would like to utilize SPAC as a formal process.
Chair Magazine suggested that(1) SPAC should receive reports on the implementation process; (2)that SPAC
could act in advisory capacity with respect to prioritizing short term objectives; and(3)that SPAC could act in
advisory capacity as to which priorities might be handled by outside organizations and then go to those outside
organizations to ask for help. He stated SPAC could help put together small groups of experts to advise on what
we might do to attract certain industries.
Mr. Buchanan stated that he needs implementation plans rather than more opinions.
Chair Magazine indicated that he and Mr. Buchanan are in agreement.
(1Iw Commissioner Koester Thomas suggested that a discussion item be added to the next SPAC meeting regarding
brainstorming options or projects that SPAC could suggest to the Town Manager and/or Council as part of its
forthcoming annual work plan.
Mr. Buchanan suggested an additional business item at the next SPAC meeting be to talk about prioritization of
the immediate goals of the Economic Development Plan.
Commissioner Koester Thomas offered her personal services to the Town Manager to review implementation and
prioritization ideas.
Commissioner Bordow offered his personal services to the Town Manager with respect to attracting high tech
businesses (a mid-term priority).
Chair Magazine emphasized that attracting high tech business should not take resources away from the immediate
priorities of the Economic Development plan.
Commissioner Saar stated that he believes Fountain Hills is missing a bullet list or brochure on why someone
should bring their business to town. He stated that education is a clean industry that would benefit the town, as
would technology and wellness.
Mr. Buchanan stated that higher education is a part of the plan.
Chair Magazine noted that the Council awarded the Visitors Bureau over$100,000 this year and that the Visitors
Bureau should be working on some of what Commissioner Saar suggested.
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Page 3 of 4
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Commissioner Ordowski stated that the Chamber has put together a new website. She observed that something
missing from the website is why businesses should come to Fountain Hills and how they can go about doing that.
Mr. Buchanan suggested that the Chamber should be invited to come to a SPAC meeting to give a presentation on
its website strategy. He offered to speak to Frank Ferrara about having Mark McDermott come in.
Commissioner Bordow and Vice Chair DePorter suggested having additional presentations from Arizona
Business Advisors and the Fountain Hills Business Alliance, respectively.
Chair Magazine stated that SPAC will ultimately need to reach out to a lot of groups but that we should start with
the Chamber.
Mr. Buchanan referred to the"Semi-Annual Report, Strategic Plan Goals and Operational Priorities, FY2012-13"
(copy attached). He stated that he would be happy to respond to questions from Commissioners after they have
had a chance to review the report.
AGENDA ITEM#9—ANNUAL REVIEW OF STRATEGIC PLAN/RECOMMENDED CHANGES TO
STRATEGIC PLAN
At the request of Chair Magazine, Commissioner Koester Thomas reviewed the process whereby the Strategic
Plan is reviewed each fall for corrections or additions.
Chair Magazine asked the Commissioners to review the Strategic Plan and be prepared to discuss suggested
changes at the next SPAC meeting.
AGENDA ITEM#10—SCHEDULE UPCOMING MEETINGS
SPAC meetings were scheduled on September 25, 2013 at 5:00 p.m. and on October 23, 2013 at 5:00 p.m.
AGENDA ITEM#11 —ADJOURN
Commissioner Bordow MOVED to adjourn at 6:20 p.m. and Vice Chair DePorter SECONDED the motion,
which CARRIED UNANIMOUSLY by those present.
Shaunna Williams, Recording Secretary
Page 4 of 4
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RESOLUTION NO. 2013-05
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ORDERING AND CALLING A SPECIAL
BOND ELECTION TO BE HELD IN AND FOR THE TOWN OF FOUNTAIN
HILLS, ARIZONA, ON NOVEMBER 5, 2013, TO SUBMIT TO THE
QUALIFIED ELECTORS THEREOF THE QUESTION OF AUTHORIZING
THE ISSUANCE AND SALE OF EIGHT MILLION TWO HUNDRED
THOUSAND DOLLARS ($8,200,000) PRINCIPAL AMOUNT OF GENERAL
OBLIGATION BONDS, PROJECT OF 2013.
WHEREAS, the Mayor and Council of the Town of Fountain Hills, Arizona, (the "Town
Council") believe it to be in the best interest of the Town of Fountain Hills (the "Town") to
authorize the issuance and sale of eight million two hundred thousand dollars ($8,200,000)
principal amount of General Obligation Bonds, which bonds would provide funding for the
purposes set forth in the form of the ballot attached hereto as Exhibit A; and
WHEREAS, it is necessary that the Town Council submit the question of the issuance
and sale of such bonds to the qualified electors of the Town; and
WHEREAS, the Council may consolidate the special election with any other election
conducted in the Town on November 5, 2013.
L NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION I. Order Election. Pursuant to Arizona Revised Statutes ("A.R.S."), Section
35-453, as amended, a special election in the Town of Fountain Hills, Arizona, is hereby ordered
and called to be held on November 5, 2013, to submit to the qualified electors of the Town the
question as shown on the form of ballot attached hereto and marked Exhibit A, which is a part of
this Resolution and the terms of which are incorporated by reference herein.
SECTION 2. Call for Election. Pursuant to A.R.S. § 35-455(B), the aggregate amount of
bonds set forth above shall bear a maximum rate of interest of eight percent (8%), may run for a
minimum number of years from their date of one (1) year or fraction thereof and a maximum of
fifteen (15) years. The current outstanding general obligation debt of the Town for the purposes
included in the twenty percent (20%) debt limit category is $3,755,000.00 and for the purposes
included in the six percent (6%) debt limit category is $0.00. The current twenty percent (20%)
and six percent (6%) constitutional debt limits of the Town are $75,504,344.00 and
$22,651,303.00, respectively. For purposes of completion and distribution of the informational
pamphlet described in Section 4 of this Resolution, the amounts of the Town's outstanding
general obligation debt and the constitutional debt limits stated in this Section may be
recalculated, revised and replaced with updated amounts based upon and calculated from
updated information. The bonds may be refunded by the issuance of refunding bonds of a
weighted average maturity of less than 75%of the weighted average maturity of the bonds being
refunded.
19221685
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SECTION 3. Publication of the Call and Notice of Election. The publication of the call
and notice of the special election shall be given, or caused to be given, by the Town Clerk, as
provided by law, and as may be deemed necessary and appropriate in the Town Clerk's
discretion to advise the public of the election.
SECTION 4. Informational Pamphlet. The Town Clerk is hereby directed to cause the
preparation and distribution of an informational pamphlet, which shall include the sample ballot
for the Town pursuant to and meeting the requirements of A.R.S. § 35-454 and, if the Town
Clerk determines it to be in the Town's best interests, combine such informational pamphlet and
sample ballot with any other informational pamphlet being prepared for the November 5, 2013
Special Election. The officers of the Town are hereby authorized to prepare and deliver or cause
to be prepared and delivered to the Town Clerk the information necessary or appropriate for
completing the informational pamphlet, including, without limitation: the estimated debt
retirement schedule for the current amount of bonds outstanding; the estimated debt retirement
schedule for the proposed bond authorization; source of repayment; the estimated issuance costs;
the estimated tax impact on an average owner-occupied residence, commercial, industrial and
agricultural or other vacant property; the estimated total cost of the proposed bond authorization,
including principal and interest; the current outstanding general obligation debt and
constitutional debt limitation; an introductory statement on behalf of the Town; and a statement
of the purpose for which the bonds are to be issued. The informational pamphlet is to be mailed
not less than thirty-five (35) days before the date of the special election to the residence of each
registered voter of the Town as shown on the general county register. The Town Clerk is hereby
directed to submit a copy of the informational pamphlet to the Arizona Department of Revenue
within thirty(30)days after the election.
SECTION 5. Submitting Arguments. Pursuant to A.R.S. § 35-454, as amended, the
Town hereby sets the date of August 7, 2013, at the hour of 5:00 p.m., as the deadline to submit
arguments "for" or"against" authorization to issue the bonds. The Town Clerk is authorized to
publish in a newspaper of general circulation within the Town a notice stating the deadline for
the filing with the Town of arguments "for" or "against" the bonds, for inclusion in the
informational pamphlet pertaining to the bonds. A form of the notice requesting arguments"for"
and "against", including the deadline for submitting arguments, is attached hereto as Exhibit B.
The Town Clerk is authorized to revise the form of notice hereto as necessary to comply with all
applicable laws. Each argument shall not exceed 300 words in length and shall contain the
original, notarized signature of each person sponsoring it. If the argument is sponsored by an
organization, the original, notarized signatures of two executive officers are required. If the
argument is sponsored by a political committee, the original, notarized signature of the
committee's chair or treasurer is required. Persons signing shall also identify themselves by
giving their residence or post office address and a telephone number, which shall not appear in
the pamphlet. With each argument supporting or opposing the proposition, one hundred dollars
($100.00) shall be deposited with the Town Clerk, for a proportionate cost of paper and printing
the argument.
SECTION 6. Conduct of Election. The election will be conducted by mail ballot
according to A.R.S. § 16-409, as amended, and the Town Clerk is hereby authorized to
determine the manner in which the election shall be conducted and to sign Maricopa County's
Menu of Services agreement for the conduct of the November 5, 2013 Special Election. The
r.rd
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election shall be conducted and the votes cast thereat shall be counted and tabulated, and the
returns thereof shall be made in the manner provided by law. Only persons who are qualified
electors of the Town shall vote at the election. The Fountain Hills Town Hall, located at 16705
E. Avenue of the Fountains, and any office of the Maricopa County Recorder, are hereby
designated as ballot depositories pursuant to A.R.S. § 16-411, as amended, at which locations
voters may deposit marked ballots until 7:00 p.m. on November 5, 2013. Further, the Fountain
Hills Town Hall and any office of the Maricopa County Recorder are hereby designated as the
Town's ballot replacement locations at which a voter may obtain a replacement ballot until 7:00
p.m. on November 5, 2013. The Town Clerk shall determine and develop the processes for
conducting an all mail ballot election for the question submitted to the qualified electors of the
Town. The special election may be consolidated with any other election conducted in the Town
on November 5, 2013.
•
SECTION 7. Deadline for Voter Registration and Mailing of Ballots. Maricopa County
registration and voting lists will be used for the special election. To be qualified to vote in the
special election, a Town resident must be registered to vote by Monday, October 7, 2013. In an
all-mail ballot election, all qualified electors who were registered by the registration deadline
will receive a mail ballot. Official ballots for the special election will be mailed by Maricopa
County Elections to qualified electors on Thursday, October 10, 2013. The Fountain Hills Town
Hall and Maricopa County Recorder offices will open as the ballot replacement location on
Monday, October 14,2013.
SECTION 8. Voting Rights Act Submission and Spanish translation. To comply with
the Voting Rights Act of 1965, as amended, the proceedings pertaining to this election will be
translated into Spanish and posted, published, and/or recorded in each instance where posting,
publication, and/or recording for such proceedings are required, such as this call of election, the
notice of election, ballots, all early voting materials, and all instructions contained in the mail
ballot materials.
SECTION 9. Ballots. The Town Clerk is hereby authorized and directed to cause ballots
to be printed and mailed to the qualified electors offering to vote at the election. The special
bond election may be conducted in the manner determined to be in the best interests of the Town
by the Maricopa County Election Department and the Town Council or either of them. The
Mayor and the Town Clerk, or either of them, is authorized and directed to enter into one or
more contracts or agreements with the Maricopa County Recorder and with the Maricopa County
Elections Department for election services.
