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HomeMy WebLinkAbout2012 08.07 City Council Regular Agenda PLEASE FILL OUT A"REO+++<ST TO SPEAK"FORM IF YOU WISH TO ADDI9AGS THE COUNCIL AT CALL TO THE PUBLIC OR ON ANY NON-PUBLIC HEARIN, EM 414 o r City of Apache Junction 0 Home of the krrl 8r.s/Ittof rtlm:lams rzot' APACHE JUNCTION CITY COUNCIL CITY COUNCIL CHAMBERS 300 EAST SUPERSTITION BOULEVARD — APACHE JUNCTION,ARIZONA 85219 REGULAR MEETING AGENDA August 7, 2012 7:00 PM A. CALL TO ORDER. B INVOCATION AND PLEDGE OF ALLEGIANCE. C. ROLL CALL. D. CONSENT AGENDA. The Council may,at this time,take single action on any or all items listed as consent agenda items.These items may include, but are not limited to, acceptance of agenda,acceptance of minutes,appointments,acceptance of resignations and adoption of certain resolutions and other items which do not require a public hearing The Consent Agenda is a timesaving device of which the Mayor and City Council is to receive documentation on these items from the City Manager for their review prior to the meeting Any member of the Council may remove any item from the Consent Agenda for discussion and cause a separate'ote on the matter later in the agenda 1. Acceptance of Agenda. 2 Approval of Minutes of Regular Meeting of July 17, 2012. 3 Consideration of Resolution No. 12-24 authorizing the execution of a Grant Pass Through Agreement between the City of Apache Junction and East Valley Adult Resources for the distribution of$45,000 in grant funds from the Gila River Indian Community. In 2011,the city sponsored the East Valley Adult Resources'(EVAR)grant application to the Gila River Indian Community.The application requested$45,000 for the transportation program at the city's Active Adult Center EVAR was recently notified that its application has been approved for funding The city has received the check and must disperse the funds to EVAR Before the funds can be dispersed,the city council must adopt a resolution authorizing the execution of a Grant Pass Through Agreement between the city and EVAR If adopted, Resolution No 12-24 would authorize that agreement to be executed 4. Consideration of Professional Services Agreement for Economic Development with Apache Junction Chamber of Commerce. This proposed 3-year extension of the Professional Services Agreement provides for Visitor Center Services in the amount of $36,000 00 per year and adds city funding for the Visit Sunny AZ Marketing Consortium in the amount of$5,000 00 per year This item was discussed at the June 18 work session and again at the July 3 council meeting. E AWARDS, PRESENTATIONS AND PROCLAMATIONS. Awards, presentations from other organizations, proclamations issued by the mayor,and acknowledgement of distinguished guests and visitors,and staff presentation of receipt of grant or donated funds are permitted at this time None F. ANNOUNCEMENT OF CURRENT EVENTS. The Mayor or any member of Council may at this time present a brief summary of current events However, no discussion shall take place on such items except for clarifying comments related to substance,time and location G CITY MANAGER'S REPORT. The City Manager, members of City staff c ise individuals designated by the Manager may F nt information pertinent to items under consideration or information related to the operation of the City There shall however be no discussion at this time except for clarification inquiries 5 MANAGER'S REPORT. H. PUBLIC HEARINGS. Public hearings required by applicable law shall be conducted by the Council and any person shall be given the opportunity to speak All remarks shall be addressed to the Council as a whole and not to any member thereof.Such remarks shall be limited to five(5)minutes unless additional time is granted by the Mayor This time limitation shall not apply to applicants and their agents appearing before the Council. None. OLD BUSINESS. The Council shall consider any business that has been previously considered and which is still unfinished to include those items previously postponed or tabled No member of the public shall be permitted to speak on these items unless invited to do so by the Mayor after first submitting a written request-to-speak form with the City Clerk. None. NEW BUSINESS. The Council shall consider any business not yet considered No member of the public shall be permitted to speak on these items unless invited to do so by the Mayor after first submitting a written request-to-speak form with the City Clerk 6. PRESENTATION AND DISCUSSION ON THE FISCAL YEAR (FY) 2012-2013 LEGISLATIVE WORK PLAN. At the beginning of each fiscal year the city council adopts a legislative work plan. The legislative work plan identifies priority and focus items that may require legislative action by the council Staff will present details of the draft FY 2012-2013 Legislative Work Plan. K. COUNCIL DIRECTION TO STAFF. This item allows the Mayor and City Council to direct staff on specifically listed matters None L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES: 7. EXECUTIVE SESSION AT 5.45 P.M. AND WORK SESSION AT 7.00 P M FOR MONDAY, AUGUST 20, 2012. 8. EXECUTIVE SESSION AT 5:45 P.M. FOR TUESDAY, AUGUST 21, 2012. OTHER MEETINGS IF NECESSARY M CALL TO PUBLIC. At this time the public has the privilege to address the Council with requests,communications,comments or suggestions relating to City business that are not listed on the agenda All speakers must have already submitted a written"Request to Speak"form to the City Clerk no later than the conclusion of the City Manager's Report portion of the agenda If there is a group speaking on the same item,they should select a spokesperson All such remarks shall be addressed to the Council as a whole and not to any member thereof.The Mayor is authorized to ask a speaker to stop speaking and leave the podium or to adjourn the meeting if anyone becomes disorderly,uncivil, makes personal attacks or continues to speak about items that are not within the jurisdiction of the city after being warned such issues are beyond the jurisdiction of the city to act.The Council may not answer questions of the speaker,discuss the matter with one another, but may, at the conclusion 1) respond to criticism by a speaker,2) ask the City Manager to review a matter,3) ask the City Manager to place the matter on a future agenda Each speaker must approach the podium,speak into the microphone,provide their name and address There is a three(3) minute time limit per speaker. N. ADJOURNMENT. Copies of this agenda and additional information regarding any of the items listed above may be obtained from the City Clerk's office. 300 East Superstition Boulevard,Apache Junction, AZ Monday through Thursdays, 7 00a—6.00p, excluding holidays If any person with a disability needs any type of accommodation,please notify the Human Resources Office,at (480)474-2617 or(480)983-0095(TDD)at least 72 hours prior to the scheduled time CITY COUNCIL REGULAR MEETING JULY 17, 2012 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on July 17, 2012, at the Apache Junction City Council Chambers pursuant to the notice Amok required by law. CALL TO ORDER Vice Mayor Dietz called the meeting to order at 7 : 00 p m. INVOCATION Councilmember Wilson gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Serdy led the Pledge of Allegiance. ROLL CALL Councilmembers Present : Vice Mayor Dietz Councilmember Barker Councilmember Evans Councilmember Serdy Councilmember Waldron Councilmember Wilson (Mayor Insalaco was absent . ) Staff Present : Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Development Services Director Brad Steinke Assistant to the City Manager Matt Busby Others Present : Public Works Manager Shane Kiesow Captain Arnold Freeman REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 1 OF 24 ACCEPTANCE OF CONSENT AGENDA : ) Councilmember Waldron MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous . em The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS Vice Mayor Dietz presented Republic Services with a Community Partnership Award for sponsoring the fireworks show for the Fourth of July for the past three years . Vice Mayor Dietz read a proclamation designating August as Drowning Impact Awareness Month and presented it to Tina Gerola of the fire district ANNOUNCEMENT OF CURRENT EVENTS Councilmember Serdy announced he attended the Governor' s Conference on Tourism last week. Gary Mulholland was posthumously awarded the Spirit of Service Award for his many years of dedication for promoting Lost Dutchman Days and the rodeo. He hopes to be able to play the video they showed at the next council meeting and there is a movement underway to name the rodeo grounds after him. Councilmember Wilson thanked everyone involved for the great fireworks display on the Fourth of July. Councilmember Barker announced they celebrated the opening of a new fire station. CITY MANAGER' S REPORT Assistant City Manager Bryant Powell commented on the statewide recognition of Gary Mulholland, the city recycling services, read two letters on the Fourth of July fireworks, and recognized public works fleet employees and street crews for their work. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 2 OF 24 PUBLIC HEARINGS BINGO LICENSE FOR BPO ELKS #2349 ) City Clerk Kathleen Connelly briefed the council on the item. Vice Mayor Dietz requested the applicant address the council . I\ Ms . Cindy Pierson, representing the Elks Lodge, addressed the council to answer any questions . Bingo will be on Sunday in the afternoon Vice Mayor Dietz opened the public hearing on the item. There being no one wishing to speak, he closed the public hearing. He reopened the item to council discussion. There being no further discussion, he called for a motion. Councilmember Barker MOVED THAT THE BINGO APPLICATION FOR BPO ELKS #2349 BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF REVENUE, BINGO SECTION. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous . The motion carried. ORDINANCE NO. 1381, REPEALING, AMENDING AND READOPTING SECTIONS 1-16-19-C, 1-16-19-D AND 1-16-19-E ACCESSORY BUILDINGS AND STORAGE SHEDS REGARDING HEIGHT, SIZE, LOCATION AND DESIGN REQUIREMENTS FOR ACCESSORY BUILDINGS ) Councilmember Evans stated she would have to recuse herself. Development Services Director Brad Steinke briefed the council on the item. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 3 OF 24 Vice Mayor Dietz thanked Development Services Director Brad Steinke for the work he had done on this . He added this issue was brought to the council by the residents . It is something they wanted to do. There were two sides to this issue. They got together and worked cordially to come up with a solution. He is proud of the residents of the community working together to come to a solution. Development Services Director Brad Steinke asked for a show of hands from those that worked on the issue Vice Mayor Dietz opened the public hearing on the item. Pinal County Supervisor Clark Smithson, 1700 S . Weaver Drive, Apache Junction, addressed the council as a private citizen He feels the same as Vice Mayor Dietz . He is pleased that neighbors got together to reach an agreement . Vice Mayor Dietz closed the public hearing with no one else wishing to speak. He reopened the item to council discussion. Councilmember Wilson commented he wanted to say a special thanks to both groups of individuals who participated on this . It really shows that when they can sit down and discuss things, come to a mutual understanding between the differences of opinion, they can reach that. He is excited they were able to do this instead of sitting and arguing over one word here or there. They discussed it and came up with an agreement . Councilmembers Waldron and Barker agreed. Vice Mayor Dietz closed the discussion with no further comments and called for a motion. Councilmember Waldron MOVED THAT ORDINANCE NO. 1381 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 4 OF 24 Councilmember Barker SECONDED THE MOTION. VOTE: Unanimous . The motion carried City Clerk Kathleen Connelly read the ordinance by title only. Councilmember Waldron MOVED THAT ORDINANCE NO. 1381, AS READ BY THE CITY CLERK, BE APPROVED. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous The motion carried. Councilmember Evans returned to the chambers and took her seat . OLD BUSINESS POWER PURCHASE AGREEMENT FOR SOLAR FACILITIES WITH SIEMENS INDUSTRIES ) Public Works Manager Shane Kiesow briefed the council on the item. Councilmember Barker asked if /'\ the two trees at parks and recreation will stay. Public Works Manager Shane Kiesow stated he believes they will. The shadow they cast will not be impacting it at the prime time of the day. Mr. Grant Wood, ro ect P 7 manager, stated the two large pine trees are about 30 years old. They are at the end of their life. They need to evaluate whether they want to keep them or not. There is some shading to the structures. It is something they will have to decide on the impact they really do have. They will do some hour by hour REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 5 OF 24 modeling and by season to see what effect they have . They might be able to trim them back. Public Works Manager Shane Kiesow continued with his briefing. Vice Mayor Dietz thanked Siemens for taking the time to come out and explain a lot of things. They really worked with our staff. He also thanked staff for their work. He commented the council did not really have enough time to go through everything to get everything done He appreciated their coming out early today to work with staff. Councilmember Serdy commented he wanted to thank Shane for his help in this process. He has a lot of work to do in the city and this extra work was dumped in his lap. He thanked him for his guidance and objectivity. Public Works Manager Shane Kiesow introduced Sean Navizi, sales manager, Grant Wood, the project manager, Andy Beggs who works in the background of the project and Clark Wiedetz from Georgia. He added Siemens has made some concessions with their draft dated 7/12/12 . Vice Mayor Dietz asked if they could title the new things that they have given the council today. City Attorney Joel Stern stated there are two. One is dated 7/12/12 which is the original agreement. There is the new version that has some e1 changes dated 7/17/12 . Vice Mayor Dietz commented it could be titled, basically, the changes dated 7/17/12 . City Attorney Joel Stern stated there are also changes from 7/12/12 . Mr. Clark Wiedetz commented they would have to agree with the council on city staff. They have been working with them for months and it has been a REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 6 OF 24 pleasure putting it together. They are making every effort to provide the city with the best solar project possible. They are not building a merchant plant here. It will not be a plant where once it is built they can change the price of power that they sell in order to maximize the profit. The plant is being built for the city and is structured in this way purely for the sake of taking advantage if the Siemens' tax appetite in order to monetize the tax credits to minimize the city' s price for kWh. That is the reason for the structure of the deal. To add additional complexity to it, Salt River Project has done that to us by the way they have structured it . It has made it even more complex. It was very difficult for even them to understand. With all the PPAs they have done across the country, they have not seen one structured this way. They get the highest incentive from Salt River Project. When they applied for that highest incentive it was gone in 20 minutes . They had to have their act together in order to get that highest incentive. Councilmember Barker asked if the drop in kilowatt hours and AC solar photovoltaic in the current version impacts the tables A and D Mr. Clark Wiedetz stated on pages 30 through 36 there is Schedule 2 which is default termination value per month for every month of the 24 months. Councilmember Barker stated that is correct. She asked if that is impacted by this drop in numbers Mr. Clark Wiedetz stated it PIN is . They adjusted the project size per Councilmember Evans' inquiries . They spoke last night about the importance of making sure that theyk fit within the auspices of Salt River Project' s metering program. The size is in flux right now. Their best estimation is that the Salt River Project board will vote on a maximum per net meter size of 200 kilowatt alternating current. Because of that there have been some changes in the size of the system. The numbers they see in Schedule 2 today are for the previous project size. These numbers will come down. They informed Mr. Stern that they have yet to deliver to him revised numbers. These numbers will all be revised down. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 7 OF 24 Mr. Grant Wood stated they decided today that the number that was in the original draft of 7/12/12 would not be the number they would be at once Salt River Project does its review. They want to give the council the number that is closer to it They do not know if this will be the final number either but they feel it is closer to it. They do not want to mislead anybody. They took a chance on being more confusing but they do not want to mislead. The termination schedule will go down commensurate with the reduction of power. They will have that tomorrow. They could not get that schedule out today. Councilmember Barker commented this is then a plant size thing or the diffusion size. She is trying to get an idea as to what this is . Mr. Grant Wood stated it has to do with the amount of net metering that Salt River Project will allow them to put on as a system. The amount of metering maximizes the economics . If it goes above that, it actually hurts the economics . They are trying to maximize it . They went to Salt River Project and stated they were going to put this in their design for July 31 and asked Salt River Project what would happen if it changes . Salt River Project stated they would just have to give them an amendment and everything would pass very quickly. They were concerned about that . It has to do with how they have structured it . Normally when they are presenting to council they say here is the final size and here is exactly what it looks like, but Salt River Project has them under the gun with the July 31 date. Councilmember Waldron commented he had a question on the insurance. He believes the biggest thing they have had is with the insurance part of it He asked if they would mind being named as a primary insurer on this stuff. They would be primary and the city would be secondary. Mr. Grant Wood asked what he meant by being named as a primary insurer. Councilmember Waldron asked the city attorney to explain it a little better. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 8 OF 24 City Attorney Joel Stern stated if there is a catastrophic event, it is basically whose insurance is going to cover first . That is what they are getting at . For example, if there is a one million dollar loss, and say that is theoretically our coverage, he asked who would cover the rest . If it is a two million dollar loss, and the city' s covered for one million, he asked whose insurance company would cover that . He asked if they would look at the city if the city had already paid one million. If there is other insurance by Siemens, then their coverage would be secondary. The question is which insurance provider is maxed out first . Mr. Grant Wood stated currently the way it is structured is cross indemnification with regards to what happens . They made three key changes from yesterday to today which he is sure they discussed at the previous meeting. They basically take away the system loss piece from the city. That eliminated $8, 000 . The way that it is structured with cross indemnification, the reason behind that is that they are unable to, in essence, protect their asset on city property. If it was a ground-mounted system in a field, they could put a fence around it and security cameras up. They could take a larger responsibility. This is on city property and they obviously cannot put a fence up because it is a parking lot . Therefore they cannot do that They are asking the city, with regards to insurance, to take that risk via the city property insurance and they keep the cross indemnification. He does not know how else to structure the insurance provision. They had a lot of conversations about it today. He does not know how else to structure it then the way it was presented tonight . Councilmember Barker commented that is the party of the party who goes to the party who goes to the party who is invited from the party. That is the language. Vice Mayor Dietz commented of a party and there is no cover charge at the party. Councilmember Barker stated there is a cover charge . REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 9 OF 24 Mr. Grant Wood commented it was that confusing. Councilmember Barker stated it was pretty interesting to read. Councilmember Waldron asked him to explain this because it is very confusing. He read "In such events, the nonpurchasing party shall promptly upon demand, ,p therefore, from other party, reimburse purchasing party for the full cost and expense of any such insurance that is obtained by purchasing party" . That is 8 . 2D. Vice Mayor Dietz commented it seems as though we have gotten away from seller and customer and have gone to party. Mr. Grant Wood commented he does not know why that happened. That clause was put in there as protection for both. If either one did not have insurance for this site, or they did not carry the proper insurance, then it could cause the city some significant problems if an occurrence happened. The city would have the right to go out and purchase in lieu of that in that situation and then charge Siemens back if they did not have it covered. In the same manner, they make that reciprocating language. That is what this is referring to. If the city does not have the insurance, Siemens would be able to go out and back stop it themselves . That is why it was added in there and they tried to make it reciprocal. He asked if that was better. Councilmember Waldron stated it was . He added they should have said it that way in the agreement . Mr. Grant Wood stated he is not an attorney so he would look to Mr. Stern for clarification. He cannot legitimately tell you he knows the definition of this His impression of this language and the switch from the words customer and seller to parties, because it is a term, party can represent either one. In other words, the use of the word party in replace of the word customer and in replace of the word seller is simply to say it could be either. He asked Mr. Stern REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 10 OF 24 if that was an accurate representation from the legal terminology standpoint or has he misunderstood it . City Attorney Joel Stern commented he did not write this and he is not sure who did. He thinks one of Siemens' attorneys did. It is legal and he thinks the general concept of what both of them said is what it does . If there is not sufficient coverage then the party that needs Aft. the coverage can go buy it and then there can be a charge back if it is not in the policy for that particular loss . He does not know how long that would take to figure out whether the policy covered it; it could take a while. He thinks that is what it basically says . This is more of a bargaining issue. Councilmember Barker stated absolutely. The problem with that is that there are no guidelines set forth. It just says that if one guy decides that the other guy does not have the insurance, and he should have to cover this incident, he can just go out and buy it and then say he got the insurance and the other has to pay for it . She knows that is an oversimplification of that particular passage, but it certainly appears to read that way. City Attorney Joel Stern stated the city has Southwest Risk Insurance Company and the city gets claims . Every city gets claims . When the city gets claims, what happens is the insurance company gets the claim and he tells them they need to cover the city as this is what the contract says . The insurance company gets the claim and goes through it and says they are not sure it is covered. They will give us a reservation of rights . They send a letter and maybe they will pay for the attorney but if the city is hit with damages the city is not covered. Or the policy says it is covered at a limited amount It might happen in this case. If something happens, the city submits the claim to Southwest Risk, they say the city is not covered, the city turns to Siemens and says it is not covered, Siemens says that is not right and they go and buy insurance for whatever the loss was and charge the city back. He believes that is the whole point of this . Mr. Grant Wood commented if he may test whether he understands the document, acknowledging that Joel is an attorney and he is not, in the original REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 11 OF 24 language, the word was in the event of customer is unable to obtain insurance then the seller, Siemens, could buy it and basically make the city pay Siemens for the insurance that the city should have had on its own. The changes that Siemens made are a concession. The concession Siemens made is now the city can flip it around on Siemens as well . If Siemens cannot afford the insurance, then the city could buy it and make Siemens pay. He asked if that is the case. This paragraph actually represents Siemens conceding a point to the city' s benefit. If the original language is preferred they can return it . Councilmember Waldron asked if he was not an attorney. Mr. Grant Wood stated he is an engineer. Councilmember Barker commented he is talking like one. City Attorney Joel Stern stated it is more of a deal point issue rather than what you have to have . The gentleman is right . What is stricken says customer shall promptly upon demand therefore from seller reimburse seller for the full cost and expense of any insurance that is obtained by the seller. Notwithstanding the forgoing, seller shall be responsible for all insurance and shall reimburse customer for insurance for all periods computed on a pro rata daily basis for which the system is not in operation in excess of five days a year in aggregate. There are a lot of elements here. Basically, he thinks that what he just stated is correct but, once again, this is a negotiable item. He is not sure it is a deal killer, but he does not know. He has not talked to their attorneys about it . It is something the council can decide if they want it in there or not . It is something they might want to consider. They did talk about it, they did concede, but now it is equalized. Councilmember Wilson asked who would determine that the other party does not have the correct coverage. