HomeMy WebLinkAboutSPAC.2013.0313.Agenda POST MEETING ACTION AGENDA NOTICE
NOTICE OF MEETING
Fountain Hills Strategic Planning Advisory Commission
JETAINArft
WHEN: Wednesday, April 10, 2013 o
TIME: 4:00 p.m. o/
WHERE: Council Chambers, Town Hall
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268 'het`s AO'
Pursuant to A.R.S. 38-431.02, notice is hereby given to the members of the Strategic Planning Advisory Commission
(SPAC) and to the general public that the Strategic Planning Advisory Commission of Fountain Hills will hold a meeting
on April 10, 2013 beginning at 4:00 p.m. in Council Chambers at Town Hall, located at 16705 East Avenue of the
Fountains in Fountain Hills, Arizona. Commission members will attend either in person or via teleconference. A majority
of the Town Council may be present.
Notice is hereby given that pursuant to A.R.S.§1-602.A.9,subject to certain specified statutory exceptions,parents have
a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child.
Meetings of the Strategic Planning Advisory Commission are audio and/or video recorded,and,as a result,proceedings
in which children are present may be subject to such recording. Parents in order to exercise their rights may either file
written consent with the Town Clerk to such recording,or take personal action to ensure that their child or children are
not present when a recording may be made. If a child is present at the time a recording is made,the Town will assume
that the rights afforded parents pursuant to A.R.S.§1-602.A.9 have been waived.
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AGENDA:
1. Call to order 4:05 p.m.
2. Roll call
3. Call to the public NONE
4. Consideration of approving March 13,2013 meeting minutes APPROVED
5. Town Manager's Update NO ACTION TAKEN
a. Economic development(EV1)
b. Saguaro road bond (13/I2)
c. Pavement management program(I3/12)
6. Discussion regarding Strategic Direction EV1 and the Economic Development Plan adopted by Council
on March 21,2013 NO ACTION TAKEN
7. Schedule upcoming meetings 5/9/13 at 4:30 p.m.; 6/12/13 at 5:00 p.m.; 7/10/13 at 5:00 p.m.
8. Adjourn 5:30 p.m.
DATED This 3`d day of April, 2013.
By
Shaunna Williams, Executive Assistant
V...
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100(voice)or 1-800-367-
8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting.
NOTICE OF MEETING
Fountain Hills Strategic Planning Advisory Commission
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WHEN: Wednesday, April 10, 2013 0��'C AIN yjt
TIME: 4:00 p.m. ;���,,,,
WHERE: Council Chambers, Town Hall
16705 E. Avenue of the Fountains ',,
Fountain Hills, AZ 85268 that is"`%ti
Pursuant to A.R.S. 38-431.02, notice is hereby given to the members of the Strategic Planning Advisory Commission
(SPAC) and to the general public that the Strategic Planning Advisory Commission of Fountain Hills will hold a meeting
on April 10, 2013 beginning at 4:00 p.m. in Council Chambers at Town Hall, located at 16705 East Avenue of the
Fountains in Fountain Hills, Arizona. Commission members will attend either in person or via teleconference. A majority
of the Town Council may be present.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have
a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child.
Meetings of the Strategic Planning Advisory Commission are audio and/or video recorded,and,as a result,proceedings
in which children are present may be subject to such recording. Parents in order to exercise their rights may either file
written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are
not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume
that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.
AGENDA:
1. Call to order
2. Roll call
3. Call to the public
4. Consideration of approving March 13, 2013 meeting minutes
5. Town Manager's Update
a. Economic development(EV1)
b. Saguaro road bond (I3/12)
c. Pavement management program(I3/12)
6. Discussion regarding Strategic Direction EV1 and the Economic Development Plan adopted by Council
on March 21,2013
7. Schedule upcoming meetings
8. Adjourn
DATED This 3rd day of April, 2013.
C.
By
Shaunna Williams, Executive Assistant
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100(voice)or 1-800-367-
8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting.
Fountain Hills " DRAFT"
Economic Development Plan
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Town of Fountain Hills
Economic Development Plan
April 2013" Draft"
Fountain Hills Economic Development Plan
Table of Contents
Growing Our Economy is Critical 3
Strategic Approach 5
Our Commitment to Success 6
Fountain Hills Economic Game Plan 7
Business Attraction 9
Goal: Attract new business growth to diversify the Fountain Hills economy. 9
Business Retention and Expansion 11
Goal: Retain and expand existing businesses. 11
Entrepreneurial Development 12
Goal: Establish Fountain Hills an entrepreneurial center 12
Foundational Maintenance 13
Goal: Ensure that the tools, systems, and structures effectively support economic growth.
13
Locational Catalysts 14
Goal: Revitalize and maximize the economic opportunities of community assets. 14
Strategic Implementation 16
Performance Metrics 17
April 2013 Draft Page 2 of 17
Fountain Hills Economic Development Plan
Growing Our Economy is Critical
Economic development builds upon local assets to maximize resources in a way that enhances
economic opportunities while improving the community's quality of life in a sustainable way.
Fountain Hills was originally master-planned by McCullough Properties over 40 years ago to be
a diverse community of residential, commercial, and employment that supported a vibrant live,
work, and play environment. Since 1989 when the Town incorporated, Fountain Hills has
continued to evolve its vision, committed to ensuring a high quality of life for both residents
and visitors.
