Call to Order and Pledge of Allegiance

Invocation

Provided by: Vicky Derksen
NA

Roll Call

Statement of Participation
Anyone wishing to address the Council regarding items listed on the agenda or during Call to the Public must completely fill out a Request to Comment card located in the back of the Council Chambers and hand it to the Town Clerk prior to the start of the meeting. Once the meeting 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. Comments may not exceed three minutes. It is the policy of the Mayor and Council not to comment on items brought forth under "Call to the Public." However, staff can be directed to report back to the Council at a future date or to schedule items raised for a future Council agenda. To avoid disruption of the meeting, to maintain decorum, and provide for an equal and uninterrupted presentation, applause is not permitted, except during Proclamations, Awards, and Recognitions. All meeting participants must maintain proper decorum as specified in Section 6 of the Council Rules of Procedure.

Summary of Current Events by Town Manager

Presentations

PRESENTATION: Public Works Capital Improvement Projects Update FY26
This report provides an update on current Capital Improvement Projects within the Public Works Department, including both ongoing and recently completed efforts.Shea Boulevard Widening – South Side (Palisades Blvd to Fountain Hills Blvd) This project will widen the south side of Shea Boulevard to improve traffic flow, enhance safety, and accommodate future growth. The project is funded through Proposition 400 and supports regional mobility improvements. Funding:FY26 Budget: $3,525,000 Expended: $170,371.35 Available: $3,354,628.65 MAG Grant: $2,100,000 Development Fee Eligible Palomino Boulevard Full Depth Pavement Reconstruction This project involves full-depth reconstruction to address pavement deficiencies and extend the roadway’s service life. Funding:Total Budget: $5,400,000 Construction Bid: $3,176,633.92 Expended: $1,304,057.59 Available: $4,095,942.41 Pedestrian Marked Crosswalks This project enhances pedestrian safety through the installation of high-visibility crosswalks at key locations, including Saguaro Boulevard and Monterey Drive. Funding:Budgeted: $152,900.00 Expended: $140,803.77 Encumbered: $12,096.23 Available: $0 Sidewalk Infill The sidewalk infill program improves pedestrian connectivity by filling gaps in the existing network, including work along Saguaro Boulevard and Monterey Drive. Funding:Budgeted: $325,000.00 Expended: $237,261.66 Encumbered: $54,230.72 Available: $33,507.62 Guardrail Replacement This project replaces outdated or damaged guardrail systems, including improvements along Palisades Boulevard, to meet current safety standards. Funding:Budgeted: $50,000 Expended: $14,261 Encumbered: $29,140 Available: $6,599 Wayfinding Signs The wayfinding signage project enhances navigation for residents and visitors by providing clear and consistent directional signage. Funding:Budgeted: $88,194 Expended: $54,704.31 Encumbered: $33,263.50 Available: $226.19 Golden Eagle Impoundment Area – Phase 2 This project focuses on continued improvements to the Golden Eagle impoundment area to enhance stormwater management and system reliability. Funding:FY26 Budget: $300,000.00 Expended: $291,233.55 Available: $8,766.45 Stormwater Infrastructure Rehabilitation This program addresses aging stormwater infrastructure to improve system performance and reduce flood risk. Funding:Budgeted: $150,360.00 Expended: $150,354.59 Available: $5.41 Downtown Streetscape Improvements – Phase I This project enhances the downtown area through streetscape and infrastructure improvements that support economic vitality and community identity. Funding:Budgeted: $515,000 Expended: $88,529.29 Encumbered: $407,908.40 Available: $18,562.31