SECTION 10. Canvass of Election. The returns of the special election shall be made to
the Town Council, which shall meet on a day that is within twenty (20) days after the election to
canvass the returns and certify the results, all as provided by law. The Mayor and Council will
be governed by the vote of the majority on the question submitted. The Town Clerk shall record
a copy of the Council resolution canvassing the results in the office of the Maricopa County
Recorder.
[SIGNATURES ON FOLLOWING PAGE]
C
1922168.5
3
1
ti
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills. •
Arizona, March 21, 2013.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
inda M. Kava a h,Mayo Bevelyn J. Ben , wn Clerk
REVIEWED BY: APP VED AS TO FORM:
(30.t.Q0- 0
Ken Buchanan, Town Manager Andrew J. McGuire,Town Attorney
CERTIFICATION
1, Bevelyn J. Bender, the duly appointed and acting Town Clerk of the Town of Fountain
Hills, Arizona, do hereby certify that the above and foregoing Resolution No. 2013-05 was duly
passed by the Town Council of the Town of Fountain Hills, Arizona, at a regular meeting held
on March 21, 2013, and the vote was 7 aye's and 0 nay's and that the Mayor and
Councilmembers were present thereat.
ELI
Bevelyn.1. Be er, T/wn Clerk
1922168.5
4
EXHIBIT A
TO
RESOLUTION NO. 2013-05
OFFICIAL BALLOT
FOR SPECIAL ELECTION IN AND FOR THE TOWN OF FOUNTAIN HILLS,
ARIZONA ON NOVEMBER 5,2013
Question
Shall the Mayor and Council of the Town of Fountain Hills, Arizona, be authorized to issue and
sell bonds of the Town of Fountain Hills in the principal amount of$8,200,000, to provide funds
to design, improve, construct, reconstruct and rehabilitate Saguaro Boulevard, including any
curb, gutter, sidewalks, traffic signal/control systems, underground utility lines, landscaping, and
other improvements appurtenant or adjacent thereto; and to liquidate any indebtedness incurred
for such purposes? The bonds shall be issued as general obligation bonds of the Town, payable
from the levy of an ad valorem tax against the taxable property located within the Town. The
bonds shall bear interest at a rate of not to exceed eight percent (8%) per annum, said interest
being payable semiannually on the first day of January and the first day of July of each year until
the maturity of each bond. The bonds shall mature over a period of not to exceed fifteen (15)
years from the date of their issuance. The bonds, and any bonds issued to refund the Town's
bonds, may be sold at prices that include premiums not greater than permitted by law, shall be
issued in the amount of$5,000 each or multiples thereof and mature on the first day of the same
month of each year which may be either January or July. The bonds may be refunded by the
issuance of refunding bonds of a weighted average maturity of less than 75% of the weighted
average maturity of the bonds being refunded.
The issuance of these bonds will result in a property tax increase sufficient to pay the annual debt
service on the bonds.
FOR THE BONDS I I
AGAINST THE BONDS
NOTICE TO VOTERS:
The voter shall place a mark in the square opposite the words "For the Bonds" or "Against the
Bonds", whichever words express the voter's choice. Only qualified electors of the Town of
Fountain Hills, Arizona are eligible to vote at this election.
1922168.5
I
EXHIBIT B
TO
RESOLUTION NO. 2013-05
TOWN OF FOUNTAIN HILLS
NOVEMBER 5,2013 SPECIAL ELECTION
REQUEST FOR STATEMENTS "FOR"OR"AGAINST"
THE TOWN OF FOUNTAIN HILLS,ARIZONA
BOND PROPOSITION
The Town of Fountain Hills, Arizona (the "Town"), will hold a Special Election, on Tuesday,
November 5, 2013 to seek approval of bonds for transportation and street upgrades in the
principal amount not to exceed $8,200,000. The estimated average tax rate for the proposed
bond authorization is $ per$100 of secondary assessed valuation.
Ballot language for Proposition _ is available in the Town Clerk's Office and on the Internet:
www.fh.az.gov.
Proposition will be presented to the qualified voters of the Town of Fountain Hills in an
informational pamphlet. The pamphlet will be mailed to the households of all registered voters
prior to the start of early voting.
Any persons wishing to submit a statement "for" or "against" the bond question may be
submitted for publication in the informational pamphlet. Each argument cannot exceed 300
words in length and must contain the original, notarized signature of each person sponsoring it.
The residence or post office address and phone number of each signer must be on the argument,
but will not be printed in the informational pamphlet. If an argument is sponsored by an
organization, the original, notarized signatures of two executive officers of the organization are
required. If an argument is sponsored by a political committee, the original, notarized signature
of the committee's chair or treasurer is required. A payment of$100.00, to offset a portion of
the cost of paper and printing the pamphlet, must accompany the filing of each argument.
Arguments must be submitted by 5:00 p.m., Wednesday, August 7, 2013 at the following
location:
Fountain Hills Town Clerk's Office,
16705 E.Avenue of the Fountains, Fountain Hills, Arizona 85268
For more information, please call the Fountain Hills Town Clerk at(480) 816.51 15.
1922168 5
(/ � /� � //1
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
HORIZON REAL ESTATE GROUP,INC.
THIS PROFESSIONAL SERVICES AGREEMENT (this "Agreement") is entered into
as of June 6, 2013, between the Town of Fountain Hills, an Arizona municipal corporation (the
"Town") and Horizon Real Estate Group, Inc., an Arizona corporation, d/b/a NAI Horizon (the
"Broker").
RECITALS
A. The Town issued a Request for Qualifications, "Promotion of Commercial
Business in Fountain Hills" (the "RFQ"), a copy of which is on file in the Town Clerk's Office,
seeking statements of qualifications from vendors for professional real estate consulting and
brokerage services.
B. The Broker submitted a Statement of Qualifications (the "SOQ") in response to
the RFQ, which is attached hereto as Exhibit A and incorporated herein by reference, and the
Town desires to enter into an agreement with the Broker to promote commercial business in
Fountain Hills(the"Services").
I. AGREEMENT
NOW, THEREFORE, in consideration of the foregoing 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
Broker 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 June 30, 2014 (the "Initial Term"),
unless terminated as otherwise provided pursuant to the terms and conditions of this Agreement.
After the expiration of the Initial Term, this Agreement may be renewed for up to four
successive one-year terms(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 in each subsequent year, (ii)
at least 30 days prior to the end of the then-current term of the Agreement, the Broker requests,
in writing, to extend the 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 le
withheld by the Town for any reason. The Broker's failure to seek a renewal of this Agreement
shall cause the A"cfreez ert to term ate at the er/d of the then-c= term of this Agreement:
provided, however, that the Town may, at its discretion and wit` geeinene of the Broker,
elece to waive this requirement and :-new this Agreement. The t._:,_Al Term and any Renewal
Term(s) are collectively referred to herein as the "Term." Upon renewal, the terms and
conditions of this Agreement shalt remain in full force and effect.
L
1950466.4
I
2. Scope of Work. Broker shall provide the Services as set forth in the Scope of
Work,attached hereto as Exhibit B and incorporated herein by reference.
3. Exclusive Appointment Broker Responsibilities. The Town hereby appoints
Broker as the sole and exclusive agent of the Town for the purpose of providing the Services in
an effort to generate commercial property leases and sales for new and expanding business
within the corporate limits of the Town. During the term of this Agreement,the Broker shall use
commercially reasonable efforts to promote, obtain, and consummate lease(s) and/or sales of
various property within the corporate limits of the Town. Broker shall also provide the
following:
3.1 Availability. Broker shall be and remain available at reasonable times and
places to consult with the Town in connection with the above-described sales and/or lease(s) of
property.
3.2 Time and Effort. Broker shall devote such effort and time as required to
provide or perform the Services in a good and workmanlike manner.
3.3 Advertising. Broker may advertise, at its own expense, the various Town-
owned properties from time to time in various newspapers, magazines and publications and may
prepare and distribute Broker mailers and direct mailers related to properties in Fountain Hills.
Such advertisement of Town-owned properties may be in conjunction with advertisement of
other properties for which the Broker has authority.
mid
3.4 Cooperation with Other Real Estate Professionals. Broker shall cooperate
with and provide real estate professionals with any and all information, records and docu-
mentation pertaining to available Fountain Hills properties that are not subject to confidentiality
by Broker.
3.5 Broker to Provide Information. During the term of this Agreement,
Broker shall provide the Town with any market studies it produces or obtains that relate to
property in Fountain Hills or similar projects in the Phoenix metropolitan area. During the term
of this Agreement,Broker shall periodically make recommendations to the Town concerning the
marketing of Fountain Hills property for sale and ways to improve the marketability of Fountain
Hills property for sale. In no event shall the Town be obligated to implement any such
recommendations.
3.6 Dual Representation. In its efforts to best represent the Town, Broker will
actively solicit the largest possible range and selection of potential buyers in attempting to affect
c. sale or lease of property in Fountain Hills. In doing so, Town hereby acknowledges thc:.:
Bret-. may and is hereby permitted and authorized by Town to solicit such potential buyers and
any such potential buyeh. qlat partiy's agent with respcc ;.,: any o e' to purchase,
Cons of the terms and conditions of said purchase and the actual pumhq3e and sale or
lw : uf property to any such buyer. The Town further acknowledges that Broker's
representation of any such buyer may be simultaneous with Broker's representation of the Town
and this conflict of interest will prohibit Broker from advocating exclusively on the Town's
•
1950466.4
2
ii,,,. behalf while attempting to affect a sale or lease of property. The Town hereby affirms and
authorizes the creation of said dual agency.
3.7 Costs. Broker shall be responsible for all costs associated with typical
information to be distributed regarding Town-owned properties such as industry-standard single-
page, double-sided advertising flyers prepared by Broker for properties that the Town has
exclusively listed with the Broker, but shall not, without the prior, written concurrence of the
Town, incur costs for items Broker would consider "additional cost items" that Broker expects
the Town to pay. Examples of "additional cost items" include third-party reports or studies
relating to Town property and large-scale advertising such as full-page newspaper or magazine
advertisements or brochures.
4. Broker's Representations. Broker acknowledges that the Town is entering into
this Agreement in reliance on Broker's special abilities with respect to the sale and/or leasing of
commercial properties similar to property within Fountain Hills. Broker represents and warrants
that Broker will use its best reasonable efforts, skill,judgment and abilities to market and show
Fountain Hills property, offer such property for sale or lease and procure prospective parties for
such property. Broker further represents and warrants that it will perform under this Agreement
in accordance with the highest professional standards in compliance with all applicable laws.
5. Town Responsibilities.
5.1 Referrals, Property Data and Owner/Broker Cooperation. During the term
of this Agreement,Town agrees to refer to Broker all inquiries with respect to leasing and sale of
property within the corporate limits of the Town and shall disclose all prospective tenants to
Broker. Town agrees to cooperate with Broker in bringing about the leasing and sale of property
and shall provide to Broker all relevant data, records and documentation pertaining to property
within Fountain Hills that will assist Broker in promoting leasing and selling the property.