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 12 OF 24 City Attorney Joel Stern stated for example they get a claim for someone hitting a pillar and part of the structure falls down. The city is not insured for that . However, he believes they are covered for that . But say they send it to Southwest Risk and they say the city is not covered. It is up to the insurance company to say the city is not covered They would then tell Siemens sorry the city does not have coverage for this and it cannot afford it . Siemens �. could say they want that covered. Or it might have not happened yet and the city goes through an exercise with them and they decide they want to have that coverage so Siemens would buy it because the city did not . Vice Mayor Dietz commented they would then charge the city for it City Attorney Joel Stern stated that is correct . As far as who will answer, ultimately, a judge will eventually decide. A judge will decide if there is a lawsuit . Mr. Grant Wood commented the way he is looking at this, he does not believe it is open to interpretation. He thinks it is a binary; it is either it is or it is not . He asked Mr. Stern if he interpreted it that way. City Attorney Joel Stern stated it depends on what the claim is . That is the problem. If there is not that type of insurance and our insurance company says the city is not covered, the question is what the city does and what Siemens does . Siemens may have coverage for it and they might want to charge back the cost of the insurance because the city does not have it . It goes both ways . Mr. Grant Wood stated they are bringing this up now and obviously they got this information late today. If they would like to talk to Siemens' attorney tomorrow about this issue and add language that clarifies or brackets it better, this is a clause they could do that with. They could have that conversation tomorrow. City Attorney Joel Stern stated that is up to the council. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 13 OF 24 Mr. Grant Wood stated if council so desires Councilmember Serdy commented they would need a special meeting later Councilmember Barker stated she does not really want to have another special meeting on this . .-. Councilmember Serdy commented if they do not decide tonight then they have to have a special meeting Councilmember Barker stated absolutely. Mr. Clark Wiedetz stated they have to turn in a briefing to Salt River Project on July 31 . They have to have an executed contract for a power purchase agreement, a site plan showing the engineering plan for these three installations, and an electrical engineering free line diagram. They have to deliver all three of those by July 31 to their acceptance, otherwise the six cents per kilowatt hour, which is really valued to the city at $1 . 3 million over the 20 year agreement, goes away. Essentially the project will no longer function. We have a hard July 31 deadline. He is hoping they can reach a conclusion. Councilmember Wilson commented he mentioned last night they are looking to the future for the people that sit on the council in the future. One thing concerns him. For example, if Verizon came out and wanted to put a relay station on his property, they would have to have his permission and they would lease the footprint from him, but he would not have to have insurance on their relay station. He knows it was mentioned last night about the leasing of a car but he thinks that is all together apples and oranges He thinks this is primarily that it is on city property, the city will have liability coverage on it, but the insurance on the solar panels and things like this should be falling back onto Siemens because it is Siemens' facilities that are being used on city property with the city' s permission REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 14 OF 24 elk Mr. Clark Wiedetz stated they heard them, and they heard them last night. They have worked hard in the last 24 hours to make every conceivable concession. He thinks they made tremendous concessions He honestly did not expect them to make those concessions. He acknowledged that the analogy he made last night was imperfect. The councilmember' s analogy, if he understands it correctly, is that if Verizon were to put a relay station for their cell phone is different. The difference here is that if Verizon were to install a relay on their building because it happened to be the tallest point in the city, it would be because they were going to be able to increase their capacity to provide cell phone service for all of their customers in the entire area. In this particular example, the city government is the singular beneficiary of the solar array, both in context and the shade, which the city staff directed was highly desirable That is why they went away from putting things on the roof or ground-mounted systems They specifically wanted to make sure they had structures in the parking lot to create shade. The shade and the electricity are for the city' s exclusive enjoyment Councilmember Serdy commented Siemens is the bigger beneficiary than the city is. Mr. Clark Wiedetz stated he would respectfully challenge that. They are a for profit company and they hope that if they manage their risks well, they do an excellent job in construction and if they do an excellent job of maintenance for 20 years, they hope that they will turn a profit for their shareholders. But all the benefits that are being created here, whether it is the performance-based incentive from Salt River Project or the tax credits they described earlier, all of these things are going to reduce the city' s price of electricity. He realizes the price they are providing to the city does not seem like a particularly large difference from what the city is paying to Salt River Project today. Without the six cents performance-based incentive, without the ability for Siemens to take those tax credits, the price they could sell electricity to the city would not be 10 . 75 cents, it would be 18 to 20 cents or more. He respectfully pushed back that they are the only ones benefitting for things like the performance-based incentive or the tax credits. Siemens is transitioning this benefit to the city. Without REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 15 OF 24 those things they would be unable to provide the city with electricity at 10 . 75 cents . Vice Mayor Dietz commented he believed to a certain extent he is correct. The city will enjoy shaded parking for our employees and customers . He believes they were told it could not be put on the roof because there was no room up there, and that the best way for Siemens to benefit and for this to work for them was to have the shaded parking structures for their solar panels . Number two, our average is a 4 , per year increase from Salt River Project . We are only gaining one percent with a 3% increase per year. He asked if it is a real big advantage to the city. Not as big as he says it is . He thinks the bigger advantage is to Siemens or they would not be here presenting what they are presenting. They would not put $4 million into a project if they were not going to benefit and benefit well . Those are his feelings . Mr. Clark Wiedetz commented he wanted to make it clear because he has heard this a couple of times; they can look at the 10 . 75 cents with a 3% escalator, but they should not look at it as a power price. This is not a merchant plan. They are not really selling power They are taking the cost of the solar project and adding in incentives, whether it is tax incentives from the federal government or whether it is production-based incentive from Salt River Project, and saying here is the cost, here is the incentive, they put all that together in a bucket and say for the next 20 years they are going to take this cost and divide it up for the number that comes out that works best for the city. They picked 10 . 75 and 3% . It does not have to be that. It could be 13 cents with a 20 escalator. It could be 17 cents with a 1% escalator. All they are doing is taking the money in a bucket and chopping it up; what is left over after the tax incentives over a 20 year period. The vice mayor' s point that Siemens is making a profit on this is right . They look at the solar projects they do and they have a return they have to make on their solar projects . It is actually where they are making their money. They are also very competitive in the solar industry. He will be passionate about it because it is his business across the country He knows how well they are doing right now. For a solar project they are very cost competitive . He sees them winning all over the place in great cities like REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 16 OF 24 this one. They have to look at it as they are chopping up that money over a 20 year period, not selling it to maximize their profits . He just wanted to make sure that is clear. Vice Mayor Dietz asked if it is true that they are actually selling the power at roughly 16 cents to Salt River Project . Mr. Clark Wiedetz stated Salt River Project is providing a pass through function because of the interesting way that they have developed this solar PPA program that is unique to this state. That is the only reason that it looks this way California offers another production- based incentive in front of some of the utilities . Other states have what is called extraction of energy certificates and they use those. They take the risk and they sell them to offset the cost of them to reduce the price for kWh for the cities . There are a lot of different ways to do it Salt River Project chose this way. The 6 cents is like he says; they take the bucket of money, there is the $4 million cost which is the sale price of the project . Then there is the investment tax credit, the tax credits from the federal government which is 40o to 45% of the project, there is a production-based incentive from Salt River Project that chops that $4 million down. They then have what is left over. The only thing left is energy payments for 20 years . No recs Salt River Project gets the recs . There is nothing else. They have to chop up what is left over 20 years and that is where the 10 . 75 with a 3% escalator comes from. We picked 3% because they knew Salt River Project was a percentage point and- a-half higher, but that is what they came up with They could have said less than 10 . 75 with a 4% escalator. By the way, those total dollars are going to be exactly the same. It is not that we are maximizing the profit by setting it up that way. Councilmember Barker commented that makes perfect sense. She thinks it came through loud and clear last time. Vice Mayor Dietz thanked them for coming out and for the tremendous amount of work they put into this . He agreed that city staff is awesome and that they worked very hard, too. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 17 OF 24 eS Mr. Clark Wiedetz stated they are a real treasure. He hopes they appreciate how wonderful they are . Vice Mayor Dietz closed the discussion with no further comments and called for a motion. Councilmember Barker MOVED THAT THE SOLAR ENERGY POWER PURCHASE AGREEMENT BETWEEN THE CITY emN AND SIEMENS INDUSTRIES AND THE CORRESPONDING COMMERCIAL SOLAR ENERGY PROGRAM SUPPLEMENT BETWEEN SALT RIVER PROJECT, SIEMENS INDUSTRIES AND THE CITY, AND THE SITE LEASE AGREEMENT BETWEEN THE CITY AND SIEMENS INDUSTRIES AND ANY RELATED DOCUMENTS BE AUTHORIZED WITH THE FOLLOWING STIPULATION: THAT THE CHANGES IN THE RED LINE PPA DRAFT PRESENTED BY SIEMENS TO THE COUNCIL ON JULY 17, 2012, BE ACCEPTED WITH THE FOLLOWING CHANGES: SECTION 8 . 2 ARTICLE C, FOLLOWING THE 1, 2, 3, 4 LINES OF STRIKEOUT, RETAIN THE FOLLOWING WORDS : "EACH POLICY SHALL WAIVE THE INSURER' S RIGHT TO SUBROGATION" PERIOD; STRIKE FROM THE WORD "ACCEPT" DOWN THROUGH THE WORDS "CUSTOMER' S PROPERTY INSURER" PERIOD; RETAIN THE WORDS "ANY SUCH POLICY OF INSURANCE SHALL EXPRESSLY PROVIDE THAT INSURANCE AS TO SELLER SHALL NOT BE INVALIDATED BY ANY ACT, OMISSION OR NEGLECT OF CUSTOMER AND CANNOT BE CANCELED WITHOUT AT LEAST" AND REPLACE "FIFTEEN" WITH THE WORD "THIRTY, PARENTHESES THE NUMBER 30", "DAYS PRIOR TO WRITTEN NOTICE TO SELLER"; RETAIN THE NEXT SENTENCE THROUGH THE WORDS "SECTION 8 . 2" AND STRIKE THE REMAINDER OF THAT ARTICLE; AND ADD A SECTION 8 . 2F TO READ "IN ALL INSTANCES THE SELLER SHALL BE LOOKED TO AS THE PRIMARY INSURING PARTY"; AND STRIKE ALL OF SECTION 11; AND SECTION 8 . 1 ARTICLE A, FROM THE ORIGINAL DOCUMENT DATED 7-12-2012 SHALL BE TAILORED WITH THE INSURANCE PROVISION STATED ABOVE; AND THAT THE AMENDMENTS NOTED IN THE SIEMENS' 7-12-2012 VERSION SHALL BE INCORPORATED INTO THE FINAL VERSION AS WELL AS IN THE REVISED NUMBERS AS PER THE FINAL, MAXIMIZED AMOUNT OF NET METERING; AND THAT ANY CONFLICTING PROVISIONS WITH THESE AMENDMENTS SHALL BE TAILORED AT THE DISCRETION OF THE CITY ATTORNEY INTO THE PPA AS WELL AS THE SITE LEASE AGREEMENT. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous with the changes as noted. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 18 OF 24 The motion carried Vice Mayor Dietz called for a ten minute break. Vice Mayor Dietz reconvened the meeting. NEW BUSINESS APPOINTMENT TO FILL VACANCY ON THE PUBLIC SAFETY PERSONNEL RETIREMENT BOARD City Clerk Kathleen Connelly briefed the council on the item. Vice Mayor Dietz called for any discussion. There being no discussion, he called for a motion. Councilmember Waldron MOVED THAT TROY MULLENDER BE APPOINTED TO THE PUBLIC SAFETY PERSONNEL RETIREMENT BOARD AS A POLICE DEPARTMENT REPRESENTATIVE WITH A TERM TO EXPIRE OCTOBER 31, 2014 . Councilmember Evans SECONDED THE MOTION. VOTE: Unanimous . The motion carried. ACCEPTANCE OF RESIGNATION OF CONRAD PISINSKI FROM THE SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT BOARD OF DIRECTORS, DIRECTION TO STAFF ON FILLING THE VACANCY Councilmember Waldron declared a conflict of interest and excused himself City Clerk Kathleen Connelly briefed the council on the item. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 19 OF 24 Councilmember Barker commented she thinks they need to discuss their role in the sewer district before we make a determination on how they want to fill this seat . She asked that they hold off on this until September to give them the opportunity to do that. Vice Mayor Dietz commented they can put off the direction to staff until September but they still need to accept the resignation. City Attorney Joel Stern stated he believes the code states that they typically appoint individuals at the first meeting in November City Clerk Kathleen Connelly stated that is for annual appointments and reappointments. This is out of sequence because it was a resignation in mid-term. City Attorney Joel Stern stated he does not know if they want to do it in conjunction with that or appoint in September as that is what they said. Councilmember Barker stated that is what they were looking at . City Attorney Joel Stern commented there are some issues as to how the city relates to the sewer district . Those are a little more in depth questions that may take a while to get through. Councilmember Barker commented she prefers not to do this in conjunction with city boards. She thinks that becomes a convoluted issue. But she does not see any problem with putting this off until October. City Attorney Joel Stern stated that is what he wanted to clarify, but September is okay. He just wanted to point out the city' s regular board appointments and he wanted her to know the difference. City Clerk Kathleen Connelly stated we will be doing interviews in October. If they hold off on this until October, they will be mixing them. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 20 OF 24 Albk. Aft, Councilmember Barker stated she would rather not . There was general discussion on the motion. Vice Mayor Dietz asked if this is a five member board. City Clerk Kathleen Connelly stated it is . Vice Mayor Dietz asked how many are currently on the board. City Clerk Kathleen Connelly stated there are four. Assistant City Manager Bryant Powell commented if they set a specific date they may end up having more questions and want more dialogue. It may take them longer. He asked if they would be able to push it out later. City Attorney Joel Stern stated there may be legal issues and executive session issues . They would have to do another motion if they set a date and go beyond that date. They could keep it flexible. It is up to the council . It is a discretionary matter, there is no legal limit on it . There was general discussion on what date they should set for the appointment . Councilmember Serdy asked how long the terms are for this board. City Clerk Kathleen Connelly stated she thought she had attached a copy of the statute to the item from last night . Vice Mayor Dietz commented he thought they were four year terms. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 21 OF 24 Councilmember Serdy asked how far into the term Conrad was . City Clerk Kathleen Connelly stated her memo from last night states that his term would expire on July 7, 2014 . These dates were set by statute and the staggered terms were set by statute based upon when the board was created. It does not line up with our city code when everything expires in October. It is a totally different /, sequence of events . City Attorney Joel Stern commented they were six year terms and that is probably why there is some bumping back from 1992 . City Clerk Kathleen Connelly stated if they look at the item from last night, there is a copy of Arizona Revised Statute § 48-711 attached. It states that the initial terms were for six years and subsequent terms are for four years and that they are staggered Vice Mayor Dietz closed the discussion with no further comments and called for a motion. Councilmember Barker MOVED TO ACCEPT THE RESIGNATION OF CONRAD PISINSKI, SADLY, FROM THE SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT BOARD OF DIRECTORS, AND THAT THE DIRECTION TO STAFF TO FILL THAT VACANCY BE GIVEN AT A MEETING NO LATER THAN THE SECOND MEETING OF SEPTEMBER. Councilmember Wilson SECONDED ens THE MOTION. VOTE: Unanimous . The motion carried. Vice Mayor Dietz thanked Conrad for his time served on the board and what he put into it . Councilmember Waldron returned to the council chambers and took his seat. REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 22 OF 24 COUNCIL DIRECTION TO STAFF None. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Councilmember Barker MOVED THAT AN EXECUTIVE SESSION AT 5: 45 P.M. AND A WORK SESSION AT 7 : 00 P.M. BE HELD ON MONDAY, AUGUST 6, 2012, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS, RESPECTIVELY; AND THAT AN EXECUTIVE SESSION AT 5: 45 P.M. BE HELD ON TUESDAY, AUGUST 7, 2012 IN THE CITY COUNCIL CONFERENCE ROOM. Councilmember Wilson SECONDED THE MOTION. VOTE Unanimous . The motion carried. CALL TO THE PUBLIC: Mr. Dan Austin, 1353 S. Valley Drive, Apache Junction addressed the council regarding the vacancy on the Superstition Mountains Community Facilities District board of directors and gave them some recommendations . Mr. Todd House, 5027 E. Hidalgo Street, Apache Junction, addressed the council regarding hls support behind the city' s lawsuit against Pinal County on TIF funds. Ask ADJOURNMENT Vice Mayor Dietz adjourned the meeting at 8 : 58 p.m. Consent Agenda Items are as follows: 1 . Acceptance of Agenda. 2 . Approval of Minutes of Regular Meeting of July 3, 2012 . 3 . Approval of Minutes of Special Meeting of July 3, 2012 . REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 23 OF 24 ACCEPTED THIS 7TH DAY OF AUGUST, 2012, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 7TH DAY OF AUGUST, 2012 . JOHN S . INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of the City of Apache Junction, Arizona, held on the 17th day of July, 2012 . I further certify that the meeting was duly called and held and that a quorum was present . Dated this 25th day of July, 2012 . KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL JULY 17, 2012 PAGE 24 OF 24 ACH ✓G _ 14- City of Apache Junction 2 Hoii;e of the Supe;:c7ition Mountains 4 P/2001' Print TO: City Manager's Office FROM: Roger S. Hacker, Revenue Resources Manager DATE: August 7, 2012 ,agenda Type : Regular Agenda Council Priority Focus Area: Revenue Development TITLE OF AGENDA ITEM: Consideration of Resolution No 12-24 authorizing the execution of a Grant Pass Through Agreement between the City of Apache Junction and East Valley Adult Resources for the distribution of $45,000 in grant funds from the Gila River Indian Community. ACTION REQUESTED: Recommendation for Approval DISCUSSION / BACKGROUND INFORMATION: In 2011, the city sponsored the East Valley Adult Resources' (EVAR) grant application to the Gila River Indian Community. The application requested $45,000 for the transportation program at the city's Active Adult Center. EVAR was recently notified that its application has been approved for funding The city has received the check and must disperse the funds to EVAR. Before the funds can be dispersed, the city council must adopt a resolution authorizing the execution of a Grant Pass Through Agreement between the city and EVAR. If adopted, Resolution No. 12-24 would authorize that agreement to be executed. FISCAL IMPACT: Budgetary Approval Not Required M"`PTIONS/ALTERNATIVES: RECOMMENDATION: Staff respectfully recommends that the City Council adopt Resolution No. 12-24. ATTACHMENTS: Click to download D Staff Report ❑ Resolution No 12-24 1) Grant Pass Through Agreement PpACHEi Cityache Junction 4 _ of A p °NP Department of Public Safety MEMORANDUM DATE: July 23, 2012 TO: The Honorable Mayor and City Council THROUGH: George Hoffman, City Manager Brad Steinke, Development Services Director FROM: Roger S. Hacker, Revenue Resources Manager SUBJECT: Gila River Indian Community State Shared Revenue Program Grant Application For Fiscal Year 2011-2012 REQUEST Staff respectfully requests that the City Council adopt Resolution No. 12-24. The Resolution authorizes the Mayor, or his designee, to sign a Grant Pass Through Agreement between the City of Apache Junction and East Valley Adult Resources ("EVAR"). EVAR was recently notified that it was awarded a$45,000 grant from the Gila River Indian Community A Grant Pass Through Agreement needs to be executed before the funds can be distributed to the local agency BACKGROUND Gila Community In November 2002, the voters of Arizona approved Proposition 202 which initiated new gaming compacts between the State of Arizona and the Native American tribes An important provision of Proposition 202 was the sharing of gaming revenues with the State. Henceforth, tribes would be assessed by the State a percentage of their gross gaming revenue Tribes had the option of either paying all of this assessment into a State managed fund or to pay 88%of the assessment into the State managed fund and retain 12%of the assessment for distribution as grants. The Gila River Indian Community("GRIC") exercised its option to retain and administer 12%of State shared revenue. Known as the Gila River Indian Community State Shared Revenue Program,the Program makes"Distributions to cities,towns, or counties for government services that benefit the general public, including public safety, mitigation of the impacts of gaming, or promotion of commerce and economic development" Gila River's policy is to generally limit the distributions to cities,towns, and counties in Maricopa and Pinal Counties Funding priorities include. 1) Public Safety(police, fire, EMS); 2) Transportation Facilities; 3) Health Care Services; 4) Economic Development; and 5) Education. The law also stipulates that local nonprofits may submit applications to tribal entities if the nonprofit organization is "sponsored" by an appropriate municipality. In such cases, the municipality agrees to act as a conduit for the grant funds The municipality receives the grant funds from the tribal entity and in turn issues a check to the nonprofit agency City of Apache Junction On June 20, 2011, the City Council adopted a resolution that sponsored the submission of a grant application by the East Valley Adult Resources The request was for$45,000 to fund the Senior Transportation Program at the Apache Junction Active Adult Center One August 2, 201 I, the City Council adopted a set of policies entitled "Indian Community State Shared Revenue Program Local Non Profit Participation" The document articulated guidelines by which the City would determine future sponsorship of local non-profits for participation in any of the tribal grant programs Included as an attachment to the policies was a generic Grant Pass Through Agreement On May 17, 2012 EVAR was notified by the Gila River Indian Community that the Senior Transportation Program at the Apache Junction Active Adult Center was funded in the amount of $45,000 with FY 2011-2012 grant dollars. On May 22, 2012, the City received the check from GRIC for the transportation program Since May 22, 2012 City staff has worked to make the Grant Pass Through Agreement specific to EVAR and the GRIC grant. On July 16, 2012 City staff presented this matter to the Council during its work session DISCUSSION If Resolution No 12-24 is adopted it authorizes the execution of an agreement between the City and EVAR Under the agreement, the City agrees to .•. 1 Disburse the GRIC contribution of$45,000 00 to EVAR for the transportation program at the Apache Junction Active Adult Center. 2 Review copies of all reports and documents sent to the GRIC by EVAR Under the agreement, EVAR agrees to 1 Hold harmless the City and its agents for any acts or omissions by City, its elected officials, appointees, and employees. 2 Provide to the City a copy of all reports and documents sent to the GRIC related to the funded project 3 Indemnify, defend and hold harmless the City, its Mayor and City Council, appointees, employees and agents from and against any and all suits, actions, legal or administrative resulting from this project RECOMMENDATION Staff respectfully recommends that Council adopt Resolution No. 12-24. ACTION REQUIRED The staff respectfully requests that the City Council adopt Resolution No 12-24. Attachment 1: Resolution No. 12-24 Attachment 2 Grant Pass Through Agreement between the City of Apache Junction and East Valley Adult Resources Attachment One RESOLUTION NO. 12-24 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO A GRANT PASS THROUGH AGREEMENT FOR THE OIS DISTRIBUTION OF A GILA INDIAN COMMUNITY STATE SHARED REVENUE GRANT FOR FISCAL YEAR 2011-2012 WHEREAS, the City of Apache Junction, Arizona ("City") , and East Valley Adult Resources ("EVAR") desire to enter into an Grant Pass Through Agreement ("GPTA") allowing the City to accept and distribute Gila River Indian Community State Shared Revenue grant funds for the provision of transportation services at the Apache Junction Active Adult Center, and WHEREAS, the parties have crafted a written agreement which sets forth the conditions for such arrangement, and WHEREAS, pursuant to A R S . § 11-952 (A) et seq. , public entities may enter into intergovernmental agreements with other governmental entities for joint or cooperative activities NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION ARIZONA, AS FOLLOWS: 1) The Mayor and City Council approve the Grant Pass Through Agreement and the Mayor, or his designee, is hereby authorized to sign the agreement on behalf of the City /, 2) Management staff is authorized to carry out the goals and objectives of the grant, to include fulfilling all administrative and programmatic requirements . RESOLUTION NO. 12-24 PAGE 1 OF 2 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF , 2012, and SIGNED AND ATTESTED TO THIS DAY OF , 2012 JOHN S INSALACO Mayor ATTEST• KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM. RICHARD J STERN City Attorney RESOLUTION NO. 12-24 PAGE 2 OF 2 Attachment Two When recorded return to. Richard Joel Stern, Esq. Apache Junction City Attorney 300 East Superstition Blvd. Apache Junction, AZ 85119 GRANT PASS THROUGH AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND EAST VALLEY ADULT RESOURCES THIS GRANT PASS THROUGH AGREEMENT (the "Agreement") is made as of the day of 20_, by and between CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation ("City") and East Valley Adult Resources, a nonprofit agency ("EVAR"). City and EVAR are sometimes referred to herein collectively as the "Parties," or individually as a "Party " RECITALS A. EVAR is a nonprofit organization which provides social, recreational, fitness, advocacy, and transportation services at the Apache Junction Active Adult Center for Apache Junction residents. B. EVAR desires to utilize $45,000 in Gila River Indian Community FY 11-12 funds for transportation services in Apache Junction. C. The Gila River Indian Community ("GRIC") desires to convey to City the above-referenced portion of its annual 12% local revenue-sharing contribution required to be paid to local governments for the benefit of the general public in accordance with the Tribal-State Gaming Compact executed by and between GRIC and the State of Arizona in 2003, and pursuant to A.R.S. § 5-601.02, for disbursement by City to EVAR D. City desires to disburse the aforementioned contribution to the EVAR and to set forth the mutual understandings between City and EVAR E. There is a need for mutual cooperation for a pass through of grant funds from GRIC to City and ultimately to EVAR. F. Mutual cooperation would result in EVAR's obtaining transportation program cost assistance from City for the Apache Junction Active Adult Center, which translates to public savings. G. The Parties have mutual interests in this project and wish to enter into this Agreement with certain terms and conditions AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual promises and covenants set forth herein, and for other consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: 1 ACCURACY OF THE RECITALS The Parties hereby confirm the accuracy of the Recitals set forth above, which are incorporated herein by this reference. 