PRESENTATION: Public Works Update
The mission of the Public Works Department remains to provide essential services that sustain and enhance the quality of life for the citizens of Fountain Hills in a prompt, professional, courteous, safe, efficient, and cost-effective manner. Through the dedication of our employees, Public Works strives to plan, build, maintain, and operate public infrastructure in a way that respects the environment, preserves assets for future generations, and fulfills the goals established by the Town Council.Public Works continues to implement innovative technologies and processes to improve and maintain the Town’s streets, drainage systems, transportation networks, open spaces, washes, dams, facilities, fleet resources, and solid waste collection, ensuring reliable and high-quality service to the community.This report highlights key activities and significant accomplishments achieved over the past several months, including:Street Department:Pavement maintenance activities Installation of enhanced pavement markings, including 4 miles of new bike lanes Use of advanced technology to safely grind uneven walking surfaces at 42 locations Completion of 138.5 hours of after-hours service calls Ongoing pothole repair efforts Open Space:Continued maintenance and stewardship of open space areas Recycling Programs:Ongoing support and operation of community recycling initiatives Facilities Division:Electric vehicle charging station upgrades HVAC system upgrades Installation of garage doors at Fire Stations 1 and 2 Motor upgrades to the Community Center front door Completion of annual fire alarm and sprinkler inspections While accomplishing these efforts, our team has continually sought opportunities to improve efficiency, reduce costs, and enhance the operation and maintenance of the Town’s infrastructure.We would like to thank the Mayor and Town Council, the Town Manager, and all Town staff for their continued support in delivering high-quality services to the community. Public Works remains a collaborative partner across departments, supporting Town activities and events, and we look forward to another successful year.

Proclamations, Awards, and Recognitions

Consent Agenda
All items listed are considered to be routine, non-controversial matters and will be enacted by one motion and vote 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 as the first item on the Regular Agenda. The remaining items on the Consent Agenda will be enacted by one motion and vote of the Council.

