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HomeMy WebLinkAbout2026 02.17 City Council Regular Agenda City of Apache Junction, Arizona Meeting location: City Council Chambers _ pi I" Z at City Hall ` s Agenda 300 E.Superstition Blvd \ - g Apache Junction,AZ \YZONr 85119 City Council Meeting apachejunctionaz.gov Ph:(480)982-8002 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday, February 17,2026 7:00 PM City Council Chambers 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 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 vote on the matter later in the agenda. 1. 26-47 Consideration of acceptance of agenda. Sponsors: Evie McKinney 2. 26-48 Consideration of approval of minutes of the regular meeting of February 3, 2026. Sponsors: Evie McKinney Attachments: CCMIN 2026 02 03 MINUTES DRAFT 3. 26-40 Consideration of SST25-20, award of bid to Cholla Pavement for the supply and delivery of pre-coated chips for chip sealing maintenance operations for a one (1)year contract, with the option to renew for successive periods of one (1)year not to exceed five (5)years with a maximum contract value of$1,500,000.00. Sponsors: Shane Kiesow Attachments: Staff memo SST25-20 Pre-Coated Chip SST25-20 Agreement-Cholla Pavement City of Apache Junction,Arizona Page 1 Printed on 2/17/2026 City Council Meeting Agenda February 17,2026 4. 26-41 Consideration of SST25-19, award of bid to C.R. Contracting, LLC dba C.R. Contracting for the supply, delivery, and application of asphalt emulsion for chip sealing maintenance operations for a one (1)year contract, with the option to renew for successive periods of one (1)year not to exceed five (5)years with a maximum contract value of$500,000.00. Sponsors: Shane Kiesow Attachments: Staff memo SST25-19 Emulsion SST25-19 Agreement-C.R. Contracting 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. F. REGIONAL INTERGOVERNMENTAL UPDATES The mayor or any member of council may at this time present a brief summary of any regional intergovernmental updates. However, no discussion shall take place on such items except for clarifying comments related to substance, time and location. 5. 26-49 Brief summary of intergovernmental updates from mayor and councilmembers. Sponsors: Chip Wilson G. CITY MANAGER'S REPORT The city manager, members of city staff or those individuals designated by the manager may present 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. 6. 26-50 City Manager's Report Sponsors: Bryant Powell 7. 26-58 Legislative Update Sponsors: Rob Wisler Attachments: Council Legislative Update 2-17-26 8. 26-51 Announcement of Current Events Sponsors: Eli Richardson 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. City of Apache Junction,Arizona Page 2 Printed on 2/17/2026 City Council Meeting Agenda February 17,2026 I. 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. J. 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. 9. 26-57 Presentation by Ben Hur of Fester& Chapman on the city's annual financial audit. Sponsors: Bryant Powell Attachments: AJ FY25 Board presentation K. COUNCIL DIRECTION TO STAFF This item allows the mayor and city council to direct staff on specifically listed matters. L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES 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.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 on any of the items listed above may be obtained from the City Clerk's office located at 300 E Superstition Blvd,Apache Junction,AZ 85119, Monday through Thursday from 7:00a-6:00p, excluding holidays. The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities. Specific requests may be made by contacting the Human Resources Office at(480)474-2617 or TDD(480) 983-0095. The Apache Junction City Council may vote to go into Executive Session for legal advice on any item listed on this agenda pursuant to A.R.S. §38-431.03(A)(3);this notice is given pursuant to A.R.S. § 38-431.02 to the members of the City Council and the public. City of Apache Junction,Arizona Page 3 Printed on 2/17/2026 City Council Meeting Agenda February 17,2026 City of Apache Junction,Arizona Page 4 Printed on 2/17/2026 City of Apache Junction, Arizona 300 E Superstition Boulevard U �2I Agenda Item Cover Sheet Apache Junction,AZ 85119 ` • Agenda Item No. 1. �Piz File ID: 26-47 Sponsor: Evie McKinney Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Consideration of acceptance of agenda. City of Apache Junction,Arizona Page 1 Printed on 211712026 City of Apache Junction, Arizona 300 E Superstition Boulevard U �2I Agenda Item Cover Sheet Apache Junction,AZ 85119 ` • Agenda Item No.2. �Piz File ID: 26-48 Sponsor: Evie McKinney Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Consideration of approval of minutes of the regular meeting of February 3, 2026. City of Apache Junction,Arizona Page 1 Printed on 211712026 f�. City of Apache Junction, Arizona Meeting location: Z p City Council Chambers - z MeetingMinutes at City Hall 300 E.Superstition Blvd Junction,AZ City Council Meeting Apache85119 apachejunctionaz.gov Ph:(480)982-8002 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday, February 3,2026 7:00 PM City Council Chambers A. CALL TO ORDER Mayor Wilson called the meeting to order at 7:00 p.m. B. INVOCATION AND PLEDGE OF ALLEGIANCE Councilmember Heck gave the invocation and Councilmember Johnson led the meeting attendees in the Pledge of Allegiance. C. ROLL CALL Present: 7- Mayor Wilson Vice Mayor Schroeder Councilmember Nesser Councilmember Heck Councilmember Johnson Councilmember Cross Councilmember Soller Staff in Attendance: Bryant Powell, City Manager Matt Busby, Assistant City Manager Evie McKinney, City Clerk Joel Stern, City Attorney Michael Pooley, Police Chief Johnny John, Assistant Police Chief Rudy Esquivias, Development Services Director Liz Langenbach, Parks & Recreation Director Ryan Kaup, Economic Development Director Pam Harrison, Library Director Angelie Hawley, Finance Director Anna McCray, Human Resources Director Mike Loggins, Public Works Director Amy Greening, Deputy City Clerk Sidney Urias, Development Services Deputy Director Nicholas Leftwich, Planner Emile Schmid, City Engineer Rob Wisler, Management Analyst Eli Richardson, Management Analyst Jamie Sullivan, Recreation Superintendent Jody Dutra, Recreation Coordinator Dana Tucker, Records Coordinator City of Apache Junction,Arizona Page 1 City Council Meeting Meeting Minutes February 3,2026 D. CONSENT AGENDA Councilmember Cross moved,seconded by Councilmember Nesser to approve the Consent Agenda. Yes: 7- Mayor Wilson, Vice Mayor Schroeder, Councilmember Nesser, Councilmember Heck, Councilmember Johnson, Councilmember Cross and Councilmember Soller No: 0 1. 26-18 Consideration of acceptance of agenda. 2. 26-19 Consideration of approval of minutes of the regular meeting of January 20, 2026. E. AWARDS, PRESENTATIONS AND PROCLAMATIONS 3. 25-654 Presentation of 25-year Service Award to Bryant Powell. Mayor Wilson recognized City Manager Bryant Powell's 25 years of service with words of appreciation and stating all his professional accomplishments with the City of Apache Junction. Assistant City Manager Matt Busby shared his gratitude to Mr. Powell for being a great leader, listed his accomplishments beyond the City and shared the important awards that he has received. Mr. Powell thanked the Mayor and Council for their support and introduced his family in the audience. F. REGIONAL INTERGOVERNMENTAL UPDATES 4. 26-20 Brief summary of intergovernmental updates from mayor and councilmembers. Councilmember Johnson attended the Greater Phoenix Economic Council Board meeting as the new representative for Apache Junction. The new president and CEO Christine McKay shared her vision going forward and stated Apache Junction was an area on her radar. Councilmember Soller attended the Sundt groundbreaking along with the rest of the Council. He stated how great this is for the City by creating jobs. Mayor Wilson shared that he spoke at the presentation for the Officer Facio Drive dedication located in the Radiance community. He said it was an inspirational ceremony and that he was able to meet with Officer Facio's family again. A park in the same community is also being named for the fallen officer. Mayor Wilson also commented on the Sundt groudbreaking ceremony and how it will bring many jobs to the community. He also attended the 4th Annual Arizona Bluegrass Association's Bluegrass Roundup at the Rodeo Grounds. He complimented the improvements being done at the facility and shared how beautiful the weather was. Councilmember Soller thanked the Radiance and Blossom Rock communities for putting up the Officer Facio Drive street signs and the park name. He also thanked the entire Apache Junction City of Apache Junction,Arizona Page 2 City Council Meeting Meeting Minutes February 3,2026 community for being there for the family and the police department during this tragic time. G. CITY MANAGER'S REPORT 5. 26-21 City Manager's Report There was no City Manager's report. 6. 26-22 Announcement of Current Events Management Analyst Eli Richardson shared upcoming events: - Free Dump Week February 9 -14 , 2026, from 6:00 a.m -4:00 p.m. at the Apache Junction Landfill, 4050 S. Tomahawk Road. Proof of residency is required. -2026 State of the City on February 25, 2026, at 5:30 p.m. It will take place at the Desert View Events Center, 2014 S. Starr Road, Apache Junction. -25th Annual Lost Dutchman Days Marathon on February 15, 2026. Register at lostdutchmanmarathon.org for the marathon, half marathon, 10K, 8K or the 2 mile fun run. - 62nd Annual Lost Dutchman Days Rodeo and Carnival from February 27 - March 1, 2026. Pre-sale tickets can be bought at the Apache Junction Chamber of Commerce. - Lost Dutchman Days Parade on February 28, 2026, at 9:00 a.m. H. PUBLIC HEARINGS 7. 26-27 Discussion, Public Hearing & Consideration of Resolution No. 25-24, a resolution of the Mayor and City Council of the City of Apache Junction, Arizona, approving a Conditional Use Permit in Case No. P-25-38-CUP requested by Roers Companies, represented by Greg Davis of Iplan Consulting, for a 300-unit, three-story, residential rental community on property zoned City Center("13-3"). Councilmember Johnson moved,seconded by Councilmember Cross that Resolution No.25-24 be denied for the following reasons: Adequacy of roadway,off-street parking,public facilities and services to accommodate the proposed use at this time. Yes: 5- Mayor Wilson, Vice Mayor Schroeder, Councilmember Johnson, Councilmember Cross and Councilmember Soller No: 2- Councilmember Nesser and Councilmember Heck Principal Planner Nicholas Leftwich presented that P-25-38-CUP is a proposed Conditional Use Permit(CUP)to allow for the development of a 300-unit, three-story multi-family residential community. The proposed project is located on an approximately 13-acre site near the southeast corner of Idaho Road and the Scenic Street alignment. The property is currently zoned City Center(13-3). The City Council first reviewed and discussed this CUP proposal at the City Council Work City of Apache Junction,Arizona Page 3 City Council Meeting Meeting Minutes February 3,2026 Session on November 18, 2025. At the December 2, 2025, Public Hearing, after the City Council's discussion, the applicant requested additional time to confirm whether they could adjust operational plans in the manner the City Council had suggested, and the consideration of the CUP was continued to the December 16, 2025, meeting. At the December 16, 2025, meeting, the applicant requested another continuance to January 20, 2026, in order to further address traffic questions and architectural design concerns expressed in the prior meetings. The City Council voted to continue the agenda item P-25-38CUP and its corresponding Resolution No. 25-24 for presentation and discussion on January 20, 2026, and for discussion, public hearing and consideration to be held on February 3, 2026. At the January 20, 2026, meeting the applicant presented new traffic data and newly revised elevations to address previously expressed concerns. Additionally, the applicant agreed to reserve a dedicated residential unit in order to have a live-in management employee. Resolution No. 25-24, as recommended through the 4:1 vote of the Planning and Zoning Commission at their October 28, 2025, meeting has been provided to the Council for consideration. As updated elevations have been provided and an additional potential condition of approval has been identified by the Council, the following language is provided to assist the Council in making a motion on Resolution No. 25-24: Proposed Modification to Condition of Approval #1: 1)The project shall be developed in accordance with the plans and staff comments and associated with Case No. P-25-38-CUP, associated design review Case No. P-25-39-DR, and the updated building elevations presented to the City Council, dated January 20, 2026, and all the provisions of the zoning ordinance and City Codes applicable to this case. Proposed Additional Condition of Approval #11: 1) The project shall have a dedicated residential unit for a live-in management employee that shall reside on-site to facilitate continuous management presence. Roers Company representative Greg Davis with (plan Consulting confirmed that there will be a live-in on-site manager at this complex and he reviewed the 2022 ADOT approved traffic study. He also went over an updated traffic study and how the Low-Income Housing Tax Credit (LIHTC) program works. Vice Mayor Schroeder stated that the traffic study did not include the 300 unit apartment complex just west of this area and also pointed out an error on the master plan map they have used in their presentation. City of Apache Junction,Arizona Page 4 City Council Meeting Meeting Minutes February 3,2026 Councilmember Heck asked for clarification on the "Goldilocks"term that was used and what happens if a resident's income changes. Councilmember Cross