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ITEM 3.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/30/2026 Meeting Type: Town Council Special Meeting Submitting Department: Public Works / Engineering Prepared by: David Janover, Town Engineer Staff Contact Information: Phone: 480-816-5112 Email: djanover@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving Resolution 2026-10, an Intergovernmental Agreement with the Fountain Hills Sanitary District, for the Golden Eagle Park Dam–Debris Mitigation Improvement Project – Phase II. Staff Summary (background) In 2025, the Town completed stormwater drainage improvements within the Golden Eagle Park Impoundment Area, which are referred to as the Phase I improvements. This coming year, the Town plans to construct dam-related improvements and other improvements in the impoundment area, known as the Golden Eagle Park Dam-Debris Mitigation Improvement Project – Phase II. The project scope has also been expanded to include improvements requested by the Fountain Hills Sanitary District to protect its infrastructure. The Project combines Town-led debris mitigation improvements with District- led sanitary sewer infrastructure protection into a single construction effort. The proposed Intergovernmental Agreement (IGA) establishes roles, responsibilities, and fiscal obligations between the Town of Fountain Hills (Town) and the Fountain Hills Sanitary District (District) for coordination and cost-sharing of certain elements of the Phase II improvements. BACKGROUND The Phase II Project includes two coordinated components: • Town Improvements: Installation of debris deflector structures and access barrier improvements at the Golden Eagle Park Dam to reduce the risk of blockage and structural damage during storm events. • District Improvements: Construction of a retaining wall system and related improvements to protect an existing sanitary sewer manhole located near the dam outlet works. These improvements have been combined into a single design, permitting, and construction effort to streamline project delivery, satisfy permitting requirements, and reduce overall construction costs. DISCUSSION The proposed IGA establishes: • The Town as the lead agency responsible for procurement, contract administration, and construction oversight • A single construction contract covering both Town and District improvements • A clear cost allocation and reimbursement structure Under the Agreement: • The Contractor will submit itemized invoices identifying Town and District work • The Town will review and pay 100% of each invoice, while providing the District an opportunity to review District-related costs • The District will reimburse the Town for 100% of District-related costs within 30 days The Agreement also clarifies that: • The Town retains full authority for procurement and construction administration • The District retains authority over construction decisions related to its sanitary sewer manhole protection improvements and has separately retained Construction Quality Assurance (CQA) services • The District’s financial responsibility is limited to its defined scope of work • The Parties will coordinate as needed during construction This approach provides efficient project delivery while maintaining clear accountability between the Parties. FUNDING AND REIMBURSEMENT The Town has a separate Intergovernmental Agreement with the Maricopa County Flood Control District (MCFCD) for the Golden Eagle Park Dam Improvement Project. Under that agreement: • The Town is eligible for 75% reimbursement of its eligible project costs • This reimbursement applies only to the Town’s portion of the Project The District’s portion of the Project: • Is not included in the scope of the MCFCD agreement, and • Is not eligible for reimbursement from MCFCD Accordingly: • The District will reimburse the Town for 100% of District-related construction costs • The Town will separately pursue reimbursement from MCFCD for eligible Town costs only This structure ensures that funding sources remain separate and compliant with each agreement. Related Ordinance, Policy or Guiding Principle A.R.S. §11-951 et seq., authorizing intergovernmental agreements, and the Town’s guiding principle of interagency coordination to ensure efficient project delivery, cost sharing, and protection of public infrastructure. Risk Analysis Without approval of the IGA, the Town would assume financial risk for District-related construction costs without a guaranteed reimbursement mechanism, and the separation of funding required under the Town’s agreement with MCFCD would not be clearly documented. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2026-10 Suggested Motion MOVE TO APPROVE Resolution 2026-10 FISCAL IMPACT Fiscal Impact: $191,300 Budget Reference: FY2027 Funding Source: Capital Projects Fund ATTACHMENTS 1. Resolution 2026-10 IGA with FHSD for Golden Eagle Park Phase II