Regular Agenda

PUBLIC HEARING, with CONSIDERATION AND POSSIBLE ACTION: Regarding the REZONE of approximately 20 acres located approximately 600-feet south of the southeast corner of Golden Eagle Blvd. and Nyack Drive (APN 176-21-181) from R1-35 (35,000 sq. ft. lot size minimum) to R1-10A (10,000 sq. ft. lot size minimum) to allow development of 25 single-family residential lots.
BackgroundThe applicant, Toll Brothers, Inc., requests approval to rezone approximately 19.35 acres from R1‑35 (Single‑Family Residential) to R1‑10A (Single‑Family Residential) to allow development of a single‑story, for‑sale residential subdivision totaling 25 lots. The rezoning would permit lot sizes and development standards consistent with the adjacent R1‑10 subdivisions while preserving a significant natural wash located on the western portion of the property.In 2024, the Fountain Hills Unified School District (FHUSD) initiated a public process to evaluate and dispose of two underutilized properties, including the subject parcel. Voters approved the sale in November 2024. FHUSD subsequently selected Toll Brothers as the preferred buyer and entered escrow following required public notice and statutory review. Sale proceeds will be used to support FHUSD’s educational mission.The property has remained vacant and previously served as a potential school site. The applicant notes that a school use would generate significantly more daily traffic than the proposed residential development. A traffic trip comparison prepared for the applicant indicates approximately 310 fewer daily vehicle trips with the proposed single‑family subdivision than with a charter elementary school.Existing ConditionsThe property is vacant and bordered by established single‑family neighborhoods. A large natural wash, approximately 9 acres and nearly half of the site’s total area, traverses the western portion of the parcel. The wash functions as a drainage corridor and wildlife habitat. The applicant proposes to preserve the wash in its natural condition and dedicate an easement to protect its alignment. No homes will be constructed within the wash area.Existing ZoningThe site is zoned R1‑35 (Single‑Family Residential). The applicant states that the existing zoning does not reflect the prevailing lot sizes in the area and does not allow a feasible or context‑appropriate subdivision design given the natural wash and irregular buildable area.Proposed Zoning and Development PlanThe applicant proposes to rezone the property to R1‑10A to establish a residential subdivision that reflects the lot sizes and development patterns of the surrounding R1‑10 neighborhoods while accommodating the site’s unique physical constraints. The R1‑10A District provides the necessary flexibility to design lots around the substantial natural wash that traverses nearly half of the property and is planned to be preserved as open space. Under the proposed plan, all homes would be limited to a single story, despite the district permitting two‑story construction, in order to protect existing views and maintain compatibility with nearby residences. It is important to note that the only substantive distinction between the R1‑10A and R1‑10 zoning designations is maximum lot coverage, with R1‑10A allowing 40 percent coverage compared to the 30 percent permitted in R1‑10, a difference that enables a more efficient and context‑appropriate design for this constrained site.Typical lots would measure approximately 80 feet by 130 feet, with building envelopes of about 60 feet by 80 feet. The project includes the following R1‑10A development standards, which the plan meets:• Front setback: 20 feet• Side setback: 7 feet• Street side setback: 20 feet• Rear setback: 20 feet• Maximum lot coverage: 40%• Minimum lot width: 80 feetApproximately 10 acres remain undisturbed, significantly reducing the developable land area. The resulting density is well below the maximum 4.35 du/ac allowed in the R1‑10A district and comparable to the surrounding neighborhoods.The applicant initially submitted a proposal for 29 lots. Following multiple meetings with adjacent property owners, the applicant revised the plan to reduce the total number of lots to 25. The four removed lots were located in the northeast portion of the site, which is now designated as a 1.25 acre open space tract. This modification was formally presented at the Planning and Zoning Commission meeting on March 9, 2026. The attached applicant narrative reflects the original 29‑lot proposal, and a separate attachment has been provided to depict the revised 25‑lot plan.General Plan Conformance:The property is located within the Neighborhoods Character Area, which supports a range of single‑family lot sizes and infill development. Staff finds the request consistent with the following General Plan goals and policies, as supported by the applicant’s narrative:Economic Development Element• Supports FHUSD through reuse of underutilized school district property.• Facilitates high‑quality residential infill attractive to families and working professionals.Thriving Neighborhoods Element• Maintains compatibility with adjacent R1‑10 neighborhoods through 1‑story homes and appropriate setbacks.