inquired about the re-qualification process and stated the median income shown in the presentation is not representative of the community. Mayor Wilson opened the Public Hearing. Scrivener's Note: Public Hearing speakers are not required to complete a Request to Speak Form. Therefore, the following spelling of names may be incorrect. In Support: Karl Huish, Hudd Hassell, Andre Meek The above were in support of this project due to the need for a variety of housing and that it fits with the general plan. In Opposition: Donna Carr, Mehmood Mohiuddin, David Day, Barb Engle, Jessica Vaughn, Kathy Deeroff, Jeff Serdy, Marissa Soest, Nikki Kubias, Elisa Krcilek, Lost Dutchman RV Park resident, Simone Diaz, Neal Bartholomew, Andre Meek, Dawn Marie, Cathy Waz Residents were in opposition of this project due to traffic, the location, infrastructure issues, water needs, concerns of building upkeep and changing the look of the City. Mayor Wilson closed the Public Hearing and called for a recess at 9:02 p.m. Mayor Wilson reconvened the meeting at 9:13 p.m. Councilmember Johnson explained that a CUP can be granted upon finding that the use covered by the permit, the manner of its conduct and any structure involved will not be detrimental to persons residing or working in the area, to adjacent property, to the neighborhood, or to the public welfare in general. She listed the seven (7) areas of concerns and Council stated their thoughts on each. 1. Adequacy of roadways, off street parking, public facilities and services to accommodate the proposed use: Councilmember Johnson stated her concerns with traffic for this area as the roads are controlled by Arizona Department of Transportation (ADOT) and not the City. She expressed that the large size and proposed number of residents and cars that will be at this complex is not a safe venture for this location at this time. Councilmember Cross agreed with Councilmember Johnson regarding traffic concerns with ADOT controlling the roads. He also stated the traffic study that was presented was not adequate and it did not take into account the Wolf project apartment complex that will add three hundred (300) plus residents to this area. City of Apache Junction,Arizona Page 5 City Council Meeting Meeting Minutes February 3,2026 Councilmember Heck stated he agrees that this complex will increase traffic but if this project is denied and the City waits several more years to fill this space then the benefit of the retail and commercial development will be missed. Vice Mayor Schroeder also had concerns of the additional traffic. He added the social climate that this project could impose on the City. Councilmember Nesser said that a commercial building will add consistent traffic all day long versus a residential complex would be more traffic in the mornings and evenings. Her concern is the height of the building if a commercial complex is proposed at this site. Councilmember Soller stated his concerns regarding traffic and the City not having control over the roads. 2. Negative impacts arising from the emissions of odor, dust, gas, noise, lighting, vibration, smoke, heat or glare: Councilmember Johnson stated no matter where you build any type of building this would be a concern. Councilmember Cross agreed that this would be a concern and asked why the density has to be so high. Councilmember Heck agreed that this could be a concern but does not feel it would be any more or less than they would see anywhere else. Vice Mayor Schroder stated no opinion. Councilmember Nesser stated it is what it is. Councilmember Soller stated his only concern is the traffic, as the developer did everything else the Council asked of them. Mayor Wilson stated the developer has followed the General Plan. 3. Contribution to the deterioration of the neighborhood property values: Councilmember Johnson stated she does not know what this property will look like in 10 years. The rest of the Council had no comment. 4. Compatibility with surrounding uses and structures: Councilmember Johnson stated there is another development planned in the surrounding area and it is no concern for her. The rest of the Council had no comment. 5. Conformance with the General Plan and city policies: City of Apache Junction,Arizona Page 6 City Council Meeting Meeting Minutes February 3,2026 Councilmember Johnson stated this does align with the General Plan and she does not see any issue with the City policies. Vice Mayor Schroeder explained the General Plan is a generalization of how they want the City to look and it is an open-ended document where the Council can be selective and choose what goes where based on what is best for the City. Councilmember Heck respectfully disagreed and stated the public voted on this plan and he believes the Council should do their very best to follow and comply with it. Vice Mayor Schroeder asked if the Council has amended the General Plan in the past. Mayor Wilson stated the changes were minor and any major changes would have to go back to the voters. Councilmember Johnson explained when the plan was voted that the City did not own the downtown area land. Vice Mayor Schroeder asked why the project requires a CUP if it is in line with the General Plan. Development Services Director Rudy Esquivias explained why this project requires a CUP. Councilmember Cross stated this three (3) story project is not preserving the view of the mountains. 6. Screening and buffering of uses: The Council had no comment. 7. Unique nature of the property use and/or physical characteristics: Councilmember Johnson thanked the Developers for making the design changes the Council requested, but pointed out that the City does not own the basin located next to the property. Councilmember Cross stated the developers did make the requested changes but he still would like to see more of a southwest look. After the motion and roll call, Mayor Wilson stated the Council will review the General Plan and possibly go back to the voters. Councilmember Cross thanked the public for attending the meeting and expressing their views. I. OLD BUSINESS J. NEW BUSINESS City of Apache Junction,Arizona Page 7 City Council Meeting Meeting Minutes February 3,2026 8. 26-30 Presentation and discussion with Matthew Weatherly of Public Sector Personnel Consultants of results and recommendations of the city's classification and compensation study. The study was included in the 2025-2026 fiscal year budget. Mayor Wilson announced that Item 8 New Business will be moved up to before Item 7 Public Hearings. Human Resources Director Anna McCray introduced Matt Weatherly with Public Sector Personnel Consultants (PSPC)to present the classification and compensation study. She pointed out that there was an error on the original staff memo that Council received and they have the correct version now. Mr. Weatherly presented that as part of the Fiscal Year 2025-2026 budget adoption, Council authorized the funding for a classification and compensation study to review labor market salaries and benefits. The last full study was done in 2014. The City has since conducted compensation studies which is a limited review of position titles and pay. The full classification and compensation study reviews job descriptions with employee and supervisor feedback, classifications, titles, pay and benefits. The goal of a classification and compensation study is to ensure the City remains competitive in its total rewards package to ensure it can successfully compete for existing and future employees. It is especially important in retaining good employees and not losing them to other entities as it is significantly more expensive to hire and train new employees than to retain existing employees. In addition, the numerous increases in the state's minimum wage have continued to have a ripple effect on wages. Today's minimum wage is $15.15 per hour compared to$8.05 per hour in 2016. Through a competitive bid process, the City selected PSPC to conduct the study. The study included all current classified positions. PSPC conducted a review of comparable positions with the City's comparators which include the Arizona cities and towns of: Avondale, Buckeye, Casa Grande, Goodyear, Marana, Maricopa, Mesa, Oro Valley, and Queen Creek. Historically, the City has aimed to be within midmarket (50th percentile)of its comparator organizations. This classification and compensation study was prepared with that same goal. Key survey findings include: • Civilian pay grades are more than -5% below Market for 75% of jobs. • Police pay grades are below market for command ranks, nearer market for Officer, Sergeant. • The City is offering a competitive number, type, and level of employee benefits compared to the market comparator cities, including health insurance, leave accrual, and add/assignment pay. PSPC is recommending an updated salary schedule for both civilian and sworn positions that includes a 2% Cost of Living Adjustment(COLA)for implementation with the Fiscal Year 2026-2027 budget to catch up to the market. City of Apache Junction,Arizona Page 8 City Council Meeting Meeting Minutes February 3,2026 The overall salary cost implication for the proposed civilian placements is $1,200,000.00 and proposed sworn placements is $601,000.00. Councilmember Heck asked if the comparable cities cooperate with PSPC with the requested information and if there is a new hire end of probation pay raise. Councilmember Soller inquired about their recommendations for command rank. Vice Mayor Schroeder asked about the step process for the Police Department. Mr. Weatherly and Ms. McCray responded to all questions. K. COUNCIL DIRECTION TO STAFF L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES M. CALL TO PUBLIC Donna Carr, 2178 W. Virginia Street, Apache Junction, thanked the Council for the way they voted on Item 7 and also thanked the public for attending the meeting. Mayor Wilson reminded the public that the Council is bound by what the general public wants and stated they need to review the General Plan and get it back to the voters. He wants to get the best use for this property. N. ADJOURNMENT Mayor Wilson adjourned the meeting at 9:39 p.m. ACCEPTED THIS DAY OF 2026, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS DAY OF 12026. Walter"Chip"Wilson Mayor ATTEST: Evie McKinney City Clerk City of Apache Junction,Arizona Page 9 City of Apache Junction, Arizona 300 E Superstition Boulevard U = Agenda Item Cover Sheet Apache Junction,AZ 85119 ` • Agenda Item No. 3. �Piz File ID: 26-40 Sponsor: Shane Kiesow Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Consideration of SST25-20, award of bid to Cholla Pavement for the supply and delivery of pre-coated chips for chip sealing maintenance operations for a one (1)year contract, with the option to renew for successive periods of one (1)year not to exceed five (5)years with a maximum contract value of$1,500,000.00. City of Apache Junction,Arizona Page 1 Printed on 211712026 Pp p►CH ti ti Public Works Department " Home of the Superstition Mountains H1Z01 Date: February 17, 2026 To: Mayor and Members of the City Council Through: Bryant Powell, City Manager Mike Loggins, Public Works Director From: Andy Amado, Public Works Superintendent Subject: Consideration of SST25-20 Award of Bid A recent request for bids was conducted for asphalt pre-coated to be used for in-house street maintenance chip seal operations. This work is in support of city's FY26 CIP & Street Maintenance Plan. The bid opening was held on Thursday, December 10, 2025, at 2:00 p.m. where the following bid proposals were received. All bid proposals were reviewed for responsibility and responsiveness, proven technical ability/merit, financial viability and pricing. Staff request city council to give consideration of award of contract to Cholla Pavement Maintenance as a sole bid received. Cholla Pavement $124/ton Contract is a one-year term with option four-year renewals for a maximum value of$1,500,000. This work is in support of the city's FY26 CIP & Street Maintenance Plan which was presented and discussed with City Council on July 14, 2025. Staff recommend entering into an agreement with Cholla Pavement or a period not to exceed five years in an amount not to exceed $1,500,000. 575 E. Baseline Avenue, Apache Junction, AZ 85219 • Voice (480) 982-1055 • FAX (480) 983-5752 or(480) 982-8005 SLURRY SEAL MATERIALS AND DELIVERY AGREEMENT BETWEEN CITY OF APACHE JUNCTION AND CHOLLA PAVEMENT MAINTENANCE, INC PROJECT:# SST25-20 THIS AGREEMENT is made as of the — day of January 2026 (the "Effective Date") by and between the CITY OF APACHE JUNCTION, an Arizona municipal corporation ("City"), and Cholla Pavement Maintenance Inc, an Arizona corporation ("Contractor"), sometimes collectively referred to as the "Parties", or individually as a "Party". RECITALS A. City requires certain construction services in connection with Project No.:SST25-20. Fiscal Year 2026 Slurry Seal (the "Project"). B. Contractor asserts its willingness, ability and qualifications to provide the completed products, goods and services (the "Work") called for in IFB # SST25-20 Pre-Coated Chips for the City Of Apache Junction, and Contractor's Cost Proposal dated December 8, 2025 (the "Contract Documents"), or as more fully described in Exhibit A. C. For purposes of this Agreement, the "Contract" shall include the general requirements of both this Agreement and the Contract Documents. D. City and Contractor desire to set forth their respective responsibilities and the manner and terms upon which Contractor shall complete the Work. E. City has complied with the public bidding requirements under Arizona Revised Statutes ("A.R.S.") Title 34, and Apache Junction City Code, Vol. I, Chapter 3: Administration, Article 3-7: Procurement Procedures, or such work is categorically exempt from such process. 