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Home My WebLink About2022 02.14 City Council Work Session AgendaCity Council Work Session City of Apache Junction, Arizona Agenda Meeting location: City Council Chambers at City Hall 300 E. Superstition Blvd. Apache Junction, AZ 85119 apachejunctionaz.gov Ph: (480) 982-8002 City Council Chambers7:00 PMMonday, February 14, 2022 A.CALL TO ORDER B.ROLL CALL C.AGENDA ITEMS 1.22-092 Presentation and discussion with staff and employment law attorney Justin Pierce of Pierce Coleman, PLLC on considerations and implications involved with a potential transition of executive level and department director positions to at-will employees versus employees with due process rights. Sponsors:Matt Busby 2.22-100 Presentation and discussion on Ordinance No. 1522 an ordinance of the mayor and city council of the City of Apache Junction, Arizona, amending Apache Junction City Code, Volume I, by adding to existing Chapter 3: Administration, Article 3-7: Procurement Procedure, new section 3-7-19, Job Order Contracting Construction Services; repealing any conflicting provisions; providing for severability; and providing for penalties. Sponsors:Joel Stern Staff Memo JOC Ordinance 1522 Chapter 3 Job Order Contracting Attachments: D.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. Page 1 City of Apache Junction, Arizona Printed on 2/8/2022 1 Agenda Item Cover Sheet City of Apache Junction, Arizona 300 E Superstition Boulevard Apache Junction, AZ 85119 File ID: 22-092 Agenda Item No. 1. Agenda Date: 2/14/2022 Sponsor: Matt Busby In Control: City Council Work SessionIndex: Presentation and discussion with staff and employment law attorney Justin Pierce of Pierce Coleman, PLLC on considerations and implications involved with a potential transition of executive level and department director positions to at-will employees versus employees with due process rights. Page 1 City of Apache Junction, Arizona Printed on 2/8/2022 2 Agenda Item Cover Sheet City of Apache Junction, Arizona 300 E Superstition Boulevard Apache Junction, AZ 85119 File ID: 22-100 Agenda Item No. 2. Agenda Date: 2/14/2022 Sponsor: Joel Stern In Control: City Council Work SessionIndex: Presentation and discussion on Ordinance No. 1522 an ordinance of the mayor and city council of the City of Apache Junction, Arizona, amending Apache Junction City Code, Volume I, by adding to existing Chapter 3: Administration, Article 3-7: Procurement Procedure, new section 3-7-19, Job Order Contracting Construction Services; repealing any conflicting provisions; providing for severability; and providing for penalties. Page 1 City of Apache Junction, Arizona Printed on 2/8/2022 3 INTEROFFICE MEMO OFFICE OF THE CITY ATTORNEY TO: Honorable Mayor and DATE: February 14, 2022 Members of City Council FROM: R. Joel Stern City Attorney SUBJECT: PROPOSED JOB ORDER CONTRACTING PROCUREMENT CODE SECTION; OUR FILE NO. 21-005 In December 2021, staff and developer counsel from D.R. Horton and Brookfield, Inc., recommended adding § 3-7-19: Job Order Contracting (“JOC”) to the existing Apache Junction City Code, Vol. I, Chapter 3: Administration, Article 3- 7: Procurement Procedure. The JOC method of procuring construction services is authorized by A.R.S. § 34- 605, et seq., as an alternative to the traditional design-bid-build more time consuming procurement method. JOC allows the city to select a contractor on an “on-call” basis for construction projects utilizing a “best value” approach based on the company’s demonstrated qualifications to perform the type of work required. The City of Apache Junction started utilizing JOC procurement within the last ten (10) years when the statute allowing JOC was implemented and has consistently used JOC through cooperative contracts to deliver a wide variety of construction projects. Under state law, individual JOC projects are limited to one million dollars ($1,000,000) unless a higher maximum amount is approved by city council. The one million dollar ($1,000,000) limitation from the statute is not keeping up with the construction cost index, inflation or major project demands. The city’s two new community facilities districts (“CFDs”) include very high dollar