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Town of Fountain Hills · Meeting 123 complete

2025-12-16 · Town Council

Items: 28 / 28
Docs: 49

Town Council Regular Session

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Synced: 2026-06-27 15:40 AZ
Meeting Documents

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Call to Order and Pledge of Allegiance

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Invocation

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INVOCATOR: Pastor Keith Pavia, Christ's Church of Fountain Hills
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Roll Call

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Statement of Participation
Anyone wishing to address the Council regarding items listed on the agenda should fill out a Request to Comment card located in the back of the Council Chambers and hand it to the Town Clerk prior to consideration of that agenda item. Once the agenda item has started, late requests to speak cannot be accepted. When your name is called, please approach the podium, speak into the microphone, and state your name and if you are a resident for the public record. Please limit your comments to three minutes. To avoid disruption of the meeting, to maintain decorum, and provide for an equal and uninterrupted presentation, applause is not permitted, except when community members are being honored by the Council.

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Summary of Current Events by Town Manager and Proclamations

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RECOGNITION: Stellar Students
The Fountain Hills Town Council is proud to recognize students who demonstrate good citizenship by complying with the rules, being compassionate and considerate of others, encouraging empathy, supporting anti‐bullying efforts and being responsible for their actions in the classroom.

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RECOGNITION: Mayor's Business Spotlight - Cheryl's of Fountain Hills
In recognition of the outstanding contributions to the Town of Fountain Hills, the Mayor and Town Council will recognize a local business, Cheryl's of Fountain Hills for their dedication to excellence, innovation, and community engagement. As well as their commitment to quality and service that not only strengthened our local economy but also enriched the lives of residents and visitors alike.

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PROCLAMATION: Recognizing International Sister City Relationships and Honoring Italian Culture
The Town of Fountain Hills proudly celebrates the spirit of global friendship that enriches our community. Our Sister Cities—Ataco in El Salvador, Dierdorf in Germany, and Zamość in Poland—each share with us pieces of their hearts: their heritage, their traditions, and their beautiful languages. These relationships remind us that even across oceans, people can be united through understanding, respect, and goodwill. We also honor the Italian community, whose rich culture and language continue to inspire Fountain Hills and deepen our shared sense of cultural pride. These connections are more than symbolic—they help shape who we are as a town. They bring us new perspectives, new friendships, and a deeper appreciation for the world around us. They remind us that our community is stronger, richer, and more vibrant because of the cultures that touch our lives. On behalf of the Mayor and the Town Council, we express our heartfelt gratitude for these international friendships and for the joy, meaning, and cultural beauty they bring to Fountain Hills.

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Presentations

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Consent Agenda
All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a Councilmember or member of the public so requests. If a Councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. The remaining items on the Consent Agenda will be enacted by one motion and vote of the Council.

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Regular Agenda

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CONSIDERATION AND POSSIBLE ACTION: Authorizing a budget transfer from the General Fund Contingency to the Downtown Strategy Fund and General Fund, Community Services Department in fiscal year 2026, and to proceed with additional spending next fiscal year 2027 for America 250.
On July 4, 2026, our nation will commemorate and celebrate the 250 anniversary of the signing of the Declaration of Independence. The journey towards this historic milestone is an opportunity to reflect on our nation's past and honor the contributions of all Americans. Cities and Towns across the United States are coming together to celebrate.To join in this celebration, staff respectfully requests a budget authority transfer of $60,000 from the General Fund Contingency in FY2026 and permission to proceed with $40,000 of additional spending next fiscal year 2027 that will be incorporated into the budget process for the following purposes:FY2026Banners along the Avenue ($15,000 of budget authority/permission would be transferred from the General Fund Contingency to the Downtown Fund which has sufficient fund balance; the budget authority would provide permission to staff to spend Downtown Fund balance on this purpose in FY2026)Up to $45,000 of General Fund Contingency budget authority /permission would also be transferred into the Recreation Division (General Fund, Community Services Department) for:T-Shirts to commemorate America 250 and Fountain Hills' 4th of July Promotional and branded materials to distribute at Fountain Hills events from January - July 2026Expanded event programming - 1776 Movie NightThe additional budget authority would provide permission for staff to spend General Fund balance on these purposes in FY2026.FY2027Bringing in a nationally recognized performer for the Town's 4th of July event — this would require an additional $40,000 of budget authority in the Community Services Department, Recreation Division in the General Fund. The additional budget would be incorporated into the FY2027 General Fund budget process.The Community Services Department and History and Cultural Advisory Commission are also working on the following:Student EssayIncorporating the 250th into Concerts on the AvenueIf approved by Council, $60,000 of budget authority (permission for staff to spend existing sufficient fund balance) will be transferred from the General Fund Contigency to the Downtown Fund ($15,000) and General Fund, Recreation Division (Up to $45,000). The additional $40,000 of budget authority for a nationally recognized performer would increase the General Fund, Community Services budget in FY2027.