• Enhances neighborhood character and protects established views and privacy.• Provides safe, quality housing and connectivity to nearby services.Character Areas & Great Places• Utilizes an infill site with existing infrastructure.• Preserves natural washes as buffers and integrates the wash into site design as an amenity.Natural Resources / Open Space• Protects the natural wash as permanent open space, consistent with Town policy.Citizen ParticipationThe applicant’s Citizen Participation Plan describes how Toll Brothers notified and engaged surrounding property owners, homeowners’ associations, and other interested parties regarding the proposed rezoning from R1‑35 to R1‑10A. Affected property owners within 300 feet, as well as agencies identified by Maricopa County, were sent mailed notice of a neighborhood meeting on January 20, 2026, during which the applicant presented the project and answered questions. Furthermore, the property was posted with a public notice sign on February 20. Both the neighborhood meeting and sign postings were done well prior to the minimum of 15 days required by the Town.The Citizen Participation Report describes the applicant’s outreach efforts for the proposed rezoning of the Aspen Drive property, including mailed notices to property owners within and slightly beyond the required 300‑foot radius, distribution of materials to interested parties, and posting of two on‑site signs as required by Town regulations. A neighborhood meeting was held on January 20, 2026, using an open‑house format followed by a group Q&A session at residents’ request, with approximately 65 attendees participating. Throughout the process, the applicant and its representatives engaged in follow‑up conversations with nearby residents (both before and after the meeting) to address questions related to density, subdivision design, traffic, drainage, wildlife, and view impacts, as well as to clarify commitments such as single‑story homes and preservation of the on‑site wash. Several residents expressed concerns about the proposed development, while others voiced support for aspects such as the project’s single‑story design, wash preservation, and consistency with surrounding lot sizes. The report concludes that the applicant exceeded the Town’s participation requirements by providing additional outreach, follow‑up meetings, and ongoing communication with both neighbors and Town staff.In the week leading up to the meeting, a resident submitted a petition containing 123 signatures protesting against the rezone request. Three additional respondents opposed the Toll Brothers proposal but indicated they were open to a rezoning. The Town also received six letters of support. At the Commission meeting, eight individuals submitted speaker cards in support of the rezone request, and seven submitted cards in opposition, although not all who completed speaker cards ultimately spoke.Under Section 2.01(F) of the Fountain Hills Zoning Ordinance, a rezoning request may require a super majority vote by the Town Council if certain protest conditions are met. When written protests are filed by the owners of 20 percent or more of the property (in number of lots and area) within the defined zoning area, which includes the subject site and all properties within 150 feet of its boundaries, the rezoning cannot be approved by a simple majority. Instead, the ordinance requires an affirmative vote of at least three fourths of all members of the Town Council for the rezoning to take effect. To be valid, written protests must be signed by the property owners. Based on a review of the petition and the locations of the property owners who signed it, the minimum threshold for requiring a super majority vote has not been met by the protests filed to date. Therefore, only a simple majority vote will be required for approval of the rezoning request.AnalysisThe proposed rezoning preserves the single‑family residential use already permitted on the property while introducing lot sizes and architectural standards compatible with the surrounding neighborhood. The development approach reflects sensitivity to the site’s natural features by preserving the existing wash and designing the subdivision in a manner that respects environmental and topographical constraints. These preservation efforts necessarily concentrate the dwelling units on the eastern portion of the site while keeping the proposed gross density at approximately 1.29 du/acre. The preservation of the wash, combined with the applicant’s commitment to single‑story homes, helps protect existing views and ensures a visually harmonious transition to adjacent residences. The project also offers needed housing options and generates fewer potential traffic impacts compared to the school district’s prior consideration of a new school on the site. Additionally, the redevelopment of former school district property supports broader community objectives by enabling reinvestment in local educational facilities, benefiting both the surrounding neighborhood and the Town as a whole.