2. CITY'S OBLIGATIONS. City agrees to do all of the following: a. Disburse the GRIC contribution of $45,000.00 to EVAR for the transportation program at the Apache Junction Active Adult Center (the "Funded Project"). b. Review copies of all reports and documents sent to the GRIC by EVAR related to Funded Project. 3. EVAR'S OBLIGATIONS EVAR agrees to do all of the following: a. Hold harmless the City of Apache Junction and its agents for any acts or omissions by City, its elected officials, appointees, and employees. b. Provide to the City of Apache Junction a copy of all reports and documents sent to the GRIC related to funded project no later than 30 days after _ their submission to GRIC 4. Purpose. The purpose of this Agreement is to set forth the rights and responsibilities of the Parties with respect to the acceptance and distribution of the contribution to EVAR. 5. Funding Schedule. GRIC shall deliver a one-time payment of $45,000 to the City for disbursement to EVAR for the provision of transportation services at the Apache Junction Active Adult Center ("Center"). The purpose of the contribution is to provide City residents with transportation to the Center, Center Programs, local medical appointments, and local shopping hubs 6. Term The Term of this Agreement is one calendar year from the execution date. 7. Indemnification and Hold Harmless EVAR shall indemnify, defend and hold harmless the City, its Mayor and City Council, appointees, employees and agents from and against any and all suits, actions, legal or administrative proceedings, claims, demands, liens, losses, fines or penalties, damages, liability, interest, fees for attorneys, consultants and accountants or costs and expenses of any kind and nature, resulting from or arising out of the negligence or willful misconduct of City, its Mayor and City Council, appointees, employees and agents in performing the duties set forth in this Agreement. 8. Transactional Conflicts of Interest The Parties acknowledge that this Agreement is subject to cancellation pursuant to the provisions of A.R.S. § 38-511. 9. Waiver No waiver, whether written or tacit, of any remedy or provision of this Agreement shall be deemed to constitute a waiver of any other provision hereof or a permanent waiver of the provision concerned, unless otherwise stated in writing by the Party to be bound thereby. 10. Severability. If any provision of this Agreement shall be found invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall not be affected thereby and shall remain in effect and be valid and enforceable to the fullest extent permitted by law. 11. No Third Party Beneficiary Rights The Parties agree that no third party rights attach to this agreement. 12 NOTICES. Except as otherwise required by law, any notice required or permitted under this Agreement shall be in writing and shall be given by personal delivery, or by deposit in the United States mail, certified or registered, return receipt requested, postage prepaid, addressed to the Parties at their respective addresses set forth below, or at such other address as a Party may designate in writing pursuant to the terms of this Section, or by telecopy or telefacsimile machine, or by any nationally recognized express or overnight delivery service (e g Federal Express or UPS), delivery charges prepaid' If to City: City of Apache Junction Attn City Manager 300 E Superstition Blvd Apache Junction, Arizona 85119-2899 Telephone. (480) 474-5066 Facsimile. (480) 474-5110 If to EVAR: East Valley Adult Resources Attn. Executive Director 45 West University Suite A - Mesa, Arizona 85201 Telephone: (480) 964-9014 Facsimile: (480)898-7306 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. EAST VALLEY ADULT RESOURCES, an Arizona nonprofit organization By. Lucia Causey Its: President, Board of Directors CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation By. John S. Insalaco Its. Mayor ATTEST. By. Kathy Connelly, City Clerk APPROVE AS TO FORM. By: Richard J. Stern, City Attorney 4 STATE OF ARIZONA ) ) ss County of ) The foregoing was acknowledged before me this day of , 20_, by [Name], [Title] of [Other Agency], an Arizona [description of agency]. Notary Public My Commission Expires- (seal) STATE OF ARIZONA ) ss COUNTY OF ) The foregoing was acknowledged before me this day of , 2010, by John S. Insalaco, the Mayor of City of Apache Junction, Arizona, an Arizona municipal corporation, who acknowledged that he signed the foregoing instrument on behalf of City. Notary Public My Commission Expires: (seal) 5 x6 0 47;;A t k--7 1.0 ofApace muon h ju ' de Home of the Supentlatrmn Alountains 4',ZO1 Print TO: City Manager's Office FROM: Steve Filipowicz, Economic Development Director DATE: August 7, 2012 Benda Type : Regular Agenda Council Priority Focus Area: TITLE OF AGENDA ITEM: Consideration of Professional Services Agreement for Economic Development with Apache Junction Chamber of Commerce. ACTION REQUESTED: DISCUSSION/ BACKGROUND INFORMATION: This proposed 3-year extension of the Professional Services Agreement provides for Visitor Center Services in the amount of $36,000 00 per year and adds city funding for the Visit Sunny AZ Marketing Consortium in the amount of$5,000.00 per year This item was discussed at the June 18 work session and again at the July 3 council meeting. FISCAL IMPACT: OPTIONS/ALTERNATIVES: COMMENDATION: ATTACHMENTS: Click to download L7 Signed Chamber Agreement PROFESSIONAL SERVICES AGREEMENT WITH THE APACHE JUNCTION CHAMBER OF COMMERCE This Agreement is made as of the 914Uday of BUST 20 La- (the "Effective Date") by and between THE CITY OF APACHE JUNCTION, an Arizona municipal corporation ("City") and APACHE JUNCTION CHAMBER OF COMMERCE, an Arizona non-profit corporation ("Consultant"), both of which may be hereinafter referred to collectively as the "Parties", for professional operational services of the local visitor information center. RECITALS A. City desires to continue to retain Consultant to assist in operation of a local visitor information center and to arrange payment for the same in accordance with the terms and conditions set forth in this Agreement, including all attachments and addenda which are appended hereto by mutual agreement of the Parties. B. The open market procedures set forth in the Apache Junction City Code have been satisfied. C. The Parties have set forth below contemplated services Consultant will provide City, including payment terms for such services and products. AGREEMENT NOW, THEREFORE, in consideration of the Recitals noted above, the mutual covenants and conditions below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. CONSULTANT'S DUTIES: Consultant agrees to perform the professional services detailed in Exhibit A. 2. COMPENSATION: In accordance with the terms and conditions of this Agreement, City shall compensate Consultant for professional services in an amount not to exceed $41,000.00 annually in accordance with the price sheet set forth in Exhibit B. 3. CONSULTANT BILLING: Consultant shall bill City on a time and expense basis in a total amount not to exceed Section 2 above. City shall pay such billings within thirty (30) calendar days of the date of receipt. 4. TERM/RENEWAL. This Agreement shall be effective retroactively beginning on July 1, 2012 and shall remain in full force and effect until June 30, 2015, unless otherwise terminated as set forth herein. 5. CITY'S STANDARD OF PERFORMANCE: City shall furnish Consultant with all data, information and other supporting services specified in Exhibit A. 6. CONSULTANT'S STANDARD OF PERFORMANCE: While performing the services, Consultant shall exercise the reasonable professional care and skill customarily exercised by reputable members of Consultant's profession practicing in the Phoenix Metropolitan Area, and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. Consultant shall be responsible for all errors and omissions Consultant commits in the performance of this Agreement. 7. NOTICES: All notices required under this Agreement shall be in writing and sent by first class certified mail, postage prepaid, return receipt requested, addressed to the following: If to City: City Manager City of Apache Junction 300 East Superstition Boulevard Apache Junction, AZ 85119 If to Consultant• Apache Junction Chamber of Commerce Attn: Larry Johnson, President/CEO 567 W. Apache Trail P.O. Box 1747 Apache Junction, AZ 85117-1147 8. INSURANCE: Consultant, at its own expense, shall purchase and maintain the herein stipulated minimum insurance with companies duly licensed, possessing a current A.M. Best, Inc. Rating of B++6, or approved unlicensed in the State of Arizona with policies and forms satisfactory to City. All insurance required herein shall be maintained in full force and effect until all work or service required to be performed under the terms of the Agreement is satisfactorily completed and formally accepted; failure to do so may, at the sole discretion of City, constitute a material breach of this Agreement. Consultant's insurance shall be primary insurance as respects the City, and any insurance or self-insurance maintained by City shall not contribute to it. Any failure to comply with the claim reporting provisions of the insurance policies or any breach of an insurance policy warranty shall not affect coverage afforded under the insurance policies to protect City. The insurance policies, except Workers' Compensation, shall contain a waiver of transfer rights of recovery (subrogation) against City, its agents, officers, 2 officials and employees for any claims arising out of Contractor's acts, errors, mistakes, omissions, work or service. The insurance policies may provide coverage which contains deductibles or self- insured retentions. Such deductible and/or self-insured retentions shall not be applicable with respect to the coverage provided to City under such policies. Consultant shall be solely responsible for the deductible and/or self retention and City, at its option, may require Consultant to secure payment of such deductibles or self-insured retentions by a Surety Bond or an irrevocable and unconditional letter of credit. City reserves the right to request and to receive, within ten (10) working days, certified copies of any or all of the herein required insurance policies and/or endorsements. City shall not be obligated, however, to review same or to advise Consultant of any deficiencies in such policies and endorsements, and such receipt shall not relieve Consultant from, or be deemed a waiver of, City's right to insist on strict fulfillment of Consultant's obligations under this Agreement. The insurance policies, except Workers' Compensation and Professional Liability, required by this Agreement, shall name City, its agents, officers, officials and employees as Additional Insureds. REQUIRED COVERAGE Commercial General Liability Consultant shall maintain Commercial General Liability insurance with a limit of not less than $1,000,000 for each occurrence with a $2,000,000 Products/Completed Operations Aggregate and a $2,000,000 General Aggregate limit. The policy shall include coverage for bodily injury, broad form property damage, personal injury, products and completed operations and blanket contractual coverage including, but not limited to, the liability assumed under the indemnification provisions of this Agreement, which coverage will be at least as broad as that on Insurance Service Office, Inc. Policy Form No. CG 00011093, or any replacements thereof. Such policy shall contain a severability of interest provision, and shall not contain a sunset provision or commutation clause, nor any provision which would serve to limit third party action over claims. The Commercial General Liability additional insured endorsement shall be at least as broad as the Insurance Service Office, Inc.'s Additional Insured, Form B, CG 20101185, and shall include coverage for Consultant's operations and products and completed operations. 