construction projects, not limited to roadway, water plant and well construction , which can by themselves exceed one million dollars ($1,000,000) each. Public Works staff recommends the increase to at least three million dollars ($3,000,000) as other multiple agencies and municipalities have chosen inclusive of Mesa, Peoria, Phoenix, Gilbert, Tempe, Scottsdale, Chandler, ASU, NAU, and UA. Increasing the limit will also improve the interest contractors have in various city and CFD projects. _____________ R. Joel Stern City Attorney 4 ORDINANCE NO. 1522 PAGE 1 OF 3 ORDINANCE NO. 1522 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AMENDING APACHE JUNCTION CITY CODE, VOLUME I, BY ADDING TO EXISTING CHAPTER 3: ADMINISTRATION, ARTICLE 3-7: PROCUREMENT PROCEDURE, NEW SECTION 3-17-19, JOB ORDER CONTRACTING CONSTRUCTION SERVICES; REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PENALTIES. WHEREAS, On October 5, 2021, the mayor and council of the City of Apache Junction, Arizona (the “City”) adopted Resolution Nos. 21-45 and 21-46 ordering and declaring formation of Superstition Vistas Community Facilities District No. 1 and No. 2; and WHEREAS, creation of community facilities districts (“CFDs”) serves as a method of reimbursing developers for certain critical public infrastructure; and WHEREAS, to build such infrastructure in today’s very competitive construction industry market in an efficient manner, the procurement of construction services can be obtained through job order contracting (“JOC”); and WHEREAS, the current language of the code does not contain guidelines for JOC provisions; and WHEREAS, such modifications to the code were presented to the council during a work session on February 14, 2022 and at a public hearing on February 15, 2022; and WHEREAS, municipalities may increase and set the maximum allowable dollar amount per job order (currently $1,000,000 under A.R.S. § 34-605, et seq.); and WHEREAS, staff and the developers who will be benefited by the creation of the CFD have recommended an increase to the statutory limit to meet construction industry demands. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: SECTION I IN GENERAL That existing Apache Junction City Code, Volume 1, Chapter 3: Administration, Article 3-7: Procurement Procedure, be amended by adding new section 3-7-19: Job Order Contracting, as follows: Section 3-7-19: Job Order Contracting 5 ORDINANCE NO. 1522 PAGE 2 OF 3 A) Job order contracting procurement is permitted under this code to maximize efficiency in high dollar construction projects. B) Arizona law under A.R.S. § 34-605(F)(1) sets the maximum dollar amount of an individual job order at one million dollars ($1,000,000). C) This amount can be raised pursuant to the same statute by the city council as long as contractual arrangements do not allow job orders to be artificially divided or fragmented. D) The maximum dollar amount under A.R.S. § 34-605(F)(1) of one million dollars ($1,000,000) is increased to three million dollars ($3,000,000) per job order. E) All other provisions set forth in A.R.S. § 34-605, et seq., relating to job order contracting, are applicable to procurements under this code. SECTION II REPEALING ANY CONFLICTING PROVISIONS All ordinances and parts of ordinances in conflict with the provisions of this ordinance or any part of the codes adopted herein are hereby repealed. SECTION III PROVIDING FOR SEVERABILITY If any section, subsection, sentence, phrase, clause or portion of this ordinance or any part of the codes or regulations adopted herein is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION IV PROVIDING FOR PENALTIES Unless noted otherwise, any violation of any provisions adopted herein, shall be punishable as a Class 1 Misdemeanor consistent with Apache Junction City Code, Volume 1, Chapter 1: General, Article 1-8: Penalty. APPROVED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THIS ____ DAY OF __________, 2022. SIGNED AND ATTESTED TO THIS ____ DAY OF ____________, 2022. ____________________________ WALTER “CHIP” WILSON Mayor 6 ORDINANCE NO. 1522 PAGE 3 OF 3 ATTEST: ___________________ JENNIFER PENA City Clerk APPROVED AS TO FORM: ____________________ RICHARD J. STERN City Attorney 7