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CONSIDERATION AND POSSIBLE ACTION: Regarding proceeding with Pavement Management Options for Richwood Avenue and Approving Necessary Budget Transfers
On September 5, 2025, staff presented the proposed FY26 pavement management program and the streets identified through the BOSS pavement selection software. As part of that presentation, staff also reviewed the limited section of Fountain Hills Boulevard north of Saguaro Boulevard that had been auto selected for pavement treatment. During the discussion, staff noted that this segment represents only a small portion of the larger Fountain Hills Boulevard corridor, and that the remainder of the arterial—from Palisades Boulevard to McDowell Mountain Road—maintains a higher Pavement Condition Index (PCI) rating and does not yet warrant treatment.Based on this analysis, staff recommended that the Mayor and Council delay or defer the Fountain Hills Boulevard treatment, allowing time to develop a more comprehensive plan for the full corridor. The Town Council concurred and directed staff to redirect the unspent allocated funds to evaluate alternative pavement treatment solutions for areas where cost-effective rehabilitation options may provide significant benefit.Specifically, the Council directed staff to pursue alternative pavement treatment methods for Richwood Avenue between Golden Eagle Boulevard and Boulder Drive. Evaluation and FindingsOver the last two months, staff conducted on-site meetings with multiple paving contractors to evaluate pavement conditions and to review treatment options that provide a lower-cost alternative to full roadway reconstruction.This effort also incorporated lessons learned from the Town’s own pilot chip seal/cape seal projects on El Lago Boulevard and Chama Drive, both of which demonstrated significant performance improvements and extended pavement life at a fraction of the reconstruction cost. Other Valley municipalities employing similar approaches have also reported positive long-term outcomes.Field assessments of Richwood identified several areas where chip seal and cape seal alone would not provide sufficient structural benefit. These isolated failures require localized removal and replacement prior to applying surface treatments. Based on contractor feedback, pilot program performance results, and pavement distress observations, staff is recommending the following treatment sequence: Recommended Richwood Avenue Treatment ApproachLocalized Asphalt Removal and ReplacementApproximately 4,500 square feet of asphalt will be removed and replaced in sections where the pavement cannot be salvaged.Micro MillingA micro mill of ½ inch to ¾ inch will be performed across the roadway surface to remove high spots, address raveling areas, and improve bonding for subsequent treatments.Type III Micro Seal Scratch CourseApply a micro seal scratch coat to level minor surface imperfections and provide a uniform base for sealing.Crack SealingSeal all remaining cracks to prevent water intrusion and extend pavement life.Chip Seal with Cape Seal OverlayApply a chip seal (liquid asphalt and embedded aggregate) followed by a cape seal to provide a smooth, sealed, durable finish.This treatment combination has proven successful in extending service life 7–10 years, depending on weather conditions. Estimated Cost SummaryComponentEstimated CostAsphalt Removal & Replacement, Chip Seal with a Cape$550,000 of which sum includes a 15% owners’ allowanceConcrete Repairs (curb, gutter, panels, etc.)$190,000 of which sum includes a 15% owners’ allowanceTotal Project Cost$740,000Budget Transfer Required (from Capital Projects Fund for Palomino Blvd into the Streets Fund for Pavement Management Program)Because the Town received bids much lower than budgeted for the Palomino Blvd Reconstruction capital project, the FY2026 final budget includes about $1.5 million of additional budget authority (permission to spend existing fund balances) in the Capital Projects Fund (which would have been reimbursed from the Streets Fund on an ongoing basis). Therefore, because the Town's bidding process resulted in lower Palomino project costs, staff recommends leveraging the budgetary and funding savings by transferring budget authority from the Capital Projects Fund (Palomino Blvd project) into the Streets Fund to increase the amount of budget available for the Pavement Management Program (the FY2026 budget already includes $5 million for the Pavement Management Program, and this budget transfer of about $740,000 would increase that budgeted amount to provide additional permission for staff to complete this Richwood Ave paving work).