Like most communities throughout the U.S., the Great Recession has had an impact on
Fountain Hills. However, the downturn has also provided an important opportunity for the
community to redirect efforts and identify strategies to position the community for long-term
success. The Town of Fountain Hills economic development vision is to be economically
sustainable and anchor our vitality in an active vibrant town core that serves the community
culturally, socially, and economically. To attain this vision, the following criteria will be used to
track economic success:
• Multi-generational community that provides opportunities to live, work, learn, and play
• Established regional destination
• Strong economic identity and business friendly
• Economic diversity
• Known for its strong vision and sense of place
Business growth is critical to creating community wealth and is an important component of any
economic development strategy. However, ensuring the right mix of business development is
also important to maintaining a vibrant economy in Fountain Hills that can withstand
downturns in economic cycles. Attracting and retaining quality, well-paying jobs help to
diversify the economic base and fosters a live/work atmosphere. Attracting and developing
business activities that create wealth and revenues in Fountain Hills is required to achieve the
community's vision of long-term economic sustainability.
To achieve community wealth and generate revenues, there are two types of business activities
that must be present in the local economy. These are "basic" and "non-basic" activities.
Basic economy is defined as an activity that will bring new
dollars into the community. Building a basic economy comes in Basic activities bring
a wide range of activities from tourists staying in town at local new revenues int.,
hotels to a manufactured product made or processed in
Fountain Hills being sold and distributed outside its boundaries.
Money coming into the community creates jobs and wealth.
April 2013 Draft Page 3 of 17
Fountain Hills Economic Development Plan
However, a sustainable economy also requires activities that will keep those revenues in the
local economy as long as possible. Therefore, it is critical to
build a non-basic economy. These are activities that keep Non-basic activities'-
dollars already in the local economy in Fountain Hills. The circulate revenues. - '
longer the dollar stays and circulates in the local economy, the
more jobs and businesses it creates. The types of businesses that re-circulate that dollar include
service type activities such as grocery stores, dry cleaners, and local retail.
A vibrant, sustaining economy will not occur without a healthy blend of both basic and non-
basic activities present. Ensuring a diverse mix of both types of businesses also helps to buffer
against an economic downturn and fluctuations in business cycles, as well as recession-proof
the local economy. This is critical because the Town of Fountain Hills depends on locally-
generated sales tax revenues to provide community infrastructure, amenities, and services.
Both basic and non-basic activities are critical to the future viability of Fountain Hills.
One last important concept to address is leakage. This is
defined as dollars leaving the community or residents having or Leakage is when
choosing to purchase goods and services outside of the revenues leave Fountain
community. Even in the most diversified local or regional Hills.
economy some leakage occurs. However, the longer a
community can retain those dollars created through local economic activity the more the
economy expands. Encouraging local spending generates revenues that can be used to improve
streets, expand parks, and meet the public needs of residents.
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April 201 � -i Socrce: Palners for Strategic Action.Inc. ' 4 of 17
Fountain Hills Economic Development Plan
Strategic Approach
Building a diversified economy with both basic and non-basic activities requires a
comprehensive strategy. Both types of economic strategies require different approaches.The
purpose of the Fountain Hills Economic Development Plan is to present the community's
approach to achieve long-term economic success.
Fountain Hills is not an economic or employment hub. In fact, most employed residents
commute out of the community to their employment destination. This reality translates into a
daytime population which is significantly less than the night time population. Fountain Hills also
experiences a significant shift in population from winter months and summer months.
Building a strong local employment base comprised of base sector employers is critical to the
development of a well-rounded, sustainable, and vibrant community. Base sector employers
provide the expansion and demographic diversification to a community's economic base.The
jobs created by base sector employers, especially quality jobs, contribute to local prosperity.
A strong employment base supports local businesses and commercial districts.There is a
positive correlation between local employment and spending in the local economy by
employees. People who work in a community tend to spend a portion of their money
purchasing goods and services from local businesses.
To illustrate this point, an analysis by the International Council of Shopping Centers shows that
office workers patronize local establishments and, not only spend money dining out, they also
spend money on convenience goods.The lunch and convenience item spending of these
workers can be a substantial part of local retailers' revenue. Additional spending may occur by
workers who choose to shop locally,to avoid rush hour traffic,for regularly needed items. A
strong employment base increases the daytime population and contributes to the success of
local service sector businesses. Many merchants, particularly those engaged in hospitality
businesses such as restaurants depend on daytime traffic to make ends meet.The town has
experienced reluctance on the part of potential chain restaurants to open in Fountain Hills due
to the low daytime population. The attraction of quality base sector employers provides
daytime population which increases the likelihood of additional service sector businesses
locating in the community.
Attraction of base sector businesses enhances the quality of life for citizens in four significant
ways:
1. It provides opportunities for citizens to work locally versus commuting outside of the
community for employment.
2. It attracts people from outside of the community who spend money locally but don't
require town services.
3. It evens out the seasonal fluctuations in the population and spending which lessons the
impact and strain on local businesses who struggle during the summer months.
April 2013 Draft Page 5 of 17
Fountain Hills Economic Development Plan
4. It increases the viability of the Fountain Hills market to attract other desired goods and
services.
The Fountain Hills market is often perceived as being oversaturated with retail, although the
Town lacks empirical evidence that such is the case. A recent trade area analysis commissioned
by Town Council indicates that there is an abundance of certain services and retailers and a
deficit of other. Compounding this problem, as suggested earlier, is the reality that the
inventory of retail space aligns itself with accommodating a population much larger than the
summer population of Fountain Hills, or even the winter population for that matter.
Tourism and recreation plays a significant role in the Fountain Hills economy. According to a
recent study by the national travel research firm Dean Runyan Associates, total visitor spending
in the Fountain Hills and Fort McDowell destination area have increased as a result of the
opening of two new lodging establishments in 2005—the Radisson Fort McDowell Resort and
the Fountain Hills Holiday Inn. Gaming at Fort McDowell, area golf, and the large number of
vacation home rentals attract visitors that tend to stay longer and spend more.