3 If required by this Agreement, if Consultant sublets any part of the work, services or operations, Consultant shall purchase and maintain, at all times during prosecution of the work, services or operations under this Agreement, an Owner and Consultant's Protective Liability insurance policy for bodily injury and property damage, including death, which may arise in the prosecution of Consultant's work, service or operations under this Agreement. Coverage shall be on an occurrence basis with a limit not less than $1,000,000 per occurrence, and the policy shall be issued by the same insurance company that issues Consultant's Commercial General Liability insurance. Automobile Liability Consultant shall maintain Commercial/Business Automobile Liability insurance with a combined single limit for bodily injury and property damage of not less than $1 ,000,000 each occurrence with respect to Consultant's owned, hired, and non-owned vehicles assigned to or used in performance of Consultant's work. Coverage will be at least as broad as coverage code 1, "any auto", (Insurance Service Office, Inc. Policy Form CA 00011293, or any replacements thereof). Such insurance shall include coverage for loading and off loading hazards. If hazardous substances, materials or wastes are to be transported, MCS 90 endorsement shall be included and $5,000,000 per accident limits for bodily injury and property damage shall apply. Workers' Compensation Consultant shall carry Workers' Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of Consultant's employees engaged in the performance of the work or services; and, Employer's Liability insurance of not less than $100,000 for each accident, $100,000 disease for each employee, and $500,000 disease policy limit. By execution of this Agreement, Consultant certifies as follows: "I am aware and understand the provisions of A.R.S. § 23-900 et seq. which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of this chapter, and I will comply with such provisions before commencing the performance of the work of this Agreement." If Consultant has no employees for whom workers' compensation insurance is required, Consultant shall submit a declaration or affidavit to City so stating and covenanting to obtain such insurance if and when Consultant employs any employees subject to coverage. 4 In case any work is subcontracted, Consultant will require subcontractors to provide Workers' Compensation and Employer's Liability insurance to at least the same extent as required of Consultant. Professional Liability Consultant retained by City to provide the work or service required by this Agreement will maintain Professional Liability insurance covering acts, errors, mistakes and omissions arising out of the work or services performed by Consultant, or any person employed by Consultant, with a limit of not less than $1,000,000 each claim. Certificates of Insurance Prior to commencing work or services under this Agreement, Consultant shall furnish City with Certificates of Insurance, or formal endorsements as required by the Agreement, issued by Consultant's insurer(s), as evidence that policies providing the required coverages, conditions and limits required by this Agreement are in full force and effect. The form of the certificates of insurance and endorsements shall be subject to the approval of the Apache Junction City Attorney's Office, shall comply with the terms of this Agreement, and shall be issued and delivered to City Attorney, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, AZ 85119. In the event any insurance policies required by this Agreement are written on a "claims made" basis, coverage shall extend for two (2) years past completion and acceptance of Consultant's work or services and as evidenced by annual Certificates of Insurance. If a policy does expire during the life of the Agreement, a renewal certificate must be sent to City thirty (30) calendar days prior to the expiration date. All Certificates of Insurance shall be identified with bid serial number and title. Policies or certificates and completed forms of City's Additional Insured Endorsement (or a substantially equivalent insurance company form acceptable to the City Attorney) evidencing the coverage required by this section shall be filed with the City and shall include the City as an additional insured The policy or policies shall be in the usual form of a public liability insurance, but shall also include the following provision: "Solely as respects work done by or on behalf of the named insured for the City of Apache Junction, it is agreed that the City of Apache Junction and its officers and employees are added as additional insureds under this policy." Insurance required herein shall not expire, be canceled, or materially changed without thirty (30) calendar days' prior written notice to City. 5 9. APPLICABLE LAW AND VENUE: The terms and conditions of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona. Any action at law or in equity brought by either party for the purpose of enforcing a right or rights provided for in this Agreement, shall be tried in a court of competent jurisdiction in Pinal County, State of Arizona. The parties hereby waive all provisions of law providing for a change of venue in such proceeding to any other county. In the event either party shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition in this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs including: all litigation and appeal expenses, collection expenses, reasonable attorneys' fees, necessary witness fees and court costs to be determined by the court in such action. 10. FORCE MAJEURE: Neither City nor Consultant, as the case may be, shall be considered not to have performed its obligations under this Agreement in the event of enforced delay (an "Enforced Delay") due to causes beyond its control and without its fault or negligence or failure to comply with applicable laws, including, but not restricted to, acts of God, fires, floods, epidemics, pandemics, quarantine, restrictions, embargoes, labor disputes, and unusually severe weather or the delays of subcontractors or materialmen due to such causes, acts of a public enemy, war, terrorism or act of terror (including but not limited to bio-terrorism or eco-terrorism), nuclear radiation, blockade, insurrection, riot, labor strike or interruption, extortion, sabotage, or similar occurrence or any exercise of the power of eminent domain of any governmental body on behalf of any public entity, or a declaration of moratorium or similar hiatus (whether permanent or temporary) by any public entity directly affecting the obligations under this Agreement. In no event will Enforced Delay include any delay resulting from unavailability for any reason of labor shortages, or the unavailability for any reason of particular Consultants, subcontractors, vendors or investors desired by Consultant in connection with the obligations under this Agreement. Consultant agrees that Consultant alone will bear all risks of delay which are not Enforced Delay. In the event of the occurrence of any such Enforced Delay, the time or times for performance of the obligations of the Party claiming delay shall be extended for a period of the Enforced Delay; provided, however, that the Party seeking the benefit of the provisions of this Section shall, within thirty (30) calendar days after such Party knows or should know of any such Enforced Delay, first notify the other Party of the specific delay in writing and claim the right to an extension for the period of the Enforced Delay, and provided further that in no event shall a period of Enforced Delay exceed ninety (90) calendar days. 11. TERMINATION: This Agreement may be terminated by either Party for any reason upon two (2) months' written notice. If this Agreement is terminated, City shall be reimbursed from Consultant the amount paid for any undelivered and/or unaccepted products or services. Upon termination, City 6 agrees to pay for all delivered, accepted, and properly invoiced services that were provided up to the announced Termination Date. 12. INDEMNIFICATION To the fullest extent permitted by law, Consultant shall defend, indemnify and hold harmless City, its elected and appointed officers, officials, agents, and employees from and against any and all liability including but not limited to demands, claims, actions, fees, costs and expenses, including attorney and expert witness fees, arising from or connected with or alleged to have arisen from or connected with, relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of Consultant, its agents, employees, or any tier of Consultant's subcontractors in the performance of this Agreement. Consultant's duty to defend, hold harmless and indemnify City, its Special Districts, elected and appointed officers, officials, agents, and employees shall arise in connection with any tortious claim, damage, loss or expense that is attributable to bodily injury, sickness, disease, death, or injury to, impairment, or destruction of property including loss of use resulting therefrom, caused by an Consultant's acts, errors, mistakes, omissions, work or services in the performance of this Agreement including any employee of Consultant, any tier of Consultant's subcontractor or any other person for whose acts, errors, mistakes, omissions, work or services Consultant may be legally liable. 13. PRIVILEGE LICENSE AND PRIVILEGE TAXES: Consultant represents and warrants that any license necessary to perform the work under this Agreement is current and valid. Consultant understands that the activity described herein constitutes "doing business in the City of Apache Junction" and Consultant agrees to obtain any applicable privilege license and/or business license as set forth in Apache Junction City Code Chapter 8 and keep such license current during the term of this Agreement, and pay any applicable privilege taxes. Any activity by subcontractors within the corporate city limits, will invoke the same privilege license and tax regulations, and Consultant ensures its subcontractors will obtain any required license and will pay any applicable privilege taxes. 14. RECORDS: Consultant shall be responsible for providing the records or copies of the records for each year the agreement is in force pursuant to Arizona statutes relating to record retention. These records shall be provided to the City no later than June 30th of each year the contract is in effect for the immediately preceding calendar year. The City Office of Economic Development shall be responsible for maintaining and retaining these records in accordance with the state approved civic, convention, cultural facilities and visitors bureau records general schedule or other applicable state-approved records retention schedules. The Consultant shall be responsible for returning any other records in their possession at the termination of the agreement. Records of Consultant's labor, payroll, and other costs pertaining to this Agreement shall be kept on a generally recognized accounting basis. 7 15. RIGHT OF CITY TO CONTRACT WITH OTHERS: Nothing in this Agreement shall imply City is obligated to obtain the services described herein with only this particular Consultant. 16. WAIVER OF TERMS AND CONDITIONS: The failure of City or Consultant to insist in any one or more instances on performance of any of the terms or conditions of this Agreement or to exercise any right or privilege contained herein shall not be considered as thereafter waiving such terms, conditions, rights or privileges, and they shall remain in full force and effect. 17. COMPLIANCE WITH FEDERAL AND STATE LAWS: Consultant understands and acknowledges the applicability of the American with Disabilities Act, the Immigration Reform and Control Act of 1986 and the Drug Free Workplace Act of 1989 to the services performed under this Agreement. As required by A.R.S. § 41-4401, Consultant hereby warrants its compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23-214(A). Consultant further warrants that after hiring an employee, Consultant will verify the employment eligibility of the employee through the E- Verify program. If Consultant uses any subcontractors in performance of services, subcontractors shall warrant their compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23- 214(A), and subcontractors shall further warrant that after hiring an employee, such subcontractor verifies the employment eligibility of the employee through the E-Verify program. A breach of this warranty shall be deemed a material breach of the Agreement that is subject to penalties up to and including termination of this Agreement. Consultant is subject to a penalty of$100 per day for the first violation, $500 per day for the second violation, and $1,000 per day for the third violation. City at its option may terminate this Agreement after the third violation. Consultant shall not be deemed in material breach of this Agreement if the Consultant and/or subcontractors establish compliance with the employment verification provisions of Sections 274A and 274E of the federal Immigration and Nationality Act and the E-Verify requirements contained in A.R.S. § 23-214(A). City retains the legal right to inspect the papers of any Consultant or subcontractor employee who works under this Agreement to ensure that the Consultant or subcontractor is complying with the warranty. Any inspection will be conducted after reasonable notice and at reasonable times. If state law is amended, the Parties may modify this paragraph consistent with state law. 18. POLITICAL ACTIVITIES: As a community service-based organization, Consultant is a non-political organization. Consultant warrants that its Employees shall not engage in any partisan political activity with respect to candidates for political office beyond the private expression of personal opinion but shall be permitted to register as a member of a political party, sign nomination petitions and vote in any special, primary or general election. Consultant further warrants no board member, officer or employee of 8 Consultant shall solicit any contribution in cash or services from any Consultant employee to support any candidate for public office. No board member or officer shall use the name of Consultant, or use their affiliation with Consultant, to engage in any partisan political activity of any kind or to solicit any contribution in cash or services to support any candidate for public office. If a board member or officer should engage in said activities, they shall make it clear that they are doing so in their personal and private capacity, and are not associated with Consultant in any way, while engaging in said activity The functions and activities of Consultant are non-political with respect to candidates for political office. Therefore, all board members, officers and employees will refrain from engaging in any partisan political activity, of whatsoever type or nature, while attending or participating in Consultant function or event This includes the circulation or signing of nomination petitions or soliciting any contributions in cash or services from anyone to support any candidate for public office. 