Council approves phase of Shea Boulevard widening after debate over town share
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Summary
The Fountain Hills Town Council voted 6–1 to proceed with the current phase of the Shea Boulevard widening and authorized budget transfers to cover an estimated $525,000 shortfall; Maricopa Association of Governments will reimburse a share later, staff said.
The Fountain Hills Town Council voted 6–1 to proceed with the current phase of the Shea Boulevard widening and to authorize budget transfers to cover a roughly $525,000 shortfall needed to start construction.
The project covers the eastbound segment of Shea Boulevard between Palisades Boulevard and Fountain Hills Boulevard. Street superintendent Jeff Pierce told the council bids came in well below earlier engineer estimates but that the selected bid plus necessary construction services leave a near-term funding gap. Pierce said the town budgeted approximately $3,000,000 in the FY26 budget for the work and requested authority to transfer funds to begin the phase now.
Mayor Friedel and other council members said the project addresses safety and long-standing traffic needs. Councilmember questions focused on how the project will be funded and whether the town would be reimbursed. Public Works Director Weldy said the Maricopa Association of Governments (MAG) will ultimately cover about 70% of eligible costs but that the MAG reimbursement is not expected until about 2030, so Fountain Hills must advance its share now. Weldy and staff said the town intends to use streets impact fees for most of its share.
Vice Mayor Skilicorn opposed the action, arguing the widening primarily benefits commuters from the Valley rather than Fountain Hills residents. He said, in part, “this really isn't for Fountain Hills residents. This is for people that live in the Valley,” and objected to the town paying a large portion of the project costs. Other council members said community-safety and congestion concerns justified moving forward.
Councilmember Earl, Larrabee, Calavianakis, McMahon and Watts voted in favor; Vice Mayor Skilicorn voted no; Mayor Friedel voted in favor. The roll-call tally recorded six ayes and one no. With the vote, staff will finalize short-term funding arrangements, hold additional meetings with the selected contractor and bring schedule and traffic-control plans back to the council as work proceeds.
Background: Weldy said earlier cost estimates for related work on Palomino Boulevard have decreased from about $6,000,000 to just over $3,000,000, and that the Shea project was bid through MAG with multiple bidders. Staff noted that some bids in the procurement ranged up to multimillion-dollar differences, and that contingency and change-order exposure will continue to be monitored during contractor coordination.
The council approved the motion to proceed at the meeting and the project will move into contractor coordination and scheduling with further updates to the council expected in early 2026.