The Fountain Hills Fort McDowell destination area consists of the town of Fountain Hills, the
Fort McDowell Yavapai Nation,the McDowell Mountain Regional Park and the "The Verdes"
communities (Rio Verde, Tonto Verde, and Vista Verde). The overall destination product mix is
very strong in offering what traditional travelers to Arizona are seeking: scenic beauty; outdoor
adventure; desert experience; golf, resorts and spas; Native American and Old West culture;
performing arts and festivals; and of course, sunshine. In addition, the destination offers unique
attractions such as the town's iconic Fountain, an excellent museum of area history, and even a
nationally recognized disc golf course. Tourism and recreation brings new money into the
community while non-basic activities keep those dollars in Fountain Hills. Another benefit of
tourism and recreation is that these activities introduce new visitors to Fountain Hills with the
prospect of relocating either their residency or business as a result of their experience. Building
on all of Fountain Hills' assets and opportunities is critical to the successful expansion of the
local economic base.
Our Commitment to Success
The Town of Fountain Hills is committed to
building a sustainable community and high- Strateg' .
performing organization. In 2010, the Town Civility
Council approved a community-wide Strategic Environmental Stewardship
Plan. The strategic plan is integrated into the Civic Responsibility
daily operations of the Town's organization. All Education, Learning & Culture
proposals and initiatives are evaluated in Recreational Opportunities &Ameniti:
relationship to the Strategic Plan. onomic Vitality
aintain & Improve Community
The Strategic Plan Vision for Fountain Hills is to frastructr.ire
be a distinctive community designed to blic, Safety, Health & Welfare .
April 2013 Draft Page 6 of 17
Fountain Hills Economic Development Plan
invigorate the body, mind, and spirit and strive to:
• Be stewards of this unique enclave, dedicated to preserving the environment and visual
aesthetic and to living in balance with the Sonoran Desert;
• Champion the diversity of experiences our residents bring to our community and rely on
this depth of experience to innovatively address our challenges;
• Be economically sustainable and anchor our vitality in an active vibrant town core that
serves us culturally, socially and economically; and
• Be civic-minded and friendly, taking responsibility for our Town's success by building
partnerships and investing our talent and resources.
The 2010 Strategic Plan identified the priority initiative for the Town was to maintain financial
stability and local control, and promote economic growth to support the community's needs
and promote successful businesses. Economic Vitality was one of the eight values identified in
the Strategic Plan along with these eight directives:
• EV1 - Develop a comprehensive economic development strategy for the Town's future
and work with our partners to forward economic growth and awareness.
• 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.
• EV 3 - Promote a mixed use core where residents can live, work learn and play in an
urban village setting as depicted in the Area Specific Plan (Downtown Vision Master
Plan).
• EV 4 - Promote retention, expansion and relocation of quality businesses.
• EV 5 - Promote Fountain Hills as a visitor destination.
• EV 6 - Identify a slate of economic development tools and strategies (including tax
incentives, fee abatements, etc.) to stimulate economic growth.
• EV 7 - Identify areas for redevelopment, revitalization or reuse.
• EV 8 - Promote unique and vibrant neighborhood and business districts.
Fountain Hills Economic Game Plan
Economic development requires a public/private partnership to comprehensively build a strong
economic base in Fountain Hills. Everyone has a role to play.The Town, business groups, civic
organizations, businesses, and residents all can contribute to ensuring that Fountain Hills'
economy grows. Creating more base jobs locally attracts more year-round residents to live,
work, and play in the community. These jobs expand the market for local businesses creating
revenues that support the community's quality of life. As revenues are generated and the
economic base expands, revenues are available for needed basic services such as parks,
recreation, and roadway improvements.
Our economic development game plan is a multi-tiered approach to building a strong economic
base.
April 2013 Draft Page 7 of 17
Fountain Hills Economic Development Plan
Economic Objectives are the broad desired achievement that through the implementation of
the Economic Development Plan Fountain Hills will accomplish. The economic objectives are:
• Grow Our Economy
• Maximize Our Talent
• Enhance Our Community
Our Focused Approach is how Fountain Hills is going to achieve its economic objectives. All five
are important and would be addressed simultaneously. The focused approach is through the
following strategic initiatives:
• Business Attraction
• Business Retention and Expansion
• Entrepreneurial Development
• Foundational Maintenance
• Locational Catalysts
Targeted Industry Sectors are the business sectors that offer Fountain Hills the most
opportunity and will be pursued through our focused approach. The industry sectors help the
community meet the stated economic objectives.
• Professional, Technical, and Scientific Services
• Healthcare, Medical, Biosciences, and Wellness
• Finance and Insurance
• Tourism and Recreation
• Retail
• Education
April 2013 Draft Page 8 of 17
Fountain Hills Economic Development Plan
The graphic that follows illustrates the tiered approach to building a strong economic base.
Economic Focused Vibrant
Objectives Approach Sustainable
Community
Grow Our Economy Business Attraction Professional,Technical
&Scientific Services
Business Retention&
Expansion Healthcare,Medical,
Maximize Our Talent Biosciences&
Entrepreneurial Wellness
Development
Finance&Insurance
Enhance Our Foundational
Community Maintenance Tourism&Recreation
Locational Retail
Catalysts
Education
Following is a description of the goals and actions that will be taken to achieve the economic
objectives.
Business Attraction
Goal: Attract new business growth to diversify the Fountain Hills economy.
FOUNTAIN HILLS POSITION
Based on existing community assets and regional opportunities, Fountain Hills will focus
business recruitment efforts within the following targeted industry sectors as defined by the
North American Industry Classification System (NAICS) of the U.S. Census Bureau:
• Professional, Technical, and Scientific Services (NAICS 54)
• Healthcare, Medical, Biosciences, and Wellness (NAICS 62)
• Finance and Insurance (NAICS 52)
• Arts, Entertainment, and Recreation (NAICS 71)
• Retail (NAICS 44)
• Education (NAICS 61)
These sectors offer higher wage professional positions that match our labor force and build
upon existing regional clusters.