19. ENTIRE AGREEMENT. This Agreement and any attachments represent the entire agreement between City and Consultant and supersede all prior negotiations, representations or agreements, either express or implied, written or oral. It is mutually understood and agreed that no alteration or variation of the terms and conditions of this Agreement shall be valid unless made in writing and signed by the parties hereto. Written and signed amendments shall automatically become part of the Supporting Documents, and shall supersede any inconsistent provision therein; provided, however, that any apparent inconsistency shall be resolved, if possible, by construing the provisions as mutually complementary and supplementary. 20. SEVERABILITY: City and Consultant each believe that the execution, delivery and performance of this Agreement are in compliance with all applicable laws. However, in the unlikely event that any provision of this Agreement is declared void or unenforceable (or is construed as requiring City to do any act in violation of any applicable laws, including any constitutional provision, law, regulation, or City Code section), such provision shall be deemed severed from this Agreement and this Agreement shall otherwise remain in full force and effect; provided that this Agreement shall retroactively be deemed reformed to the extent reasonably possible in such a manner so that the reformed agreement (and any related agreements effective as of the same date) provide essentially the same rights and benefits (economic and otherwise) to the Parties as if such severance and reformation were not required. Unless prohibited by applicable laws, the Parties further shall perform all acts and execute, acknowledge and/or deliver all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed. 9 21. ACCURACY OF WORK: Acceptance of services or work by City shall not relieve Consultant of the responsibility for subsequent correction of any such errors and the clarification of any ambiguities. Consultant shall make all necessary revisions or corrections resulting from errors and omissions on the part of Consultant without additional compensation. 22. CONFLICTS OF INTEREST: This Agreement is subject to, and may be terminated by City in accordance with, the provisions of A.R.S. § 38-511. IN WITNESS WHEREOF, Consultant and City have executed this Agreement as of the date first set forth above Apache Junction Chamber of Commerce, an Arizona non-profit corporation y: e 7-1 Its: riCf� f�C CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation By John S. Insalaco, Mayor ATTEST: Kathleen Connelly, City Clerk APPROVED AS TO FORM: By 4/it 731. 12 1:y3Rn R. Joel tern, City Attorney 10 STATE OF fl t ) ) ss. County of f 7(( , I ) The foregoing was acknowledged before me this - ( day of , 20 i/, by Larry Johnson as President/CEO of the Apache Junction Chamber of Commerce, an non-profit corporation of Arizona i 'tq 7//777/ - Notary Public My Commission Expires: U 'D /IC Tamara Stratton Notary Public-Arizona "'�;,� � Pinal County ' •�r�; My Commission EupMss August 30,2015 STATE OF ARIZONA ) ) ss. COUNTY OF ) The foregoing was acknowledged before me this day of , 20 , by John S. Insalaco, as Mayor of the City of Apache Junction, Arizona, an Arizona municipal corporation. Notary Public My Commission Expires: 11 EXHIBIT A SCOPE OF WORK Consultant agrees to perform the following professional services in connection with this Agreement, all to be performed in accordance with all city codes, ordinances, regulations, policies and procedures: A. Operate a visitor and community information center fully staffed located within the city limits, consistent with the guidelines established by the Arizona Office of Tourism. Minimum requirements to be met include: i) be open Monday through Friday, 8:00 a.m to 5:00 p.m. Mountain Standard Time; ii) provide information racks accessible to the public on weekends and holidays; iii) make public restrooms accessible during operating hours; iv) make available public telephone during operating hours; v) provide drinking water during operating hours; and vi) provide general information about the City of Apache Junction, this region, and the State. Operating hours shall be extended to include Saturdays from 9:00 a.m. to 2:00 p.m. Arizona Time from December 1, 2012 through April 15, 2013 and again on December 1, 2013 through April 15, 2014, and from December 1, 2014 through April 15, 2015. Requests for specific information regarding city government operations and City services shall be referred directly to City officials. B. Provide referrals to businesses located within the city limits and referrals to area cultural, historical and recreational attractions. C. Continue to develop, implement and revise a program to encourage return visits to the community D. Provide licensed businesses located within the city limits with an opportunity to participate in the Visitor/Information Center. E. Continue to periodically update and reformulate informational packets issued by Visitor Information Center to include information on City-sponsored events. F. Through the Internet and assorted Social Media channels, continue to develop and refine a program offering information on businesses located within the city limits, as well as information on cultural, historical and recreational attractions occurring or existing within the City and the area. G. Continue to update and re-design Apache Junction brochure in cooperation with City and Arizona Office of Tourism, and re-print as needed. H. Periodically review and provide cost estimates for updating and expanding web-based virtual tour of City of Apache Junction and area attractions. 12 I. Continue to implement and revise a cooperative marketing program in conjunction with regional marketing associations, firms, agencies or consultants and chambers of commerce to promote City businesses and the cultural, historical and recreational attractions of the area. J. Continue to implement, update and revise a "destination tourism" program including but not limited to group/package tours using licensed hotels, motels, restaurants and retail establishments located within the city limits as resources. K. Continue to implement and revise a "shop local" program designed to assist licensed businesses located within the city limits and to help reduce retail sales leakage outside of the City of Apache Junction. L. Provide information and services listed above on an impartial basis and regardless of membership status in the Apache Junction Chamber of Commerce. M. Enhance city sales tax revenues through the information and services listed above. N. Report in writing annually (by June 30th each year this Agreement is in effect) on Consultant's performance to Mayor and City Council. This report will, at Mayor and City Council's discretion, include an appreance by the consultant's staff and/or board member(s) at a City Council session (Regular or Work). 13 EXHIBIT B FEE & QUARTERLY REPORTING SCHEDULE In accordance with the terms and conditions of this Agreement, City shall compensate Consultant for its professional services as follows: A. An aggregate sum of up to, $108,000 00, billed in the amount of $9,000.00 each quarter (i.e. $36,000 annually) for a total of 12 quarters, subject to Council appropriation of funds. B. An aggregated sum of up to $15,000.00, billed in the amount $2,500.00 semi-annually (i.e. $5,000.00 annually) for three years, to coincide with the invoice/billing cycle for Apache Junction's participation in the Visit Sunny AZ Marketing Consortium, subject to Council appropriation of funds. C. Notwithstanding the fee arrangements outlined above, the Mayor and City Council of the City of Apache Junction reserve the right to annually review the Consulant's performance as related to the Scope Of Work delineated in Exhibit A of this Agreement D. Within ten (10) working days following the last day of each fiscal year quarter, Consultant shall submit to the City Clerk detailed reports accounting for the expenditure of City funds. Consultant shall submit a separate, concise summary of all expenditures within each report. The summaries shall be subject to public disclosure as public records in accordance with A.R.S. § 39-121, et seq. Each report shall be typewritten or prepared on a word processor and shall include the status of Consultant's progress on the schedule work items as referenced in Exhibit A above. It shall include a description of all work undertaken and all findings and conclusions. In addition, it shall include documentation supporting these expenditures. These reports shall also contain the information required in this Agreement, and in doing so, shall demonstrate the value of Consultant's performance and its impact upon economic development within the corporate boundaries of City. Documentation for actual expenditures shall include a summary page detailing all quarterly expenditures made in accordance with this contract and all relevant bills, receipts, and statements, with the relevant expenditures highlighted. The Apache Junction City Manager or his or her designee ("City Manager") has the sole discretion to determine whether the above referenced reports contain adequate specificity. Should the City Manager desire additional information, such information shall be produced by Consultant within ten (10) working days from receipt of such request. The City Manager may withhold any and all payments due until such time as all reporting concerns have been resolved. 14 The books and records of Consultant shall be subject to inspection and audit by City during the term of this Agreement and for a period of three (3) years after expiration of this Agreement for the purpose of verifying Consultant's performance as well as the thoroughness and accuracy of the reports submitted hereunder. Records of Consultant shall be provided to City and/or made available for inspection and audit within three (3) working days following a written request by City. E. Consultant shall design and use a business report that describes any and all progress made in the categories listed in Exhibit A of this Agreement. This report shall focus on and emphasize those activities where such work efforts and partnerships have produced results in the form of enhanced City sales tax revenue. Consultant shall substantiate the information contained in the report through independent sources. Such report shall be provided to City on a quarterly basis at the time of submitting the quarterly reports required in Section (D) of this Exhibit. 