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. PROJECT DESCRIPTION: Contractor shall do and perform or cause to be done and performed in a good workmanlike manner, the Work set forth in this Section 1 and Exhibit A, in accordance with the Contract Documents. Contractor shall supervise and direct the delivery of the materials using its best skill and attention. 2. COMPENSATION AND PAYMENTS: The total amount payable by the City to the Contractor is an amount not to exceed Five Hundred Thousand Dollars and Zero Cents ($500,000.00) (the "Contract Sum") for the performance of the Work under the Contract Documents, except for changes authorized by properly executed change orders. This Agreement will be operable for its full term at the rates quoted in the initial bid proposal. Upon notice that the Work is ready for final inspection or acceptance, a City representative shall promptly cause an inspection to be made. Once City finds the Work acceptable under the Contract Documents, City shall promptly submit for processing a certificate for payment stating that, to the best of its knowledge, information and belief on the basis of its observation and inspection, the Work has been completed in accordance with the terms and conditions of the Contract Documents and that partial payment or the entire balance due the Contractor is payable. Final payment shall not become due until the Contractor submits to the City all required lien waivers, releases and any other data establishing payment or satisfaction of all Contractor's obligations. If any subcontractor refuses to furnish a release or waiver required by City, Contractor may furnish a bond to indemnify City against any such lien. If any such lien remains unsatisfied after all payments are made, Contractor shall refund to City all monies that the latter may be compelled to pay in discharging such liens, including all costs and reasonable attorney fees. 3. TERM: shall commence on February 17, 2026 and end on December 31, 2031 . This Agreement may be extended upon mutual written consent of the Parties provided that any amendment shall be executed by an authorized signatory of the Parties and provide in writing the amended term of the Agreement and, if applicable, a specified dollar amount of additional payment to be owed by City to Contractor. 4. LABOR AND MATERIALS: Unless otherwise provided in the Contract Documents, Contractor shall provide, pay for and insure under the requisite laws and regulations all labor, materials, equipment, tools and machinery, water, heat, utilities, transportation, other facilities and services necessary for the proper execution and completion of the Work, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work. 5. INSPECTIONS AND QUALITY OF WORK: Contractor understands and agrees that City will inspect the Work. Contractor agrees that City will have the exclusive right to determine, in its sole discretion, whether the Work has been performed in accordance with the Contract Documents. Contractor further agrees to make such corrections to the Work as may be directed by City to conform to the Contract Documents without requirement of a change order or any additional charge or cost to City whatsoever. The Work will be of good quality, free from faults and defects, and in conformance with the Contract Documents. 2 6. WARRANTY: Contractor shall guarantee the Work against defective labor, workmanship and/or materials for a period of one (1) year from the date of its final acceptance by City (the "Warranty Period"), ordinary wear and tear and unusual abuse or neglect excepted. Any omission on the part of City to condemn defective work or materials at the time of construction shall not be deemed an acceptance and Contractor will be required at its sole cost to correct defective work or materials before final acceptance. If City notifies Contractor of defective labor, workmanship, or materials during the Warranty Period, Contractor shall begin correcting the defect within fourteen (14) calendar days of receipt of written notice from City. Such work shall include the repair or replacement of other work or materials damaged or affected by making the warranty repairs or corrective work all at no additional cost to City. In the case of Work materials or equipment for which warranties are required by the special provisions of the Contract Documents, Contractor shall provide or secure from the appropriate subcontractor or supplier such warranties addressed to and in favor of City and deliver same to City prior to final acceptance of the Work. Delivery of such warranties shall not relieve Contractor from any obligation assumed under any other provision of the Contract. The warranties and guarantees provided in this Section 6 shall be in addition to and not in limitation of any other warrantees, guarantees or remedies required by law, and shall survive the expiration of this Agreement for the time period mentioned above. 7. TAXES: Contractor shall pay as they become due all license, sales, consumer, transaction privilege, use and other similar taxes for the Work or portions of the Work which are legally enacted at the time bids are received whether or not yet effective or subsequently applicable due to acts of jurisdictions or bodies other than City. 8. PERMITS AND FEES: Unless otherwise provided in the Contract Documents, Contractor shall secure and pay for all permits, government fees, licenses and inspections necessary for the proper execution and completion of the Work which are customarily secured after execution of the Contract, and which are legally required. Contractor shall give all notices and comply with all laws, ordinances, rules, regulations and lawful orders of any public authority bearing on the performance of the Work. City permits for this Work will be provided to Contractor at no cost. Contractor understands that the activity described in the Contract constitutes "doing business in the City of Apache Junction"and Contractor agrees to obtain a business license pursuant to Chapter 8 of the Apache Junction City Code, Vol. I, and keep such license current until the Work, including any Work during the Warranty Period, is accepted by the City. Contractor also acknowledges that the tax provision of the Apache Junction Tax Code, Chapter 8A, may also apply and if so, shall obtain a transaction privilege license and/or other licenses as may be required by the city code. Any activity by consultants and subcontractors within the corporate city limits will invoke the same sales tax and business licensing regulations on the consultants and subcontractors, and Contractor shall require and ensure its consultants and 3 subcontractors obtain and keep all applicable licenses current. Further, Contractor agrees to pay all applicable privilege and use taxes that are applicable to the activities, products and services provided under this Agreement. 9. INDEPENDENT CONTRACTOR: City and Contractor agree and understand that the relationship between the Parties is that of an independent contractor. As such, Contractor is not entitled to receive any benefits to which City employees are entitled by virtue of their employment with City. City shall not be responsible for payment to employees of Contractor for salaries, related taxes (including, but not limited to, federal social security tax as well as federal and state unemployment taxes) and all other expenses related to their employment or contractual relationship with Contractor. Contractor shall be responsible to City for the acts and omissions of its employees, subcontractors and their agents and employees and other persons providing any of the materials under any contract document. 10. SUPERINTENDENT: Contractor shall employ a competent project superintendent who shall be in attendance at the Project site during the progress of the Work. The superintendent shall represent and be the community agent of Contractor and communications given to the superintendent shall be as binding as if given to Contractor. Important communications shall be confirmed in writing. The designated superintendent shall be designated for each project and communicated to City before work is performed. 11 . PROGRESS SCHEDULE: Contractor shall, immediately after entering into this Agreement, generate an estimated progress schedule for the Project, which shall be maintained and updated during the construction of the Project. Work may progress during regular City business hours only if it is determined by City not to disturb normal operations. 12. INDEMNIFICATION: To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its elected officials and appointed officers, special districts, agents, and employees from and against any and all liability including but not limited to demands, claims, actions, fees, costs and expenses, including reasonable attorney and expert witness fees, arising from, or alleged to have arisen from, relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of Contractor, its agents, employees, or any tier of Contractor's subcontractors in the performance of this Agreement, but only to the extent caused by the negligence, recklessness or intentional wrongful conduct of Contractor or its subcontractors in the performance of the Work under this Agreement or any subcontract. Contractor's duty to defend, hold harmless and indemnify City, its elected officials and appointed officers, special districts, agents, and employees shall arise in connection with any 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 Contractor's 4 acts, errors, mistakes, omissions, work or services in the performance of this Agreement including any employee of Contractor, any tier of Contractor's subcontractor or any other person for whose acts, errors, mistakes, omissions, Work or services Contractor may be legally liable, but only to the extent caused by the negligence, recklessness or intentional wrongful conduct of Contractor or any tier of Contractor's subcontractors or any other person for whose acts, errors, mistakes, omissions, Work or services Contractor may be legally liable in the performance of the Work under this Agreement or any subcontract. The amount and type of insurance coverage requirements set forth in this Agreement will in no way be construed as limiting the scope of the indemnity in this Section 12. The rights and obligations under this Section 12 shall survive the expiration or earlier termination of this Agreement. 13. SUBCONTRACTORS: All subcontractors chosen by Contractor will be subject to City's approval. All subcontractors shall be identified by Contractor prior to award of contract. Contractor shall make no substitutions for any subcontractor, person or entity previously selected without the approval of City. 14. 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 attorney fees, necessary witness fees and court costs to be determined by the court in such action. 15. INSURANCE: 15.1 General Provisions. Contractor, at its own expense, shall purchase and maintain during the Term the insurance required by this Agreement 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 by this Agreement shall be maintained in full force and effect until the Services are accepted by the City. Failure to do so may, at the sole discretion of City, constitute a material breach of this Agreement. Contractor's insurance shall be primary insurance as respects the City, and any insurance or self-insurance maintained by City shall not contribute to it. 5 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, 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. Contractor shall be solely responsible for the deductible and/or self-retention and City, at its option, may require Contractor to secure payment of such deductibles or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit. The insurance policies required by this Agreement, except Workers' Compensation, shall name City, its elected officials, agents, officers, and employees as Additional Insured Parties. Contractor shall expressly bind any subcontractors, or any other lower tier subcontractors, used in the performance of any aspect of the Services, to the insurance requirements in this Agreement, making such obligations applicable to the other subcontractor to the same extent as it is applicable to Contractor. The purpose of this provision is to require any lower tier subcontractor, regardless of level, to provide insurance and indemnity required by this Agreement. 15.2 Commercial General Liability. Contractor shall maintain throughout the Term 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 the equivalent thereof. Such policies 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, or the equivalent thereof, and shall include coverage for Contractor's operations and products and completed operations. 6 If Contractor sublets any part of the Services, Contractor shall purchase and maintain, at all times during prosecution of the Services an Owner and Contractor's Protective Liability insurance policy for bodily injury and property damage, including death, which may arise in the prosecution of the Services. Coverage shall be on an occurrence basis with a limit of not less than $2,000,000 per occurrence, and the policy shall be issued by the same insurance company that issues Contractor's Commercial General Liability insurance. 15.3 Automobile Liability. Contractor 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 Contractor's owned, hired, and non-owned vehicles assigned to or used in performance of the Services. Coverage will be at least as broad as coverage code 1, "any auto", (Insurance Service Office, Inc. Policy Form CA 00011293, or the equivalent thereof). Such insurance shall include coverage for loading and off- loading hazards. If hazardous substances, materials or wastes are to be transported, federal mandatory motor carrier safety ("MCS") 90 endorsement shall be included and $5,000,000 per accident limits for bodily injury and property damage shall apply. 