April 2013 Draft Page 9 of 17
Fountain Hills Economic Development Plan
GAME PLAN
1. Facilitate and/or recruit new base sector employment opportunities.
Action Steps:
• Develop an inventory of office space and implement office recruitment strategies for
advanced business services and healthcare, medical, and bio-medical businesses which
can occupy existing space.
• Initiate a higher education feasibility study to determine and assess the existing
educational resources and provide strategic direction for the attraction of higher
education to Fountain Hills.
• Initiate a healthcare and wellness feasibility study to assess the current healthcare
environment, determine the additional healthcare services needs, and identify potential
growth strategies.
• Continue to build on relationships with economic development entities, like the Greater
Phoenix Economic Council (GPEC) and Arizona Commerce Authority (ACA),to cultivate
leads for new businesses that could potentially locate to Fountain Hills. Respond to
these leads as appropriate and feasible.
2. Recruit retail business identified in the 2012 Retail Business Leakage Report.
•
3. Recruit local business owners, who operate their business outside of Fountain Hills, to
make their offices in town.
Action Step:
• Identify targeted business owners and communicate the advantages of relocating
businesses to Fountain Hills as a viable business expansion/relocation venue.
4. Target recruitment efforts on those businesses identified in the retail market analysis.
Action Step:
• Identify opportunities to connect directly with retailers to discuss Fountain Hills as a
location for their retail operation.
5. Develop and execute a communication strategy aimed at the targeted industry sectors.
Action Steps:
• Provide current data on the economic dynamics of Fountain Hills and the region to
prospects and site selectors electronically and through print materials.
• Establish a strong economic development presence on the Town's website with content
and messaging geared toward targeted business sectors.
• Develop collateral materials and messaging about Fountain Hills' position related to the
targeted business sectors.
April 2013 Draft Page 10 of 17
Fountain Hills Economic Development Plan
6. Implement a comprehensive tourism and recreation development program.
Action Steps:
• Actively pursue the Vision Plan's core element of a first class performance venue in
Fountain Park as the central attraction component for enhanced downtown vibrancy
through non-resident visitation as well as increased resident patronage.
• Collaborate with Fort McDowell Yavapai Nation to adequately fund and implement a
destination marketing effort focused on niche tourism segments such as golf(Sonoran
Desert Golf Trail), weddings, desert/Southwest Experience, Native American Heritage
and Old West experience, and arts.
• Promote the Community Center and other local venues as viable meeting and event
centers.
• Explore the feasibility and initiate strategies to expand hospitality facilities in Fountain
Hills.
• Develop more multi-day major events to Fountain Hills while ensuring long-term
viability of existing events.
• Implement a program to attract more group tours to Fountain Hills.
Business Retention and Expansion
Goal: Retain and expand existing businesses.
FOUNTAIN HILLS POSITION
The bulk of new jobs created in this country are created by existing companies. Therefore, an
effective business retention and expansion (BRE) program is an important component of any
community business plan. Engaging in ongoing dialogues with existing businesses can inform
labor force development programs as well as potential business recruitment targets. The
retention of existing business is a key measure of the strength of the local economy and the
relative success of the business within the community. With a seasonal population, Fountain
Hills struggles to maintain home-grown restaurants and retail establishments. A formal BRE
program in Fountain Hills would help to identify those companies at risk of failing or leaving the
community and providing preemptive measures to ensure their success. Adopting traditional
goals of a business retention program, Fountain Hills BRE program will address the followings:
• Identify companies with plans to expand
• Identify companies at risk of leaving/downsizing
• Identify company and community problems
• Provide assistance
• Build relationships
' Blaine Canada,Ltd,Synchronist ‘86.1
April 2013 Draft Page 11 of 17
Fountain Hills Economic Development Plan
GAME PLAN
6. Implement a business visitation program for base sector industries, targeting those
businesses which align with NAICS 52, 54, 62, and 71.
Action Steps:
• Utilize an electronic tool/system specific for business retention, like the Synchronist
Business Information Systems, for use in the business retention outreach.
• Regularly interview, evaluate the results of the interviews, and identify policies or
incentives that would be helpful to retaining existing businesses.
• Annually conduct an economic summit to understand business needs and changes
within the economy.
Entrepreneurial Development
Goal: Establish Fountain Hills an entrepreneurial center.
FOUNTAIN HILLS POSITION
Arizona has been ranked very high nationally in entrepreneurial activity and new business
starts. According to the Arizona Commerce Authority, the attraction is that Arizona's business
and property taxes are low, as well as workers' compensation costs. It is critical for long-term
success to ensure that new business start-ups and entrepreneurs have a solid foundation. Some
of the basic mistakes that lead to entrepreneurial failure include:
• Poor business planning
• Inadequate funding
• Choosing the wrong business structure
Creating the environment within Fountain Hills that fosters the entrepreneurial spirit and
assists new business start-ups is an important component of the economic program. In 2010,
the Fountain Hills Business Incubator was established as a public/private partnership to
enhance the entrepreneurial success rates.
GAME PLAN
7. Create a support structure and assistance for entrepreneurial growth.
Action Steps:
• Utilize the Business Incubator to grow new businesses and assist others that may be
struggling.
• Annually evaluate the Business Incubator effectiveness to ensure it is achieving its
mission and providing adequate return on investment.
• Partner with existing groups and organizations to assist with business start-ups,
mentoring, and other resource identification and deployment.
April 2013 Draft Page 12 of 17
Fountain Hills Economic Development Plan
Foundational Maintenance
Goal: Ensure that the tools, systems, and structures effectively support
economic growth.
FOUNTAIN HILLS POSITION
Community foundations are those resources such as infrastructure, regulations and policies,
education and training, and capital that are the building blocks fora strong economy. Successful
community and economic development programs are dependent upon this solid framework for
growth and sustainability.
GAME PLAN
8. Identify and promote viable incentives for businesses locating to Fountain Hills that relieve
fiscal burdens and/or make the businesses more competitive.