5.2 Advertising. Costs of brochures and other advertising materials approved
by the Town shall be paid by the Town, except that the costs of industry-standard single-page,
double-sided advertising flyers prepared by Broker shall be paid by Broker as set forth in
Subsection 3.7 above.
6. Compensation. The Town shall pay Broker a consulting fee of$225 per hour for
the performance of consulting and marketing services not related to the sale or lease of property
owned by the Town. All fees derived by the Broker in connection with sale or lease of property
in connection with this Agreement shall be through separate agreement between the Broker and
property owners or tenants/buyers. Fees in connection with properties for sale or lease that are
owned by the Town will be determined between the Broker and the Town through separate
agreement
Documents. All docu ncluelEnp any intellectu rty 60h thereto,
preparf ; submitted to the Town ant to this Agreement sh- _. the property of the
Town.
4
1950466.4
3
8. Broker Personnel. Broker shall provide adequate, experienced personnel, capable AI
of and devoted to the successful completion of the Services to be performed under this
Agreement. Broker agrees to assign specific individuals to key positions. Broker 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, Broker 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.
9. Licenses; Materials. Broker shall maintain in current status all federal, state and
local licenses and permits required for the operation of the business conducted by the Broker.
The Town has no obligation to provide Broker, 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 Broker.
10. Indemnification. To the fullest extent permitted by law, each party hereto shall
indemnify, defend and hold harmless the other party and each member, officer, employee or
agent thereof(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 or services of the other party, 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 Broker, Broker 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.
No Repres4ntation '�; a ,rage Adequacy. 3y res;
herein, the Town does not represent that c .,E -age and limits will be ad( o pro:
Broker. The Town reserves the right to view any and all of the 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 Broker from,
1950466.4
4
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 and self-insured
retention or deductible portions, except Workers' Compensation insurance and
Professional Liability insurance, if applicable, shall name, to the fullest extent permitted
by law for claims arising out of the performance of this 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.
E. Primary Insurance. Broker'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. 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 Broker. Broker shall
arrange to have such subrogation waivers incorporated into each policy via formal written
endorsement thereto.
G. 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. Broker shall be solely
responsible for any such deductible or self-insured retention amount.
H. Use of Subcontractors. If any work under this Agreement is
subcontracted in any way, Broker shall execute written agreements with its
subcontractors containing the indemnification provisions set forth in this Section and
insurance requirements set forth herein protecting the Town and Broker. Broker shall be
responsible for executing any agreements with its subcontractors and obtaining
certificates of insurance verifying the insurance requirements.
I. Evidence of Insurance. Prior to commencing any work or services
under this Agreement, Broker will provide the Town with suitable evidence of insurance
in the form of certificates of insurance and a copy of the declaration page(s)
insurance policies as required by this Agreement, issued by Broker's insurance irL,orE r(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.
4 1 Confidential information such as the policy premium may be redacted from the
1950466.4
5
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. In the event any insurance
policy required by this Agreement is written on a "claims made" basis, coverage shall
extend for two years past completion of the Services and the Town's acceptance of the
Broker's work or services and as evidenced by annual certificates of insurance. If any of
the policies required by this Agreement expire during the life of this Agreement, it shall
be Broker's responsibility to forward renewal certificates and 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 RFQ number and title or
this Agreement. A $25.00 administrative fee shall be assessed for all certificates or
declarations received without the appropriate RFQ 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 RFQ 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) Broker's insurance shall be primary insurance with respect
to performance of the 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 Broker under this Agreement.
(4) A 30-day advam;e: notice cancellation provi-H If
t.:"ORD eeririeate of insurance fonr "!1/08) __e used, the phrE �p
cancellation i covision "endeavor to" failure to mail such n{., gall
impose no obligation or liability of aey upon the company, its agents or
representatives"shall be deleted. Certificate forms other than ACORD form shall
have similar restrictive language deleted.
1950466.4
6
11.2 Required Insurance Coverage.
• A. Commercial General Liability. Broker shall maintain"occurrence" -
form Commercial General Liability insurance with an unimpaired limit of not less than
$1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual
Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability
arising from premises, operations, independent contractors, products-completed
operations, personal injury and advertising injury. Coverage under the policy will be at
least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not
limited to, separation of insured's clause. To the fullest extent allowed by law, for claims
arising out of the performance of this 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. Broker shall maintain Business Automobile
Liability insurance with a limit of$1,000,000 each occurrence on Broker's owned, hired
and non-owned vehicles assigned to or used in the performance of the Broker'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 Broker engages in any professional services or
work adjunct or residual to performing the work under this Agreement, the Broker shall
maintain Professional Liability insurance covering negligent errors and omissions arising
out of the Services performed by the Broker, or anyone employed by the Broker, or
anyone for whose negligent acts, mistakes, errors and omissions the Broker is legally
liable, with an unimpaired liability insurance limit of $2,000,000 each claim and
$2,000,000 annual aggregate. In the event the Professional Liability insurance policy is
written on a "claims made" basis, coverage shall extend for two years past completion
and acceptance of the Services, and the Broker shall be required to submit certificates of
insurance and a copy of the declaration r of the insurance policies evidencing
proper coverage is in eff€.ct as required all Confidential information such as the
policy premium or proprietary information my 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.
IL
1950466.4
D. Workers' Compensation Insurance. Broker shall maintain
Workers' Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Broker'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 Broker of written notice by
the Town.
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 Broker 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 Broker 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 Broker 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 the Agreement or any extension
of the Agreement is in effect, an employee of any other party to the Agreement in any capac e,'
a consultant to any other party of the Agreement with respect to the subject matter of
A greement.
12.5 Gratuities. The Town may, bywritten notice y, ot�c to the Broker, 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 Broker or any agent
1950466A
8
or representative of the Broker 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 Broker 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 Broker fully informed as to the availability of funds for the 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 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 Broker
shall be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. The Broker 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. Broker, 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 Broker, its employees or subcontractors. The Broker, and
not the Town, shall determine the time of its performance of the services provided under this
Agreement so long as Broker meets the requirements of its agreed Scope of Work as set forth in
Section 2 above and in Exhibit B. Broker is neither prohibited from entering into other contracts
nor prohibited from practicing its profession elsewhere. Town and Broker 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. Broker 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 Broker 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 0,1f7::
State and Federal laws; and (C) existing and future Occupational Safety and Health
, .: tration standards.
13.4 ArnendmeuL This Agreement may b : :.iified only by a wiitte;,
amendment signed by persons duly authorized to enter into contracts on behalf of the Town and
the Broker.
I
1950466.4
9
13.12 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.
13.13 INTENTIONALLY LEFT BLANK.
13.14 INTENTIONALLY LEFT BLANK.
13.15 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: Kenneth W. Buchanan,Town Manager
With copy to: GUST ROSENFELD,P.L.C.
One East Washington Street,Suite 1600
'gm)
Phoenix, Arizona 85004-2553
Attn: Andrew J. McGuire, Esq.
If to Broker: NAI Horizon
2944 N 44th St#200
Phoenix,AZ 85018
Attn: Terry A. Martin-Denning
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 ray be sent, is deemed to ha . .eived the notice.
13.16 Confidentiality of Records. The Broker 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
1950466.4
11
,
employees, except as required to perform Broker's duties under this Agreement. Persons
requesting such information should be referred to the Town. Broker also agrees that any
information pertaining to individual persons shall not be divulged other than to employees or •
officers of Broker as needed for the performance of duties under this Agreement.
13.17 Records and Audit Rights. To ensure that the Broker and its
subcontractors are complying with the warranty under subsection 13.18 below, Broker'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 Broker 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
Broker'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 Broker's and its subcontractors' compliance with the
Arizona employer sanctions laws referenced in subsection 13.18 below. To the extent necessary
for the Town to audit Records as set forth in this subsection, Broker 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
Broker pursuant to this Agreement. Broker 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 Broker or its subcontractors reasonable
advance notice of intended audits. Broker 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.
13.18 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT.
§ 41-4401, the Broker 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 AR1z. REV. STAT. § 23-214(A). Broker's or its subcontractor's 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.
13.19 Scrutinized Business Operations. Pursuant to ARIZ. REV. STAT. §§ 35-
391.06 and 35-393.06, the Broker certifies that it does not have scrutinized business operations
in Sudan or Iran. For the purpose of this subsection the term "scrutinized business operations"
shall have the meaning set forth in ARIZ. REV. STAT. §§ 35-391 or 35-393,as applicable. If the
Town determines that the Broker submitted a false certification, the Town may impose remedies
.;s pre...` a law including terminatil:: 'agreement pursuant to subsection 12.2 above.
13.20 Conflicting Tea;_:.:_. In the event of any inconsistency, conflict or
ambiguity among the terms of this Agreement, the Scope of Work, the RFQ and the Broker's
SOQ,the documents shall govern in the order listed herein.
1950466.4
12
ij,,,,, IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the date
and year first set forth above.
"Town"
TOWN OF FOUNTAIN HILLS,an Arizona
municipal corporation
if,,,,Anet,H;LLO.
Kenneth W. Buchanan,Town Manager
ATTEST:
T Bevelyn J. B der own Clerk
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
41W )ss.
COUNTY OF MARICOPA )
This instrument was acknowledged before me on 0,2 / 2013, by
Kenneth W. Buchanan, the Town Manager of the TOWN OF UNTAIN HILLS, an Arizona
municipal corporation,on behalf of the Town of Fountain Hills.
ci,104-4-4-c.— /tr• • .Oce. ..
a .. : , JANICE E. BAXTER
_` i�a^�tryPutu •StateofMmrn N taty Public in and for the State of Arizona
4 '`ff yf �ornn Isaion e)
-"-' . December 6,2016
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
0
r 950466.4
13
, '
"Broker" 4
HORIZON REAL ESTATE GROUP, INC.
an Arizona corporation, d/b/a NAI Horizon
By: k.. f1. j,.-i',.:, .0,4,..7.
Name: / '/y 4. /2 n - ti ,'..
Title: 69e)f . i.J'h.t.-ccf Bee)c'"Ci
(ACKNOWLEDGMENT)
STATE OF ARIZONA )
)ss.
COUNTY OF MARICOPA )
This instrument was acknowledged before me on ‘//a , 2013, by
`l �. �taZi 4L� s 7,.� rd of HORIZON REAL ESTATE ,)
GR P,INC.,an Arizona corps ation,d/ba NA[ orizon,on.behalf of the corporation.
tea'# -- mot /
_,
, .,/,,.._ do.,....„:-_-__
�w�u�u„ Notary Public in and for the State of Arizona
aaIix no'fai-y s�aT II`efe7
4
1 9504 66.4
14
I
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE TOWN OF FOUNTAIN HILLS
AND
HORIZON REAL ESTATE GROUP, INC.
[SOQ]
See following pages.
•
•
1950466.4
• 8/15/2013
C
QUARTERLY FINANCIAL REPORT
Quarter Ending June 2013
.0y1AIN41l
3 ?`11
IQ(
hat is MIti�o
August,2013
Revenues by Fund
Year Ending June 30,2013
The General
Fund is the _CapitalP2%rojects
Town's main Debt Svc MPC
operating fund Downtown Fund_5%
1% A DebtSvcGO
and is used to Special Revenue_ 9%
fund general 1%
Dec Fees__--
government 1•,•
operations HURF
7x
including
police and fire, General Fund
74%
parks,
Community
Center; other
funds are
restricted for
specific
purpose Total$1s.M
■
1
8/15/2013
4
GENERAL FUND
•
R �t Tart.