15.4 Workers' Compensation. Contractor shall carry Workers' Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Contractor's employees engaged in the performance of the 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, Contractor certifies as follows: "I am aware and understand the provisions of A.R.S. § 23-901 etseq. 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 Services of this Agreement." If Contractor has no employees for whom Workers' Compensation insurance is required by federal or state statutes, Contractor shall submit a declaration or affidavit to City so stating and covenanting to obtain such insurance if and when Contractor employs any employees subject to coverage. 15.5 Certificates of Insurance. Prior to commencing the Services, Contractor shall furnish City with Certificates of Insurance, or formal endorsements as required by the Agreement, issued by Contractor's insurer(s), as evidence that policies providing the required coverages, conditions and limits required by this Agreement are in full force and effect. City shall not be obligated, however, to review same or to advise Contractor of any deficiencies in such 7 policies and endorsements, and such receipt shall not relieve Contractor from, or be deemed a waiver of, City's right to insist on strict fulfillment of Contractor's obligations under this Agreement. 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. 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 Agreement shall be delivered to City Attorney, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, AZ 85119. The policy or policies shall be in the usual form of 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 elected officials, officers, agents and employees are added as additional insured parties under this policy." 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 Contractor's work or services and as evidenced by annual Certificates of Insurance. Contractor shall require its insurers to provide City thirty (30) calendar days' prior written notice of any nonrenewal, cancellation, or material change in the coverage under such policy reducing coverage to below the amounts required by this Agreement. 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. 16. CHANGE ORDERS: A change order is a written order from City to Contractor issued after execution of the Contract authorizing a change in the Work and setting forth the amount of the adjustment, if any, in the Contract Sum and the extent of the change, if any, in the Progress Schedule. Change Orders do not invalidate the Contract. Changes in the Work shall be performed under the applicable provisions of the Contract Documents, and the Contractor shall proceed promptly, unless otherwise provided in the Change Order. A Change Order signed by the Contractor indicates the Contractor's agreement therewith, including the adjustment in the Contract Sum and Progress Schedule or the method for determining them. 17. BINDING EFFECT, SUCCESSORS, ASSIGNMENT AND DELEGATION: City and Contractor each bind themselves, their partners, successors, assigns and legal representatives to the other Party and to the partners, successors, assigns and legal representatives of such other Party in respect to all covenants, 8 agreements and obligations contained in the Contract. Neither Party shall assign this Agreement or sublet it as a whole or delegate the duties under the Agreement, without the written consent of the other Party, nor shall Contractor assign any monies due or to become due to itwithoutthe previous written consent of City. 18. WRITTEN NOTICE: Written notice shall be deemed to have been duly served if delivered in person to the individual or member of the firm or entity, or to an office of the corporation for whom it was intended or if delivered at or sent registered or certified mail, return receipt requested, and first-class postage prepaid to the last business address known to them who gives the notice. Notices shall be delivered to the following: If to City: City of Apache Junction Shane Kiesow 300 East Superstition Boulevard Apache Junction, AZ 85119 If to Contractor: Choila Pavement Maintenance Inc 5452 S. Warner Dr. Apache Junction, Az. 85120 19. DAMAGES: Contractor shall be responsible for and promptly remedy any damage or loss of property caused in whole or in part by the Contractor, a subcontractor, or anyone directly or indirectly employed by Contractor, or by anyone for whose acts Contractor may be liable and for which Contractor is responsible under the Contract, except where such damage or loss is directly attributable to the negligent acts or omissions of City or by anyone for whose acts City may be liable and not attributable to the fault or negligence of the Contractor. City shall make claims regarding all damage or loss to Contractor within a reasonable time after the first observance of such injury or damages. 20. PAYMENT AND PERFORMANCE BONDS: City shall have the right to require Contractor to furnish bonds covering the faithful performance of the Contract and the payment of all obligations arising under the Contract. 21 . SAFETY: Contractor shall take, and shall cause its employees, agents, officers, directors, consultants and subcontractors to take all reasonable precautions for the safety of, and shall provide all reasonable protection to all persons and property at the Project site and all persons and property which may be affected by the performance of the Work. 22. RIGHTS AND REMEDIES: The duties and obligations and the rights and remedies available under the Contract shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or 9 available by law. No action or failure to act by City or Contractor shall constitute a waiver of any right or duty afforded to any of them under the Contract, nor shall any action or failure to act constitute an approval of or an acquiescence to any breaches under the Contract except as may be specifically agreed to by the Parties in writing. 23. FORCE MAJEURE: Neither City nor Contractor, 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 and related executive orders, 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 contractors, consultants, subcontractors, vendors or investors desired by Contractor in connection with the obligations under this Agreement. Contractor agrees that Contractor 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 23 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. 24. TERMINATION: A. TERMINATION BY CITY: City may terminate this Agreement in whole or part if the city manager or his or her designee determines Contractor has failed to fulfill its obligations under the Contract through no fault of City. Such termination may be effected by City giving Contractor not less than ten (10) calendar days written notice by certified mail, return receipt requested of City's intent to terminate. Contractor shall have ten (10) calendar days to cure the failure to the satisfaction of City. City may terminate this Agreement or a portion thereof if conditions encountered during the progress of the Work make it impossible or impracticable to proceed with the Work. If City terminates this Agreement for reasons of default by Contractor, the amount of compensation 10 provided for in this Agreement shall be reduced to reflect the percentage of Work completed and the Contractor shall not be entitled to payment for anticipated profits or unperformed services. B. TERMINATION BY CONTRACTOR: Contractor may terminate this Agreement if City fails to make payment as agreed upon in this Agreement. Any other termination will be deemed a breach of contract by Contractor. Contractor shall provide Notice of Termination to City by Certified U.S. Mail ten (10) calendar days before such termination takes effect. 25. RECORDS: Records of Contractor's labor, payroll and other costs pertaining to the Contract shall be kept on a generally recognized accounting basis and made available to City for inspection on request. Contractor shall maintain records for a period of at least two (2) years after expiration of this Agreement and shall make such records available during that retention period for examination or audit by City personnel during regular business hours. 26. ENTIRE AGREEMENT: This Agreement and any attachments and the Contract Documents represent the entire agreement between City and Contractor 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. Written and signed amendments shall automatically become part of the Contract, 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. 27. SEVERABILITY: City and Contractor 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), 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 thatthe 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. 11 28. TIME IS OF THE ESSENCE: Time is of the essence with respect to all provisions in this Agreement. Any delay in performance by either Party shall constitute a material breach of this Agreement. 29. CONFLICT OF INTEREST: The Contract is subject to, and may be terminated by City in accordance with, the provisions of A.R.S. § 38-511 . 30. PROHIBITION TO CONTRACT WITH CONTRACTORS WHO ENGAGE IN BOYCOTT OF THE STATE OF ISRAEL: The Parties acknowledge A.R.S. §§ 35- 393 through 35-393.03, as amended, which forbids public entities from contracting with Contractors who engage in boycotts of the State of Israel. Should Contractor engage in any such boycott against the State of Israel, this Agreement shall be deemed automatically terminated by operation of law. Any such boycott is a material breach of this Agreement. 31 . PROHIBITED USE OF FORCED LABOR: In accordance with A.R.S. § 35-394, Contractor hereby certifies and agrees that Contractor does not currently and shall not for the duration of this Agreement use: 1) the forced labor of ethnic Uyghurs in the People's Republic of China; 2) any services or goods produced by the forced labor of ethnic Uyghurs in the People's Republic of China; and/or 3) any suppliers, contractors or subcontractors that use the forced labor or any services or goods produced by the forced labor of ethnic Uyghurs in the People's Republic of China. If Contractor becomes aware during the Term that Contractor is not in compliance with this Section 31, then Contractor shall notify the City within five (5) business days after becoming aware of such noncompliance. If Contractor does not provide the City with written certification that Contractor has remedied such noncompliance within ninety (90) calendar days after notifying the City of such noncompliance, this Agreement shall terminate, except that if the Agreement termination date occurs before the end of such ninety (90) day remedy period, this Agreement shall terminate automatically. 32. COMPLIANCE WITH FEDERAL AND STATE LAWS: Contractor 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, Contractor hereby warrants its compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23-214(A). Contractor further warrants that after hiring an employee, Contractor will verify the employment eligibility of the employee through the E- Verify program. If Contractor 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 12 breach of the Agreement that is subject to penalties up to and including termination of this Agreement. Contractor 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. Contractor shall not be deemed in material breach of this Agreement if the Contractor and/or subcontractors establish compliance with the employment verification provisions of Sections 274A and 274B 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 contractor, consultant or subcontractor employee who works under this Agreement to ensure that the Contractor 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 without effectuating an official amendment to this Agreement. Email notification of the modification would be sufficient notice. 33. ORDER OF PRECEDENCE. Should there be any discrepancy or inconsistency between the terms and conditions of this Agreement and any terms and conditions in any exhibit to this Agreement, the terms and conditions of this Agreement shall control and prevail. [Signatures on following page] 13 IN WITNESS WHEREOF, Contractor and City have executed this Agreement as of the date first set forth above. CONTRACTOR: CHOLLA PAVEMENT MAINTENANCE INC., an Arizona corporation By: Its: c CITY: CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation By: Walter"Chip" Wilson Its: Mayor ATTEST: Evie McKinney City Clerk APPROVED AS TO FORM: (* 23.2Z Richard J. Stern City Attorney 14 STATE OF ) ss. COUNTY OF % } The foregoing was s bs 'bed and sworn before me this���day of , 204, by r as of Cholla Pavement Maintelinance Inc, an A zona corporation. Notary Public My Commission Expires: F@ 7Nota,,�ryublic Stele of Arizona & Countyhy Kleler3 Expires 5/26/2027OM Number as>a88 STATE OF ARIZONA } ) ss. COUNTY OF PINAL } The foregoing was subscribed and sworn to before me this day of , 20_, by Walter "Chip" Wilson as Mayor of the City of Apache Junction, an Arizona municipal corporation. Notary Public My Commission Expires: 15 EXHIBIT A CONTRACTORS COST PROPOSAL SCOPE OF WORK FOR EQUIPMENT AND LABOR TO SUPPLY AND DELIVER PRE-COATED CKP FOR THE CfTY OF APACHE JUNCTION IFB PROJECT No.SST25.20 SECTION 1. a"A of V&rk All work unrer pits writfact [hc 'Vlork�shal ba done in accordame with thcae &d Documents ircludnq the Did Spc:1ic&;om&Spc od PwS,OnS herein,Iho'nosl current Worm Stardard Specnc,.awris and DeOWS for PUA5;WO*U Q)nRrrrrrir,-n by tri c Marcepa ASocc3.3 on Of C,orcrrrrrsnls(WAG"). WM to be cainDletad uMer the WO WnSif.X W 1.The nupply of Pro Coatod Low Vakirro 3r8'Chip for(v CrC/o M it CMP aoo! rtrnnt mabntcrvinoe oporetions to per 11AG SW-ItGltion 715 2 The Conirador wii deinwr a 1 Chios io th-Apache JLAmon Rodeo Gro.mda lor,ved al 159L E.Lost Dutchman©lvc.an44cr 1ho Apocho JurKton Pudtc Worke yard locates;at 575 E-Base"brie Ave.,cnlh in Apache Jt vfcn,85119.fur staging within one mort i of chip-64at opnral'ons:►s requeued by the Cary Represenlat ve Ulajority of the chips%vil be reques'ed to bo vaged at the Apac.m Jinctrxt Rodeo GravndY. 