Action Steps:
• Perform a comprehensive survey of incentive tools and strategies currently being
successfully employed by communities throughout the metro area.
• Compose business assistance and incentive package/proposal for Council's
consideration and possible adoption.
• Develop and execute a strategy to communicate the availability of incentives as adopted
by the Council to targeted businesses.
9. Ensure a business-friendly environment within Fountain Hills.
Action Steps:
• Identify, inventory, and review Town regulations that are onerous for economic
development efforts.
• Develop a plan to make regulatory modifications that would facilitate economic
development activities that align with creating a more vibrant business environment
while not compromising community values.
10. Maintain Fountain Hills' physical infrastructure to support economic development.
Action Step:
• Adequately fund and maintain capital improvement projects that maintain the Town's
investment and improve the community's quality of life.
11. Ensure Town services meet community needs and achieve a more sustainable revenue
balance.
Action Step:
• Collaboratively pursue funding strategies that meet the current and future needs of the
Town of Fountain Hills.
April 2013 Draft Page 13 of 17
Fountain Hills Economic Development Plan
Locational Catalysts
Goal: Revitalize and maximize the economic opportunities of community
assets.
FOUNTAIN HILLS POSITION
Fountain Hills has tremendous geographic and locational assets that can serve as a catalyst for
economic growth. These business development areas include the Civic Center, Avenue of the
Fountain Hills, Fountain Park Area, Shea Corridor, and Saguaro Boulevard. Each asset has
development that has occurred, is occurring, or is in need of revitalization. Continual evaluation
and action planning is needed to ensure that these assets are not under-utilized and are
developed in such a way to enhance the long-term sustainability of the community.
In 2009, the Town of Fountain Hills adopted the Downtown Area Specific Plan that identified
nine districts that offered revitalization and development opportunities. These districts
included:
• Business District: Center of downtown commerce that promotes entrepreneurship
through a variety of commerce related opportunities and business related uses.
• The Avenue District: Core of the downtown with a comfortable atmosphere for
strolling, sight-seeing and shopping. This district will evolve into a premier shopping
destination for residents and a must-visit magnet for visitors.
• South End District: Envisioned as a mixed-use downtown residential neighborhood that
is complemented with small neighbor-hood-oriented commercial, second story offices,
and specialty shops. This district will contain a "village square" that will provide the
downtown with a prominent park.
• Residential District: Currently developed as condominiums and is a vital component in
providing an infusion of people into the downtown area and enhancing the vitality and
quality of the downtown experience.
• West Side District: A true mixed-use district where residential infill as well as retail,
offices, and services will be encouraged. This is also a possible location for a future large
entertainment anchor.
• Civic District: Current home of the Town Hall, Community Center, Library, and Museum.
This district will be enhanced with future additional artwork and possibly infill
development such as a community pool or similar uses that will enhance the quality of
life for the town residents and visitors.
• Service District: Existing commercial area and the current location of Fountain Hills
Plaza (aka Bashas' plaza). Community oriented businesses in this area will be maintained
as an important component of the downtown and the community as a whole.
• Lakeside District: Provides a dynamic transformation of a portion of the existing
Fountain Park. This district will become a unique, amenity-oriented open space
environment with a prominent performance venue and the possibility of some specialty
retail shops, café's, and other appropriately sized businesses.
April 2013 Draft Page 14 of 17
Fountain Hills Economic Development Plan
• Park District: The majority of Fountain Park will remain as it is. Potential improvements
include more trees, decorative park lighting, seating areas, signage, and park
furnishings. The park will remain as a primarily passive recreational area.
Each district is intended to have its own unique character and yet each district will also blend
harmoniously with the other downtown districts to create the "Downtown Vision."The
Downtown Vision gives the Fountain Hills downtown area its unique character and appeal while
providing for an invigorated business climate as well as an increased quality of life for the town
residents and visitors.
Though much emphasis has been placed on the Downtown Specific Plan area, the Shea
Boulevard Corridor and Saguaro Boulevard offer economic development opportunities that
should not be overlooked.
GAME PLAN
12. Develop and prioritize an implementation strategy for the Downtown Area Specific Plan.
Action Steps:
• Identify and mitigate land use restrictions and zoning within the Districts which are
hampering development as envisioned and identified in the Area Specific Plan.
• Identify and assess potential conflicts between vehicular and pedestrian traffic in
downtown.
• Evaluate parking quantity and quality.
• Ensure public and private infrastructure is properly maintained.
• Maintain downtown aesthetics.
• Encourage infill development, development of large vacant parcels, and redevelopment
within the Districts in alignment with the Area Specific Plan.
1 • Support a diversified retail and restaurant mix in the Avenue District between Saguaro
Drive and Verde River Drive.
• Develop a plan to clearly identify pedestrian walkways and interconnectivity within
Districts and between Districts that minimize conflict between pedestrian traffic and
vehicular traffic.
13. Foster the revitalization and enhancement of existing areas.
Action Step:
• Establish a vision and guidelines for future revitalization and enhancement of
commercial corridors such as Shea Boulevard and Saguaro Boulevard as well as existing
neighborhoods.
April 2013 Draft Page 15 of 17
I
• Fountain Hills Economic Development Plan
Strategic Implementation
Economic development in Fountain Hills requires a collaborative effort to ensure success. The
Town of Fountain Hills plays a key role along with the business community and residents. The
Town works collaboratively with the various stakeholder groups and other agencies in its effort
to diversify the local economy.
The Economic Development Plan is based on expanding the local economy and improving the
standard of living within the Fountain Hills area. Following is a list of success objectives that will
assist in implementation. Many of these objectives are similar to The Ahwahnee Principles for
Smart Economic Development created by the Center for Livable Communities in Sacramento,
California.
Coordinated Approach: All entities involved in economic development must work together to
achieve mutually agreed-upon goals to ensure a sustainable effort.