GENERAL FUND REVENUES BY SOURCE
Through June 30, 2013
Vehicle License Tax
Fountain 6%
Other ;-
Hills local ax
sales tax
and State
shared
revenues
account for
92%of
State Income Tax
General 17%
Fund •
•
operating
funds
TOTAL$13.3M
2
8/15/2013
GENERAL FUND REVENUE
TOWN OF FOUNTAIN HILLS
PERIOD ENDING 6/30/2013
Local GENERAL FUND REVENUES
sales and TOTAL$13.3N1
State Local Sales Tax
g s2-o
Shared
revenues $60 State Shared Revenues
are at ss-o
100%of solo —
budget— ;y r
court and $3.o Ii5 .
permit ''
sz.o `z . es
revenues , Pe emits and U`e"s Fines and Fees
Sl.o :i . , other
are under
r ,.: t�
projections , so.o
6 FY10-11 •FY11.12 FY12.13 •Budget
41)
STATE SHARED REVENUES
SSR represents TOWN OF FOUNTAIN HILLS
390 of General PERIOD ENDING 6/30/2013
STATE SHARED REVENUES
Fund revenue TOTAL$5.1h1
and is „so.°
distributed to State Income Tax
cities/towns $2.5 —
_-_ State Sales Tax
based on s2.0 —
l
population
Income tax is sls
,t
based on two n p;° - Vehicle License Tax
$1.0 kS+.`
years prior;VLT ~
is derived from Sos — II I
so-o r — �: i. ■ysk;
new vehicle i' i
licenses —�` '�
.FY1D-11 ■FY11.12 FY12-13 ■Budget
I
1 e
8/15/2013
ill
1 Local Sales Tax Collections by Type ''
Local Sales On millions)
tax FY2009 through FY2013
$4.0 wholesale/
represents mum s3.rM
55%of $3.:
General Fund "°
revenue $2.5 . F8..
Retail activityTramp/
is flat $2.0 Utlucem
$1.4M ..
compared to $1.5-
previouS r �� Restaurants/ Real EstateOther
$1.0 g
year; So.SM 1ii
i$05 , ' I .so.IDt
bar activityl $0.4
ist 12°%D - ■FY09-10 FY10-11 ■FY11-12 ■FVI2-13 ■FY11.13P.iArzt
TOTAL$7.9M (for all funds)
General Fund Expenditures for the fiscal year endingJune 30,2013
$14.a
r4
�:,,i: $13,548,619
xa
itt
1
$10.0 -- X ,�.. .�
$Sa
IIf6a
ilrOmieee.i.
ll
$ae yT �+
millions
■FY10-11 FY11-12 as FY12.13 EXPENDITURE ■FISCAL PERIOD BUDGET
4
8/15/2013
sat . __
General Fund Expenditures by Department
$uo _. ----. _---
Fiscal Year Ending June 30,2013
All General Fund departments ss., -Nn,:_„
were under budget last year 0.0 .Fvu-sn
Pavement management program ur xrvlo.1
was accomplished with cuts to all .M...+.d
budgets and a transfer of s1
0 I
� I _
$750,000 from General Fund to tto ' ' '
streets fund for program si,o I I I -
Total expenditures are$1.5M less t,
than previous year , r__
s.0—
maxo.. .f't t`° .,+0 54. d, fir`
/ , +a S
General Fund Expenditures by Department Total 2.mt �'' P°
Fiscal Year EndingJune30,2033 Public Safety includes Fire/Emergency
Services as well as Law Enforcement—
Mew Cam.
3% combined the two departments represent
Mo.* �.. z: �•" 51%of the General Fund budget
. Community Services includes parks,
Community Center, recreation
Comm Wu Development Services includes building
16% safety,engineering, planning/zoning,
facilities,open space
Administrative includes Town Manager,
'2* Town Clerk, Finance,Economic
To I$12_2M Development, Legal, Insurance,Volunteers
•
OTHER FUNDS
‘.. r-----, I;
.b
rrarrrikTM
5
8/15/2013
HIGHWAY USER REVENUE FUND
TOWN OF FOUNTAIN HILLS
PERIOD ENDING 6/30/2013
HURF HIGHWAY USER REVENUE FUND REVENUES
revenues are TOTAL$z.onc
derived from 2 FY13 Actual FY13 Budget
$2.0
gasoline
tas and
distributexe d s FY30-11
1.s
based on FY11-12
population of $1.0
Fountain
Hills; s1.4BM
revenues are
$D.5 $1.21M
93%of
projections 0.0
.Excluding OF NSF Transfer
j
HURF Expenditures
Vehicle Maintenance Administration
4% 7%
Traffic Signals
5%
—
Street Sweeping_ i —legal Services
1%
7%
P P
Open ace
Stre et Signs ''�%'% 13%
4%
Pavement Management
59%
TOTAL$2.OM
6
8/15/2013
TOWN OF FOUNTAIN HILLS
PERIOD ENDING 6/30/2013
OTHER FUNDS REVENUE
TOTAL$3.31\1
$a 000 000
IC
$2,000,000 __--
Debt S.GO
Capital
$1,000,000 _—_-- _ Projects
Downtown
Special lone
Dev lees Revenue
Thousands
I FY11-12 •FY12-13 ■Annual Budget
`Debt Service MPC expended funds in FY10-11 to pay off the debt on Town
Hall
"Capital Projects budget included potential grant funds that were not received
110
TOWN OF FOUNTAIN HILLS
PERIOD ENDING 6/30/2013
OTHER FUNDS EXPENDITURES
TOTAL$3.31I
$0,000,000 --
Debt Svc MPC
$3,000,000
$2,000,000 - -
Debt Svc GO
[apkal
Projects
$1,000,000 .. __ .....
a . ..
Special DowntownlwenueMINIMIM
Thousands
•FY11-12 ■FY12.13 ■Annual Budget
7
8/15/2013
SUMMARY
• Fund balances remain healthy for all funds
• General Fund revenues are higher than last fiscal year
but 3.6% lower than budgeted
• General Fund expenditures were 90% of the budget
• Pavement management remains a priority and will be
funded through Vehicle License Tax revenues
• Approximately $200,000 of surplus General Fund
reserves will be transferred to the Capital Projects Fund
per policy (after audit)
411
FUND BALANCE
Fiscal Quarter Fund Balances
30-Jun-13
Fund balance includes General Fund $5,500,000
Rainy Day Fund and HURF $450,000
General Fund reserves Special Revenue Funds $243,543
that are not available for Downtown Strategy Fund $2,175,685
Downtown Economic Development $0
appropriation;other Public Art $1,618
funds are restricted for Development Fees:
specific purpose. Law Enforcement $202,099
Fire& Emergency $43,834
Funds are invested only Streets $158,467
in government securities Parks Recreation $48,699
according to the Town's Open Space $1,648,340
Library/Museum $42,557
adopted investment Debt Service $98,668
policy Capital Projects $9,325,360
Rainy Day Fund $1,345,200
Vehicle Replacement Fund $802,893
Total $22,086,963
8
TOWN OF FOUNTAIN HILLS
QUARTERLY BUDGET REPORT
JUNE 2013
o �
30;.cep„•, — o
-40at is ATI""
1
i
gni
o �
0• �4
fat is
General Fund
2
General Fund Revenues
4111"`or the twelve month fiscal period ending June 30, 2013, total General Fund revenues were received at 97.3% of budgeted
amounts but $765,986 higher than the same time period last fiscal year(an increase of 6%). The increase is the result of three
categories where revenues are higher than the previous year—the State vehicle license tax(up 4%),State income tax(up 21%)and
State sales tax(up 4%)revenues. Total General Fund revenues for this fiscal period are$13,225,156.
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
General Fund $12,459,170 $13,225,156 97.3% $13,225,156
TOWN OF FOUNTAIN HILLS
PERIOD ENDING 6/30/2013 The four revenues in the chart on the left represent 88.9% of
GENERAL FUND REVENUES
TOTAL$13.2NI General Fund revenues, and as such, provide key indicators of
Iasi Wes Tot the Town's overall economic condition and performance. Local
sales tax collections have increased slightly(1%)over the same
111 period last year(includes construction activity of which 50%is
transferred to the Capital Project Fund). State sales tax is 4.2%
higher and income taxes are 21% higher than last year as
State Mom.Tax projected; vehicle license taxes are about 4% higher compared
u•�.sa•s Ta
nTn� to last year (this revenue source is derived from vehicle
■ ■ ® registrations). Overall, General Fund revenues are at 97.3%for
the fiscal year.
Cate Shared Revenues
State Shared Revenues represent a distribution of the State income, sales and vehicle licenses taxes returned to the Town based on
its population in relation to the total population of all incorporated cities and towns. The income tax funds are distributed from tax
collections from two years prior to the fiscal year in which the Town receives the funds. Sales taxes are distributed to cities and
towns three months after the actual sales activity occurs. These revenues are distributed monthly through a distribution from the
State Treasurer's Office. The revenues from these categories total$4,876,135 which is$498,624 or 11 %more than the same time
period last year—the increase in revenue was anticipated based on projections by the Arizona League of Cities and Towns.
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
State Income Tax $1,898,088 $2,297,203 101.7% $2,297,203
State Sales Tax $1,757,297 $1,830,501 97.3% $1,830,501
Vehicle License Fees/ $722,126 $748,431 85.5% $748,431
Insurance Premium Tax
Local Sales Tax(2.6%)
The fiscal period revenue for this category total $7,948,268 (including all funds), which is 102.1%of projections. Compared to
the same time period as last year the total revenues are 1%higher.
Retail: A retail sales tax of 2.6%is collected for the sale of all tangible personal property including grocery, clothing,home and
Carden, autos and other related retail activity. This revenue source is sensitive to changes in the economy and can fluctuate from
3
l J
one fiscal year to another. The revenues for this category total $3,601,212 which is 97% of projections; compared to last fiscal
year revenues are flat.
Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. The revenues for this category total $645,258, •
which is 108.6%of projections;compared to last fiscal year revenues are up by 12.1%and higher than any other previous year.
Communication/Utilities/Transportation: Utilities such as Chaparral City Water, cellular telephone companies and Qwest are
taxed at a rate of 2.6% in the Town as well as cellular phone charges. The revenues for this category total $1,402,193, which is
97.9%of what was anticipated;compared to last fiscal year revenues are down by 0.4%.
Construction Contracting: This revenue is generated from the 2.6% tax on new home and business construction as well as
improvements to real property. Like retail sales tax,this revenue source is considered to be volatile as it is strongly impacted by
changes in the economy. The largest sources of revenues in this category come from residential homebuilders. The revenues for
this category total$563,540,which is 234.9%of what was budgeted;compared to last fiscal year revenues are down by 6.1%. The
Council has dedicated 50%of this revenue to the Capital Projects Fund for future appropriation.
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
Local Sales Tax $7,867,761 $7,948,268 102.1% $7,948,268
Local Sales Tax Collections by Type
(in millions)
July 2012-March 2013 Local sales tax makes up 54.5%of General Fund revenues;
Wholesale/
$2.6M for the period ending June 30, 2013 collections were $7.9M
RetaO
$2.3 for all funds ($6.8M in the General Fund). Retail and
restaurant/bar activities represent 53.4%of total collections;
$2.0 Tramp/ telecommunications and utilities represent another 17.6%.