PUBLIC HEARING, with CONSIDERATION AND POSSIBLE ACTION: Relating to Ordinance 26-02, amending Zoning Ordinance Chapter 27, Downtown Overlay, Section 27.02 A. regarding permitted density for residential development.
At the September 4, 2024, Town Council meeting, the Council adopted Resolution 2024-28 Approving the Downtown Strategy.  This strategy was developed as part of the Council-directed staff effort to implement the 2023 Community Economic Development Strategy and was the culmination of a year's worth of public input.  Staff held six focus group meetings with residents and businesses, conducted four electronic surveys and a public open house. Based on the feedback received, the Downtown Strategy focuses on four focus areas:Land UseInfrastructureEconomic VitalityPublic Spaces/PlacemakingFollowing Council adoption of the Downtown Strategy, staff began actively taking steps to implement the strategy approved by the Council.  Design work has commenced on the infrastructure and construction will begin later this year.  Placemaking elements such as the utility box murals have expanded and attracted positive comments.  Staff are working with a number of property owners and developers considering projects in the downtown.One of the approved implementation steps was to review the existing zoning for the downtown area and recommend modifications to achieve the goals and recommendations contained in the strategy.  Based on this review, staff drafted, the Planning and Zoning Commission reviewed and recommended, and Council adopted Ordinance 25-02, Downtown Overlay District.This new overlay district was approved to replace the two existing overlay districts in the downtown area and put the tools in place to achieve the desired mix of uses for the downtown area.  To achieve the goals of the Council's adopted Strategy, the new downtown overlay district includes:Provisions that direct active retail and entertainment uses to The Avenue;Maintains the primary non-residential focus of this commercial area;Removes a roadblock to development by reducing the requirement for Special Use Permits for low-density residential development; Expands the uses allowed in the Innovation District to encourage employment uses; and,Provides for temporary uses of vacant properties.Following adoption of the new overlay district, staff initiated the process of rezoning the downtown area to remove the existing overlays and apply the new overlay district.  This rezoning action was recommended for approval by the Planning and Zoning Commission at their regular meeting on November 10, 2025.  The Town Council held a public hearing on December 18, 2025, for the rezoning.  At that meeting, a few residents expressed concern about the provision overlay district that allows up to 35 dwelling units per acre by right on the upper floors of buildings in the Avenue and Business Districts.  Based on those concerns, the Council requested that the Planning and Zoning Commission review the ordinance and consider possibly lowering this density.Over the years, staff have had multiple discussions with downtown property owners and individuals interested in developing in the downtown area.  Most of those discussions have involved the desire for mixed-use buildings to make the projects financially viable.  The property owners and developers staff have talked to believe there is not a strong market for additional commercial uses and activity in the downtown area.  To make projects work, it is necessary to add a residential, mixed-use component.  Because of the uncertainty and cost associated with processing a Special Use Permit, many property owners have not proceeded with development projects.A goal of the new overlay is to remove an unnecessary hurdle to development by raising the level of residential density allowed by right.  With the Town's development regulations, it is important to make the desired development the easy option.  By raising the density, any density up to the minimum level becomes easy.  If it stays at 8 or is raised to just 15 units per acre, every development will need a Special Use Permit.  Once the SUP is required, the developer may as well ask for 40 or 50 units per acre.The discussion by the Planning Commissioners highlighted the point that the density contained in the ordinance is just for the platted lots.  Most multi-residential developments will include open space and parking as part of the density calculation.  Based on this realization, allowing a density of up to 45 units per acre would result in an overall density for an entire block around 20 units per acre if every lot were developed at the maximum allowed.  Based on the previous staff analysis, it would be good to add 400-550 additional dwelling units within the downtown area. At least 300 of these should be in Plat 208. The possible number of units that could be added to the area by density allowance are shown in this table.Dwelling Units/Acre# Units All Lots# Units Vacant LotsDensity for Entire Block15294886.72546814910.435662208154592026720.9When averaged over the entire block, as is typical for calculating residential density, the 35 units per acre for a lot, equals out to the 15 units per acre for the entire block.  Some members of Council suggested 15 units per acre as an appropriate density before sending this back to the Planning and Zoning Commission.  Several projects have been approved in the downtown area with densities in excess of 45 units per acre.The Planning and Zoning Commission reviewed Ordinance 26-02 at a public hearing on January 12, 2026, and followed up with additional discussion at their meeting on March 9, 2026.  The Commission members were unable to focus their discussion strictly on the question of density and ended up not recommending approval of the ordinance as drafted and recommended by staff.  A couple of citizens spoke to the Commission and expressed the following concerns:Sales tax dollars will be minimized because most of the renters will be seasonal.  At this point, we do not know if the multifamily units will be apartments or condominiums.  Based on a recent review of residents in larger complexes in the downtown area, over 90% of the residents are year-round residents.Having the residential units will thwart the establishment of the downtown "fun zone."  The main concern is that residents will not want to live above active restaurant and entertainment uses.  Given that the primary "fun zone" area will be along the Avenue and that area is already built, it is unlikely there will be second story residential in this area.  Further, anyone moving into a dwelling above an active commercial use will do so know those conditions.We need goals for the downtown area.  There is a vision and a goal established in the Downtown Strategy that Council approved and staff is working to implement.  The established vision includes increasing the resident population in the downtown area to increase the general vibrancy of the area, providing places for people who want to live and work downtown, and increasing the customer base for businesses.Pros and Cons of a Special Use Permit (SUP)SUP's are used to allow consideration of uses that might not always be appropriate in a given zoning district.SUP's give the public and council the opportunity to review a specific situation and place conditions on approval.SUP's slow down the development process.SUP's can discourage development due to the time, cost, and uncertainty associated with the review and approval.SUP's can and should be used in a manner that will encourage and facilitate the desired development.Summary of this IssueThe ONLY ISSUE before the Council is what density of residential development is allowed by right within the overlay.The ordinance DOES NOT allow first floor residential in the Avenue District.The ordinance REQUIRES an SUP for first floor residential in the Business District.Plat 208 ownership will NOT allow development of the common property.The Council approved strategies for the improvement of downtown includes increasing residential development in the area.Any development with a residential component with a density above that set by right will REQUIRE Council approval.  It is important that this density be set at a level that will encourage development.Calculations show around 300 dwelling units should be added in Plat 208.A density of 45 units per acre would be consistent with other development in the downtown, set a level that encourages development, and meets the target for residential development in the downtown.