3 The Coe traclar wn I0-whee'er cho n,ck +4!deliver frorr the staged stoakpbtes focaled at Ih.Apache J�neticn Rcdeo Grovnds andror PublC YLorks'yard to a vNL-sty oporotod ch p aprcador beatod W7hr It*A;Vlfha Junrmn ety Rm is within n hie vrcek period between Apo'and Juno opch year d Th s Did for Chip-,wli Ir6i Oe the chop T.otnrgl and CoiLn1L1ur'zs cyst fur:stagng chip at the hro Ingn3ted ICcatfona and tv Cetiverirrf o!CJupS from those slag rig atockplo bc,rkns-P tno spteadl-y operation. otmmille..s This Cdd iS for approxtnlato(y:,COD toa3 o1 coaled drp for low vok me roads FG'the contracted term of ona yaar(nHh a'ctht;possitle suecrsKve d years not 10 or.cccd S }ears total}stocked and Cetiveta d as drscrbed nbove COST PROPOSAL �? PROJECT NO. SST25.20 COMPANY: ADDRESS: SY6.2 TELEPHONE: 14'0 UNIT PRICE ITEM DESCRiP'TION (Not IndudIn Lax) Approx. 2,000 tors of 3W Low Volume Pre- Coated Chip (stocked and delivered as $ 1sZ __TON specified) ' ..[ �_ 'Dcscribe any exceptions in Exceptions Additions Corrections(Exhibit D) i qAA. 2 Date i�jld Sig u re Z Lt�-i.l 0 �1 6 Tale Printed Name 2 City of Apache Junction, Arizona 300 E Superstition Boulevard U = Agenda Item Cover Sheet Apache Junction,AZ 85119 ` • Agenda Item No.4. �Piz File ID: 26-41 Sponsor: Shane Kiesow Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Consideration of SST25-19, award of bid to C.R. Contracting, LLC dba C.R. Contracting for the supply, delivery, and application of asphalt emulsion for chip sealing maintenance operations for a one (1)year contract, with the option to renew for successive periods of one (1)year not to exceed five (5)years with a maximum contract value of$500,000.00. City of Apache Junction,Arizona Page 1 Printed on 211712026 P�1kc ti Public Works Department � a :¢ Home of the Superstition Mountains '�RIZOa Date: February 17, 2026 To: Mayor and Members of the City Council Through: Bryant Powell, City Manager Mike Loggins, Public Works Director From: Andy Amado, Public Works Superintendent Subject: Consideration of SST25-19 Award of Bid A recent request for bids was conducted for asphalt emulsion to be used for in-house street maintenance chip seal operations. This work is in support of city's FY26 CIP & Street Maintenance Plan. The bid opening was held on Thursday, December 10, 2025, at 2:00 p.m. where the following bid proposals were received. All bid proposals were reviewed for responsibility and responsiveness, proven technical ability/merit, financial viability and pricing. Staff request city council to give consideration of award of contract to C.R. Contracting, LLC dba C.R. Contracting. C.R. Contracting $1,725.00/ton Cholla Pavement $1,800.00/ton Resulting one year contract after renewals could attain a maximum value of$500,000 over the five-year term. The city performs on average of $200,000 worth of chip seal maintenance a year. Staff recommends entering into an agreement with C.R. Contracting, LLC dba C.R. Contracting for five years in an amount not to exceed $500.000. 575 E. Baseline Avenue, Apache Junction, AZ 85219 • Voice(480) 982-1055 • FAX (480) 983-5752 or(480) 982-8005 CHIP SEAL MATERIALS AND DELIVERY AGREEMENT BETWEEN CITY OF APACHE JUNCTION AND C.R. CONTRACTING, LLC PROJECT: # SST25-19 THIS AGREEMENT is made as of the day of January, 2026 (the "Effective Date") by and between the CITY OF APACHE JUNCTION, an Arizona municipal corporation ("City"), and C.R. Contracting, LLC, an Oregon limited liability company ("Contractor"), sometimes collectively referred to as the "Parties", or individually as a "Party". RECITALS A. City requires certain construction services in connection with Project No.:SST25-19. Fiscal Year 2026 Chip Seal (the "Project"). B. Contractor asserts its willingness, ability and qualifications to provide the completed products, goods and services (the "Work") called for in IFB # SST25-19 CRS-2P Emulsion for the City of Apache Junction, on file with the City Public Works Department, and Contractor's Cost Proposal dated December 10, 2025 (the "Contract Documents"), or as more fully described in Exhibit A. C. For purposes of this Agreement, the "Contract" shall include the general requirements of both this Agreement and the Contract Documents. D. City and Contractor desire to set forth their respective responsibilities and the manner and terms upon which Contractor shall complete the Work. E. City has complied with the public bidding requirements under Arizona Revised Statutes ("A.R.S.") Title 34, and Apache Junction City Code, Vol. I, Chapter 3: Administration, Article 3-7: Procurement Procedures, or such work is categorically exempt from such process. 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. PROJECT DESCRIPTION: Contractor shall do and perform or cause to be done and performed in a good workmanlike manner, the Work set forth in this Section 1 and Exhibit A, in accordance with the Contract Documents. Contractor shall supervise and direct the delivery of the materials using its best skill and attention. 2. COMPENSATION AND PAYMENTS: The total amount payable by the City to the Contractor is an amount not to exceed Five Hundred Thousand Dollars and Zero Cents ($500,000.00) (the "Contract Sum") for the performance of the Work under the Contract Documents, except for changes authorized by properly executed change orders. This Agreement will be operable for its full term at the rates quoted in the initial bid proposal. Upon notice that the Work is ready for final inspection or acceptance, a City representative shall promptly cause an inspection to be made. Once City finds the Work acceptable under the Contract Documents, City shall promptly submit for processing a certificate for payment stating that, to the best of its knowledge, information and belief on the basis of its observation and inspection, the Work has been completed in accordance with the terms and conditions of the Contract Documents and that partial payment or the entire balance due the Contractor is payable. Final payment shall not become due until the Contractor submits to the City all required lien waivers, releases and any other data establishing payment or satisfaction of all Contractor's obligations. If any subcontractor refuses to furnish a release or waiver required by City, Contractor may furnish a bond to indemnify City against any such lien. If any such lien remains unsatisfied after all payments are made, Contractor shall refund to City all monies that the latter may be compelled to pay in discharging such liens, including all costs and reasonable attorney fees. 3. TERM: The Term of this Agreement shall commence on February 17, 2026 and end on December 31, 2031. This Agreement may be extended upon mutual written consent of the Parties provided that any amendment shall be executed by an authorized signatory of the Parties and provide in writing the amended term of the Agreement and, if applicable, a specified dollar amount of additional payment to be owed by City to Contractor. 4. LABOR-AND MATERIALS: Unless otherwise provided in the Contract Documents, Contractor shall provide, pay for and insure under the requisite laws and regulations all labor, materials, equipment, tools and machinery, water, heat, utilities, transportation, other facilities and services necessary for the proper execution and completion of the Work, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work. 5. INSPECTIONS AND QUALITY OF WORK: Contractor understands and agrees that City will inspect the Work. Contractor agrees that City will have the exclusive right to determine, in its sole discretion, whether the Work has been performed in accordance with the Contract Documents. Contractor further agrees to make such corrections to the Work as may be directed by City to conform to the Contract Documents without requirement of a change order or any additional charge or cost to City whatsoever. The Work will be of good quality, free from faults and defects, and in conformance with the Contract Documents. 2 6. WARRANTY: Contractor shall guarantee the Work against defective labor, workmanship and/or materials for a period of one (1) year from the date of its final acceptance by City (the "Warranty Period"), ordinary wear and tear and unusual abuse or neglect excepted. Any omission on the part of City to condemn defective work or materials at the time of construction shall not be deemed an acceptance and Contractor will be required at its sole cost to correct defective work or materials before final acceptance. if City notifies Contractor of defective labor, workmanship, or materials during the Warranty Period, Contractor shall begin correcting the defect within fourteen (14) calendar days of receipt of written notice from City. Such work shall include the repair or replacement of other work or materials damaged or affected by making the warranty repairs or corrective work all at no additional cost to City. In the case of Work materials or equipment for which warranties are required by the special provisions of the Contract Documents, Contractor shall provide or secure from the appropriate subcontractor or supplier such warranties addressed to and in favor of City and deliver same to City prior to final acceptance of the Work. Delivery of such warranties shall not relieve Contractor from any obligation assumed under any other provision of the Contract. The warranties and guarantees provided in this Section 6 shall be in addition to and not in limitation of any other warrantees, guarantees or remedies required by law, and shall survive the expiration of this Agreement for the time period mentioned above. 7. TAXES: Contractor shall pay as they become due all license, sales, consumer, transaction privilege, use and other similar taxes for the Work or portions of the Work which are legally enacted at the time bids are received whether or not yet effective or subsequently applicable due to acts of jurisdictions or bodies other than City. 8. PERMITS AND FEES: Unless otherwise provided in the Contract Documents, Contractor shall secure and pay for all permits, government fees, licenses and inspections necessary for the proper execution and completion of the Work which are customarily secured after execution of the Contract, and which are legally required. Contractor shall give all notices and comply with all laws, ordinances, rules, regulations and lawful orders of any public authority bearing on the performance of the Work. City permits for this Work will be provided to Contractor at no cost. Contractor understands that the activity described in the Contract constitutes "doing business in the City of Apache Junction" and Contractor agrees to obtain a business license pursuant to Chapter 8 of the Apache Junction City Code, Vol. I, and keep such license current until the Work, including any Work during the Warranty Period, is accepted by the City. Contractor also acknowledges that the tax provision of the Apache Junction Tax Code, Chapter 8A, may also apply and if so, shall obtain a transaction privilege license and/or other licenses as may be required by the city code. Any activity by consultants and subcontractors within the corporate city limits will invoke the same sales tax and business licensing regulations on the consultants and subcontractors, and Contractor shall require and ensure its consultants and 3 subcontractors obtain and keep all applicable licenses current. Further, Contractor agrees to pay all applicable privilege and use taxes that are applicable to the activities, products and services provided under this Agreement. 9. INDEPENDENT _CONTRACTOR: City and Contractor agree and understand that the relationship between the Parties is that of an independent contractor. As such, Contractor is not entitled to receive any benefits to which City employees are entitled by virtue of their employment with City. City shall not be responsible for payment to employees of Contractor for salaries, related taxes (including, but not limited to, federal social security tax as well as federal and state unemployment taxes) and all other expenses related to their employment or contractual relationship with Contractor. Contractor shall be responsible to City for the acts and omissions of its employees, subcontractors and their agents and employees and other persons providing any of the materials under any contract document. 10. SUPERINTENDENT: Contractor shall employ a competent project superintendent who shall be in attendance at the Project site during the progress of the Work. The superintendent shall represent and be the community agent of Contractor and communications given to the superintendent shall be as binding as if given to Contractor. Important communications shall be confirmed in writing. The designated superintendent shall be designated for each project and communicated to City before work is performed. 11 . PROGRESS SCHEDULE: Contractor shall, immediately after entering into this Agreement, generate an estimated progress schedule for the Project, which shall be maintained and updated during the construction of the Project. Work may progress during regular City business hours only if it is determined by City not to disturb normal operations. 