Utuc«x Construction revenues collected this fiscal period total
$1.3
$1.1M $563K, which is a 6.1% decrease over last fiscal year. 0
$1.0 Construction Restaurants/ Rea/Estate OtherRetail sales tax collections remained flat over the same
SO.4M SOSM $e•eM ,�, , sO..M period last year; restaurant/bar collections are up 12.1%
$0'3
$0.2M from the same period last year.
$0.0 ..
■FYOI.30 ■FY10.11 MFY11.12 ■FY12-13 MFY11.13 Budget
Building Permit Revenue
Revenues in this category include both commercial and residential permitting activity with the majority of revenues coming from
residential activity. This fiscal period, revenues for this category total $86,420 or 102%of the period budget. Housing permits
issued for the fiscal period are 13 single family, 8 multi family and 1 commercial.
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
Building Permit Fees $58,897 $86,420 102% $86,420
Court Revenue
This category summarizes several revenue funds collected by the court. The court generates various revenues through fines,
sanctions and court orders. These fines include criminal, civil, Town code violations and diversion fees for defensive driving
school attendees. Reimbursement fees for required background checks, incarceration costs, and Public Defender costs are also
collected by the court and included in this category. This fiscal period,revenues for this category total$173,024 which is$30,326
(15%)less than last year's same fiscal period and 42%less than budgeted.
4111
•
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
( Court Fines& Fees $203,350 $173,024 58% $173,024
License Revenue
Revenues in this category include both business and animal licensing activity with the majority of revenues coming from business
licenses. Current fiscal revenues for these two categories total$148,209 or 91%of the fiscal period budget.
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
Business License Fees $103,648 $102,614 89% $102,614
Animal License Fees $46,496 $45,595 96% $45,595
General Fund Expenditures
The General Fund accounts for most of the day to day operations of the Town, including Police, Fire and Emergency Medical
Services, Development Services, Community Services, Court, Council and Administrative functions. At the end of the fourth
quarter 92.9%of the period budget has been expended.
FY2012-13 Expenditures by Category -General Fund
FY2012-13 % of
41) Actual FY12 Actual FY13 Budget Budget
Salaries and Benefits $3,169,876 $3,213,012 $3,303,509 97.3%
Supplies and Services $1,262,616 $1,356,543 $1,799,227 75.4%
Contractual Services $7,020,331 $7,086,397 $7,416,620 95.5%
Internal Services $199,895 $200,541 $202,679 98.9%
Other $2,022,546 $332,721 $384,726 86.5%
Grand Total all Categories $13,675,264 $12,189,215 $13,106,762 93.0%
• Salaries and benefits represent one fourth(26%)of the total General Fund operating budget and accounts for all staff with the
exception streets employees who are funded through a separate Highway User Revenue Fund(HURF)
• Contractual services represents 58% of the General Fund budget and includes contracts for law enforcement (Maricopa
County Sheriffs Office)and fire and emergency medical services(Rural Metro). The Town utilizes contracts for specialized
or one-time services that do not require the addition of full time staff.
• Services, Supplies and Utilities represents 11%of the total General Fund operating budget and includes items such as facility
maintenance, utilities, office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid
expending more than revenues received.
• Internal Services Charges are charged to the General Fund operating budget by department and transferred to other funds to
provide funds for future scheduled replacement of vehicles and equipment.
• Other includes transfers that are made at the end of the fiscal year from the General Fund(Community Center)to the Debt
Service Fund for the annual bond repayment due in June ($193,500 annually) as well as contingency and other minor
expenditures.
5
Department summary:
General Fund Montly Expenditure Report-Year Ended June 30,2013
+/(-)from
FY2012-13 %of Prior
Actual FY12 Actual FY13 Budget Budget Year
Mayor&Council $68,444 $76,004 $82,811 91.8% 11.0%
Administration $3,813,990 $2,076,524, $2,184,672 95.0% -45.6%
Municipal Court $385,931 $373,953 $402,933 92.8% -3.1%
Development Services $1,429,798 $1,531,790 $2,017,578 75.9% 7.1%
Community Services $1,992,532 $1,987,467 $2,226,188 89.3% -0.3%
Fire&Emergency Medical $3,156,440 $3,253,049 $3,255,335 99.9% 3.1%
Law Enforcement $2.828,129 $2,890,427 $2,946,102 98.1% 2.2%
Period Total $13,675,264r $12.189,215 $13.115,619 92.9% -10.9%
• Law Enforcement represents 24% of the General Fund operating budget and includes the contract with Maricopa County
Sheriff's Office as well as costs for jail incarcerate fees, which are costs for holding individuals at the jails and billed by
Maricopa County. The Town also has a contract with Maricopa County for animal control and shelter services that is
included within the Law Enforcement budget.
• Fire & Emergency Medical Services represents 27% of the General Fund operating budget and includes the contract with
Rural Metro for fire and emergency medical services; the budget also includes expenditures for maintenance of the fleet
which is Town owned,fire stations and equipment.
• Development Services(12%of General Fund expenditures)includes programs such as public works,engineering,traffic and
capital projects, open space maintenance, stormwater management, and facilities maintenance. Divisions included in
Development Services are Planning, Zoning, Code Enforcement, Environmental, Facilities Maintenance, Building Safety,
and Mapping&Graphics.
• Community Services (16% of General Fund expenditures) includes the Town's park system (Fountain Park, Golden Eagle
Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and
seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for
Seniors. This department includes the cost of the annual debt service payment ($193,500) that is transferred to the Debt
Service Fund each year to cover the semi-annual payments in December and June.
• Administrative Services includes the Town Clerk, Town Manager, Finance, Human Resources, Volunteer Program,
Economic Development, Information Technology and Customer Service and represents 17%of the General Fund operating
budget. The department is responsible for business recruitment and retention,Town Manager activities,all licensing activity
(business, animal, liquor), provides customer service, managing audits, public meetings, Channel 11, Town website,
elections,Town Attorney and Town Prosecutor,budget and financial reporting,etc.
• The Town Court and Mayor&Council budgets represent the balance of the General Fund operating expenditures(4%)
General Fund Expenditures by Department
Fiscal Year EndingJune 30,2013
Co u„c I aamw.er twe
1% 1m
ut law Enforcement
!Nun Court -^yc �,' 24%
3%
Comm Svcs
16%
Fire
27%
Dev Svcs
12%
Total$12.2M
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Other Funds:
Streets
Excise Tax (Economic
Development)
Special Revenue (Grants)
Development Fees
Capital Projects
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7
Highway User Revenue Fund (HURF) - Streets
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget EstimateIVO
State Shared Revenues $1,126,762 $1,232,187 97% $1,232,187
In Lieu Fees $70,178 $4,796 10% $4,796
General Fund Transfer $0 $750,000 100% $750,000
Miscellaneous&Other $16,828 $11,071 100% $11,071
Total $1,213,768 $1,998,054 94% $1,998,054
This fund supports most of the Town's street and traffic operations and is managed by the Development Services Department.
Revenues were received less than budgeted therefore expenditures did not exceed the available resources. The fund is primarily
supported by the State Highway User Revenue Fund (98%) and from payments for construction in the rights of way (in lieu
payments). A transfer from the General Fund was made for the pavement management program;HURF revenues are distributed
partially on a population formula and partially on the county of origin for gasoline sales. There is a State constitutional
restriction that these funds be used solely for street and highway purposes. The Town bills contractors when they make cuts in
the Town's rights of way which has recovered$4,796 in lieu fees. Restitution fees are recovered from damage to Town property
as a result of vehicle accidents and included in miscellaneous and other.
HURF Expenditures by Program-Fiscal Year Ending 6/30/2013
Expenditures by Program FY2011-12 FY2012-13 FY2012-13
Actual Actual Budget % of Budget
Administration $119,299 $140,263 $190,991 73.4%
Adopt A Street $3,480 $3,164 $3,193 99.1%
Legal Services $26,247 $25,696 $21,600 119.0%
Open Space $262,956 $263,788 $302,698 87.1%
Pavement Management $139,125 $1,171,248 $1,366,266 85.7%
Street Signs $55,451 $75,621 $86,472 87.5%
Street Sweeping $128,883 $133,990 $126,805 105.7%
Traffic Management $93,761 $0 $0 r #DIV/0!
Traffic Signals $144,367 $106,099 $170,336 62.3%
Vehicle Maintenance $75,557 $74,716 $80,519 92.8%
Grand Total HURF $1,049,128 $1,994,586 $2,348,880 84.9%
• The Administrative program for the Streets division includes activities that are not directly related to a program,for example
overhead items such as insurance,fuel,utilities,etc.)
• Open Space program includes maintenance of the medians; the largest component of this category is the contract for
landscaping and water usage
• Pavement Management program includes personnel costs related to road repair and maintenance, such as pot holes and curb
replacement.
• Street Signs program includes personnel and maintenance costs for the Town's 6,800 street signs.
• Street Sweeping program major expenditures are for personnel costs and maintenance/fuel for operating the Town's two
street sweepers.Arterial streets are swept every two weeks and residential streets every eight weeks.
• Traffic Signals program includes personnel and electric costs for the Town's 13 Traffic signals. Costs include hardware and
programs for maintenance and synchronization of the signals.
• Vehicle Maintenance program includes personnel as well as costs to maintain the Town's fleet of 50 vehicles and heavy
equipment.
• Total expenditures for streets were less than budgeted but in line with available resources.
a
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Excise Tax Fund — Economic Development
FY11-12 FY2012-13 YTD to Year End
Actual Actual Budget Estimate
Revenues $311,490 $311,357 105.3% $311,357
This is a separate operating fund from the General Fund and supports the Town's downtown economic development and
business retention programs. This fund is supported by a portion of the local sales(excise)tax(.1%of the 2.6%).
Excise Tax Fund Expenditures by Program-Fiscal Year Ending 6/30/2013
Expenditures by FY2011-12 FY2012-13 FY2012-13 % of
Category Actual Actual Budget Budget
Salaries and Benefits $48,937 $6,961 $50,173 13.9%
Supplies and Services $6,378 $8,480 $7,804 108.7%
Contractual Services $56,948 $51,937 $124,236 41.8%
Internal/Transfers $6,857 $108,943 $1,755 6207.6%
Grand Total all Categories $119,121 $176,322 $183,968 95.8%
• Salaries and benefits,which represent 28%of the total Economic Development operating budget,are at 4%of budget which
is less than budget at this time. A percentage(50%)of the Economic Development Administrator's salary and benefits had
been allocated to this fund;however,until the vacant Economic Development Administrator position is filled there will be no
further expenditures in this category
• Contractual services and supplies represent 72%of the budget and include contracts for downtown holiday lighting,Greater j
Phoenix Economic Council(GPEC),and planned professional services for marketing strategies.
• Internal/Transfers reflects the expenditures in the Capital Projects Fund for the Avenue of the Fountains median project.
This project will be completed in FY2013-14.
Development Fees
This is a restricted fund with revenues paid by developers at the time of new residential and commercial construction permits.
The increase in permit activity has resulted in more development fees collected over the same time period as last year. The
expenditures are related to the development fee study that the Town is required to have as a result of legislation enacted in
FY10-11. The study is ongoing and will take approximately nine months to complete.