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PUBLIC HEARING: Regarding the proposed Development Impact Fee Schedule.
At the October 21, 2025, Council meeting, the Council approved an updated Land Use Assumptions and Infrastructure Improvement Plan Report, which included an updated development impact fee schedule created based on the assumptions and plan included in the report. The fee schedule substantially increased fees for all development types and categories of fees (Fire, Streets, and Parks). For example, the current single family combined impact fee of $3,973 would have increased to $12,314 based on the approved report. However, Finance staff have explained throughout the update process that the Streets development impact fee was based on the projected costs associated with the Town's expenditure match for widening Shea Boulevard for the current year phase and the next phase projected to be completed within the next 5–10 years, and that the proposed fee was based on increased engineering estimates the Town recently received.Since the Land Use Assumptions and Infrastructure Improvement Plan Report was approved on October 21st, the Town completed a bidding process for the current phase of the Shea Boulevard Widening Project, and the Council approved staff to proceed with a construction bid of $3.2 million, about half of what the engineering estimates indicated. Finance staff reviewed the updated project costs, including post-bid construction services, and construction management services, compared to the projected costs used in the Infrastructure Improvement Plan Report approved by Council. With these revised calculations, Finance is now proposing a 50% reduction to the Streets development impact fee from the original proposed amount. This proposed reduction would reduce the combined single-family residence development impact fee from the original proposed amount of $12,314 to $8,816 (a reduction of the Streets development impact fee of $3,498).  All the other development impact fees for Parks and Fire remain the same as originally discussed with Council, and the new proposed fee schedule can be found in the attached Land Use Assumptions, Infrastructure Improvements Plan, and DRAFT Development Fee Report on page 8 of the report. The new proposed combined development impact fees are as follows (including proposed Streets impact fee reduction across all development types):Single Family Residential: $8,816 per housing unitMulti-Family Residential: $5,462 per housing unitIndustrial: $2,095 per 1,000 square feetCommercial: $4,815 per 1,000 square feetOffice & Other Services: $4,503 per 1,000 square feetInstitutional: $4,719 per 1,000 square feetThis public hearing is to provide information on the staff recommendation forthcoming at the planned January 20, 2026, regular meeting, when Council will consider approval of the Resolution and new development impact fee schedule, and for the Council to hear any public comments on the proposed development impact fees. If approved by Council at the January 20th regular meeting, the new development impact fees will become effective on April 6, 2026.

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CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2025-35, increasing a stipend up to $750 per month for Council Members and increasing a stipend up to $1,100 per month for the Mayor beginning in December 2026.  Removed at the direction of the Mayor and Council
The Town of Fountain Hills Council adopted Resolution 1992-10 in April 1992, first establishing compensation of $300 per month for Council Members and $400 per month for the Mayor. Eight years later, in 2000, the Council adopted Resolution 2000-28, which increased these amounts to $400 per month for Council Members and $600 per month for the Mayor. Town Code, Section 2-1-5 and ARS 9-232.01 allow for the Council to approve increased monthly stipend amounts by resolution. At the May 6, 2025, regular meeting, the Town Council considered a resolution (Resolution 2025-18) to increase stipends for Council Members to $750 per month and for the Mayor to $1,100 per month. Resolution 2025-18 did not pass by a 3-4 Council vote on that night. However, the Council held further discussion on this matter at the June 17, 2025, regular meeting and at the September 9, 2025, work session discussing staff and council pay adjustments. At those subsequent meetings, several members of the Council expressed interest in revisiting the possibility of increasing Council and Mayor stipends beginning after the next election in 2026.   Therefore, Town staff drafted Resolution 2025-35 for Council consideration, which increases stipends for Council Members to $750 per month, and the Mayor to $1,100 per month beginning in December 2026 after the new Council is seated. Regardless of the Council's vote on this resolution, another agenda item tonight relates to aligning Council Member and Mayor's stipend adjustments with Town staff pay adjustments approved during the budget process each fiscal year.

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CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2025-43, aligning annual Council stipend adjustments with Town staff pay adjustments. Removed at the direction of the Mayor and Council
Town Code, Section 2-1-5 and ARS 9-232.01 allow for the Council to approve increased monthly stipend amounts by resolution. The Town Council has held several discussions on staff pay and council compensation during calendar year 2025. Specifically, the Council held discussions on this matter at the June 17, 2025, regular meeting and at the September 9, 2025, work session discussing staff and council pay adjustments. At those meetings, several members of the Council expressed interest in aligning annual Council and Mayor stipend adjustments with Town staff pay adjustments approved through each annual budget process. These proposed annual stipend adjustments for the Council would begin in the fiscal year following the next election in 2026 (Fiscal Year 2028). Therefore, Town staff drafted Resolution 2025-43 for Council consideration, which provides that the stipends for Council Members and the Mayor would be increased on the effective date and by the same percentage as Council approved salary adjustments for Town employees from and after December 2026.

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Council Discussion/Direction to the Town Manager
Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council.

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Future Agenda Items

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Adjournment

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