12. INDEMNIFICATION: To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its elected officials, appointed officers, special districts, agents, and employees from and against any and all liability including but not limited to demands, claims, actions, fees, costs and expenses, including reasonable attorney and expert witness fees, arising from, or alleged to have arisen from, relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of Contractor, its agents, employees, or any tier of Contractor's subcontractors in the performance of this Agreement, but only to the extent caused by the negligence, recklessness or intentional wrongful conduct of Contractor or its subcontractors in the performance of the Work under this Agreement or any subcontract. Contractor's duty to defend, hold harmless and indemnify City, its elected officials,appointed officers, special districts, agents, and employees shall arise in connection with any 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 Contractor's acts, errors, mistakes, 4 omissions, work or services in the performance of this Agreement including any employee of Contractor, any tier of Contractor's subcontractor or any other person for whose acts, errors, mistakes, omissions, Work or services Contractor may be legally liable, but only to the extent caused by the negligence, recklessness or intentional wrongful conduct of Contractor or any tier of Contractor's subcontractors or any other person for whose acts, errors, mistakes, omissions, Work or services Contractor may be legally liable in the performance of the Work under this Agreement or any subcontract. The amount and type of insurance coverage requirements set forth in this Agreement will in no way be construed as limiting the scope of the indemnity in this Section 12. The rights and obligations under this Section 12 shall survive the expiration or earlier termination of this Agreement. 13. SUBCONTRACTORS: All subcontractors chosen by Contractor will be subject to City's approval. All subcontractors shall be identified by Contractor prior to award of contract. Contractor shall make no substitutions for any subcontractor, person or entity previously selected without the approval of City. 14. 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 attorney fees, necessary witness fees and court costs to be determined by the court in such action. 15. INSURANCE: 15.1 General Provisions. Contractor, at its own expense, shall purchase and maintain during the Term the insurance required by this Agreement 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 by this Agreement shall be maintained in full force and effect until the Services are accepted by the City. Failure to do so may, at the sole discretion of City, constitute a material breach of this Agreement. Contractor's insurance shall be primary insurance as respects the City, and any insurance or self-insurance maintained by City shall not contribute to it. 5 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, 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. Contractor shall be solely responsible for the deductible and/or self-retention and City, at its option, may require Contractor to secure payment of such deductibles or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit. The insurance policies required by this Agreement, except Workers' Compensation, shall name City, its elected officials, agents, officers, and employees as Additional Insured Parties. Contractor shall expressly bind any subcontractors, or any other lower tier subcontractors, used in the performance of any aspect of the Services, to the insurance requirements in this Agreement, making such obligations applicable to the other subcontractor to the same extent as it is applicable to Contractor. The purpose of this provision is to require any lower tier subcontractor, regardless of level, to provide insurance and indemnity required by this Agreement. 15.2 Commercial General Liability. Contractor shall maintain throughout the Term 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 the equivalent thereof. Such policies 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, or the equivalent thereof, and shall include coverage for Contractor's operations and products and completed operations. 6 If Contractor sublets any part of the Services, Contractor shall purchase and maintain, at all times during prosecution of the Services an Owner and Contractor's Protective Liability insurance policy for bodily injury and property damage, including death, which may arise in the prosecution of the Services. Coverage shall be on an occurrence basis with a limit of not less than $2,000,000 per occurrence, and the policy shall be issued by the same insurance company that issues Contractor's Commercial General Liability insurance. 15.3 Automobile Liability. Contractor 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 Contractor's owned, hired, and non-owned vehicles assigned to or used in performance of the Services. Coverage will be at least as broad as coverage code 1, "any auto", (Insurance Service Office, Inc. Policy Form CA 00011293, or the equivalent thereof). Such insurance shall include coverage for loading and off- loading hazards. If hazardous substances, materials or wastes are to be transported, federal mandatory motor carrier safety ("MCS") 90 endorsement shall be included and $5,000,000 per accident limits for bodily injury and property damage shall apply. 15.4 Workers' Compensation. Contractor shall carry Workers' Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Contractor's employees engaged in the performance of the 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, Contractor certifies as follows: "I am aware and understand the provisions of A.R.S. § 23-901 etseq. 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 Services of this Agreement." If Contractor has no employees for whom Workers' Compensation insurance is required by federal or state statutes, Contractor shall submit a declaration or affidavit to City so stating and covenanting to obtain such insurance if and when Contractor employs any employees subject to coverage. 15.5 Certificates of Insurance. Prior to commencing the Services, Contractor shall furnish City with Certificates of Insurance, or formal endorsements as required by the Agreement, issued by Contractor's insurer(s), as evidence that policies providing the required coverages, conditions and limits required by this Agreement are in full force and effect. City shall not be obligated, however, to review same or to advise Contractor of any deficiencies in such 7 policies and endorsements, and such receipt shall not relieve Contractor from, or be deemed a waiver of, City's right to insist on strict fulfillment of Contractor's obligations under this Agreement. 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. 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 Agreement shall be delivered to City Attorney, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, AZ 85119. The policy or policies shall be in the usual form of 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 elected officials, officers, agents and employees are added as additional insured parties under this policy." 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 Contractor's work or services and as evidenced by annual Certificates of Insurance. Contractor shall require its insurers to provide City thirty (30) calendar days' prior written notice of any nonrenewal, cancellation, or material change in the coverage under such policy reducing coverage to below the amounts required by this Agreement. 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. 16. CHANGE ORDERS: A change order is a written order from City to Contractor issued after execution of the Contract authorizing a change in the Work and setting forth the amount of the adjustment, if any, in the Contract Sum and the extent of the change, if any, in the Progress Schedule. Change Orders do not invalidate the Contract. Changes in the Work shall be performed under the applicable provisions of the Contract Documents, and the Contractor shall proceed promptly, unless otherwise provided in the Change Order. A Change Order signed by the Contractor indicates the Contractor's agreement therewith, including the adjustment in the Contract Sum and Progress Schedule or the method for determining them. 17. BINDING EFFECT, SUCCESSORS, ASSIGNMENT AND DELEGATION: City and Contractor each bind themselves, their partners, successors, assigns and legal representatives to the other Party and to the partners, successors, assigns and legal representatives of such other Party in respect to all covenants, 8 agreements and obligations contained in the Contract. Neither Party shall assign this Agreement or sublet it as a whole or delegate the duties under the Agreement, without the written consent of the other Party, nor shall Contractor assign any monies due or to become due to it without the previous written consent of City. 18. WRITTEN NOTICE: Written notice shall be deemed to have been duly served if delivered in person to the individual or member of the firm or entity, or to an office of the corporation for whom it was intended or if delivered at or sent registered or certified mail, return receipt requested, and first-class postage prepaid to the last business address known to them who gives the notice. Notices shall be delivered to the following: If to City: City of Apache Junction Shane Kiesow 300 East Superstition Boulevard Apache Junction, AZ 85119 If to Contractor: C.R. Contracting, LLC 64435 Strickler Ave. STE. 100 Bend, OR 97703 19. DAMAGES: Contractor shall be responsible for and promptly remedy any damage or loss of property caused in whole or in part by the Contractor, a subcontractor, or anyone directly or indirectly employed by Contractor, or by anyone for whose acts Contractor may be liable and for which Contractor is responsible under the Contract, except where such damage or loss is directly attributable to the negligent acts or omissions of City or by anyone for whose acts City may be liable and not attributable to the fault or negligence of the Contractor. City shall make claims regarding all damage or loss to Contractor within a reasonable time after the first observance of such injury or damages. 20. PAYMENT AND PERFORMANCE BONDS: City shall have the right to require Contractor to furnish bonds covering the faithful performance of the Contract and the payment of all obligations arising under the Contract. 21. SAFETY: Contractor shall take, and shall cause its employees, agents, officers, directors, consultants and subcontractors to take all reasonable precautions for the safety of, and shall provide all reasonable protection to all persons and property at the Project site and all persons and property which may be affected by the performance of the Work. 22. RIGHTS AND REMEDIES: The duties and obligations and the rights and remedies available under the Contract shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or 9 available by law. No action or failure to act by City or Contractor shall constitute a waiver of any right or duty afforded to any of them under the Contract, nor shall any action or failure to act constitute an approval of or an acquiescence to any breaches under the Contract except as may be specifically agreed to by the Parties in writing. 23. FORCE MAJEURE: Neither City nor Contractor, 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 and related executive orders, 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 contractors, consultants, subcontractors, vendors or investors desired by Contractor in connection with the obligations under this Agreement. Contractor agrees that Contractor 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 23 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. 24. TERMINATION: A. TERMINATION BY CITY: City may terminate this Agreement in whole or part if the city manager or his or her designee determines Contractor has failed to fulfill its obligations under the Contract through no fault of City. Such termination may be effected by City giving Contractor not less than ten (10) calendar days written notice by certified mail, return receipt requested of City's intent to terminate. Contractor shall have ten (10) calendar days to cure the failure to the satisfaction of City. City may terminate this Agreement or a portion thereof if conditions encountered during the progress of the Work make it impossible or impracticable to proceed with the Work. If City terminates this Agreement for reasons of default by Contractor, the amount of compensation 10 provided for in this Agreement shall be reduced to reflect the percentage of Work completed and the Contractor shall not be entitled to payment for anticipated profits or unperformed services. B. TERMINATION BY CONTRACTOR: Contractor may terminate this Agreement if City fails to make payment as agreed upon in this Agreement. Any other termination will be deemed a breach of contract by Contractor. Contractor shall provide Notice of Termination to City by Certified U.S. Mail ten (10) calendar days before such termination takes effect. 25. RECORDS: Records of Contractor's labor, payroll and other costs pertaining to the Contract shall be kept on a generally recognized accounting basis and made available to City for inspection on request. Contractor shall maintain records for a period of at least two (2) years after expiration of this Agreement and shall make such records available during that retention period for examination or audit by City personnel during regular business hours. 26. ENTIRE AGREEMENT: This Agreement and any attachments and the Contract Documents represent the entire agreement between City and Contractor 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. Written and signed amendments shall automatically become part of the Contract, 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. 27. SEVERABILITY: City and Contractor 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), 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. 11 28. TIME IS OF THE ESSENCE: Time is of the essence with respect to all provisions in this Agreement. Any delay in performance by either Party shall constitute a material breach of this Agreement. 29. CONFLICT OF INTEREST: The Contract is subject to, and may be terminated by City in accordance with, the provisions of A.R.S. § 38-511. 30. PROHIBITION TO CONTRACT WITH CONTRACTORS WHO ENGAGE IN BOYCOTT OF THE STATE OF ISRAEL: The Parties acknowledge A.R.S. §§ 35- 393 through 35-393.03, as amended, which forbids public entities from contracting with Contractors who engage in boycotts of the State of Israel. Should Contractor engage in any such boycott against the State of Israel, this Agreement shall be deemed automatically terminated by operation of law. Any such boycott is a material breach of this Agreement. 