During the first six months of this fiscal year there have been thirteen (13) single family and eight (8) multi-family permit
applications including development fees.
Effective January 1, 2012 cities and towns are prohibited from collecting a development fee for the General Government
category.
10
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FY2012-13 Revenues by Category-Development Fees
0 FY2011-12 FY2012-13 FY2012-13
Actual Actual Budget %of Budget
Law Enforcement $1,411 $1,746 $15,860 11.0%
Streets $25,934 $107,694 $94,802 113.6%
Parks $9,312 $41,353 $14,790 279.6%
Open Space $9,502 $4,383 $0' #DIV/0!
General Government $1,304 -$928 $0' #DIV/0!
Library $620 $1,376 $1,740 79.1%
Fire $1,078 $4,419 $3,540 124.8%
Grand Total All Funds $49,160 $160,042 $130,732 122.4%
FY2012-13 Expenditures by Category-Development Fees
FY2011-12 FY2012-13 FY2012-13
Actual Actual Budget % of Budget
Law Enforcement $1,067 $951 $5,000 19.0%
Streets $3,622 $4,315 $20,000 21.6%
Parks $3,495 $3,795 $15,000 25.3%
Open Space $12,677 $4,470 $0 826.0%
General Government $527,487 $0 $0 0.0%
Library $553 $951 $5,000 19.0%
Fire $467 $951 $5,000 19.0%
Grand Total All Funds $549,367 $15,432 $50,000 30.9%
C
Capital Projects Fund
Capital projects are funded with accumulated reserves that were surplus revenues in the General Fund in addition to 50% of
sales tax revenues that are derived from construction activity. Some projects are funded with proceeds from grants or
developers;the table below is a summary of revenues for the fiscal year ending June 30,2013.
FY2012-13 Capital Projects Fund Revenues
FY2011-12 FY2012-13 YTD to Year End
Revenue Actual Actual Budget Estimate
Construction Sales Tax $300,202 $281,775 234.8% $281,775
Grants $204,261 $40,001 0.7% $40,001
Misc. $0 $0 0.0% $0
Interest Income $30,713 $21,140 100.0% $21,140
Transfers In $6,623 $108,943_ 8.4% $108,943
Grand Total CIP Fund $541,799 $451,859 6.3% $451,859
11
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•
The table below summarizes the projects that were included in the current year budget including the original budgeted
expenditure,the year to date expenditures and the anticipated fiscal year end expenditures. Some of the projects will be carried
over until the next fiscal year.
CD
FY2012-13 Expenditures by Category-Capital Projects
FY2012-13 YTD to Annual Year End
Actual Budget Budget Estimate
UNDEFINED $2,805 8.4% $33,281 $2,805
D6047 MISC DRAINAGE IMPROVEMENTS $7,166 11.0% $65,000 $7,166
E8504 AOTF MEDIAN&RIGHT-OF-WAY IMPRVMNT $145,306 8.1% $1,792,000 $145,306
F4012 LIBRARY EVENT CIRCLE $38,000 79.2% $48,000 $38,000
F4015 FIRE STATION I RENOVATION $63,115 12.8% $495,000 $63,115
F4020 VOICE&DATA COMMUNICATIONS $23,683 94.7% $25,000 $23,683
P3008 FOUR PEAKS PARK IMPROVEMENTS $44,350 88.7% $50,000 $44,350
P3022 FOUNTAIN LAKE WATER QUALITY IMPRVMT $33,416 13.4% $250,000 $33,416
S6001 SHEA BLVD TRUCK CLIMBING LANE -$11,626 0.0% $0 -$11,626
S6005 SHEA BLVD WIDENING $17,084 0.4% $3,903,000 $17,084
S6053 FOUNTAIN HILLS BLVD SHOULDER PAVING $40,816 62.8% $65,000 $49,816
I.
Grand Total Capital Projects $424,750 3.8% $11,253,281 $424,750
Fund Balances/Reserves
Fiscal Quarter Fund Balances
30-Jun-13
General Fund $5,500,0000
HURF $450,000 The Town maintains several funds, some of which
Special Revenue Funds $243,543 are restricted for specific purposes; the General
Downtown Strategy Fund $2,175,685 Fund is the Town's main operating fund and has
Downtown Economic Development $0 sufficient reserves that satisfy the Town's fund
balance policy. Development fees are restricted for
Public Art $1,618 projects that are related to growth and the
Development Fees: Economic Development/Downtown Fund is
Law Enforcement $202,099 designated for downtown development.
Fire& Emergency $43,834
Streets $158,467
Parks& Recreation $48,699
Open Space $1,648,340
Library/Museum $42,557
Debt Service $98,668
Capital Projects $9,325,360
Rainy Day Fund $1,345,200
Vehicle Replacement Fund $802,893
Total $22,086,963
41/
12
. 4
Resolution No.2009.09SPAC by-laws amendment -3/5/09
RESOLUTION NO. 2009-09
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN OF FOUNTAIN
HILLS AMENDED AND RESTATED STRATEGIC PLANNING ADVISORY
COMMISSION BYLAWS.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. That the Town of Fountain Hills Strategic Planning Advisory Commission
Bylaws, Amended and Restated March 5, 2009, are hereby adopted in the form attached hereto
in Exhibit A, and incorporated herein by reference.
SECTION 2. That the Mayor, the Town Manager, the Town Clerk and the Town
Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose
and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, March 5, 2009.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Jay T. Schlum, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Richard L. Davis, Town Manager Andrew J. McGuire, Town Attorney
EXHIBIT A
TO
RESOLUTION NO. 2009-09
[Amended and Restated Strategic Planning Advisory Commission Bylaws]
See following pages.
Page 1 of 3
S
BYLAWS
STRATEGIC PLANNING ADVISORY COMMISSION
TOWN OF FOUNTAIN HILLS,ARIZONA
AMENDED AND RESTATED MARCH 5,2009
I. Officers
The Strategic Planning Advisory Commission (the "Commission") shall elect a chairperson and
vice chairperson from among its own members, who shall serve for one (1) year and until their
successors are elected and qualified. The chairperson shall preside at all meetings and exercise
all the usual rights, duties and prerogatives of the head of any similar organization. The vice
chairperson shall perform the duties of the chairperson in the latter's absence or disability. The
Commission may appoint other offices (e.g., secretary, etc.) as may be required.
II. Powers and Duties
The Commission shall have the powers and duties to:
A. Champion the Town's Strategic Plan to keep it visible for the Council, staff,
citizens and media.
B. Act in an advisory capacity to the Town Council and Town Manager in matters 414
pertaining to the Town's Strategic Plan.
C. Provide a copy of the Strategic Plan to all Fountain Hills Town candidates for
public office and educate newly elected and appointed officials about the Strategic Plan.
D. Monitor the Strategic Plan's implementation and ensure its long-term legitimacy.
E. Update the Strategic Plan at least once every five years dependant on
appropriations by the Town Council.
F. Make recommendations with respect to the implementation of the Strategic Plan
to the Town Manager.
G. Develop partnerships to help implement adopted strategic initiatives.
H. Meet annually with the Town Council to assess progress of the Strategic Plan.
I. Host public dialogue about new strategic initiatives to consider for the next
strategic plan.
J. Write brief periodic Strategic Plan progress reports.
Page 2 of 3
s
K. Perform such other duties not inconsistent with these bylaws as may be requested
by the Town Council.
III. Membership
A. All matters concerning membership on the Commission including, but limited to,
appointments, terms, vacancies and removal, shall be in accordance with Section 9 of the Town
Council Rules of Procedure, as amended.
B. The Commission shall be comprised of seven voting members, two standing ex
officio members (the Town Manager or representative and a Youth Commissioner) and other
such ex officio members as may be appointed as set forth below. The Youth Commissioner role
shall be filled by a representative of the Mayor's Youth Council, or other youth representative at
the discretion of the Mayor. All members shall serve at the pleasure of the Mayor and Town
Council.
C. The Mayor, with the consent of the Town Council, may from time to time appoint
one member of the Town Council as an ex-officio member to the Commission. Ex-officio
members shall not be entitled to vote on any matter brought before the Commission.
IV. Meetings
A. The Commission shall meet as often as needed to keep the Strategic Plan in a
position of prominence in the Town. Special meetings may be called by the chairperson or in
his or her absence, the vice chairperson. In addition, any three (3) members of the Commission
may make written request to the chairperson for a special meeting.
B. All meetings of the Commission shall be open to the public and are subject to the
Arizona Open Meeting Law.
V. Conduct of Business
A. Four (4) members shall constitute a quorum. The affirmative vote of four (4)
members shall be required for passage of any matter before the Commission. A member may
abstain from voting only upon a declaration of a conflict of interest, in which case such member
shall take no part in the deliberations on the matter in question.
B. The Rules of Procedure for meetings of the Commission shall follow those set
forth in Section 1.1 of the Town Council Rules of Procedure, as amended.
VI. Compensation
The members of the Commission shall serve without compensation for their services, but
members may receive reimbursement for necessary travel and other expenses incurred on official
duty with appropriate prior authorization.
I tw
Page 3 of 3
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SEMI -ANNUAL REPORT
STRATEGIC PLAN GOALS
a n d
OPERATIONAL PRIORITIES
FY20 12-13
Jf nIN H?4,0
hat is MI
August 15, 2013
OVERVIEW .10
At a Goal Setting Retreat held on January 26, 2012,the Council determined Strategic Plan Goals for FY12-13
based on Strategic Plan 2010. Subsequently,the Council agreed on Operational Priorities for FY12 13 at a
Council/Staff Retreat held on August 23, 2012.
On October 4, 2012,the Town Council adopted the Strategic Plan Goals and Operational Priorities for FYr12-13 as
enumerated in the report below. The purpose of this report is to describe progress made by staff toward
accomplishing these goals and operational priorities during the second half of the fiscal year.
STRATEGIC PLAN GOALS
The following graph depicts progress staff has made toward achieving Strategic Plan Goals during the fiscal year
2012-13:
PROGRESS TO STRATEGIC PLAN GOALS
FOR FISCAL YEAR 2012-13
M9
Civility _ ,^ ..
II
VII)
Civic Responsibility
Ifl r
laii
Economic Vitality
lull"
Recreational Opportunities and Amenities
lull"
Maintain and Improve CommunityInfrastructure
p ',
■1st Half 1 III
■2ndHalf 0 10 20 30 40 50 60 70 80 90 100
PERCENT COMPLETE
Page 1 of 11
c
STRATEGIC VALUE: CIVILITY
Strategic Direction C 2: Support community events and activities that create opportunities to build community
and friendship.
(Overall responsibility: Mark Mayer)
• Do more events; network with promoters (Assigned to Mark Mayer,Tourism)
Percent Complete: 100%
Recreation Division staff continue to work to bring more activities to the community including working
with various promoters and Tourism. The recent Iron Girl event brought over 1,000 competitors to our
community and the first ever Cyclovia event, with the Town partnering with Tourism, was held on
Saturday,April 13, 2013.
• Coordinate calendars with McDowell Mountain Regional Park and Tourism (Assigned to Mark Mayer,
Tourism)
Percent Complete: 100%
Town calendars for events are coordinated with both Tourism and McDowell Mountain Regional Park
and are on the Town's website and in the monthly calendar distributed by Tourism.
