In a discussion late last year, Vice Mayor David Spelich asked town staff to calculate the dollar value of annual rental fee waivers granted to various organizations for use of town facilities. The answer of “more than $200,000 in 2019” prompted staff to review its policies and propose changes that were presented to the Town Council on Jan. 19.

The discussion last week was for information and input by the council and there was no action taken. Town Manager Grady Miller said it may take additional discussion before policy changes are ready for council consideration.

Currently there is a single town policy that directs waiver consideration along with sponsorships and naming rights. Staff is proposing the single policy be divided into three separate programs: Sponsorships, Naming Rights and Fee Waivers.

In a staff report to the council, Community Services Director Rachael Goodwin stated the existing policy established an original set of criteria for fee waivers, sponsorships and co-sponsorships as it relates to special events.

“This effort was to help identify who would be eligible for such fee waivers and reductions and what parameters must be met,” Goodwin said. “The policy, however, lacks specific guidance on how to ensure accountability and a system of check and balance to allow both the town and the event organizers transparency of responsibility. It offers minimal guidance on the limitations of sponsorship scope.”

In 2016 an amendment was adopted to the policy in an effort to help the town attract additional events. Within that amendment, the concept of “Legacy Events” was established. That category has included the two Chamber of Commerce art fairs, Oktoberfest and St. Patrick’s Day events. Goodwin is proposing the Legacy category be eliminated and individual agreements be established with event organizers.

In an email comment to the council that was read at the meeting, Chamber of Commerce President/CEO Betsy LaVoie made a plea to maintain the Legacy category and asked for an opportunity to make a presentation to the council regarding the events.

“Fee waivers have increased over time and have significant value,” Goodwin said. “Policy parameters should be considered to curb unintentional scope creep.”

She cited here the example of the Fountain Hills Civic and Cultural Association (FHCCA). The organization has 14 affiliated groups that use meeting rooms on a regular basis and the ball room for special events and activities. The town waived all fees for FHCCA associated groups and activities, totaling more than $10,000.

Goodwin said operating agreements are one such option to address some organizations. She said the town currently uses such an agreement with the Boys & Girls Club of Greater Scottsdale to facilitate flag football and basketball leagues. This is a tool that the town could use in working with the Fountain Hills Soccer League and Little League.

Also, intergovernmental agreements are common tools in working between agencies. The town currently has IGAs with the Fountain Hills Unified School District for its use of facilities in Golden Eagle Park. In turn, the town has occasion to use district facilities. The town’s IGA with the Sanitary District is significant in providing treated effluent for park irrigation water.

Naming rights are another policy staff is reviewing. The town has named a number of facilities in honor of significant leaders of the town, including plazas on the Avenue of the Fountains for late mayors Sharon Morgan and Wally Nichols. The civic plaza surrounding Town Hall, the Community Center and library is named in honor of the town’s first mayor, John Cutillo. These were all named following the guidelines of the existing policy.

There is also the potential for corporate naming of facilities.

Renaming streets in honor of individuals presents challenges with U.S. Postal Service as well as existing residential and business addresses. The town has two streets named for town leaders, Paul Nordin Parkway in honor of the town’s first town manager, and Keith McMahan Drive for a former council member and early town leader. Postal and address conflicts were not an issue in either of those instances.

Spelich said he was quite alarmed when he saw the waiver value.

“That’s a lot of money, we are leaving dollars on the table,” Spelich said.

He also noted a situation where a concession stand used for Little League at a town park was unavailable for Senior Softball tournaments. He believes such an amenity should be available to any group wanting to use it for their event.

“We need to focus on making things fair and equitable,” he added.

Spelich also asked that any waiver that exceeds $5,000 be subject to council approval.