31 . PROHIBITED USE OF FORCED LABOR: In accordance with A.R.S. § 35-394, Contractor hereby certifies and agrees that Contractor does not currently and shall not for the duration of this Agreement use: 1) the forced labor of ethnic Uyghurs in the People's Republic of China; 2) any services or goods produced by the forced labor of ethnic Uyghurs in the People's Republic of China; and/or 3) any suppliers, contractors or subcontractors that use the forced labor or any services or goods produced by the forced labor of ethnic Uyghurs in the People's Republic of China. If Contractor becomes aware during the Term that Contractor is not in compliance with this Section 31, then Contractor shall notify the City within five (5) business days after becoming aware of such noncompliance. If Contractor does not provide the City with written certification that Contractor has remedied such noncompliance within ninety (90) calendar days after notifying the City of such noncompliance, this Agreement shall terminate, except that if the Agreement termination date occurs before the end of such ninety (90) day remedy period, this Agreement shall terminate automatically. 32. COMPLIANCE WITH FEDERAL AND STATE LAWS: Contractor 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, Contractor hereby warrants its compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23-214(A). Contractor further warrants that after hiring an employee, Contractor will verify the employment eligibility of the employee through the E- Verify program. If Contractor 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 12 breach of the Agreement that is subject to penalties up to and including termination of this Agreement. Contractor 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. Contractor shall not be deemed in material breach of this Agreement if the Contractor and/or subcontractors establish compliance with the employment verification provisions of Sections 274A and 274B 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 contractor, consultant or subcontractor employee who works under this Agreement to ensure that the Contractor 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 without effectuating an official amendment to this Agreement. Email notification of the modification would be sufficient notice. 33. ORDER OF PRECEDENCE. Should there be any discrepancy or inconsistency between the terms and conditions of this Agreement and any terms and conditions in any exhibit to this Agreement, the terms and conditions of this Agreement shall control and prevail. [Signatures on following page] 13 IN WITNESS WHEREOF, Contractor and City have executed this Agreement as of the date first set forth above. CONTRACTOR: C.R. Contracting, LLC, an Oregon limited liability company By: Russell Davis Its: President CITY: CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation By: Walter "Chita" Wilson Its: Mayor ATTEST: Evie McKinney City Clerk APPROVED AS TO FORM: (3t� 2 -3 -2Co Richard J. Stern City Attorney 14 STATE OF Oregon ) ) ss. COUNTY OF Deschutes ) The foregoing was subscribed and sworn to before me this 20th day of January , 2026 , by Russell Dav's as President of C.R. Contracting, LLC, an Oregon limited liability company. Notary Public t`►-t1 My Commission Expires: xt� 1 OFFIC(AL STAMP 1 NATALY BUENO 4 NOTARY PUBLIC-OREGON COMM(SS10N NO, 10bb171 MY COMMISSION EXPIgES FEBRUARY 26,202a STATE OF ARIZONA ) ) ss. COUNTY OF PINAL ) The foregoing was subscribed and sworn to before me this day Of ) 20 , by Walter "Chip" Wilson as Mayor of the City of Apache Junction, an Arizona municipal corporation. Notary Public My Commission Expires: 15 EXHIBIT A CONTRACTOR'S COST PROPOSAL GUST PROPOSAL PROJECT NO.SST25•?e COMPANY: C,R- Concracong. t_LC A00RESS' 6443S StflcklerAw Ste. 1DODend. OR 0710; TLLEPHONE. U NIT PRICE ITEM DESCRIPTION Mot inchldhng tax) �Approx 515.00D 1jaIlans of C118-21P ar 1 ;equivalent (supplied, delivered, ar+d applied j $ 1.725 OOITLA fis 9 crfted -- "Vt4r,Hx any cxoepti.ons in FxeWians ttldliwi►a - (_;urrr liarte(Lxhi�il t7J _ Date *Oan= R�.saell Davis .. I ttto Nresidunt Pnnted Name 16 City of Apache Junction, Arizona 300 E Superstition Boulevard U Agenda Item Cover Sheet Apache Junction,AZ 85119 ` Agenda Item No. 5. Piz File ID: 26-49 Sponsor: Chip Wilson Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Brief summary of intergovernmental updates from mayor and councilmembers. City of Apache Junction,Arizona Page 1 Printed on 211712026 City of Apache Junction, Arizona 300 E Superstition Boulevard U Agenda Item Cover Sheet Apache Junction,AZ 85119 ` Agenda Item No.6. Piz File ID: 26-50 Sponsor: Bryant Powell Agenda Date: 2/17/2026 Index: In Control: City Council Meeting City Manager's Report City of Apache Junction,Arizona Page 1 Printed on 211712026 City of Apache Junction, Arizona 300 E Superstition Boulevard U 2 Agenda Item Cover Sheet Apache Junction,AZ 85119 ` Agenda Item No. 7. '+PizoN* File ID: 26-58 Sponsor: Rob Wisler Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Legislative Update City of Apache Junction,Arizona Page 1 Printed on 211712026 Le gislative U pd ate February 17, 2026 B 1090 S/E / HB 2839 / HCR 2018 • Introduced by Leo Biasiucci (R, - LD 30,/Lalk[rze% Havasu City) • Re-run of the bill from last session to eliminate the ability for Cities and Towns to tax food for home consumption. • The City will lose approximately $3.5M annually in revenue • This is 110/o of our total '111FIV -- 1090 S/Eq HB 2839, HCR 2018 • Current Status: HB 2839 and HCR 2018 have not been assigned and unless they are, the bills will not move on. SB 1090 was assigned to Senate Finance Committee, but it has not been heard. Unless it is passed in committee, this bill will not move on, either. HB 4030 / HCR 2052 • Introduced by Rep. Justin Olson (R - LD 10/Apache Junction & East Mesa) • Would freeze all taxes, fees, rates, and assessments by municipalities for 4 years, except with a 60% vote by the residents • Why that's a problem: • Cities face inflation, wage increases, fuel costs, insurance hikes, and construction cost escalation. • Utilities (water, wastewater, solid waste, electric) are especially cost-sensitive and capital-intensive. • A four-year freeze means expenses rise while revenues stay flat, forcing structural deficits. HB 4030 / HCR 2052 • Municipalities would have to: • Cut services, • Defer maintenance, • Dip into reserves, • Or reduce staffing — even if demand increases. • Current Status: HB 4030 and HCR 2052 passed on party lines out of House Ways and Means Committee. It will next head to Committee of the Whole. HB 2290 • Introduced by Rep. Justin Olson (R - LD 10/Apache Junction & East Mesa) • Re-run of last year's "Wayfair Decision"/Sourcing Bill • Currently, Cities and Towns where a purchase is shipped to collect the sales tax, this would modify that so that the city where the item ships from collects the tax • The City would lose up to $1.8M annually • Current Status: This bill has not been heard in Ways and Means Committee. Unless it is, it will not move on. SB 1241 • Introduced b y Sen. awna Bolick (R - 1D ,2/North Phoenix) • This bill allows private entities to replace city and county permitting authority for many common residential projects. It would forbid City oversight of building codes, threatening public safety • It also sweeps zoning and property maintenance codes into this, preventing cities from taking action on zoning and property maintenance violations. • Current Status: Passed out of Senate Regulatory Affairs Committ 4-2-1 and will next head to the Senate Committee of the Whol SB 1431 / HB 2588 • Introduced b y Sen. awna Bolick (R - 1D ,2/North Phoenix) and Rep. Michael Way (R - LD 15/Queen Creek+San Tan Valley) • This bill would strip cities and towns of the ability to set important design standards for safety and aesthetics for new single-family homes, including exterior screening walls or fences, violating local control. • Current Status: Passed out of Senate Regulatory Affairs 6-0-1 and will next head to Committee of the Whole. _ s — O a 4 . e r1W •., ' Coconino ' - - County • • - • • 0 or 1l�p�a -Apa�1�e _ Yava ' escort Na Navajo County Yavapal _ County Apache County Tonto Apache 1 ' 1 Forth;,,'' ' • • ' Gila County • • - . 1 • . • �--% nr ,. L� �! C` �•-13� -I fir? i owell Yavd Nation oun�+r 1. _ _ n Cark?� -- � Gila R;v Pinal County ham County � • • . 1 . 1 N40 'y�• Miles Nation • Salt River. I! � f * ' 'k - MCDOWELL -- - ce- w 1 MCKELLIPS Id w- i 1 s - —%,.— - Gy ttv � _ Ui �BR�WN _ • • • • 1 � O`r�` ADOBE � a iC0Aa � r • • - • 1 • - LU Pinal I UNIVERSITY Coun j County 10 APACHE p- Q BROADWAY I w f N Ui -SOUTHERN '� k ' Pinal County r' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 { urru • r � . ���Zy' '.� ��'' ��.•ice, � 1 i. � ` � + •..` • •�- .. City of Apache Junction, Arizona 300 E Superstition Boulevard U Agenda Item Cover Sheet Apache Junction,AZ 85119 ` Agenda Item No.8. �Piz oN* File ID: 26-51 Sponsor: Eli Richardson Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Announcement of Current Events City of Apache Junction,Arizona Page 1 Printed on 211712026 City of Apache Junction, Arizona 300 E Superstition Boulevard U Agenda Item Cover Sheet Apache Junction,AZ 85119 ` Agenda Item No.9. Piz File ID: 26-57 Sponsor: Bryant Powell Agenda Date: 2/17/2026 Index: In Control: City Council Meeting Presentation by Ben Hur of Fester&Chapman on the city's annual financial audit. City of Apache Junction,Arizona Page 1 Printed on 211712026 FESTER & CHAPMANPLLC CERTIFIED PUBLIC ACCOUNTANTS APACHE JUNCTION CITY OF APACHE JUNCTION , ARIZONA ANNUAL FINANCIAL AUDIT HIGHLIGHTS Year Ended June 30, 2025 Ben ( HyungJu) Hur, CPA, CG FM Partner Presentation Overview Audit Results Summary Financial Statement Audit • Single Audit Report to the Honorable Mayor and City Council Financial Overview The information contained in this presentation is solely for the use of management and the City Council. Aud it Pesu Its Su m ma r - y Financial Statement Audit ➢ Unmodified opinion (i.e. "clean" opinion) ■ Financial statements are presented fairly in all material aspects and in accordance with Generally Accepted Accounting Principles (GAAP) ■ No deficiencies or findings were noted while testing Internal Controls over financial reporting The information contained in this presentation is solely for the use of management and the City Council. Audit Pesults Summar Single Audit ➢ Unmodified opinion issued on compliance for major programs ■ Major programs: ■ Federal Assistance Listing Number 21.027 — COVID-19 Coronavirus State and Local Fiscal Recovery Funds ■ No deficiencies noted — related to internal controls over major programs tested ■ No findings noted — related to major programs tested The information contained in this presentation is solely for the use of management and the City Council. Audit Pesults Summary - Report to the Honorable Mayor and CityCounciI • Significant accounting standards and/or polices adopted — • GASB 101, Compensated Absences • Pensions are the most significant estimates in the financial statements • No difficulties encountered in performing the audit • No disagreements with management • No significant deficiencies nor material weaknesses related to internal control over financial reporting The information contained in this presentation is solely for the use of management and the City Council. Financial Overview - Summary of Financial Position Total assets/deferred outflows = $269.0 Mil Total liabilities/deferred inflows = $91.0 Mil Select asset balances: Select liability balances: • $ 116.1 mil Capital assets $ 63.7 mil Long-term debt 111.9 mil Cash, investments, and restricted cash 8.5 mil Current payables 21.0 mil Receivables 2.7 mil Unearned revenue City's net position = $ 178.0 million Net investment in capital asset $ 104.9 mil Restricted 30.2 mil Unrestricted 42.9 mil The information contained in this presentation is solely for the use of management and the City Council. Government-wide Financial Information Revenues During 2025 Total revenues = State shared sales tax $106.0 M i 6% • 000, Select revenue sources. State shared $ 32.0 m i I Sales taxes vehicle license tax 3% 20.6 mil Charges for services 18.9 mil Capital grants and contributions ', Urban revenue sharing 10.6 mil Operating grants and contributions 8% Other taxes-Special assessments 1% • • Investment earnings • . 4% Miscellaneous 1% The information contained in this presentation is solely for the use of management and the City Council. Government-wide Financial Information - Expenses During2025 Total expenses = $70.8 M i l Public Works • Select expense sources: $ 22.8 mil Public Safety 14.6 mil Public Works _ 11.1 mil General Government . , 9.2 mil Culture and Recreation Public Safety 5.5 mil Development Services 5.8 mil Water ' Interest on Long-Term Debt • 2% 6k The information contained in this presentation is solely for the use of management and the City Council. Select General Fund Revenue and Expenses Fisca I yea rs 2021 th roug h 2025 General Fund Revenue General Fund Expenditures 5 Year Comparison 5 Year Comparison $35,000,000 45,000,000 1 40,000,000 $30,000,000 . 35,000,000 $25,000,000 . 30,000,000 $20,000,000 25,000,000 $15,000,000 20,000,000 15,000,000 $10,000,000 10,000,000 $5,000,000 5,000,000 IN NINON e� :�y a� e� y �•� �� .�� ey o oe 0 oi�e e a�aQ Jat�� °i� a°a� Jett. ```g yeh too fey ey ��� Q�� Qua Leo �a� Oe a a to �e0 OeJe o\'`J L ■2025 2024 w 2023 0 2022 0 2021 0 2025 2024 ■2023 0 2022 ■2021 9 The information contained in this presentation is solely for the use of management and the City Council. Governmental Funds Revenue and Expenses Fisca I yea rs 2025 th roug h 2021 Governmental Funds Revenue and Expense 5 Year Trend $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 20? 