Community Collaboration: A comprehensive understanding of the town and region and a
commitment to collaborating with entities throughout the region (e.g., federal agencies,
incorporated communities) are critical.
Smart Growth: The regional environment is a tremendous asset that should be protected for
community and economic development reasons. The community must take great strides in
Iaddressing resource issues, such as water, to ensure long-term sustainability.
Long-Term Efforts: Economic development is not a one-shot activity. Success requires long-
term investments (e.g., infrastructure and telecommunications) as well as continued focused
effort and evaluation.
Existing Business Support: The town's focus is on supporting existing enterprises, while looking
at diversifying the economic base is important. Existing businesses are Fountain Hills' most
valuable assets because they are already contributing to the local economy and quality of life.
They are also the best source of business expansion and local job growth.
Corporate Responsibility: Fountain Hills encourages enterprises to work as civic partners,
contributing to the community, protecting the natural environment, and providing workers
with good pay, benefits, and opportunities for upward mobility, within a healthy working
environment.
Human Investment: Human resources are so valuable in the Information Age and Fountain
Hills will strive to provide life-long skills and learning opportunities by investing in excellent
schools, post-secondary institutions, and opportunities for continuous education and training
that are available to all.
April 2013 Draft Page 16 of 17
Fountain Hills Economic Development Plan
The strategic implementation program should be initiated with an Economic Development
Summit. The Summit would bring together community leaders,stakeholders, and experts in
1410
economic development, downtown development, and tourism fields to discuss the initiatives
and direction the community should be take to implement the Economic Development Plan.
Annually,the Economic Development Summit would be held to review, revise, and redirect the
economic development effort.
Potential partners for the summit might include (but would not be limited to):
• Town of Fountain Hills
• Fountain Hills Chamber of Commerce/Visitors Bureau
• Greater Fountain Hills Business Alliance
• Fort McDowell Yavapai Nation
• Greater Phoenix Economic Corporation
• Arizona Commerce Authority
• Utility providers
• Education providers
• Support providers (local commercial realty, etc.)
Performance Metrics
Performance metrics are applied to measure the Plan's activities and its overall performance.
As there is always an element of uncertainty about the future, regular review to ensure that a
plan is still effective and achieving desired outcomes is critical. Performance metrics should
support the intended strategic outcome and typical meet six criteria: time, cost, resources,
scope, quality, and actions. Performance metrics will be established with each strategic
initiative to provide annual assessment of progress.
April 2013 Draft Page 17 of 17
♦ , l
•
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.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION 1. 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.
1
1922168.5
4
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.
vari
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 �„rr
1922168.5
2
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
0 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
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:
Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Ken Buchanan, Town Manager Andrew J. McGuire, Town Attorney
CERTIFICATION
I, 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 aye's and nay's and that the Mayor and
Councilmembers were present thereat.
Bevelyn J. Bender, Town 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
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.
C
1922168.5
f
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 byapolitical committee, the original, notarized signature
q g p g
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) 816-5115.
..r
1922168.5
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V
RESOLUTION NO.2013-02
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING THE PAVEMENT
MANAGEMENT PROGRAM AND AUTHORIZING THE NECESSARY
BUDGET TRANSFERS TO FUND THE PROGRAM.
WHEREAS, pavement management is considered a "core service" for the Town of
Fountain Hills(the"Town"); and
WHEREAS, at the August 23, 2012 Town Council/Staff Retreat, the Mayor and Council
of the Town (the "Town Council") made establishment of a Pavement Management Program a
top priority to be addressed; and
WHEREAS, the Town street system is estimated at $150,000,000 replacement value,
making preservation of existing streets essential to the fiscal health of the Town; and
WHEREAS, the 2009 Stantec Engineering Report indicated that the Town's pavement
earned a rating 67.1 out of 100, which indicated that the Town's pavement ranged from good to
excellent, but noted that, due to the age of the pavement, degradation of the pavement could
accelerate without a proper annual pavement maintenance program; and
WHEREAS, the Town Council desires to have the Fountain Hills Pavement
Management Program funded annually with existing funds, beginning with $867,000 in FY
2012/13 and increasing to $1.0 Million annually thereafter; and
WHEREAS, the Town Council finds and determines that it is in the best interest of the
Town that funding for a Pavement Management Program be generated from existing sources,
including: (i) transfers of certain Highway User Revenue Fund ("HURF") and Vehicle License
Tax ("VLT") amounts; (ii) cancellation of certain projects in the Town's Capital Improvement
Plan ("CIP"); (iii) outsourcing of certain functions and (iv) reductions in force to eliminate five
staff positions; and
WHEREAS, the Town Council will review the funding sources for the Pavement
Management Program annually through its budget process to determine if other sources of revenue
are available and appropriate for funding the Pavement Management Program.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, as follows:
SECTION 1. The foregoing recitals are incorporated as if fully set forth herein.
SECTION 2. The Fountain Hills Pavement Management Program is hereby designated
the same Priority Level in the Town budget as Public Safety.
kiksw
1867953.3
SECTION 3. In order to provide funding to the Pavement Management Program in fiscal
year 2012/13,the Town Council hereby authorizes the budget appropriation transfer of$867,000 in •
General Fund,Highway User Revenue Fund, and Capital Project funds, should they be available in
the current 2012/13 Town Budget,beginning April 2013 as follows:
Contingency Transfer from General Fund to HURF $300,000
Economic Development General Fund Budget Savings $ 80,000
Information Technology Online Storage Project General
Funds Savings $ 8,000
Highway User Revenue Fund Balance Reserves $100,000
Household Hazardous Waste Event General Fund Savings $ 45,000
CIP project—Saguaro/Palisades signal deferral to 2014/15 $256,000
CIP Intelligent Transportation System Project Elimination $ 53,000
CIP Contingency $ 25,000
TOTAL $867,000
SECTION 4. Beginning in fiscal year 2013/14 and continuing annually thereafter until
directed otherwise by the Town Council as part of its annual budget process or separately at a
public meeting, all revenues received from the Town's portion of Vehicle License Tax shall be
designated for the Pavement Management Program.