PUBLIC HEARING, with CONSIDERATION AND POSSIBLE ACTION: Relating to Ordinance 26-08, rezoning the area bounded by La Montana Dr., Saguaro Boulevard, and Avenue of the Fountains, to adopt the Downtown Overly District and to remove the existing Entertainment and Planned Shopping Plaza Overlay Districts to the area bounded by La Montana Drive, Palisades Boulevard, Saguaro Boulevard, and Avenue of the Fountains.
On September 2, 2025, the Town Council approved the new Downtown Overlay District.  Following the approval of this new zoning overlay, staff began the process of rezoning the area to apply the new zoning district to the designated area.  This proposed rezoning will remove the two existing overlays in the area bounded by La Montana, Palisades, Saguaro, and Avenue of the Fountains and apply the new Downtown Overlay as approved by Council to the area bounded by La Montana, Saguaro, and Avenue of the Fountains.Staff have processed this rezoning in the same manner as any other rezoning application.  The steps have included:Creating a Citizen Participation Plan.  The Plan involved sending a letter to all property owners within the overlay area them of the rezoning process.  Information was also posted on the Town's website, including a link to the new ordinance.  As a result of the Citizen Participation notice sent to all property owners, staff received an email asking questions about some specifics of the new ordinance and restricting residential use of the ground floor in the Avenue District.  There were no comments or questions about the actual rezoning, removing the existing overlays and replacing them with the new overlay.Providing notice of the public hearing.  Notices were mailed to all property owners in the area and within 300' of the area and signs were posted throughout the area on October 21, 2025. A notice has also been published in the newspaper on October 22 and 29, 2025.  Each of these notices describe the action being proposed and provides the dates and times for the rezoning hearings that will be held by the Planning and Zoning Commission and the Town Council.As a result of the public notice which was sent, staff have received several emails and phone calls requesting additional information.These came primarily from residents north of La Montana.  Staff have responded to the calls and emails and explained the change.  Most of the residents' concerns have been satisfied.  Some are concerned the increased employment use opportunity might spur new buildings in the area south of La Montana and those new buildings would be built at the maximum allowed height of 40 feet and block their views.  It should be understood, the 40' building height is in the base C-2 zoning district which applies today and is not changed with the overlay.  One property owner within the area raised a concern about the new overlay establishing a built-to line.The new overlay district was drafted and approved based on the goals of the new Downtown Strategic Plan to bring increased residential density, additional employment opportunities, and entertainment activities to the downtown area.  The issue before the Commission at this time is not about any of the provisions contained within the new overlay district.  The issue is whether or not to remove the existing overlays and replace them with the newly adopted overlay district.  The new district implements the goals for the area by increasing the allowed residential density by right from 8 units per acre, adds employment options for the area north of Palisades, and facilitating active uses along the Avenue over time.The Town Council held a public hearing to consider this rezoning action on December 16, 2025.  At that meeting, several residents expressed concerns with the residential density provided in the overlay.  Following discussion, the Council voted to return the overlay district ordinance to the Planning and Zoning Commission for consideration of amending the allowed density.  A separate item is on the Council agenda to consider and approve any amendments to the overlay district.  Adopting this rezoning will adopt the overlay district as amended by the Council.

CONSIDERATION AND POSSIBLE ACTION: Related to any item included in the Arizona Cities and ​Town's Weekly Legislative Bulletin or relating to ​any action proposed or pending before the State ​Legislature.

Call to the Public
Pursuant to A.R.S. §38-431.01, or as prescribed by state law.

Council Discussion/Direction to the Town Manager
Members of the Council may (1) request the Town Manager follow-up on matters raised at that meeting; (2) request one two-minute response to directed criticism raised any portion of the meeting; (3) a consensus of the Council may request the Town Manager to research a matter and report back to the Council.

Future Agenda Items

Adjournment