2023 2022 2021 ■ Revenues Expenditures The information contained in this presentation is solely for the use of management and the City Council. QUESTIONS? Ben Hur, CPA, CGFM Partner BHur@f- cpc.com FESTER & CHAPMANPLLC CITY COUNCIL MEETING ROLL CALL Date: °Z , Lo Regular Executive S:'I••DO S:S:Od E:> 5,2 CITY COUNCIL: Present Ab/excu Present Ab/excu MAYOR WILSON VICE MAYOR SCHROEDER COUNCILMEMBER CROSS COUNCILMEMBER HECK 1/ COUNCILMEMBER JOHNSON COUNCILMEMBER NESSER 1/ v COUNCILMEMBER SOLLER TOTAL (t( •stssi CITY STAFF: fl, went Ab/excu Additional City Staff: City Manager Bryant Powell Assistant City Manager Matt Busby Econ Director Ryan Kaup Mrkt Comm Director Kayla Fulmer Management Analyst Rob Wisler if/ Management Analyst Eli Richardson City Clerk Evie McKinney Deputy City Clerk Amy Greening City Attorney Joel Stern V Public Safety Director Michael Pooley Public Safety Assistant Johnny John Dev Services Director Rudy Esquivias Dev Sery Deputy Dir Sidney Urias IV Building Safety Mgr Adrian Alegria IT Director Doug Wirthgen Planner Erica Hernandez Planner Nick Leftwich PW/Water Director Mike Loggins ✓ City Engineer Emile Schmid PW Project Engineer Raquel Schatz Municipal Judge Thomas McDermott Finance Director Angelie Hawley Library Director Pam Harrison Park& Rec Director Liz Langenbach ✓ HR Director Anna McCray dates c xec Session and Regular Meeting.docx City Council VOTE - ROLL CALL y7 ITEM # I ��- y� MEETING OF MOTION BY: SECONDED BY: NOTES: YES NO ABSTAINED CITY COUNCIL COUNCILMEMBER SOCCER V/ VICE MAYOR SCHROEDER COUNCILMEMBER NESSER FCOUNCILMEMBER CROSS COUNCILMEMBER HECK COUNCILMEMBER JOHNSON MAYOR WILSON TOTAL UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL (/ SHEET 1 S:Templates&Forms/City Counci[Note Call—City Council Date: �� �-v CITY OF APACHE JUNCTION REQUEST TO SPEAK FORM Please fill out completely and return to the City Clerk PRIOR to the conclusion of the City Manager's Report portion of the agenda. I would like to speak on Agenda Item #: Vwould like to speak on a Non-Agenda matter regarding: Do you wish to speak before Council on this item? Yes ✓ No Only If Necessary I am in favor of the proposed Item. I am opposed to the proposed Item. Noah - J '01 M e-S I'V13f- K k a m First Name Last Name (PRINT) Address City Zip Code Telephone Email address This information will be used by staff for follow-up, if necessary. Speakers shall make comments directly to the Mayor and City Council when called up to speak at the podium. Note: Call to the Public comments have a three minute limit and Public Hearing comments have a five minute limit Consent for Minor to be Audio and/or Video Recorded: 1, , as the parent/guardian of (minor(s)), a minor(s), agree to allow said minor(s) to appear and/or participate in the City of Apache Junction City Council Meeting. I further understand that this activity may be audio and/or video recorded and I hereby consent to the minor being audio and/or video recorded during his/her participation with the likelihood that their image will appear on cable TV and the internet video stream showing their participation. A.R.S. § 1-602 (A)(9) Signature of Parent/Guardian Date Date:.26 CITY OF APACHE JUNCTION REQUEST TO SPEAK FORM Please fill out completely and return to the City Clerk PRIOR to the conclusion of the City Manager's Report portion of the agenda. I would like to speak on Agenda Item #: I would like to speak on a Non-Agenda matter regarding: Do you wish to speak before Council on this item? Yes�� No Only If Necessary I am in favor of the proposed Item. I am opposed to the proposed Item. T/-) 464 a T_ First Name Last Name (PRINT) Address City Zip Code v6 � 6 � Telephone Email address This information will be used by staff for follow-up, if necessary. Speakers shall make comments directly to the Mayor and City Council when called up to speak at the podium. Note: Call to the Public comments have a three minute limit and Public Hearing comments have a five minute limit Consent for Minor to be Audio and/or Video Recorded: I, , as the parent/guardian of (minor(s)), a minor(s), agree to allow said minor(s) to appear and/or participate in the City of Apache Junction City Council Meeting. I further understand that this activity may be audio and/or video recorded and I hereby consent to the minor being audio and/or video recorded during his/her participation with the likelihood that their image will appear on cable TV and the internet video stream showing their participation. A.R.S. ' 1-602 (A)(9) Signature of Parent/Guardian Date WHAT ARE YOU DOING TO APACHE JUNCTION Need more revenue so we have to get bigger — don't get bigger, don't need more revenue Have enough water — not enough water so we have to put sewer water out the faucets Mental Health places — don't want crackheads, but invite them to come here Fortune tellers, strip joints — background check cost — because we NEED them here Liquor licenses passed out like candy Apartments because we need rooftops. What is D.R. Horton doing in the four- square miles south of Baseline Weed place next to Flat Iron Park where you expect children Date: � ? CITY OF APACHE JUNCTION w �� REQUEST TO SPEAK FORM Please fill out completely and return to the City Clerk PRIOR to the conclusion of the City Manager's Report portion of the auefiri, ! would like to speak on Agenda Item #: I would like to speak on a Non-Agenda matter regarding: �^ Do you wish to speak before Council on this item? Yes No___ Only If Necessary _ I am in favor of the proposed Item, � ! am opposed to the proposed Item. First Name Last Name Address City Zip Code A elephone Emaii address This information will be used by staff for follow-up. if necessarv. Speakers shall make comments directly to the Mayor and City Council when called up to speak at the podium Note: Call to the Public comments have a three minute limit and Public Hearing comments have a five minute limit. Consent for Minor to be Audio and/or Video Recorded- as the parent/guardian of _ (minor(s)), a minor(s), agree to allow said minoris) to appear and/or participate in the City of Apache junction City Council Meeting. i further understand that this activity may be audio and/or video recorded and I hereby consent to the minor being audio and/or video recorded during his/her participation with the likelihood that their image will appear on cable TV and the internet video stream showing their participation A.R.S ` "-6302 iA)!9) Signature of Parent/Guardian Date CITY OF APACHE JUNCTION Q} Mayor's Script Regular Meeting Tuesday, February 17, 2026 A. CALL TO ORDER I would like to call this City of Apache Junction Council Meeting of February 17, 2026, to order and ask everyone to put their cell phones on silent. B. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation will be led by & the pledge by C. ROLL CALL Roll call D. CONSENT AGENDA As a reminder—All items under the Consent Agenda will be approved with one motion. If a Councilmember wishes to remove an item for further discussion, the request will be made prior to approving the consent agenda and will be moved to New Business. 1. Consideration of acceptance of agenda. 2. Consideration of approval of minutes of the regular meeting of February 3, 2026. 3. Consideration of SST25-20, award of bid for the supply and delivery of pre-coated for chip sealing maintenance operations in the amount not to exceed $124.00 per ton. Resulting one (1) year contract with the option to renew continuously for successive periods of one (1) year not to exceed five (5) years with a maximum contract value of $1,500,000.00. 4. Consideration of SST25-19, award of bid to C.R. Contracting, LLC dba C.R. Contracting for the supply, delivery and application of asphalt emulsion for chip sealing street maintenance operations in an amount not to exceed $1725.00 per ton. Resulting one (1) year contract contains the option to renew automatically and continuously for successive periods of one (1) year not to exceed five (5) years and maximum contract value of $500,000. Do I have a motion on the consent agenda? Wait for Motion and 2nd Roll Call E. AWARDS, PRESENTATIONS AND PROCLAMATIONS F. REGIONAL INTERGOVERNMENTAL UPDATES 5. Regional intergovernmental meeting updates from Council. G. CITY MANAGER'S REPORT 6. City Manager's Report. Bryant to report 7. Legislative Report. Rob to report 8. Announcement of Current Events. Eli to report H. PUBLIC HEARINGS I. OLD BUSINESS J. NEW BUSINESS 9. Presentation on the City's annual financial audit. Bryant to report K. COUNCIL DIRECTION TO STAFF L. SELECTION OF MEETING DATES, TIMES, LOCATIONS AND PURPOSES M. CALL TO PUBLIC I would like to remind everyone that the Call to the Public is a courtesy and not required by law. It is a time for the public to express requests, communications, comments and suggestions. Request to speak forms must be completed and handed to the city clerk before the end of the city manager's report. All issues shall be presented in a professional manner without personal attacks. Under the open meeting law the COUNCIL CANNOT ENGAGE IN DISCUSSION on the issues presented, but may respond to criticism and may direct staff to follow up with the speaker directly and/or place this matter on a future agenda for council discussion. There is a three-minute limit for each speaker. Does Council have any requests of staff to follow up on? N. ADJOURNMENT— I adjourn this meeting. 02.03.2026 Consent Agenda Item No. 1 1 MOVE THAT the consent agenda be accepted as presented. City of Apache Junction, Arizona Meeting location: City Council Chambers - at City Hall Agenda 300 E.Superstition Blvd Apache Junction,AZ City Council Meeting 85119 apachejunctionaz.gov Ph:(480)982-8002 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday,February 17,2026 7:00 PM City Council Chambers 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 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 vote on the matter later in the agenda. 1. 26-47 Consideration of acceptance of agenda. Sponsors: Evie McKinney 2. 26-48 Consideration of approval of minutes of the regular meeting of February 3, 2026. Sponsors: Evie McKinney Attachments: CCMIN 2026 02 03 MINUTES DRAFT 3. 26-40 Consideration of SST25-20, award of bid for the supply and delivery of pre-coated for chip sealing maintenance operations in the amount not to exceed $124.00 per ton. Resulting one (1)year contract with the option to renew continuously for successive periods of one (1)year not to exceed five(5)years with a maximum contract value of $1,500,000.00. Sponsors: Shane Kiesow s4or"L' Attachments: Staff memo SST25-20 Pre-Coated Chip �a ( (9-SST25-20 Agreement-Cholla Pavement ` 4. 26-41 Consideration of SST25-19, award of bid to C.R. Contracting, LLC dba C.R. Contracting for the supply, delivery and application of asphalt emulsion for chip sealing street maintenance operations in an amount City of Apache Junction,Arizona Page 1 Printed on 211112026 City Council Meeting Agenda February 17,2026 not to exceed $1725.00 per ton. Resulting one (1)year contract contains the option to renew automatically and continuously for successive periods of one (1)year not to exceed five (5) years and maximum contract value of$500,000. Sponsors: Shane Kiesow Affachments: Staff memo SST25-19 Emulsion SST25-19 Agreement-C.R. Contracting 5. 26-46 Consideration of approval of Resolution N 26-08, a communications servic s�n>Ariza, ment be:communications he City of Apache Junction and Google FiberLL , o place, operate, maintain, operate, upg it t network in, on, under, upon, d acros highways within City subject to the requirements of this agreement. llc Sponsors: Doug Wirthgen `�J� `Vj �A � �r,� 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. F. REGIONAL INTERGOVERNMENTAL UPDATES The mayor or any member of council may at this time present a brief summary of any regional intergovernmental updates. However, no discussion shall take place on such items except for clarifying comments related to substance, time and location. 6. 26-49 Brief summary of intergovernmental updates from mayor and councilmembers. Sponsors: Chip Wilson G. CITY MANAGER'S REPORT The city manager, members of city staff or those individuals designated by the manager may present 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. 7. 26-50 City Manager's Report Sponsors: Bryant Powell 8. 26-58 Legislative Update Sponsors: Rob Wisler 9. 26-51 Announcement of Current Events Sponsors: Eli Richardson H. PUBLIC HEARINGS Public hearings required by applicable law shall be conducted by the council and any person shall be City of Apache Junction,Arizona Page 2 Printed on 211112026 City Council Meeting Agenda February 17,2026 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. I. 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. J. 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. 10. 26-57 Presentation by Kevin Camberg of Fester& Chapman on the city's annual financial audit. Sponsors: Bryant Powell K. COUNCIL DIRECTION TO STAFF This item allows the mayor and city council to direct staff on specifically listed matters. L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES 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. 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 on any of the items listed above may be obtained from the City Clerk's office located at 300 E Superstition Blvd, Apache Junction, AZ 85119, Monday through Thursday from 7:00a-6:00p, excluding holidays. The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities. Specific requests may be made by contacting the Human Resources Office at(480)474-2617 or TDD(480)983-0095. The Apache Junction City Council may vote to go into Executive Session for legal advice on any item listed on this agenda pursuant to A.R.S. §38-431.03(A)(3);this notice is given pursuant to A.R.S. § City of Apache Junction,Arizona Page 3 Printed on 2111/2026 City Council Meeting Agenda February 17,2026 38-431.02 to the members of the City Council and the public. City of Apache Junction,Arizona Page 4 Printed on 2/11/2026