SECTION 5. Beginning in fiscal year 2013/14 and continuing annually thereafter until
directed otherwise by the Town Council as part of its annual budget process or separately at a
public meeting, a minimum of $250,000 shall be apportioned from the HURF revenues for the
Pavement Management Program.
SECTION 6. The Town Council, by approving this Pavement Management Program,
understands that commencing in March 2013, the Town Manager intends to undertake certain
actions in order to fund the Pavement Management Program, including (i) initiating a reduction in
force program by eliminating five positions: two in Administration; one in Community Services;
and two in Development Services (street sweeping outsourced and one vacant HURF position) and
(ii) reducing the operational budget for the Administration Department by reclassifying the Human
Resource Director's position from full-time to part-time (30 hours per week) by June 30, 2013.
The reduction in force plan is more fully described in Exhibit A, attached hereto and incorporated
herein by reference.
SECTION 7. Beginning with the FY 2013/14 budget and continuing thereafter until
directed otherwise by the Town Council as part of its annual budget process or separately at a
public meeting, the Town Council hereby authorizes and directs the Town Manager to transfer the
Economic Development Tourism Initiative appropriation to the Downtown Excise Tax Fund.
SECTION 8. Beginning with the FY 2013/14 budget and continuing thereafter until
directed otherwise by the Town Council as part of its annual budget process or separately at a
public meeting, the Town Council hereby authorizes and directs the Town Manager to reduce the
Contingency Fund portion of the General Fund from$300,000 annually to$65,000 annually.
1846566.3
2
• .
SECTION 9. Beginning with the FY 2013/14 budget and continuing thereafter until
41, directed otherwise by the Town Council as part of its annual budget process or separately at a
public meeting, the Town Council acknowledges that the total of the reductions to be
recommended by the Town Manager shall include the following:
A. Community Services:
Reduce one staff position in Parks Department $ 43,300
Reduce Program Budgets to:
Ballet Arizona $ 7,000
Homecoming Parade $ 3,600
Homecoming Tailgate Party $ 1,500
Sock Hop $ 2,150
New Teen Programs $ 2,450
COMMUNITY SERVICES TOTAL $ 60,000
B. Development Services:
Reduce outside contract for inspections $ 30,000
Reduce expenditures for code abatement $ 5,000
Eliminate household hazardous waste event $ 45,000
Eliminate purchase of GIS equipment $ 25,000
DEVELOPMENT SERVICES TOTAL $ 105,000
C. Administration Department:
Reduce one PT Position in Finance $ 17,000
Reduce one FT position Court $ 50,000
Reduce one FT position to PT in Administration $ 40,000
Reduce Economic Development
General Fund budget $ 90,000
Reduce General Fund Contingency
to previous years $ 285,000
Transfer Tourism appropriation to Downtown Fund $ 103,000
ADMINISTRATION DEPARTMENT TOTAL $ 585,000
D. Streets Department:
Outsource street sweeping program(1 FTE) $ 50,000
Eliminate vacant street maintenance position $ 50,000
Reduce HURF operations budget(programs) $ 75,000
Current Pavement Mgmt. Funding in HURF $ 50,000
Drawdown of HURF Reserves(max 6 years) $ 25,000
HURF TOTAL $ 250,000
C TOTAL REDUCTIONS: $1,000,000
1846566.3
3
SECTION 10. 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, January 17, 2013.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Kenneth W. Buchanan, Town Manager Andrew J. McGuire, Town Attorney
1846566.3
4
EXHIBIT A
TO
RESOLUTION NO. 2013-02
[Reduction in Force Plan]
See following page.
•
1
I
1867953.3
Reduction in Force
2012-13
Elimination of Five(5) positions:
1. Court Clerk—Full-time
2. Financial Services Tech—Part-time
3. Groundskeeper—Full-time
4. Street Maintenance Technician, Sweeper—Full-time
5. Street Maintenance Technician—Full-time—currently vacant
Reclassification of one (1) position:
1. Human Resources Administrator from full-time status (40 hrs/wk) to part-time status (30
hrs/wk)
Criteria for layoffs:
1. Workload
2. Credentials/Knowledge
3. Performance
4. Salary
5. Seniority (tiebreaker only)
.000
Severance Package:
The employees that are currently filling the four positions being eliminated will receive a
severance package consisting of one week of their regular pay for each year of service. In
addition,they will receive one month of COBRA paid by the Town of Fountain Hills.
Process:
The Town Manager, Department Director and Human Resources Administrator will meet with
the four employees on a designated date to notify the affected employees and explain the
severance package. COBRA forms will be distributed to each individual at that time.
ark
1867953.3
‘4,,t AIN& TOWN OF FOUNTAIN HILLS
ko° <e OFFICE OF TOWN MANAGER
X INTER OFFICE MEMO
Z
�_.vor
"hat is Asti•
TO: Mayor & Town Council DATE: January 8th 2013
FR: Ken Buchanan, Town Manager RE: Restorative Programs: Pavement
Management
The Town of Fountain Hills, from fiscal years 2000 to 2011, expended approximately $9,274,736 on a
Pavement Management Program. Through the austere years due to the effects of the "Great
Recession," the Town continued to appropriate funding toward preservation of the pavement to the
greatest extent possible. The ongoing use of maintenance type strategies such as crack sealing, surface
treatment, slurry and micro surfacing will help to extend the life of those streets. This type of program
assists in reducing the need for major rehabilitation and reconstruction until well into the future.