15 ROLL CALL VOTE NOTES: (}/ ITEM # MEETING OF /11 (y) MOTION BY: SECONDED BY: YES NO ABSTAINED COUNCILMEMBER BARKER J COUNCILMEMBER WALDRON COUNCILMEMBER WILSON V tOtlNCk M€MB ER EVANS VICE MAYOR DIETZ ✓ COUNCILMEMBER SERDY ✓ MAYOR INSALACO UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL CONSENT AGENDA ITEMS NO. 1-4 I MOVE THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED; AND THAT RESOLUTION NO 12-24, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO A GRANT PASS THROUGH AGREEMENT FOR THE DISTRIBUTION OF A GILA INDIAN COMMUNITY STATE SHARED REVENUE GRANT FOR FISCAL YEAR 2011-2012, BE APPROVED; AND THAT APPROVAL BE GIVEN FOR THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE APACHE JUNCTION CHAMBER OF COMMERCE AND THE CITY OF APACHE JUNCTION FOR VISITOR CENTER SERVICES BEGINNING RETROACTIVELY ON JULY 1, 2012 THROUGH JUNE 30, 2015 IN THE ANNUAL AMOUNT OF $36,000 AND ADDING ANNUAL CITY FUNDING FOR THE VISIT SUNNY AZ MARKETING CONSORTIUM IN THE AMOUNT OF $5,000 FOR A TOTAL AMOUNT OF $41,000; AND THAT AUTHORIZATION BE GIVEN FOR TH2, MAYOR TO SIGN THE AGREEMENT PENDING FINAL APPROVAL AS TO FORM BY THE CITY ATTORNEY. pACHf Se Ciiy of Apache function Home of the Supers/ition Mountains Print TO: City Manager's Office FROM: George Hoffman, City Manager DATE: August 7,2012 Agenda Type : Regular Agenda Council Priority Focus Area: TITLE OF AGENDA ITEM: MANAGER'S REPORT ACTION REQUESTED: DISCUSSION / BACKGROUND INFORMATION: FISCAL IMPACT: OPTIONS/ALTERNATIVES: RECOMMENDATION: ATTACHMENTS: Click to download No Attachments Available O ty AC N ✓ '► ... vy 0 0 City of the Junction 1 fora;`' of The .Super:l7itron Mouniains Print TO: City Manager's Office FROM: Matt Busby, Assistant to the City Manager DATE: August 7, 2012 genda Type : Regular Agenda Council Priority Focus Area TITLE OF AGENDA ITEM: PRESENTATION AND DISCUSSION ON THE FISCAL YEAR (FY) 2012-2013 LEGISLATIVE WORK PLAN ACTION REQUESTED: Presentation and Discussion DISCUSSION / BACKGROUND INFORMATION: At the beginning of each fiscal year the city council adopts a legislative work plan The legislative work plan identifies priority and focus items that may require legislative action by the council. Staff will present details of the draft FY 2012-2013 Legislative Work Plan FISCAL IMPACT. OPTIONS /ALTERNATIVES: 'COMMENDATION: ATTACHMENTS' Click to download 1.3 FY 12-13 Draft Council Work Plan City Council Legislative Work Plan Fiscal Year 2012-2013 DEVELOPMENT OF COMMUNITY 1. Comprehensive Zoning Code Update This update will be a significant policy document for the community and will be a major in-house project for the department,at current staffing levels, it will likely take a year and a half to complete The project is approximately 50%complete with the Planning and Zoning Commission. Staff estimates the first City Council review will be in June 2013 This item was carried forward from the FY 11/12 legislative work plan 2. Comprehensive Development Fee Update The State Legislature has changed the law for development fees. The city will need to hire professional consultants to prepare the development fee study, infrastructure improvement plan and fee study in accordance with those changes This item was carried forward from the FY 11/12 legislative work plan 3. Portalis Planning This project has been on the council's work program for several years There is a possibility that the state may wish to proceed ahead with the City's Planning processes within the next year This item was carried forward from the FY 11/12 legislative work plan. 4 Superstition Vistas The Superstition Vistas project area covers 275 square miles of undeveloped Arizona state trust land on the eastern edge of Phoenix City Council is interested in actively tracking the progress of the long term project and providing input to stakeholders at the state, county, and others This item was carried forward from the FY 11/12 legislative work plan 5 GIS Database Update The City has hired a geographic information system (GIS) consultant to update the city GIS property database, create an Intranet GIS application for internal staff use and then create an internet GIS application for the public This update will improve access to property information and mapping related to zoning, utilities, lot size, infrastructure, structure size, air photos, ownership, addresses, and other important land use elements The Council may need to review and direct GIS policy regarding GIS use and funding. 6 Landfill Closure Ordinance Amendment City ordinance requires the owner of the landfill to work with the City on a closure plan. Amendments to the ordinance are needed to clarify and define the City's interests regarding the landfill post-closure 7. Odor Easement Ordinance In order to save significant dollars in a land purchase for an odor easement required by ADEQ, the Superstition Mountain Community Facilities District (SMCFD) Is proposing that the city adopt an ordinance regarding reducing the size of a required odor easement to satisfy ADEQ requirements. AIN This is assist in preparing for the eventual development of state trust land near and around the SMCFD property 8. Villagio Development Agreement Staff will bring to city council for review and possible approval of a development agreement associated with the Villagio residential development near 16th Avenue and Delaware 9 Apache Palms Development Agreement Staff will bring to city council for review and possible approval of a development agreement associated with the Apache Palms residential development near Winchester Road and Broadway Avenue COMMUNITY INFRASTRUCTURE 10 Street and Transportation Strategic Plan Develop a strategic five to ten year for the city's transportation network This item was carried forward from the FY 11/12 legislative work plan. 11. Alternative Street Funding Collections to the Highway Users Revenue Fund continue to decline and maintenance needs for city streets continue to increase Council and staff will seek out new ways to preserve vital city infrastructure Findings will be incorporated into the"Street and Transportation Strategic Plan" described in item 11 above This item was carried forward from the FY 11/12 legislative work plan 12 Annual Street Maintenance Plan Consider the planned street maintenance and construction projects for the FY 12/13 This is an annual work plan item 13 Preventive Maintenance Street Projects .�► Consider an award of contract for slurry seal projects as per FY 12/13 Annual Street Maintenance Plan. This is an annual work plan item 14. Rehabilitative Maintenance Street Projects Consider an award of contract for asphalt concrete overlay projects as per FY 12/13 Annual Street Maintenance Plan This is an annual work plan item 15. Procurement of Fleet/HURF Vehicles Consider an award for the procurement of city fleet vehicles and equipment This is an annual work plan item. 16. Engineering Standards and Public Works Fees Consideration of updates to the existing engineering guidelines and public works fees This item was carried forward from the FY 11/12 legislative work plan 2 17. Superstition Mountain Community Facilities District Intergovernmental Agreement(IGA) Consider a potential IGA between the City and Superstition Mountain Community Facilities District. This item was carried forward from the FY 11/12 legislative work plan. 18 Apache Junction Fire District Intergovernmental Agreement(IGA) p Consider changes and updates to the existing IGA between the City of Apache Junction and the Apache Junction Fire District(AJFD) A new addition to the IGA would include the maintenance of EVP on ADOT signals outside the city but within the AJFD This item was carried forward from the FY 11/12 legislative work plan 19 School District Intergovernmental Agreement(IGA) The school district has indicated interest in modifying the existing IGA relating to facility use and maintenance This project would involve significant staff work by the district and city The city council and school board would ultimately approve modifications to the IGA This item was carried forward from the FY 11/12 legislative work plan. 20 Community Garden If requested, consider means to assist in the formation of a community garden. This item was carried forward from the FY 11/12 legislative work plan 21 Dog Park A location and plan for a dog park has already been accepted by City Council but no funding source has been identified Direct staff to research and identify alternative funding sources to build this park This item was carried forward from the FY 11/12 legislative work plan PUBLIC SAFETY 22. Emergency Operations Planning and Practice Review,practice, and improve the City's planning and preparedness for community emergencies AoMilik This is an annual work plan item 23. Pawn Shop Ordinance Change Staff is recommending and ordinance change to require pawn shops to utilize an online process to require that all transactions be available by computer to assist the Police Department in their investigations(further clarification of this description is forthcoming) THE CITY:INTERNAL ISSUES 24. Recommendation to Council for Revised Labor Market With the 2010 census complete,staff recommends that the city council review the current city labor market and discuss possible changes to improve our gauge of the labor market This item was carried forward from the FY 11/12 legislative work plan 3 25. Review Employee Class and Compensation with Labor Market Cities. To remain competitive in the labor market, city council has historically requested staff periodically compare employee class and compensation with labor market cities It has been approximately 5 years since the last review. This item was carried forward from the FY 11/12 legislative work plan 26 Investment Debt Management Policy The city's financial advisor has counseled that the city adopt an Investment and Debt Management Policy Doing such will assist city staff in the management of their fiduciary duties. This item was carried forward from the FY 11/12 legislative work plan 27 Non-sufficient Funds City Code Amendment To establish uniformity among departments regarding penalties associated with bounced checks of customers,staff is proposing that an amendment to the city code regarding this issue be reviewed and adopted by the city council. 28 League Resolutions Each year the city council has the opportunity to submit or cosponsor resolutions to the League of Arizona Cities and Towns Resolutions Committee This is an annual work plan item 29 City Tax Code Research and possible consideration of amending the city tax code regarding a city use tax This item was carried forward from the FY 11/12 legislative work plan 30 Best Value Procurement Members of the City Council expressed interest in researching and possible consideration of amending the city purchasing code to allow for awarding bids according to"best value"instead of strictly lowest bid This item was carried forward from the FY 11/12 legislative work plan 31 Water District Incorporation Some members of the city council expressed interest in researching, discussing,and possible consideration of making the Water District a city owned utility. This item was carried forward from the FISCAL YEAR 11/12 legislative work plan 32 Sewer District Oversight Some members of the city council expressed interest in researching, discussing, and possible consideration of increasing oversight of the Superstition Mountain Community Facilities District. 33 Annual Budget Council will consider the FY 12/13 annual budget This is an annual work plan item. 34 Code of Apache Junction Council requested that staff research how to better inform citizens of services provided in the community(i e water,sewer,fire, etc)and applicable codes and ordinances for residential 4 +004 properties The desired outcome was communicated to be a single location or pamphlet that would act as a resource for residents This item was carried forward from the FY 11/12 legislative work plan ECONOMIC DEVELOPMENT 35 Apache Junction Visitor Center Contract Renewal Annually the city council reviews and considers the continuation of the visitor center services conducted by the Apache Junction Chamber of Commerce This is an annual work plan item. 36 Greater Phoenix Economic Council(GPEC)Contract Renewal Annually the city council reviews and considers the city's participation in the GPEC, consider the return on investment and hear of GPEC's plans for the coming year, prior to making a decision on contract renewal. This is an annual work plan item 37 Shop Local Discuss current shop local program and research potential opportunities in expanding the program This item was carried forward from the FY 11/12 legislative work plan 38 Downtown Events Research and discuss opportunities to facilitate bringing additional events into the downtown. This item was carried forward from the FY 11/12 legislative work plan 39 Special Event Process The current process for staff review and approval of special events in the downtown has been reviewed and input given from the community for improving the process Staff will bring forward recommendations to city council for possible approval 40 Downtown Policies Numerous polices need to be addressed by the city council according to the Downtown „^ Redevelopment and Implementation Strategy adopted on September 21, 2010, including. 1 North Apache Trail Improvements—consider award and contract for Phase II (on-street parking, sidewalks) 2. Downtown Events—Consider changes that will encourage more events by simplifying process and/or requirements 3 Business Improvement District—Funding option to continue investments into downtown 4. Funding tourism—Dedicating a portion of the City's Transient Lodging Tax for tourism 5 Public Art—Process and funding of 6 Redevelopment Area—Creating the ATRA and rescinding the MRA 7. Commercial Rehab Guidelines—Opportunities to apply grant funds toward commercial rehab 8 City Toolkit—Update to be reflective of what is actually available 9 Infill Incentive District—Update to be reflective of actual incentives 5 ROLL CALL VOTE NOTES $\ 4cicj)\‘10 '6' 1 `�� I 71 ITEM # '� v MEETING F !1 r 1 MOTION BY: V_A0 SECONDED BY: YES NO ABSTAINED VICE MAYOR DIETZ V COUNCILMEMBER WILSON V COUNCILMEMBER BARKER COUNCILMEMBER SERDY VI COQNcILBER EVANS COUNCILMEMBER WALDRON MAYOR INSALACO UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL jkir:91 y' , ITEM NO. 7-8 I MOVE THAT AN EXECUTIVE SESSION AT 5.45 P.M. AND A WORK SESSION AT 7 00 P M BE HELD ON MONDAY, AUGUST 20, 2012, IN THE CITY COUNCIL CONFERENCE - ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY; AND THAT AN EXECUTIVE SESSION AT 5.45 P M BE HELD ON TUESDAY, AUGUST 21, 2012 IN THE CITY COUNCIL CONFERENCE ROOM. ADJOURNMENT: I MOVE THAT THE MEETING BE ADJOURNED AT P.M. , 0 ROLL CALLI. 4411) . / 1 Ws` IY 1 V REG: H I " SPEC ! v. CITY COUNCIL P I A P I A P I A / MAYOR INSALACO VICE MAYOR DIETZ Vi COUNCILMEMBER BARKER I V COUNCILMEMBER EVANS / COUNCILMEMBER SERDY 1/, Y 17 COUNCILMEMBER WALDRON ✓ 4 COUNCILMEMBER WILSON v V / TOTAL C• 1 IP I a: ,, CITY STAFF: 17 r City Manager George Hoffman ) v/ Assistant City Manager Bryant / / Powell ,/ City Clerk Kathleen Connelly V ✓ t City Attorney Joel Stern i / / Public Safety Director Jerald Monahan / 1/ Interim Public Works Director/ City Engineer Giao Pham I/ Parks & Recreation Director Jeff Bell j✓ 7 Library Director Spencer Paden t Finance Director Donna Meinerts / Development Svcs Director Brad Steinke Human Resources Director Liz Riley Economic Development / ir Director Steve Filipowicz Assistant to the City Manager • �, ✓ t Matt Busby n C ) �, OTHERS � Vfi: ey, . r