Strategic Direction C 3: Genuinely solicit and consider public and stakeholder feedback as part of the decision-
making process.
(Overall responsibility: Ken Buchanan)
• Conduct a statistically valid citizen survey, correlating to the previous statistically valid survey ($35,000 in
Town Manager budget) See also CR6 (Assigned to: Ken Buchanan,Julie Ghetti)
Percent Complete: 15%
The intent of this goal was to gain an understanding of the level of satisfaction that the Fountain Hills
citizens have with their government services and be able to monitor if their satisfaction is improving or
declining over time. A survey to gather statistically representative input from residents about a wide
range of issues related to the Town's Strategic Plan was administered in October 2005.
In order to accomplish this initiative, as well as the next (develop customer service performance
measures utilizing the ICMA standards), at the Council meeting on February 7, 2012, staff proposed that
the Town participate in the National Citizen Survey(NCS) coordinated by ICMA as opposed to contracting
with a firm to repeat the previous citizen survey. Council chose to instead to direct staff to issue an RFP
for the survey. The RFP is currently being developed.
• Staff to attend at least 12 meetings per year(one per month) with community organizations, HOA's, etc. (no
fiscal impact, however, impact will be staff time) (Assigned to: Ken Buchanan,Julie Ghetti)
Percent Complete: 100%
Staff spoke at a total of 15 community meetings during fiscal year 2012-13,as follows:
I
4
Page 2 of 11
3 �
Presenter Organization/Meeting Date Subject
Ken Buchanan Noon Kiwanis 6/14/2012 Updates on current Town issues
Ken Buchanan Men's Discussion Group 8/6/2012 Economic Develoment Program
Capt.Rodriquez Community Meeting 10/25/2012 MCSO 1st Quarter Report
Ken Buchanan Assoc.of Licensed contractors 10/25/2012 Goals and vision for the Town
Jason Field FH Licensed Contractors Assoc.meeting 11/12/2012 Senate Bill 1598 impacts
Bob Rodgers FH Business Alliance meeting I 11/13/2012 Updates to Sign Ordinance
Heather Ware Men's Discussion Group 11/19/2012 Volunteer Program
Judge Eisenberg Teen Court _ 11/13/2012 Teen Court Attorney Training
Jason Field Assoc.Of Licensed Contractors 2/28/2013 Avenue Median Project
Ken Buchanan Fountain Hills Realtors Meeting 3/1/2013 Town update
Bryan Hughes River of Time Museum Docents 3/4/2013 Little Known Facts about FH
Ken Buchanan Rotary Club 4/11/2013 Budget Overview
Ken Buchanan Chamber Breakfast 5/16/2013 Budget Overview
Ken Buchanan Chamber Board Meeting 6/12/2013 Road Bond
--i
Ken Buchanan Fountain View Village 6/13/2013 Budget Outcomes
• Utilize telephone technology to make calls to citizens to inform them of upcoming events, etc. (Assigned to:
Julie Ghetti)
Percent Complete: 100%
The Town's telephone system has the ability to make "robo calls" to residents for general information.
The system has been used effectively to remind volunteers of upcoming events, inform pet owners that
their dog licenses have expired, etc. This has proven to be a very effective tool that has received mostly
positive feedback from participants. It does require that residents provide their telephone number if
they want to be called and the system does not call anyone who chooses not to leave their phone
number.
STRATEGIC VALUE: CIVIC RESPONSIBILITY
Strategic Direction CR 1: Foster an environment of accessible, responsive governance.
(Overall responsibility: Ken Buchanan)
• Appoint a formal Ombudsman (perhaps a retired judge so they are impartial (Assigned to Ken Buchanan)
Percent Complete: 0%
Strategic Direction CR 2: Discover, recognize and utilize the talents of our citizens and use these assets to
address community needs.
Strategic Direction CR3: Foster a culture of public service and volunteerism.
(Overall responsibility: Ken Buchanan,Joan McIntosh)
• Advertise with a Request For Proposals for specific need or skillset that a member of the community may
have and want to offer services to the Town (Assigned to Ken Buchanan,Joan McIntosh)
Percent Complete: 0%
Department Directors have indicated they are not in need of any specific skillsets from community
members at this time. Unless there is a specific request, there is no need to advertise with a Request
for Proposal.
Page 3 of 11
•
Foster a culture of public service and volunteerism through the annual Make a Difference Day (Assigned to
Ken Buchanan,Joan McIntosh)
Percent Complete: 100%
Another successful Make A Difference Day was held on October 27, 2012. Approximately 250
volunteers completed a variety of"chores"for residents in need , ranging from landscaping to painting.
This event has grown each year since its inception in 2009.
Strategic Direction CR 6: Evaluate customer satisfaction with Town services on a regular basis and implement
appropriate service improvements.
(Overall responsibility: Ken Buchanan)
• Statistically valid customer satisfaction survey ($35,000 fiscal impact, using prior as a baseline); consider
survey at least once every three years See also C3. (Assigned to: Ken Buchanan,Julie Ghetti)
Percent Complete: 15%
The intent of this goal was to gain an understanding of the level of satisfaction that the Fountain Hills
citizens have with their government services and be able to monitor if their satisfaction is improving or
declining over time. A survey to gather statistically representative input from residents about a wide
range of issues related to the Town's Strategic Plan was administered in October 2005.
In order to accomplish this initiative, as well as the next (develop customer service performance
measures utilizing the ICMA standards), staff proposed to Council at their meeting on February 7, 2012,
that the Town participate in the National Citizen Survey (NCS) coordinated by ICMA as opposed to
contracting with a firm to repeat the previous citizen survey. Council chose to direct staff to issue an
RFP for the survey. The RFP is currently being developed.
• Develop customer service performance measures utilizing the ICMA standards (Assigned to: Ken Buchanan,
Julie Ghetti)
Percent Complete: 100%
The Town declined to participate in the National Citizen Survey; results would have laid the groundwork
for creating a performance measurement tool that citizens would utilize in understanding the quality of
service delivery in their community compared to other communities across the country.
Strategic Direction CR 7: Communicate the role of local government and clearly define the trade-offs
between service levels and amenities and the associated costs so residents can make informed choices.
(Overall responsibility: Ken Buchanan)
• Continue Citizens Academy (Assigned to Mark Mayer)
Percent Complete: 100%
The Citizen's academy was not held this year due to the low numbers of residents that registered for the
program.
• Create a reader friendly budget report that citizens can understand (Assigned to Julie Ghetti)
Percent Complete: 100%
The FY2012-13 budget document was summarized in a four-page brochure that is available on the Town
website and has been placed in the Town kiosks. The brochure is reader friendly and gives a snapshot of
the most significant items in the adopted budget. A similar brochure will be prepared for the FY13-14
budget.
Page 4 of 11
STRATEGIC VALUE: ECONOMIC VITALITY
Strategic Direction EV 1: Develop a comprehensive economic development strategy for the Town's future and
work with our partners to forward economic growth and awareness.
(Overall responsibility: Ken Buchanan)
• Review the economic development plan annually and recommend revisions as appropriate
Percent Complete: 100%
The Economic Development Plan was adopted by the Council in March of 2013,and amended to include
a strategically organized approach in June of 2013.
Strategic Direction EV 2: Develop and maintain a balanced, equitable, sustainable and local financing structure
to support the Town's core government services at desired service levels. (Overall responsibility:Julie Ghetti)
• Outreach to the community citizens regarding proposals that came from the November toolbox retreat;
highlight individual proposals during the budget process; reemphasize sustainability
Percent Complete: 100%
The Town Council designated pavement management as a core service/operational priority for the
Town, which requires an investment of around $1.OM per year but has historically been underfunded.
Beginning in FY12-13, all revenues from the State Shared revenue Vehicle License Tax (VLT)
(approximately $750,000 per year) will be transferred from the General Fund to the Highway User
Revenue Fund (HURF) to be used for annual pavement management program. An additional$250,000
will be made up from the HURF fund and the use of HURF reserves.
When the Town assumed fire and emergency medical services in 2001, the voters rejected a primary
property tax initiative to pay for that service. The Town Council at that time implemented a 1%sales tax -„„ii)
to cover those costs; however, the sales tax revenues have not kept up with the cost of providing the
service (annual revenues are $2.9M and costs for fire protection are $3.8M). Additionally, full time
residents are subsidizing the cost of fire and emergency medical for those residents who are in Fountain
Hills only a few months of the year. The Town of Paradise Valley has successfully implemented a fire fee
for service for each property owner who benefits from fire protection and emergency medical services.
Staff will consider the feasibility of implementing such a fee in FY2014-15 to pay for fire and emergency
medical services.
Strategic Direction EV 4: Promote retention,expansion and relocation of quality businesses.
(Combined with EV1)
• Expand upon the outreach efforts in one of the targeted industry sectors to encourage business locations
which create new employment opportunities and increase daytime population
• Utilize the trade area analysis to target recruitment efforts on those businesses/business sectors identified
• Encourage the location of businesses along the Avenue that complement and support the existing business
base (fiscal impact $42,000 - $8,000 (or —19%) from the General Fund and $34,000 (or "'81%) from the
Excise Tax Fund; a significant portion geographically falls within the downtown area (the retail, office and
"Avenue" initiatives)
Percent Complete: 50%
Council adopted the Economic Development Plan in March of 2013, and amended it to include a
strategically organized approach in June of 2013.
On June 20, 2013, the Council approved a Professional Services Agreement with Horizon Real Estate NINO
Page 5 of 11
•
•. 14,
Group, Inc. to promote commercial business in Fountain Hills in accordance with the adopted Fountain
Hills Economic Development Plan.
The Town released an RFP for an Economic Development Specialist on July 18, 2013. Proposals are due
on August 15,2013,with a targeted Town Council award date of September 5, 2013.
STRATEGIC VALUE: RECREATIONAL OPPORTUNITITES AND AMENITIES
Strategic Direction R 2: Provide an interconnected, multi-use trail and bicycle system that promotes active
living,physical activity,education and appreciation of our parks and natural resources.
(Overall responsibility: Mark Mayer)
• Coordinate and promote activities with McDowell Mountain Regional Park (Assigned to Mark Mayer)
Percent Complete: 100%
Coordinating calendars for both groups continued through the year with most of the focus on hiking
opportunities within the Town's Preserves and access to the many miles of trails in the County's park.
• Coordinate with Tourism Bureau to promote Town trails and bicycle system as part of active living, including
a booth during the two fairs (Assigned to Mark Mayer)
Percent Complete: 100%
Information about area trails was provided at the Chamber's Fairs in November and February and again
at the McDowell Mountain Month event at Fountain Park this fall. Various maps of area trails were also
available in flyer form for anyone that was interested.
• New flyers distributed to valley sports stores (Assigned to Mark Mayer)
Percent Complete: 100%
Some maps have been distributed, but a number of the stores have corporate policies that prevented
distribution and only allowed some limited posting at their sites.
• Promote FIT(Fountain Hills Interconnected Trails) (Assigned to Mark Mayer)
Percent Complete: 100%
The FIT program has a logo, an overall trail master plan, and various individual map plans. A kiosk
design has been approved and the first trail, the Civic Trail through the downtown, was launched early
in 2013. The trail kiosk for the Civic Trail was fabricated and placed at the trailhead in Fountain Park.
The signage for the first kiosk and route markings were fabricated and installed prior to opening the
inaugural trail,with a dedication on Saturday,April 6th.