As previously mentioned, the Town of Fountain Hills pavement management practices have consisted
of crack sealing, surface seals and slurry seals by designated maintenance zones once every seven
years and funded through a combination of Highway User Revenue Funds, General Funds and Capital
Improvement Program Funds. The current HURF budget constraints allow only$100,000 annually for
lane striping, curb, sidewalk and asphalt repairs supplemented with$100,000 from the Capital Projects
Lund.
The January 2009 Pavement Management Report completed by Stantec Engineering suggested the
need for a minimum $1,200,000 annually for pavement management projects. The report further
estimates that $2.8 million annually is required for an annual asphalt replacement mill & overlay
process to at least 20% of each Pavement Zone as well as continued slurry seal or surface seal
treatments to the remaining streets. This is a long term pavement management program that will target
one of seven pavement management zones each year and will replace the entire public street network
over a 35 year period. The $1 million program proposed in is perpetual in nature but will not address
reconstruction of the "poorly rated roads" such as Saguaro Blvd. The lifespan of some existing streets
will need to be stretched to 50+years in some areas under such a program.
The 2009 Stantec Engineering Report alluded to an overall Surface Distress Index(SDI) pavement
quality index was 77.9. The Riding Comfort Index (RCI) is 69.2. The Structural Adequacy Index
(SAI) as "strong". The Pavement Quality Index (PQI) is the "overall" assessment rating of"67.1" out
of a 100 rating scale that placed the pavement in the "good" range. The Report did reflect a concern
that due to the age of the pavement, degredation of the pavement could accelerate without a proper and
timely pavement maintenance program. As further indicated and recommended in the report, "in order
to protect the capital investment the Town of Fountain Hills has already made in the street network, it
is imperative to continue a proactive maintenance approach."
The Town of Fountain Hills is capable of budgeting at least $1 million on an annual basis should the
Town Council accept Staffs recommendations. The program provides applications of the various
pavement maintenance applications such slurry seal to the residential and micro-surfacing to the
Arterial Streets over a eight(8)year period(2013 to 2021).
I
Approach
• Pavement Maintenance Program
o Seven Zones;
• Eight (8)Year Program(Zone#1 requires a two-year program)
• Crack Seal
• Surface Seal
• Slurry Seal
• Cape Seal
• Mill & Overlay Asphalt Replacement Patch
• Subgrade and Asphalt Failure Patch Repair
• Requires cut out of asphalt and replace
• Slurry Seal over Street/Asphalt Patch
o 2012 to 2020
• Zone#6 2012/13 (April/June of 2013)
• Slurry Seal 383,811 sq.yds...$867,000
• Zone#7 2013/14 (July/September 2013)
• Micro-Surface Palisades Blvd and Fountain Hills Blvd; portions of Shea Blvd &
Eagle Mountain 665,910 sq.yds....$2,000,000
• Zone#1 2014/15 (July/Sept 2014)
• 1st phase Slurry Seal;Asphalt Patch 712, 026 sq.yds....$1,000,000 void
• Zone#1 2015/16 (July/September 2015)
• 2nd Phase Slurry Seal $1,000,000
• Zone#2 2016/17 (July/September 2016)
• Slurry Seal 618,355 sq.yds; Asphalt Patch 10,920 sq.yds...$1,000,000
• Zone#3 2017/18 (July/September 2017)
• Complete Zone#2—Start Zone#3; Slurry Seal 289,044 sq.yds; 4,770 sq.yds
Asphalt Patch....$1,000,000
• Zone#4 2018/19 (July/September 2018)
• Complete Zone#3—Start Zone#4; Slurry Seal 483,429 sq.yds; 613 sq.yds.
Asphalt Pavement Patch;TRMSS Saguaro Blvd...$1,000,000
• Zone#5 2020/21 (July/September 2020)
• Complete Zone#4—Complete Zone#5; Slurry Seal 307,301 sq.yds;
339sq.yds. Asphalt Patch $1,000,000
• s
LFunding
• Pavement Management Funding
o 2012/13 Budget Adjustment $867,000
• Contingency Fund Transfer to HURF
• Reduce the amount of Contingency to only$50k from $300k
• ED Budget Savings
• Unfilled ED Administrator Position
• IT Online Storage Project
• Defer Project
• HURF Fund
• Fund Balance
• Household Hazardous Waste Event
• Defer Project
• CIP—Saguaro/Palisade Signal Replacement
• Defer Project to 2014 contingent upon Saguaro Bond Passage
• CIP Intelligent Transportation System Project
• Cancel Project
• CIP Contingency
o 2013 to 2021 $1,000,000 per year
• Dedicated Revenue Source....Vehicle License Tax
® • $750,000 annually
• Adjust Budgets in Administration
• Personnel Reduction
o Court Clerk Position
o Finance Position(PT)(retirement)
o HR Administrator from FT to PT
• Appropriate Tourism Funding from Downtown Fund
• Reduce Economic Development GF Subsidy
• Reduce Annual Contingency Fund
• Adjust Budgets in Community Services
• Personnel
o One (1) Parks Position
4 • Operational Program Reductions
• Adjust Budget in Development Services (HURF)
4 • Sweeping Outsourced w/ Contract
o One (1) Position
• Current Vacant Street Position
• Operational Program Reductions
o Total Eight Year Project $9,700,000
i
• Pavement Management Program Proposal from fiscal year 2014/15 thru 2020/21 is contingent
4 upon successful $8,200,000 Saguaro Bond Election in November 2013.
It is the ultimate goal of the Pavement Management Program to provide the citizens of Fountain Hills
with a safe, efficient and well maintained transportation network for all users and protect the value
and condition of the Town's most valuable infrastructure for many years to come. By initiating the
44110
Pavement Management Program in its proposed form will begin to address the degredation of the
asphalt to prolong its life. An asphalt replacement program and its associated funding will need to be
considered in the future in keeping with the Stantec Engineering Report findings and
recommendations.
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