• Urban Trails Plan, create a flyer for distribution, coordinate with Tourism, create new Town webpage
dedicated to healthy living, active lifestyles; utilize FIT logo to promote trails, signage to mark FIT stations
(Assigned to Mark Mayer,Julie Ghetti)
Percent Complete:80%
The Master Plan for the FIT trail system has been approved and work is completing on the needed
signage to open the first trail. A flyer for the overall trail system is being produced. The opening and
promotion of the FIT system was coordinated with Tourism.
4111
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STRATEGIC VALUE: MAINTAIN AND IMPROVE COMMMUNITY INFRASTRUCTURE
Strategic Direction I 2: Lower the reliance on state revenues by developing a locally controlled, reliable
funding source for infrastructure maintenance.
(Overall responsibility:Julie Ghetti)
• Sell assets that have become expensive to maintain and have limited future value (Assigned to Julie Ghetti,
Mark Mayer,Paul Mood)
Percent Complete: 100%
In addition to the proposal outlined in Strategic Direction EV2, staff is evaluating the cost of maintaining
assets that either provide no benefit to the taxpayers or are beyond their useful life. There are two
components of the evaluation—the Vehicle Replacement Policy and Facility Maintenance.
Staff has replaced vehicles that are beyond their useful life and have scheduled new equipment for FY13-14.
The Town's street sweepers and utility dump truck, which are no longer used, will be sold. Various pickup
trucks that are to be replaced per the Vehicle Replacement Policy will also be sold.
Facility Maintenance includes all Town owned buildings including two that are leased to non-profits—the
Kiwanis Building and the Fountain Hills Community Theater. The Town's budget only allows for general
maintenance of the buildings. When larger items such as an A/C replacement or roof repair are needed,
staff transfers funding from one of the Town Center complex buildings,thus reducing the maintenance that
can be done. The Kiwanis Building is used for their meetings and rental to other groups—the Town receives
no revenue from the building to offset the costs. Staff would propose that the Kiwanis building be either
reverted back to the Kiwanis or offered for sale to the highest bidder.
Strategic Direction I 3: Maintain a current condition assessment of all roadways and sidewalks and prioritize
and implement maintenance efforts to minimize costly reconstruction.
(Overall responsibility: Paul Mood)
• Evaluate the post mortem on bond with the public, prepare new strategy for recommendation (Assigned to
Paul Mood, Ken Buchanan,Julie Ghetti)
Percent Complete: 100%
The bond post mortem was to be included with the Citizen Survey which was not approved; staff did
solicit feedback from the various groups it met with regarding the 2011 bond. From this feedback and
Council direction, staff put together a proposed bond for Saguaro Blvd. focusing only on needed
reconstruction. This was presented to Council at the November 13, 2012 and January 8, 2013 Work
Study Sessions. The Council approved Resolution 2013-05 on March 21, 2013 calling for a special bond
election on November 5, 2013. The publicity pamphlet for the citizens has been prepared and will be
distributed to all households in October 2013.
Page 7 of 11
t
tip OPERATIONAL PRIORITIES
The following graph depicts progress staff has made toward accomplishing Operational Priorities during fiscal
year 2012-13:
PROGRESS TO OPERATIONAL PRIORITIES
FOR FISCAL YEAR 2012-13
Volunteer Program
IIUIIIIIIIIIIIIIIIIIIIII
Town Prosecutor
..11.....
Fire Station#2
iui• ui
Community Partnership Funding Policy
41." .Fountain
Lake(IGA)
II
Economic Development Plan
Ulli!
Pavement Management Program
■MIIM■■■
■1st Half 0 10 20 30 40 50 60 70 80 90 100
■2nd Half PERCENT COMPLETE
l
4ID
Page 8 of 11
1. Pavement Management Program
(Overall responsibility: Ken Buchanan. Assigned to Ken Buchanan, Paul Mood, Ken Kurth.)
Percent Complete: 100%
The Pavement Management Plan Resolution was presented to Council at the January 8 Work Study Session.
Zone 6 slurry seal is complete and work in Zone 7 has begun.
2. Economic Development Plan
(Overall responsibility: Ken Buchanan.)
Percent Complete: 100%
The Economic Development Plan was adopted by the Council in March of 2013, and amended to include a
strategically organized approach in June of 2013.
On June 20, 2013,the Council approved a Professional Services Agreement with Horizon Real Estate Group, Inc.
to promote commercial business in Fountain Hills in accordance with the adopted Fountain Hills Economic
1 Development Plan.
The Town released an RFP for an Economic Development Specialist on July 18, 2013. Proposals are due on
August 15,2013,with a targeted Town Council award date of September 5, 2013.
3. Fountain Lake(IGA)
(Overall responsibility: Ken Buchanan. Assigned to Ken Buchanan, Mark Mayer, Paul Mood.)
Percent Complete: 10%
Staff is currently negotiating a reuse agreement that is a prelude to the Fountain Lake IGA.
4. Community Services Funding Policy
(Overall responsibility:Julie Ghetti. Assigned to Julie Ghetti, Bev Bender. )
Percent Complete: 100%
The current funding program for community services(youth recreational services,youth arts,social services and
tourism promotion) is the result of Requests for Proposals issued in 2007 for a three-year contract for services
that are desired but not provided by the Town;the contracts have been extended for three,additional one-year
terms. This operational priority was intended to develop a more equitable and open policy on funding
community services that addresses community needs and Council priorities.
Staff proposed the creation a grant program policy, "Building a Better Community," that would facilitate the
funding allocation for programs identified by the Town Council as Council priorities; however,the proposal was
not approved. The Town Council approved extending the original contracts through FY13-14.
•
Page 9 of 11
a r
5. Fire Station#2
.`,, (Overall responsibility: Ken Buchanan. Assigned to Ken Buchanan, Randy Roberts,Julie Ghetti, Paul Mood)
Percent Complete: 90%
The Town of Fountain Hills' population increased between incorporation in 1989 and 2000 by 10,045 persons, or
almost 100%; the population between 2000 and 2010 increased by 2,254, another 11%. The average annual
growth over the past 22 years is 6%,to the current population of 22,489.The Town's fire and emergency medical
services have not changed to meet the demands of the population growth in new areas,thus the service quality
has begun to decrease, particularly in the area of increased response times to the southwest portion of Town.
These areas exceed the contract response times of five minutes (90% of the time), often taking eight to twelve
minutes to respond.
To serve the southwest portion of the community,there is sufficient right-of-way of land that the Town owns on
the north side of Shea Boulevard,just west of Fountain Hills Boulevard,for a new fire station. Construction plans
were prepared for this site in anticipation of applying for a FEMA/ARRA grant to fund the new station (grants
were awarded to shovel ready projects). However, the Town was not awarded any grant funding and, due to
lack of and/or un-prioritized Town funds,the Town has not moved forward with building a new station.The only
remaining item to be designed is the connection to the sanitary sewer. The lack of a fire station to serve the
southwest portion of the community has become a critical issue and one of the challenges is that the Town has
no specific guidelines in place to dictate when or where a new fire station is to be built.
Although the Town has a site designated for a new fire station, it is in the far northwest corner of Town (Eagles
(1Iw Nest) and there is insufficient development to warrant a fire station. With the development of Eagle Mountain
and Crestview and the subsequent increased population,the need for a fire station in a location that will provide
the desired response times is a higher priority than the site at Eagles Nest.
The Town of Fountain Hills adopted a Fire Station Location Master Plan for determining when new stations need
to be opened and when existing stations may need to be relocated. The Master Plan report reviewed response
times and current Station #1, #2, and #3 locations to determine when it is appropriate to build a new fire
stations and/or relocate an existing fire station. Fire Station placement should be determined using NFPA 1710
standards for response times, as well as GIS software (Network Analyst ESRI Arc View) that takes into account
street layout,speed limits and Fire Department response procedures.
Rural Metro cannot meet their contractual response times with the current location of Station #2. Relocating
Station#2 to a site along Shea Blvd., east of Palisades or Fountain Hills Blvd. near Muskrat,would bring response
times into compliance. The table below shows the response times for each month of FY2012-13, by station, and
highlights those areas that are in non-compliance with the Rural Metro contract:
L
Page 10 of 11
Rural/Metro Monthly Report
Fiscal Year 2012/2013
July August September October November December January February March April May June Total
Total FH Incident Responses 329 281 269 264 210 221 230 186 305 289 284 2868
Average Emergency Response
Time 3:58 3:47 3:46 4:03 3:54 3:57 3:50 3:46 4:16 3:44 3:41 3:52
Total#Response Exceptions 45 36 31 37 30 36 31 26 45 24 29 370
Response Compliance-Station
15 min.zone 77% 78% 79% 77% 84% 77% 82% 83% 77% 88% 82% 80%
Response Compliance-Station
18 min.zone 93% 100% 67% 82% 88% 93% 90% 100% 100% 84% 100% 91%
Avg.Response Compliance ' ' ' t ' ' ' '
Sta.1 85% 89% 73% 80% 86% 85% 86% 92% 88% 86% 91% #DIV/01 85%
Response Compliance-Station
25 min.zone 59% 56% 74% 75% 65% 76% 70% 71% 54% 71% 75% 68%
'Response Compliance-Station
28 min.zone 100% 86% 100% 100% 100% 80% 100% 100% 60% 100% 100% 93%
Avg.Response Compliance '
Sta.2 80% 71% 87% 88% 83% 78% 85% 85% 57% 86% 88% #DIV/0! 80%
Fire Loss $0 $100,000 $0 $0 $5,000 $10,000 $0 $0 $0 $0 $5,000 120,000
Fire Loss Potential $0 $100,000 $0 $0 $450,000 $300,000 $0 $0 $0 $0 $350,000 1,200,000
Training Hours 459 561 540 530 543 586 625 700.5 928 812 719 7003.5
Building and Site Inspections 17 9 8 26 17 10 19 59 15 20 12 212
Building and Site Plan Reviews 10 15 11 17 16 21 15 18 8 16 16 163
Public Education Activity 24 36 36 48 24 24 16 24 36 24 24 316
Car Seat Installations 4 9 7 9 6 13 15 4 10 8 6 91
AED Inspections 9 8 8 7 9 8 8 35 9 7 8 116
CARE/FH Responses 21 25 23 22 27 21 23 15 23 14 20 234
Notes:Response time requirement per contract a minimum of 90%of the time.Record#of calls for the month of July.50 car seats installed at a October Valley wide Car Seat Installation event in
Scottsdale
6. Town Prosecutor
(Overall responsibility: Ken Buchanan. Assigned to Ken Buchanan,Julie Ghetti, Bev Bender.)
Percent Complete: 100%
The Town Prosecutor is one of four positions appointed by the Town Council. During the August retreat,the
Council listed consideration of appointing a part-time prosecutor as an operational priority. The Town
Council approved a two-year contract with the current Town Prosecutor.
7. Volunteer Program
(Overall responsibility: Ken Buchanan. Assigned to Ken Buchanan,Joan McIntosh.)
Percent Complete: 100%
As of July 1, 2013, the Volunteer Coordinator began reporting directly to the Town Manager in accordance
with Resolution 2013-38 which adopted the budget implementation policy and approved the town
organizational charts. Analysis of the current work plan is underway in order to achieve improvements.
I)
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